The bill introduces 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 and promoting sustainable waste management practices. It establishes the compost fund as a special, nonlapsing fund to provide funding to the Department of Environmental Management for grants that assist with the costs of developing, implementing, or expanding equipment, infrastructure, and education related to compost production, food waste reduction, shell recovery, and minimizing illegal dumping.

Additionally, the bill creates two grant 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, compost use, and waste diversion efforts, while the MG fund will provide public grants to municipalities for activities that advance food waste prevention, food rescue and recovery, and composting, as well as minimize illegal dumping.

Funding for these initiatives will be generated through a solid waste disposal surcharge of $2.00 per ton of solid waste processed by refuse disposal systems. The surcharge will be collected by the owner or operator of each refuse disposal facility and will be adjusted every five years based on the consumer price index or a set percentage increase. The revenue from this surcharge will be deposited into the compost fund, with specific allocations for the CG fund and MG fund.

Municipalities that wish to apply for grants from the MG fund must create a separate account for the grant money, establish accounting procedures, and opt into the surcharge program for municipal solid waste. Grants will be distributed proportionally based on population, and municipalities are required to submit annual reports detailing their waste diversion activities and the impact of the grant.

The Department of Environmental Management is tasked with reporting to the General Assembly on the grants awarded under both grant programs starting December 1, 2027, and every five years thereafter, including an analysis of the solid waste disposal surcharge. The act is scheduled to take effect on January 1, 2024.