California Department of Resources Recycling and Recovery (CalRecycle) 

 

Questions and Answers: Recycled Fiber, Plastic and Glass Grant Program (FY 2016-17) 

The question and answer period is now closed for this grant cycle. All questions and answers are posted on this site.

Questions about the Recycled Fiber, Plastic, and Glass Grant Program grant application were accepted in writing only, no later than May 4, 2017. Similar or related questions were grouped together or reworded for clarity and responded to as one question.

General

  1. I noticed on the Environmental Health Hazard Assessment website that there is new version of CalEnviroScreen (3.0). Should I use the new version for the latest information?

    No. You must use CalEnviroScreen 2.0 as directed in the application documents. Please refer to the Disadvantaged Communities Summary on page 15 in the Application Guidelines and Instructions.

  2. Would CalRecycle consider information about an applicant's business financials as well as process flow and technologies, (the release of which could result in harmful effects on the company's financial position), as confidential? How do we need to make a case for keeping certain information confidential within the narrative itself, showing all the ways that its release could cause harm?

    Title 14 of the California Code of Regulations (14 CCR), sections 17041-17046, states that confidential or proprietary information shall include information of a proprietary or confidential business nature provided by persons in applications, reports, returns, certification or other documents submitted to the Board which if released would result in harmful effects on the person’s competitive position.

    Please refer to Confidentiality on pages 9 and 10 in the Application Guidelines and Instructions for further information regarding the handling of proprietary information submitted in applications and how it relates to the Public Records Act.

  3. Given that projects funded by the Fiber, Plastic, and Glass grant program will not be announced until October or November 2017 and could easily take a few months to get under contract, does it make sense to require a Critical Project Review by the end of Q1 2018? Could you explain the rationale for a review this early in the project and if there is any flexibility in the timing of this requirement?

    The Critical Project Review is scheduled in quarter two of 2018 as stated in the Procedures and Requirements. Depending on the award month staff may adjust the Critical Project Review before issuing the official grant agreement package. The Critical Project Review will cover activities from the Notice to Proceed to the date of the review. During this review, the grantee will discuss the progress on tasks included in the work plan and budget. Starting construction is a critical project milestone. If the project has not started construction one year after award, CalRecycle may terminate the grant agreement.

    The Grant Manager may schedule subsequent Critical Project Reviews at any time during the Grant Term to determine if the project is meeting other major milestones. Please refer to the Critical Project Review section on page 9 of the Procedures and Requirements.

  4. If we expect a project in the future, are we able to apply for the grant now and use the funds for the project? What happens if the grant is approved but we don’t use or need the funds?

    All eligible program costs included in the project budget and work plan must be incurred after the date indicated in the Notice to Proceed and by the end of the grant term on April 1, 2020. Also, if the project has not started construction one year after award, CalRecycle may terminate the grant agreement. Please refer to the Grant Term section on page 7 of the Application Guidelines and Instructions.

  5. Do we have to use a contractor or sub-contractor to build or update new facilities? Or can we build or update “in-house” with our contractor’s license?

    Contractors or sub-contractors are not necessary for the grant project. Please indicate who is providing construction/installation services in your project Narrative Proposal and Work Plan.

  6. What is CalRecycle’s definition of feedstock?

    For the purpose of this grant program, eligible feedstock is any California-generated fiber, plastic, or glass that will be diverted from landfill disposal as a result of the project, and used to manufacture finished products. Fiber includes paper, textiles, carpet, or wood. It does not include material already being collected for recycling. Greenhouse gas emissions reductions shall be calculated from the net amount of fiber, plastic, or glass that is newly diverted from landfill disposal and processed into the project’s finished product.

  7. Is the grant based on matching funds and/or prevailing rates?

    Matching funds are not required. However, matching funds can improve the cost-effectiveness and sustainability of the project and are considered in the Budget criterion score.

    Prevailing rates are not considered during scoring. However, the grantee must comply fully with all applicable federal, state, and local laws, ordinances, regulations, and permits. Please refer to the Charter Cities section on page 2 and the Compliance section on page 3 of the Terms and Conditions.

  8. This question concerns a company that has applied for a loan from CalRecycle then decides to apply for a grant as well after the loan application is submitted. Hypothetically, the loan is approved and the project begins by ordering equipment and construction but is not complete and then a grant is approved. The company would prefer to use grant funds instead of utilizing more loan funds, so can grant funds replace loan funds on the project even by putting grant funds towards a CalRecycle loan that is already partially drawn upon to begin buildout?

    No. Any cost incurred prior to receiving a Notice to Proceed for the grant will not be eligible for reimbursement from the grant. In addition, a grantee may not use grant funds to repay a loan. Eligible grant costs may replace CalRecycle loan funds if the loan funds have not already been disbursed to pay the equipment vendor. The loan will subsequently re-evaluated.

  9. Will the Notice to Proceed be issued during October/November 2017 when awardees of the grants are notified? If not, when will this happen?

    After the applications have been scored, CalRecycle will post an Award Request for Approval with the recommended applications to be funded. After the grants are awarded in October/November 2017, each grantee will receive a grant agreement package. The Notice to Proceed will be issued after the Grant Agreement has been fully executed by all parties. The timeline of the Notice to Proceed will vary depending on when the grant agreement is signed and returned to CalRecycle.

Eligibility

  1. What is a manufactured finished product?

    A manufactured product is a good or package in a form, which requires no further processing, or forming before offering 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. Please refer to Project Requirements on page 5 and 6 in the Application Guidelines and Instructions.

  2. Are recycled fiber, plastic, or glass projects that produce solid fuel from fibers and plastics (mixed solid waste) for gasification conversion into energy eligible?

    No. Pyrolysis, gasification or other thermal conversion processes are not eligible, nor are projects whose value-added product is fuel.

  3. How can a project confirm that their method of obtaining feedstock (recycled fiber, plastic, or glass) fulfills the requirement that “the project must result in an increase in tons of material newly diverted from landfills beyond that which the processor was already diverting”? For example, if a project decides to purchase plastic feedstock from an industrial user, and the industrial user can discard the plastic crates by either selling it to other users looking for plastic feedstock, or by disposing the crates via commercial recycling waste disposal, would purchasing the crates directly from the industrial user qualify as “result[ing] in an increase in tons of material newly diverted from landfills beyond that which the processor was already diverting”?

    The applicant must submit the Feedstock Certification form (CalRecycle 778-GHG) signed by its feedstock supplier to verify newly diverted feedstock will be used for the project. In the example provided, the industrial user (feedstock supplier) must verify it previously sent the plastic crates to landfill; if the crates previously were purchased by recyclers or other users, they would not be eligible. Please refer to the Feedstock Certification (CalRecycle 778-GHG) section on page 16 of the Application Guidelines & Instructions.

  4. Is compost produced from California-based diverted paper an allowable "finished product" under the grant?

    No. For purposes of the Recycled Fiber, Plastic, and Glass Grant Program, compost is not an eligible “finished product” as the greenhouse gas reductions are calculated for recycled fiber manufactured into new paper products. But if the paper in question is soiled or residual material normally landfilled, the project could be eligible for an Organics Grant Program grant in the future. (The deadline for the fiscal year 2016-2017 Organics Grant Program has already passed.

  5. In the production of finished products, is it acceptable to produce a product composed of both newly diverted plastic and plastic that does not count toward diversion as long as the fraction composed of non-diverted plastic is not counted toward diverted tonnage and GHG reductions?

    Yes.

  6. We are creating a company in San Diego to recycle and manufacture products using fiberglass from abandoned boats. Will this qualify for the grant?

    The glass and plastic components in the fiberglass material are eligible feedstocks in the Recycled Fiber, Plastic, and Glass Grant Program. Projects must fulfill the following requirements:

    • Projects must be located in California and result in permanent, annual, and measurable reductions in Greenhouse Gas (GHG) emissions by manufacturing products with California-generated fiber, plastic, or glass compared to existing practice of landfilling, and;
    • Projects must be located in California and result in permanent, annual, and measurable increases in quantity (tons) of California-generated fiber, plastic, or glass newly diverted from landfill disposal, and used to manufacture finished products.
    A Feedstock Certification form (CalRecycle 778-GHG) is a required application document that is signed by the feedstock supplier to verify that the material used in the grant project is California-generated waste that is currently going to landfill. In addition, the supplier will be required to submit the form in order for the grantee to received grant funds. Please refer to the Project Requirements section on page 5 and 6 and the Feedstock Certification on page 16 of the Application Guidelines and Instructions.
  7. Our company is currently producing egg packaging out of California Redemption Value (CRV) bottles. We are requesting funding to expand this project by purchasing new thermoformers (which convert sheet into packages). Now, we currently get our feedstock from Plastic Recycling Corporation of California (PRCC) and from other California washing companies. After going through certain portions of the grant it seems to me that the only applicable feedstock acceptable is material diverted from the landfill. In real terms does this mean that the only projects applicable are ones that use Materials Recovery Facility (MRF) material? We will be diverting styrofoam packages from the landfill by replacing them in the market (which does in fact make this project one which will reduce greenhouse gases) but by the wording of the grant I'm not sure it falls under your guidelines. Would it be possible for me to speak with someone over the phone?

    To ensure fairness to all applicants, CalRecycle does not address questions over the phone during the application period. All Recycled Fiber, Plastic, and Glass grant application and eligibility questions must be submitted through the Greenhouse Gas Reductions Inbox (GHGReductions@calrecycle.ca.gov) and will be answered through this Q&A webpage.

    Feedstock to be used for the Recycled Fiber, Plastic, and Glass Grant Program (FPG) project must be California-generated material newly diverted from landfill. Projects using feedstock already collected for recycling do not qualify. FPG grant projects must be located in California and result in permanent, annual, and measurable:

    • Reductions in Greenhouse Gas (GHG) emissions by manufacturing products with California-generated fiber, plastic, or glass compared to existing practice of landfilling; and
    • Increases in quantity (tons) of California-generated fiber, plastic, or glass newly diverted from landfill disposal, and used to manufacture finished products.
  8. Please elaborate on what “newly diverted” material means. Does this definition only include material that is NOT already being diverted through various processing outlets, (i.e., would a processing facility that was to accept the same type of material already being separated at a MRF and recycled be considered ineligible)? What if current recycling processing facilities that process this material are not sufficient, and the proposed would have a higher recovery rate and better use of the end-product (according to the highest and best use model)?

    Newly diverted material is the tons of material that is currently being landfilled that will instead be diverted as a result of the project. It does not include tons of materials already being collected for recycling. Please refer to the Project Requirements section on page 6 of the Application Guidelines and Instructions.

  9. Regarding project requirements and eligibility, the Application Guidelines and Instructions states on page 6 (project requirements) that the project must increase the quantity of newly diverted material from landfill and used to manufacture finished products. Then the definition of finished product means. a good in a form which requires no further processing or forming before it is offered for sale to an end-user. The section below “eligible projects” states an eligible project can include a construction facility that increases in-state infrastructure for the processing of newly diverted material when providing processed materials to an in-state manufacturing facility that is using the waste to make finished products. The two seem to contradict each other. Does the manufacturing facility in this case qualify as the “end user”?

    The manufacturing facility is not the end user. An eligible project includes the construction, renovation, or expansion of facilities to increase in-state infrastructure for the processing of California-derived newly diverted fiber, plastic, or glass waste when providing the processed material to an in-state manufacturing facility that is using the waste to make the finished product. To be eligible for the Recycled Fiber, Plastic, and Glass Grant Program, the processing facility must provide proof of binding agreement with the manufacturing facility that is receiving the processed feedstock to make the recycled-content finished product. Please refer to the Eligible Projects section on page 6 of the Application Guidelines and Instructions.

  10. Is cardboard considered an eligible fiber material?

    Yes, cardboard is an eligible fiber material. To be eligible for funding from the Recycled Fiber, Plastic, and Glass Grant Program, the cardboard material must be used to make a recycled-content finished product.

  11. The Project Requirements section uses the phrase “California-generated fiber, plastic, or glass.” Does this mean that the fiber, plastic, and glass has to be created in California? Most products that end up in California landfills are generated out-of-state. Or does it mean that the materials need to be in California before our company buys it? Possible example: Big box stores in California bring in products from all over the world. Not everything is sold in store. Would our company be able to use unsellable products from them and still qualify?

    The California-generated fiber, plastic, or glass is defined as these materials that originated in California as waste and prior to the project were disposed in a landfill. In this example, the fiber, plastic, or glass products from a California store would qualify as an eligible feedstock if they were previously landfilled and as a result of the grant will be used to make a finished product.

  12. The Narrative Proposal, second section, question six asks what will happen to the yield loss material. Will our project still be eligible if we burn the yield loss material in an incinerator?

    Incinerating the yield loss material does not make the project ineligible. However, the amount of yield loss and how it is processed or disposed is used to calculate the greenhouse gas emissions reduction for the project. Yield loss material sent to incineration would be considered disposal for the purposes of this grant program. No grant funds may be utilized for incineration of yield loss material. The greenhouse gas emissions reduction is a major objective of the Recycled Fiber, Plastic, and Glass Grant Program and the greenhouse gas emissions from incinerating yield loss material will be evaluated by CalRecycle and ARB.

  13. Will this grant accept a Regenerative Thermal Oxidizer (RTO) that destroys Hazardous Air Pollutants and Volatile Organic Compounds along with odors emissions for this grant? If not, please let us know why?

    If a regenerative thermal oxidizer is a required component of a project that is utilizing eligible feedstock to make a finished product it may be deemed an eligible cost. The costs for the RTO should be identified in the budget. The purpose and function of the RTO should be clearly described in the grant application.

  14. What kind of material processing projects are eligible? The Application Guidelines and Instructions suggest only processors that sell directly to manufacturers are eligible.

    A project may be eligible if it includes preprocessing California-derived fiber, plastic, or glass waste materials that would otherwise be sent to landfill and sending the preprocessed waste product to a California manufacturing facility that will use the feedstock to produce a recycled content finished product. The material processing facility must provide proof of binding agreement (e.g., a contract) with the California manufacturing facility that is receiving the pre-processed feedstock. Please refer to the Eligible Projects section on page 5 of the Request for Approval.

  15. Is a project to increase material recovery and diversion at a Materials Recovery Facility eligible? The recovered material is sold in-state to another processor who then sells to a manufacturer.

    Feedstock to be used for the Recycled Fiber, Plastic, and Glass Grant Program (FPG) must be California-generated material and newly diverted from landfill. Projects using feedstock already collected for recycling are not eligible.

    The preprocessing of California-derived fiber, plastic, or glass waste that would otherwise be sent to landfill is eligible. The preprocessed waste product must be sent to a California manufacturing facility that will use the feedstock to produce a recycled content finished product. The preprocessing facility must provide proof of binding agreement with the California manufacturing facility that is receiving the preprocessed feedstock.

  16. Can you please explain why "Costs associated with projects that use pyrolysis, gasification, or other thermal processes to produce fuel, electricity, or heat" is an ineligible cost, given expanding technologies to create renewable, low carbon biofuels using these processes? It seems counterintuitive to make these costs ineligible, particularly if the project will assist the State in greatly reducing greenhouse gas (GHG) emissions while reducing organic waste that is responsible currently for contributing to emissions.

    If the submitted project is a sub-project of a larger project that uses pyrolysis, gasification, or other thermal processes to produce biofuel, electricity, or heat, will it still be eligible, if costs are not requested for the larger project components?

    The statute that provides funding for this grant sets forth what the funds can be used for, and does not include pyrolysis, gasification or other thermal processes. A sub-project of a larger project that uses a thermal process may be eligible if the sub-project meets all the eligibility requirements.

  17. A Materials Recovery Facility (MRF) is diverting rigid plastic for export, but the export market has dropped and now the diverted product will be sent to the landfill. Our proposal can use this diversion in the production of our products and offer a more stable market to the MRF. Can this be considered “newly diverted” or will we need to find a MRF that has never diverted the material?

    “Newly diverted” means material that is currently being landfilled that will instead be diverted as a result of the Recycled Fiber, Plastic, and Glass Grant Program project. The CalRecycle Feedstock Certification Form 778-GHG is a required application document to verify that the eligible feedstock will originate only from California-generated waste that was otherwise going to landfill. Please refer to the Eligible Projects section on page 6 of the Application Guidelines and Instructions and the Feedstock Certification in the Grants Management System (GMS).

Funding

  1. Can I receive a grant if I have outstanding debts due to CalRecycle?

    No. The Grant Award Conditions require a grantee to pay all outstanding debts due to CalRecycle or bring current outstanding payments owed to CalRecycle within 60 days from the date CalRecycle conditionally awarded the grant. Please refer to Grant Award Conditions on page 21 in the Application Guidelines and Instructions. In addition, if an applicant has a loan from CalRecycle, the applicant must be current (paying as agreed). The borrower must bring their loan current within 60 days from the date CalRecycle conditionally awarded the grant.

  2. Can the combined costs for permitting, public education/outreach, indirect costs, and salaries not related to construction or installation along with the design and engineering costs both have a budget cap of five percent of the total amount requested for a maximum total of 10% of the requested grant amount?

    Yes. If applicable, public education/outreach and labor costs for textile reuse component shall not exceed 50 percent of the textile reuse budget.

  3. If awarded, will CalRecycle reimburse costs incurred prior to the Notice to Proceed (NTP)? For example, if a facility has plans to begin purchasing equipment - should orders be placed on hold until after the NTP is received, or can it make those purchases and be reimbursed if/when the grant is awarded?

    The Grant Term beings on the date of the Notice to Proceed email. Grant-eligible program expenditures may start no earlier than the date indicated in the Notice to Proceed. Please refer to the Grant Term and Eligible Costs sections on page 7 of the Application Guidelines and Instructions.

  4. Is it possible for grant money to be awarded in a partial amount of what was requested (i.e., a value less than that which was requested)?

    Yes, CalRecycle reserves the right to partially fund or fund individual phases of selected proposals, and CalRecycle may fund an amount less than requested.

  5. We are currently preparing to build a new California facility that processes eligible material under this grant that will be used as a raw material for manufacturing in California. We will have incurred the vast majority of our costs for our facility by the October/November time period but will have well over $3 million remaining in equipment payments remaining. Could we use the grant for the remaining costs to help ensure the long-term viability of the facility by reducing capital costs?

    Not if the cost of the equipment is incurred prior to receiving a Notice to Proceed from CalRecycle. After the grants are awarded in October/November 2017, each grantee will receive a grant agreement package. The Notice to Proceed will be issued after the Grant Agreement has been fully executed by all parties. You may use grant funds for any remaining equipment purchases and infrastructure activities, if they are included in your approved Budget and approved Work Plan and not incurred prior to the date on the Notice to Proceed.

  6. Are personnel costs for operating the facility, once fully implemented, counted towards the total personnel budget?

    The personnel costs for operating the facility shall be categorized under the Administrative section of the Budget document. These costs are indirect costs that shall not exceed five percent of the total grant award. Please refer to the Indirect Cost section on pages 4 and 5 of the Procedures and Requirements.

  7. Does the revenue from the sale of created products from newly diverted material need to be included in the budget as a cost offset, or included at all?

    Revenue from the sale of created products shall not be included in the budget. The budget should provide a clear accounting of all costs associated with all infrastructure activities necessary to complete the project. Please refer to Budget section on page 15 of the Application Guidelines and Instructions. However, the revenue can contribute to your score in the Fiscal Soundness section. Please review the Financial Narrative for more information.

  8. The Application Guidelines and Instructions state that “Eligible costs must be incurred, services provided, and goods received after receiving a Notice to Proceed (NTP) and before April 1, 2020.” Some of the equipment needed to fulfill our mission requires a long lead-time, if we put the equipment on order, before the Notice to Proceed, but do not take delivery of the equipment until after we receive the Notice to Proceed, would that equipment be “Eligible”? What about any deposit that would be required from the manufacturer?

    Grant-eligible program expenditures may start no earlier than the date indicated in the Notice to Proceed. Expenditures may include but are not limited to payments and deposits for equipment, construction, and services incurred after the Notice to Proceed and before April 1, 2020. Please refer to the Grant Term section on page 7 of the Application Guidelines and Instructions.

  9. Will any money received as part of a Performance Payment be considered unrestricted income that may be used on any project budget item and will be paid on a reimbursement basis?

    No. Performance payments are only issued for each newly diverted ton of California generated postconsumer recycled fiber, plastic, or glass diverted from landfills and used to manufacture a finished product. Performance payments will be issued quarterly on a per ton basis with the dollar amount determined by dividing the amount awarded for performance payment by the total number of newly diverted tons by the project during the grant term. Please refer to Proposed Changes section on pages 5 and 6 of the Request for Approval.

  10. Are there any eligible project expenses that would not be considered part of the "infrastructure"? If so, what are examples of eligible expenses?

    Costs associated with maintenance of equipment, public education and outreach, and salaries not associated with construction are other types of non-infrastructure expenses. Costs to operate a textile reuse component of a project are also eligible project expenses that are not necessarily part of the project infrastructure. The textile reuse component of a project must be included in the project narrative and work plan and grant funds must be dedicated in the budget. Please refer to the Eligible Projects section on page 6 and Eligible Costs on page 7 of the Application Guidelines and Instructions.

  11. Will CalRecycle and the applicant agree upon a non-reimbursement disbursement schedule?

    No.

Application

  1. Can Resolutions be uploaded after the application is submitted? What is the final deadline for the Resolution? My Board does not have a Board meeting scheduled so I cannot get a Resolution before the application deadline.

    Yes. The approved Resolution for either a single or a regional jurisdiction, and all supporting documents for a regional program should be submitted with the application due date of May 25, 2017, but must be received no later than June 8, 2017. An application missing a Resolution will be disqualified and will not be considered for funding. Please refer to Resolution on page 18 in the Application Guidelines and Instructions.

  2. If the main feedstock supplier is a large company and unwilling to sign the Form 778 Feedstock Certification, but are willing to provide a letter confirming the feedstock and diversion from landfill on their letterhead, is this acceptable?

    No. The Form 778 Feedstock Certification is a required document and must be submitted. Since so much of the Grant Program relies on the amount of newly diverted tons, we have to make sure that this information gets presented to CalRecycle in a uniform manner so that we may accurately score the grants. This form is also used to verify origin of the feedstock material, and during the Grant Term, to verify performance payments.

  3. Can I upload video as part of the submission? If so, how?

    Videos cannot be uploaded into the Grants Management System. You may provide a link to a website where the video can be viewed as part of a supporting document.

  4. If I have more than one document pertaining to a requirement (such as corporate documents), can I upload as “corporate document-1,” “corporate document-2,” under the requirement, such as Project Readiness?

    You may provide more than one supporting document per requirement. You should scan like documents together into one PDF document if possible. If not, you may upload them separately and label them accordingly.

  5. The Application Guidelines and Instructions state that eligible applicants include “The University of California, the California State University, or California Community Colleges” and that only two applications per qualifying entity will be accepted for this program. Is this application limit per University of California campus (e.g., up to two applications from UC Berkeley), or is the limit UC-wide (i.e., up to two applications from the UC system)?

    Only two applications UC-wide can be accepted.

  6. Can you speak on the required file formats for all of the required and optional application documents? Do you prefer Word, Excel, PDF, or some combination of those?

    Please submit application documents in the format in which they were provided. For example, the Budget template is provided in Excel and should be completed and submitted in Excel. There is no preference for the supporting documents provided by the applicant. However, a single document upload cannot exceed 35 MB. Applicants are encouraged to minimize the file size of their document before they upload them.

  7. In the Grants Management System, "Tons of Recycled Material used in Manufacturing" is a required file category on the Summary tab, but no template file exists for it and that specific phrase is not listed in the FPG2 Application Guidelines and Instructions. "Net Tons of Newly Diverted Material Used in Manufacturing or Textile Reuse" is also a required file category AND a template file exists for it. The category names are very similar and appear to be duplicates. What should be uploaded to the category named "Tons of Recycled Material used in Manufacturing", or will that category be removed?

    Upload the “Net Tons of Newly Diverted Material Used in Manufacturing or Textile Reuse” template. The name does not match do to character limitations in our application system.

  8. The Requests for Proposal states that businesses not subject to a board must include an applicant letter of commitment and confidential letters of commitment from all sources of capital funding. Do you also want separate non-confidential letters of commitment from project partners who are performing activities in the work plan?

    Letters of Commitment are required to authorize the submittal of an application and establish the signature authority for the application/grant. If you are submitting a cooperative application, meaning more than one entity are joining together for the purpose of grant implementation, then you must submit a Letter of Authorization, from each participant authorizing the Lead Applicant to act on its behalf for this cycle. For more information, refer to the Cooperative Lead Application Requirements section on page 19 of the Application Guidelines and Instructions. CalRecycle also provides Letter Examples for your convenience.

    Commitment/Confirmation Letters are required for the Fiscal Soundness scoring category. You may submit additional letters from project partners to support your project.

  9. The grant guidelines state that the lead agency must complete all CEQA requirements for the project within 12 months of the notice to award. How do the CEQA requirements apply to private businesses applying for the grant?

    Compliance for CEQA is a required aspect of the grant program and is specific to each project. All facilities require an environmental review from their local planning department that includes the operation of their grant project. Applicants should state their project’s level of CEQA/environmental review in the Project Readiness and Permits document. In addition, all applicants must complete CalRecycle Form 669 to verify that they have complete all Federal, State, and local permits and licensing requirements. Please refer to the General Checklist of Business Permits, Licenses, and Filings (CalRecycle 669) section on page 16 of the Application Guidelines & Instructions

  10. Is it acceptable to provide two separate Material Flow slides, one showing existing conditions and one showing the proposed project flow?

    Yes.

  11. Your example for the Material Flow Chart is in .pub format. Do you require us to submit it in that format or are other formats such as .pdf or .ppt okay?

    The Material Flow Chart in the application documents is just an example for you to create your own flow chart in any format.

  12. With this application, do you require us to check off item 8 on the Feedstock Certification form or does that only apply to Payment Requests during actual project execution?

    Applicants are not required to check item eight for supporting documentation. Supporting documentation is not required with the form during the application process. However, applicants are encouraged to include all relevant supporting documentation to their project.

  13. As there is no required match commitment, will applicants that identify cost share sources be required to document match expenditures throughout project execution?

    The budget and any budget revision must include CalRecycle’s Recycled Fiber, Plastic, and Glass (FPG) grant funds and all other funds associated with the whole project. Invoices, payment statements, and any other document to support a grant payment request are only needed for FPG grant-funded activities. Please refer to the Budget section on page 15 of the Application Guidelines and Instructions and the Payment Request and Documentation section on pages 11 and 12 of the Procedures and Requirements.

  14. Would a project site meet Criteria A on the worksheet if it is technically not in a disadvantaged community (DAC) census tract, but is within the 1/2 mile zone of an adjacent DAC census tract (as verified in The Half-Mile Zone map: https://www.arb.ca.gov/cc/capandtrade/auctionproceeds/535investments.htm)?

    A project site only meets Criteria A on the Disadvantaged Communities worksheet if it is in the disadvantaged community census tract.

  15. In the applicant's letter of commitment (LOC), can the signer of the LOC authorize him or herself as the Signature Authority, assuming that the signer is the person within the applicant's company with the authority to commit the applicant's organization to the project should it receive CalRecycle funding?

    Yes.

  16. The posted answer states that only two applications will be accepted across the University of California (UC) system. Our office is aware of one application from another UC, but with each of the 10 UC campuses operating independently in the administration of sponsored projects (i.e., own Sponsored Projects Offices and Data Universal Number System (DUNS) number), our office is not aware of how we would coordinate at the UC level in order to comply with this application limit. We are only aware of how this can be ensured at the campus level. Sponsoring agencies (federal, state, and private) typically recognize each UC campus as an independent submitting entity. Given this, is there a possibility CalRecycle would be willing to consider making the application limit per UC campus?

    University of California campuses are governed under the UC Regents; therefore, under our current guidelines we can only accept two applications across the UC system. We suggest connecting with The UC Office of the President to help determine which two applications will be submitted. If more than two applications are submitted, all applicants will be notified.

  17. Please describe what the “performance payment” is, including how CalRecycle will determine whether an applicant is eligible to receive the additional $600,000.

    The performance payment is an approach to ensure that projects not only execute construction but also successfully achieve production that realizes anticipated greenhouse gas (GHG) emission reductions. It also provides an incentive to set realistic tonnage and GHG emission reduction projections in project applications and provides a disincentive to grant “banking” (i.e., when grant funds are awarded but not expended for an extended period of time) or to applying for and receiving funding for projects that are unlikely to develop in a manner similar to that originally proposed.

    An applicant can request up to $2,400,000 for capital expenses and other eligible expenses for the infrastructure portion of the project. CalRecycle will add an additional amount equaling 25 percent of the amount approved for infrastructure expenses for performance payments to all awarded applicants. The applicant will submit a proposed budget based on their requested amount. Do not include the performance payment amount in your application budget. After award, the performance payment portion of the award will be added to the budget in the Grants Management System.

  18. In the event that a lease agreement is not available by the time of application submission, will CalRecycle accept another form of documentation proving the company’s intent to purchase or lease property?

    A copy of any agreement between the applicant and private owner must be uploaded in the Documents tab of the application.

  19. How can an applicant determine if certain “Other Supporting Documents” as listed on the grant application are required for the proposed project? Particularly, the Application Guidelines and Instructions document does not include complete directions for completing the following documents. Please provide additional information to help applicant determine if these documents are required.

    Feedstock Contracts
    GHG Support
    Historical Financial Statements
    Invoices/Quotes
    Outstanding Debt Instrument
    Tax Return

    The Financial Narrative provides a checklist of required documents by entity type.

  20. What type of projected financial statements (as listed on page 16 Application Guidelines and Instructions) is CalRecycle interested in seeing included in the application?

    Balance Sheet, Income Statement which includes an explanation of anticipated revenue from feedstock tipping fees and end product sales, plus a list of the assumptions under which the information was prepared. Please refer to the Financial Narrative document for a checklist of required documents by entity type.

  21. Please confirm that the site address to be provided on the “site” tab should include only the facility location to be built, and not currently operating administrative/corporate offices out of state.

    Yes.

  22. Is the AB20 format required for organizations that would be required to use this format for submitting forms to governmental organizations? Typically, a public organization applying for another public research grant must use the AB20 format, but we do not see any indication requiring this on the guidelines.

    The AB20 format is not a required format for the Recycled Fiber, Plastic, and Glass Grant Program. All applicants must use the application documents included in the Grant Management System.

  23. Are we required to submit a justification for the reasoning behind selecting a certain item to add to the budget?

    Description and use of budget items must be detailed in Narrative Proposal and the Work Plan. Recycled Fiber, Plastic, and Glass Grant Program grant budget items must be described to support them as eligible costs.

  24. What specific personnel costs count as personnel? Do researchers and other scholars count in the personnel section of the budget? If so, what is the percentage of budget that can go to these personnel? If not, would these costs go under admin?

    Personnel costs include salaries and wages directly associated with the project and not related to construction or installation. These can include project managers, supervisors, researchers, scholars, and operations staff. These costs combined with permitting, public education/outreach and other indirect costs shall not exceed five percent of the total amount requested. Construction/installation labor cost is a Construction/Application budget item and has no budget cap. Please refer to the Ineligible Costs section on page 8 and the Budget section on page 15 of the Application Guidelines and Instructions.

  25. Would contractors and laborers working on initial construction for the building go under construction or personnel costs?

    Construction labor is a Construction/Application budget item.

  26. The Financial Narrative and Documentation section of the application requires Commitment/ Confirmation Letters. Do we need this for the beginning of our process, the end of our process, or both?

    The Commitment/Confirmation Letters are required by all applicants by the application due date only.

  27. When I downloaded the documents to be filled in, they download as "octet-stream" files which I then needed to figure out what program I have that will open them. I found some opened with a spreadsheet program and some with a word program (I use Kingsoft with both). When I upload them, do I up load in the original "octet-stream" file or do I upload it as Spreadsheet (or Word) type program? If I upload in the original "octtet-stream" file, how can I know if you can read the file entries if they were made by another program?

    Acceptable document file extensions/types include pdf, doc, docx, xls, xlsx, ppt, odt, ods, pptx, msg, zip. For a full list of acceptable document types, please log into the Grant Management System (GMS) page and visit the GMS Document Upload Policy. If you are having issues opening/saving application documents in the correct format please contact grantassistance@calrecycle.ca.gov or call (916) 324-8867.

  28. Do we need to show that the processed material we sell in-state is ultimately remanufactured in-state? If so, how would we show that after we have already sold it?

    Yes. The processor must provide proof of binding agreement (e.g., contract) with a California facility that is receiving the processed feedstock to make recycled-content finished products. Please refer to the Eligible Projects section on page 6 of the Application Guidelines and Instructions.

  29. Will CalRecycle accept Feedstock Contracts/Certification labeled as “confidential” in the Recycled Fiber, Plastic, and Glass grant application?

    Yes. Feedstock contracts are kept confidential and will be maintained with restricted access.

  30. Would a letter stating the company buys feedstock from the Materials Recovery Facility to market to its manufacturer clients suffice as “proof of binding agreement with a California facility that is receiving the processed feedstock to make recycled-content finished products?” If not, what would?

    No. Proof of binding agreement is a signed supply contract between both parties. A letter stating that a company currently buys feedstock does not necessarily provide support that the company will continue to buy feedstock throughout the project.

  31. Question number four under the Net Tons of Recycled Material Used in Manufacturing or Textile Reuse section of the Narrative Proposal document asks for documentation of adequate feedstock from the waste generator or hauler. Is the feedstock certification document not sufficient for this? What else is needed? Will a letter do?

    The Feedstock Certification Form 778-GHG is completed by the feedstock supplier that only verifies that the eligible feedstock will originate only from California-generated waste that was otherwise going to landfill. Supporting documentation is required to guarantee an adequate amount of feedstock will be supplied during the grant term. Documentation may include a signed supply contract, letter of intent, or other documents indicating the amount of feedstock purchased and date of delivery.

  32. Question number five under the Net Tons of Recycled Material Used in Manufacturing or Textile Reuse section of the Narrative Proposal document asks for verification that material is remanufactured into new products. We process material and then sell it in-state to another processor who then sells to a manufacturer. Is a letter or other document showing that the other processing company accepts our material sufficient? If not, what will we need to show?

    The processor of California-derived fiber, plastic, or glass waste material that would otherwise be sent to landfill must send the material to a California manufacturing facility that will use the feedstock to produce a recycled content finished product. The processing facility must provide proof of binding agreement with the California manufacturing facility that is receiving the feedstock.

  33. Question number six under the Net Tons of Recycled Material Used in Manufacturing or Textile Reuse section of the Narrative Proposal document discussing “yield loss” seems to be aimed specifically at manufacturers. Our project is for processing to increase material recovery and diversion at a Materials Recovery Facility (MRF). Can “yield loss” be the MRF residual rate?

    No. This project is not eligible. A Materials Recovery Facility does not process newly landfill-diverted California-derived fiber, plastic, or glass waste material and send it to a California manufacturing facility that will use the feedstock to produce a recycled content finished product.

  34. Our project is to increase material recovery and diversion at a Materials Recovery Facility. The recycled material that is recovered is sold to another in-state processor. That processor then sells the material to be remanufactured into new products. How should this be depicted on the Newly Diverted Material Flow Chart?

    This project is not eligible. A Materials Recovery Facility does not process newly landfill-diverted California-derived fiber, plastic, or glass waste material and sends it to a California manufacturing facility that will use the feedstock to produce a recycled content finished product.

  35. Are compost and organics numbers required to be included in the estimate of newly diverted feedstock, considering this is a fibers/plastics project?

    No.

  36. Can we submit a "zero waste discharge certificate" from the City as a pre-qualification to California Environmental Quality Act (CEQA) as proof of a clean manufacturing facility and process?

    Yes. However, the application must also demonstrate Project Readiness. Please refer to pages 8 and 16-17 of the Application Guidelines and Instructions for additional information on CEQA compliance and permit requirements.

  37. For scoring, can we highlight the Air & Water Quality Benefits of the end consumer product we are manufacturing (the product saves water and energy)?

    Environmental benefits of the product, such as lower energy use, may be included in the application but the impacts of the manufacturing process on air and water quality must also be described in the Air and Water Quality Benefits section in the Narrative Proposal.

Greenhouse Gas Calculations

  1. For unique technologies that may utilize different quantification methodologies to calculate greenhouse gas emissions reductions, how do we go about submitting an application with a different quantification methodology?

    Applicants that propose eligible projects (i.e. consistent with the eligibility requirements within CalRecycle’s solicitation materials) that cannot be calculated using the Air Resources Board’s greenhouse gas quantification methodology may propose the use an alternative GHG quantification method. For instructions, review the Timeline section on page 3 and the Alternative Methodology Request and Process section on pages 14 and 15 of the Application Guidelines and Instructions.

  2. Will CalRecycle consider greenhouse gas (GHG) emissions reductions from material other than that which is eligible for CRV value? For instance – if a processing facility were to accept all types of plastic (not limited to CRV plastic), could this be considered as part of the evaluation of tons diverted, impact of GHG emissions, etc. or are you only interested in the reduction from plastic specific to that which is eligible for CRV redemption?

    All types of plastics are eligible feedstock as long as the plastics are currently disposed in a landfill.

  3. Can an applicant request usage of an alternative greenhouse gas (GHG) emissions methodology in addition to the GHG emissions calculator provided by CalRecycle, or is the alternative methodology acceptable only as a replacement (i.e., only if the proposed project fits outside of scope of the calculator)?

    Applicants are expected to use the ARB-approved FY 2016-17 quantification methodology but applicants that propose eligible projects (i.e., consistent with the eligibility requirements within CalRecycle’s solicitation materials) that cannot be calculated using the GHG quantification methodology, may propose an alternative GHG quantification method. Please refer to Alternative Methodology Request and Process section on pages 14 and 15 of the Application Guidelines and Instructions.

  4. Are transportation miles that are reduced as a result of the project included in the Greenhouse Gas (GHG) calculator? If not, is there anything we should do to include these?

    Transportation miles associated with all projects, as a statewide average, are included in the GHG Calculator.

  5. If we have an audited full Life Cycle Analysis that captures the greenhouse gas (GHG) savings in supplement to waste diversion, can we include this in the scoring matrix? Will a third party review be accepted?

    The GHG savings need to be quantified using the ARB Quantification Methodology (QM) Calculator. The request deadline (May 4, 2017) to use an alternative methodology for quantifying GHG emissions has past. An audited Life Cycle Analysis may be submitted with the application; however, it may not impact the scoring of the project as this is not a requirement of the grant application.

  6. The “Waste Diversion Greenhouse Gas (GHG) Emission Reduction Calculator for FY 2015-16 and FY 2016-17* (.xlsx)” only list HDPE and PET plastics. We are interested in using plastics that are seldom recycle, such as LDPE (plastic film), ABS and PVC. How would we calculate the GHG Emission Reduction for these “other” plastics diverted?

    The request deadline (May 4, 2017) to use an alternative methodology for quantifying GHG emissions has passed. Please refer to page 14 of the Application Guidelines and Instructions for additional information.

  7. We plan on picking up diverted waste from a Materials Recovery Facility. In most cases the material has a high percentage of non-plastic contaminates (food, and labels). Can we assume the pickup weight is the number we use for the Greenhouse Gas (GHG) calculator and not the final product weight volume?

    No. The weight of contaminants do not contribute to any GHG emission reductions. Only the plastic material that is used to make a finished product should be used in the GHG calculator.

Last updated: May 19, 2017
Climate Change: http://www.calrecycle.ca.gov/Climate/
Contact: climatechange@calrecycle.ca.gov