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The California Department of Resources Recycling and Recovery (CalRecycle) is accepting applications for two cycles of the Beverage Container Redemption Innovation Grant Program (RIG), RIG2 and RIG3. The overall goal of this program is to help pay start-up costs for recycling programs. Cycles RIG2 and RIG3 have different eligibility requirements, funding levels and application deadlines, which are outlined below.

RIG2 Program

The purpose of RIG2 is to provide funding to eligible retail establishments for reverse vending machines to meet the California Code requirements that beverage dealers redeem all empty beverage container types (Public Resources Code 14578 (a)(1), commonly referred to as Option 1). Reverse vending machines are a stationary reverse vending machine that pays customers for beverage containers placed in the machine at time of deposit.

Who is eligible to apply?

Eligible applicants include “beverage dealers” who are defined as a retail establishment in an unserved convenience zone, which offers the sale of beverages in beverage containers to consumers that is required to redeem in-store. Beverage dealers may be private entities, for-profit businesses or nonprofit organizations (except private K-12 schools).

To be eligible for this funding, beverage dealers need to be authorized to conduct business in California meeting one of the following criteria: by either being registered and in good standing with the California Secretary of State as a business located in California, being registered as a foreign (out-of-state or out-of-country) business or processing a business license issued by a California city, county, or city and county.

Private, nonprofit entities, in addition to being registered and in good standing with the California Secretary of State, must also be registered and in good standing with the California Department of Justice and appear on their Registry of Charities and Fundraisers.

What are RIG2 project requirements?

All projects must be located within an unserved zone or no zone, at time of award. See here for more information about CalRecycle’s definition of convenience zones. Allowable projects will purchase reverse vending machines to satisfy the applicant’s Option 1 requirement.

What are the funding amounts available through RIG2?

There is $21 million available for this grant opportunity. Grant requests may range from $150,000 to $3 million. No match is required.

What is RIG2 program’s application timeline?

Applications are due by August 5, 2025 at 11:59 p.m.

Award announcements are anticipated to be released in November 2025. Projects will start once grant agreements are signed and must be completed by April 1, 2027.

The full Application Guidelines and Instructions for RIG2 can be found here.

RIG3 Program

This program provides opportunities to support start-up costs for recycling programs, limited to recycling centers, mobile recycling, reverse vending machines, or bag drop programs. These funds are also available to existing recycling centers to establish mobile recycling to expand outreach.  The flexibility in the program is intended to encourage recycling centers to be innovative and increase California Refund Value (CRV) redemption opportunities.

Who is eligible to apply?

Eligible applicants must be:

• Existing Certified Recycling Center, defined as an operation certified by CalRecycle to accept empty beverage containers and pay CRV to consumers.
• New Recycling Center Business, defined as an applicant who intends to apply, and is eligible to become, a certified recycling center.  This can include, but is not limited to, beverage dealers.  The new recycling center must be certified prior to the issuance of a grant agreement.

Applicants who are private entities must be in good standing with the California Secretary of State and authorized to conduct business in the State of California. Nonprofit entities must also be in good standing with the California Department of Justice and appear on their Registry of Charities and Fundraisers.

What are eligible project locations?

All projects must be located within an unserved zone or no zone at time of award, unless either of the following exceptions apply:

1. The applicant is the recycling center currently serving the zone.
2. They are the sole recycling center within the zone.

What kinds of recycling methods are allowable?

RIG3 projects should use one of the following innovative recycling methods: 

• Bag Drop Receptacle. A recycling mechanism at which consumers can drop off empty beverage containers for redemption in a sealed bag, sealed box, or other sealed receptacle.
• Mobile Unit. A recycling location or locations where empty beverage containers are collected using a receptacle that is hosted by an anchor recycling center.
• Reverse Vending Machine (RVM). A mechanical device which accepts one or more types of empty beverage containers and issues a cash refund or a redeemable credit slip with a value not less than the container’s refund value.

What are examples of eligible projects?

• Setting up a new recycling center that uses an innovative method of redemption.
• Updating an existing recycling center that uses an innovative method of redemption.
• Re-establishing a recycling center due to destruction from wildfires. Funds from this cycle may be used to re-establish Recycling Centers that had been destroyed or experienced damage due to a wildfire within the preceding ten years.

All recycling centers must align with California state requirements for recycling centers and programs, detailed in the Application Guide and Instructions linked below. 

What are the funding amounts available?

Grant awards may range from $500,000 to $5 million per award. No match is required. A total of $55.39 million has been made available for RIG projects benefitting Recycling Centers.

The following project types are capped at the amounts listed below:

• $18.81 million for Bag Drop Recycling Center Programs

• $18.81 million for Mobile Unit Programs

• $17.76 million for RVM Programs

What is the application timeline?  

Applications are due by September 2, 2025 at 11:59 p.m.

Award announcements are anticipated to be released in January 2026. Projects will start once grant agreements are signed and must be completed by April 1, 2027.

The full Application Guidelines and Instructions for RIG3 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.