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, a special, nonlapsing fund administered by the office of the general treasurer, to provide funding to the department of environmental management for awarding grants. These grants will assist with the costs of developing, implementing, or expanding equipment, infrastructure, and education related to composting, surplus food rescue, shell recovery, compost production, and minimizing illegal dumping.

Additionally, the bill establishes 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. The MG fund will provide public grants to municipalities for activities that advance food waste prevention, food rescue and recovery, composting, and minimizing illegal dumping.

Funding for these initiatives will come from a solid waste disposal surcharge of $2.00 per ton of solid waste processed, which will be collected by refuse disposal facilities and transferred to the compost fund. The revenue from this surcharge will not revert to the general fund of the state. The department of environmental management is tasked with ensuring equitable access to grants for various entities, including nonprofits, educational institutions, and small businesses.

Municipalities applying for grants from the MG fund must create a separate account in their general fund for the grant money, establish accounting procedures, and opt into the surcharge program for municipal solid waste. They will be required to report annually on their activities and the impacts of the grant funding.

The act is set to take effect on January 1.