Caroline Sherman Borden, legislative director of Rural Vermont, told the committee that on‑farm composting of food residuals remains a 'legacy issue' because agency rules required by Act 41 (2021) and related guidance have not been finalized, leaving farmers uncertain about permitting, setbacks and other requirements.

Borden said the 2021 change to the statutory definition of farming was intended to allow farmers who own composting operations to treat that activity as farming, but ANR's publicly available rules have not been updated and the agency has yet to complete rulemaking. She noted that ANR had told advocates it intended to open rulemaking in April but that the process has been delayed by wetland rule updates and the IEP rule, leaving prospective practitioners in limbo.

Pointing to the statutory management hierarchy, Borden said on‑farm composting is among the highest tiers for managing organics, but uncertainty about regulatory specifics — "like setbacks" and whether a facility can operate year‑round next to a barn — prevents farmers from investing substantial funds. She recommended the committee invite the Compost Association of Vermont to provide technical testimony and said legacy practitioners who were operating before the law continue to be protected.

Borden also noted Act 170 of 2022, which required regulation of packaging/depackaging facilities, and said ANR's rules should ensure source‑separated residuals remain available for composting rather than diverted to lower tiers or to mechanical processing that could increase PFAS risks.

No committee action was taken during this sitting; members noted the gap between statutory change and finalized agency rules and discussed potential next steps for hearings or invitations to agency and industry representatives.