In this section the following words have the meanings indicated. “Grant Program” means the On–Farm Organics Diversion and Recycling Grant Program. “Urban agricultural producer” has the meaning stated in § 2–2001 of this title. “Urban farmer” has the meaning stated in § 2–401 of this title. Beginning July 1, 2028, there is an On–Farm Organics Diversion and Recycling Grant Program in the Department. The purpose of the Grant Program is to award grants annually for developing and implementing on–farm organics recycling and compost use, wasted food prevention, and food rescue. The Department, in consultation with the Department of the Environment, shall: Administer the Grant Program; and Identify and apply for funding for the Grant Program. The following persons are eligible for a grant under the Grant Program: A farmer, an urban farmer, or an urban agricultural producer; A soil conservation district; An institution of higher education as defined in § 10–101 of the Education Article; A nonprofit organization; A business in the State that is in: Good standing with the State Department of Assessments and Taxation; and Partnership with a farmer, an urban farmer, or an urban agricultural producer; and A consortium of any entities under this subsection. A project is eligible for a grant under the Grant Program if the project develops, maintains, or expands infrastructure, collection programs, education, or technical assistance in the State that: Reduces the amount of wasted food generated; Rescues edible food for purposes of redistribution; Recovers wasted food as animal feed if the feed is registered and treated in accordance with regulations implemented by the Department; Composts or recycles food residuals that are separated from packaging prior to collection, including at–home, community, and on–farm composting; Provides labor and wages in support of wasted food prevention, food rescue, and on–farm organics recycling and compost use; Provides best management practice training in relevant fields by a reputable training program; Studies the impacts of compost application on on–farm nutrient and water quality management; or Assists in the payment of applicable permit application costs. In awarding grants under the Grant Program, the Department, in consultation with the Department of the Environment, shall prioritize projects: For which the applicant clearly describes how the project will: Provide direct, meaningful, and assured benefits to the community; and Address important community needs; That prevent, rescue, and divert wasted food within a local community; That plan to produce compost that meets the classification of “General Use” under COMAR 15.18.04.05; That plan to produce minimally contaminated compost through: Processing organic materials that are separated from packaging prior to collection; Not using depackagers; and Meeting the U.S. Composting Council’s Seal of Testing Assurance; That serve an overburdened or underserved community as defined in § 1–701 of the Environment Article; That minimize negative impacts to the local community; and That maximize benefits to the local community, including: The creation of jobs; Increasing job training; and Increasing hiring and leadership development practices that are inclusive and provide a living wage. For fiscal year 2028 and each fiscal year thereafter, the Governor shall include in the annual budget bill an appropriation of $250,000 to the Grant Program. On or before December 31, 2028, and each December 31 thereafter, the Department shall report to the General Assembly, in accordance with § 2–1257 of the State Government Article, on: The number and types of grants awarded; The impact of the grants on the creation of jobs and other benefits to the State; The impact on food waste prevented, rescued, and diverted from disposal; and The impact on farmers, urban farmers, and urban agricultural producers in the State.