Sec. 3. Composting grant and loan guarantee program
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The Consolidated Farm and Rural Development Act is amended by inserting after section 310I ( 7 U.S.C. 1936 ) the following: The Secretary, in consultation with the Administrator of the Environmental Protection Agency, shall establish and carry out a program to award grants and loan guarantees, on a competitive basis, for projects that expand access to food waste composting. The total amount of grant funds awarded for a project under this section shall not exceed 75 percent of the cost of the project for which the grant is awarded, as determined by the Secretary.
The total amount of grant funds awarded for a project under this subsection shall not exceed $5,000,000. Of funds made available to carry out this subsection in each fiscal year, the Secretary shall allocate not less than 25 percent to projects that do not include the use of centralized commercial composting, to the extent there are sufficient applications for such projects. An entity receiving a grant under this subsection shall fully expend the awarded grant funds within 3 years of receiving the funds.
The Secretary may award a grant under this section to any of the following entities: A State, local, territorial, or Tribal government. A local educational agency (as defined in section 8101 of the Elementary and Secondary Education Act of 1965 ( 20 U.S.C. 7801 )). An institution of higher education. A non-profit organization. A farmer or rancher. A consortium of any of the entities described in subparagraphs
(A)through (E). One or more of any of the entities described in subparagraphs
(A)through (F), in coordination with a for-profit organization. The Secretary may award a loan guarantee under this section in an amount that does not exceed 80 percent of the cost of a project that is eligible for assistance under this section, as determined by the Secretary. The Secretary may not provide a loan guarantee under this section in an amount that exceeds $5,000,000. The Secretary may award a loan guarantee under this section to a for-profit organization, farmer, or rancher that demonstrates successful prior experience in developing, managing, and marketing composting facilities. The Secretary may award grants and loan guarantees under this section for projects to carry out the following: Composting facility or site permitting, planning, and construction. Acquisition of machinery, equipment, and other physical necessities required to operate a composting facility, system, or program, except depackaging equipment. Activities to increase the production capacity throughput of a composting facility. Implementation of onsite composting systems and programs (such as home composting programs, community garden and urban farm composting, and other onsite composting systems at institutions, nonprofits, and businesses). Projects that are based on a distributed infrastructure strategy (such as a strategy that incorporates a mix or choice of home composting, farm and ranch composting, onsite composting, community-scale composting, or centralized commercial composting). Collection of organic waste intended for processing at a composting facility or system, or through a composting program, including curbside pick-up programs, community drop-off programs, and facility- or event-specific programs (such as programs at schools, restaurants, stadiums, or festivals). Activities for land-based compost application, including compost application on a farm or ranch. Market development projects that create a demand for compost product or increase commercial and residential participation in composting. An eligible entity applying for a grant or loan guarantee under this section shall demonstrate that the project for which such assistance is sought— will— result in composting of food waste (which may include such composting in combination with non-food organic waste); result in increased total capacity to accept and process food waste into finished compost product; and include at least one operator of a facility or system, if applicable, who is trained on best management practices for composting (such as odor, vector, pathogen, and contaminant control practices); in the case of a market development project, is likely to create sufficient demand to increase total capacity, in the targeted market, to accept and process food waste into high-quality finished compost; or in the case of land-based compost application activities, is consistent with any applicable requirements pursuant to section 1241(j) of the Food Security Act of 1985. In awarding grants and loan guarantees under this section, the Secretary shall prioritize projects that include the greatest number of the following factors: The project is located in or serving a location with significant access to food waste and no or limited prior access to food waste composting. The project demonstrates the potential to create new capacity for the volume or weight of food waste collected and processed, or make significant gains in the number of people with access to food waste composting facilities or systems. The project includes a demonstrated plan for following best management practices and producing a high-quality compost product. The project incorporates the participation of small and diverse businesses (such as minority-, woman-, and veteran-owned businesses certified by the Small Business Administration or under a State program or another recognized certification program and other businesses led by Black people, Indigenous people, or other people of color). The project creates opportunities for hiring and leadership development practices that are inclusive and provide living wages. The project serves disadvantaged and low-income communities, engages Black farmers, Indigenous farmers, and other farmers of color, or incorporates an environmental justice plan or principles. The project is for a facility or system that accepts or plans to accept and process only source separated organics. The Secretary may award only one grant or loan guarantee under this section for any project. In this section: The term source separated organics means organic waste that is separated from other waste by the waste generator. The term source separated organics includes materials that are certified to meet ASTM standard D6400 or D6868. The term source separated organics excludes mixed solid waste. The term centralized commercial composting means a regional composting facility that produces at least 10,000 tons of compost annually. There is authorized to be appropriated to carry out this section $200,000,000 for each of fiscal years 2024 through 2033. .
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