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 and promoting sustainable waste management practices. It recognizes that a significant portion of waste at the Rhode Island resource recovery central landfill is compostable and that the landfill is projected to reach capacity by 2043. To address this issue, the bill implements a solid waste disposal surcharge of $2.00 per ton, which will be collected by refuse disposal facilities and allocated to a newly established compost fund.

The compost fund is designed to provide funding to the Department of Environmental Management to award grants for developing, implementing, or expanding equipment, infrastructure, and education related to reducing solid waste, surplus food rescue, shell recovery and waste shell diversion, compost production and use, and minimizing illegal dumping. The fund will be financed through the solid waste disposal surcharge, state budget appropriations, interest earnings, and other accepted funds, with the office of the general treasurer overseeing its administration.

Additionally, the legislation creates a competitive composting and waste diversion grant fund and a municipal waste diversion grant fund. The municipal waste diversion grant fund will support municipalities in activities related to food waste prevention, recovery, and composting, as well as addressing illegal dumping. Municipalities can apply for grants by creating a separate account in their general fund and establishing accounting procedures to ensure that grant money is spent in accordance with the law. Grant distributions will be based on population.

The bill also outlines reporting requirements for both the Department of Environmental Management and municipalities to ensure transparency and accountability, emphasizing projects that provide community benefits and support local composting efforts. The act is set to take effect on January 1, 2026.