(a) Each state agency, state college or university, county, city, and public school, in cooperation with the Division of Environmental Quality and the Compliance Advisory Panel shall:
(1) Establish a source separation and recycling program for recyclables generated as a result of agency operations;
(2) Adopt procedures for collection and storage of recyclables; and
(3) Make contractual or other arrangements for transportation and sale of recyclables.
(b) Nothing in this section shall prohibit any state agency, state college or university, county, city, or public school from engaging in, contracting for, or otherwise allowing or arranging for composting of yard waste on property owned or controlled by the governmental entity.