Maryland 2024 Regular Session

Maryland House Bill HB1318 Latest Draft

Bill / Engrossed Version Filed 03/17/2024

                             
 
EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW. 
        [Brackets] indicate matter deleted from existing law. 
         Underlining indicates amendments to bill. 
         Strike out indicates matter stricken from the bill by amendment or deleted from the law by 
amendment. 
          *hb1318*  
  
HOUSE BILL 1318 
M3, M4   	4lr2228 
      
By: Delegate Boyce Delegates Boyce, Addison, Healey, Lehman, Love, Ruth, Stein, 
Stewart, and Terrasa 
Introduced and read first time: February 9, 2024 
Assigned to: Environment and Transportation 
Committee Report: Favorable with amendments 
House action: Adopted 
Read second time: March 7, 2024 
 
CHAPTER ______ 
 
AN ACT concerning 1 
 
Solid Waste Disposal Surcharge and Wasted Food Reduction and Diversion 2 
Fund and Grant Programs – Established 3 
 
FOR the purpose of establishing the On–Farm Organics Diversion and Recycling Grant 4 
Program in the Department of Agriculture to award grants to eligible entities to 5 
develop and implement on–farm organics recycling and compost use, wasted food 6 
prevention, and food rescue; establishing a solid waste disposal surcharge on the 7 
final disposal of solid waste in the State; requiring, beginning on a certain date and 8 
each quarter thereafter, the owner or operator of a refuse disposal system to submit 9 
a certain solid waste disposal surcharge to the Department of the Environment in a 10 
certain manner; requiring the Department of the Environment to deposit certain 11 
surcharges into a certain fund; authorizing a county to request an exemption from a 12 
certain surcharge on behalf of certain refuse disposal systems and authorizing the 13 
Department of the Environment to approve the request under certain conditions; 14 
establishing the Wasted Food Reduction and Diversion Fund as a special, nonlapsing 15 
fund and requiring interest earnings of the Fund to be credited to the Fund; 16 
establishing the Wasted Food Reduction and Diversion Grant Program in the 17 
Department of the Environment to award grants to eligible entiti es for 18 
infrastructure, programs, and education that reduce, rescue, and divert wasted food 19 
in the State; and generally relating to wasted food reduction and diversion in the 20 
State.  21 
 
BY adding to 22 
 Article – Agriculture 23  2 	HOUSE BILL 1318  
 
 
Section 2–109 1 
 Annotated Code of Maryland 2 
 (2016 Replacement Volume and 2023 Supplement) 3 
 
BY repealing and reenacting, without amendments, 4 
 Article – Agriculture 5 
Section 2–401(a) 6 
 Annotated Code of Maryland 7 
 (2016 Replacement Volume and 2023 Supplement) 8 
 
BY repealing and reenacting, without amendments, 9 
 Article – Environment 10 
Section 1–701(a)(1), (7), and (8) 11 
 Annotated Code of Maryland 12 
 (2013 Replacement Volume and 2023 Supplement) 13 
 
BY repealing and reenacting, without amendments, 14 
 Article – Environment 15 
Section 9–201(a) and (e) and 9–1701(a) 16 
 Annotated Code of Maryland 17 
 (2014 Replacement Volume and 2023 Supplement) 18 
 
BY adding to 19 
 Article – Environment 20 
Section 9–1701(s–1), 9–1725.1, 9–1725.2, and 9–1725.3 21 
 Annotated Code of Maryland 22 
 (2014 Replacement Volume and 2023 Supplement) 23 
 
BY repealing and reenacting, without amendments, 24 
 Article – State Finance and Procurement 25 
Section 6–226(a)(2)(i) 26 
 Annotated Code of Maryland 27 
 (2021 Replacement Volume and 2023 Supplement) 28 
 
BY repealing and reenacting, with amendments, 29 
 Article – State Finance and Procurement 30 
Section 6–226(a)(2)(ii)189. and 190. 31 
 Annotated Code of Maryland 32 
 (2021 Replacement Volume and 2023 Supplement) 33 
 
BY adding to 34 
 Article – State Finance and Procurement 35 
Section 6–226(a)(2)(ii)191. 36 
 Annotated Code of Maryland 37 
 (2021 Replacement Volume and 2023 Supplement) 38 
   	HOUSE BILL 1318 	3 
 
 
 SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 1 
That the Laws of Maryland read as follows: 2 
 
Article – Agriculture 3 
 
2–109. 4 
 
 (A) (1) IN THIS SECTION THE F OLLOWING WORDS HAVE THE MEANINGS 5 
INDICATED.  6 
 
 (2) “GRANT PROGRAM” MEANS THE ON–FARM ORGANICS 7 
DIVERSION AND RECYCLING GRANT PROGRAM. 8 
 
 (3) “URBAN FARMER ” HAS THE MEANING STAT ED IN § 2–401 OF THIS 9 
TITLE.  10 
 
 (B) THERE IS AN ON–FARM ORGANICS DIVERSION AND RECYCLING GRANT 11 
PROGRAM IN THE DEPARTMENT . 12 
 
 (C) THE PURPOSE OF THE GRANT PROGRAM IS TO AWARD G RANTS 13 
ANNUALLY FOR DEVELOP ING AND IMPLEMENTING ON–FARM ORGANICS RECYCL ING 14 
AND COMPOST USE , WASTED FOOD PREVENTI ON, AND FOOD RESCUE . 15 
 
 (D) THE DEPARTMENT , IN CONSULTATION WITH THE DEPARTMENT OF THE 16 
ENVIRONMENT , SHALL ADMINISTER THE GRANT PROGRAM. 17 
 
 (E) THE FOLLOWING PERSONS ARE ELIGIBLE FOR A G RANT UNDER THE 18 
GRANT PROGRAM: 19 
 
 (1) A FARMER OR AN URBAN F ARMER; 20 
 
 (2) A SOIL CONSERVATION DI STRICT; 21 
 
 (3) AN INSTITUTION OF HIG HER EDUCATION AS DEF INED IN § 10–101 22 
OF THE EDUCATION ARTICLE; 23 
 
 (4) A NONPROFIT ORGANIZATI ON; 24 
 
 (5) A BUSINESS IN THE STATE THAT IS IN GOOD STANDING WITH THE 25 
STATE DEPARTMENT OF ASSESSMENTS AND TAXATION; AND 26 
 
 (6) A CONSORTIUM OF ANY EN TITIES UNDER THIS SU BSECTION.  27 
  4 	HOUSE BILL 1318  
 
 
 (F) A PROJECT IS ELIGIBLE FOR A GRANT UNDER THE GRANT PROGRAM IF 1 
THE PROJECT DEVELOPS , MAINTAINS, OR EXPANDS INFRASTRU CTURE, COLLECTION 2 
PROGRAMS, EDUCATION, OR TECHNICAL ASSISTA NCE IN THE STATE THAT: 3 
 
 (1) REDUCES THE AMOUNT OF WASTED FOOD GENERATE D; 4 
 
 (2) RESCUES EDIBLE FOOD FOR PURPOSES OF REDISTRIBUTION ; 5 
 
 (3) RECOVERS WASTED FOOD AS ANIMAL FEED IF TH E FEED IS 6 
REGISTERED AND TREAT ED IN ACCORDANCE WIT H REGULATIONS IMPLEM ENTED BY 7 
THE DEPARTMENT ; 8 
 
 (4) COMPOSTS OR RECYCLES 	SOURCE–SEPARATED FOOD 9 
RESIDUALS, INCLUDING AT–HOME, COMMUNITY , AND ON–FARM COMPOSTING ; OR  10 
 
 (5) TRANSITIONS FROM SING LE–USE FOOD SERVICEWARE TO 11 
DURABLE AND REUSABLE FOOD SERVICEWARE ; 12 
 
 (6) PROVIDES LABOR AND WA GES IN SUPPORT OF WA STED FOOD 13 
PREVENTION , FOOD RESCUE , AND ON–FARM ORGANICS RECYCL ING AND COMPOST 14 
USE; 15 
 
 (7) PROVIDES BEST MANAGEM ENT PRACTICE TRAININ G IN 16 
RELEVANT FIELDS BY A REPUTABLE TRAINING P ROGRAM; 17 
 
 (8) STUDIES THE IMPACTS O F COMPOST APPLICATIO N ON ON–FARM 18 
NUTRIENT AND WATER Q UALITY MANAGEMENT ; OR 19 
 
 (9) ASSISTS IN THE PAYMEN T OF APPLICABLE PERM IT APPLICATION 20 
COSTS. 21 
 
 (G) IN AWARDING GRANTS UN	DER THE GRANT PROGRAM, THE 22 
DEPARTMENT , IN CONSULTATION WITH THE DEPARTMENT OF THE ENVIRONMENT , 23 
SHALL PRIORITIZE PRO JECTS: 24 
 
 (1) FOR WHICH THE APPLICA NT CLEARLY DESCR IBES HOW THE 25 
PROJECT WILL:  26 
 
 (I) PROVIDE DIRECT , MEANINGFUL , AND ASSURED BENEFITS 27 
TO THE COMMUNITY ; AND  28 
 
 (II) ADDRESS IMPORTANT COM MUNITY NEEDS ; 29 
   	HOUSE BILL 1318 	5 
 
 
 (2) THAT PREVENT , RESCUE, AND DIVERT WASTED FO OD WITHIN A 1 
LOCAL COMMUNITY ; 2 
 
 (3) THAT PLAN TO PRODUC E COMPOST THAT MEETS THE 3 
CLASSIFICATION OF “GENERAL USE” UNDER COMAR 15.18.04.05; 4 
 
 (4) THAT PLAN TO PRODUCE MINIMALLY CONTAMINAT ED COMPOST 5 
THROUGH: 6 
 
 (I) PROCESSING SOURCE –SEPARATED MATERIALS ; 7 
 
 (II) NOT USING DEPACKAGERS ; AND 8 
 
 (III) MEETING THE U.S. COMPOSTING COUNCIL’S SEAL OF 9 
TESTING ASSURANCE;  10 
 
 (5) THAT SERVE AN OVERBUR DENED OR UNDERSERVED COMMUNITY ;  11 
 
 (6) THAT MINIMIZE NEGATIV E IMPACTS TO THE LOC AL COMMUNITY ; 12 
AND  13 
 
 (7) THAT MAXIMIZE BENEFIT S TO THE LOCAL COMMU	NITY, 14 
INCLUDING: 15 
 
 (I) THE CREATION OF JOBS ;  16 
 
 (II) INCREASING JOB TRAINI NG; AND 17 
 
 (III) INCREASING HIRING AND LEADERSHIP DEVELOPME NT 18 
PRACTICES THAT ARE I NCLUSIVE AND PROVIDE A LIVING WAGE. 19 
 
 (G) (H) AN ELIGIBLE PERSON TH AT RECEIVES A GRANT UNDER THE 20 
GRANT PROGRAM MAY NOT RECEI VE A GRANT UNDER THE WASTED FOOD 21 
REDUCTION AND DIVERSION GRANT PROGRAM UNDER § 9–1725.3 OF THE 22 
ENVIRONMENT ARTICLE IN THE SAME C ALENDAR YEAR . 23 
 
 (H) (I) ON OR BEFORE DECEMBER 31, 2026, AND EACH DECEMBER 1 24 
THEREAFTER , THE DEPARTMENT SHAL L REPORT TO THE GENERAL ASSEMBLY, IN 25 
ACCORDANCE WITH § 2–1257 OF THE STATE GOVERNMENT ARTICLE, ON: 26 
 
 (1) THE NUMBER AND TYPES OF GRANTS AWARDED ;  27 
 
 (2) THE IMPACT OF THE GRA NTS ON THE CREATION OF JOBS AND 28 
OTHER BENEFITS TO TH E STATE;  29 
  6 	HOUSE BILL 1318  
 
 
 (3) THE IMPACT ON FOOD WASTE PREVEN TED, RESCUED, AND 1 
DIVERTED FROM DISPOS AL; AND 2 
 
 (4) THE IMPACT ON FARMERS IN THE STATE.  3 
 
2–401. 4 
 
 (a) (1) In this section the following words have the meanings indicated. 5 
 
 (2) “Urban area” means an area delineated as an urban area by the U.S. 6 
Census Bureau. 7 
 
 (3) “Urban farmer” means an individual who farms in an urban area. 8 
 
Article – Environment 9 
 
1–701. 10 
 
 (a) (1) In this section the following words have the meanings indicated. 11 
 
 (7) “Overburdened community” means any census tract for which three or 12 
more of the following environmental health indicators are above the 75th percentile 13 
statewide: 14 
 
 (i) Particulate matter (PM) 2.5; 15 
 
 (ii) Ozone; 16 
 
 (iii) National Air Toxics Assessment (NATA) diesel PM; 17 
 
 (iv) NATA cancer risk; 18 
 
 (v) NATA respiratory hazard index; 19 
 
 (vi) Traffic proximity; 20 
 
 (vii) Lead paint indicator; 21 
 
 (viii) National Priorities List Superfund site proximity; 22 
 
 (ix) Risk Management Plan facility proximity; 23 
 
 (x) Hazardous waste proximity; 24 
 
 (xi) Wastewater discharge indicator; 25 
 
 (xii) Proximity to a Concentrated Animal Feeding Operation (CAFO); 26   	HOUSE BILL 1318 	7 
 
 
 
 (xiii) Percent of the population lacking broadband coverage; 1 
 
 (xiv) Asthma emergency room discharges; 2 
 
 (xv) Myocardial infarction discharges; 3 
 
 (xvi) Low–birth–weight infants; 4 
 
 (xvii) Proximity to emitting power plants; 5 
 
 (xviii) Proximity to a Toxic Release Inventory (TRI) facility; 6 
 
 (xix) Proximity to a brownfields site; 7 
 
 (xx) Proximity to mining operations; and 8 
 
 (xxi) Proximity to a hazardous waste landfill. 9 
 
 (8) “Underserved community” means any census tract in which, according 10 
to the most recent U.S. Census Bureau Survey: 11 
 
 (i) At least 25% of the residents qualify as low–income; 12 
 
 (ii) At least 50% of the residents identify as nonwhite; or 13 
 
 (iii) At least 15% of the residents have limited English proficiency. 14 
 
9–201. 15 
 
 (a) In this subtitle the following words have the meanings indicated. 16 
 
 (e) “Refuse disposal system” includes: 17 
 
 (1) An incinerator; 18 
 
 (2) A transfer station; 19 
 
 (3) A landfill system; 20 
 
 (4) A landfill; 21 
 
 (5) A solid waste processing facility; and 22 
 
 (6) Any other solid waste acceptance facility. 23 
 
9–1701. 24  8 	HOUSE BILL 1318  
 
 
 
 (a) In this subtitle the following words have the meanings indicated. 1 
 
 (S–1) “SOURCE SEPARATION ” MEANS THE SEPARATION OF MATERIALS FROM 2 
EACH OTHER PRIOR TO COLLECTION AND AT TH E POINT OF GENERATIO N. 3 
 
9–1725.1. 4 
 
 (A) (1) THERE IS A SOLID WAST E DISPOSAL SURCHARGE ON THE FINAL 5 
DISPOSAL OF SOLID WA STE IN REFUSE DISPOS AL SYSTEMS IN THE STATE. 6 
 
 (2) SUBJECT TO PARAGRAPH (3) OF THIS SUBSECTION , THE SOLID 7 
WASTE DISPOSAL SURCH ARGE IS $2 PER TON OF SOLID WAS TE PROCESSED BY A 8 
REFUSE DISPOSAL SYST EM FOR FINAL DISPOSA L. 9 
 
 (3) ON OR BEFORE JULY 1, 2027, AND EVERY 2 YEARS THEREAFTER , 10 
THE DEPARTMENT SHALL : 11 
 
 (I) ADJUST THE SOLID WAST E DISPOSAL SURCHARGE IN 12 
ACCORDANCE WITH THE CONSUMER PRICE INDEX FOR THE MID–ATLANTIC 13 
DIVISION; AND 14 
 
 (II) EVALUATE THE SOLID WA STE DISPOSAL SURCHAR GE TO 15 
DETERMINE IF ADDITIO NAL ADJUSTMENTS TO T HE SURCHARGE ARE REQ UIRED. 16 
 
 (4) IF THE SURCHARGE HAS BEEN ASSESSED ON AN ELIGI BLE OWNER 17 
OR OPERATOR OF A TRA NSFER STATION , THE SOLID WASTE DISP OSAL SURCHARGE 18 
MAY NOT BE ASSESSED ON AN OWNER OR OPERA TOR OF A REFUSE DISP OSAL SYSTEM 19 
THAT RECEIVES THE SO LID WASTE FOR FINAL DISPOSAL.  20 
 
 (5) AN OWNER OR OPERATOR OF A REFUSE DISPOSAL SY STEM SHALL 21 
COLLECT THE SURCHARG E REQUIRED UNDER THI S SECTION BY INCLUDI NG THE 22 
SURCHARGE AMOUNT DUE AS A SEPARATE LINE I TEM ON EVERY CUSTOME R BILL 23 
PRESENTED TO A SOLID WASTE COLLECTOR OR G ENERATOR. 24 
 
 (6) A SOLID WASTE HAULER OR COLLECT OR MAY COLLECT RATES , 25 
FEES, OR SURCHARGES FROM S OLID WASTE GENERATOR S SERVICED BY THE SO LID 26 
WASTE HAULER OR COLL ECTOR IN AN AMOUNT S UFFICIENT TO RECOVER THE 27 
SURCHARGE COLLECTED BY THE OWNER OR OPER ATOR OF A REFUSE DIS POSAL 28 
SYSTEM. 29 
 
 (B) (1) SUBJECT TO SUBSECTION (C) OF THIS SECTION AND BEGINNING 30 
JULY 1, 2025, AND EVERY QUARTER TH EREAFTER, THE OWNER OR OPERATO R OF A 31 
REFUSE DISPOSAL SYST EM IN THE STATE SHALL SUBMIT , UNDER OATH , THE SUM OF 32   	HOUSE BILL 1318 	9 
 
 
SURCHARGES COLLECTED IN THE IMMEDIATELY P RECEDING Q UARTER TO THE 1 
DEPARTMENT . 2 
 
 (2) IN ADDITION TO THE SU RCHARGES SUBMITTED T O THE 3 
DEPARTMENT UNDER PARA GRAPH (1) OF THIS SUBSECTION , THE OWNER OR 4 
OPERATOR OF A REFUSE DISPOSAL SYSTEM SHAL L SUBMIT, AS APPLICABLE , AN 5 
ACCOUNTING OF THE NU MBER OF TONS OF SOLI D WASTE ACCEPTED FOR DI SPOSAL, 6 
TRANSFER, OR COLLECTION DURING THE REPORTING PERIOD . 7 
 
 (3) THE DEPARTMENT SHALL DEPO	SIT THE SURCHARGES 8 
COLLECTED UNDER THIS SUBSECTION INTO THE WASTED FOOD REDUCTION AND 9 
DIVERSION FUND UNDER § 9–1725.2 OF THIS SUBTITLE. 10 
 
 (C) (1) A COUNTY MAY SUBMIT A REQUEST ON BEHALF OF THE REFUSE 11 
DISPOSAL SYSTEMS IN THE COUNTY FOR AN EX EMPTION FROM THE REQ UIREMENTS 12 
OF THIS SECTION. 13 
 
 (2) THE DEPARTMENT MAY APPROV E A REQUEST FOR AN E XEMPTION 14 
UNDER PARAGRAPH (1) OF THIS SUBSECTION I F: 15 
 
 (I) THE COUNTY ESTABLISHE S A SOLID WASTE DISP OSAL 16 
SURCHARGE TO FUND FO OD RESCUE, WASTED FOOD DIVERSIO N, AND ORGANICS 17 
RECYCLING;  18 
 
 (II) THE COUNTY’S ASSESSED AND COLLE CTED SOLID WASTE 19 
DISPOSAL SURCHARGE I S NOT LESS THAN THE STATEWIDE SOLID WAST E DISPOSAL 20 
SURCHARGE; AND 21 
 
 (III) ELIGIBLE ENTITIES FOR GRANTS TO FUND FOOD RESCUE, 22 
WASTED FOOD DIVERSIO N, AND ORGANICS RECYCLI NG INCLUDE THE ELIGI BLE 23 
ENTITIES UNDER : 24 
 
 1. THE ON–FARM ORGANICS DIVERSION AND 25 
RECYCLING GRANT PROGRAM IN ACCORDANCE WITH § 2–109 OF THE 26 
AGRICULTURE ARTICLE; AND 27 
 
 2. THE WASTED FOOD REDUCTION AND DIVERSION 28 
GRANT PROGRAM IN ACCORDANCE WITH § 9–1725.3 OF THIS SUBTITLE . 29 
 
 (3) IF A COUNTY ESTABLISH ES A SOLID WASTE DIS POSAL 30 
SURCHARGE , A REFUSE DISPOSAL SY STEM IN THE COUNTY M AY ASSESS THE 31 
SURCHARGE DURING EITH ER WASTE GENERATION , COLLECTION, OR FINAL 32 
DISPOSAL. 33 
  10 	HOUSE BILL 1318  
 
 
 (4) IF A COUNTY ESTABLISH ES A SURCHARGE IN AC CORDANCE WITH 1 
THIS SUBSECTION , THE DEPARTMENT MAY ANNUAL LY REVIEW THE COUNTY 2 
SURCHARGE PROGRAM IN ORDER TO:  3 
 
 (I) ENSURE COMPLIANCE WITH THE REQUIREMENT S OF THIS 4 
SUBSECTION; AND 5 
 
 (II) EVALUATE BEST PRACTIC ES AT THE COUNTY LEV EL TO BE 6 
ADOPTED FOR THE STAT EWIDE SOLID WASTE DI SPOSAL SURCHARGE .  7 
 
9–1725.2. 8 
 
 (A) IN THIS SECTION, “FUND” MEANS THE WASTED FOOD REDUCTION AND 9 
DIVERSION FUND. 10 
 
 (B) THERE IS A WASTED FOOD REDUCTION AND DIVERSION FUND. 11 
 
 (C) THE PURPOSE OF THE FUND IS TO FUND ELIGI BLE PROJECTS UNDER 12 
THE ON–FARM ORGANICS DIVERSION AND RECYCLING GRANT PROGRAM 13 
ESTABLISHED UNDER § 2–109 OF THE AGRICULTURE ARTICLE AND THE WASTED 14 
FOOD REDUCTION AND DIVERSION GRANT PROGRAM ESTABLISHED U NDER §  15 
9–1725.3 OF THIS SUBTITLE. 16 
 
 (D) THE SECRETARY SHALL ADMIN ISTER THE FUND. 17 
 
 (E) (1) THE FUND IS A SPECIAL , NONLAPSING FUND THAT IS NOT 18 
SUBJECT TO § 7–302 OF THE STATE FINANCE AND PROCUREMENT ARTICLE. 19 
 
 (2) THE STATE TREASURER SHALL HOLD THE FUND SEPARATELY , 20 
AND THE COMPTROLLER SHALL ACC OUNT FOR THE FUND. 21 
 
 (F) THE FUND CONSISTS OF : 22 
 
 (1) REVENUE DISTRIBUTED T O THE FUND UNDER § 9–1725.1 OF THIS 23 
SUBTITLE; 24 
 
 (2) MONEY APPROPRIATED IN THE STATE BUDGET TO THE FUND; 25 
 
 (3) (2) INTEREST EARNINGS ; AND 26 
 
 (4) (3) ANY OTHER MONEY FROM ANY OTHER SOURCE ACC EPTED 27 
FOR THE BENEFIT OF T HE FUND. 28 
   	HOUSE BILL 1318 	11 
 
 
 (G) (1) NOT MORE THAN 10% 25% OF THE FUND MAY BE USED FOR 1 
ADMINISTRATIVE EXPEN SES BY THE DEPARTMENT OR THE DEPARTMENT OF 2 
AGRICULTURE EACH FISC AL YEAR. 3 
 
 (2) THE COMPTROLLER SHALL TRA NSFER THE REMAINING MONEY 4 
FROM THE FUND AFTER ADMINISTRA TIVE EXPENSES UNDER PARAGRAPH (1) OF 5 
THIS SUBSECTION AS F OLLOWS: 6 
 
 (I) ON JULY 1, 2026: 7 
 
 1. 4% TO THE GRANT PROGRAM TO REDUCE AN D 8 
COMPOST SCHOOL WASTE UNDER § 7–130 OF THE EDUCATION ARTICLE; 9 
 
 2. 48% TO THE WASTED FOOD REDUCTION AND 10 
DIVERSION GRANT PROGRAM UNDER § 9–1725.3 OF THIS SUBTITLE; AND 11 
 
 3. 48% TO THE ON–FARM ORGANICS DIVERSION AND 12 
RECYCLING GRANT PROGRAM UNDER § 2–109 OF THE AGRICULTURE ARTICLE; 13 
AND 14 
 
 (II) BEGINNING ON JULY 1, 2027, AND EACH JULY 1 15 
THEREAFTER : 16 
 
 1. 50% TO THE WASTED FOOD REDUCTION AND 17 
DIVERSION GRANT PROGRAM UNDER § 9–1725.3 OF THIS SUBTITLE; AND 18 
 
 2. 50% TO THE ON–FARM ORGANICS DIVERSION AND 19 
RECYCLING GRANT PROGRAM UNDER § 2–109 OF THE AGRICULTURE ARTICLE. 20 
 
 (H) (1) THE STATE TREASURER SHALL INVES T THE MONEY OF THE FUND 21 
IN THE SAME MANNER A S OTHER STATE MONEY MAY BE IN VESTED. 22 
 
 (2) ANY INTEREST EARNINGS OF THE FUND SHALL BE CREDITE D TO 23 
THE FUND.  24 
 
 (I) EXPENDITURES FROM THE FUND MAY BE MADE ONLY IN ACCORDANCE 25 
WITH THE STATE BUDGET . 26 
 
 (J) MONEY EXPENDED FROM T HE FUND FOR THE SCHOOL WASTE 27 
REDUCTION AND COMPOSTING PROGRAM, THE WASTED FOOD REDUCTION AND 28 
DIVERSION GRANT PROGRAM, AND THE ON–FARM ORGANICS DIVERSION AND 29 
RECYCLING GRANT PROGRAM IS SUPPLEMENT AL TO AND IS NOT INT ENDED TO 30 
TAKE THE PLACE OF FU NDING THAT OTHERWISE WOULD BE APPROPRIATE D FOR 31 
THOSE PROGRAMS . 32  12 	HOUSE BILL 1318  
 
 
 
9–1725.3. 1 
 
 (A) (1) IN THIS SECTION THE F OLLOWING WORDS HAVE THE MEANINGS 2 
INDICATED.  3 
 
 (2) “GRANT PROGRAM” MEANS THE WASTED FOOD REDUCTION AND 4 
DIVERSION GRANT PROGRAM. 5 
 
 (3) “OVERBURDENED COMMUNIT Y” HAS THE MEANING STAT ED IN § 6 
1–701 OF THIS ARTICLE. 7 
 
 (4) “UNDERSERVED COMMUNITY ” HAS THE MEANING STAT ED IN §  8 
1–701 OF THIS ARTICLE. 9 
 
 (5) “URBAN FARMER ” HAS THE MEANING STAT ED IN § 2–401 OF THE 10 
AGRICULTURE ARTICLE.  11 
 
 (B) BEGINNING JULY 1, 2026, THERE IS A WASTED FOOD REDUCTION AND 12 
DIVERSION GRANT PROGRAM IN THE DEPARTMENT . 13 
 
 (C) THE PURPOSE OF THE GRANT PROGRAM IS TO AWARD G RANTS 14 
ANNUALLY FOR INFRASTRUCTUR E, PROGRAMS, AND EDUCATION THAT R EDUCE, 15 
RESCUE, AND DIVERT WASTED FO OD IN THE STATE. 16 
 
 (D) THE DEPARTMENT , IN CONSULTATION WITH THE DEPARTMENT OF 17 
AGRICULTURE , SHALL ADMINISTER THE GRANT PROGRAM. 18 
 
 (E) THE FOLLOWING PERSONS ARE ELIGIBLE FOR A GRANT UNDER TH E 19 
GRANT PROGRAM: 20 
 
 (1) A UNIT OF STATE OR LOCAL GOVERN MENT THAT HAS NOT OP TED 21 
OUT OF THE STATEWIDE SOLID WASTE DISPOSAL SURCHARGE ; 22 
 
 (2) A LOCAL EDUCATION AGEN CY;  23 
 
 (3) (2) AN INSTITUTION OF HIG HER EDUCATION AS DEF INED IN § 24 
10–101 OF THE EDUCATION ARTICLE; 25 
 
 (4) (3) A NONPROFIT ORGANIZATI ON; 26 
 
 (5) (4) A FARMER OR AN URBAN F ARMER; 27 
 
 (6) (5) A BUSINESS IN THE STATE THAT IS IN GOOD STANDING WITH 28 
THE STATE DEPARTMENT OF ASSESSMENTS AND TAXATION; AND 29   	HOUSE BILL 1318 	13 
 
 
 
 (7) (6) A CONSORTIUM OF ANY EN TITIES UNDER THIS SU BSECTION.  1 
 
 (F) A PROJECT IS ELIGIBLE FOR A GRANT UNDER TH E GRANT PROGRAM IF 2 
THE PROJECT DEVELOPS , MAINTAINS, OR EXPANDS INFRASTRU CTURE, COLLECTION 3 
PROGRAMS, EDUCATION, OR TECHNICAL ASSISTA NCE IN THE STATE THAT: 4 
 
 (1) REDUCES THE AMOUNT OF WASTED FOOD GENERATE D; 5 
 
 (2) RESCUES EDIBLE FOOD F OR PURPOSES OF REDIS TRIBUTION; 6 
 
 (3) RECOVERS WASTED FOOD AS ANIMAL FEED IF TH E FEED IS 7 
REGISTERED AND TREAT ED IN ACCORDANCE WIT H REGULATIONS IMPLEM ENTED BY 8 
THE DEPARTMENT OF AGRICULTURE ; 9 
 
 (4) COMPOSTS OR RECYCLES 	FOOD RESIDUALS , INCLUDING  10 
AT–HOME, COMMUNITY , AND ON–FARM COMPOSTING ; OR  11 
 
 (5) TRANSITIONS FROM SING LE–USE FOOD SERVICEWARE TO 12 
DURABLE AND REUSABLE FOOD SERVICEWARE .  13 
 
 (G) IN AWARDING GRANTS UN	DER THE GRANT PROGRAM, THE 14 
DEPARTMENT , IN CONSULTATION WITH THE DEPARTMENT OF AGRICULTURE , 15 
SHALL PRIORITIZE PRO JECTS: 16 
 
 (1) FOR WHICH THE APPLICA NT CLEARLY DESCRIBES HOW THE 17 
PROJECT WILL:  18 
 
 (I) PROVIDE DIRECT , MEANINGFUL , AND ASSURED BENEFITS 19 
TO THE COMMUNITY ; AND  20 
 
 (II) ADDRESS IMPORTANT COM MUNITY NEEDS ; 21 
 
 (2) THAT PREVENT , RESCUE, AND DIVERT WASTED FO OD WITHIN A 22 
LOCAL COMMUNITY ; 23 
 
 (3) THAT PLAN TO PRODUCE 	COMPOST THAT MEETS T	HE 24 
CLASSIFICATION OF “GENERAL USE ” UNDER COMAR 15.18.04.05; 25 
 
 (4) THAT PLAN TO PRODUCE MINIMALLY CONTAMINATED COMPOST 26 
THROUGH: 27 
 
 (I) PROCESSING SOURCE –SEPARATED MATERIALS ; 28 
 
 (II) NOT USING DEPACKAGERS ; AND 29  14 	HOUSE BILL 1318  
 
 
 
 (III) MEETING THE UNITED STATES COMPOSTING COUNCIL’S 1 
SEAL OF TESTING ASSURANCE;  2 
 
 (5) THAT SERVE AN OVERBUR DENED OR UNDERSERVED COMMUNITY;  3 
 
 (6) THAT MINIMIZE NEGATIV E IMPACTS TO THE LOC AL COMMUNITY ; 4 
AND  5 
 
 (7) THAT MAXIMIZE BENEFIT S TO THE LOCAL COMMU	NITY, 6 
INCLUDING: 7 
 
 (I) THE CREATION OF JOBS ;  8 
 
 (II) INCREASING JOB TRAINI NG; AND 9 
 
 (III) INCREASING HIRING AND LEADERSHIP DEVELOPMENT 10 
PRACTICES THAT ARE I NCLUSIVE AND PROVIDE A LIVING WAGE. 11 
 
 (H) AN ELIGIBLE PERSON TH AT RECEIVES A GRANT UNDER THE GRANT 12 
PROGRAM MAY NOT RECEI VE A GRANT UNDER THE ON–FARM ORGANICS 13 
DIVERSION AND RECYCLING GRANT PROGRAM UNDER § 2–109 OF THE 14 
AGRICULTURE ARTICLE IN THE SAME C ALENDAR YEAR . 15 
 
 (I) (1) THE DEPARTMENT , IN CONSULTATION WITH THE DEPARTMENT 16 
OF AGRICULTURE , SHALL ADOPT REGULATI ONS TO IMPLEMENT THI S SECTION. 17 
 
 (2) REGULATIONS ADOPTED U NDER THIS SUBSECTION SHALL 18 
INCLUDE: 19 
 
 (I) A SIMPLE COMMON APPLICATION PROCEDUR E; AND 20 
 
 (II) FOR ELIGIBLE ENTITIES , A PROCESS TO FACILIT ATE THE 21 
PARTICIPATION OF ELI GIBLE ENTITIES THAT HAVE LIMITED RESOURC ES OR 22 
LANGUAGE BARRIERS .  23 
 
 (J) ON OR BEFORE DECEMBER 31, 2026, AND EACH DECEMBER 1 24 
THEREAFTER , THE DEPARTME NT SHALL REPORT TO T HE GENERAL ASSEMBLY, IN 25 
ACCORDANCE WITH § 2–1257 OF THE STATE GOVERNMENT ARTICLE, ON: 26 
 
 (1) THE NUMBER AND TYPES OF GRANTS AWARDED ;  27 
 
 (2) THE IMPACT OF THE GRA NTS ON THE CREATION OF JOBS AND 28 
OTHER BENEFITS TO TH E STATE;  29 
   	HOUSE BILL 1318 	15 
 
 
 (3) THE IMPACT ON WASTE PREVE NTED, RESCUED, AND DIVERTED 1 
FROM DISPOSAL ; AND 2 
 
 (4) THE IMPACT ON FARMERS IN THE STATE.  3 
 
Article – State Finance and Procurement 4 
 
6–226. 5 
 
 (a) (2) (i) Notwithstanding any other provision of law, and unless 6 
inconsistent with a federal law, grant agreement, or other federal requirement or with the 7 
terms of a gift or settlement agreement, net interest on all State money allocated by the 8 
State Treasurer under this section to special funds or accounts, and otherwise entitled to 9 
receive interest earnings, as accounted for by the Comptroller, shall accrue to the General 10 
Fund of the State. 11 
 
 (ii) The provisions of subparagraph (i) of this paragraph do not apply 12 
to the following funds: 13 
 
 189. the Teacher Retention and Development Fund; [and] 14 
 
 190. the Protecting Against Hate Crimes Grant Fund; AND 15 
 
 191. THE WASTED FOOD REDUCTION AND DIVERSION 16 
FUND. 17 
 
 SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect 18 
October 1, 2024.  19 
 
 
 
 
Approved: 
________________________________________________________________________________  
 Governor. 
________________________________________________________________________________  
  Speaker of the House of Delegates. 
________________________________________________________________________________  
         President of the Senate.