The California Department of Food and Agriculture (CDFA) is now accepting grant applications from commercial dairies and livestock operations for the installation of equipment and implementation of practices that result in long-term methane emissions reductions and maximize environmental co-benefits.
Donor Name: California Department of Food and Agriculture
State: California
County: All Counties
Type of Grant: Grant
Deadline: 08/28/2023
Size of the Grant: Up to $1.0 million
Grant Duration: 30 months
Details:
Purpose
The California Department of Food and Agriculture’s (CDFA) Dairy Digester Research and Development Program (DDRDP), awards competitive grants to California dairy operations and digester developers for the implementation of anaerobic dairy digesters that result in long-term methane emission reductions on California dairies and minimize or mitigate adverse environmental impacts.
Funding Information
- Approximately $11.4 million will be available for the 2023 DDRDP. CDFA will fund a maximum grant award of $1.6 million per project for DDRDP projects situated in dairy operations that have not received an AMMP award in the past
- Additionally, applicants who have previously accepted and successfully implemented an AMMP project are eligible to up to $1.0 million per project through DDRDP
- A minimum of 50% matching funds is required, with a limit of 25% for in-kind contributions
- The maximum project term is thirty (30) months
- The grant agreement term for awarded projects is anticipated to begin March 1, 2024. Grant funds cannot be expended before the start of the grant agreement, or after the completion of the grant term.
- CDFA may offer an award different than the amount requested.
Allowable Costs
- Project costs must clearly support the implementation of the digester and associated biogas end-use system, and nutrient management technologies. Categories listed below are consistent with the project Budget Worksheet template. Allowable project costs include, but are not limited to:
- Supplies: Supplies and materials are items with an acquisition cost of less than $5,000 per unit and have a useful life of less than one year
- Equipment: Equipment is an article of nonexpendable, tangible personal property and has a useful life of more than one year, and a purchase cost that equals or exceeds $5,000 per unit
- Contractor/Consultant: Contractor fees are limited to labor to install the project. Consultant fees are for a specific and identifiable service that is directly related to project implementation. Compensation for individual contractor/consultant fees must be reasonable and consistent with fees in the marketplace for the same or similar services
- Design and engineering: Design and engineering costs, including those provided by contractor/consultants up to 5% of the total amount requested are allowable. Compensation for design and engineering fees must be reasonable and consistent with fees in the marketplace for the same or similar services
- Other Costs: Other direct costs and expenses for implementing the project not covered in any of the previous categories, including secondary lagoon lining costs.
Eligibility Criteria
- The project site must be located on a commercial California dairy operation. Individuals and/or entities receiving grant award funds must be located in California with a physical California business address
- A dairy operation is defined as an entity that operates a dairy herd, which produces milk or cream commercially, and whose bulk milk or bulk cream is received or handled by any distributor, manufacturer, or any nonprofit cooperative association of dairy producers. Existing milk producers, California Native American Tribes, and dairy digester developers are eligible for this program
- An applicant may submit multiple grant applications; however, each grant application must represent an individual digester project at a unique project site (i.e., dairy operation). Individual dairies can only submit one application per submission period (i.e., multiple developers cannot apply for the same dairy operation).
Program Requirements
- The DDRDP will support the implementation of dairy digester projects on California dairy operations that result in permanent, annual and measurable GHG emission reductions
- Projects must use methane for energy production or transportation fuel (e.g., including but not limited to renewable natural gas – RNG). Projects that propose flaring as the sole end-use for biogas will not be eligible for funding. Projects must either convert biomethane to renewable electricity or fuel (to use on-site or inject into an existing pipeline), or for the utilization of energy at a neighboring facility
- At least 80% dry weight of the feedstock for anaerobic digestion must be manure from dairy livestock. Other substrates, such as dairy processing wastes including whey, or other agricultural waste, can be added to the feedstock to up to 20% dry weight. Applicants must provide details regarding the nature and sources of all co-substrates
- Grant recipients will be required to submit quarterly progress reports to CDFA explaining in detail the project’s progress. Recipients must also report their annual GHG emissions reduction data to CDFA for five years after the end of the project term and/or the digester becomes operational.
For more information, visit CDFA.
