For Immediate Release
November 18, 2014
Media Contact: Mark Oldfield
Historic New CalRecycle Grants to Reduce Greenhouse Gas Emissions
UPDATE: The status of one grant originally announced in this news release has subsequently changed and has thus been removed from this news release. A different grant award will be announced soon.
SACRAMENTO--Strengthening recycling’s role in the fight against climate change, the California Department of Resources Recycling and Recovery (CalRecycle) today announced eight projects it will support with its newly established greenhouse gas reduction grants.
In all, $19.5 million has been earmarked for construction of new facilities, expansion of existing facilities, and equipment upgrades to process greater amounts of recycled materials. The grants, using proceeds from the state’s Greenhouse Gas Reduction Fund, are awarded based primarily on contributions to the state’s greenhouse gas reduction targets. The projects are also important in California’s effort to reach its statewide goal of 75 percent recycling, composting, and source reduction by 2020.
“These projects will directly reduce greenhouse gas emissions by keeping material out of landfills through composting, recycling, and waste prevention,” CalRecycle Director Caroll Mortensen said. “By providing financial incentives for capital investment, we can expand the infrastructure needed to divert more material to secondary uses, which will help create jobs and strengthen our ability to manage materials to their highest and best uses.”
Methane-producing green waste and other organic material diverted from landfills can be turned into soil amendments and fuels. Likewise, using recycled materials such as plastic, fibers and glass to create new products requires less energy in both the extraction and production processes, further reducing carbon emissions.
The Budget Act of 2014 authorized CalRecycle to issue grants that result in reduced greenhouse gas emissions. CalRecycle allocated $14.5 million for organics projects and $5 million for fiber, plastic, and glass projects. CalRecycle worked closely with the Air Resources Board, which is responsible for California’s cap-and-trade program. Proceeds from cap-and-trade program fund the programs supported by the Greenhouse Gas Reduction Fund.
Grant applicants were required to be new or expanded infrastructure projects, calculate greenhouse gas reductions, reduce landfill disposal, and include a thorough work plan including a readiness to move forward quickly. Preference points were 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. Five of the eight projects are located in disadvantaged communities, and approximately 55 percent of the $19.5 million will be used in those areas.
Under CalRecycle’s Organics Grant Program, five entities were selected for funding via a competitive scoring process from among 51 applicants requesting a total of $119 million. The maximum grant award is $3 million per project.
- CR&R Incorporated (Perris) will receive $3 million to expand its current anaerobic digestion facility at the Perris Transfer Station and Materials Recovery Facility. The expansion will double its processing capacity, resulting in the diversion of an additional 229 tons of organic material from landfills per day. The organics will be recycled into natural gas and organic soil amendments. The project is expected to create approximately 50 to 75 temporary construction jobs and 20 to 30 permanent jobs.
- Colony Energy Partners, LLC (Tulare and Fresno) will receive $2.9 million to build a high-solids anaerobic co-digestion facility that will divert more than 110,000 tons of waste from landfills each year. The organics will be converted into natural gas for injection into the natural gas grid and distributed through an on-site fueling station for use as a transportation fuel. As part of the waste diversion activities, Fresno Metro Ministry will expand the Fresno Food Recovery Network and divert an additional 65 tons of food per year from landfills and provide it to those in need. The project is expected to create approximately 10 temporary jobs and eight permanent jobs.
- Mid Valley Disposal, Inc. (Kerman) will receive $3 million for a new covered, aerated, static-pile composting operation at its materials recovery facility and transfer station, diverting an additional 42,100 tons of material from landfills each year. The project is expected to provide up to 36 temporary construction jobs and four permanent jobs.
- Recology East Bay Organics (Oakland and San Francisco) will receive $3 million for processing equipment to extract organic material intermingled with mixed solid waste. The diverted organic material will be anaerobically digested to produce biomethane, which will be used to power the East Bay Municipal Utility District wastewater treatment plant. Surplus power will be sold to the Port of Oakland. The project will create approximately seven temporary jobs and four permanent jobs, and divert an additional 20,400 tons of material from landfills each year.
- Burrtec Waste Industries, Inc. (Victorville) will receive $2.5 million to build a covered, aerated, static-pile composting operation and a mixed-waste processing facility. The compost project will create approximately 25 to 30 temporary jobs and five permanent jobs, with additional jobs created for the processing facility, and will divert an additional 30,800 tons of material from landfills each year.
Under CalRecycle’s Recycled Fiber, Plastic, and Glass Grant Program, three California businesses were the top scorers among 20 applicants requesting a total of $37 million to expand the manufacturing of recycled-content products in the state. The maximum grant award is $3 million per project.
- Command Packaging (Vernon), which manufactures reusable plastic carry-out bags, will receive $3 million to upgrade its facility equipment to produce bags with higher recycled content that can be reused up to 125 times and ultimately be recycled. The funding will also help expand capacity at its Salinas-area Encore Recycling facility, which diverts agricultural film plastic and drip tape from landfills for use by Command in its bag-making operation. This project is expected to create approximately 60 new jobs.
- Peninsula Plastics Recycling, Inc. (Turlock) will receive $1 million for equipment that will enable it to recover approximately 45 percent of its current recycling process by-product and recycle it into landscaping material. This project is expected to create approximately nine new jobs.
For more information, see CalRecycle’s Organics Grant Program webpage and Fiber, Plastic, and Glass Grant Program webpage. These pages will be updated regularly and will include more information on grant recipients, as well as on new recipients should additional funds become available.
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 www.calrecycle.ca.gov.