(1) Except as provided in (2), this subchapter applies to all facilities that compost, or use in a composting process, any organic solid waste that can be biologically decomposed, including yard and garden waste, manure, animal processing by-products, animal mortalities, food waste, biosolids, septage, agricultural waste, and clean wood waste.

(2) This subchapter does not apply to:

(a) on-site household composting;

(b) community garden compost operations;

(c) a business that accepts finished compost for bagging or handling; and

(d) composting when:

(i) compost materials include only barn and farm wastes that are derived from on-site agricultural operations; and

(ii) composting occurs at the site of generation or at contiguous property owned or leased by the generator.