The bill establishes a new chapter in Rhode Island law titled "Composting and Organic Waste Diversion," aimed at reducing the amount of compostable material sent to landfills, which currently constitutes a significant portion of landfill waste. To address this issue, the legislation imposes a solid waste disposal surcharge of $2.00 per ton on solid waste processed, with the revenue directed to a newly established compost fund. This fund will finance initiatives such as grants for compost production, food waste diversion, and educational programs to promote sustainable waste management practices.

The act creates two special nonlapsing funds: the competitive composting and waste diversion grant fund and the municipal waste diversion grant fund, both supported by the surcharge revenue. The competitive composting and waste diversion grant fund is designed to award grants to eligible entities for developing and implementing compost production, compost use, and waste diversion efforts. The municipal waste diversion grant fund is specifically intended to assist municipalities in implementing activities that advance food waste prevention, food rescue and recovery, and composting, as well as minimize illegal dumping.

Municipalities can apply for grants from the municipal waste diversion grant fund if they have created a separate account in their general fund to deposit the grant money and established accounting procedures to ensure that the funds are spent in accordance with the law. The bill outlines grant reporting requirements, emphasizing the need for municipalities to report on their waste diversion activities and outcomes. The Department of Environmental Management will prioritize projects that yield community benefits and support local composting initiatives. The act is scheduled to take effect on January 1, 2026.