Business Food Waste Mitigation Grant Program Frequently Asked Questions
As of April 4, 2025
A. Program Overview and Eligibility
What is the Business Food Waste Mitigation Grant Program?
The Business Food Waste Mitigation Grant Program is an initiative administered by the New York State Department of Economic Development d/b/a Empire State Development designed to reduce business-generated food waste sent to landfill and combustion facilities through the expansion of food waste recycling infrastructure.
What is the funding available for the program? Does this program require a cost share?
$4 million in capital grants will be awarded on a competitive basis, with a minimum award of $100,000 and a maximum award of $750,000. Successful applicants may receive a grant reimbursing up to 50% of the costs of the approved project, not to exceed the award amount.
What types of projects are eligible for this program?
Successful business food waste mitigation projects are those that will expand food waste recycling infrastructure in the State to reduce commercial food waste sent to landfill and combustion facilities, ultimately reducing related greenhouse gas emissions. Projects may include building new, or expanding existing, organics recycling facilities to accept food waste from large-scale businesses, at a minimum.
The grant guidelines indicate that “Projects may include building new, or expanding existing, organics recycling facilities to accept food waste from large-scale businesses, at a minimum.” How do you define “large-scale businesses”? Could college on-campus cafeterias be considered a large-scale business?
As guidance, large-scale businesses generate 2 tons of food waste or more per week. However, projects are not limited to collecting/accepting/processing food waste from businesses of this volume. For example, waste can be collected as part of a combined effort with other food waste generators.
At a minimum, projects must support diverting business food waste. Funded projects must have the capacity to accept/process food waste from businesses that cannot be accommodated at most organics facilities. As noted in the application collective benefits, food waste diverted from nonprofits/not-for-profits such as some colleges and universities, correctional facilities and jails, and military bases also may be considered. A college or university may be considered a large-scale business if it is a for-profit business.
Would a project be considered eligible if it can only accept the co-implementor’s own waste, at least to start?
No, projects must be equipped to accept food waste from other large-scale businesses too.
Are projects obligated to mitigate a minimum amount of food scraps?
No, there is no minimum required. One of the program priorities is diverting the most food waste from landfill and combustion facilities resulting in avoided greenhouse gas emissions. Other program priorities include expanding infrastructure in the State to support food waste recycling from businesses, including in geographic areas where limited or no alternatives exist, and supporting projects that have a clear plan for accepting/collecting food waste and the distribution of byproducts.
What kinds of organizations can apply?
Eligible entities are New York municipalities or non-profit / not-for-profit organizations applying on behalf of themselves or on behalf of a New York State business (co-implementor).
Please see program guidelines for specific eligibility guidelines at this link: Business Food Waste Mitigation Grant Program | Empire State Development
Are “special districts” eligible to apply for funding?
Yes, Special Districts, as defined by NYS Real Property Tax Law, are eligible to apply for Program Assistance.
Who can be a project co-implementor?
A project co-implementor can be a municipality, non-profit/not-for-profit organization, or a NYS business.
Why can’t a business apply directly for a grant?
The Economic Development Law governing this program defines “Eligible Entities” only as New York municipalities or non-profit / not-for-profit organizations. New York State for-profit businesses are precluded from being an Eligible Entity. However, for-profit businesses can partner with an Eligible Entity as a co-implementor.
Are non-profit higher education institutions with 501(c)3 status eligible to apply for funding?
Yes. Non-profit/not-for-profit organizations established under Sections 501(c), 501(e), 501(f), 501(k), 501(n) or 521(a) of the Federal Tax Code that are not involved in religious or political activities are eligible to apply.
B. Eligible Costs
What costs are eligible for Program assistance?
All costs must be capital in nature and directly related to achieving the goal of the approved project. Examples of eligible costs include:
- Machinery and equipment directly related to the project, including associated engineering, shipping, and installation costs. Eligible equipment includes equipment purchased for the purpose of collecting, processing, and recycling food waste from businesses, and the distribution of byproduct(s) such as compost.
- Examples of eligible equipment include but need not be limited to: processing equipment (e.g. compactor, dehydrator, depackager, windrow turner, grinder, in-vessel composting system), management equipment (e.g. forklift, loader), transportation equipment (e.g. trucks for food waste collection and compost distribution).
- Improvements to real property when the costs are integral to the project outcomes. Improvements, alterations, or repairs to real property may include site preparation; demolition; installation or relocation of utilities; construction materials and labor of hired contractors.
What costs are ineligible for Program Assistance?
The following projects, costs, and activities are not eligible for Program Assistance:
- Consultant fees for services such as preparing an application, writing reports, measuring results or performing R&D
- Education and outreach expenses
- Project management expenses
- Technologies, practices and equipment solely intended to achieve compliance with any NYS or local environmental conservation laws or regulations
- In-kind costs
- Permit fees
- Costs incurred prior to award
- Energy production, recovery, conservation, and efficiency
- Municipal waste treatment projects, such as water or sewage treatment facilities
- Projects with outcomes that occur only once
- Equipment warranties
- Lobbying, religious, or political activities
Can grant funds be used to pay for education and outreach and/or project management expenses?
No, these are ineligible costs. All costs must be capital in nature, appropriately documented and related to achieving the program goals.
C. Application Process and Timeline
What is the process for an applicant to apply for a grant?
Eligible applicants seeking funding under the program will be required to complete an application through the NYS Consolidation Funding Application (CFA).
When are applications due?
ESD will accept applications until 4:00 pm May 23, 2025.
Will I be notified if I am eligible or ineligible for an award?
Yes, all applicants will receive a letter from us notifying them if their application was deemed eligible or ineligible for an award.
Will I be notified if I am eligible or ineligible for an award?
Yes. All applicants will receive a letter from us notifying them if their application was deemed eligible or ineligible for an award.
When do you anticipate announcing awards?
Awards should be announced Summer 2025.
Are costs that I have already paid towards a project eligible?
Costs incurred prior to a funding award will not be considered eligible.
Costs incurred after the funding award can be considered toward your total project cost and for reimbursement.
After the funding award, a contract must be prepared and executed between the Eligible Entity and ESD. This may take a few months. Purchases made after a funding award but prior to contract execution are done so at the grantee’s risk.
Can a municipality or non-profit/not-for-profit organization apply on behalf of more than one co-implementor.
A project may have multiple co-implementors. The Eligible Entity (municipality or non-profit/not-for-profit organization) must remain the same and submit separate applications for each co-implementor. Each application must outline individual proposals and associated benefits of each project.
In Question #17148, the Eligible Entity should identify that the application includes multiple co-implementers to be reviewed collectively. In Question #17149, describe the other co-implementors and the collective project benefits of all co-implementors.
If a municipality or non-profit/not-for-profit organization applies on behalf of more than one co-implementor, will each co-implementor need to meet the minimum grant request of $100,000?
No. Each co-implementor will not need to meet the minimum grant request of $100,000 if they are considered part of a larger project under the same Eligible Entity.
If an Eligible Entity utilizes multiple co-implementors for one project, the collective eligible grant funding request must be at least $100,000. As indicated above, applications should identify in Questions #17148 and #17149 that the application is one of multiple applications to be reviewed collectively.
D. Other Questions and Project Requirements
How long is the contract term?
All contracts will have a two-year term; however, ESD may consider no-cost term extension(s), if the project is progressing and merits additional time for completion. The Contractor shall submit a written request and justification for ESD’s consideration. ESD reserves the right to deny such extension requests.
What is the source of these grant funds? Are they Federal funds?
The 2025 Business Food Waste Mitigation Grant Program is funded through the New York State Environmental Protection Fund. These are not Federal funds.
Are there required environmental regulatory permits for building new, or expanding existing, organics recycling facilities to accept food waste from large-scale businesses?
To inquire about required permits and approvals, applicants should reach out to their NYS Department of Environmental Conservation Regional Permit Officers: https://dec.ny.gov/regulatory/permits-licenses/environmental-permits/regional-information.
Will interim payments be made as project elements are completed?
Yes. As mentioned above, awarded Eligible Entities will enter into a two-year contract with ESD. The contract will outline a disbursement schedule for the Eligible Entity and will include a maximum of two disbursements per calendar year, or a total of four disbursements for the two-year contract term.
How does reimbursement work when there is a co-implementor arrangement?
In instances where there is a co-implementor, project expenditures are initially paid by them. The co-implementor submits financial and reporting documents (i.e. - invoices, receipts, copies of checks, banking statements, etc.) to the Eligible Entity, who submits the documents to ESD as a disbursement request. There is no need for an exchange of funds from the Eligible Entity to the co-implementor. ESD reimburses up to 50% of the total project cost, not to exceed the awarded amount, to the Eligible Entity. The Eligible Entity then disburses the ESD funds to the co-implementor.