LAWRENCE J. HOGAN, JR., Governor Ch. 412 – 1 – Chapter 412 (House Bill 1201) AN ACT concerning Water Pollution – Civil Penalty Surcharge – Oyster Repletion Fund Supplemental Environmental Projects FOR the purpose of establishing a surcharge on civil penalties imposed for certain violations that result in the discharge of pollutants into the Chesapeake Bay or its tributaries; establishing the Oyster Repletion Fund as a special, nonlapsing fund in the Department of Natural Resources; requiring the surcharges to be deposited to the Fund and used to finance the repletion of natural oyster bars in waters impacted by water pollution violations requiring the Department of the Environment to include oyster repletion projects in a certain database; requiring the Department to prioritize a supplemental environmental project involving certain oyster repletion projects for a party who is in violation of a certain effluent limitation or unpermitted discharge; and generally relating to water pollution and oyster repletion. BY repealing and reenacting, with amendments, Article – Environment Section 9–342 Annotated Code of Maryland (2014 Replacement Volume and 2021 Supplement) BY adding to Article – Natural Resources Section 4–209.1 Annotated Code of Maryland (2018 Replacement Volume and 2021 Supplement) BY adding to Article – Environment Section 1–306(b)(3) Annotated Code of Maryland (2013 Replacement Volume and 2021 Supplement) (As enacted by Chapter __ (S.B. 90/H.B. 595) of the Acts of the General Assembly of 2022) SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, That the Laws of Maryland read as follows: Article – Environment 1–306. Ch. 412 2022 LAWS OF MARYLAND – 2 – (b) (3) THE DEPARTMENT SHALL INCL UDE OYSTER REPLETION PROJECTS IN THE DATA BASE. 9–342. (a) (1) In addition to being subject to an injunctive action under this subtitle, a person who violates any provision of this subtitle or of any rule, regulation, order, or permit adopted or issued under this subtitle is liable to a civil penalty not exceeding $10,000, to be collected in a civil action brought by the Department. (2) Each day a violation occurs is a separate violation under this subsection. (b) (1) In addition to any other remedies available at law or in equity and after an opportunity for a hearing which may be waived in writing by the person accused of a violation, the Department may impose a penalty for violation of any provision of this subtitle or any rule, regulation, order, or permit adopted or issued under this subtitle. (2) The penalty imposed on a person under this subsection shall be: (i) Up to $10,000 for each violation, but not exceeding $100,000 total; and (ii) Assessed with consideration given to: 1. The willfulness of the violation, the extent to which the existence of the violation was known to but uncorrected by the violator, and the extent to which the violator exercised reasonable care; 2. Any actual harm to the environment or to human health, including injury to or impairment of the use of the waters of this State or the natural resources of this State; 3. The cost of cleanup and the cost of restoration of natural resources; 4. The nature and degree of injury to or interference with general welfare, health, and property; 5. The extent to which the location of the violation, including location near waters of this State or areas of human population, creates the potential for harm to the environment or to human health or safety; 6. The available technology and economic reasonableness of controlling, reducing, or eliminating the violation; LAWRENCE J. HOGAN, JR., Governor Ch. 412 – 3 – 7. The degree of hazard posed by the particular pollutant or pollutants involved; and 8. The extent to which the current violation is part of a recurrent pattern of the same or similar type of violation committed by the violator. (3) Each day a violation occurs is a separate violation under this subsection. (4) Any penalty imposed under this subsection is payable to this State and collectible in any manner provided at law for the collection of debts. (5) If any person who is liable to pay a penalty imposed under this subsection fails to pay it after demand, the amount, together with interest and any costs that may accrue, shall be: (i) A lien in favor of this State on any property, real or personal, of the person; and (ii) Recorded in the office of the clerk of court for the county in which the property is located. (6) Any penalty collected under this subsection shall be placed in a special fund to be used for monitoring and surveillance by the Department to assure and maintain an adequate record of any violations, including discharge of waste material and other pollutants into the waters of this State or into the environment. (C) (1) IN ADDITION TO A CIVI L PENALTY IMPOSED UN DER SUBSECTION (A) OR (B) OF THIS SECTION, IF A VIOLATION OF AN Y PROVISION OF THIS SUBTITLE OR ANY RULE, REGULATION , ORDER, OR PERMIT ADOPTED OR ISSUED UNDER THIS SUBTITLE, RESULTS IN THE DISCH ARGE OF POLLUTANTS T O THE CHESAPEAKE BAY OR ITS TRIBUTARIES , THE DEPARTMENT SHALL IMPO SE A SURCHARGE ON TH E PERSON RESPONSIBLE F OR THE VIOLATION . (2) THE SURCHARGE SHALL B E EQUAL TO 25% OF THE TOTAL CIVIL PENALTY IMPOSED UNDE R SUBSECTION (A) OR (B) OF THIS SECTION. (3) ANY SURCHARGE COLLECT ED UNDER THIS SUBSEC TION SHALL BE DEPOSITED INTO TH E OYSTER REPLETION FUND ESTABLISHED UNDE R § 4–209.1 OF THE NATURAL RESOURCES ARTICLE. Article – Natural Resources 4–209.1. Ch. 412 2022 LAWS OF MARYLAND – 4 – (A) (1) IN THIS SECTION THE F OLLOWING WORDS HAVE THE MEANINGS INDICATED. (2) “COUNTY OYSTER COMMITTEE” MEANS A COMMITTEE ESTABLISHED UNDER § 4–1106(B) OF THIS TITLE. (3) “FUND” MEANS THE OYSTER REPLETION FUND. (B) THERE IS AN OYSTER REPLETION FUND IN THE DEPARTMENT . (C) THE PURPOSE OF THE FUND IS TO FINANCE TH E REPLETION OF NATURAL OYSTER BARS IN WATERS IMPAC TED BY WATER POLLUTI ON VIOLATIONS. (D) THE DEPARTMENT SHALL ADMI NISTER THE FUND. (E) (1) THE FUND IS A SPECIAL , NONLAPSING FUND THAT IS NOT SUBJECT TO § 7–302 OF THE STATE FINANCE AND PROCUREMENT ARTICLE. (2) THE STATE TREASURER SHALL HOLD THE FUND SEPARATELY AND THE COMPTROLLER SHALL ACC OUNT FOR THE FUND. (F) THE FUND CONSISTS OF : (1) SURCHARGES ON CIVIL P ENALTIES COLLECTED U NDER § 9–342(C) OF THE ENVIRONMENT ARTICLE; (2) MONEY APPROPRIATED IN THE STATE BUDGET TO THE FUND; AND (3) ANY OTHER MONEY FROM ANY OTHER SOURCE ACC EPTED FOR THE BENEFIT OF THE FUND. (G) (1) THE FUND MAY BE USED ONLY FOR OYSTER REPLETION PROJECTS CONDUCTED I N ACCORDANCE WITH TH IS SUBSECTION. (2) TO THE EXTENT PRACTIC ABLE, A SURCHARGE COLLECTED UNDER § 9–342(C) OF THE ENVIRONMENT ARTICLE SHALL BE USED TO FUND OYSTER REPLETION PRO JECTS IN THE COUNTY WHERE THE UNDERLYING WATER POLLUTION VIOLATION OCCURRED. (3) THE DEPARTMENT SHALL WORK WITH THE COUNTY OYST ER COMMITTEE FOR THE CO UNTY WHERE THE UNDERLYING WATER POLLUTION VIOLATION OCCURRED T O IDENTIFY: LAWRENCE J. HOGAN, JR., Governor Ch. 412 – 5 – (I) NATURAL OYSTER BARS W ITHIN THE COUNTY FOR REPLETION; OR (II) IF NO NATURAL OYSTER BAR WITHIN THE COUNT Y IS SUITABLE FOR REPLETI ON, NATURAL OYSTER BARS WITHIN AN ADJACENT C OUNTY FOR REPLETION . (4) REPLETION PROJECTS CO NDUCTED UNDER THIS S UBSECTION SHALL BE IN THE FORM OF SPAT–ON–SHELL. (5) (I) THE DEPARTMENT MAY CONTRA CT WITH A NONPROFIT ORGANIZATION THAT SP ECIALIZES IN OYSTER RECOVERY TO CARRY OU T OYSTER REPLETION PROJECTS U NDER THIS SUBSECTION . (II) THE FUND MAY BE USED TO C OVER REASONABLE ADMINISTRATIVE EXPEN SES INCURRED BY A NO NPROFIT ORGANIZATION IN CARRYING OUT OYSTER REPLETION PROJECTS U NDER THIS SUBSECTION . (H) (1) THE STATE TREASURER SHALL INVEST THE MONEY OF THE FUND IN THE SAME MANNER A S OTHER STATE MONEY MAY BE IN VESTED. (2) ANY INTEREST EARNINGS OF THE FUND SHALL BE CREDITE D TO THE GENERAL FUND OF THE STATE. (I) EXPENDITURES FROM THE FUND MAY BE MADE ONLY IN ACCORDANCE WITH THE STATE BUDGET. (J) MONEY EXPENDED FROM T HE FUND FOR OYSTER REPLE TION PROJECTS IS SUPPLEME NTAL TO AND IS NOT I NTENDED TO TAKE THE PLACE OF FUNDING THAT OTHERWI SE WOULD BE APPROPRI ATED FOR OYSTER REPL ETION PROJECTS. SECTION 2. AND BE IT FURTHER ENACTED, That: (a) Subject to subsection (b) of this section, the Department of the Environment shall prioritize a supplemental environmental project involving oyster repletion in natural oyster bars in the county where the underlying water pollution violation occurred with input from the county oyster committee for a party who is in violation of an effluent limitation or unpermitted discharge in the proximity of an oyster population. (b) If there are no suitable natural oyster bars for repletion in the county where the violation occurred, the natural oyster bar repletion project shall be carried out in an adjacent county. Ch. 412 2022 LAWS OF MARYLAND – 6 – SECTION 3. AND BE IT FURTHER ENACTED, That Section 1 of this Act shall take effect October 1, 2022, contingent on the taking effect of Chapter ____ (S.B. 90/H.B. 595) of the Acts of the General Assembly of 2022, and if Chapter ____ (S.B. 90/H.B. 595) does not become effective, Section 1 of this Act, with no further action required by the General Assembly, shall be null and void. SECTION 2. 4. AND BE IT FURTHER ENACTED, That , except as provided in Section 3 of this Act, this Act shall take effect October 1, 2022. Approved by the Governor, May 16, 2022.