OFFICE OF FISCAL ANALYSIS
Legislative Office Building, Room 5200
Hartford, CT 06106 (860) 240-0200
http://www.cga.ct.gov/ofa
sHB-5577
AN ACT CONCERNING SURPLUS FOOD DONATION AND
ESTABLISHING FOOD COMPOSTING REQUIREMENTS.
Primary Analyst: MR 3/27/23
Contributing Analyst(s):
Reviewer: MP
OFA Fiscal Note
State Impact: None
Municipal Impact:
Municipalities Effect FY 24 $ FY 25 $
Various Municipalities Potential
Cost
Potential
Significant
Potential
Significant
Various Municipalities Revenue
Gain
See Below See Below
Explanation
The bill results in a potential cost as well as a potential revenue gain
to various municipalities, beginning in FY 24, as it requires
municipalities to recycle food scraps. The impacts of the bill are
described below.
Section 1 of the bill directs, by January 1, 2024, the Department of
Energy and Environmental Protection (DEEP) to require every town to
separate organic materials (i.e., food scraps) from the waste stream for
recycling at composting facilities. This could result in significant costs
to various municipalities, which will vary depending on: (1) whether
composting is currently part of waste management for the town; and (2)
the town's waste collection methods.
Any costs to municipalities may include annual costs for staff to run
the new program, in addition to one-time start-up costs, and potentially
ongoing capital costs for equipment to accommodate the food scraps
collection. 2023HB-05577-R000266-FN.docx Page 2 of 3
There are currently 100 municipalities working on food scraps waste
reduction programs at varying stages of implementation, and seven
commercial and on-farm composting facilities are authorized to receive
food scraps. Of the seven facilities that are authorized to receive food
scraps, only a portion are currently receiving this material (and one has
not yet been constructed). Most composting facilities are municipal leaf
composting facilities that are authorized to receive and process leaves
and may have authorization to add grass clippings. Of the municipal
leaf composting operations that exist, four currently have authorization
or pending authorization to receive and blend food scraps into their leaf
composting activities.
The Sustainable Materials Management (SMM) Grant program,
established under Sec. 308 of PA, 21-2, JSS, allocated grant funds to help
municipalities and regional waste authorities implement food scrap
collection programs; however, these grants have been exhausted for
municipal pilot project implementation and technical assistance.
Additionally, Section 1 requires commercial food wholesalers and
distributors, industrial food manufacturers and processors,
supermarkets, resorts, and conference centers to adopt a written policy
concerning their food donation program, using certain criteria.
Requiring private parties to develop a written policy about their organic
food scraps has no fiscal impact on the state or municipalities.
Section 2 results in no fiscal impact as DEEP has staff with expertise
to develop regulations by October 1, 2023, regarding food scraps.
Additionally, Section 2 requires those who generate solid waste from
non-residential properties to separate food scraps from other solid
waste, beginning October 1, 2023. This results in no fiscal impact to the
state or municipalities.
Section 3 authorizes municipalities to impose a fine of $50 per
violation for residential property owners who fail to separate
designated recyclables from other solid waste, beginning in FY 24. This
could result in a municipal revenue gain. The extent of any revenue 2023HB-05577-R000266-FN.docx Page 3 of 3
gain to a municipality will depend on the level of enforcement and the
number of violations.
The Out Years
The annualized ongoing fiscal impact identified above would
continue into the future subject to inflation, changes in staff costs and
benefits, and the number of violations that occur.