California Department of Resources Recycling and Recovery (CalRecycle) 

For Immediate Release
February 20, 2013
Release #2013-02

For more information contact:
Media Contact: Heather Jones


CalRecycle Loan Expands Compost Company’s Capacity

SACRAMENTO--A composting facility in San Diego County has received a $1.3 million loan to expand the amount of organic material it can divert from landfills.

Continuing its leadership of the state’s waste reduction and reuse efforts, the Department of Resources Recycling and Recovery (CalRecycle) issued the loan to Agri Service, Inc., an Oceanside business that composts organics from the city’s curbside collection program and from area landscape contractors.

“Increased organics recycling is critical for California to achieve its long-term environmental goals,” CalRecycle Director Caroll Mortensen said. “When we divert these materials from the landfill, we avoid environmental damage, create jobs and conserve natural resources.”

Agri Service employs 18 workers and plans to hire four more as it moves operations to a different section of a 465-acre city-owned property on Oceanside Boulevard near South El Camino Real. The company is building a new “windrow” compost facility, which will include concrete pads with electronic panels that control the amount of air circulating through long rows of compost piles. This helps moderate moisture levels and promotes conversion of the organic matter into usable compost as efficiently as possible.

The new facility, made possible by the CalRecycle loan, means Agri Service Inc. will be able to increase its diversion of organic materials from local landfills from 49,976 tons to 77,800 tons per year.

Organic waste is the largest component of California’s waste stream and comprises a third of all landfill disposal. It is especially troublesome because as it decomposes in landfills, it creates methane, a potent greenhouse gas. AB 341, which went into effect last year, sets a statewide goal to source reduce, recycle, or compost 75 percent of the state’s discards by 2020.

CalRecycle grants low-interest revolving loans through its Recycling Market Development Zone (RMDZ) program, which provides loans, technical assistance, and product marketing to businesses that divert materials from the waste stream. The RMDZ loans help California-based recycling businesses add jobs, create new facilities, expand existing operations, and develop additional markets for recycled-content products.

Since 1993, CalRecycle has approved and funded 170 RMDZ loans totaling approximately $120 million. The program is codified in Public Resources Code Section 42023.1-42024, and annual funding of $5 million initially came from the state’s Integrated Waste Management Fund.

Since 2006, the program has been funded solely from the repayment of outstanding loans. The 4 percent interest rate charged to borrowers covers the state’s costs to administer the loan program.

Information about the RMDZ loan program can be found on the CalRecycle website.

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CalRecycle is the state's leading authority on recycling, waste reduction, and product reuse. CalRecycle plays an important role in the stewardship of California's vast resources and promotes innovation in technology to encourage economic and environmental sustainability. For more information, visit

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