Circular Economy Organics Council Fund

The Circular Economy Organics Council Fund aims to support Local Governments and the Alpine Resorts Victoria Board to increase their use of recycled kerbside organic products in council and community settings, to build sustainable end markets and transition to a circular economy.

To be eligible for funding, recycled organic products must be sourced from Victorian food organics garden organics (FOGO) or garden organics (GO) kerbside collection services. All facilities receiving this material stream must comply with regulations for handling, storing, transferring, transporting, and recycling organics. Products must meet the Vic EPA Determination Specifications.

We support the organics industry and regulators to ensure products are safe, high-quality, and meet the Victorian EPA Determination Specifications and Australian Standards (ASS4454). We work closely with end markets and users and provide clear guidance on sourcing these products and best practice in how to apply them correctly and safely.

This grant is funded through the government’s circular economy policy, Recycling Victoria: a new economy.

Applications close at 11:59 pm on Friday 14 June 2024 or prior if funds are fully allocated. Applications will be assessed as soon as they are submitted. Late applications will not be accepted except under exceptional circumstances.

The following are the guidelines for applying for this fund.

1. Fund overview

1.1 Fund objectives

Projects must meet one or more of the following objectives:

• build and diversify end markets for recycled organics by increasing the use of recycled kerbside organic products in council settings
• create local closed loop solutions to increase circular procurement and circular consumption behaviours in council
• increase knowledge and raise awareness of the benefits of using recycled kerbside organics to the community.

The Fund aims to achieve the following outcomes:

• increase the use of recycled kerbside organic products in council and community settings
• promote and distribute knowledge across councils around the application and benefits of using recycled kerbside organics
• improve the health and resilience of soils in council parks, gardens, and public green spaces
• improve circular consumption behaviours in our communities and the ongoing use of recycled kerbside organics in council settings.

Projects must source products derived from Victorian kerbside FOGO collections and support end market use in council and community settings.

Note: Recycled kerbside organics refers to products such as compost, composted mulch and other soil amendments containing kerbside collected food and garden organics (FOGO)

1.2 Funding available

Competitive grants from $30,000 up to $100,000 will be available to Local Governments and the Alpine Resorts Victoria Board to create new and/or expand existing end markets for recycled kerbside organic products by:

• removing barriers to increase the procurement and use of recycled kerbside organics
• directly increasing the use of recycled kerbside organics in council settings.

1.3 Co-contribution

Applicants must meet minimum co-contribution ratios, $1 SV: $1 Applicant

Co-contribution can be either financial (cash) or in-kind. Up to 100% of the co-contribution can be in-kind.

Co-contributions must be for eligible activities (refer to 2.3 What will be funded).

2. Eligibility

2.1 Who can apply

Eligible applicants are the 79 Victorian Local Governments and the Alpine Resorts Victoria Board.

The program requires a single applicant to apply. A Council or the Alpine Resorts Victoria Board can apply either as an individual application or as a Lead Applicant for a Collaborative Partnership application. The Applicant is fully accountable for project delivery.

Applicants must:

• have a current Australian Business Number (ABN)
• be able to demonstrate financial and in-kind viability to undertake the project (will meet or exceed the minimum co-contribution requirements)
• demonstrate the commitment of an organics processing facility or supplier to provide the recycled kerbside organic product. Examples include but are not limited to: collaborative procurement contract or written letter of support
• agree to comply with the Terms of Participation in Grant Programs
• agree to comply with the funding terms and conditions:
  • for grants $50,000 or less read the Short-form grant funding agreement.
  • for grants more than $50,000 read the General grant funding agreement.

Collaborative Partnerships (optional)

Applicants may also choose to form a Collaborative Partnership for the purpose of undertaking the project and maximising impact. Applicants are known as Lead Applicants in a Collaborative Partnership.

Collaborative Partnerships can only be established with other councils and/or the Alpine Resorts Victoria Board. The Lead Applicants will need to clarify the nature of their relationship with other councils and/or the Alpine Resorts Victoria Board and demonstrate their commitments to the project accordingly. Please attach letters of support.

Applicants who do not agree with the Grant Funding Agreement Terms and Conditions will be asked to provide full details of proposed amendments that would render the contractual provision acceptable to the Applicant in the SmartyGrants application form. Applicants should note that significant or substantive variations will not be viewed favourably unless the Applicant is able to demonstrate the necessity for such variations. Should applicants be successful, no further amendments to SV’s standard terms and conditions will be considered beyond the variations included in the application form. 

Important: Applications will be assessed on a rolling basis until funding is fully subscribed, the closing time is reached or at the discretion of SV. In the instance that multiple applications are being assessed concurrently, SV retain the right to implement a contested process.

Each council may receive one grant under this fund and Alpine Resorts Victoria may receive multiple grants (but no more than one for each of the six individual resorts). Once a Council or an individual resort of Alpine Resorts Victoria has been awarded funding, additional applications for this Council or individual Alpine Resorts Victoria site will not be eligible for additional funding.

2.2 Who cannot apply

We will not fund any organisation other than the 79 Victorian Local Governments, or the Alpine Resorts Victoria Board.

2.3 What will be funded

Projects must work to increase the uptake and use of recycled kerbside organics in council settings by:

• removing barriers to increase the procurement and use of recycled kerbside organics
• directly increasing the use of recycled kerbside organics in council settings.

Examples of projects that could be funded under this program include:

• improving infrastructure and/or equipment for product storage and distribution
• trials using recycled kerbside organics in a council setting including trial design, soil testing and plant testing, establishment and monitoring
• community engagement and education/behaviour change activities specifically relevant to using kerbside recycled organics.
• promotion and distribution of results and outcomes from new trials and/or existing product applications to promote the benefits of closed loop organics projects.

Projects must:

• use composted products that are derived from recycled kerbside FOGO or garden organics (GO) that meet the Vic EPA Determination Specifications acceptable to the Authority for receiving processed organics.
• be located in and service Victoria
• meet regulatory and/or planning requirements

• be completed by 30 June 2025.

Eligible project costs must be directly related to the project and can include:

• capital purchases (e.g. infrastructure or equipment)
• existing staff costs (such as salaries), that are demonstrated to be directly related to the project.
• professional procurement and/or contract advice directly related to the project when included with other activities (cannot be funded in isolation)
• site preparation costs
• purchase of recycled kerbside organics products for trials and market development
• community engagement, project promotion and education activities specifically relevant to using kerbside recycled organics in council setting.
• marketing, advertising, promotional costs
• business case development, feasibility studies, consultancy or contract work
• research, development, and demonstration
• hire or short-term leasing of equipment (other than vehicles as outlined below).

2.4 What will not be funded

The following are ineligible for funding, projects that:

• do not seek to increase the use of recycled kerbside organics in council settings
• utilise products that do not contain any recycled kerbside organics
• are being undertaken to comply with regulation or a regulatory notice or order
• do not meet regulatory and/or planning requirements
• have received funding or support for the same activities from other sources
• related to organic waste reduction and avoidance

• will be detrimental to soil health and/or soil function as determined by the assessment panel
• seek to increase the adoption of recycled organics in landfills
• intend to increase the use of raw mulch or un-composted material
• focus on subsidies or programs to increase home composting
• commence before the applicant is notified by SV in writing that their grant application has been successful. Note: if applicants fail to execute a Funding Agreement, their eligible costs will not be reimbursed. 

The following costs are ineligible for funding:

• educational activities that are not directly related to the project and/or the use of recycled kerbside organics in council settings
• routine or cyclical maintenance works
• lease or purchase of land
• repair of facilities damaged by vandalism, fire or other natural disasters where damage should be covered by insurance
• operating costs (e.g. staff costs that are not directly related to the project, electricity, water and other utilities)
• purchase and/or lease of vehicles (e.g. utility vehicles, quad bikes, front-end loaders, forklifts)
• staff travel, and/or staff attendances at conferences
• catering costs
• contingency costs
• fuel costs
• insurance costs.

3. Assessment process

3.1 Assessment criteria

Applications will be assessed on a rolling basis until funding is fully subscribed, the closing time is reached, or at the discretion of SV. In the instance that multiple applications are being assessed concurrently SV retain the right to implement a contested process.

The assessment panel will assess the application based on merit according to the criteria below.

What

Weighting 30%

Describe what you are going to do and how the project meets the Fund’s objectives.

Compare the proposed solution with the current practices.

How

Weighting: 30%

Describe how the project is commercial, feasible, and capable of being delivered.

• Key tasks and activities
• Deliverables
• Start and end date
• Total milestone cost
• How will you ensure the project can be delivered according to your timeline and milestones?
• Describe the potential risks you anticipate and the strategies and practices you will put in place to minimise these risks.

Explain how the project will be monitored and evaluated.

• What are the monitoring and evaluation processes proposed (during and on project completion)?
• How will you measure the impact of the project? (e.g. improvements to soil and plant health, tonnes of materials used, suitability for continued or expanded use within the municipality)
• How will your project be financially viable over the long term so that it can continue to deliver benefits beyond the life of the grant?

Describe how the project benefits and insights will be shared.

• What are the ongoing benefits to council, residents, and the community?

• How do you plan to disseminate the insights gained from this project to benefit other local governments and community?
• What are the ongoing benefits to council, residents, and the community?
• Why do you want to use more recycled organics in your municipality?

Who

Weighting: 20%

Demonstrate that the project team can deliver the project in terms of capability (skills) and capacity (resources) including:

• the roles and responsibilities of each team member
• relevant experience delivering similar projects
• experience delivering other FOGO related circular economy and or procurement activities
• what resources and capabilities will they contribute to the project.

For Collaborative projects only:

• What formal relationship does the Lead Applicant have with any Collaborative Partners for this project? Please attach letters of commitment.

Outline the Applicant’s experience in leading a collaborative project.

Delivery Partners

Delivery Partners support a project but provide no co-contributions (e.g., organics processing supplier). Please provide:

• Name of business supplying the recycled kerbside organics
• Evidence of commitment from organics processing facility or supplier.

Why

Weighting: 20%

Describe how the project meets the need or problem. Consider:

• Why is this project needed in your municipality?
• How will this project benefit the council, community, industry, and market?
• Why hasn’t this project been implemented previously?
• Does this project align with your council strategy? If so, how?

3.2 Due diligence checks

A risk-based approach will be used to assess the Applicant’s social, economic, safety and environmental risks in relation to the project. This assessment will include the Applicant’s Related Entities and may include Project Partners and/or Project Participants (see Section 9: Program definitions).

Applicants (and their Related Entities and, if applicable, their Project Partners and/or Project Participants) must:

• have had no Environmental, Safety or Workplace Breaches in the last five years or, if there was a breach, Sustainability Victoria may assess that the Applicant’s breach poses a satisfactory level of risk;
• have not been the subject of an enforceable undertaking or successful litigation by the Fair Work Ombudsman for a breach of the Fair Work Act 2009 or a fair work instrument within the last five years;
• demonstrate financial capability to undertake the project;
• have adequate insurance as outlined in the funding agreement such as:

• Public liability $20M minimum
• Professional indemnity $5M minimum (if required)
• WorkCover

• have not failed to satisfactorily progress or complete previous projects funded by Sustainability Victoria within funding program timelines and without sufficient reason; and
• manage any conflicts of interest adequately.

Assessment of satisfactory level of risk will include but not be limited to Sustainability Victoria’s consideration of:

• the seriousness of any finding/s;
• whether the finding/s has been resolved to the satisfaction of the relevant enforcement agency, or the Applicant can demonstrate it is working effectively to resolve the finding;

• the efforts made by the Applicant including implementation of management systems, to ensure no further finding/s occur; and
• whether, since the finding, the Applicant has had a satisfactory level of compliance with relevant Environmental and Safety Laws and Workplace Laws.

Sustainability Victoria may conduct due diligence checks on the Project Partners and/or Project Participants involved in the delivery of the project. The Applicant must ensure that any Project Partners and/or Project Participants agree to cooperate with this requirement and will provide information at Sustainability Victoria’s request.

Sustainability Victoria reserves the right not to award funding to Applicants where the due diligence risk (including that of Project Partners and Project Participants) is unsatisfactory or not able to be managed.

4. Funding conditions

Successful applicants approved for funding must do the following. 

4.1 Before starting the project 

• Participate in an inception meeting to discuss their project and the funding agreement.
• Agree to realistic evidence-based and performance-based milestone payments.
• Provide Sustainability Victoria with insurance certificates of currency.

• Sign Sustainability Victoria’s funding agreement within 30 days of receipt via DocuSign.

4.2 During and after the project 

• Deliver the project as outlined in the application and comply with the funding agreement. 
• Contribute to regular project progress updates or meetings.
• Notify Sustainability Victoria immediately about any delay or change to the project. 
• Provide project update reports to Sustainability Victoria at agreed milestones with evidence of expenditure, progress and performance 
• Provide adequate monitoring and evaluation of the project according to the funding agreement in accordance with SV contractual requirements.  
• Collect and release data to Sustainability Victoria. Sustainability Victoria may share or report on the data. 
• Contribute to the project’s promotional activities (for example, provide Sustainability Victoria with support by reviewing and approving written stories or videos and case studies). 
• Participate in and contribute to Sustainability Victoria activities to distribute the findings to broader stakeholders (for example, government and industry). 
• Acknowledge that Sustainability Victoria has contributed funding in all communications related to the project. 

5. Timeline

Dates may change.

There is no date for the announcement of application outcomes. We will provide applicants with updates as much as possible and when necessary.

Applications open: 19 March 2024

Applications close: 14 June 2024 or prior if funds are fully allocated.

Note: Applications will be assessed upon submission. Funding may be fully allocated before the closing date.

Funding agreements established: Ongoing assessments as applications are submitted. Please note that funding may be allocated prior to the close date.

Projects commenced by: The start date can be discussed at the point of establishing funding agreements.

Project completed by: 30 June 2025

6. How to apply

The grant program involves a competitive, merit-based application process.

1. Ensure that your organisation can apply.
2. Ensure that your project is qualified.
3. Read Sustainability Victoria’s funding agreement. You must meet the terms and conditions to ensure funding.
   1. For grants $50,000 or less read the Short-form grant funding agreement.
   2. For grants more than $50,000 read the General grant funding agreement.
4. Read Sustainability Victoria’s Terms of participation in grant programs.
5. Create an account and start your application on the SmartyGrants website.
6. Submit your application by 11:59 pm, 31 May 2024 Late applications will not be accepted except under exceptional circumstances. Note: Applications will be assessed upon submission. Please note that funding may be allocated prior to the close date.

Your application

• Allow adequate time to plan, research, gather supporting documentation and draft your application.
• As this is a competitive grant, we cannot review drafts or provide feedback.
• You must use SmartyGrants, unless you have written permission from Sustainability Victoria.

7. Assistance available

7.1 Contact us

We cannot review drafts or provide feedback.

Phone: +61 3 8656 6757 Monday to Friday, 10:00 am to 4:00 pm.

Email: grants.enquiries@sustainability.vic.gov.au

In the subject line, use the grant name CE Organics Councils Fund

8. Why the Victorian Government is providing this funding

The Victorian Government has invested over $515 million to deliver the biggest transformation and reform of Victoria’s waste and recycling industry. This includes $380 million to deliver Victoria’s Circular Economy Policy which will fundamentally reduce waste, boost jobs and establish a recycling system Victorians can rely on.

The Fund forms part of the Victorian Governments $30.6 million Recycled Markets Acceleration Package (RMAP) which is Action 8.1 of The Circular Economy (CE) Policy supporting the Victorian Government’s response to transforming recycling sector in Victoria. Under the $30 million RMAP the policy states that to “drive demand for recycled materials across the economy, the Victorian Government will help identify new uses for recycled materials and make it easier for these products to be used”. SV has been allocated $25.8 million from the package to lead the delivery of the Market Acceleration Program (MAP) which will drive demand for recycled material across the economy by supporting the development of new innovative products and improving market confidence in recycled products and materials.

The Policy sets ambitious landfill diversion and resource recovery targets, including a target to halve the volume of food waste going to landfill by 2030 and the large scale roll out of food organics and garden organics (FOGO) collections, to ensure every Victorian household has access to a FOGO service by 2030. The Policy also clearly outlines the need to invest in market development, with a focus on improved product quality and market adoption of recycled organics.

As Victorian councils introduce FOGO collection services, a significant opportunity is emerging to establish local, closed-loop solutions using recycled kerbside organics. Uptake of recycled composts by Local Government has been slow to date, and support is required to remove barriers, incentivise product adoption, build sustainable end markets and promote circular consumption behaviours.

Councils have significant buying power and the ability to lead by example and create local closed-loop programs that engage communities. Councils have also demonstrated leadership in circular economy principles and behaviour change programs and are well placed to deliver tangible projects that support the recycled organics sector.

9. Definitions

Applicant

The applicant who applies for the funding and is responsible for all details in the submission of an application and the contractual obligations under the funding agreement with Sustainability Victoria if successful for grant funding. Applicants must be legally constituted organisations and with a current ABN that has been active for a minimum of 2 years by the application closing date.

The funding that Sustainability Victoria will grant to successful applicants is public money which SV must ensure is expended prudently, accountably and to achieve maximum impact. By requiring businesses to have been in operation for a minimum of 2 years, governments can reduce the risk of investing in businesses that may not have fully established their business model or market demand. This requirement also ensures that the business will have two years of financial returns which can be reviewed to assess whether the business is financially viable and able to acquit the project for which it seeks funding, thereby maximising the sustainability impacts of the funding.

Business
A commercial enterprise seeking to generate profit through its activities, including Social Enterprises.

Charity
A Charity is an organisation that is not-for-profit and has only charitable purposes that are for the public benefit. A Charity must not be an individual, political party or government entity, and must be registered on the Australian Charities and Not-for-profits Commission Charity Register.

Co-contribution

The Applicant’s required cash or in-kind contribution to the total project income. Co-contributions must be for eligible activities.

Collaborative Partnership

A relationship established between a Lead Applicant and Project Partner/s for the purposes of meeting common project objectives and outcomes. Collaborative Partnerships need to be demonstrated by a formal agreement between the partners that outlines the governance, financial and intellectual property arrangements and roles and responsibilities of each party. A formal agreement must either be in place or be finalised before commencement of the project.

Community Group

Any organisation engaged in charitable or other community-based activity operating under Australian law and not established for the purpose of making a profit. This definition can include not-for-profit entities pursuing a range of ‘for-profit’ commercial activities. It can also include organisations engaged in advocacy or other activities that may not be primarily charitable in nature. Unincorporated entities are ineligible to apply.

Council settings

The term ‘Council settings’ is used in this document to describe council owned/operated parks, gardens, trees, parkland, sporting fields and facilities, nature reserves, recreational spaces, community gardens, council-run kindergartens, and playgrounds. Council settings managed by council contractors are also included.

Direct Jobs

Actual new full-time positions created by your business. This can include training or upskilling of employees who would otherwise be made redundant through the implementation of your project.

Environmental, Safety or Workplace Breach

An environmental or safety breach is any past or current prosecution, reportable incident, investigation, notice, penalty, warning, regulatory intervention or enforcement action from the Environment Protection Authority (EPA), Victorian WorkCover Authority (WorkSafe) or Fair Work or failure to comply with any environmental, safety and workplace laws.

Environmental and Safety Laws

Environmental and safety laws are the Occupational Health and Safety Act 2004, Environment Protection Act 2017 or any other legislation, regulation, order, statute, by-law, ordinance or any other legislative or regulatory measure, code, standard or requirement relating to the protection and safety of persons or property or which regulate the environment including laws relating to land use planning, pollution of air or water, soil or groundwater contamination, chemicals, waste, the use, handling, storage or transport of dangerous goods or substances, greenhouse gas emissions, carbon trading, or any other aspect of protection of the environment.

Full-Time Equivalent Employees (FTE)

The hours worked by one employee on a full-time basis.

Calculating FTE

The calculation is used to convert the hours worked by several part-time employees into the hours worked by full-time employees. For example, you have three employees working the following - 40, 40 and 20 hours per week, giving you 100 hours per week in total.

Assuming full-time hours are 40 hours per week, your full-time equivalent calculation is 100 hours divided by 40 hours which equals 2.5 FTE.

In-kind Contribution

An in-kind contribution is a contribution of a good or a service other than cash.

In-kind contributions should include the cost for activities that are directly related to delivering your project. Examples include:

• staff time to manage project implementation (project management and installation costs that utilise existing internal resources);
• time spent on project activities by volunteers; and
• donated goods or services related to the project.

The following activities cannot be considered as in-kind contributions:

• operating expenses that are not directly associated with delivering the project; and
• opportunity costs such as staff ‘downtime’ during the installation of equipment or implementation of activities.

Applicants must fairly justify how they determined the dollar value for in-kind contributions.

Lead Applicant

The listed applicant for the purposes of a Collaborative Partnership. The Lead Applicant will be responsible for all details in the submission of an application and the contractual obligations under the funding agreement with Sustainability Victoria if successful for grant funding. The Lead Applicant is also responsible for managing the project outcomes and deliverables of the Collaborative Partnership.

Not-for-profit

A not-for-profit (NFP) organisation is an entity that does not operate for the profit or gain (either direct or indirect) of particular people. Unincorporated entities are ineligible to apply.

Project Participant/s

An organisation engaged by the Applicant to assist in the delivery of the Applicant’s project, including but not limited to major subcontractors, contractors, product suppliers and consultants.

Project Partner/s

An organisation/s in a Collaborative Partnership with a Lead Applicant that have a critical role in the project and a formal commitment to delivering the support required to ensure the project’s success.

Related Entities

Entities which are related to the Applicant, including:

• Holding companies of the Applicant
• Subsidiaries of the Applicant
• Subsidiaries of holding companies of the Applicant
• Companies with common directors or shareholders as the Applicant
• Companies that are a beneficiary under a trust of which the Applicant is a trustee
• Trustees of a trust under which the Applicant is a beneficiary
• Companies that conduct business at the same address as the Applicant, or the same address as the location of the activity for which the funding is sought

Social Enterprise

A social enterprise is a business that trades to intentionally tackle social problems, improve communities, provide people access to employment and training, or help the environment.

Social enterprises:

• are driven by a public or community cause, be it social, environmental, cultural or economic
• derive most of their income from trade, not donations or grants
• use the majority (at least 50%) of their profits to work towards their social mission.

Related Person/s

Related Person means a director, officer, employee, agent, board member or contractor of the Applicant or a Related Entity.

Workplace Laws

Workplace laws are the Fair Work Act 2009, or any other legislation, regulation order, statute, by-law, ordinance or any other legislative or regulatory measure, code, standard or requirement relating to the provision of fair, relevant and enforceable minimum terms and conditions for all persons and to prevent discrimination against employees.