Putting CalRecycle’s SB 1383 Grant Funds to Work

You secured the funding. Now, the hard part: “what exactly can we spend this on and how do I do that in time?” It sounds like a good problem to have, and it is, but grant awards come with a broad list of eligible cost categories, a budget document to complete, and a compliance clock that’s already running. Staff who worked hard to get here are suddenly fielding a different kind of pressure and are wondering if they might need to refund CalRecycle any unspent funds.

This post breaks down what CalRecycle’s SB 1383 Local Assistance Grant Program can fund, with a practical eye toward the investments that tend to move the needle most on long-term compliance.

What Can Grant Funds Actually Cover?

The eligible cost categories under the program are broader than many jurisdictions realize. Here’s a practical breakdown of how funds can be put to use:

• Program Evaluation and Gap Analysis. Before you can close compliance gaps, you need to know where they are. Grant funds can support a formal gap analysis – a structured assessment of where your current programs, contracts, ordinances, and data practices stand relative to SB 1383 requirements. This is often the highest-leverage investment a jurisdiction can make, particularly those still in early or mid-stage implementation. Consultants with SB 1383 expertise (including firms like R3) can conduct this work, giving staff a clear roadmap rather than a pile of regulatory text.
• Education and Outreach. Community behavior change is foundational to SB 1383 success, and it’s also one of the most resource-intensive pieces of the program. Grant funds can cover the development and printing of outreach materials, container labels, warning/opps tags, multilingual communications, targeted campaigns for hard-to-reach generators, and even mobile app development, a newer addition to the eligible cost list. Jurisdictions can also fund staff time dedicated to outreach coordination or even food scrap kitchen pails as a free giveaway to help residents recycle their organics correctly.
• Edible Food Recovery Program Support. Building a Tier 1 and Tier 2 edible food recovery network requires coordination between commercial generators, recovery organizations, and the jurisdiction itself. Grant funds can support the infrastructure of this work: developing agreements, conducting capacity assessments, acquiring tools like food dehydrators or mobile pantries, and establishing the record-keeping systems that back up your annual reports. Grant funds can also cover edible food recovery software to help bridge the gaps between the doners, nonprofits and Cities.
• Collection Infrastructure. Physical infrastructure (containers, vehicles, heavy equipment vehicles, trailers, , and any other equipment that aids with increasing diversions) is eligible. For smaller jurisdictions or special districts managing collection in-house, this can be a significant benefit. Even jurisdictions contracting with haulers may have roles in container procurement or managing bulky item and organics collection at public facilities.
  

  Don’t have the infrastructure in place? Some agencies have even used the grant to help fund feasibility studies for new diversion facilities or programs.

• Compliance Monitoring and Enforcement. The enforcement side of SB 1383 is where many jurisdictions still feel underprepared. Grant funds can support building out inspection protocols, staff trainings, and the documentation systems needed to demonstrate a compliant enforcement program. Even the record-keeping infrastructure that CalRecycle reviewers look at during compliance verification can be covered, whether that is development of a software or building an internal hub.
• Procurement Requirements. SB 1383 requires jurisdictions to procure recovered organic products (compost, mulch, renewable natural gas, and recycled paper products) at levels proportional to their size. Grant funds can be used to offset procurement costs and may be used to purchase woodchippers, baggers, compost spreaders and infrastructure to track and report on procurement compliance, which trips up more jurisdictions than you might expect. Some jurisdictions use these funds to conduct a Waste Characterization Study to lower their procurement requirement.
  

  Did you know up to 10% of recovered organic waste procurement can include mulch and food waste? These remaining funds can be used to write the mandatory ordinances supporting procurement, or even the infrastructure necessary to make it happen. Does your procurement target feel out of reach? Fund a waste characterization study to lower your CalRecycle-established targets.

Please see updated AB2902 and AB 2346 Guidance.  R3 can help guide you through the new, creative opportunities these updates highlighted.

A Few Things to Keep in Mind

1. Grant expenditures must align with your approved budget. CalRecycle requires spending be allocated in your approved budget, so be sure to get an approved budget modification prior to expending any funds on new cost categories. Stay in regular contact with your grant manager and let R3 know if you need assistance in amending your budget!
2. Report deadlines are real. Grant terms have firm final report and expenditure deadlines. Jurisdictions that treat grant management as an afterthought sometimes find themselves scrambling or even returning unspent funds.

Upcoming Deadlines

• November 2, 2026: Final Report Due
• November 2, 2026: Grant Term End

We Can Help!

As we near the final quarter of the OWR4 grant process, jurisdictions should be  focusing on how available funding can be aligned with the SB 1383 compliance work that will have the greatest impact. R3 Consulting Group works with jurisdictions across California on SB 1383 planning and implementation. Our team supports compliance gap analyses, ordinance and policy development, edible food recovery program support, procurement assistance, reporting, budgeting, implementation planning, and more.

Whether you are refining your OWR4 scope, identifying priority projects, or preparing to put grant funds to work, R3 can help you develop a practical approach that makes the most of this funding opportunity for your community. We have helped develop a multitude of creative grant programs tailored to specific community needs and can help develop a program that will be impactful in your jurisdiction. Contact R3 to start the conversation; we can help you make the most of what you have.