EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW. [Brackets] indicate matter deleted from existing law. *sb0056* SENATE BILL 56 M3, M4 4lr1173 (PRE–FILED) CF HB 163 By: Senator Hester Requested: October 26, 2023 Introduced and read first time: January 10, 2024 Assigned to: Education, Energy, and the Environment A BILL ENTITLED AN ACT concerning 1 Food Waste and Solid Waste Reduction – Grants, Fund, and Surcharge 2 FOR the purpose of establishing the On–Farm Organic Diversion and Composting Grant 3 Program to award grants to eligible entities to assist with the costs of developing and 4 implementing on–farm composting and compost use, food waste prevention, and food 5 rescue projects; requiring the Department of the Environment to use funds from the 6 Reduce, Recycle, Remanufacture Fund to support the Grant Program to Reduce and 7 Compost School Waste; authorizing the Department to establish a statewide solid 8 waste disposal surcharge to be collected by certain owners and operators of refuse 9 disposal systems in the State; authorizing a county to submit a request to the 10 Department to establish a certain local solid waste disposal surcharge program; 11 establishing the Reduce, Recycle, Remanufacture Fund as a special, nonlapsing 12 fund; requiring interest earnings of the Fund to be credited to the Fund; establishing 13 the Food Waste Reduction and Diversion Grants Program to award grants for 14 infrastructure, programming, and education focused on reducing, rescuing, and 15 diverting food waste in the State; establishing the Circular Economy Incentive 16 Program to award grants or other incentives to develop methods for upcycling and 17 remanufacturing materials in the State that would otherwise be disposed of; and 18 generally relating to reducing food waste and solid waste in the State. 19 BY adding to 20 Article – Agriculture 21 Section 2–2301 and 2–2302 to be under the new subtitle “Subtitle 23. On–Farm 22 Organic Diversion and Composting Grant Program” 23 Annotated Code of Maryland 24 (2016 Replacement Volume and 2023 Supplement) 25 BY repealing and reenacting, without amendments, 26 Article – Environment 27 Section 9–201(a) and (e) and 9–1701(a), (d), and (q) 28 2 SENATE BILL 56 Annotated Code of Maryland 1 (2014 Replacement Volume and 2023 Supplement) 2 BY adding to 3 Article – Environment 4 Section 9–17A–01 through 9–17A–07 to be under the new subtitle “Subtitle 17A. 5 Waste Reduction” 6 Annotated Code of Maryland 7 (2014 Replacement Volume and 2023 Supplement) 8 BY repealing and reenacting, without amendments, 9 Article – State Finance and Procurement 10 Section 6–226(a)(2)(i) 11 Annotated Code of Maryland 12 (2021 Replacement Volume and 2023 Supplement) 13 BY repealing and reenacting, with amendments, 14 Article – State Finance and Procurement 15 Section 6–226(a)(2)(ii)189. and 190. 16 Annotated Code of Maryland 17 (2021 Replacement Volume and 2023 Supplement) 18 BY adding to 19 Article – State Finance and Procurement 20 Section 6–226(a)(2)(ii)191. 21 Annotated Code of Maryland 22 (2021 Replacement Volume and 2023 Supplement) 23 BY repealing and reenacting, without amendments, 24 Article – Education 25 Section 7–130(a), (b), and (c)(1) 26 Annotated Code of Maryland 27 (2022 Replacement Volume and 2023 Supplement) 28 BY repealing and reenacting, with amendments, 29 Article – Education 30 Section 7–130(h) 31 Annotated Code of Maryland 32 (2022 Replacement Volume and 2023 Supplement) 33 SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 34 That the Laws of Maryland read as follows: 35 Article – Agriculture 36 SUBTITLE 23. ON–FARM ORGANIC DIVERSION AND COMPOSTING GRANT 37 PROGRAM. 38 SENATE BILL 56 3 2–2301. 1 (A) IN THIS SUBTITLE THE FOLLOWING WORDS HAVE THE MEANINGS 2 INDICATED. 3 (B) “ELIGIBLE ENTITY” MEANS: 4 (1) A FARMER, INCLUDING AN URBAN F ARMER; 5 (2) A SOIL CONSERVATION DI STRICT; 6 (3) AN INSTITUTION OF HIG HER EDUCATION ; AND 7 (4) A CONSORTIUM OF ANY OF THE ENTITIES IDENTIF IED IN ITEMS (1) 8 THROUGH (3) OF THIS SUBSECTION . 9 (C) “PROGRAM” MEANS THE ON–FARM ORGANIC DIVERSION AND 10 COMPOSTING GRANT PROGRAM. 11 (D) “REFUSE DISPOSAL SYSTE M” HAS THE MEANING STAT ED IN § 9–201 OF 12 THE ENVIRONMENT ARTICLE. 13 2–2302. 14 (A) THERE IS AN ON–FARM ORGANIC DIVERSION AND COMPOSTING 15 GRANT PROGRAM. 16 (B) THE PURPOSE OF THE PROGRAM IS TO AWARD G RANTS TO ELIGIBLE 17 ENTITIES TO ASSIST W ITH THE COSTS OF DEV ELOPING AND IMPLEMEN TING 18 ON–FARM COMPOSTING AND COMPOST USE , FOOD WASTE PREVENTIO N, AND FOOD 19 RESCUE PROJECTS . 20 (C) THE DEPARTMENT , IN CONSULTATION WITH THE DEPARTMENT OF THE 21 ENVIRONMENT , SHALL ADMINISTER THE PROGRAM. 22 (D) THE PROGRAM MAY AWARD GRA NTS TO ELIGIBLE ENTI TIES ONLY TO 23 ASSIST WITH THE COST S OF DEVELOPING AND IMPLEMENTING ON –FARM 24 COMPOSTING , COMPOST USE , FOOD WASTE PREVENTIO N, AND FOOD RESCUE 25 PROJECTS, INCLUDING THE COSTS OF: 26 4 SENATE BILL 56 (1) PRESERVING AND RESCUI NG FOOD FOR CONSUMPT ION BY 1 INDIVIDUALS, INCLUDING FACILITATI NG OR PARTICIPATING IN RELEVANT 2 PARTNERSHIP PROGRAMS ; 3 (2) COLD STORAGE FOR THE PRESERVATION OF FOOD THAT WILL BE 4 CONSUMED BY INDIVIDU ALS; 5 (3) EDUCATING THE PUBLIC ON: 6 (I) SEPARATING FOOD WASTE FROM OTHER WASTE ; AND 7 (II) OPTIONS FOR ON–FARM COMPOSTING ; 8 (4) EQUIPMENT AND INFRAST RUCTURE IN SUPPORT O F ON–FARM 9 COMPOSTING ; 10 (5) LABOR AND WAGES IN SU PPORT OF ON–FARM COMPOSTING , 11 COMPOST USE , FOOD WASTE PREVENTIO N, AND FOOD RESCUE ; 12 (6) COMPOST MANAGEMENT TR AINING UNDER A PROGR AM OFFERED 13 BY THE UNIVERSITY OF MARYLAND EXTENSION, THE U.S. COMPOSTING COUNCIL, 14 OR ANY OTHER APPROPR IATE ENTITY; 15 (7) (I) COMPOST TESTING EQUIPME NT; OR 16 (II) SUBMITTING COMPOST SA MPLES FOR TESTING TO A 17 LABORATORY WITH APPR OPRIATE EXPERTISE ; 18 (8) STUDYING IMPACTS OF C OMPOST APPLICATION O N ON–FARM 19 NUTRIENT AND WATER Q UALITY MANAGEMENT TO INFORM RELEVANT 20 REGULATIONS ; AND 21 (9) MEETING PERMIT REQUIR EMENTS. 22 (E) (1) THE DEPARTMENT , IN CONSULTATION WITH THE DEPARTMENT 23 OF THE ENVIRONMENT , SHALL ESTABLISH GRAN T APPLICATION PROCED URES. 24 (2) THE GRANT APPLICATION PROCEDURES SHALL INC LUDE: 25 (I) A PROCESS FOR FACILITA TING PART ICIPATION OF 26 ELIGIBLE ENTITIES WI TH LIMITED RESOURCES ; AND 27 SENATE BILL 56 5 (II) A SIMPLE COMMON APPLIC ATION AND COMMON 1 REPORTING FORMAT . 2 (F) IN AWARDING GRANTS UN DER THIS SUBTITLE , THE DEPARTMENT AND 3 THE DEPARTMENT OF THE ENVIRONMENT SHALL GIV E PRIORITY TO PROJEC TS: 4 (1) FOR WHICH AN APPLICAN T CLEARLY DESCRIBES HOW THE 5 PROJECT WILL: 6 (I) PROVIDE DIRECT , MEANINGFUL , AND ASSURED BENEFITS 7 TO THE COMMUNITY IN WHICH THE PROJECT IS LOCATED; AND 8 (II) ADDRESS THE NEEDS OF THE COMMUNITY IN WHI CH THE 9 PROJECT IS LOCATE D; 10 (2) THAT PREVENT , RESCUE, AND DIVERT FOOD WAST E FROM 11 REFUSE DISPOSAL SYST EMS TO INSTEAD BE US ED IN THE COMMUNITY IN WHICH THE 12 PROJECT IS LOCATED , INCLUDING COMPOSTING THE FOOD WASTE FOR U SE IN THE 13 STATE; 14 (3) FOR WHICH AN APPLICAN T DEMONSTRATES KNOWLEDGE OF BEST 15 PRACTICES IN THE APP LICABLE FIELD AND HO W TO INCORPORATE THO SE BEST 16 PRACTICES IN THE PRO JECT; 17 (4) THAT SERVE A FARM OWN ED OR OPERATED BY A FARMER WHO IS 18 A LOW–INCOME INDIVIDUAL , A SOCIALLY DISADVANT AGED INDIVIDUAL , A WOMAN, 19 OR A VETERA N; 20 (5) THAT SERVE A LOW –INCOME OR SOCIALLY D ISADVANTAGED 21 COMMUNITY ; OR 22 (6) THAT ENGAGE SMALL OR BEGINNING FARMING OP ERATIONS. 23 Article – Environment 24 9–201. 25 (a) In this subtitle the following words have the meanings indicated. 26 (e) “Refuse disposal system” includes: 27 (1) An incinerator; 28 (2) A transfer station; 29 6 SENATE BILL 56 (3) A landfill system; 1 (4) A landfill; 2 (5) A solid waste processing facility; and 3 (6) Any other solid waste acceptance facility. 4 9–1701. 5 (a) In this subtitle the following words have the meanings indicated. 6 (d) “Composting” means the controlled aerobic biological decomposition of organic 7 waste material in accordance with the standards established by the Secretary under this 8 title. 9 (q) “Recycling” means any process in which recyclable materials are collected, 10 separated, or processed and returned to the marketplace in the form of raw materials or 11 products. 12 SUBTITLE 17A. WASTE REDUCTION. 13 9–17A–01. 14 (A) IN THIS SUBTITLE THE FOLLOWING WORDS HAVE THE MEANINGS 15 INDICATED. 16 (B) “COMPOSTING” HAS THE MEANING STAT ED IN § 9–1701 OF THIS TITLE. 17 (C) “FUND” MEANS THE REDUCE, RECYCLE, REMANUFACTURE FUND. 18 (D) “HAULER” MEANS A PERSON THAT IS CONTRACTED TO COL LECT OR 19 HAUL SOLID WASTE . 20 (E) “RECYCLING” HAS THE MEANING STAT ED IN § 9–1701 OF THIS TITLE. 21 (F) “REFUSE DISPOSAL SYSTE M” HAS THE MEANING STAT ED IN § 9–201 OF 22 THIS TITLE. 23 9–17A–02. 24 (A) (1) THE DEPARTMENT MAY ESTABL ISH A STATEWIDE SOLI D WASTE 25 DISPOSAL SURCHARGE O N THE FINAL DISPOSAL OF SOLID WASTE IN TH E STATE. 26 SENATE BILL 56 7 (2) (I) THIS PARAGRAPH DOES N OT APPLY TO AN OWNER OR 1 OPERATOR OF A REFUSE DISPOSAL SYSTEM LOCA TED IN A COUNTY THAT HAS 2 IMPLEMENTED A LOCAL SOLID WASTE DISPOSAL SURCHARGE PROGRAM IN 3 ACCORDANCE WITH § 9–17A–03 OF THIS SUBTITLE. 4 (II) IF A STATEWIDE SOLID WASTE DISPOSAL SURCH ARGE IS 5 ESTABLISHED UNDER TH IS SECTION, EACH OWNER OR OPERAT OR OF A REFUSE 6 DISPOSAL SYSTEM IN T HE STATE SHALL: 7 1. COLLECT THE SURCHARGE IN ACCORDANCE WITH 8 THIS SECTION; AND 9 2. INCLUDE THE SURCHARGE AMOUNT DUE AS A 10 SEPARATE LIN E ITEM ON THE BILL O R INVOICE THAT THE O WNER OR OPERATOR 11 PROVIDES TO A HAULER OR OTHER PERSON DISP OSING OF WASTE AT TH E REFUSE 12 DISPOSAL SYSTEM . 13 (3) A HAULER THAT PAYS A S TATEWIDE SOLID WASTE DISPOSAL 14 SURCHARGE TO AN OWNE R OR OPERATOR OF A R EFUSE DISPOS AL SYSTEM IN 15 ACCORDANCE WITH THIS SECTION MAY COLLECT A RATE, FEE, OR SURCHARGE 16 FROM A CUSTOMER ONLY IN AN AMOUNT SUFFICI ENT FOR THE HAULER T O RECOVER 17 THE AMOUNT OF THE SU RCHARGE PAID BY THE HAULER. 18 (B) IF A STATEWIDE SOLID WASTE DISPOSAL SURCH ARGE IS ESTABLISHED 19 UNDER THIS SECTION , THE SURCHARGE SHALL : 20 (1) BE $2 PER TON OF SOLID WAS TE PROCESSED BY A RE FUSE 21 DISPOSAL SYSTEM ; AND 22 (2) EVERY 2 YEARS AFTER ESTABLIS HMENT, BE: 23 (I) ADJUSTED BY THE DEPARTMENT IN ACCORDA NCE WITH 24 THE CONSUMER PRICE INDEX FOR THE MID–ATLANTIC DIVISION; AND 25 (II) EVALUATED BY THE DEPARTMENT TO DETERMI NE 26 WHETHER INCREASES TO THE SURCHARGE ARE RE COMMENDED . 27 (C) IF A SURCHARGE HAS BE EN COLLECTED BY AN O WNER OR OPERATOR 28 OF A TRANSFER STATIO N, THE STATEWIDE SOLID W ASTE DISPOSAL SURCHARGE MAY 29 NOT BE COLLECTED BY AN OWNER OR OPERATOR OF A REFUSE DISPOSAL SYSTEM 30 THAT RECEIVES THE SO LID WASTE FOR FINAL DISPOSAL. 31 8 SENATE BILL 56 (D) (1) IF A STATEWIDE SOLID WASTE DISPOSAL SURCH ARGE IS 1 ESTABLISHED UNDER TH IS SECTION, THE COMPTROLLER SHALL COL LECT THE 2 SURCHARGE REVENUE AS SESSED UNDER THIS SE CTION AND DEPOSIT TH E REVENUE 3 INTO THE REDUCE, RECYCLE, REMANUFACTURE FUND ESTABLISHED UNDE R § 4 9–17A–04 OF THIS SUBTITLE. 5 (2) (I) IF A STATEWIDE SOLID WASTE DISPOSAL SURCH ARGE IS 6 ESTABLISHED UNDER TH IS SECTION, 6 MONTHS AFTER THE SUR CHARGE IS 7 ESTABLISHED AND ON A QUARTERLY BASIS THER EAFTER, AN OWNER OR OPERATOR 8 OF A REFUSE DISPOSAL SYSTEM SHALL COMPLE TE AND SUBMIT , UNDER OATH , A 9 RETURN AND REMIT THE SURCHARGE REVENUE TO THE COMPTROLLER . 10 (II) A RETURN SUBMITTED UND ER SUBPARAGRAPH (I) OF THIS 11 PARAGRAPH SHALL INCL UDE INFORMATION ON T HE NUMBER OF TONS OF SOLID 12 WASTE ACCEPTED FOR D ISPOSAL, TRANSFER, OR COLLECTION, AS APPROPRIATE , 13 DURING THE REPORTING PERIOD. 14 (E) THE COMPTROLLER MAY ADOPT REGULATIONS TO CARRY OUT THIS 15 SECTION. 16 9–17A–03. 17 (A) (1) IF A STATEWIDE SOLID WASTE DISPOSAL SURCH ARGE IS 18 ESTABLISHED UNDER § 9–17A–02 OF THIS SUBTITLE , A COUNTY, INCLUDING 19 BALTIMORE CITY AND MIDSHORE COU NTIES, MAY SUBMIT A REQUEST TO THE 20 DEPARTMENT TO ESTABLI SH A LOCAL SOLID WAS TE DISPOSAL SURCHARG E 21 PROGRAM. 22 (2) THE DEPARTMENT MAY APPROV E A REQUEST SUBMITTE D UNDER 23 PARAGRAPH (1) OF THIS SUBSECTION I F THE COUNTY ES TABLISHES A LOCAL SO LID 24 WASTE DISPOSAL SURCH ARGE PROGRAM TO FUND FOOD RESCUE , WASTE 25 DIVERSION, AND COMPOSTING IN AC CORDANCE WITH THIS S ECTION. 26 (B) A LOCAL SOLID WASTE DI SPOSAL SURCHARGE PRO GRAM ESTABLISHED 27 UNDER THIS SECTION S HALL: 28 (1) INCLUDE A SURCH ARGE ASSESSED AT A R ATE THAT IS GREATER 29 THAN OR EQUAL TO THE SURCHARGE RATE ESTAB LISHED UNDER § 9–17A–02(B) OF 30 THIS SUBTITLE; AND 31 (2) ALLOCATE THE SURCHARG E REVENUE COLLECTED BY THE 32 COUNTY TO ENTITIES A ND PROJECTS THAT WOU LD BE ELIGIBLE TO AP PLY FOR 33 GRANT FUNDS UNDER : 34 SENATE BILL 56 9 (I) THE ON–FARM ORGANIC DIVERSION AND COMPOSTING 1 GRANT PROGRAM UNDER TITLE 2, SUBTITLE 23 OF THE AGRICULTURE ARTICLE; 2 (II) THE GRANT PROGRAM TO REDUCE AND COMPOST SCHOOL 3 WASTE UNDER § 7–130 OF THE EDUCATION ARTICLE; 4 (III) THE FOOD WASTE REDUCTION AND DIVERSION GRANTS 5 PROGRAM UNDER § 9–17A–05 OF THIS SUBTITLE; OR 6 (IV) THE CIRCULAR ECONOMY INCENTIVE PROGRAM UNDER § 7 9–17A–06 OF THIS SUBTITLE. 8 (C) (1) SUBJECT TO PARAGRAPH (2) OF THIS SUBSECTION , A COUNTY 9 MAY ASSESS A LOCAL S OLID WASTE DISPOSAL SURCHARGE ESTABLISHE D IN 10 ACCORDANCE WITH THIS SECTION AT THE LEVEL OF WASTE GENERATION , 11 COLLECTION, OR FINAL DISPOSAL . 12 (2) A COUNTY MAY NOT ASSES S A LOCAL SOLID WAST E DISPOSAL 13 SURCHARGE ON THE SAM E SOLID WASTE MORE T HAN ONCE. 14 (D) (1) THE STATEWIDE SOLID W ASTE DISPOSAL SURCHA RGE 15 AUTHORIZED UNDER § 9–17A–02 OF THIS SUBTITLE MAY NOT BE ASSESSED ON T HE 16 FINAL DISPOSAL OR TR ANSFER OF WASTE AT A REFUSE DISPOSAL SYST EM LOCATED 17 IN A COUNTY THAT HAS IMPLEMENTED A LOCAL SOLID WASTE DISPOSAL 18 SURCHARGE PROGRAM IN ACCORDANCE WITH THIS SECTION. 19 (2) SOLID WASTE DISPOSED OF AT REFUSE DISPOSA L SYSTEMS IN A 20 COUNTY THAT HAS IMPL EMENTED A LOCAL SOLI D WASTE DISPOSAL SUR CHARGE 21 PROGRAM IN ACCORDANC E WITH THIS SECTION IS SUBJECT TO THE LO CAL 22 SURCHARGE E STABLISHED UNDER THE PROGRAM. 23 (E) EACH YEAR, THE DEPARTMENT SHALL REVI EW EACH LOCAL SOLID 24 WASTE DISPOSAL SURCH ARGE PROGRAM ESTABLI SHED UNDER THIS SECT ION TO: 25 (1) ENSURE COMPLIANCE WIT H THE REQUIREMENTS O F THIS 26 SECTION; AND 27 (2) EVALUATE BEST PRACTI CES AND LESSONS LEAR NED FROM 28 LOCAL SOLID WASTE SU RCHARGE PROGRAMS . 29 9–17A–04. 30 10 SENATE BILL 56 (A) THERE IS A REDUCE, RECYCLE, REMANUFACTURE FUND. 1 (B) THE PURPOSE OF THE FUND IS TO PROVIDE FU NDING TO THE 2 DEPARTMENT , THE DEPARTMENT OF AGRICULTURE , AND THE STATE 3 DEPARTMENT OF EDUCATION TO AWARD GRANTS FOR PROJECTS THAT: 4 (1) REDUCE FOOD WASTE AND SOLID WASTE; 5 (2) PROMOTE COMPOSTING AN D COMPOST USE ; AND 6 (3) DEVELOP METHODS FOR U PCYCLING AND REMANUF ACTURING 7 MATERIALS THAT WOULD OTHERWISE BE DISPOSE D OF. 8 (C) THE DEPARTMENT SHALL ADMI NISTER THE FUND. 9 (D) (1) THE FUND IS A SPECIAL , NONLAPSING FUND THAT IS NOT 10 SUBJECT TO § 7–302 OF THE STATE FINANCE AND PROCUREMENT ARTICLE. 11 (2) THE STATE TREASURER SHALL HOLD THE FUND SEPARATELY , 12 AND THE COMPTROLLER SHALL ACCOUNT FOR THE FUND. 13 (E) THE FUND CONSISTS OF : 14 (1) STATEWIDE SOLID WASTE DISPOSAL SURCHARGE R EVENUE 15 DEPOSITED INTO THE FUND UNDER § 9–17A–02 OF THIS SUBTITLE; 16 (2) FEDERAL OR PRIVATE GR ANT FUNDING OBTAINED BY THE 17 DEPARTMENT ; 18 (3) MONEY APPROPRIA TED IN THE STATE BUDGET TO THE FUND; 19 (4) INTEREST EARNINGS ; AND 20 (5) ANY OTHER MONEY FROM ANY OTHER SOURCE ACC EPTED FOR 21 THE BENEFIT OF THE FUND. 22 (F) (1) THE FUND MAY BE USED ONLY TO: 23 (I) PROVIDE THE FUNDING N ECESSARY TO AWARD GR ANTS 24 UNDER: 25 1. TITLE 2, SUBTITLE 23 OF THE AGRICULTURE 26 ARTICLE; 27 SENATE BILL 56 11 2. § 7–130 OF THE EDUCATION ARTICLE; AND 1 3. §§ 9–17A–05 AND 9–17A–06 OF THIS SUBTITLE; AND 2 (II) COVER THE REASONABLE ADMINISTRATIVE COSTS OF: 3 1. THE DEPARTMENT IN ADMINIS TERING THE FUND; 4 2. THE DEPARTMENT OF AGRICULTURE IN AWARDI NG 5 GRANTS UNDER TITLE 2, SUBTITLE 23 OF THE AGRICULTURE ARTICLE; 6 3. THE STATE DEPARTMENT OF EDUCATION IN 7 AWARDING GRANTS UNDE R § 7–130 OF THE EDUCATION ARTICLE; AND 8 4. THE DEPARTMENT IN AWARDIN G GRANTS UNDER §§ 9 9–17A–05 AND 9–17A–06 OF THIS SUBTITLE. 10 (2) UP TO 10% OF THE ESTIMATED ANN UAL SOLID WASTE 11 SURCHARGE REVENUE MA Y BE USED TO COVER R EASONABLE ADMINISTRA TIVE 12 COSTS UNDER PARAGRAP H (1)(II) OF THIS SUBSECTION . 13 (G) (1) THE STATE TREASURER SHALL INVEST THE MON EY OF THE FUND 14 IN THE SAME MANNER A S OTHER STATE MONEY MAY BE IN VESTED. 15 (2) INTEREST EARNINGS OF THE FUND SHALL BE CREDITE D TO THE 16 FUND. 17 9–17A–05. 18 (A) (1) IN THIS SECTION THE F OLLOWING WORDS HAVE THE MEANINGS 19 INDICATED. 20 (2) (I) “ELIGIBLE ENTITY” MEANS: 21 1. A UNIT OF STATE OR LOCAL GOVERN MENT THAT HAS 22 NOT IMPLEMENTED A LO CAL SOLID WASTE DISP OSAL SURCHARGE PROGR AM UNDER 23 § 9–17A–03 OF THIS SUBTITLE; 24 2. A LOCAL EDUCATION AGEN CY; 25 3. AN INSTITUTION OF HIG HER EDUCATIO N; 26 12 SENATE BILL 56 4. A NONPROFIT ORGANIZATI ON; 1 5. A FARMER, INCLUDING AN URBAN F ARMER; 2 6. A BUSINESS THAT IS: 3 A. OPERATING IN THE STATE IN GOOD STANDIN G; AND 4 B. INTENDED TO OPERATE A T A PROFIT AND RETUR N A 5 PROFIT TO ITS OWNERS ; AND 6 7. A CONSORTIUM OF ANY OF THE ENTITIES IDENTIF IED 7 IN ITEMS 1 THROUGH 6 OF THIS SUBPARAGRAPH . 8 (II) “ELIGIBLE ENTITY” DOES NOT INCLUDE A C OUNTY THAT 9 HAS IMPLEMENTED A LO CAL SOLID WASTE DISP OSAL SURCHARGE PROGR AM IN 10 ACCORDANCE WITH § 9–17A–03 OF THIS SUBTITLE. 11 (3) “PROGRAM” MEANS THE FOOD WASTE REDUCTION AND 12 DIVERSION GRANTS PROGRAM. 13 (B) THERE IS A FOOD WASTE REDUCTION AND DIVERSION GRANTS 14 PROGRAM. 15 (C) THE PURPOSE OF THE PROGRAM IS TO AWARD G RANTS FOR 16 INFRASTRUCTURE , PROGRAMMING , AND EDUCATION FOCUSE D ON REDUCING , 17 RESCUING, AND DIVERTING FOOD W ASTE IN THE STATE. 18 (D) THE DEPARTMENT , IN CONSULTATION WITH THE DEPARTMENT OF 19 AGRICULTURE , SHALL ADMINISTER THE PROGRAM. 20 (E) A PROJECT IS ELIGIBLE FOR A GRANT UNDER TH E PROGRAM IF THE 21 PROJECT: 22 (1) DEVELOPS, MAINTAINS, OR EXPANDS INFRASTRU CTURE OR 23 PROGRAMS THAT : 24 (I) REDUCE THE AMOUNT OF FOOD WASTE GENERATED IN THE 25 STATE; 26 (II) RESCUE EDIBLE FOOD TH AT WOULD OTHERWISE B E 27 DISPOSED OF; 28 SENATE BILL 56 13 (III) COMPOST FOOD RESIDUAL S, INCLUDING PROJECTS F OR: 1 1. AT–HOME COMPOSTING ; 2 2. COMMUNITY COMPOSTING ; AND 3 3. ON–FARM COMPOSTING ; OR 4 (IV) SUPPORT A TRANSITION FROM THE USE OF SING LE–USE 5 FOOD SERVICEWARE TO DURABLE, REUSABLE FOOD SERVIC EWARE; 6 (2) ENCOURAGES SOURCE SEP ARATION OF UNCONTAMI NATED FOOD 7 RESIDUALS; 8 (3) PROVIDES EDUCATION OR TECHNICAL ASSISTANCE TO ADVANCE 9 FOOD WASTE PREVENTIO N, DIVERSION, AND COMPOSTING ; OR 10 (4) COLLECTS AND COMPOSTS SOURCE–SEPARATED COMPOSTABL E 11 MATERIALS. 12 (F) AN ELIGIBLE ENTITY MA Y APPLY FOR A GRANT UNDER THIS SECT ION. 13 (G) (1) THE DEPARTMENT SHALL ESTA BLISH GRANT APPLICAT ION 14 PROCEDURES . 15 (2) THE GRANT APPLICATION PROCEDURES SHALL INC LUDE: 16 (I) A PROCESS FOR FACILITA TING THE PARTICIPATI ON OF 17 ELIGIBLE ENTITIES WI TH LIMITED RESOURCES ; AND 18 (II) A SIMPLE COMMO N APPLICATION AND CO MMON 19 REPORTING FORMAT . 20 (H) IN AWARDING GRANTS UN DER THIS SECTION , THE DEPARTMENT SHALL 21 GIVE PRIORITY TO PRO JECTS: 22 (1) FOR WHICH AN APPLICAN T CLEARLY DESCRIBES HOW THE 23 PROJECT WILL PROVIDE DIRECT, MEANINGFUL , AND ASSURED BENEFITS TO THE 24 COMMUNITY AND ADDRES S IMPORTANT COMMUNIT Y NEEDS; 25 (2) THAT PREVENT , RESCUE, AND DIVERT FOOD WAST E WITHIN THE 26 COMMUNITY IN WHICH T HE PROJECT IS LOCATE D; 27 14 SENATE BILL 56 (3) THAT SERVE A MARGINAL IZED, LOW–INCOME, OR SOCIALLY 1 DISADVANTAGED COMMUN ITY; AND 2 (4) THAT MINIMIZE NEGATIV E IMPACTS AND MAXIMI ZE BENEFITS TO 3 THE LOCAL COMMUNITY , INCLUDING JOBS CREAT ED, JOB TRAINING, AND SUPPORT 4 FOR HIRING AND LEADE RSHIP DEVELOPMENT PR ACTICES THAT ARE INC LUSIVE AND 5 PROVIDE LIVING WAGES . 6 9–17A–06. 7 (A) (1) IN THIS SECTIO N THE FOLLOWING WORD S HAVE THE MEANINGS 8 INDICATED. 9 (2) “ELIGIBLE ENTITY” MEANS: 10 (I) A COUNTY OR OTHER UNIT OF LOCAL GOVERNMENT ; 11 (II) A NONPROFIT ORGANIZATI ON; AND 12 (III) A FOR–PROFIT ORGANIZATION . 13 (3) “PROGRAM” MEANS THE CIRCULAR ECONOMY INCENTIVE 14 PROGRAM. 15 (4) “STATEWIDE RECYCLING N EEDS ASSESSMENT ” MEANS THE 16 RECYCLING NEEDS ASSE SSMENT REQUIRED UNDE R CHAPTER 465 OF THE ACTS OF 17 THE GENERAL ASSEMBLY OF 2023. 18 (B) THERE IS A CIRCULAR ECONOMY INCENTIVE PROGRAM. 19 (C) THE PURPOSE OF THE PROGRAM IS TO AWARD GRA NTS OR OTHER 20 INCENTIVES TO DEVELO P METHODS FOR UPCYCL ING AND REMANUFACTUR ING 21 MATERIALS IN THE STATE THAT WOULD OTHE RWISE BE DISPOSED OF . 22 (D) THE DEPARTMENT SHALL ADMI NISTER THE PROGRAM. 23 (E) A PROJECT IS ELIGIBLE FOR A GRANT UNDER THE PROGRAM IF THE 24 PROJECT: 25 (1) ADDRESSES A NEED IDEN TIFIED IN THE STATEW IDE RECYCLING 26 NEEDS ASSESSMENT ; 27 (2) INCREASES THE AMOUNT OF MATERIAL RECYCLED IN THE STATE; 28 SENATE BILL 56 15 (3) FILLS GAPS IN THE INF RASTRUCTURE FOR COLL ECTING, 1 PROCESSING, RECYCLING, OR REUSING MATERIALS THAT WOULD OTHERWISE BE 2 DISPOSED OF; 3 (4) PROVIDES EDUCATION RE GARDING RECYCLING ; 4 (5) PROVIDES OPPORTUNITIE S TO INCREASE EMPLOY MENT AND 5 GROW NEW BUSINESSES IN ANY PROFESSION TH AT SUPPORTS AN ELIGI BLE 6 PROJECT UNDER THIS S UBSECTION; 7 (6) ADDRESSES BARRIERS TO INCREASING THE USE O F RECYCLABLE 8 MATERIALS AS FEEDSTO CK FOR PRINCIPAL PRO CESSORS AND MANUFACT URERS; 9 (7) PROVIDES FOR THE LABO R AND WAGES IN SUPPO RT OF 10 RECYCLING, REUSE, OR REMANUFACTURING O F A PRIORITY MATERIA L; OR 11 (8) SUPPORTS MEETING PERMIT REQ UIREMENTS. 12 (F) AN ELIGIBLE ENTITY MA Y APPLY FOR A GRANT UNDER THIS SECTION . 13 (G) (1) THE DEPARTMENT SHALL ESTA BLISH GRANT APPLICAT ION 14 PROCEDURES . 15 (2) THE GRANT APPLICATION PROCEDURES SHALL INC LUDE: 16 (I) A PROCESS FOR FACILITA TING THE PARTICIPATION OF 17 ELIGIBLE ENTITIES WI TH LIMITED RESOURCES ; AND 18 (II) A SIMPLE COMMON APPLIC ATION AND COMMON 19 REPORTING FORMAT . 20 (H) IN AWARDING GRANTS UN DER THIS SECTION , THE DEPARTMENT SHALL : 21 (1) FOR A PROJECT THAT ME ETS MULTIPLE RECOMMENDATIONS OF 22 THE STATEWIDE RECYCL ING NEEDS ASSESSMENT : 23 (I) RANK THE PROJECT SEPA RATELY FOR THE FOLLO WING 24 COBENEFITS: 25 1. ENVIRONMENTAL ; 26 2. ECONOMIC; AND 27 16 SENATE BILL 56 3. EQUITY; AND 1 (II) SCORE THE PROJECT BAS ED ON THE RANKINGS U NDER 2 ITEM (I) OF THIS ITEM; AND 3 (2) BASED ON THE SCORE CA LCULATED UNDER ITEM (1)(II) OF THIS 4 SUBSECTION, PRIORITIZE PROJECTS THAT SIMULTANEOUSLY MEET MULTIPLE 5 RECOMMENDATIONS OF T HE STATEWIDE RECYCLI NG NEEDS ASSESSMENT . 6 9–17A–07. 7 (A) ON OR BEFORE DECEMBER 1 EACH YEAR, BEGINNING IN 2026, THE 8 DEPARTMENT , IN COORDINATION WITH THE DEPARTMENT OF AGRICULTURE AND 9 THE STATE DEPARTMENT OF EDUCATION, SHALL REPORT TO THE GENERAL 10 ASSEMBLY, IN ACCORDANCE WITH § 2–1257 OF THE STATE GOVERNMENT ARTICLE, 11 ON THE IMPLEMENTATIO N OF THE PROGRAMS AND REQ UIREMENTS ESTABLISHE D 12 UNDER TITLE 2, SUBTITLE 23 OF THE AGRICULTURE ARTICLE, § 7–130 OF THE 13 EDUCATION ARTICLE, AND THIS SUBTITLE . 14 (B) THE REPORT SHALL INCL UDE: 15 (1) THE NUMBER AND TYPES OF GRANTS AWARDED ; 16 (2) THE IMPACT OF THE PROGRAMS, REQUIREMENTS , AND GRANT 17 AWARDS ON: 18 (I) JOB CREATION; 19 (II) WASTE PREVENTION , FOOD RESCUE , AND WASTE 20 DIVERSION; AND 21 (III) FARMERS; AND 22 (3) BENEFITS PROVIDED TO THE STATE FROM THE PROGRA MS, 23 REQUIREMENTS , AND GRANTS AWARDED . 24 Article – State Finance and Procurement 25 6–226. 26 (a) (2) (i) Notwithstanding any other provision of law, and unless 27 inconsistent with a federal law, grant agreement, or other federal requirement or with the 28 terms of a gift or settlement agreement, net interest on all State money allocated by the 29 SENATE BILL 56 17 State Treasurer under this section to special funds or accounts, and otherwise entitled to 1 receive interest earnings, as accounted for by the Comptroller, shall accrue to the General 2 Fund of the State. 3 (ii) The provisions of subparagraph (i) of this paragraph do not apply 4 to the following funds: 5 189. the Teacher Retention and Development Fund; [and] 6 190. the Protecting Against Hate Crimes Grant Fund; AND 7 191. THE REDUCE, RECYCLE, REMANUFACTURE FUND. 8 SECTION 2. AND BE IT FURTHER ENACTED, That the Laws of Maryland read 9 as follows: 10 Article – Education 11 7–130. 12 (a) In this section, “Program” means the Grant Program to Reduce and Compost 13 School Waste. 14 (b) There is a Grant Program to Reduce and Compost School Waste within the 15 Department. 16 (c) (1) The purpose of the Program is to award grants to county boards and 17 public schools to develop and implement programs for reducing food waste and to establish 18 composting of pre– and post–consumer waste. 19 (h) (1) The Department shall coordinate with the Department of the 20 Environment to identify and apply for federal funding that may be used to support the 21 Program. 22 (2) THE DEPARTMENT OF THE ENVIRONMENT SHALL USE FUNDS 23 FROM THE REDUCE, RECYCLE, REMANUFACTURE FUND ESTABLISHED UNDER § 24 9–17A–04 OF THE ENVIRONMENT ARTICLE TO SUPPORT TH E PROGRAM. 25 SECTION 3. AND BE IT FURTHER ENACTED, That this Act shall take effect 26 October 1, 2024. Section 2 of this Act shall remain effective until the taking effect of the 27 termination provision specified in Section 2 of Chapter 205 of the Acts of the General 28 Assembly of 2022. If that termination provision takes effect, Section 2 of this Act, with no 29 further action required by the General Assembly, shall be abrogated and of no further force 30 and effect. This Act may not be interpreted to have any effect on that termination provision. 31