2026 Dairy Plus Program

2026 Dairy Plus Program is sponsored by CA Department of Food and Agriculture. The California Department of Food and Agriculture (CDFA) Office of Agricultural Resilience and Sustainability (OARS) 2026 Dairy Plus Program will award competitive grants to California dairy farms for the implementation of advanced manure management practices that address both methane emissions and nitrogen and salt surplus.

The 2026 Dairy Plus Program will make approximately $34 million available to support the implementation of advanced manure management practices.

The 2026 Dairy Plus Program will provide supplemental funding opportunities for projects in previous and in-progress Alternative Manure Management Program (AMMP) and Dairy Digester Research and Development Program (DDRDP), and for projects in the process of implementing a system that is equivalent to approved AMMP and/or DDRDP practices (i.e., AMMP-like and/or DDRDP-like practices).

Projects proposing advanced manure management practices must go beyond the usual GHG emission reductions and benefits already provided by the AMMP and DDRDP, and equivalent AMMP and/or DDRDP-like practices: · The maximum grant term will be 12 months initially, with the possibility of 24 months pending extension of contract end date approval from USDA.

The start and end dates of the grant agreement are subject to change and contingent on the approval of the CPA 52 (NRCS-CPA-52 Environmental Evaluation Worksheet) for the proposed project, as well as pending extension of contract end date approval from USDA. · Project funding award cap at $750 per cow, for a maximum of $1,250,000 per project. · Grants are paid out on a reimbursement basis following invoice submission by the awardee.

Grant funds are subject to state and federal program reimbursement timelines and the availability of program funding. The proposed project must meet the following eligibility requirements for the 2026 Dairy Plus Program: · The project site must be in a commercial California dairy operation.

A dairy operation is defined as an entity that operates a dairy herd, which produces milk or cream commercially, and whose bulk milk or bulk cream is received or handled by any distributor, manufacturer, or any nonprofit cooperative association of dairy producers. · California farmers, ranchers, and California Native American Tribes are eligible to apply.

Producers receiving grant award funds must be located in California with a physical California business address. · Producers receiving grant award funds must be registered with the USDA Farm Service Agency (FSA) for the specific farm/tract information for all tracts. Note: One farm per tract is eligible for award.

· Only 1 FSA-registered entity is eligible for an award in each solicitation round. If multiple dairy operations under one FSA-registered entity/producer name are selected, only 1 dairy will be awarded. ·Eligible project types can be categorized as: o In-progress or previous AMMP recipient proposing a Dairy Plus Program project.

o In-progress or previous DDRDP recipient proposing a Dairy Plus Program project. o In-progress or already operational “AMMP approved practice/AMMP-like” or “DDRDP approved practice/DDRDP-like" system proposing a Dairy Plus Program project. · The recipient and project must adhere to all “Requirements and Limitations,” which include federal requirements specific to the USDA Advancing Markets for Producers program.

# tl~IBAX Science for a Sustainable Future # 2026 DAIRY PLUS PROGRAM # Request for Grant Applications Released Date: June 16, 2026 Applications Due: September 14, 2026 by 5:00 p. m. PT Late submissions will not be accepted.

California Department of Food and Agriculture Office of Agricultural Resilience and Sustainability 1220 N Street, Sacramento, CA 95814 CDFA. OEFI_DairyPlus@cdfa. ca.

gov Contents Background and Purpose ................................................................................................................................. 1 Funding and Duration .........................................................................................................................................

1 Eligibility and Exclusions .................................................................................................................................... 2 CDFA and USDA Priorities ..................................................................................................................................

5 Timeline ................................................................................................................................................................ 8 Funding Scenarios .............................................................................................................................................

9 Requirements and Limitations ....................................................................................................................... 10 Program Conditions .........................................................................................................................................

10 Program Requirements .................................................................................................................................... 10 California Environmental Quality Act and Permits .......................................................................................

11 Demonstration of Progress ............................................................................................................................... 12 Use of Commercially Available Project Technology ................................................................................... 12 Greenhouse Gas Emission Reduction Calculations .....................................................................................

12 Cost Share ......................................................................................................................................................... 13 Federal Cost Principles ....................................................................................................................................

14 Allowable Costs ................................................................................................................................................. 14 Unallowable Costs ............................................................................................................................................

15 How to Apply .................................................................................................................................................... 17 Grant Application : Questions and Attachments ..........................................................................................

18 Questions ....................................................................................................................................................... 18 Attachments .................................................................................................................................................

18 Review and Notification .................................................................................................................................. 22 Review Process .............................................................................................................................................

22 Disqualifications ............................................................................................................................................ 23 Notification and Information Posting ..............................................................................................................

24 Assistance and Questions .............................................................................................................................. 25 Workshops and Technical Assistance ........................................................................................................

25 Questions and Answers (Q&A) .................................................................................................................... 25 Appendix A : Attachments ..............................................................................................................................

27 Appendix B : Grant Recipient Requirements ................................................................................................. 28 Grant Agreement .........................................................................................................................................

28 Pre-Project Consultation .............................................................................................................................. 28 Payment Process ..........................................................................................................................................

28 Reporting ....................................................................................................................................................... 29 Post-Project Completion Requirements .....................................................................................................

29 Appendix C : Confidential Information ......................................................................................................... 30 Appendix D : Key Terms and Definitions .........................................................................................................

31 Appendix E: Detailed Scoring Criteria ........................................................................................................... 34 Appendix F: Approved AMMP- and DDRDP-like practices.........................................................................

38 About the Program ## Background and Purpose The California Department of Food and Agriculture (CDFA) Office of Agricultural Resilience and Sustainability (OARS) 2026 Dairy Plus Program will award competitive grants to California dairy farms for the implementation of advanced manure management practices that address both methane emissions and nitrogen and salt surplus.

The California Dairy Research Foundation (CDRF) , in collaboration with CDFA and several other organizations, has been awarded $85 million in funding by the U.S. Department of Agriculture (USDA) under the Advancing Markets for Producers (AMP) initiative.

Through the year 2028, this project will provide incentives for dairy producers to adopt advanced manure management practices, measure current and estimate future greenhouse gas (GHG) and nutrient benefits associated with implemented practices, provide outreach and technical assistance, and develop sustainable product markets for milk.

Approximately $75 million of the total awarded amount will support the implementation of advanced manure management practices through the Dairy Plus Program. Dairy Plus projects build on manure methane practices supported by the existing CDFA Alternative Manure Management Program (AMMP) and Dairy Digester Research and Development Program (DDRDP) to address nitrogen and salt surplus.

Producers who have successfully implemented or are in the process of implementing a system that contains one (or more) of the approved AMMP and/or DDRDP practices 1 may apply for funding through the Dairy Plus Program, regardless of whether their systems have received state funding (refer to Appendix F ). This material is based upon work supported by the U.S. Department of Agriculture, under agreement number NR233A750004G048.

Refer to Appendix F for the approved AMMP and DDRDP practices (i.e., AMMP- and DDRDP-like practices). > 2026 Dairy Plus Program Request for Grant Applications Page 1 of 38 practices must go beyond the usual GHG emission reductions and benefits already provided by the AMMP and DDRDP, and equivalent AMMP and/or DDRDP-like practices (See Eligibility and Exclusions ).

• The maximum grant term will be 12 months initially, with the possibility of 24 months pending extension of contract end date approval from USDA. Awarded projects must be complete and operational no later than 12 months from the date of the award or until further notice. The grant agreement term for awarded projects is initially anticipated to begin on March 1, 2027, and end on February 29, 2028.

Grant funds cannot be expended before the start of the grant agreement or after the completion of the grant term. Note: The start and end dates of the grant agreement are subject to change and contingent on the approval of the CPA 52 (NRCS-CPA - 52 Environmental Evaluation Worksheet) for the proposed project, as well as pending extension of contract end date approval from USDA.

• Project funding award cap at $750 per cow, for a maximum of $1,250,000 per project (see Funding Scenarios ). • CDFA reserves the right to offer an award amount different from the amount requested. • Grants are paid out on a reimbursement basis following invoice submission by the awardee.

Grant funds are subject to state and federal program reimbursement timelines and the availability of program funding. ## Eligibility and Exclusions The proposed project must meet the following eligibility requirements for the 2026 Dairy Plus Program: • The project site must be in a commercial California dairy operation.

o A dairy operation is defined as an entity that operates a dairy herd, which produces milk or cream commercially, and whose bulk milk or bulk cream is received or handled by any distributor, manufacturer, or any nonprofit cooperative association of dairy producers. • California farmers, ranchers, and California Native American Tribes are eligible to apply.

Producers receiving grant award funds must be located in California with a physical California business address. • Producers receiving grant award funds must be registered with the USDA Farm Service Agency (FSA) for the specific farm/tract information for all tracts. Note: One farm per tract is eligible for award.

• Only one FSA-registered entity/producer name is eligible for an award in each solicitation round. If multiple dairy operations under one FSA-registered entity/producer name are selected, only one dairy operation will be awarded.

• The proposed project is for an advanced manure management system, which may > 2026 Dairy Plus Program Request for Grant Applications Page 2 of 38 include a maximum of 25% of the budget for the improvement of the existing and/or previously funded, primary manure management system, with the exception of anaerobic digester and biogas end-use systems.

• Eligible project types can be categorized as: o In-progress or previous AMMP recipient proposing a Dairy Plus Program project. o In-progress or previous DDRDP recipient proposing a Dairy Plus Program project. o In-progress or already operational “AMMP approved practice/AMMP-like” system proposing a Dairy Plus Program project (refer to Appendix F ).

o In-progress or already operational “DDRDP approved practice/DDRDP - like” system proposing a Dairy Plus Program project (refer to Appendix F ). • The recipient and project must adhere to all “ Requirements and Limitations, ” which include federal requirements specific to the USDA Advancing Markets for Producers program. The USDA is an equal opportunity provider, employer, and lender.

Each Dairy Plus Program project requesting funding must include at least one of the following project components that reduce methane emissions, and nitrogen and salt surpluses. Climate-smart practices eligible for federal funding under this grant are limited to certain Natural Resources Conservation Service-listed practices or those supported and quantified by the CARB Benefits Calculator Tool for AMMP and/or DDRDP. 1.

Projects accompanying an in-progress or previously completed AMMP, or a new, in-progress, or previously completed “AMMP-like practice” project (refer to Appendix a. Vermifiltration – this practice must be implemented in conjunction with an existing or a new primary solid-liquid separation system . b.

Solid separation of manure solids through a weeping wall – the system must have a minimum of two cells . c. Advanced solid-liquid separation assisted by flocculants and/or bead filters – this practice must be implemented in conjunction with an existing or a new primary solid-liquid separation system.

d. Advanced solid-liquid separation through centrifuge – this practice must be implemented in conjunction with an existing or a new primary solid-liquid e. Primary practices above (a.

, b. , c. , or d.)

AND subsurface drip irrigation (SDI) f. Primary practices above (a. , b.

, c. , or d.) AND aerated composting, as follows: > 2026 Dairy Plus Program Request for Grant Applications Page 3 of 38 i.

Composting in vessel (composting in an enclosed vessel, with forced aeration and continuous mixing). ii. Composting in aerated static pile (composting in piles with forced aeration but no mixing).

iii. Composting in intensive windrows (with regular turning for mixing and aeration). iv.

Composting in passive windrows (with infrequent turning for mixing and aeration). v. Composting in aerated vermifiltration system (solids separated by the vermifilter are also processed by worms within the vermifilter).

Any previous AMMP grant recipient with an in-progress or closed-out project, or dairies that have an in-progress or already implemented AMMP-like practice, may be eligible to apply regardless of the past practice type implemented.

However, for certain practices (i.e., compost bedded pack barn, conversion from flush to scrape, pasture-based management), the proposed advanced practice for the Dairy Plus Program must address the portion of the herd not already covered by the in-progress or previously implemented AMMP or “AMMP-like practices” project, as the manure handled by those systems should already be largely removed from a liquid waste stream.

Additionally, if the applicant is proposing a Dairy Plus Program project building on an in-progress AMMP project (i.e., is still in an active grant term), they cannot make changes to the AMMP project unless they follow the regular modification request processes outlined by AMMP.

The Dairy Plus Program project must be proposed and achievable in a way that does not require significant alteration or changing the already funded and approved AMMP project scope of work. 2. Projects accompanying an in-progress or previously completed DDRDP, or “DDRDP -like practices” project (refer to Appendix F ): a.

Post-digester vermifiltration – this practice must be implemented after the anaerobic digester. b. Post-digester advanced solid-liquid separation assisted by flocculants and/or bead filters – this practice must be implemented after the anaerobic digester.

c. Post-digester advanced solid-liquid separation through centrifuge – this practice must be implemented after the anaerobic digester. d.

Practices above (a. , b. , or c.)

AND subsurface drip irrigation (SDI) using liquid manure digestate. > 2026 Dairy Plus Program Request for Grant Applications Page 4 of 38 In-progress or previously completed DDRDP, or “DDRDP-like practices” projects applying for the 2026 Dairy Plus Program must incorporate a post-anaerobic digestion practice or technology for treating the digestate material that exits the dairy digester.

Such practices or technologies cannot be implemented before the anaerobic digester system. Additionally, if the applicant is proposing a Dairy Plus Program project for an in-progress DDRDP project (i.e., is still in an active grant term), they cannot make changes to the DDRDP project unless they follow the regular modification request processes outlined by DDRDP.

The Dairy Plus Program project must be proposed and achievable in a way that does not require altering or changing the already funded and approved DDRDP project scope of work.

Dairy Plus Program funds cannot be used for the following: • To fund the implementation or maintenance of all systems related to anaerobic digestion and biogas end use, including but not limited to, anaerobic digesters, biogas cleanup equipment, biogas upgrading equipment, pipelines, and electricity generators.

• To duplicate activities or costs funded by other federal or state grant programs, including in-progress, or previously completed AMMP and/or DDRDP grants. • To fund advanced manure management technologies/practices that are not described in the Eligibilities and Exclusions .

• To fund projects on dairy operations that propose an increase in baseline emissions GHG (e.g., increasing herd size, changing existing manure management practices to those that increase GHG emissions, including but not limited to conversion from dry scrape to flush lagoon systems).

## CDFA and USDA Priorities In alignment with USDA, CDFA will prioritize awards to beginning, veteran, socially disadvantaged, and/or limited resource farmers or ranchers, by carving out a minimum of 10% of Dairy Plus Program funds (or approximately $7,500,000) to be granted to members of these groups throughout the program’s lifetime.

“Historically Underserved” includes farmers or ranchers who are: Beginning, Socially Disadvantaged, Veterans, and Limited Resource (https://www. nrcs. usda.

gov/our-agency/historically-underserved-farmers-and - ranchers ).

These groups are defined below: • Limited Resource Farmer or Rancher means a participant who: o With direct or indirect gross farm sales not more than the current indexed value in each of the previous two years; and o Who has a total household income at or below the national poverty level for a family of four, or less than 50 percent of the county median household > 2026 Dairy Plus Program Request for Grant Applications Page 5 of 38 income in each of the previous two years.

• Beginning Farmer and Rancher means a participant who: o Has not operated a farm or ranch, or who has operated a farm or ranch for not more than 10 consecutive years, and who:  Will materially and substantially participate in the operation of the farm or ranch.

 In the case of a contract with an individual, individually or with the immediate family, material and substantial participation requires that the individual provide substantial day-to-day labor and management of the farm or ranch, consistent with the practices in the county or State where the farm is located.

• Socially Disadvantaged Farmer or Rancher (SDFR) means a farmer or rancher who is a member of a socially disadvantaged group, whose members have been subjected to racial or ethnic prejudice because of their identity as members of a group without regard to their individual qualities. These groups include American Indian or Alaska Native, Asian, Black or African American, Native Hawaiian or other Pacific Islander, and Hispanic.

This definition also aligns with California’s Farmer Note: Gender alone is not a covered group for the purposes of USDA AMP/Dairy Plus programs.

• Veteran Farmer or Rancher means a participant who: o Served in the United States Army, Navy, Marine Corps, Air Force, or Coast Guard, including the reserve component thereof; was released from service under conditions other than dishonorable; and:  Has not operated a farm or ranch, or has operated a farm or ranch for not more than 10 years; or  Who first obtained status as a veteran during the most recent 10-year period.

A Self-Determination Tool is available to the public and may be completed online at: https://lrftool. sc. egov.

usda. gov/ . Note: Providing demographic information is voluntary, and not providing a response will not negatively impact the application; however, providing a response will assist CDFA in prioritizing funding to small and historically underserved farmers and ranchers.

Executive Order N-6-22 – Russia Sanctions On March 4, 2022, Governor Gavin Newsom issued Executive Order N-6-22 (the EO) regarding Economic Sanctions against Russia and Russian entities and individuals. “Economic Sanctions” refers to sanctions imposed by the U.S. government in response to > 2026 Dairy Plus Program Request for Grant Applications Page 6 of 38 Russia’s actions in Ukraine, as well as any sanctions imposed under state law.

By submitting a bid, proposal, or application, the Bidder/Applicant represents that it is not a target of Economic Sanctions.

Should the State determine Bidder/Applicant is a target of Economic Sanctions or is conducting prohibited transactions with sanctioned individuals or entities, that shall be grounds for rejection of the Bidder’s/Applicant’s bid/proposal/application any time prior to the contract/agreement execution, or, if determined after contract/agreement execution, shall be grounds for termination by the State.

> 2026 Dairy Plus Program Request for Grant Applications Page 7 of 38 Dairy Plus Program Timeline (Tentative, subject to change) Invitation to Submit Grant Applications June 16, 2026 CDFA Application Workshops and Webinars June 25 and July 8, 2026 Grant Applications Due September 14, 2026 Review Process September 2026 – November 2026 Announcement and Award Funding November 2026 Grant Agreement Execution See Grant Agreement > 2026 Dairy Plus Program Request for Grant Applications Page 8 of 38 Dairy Plus for In Progress or Previous AMMP, or with approved AMMP-like practices** Vermifiltration b) Weeping wall (min of 2 cells) c) Advanced solid-liquid separation assisted by flocculants and/or bead filters d) Advanced solid-liquid separation through centrifuge e) Practices above (a, b, c, or d) AND subsurface drip irrigation (SDI) using liquid manure f) Practices above (a, b, c, or d) AND aerated composting NA Up to $1.

25 M ($750/cow) Up to $1. 25 M N/A Dairy Plus for In Progress or Previous DDRDP, or with approved DDRDP-like practices Post-digester vermifiltration b) Post-digester advanced solid-liquid separation assisted by flocculants and/or bead filters c) Post-digester Advanced solid-liquid separation through centrifuge d) Above practices (a, b, or c) AND subsurface drip irrigation (SDI) using liquid manure digestate NA Up to $1.

25 M ($750/cow) Up to $1. 25 M N/A *Dairy Plus Program funds cannot be used to fund dairy digester and/or biogas clean-up and upgrading equipment ** Required for adding an advanced manure management practice addressing both GHG emissions and nitrogen and salt surpluses specified under the Dairy Plus Program.

Any in-progress or previous AMMP recipient, or AMMP-like applicants may be eligible regardless of the practice type implemented, but for certain practices (i.e., compost bedded pack barn, conversion from flush to scrape, pasture), the advanced practice must address the portion of the herd not already covered by the in-progress or previous AMMP or with an approved AMMP-like practices project .

> 2026 Dairy Plus Program Request for Grant Applications Page 9 of 38 # Requirements and Limitations Once a project has been awarded funds, and until the project is complete and closed out, the project may not : • Change or alter the proposed advanced manure management practice to be implemented, as it may change the GHG estimates and co-benefits.

• Change the herd size beyond the limits established by the operation’s existing permits at the time of application during the project term. • Change the construction layout, construction location within the farm, design of buildings, and/or technology systems without approval from CDFA and CDRF prior to such change.

• Change the construction or design of buildings such that the number of animals in the project boundary is impacted, resulting in a change in estimated GHG reductions. • Change ownership and/or partnership entities of the dairy.

In the event the grantee needs to change ownership of the dairy and/or partnership entities or enters negotiations for the sale of the dairy operation for which a grant was awarded, the grantee shall disclose said negotiations to the CDFA and CDRF immediately. The grant shall not be assigned to the purchaser unless approved by the CDFA and CDRF pursuant to any/all terms and conditions that CDFA and CDRF deem necessary.

Should the grantee or purchaser refuse to comply with the terms and conditions set forth by the CDFA or the grantee sells the dairy operation that was the subject of the grant award without approval of grant transfer from the CDFA and CDRF, the grant agreement will be terminated, and the grantee shall return all grant monies to the CDFA and CDRF immediately.

The funds awarded under the Dairy Plus Program are subject to federal terms and conditions.

For producers to receive incentive payments as a part of the Advancing Markets for Producers, they must: • Establish Farm Records with the Farm Service Agency (FSA) (have farm, tract, and field numbers in place) • Complete an AD-2047 (Customer Data Worksheet to facilitate the collection of customer data for Business Partner Record) • Certify Highly Erodible Land Conservation (HELC) and Wetland Conservation (WC) > 2026 Dairy Plus Program Request for Grant Applications Page 10 of 38 compliance via Form AD-1026, Highly Erodible Land Conservation and Wetland Conservation Certification , and • Certify that they are not a foreign person or entity.

Additionally, grant recipients are required to : • Sign an FSA authorization form for CDRF to access records information in conjunction with conservation assistance on the grant recipient’s behalf. FSA information (such as the name of the operation) will need to match what is submitted to the CDFA for establishing a payee data record (STD-204) for processing reimbursement payments. Payee data records are verified against IRS records .

Note: The FSA authorization form is now present in the Dairy Plus Program application. • Provide information on the number for farm, tract, field; latitude and longitude, acres of land impacted, and other information as requested.

• Participate in on-farm measurement activities with the University of California for monitoring and quantification of the advanced manure management practices before, during, and after implementation of the project, if selected. • Submit regular status reports to CDFA, CDRF, and USDA explaining in detail the project’s progress. Reporting deadlines and requirements to be provided by CDRF.

• Report annual data to CDFA regarding their advanced manure management practice for at least five years after the end of the project term and/or the practice becomes operational. ## California Environmental Quality Act and Permits CDFA intends to fund proposals that demonstrate project readiness based on evidence that applicants are prepared to promptly begin project implementation.

Evidence includes, but is not limited to, a list of permits already obtained and details of the process required to obtain remaining permits. If awarded, grant recipients are expected to comply with the California Environmental Quality Act (CEQA) and all applicable permits within six (6) months of grant agreement execution. CEQA and permit compliance requirements vary depending on project type and location.

If the environmental impacts of the project are deemed insignificant by the leading agency (in most cases, the County), an initial environmental study and negative declaration may satisfy CEQA requirements. Applicants are advised to check with their local county and city planning commissions for CEQA and conditional use permit requirements.

CalGold, an online tool for permit assistance provided by the Governor’s Office of Business and Economic Development (GO-Biz), may be a useful resource. Visit https://www. calgold.

ca. gov/ for more information.

> 2026 Dairy Plus Program Request for Grant Applications Page 11 of 38 ## Demonstration of Progress Additionally, grant applicants are required to demonstrate progress within six (6) months by accomplishing at least one of the following: securing matching funds, ordering related supplies/equipment, submitting invoices to CDFA for reimbursement, providing proof of matching costs expenditures, obtaining necessary planning permits, or demonstrating site preparation for the implementation of the project.

Failure to demonstrate progress in the activities mentioned above may result in termination of the grant agreement. ## Use of Commercially Available Project Technology Projects are required to use commercially available technologies. Commercially available technologies are those having a proven operating history specific to the grant application.

Such a system is based on established design and installation procedures and practices. Professional service providers, traders, large construction equipment providers, and laborers who are familiar with installation procedures and practices. Please refer to Key Terms and Definitions (Appendix D) for a detailed definition of "commercially available" as applicable to this program.

## Greenhouse Gas Emission Reduction Calculations For projects accompanying an in-progress, or previously completed Alternative Manure Management Program (AMMP) project, or approved AMMP-like practices project: Applicants are required to use the quantification methodology titled " Greenhouse Gas Quantification Methodology for the California Department of Food and Agriculture Alternative Manure Management Program" and associated “ Benefits Calculator Tool for the AMMP ” developed by the California Air Resources Board (CARB).

For projects accompanying in-progress or previously completed Dairy Digester Research and Development Program project, or with approved DDRDP-like practices project: Applicants are required to use the latest quantification methodology titled "Greenhouse Gas Quantification Methodology for the California Department of Food and Agriculture Dairy Digester Research and Development Program" and associated “ Benefits Calculator Tool for the DDRDP ” developed by the California Air Resources Board (CARB).

The Quantification Methodologies and Benefits Calculator Tools are available on the CARB CCI (California Climate Investments) Quantification, Benefits, and Reporting Materials webpage: https://www. caclimateinvestments. ca.

gov/tools . These were developed specifically for the AMMP and DDRDP, and are based on the CARB Compliance Offset Protocol – Livestock Projects (2014) , with some modifications to allow for the calculation of anticipated net GHG reductions of an AMMP (or approved AMMP-like practice) or DDRDP (or approved DDRDP-like practice) project prior to implementation.

The Benefits Calculator Tool submitted with a Dairy Plus Program application must address > 2026 Dairy Plus Program Request for Grant Applications Page 12 of 38 the whole proposed advanced manure management system and include the elements that go above and beyond the existing (in-progress or previous project recipient) AMMP (or approved AMMP-like practices) and/or DDRDP (or approved DDRDP-like practices) portion.

For example: 1) An applicant who operates an AMMP or AMMP-like solid-liquid separator for their primary manure management that wants to submit a vermifiltration system application for the Dairy Plus Program should submit an AMMP Benefits Calculator Tool containing both the solid-liquid separator and the vermifiltration system for the Dairy Plus Program application (the whole advanced manure management system).

2) An applicant who operates a DDRDP or DDRDP-like covered lagoon anaerobic digester application for their primary manure management that wants to submit a post-digestion vermifiltration system application for the Dairy Plus Program should submit a DDRDP Benefits Calculator Tool containing both the covered lagoon anaerobic digester and the post-digestion vermifiltration system for the Dairy Plus Program application (the whole advanced manure management system).

Applicants are to input the number of animals being affected by the Dairy Plus Program project proposed, as it is on the farm. CDFA and technical reviewers will not accept modifications made to the number of animals with the purpose of artificially resulting in a higher manure management collection rate. Do not modify the AMMP or DDRDP Benefits Calculator Tool file.

Modified AMMP or DDRDP Benefits Calculator Tools files (i.e., unlocked AMMP or DDRDP Benefit Calculator) will be considered as unreadable, corrupt, or otherwise unusable attachments and will be automatically disqualified at the administrative review phase. CDFA will fund project costs with a maximum grant award as indicated within each funding scenario (refer to the Funding Scenarios section).

Cost share, including matching funds and in-kind contributions, is not required for the 2026 Dairy Plus Program; however, cost share is encouraged to demonstrate commitment to the project. Although cost share is encouraged, it is not scored based on the committed amount.

Reviewers will consider whether cost share is provided as evidence of commitment to the project, but they will not reward applicants for proposing a greater share than other applicants. Matching funds are a portion of project costs not borne by the Dairy Plus Program.

Matching contributions include allowable costs incurred that are directly related to the implementation of the project (i.e., supplies and materials, equipment, contractor/consultant fees, and other associated project costs). Note: AMMP and DDRDP grant awards from previous solicitations will not serve as matching funds for the Dairy Plus Program.

CDFA and CDRF have the discretion to evaluate if > 2026 Dairy Plus Program Request for Grant Applications Page 13 of 38 proposed matching funds meet the minimum requirements. In-kind contributions are donated goods or services for which fees would ordinarily be paid or provided to the applicant at no cash cost.

Donated goods and services must be necessary for the project to be considered in kind (i.e., goods/services would be otherwise purchased if not donated). For professional donated services, the professional donating the service must be licensed to work in that profession and value their service at the same rate at which an ordinary professional with the same expertise and training would charge for the same or similar service.

Applicants are required to provide the contribution source, type, and amount of all contributions in support of the project. ## Federal Cost Principles Federal cost principles are regulations based on organization type used to determine allowable costs and ensure consistent treatment of costs.

Applicants are responsible for identifying the federal cost principles appropriate for their organization, consistently applying cost principles to the Dairy Plus Program grant funds, and ensuring contractors or consultants comply with federal cost principle requirements. • State, local, or Indian tribal governments; non-profit organizations; and colleges and universities will be subject to 2 CFR 200 ( https://www. ecfr.

gov/cgi-bin/text - idx? SID=898fdaa0b947dd0bf8c962a137d230dd&node=pt2. 1.

200&rgn=div5 ). • For-profit organizations will be subject to 48 CFR Subpart 31. 2 (https://www.

ecfr. gov/current/title-48/chapter-1/subchapter-E/part-31/subpart - The categories listed below are consistent with the project Budget Worksheet template. Allowable project costs include, but are not limited to: • Supplies: Supplies and materials are items with an acquisition cost of less than $10,000 per unit and have a useful life of less than one year.

• Equipment: Equipment is an article of nonexpendable, tangible personal property and has a useful life of more than one year and a purchase cost that equals or exceeds $10,000 per unit. • Contractor/Consultant: Contractor fees are limited to labor for installing the project. Consultant fees are for a specific and identifiable service that is directly related to project implementation.

Compensation for individual contractor/consultant fees must be reasonable and consistent with fees in the marketplace for the same or similar services. Costs in this category must not exceed 25% of the total amount requested.

> 2026 Dairy Plus Program Request for Grant Applications Page 14 of 38 • Design and engineering: Design and engineering costs, including those provided by contractor/consultants up to 5% of the total amount requested are allowable. Compensation for design and engineering fees must be reasonable and consistent with fees in the marketplace for the same or similar services.

• Other Costs : Other direct costs and expenses for implementing the project not covered in any of the previous categories. Allowable costs must be documented, reasonable, and allocable to the project. Dairy Plus Program project costs must be incurred for the purpose for which the funding was granted and charged to the award on a specifically calculated basis.

All project expenses billed to the Dairy Plus Program project must maintain all documents, including, but not limited to, invoices, receipts, and agreements. Dairy Plus Program project expenses must be necessary for award performance and prudently incurred. All project expenses billed to the Dairy Plus Program must be paid by the recipient prior to reimbursement and must be supported with proper documentation.

A cost is unallowable if it does not comply with program requirements or other terms and conditions in the grant agreement. The following costs are not allowed: • Costs incurred outside