Addendum 1_Program Guidelines FINAL.pdf

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Industrial Symbiosis Grant Program 2024 | Application Guidelines

Industrial Symbiosis Program – 2024 Grant Program Application Guidelines Administered by the Washington State Department of Commerce

I. PURPOSE AND BACKGROUND

Washington’s investment in the Industrial Symbiosis Program, as directed in RCW 43.31.625, is a catalyst for turning industrial waste into added-value resources, while creating jobs and stimulating economic development.

Through this statute, Commerce provides funding for eligible, innovative projects through the annual grant program as directed by the Legislature (RCW 43.31.635).

The Washington State Department of Commerce, herein, “Commerce” is soliciting applications from those qualified and interested in participating in a grant project to reduce, reuse, or eliminate waste that benefits

Washington’s circular economy.

Commerce intends to award multiple grant contract(s) to provide the services described in these guidelines.

The Washington State Legislature created the Industrial Symbiosis Program within Commerce to create

“valuable collaborative opportunities where the underutilized resources of one company…may be used by another” (Exhibit A). Companies understand their bottom line and continually seek to minimize the expense of waste treatment and disposal. This program seeks to go beyond waste reduction by finding beneficial uses for this waste. Turning waste into a resource benefits the producer and stimulates new business opportunities that support a circular economy. Innovation is happening around the world to move this idea forward and the state of Washington is ready to accelerate it. This new program will look across the state to expand existing industrial symbiosis efforts, assist others that are on their way, and support those still on the drawing board.

More detailed information about industrial symbiosis and potential opportunities in Washington can be found on Commerce’s Industrial Symbiosis Program webpage. Additional information may be found in Commerce’s report to the legislature in November, 2019 entitled “Washington Industrial Waste Coordination (Industrial

Symbiosis) Program Recommendations”.

Examples of industrial symbiosis can be found in varied sectors of the Washington economy. Agricultural organic waste is now being repurposed for composting, nutrient removal, biochar and renewable natural gas.

Pulp and paper mills have recognized the valuable lignins and sugars in their liquid waste while fly ash from boilers may have a role in soil health for Washington farms. Utilities have long been a leader in reusing biosolids in agriculture and reclaiming water for non-potable uses. Waste heat is now recognized as a key resource for businesses who can co-locate near major heat generators like data centers. Clearinghouses now serve as a key tool in helping businesses and other organizations find supplies of both post-consumer and industrial waste. Research will also be critical in finding and testing potential uses of newly purposed waste such as biochar from forest biomass put to use filtering stormwater pollutants or compost odors.

https://app.leg.wa.gov/RCW/default.aspx?cite=43.31.625 https://app.leg.wa.gov/RCW/default.aspx?cite=43.31.635 https://app.leg.wa.gov/RCW/default.aspx?cite=43.31.635 http://choosewashingtonstate.com/why-washington/our-key-sectors/industrial-symbiosis/ http://www.commerce.wa.gov/wp-content/uploads/2019/12/Industrial-Waste-Coordination-Industrial-Symbiosis-Report.pdf http://www.commerce.wa.gov/wp-content/uploads/2019/12/Industrial-Waste-Coordination-Industrial-Symbiosis-Report.pdf

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II. OBJECTIVES AND SCOPE OF WORK

Successful applicants will advance an industrial symbiosis project through expansion of existing efforts, implementation of a new project or research and development into new areas and technologies that will repurpose industrial waste for beneficial use. Commerce will seek to distribute funds in a geographically diverse manner across the state to both urban and rural areas.

The scope of work for these awards is not limited to the confines of the Industrial Symbiosis Program. The program, as described above and in statute (Exhibit A), seeks to broaden existing efforts and technologies beyond simple waste management solutions by supporting new and innovative ideas. While the scope of this request is broad within the Industrial Symbiosis Program, the following project categories are highlighted:

Waste heat reuse

- Industrial

- Commercial

- Data centers

Agriculture

- Field waste

- Food processing waste

- Aquaculture

Forestry

- Woody biomass

- Mill waste

Utilities

- Water reclamation

- Nutrient recovery

Built environment waste

- Collection and separation

- Reuse

- Recycling

Food waste

- Source separation

- Composting

- Nutrient recovery

- Biogas

Waste plastic

- Industrial

- Commercial

Facilitation of multi-partner projects

- Identification of potential companies and municipal partners;

- Screening assessments of the potential partners;

- Recommendations and next steps.

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Commerce has budgeted an amount not to exceed $2,850,000 for this competitive grant program cycle (FY 2025) as directed by the legislature (RCW 43.31.635). This amount includes $2 million funding from the Climate Commitment Act (CCA) account. Applicants should apply for grant funds within a range of $150,000 to $500,000 per project.

Applications in excess of this amount will be considered non-responsive and will not be evaluated.

Commerce intends to issue multiple grant awards to be utilized in locations across the state of Washington. Final awards are contingent on the availability of funds and will be determined by Commerce based on the number of qualified candidates and the level of funding requested. Additional funding is not guaranteed. In accordance with Chapter 376, Laws of 2024, the $2 million appropriated from the Climate Commitment Act (CCA) account will not become available if Initiative Measure No. 2117 becomes law.

Grant funds will be awarded on or around November 22, 2024 and all awarded funds must be utilized by June 30, 2025.

NOTE: Grant funding may not be used towards equipment. Applications which propose purchase or lease of capital equipment will be ineligible and not considered.

III. ELIGIBILITY

Commerce seeks Applicants who will advance an industrial symbiosis project through expansion of existing efforts, implementation of a new project, or research and development into new areas and technologies that will repurpose industrial waste for beneficial use.

This grant funding opportunity is open to any private, non-profit, tribal, or public/government entity who is taking steps to support the reduction, reuse, or elimination of industrial waste to benefit Washington’s circular economy.

Minimum requirements: The following must be met to be considered eligible for funding:

Applicant is licensed to do business in the state of Washington or submit a statement of commitment that it will become licensed in Washington within thirty (30) calendar days of being selected for a grant award.

Please provide your Uniform Business Identifier (UBI) number on application.

Project team has five years combined experience in the following areas:

1. Project management or technical experience in waste management;

2. Project management or technical experience in sustainable systems research; and/or

3. Business development in waste management or sustainable systems.

Applicant can secure a non-state funding match equal to or greater than 1:1. In-kind or cash claimed as match for this program cannot be claimed as match for any other funding sources. Match cannot originate from any state sources and may not be incurred prior to the award date.

https://app.leg.wa.gov/RCW/default.aspx?cite=43.31.635 https://app.leg.wa.gov/RCW/default.aspx?cite=43.31.635

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Ability to comply with the period of performance for resulting scope of work contracts starting on or about December 10, 2024 through June 30, 2025 for project completion. Amendments extending the period of performance, if any, shall be at the sole discretion of Commerce.

Specific restrictions apply to contracting with current or former state employees pursuant to RCW chapter 42.52.

Applicants should familiarize themselves with the requirements if submitting a project application that will include work by current or former state employees.

Applicants that do not clearly meet minimum qualifications listed above are non-responsive and will not be evaluated.

IV. APPLICATION PROCESS

Applications must be written in English and submitted electronically to ispgrants@commerce.wa.gov – Commerce will send a receipt of confirmation once an application is received within 24 hours (or the next business day) however the agency does not assume responsibility any e-mail delivery issues.

A complete submission is required to be considered eligible, including:

Fully-completed Application:

- Project General Budget (within application form and/or separate pages, if needed)

- Technical Proposal (within application form and/or separate pages, if needed)

- Management Proposal (within application form and/or separate pages, if needed)

- Environmental Health Disparities

Diverse Business Inclusion Plan Form

Certifications and Assurances Form

Contractor Certification

Small or Veteran-Owned Business Certification

The following section contains information and steps to follow to apply for the Industrial Symbiosis Grant

Program. Only complete applications submitted by November 1, 2024 5:00 PM PST will be considered for evaluation. A pre-proposal conference will be held on October 10, 2024 10:00 AM PST via virtual meeting link.

Successful Applicants will be notified of grant funding awards on or around November 22, 2024. The grant application form is available at https://choosewashingtonstate.com/why-washington/our-key-sectors/industrial-symbiosis/.

mailto:ispgrants@commerce.wa.gov https://gcc02.safelinks.protection.outlook.com/ap/t-59584e83/?url=https%3A%2F%2Fteams.microsoft.com%2Fl%2Fmeetup-join%2F19%253ameeting_NzljOGNkYWYtNzU0Zi00NWIwLThlMzAtZTM1YTQ2YzQxZGY3%2540thread.v2%2F0%3Fcontext%3D%257b%2522Tid%2522%253a%252211d0e217-264e-400a-8ba0-57dcc127d72d%2522%252c%2522Oid%2522%253a%252284356a34-f734-4ae3-ae44-d9a5ddb3d7e9%2522%257d&data=05%7C02%7Cleslie.perkins%40commerce.wa.gov%7C67b7a4354efe4e8e266908dcde877a5a%7C11d0e217264e400a8ba057dcc127d72d%7C0%7C0%7C638629920650390231%7CUnknown%7CTWFpbGZsb3d8eyJWIjoiMC4wLjAwMDAiLCJQIjoiV2luMzIiLCJBTiI6Ik1haWwiLCJXVCI6Mn0%3D%7C0%7C%7C%7C&sdata=jeLuNTA%2FuzoV4n7JGjc9S9bfwVA7VWninC6bh38jWtA%3D&reserved=0 https://choosewashingtonstate.com/why-washington/our-key-sectors/industrial-symbiosis/ https://choosewashingtonstate.com/why-washington/our-key-sectors/industrial-symbiosis/

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Late applications submitted after November 1, 2024 5:00 PM PST, will not be accepted and will be automatically disqualified from further consideration. Failure to respond to any portion of the procurement document may result in rejection of the application as non-responsive.

Please direct all application questions and any assistance needs to:

Contact: Kirk Esmond/Leslie Perkins Email: ispgrants@commerce.wa.gov Office of Economic Development and Competitiveness, Circular Economy Unit Washington State Department of Commerce

Review and Evaluation: All applications will be thoroughly reviewed for minimum eligibility criteria. Commerce may contact applicants if clarification or additional information is sought. Applicants are not permitted to submit, resubmit, correct, or change any materials of any kind after Commerce will designate one or more evaluation team(s) to evaluate the applications and determine the ranking of the project proposals. Commerce will notify applicants via email regarding application status.

Scoring: The following weighting will be assigned to each proposal section for evaluation purposes. Subsections may or may not be of equal weight.

Project Cost Budget – Mandatory and not scored

Technical Proposal – 75%

Project Approach/Methodology

Work Plan

Project Schedule

Outcome and Performance Measurement

Risks

Deliverables

Management Proposal – 20%

Project Team Structure

Internal Controls

Staff Qualifications and Experience

Environmental Health Disparities – 5%

Workers’ Rights Certification (Optional) – An extra 5% of awarded points added to final score

Applicant to certify they do not require their employees to sign an individual arbitration clause as a condition of employment.

Debriefing: Any Applicant not selected for a funding may request a debrief meeting. The request for a debriefing conference must be received by the Grant Manager within three (3) business days after the Applicant receives the email notification of not being selected. The debriefing must be scheduled within three (3) business days of the request. Discussion at the debriefing conference is strictly limited to the following:

Evaluation and scoring of that Applicant’s submission;

mailto:ispgrants@commerce.wa.gov

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Any written comments from evaluators related to that Applicant;

Review of Applicant’s final score in comparison with the other final scores without identifying the other Applicants or reviewing their project proposals;

Comparisons between projects or evaluations of the other projects is not allowed.

All applications and any accompanying documentation become the property of Commerce and will not be returned.

Submission of an application does not guarantee that applicants will receive funds.

III. INVOICING & REPORTING

Commerce will perform an organizational survey and risk assessment on all grant recipients, this will occur prior to contract execution. The project performance period starts when the contract is finalized.

Project expenditures submitted for reimbursement under this grant award must be necessary and reasonable for the approved project. All expenditures are to be billed to Commerce with a progress report on a deliverables basis.

No funding payments shall be requested or paid in advance of goods or services provided. Commerce is unable to process expenses retroactively.

Additionally quarterly status reports will be required to be submitted to Commerce. The reports are to highlight progress and performance and to ensure that all awarded funds will spent by June 30, 2025. Commerce will provide the reporting templates.

Eligible expenses – The following expenditures are allowable, as funds from State grants, matching or otherwise, may be utilized for:

Indirect and Direct operating expenses tied to the specific program/body of work

Payroll & fringe benefits

Travel in alignment with the organization's travel policy and with OFM: Travel | Office of Financial Management (wa.gov)

Meals & Event expenses tied to the program and are justifiable

Legal and Audit expenses (must be tied to the program/body of work)

The purpose of monitoring by Commerce is to ensure contractual compliance on the part of grant recipients and to ensure that financial records support program expenditures. Commerce staff may schedule on-site visits.

Commerce reserves the right to amend or terminate the contract and award remaining funds to the next highest ranking grant applicant willing and able to spend the funds by June 30, 2025.

Successful Applicants will negotiate contracts with Commerce between November 22 - December 10, 2024.

Contracts will be signed no earlier than December 10, 2024. Awarded projects will submit progress reports on scope of work deliverables and follow an expenditure reimbursement process.

https://ofm.wa.gov/accounting/administrative-accounting-resources/travel https://ofm.wa.gov/accounting/administrative-accounting-resources/travel

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Financial management systems shall reflect accurate, current, and complete disclosure of financial results of the project. Grant recipients are to maintain books and records, supported by source documentation, that sufficiently and properly reflect the source of funds and all costs expended for program purposes. These records and financial statements are subject to inspection, review, reproduction, and/or audit by Commerce or its designees for at least six years after the dispersal of funds, the termination or expiration of the grant, or the resolution of litigation or audits related to the program, whichever is latest.

Termination: In the event Commerce determines the Applicant has failed to comply with the conditions of grant program award, Commerce has the right to suspend or terminate the contract. Before suspending or terminating a contract, Commerce shall notify the Applicant in writing of the need to take corrective action. If corrective action is not taken within thirty (30) calendar days, the contract may be terminated or suspended.

Termination for Convenience: Commerce may, by ten (10) business days written notice, beginning on the second day after the mailing, terminate a contract, in whole or in part. If a contract is so terminated, Commerce shall be liable only for payment required under the terms of a contract for services rendered or goods delivered prior to the effective date of termination.

In the event funding from state, federal, or other sources is withdrawn, reduced, or limited in any way after the effective date of the award and prior to normal completion, Commerce may suspend or terminate the performance contract under the "Termination for Convenience" clause, without the ten calendar day notice requirement. In lieu of termination, the Contract may be amended to reflect the new funding limitations and conditions.

Additional information is provided in Exhibit A regarding the Industrial Symbiosis Statute.

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Exhibit A

INDUSTRIAL SYMBIOSIS STATUTE

RCW 43.31.625

Industrial waste coordination program.

(1) An industrial waste coordination program is established in order to provide expertise, technical assistance, and best practices to support local industrial symbiosis projects.

(2) The industrial waste coordination program must be administered by the department of commerce and administered regionally, with each region provided with a dedicated facilitator and technical and administrative support.

(3) The industrial waste coordination program must facilitate waste exchange by:

(a) Developing inventories of industrial waste innovation currently in operation;

(b) Generating a material flow data collection system in order to capture and manage data on resource availability and potential synergies;

(c) Establishing guidance and best practices for emerging local industrial resource hubs, which must include a consideration of steps to avoid creating or worsening negative impacts to overburdened communities as identified by tools such as the department of health's environmental health disparities map;

(d) Identifying access to capital in order to fund projects, including federal, state, local, and private funding;

(e) Developing economic, environmental, and health disparities metrics to measure the results of industrial or commercial hubs;

(f) Hosting workshops and connecting regional businesses, governments, utilities, research institutions, and other organizations in order to identify opportunities for resource collaboration;

(g) Assisting entities throughout the entire life cycle of industrial symbiosis projects, from identification of opportunities to full project implementation;

(h) Developing economic cluster initiatives in order to spur growth and innovation; and

(i) Making any additional recommendations to the legislature in order to incentivize and facilitate industrial symbiosis.

(4) The department of commerce may coordinate with other agencies, representatives of business and manufacturing networks, and other entities in order to develop material flow generation data and increase multisectoral outreach.

http://app.leg.wa.gov/RCW/default.aspx?cite=43.31.625

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(5) In generating the material flow data collection system under subsections (3)(b) and (4) of this section, the department of commerce may only use publicly available data or data voluntarily provided by program participants. No entity may be required to disclose material flow data. The department of commerce must keep any proprietary business information confidential and such information is exempt from public disclosure, as provided in RCW 42.56.270.

[ 2021 c 308 § 2.]

NOTES:

Findings—Intent—2021 c 308: "The legislature finds that industrial symbiosis networks create valuable collaborative opportunities where the underutilized resources of one company, such as waste, by-products, residues, energy, water, logistics, capacity, expertise, equipment, and materials may be used by another. The legislature further finds that many existing businesses and organizations in the state have the potential to partner in the establishment of these networks, and the formation of industrial symbiosis innovation hubs at the state and local level would facilitate a systems approach that identifies business opportunities to improve resource utilization and productivity for a more sustainable and integrated industrial economy.

Therefore, the legislature intends to establish a statewide industrial waste coordination program in order to nurture and coordinate existing industrial symbiosis efforts and to catalyze new industrial symbiosis opportunities. Furthermore, the legislature intends to establish the program in order to: Find ways of turning waste and by-products into valued resource inputs; reduce waste management costs; generate new business opportunities; increase the size and diversity of business networks; identify means of improving environmental performance; achieve environmental justice in goals and policies; incentivize pathways to family-wage, green jobs; expand the regional circular economy; and drive innovation." [ 2021 c 308 § 1.]

RCW 43.31.635

Industrial symbiosis grant program.

(1) Subject to the availability of amounts appropriated for this specific purpose, a competitive industrial symbiosis grant program is established in order to provide grants for the research, development, and deployment of local waste coordination projects.

(2) Grants may go towards:

(a) Existing industrial symbiosis efforts by public or private sector organizations;

(b) Emerging industrial symbiosis opportunities involving public or private sector organizations, including projects arising from:

(i) The industrial waste coordination program established in RCW 43.31.625;

http://app.leg.wa.gov/RCW/default.aspx?cite=42.56.270 http://lawfilesext.leg.wa.gov/biennium/2021-22/Pdf/Bills/Session%20Laws/Senate/5345.SL.pdf?cite=2021%20c%20308%20%C2%A7%202 http://lawfilesext.leg.wa.gov/biennium/2021-22/Pdf/Bills/Session%20Laws/Senate/5345.SL.pdf?cite=2021%20c%20308%20%C2%A7%201 http://app.leg.wa.gov/RCW/default.aspx?cite=43.31.635

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(ii) Conceptual work completed by public utilities to redirect their wastes to productive use; or

(iii) Existing inventories or project concepts involving specific biobased wastes converted to renewable natural gas;

(c) Research on product development using a specific waste flow;

(d) Feasibility studies to evaluate potential biobased resources;

(e) Feasibility studies for publicly owned utilities to evaluate business models to transform to multiutility operations or for the evaluation of potential symbiosis connections with other regional businesses; or

(f) Other local waste coordination projects as determined by the department of commerce.

(3) The department of commerce must develop a method and criteria for the allocation of grants, subject to the following:

(a) Project allocation should reflect geographic diversity, with grants being distributed equally in western and eastern parts of the state, urban and rural areas, and small towns and large cities;

(b) Project allocation should consider factors such as time to implementation and scale of economic or environmental benefits;

(c) Grants must require a one-to-one nonstate to state match;

(d) Individual grant awards may not exceed $500,000; and

(e) Project allocation should avoid creating or worsening environmental health disparities and should make use of tools such as the department of health's environmental health disparities map.

[ 2021 c 308 § 3.]

NOTES:

Findings—Intent—2021 c 308: See note following RCW 43.31.625.

http://lawfilesext.leg.wa.gov/biennium/2021-22/Pdf/Bills/Session%20Laws/Senate/5345.SL.pdf?cite=2021%20c%20308%20%C2%A7%203