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The Oregon Department of Environmental Quality (DEQ) has announced the availability of up to $27.4 million for cost-effective small- and large-scale compost projects that reduce the amount of food waste send to landfills, helping to lower greenhouse gas emissions. Small-scale Food Waste Processing grants can range from $50,000-$249,999, and large-scale grants can go up to $2 million. Applications are due November 30, 2026.

What is the purpose of the grant program?

The purpose of the Food Waste Processing Grant is to support projects that expand food waste processing capacity and reduce the amount of food waste sent to landfills. Increasing recovery of food waste helps lower greenhouse gas emissions and supports Oregon’s climate and materials management goals. According to the EPA, food waste is the single largest source of methane generation in landfills, accounting for 58% methane generation. Increasing food waste processing capacity will significantly improve Oregon's ability to recover a larger percentage of wasted food. 

What project types are available?

Large Scale Projects:

• $25.7 million in funds are available to purchase equipment or implement upgrades to increase food waste processing capacity.
• DEQ anticipates funding 18-20 large-scale projects, with a maximum grant award of $2 million.
• Eligible applicants for large-scale projects include DEQ-permitted facilities such as compost facilities; anaerobic digestion facilities; wastewater treatment facilities; transfer station facilities; tribal compost facilities; or on-farm composters (considered on a case-by-case basis).
• Eligible expenses for large-scale projects include food processing, anaerobic digestion, and composting equipment and installation costs; staff time working directly on the project; and indirect costs of up to 15% of staff time and fringe benefits.

Small Scale Projects:

• $1.7 million in grants are available for projects to increase or improve small-scale composting initiatives that support local food production.
• Projects must implement local solutions to address gaps in food waste collection by increasing the amount of food waste recovered for composting or anaerobic digestion, in accordance with state and local solid waste laws. Example projects include localized compost drop-off sites for residents or small business; food waste collection pilot programs for multifamily housing or underserved neighborhoods; pilot programs for on-site composting systems in schools, institutions, local farms, community gardens or schools; and projects that link compost application directly to local food production efforts
• DEQ anticipates funding 6 to 20 small-scale projects, with individual project awards ranging from $50,000 up to $249,999.
• Eligible applicants for small-scale projects include non-profit organizations, local and Tribal governments, businesses, and educational institutions.
• Eligible expenses  for small-scale projects include equipment or improvements that expand local food waste processing; compost procurement and land application tied to local food production, urban farms, community gardens, or regenerative agriculture; and labor costs associated with small-scale installations, skills-based training opportunities, education, and outreach.

What is the application process and timeline?

DEQ accepts grant applications through the online system called WebGrants. Applications will be due November 30, 2026 with evaluation occurring during the month of December. Awards are expected to be announced in early 2027, and the grant period is anticipated for April 1, 2027-April 6, 2029.

The Food Waste Processing Grant Guidance Document can be found here.

For more information on this grant or how to apply with Morrison’s assistance, please contact the Morrison Grants Team by email at grants@morrisonco.net or call us at 530-893-4764.