Anaerobic Digester Development (Dairy Digester) Grants

The Washington Department of Commerce administers the Anaerobic Dairy Digester Grant program as part of the state’s broader climate and energy strategy. This program is funded through Washington’s Climate Commitment Act and state capital budget appropriations, reflecting the state’s commitment to reducing greenhouse gas emissions, improving environmental outcomes, and supporting rural economic development. The Department of Commerce is responsible for managing competitive grant processes that align with statewide energy, environmental, and public health priorities, including initiatives that reduce methane emissions and improve waste management practices in the agricultural sector. The purpose of this funding opportunity is to support the development, repair, and upgrade of anaerobic digesters used in dairy operations. These systems process dairy biomass to reduce methane emissions, manage untreated effluent, and generate renewable energy such as electricity or biogas. Eligible projects include new digester construction, repairs to existing systems, upgrades to improve performance, and associated cover and flare projects. The program emphasizes projects that deliver measurable environmental benefits, including reductions in greenhouse gases and improvements in water and air quality. Funding is available through a competitive process, with approximately $12.8 million allocated for this grant cycle. Individual awards range from a minimum of $100,000 to a maximum of $7,000,000. All awards require a minimum non-state matching contribution of 15 percent of the requested grant amount. Funds are distributed on a reimbursement basis for allowable project costs and deliverables. Projects must be construction-ready and capable of being completed within 24 months of contract execution, with an anticipated performance period from March 2026 through June 2027. Eligibility is restricted to applicants operating or planning projects within the state of Washington. Applicants must be licensed to conduct business in Washington or commit to obtaining such licensure within a specified timeframe after selection. Federally recognized tribal entities are also eligible. Projects must be located at or adjacent to an existing dairy and must primarily process dairy biomass, with no more than 50 percent of input material derived from other sources. Feasibility studies are explicitly excluded from eligibility. The application process requires submission of a complete application package that includes technical, financial, and organizational information. Applicants must demonstrate project readiness, provide detailed plans and budgets, and submit documentation supporting their matching funds. Additional required components include certifications and assurances, a diverse business inclusion plan, and use of a benefits calculator tool to quantify environmental impacts. Applications are submitted electronically and must be received by the stated deadline to be considered. Applications were accepted beginning October 22, 2025, and the submission deadline was December 10, 2025. A pre-proposal conference was held in late October to provide guidance to prospective applicants, and a question-and-answer period allowed for clarification prior to submission. Following submission, applications underwent evaluation based on criteria such as greenhouse gas reductions, project readiness, technical feasibility, partnerships, and community benefits. Final award decisions were expected in early 2026, with contract execution beginning shortly thereafter. The program prioritizes projects that are ready to begin construction immediately upon award and that demonstrate strong environmental and community benefits. Additional consideration is given to projects that support vulnerable populations, tribal communities, and overburdened areas. Through this funding opportunity, the Washington Department of Commerce aims to advance clean energy adoption, reduce agricultural emissions, and strengthen the sustainability of the dairy industry within the state.

Prioritize projects that demonstrate strong greenhouse gas reductions, clear project readiness, secured matching funds, and meaningful community or tribal benefits. Emphasize cost effectiveness and partnerships in the application.