Hi Justin,
It was nearly 3 years ago that we went through the process, but from what I remember we didn’t have to go through anything like what you are experiencing. We literally just filled out the standard form (saying that is was coffee grounds we were collecting and that we would compost them at the end of our process), and received the license back in the post. There were no additional questions and no additional guidance or papers that we came across.
Sorry I can’t be of any more help, but it’s not something we’ve had to deal with ourselves. Hope you manage to navigate your way through things there – you may find if you just jump through the hoops presented and tell them what you are doing that it will be ok. In theory I would think it’s no different to a community composting operation in how they should view it.
best wishes,
Adam