State fiscal affairs; requiring entities of state to round price of certain transactions. Effective date. Emergency.

2026 Regular Session

Provides grants to incentivize finished compost and digestate use on farms and funds a 2026–2028 PRI study on their agricultural impacts, with a final report due Dec 1, 2028.

Second Reading referred to Revenue and Taxation Committee then to Appropriations Committee

SB1397 — Compost & Digestate Study (Illinois) — Summary

Status: Introduced (1/29/2025); Referred to Assignments; First reading 1/29/2025. Companion: HB 1078. Sponsor: Sen. Adriane Johnson.

Purpose
- To incentivize beneficial use of finished compost and anaerobic digestate (liquid and solid) on agricultural lands and to fund a multi‑year study of those materials’ use, impacts, and potential as a management option for organic residuals.

Key provisions
1. Amendments to the Environmental Protection Act (415 ILCS 5/22.15)
- Directs the Comptroller and Treasurer to transfer funds from the Solid Waste Management Fund into a separate account for grants to the Prairie Research Institute (PRI) to cover study implementation costs.
- Specific transfers: $225,000 on October 1, 2026; $234,000 on October 1, 2027; $243,360 on October 1, 2028.

Amendments to the Illinois Solid Waste Management Act (new/modified section)

Grants: the Illinois EPA (Agency) is required to provide grants that incentivize use of finished compost, liquid digestate, and solid digestate on private and public lands used for commercial and specialty farming operations.
Study partnership: the Agency must partner with the Prairie Research Institute (University of Illinois) to conduct a study on the use of finished compost, liquid digestate, and solid digestate during FY2026–FY2028.
Reporting: PRI (in partnership with the Agency) must submit a final report to the Governor and General Assembly by December 1, 2028.
Effective immediately upon enactment.

Who is affected
- Illinois Environmental Protection Agency — program and grant administration responsibilities.
- Prairie Research Institute (University of Illinois) — principal research/grant recipient to implement the multi‑year study.
- Commercial and specialty farm operations — potential grant recipients and users of compost/digestate incentivized by the program.
- Solid Waste Management Fund — funding source for grant transfers as specified.

Timeline and procedural aspects
- Funding transfers scheduled Oct 1 of 2026, 2027, and 2028 (specified amounts totaling $702,360).
- Study period spans fiscal years 2026–2028; final report due December 1, 2028.
- Bill effective immediately on enactment.
- Legislative actions: introduced and first read 1/29/2025; referred to Assignments; additional committee deadlines and sponsor/co‑sponsor activity recorded in March–May 2025.

Potential impacts and considerations
- Expected outcomes: improved knowledge about agronomic, soil health, nutrient management, and environmental impacts of compost/digestate use; stronger markets and on‑farm use incentives for organic residuals; potential landfill diversion.
- Scale: funding is modest; focused on study and targeted grants rather than large‑scale subsidy.
- Implementation issues to watch: grant design (eligibility, application process), agronomic/regulatory safeguards for land application (nutrient runoff, pathogen/contaminant monitoring), and how study findings inform future policy or broader incentive programs.