Beverage Container Redemption Innovation Grant Program

The Beverage Container Redemption Innovation Grant Program (RIG2), administered by the California Department of Resources Recycling and Recovery (CalRecycle), supports innovative projects aimed at enhancing the state's beverage container recycling system. The program is designed to reduce barriers to redemption and expand opportunities for Californians to redeem California Refund Value (CRV) containers. It focuses particularly on increasing the availability of redemption options by funding the start-up costs of new and alternative models such as mobile recycling, bag drop programs, and reverse vending machines (RVMs). CalRecycle, as the administering body, has set aside $21 million for this grant cycle (FY2023–24), with the funding targeted specifically at dealers implementing reverse vending machine (RVM) projects. These projects are required to fulfill the obligations outlined in the Public Resources Code 14578(a)(1), commonly referred to as Option 1, which allows retailers in unserved convenience zones to redeem containers in-store. To apply, dealers must submit a notarized affidavit committing to in-store redemption and be registered in the Dealer Registration and Management System (DReaMS). Eligible applicants include a wide variety of entities: dealers, certified recycling centers, new recycling center businesses, community service programs, nonprofit organizations (excluding private K-12 schools), California local governments, for-profit businesses, public colleges and universities, and qualifying tribal entities. For the RIG2 dealer-specific round, only dealer entities are eligible, and the projects must be limited to RVM installations. The minimum grant award is $150,000 and the maximum is $3 million per applicant. Funding can be used for infrastructure and non-infrastructure expenditures. Eligible costs include purchase of equipment, transportation and travel, educational outreach, vehicles, lease of land or office space, licensing, and permits. However, non-infrastructure costs such as personnel, permitting, education, and administrative costs cannot exceed 20% of the total award. All expenditures must be tied directly to eligible project types like mobile recycling, RVMs, or bag drop systems. The current grant cycle has several important dates. The question and answer (Q&A) period ends on July 15, 2025. Applications must be submitted by August 5, 2025, via the CalRecycle Grants Management System (GMS). Required authorization documents not submitted with the initial application must be uploaded by September 4, 2025. Conditional award notifications are expected in November 2025. The grant performance period begins upon receipt of the Notice to Proceed (NTP) and ends on April 1, 2027, which is also the deadline for submitting the final report and payment request. All questions about the grant must be submitted in writing to BevContainerGrants@calrecycle.ca.gov. Additional assistance related to system access may be requested through grantassistance@calrecycle.ca.gov. Program documentation, including the Criteria, Terms and Conditions, and Procedures and Requirements, can be accessed through the CalRecycle website and the California Grants Portal. Applicants are encouraged to regularly review posted Q&As and stay updated through the program’s email notification list.