I found a great resource referencing the state-by-state regulations on composting toilets at Weblife.org. It appears that our concern that most states have banned their use is unfounded -- my own state of Florida, in fact, encourages their use. It’s a touch out of date, so please post if you can find a more recent compilation. But, definitely good news.
Composting toilet regulations
Submitted by PeakEngineer on Sat, 2007-03-24 07:51.
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Precaution: State Overruled by County Requirements
You really need to check with your County's Health Department to find out what THEIR regulations are. Even if your State allows something, your County might require something more stringent. At least that was the case in my county a few years ago. But yes, the good news is that regulations may be changing for the better.