The bill aims to tackle the growing issue of compostable material being sent to Rhode Island's central landfill, which is expected to reach capacity by 2043. It introduces a new chapter titled "Composting and Organic Waste Diversion," establishing several nonlapsing funds, including a compost fund and grant funds for competitive composting and municipal waste diversion. A solid waste disposal surcharge of $2.00 per ton will be implemented, collected by refuse disposal facilities, and used to support waste diversion programs. This surcharge will be adjusted every five years based on the consumer price index or a predetermined percentage increase. The bill emphasizes the importance of composting for reducing greenhouse gas emissions and improving soil health, while also adhering to a "Polluter Pays" principle to fund environmental initiatives.

Key amendments to existing laws include provisions that allow solid waste haulers to recover surcharges and require the Rhode Island Resource Recovery Corporation to submit quarterly reports on solid waste disposal starting January 1, 2026. The compost fund will be managed by the Department of Environmental Management and will allocate 50% of its resources to competitive grants for composting and waste diversion, while the other half will support municipal efforts. The bill also establishes a municipal waste diversion grant fund to promote food waste prevention and composting initiatives, with a focus on equitable distribution of grants to support low-income and disadvantaged communities. Reporting requirements for municipalities receiving grants are included, mandating annual reports on waste diversion activities and their impacts. The act is set to take effect on January 1, 2026, with provisions for future assessments of the solid waste disposal surcharge.