The bill establishes a new chapter in Rhode Island law titled "Composting and Organic Waste Diversion," aimed at reducing the amount of solid waste generated in the state, particularly compostable materials that currently constitute a significant portion of landfill waste. To facilitate this, the legislation introduces a solid waste disposal surcharge of $2.00 per ton on solid waste processed, with the revenue directed to a newly established compost fund.

The compost fund is a special, nonlapsing fund that will provide funding to the Department of Environmental Management to award grants for developing, implementing, and expanding equipment, infrastructure, and education related to compost production, food waste diversion, and minimizing illegal dumping. The fund will also support surplus food rescue and shell recovery initiatives. The office of the general treasurer will administer the compost fund.

Additionally, the bill creates two special nonlapsing funds: the competitive composting and waste diversion grant fund (CG fund) and the municipal waste diversion grant fund (MG fund). The CG fund will award grants to eligible entities for costs associated with compost production and waste diversion efforts, while the MG fund will provide public grants to municipalities for developing and implementing activities that advance food waste prevention, food rescue, and composting, as well as minimize illegal dumping.

Municipalities can apply for grants from the MG fund if they create a separate account in their general fund for the grant money and establish accounting procedures to ensure compliance. The bill outlines grant reporting requirements, allowing eligible entities to use simplified reporting formats or their standard annual reports to detail grant-funded activities and their impacts. The Department of Environmental Management will prioritize projects that demonstrate community benefits and support local composting efforts. The act is set to take effect on January 1, 2026.