SEQ City Deal Organics Processing Program

What is the Program?

The SEQ City Deal Organics Processing Program (the Program) is a competitive grant initiative under the SEQ City Deal. It aims to invest in organics processing infrastructure and practices to increase resource recovery rates, facilitate organics recycling, and progress SEQ towards a circular economy. The Program is delivered collaboratively by the Australian Government, Queensland Government, and Council of Mayors South East Queensland (CoMSEQ).

What is the purpose of the Program?

The purpose of the Program is to:

• Support the development of new, or upgrades to existing, organics processing infrastructure to expand the capacity for managing organic waste in South East Queensland.
• Enhance the quality of processed organic products to meet industry standards and community expectations.
• Drive employment opportunities in the organics processing and recycling sector in South East Queensland.

Who administers the Program?

The Program is administered by the Department of the Environment, Tourism, Science and Innovation (DETSI).

Who can apply for the Program?

Eligible applicants must:

• Be a member council of CoMSEQ as of 21 March 2022.

Eligible councils can apply as:

• The lead applicant for a council specific project.
• The lead applicant for a group of CoMSEQ member councils.
• The lead applicant for a council partnership or public-private partnership project.

What projects are eligible under the Program?

Eligible projects must:

• Focus on new or upgraded organics processing facilities and infrastructure.
• Manage and process organic material originating in SEQ.
• Be undertaken within a CoMSEQ member council Local Government Area (LGA).
• Be completed by March 2028.

For the purpose of this Program, SEQ is defined as encompassing the LGA’s of Brisbane City Council, City of Gold Coast, City of Ipswich, Lockyer Valley Regional Council, Logan City Council, Moreton Bay Regional Council, Noosa Shire Council, Redland City Council, Scenic Rim Regional Council, Somerset Regional Council, Sunshine Coast Council and Toowoomba Regional Council.

What costs and activities are eligible for funding under the Program?

Eligible costs are strictly capital costs associated establishing new, or upgrading existing, organics processing facilities. Funding will only be available for these costs.

Eligible costs much relate to one or more of the following supply chain stages:

• Storage, sorting, and bulking up organic material.
• Decontamination of organic material.
• Processing organic material (e.g. composting, anaerobic digestion).

Please contact the department if you would like to discuss a potentially eligible project, or to clarify if activities and costs are eligible for funding.

What projects, activities and costs are ineligible under the Program?

Ineligible projects and activities include:

• Business-as-usual activities (e.g., existing waste collection services).
• Costs related to the collection of organic material, either from households or commercial premises, and the transportation of that material to processing or end markets.
• Costs associated with education and behaviour change.
• Market development activities (e.g. research and development, partnerships, certification).
• Alternative organics processing methods (e.g. mixed waste organic outputs or mechanical biological treatment facilities).
• Activities solely directed at compliance with Environmental Authorities.
• Projects funded by other government programs (unless distinct separation of project elements are demonstrated).
• Operational costs, wages, project management costs, land acquisition, passenger vehicles, and other standard exclusions.
• Civil construction costs which are not directly related to the project, for example whole of site access roads, stormwater management and drainage.

I have a project which has received funding from other government sources. Is it eligible for funding under this Program?

Any costs which have received funding from other State or Federal sources are not eligible for funding under this Program. However, some costs of a larger project may be eligible, provided the applicant can demonstrate these have not been funded elsewhere and are separate and distinct.

Please contact the department if you would like to discuss a potentially eligible project, or to clarify if activities and costs are eligible for funding.

I have a project in partnership with a council who is not a member of CoMSEQ. Can I apply for funding?

Yes, the project is eligible for funding provided the lead applicant is a CoMSEQ member council, and the project is located within a CoMSEQ member council LGA and processes organic material generated in SEQ.

Is a project located outside of a CoMSEQ council’s local government area eligible for funding?

No, projects must be undertaken within one of the CoMSEQ member council areas.

I have a project which will be accepting organic material that is generated outside of SEQ. Is it eligible for funding?

Generally, projects must process or accept organic material which is generated in SEQ. However, if a portion of the total feedstock is generated outside SEQ, with the majority generated inside SEQ, the project may be considered eligible.

For the purpose of this Program, SEQ is defined as encompassing the LGA’s of Brisbane City Council, City of Gold Coast, City of Ipswich, Lockyer Valley Regional Council, Logan City Council, Moreton Bay Regional Council, Noosa Shire Council, Redland City Council, Scenic Rim Regional Council, Somerset Regional Council, Sunshine Coast Council and Toowoomba Regional Council.

Please contact the Department should you wish to discuss project and feedstock eligibility.

I have a project that improves processes and product quality for existing organics feedstock. Is it eligible?

Yes, if the project aligns with the Program’s objectives and involves eligible activities such as improving sorting, decontamination, or processing infrastructure. However, it must meet all eligibility criteria, including being located within CoMSEQ council areas and managing organic material originating in SEQ.

Are operational costs associated with the project eligible or ineligible?

Operational costs are ineligible under the Program. This includes wages, ongoing operational costs, and overheads. These costs must be covered by the applicant and will not count towards an applicant’s 1:1:1 contribution to eligible project costs.

Are access roads and other civil construction costs eligible for funding?

Civil construction costs for a larger site are generally considered ineligible for funding and must be covered by the applicant (without going towards an applicant’s one third contribution to eligible costs). Costs directly related to the construction or establishment of the project, however, would be considered eligible. This could include power, roads and access.

How much funding is available?

The Program offers a total of $36 million (excl GST) in grant funding across two streams:

• Stream 1: Small projects – $12 million (excl GST), with funding of up to $2 million per project.
• Stream 2: Major projects – $24 million (excl GST), with funding of over $2 million per project.

Funding is available on a 1:1:1 basis of eligible costs. This means that applicants are required to contribute a minimum of one third of eligible project costs, plus all other project costs.

What rules apply to councils applying for funding in partnership with other councils or industry?

For partnership projects:

• One eligible council must act as the lead applicant and contracting party.
• All council partners and private partners must be identified in the application.
• Formal written arrangements or signed letters of support from project partners must be in place before submission. This includes confirmation of project partner financial contributions to the project.
• The project governance arrangements, including roles and responsibilities of each project partner, must be detailed in the application form.

Does the Program fund retrospective activities of a project?

No, the Program does not fund project activities or a whole project that commenced construction or has been completed prior to the release of the Program Guidelines. However, applicants are encouraged to contact the Department for clarification if project planning and tender processes began before the release of the Program Guidelines, or you are applying for specific activities within a larger project.

Who covers ineligible costs and any cost increases realised through the life of the project?

Successful applicants are responsible for:

• All ineligible project costs required for project delivery and completion.
• Any cost increases that occur over the life of the project.

Is there an applicant financial contribution requirement?

Yes. The Program operates on a 1:1:1 funding ratio between the Queensland Government, Australian Government, and the applicant(s). Applicants must provide a minimum of one-third of the total eligible project cost plus all other project costs, including ineligible costs and cost increases incurred over the life of the project.

Can an applicant’s contribution come from third parties?

Yes, an applicant’s contribution to the project can come from project partners or third parties and can count towards the one-third contribution requirement. Applicants must provide details of all project partners in the application. Formal written arrangements or signed letters of support and commitment from the project partners board, Chief Executive Officer or equivalent must be in place between all parties before an application is submitted. This includes confirmation of project partner financial contributions to the project.

Do in-kind contributions count towards the applicant’s 1:1:1 funding contribution?

No, in-kind contributions are welcome but will not count towards the required 1:1:1 funding contribution to eligible project costs.

Will further rounds of funding be available?

No further rounds of funding are planned under the Program.

How do I apply for the program?

The Program is now closed.

What is the application deadline?

The Program is now closed.

How many projects can a council be involved in?

An eligible council can submit multiple applications under the Program. However, councils must consider their capacity to deliver multiple projects simultaneously and specify the priority level for each application.

How are applications assessed?

Applications will be assessed by an assessment panel established by the Department. Assessment decisions will be moderated and then provided to the relevant Queensland and Australian Government delegates who will make final decisions on funding proposals.

Departmental staff involved in the assessment and moderation of all applications received through the Program will operate under the Queensland Public Service Code of Conduct.

What criteria are used to determine successful applicants?

The assessment criteria are established in section 7 of the Program Guidelines. These criteria will be used to assess all applications received. Applicants are encouraged to review the assessment criteria and provide all information and supporting evidence that shows how their project meets the criteria.

Do I need to provide a feasibility study or business case to support my application?

While not required, applicants are encouraged to supply any supporting documents such as feasibility studies, business cases, project plans and implementation plans. These will likely bolster applications in the competitive pool through the assessment process.

When will I be notified of the outcome?

Following completion of the Department’s assessment process, funding recommendations and project approvals will be made to the relevant Queensland and Australian Government’s delegates who will make the final decision on the funding of proposals. The Department will provide written advice to all applicants regarding the outcome of their application following relevant approvals.

What happens if my application is successful?

If your application is successful, you will be notified of your success in writing and officers from the department will contact you to develop a funding agreement. This agreement will outline project and funding milestones as well as governance and reporting requirements.

Will feedback be provided for unsuccessful applicants?

All applicants will be notified of the outcome of the assessment process, including unsuccessful applicants. Feedback will be provided to unsuccessful applicants upon request.

When will the grant funding be available?

Grant funding will be available upon execution of a funding agreement between successful applicants and the Department . Grant funding will be paid in instalments throughout the life of the project. Recipients must meet project-specific milestones and report on project progress to release grant funding.

Will there be conditions attached to the funding?

Yes, recipients must adhere to reporting requirements, maintain financial records, and fulfil all project delivery obligations that will be set out in the funding agreement.

What are the deadlines for completing projects funded under the grant?

All projects funded under the Program must be completed by March 2028.

Can I make changes to my project after it is approved?

There is opportunity for small changes to be made to projects through the contracting period. Such changes will need to be supported by appropriate rationale and be approved by the Department. Given this is a competitive funding pool, changes to approved funding amounts are unlikely and recipients must cover any cost increases realised from funding approval to project completion.

What should I do if my project is delayed?

You should discuss project delays with the department to understand the options and requirements. Any delays should be raised as soon as you become aware of them.

What reporting requirements will apply to grant funding?

All grant recipients will be required to submit quarterly progress/milestone reports as per the SEQ City Deal requirements.

Failure to meet reporting and acquittal requirements in the grant agreement may render the applicant ineligible for further funding under this grant program, and/or result in suspension of grant instalments.

How do I acquit the grant funding?

All grant recipients will be required to complete and submit a final report and project acquittal within the timeframes established in the grant agreement.

All grant recipients will be required to maintain full financial records of expenditure relating to the grant (including, but not limited to, profit and loss statement and receipts for expenditure). This documentation must be provided to the Department on request.

How will my personal information be handled?

The Department is collecting personal information in the application for the Program to assess your application for funding and prepare a Project Funding Agreement, should your application be successful.

All personal information you provide in the application form, including all attachments, will be routinely provided to the following parties for assessing the application:

• Other Queensland Government agencies.
• Australian Government agencies.
• CoMSEQ.
• External assessment panel members as decided by the department.

The department will ensure representatives from these organisations operate under confidentiality and conflict of interest requirements.

Please see the Program Guidelines (PDF, 545.9 KB) for further information.

If you have any questions or concerns regarding the privacy of your personal information, please contact the department’s Privacy Services unit by email privacy@detsi.qld.gov.au.

Who can I contact for further assistance?

If you experience technical difficulties creating a SmartyGrants account or completing an online form, contact SmartyGrants on (03) 9320 6888 or email service@smartygrants.com.au

For further information specific to the Program, contact the Program Design and Delivery Team by email at WastePlanImplementation@detsi.qld.gov.au.