MD
Maryland House Bill HB653

Maryland 2022 Regular Session

Maryland House Bill HB653 Compare Versions

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1- LAWRENCE J. HOGAN, JR., Governor Ch. 237
2-
3-– 1 –
4-Chapter 237
5-(House Bill 653)
6-
7-AN ACT concerning
8-
9-Conservation Finance Act
10-
11-FOR the purpose of providing that the Department of Agriculture, the Department of
12-Natural Resources, and the Maryland Environmental Trust must allow participants
13-in certain programs to participate in and receive compensation from certain markets,
14-credits, or programs under certain circumstances; authorizing the Department of
15-Agriculture and the Department of Natural Resources to enter into certain
16-partnerships for certain purposes; altering the duties of the Commission on
17-Environmental Justice and Sustainable Communities; authorizing the Department
18-of the Environment to take certain actions with respect to certain water
19-infrastructure assets that are priorities for improving fish passage or for other
20-environmental benefits or for installation of certain small hydroelectric power plant
21-capacity; requiring the Department of the Environment to provide a certain notice
22-to the Maryland Industrial Development Financing Authority under certain
23-circumstances; establishing that it is the policy of the State that the maintenance
24-and repair of certain source watersheds is eligible for certain financial assistance;
25-expanding the purposes for which amounts in the Maryland Water Quality Revolving
26-Loan Fund may be used; altering the terms and authorized uses of the Maryland
27-Drinking Water Revolving Loan Fund; altering the name of the Maryland Water
28-Quality Financing Administration to be the Maryland Water Infrastructure
29-Financing Administration; requiring the Maryland Water Infrastructure Financing
30-Administration to prioritize certain opportunities in creating certain intended use
31-plans; requiring the Maryland Water Infrastructure Financing Administration to
32-establish certain technical assistance subaccounts within the Maryland Water
33-Quality Revolving Loan Fund and the Maryland Drinking Water Revolving Loan
34-Fund for certain purposes; requiring certain financial incentives developed by the
35-State to include allowing landowners to use forests located on State lands for certain
36-purposes; authorizing a certain easement to allow for the potential of economic
37-return from certain uses under certain circumstances; authorizing the Secretary of
38-Natural Resources to purchase certain environmental outcomes from certain projects
39-that are located in the Susquehanna River watershed under certain circumstances;
40-requiring a certain final work and expenditure plan to be informed by a certain
41-analysis beginning with the plan prepared for a certain fiscal year; altering the
42-purposes for which the Chesapeake and Atlantic Coastal Bays 2010 Trust Fund may
43-be used; altering the factors that the BayStat Program must encourage and consider
44-in evaluating certain Trust Fund applications; requiring the BayStat Program
45-Scientific Advisory Panel to analyze and compare certain distributions and
46-strategies and quantify the relative effectiveness of certain distributions and
47-strategies; authorizing the BayStat Subcabinet agencies to maintain a certain
48-amount from the Trust Fund for certain purposes; providing that the use of
49-pay–for–success contracts by the Department of Natural Resources is subject to Ch. 237 2022 LAWS OF MARYLAND
50-
51-– 2 –
52-certain provisions of State procurement law; authorizing the use of pay–for–success
53-contracting at the procurement officer’s discretion; authorizing a unit to enter into a
54-pay–for–success contract only under certain circumstances; authorizing certain
55-units to enter into pay–for–success contracts with certain aggregators to procure
56-certain environmental outcomes projects or already certified environmental
57-outcomes; requiring a certain pay–for–success contract to include certain plans,
58-statements, requirements, provisions, and terms; authorizing a certain
59-pay–for–success contract to include certain provisions; requiring the Maryland
60-Environmental Service to review and evaluate the results of certain pay–for–success
61-contracts with a certain frequency; requiring each unit that enters into a
62-pay–for–success contract to execute an agreement with the Maryland Environmental
63-Service to reimburse the Service for its review under this Act; establishing the Green
64-and Blue Infrastructure Policy Advisory Commission to advise the Secretary of the
65-Environment, the BayStat Subcabinet, and local government officials on
66-implementing green and blue infrastructure projects in the State; establishing the
67-Task Force on State and Local Government Accounting for Natural Capital to assist
68-State and local governments to take advantage of certain accounting standards to
69-obtain certain financing for certain purposes; requiring the Department of Natural
70-Resources to study and assess the potential for digital tools and platforms to
71-contribute to Chesapeake Bay restoration and climate solutions in a certain manner
72-and to report certain findings to the General Assembly on or before a certain date;
73-and generally relating to environmental financing and pay–for–success contracting.
74-
75-BY repealing and reenacting, with amendments,
76- Article – Agriculture
77-Section 8–702
78- Annotated Code of Maryland
79- (2016 Replacement Volume and 2021 Supplement)
80-
81-BY repealing and reenacting, without amendments,
82- Article – Environment
83-Section 1–701(a)(1) and (5) and (b) and 5–509(a)
84- Annotated Code of Maryland
85- (2013 Replacement Volume and 2021 Supplement)
86-
87-BY repealing and reenacting, with amendments,
88- Article – Environment
89-Section 1–701(h) and 5–509(b)
90- Annotated Code of Maryland
91- (2013 Replacement Volume and 2021 Supplement)
92-
93-BY repealing and reenacting, with amendments,
94- Article – Environment
95-Section 9–1601, 9–1602, 9–1604(c), 9–1605(a)(1), (c), and (d), 9–1605.1(c), (d), and
96-(e), and 9–1622 to be under the amended subtitle “Subtitle 16. Maryland
97-Water Infrastructure Financing Administration” LAWRENCE J. HOGAN, JR., Governor Ch. 237
98-
99-– 3 –
100- Annotated Code of Maryland
101- (2014 Replacement Volume and 2021 Supplement)
102-
103-BY repealing and reenacting, without amendments,
104- Article – Environment
105-Section 9–1605.1(a)(1)
106- Annotated Code of Maryland
107- (2014 Replacement Volume and 2021 Supplement)
108-
109-BY adding to
110- Article – Environment
111-Section 9–1605(f), 9–1605.1(e) and 9–1617.2
112- Annotated Code of Maryland
113- (2014 Replacement Volume and 2021 Supplement)
114-
115-BY adding to
116- Article – Natural Resources
117-Section 1–110 and 5–9A–05(p)
118- Annotated Code of Maryland
119- (2018 Replacement Volume and 2021 Supplement)
120-
121-BY repealing and reenacting, without amendments,
122- Article – Natural Resources
123- Section 3–103(a)
124- Annotated Code of Maryland
125- (2018 Replacement Volume and 2021 Supplement)
126-
127-BY repealing and reenacting, with amendments,
128- Article – Natural Resources
129-Section 3–201 and 5–102(b) 3–103(g), 3–201, and 5–102(b)
130- Annotated Code of Maryland
131- (2018 Replacement Volume and 2021 Supplement)
132-
133-BY adding to
134- Article – Natural Resources
135-Section 8–203.1 and 8–207
136- Annotated Code of Maryland
137- (2012 Replacement Volume and 2021 Supplement)
138-
139-BY repealing and reenacting, with amendments,
140- Article – Natural Resources
141-Section 8–2A–01, 8–2A–03, and 8–2A–04
142- Annotated Code of Maryland
143- (2012 Replacement Volume and 2021 Supplement)
144-
145-BY repealing and reenacting, without amendments, Ch. 237 2022 LAWS OF MARYLAND
146-
147-– 4 –
148- Article – State Finance and Procurement
149-Section 10A–101(a)
150- Annotated Code of Maryland
151- (2021 Replacement Volume)
152-
153-BY repealing and reenacting, with amendments,
154- Article – State Finance and Procurement
155-Section 10A–101(d), 13–101, and 13–102
156- Annotated Code of Maryland
157- (2021 Replacement Volume)
158-
159-BY adding to
160- Article – State Finance and Procurement
161-Section 13–112.1
162- Annotated Code of Maryland
163- (2021 Replacement Volume)
164-
165-BY adding to
166- Article – Environment
167-Section 5–1401 through 5–1403 to be under the new subtitle “Subtitle 14. Green and
168-Blue Infrastructure Policy Advisory Commission”
169- Annotated Code of Maryland
170- (2013 Replacement Volume and 2021 Supplement)
171-
172- SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND,
173-That the Laws of Maryland read as follows:
174-
175-Article – Agriculture
176-
177-8–702.
178-
179- (a) (1) The General Assembly finds and declares that agriculturally related
180-nonpoint sources of water pollution may potentially contribute to the degradation of the
181-water resources of this State and that prevention and control efforts have been hampered
182-because of the cost and lack of income producing potential in many agricultural practices
183-designed to protect water quality.
184-
185- (2) To assist in the implementation of agricultural practices which
186-minimize water pollution from erosion, animal wastes, nutrients, and agricultural
187-chemicals, a cost sharing program between the State and eligible applicants is established
188-for the public benefit.
189-
190- (b) The cost sharing program established under this subtitle shall be
191-implemented in conjunction with the “Agricultural Water Quality Management Program
192-for the Control of Sediment and Animal Wastes” of the State Soil Conservation Committee
193-as well as other State and local programs to control water pollution. LAWRENCE J. HOGAN, JR., Governor Ch. 237
194-
195-– 5 –
196-
197- (C) THE DEPARTMENT MAY NOT PR OHIBIT OR LIMIT , THROUGH ANY
198-COST–SHARE AGREEMENT , A PARTICIPANT IN THE COST SHARING PROGRAM
199-ESTABLISHED UNDER TH IS SUBTITLE FROM PAR TICIPATING IN AND RE CEIVING
200-COMPENSATION FROM GR EENHOUSE GAS MARKETS , CARBON CREDITS , OR SOIL
201-CARBON PROGRAMS , IF THE PURPOSE OF TH E COMPENSATION IS TO ACHIEVE
202-ADDITIONAL CONSERVAT ION BENEFITS THAT AR E CONSISTENT WIT H THE STATE’S
203-CHESAPEAKE BAY CONSERVATION GOAL S.
204-
205- (D) THE DEPARTMENT MAY ENTER INTO PARTNERSHIPS , THROUGH
206-FORMAL CONTRACTS OR MEMORANDA OF UNDERST ANDING, WITH PRIVATE SECTOR
207-ORGANIZATIONS WITH E XPERIENCE IN CARBON OFFSET MARKETS OR PR OGRAMS IN
208-ORDER TO:
209-
210- (1) CREATE STATEWIDE OR R EGIONAL PARTNERSHIPS FOR THE
211-PURPOSE OF MINIMIZIN G THE COSTS AND MAXI MIZING THE BENEFITS OF
212-VOLUNTARY ENROLLMENT OF FARMLAND IN CARBO N OFFSET MARKET PROG RAMS;
213-AND
214-
215- (2) ASSIST PRIVATE LANDOW NERS WITH THE AGGREG ATION OF
216-PROJECTS TO MAKE THE PROJECTS MORE SALEABLE IN CAR BON OFFSET MARKET
217-PROGRAMS.
218-
219-Article – Environment
220-
221-1–701.
222-
223- (a) (1) In this section the following words have the meanings indicated.
224-
225- (5) “Environmental justice” means equal protection from environmental
226-and public health hazards for all people regardless of race, income, culture, and social
227-status.
228-
229- (b) There is a Commission on Environmental Justice and Sustainable
230-Communities.
231-
232- (h) The Commission shall:
233-
234- (1) Advise State government agencies on environmental justice and related
235-community issues;
236-
237- (2) Use data sets and mapping tools to review and analyze the impact of
238-current State and local laws, permits, actions, and policies on the issue of environmental
239-justice and sustainable communities, including cumulative impacts, effects, and exposure;
240- Ch. 237 2022 LAWS OF MARYLAND
241-
242-– 6 –
243- (3) Assess the adequacy of State and local government laws to address the
244-issue of environmental justice and sustainable communities, including assessing
245-compliance with Title VI of the federal Civil Rights Act of 1964;
246-
247- (4) Coordinate with the Children’s Environmental Health and Protection
248-Advisory Council, the Maryland Office of Minority Health and Health Disparities, and the
249-Commission on Climate Change on recommendations related to environmental justice and
250-sustainable communities; [and]
251-
252- (5) Recommend options to the Governor and the General Assembly for
253-addressing issues, concerns, or problems related to environmental justice that surface after
254-reviewing State laws and policies, including prioritizing areas of the State that need
255-immediate attention; AND
256-
257- (6) RECOMMEND OPTIONS TO THE SECRETARY FOR ENSURIN G THAT
258-THE DEPARTMENT IS MAKING PROGRESS IN ADVANCIN G THE HUMAN RIGHT TO
259-SAFE, CLEAN, AFFORDABLE , AND ACCESSIBLE WATER FOR CONSUMPTION ,
260-COOKING, SANITATION, HEALTH, AND RECREATION PURPOSES .
261-
262-5–509.
263-
264- (a) (1) In this section the following words have the meanings indicated.
265-
266- (2) “Asset owner” means the owner or person having control of a water
267-infrastructure asset.
268-
269- (3) “Association” means:
270-
271- (i) A homeowners association, as defined in § 11B–101 of the Real
272-Property Article;
273-
274- (ii) A council of unit owners, as defined in § 11–101 of the Real
275-Property Article; or
276-
277- (iii) Any other entity owning or controlling a water infrastructure
278-asset, the owners or members of which are owners of property adjacent to or benefited by
279-the water infrastructure asset.
280-
281- (4) “Association member” means an owner or a member of an association.
282-
283- (5) “Water infrastructure asset” means a reservoir, a dam, or any other
284-waterway construction.
285-
286- (b) (1) On complaint or the Department’s own initiative, the Department may
287-investigate or examine any water infrastructure asset.
288- LAWRENCE J. HOGAN, JR., Governor Ch. 237
289-
290-– 7 –
291- (2) If the Department determines that the water infrastructure asset is
292-unsafe, needs repair, or should be removed because the water infrastructure asset is unsafe
293-and not repairable, the Department shall notify the asset owner in writing to repair or
294-remove the water infrastructure asset, as the situation warrants.
295-
296- (3) The repair or removal work shall be completed within a reasonable
297-time, which time shall be prescribed in the Department’s notice.
298-
299- (4) (I) THIS PARAGRAPH APPLIE S TO A WATER INFRAST RUCTURE
300-ASSET THAT THE DEPARTMENT DETERMINES MEETS THE CRITERIA S PECIFIED IN
301-PARAGRAPH (2) OF THIS SUBSECTION .
302-
303- (II) IF THE DEPARTMENT DETERMINES THAT CHANGES TO THE
304-WATER INFRASTRUCTURE ASSET, INCLUDING REMOVAL OF THE ASSET, ARE A
305-PRIORITY FOR IMPROVI NG FISH PASSAGE OR F OR OTHER ENVIRONMENT AL
306-BENEFITS, THE DEPARTMENT :
307-
308- 1. MAY PARTNER WITH THE ASSET OWNER AND AN
309-ORGANIZATION THAT PROVI DES RESOURCES AND EX PERTISE TO PLAN , DESIGN, OR
310-FINANCE CHANGES TO W ATER INFRASTRUCTURE ASSETS FOR THE PURPO SE OF
311-REPAIRING, REMOVING, OR RETROFITTING THE ASSET IN A MANNER CO NSISTENT
312-WITH THE DEPARTMENT ’S OBJECTIVES; OR
313-
314- 2. SHALL PRIORITIZE THE USE OF ENVIRONMENTAL
315-OUTCOMES, AS DEFINED IN § 9–1601 OF THIS ARTICLE, ARISING FROM THE REP AIR,
316-REMOVAL, OR RETROFIT OF THE W ATER INFRASTRUCTURE ASSET IN ANY
317-ENVIRONMENTAL MITIGA TION PROGRAM IDENTIF IED BY THE DEPARTMENT .
318-
319- (III) FOR THE PU RPOSE OF SEEKING FIN ANCIAL ASSISTANCE
320-UNDER TITLE 5, SUBTITLE 4 OF THE ECONOMIC DEVELOPMENT ARTICLE, IF THE
321-DEPARTMENT DETERMINES THAT THE WATER INFRA STRUCTURE ASSET IS N OT A
322-PRIORITY UNDER SUBPA RAGRAPH (II) OF THIS PARAGRAPH BU T IS A PRIORITY FOR
323-INSTALLATION OF LESS THAN 30 MEGAWATTS OF SMALL H YDROELECTRIC POWER
324-PLANT CAPACITY , THE DEPARTMENT SHALL PROV IDE NOTICE TO THE MARYLAND
325-INDUSTRIAL DEVELOPMENT FINANCING AUTHORITY OF:
326-
327- 1. ANY WATER INFRASTRUCT URE ASSET IDENTIFIED AS
328-A PRIORITY FOR INSTA LLATION OF LESS THAN 30 MEGAWATTS OF SMALL
329-HYDROELECTRIC POWER PLANT CAPACITY UNDER THIS PARAGRAPH ; AND
330-
331- 2. THE REPAIR, RETROFIT, OR REMOVAL MEASURES
332-IDENTIFIED FOR THE W ATER INFRASTRUCTURE ASSET IN THE NOTICE PROVIDED
333-UNDER PARAGRAPH (2) OF THIS SUBSECTION .
334- Ch. 237 2022 LAWS OF MARYLAND
335-
336-– 8 –
337-Subtitle 16. Maryland Water [Quality] INFRASTRUCTURE Financing Administration.
338-
339-9–1601.
340-
341- (a) Unless the context clearly requires otherwise, in this subtitle the following
342-words have the meanings indicated.
343-
344- (b) “Administration” means the Maryland Water [Quality] INFRASTRUCTURE
345-Financing Administration.
346-
347- (c) “Bay Restoration Fund” means the Bay Restoration Fund established under §
348-9–1605.2 of this subtitle.
349-
350- (d) “Biological nutrient removal” means a biological nutrient removal technology
351-capable of reducing the nitrogen in wastewater effluent to not more than 8 milligrams per
352-liter, as calculated on an annually averaged basis.
353-
354- (e) (1) “BLUE INFRASTRUCTURE ” MEANS A WATER –BASED NATURAL
355-AREA OR NATURAL FEAT URE, OR A SYSTEM OR FEATU RE DESIGNED TO PROTE CT,
356-MIMIC, OR ENHANCE A NATURAL FUNCTION, THAT:
357-
358- (I) ABSORBS AND FILTERS P OLLUTANTS;
359-
360- (II) ATTENUATES SHORELINE EROSION;
361-
362- (III) PROTECTS COMMUNITIES FROM FLOODING OR STO RM
363-SURGE;
364-
365- (IV) REDUCES EROSION ; OR
366-
367- (V) SEQUESTERS CARBON .
368-
369- (2) “BLUE INFRASTRUCTURE ” INCLUDES:
370-
371- (I) ENHANCED OR RESTORED OYSTER REEFS ;
372-
373- (II) ENHANCED OR RESTORED SEAGRASS BEDS ;
374-
375- (III) SHELLFISH AQUACULTURE PROJECTS;
376-
377- (IV) FLOATING WETLANDS ; AND
378-
379- (V) RESTORED FRESHWATER M USSEL POPULATIONS .
380-
381- (F) “Board” means the Board of Public Works. LAWRENCE J. HOGAN, JR., Governor Ch. 237
382-
383-– 9 –
384-
385- [(f)] (G) “Bond” means a bond, note, or other evidence of obligation of the
386-Administration issued under this subtitle, including a bond or revenue anticipation note,
387-notes in the nature of commercial paper, and refunding bonds.
388-
389- [(g)] (H) “Bond resolution” means the resolution or resolutions of the Director,
390-including the trust agreement, if any, authorizing the issuance of and providing for the
391-terms and conditions applicable to bonds.
392-
393- [(h)] (I) “Borrower” means a local government or a person as defined in §
394-1–101(h) of this article who has received a loan.
395-
396- [(i)] (J) “Chesapeake and Atlantic Coastal Bays Nonpoint Source Fund” means
397-the Chesapeake and Atlantic Coastal Bays Nonpoint Source Fund established under §
398-9–1605.3 of this subtitle.
399-
400- [(j)] (K) “Community sewerage system” means a publicly or privately owned
401-sewerage system that serves at least two lots.
402-
403- [(k)] (L) “Director” means the Director of the Administration.
404-
405- [(l)] (M) “Drinking Water Loan Fund” means the Maryland Drinking Water
406-Revolving Loan Fund.
407-
408- [(m)] (N) “Eligible costs” means the costs identified under § 9–1605.2(i) of this
409-subtitle.
410-
411- [(n)] (O) “Enhanced nutrient removal” means:
412-
413- (1) An enhanced nutrient removal technology that is capable of reducing
414-the nitrogen and phosphorus concentrations in wastewater effluent to concentrations of not
415-more than 3 milligrams per liter total nitrogen and not more than 0.3 milligrams per liter
416-total phosphorus, as calculated on an annually averaged basis; or
417-
418- (2) If the Department has determined that the concentrations under item
419-(1) of this subsection are not practicable for a wastewater facility, the lowest average annual
420-wastewater effluent nitrogen and phosphorus concentrations that the Department
421-determines are practicable for that facility.
422-
423- (P) “ENVIRONMENTAL OUTCOME ” MEANS A COMMODITY TH AT IS MODELED
424-OR DIRECTLY MEASURED AS A SINGLE, QUANTIFIABLE , AND CERTIFIED UNIT O F
425-IMPROVEMENT TO THE E NVIRONMENT , INCLUDING A NUTRIENT OR CARBON
426-BENEFIT.
427- Ch. 237 2022 LAWS OF MARYLAND
428-
429-– 10 –
430- [(o)] (Q) “Equivalent dwelling unit” means a measure of wastewater effluent
431-where one unit is equivalent to:
432-
433- (1) If a local government or billing authority for a wastewater facility has
434-established a definition for “equivalent dwelling unit” on or before January 1, 2004, the
435-average daily flow of wastewater effluent that the local government or billing authority has
436-established to be equivalent to the average daily flow of wastewater effluent discharged by
437-a residential dwelling, which may not exceed 250 gallons; or
438-
439- (2) If a local government or billing authority has not established a
440-definition for “equivalent dwelling unit” on or before January 1, 2004, or if a local
441-government or billing authority has established a definition that exceeds 250 gallons of
442-wastewater effluent per day, an average daily flow of 250 gallons of wastewater effluent.
443-
444- [(p)] (R) “Facility” means a wastewater facility or all or a portion of a water
445-supply system as defined in § 9–201(u) of this title.
446-
447- [(q)] (S) “Federal Safe Drinking Water Act” means Title XIV of the Public
448-Health Service Act, P.L. 93–523, as amended, 42 U.S.C. § 300f, et seq., and the rules and
449-regulations promulgated thereunder.
450-
451- [(r)] (T) “Federal Water Pollution Control Act” means the Water Pollution
452-Control Act of 1972, P.L. 92–500, as amended, 33 U.S.C. § 1251, et seq., and rules and
453-regulations promulgated thereunder.
454-
455- [(s)] (U) “Fund” means a fund established by this subtitle, including the Water
456-Quality Fund, the Drinking Water Loan Fund, the Bay Restorat ion Fund, and the
457-Chesapeake and Atlantic Coastal Bays Nonpoint Source Fund.
458-
459- [(t)] (V) “Grant” means a grant from the Administration to a grantee.
460-
461- [(u)] (W) “Grant agreement” means a written agreement between the
462-Administration and a grantee with respect to a grant.
463-
464- [(v)] (X) “Grantee” means the grant recipient.
465-
466- (Y) (1) “GREEN INFRASTRUCTURE ” MEANS A LAND –BASED NATURAL
467-AREA OR NATURAL FEAT URE, OR A SYSTEM OR FEATU RE DESIGNED TO PROTE CT,
468-MIMIC, OR ENHANCE A NATURAL FUNCTION, THAT:
469-
470- (I) ABSORBS AND FILTERS POLLUT ANTS;
471-
472- (II) PROTECTS COMMUNITIES FROM FLOODING OR STO RM
473-SURGE;
474- LAWRENCE J. HOGAN, JR., Governor Ch. 237
475-
476-– 11 –
477- (III) REDUCES EROSION ; OR
478-
479- (IV) SEQUESTERS CARBON .
480-
481- (2) “GREEN INFRASTRUCTURE ” INCLUDES:
482-
483- (I) ENHANCED OR RESTORED NATURAL LANDSCAPE
484-FEATURES, SUCH AS FORESTS, STREAMS, WETLANDS, RIPARIAN BUFFERS ,
485-HEADWATERS , OR FLOODPLAINS ;
486-
487- (II) RAIN GARDENS;
488-
489- (III) PERMEABLE PAVEMENT ;
490-
491- (IV) POCKET PARKS ;
492-
493- (V) BIOSWALES;
494-
495- (VI) GREEN ROOFS;
496-
497- (VII) INFILTRATION PLANTERS ;
498-
499- (VIII) TREE PLANTINGS OR TREE BOXES; AND
500-
501- (IX) RAINWATER HARVESTING .
502-
503- [(w)] (Z) “Lender” has the meaning stated in § 9–1606.1 of this subtitle.
504-
505- [(x)] (AA) “Linked deposit” has the meaning stated in § 9–1606.1 of this subtitle.
506-
507- [(y)] (BB) “Linked deposit loan” has the meaning stated in § 9–1606.1 of this
508-subtitle.
509-
510- [(z)] (CC) “Linked deposit program” has the meaning stated in § 9–1606.1 of this
511-subtitle.
512-
513- [(aa)] (DD) “Loan” means a loan from the Administration to a borrower for the
514-purpose of financing all or a portion of the cost of a wastewater facility, if the loan is from
515-the Water Quality Fund, or water supply system, if the loan is from the Drinking Water
516-Loan Fund.
517-
518- [(bb)] (EE) “Loan agreement” means a written agreement between the
519-Administration and a borrower with respect to a loan.
520- Ch. 237 2022 LAWS OF MARYLAND
521-
522-– 12 –
523- [(cc)] (FF) “Loan obligation” means a bond, note, or other evidence of obligation,
524-including a mortgage, deed of trust, lien, or other security instrument, issued or executed
525-by a borrower to evidence its indebtedness under a loan agreement with respect to a loan.
526-
527- [(dd)] (GG) (1) “Local government” means a county, municipal corporation,
528-sanitary district, or other State or local public entity that has authority to own or operate
529-a facility.
530-
531- (2) “Local government” includes any combination of two or more of the
532-public entities under paragraph (1) of this subsection when acting jointly to construct or
533-operate a facility.
534-
535- [(ee)] (HH) (1) “Person” means an individual, corporation, partnership,
536-association, nonprofit entity, the State, any unit of the State, commission, special taxing
537-district, or the federal government.
538-
539- (2) “Person” does not include a county, municipal corporation, bi–county or
540-multicounty agency under Division II of the Land Use Article or Division II of the Public
541-Utilities Article, housing authority under Division II of the Housing and Community
542-Development Article, school board, community college, or any other unit of a county or
543-municipal corporation, or a local fire department, as defined in § 9–401 of the Public Safety
544-Article.
545-
546- [(ff)] (II) (1) “Residential dwelling” means a room or group of rooms occupied
547-as living quarters by an individual, a single family, or other discrete group of persons with
548-facilities that are used or intended to be used for living, sleeping, cooking, sanitation, and
549-eating, including an apartment unit, condominium unit, cooperative unit, town house unit,
550-mobile home, or house.
551-
552- (2) “Residential dwelling” does not include a hospital, hotel, motel, inn,
553-boarding house, club, dormitory, school, college, or similar seasonal, institutional, or
554-transient facility.
555-
556- [(gg)] (JJ) “Single site” means a discrete grouping of buildings or structures that
557-are located on contiguous or adjacent property and owned by the same user.
558-
559- [(hh)] (KK) (1) “User” means any person discharging wastewater to:
560-
561- (i) A wastewater facility that has a State discharge permit or
562-national pollutant discharge elimination system discharge permit;
563-
564- (ii) An on–site sewage disposal system; or
565-
566- (iii) A sewage holding tank.
567- LAWRENCE J. HOGAN, JR., Governor Ch. 237
568-
569-– 13 –
570- (2) “User” does not include a person whose sole discharge is stormwater
571-under a stormwater permit.
572-
573- [(ii)] (LL) (1) “Wastewater facility” means any equipment, plant, treatment
574-works, structure, machinery, apparatus, interest in land, or any combination of these,
575-which is acquired, used, constructed, or operated:
576-
577- (i) For the storage, collection, treatment, neutralization,
578-stabilization, reduction, recycling, reclamation, separation, or disposal of wastewater;
579-
580- (ii) To improve water conservation, reduce energy consumption, or
581-increase security; or
582-
583- (iii) For the final disposal of residues resulting from the treatment of
584-wastewater.
585-
586- (2) “Wastewater facility” includes:
587-
588- (i) Treatment or disposal plants; outfall sewers, interceptor sewers,
589-and collector sewers; pumping and ventilating stations, facilities, and works; and other real
590-or personal property and appurtenances incident to their development, use, or operation;
591-
592- (ii) Any programs and projects for managing, reducing, treating,
593-recapturing, abating, or controlling nonpoint sources of water pollution, including
594-stormwater or subsurface drainage water; and
595-
596- (iii) Any programs and projects for improving estuarine conservation
597-and management.
598-
599- [(jj)] (MM) “Water Quality Fund” means the Maryland Water Quality Revolving
600-Loan Fund.
601-
602- [(kk)] (NN) “Water supply system” has the meaning stated in § 9–201(u) of this
603-title.
604-
605-9–1602.
606-
607- There is a Maryland Water [Quality] INFRASTRUCTURE Financing Administration
608-in the Department.
609-
610-9–1604.
611-
612- (c) (1) This subsection applies to financial assistance provided by the
613-Administration under:
614-
615- (i) The Water Quality Fund; Ch. 237 2022 LAWS OF MARYLAND
616-
617-– 14 –
618-
619- (ii) The Bay Restoration Fund;
620-
621- (iii) The Biological Nutrient Removal Program; and
622-
623- (iv) The Supplemental Assistance Program.
624-
625- (2) The Administration shall ensure the fair and equitable distribution of
626-financial assistance among wastewater treatment facilities with a design capacity of less
627-than 500,000 gallons per day and wastewater treatment facilities with a design capacity of
628-500,000 gallons or more per day.
629-
630- (3) IT IS THE POLICY OF T HE STATE THAT THE MAINTE NANCE AND
631-REPAIR OF SOURCE WAT ERSHEDS, INCLUDING THE CONSER VATION AND
632-RESTORATION OF FORES TS AND THE INSTA LLATION AND MAINTENA NCE OF BLUE
633-INFRASTRUCTURE OR GR EEN INFRASTRUCTURE T HAT CONTRIBUTES TO I MPROVED
634-WATER QUALITY , IS ELIGIBLE FOR THE SAME FORMS OF FINANC IAL ASSISTANCE AS
635-OTHER WATER COLLECTI ON AND TREATMENT INF RASTRUCTURE .
636-
637-9–1605.
638-
639- (a) (1) (I) There is a Maryland Water Quality Revolving Loan Fund.
640-
641- (II) The Water Quality Fund shall be maintained and administered
642-by the Administration in accordance with the provisions of this subtitle and such rules or
643-program directives as the Secretary or the Board may from time to time prescribe.
644-
645- (c) (1) The Administration may establish accounts and subaccounts within the
646-Water Quality Fund [as may be considered desirable] to:
647-
648- (i) Effectuate the purposes of this subtitle;
649-
650- (ii) Comply with the provisions of any bond resolution;
651-
652- (iii) Meet the requirements of any federal law, or of any federal grant
653-or award to the Water Quality Fund; or
654-
655- (iv) Meet any rules or program directives established by the
656-Secretary or the Board.
657-
658- (2) The accounts and subaccounts established under paragraph (1) of this
659-subsection may include:
660-
661- (i) A federal receipts account;
662- LAWRENCE J. HOGAN, JR., Governor Ch. 237
663-
664-– 15 –
665- (ii) A State receipts account;
666-
667- (iii) A management and administration expense account;
668-
669- (iv) A bond proceeds account;
670-
671- (v) An account to segregate a portion or portions of the revenues or
672-corpus of the Water Quality Fund as security for bonds of the Administration;
673-
674- (vi) A loan repayment account; and
675-
676- (vii) An investment earnings account.
677-
678- (3) (I) THE ADMINISTRATION SHALL ESTABLISH A TECHNICAL
679-ASSISTANCE SUBACCOUN T WITHIN THE WATER QUALITY FUND.
680-
681- (II) FEDERAL FUNDS DEPOSIT ED IN THE WATER QUALITY
682-FUND FOR THE PURPOSE OF PROVIDING TECHNIC AL ASSISTANCE FOR PR OJECTS IN
683-RURAL, SMALL, AND TRIBAL COMMUNITI ES SHALL BE DISTRIBU TED TO THE
684-TECHNICAL ASSISTANCE SUBACCOUNT .
685-
686- (III) THE TECHNICAL ASSISTA NCE SUBACC OUNT MAY BE USED
687-TO PROVIDE FINANCIAL ASSISTANCE TO ENTITI ES SPECIFIED IN SUBP ARAGRAPH
688-(IV) OF THIS PARAGRAPH FO R THE PURPOSE OF PRO VIDING TECHNICAL
689-ASSISTANCE FOR PROJE CTS IN RURAL, SMALL, AND TRIBAL COMMUNITI ES, WITH
690-PRIORITY GIVEN TO EN TITIES PROVIDING TECHNICAL ASSISTANCE FOR PROJECTS
691-IN DISADVANTAGED COM MUNITIES AND COMMUNI TIES DISPROPORTIONAT ELY
692-BURDENED BY ENVIRONM ENTAL HARMS AND RISK S, INCLUDING FINANCIAL
693-ASSISTANCE TO SUPPOR T THE DEVELOPMENT OF :
694-
695- 1. AN APPLICATION FOR FI NANCIAL ASSISTANCE U NDER
696-THE WATER QUALITY FUND; OR
697-
698- 2. A FINANCING PLAN UNDER THE WATER QUALITY
699-FUND.
700-
701- (IV) THE FOLLOWING ENTITIE S ARE ELIGIBLE TO RE CEIVE
702-FINANCIAL ASSISTANCE UNDER THIS PARAGRAPH :
703-
704- 1. A PUBLICLY OWNED TREAT MENT WORKS THAT
705-PRIMARILY SERVES A R URAL, SMALL, OR TRIBAL COMMUNITY ;
706-
707- 2. A STATE, REGIONAL, INTERSTATE, OR MUNICIPAL
708-ENTITY; OR Ch. 237 2022 LAWS OF MARYLAND
709-
710-– 16 –
711-
712- 3. A NONPROFIT ORGANIZATI ON WORKING WITH A
713-RURAL, SMALL, TRIBAL, OR DISADVANTAGED COM MUNITY.
714-
715- (d) Amounts in the Water Quality Fund may be used only:
716-
717- (1) To make loans, on the condition that:
718-
719- (i) The loans are made at or below market interest rates, including
720-interest free loans, at terms not to exceed the lesser of 30 years or the projected useful life
721-of the project;
722-
723- (ii) Annual principal and interest payments will commence not later
724-than 1 year after completion of any wastewater facility and all loans will be fully amortized
725-on the expiration of the term of the loan;
726-
727- (iii) The local government borrower will establish a dedicated source
728-of revenue for repayment of loans;
729-
730- (iv) In the case of a wastewater facility owned by a borrower other
731-than a local government, the borrower will provide adequate security for repayment of
732-loans; and
733-
734- (v) The Water Quality Fund will be credited with all payments of
735-principal and interest on all loans;
736-
737- (2) To buy or refinance debt obligations of local governments at or below
738-market rates, if such debt obligations were incurred after March 7, 1985;
739-
740- (3) To guarantee, or purchase insurance for, bonds, notes, or other
741-evidences of obligation issued by a local government if such action would improve credit
742-market access or reduce interest rates;
743-
744- (4) As a source of revenue or security for the payment of principal and
745-interest on bonds issued by the Administration if the proceeds of the sale of such bonds will
746-be deposited in the Water Quality Fund;
747-
748- (5) To earn interest on Water Quality Fund accounts;
749-
750- (6) To establish a linked deposit program to promote loans for controlling
751-nonpoint sources of pollution and protecting the quality of the waters of the State,
752-INCLUDING LOANS FOR FOREST RESTORATION O R THE CONSERVATION O F FOREST
753-LAND BY FEE OR EASEM ENT;
754- LAWRENCE J. HOGAN, JR., Governor Ch. 237
755-
756-– 17 –
757- (7) TO PROVIDE LOANS FOR THE PROTECTION OF SO URCE WATER
758-AREAS OR CHESAPEAKE AND ATLANTIC COASTAL BAY WATERSHEDS THROUG H
759-PROPERTY ACQUISITION S OR EASEMENTS ;
760-
761- (8) TO ESTABLISH A SPONSO RSHIP PROGRAM THAT A LLOWS A LOCAL
762-GOVERNMENT TO SERVE AS THE PRIMARY BORRO WER AND RECEIVE A LOA N FOR A
763-PUBLICLY OWNED TREAT MENT WORKS PROJECT A T A REDUCED INTEREST RATE IF
764-THE LOAN ALSO INCLUD ES FINANCING FOR A S PONSORED NONPOINT SO URCE
765-PROJECT MANAGED BY A N ORGANIZATION ;
766-
767- (9) TO SUPPORT LONG –TERM OR PERMANENT GR EEN OR BLUE
768-INFRASTRUCTURE PROJECT S:
769-
770- (I) THAT PROVIDE A WATER QUALITY BENEFIT TO
771-MARYLAND’S PORTION OF THE CHESAPEAKE BAY;
772-
773- (II) THAT ARE PROPOSED AND CARRIED OUT BY AN EL IGIBLE
774-REGIONAL OR INTERSTA TE ENTITY IN THE SUSQUEHANNA RIVER WATERSHED ;
775-
776- (III) ABOUT WHICH THE SECRETARY HAS CONSULT ED WITH THE
777-HEAD OF THE ENVIRONM ENTAL AGENCY IN WHIC H THE PROJECT IS LOC ATED; AND
778-
779- (IV) FOR WHICH THE SECRETARY HAS DETERMI NED THE
780-ALLOCATION OF CREDIT S FOR THE CHESAPEAKE BAY TOTAL MAXIMUM DAI LY
781-LOAD’S WATERSHED IMPLEMEN TATION PLANS;
782-
783- (10) TO ESTABLISH MASTER L EASE PURCHASE AGREEM ENTS WITH
784-STATE AGENCIES TO SUP PORT PROJECTS THAT E NHANCE WATER QUALITY ON
785-STATE LANDS;
786-
787- (11) TO SUPPORT MULTIYEAR INITIATIVES AUTHORIZ ED UNDER TITLE
788-8, SUBTITLE 2A OF THE NATURAL RESOURCES ARTICLE THAT ALSO INV OLVE
789-FUNDING FROM :
790-
791- (I) THE CHESAPEAKE AND ATLANTIC COASTAL BAYS 2010
792-TRUST FUND;
793-
794- (II) A HAZARD MITIGATION PR OGRAM UNDER THE MARYLAND
795-EMERGENCY MANAGEMENT AGENCY; OR
796-
797- (III) A CLIMATE RESILIENCE P ROGRAM UNDER THE NATIONAL
798-OCEANIC AND ATMOSPHERIC ADMINISTRATION ;
799- Ch. 237 2022 LAWS OF MARYLAND
800-
801-– 18 –
802- [(7)] (12) For the reasonable costs of administering the Water Quality
803-Fund and conducting activities under Title VI of the Federal Water Pollution Control Act;
804-
805- [(8)] (13) For any other purpose authorized by Title VI of the Federal
806-Water Pollution Control Act or § 302 of the federal Safe Drinking Water Act;
807-
808- [(9)] (14) To provide financial assistance in the form of grants, negative
809-interest loans, forgiveness of principal, subsidized interest rates, and any other form of
810-financial assistance as authorized or required by:
811-
812- (i) The American Recovery and Reinvestment Act of 2009, as may
813-be amended and supplemented;
814-
815- (ii) Title VI of the Federal Water Pollution Control Act;
816-
817- (iii) § 302 of the federal Safe Drinking Water Act; or
818-
819- (iv) Federal appropriations or authorization acts.
820-
821- [(10)] (15) To provide loan guarantees for similar revolving funds
822-established by municipalities or intermunicipal agencies; and
823-
824- [(11)] (16) To serve as guarantee for long–term Pay for Success contracts,
825-green bonds, or environmental impact bonds by any public, private, or nonprofit entity for
826-the purchase of outcomes that provide a water quality benefit.
827-
828- (F) IN CREATING AN INTEND ED USE PLAN FOR THE WATER QUALITY FUND,
829-THE ADMINISTRATION SHALL PRIORITIZE:
830-
831- (1) OPPORTUNITIES TO PROV IDE ASSISTANCE TO DI SADVANTAGED
832-COMMUNITIES OR COMMU NITIES DISPROPORTION ATELY BURDENED BY
833-ENVIRONMENTAL HARMS AND RISKS; AND
834-
835- (2) GREEN AND BLUE INFRAS TRUCTURE, WITH PARTICULAR FOCU S
836-ON NATURAL AREAS OR NATURA L FEATURES.
837-
838-9–1605.1.
839-
840- (a) (1) There is a Maryland Drinking Water Revolving Loan Fund. The
841-Drinking Water Loan Fund shall be maintained and administered by the Administration
842-in accordance with the provisions of this subtitle and such rules or program directives as
843-the Secretary or the Board may from time to time prescribe.
844- LAWRENCE J. HOGAN, JR., Governor Ch. 237
845-
846-– 19 –
847- (c) (1) The Administration may [from time to time] establish accounts and
848-subaccounts within the Drinking Water Loan Fund [as may be deemed desirable] to
849-[effectuate]:
850-
851- (I) EFFECTUATE the purposes of this subtitle[, to comply];
852-
853- (II) COMPLY with the provisions of any bond resolution[, to meet];
854-
855- (III) MEET the requirements of any federal law, or of any federal
856-grant or award to the Drinking Water Loan Fund[, or to meet]; OR
857-
858- (IV) MEET any rules or program directives established by the
859-Secretary or the Board.
860-
861- (2) (I) THE ADMINISTRATION SHALL ESTABLISH A TECHNICAL
862-ASSISTANCE SUBACCOUN T WITHIN THE DRINKING WATER LOAN FUND.
863-
864- (II) FEDERAL FUNDS DEPOSIT ED IN THE DRINKING WATER
865-LOAN FUND FOR THE PURPOSE OF PROVIDING TECHNIC AL ASSISTANCE TO SMA LL
866-DRINKING WATER SYSTE MS, AS DEFINED UNDER THE FEDERAL SAFE DRINKING
867-WATER ACT, SHALL BE DISTRIBUTED TO THE TECHNICAL ASS ISTANCE
868-SUBACCOUNT .
869-
870- (III) THE TECHNICAL ASSISTA NCE SUBACCOUNT MAY B E USED
871-TO PROVIDE FINANCIAL ASSISTANCE TO ENTITI ES SPECIFIED IN SUBP ARAGRAPH
872-(IV) OF THIS PARAGRAPH FO R THE PURPOSE OF PRO VIDING TECHNICAL
873-ASSISTANCE TO SMALL DRINKING WATER SYSTE MS, WITH PRIORITY GIVEN TO
874-ENTITIES PROVIDING T ECHNICAL ASSISTANCE FOR SMALL DRINKING W ATER
875-SYSTEMS IN DISADVANT AGED COMMUNITIES OR COMMUNITIES
876-DISPROPORTIONATELY B URDENED BY ENVIRONME NTAL HARMS AND RISKS ,
877-INCLUDING FINANCIAL ASSISTANCE FOR :
878-
879- 1. ASSESSING RISKS FROM WATER PIPES MADE FRO M
880-LEAD;
881-
882- 2. SUPPORTING THE DEVELO PMENT OF LEAD PIPE
883-INVENTORIES;
884-
885- 3. SUPPORTING THE DEVELO PMENT OF AN
886-APPLICATION FOR FINA NCIAL ASSISTANCE UND ER THE DRINKING WATER LOAN
887-FUND; AND
888-
889- 4. SUPPORTING THE DEVELO PMENT OF A FINANCING
890-PLAN UNDER THE DRINKING WATER LOAN FUND. Ch. 237 2022 LAWS OF MARYLAND
891-
892-– 20 –
893-
894- (IV) THE FOLLOWING ENTITIE S ARE ELIGIBLE TO RE CEIVE
895-FINANCIAL ASSISTANCE UNDER THIS PARAGRAPH :
896-
897- 1. A SMALL DRINKING WATER SYSTEM, AS DEFINED
898-UNDER THE FEDERAL SAFE DRINKING WATER ACT;
899-
900- 2. A MULTIJURISDICTIONAL ENTITY; OR
901-
902- 3. A NONPROFIT ORGANIZATI ON WORKING WITH A
903-RURAL, SMALL, TRIBAL, OR DISADVANTAGED COM MUNITY.
904-
905- (d) Amounts in the Drinking Water Loan Fund may be used only:
906-
907- (1) To make loans at or below market rates on the condition that:
908-
909- (i) The local government borrower will establish a dedicated source
910-of revenue;
911-
912- (ii) In the case of a water supply system owned by a borrower other
913-than a local government, the borrower shall provide adequate security for the repayment
914-of the loan;
915-
916- (iii) The Drinking Water Loan Fund will be credited with all
917-payments of the loan;
918-
919- (iv) The loans are made at terms not to exceed:
920-
921- 1. 30 years; or
922-
923- 2. With respect to disadvantaged communities as defined in
924-the federal Safe Drinking Water Act, the lesser of 40 years after project completion or the
925-design life of the project; and
926-
927- (v) Annual principal and interest payments will commence not later
928-than 18 months after completion of any drinking water facility and all loans will be fully
929-amortized on the expiration of the term of the loan;
930-
931- (2) To buy or refinance debt obligations of local governments issued by a
932-local government for the purposes of financing all or a portion of the cost of a water supply
933-system at or below market rates, if such debt obligations were incurred after July 1, 1993;
934-
935- (3) To guarantee or purchase insurance for bonds, notes, or other evidences
936-of indebtedness issued by a local government for the purposes of financing all or a portion LAWRENCE J. HOGAN, JR., Governor Ch. 237
937-
938-– 21 –
939-of the cost of a water supply system, if such action would improve credit market access or
940-reduce interest rates;
941-
942- (4) As a source of revenue or security for the payment of principal and
943-interest on bonds issued by the Administration if the proceeds of the sale of such bonds will
944-be deposited in the Drinking Water Loan Fund;
945-
946- (5) To earn interest on Drinking Water Loan Fund accounts;
947-
948- (6) For the reasonable costs of administering the Drinking Water Loan
949-Fund and conducting activities under any federal law that may apply to federal deposits to
950-the Drinking Water Loan Fund;
951-
952- (7) To establish a linked deposit program for loans in accordance with this
953-subtitle and the federal Safe Drinking Water Act, INCLUDING LOANS FOR:
954-
955- (I) CONTROLLING NONPOINT SOURCES OF POLLUTION AND
956-PROTECTING THE QUALI TY OF STATE WATERS;
957-
958- (II) PROTECTING OR ACQUIRI NG FORESTS OR WETLAN DS BY
959-FEE OR EASEMENT ; OR
960-
961- (III) RESTORING FORESTS ;
962-
963- (8) For loan subsidies for disadvantaged communities as provided by the
964-federal Safe Drinking Water Act, including but not limited to loan forgiveness, provided
965-that such loan subsidies comply with the limitations and requirements set forth in the
966-federal Safe Drinking Water Act and any federal appropriations or authorization acts;
967-
968- (9) TO ESTABLISH A SPONSO RSHIP PROGRAM THAT A LLOWS A LOCAL
969-GOVERNMENT TO SERVE AS THE PRIMARY BORRO WER AND RECEIVE A LO AN FOR A
970-PUBLICLY OWNED WATER SUPPLY SYSTEM AT A REDUCED INTERES T RATE IF THE
971-LOAN ALSO INCLUDES F INANCING FOR A SPONS ORED NONPOINT SOURCE PROJECT
972-MANAGED BY AN ORGANI ZATION;
973-
974- (10) WITH RESPECT TO ANY F EDERAL FUNDS DEPOSIT ED IN THE
975-DRINKING WATER LOAN FUND, TO PRIORITIZE SUPPOR T FOR LOCAL
976-GOVERNM ENTS, COMMUNITY WATER SYST EMS, AND OTHER ELIGIBLE P ARTNERS BY:
977-
978- (I) SERVING AS A GUARANTE E FOR LONG –TERM
979-PAY–FOR–SUCCESS CONTRACTS FO R THE PURCHASE OF EN VIRONMENTAL
980-OUTCOMES THAT PROVID E WATER QUALITY BENE FITS;
981-
982- (II) SUPPORTING THE DELINE ATION, ASSESSMENT, OR
983-UPDATED ASSESSMENT O F SOURCE WATER PROTE CTION AREAS AND THE Ch. 237 2022 LAWS OF MARYLAND
984-
985-– 22 –
986-IMPLEMENTATION OF WE LL HEAD PROTECTION P ROGRAMS, INCLUDING THROUGH
987-GRANTS AND TECHNICAL ASSISTANCE; OR
988-
989- (III) SUPPORTING LOANS AND LOAN GUARANTEES FOR THE
990-PROTECTION OF SOURCE WATER AREAS OR THE CHESAPEAKE AND ATLANTIC
991-COASTAL BAYS WATERSHEDS THROU GH PROPERTY ACQUISIT IONS OR EASEMENTS
992-FOR THE PURPOSE OF C ONTROLLING NONPOINT SOURCES OF POLLUTION ;
993-
994- (11) TO SUPPORT MULTIYEAR INITIATIVES AUTHORIZ ED UNDER TITLE
995-8, SUBTITLE 2A OF THE NATURAL RESOURCES ARTICLE THAT ALSO INV OLVE
996-FUNDING FROM THE CHESAPEAKE AND ATLANTIC COASTAL BAYS 2010 TRUST
997-FUND;
998-
999- (12) TO PROVIDE FINANCIAL ASSISTANCE TO DISADV ANTAGED
1000-COMMUNITIES AS DEFINED IN THE FEDERAL SAFE DRINKING WATER ACT IN THE
1001-FORM OF PLANNING PHA SE GRANTS OR DESIGN PHASE GRANTS ;
1002-
1003- [(9)] (13) For any other purpose authorized for any federal funds deposited
1004-in the Drinking Water Loan Fund including, without limitation, any purpose authorized by
1005-the federal Safe Drinking Water Act, including source water protection expenditures
1006-eligible for assistance from the Drinking Water Loan Fund; and
1007-
1008- [(10)] (14) To provide financial assistance in the form of grants, negative
1009-interest loans, forgiveness of principal, subsidized interest rates, and any other form of
1010-financial assistance as authorized or required by:
1011-
1012- (i) The American Recovery and Reinvestment Act of 2009, as may
1013-be amended and supplemented;
1014-
1015- (ii) §§ 302 and 1452 of the federal Safe Drinking Water Act;
1016-
1017- (iii) Title VI of the Federal Water Pollution Control Act; or
1018-
1019- (iv) Federal appropriations or authorization acts.
1020-
1021- (E) IN CREATING AN INTEND ED USE PLAN FOR THE DRINKING WATER LOAN
1022-FUND, THE ADMINISTRATION SHALL PRIORITIZ E OPPORTUNITIES TO P ROVIDE
1023-ASSISTANCE TO DISADV ANTAGED COMMUNITIES OR COMMUNITIES
1024-DISPROPORTIONATELY B URDENED BY ENVIRONME NTAL HARMS AND RISKS AND
1025-SUPPORT INNOVATIVE F INANCING PARTNERSHIP S TO ADDRESS ENVIRON MENTAL
1026-JUSTICE ISSUES AS DE FINED IN § 1–701 OF THIS ARTICLE , INCLUDING THROUGH
1027-INVESTMENT IN :
1028- LAWRENCE J. HOGAN, JR., Governor Ch. 237
1029-
1030-– 23 –
1031- (1) WATER INFRASTRUCTURE LOANS DESIGNED TO EN SURE FAIRER
1032-AND MORE JUST OPPORT UNITIES TO IMPROVE C OMMUNITY HEALTH THRO UGH
1033-BETTER WATER SERVICE ;
1034-
1035- (2) MUNICIPAL CONSOLIDATI ON EFFORTS UNDER § 9–707 OF THIS
1036-TITLE;
1037-
1038- (3) TOXIC LEAD SERVICE LI NE REPLACEMENT ; AND
1039-
1040- (4) GREEN INFRASTRUCTURE THAT CONTRIBUTES TO IMPROVED
1041-WATER QUALITY AND RE MEDIATES OR MITIGATE S ENVIRONMENTAL AND HEALTH
1042-HAZARDS IN DISADVANT AGED COMMUNITIES OR CO MMUNITIES
1043-DISPROPORTIONATELY B URDENED BY ENVIRONME NTAL HARMS AND RISKS .
1044-
1045- [(e)] (F) The costs of administering the Drinking Water Loan Fund shall be paid
1046-from federal grants and awards, from bond sale proceeds, and from amounts received from
1047-borrowers pursuant to loan agreements, and may not be paid from any State [moneys]
1048-MONEY appropriated to the Drinking Water Loan Fund, except general funds of the State
1049-used to match federal grants and awards to the Drinking Water Loan Fund.
1050-
1051-9–1617.2.
1052-
1053- ON OR BEFORE NOVEMBER 1 EACH YEAR , BEGINNING IN 2024, THE
1054-ADMINISTRATION SHALL REPORT TO THE GENERAL ASSEMBLY, IN ACCORDANCE
1055-WITH § 2–1257 OF THE STATE GOVERNMENT ARTICLE, ON THE AMOUNTS
1056-ALLOCATED BY TYPE OF ASSISTANCE PROVIDED UNDER THE WATER QUALITY FUND
1057-AND THE DRINKING WATER LOAN FUND TO SUPPORT EACH TYPE OF GREEN AND
1058-BLUE INFRASTRUCTURE .
1059-
1060-9–1622.
1061-
1062- This subtitle may be cited as the Maryland Water [Quality] INFRASTRUCTURE
1063-Financing Administration Act.
1064-
1065-Article – Natural Resources
1066-
1067-1–110.
1068-
1069- (A) THE DEPARTMENT MAY ENTER INTO PARTNERSHIPS , THROUGH
1070-FORMAL CONTRA CTS OR MEMORANDA OF UNDERSTANDING , WITH PRIVATE SECTOR
1071-ORGANIZATIONS WITH E XPERIENCE IN CARBON OFFSET MARKETS OR PR OGRAMS IN
1072-ORDER TO:
1073- Ch. 237 2022 LAWS OF MARYLAND
1074-
1075-– 24 –
1076- (1) CREATE STATEWIDE OR R EGIONAL PARTNERSHIPS FOR THE
1077-PURPOSE OF MINIMIZIN G THE COSTS AND MAXI MIZING THE BENEFITS OF
1078-ENROLLING PRIVATE AND PUBLIC LANDS IN CARB ON OFFSET MARKETS ; AND
1079-
1080- (2) ASSIST PRIVATE LANDOW NERS WITH THE AGGREG ATION OF
1081-PROJECTS TO MAKE THE PROJECTS MORE SALEAB LE IN CARBON OFFSET MARKET
1082-PROGRAMS.
1083-
1084- (B) TO LEARN ABOUT ESTABL ISHING AND VERIFYING CARBON CREDITS , ON
1085-OR BEFORE JULY 1, 2024, THE DEPARTMENT , IN CONSULTATION WITH
1086-APPROPRIATE EXPERTS , SHALL BEGIN IMPLEMEN TATION OF, OR OTHERWISE
1087-SUPPORT:
1088-
1089- (1) AT LEAST ONE CARBON O FFSET PROJECT ON STATE LAND; AND
1090-
1091- (2) AT LEAST ONE CARBON O FFSET PROJECT IN A M ARINE OR
1092-ESTUARINE HABITAT .
1093-
1094-3–103.
1095-
1096- (a) (1) There is a body politic and corporate known as the “Maryland
1097-Environmental Service”.
1098-
1099- (2) The Service is an instrumentality of the State and a public corporation
1100-by that name, style, and title, and the exercise by the Service of the powers conferred by
1101-this subtitle is the performance of an essential governmental function of the State.
1102-
1103- (g) (1) The Service is exempt from the provisions of Subtitles 3, 4, 5, and 7 of
1104-Title 4 of the State Finance and Procurement Article.
1105-
1106- (2) The Service is exempt from the provisions of Division II of the State
1107-Finance and Procurement Article, but is not exempt from Subtitle 3 of Title 14, Subtitle 4
1108-of Title 12, Title 16, and Title 17 of the State Finance and Procurement Article.
1109-
1110- (3) (i) Except as otherwise provided in this paragraph, all
1111-procurements by the Service for materials, equipment, services, or supplies performed or
1112-furnished in connection with the planning, development, design, equipping, construction,
1113-or operation of any project owned or controlled by the Service, shall be awarded in
1114-accordance with rules and regulations adopted pursuant to the Administrative Procedure
1115-Act.
1116-
1117- (ii) The Service may procure materials, equipment, services, or
1118-supplies by utilizing:
1119-
1120- 1. Competitive sealed bids; LAWRENCE J. HOGAN, JR., Governor Ch. 237
1121-
1122-– 25 –
1123-
1124- 2. Competitive sealed proposals;
1125-
1126- 3. Sole source procurement;
1127-
1128- 4. Intergovernmental cooperative purchasing agreements;
1129-
1130- 5. A small procurement process, if the procurement is
1131-estimated by the Service to result in an expenditure of $25,000 or less; [or]
1132-
1133- 6. An emergency procurement process, if the procurement is
1134-necessary to avoid or to mitigate serious damage to public health, safety, or welfare; OR
1135-
1136- 7. PAY–FOR–SUCCESS CONTRACTING UNDER § 13–112.1
1137-OF THE STATE FINANCE AND PROCUREMENT ARTICLE.
1138-
1139- (4) (i) The approval of the Board shall be required on any
1140-nonemergency expenditure that exceeds $200,000.
1141-
1142- (ii) The Service shall notify the Board of any nonemergency
1143-expenditure that exceeds $25,000.
1144-
1145- (5) The Service may adopt rules and regulations to provide a process to
1146-resolve disputes between the Service and its contractors, that may include alternative
1147-dispute resolution by the parties to the dispute.
1148-
1149-3–201.
1150-
1151- (a) (1) There is a Maryland Environmental Trust established to conserve,
1152-improve, stimulate, and perpetuate the aesthetic, natural, health and welfare, scenic, and
1153-cultural qualities of the environment, including, but not limited to land, water, air, wildlife,
1154-scenic qualities, open spaces, buildings or any interest therein, and other appurtenances
1155-pertaining in any way to the State.
1156-
1157- (2) Through educational and other means, the Trust shall encourage and
1158-motivate the populace of the State and others to do so and shall promote continuing interest
1159-in and the study of these matters.
1160-
1161- (3) The purpose of the Trust is of general benefit to the citizens of the State,
1162-and it is charitable in nature.
1163-
1164- (b) The Trust has perpetual existence subject to modification or termination by
1165-the General Assembly if necessary to effectuate its purpose or when and if its substantial
1166-purpose ceases.
1167-
1168- (C) (1) IN THIS SUBSECTION , “ECOSYSTEM SERVICES ” INCLUDES: Ch. 237 2022 LAWS OF MARYLAND
1169-
1170-– 26 –
1171-
1172- (I) CLIMATE RESILIENCE;
1173-
1174- (II) CARBON SEQUESTRATION ;
1175-
1176- (III) THE PROVISION OF WILD LIFE HABITAT;
1177-
1178- (IV) CONTRIBUTIONS TO FORE ST HEALTH; AND
1179-
1180- (V) THE PROTECTION OR RES TORATION OF WETLANDS .
1181-
1182- (2) AN EASEMENT APPROVED BY THE TRUST MAY ALLOW FOR THE
1183-POTENTIAL OF ECONOMIC RETURN FROM THE PROTECTION , MANAGEMENT ,
1184-MAINTENANCE , OR IMPROVEMENT OF EC OSYSTEM SERVICES PRO VIDED BY THE
1185-PROPERTY, SO LONG AS THE TRUST DETERMINES THOSE USES DO NOT IM PAIR OR
1186-INTERFERE WITH THE C ONSERVATION VALUES A ND PURPOSES OF THE E ASEMENT
1187-AND ARE OTHERWISE CONSIS TENT WITH THE TRUST’S POLICIES RELATED T O
1188-ECOSYSTEM SERVICES .
1189-
1190-5–102.
1191-
1192- (b) It is the policy of the State to encourage the retention and sustainable
1193-management of forest lands by:
1194-
1195- (1) Achieving no net loss of forest;
1196-
1197- (2) Affording due consideration to the protection and retention of forests in
1198-the State through existing land conservation programs where they have the highest value
1199-in terms of promoting the State’s compliance with its clean water goals under the 2014
1200-Chesapeake Bay Watershed Agreement and the 2007 Forestry Conservation Initiative;
1201-
1202- (3) Enhancing the retention of privately owned forest lands through
1203-research–based educational outreach efforts to landowners by the State’s forest
1204-conservancy district boards;
1205-
1206- (4) Developing financial incentives to encourage landowners to retain and
1207-manage their forests sustainably and in a manner that is consistent with a forest
1208-stewardship plan, INCLUDING BY ALLOWIN G LANDOWNERS TO USE FORESTS ON
1209-STATE LANDS THAT ARE REFORESTED OR AF FORESTED UNDER SUBTITLE 16 OF
1210-THIS TITLE AFTER JULY 1, 2022, TO SATISFY BUFFER OR INSURANCE PROVISIONS
1211-REQUIRED BY REGISTRI ES OR PROTOCOLS ASSO CIATED WITH PRIVATE FOREST
1212-CARBON CREDIT TRANSA CTIONS;
1213-
1214- (5) Promoting renewable energy policies and markets with increased
1215-emphasis on the use of in–State produced woody biomass; LAWRENCE J. HOGAN, JR., Governor Ch. 237
1216-
1217-– 27 –
1218-
1219- (6) Ensuring dual certification of the State’s forests by the Forest
1220-Stewardship Council and the Sustainable Forestry Initiative;
1221-
1222- (7) Recognizing the importance of:
1223-
1224- (i) A viable forest products industry to the economies of rural
1225-Maryland;
1226-
1227- (ii) Continued development of fiber products; and
1228-
1229- (iii) Maryland’s green infrastructure; and
1230-
1231- (8) Developing and enhancing programs with a sustainable forestry
1232-component, including a forest mitigation banking system, a carbon credit or carbon
1233-sequestration program, a clean water credit trading system, an environmental services
1234-credit trading program, and a renewable energy credit trading system.
1235-
1236-5–9A–05.
1237-
1238- (P) (1) IN THIS SUBSECTION , “ECOSYSTEM SERVICES ” INCLUDES:
1239-
1240- (I) CLIMATE RESILIENCE ;
1241-
1242- (II) CARBON SEQUESTRATION ;
1243-
1244- (III) THE PROVISION OF WILD LIFE HABITAT;
1245-
1246- (IV) CONTRIBUTIONS TO FORE ST HEALTH; AND
1247-
1248- (V) THE PROTECTION OR RES TORATION OF WETLANDS .
1249-
1250- (2) AN EASEMENT ACQUIRED UNDER THIS SUBTITLE MAY ALLOW FOR
1251-THE POTENTIAL OF ECO NOMIC RETURN FROM TH E PROTECTION , MANAGEMENT ,
1252-MAINTENANCE , OR IMPROVEMENT OF EC OSYSTEM SERVICES PRO VIDED BY THE
1253-PROPERTY, SO LONG AS THE DEPARTMENT DETERMINES :
1254-
1255- (I) THOSE USES AFFIRMATIV ELY INCREASE THE
1256-CONSERVATION ATTRIBU TES OF THE PROPERTY BEYOND THE REQUIREME NTS OF
1257-THE EASEMENT ; AND
1258-
1259- (II) ANY CREDITS CREATED I N ACCORDANCE WITH TH IS
1260-SUBSECTION ARE USED ONLY:
1261- Ch. 237 2022 LAWS OF MARYLAND
1262-
1263-– 28 –
1264- 1. TO MITIGATE OFFSITE E NVIRONMENTAL DAMAGE IN
1265-A PRIORITY FUNDING A REA, AS DEFINED IN § 5–7B–02 OF THE STATE FINANCE AND
1266-PROCUREMENT ARTICLE; OR
1267-
1268- 2. IN A MANNER THE DEPARTMENT DETERMINES TO BE
1269-CONSISTENT WITH THE APPLICABLE LOCAL COM PREHENSIVE PLAN AND STATE AND
1270-LOCAL OBJECTIVES FOR LAND PROTECTION .
1271-
1272-8–203.1.
1273-
1274- THE SECRETARY:
1275-
1276- (1) USING ELIGIBLE FUNDIN G SOURCES , MAY PURCHASE
1277-ENVIRONMENTAL OUTCOM ES, AS DEFINED IN § 8–2A–01 OF THIS TITLE, THAT
1278-PROVIDE FOR COST –EFFECTIVE LONG –TERM OR PERMANENT GR EEN OR BLUE
1279-INFRASTRUCTURE PROJE CTS THAT:
1280-
1281- (I) IMPROVE THE WATER QUA LITY OF MARYLAND’S PORTION
1282-OF THE CHESAPEAKE BAY; AND
1283-
1284- (II) ARE LOCATED IN THE SUSQUEHANNA RIVER WATERSHED ;
1285-AND
1286-
1287- (2) SHALL CONSULT WITH TH E SECRETARY OF THE E NVIRONMENTAL
1288-AGENCY OF THE STATE IN WHICH THE PROJECT IS LOCATED TO ENSURE THAT:
1289-
1290- (I) THE STATE SUPP ORTS THE PROJECT ; AND
1291-
1292- (II) FOR THE PURCHASED ENV IRONMENTAL OUTCOMES , THERE
1293-IS MUTUAL AGREEMENT AS TO THE ALLOCATION OF CREDITS TO THE CHESAPEAKE
1294-BAY TOTAL MAXIMUM DAI LY LOAD’S WATERSHED IMPLEMEN TATION PLANS.
1295-
1296-8–207.
1297-
1298- THE DEPARTMENT MAY NOT PR OHIBIT OR LIMIT, THROUGH ANY CONTRACT ,
1299-EASEMENT, OR AGREEMENT , A PARTICIPANT IN A P ROGRAM ADMINISTERED BY THE
1300-DEPARTMENT FROM PARTI CIPATING IN AND RECE IVING COMPENSATION F ROM
1301-GREENHOUSE GAS MARKE TS, CARBON CREDITS , OR SOIL CARBON P ROGRAMS, IF
1302-THE PURPOSE OF THE C OMPENSATION IS TO AC HIEVE ADDITIONAL
1303-ENVIRONMENTAL OUTCOM ES THAT ARE CONSISTE NT WITH THE STATE’S
1304-CHESAPEAKE BAY CONSERVATION GOAL S.
1305-
1306-8–2A–01.
1307- LAWRENCE J. HOGAN, JR., Governor Ch. 237
1308-
1309-– 29 –
1310- (a) In this subtitle the following words have the meanings indicated.
1311-
1312- (b) “AGGREGATOR” MEANS A PERSON THAT FACILITATES OR COORD INATES
1313-THE ESTABLISHMENT OF PRACTICES OR PROJECT S THAT:
1314-
1315- (1) ARE IMPLEMENTED BY TH E PERSON OR BY OTHER S;
1316-
1317- (2) PRODUCE A QUANTIFIABL E ENVIRONMENTAL OUTC OME;
1318-
1319- (3) ARE REGISTERED BY THE PERSON; AND
1320-
1321- (4) ARE MADE AVAILABLE FO R PURCHASE BY THE STATE.
1322-
1323- (C) “BayStat Program” means the program established under § 8–2A–03 of this
1324-subtitle.
1325-
1326- (D) “ENVIRONMENTAL OUTCOME ” MEANS A COMMODITY TH AT IS MODELED
1327-OR DIRECTLY MEASURED AS A SINGLE, QUANTIFIABLE , AND CERTIFIED UNIT OF
1328-IMPROVEMENT TO THE E NVIRONMENT , INCLUDING A NUTRIENT OR CARBON
1329-BENEFIT.
1330-
1331- (E) “EVALUATOR” MEANS A PERSON OTHER THAN AN AGGREGATOR T HAT
1332-DETERMINES WHETHER E NVIRONMENTAL OUTCOME S HAVE BEEN ACHIEVED BASED
1333-ON DEFINED PERFORMAN CE MEASURES .
1334-
1335- [(c)] (F) (1) “Nonpoint source pollution control project” means a project to
1336-improve water quality by a reduction of nitrogen, phosphorus, or sediment pollution.
1337-
1338- (2) “Nonpoint source pollution control project” includes:
1339-
1340- (i) An agricultural best management implementation practice,
1341-including cover crops, riparian forested buffer, manure processing, grassed waterways,
1342-animal waste storage structures, and livestock fencing;
1343-
1344- (ii) An urban or suburban stormwater practice;
1345-
1346- (iii) A sustainable forest management practice, including a forest
1347-stewardship plan or a nonornamental urban and suburban tree planting project;
1348-
1349- (iv) Stream and wetland restoration;
1350-
1351- (v) Riparian buffer planting;
1352- Ch. 237 2022 LAWS OF MARYLAND
1353-
1354-– 30 –
1355- (vi) A project that demonstrates the effectiveness of an innovative
1356-nonpoint source pollution reduction measure provided that the measure is capable of
1357-integration into existing nonpoint source pollution programs;
1358-
1359- (vii) Technical assistance necessary to implement a nonpoint source
1360-pollution control project;
1361-
1362- (viii) Improvement of a municipal park located on or adjacent to a
1363-waterway, provided that the improvement is limited to state–of–the–art and sustainable
1364-nonpoint source pollution control measures that demonstrably improve water quality by
1365-reducing nitrogen, phosphorus, and sediment pollution; and
1366-
1367- (ix) Strategic monitoring of water quality improvements from
1368-nonpoint source pollution control projects that have been funded, in whole or in part, with
1369-grants from the Trust Fund.
1370-
1371- (G) “QUANTIFICATION PLAN ” MEANS A PLAN IN WHIC H AN AGGREGATOR
1372-DESCRIBES:
1373-
1374- (1) THE METHOD THAT WILL BE USED TO MEASURE O R MODEL
1375-ENVIRONMENTAL OUTCOM ES AND CO–BENEFITS;
1376-
1377- (2) THE COMPLIANCE MONITO RING THAT WILL OCCUR TO ENSURE
1378-THAT THE PROPOSED AC TIONS ARE TAKEN AND MAINTAINED O VER THE LIFE OF THE
1379-PROJECT;
1380-
1381- (3) VERIFICATION STEPS TH AT WILL BE CARRIED O UT BY THE STATE
1382-OR AN EVALUATOR TO C ONFIRM MODEL RESULTS OR ACCURATE MEASUREM ENT OF
1383-ENVIRONMENTAL OUTCOM ES; AND
1384-
1385- (4) THE TIMELINE FOR PROP OSED PAYMENTS UND ER A CONTRACT
1386-WITH THE STATE.
1387-
1388- [(d)] (H) “Trust Fund” means the Chesapeake and Atlantic Coastal Bays 2010
1389-Trust Fund.
1390-
1391- [(e)] (I) “Watershed implementation plan” means a plan to achieve the nutrient
1392-and sediment limits required under the Chesapeake Bay total maximum daily load.
1393-
1394-8–2A–03.
1395-
1396- (a) (1) There is a BayStat Program to:
1397-
1398- (i) Measure and evaluate efforts to restore the Chesapeake and
1399-Atlantic Coastal Bays; and LAWRENCE J. HOGAN, JR., Governor Ch. 237
1400-
1401-– 31 –
1402-
1403- (ii) Administer the Trust Fund.
1404-
1405- (2) The BayStat Subcabinet shall oversee the administration of the
1406-BayStat Program.
1407-
1408- (3) The BayStat Subcabinet is composed of:
1409-
1410- (i) The Secretary of Natural Resources;
1411-
1412- (ii) The Secretary of the Environment;
1413-
1414- (iii) The Secretary of Planning;
1415-
1416- (iv) The Secretary of Agriculture;
1417-
1418- (v) The President of the University of Maryland Center for
1419-Environmental Science;
1420-
1421- (vi) The Dean of the College of Agriculture and Natural Resources at
1422-the University of Maryland, College Park Campus; and
1423-
1424- (vii) The chair of the Critical Area Commission for the Chesapeake
1425-and Atlantic Coastal Bays.
1426-
1427- (b) The BayStat Program shall:
1428-
1429- (1) Provide accurate and timely data to policymakers and the public about
1430-the efficacy and cost–effectiveness of local, State, and federal programs to restore the
1431-Chesapeake and Atlantic Coastal Bays;
1432-
1433- (2) Track and assess the progress of State and federal programs to improve
1434-the health of the Chesapeake and Atlantic Coastal Bays;
1435-
1436- (3) Assess the effectiveness of enforcement programs in curbing pollution
1437-and achieving Chesapeake and Atlantic Coastal Bays restoration goals and institute
1438-actions to improve the effectiveness of enforcement programs;
1439-
1440- (4) Adopt measurable goals for Chesapeake and Atlantic Coastal Bays
1441-restoration;
1442-
1443- (5) Identify new threats to the health of the Chesapeake and Atlantic
1444-Coastal Bays;
1445-
1446- (6) Increase public awareness of, and participation in, efforts to restore the
1447-vitality of the Chesapeake and Atlantic Coastal Bays; and Ch. 237 2022 LAWS OF MARYLAND
1448-
1449-– 32 –
1450-
1451- (7) Direct the administration of the Trust Fund.
1452-
1453- (c) The BayStat Subcabinet shall:
1454-
1455- (1) Report annually to the public regarding:
1456-
1457- (i) The health of the Chesapeake Bay tributary basin;
1458-
1459- (ii) The health of the Atlantic Coastal Bays and their tributaries;
1460-
1461- (iii) The status of local, State, and federal programs to restore the
1462-Chesapeake and Atlantic Coastal Bays; and
1463-
1464- (iv) Estimated nutrient reductions achieved through projects
1465-financed by the Trust Fund; and
1466-
1467- (2) (i) Develop an annual work plan that identifies the planned work to
1468-be funded with money from the Trust Fund for the next fiscal year, including annual
1469-nutrient and sediment reduction targets, performance measures, and accountability
1470-criteria; and
1471-
1472- (ii) Develop an annual expenditure plan that identifies planned
1473-expenditures for the work plan and includes an accounting of all [moneys] MONEY
1474-distributed from the Trust Fund in the previous fiscal year.
1475-
1476- (d) The Governor shall submit the annual work and expenditure plans to the
1477-General Assembly as part of the annual budget submission.
1478-
1479- (e) (1) On an annual basis the BayStat Subcabinet shall prepare a final work
1480-and expenditure plan based on the budget approved by the General Assembly.
1481-
1482- (2) BEGINNING WITH THE PL AN PREPARED FOR FISC AL YEAR 2024,
1483-THE PLAN SHALL BE IN FORMED BY THE ANALYS IS CARRIED OUT BY THE BAYSTAT
1484-PROGRAM SCIENTIFIC ADVISORY PANEL UNDER § 8–2A–04(G)(4)(VII) OF THIS
1485-SUBTITLE.
1486-
1487-8–2A–04.
1488-
1489- (a) The BayStat Program shall direct the administration of the Trust Fund in
1490-accordance with this section.
1491-
1492- (b) (1) The BayStat Program shall implement nonpoint source pollution
1493-reduction measures to:
1494- LAWRENCE J. HOGAN, JR., Governor Ch. 237
1495-
1496-– 33 –
1497- (i) Support State and local watershed implementation plans by
1498-targeting limited financial resources on the most effective nonpoint source pollution control
1499-projects; and
1500-
1501- (ii) Improve the health of the Atlantic Coastal Bays and their
1502-tributaries by targeting funds, geographically and by practice, to proven, scientifically
1503-based projects that provide the most cost–effective and measurable water quality benefits
1504-to the Atlantic Coastal Bays and their tributaries.
1505-
1506- (2) To the maximum extent practicable, the BayStat Program shall
1507-distribute the Trust Fund [moneys] MONEY on a competitive basis.
1508-
1509- (c) (1) The BayStat Program shall distribute funds from the Trust Fund to the
1510-BayStat Subcabinet agencies in accordance with the final work and expenditure plans.
1511-
1512- (2) The BayStat Subcabinet agencies shall administer the funds in
1513-accordance with the final work and expenditure plans, including the distribution of funds:
1514-
1515- (i) Through grants to:
1516-
1517- 1. Counties;
1518-
1519- 2. Bicounty agencies;
1520-
1521- 3. Municipalities;
1522-
1523- 4. Forest conservancy district boards;
1524-
1525- 5. Soil conservation districts;
1526-
1527- 6. Academic institutions; and
1528-
1529- 7. Nonprofit organizations having a demonstrated ability to
1530-implement nonpoint source pollution control projects;
1531-
1532- (ii) To the Chesapeake and Atlantic Coastal Bays Nonpoint Source
1533-Fund established under § 9–1605.3 of the Environment Article;
1534-
1535- (iii) To the Maryland Agricultural Cost–Share Program established
1536-under Title 8, Subtitle 7 of the Agriculture Article for nonpoint source pollution control
1537-projects;
1538-
1539- (iv) To the Green Shores Program established under § 5–429 of this
1540-article; [and]
1541- Ch. 237 2022 LAWS OF MARYLAND
1542-
1543-– 34 –
1544- (v) To the Mel Noland Woodland Incentives Fund established under
1545-§ 5–307 of this article; AND
1546-
1547- (VI) SUBJECT TO PARAGRAPH (4) OF THIS SUBSECTION ,
1548-THROUGH THE PROCUREM ENT OF NUTRIENT – OR SEDIMENT –RELATED
1549-ENVIRONMENTAL OUTCOM ES UNDER A PAY –FOR–SUCCESS CONTRACT OR ANY
1550-OTHER PROCUREMENT ME THOD AUTHORIZED UNDE R DIVISION II OF THE STATE
1551-FINANCE AND PROCUREMENT ARTICLE.
1552-
1553- (3) [(i)] The BayStat Program shall [develop]:
1554-
1555- (I) DEVELOP solicitations, guidelines, and applications for Trust
1556-Fund grants AND CONTRACTS that shall include consideration of the extent to which a
1557-proposed project, both geographically and by practice, will deliver the greatest, most
1558-cost–effective, and measurable nonpoint source pollution reduction per Trust Fund
1559-dollar[.]; AND
1560-
1561- (ii) [The BayStat Program shall] IN EVALUATING TRUST FUND
1562-APPLICATIONS, encourage and consider [multi–year]:
1563-
1564- 1. MULTI–YEAR, multi–partner proposals, local match or
1565-cost–share agreements, or similar actions proposed by [a grant] AN applicant [in
1566-evaluating a Trust Fund grant application];
1567-
1568- 2. PROJECTS THAT , IN ADDITION TO PROVI DING
1569-COST–EFFECTIVE AND MEASUR ABLE NONPOINT SOURCE POLLUTION REDUCTIONS ,
1570-PROVIDE CO–BENEFITS INCLUDING :
1571-
1572- A. THE RESTORATION OF AQ UATIC RESOURCES , SUCH
1573-AS SEAGRASS BEDS OR OYSTER REEFS ;
1574-
1575- B. CLIMATE RESILIENCE ;
1576-
1577- C. CARBON SEQUESTRATION ;
1578-
1579- D. CREATION OF WILDLIFE HABITAT;
1580-
1581- E. LOCAL EMPLOYMENT OPPO RTUNITIES;
1582-
1583- F. THE IMPROVEMENT OR PR OVISION OF
1584-RECREATIONAL OPPORTU NITIES; OR
1585-
1586- G. ENVIRONMENTAL JUSTICE BENEFITS; AND
1587- LAWRENCE J. HOGAN, JR., Governor Ch. 237
1588-
1589-– 35 –
1590- 3. SUBJECT TO PARAGRAPH (5) OF THIS SUBSECTION ,
1591-MULTI–YEAR AGREEMENTS WHER EBY AN AGGREGATOR PR OPOSES TO:
1592-
1593- A. COMBINE FUNDING FROM THE TRUST FUND WITH
1594-REVOLVING LOAN FUNDS AUTHORIZED UNDER §§ 9–1605 AND 9–1605.1 OF THE
1595-ENVIRONMENT ARTICLE, FEDERAL EMERGENCY MANAGEMENT AGENCY HAZARD
1596-MITIGATION SUPPORT , OR PRIVATE SOURCES O F FUNDING; AND
1597-
1598- B. USE THE COMBINED SOUR CES TO FUND AND
1599-ADMINISTER THE IMPLE MENTATION OF MULTIPL E PROJECTS OR PAY FO R
1600-ENVIRONMENTAL OUTCOM ES FROM MULTIPLE COM PLETED PROJECTS .
1601-
1602- (4) (I) FUNDS FROM THE TRUST FUND MAY NOT BE USED TO
1603-PROCURE ENVIRONMENTA L OUTCOMES ACHIEVED BEFORE JANUARY 1, 2021.
1604-
1605- (II) PAYMENT UNDER A PAY –FOR–SUCCESS CONTRACT MAY BE
1606-MADE ONLY AFTER AN E VALUATOR HAS CERTIFI ED TO THE CONTRACTIN G AGENCY
1607-THAT THE ENVIRONMENT AL OUTCOMES HAVE BEE N MEASURED OR MODELED
1608-CONSISTENT WITH AN A PPROVED QUANTIFICATI ON PLAN.
1609-
1610- (5) A BAYSTAT SUBCABINET AGENCY MAY USE FUNDING FROM THE
1611-TRUST FUND FOR A MULTI –YEAR AGREEMENT SPECI FIED UNDER PARAGRAPH
1612-(3)(II)3 OF THIS SUBSECTION O NLY IF THE AGENCY DE TERMINES THAT THE
1613-AGREEMENT WILL :
1614-
1615- (I) PROVIDE COST –EFFECTIVE NUTRIENT A ND SEDIMENT
1616-REDUCTIONS IN A MANN ER CONSISTENT WITH T HE COST–EFFECTIVENESS OF OTH ER
1617-PROJECTS SUPPORTED T HROUGH THE TRUST FUND;
1618-
1619- (II) DELIVER BENEFITS CONS ISTENT WITH THOSE RE QUIRED
1620-BY REVOLVING LOAN FUNDS AUTHORIZE D UNDER §§ 9–1605 AND 9–1605.2 OF THE
1621-ENVIRONMENT ARTICLE;
1622-
1623- (III) REQUIRE NOT MORE THAN 20% OF TOTAL RESOURCES I N
1624-THE TRUST FUND; AND
1625-
1626- (IV) DELIVER CO–BENEFITS AS DESCRIBE D IN PARAGRAPH
1627-(3)(II)2 OF THIS SUBSECTION .
1628-
1629- (d) Any grant OR CONTRACT agreement regarding funds from the Trust Fund
1630-shall:
1631-
1632- (1) Specify the use of the funds provided under the grant, accountability
1633-measures, and performance requirements; Ch. 237 2022 LAWS OF MARYLAND
1634-
1635-– 36 –
1636-
1637- (2) Take into account the need for efficient, multi–year funding and
1638-administration; and
1639-
1640- (3) Include provisions for verification that practices are being
1641-implemented.
1642-
1643- (e) (1) A recipient of funds from the Trust Fund in any fiscal year shall submit
1644-an annual report to the BayStat Program by November 1 of the next fiscal year.
1645-
1646- (2) The report required under paragraph (1) of this subsection shall
1647-include:
1648-
1649- (i) For agencies receiving [moneys] MONEY from the Trust Fund:
1650-
1651- 1. A description of how the funds were allocated, including:
1652-
1653- A. The number and amounts of grants awards; and
1654-
1655- B. Direct expenditures by the agency;
1656-
1657- 2. How funding was leveraged; and
1658-
1659- 3. Estimated or calculated nutrient reductions associated
1660-with Trust Fund expenditures.
1661-
1662- (ii) For recipients of competitive grants OR PAY–FOR–SUCCESS
1663-CONTRACTS from the Trust Fund, a description of funded projects, including:
1664-
1665- 1. Project location;
1666-
1667- 2. Description of practices implemented;
1668-
1669- 3. Timeframes for project completion;
1670-
1671- 4. Estimated or calculated nutrient reductions; and
1672-
1673- 5. Provisions for long–term maintenance of practices.
1674-
1675- (f) Funds from the Trust Fund may not be used to enable an individual cited for
1676-noncompliance with a nonpoint source pollution control law or regulation to achieve
1677-compliance.
1678-
1679- (g) (1) There is a BayStat Program Scientific Advisory Panel.
1680- LAWRENCE J. HOGAN, JR., Governor Ch. 237
1681-
1682-– 37 –
1683- (2) The Governor shall appoint the chair and members of the BayStat
1684-Program Scientific Advisory Panel.
1685-
1686- (3) The BayStat Program Scientific Advisory Panel shall include scientists
1687-and other technical experts with demonstrated expertise in the disciplines related to
1688-protection and restoration of the Chesapeake and Atlantic Coastal Bays.
1689-
1690- (4) The BayStat Program Scientific Advisory Panel shall:
1691-
1692- (i) On or before August 1, annually provide recommendations to the
1693-BayStat Subcabinet on the use of funds of the Trust Fund for the following fiscal year;
1694-
1695- (ii) Monitor the distribution of funds from the Trust Fund;
1696-
1697- (iii) Review the categories of grants AND CONTRACTS made in the
1698-previous year to assess nutrient loading reduction estimates and cost efficiencies and the
1699-effectiveness of any innovative nonpoint source pollution reduction measure;
1700-
1701- (iv) Review the proposed annual work plan and advise the BayStat
1702-Subcabinet of any recommended changes;
1703-
1704- (v) On request by the BayStat Subcabinet, review individual [grant]
1705-FUNDING applications; [and]
1706-
1707- (vi) Annually review any Trust Fund [moneys] MONEY that [are] IS
1708-not distributed on a competitive basis to assess whether [those moneys] THAT MONEY may
1709-be distributed on a competitive basis; AND
1710-
1711- (VII) ON OR BEFORE JANUARY 31, 2023:
1712-
1713- 1. ANALYZE AND COMPARE T HE FUND DISTRIBUTION S
1714-THROUGH THE COMPETIT IVE PROGRAM AND BY E ACH BAYSTAT SUBCABINET
1715-AGENCY FOR FISCAL YE ARS 2012 THROUGH 2023 AND THE STRATEGIES S UPPORTED
1716-BY THOSE DISTRIBUTIO NS;
1717-
1718- 2. QUANTIFY THE RELATIVE EFFECTIVENESS OF EAC H
1719-DISTRIBUTION AND STR ATEGY PER DOLLAR OF STATE FUNDING ; AND
1720-
1721- 3. REPORT TO THE BAYSTAT SUBCABINET, THE
1722-GOVERNOR, AND, IN ACCORDANCE WITH § 2–1257 OF THE STATE GOVERNMENT
1723-ARTICLE, THE GENERAL ASSEMBLY ON THE RESUL TS OF THE ANALYSES R EQUIRED
1724-UNDER ITEMS 1 AND 2 OF THIS ITEM.
1725-
1726- (h) The BayStat Subcabinet agencies may [distribute]:
1727- Ch. 237 2022 LAWS OF MARYLAND
1728-
1729-– 38 –
1730- (1) DISTRIBUTE to an administrative cost account the amount that is
1731-necessary to administer grant programs, not to exceed 1.5% of the allocations to the
1732-BayStat Subcabinet agencies; AND
1733-
1734- (2) MAINTAIN AN AMOUNT , NOT TO EXCEED 2% OF THE TOTAL IN
1735-COMPETITIVE GRANTS A ND CONTRACTS ADMINIS TERED BY THE BAYSTAT
1736-SUBCABINET AGENCIES , FOR THE PURPOSE OF MEETING ADDITIONAL P ROJECT
1737-NEEDS, INCLUDING:
1738-
1739- (I) THE ADAPTIVE MANAGEME NT, MAINTENANCE , OR
1740-CATASTROPHE –INDUCED REPAIR NEEDS OF PROJECTS FUNDED B Y THE GRANTS OR
1741-CONTRACTS; AND
1742-
1743- (II) PAYING FOR QUANTIFIED AND VERIFIED WATER
1744-QUALITY–RELATED ENVIRONMENT AL OUTCOMES THAT EXC EED THE QUANTITY OF
1745-ENVIRONMENTAL OUTCOM ES ANTICIPATED UNDER PARTICULAR GRANTS OR
1746-CONTRACTS .
1747-
1748-Article – State Finance and Procurement
1749-
1750-10A–101.
1751-
1752- (a) In this title the following words have the meanings indicated.
1753-
1754- (d) (1) “Public infrastructure asset” means a capital facility or structure,
1755-including systems and equipment related to the facility or structure intended for public
1756-use.
1757-
1758- (2) “PUBLIC INFRASTRUCTURE ASSET” INCLUDES BLUE
1759-INFRASTRUCTURE AND G REEN INFRASTRUCTURE , AS DEFINED IN § 9–1601 OF THE
1760-ENVIRONMENT ARTICLE.
1761-
1762-13–101.
1763-
1764- (a) In this subtitle the following words have the meanings indicated.
1765-
1766- (b) “Designated procurement unit” means:
1767-
1768- (1) the Department of Budget and Management;
1769-
1770- (2) the Department of General Services;
1771-
1772- (3) the Department of Information Technology; or
1773-
1774- (4) the Department of Transportation. LAWRENCE J. HOGAN, JR., Governor Ch. 237
1775-
1776-– 39 –
1777-
1778- (c) “eMaryland Marketplace” means the Internet–based procurement system
1779-managed by the Department of General Services.
1780-
1781- (d) “Evaluated bid price” means the price of a bid after adjustment in accordance
1782-with objective measurable criteria.
1783-
1784- (e) “Master contracting” means a streamlined procurement method that provides
1785-for the qualification of bidders and offerors for the procurement of services, supplies, or
1786-commodities.
1787-
1788- (f) (1) “Objective measurable criteria” means standards that enable the State
1789-to compare the economy, effectiveness, or value of the subject of the bids.
1790-
1791- (2) “Objective measurable criteria” includes standards of reliability,
1792-operational costs, maintainability, useful life, and residual value.
1793-
1794- (g) “PAY–FOR–SUCCESS CONTRACTING ” MEANS A PERFORMANCE –BASED
1795-PROCUREMENT METHOD T HROUGH WHICH A UNIT CONTRACTS WITH AN
1796-ORGANIZATION TO DELI VER SERVICES OR COMM ODITIES IN EXCHANGE FOR
1797-PAYMENT BASED ON THE ACHIEVEMENT OF OUTCOMES .
1798-
1799- (H) “Person” includes, unless the context requires otherwise:
1800-
1801- (1) the State;
1802-
1803- (2) a county, a municipal corporation, or any other political subdivision;
1804-and
1805-
1806- (3) any unit of the State government or a political subdivision.
1807-
1808- [(h)] (I) “Task order” means a procurement process in which only those vendors
1809-with master contracts may compete to provide the services, supplies, or commodities under
1810-the procurement.
1811-
1812-13–102.
1813-
1814- (a) The following procurement methods are authorized at the procurement
1815-officer’s discretion, where applicable:
1816-
1817- (1) competitive sealed bids under § 13–103 of this subtitle;
1818-
1819- (2) competitive sealed proposals under § 13–104 or § 13–105 of this
1820-subtitle;
1821-
1822- (3) noncompetitive negotiation under § 13–106 of this subtitle; Ch. 237 2022 LAWS OF MARYLAND
1823-
1824-– 40 –
1825-
1826- (4) sole source procurement under § 13–107 of this subtitle;
1827-
1828- (5) emergency or expedited procurement under § 13–108 of this subtitle;
1829-
1830- (6) small procurement under § 13–109 of this subtitle;
1831-
1832- (7) an intergovernmental cooperative purchasing agreement under §
1833-13–110 of this subtitle;
1834-
1835- (8) auction bids under § 13–111 of this subtitle;
1836-
1837- (9) architectural, engineering, and land surveying services qualification
1838-based selection under § 13–112 of this subtitle; [or]
1839-
1840- (10) master contracting under § 13–113 of this subtitle; OR
1841-
1842- (11) PAY–FOR–SUCCESS CONTRACTING UNDER § 13–112.1 OF THIS
1843-SUBTITLE.
1844-
1845- (b) (1) In awarding a procurement contract for human, social, cultural, or
1846-educational service, the preferred method is by competitive sealed proposals under §
1847-13–104 of this subtitle.
1848-
1849- (2) In awarding a procurement contract for a lease of real property, the
1850-preferred method is by competitive sealed proposals under § 13–105 of this subtitle.
1851-
1852- (3) Procurement under an intergovernmental cooperative purchasing
1853-agreement is appropriate in situations where the State is expected to achieve a better price
1854-as the result of economies of scale or to otherwise benefit by purchasing in cooperation with
1855-another governmental entity.
1856-
1857-13–112.1.
1858-
1859- (A) (1) IN THIS SECTION THE FOLLO WING WORDS HAVE THE MEANINGS
1860-INDICATED.
1861-
1862- (2) “AGGREGATOR ” MEANS A PERSON THAT :
1863-
1864- (I) PROVIDES OR CONTRACT S FOR ENVIRONMENTAL
1865-OUTCOMES; OR
1866-
1867- (II) PROVIDES OR RAISES C APITAL TO FINANCE DE LIVERY OF
1868-ENVIRONMENTAL OUTCOM ES.
1869- LAWRENCE J. HOGAN, JR., Governor Ch. 237
1870-
1871-– 41 –
1872- (3) “ENVIRONMENTAL OUTCOME ” MEANS A COMMODITY TH AT IS
1873-MODELED OR DIRECTLY MEASURED AS A SINGLE , QUANTIFIABLE , AND CERTIFIED
1874-UNIT OF IMPROVEMENT TO THE ENVIRONMENT , INCLUDING A NUTRIENT OR
1875-CARBON BENEFIT .
1876-
1877- (4) “ENVIRONMENTAL OUTCOME S PROJECT” MEANS A PROJECT
1878-DESIGNED TO SECURE E NVIRONMENTAL OUTCOME S.
1879-
1880- (5) “EVALUATOR” MEANS A PERSON OTHER THAN AN AGGREGATOR
1881-THAT DETERMINES WHET HER ENVIRONMENTAL OU TCOMES HAVE BEEN ACH IEVED
1882-BASED ON DEFINED PER FORMANCE MEASURES .
1883-
1884- (6) “OUTCOME PAYMENT ” MEANS THE MONEY PAID WHEN A
1885-PAY–FOR–SUCCESS CONTRACT PER FORMANCE MEASURE IS MET.
1886-
1887- (7) “QUANTIFICATION PLAN ” MEANS A PLAN IN WHIC H AN
1888-AGGREGATOR DESCRIBES :
1889-
1890- (I) THE METHOD THAT WILL BE USED TO MEASURE O R MODEL
1891-ENVIRONMENTAL OUTCOM ES AND CO –BENEFITS UNDER A PAY –FOR–SUCCESS
1892-CONTRACT;
1893-
1894- (II) THE COMPLIANCE MONIT ORING THAT WILL OCCU R TO
1895-ENSURE THAT THE ACTI ONS PROPOSED IN THE PAY–FOR–SUCCESS CONTRACT ARE
1896-TAKEN AND MAINTAINED OVER THE LIFE OF THE PROJECT ;
1897-
1898- (III) VERIFICATION STEPS T HAT WILL BE CARRIED OUT BY THE
1899-STATE TO CONFIRM MODE L RESULTS OR ACCURAT E MEASUREMENT OF
1900-ENVIRONMENTAL OUTCOM ES; AND
1901-
1902- (IV) THE TIMELINE FOR PRO POSED PAYMENTS UNDER THE
1903-PAY–FOR–SUCCESS CONTRACT .
1904-
1905- (B) THE GENERAL ASSEMBLY FINDS AND DE CLARES THAT:
1906-
1907- (1) PAY–FOR–SUCCESS CONTRACTING SHIFTS THE RISK OF
1908-PERFORMANCE TO THE C ONTRACTOR BECAUSE GO VERNMENT PAYMENT IS MADE
1909-ONLY ON ACHIEVEMENT OF OUTCOMES ;
1910-
1911- (2) SOCIAL AND ENVIRONME NTAL IMPACT INVESTMENT IS GR OWING
1912-DRAMATICALLY , AND INVESTORS ARE SE EKING WAYS TO FINANC E AND EXECUTE
1913-PAY–FOR–SUCCESS CONTRACTS IN THE STATE TO EXPAND THE S UCCESS OF
1914-CHESAPEAKE BAY RESTORATION EFFOR TS AND ACHIEVE OTHER PUBLIC
1915-OUTCOMES; AND Ch. 237 2022 LAWS OF MARYLAND
1916-
1917-– 42 –
1918-
1919- (3) IT IS IN THE BEST INTEREST OF THE STATE TO INCLUDE
1920-PAY–FOR–SUCCESS CONTRACTING AS A PROCUREMENT OPT ION, PARTICULARLY
1921-FOR UNITS RESPONSIBL E FOR LAND CONSERVAT ION AND ENVIRONMENTA L
1922-PROTECTION , ENHANCEMENT , AND RESTORATION .
1923-
1924- (C) A UNIT MAY ENTER INTO A PAY–FOR–SUCCESS CONT RACT ONLY IF THE
1925-PROCUREMENT OFFICER OF THE UNIT DETERMIN ES THAT:
1926-
1927- (1) THE CONTRACT WILL PR ODUCE ESTIMATED FINA NCIAL SAVINGS
1928-OR OTHER QUANTIFIABL E PUBLIC BENEFITS FO R THE STATE; AND
1929-
1930- (2) A SUBSTANTIAL PORTIO N OF THE OUTCOME PAY MENT DUE UNDER
1931-THE CONTRA CT WILL BE PAID ONLY AFTER SPECIFIC OUTCO MES HAVE BEEN
1932-DOCUMENTED .
1933-
1934- (D) (1) THIS SUBSECTION APPLI ES ONLY TO PROCUREME NTS BY:
1935-
1936- (I) THE DEPARTMENT OF AGRICULTURE ;
1937-
1938- (II) THE DEPARTMENT OF THE ENVIRONMENT ;
1939-
1940- (III) THE DEPARTMENT OF NATURAL RESOURCES;
1941-
1942- (IV) THE DEPARTMENT OF TRANSPORTATION ;
1943-
1944- (V) THE MARYLAND ENVIRONMENTAL SERVICE; AND
1945-
1946- (VI) THE DEPARTMENT OF GENERAL SERVICES.
1947-
1948- (2) THIS SUBSECTION DOES NOT APPLY TO THE PUR CHASE OF
1949-NITROGEN LOAD REDUCT IONS WITH FUNDS FROM THE CLEAN WATER COMMERCE
1950-ACCOUNT OF THE BAY RESTORATION FUND ESTABLISHED UNDE R § 9–1605.2 OF
1951-THE ENVIRONMENT ARTICLE.
1952-
1953- (3) (I) A UNIT SPECIFIED IN PA RAGRAPH (1) OF THIS SUBSECTION
1954-MAY ENTER INTO A PAY –FOR–SUCCESS CONTRACT WIT H AN AGGREGATOR TO
1955-PROCURE:
1956-
1957- 1. DELIVERY OF AN ENVIRONMENTAL OUTCOMES
1958-PROJECT; OR
1959-
1960- 2. ALREADY CERTIFIED EN VIRONMENTAL OUTCOMES .
1961- LAWRENCE J. HOGAN, JR., Governor Ch. 237
1962-
1963-– 43 –
1964- (II) OTHER STATE AND LOCAL ENTIT IES MAY PARTICIPATE IN A
1965-PAY–FOR–SUCCESS CONTRACT UND ER THIS SUBSECTION I N ACCORDANCE WITH AN
1966-INTERGOVERNMENTAL CO OPERATIVE PURC HASING AGREEMENT UND ER § 13–110
1967-OF THIS SUBTITLE.
1968-
1969- (4) A PAY–FOR–SUCCESS CONTRACT EXE CUTED UNDER THIS
1970-SUBSECTION SHALL INC LUDE:
1971-
1972- (I) A QUANTIFICATION PLA N APPROVED BY THE UN IT;
1973-
1974- (II) A STATEMENT OF THE E NVIRONMENTAL OUTCOME S TO BE
1975-PROCURED UNDER THE CONTRACT AND A D ESCRIPTION OF HOW DE FINED
1976-PERFORMANCE MEASURES WILL DEMONSTRATE PRO GRESS IN ACHIEVING T HESE
1977-OUTCOMES;
1978-
1979- (III) REQUIREMENTS REGARDI NG THE CONTENT AND
1980-FREQUENCY OF PROGRES S REPORTS REGARDING THE ACHIEVEMENT OF
1981-ENVIRONMENTAL OUTCOM ES;
1982-
1983- (IV) A METHODOLOGY FOR CA LCULATING THE AMOUNT AND
1984-TIMING OF OUTCOME PA YMENTS TO AN AGGREGA TOR WHEN THE EVALUAT OR
1985-DETERMINES THAT THE AGGREGATOR HAS ACHIE VED A DEFINED PERFOR MANCE
1986-MEASURE;
1987-
1988- (V) A STATEMENT THAT THE BASIS OF PAYMENT IS THE
1989-DETERMINATI ON OF ACHIEVEMENT OF ENVIRONMENTAL OUTCOM ES BY THE
1990-EVALUATOR AND THAT P AYMENTS FOR THOSE OU TCOMES DO NOT REQUIR E
1991-ITEMIZED BILLING OR COST DOCUMENTATION B Y THE AGGREGATOR ; AND
1992-
1993- (VI) TERMS ADDRESSING :
1994-
1995- 1. COMPLIANCE WITH STATE LAW;
1996-
1997- 2. NONDISCRIMINATION IN EMPLOYMENT ;
1998-
1999- 3. CONTRACTOR INDEMNIFI CATION;
2000-
2001- 4. TERMINATION FOR DEFA ULT; AND
2002-
2003- 5. THE UNIT’S RIGHT TO INSPECT T HE ENVIRONMENTAL
2004-OUTCOMES PROJECT .
2005-
2006- (5) A PAY–FOR–SUCCESS CONTRACT EXE CUTED UNDER THIS
2007-SUBSECTION MAY INCLU DE PROVISIONS REGARDING : Ch. 237 2022 LAWS OF MARYLAND
2008-
2009-– 44 –
2010-
2011- (I) LONG–TERM MAINTENANCE AND MONITORING OF
2012-ENVIRONMENTAL SERVIC ES, INCLUDING THE ESTABL ISHMENT OF A STEWARD SHIP
2013-FUND;
2014-
2015- (II) A REQUIREMENT THAT T HE UNIT HOLD CONTRAC T FUNDS
2016-IN A RESERVE ACCOUNT FOR OUTCOME PAYMENTS ;
2017-
2018- (III) FOR AGRICULTURE SERV ICES, PAYMENT FOR
2019-ACHIEVEMENT OF BASEL INE WATER QUALITY RE QUIREMENTS FOR NITRO GEN,
2020-PHOSPHORUS , OR SEDIMENT; OR
2021-
2022- (IV) TERMINATIONS PRIOR T O THE FIRST PAYMENT UNDER THE
2023-CONTRACT FOR THE PUR POSE OF SELLING ENVI RONMENTAL OUTCOMES W ITHOUT
2024-PENALTY TO ANOTHER E NTITY OR FOR ANY OTH ER REASON.
2025-
2026- (E) (1) (I) BEGINNING JULY 2025 AND EVERY 3 YEARS THEREAFTER ,
2027-THE MARYLAND ENVIRONMENTAL SERVICE SHALL REVIEW AND EVALUATE THE
2028-RESULTS OF ALL PAY –FOR–SUCCESS CONTRACTS CO MPLETED UNDER THIS S ECTION
2029-FOR THE PREVIOUS 3 FISCAL YEARS.
2030-
2031- (II) THE FIRST REVIEW COND UCTED UNDER SUBPARAG RAPH (I)
2032-OF THIS PARAGRAPH SH ALL INCLUDE A REVIEW OF ALL PAY –FOR–SUCCESS
2033-CONTRACTS COMPLETED UNDER THIS SECTION B ETWEEN JULY 1, 2022, AND JUNE
2034-30, 2025.
2035-
2036- (2) THE REVIEW CONDUCTED UNDER PARA GRAPH (1) OF THIS
2037-SUBSECTION SHALL INC LUDE:
2038-
2039- (I) THE COST OF EACH PRO JECT PERFORMED UNDER A
2040-CONTRACT;
2041-
2042- (II) THE LENGTH OF TIME T AKEN TO COMPLETE THE PROJECT,
2043-FROM THE DATE OF NOT ICE TO PROCEED UNTIL COMPLETION ;
2044-
2045- (III) THE AVERA GE COST AND PROJECT DURATION FOR EACH
2046-PROJECT TYPE ; AND
2047-
2048- (IV) WHETHER EACH PROJECT MET THE TERMS OF ITS
2049-CONTRACT.
2050-
2051- (3) EACH UNIT THAT ENTERS INTO A PAY–FOR–SUCCESS CONTRACT
2052-UNDER THIS SECTION S HALL EXECUTE AN AGRE EMENT WITH THE MARYLAND LAWRENCE J. HOGAN, JR., Governor Ch. 237
2053-
2054-– 45 –
2055-ENVIRONMENTAL SERVICE TO REIMBURSE THE SERVICE FOR EACH OF T HE UNIT’S
2056-COMPLETED CONTRACTS THE SERVICE REVIEWS UNDER THIS SECTION.
2057-
2058- (4) THE MARYLAND ENVIRONMENTAL SERVICE SHALL PROVIDE
2059-COPIES OF EACH REVIE W CONDUCTED UNDER TH IS SUBSECTION TO :
2060-
2061- (I) EACH UNIT FOR WHIC H THE SERVICE REVIEWED AND
2062-EVALUATED A CONTRACT ; AND
2063-
2064- (II) IN ACCORDANCE WITH § 2–1257 OF THE STATE
2065-GOVERNMENT ARTICLE, THE SENATE EDUCATION, HEALTH, AND ENVIRONMENTAL
2066-AFFAIRS COMMITTEE, THE SENATE BUDGET AND TAXATION COMMITTEE, THE
2067-HOUSE ENVIRONMENT AN D TRANSPORTATION COMMITTEE, AND THE HOUSE
2068-APPROPRIATIONS COMMITTEE.
2069-
2070- SECTION 2. AND BE IT FURTHER ENACTED, That the Laws of Maryland read
2071-as follows:
2072-
2073-Article – Environment
2074-
2075-SUBTITLE 14. GREEN AND BLUE INFRASTRUCTURE POLICY ADVISORY
2076-COMMISSION.
2077-
2078-5–1401.
2079-
2080- (A) IN THIS SUBTITLE THE FOLLOWING WORDS HAVE THE MEANINGS
2081-INDICATED.
2082-
2083- (B) “BLUE INFRASTRUCTURE ” HAS THE MEANING STAT ED IN § 9–1601 OF
2084-THIS ARTICLE.
2085-
2086- (C) “COMMISSION” MEANS THE GREEN AND BLUE INFRASTRUCTURE
2087-POLICY ADVISORY COMMISSION.
2088-
2089- (D) “GREEN INFRASTRUCTURE ” HAS THE MEANING STAT ED IN § 9–1601 OF
2090-THIS ARTICLE.
2091-
2092-5–1402.
2093-
2094- (A) THERE IS A GREEN AND BLUE INFRASTRUCTURE POLICY ADVISORY
2095-COMMISSION.
2096-
2097- (B) THE PURPOSE OF THE COMMISSION IS TO ADVI SE THE SECRETARY, THE
2098-BAYSTAT SUBCABINET, AND LOCAL GOVE RNMENT OFFICIALS ON WAYS TO Ch. 237 2022 LAWS OF MARYLAND
2099-
2100-– 46 –
2101-FACILITATE AND ACCEL ERATE THE SCALE AND PACE OF IMPLEMENTATI ON OF
2102-GREEN AND BLUE INFRA STRUCTURE PROJECTS I N THE STATE, INCLUDING
2103-PROJECTS DESIGNED TO :
2104-
2105- (1) REDUCE NUTRIENT AND S EDIMENT LOADS ENTERI NG THE
2106-CHESAPEAKE BAY;
2107-
2108- (2) SEQUESTER NUTRIENTS A LREADY IN THE CHESAPEAKE BAY;
2109-
2110- (3) IMPROVE CLIMATE RESIL IENCE;
2111-
2112- (4) SEQUESTER CARBON ;
2113-
2114- (5) PROTECT AND RESTORE I MPORTANT TERRESTRIAL OR AQUATIC
2115-HABITATS;
2116-
2117- (6) RESTORE STREAMS OR WE TLANDS;
2118-
2119- (7) BUILD LIVING SHORELIN ES;
2120-
2121- (8) AUGMENT OR RESTORE SHELLFISH POPULATION S; OR
2122-
2123- (9) RESTORE FOREST OR AGR ICULTURAL LANDS .
2124-
2125- (C) THE COMMISSION CONSISTS O F THE FOLLOWING MEMB ERS,
2126-APPOINTED BY THE SECRETARY IN CONSULTA TION WITH THE OTHER MEMBERS OF
2127-THE BAYSTAT SUBCABINET:
2128-
2129- (1) FOUR REPR ESENTATIVES OF LOCAL GOVERNMENT WHO
2130-REPRESENT DIFFERENT REGIONS OF THE STATE AND WHO ARE RES PONSIBLE FOR
2131-IMPLEMENTING ECOLOGI CAL RESTORATION PROJ ECTS, OF WHOM TWO SHALL
2132-REPRESENT COUNTY GOV ERNMENTS AND TWO SHA LL REPRESENT MUNICIP AL
2133-GOVERNMENTS ;
2134-
2135- (2) TWO REPRESENTATIVES OF P RIVATE ECOLOGICAL RE STORATION
2136-COMPANIES THAT REGUL ARLY WORK IN THE STATE;
2137-
2138- (3) TWO REPRESENTATIVES O F COMPANIES THAT INV EST PRIVATE
2139-CAPITAL IN ECOLOGICA L RESTORATION PROJEC TS;
2140-
2141- (4) TWO REPRESENTATIVES O F NONPROFIT ORGANIZA TIONS THAT
2142-ARE KNOWLEDGEABLE AB OUT GREEN OR BLUE IN FRASTRUCTURE AND ADV OCATE
2143-ON BEHALF OF THE PUB LIC’S INTEREST IN THE STATE’S NATURAL RESOURCES ;
2144- LAWRENCE J. HOGAN, JR., Governor Ch. 237
2145-
2146-– 47 –
2147- (5) ONE REPRESENTATIVE OF THE UNIVERSITY OF MARYLAND
2148-ENVIRONMENTA L FINANCE CENTER;
2149-
2150- (6) ONE REPRESENTATIVE OF THE PATUXENT ENVIRONMENTAL AND
2151-AQUATIC RESEARCH LABORATORY , MORGAN STATE UNIVERSITY, RECOMMENDED
2152-BY THE RESEARCH LABORATORY ;
2153-
2154- (7) TWO MEMBERS OF THE PU BLIC WHO HAVE A DOCU MENTED AND
2155-CONTINUING INTEREST IN ECOLOGICAL RESTORATI ON; AND
2156-
2157- (8) TWO REPRESENTATIVES O F STATE AGENCIES WHO AR E
2158-RESPONSIBLE FOR IMPL EMENTING GREEN OR BL UE INFRASTRUCTURE PR OJECTS.
2159-
2160- (D) THE SECRETARY SHALL ENSUR E THAT, TO THE EXTENT PRACTI CABLE,
2161-THE MEMBERSHIP OF TH E COMMISSION REFLECT S THE GEOGRAPHIC , RACIAL,
2162-GENDER, AND CULTURAL DIVERSI TY OF THE STATE.
2163-
2164- (E) FROM AMONG THE COMMISSION MEMBERS , THE SECRETARY SHALL
2165-DESIGNATE:
2166-
2167- (1) ONE OF THE STATE AGENCY REPRESEN TATIVES TO SERVE AS
2168-COCHAIR; AND
2169-
2170- (2) ONE OF THE LOCAL GOVE RNMENT REPR ESENTATIVES TO SERVE
2171-AS COCHAIR.
2172-
2173- (F) A MEMBER OF THE COMMISSION:
2174-
2175- (1) MAY NOT RECEIVE COMPE NSATION AS A MEMBER OF THE
2176-COMMISSION; BUT
2177-
2178- (2) IS ENTITLED TO REIMBU RSEMENT FOR EXPENSES UNDER THE
2179-STANDARD STATE TRAVEL REGULATIONS, AS PROVIDED IN THE STATE BUDGET.
2180-
2181-5–1403.
2182-
2183- (A) (1) THE COMMISSION SHALL MEET AT LEAST THREE TIMES PER
2184-YEAR.
2185-
2186- (2) MEETINGS MAY BE HELD VIRTUALLY OR AT A LOCATION
2187-DESIGNATED BY THE SECRETARY.
2188-
2189- (B) THE COMMISSION SHALL STUD Y AND MAKE RECOMMEND ATIONS
2190-REGARDING: Ch. 237 2022 LAWS OF MARYLAND
2191-
2192-– 48 –
2193-
2194- (1) WAYS TO PRIORITIZE GREEN AND BLUE INFRASTRUCTURE
2195-PROJECTS THROUGH STATE PERMITTING PROC ESSES;
2196-
2197- (2) CHANGES TO LOCAL DEVE LOPMENT POLICIES AND REGULATIONS
2198-THAT WOULD FACILITAT E THE TIMELY REVIEW AND APPROVAL OF GREE N AND BLUE
2199-INFRASTRUCTURE PROJE CTS;
2200-
2201- (3) WAYS TO PHASE IN LIFE CYCLE COSTING REQUIR EMENTS FOR
2202-LONG–TERM MONITORING AND REPAIR OF STATE AND LOCAL
2203-GOVERNMENT –FUNDED GREEN AND BLU E INFRASTRUCTURE PRO JECTS;
2204-
2205- (4) STRATEGIES AND POLICI ES TO PRIORITIZE GRE EN AND BLUE
2206-INFRASTRUCTURE PROJE CTS THAT BOTH CONTRIBUTE TOWARD TH E ACHIEVEMENT
2207-OF CHESAPEAKE BAY RESTORATION GOALS AND CREATE LOCAL ECO NOMIC,
2208-SOCIAL, AND ENVIRONMENTAL BE NEFITS FOR DISADVANT AGED COMMUNITIES ;
2209-
2210- (5) POLICIES TO ALLOW THE STATE AND LOCAL GOVER NMENTS TO
2211-ATTRACT SOURCES OF P RIVATE CAPIT AL INVESTMENT AND MA XIMIZE PUBLIC
2212-SECTOR FUNDING FOR G REEN AND BLUE INFRAS TRUCTURE PROJECTS ;
2213-
2214- (6) CIRCUMSTANCES IN WHIC H VOLUNTEER –BASED GREEN AND
2215-BLUE INFRASTRUCTURE PROJECTS SHOULD BE P RIORITIZED BECAUSE O F
2216-COST–SAVING BENEFITS ;
2217-
2218- (7) BEST PRACTICES FOR STREAMLINING THE PROCUREMENT AND
2219-FINANCING PROCESS FO R ENVIRONMENTAL CRED IT BUYERS AT THE LOC AL LEVEL;
2220-AND
2221-
2222- (8) OTHER POLICIES TO ACH IEVE THE INCREASED S COPE AND SCALE
2223-OF ECOLOGICAL RESTOR ATION.
2224-
2225- (C) ON OR BEFORE JANUARY 1 EACH YEAR, THE COMMISSION SHALL
2226-REPORT TO THE SECRETARY, THE GOVERNOR, AND, IN ACCORDANCE WITH § 2–1257
2227-OF THE STATE GOVERNMENT ARTICLE, THE GENERAL ASSEMBLY ON ITS FINDI NGS
2228-AND RECOMMENDATIONS .
2229-
2230- SECTION 3. AND BE IT FURTHER ENACTED, That:
2231-
2232- (a) There is a Task Force on State and Local Government Accounting for Natural
2233-Capital.
2234-
2235- (b) The Task Force consists of the following members:
2236- LAWRENCE J. HOGAN, JR., Governor Ch. 237
2237-
2238-– 49 –
2239- (1) the Secretary of the Environment, or the Secretary’s designee;
2240-
2241- (2) the Director of the University of Maryland Environmental Finance
2242-Center, or the Director’s designee;
2243-
2244- (3) the Secretary of Agriculture, or the Secretary’s designee;
2245-
2246- (4) the Secretary of Natural Resources, or the Secretary’s designee;
2247-
2248- (5) the Secretary of Budget and Management, or the Secretary’s designee;
2249-
2250- (6) the State Treasurer, or the State Treasurer’s designee;
2251-
2252- (7) the Executive Director of the Chesapeake Bay Commission, or the
2253-Executive Director’s designee;
2254-
2255- (8) two county government representatives with expertise and experience
2256-in accounting and budgeting, selected by the Maryland Association of Counties;
2257-
2258- (9) two municipal government representatives with expertise and
2259-experience in accounting and budgeting, selected by the Maryland Municipal League; and
2260-
2261- (10) the following members, appointed by the Secretary of the Environment:
2262-
2263- (i) one representative of the Maryland Association of Certified
2264-Public Accountants;
2265-
2266- (ii) one representative with expertise in sustainability standards
2267-and disclosure related to the environmental and social issues relevant to financial
2268-performance;
2269-
2270- (iii) two representatives of local water utilities who serve as chief
2271-financial officers or their functional equivalents; and
2272-
2273- (iv) two representatives of nonpoint organizations that advocate on
2274-behalf of the public’s interest in the State’s natural resources.
2275-
2276- (c) The Secretary of the Environment shall ensure that, to the extent practicable,
2277-the membership of the Task Force reflects the geographic, racial, gender, and cultural
2278-diversity of the State.
2279-
2280- (c) (d) The Secretary of the Environment, or the Secretary’s designee, and the
2281-Director of the University of Maryland Environmental Finance Center, or the Director’s
2282-designee, shall serve as cochairs of the Task Force.
2283- Ch. 237 2022 LAWS OF MARYLAND
2284-
2285-– 50 –
2286- (d) (e) The Department of the Environment and the University of Maryland
2287-Environmental Finance Center shall provide staff for the Task Force.
2288-
2289- (e) (f) A member of the Task Force:
2290-
2291- (1) may not receive compensation as a member of the Task Force; but
2292-
2293- (2) is entitled to reimbursement for expenses under the Standard State
2294-Travel Regulations, as provided in the State budget.
2295-
2296- (f) (g) (1) The purpose of the Task Force is to assist State and local governments
2297-to take full advantage of Government Accounting Standards Board accounting standards
2298-in order to unlock the financing needed to scale up the installation and maintenance of
2299-green and blue infrastructure and other conservation and restoration projects capable of
2300-contributing to a net reduction in the use of public funding while improving community
2301-health and resilience.
2302-
2303- (2) The Task Force shall:
2304-
2305- (i) document the extent to which Government Accounting
2306-Standards Board standards have been adopted in the State, identify barriers to the
2307-adoption of the standards, and make recommendations regarding the increased adoption of
2308-the standards;
2309-
2310- (ii) compile an inventory of the institutions that support natural
2311-capital and make recommendations regarding the engagement of land trusts, land banks,
2312-and community land trusts to act as green infrastructure institutions and the creation of
2313-equity and resilience in disadvantaged communities;
2314-
2315- (iii) make recommendations regarding public accounting and
2316-auditing practices that could help State and local governments to better quantify and value
2317-natural capital alongside traditional asset accounting;
2318-
2319- (iv) develop a communications plan describing natural resources as
2320-natural capital assets, including discussing urban tree canopy as a natural asset; and
2321-
2322- (v) study and make recommendations regarding any other matter
2323-the Task Force considers relevant and timely.
2324-
2325- (g) (h) On or before September 30, 2023, the Task Force shall report its findings
2326-and recommendations under subsection (f) (g) of this section to the Governor and, in
2327-accordance with § 2–1257 of the State Government Article, the General Assembly.
2328-
2329- SECTION 4. AND BE IT FURTHER ENACTED, That:
2330- LAWRENCE J. HOGAN, JR., Governor Ch. 237
2331-
2332-– 51 –
2333- (a) (1) In consultation with the BayStat Subcabinet agencies and appropriate
2334-experts and using funding received through State or federal grant programs, the
2335-Department of Natural Resources shall study and assess the potential for digital tools and
2336-platforms to contribute to Chesapeake Bay restoration and climate solutions, including:
2337-
2338- (i) artificial intelligence and machine learning;
2339-
2340- (ii) blockchain technologies and distributed ledgers;
2341-
2342- (iii) crowdsourcing platforms;
2343-
2344- (iv) smart sensors;
2345-
2346- (v) the Internet of things; and
2347-
2348- (vi) software and systems.
2349-
2350- (2) The study shall include:
2351-
2352- (i) as practicable, an inventory and assessment of digital tools and
2353-platforms based on the Digital Climate Solutions Report required under § 40433 of the
2354-federal Infrastructure Investment and Jobs Act;
2355-
2356- (ii) an analysis of the likely applications of the digital tools and
2357-platforms assessed under item (i) of this paragraph for drinking water management;
2358-
2359- (iii) the potential cost savings associated with the adoption of any
2360-digital tools or platforms; and
2361-
2362- (iv) a summary of opportunities for the State to incentivize the
2363-deployment of promising technologies by the private sector in the State in ways that
2364-support State programs and services.
2365-
2366- (b) On or before December 1, 2023, the Department of Natural Resources shall
2367-report the findings of the study required under subsection (a) of this section to the General
2368-Assembly, in accordance with § 2–1257 of the State Government Article.
2369-
2370- SECTION 5. AND BE IT FURTHER ENACTED, That this Act shall take effect July
2371-1, 2022. Section 2 of this Act shall remain effective for a period of 3 years and, at the end of
2372-June 30, 2025, Section 2 of this Act, with no further action required by the General
2373-Assembly, shall be abrogated and of no further force and effect. Section 3 of this Act shall
2374-remain effective for a period of 2 years and, at the end of June 30, 2024, Section 3 of this
2375-Act, with no further action required by the General Assembly, shall be abrogated and of no
2376-further force and effect.
2377-
2378-Approved by the Governor, April 21, 2022.
1+EXPLANATION: CAPITALS INDICATE MATTER ADDED TO EXISTING LAW .
2+ [Brackets] indicate matter deleted from existing law.
3+ Underlining indicates amendments to bill.
4+ Strike out indicates matter stricken from the bill by amendment or deleted from the law by
5+amendment.
6+*hb0653*
7+HOUSE BILL 653
8+M3, P2 2lr0574
9+SB 737/21 – EHE CF SB 348
10+By: Delegates Love, Boyce, Barve, Lehman, and Stein
11+Introduced and read first time: January 31, 2022
12+Assigned to: Environment and Transportation
13+Committee Report: Favorable with amendments
14+House action: Adopted
15+Read second time: March 7, 2022
16+CHAPTER ______
17+AN ACT concerning 1
18+Conservation Finance Act 2
19+FOR the purpose of providing that the Department of Agriculture, the Department of 3
20+Natural Resources, and the Maryland Environmental Trust must allow participants 4
21+in certain programs to participate in and receive compensation from certain markets, 5
22+credits, or programs under certain circumstances; authorizing the Department of 6
23+Agriculture and the Department of Natural Resources to enter into certain 7
24+partnerships for certain purposes; altering the duties of the Commission on 8
25+Environmental Justice and Sustainable Communities; authorizing the Department 9
26+of the Environment to take certain actions with respect to certain water 10
27+infrastructure assets that are priorities for improving fish passage or for other 11
28+environmental benefits or for installation of certain small hydroelectric power plant 12
29+capacity; requiring the Department of the Environment to provide a certain notice 13
30+to the Maryland Industrial Development Financing Authority under certain 14
31+circumstances; establishing that it is the policy of the State that the maintenance 15
32+and repair of certain source watersheds is eligible for certain financial assistance; 16
33+expanding the purposes for which amounts in the Maryland Water Quality Revolving 17
34+Loan Fund may be used; altering the terms and authorized uses of the Maryland 18
35+Drinking Water Revolving Loan Fund; altering the name of the Maryland Water 19
36+Quality Financing Administration to be the Maryland Water Infrastructure 20
37+Financing Administration; requiring the Maryland Water Infrastructure Financing 21
38+Administration to prioritize certain opportunities in creating certain intended use 22
39+plans; requiring the Maryland Water Infrastructure Financing Administration to 23
40+establish certain technical assistance subaccounts within the Maryland Water 24
41+Quality Revolving Loan Fund and the Maryland Drinking Water Revolving Loan 25 2 HOUSE BILL 653
42+
43+
44+Fund for certain purposes; requiring certain financial incentives developed by the 1
45+State to include allowing landowners to use forests located on State lands for certain 2
46+purposes; authorizing a certain easement to allow for the potential of economic 3
47+return from certain uses under certain circumstances; authorizing the Secretary of 4
48+Natural Resources to purchase certain environmental outcomes from certain projects 5
49+that are located in the Susquehanna River watershed under certain circumstances; 6
50+requiring a certain final work and expenditure plan to be informed by a certain 7
51+analysis beginning with the plan prepared for a certain fiscal year; altering the 8
52+purposes for which the Chesapeake and Atlantic Coastal Bays 2010 Trust Fund may 9
53+be used; altering the factors that the BayStat Program must encourage and consider 10
54+in evaluating certain Trust Fund applications; requiring the BayStat Program 11
55+Scientific Advisory Panel to analyze and compare certain distributions and 12
56+strategies and quantify the relative effectiveness of certain distributions and 13
57+strategies; authorizing the BayStat Subcabinet agencies to maintain a certain 14
58+amount from the Trust Fund for certain purposes; providing that the use of 15
59+pay–for–success contracts by the Department of Natural Resources is subject to 16
60+certain provisions of State procurement law; authorizing the use of pay–for–success 17
61+contracting at the procurement officer’s discretion; authorizing a unit to enter into a 18
62+pay–for–success contract only under certain circumstances; authorizing certain 19
63+units to enter into pay–for–success contracts with certain aggregators to procure 20
64+certain environmental outcomes projects or already certified environmental 21
65+outcomes; requiring a certain pay–for–success contract to include certain plans, 22
66+statements, requirements, provisions, and terms; authorizing a certain 23
67+pay–for–success contract to include certain provisions; requiring the Maryland 24
68+Environmental Service to review and evaluate the results of certain pay–for–success 25
69+contracts with a certain frequency; requiring each unit that enters into a 26
70+pay–for–success contract to execute an agreement with the Maryland Environmental 27
71+Service to reimburse the Service for its review under this Act; establishing the Green 28
72+and Blue Infrastructure Policy Advisory Commission to advise the Secretary of the 29
73+Environment, the BayStat Subcabinet, and local government officials on 30
74+implementing green and blue infrastructure projects in the State; establishing the 31
75+Task Force on State and Local Government Accounting for Natural Capital to assist 32
76+State and local governments to take advantage of certain accounting standards to 33
77+obtain certain financing for certain purposes; requiring the Department of Natural 34
78+Resources to study and assess the potential for digital tools and platforms to 35
79+contribute to Chesapeake Bay restoration and climate solutions in a certain manner 36
80+and to report certain findings to the General Assembly on or before a certain date; 37
81+and generally relating to environmental financing and pay–for–success contracting. 38
82+
83+BY repealing and reenacting, with amendments, 39
84+ Article – Agriculture 40
85+Section 8–702 41
86+ Annotated Code of Maryland 42
87+ (2016 Replacement Volume and 2021 Supplement) 43
88+
89+BY repealing and reenacting, without amendments, 44
90+ Article – Environment 45 HOUSE BILL 653 3
91+
92+
93+Section 1–701(a)(1) and (5) and (b) and 5–509(a) 1
94+ Annotated Code of Maryland 2
95+ (2013 Replacement Volume and 2021 Supplement) 3
96+
97+BY repealing and reenacting, with amendments, 4
98+ Article – Environment 5
99+Section 1–701(h) and 5–509(b) 6
100+ Annotated Code of Maryland 7
101+ (2013 Replacement Volume and 2021 Supplement) 8
102+
103+BY repealing and reenacting, with amendments, 9
104+ Article – Environment 10
105+Section 9–1601, 9–1602, 9–1604(c), 9–1605(a)(1), (c), and (d), 9–1605.1(c), (d), and 11
106+(e), and 9–1622 to be under the amended subtitle “Subtitle 16. Maryland 12
107+Water Infrastructure Financing Administration” 13
108+ Annotated Code of Maryland 14
109+ (2014 Replacement Volume and 2021 Supplement) 15
110+
111+BY repealing and reenacting, without amendments, 16
112+ Article – Environment 17
113+Section 9–1605.1(a)(1) 18
114+ Annotated Code of Maryland 19
115+ (2014 Replacement Volume and 2021 Supplement) 20
116+
117+BY adding to 21
118+ Article – Environment 22
119+Section 9–1605(f), 9–1605.1(e) and 9–1617.2 23
120+ Annotated Code of Maryland 24
121+ (2014 Replacement Volume and 2021 Supplement) 25
122+
123+BY adding to 26
124+ Article – Natural Resources 27
125+Section 1–110 and 5–9A–05(p) 28
126+ Annotated Code of Maryland 29
127+ (2018 Replacement Volume and 2021 Supplement) 30
128+
129+BY repealing and reenacting, without amendments, 31
130+ Article – Natural Resources 32
131+ Section 3–103(a) 33
132+ Annotated Code of Maryland 34
133+ (2018 Replacement Volume and 2021 Supplement) 35
134+
135+BY repealing and reenacting, with amendments, 36
136+ Article – Natural Resources 37
137+Section 3–201 and 5–102(b) 3–103(g), 3–201, and 5–102(b) 38
138+ Annotated Code of Maryland 39
139+ (2018 Replacement Volume and 2021 Supplement) 40 4 HOUSE BILL 653
140+
141+
142+
143+BY adding to 1
144+ Article – Natural Resources 2
145+Section 8–203.1 and 8–207 3
146+ Annotated Code of Maryland 4
147+ (2012 Replacement Volume and 2021 Supplement) 5
148+
149+BY repealing and reenacting, with amendments, 6
150+ Article – Natural Resources 7
151+Section 8–2A–01, 8–2A–03, and 8–2A–04 8
152+ Annotated Code of Maryland 9
153+ (2012 Replacement Volume and 2021 Supplement) 10
154+
155+BY repealing and reenacting, without amendments, 11
156+ Article – State Finance and Procurement 12
157+Section 10A–101(a) 13
158+ Annotated Code of Maryland 14
159+ (2021 Replacement Volume) 15
160+
161+BY repealing and reenacting, with amendments, 16
162+ Article – State Finance and Procurement 17
163+Section 10A–101(d), 13–101, and 13–102 18
164+ Annotated Code of Maryland 19
165+ (2021 Replacement Volume) 20
166+
167+BY adding to 21
168+ Article – State Finance and Procurement 22
169+Section 13–112.1 23
170+ Annotated Code of Maryland 24
171+ (2021 Replacement Volume) 25
172+
173+BY adding to 26
174+ Article – Environment 27
175+Section 5–1401 through 5–1403 to be under the new subtitle “Subtitle 14. Green and 28
176+Blue Infrastructure Policy Advisory Commission” 29
177+ Annotated Code of Maryland 30
178+ (2013 Replacement Volume and 2021 Supplement) 31
179+
180+ SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 32
181+That the Laws of Maryland read as follows: 33
182+
183+Article – Agriculture 34
184+
185+8–702. 35
186+
187+ (a) (1) The General Assembly finds and declares that agriculturally related 36
188+nonpoint sources of water pollution may potentially contribute to the degradation of the 37 HOUSE BILL 653 5
189+
190+
191+water resources of this State and that prevention and control efforts have been hampered 1
192+because of the cost and lack of income producing potential in many agricultural practices 2
193+designed to protect water quality. 3
194+
195+ (2) To assist in the implementation of agricultural practices which 4
196+minimize water pollution from erosion, animal wastes, nutrients, and agricultural 5
197+chemicals, a cost sharing program between the State and eligible applicants is established 6
198+for the public benefit. 7
199+
200+ (b) The cost sharing program established under this subtitle shall be 8
201+implemented in conjunction with the “Agricultural Water Quality Management Program 9
202+for the Control of Sediment and Animal Wastes” of the State Soil Conservation Committee 10
203+as well as other State and local programs to control water pollution. 11
204+
205+ (C) THE DEPARTMENT MAY NOT PR OHIBIT OR LIMIT , THROUGH ANY 12
206+COST–SHARE AGREEMENT , A PARTICIPANT IN THE COST SHARING PROGRAM 13
207+ESTABLISHED UNDER TH IS SUBTITLE FROM PARTICIPA TING IN AND RECEIVIN G 14
208+COMPENSATION FROM GR EENHOUSE GAS MARKETS , CARBON CREDITS , OR SOIL 15
209+CARBON PROGRAMS , IF THE PURPOSE OF TH E COMPENSATION IS TO ACHIEVE 16
210+ADDITIONAL CONSERVAT ION BENEFITS THAT AR E CONSISTENT WITH TH E STATE’S 17
211+CHESAPEAKE BAY CONSERVATION GOAL S. 18
212+
213+ (D) THE DEPARTMENT MAY ENTER INTO PARTNERSHIPS , THROUGH 19
214+FORMAL CONTRACTS OR MEMORANDA OF UNDERST ANDING, WITH PRIVATE SECTOR 20
215+ORGANIZATIONS WITH E XPERIENCE IN CARBON OFFSET MARKETS OR PR OGRAMS IN 21
216+ORDER TO: 22
217+
218+ (1) CREATE STATEWIDE OR REGIONAL PARTNERSHIP S FOR THE 23
219+PURPOSE OF MINIMIZIN G THE COSTS AND MAXI MIZING THE BENEFITS OF 24
220+VOLUNTARY ENROLLMENT OF FARMLAND IN CARBO N OFFSET MARKET PROG RAMS; 25
221+AND 26
222+
223+ (2) ASSIST PRIVATE LANDOW NERS WITH THE AGGREG ATION OF 27
224+PROJECTS TO MAKE THE PROJECTS MORE SALEAB LE IN CARBON OFFSET MARKET 28
225+PROGRAMS. 29
226+
227+Article – Environment 30
228+
229+1–701. 31
230+
231+ (a) (1) In this section the following words have the meanings indicated. 32
232+
233+ (5) “Environmental justice” means equal protection from environmental 33
234+and public health hazards for all people regardless of race, income, culture, and social 34
235+status. 35 6 HOUSE BILL 653
236+
237+
238+
239+ (b) There is a Commission on Environmental Justice and Sustainable 1
240+Communities. 2
241+
242+ (h) The Commission shall: 3
243+
244+ (1) Advise State government agencies on environmental justice and related 4
245+community issues; 5
246+
247+ (2) Use data sets and mapping tools to review and analyze the impact of 6
248+current State and local laws, permits, actions, and policies on the issue of environmental 7
249+justice and sustainable communities, including cumulative impacts, effects, and exposure; 8
250+
251+ (3) Assess the adequacy of State and local government laws to address the 9
252+issue of environmental justice and sustainable communities, including assessing 10
253+compliance with Title VI of the federal Civil Rights Act of 1964; 11
254+
255+ (4) Coordinate with the Children’s Environmental Health and Protection 12
256+Advisory Council, the Maryland Office of Minority Health and Health Disparities, and the 13
257+Commission on Climate Change on recommendations related to environmental justice and 14
258+sustainable communities; [and] 15
259+
260+ (5) Recommend options to the Governor and the General Assembly for 16
261+addressing issues, concerns, or problems related to environmental justice that surface after 17
262+reviewing State laws and policies, including prioritizing areas of the State that need 18
263+immediate attention; AND 19
264+
265+ (6) RECOMMEND OPTIONS TO THE SECRETARY FOR ENSURIN G THAT 20
266+THE DEPARTMENT IS MAKING PROGRESS IN ADVANCIN G THE HUMAN RIGHT TO 21
267+SAFE, CLEAN, AFFORDABLE , AND ACCESSIBLE WATER FOR CONSUMPTION , 22
268+COOKING, SANITATION, HEALTH, AND RECREATION PURPOSES . 23
269+
270+5–509. 24
271+
272+ (a) (1) In this section the following words have the meanings indicated. 25
273+
274+ (2) “Asset owner” means the owner or person having control of a water 26
275+infrastructure asset. 27
276+
277+ (3) “Association” means: 28
278+
279+ (i) A homeowners association, as defined in § 11B–101 of the Real 29
280+Property Article; 30
281+
282+ (ii) A council of unit owners, as defined in § 11–101 of the Real 31
283+Property Article; or 32 HOUSE BILL 653 7
284+
285+
286+
287+ (iii) Any other entity owning or controlling a water infrastructure 1
288+asset, the owners or members of which are owners of property adjacent to or benefited by 2
289+the water infrastructure asset. 3
290+
291+ (4) “Association member” means an owner or a member of an association. 4
292+
293+ (5) “Water infrastructure asset” means a reservoir, a dam, or any other 5
294+waterway construction. 6
295+
296+ (b) (1) On complaint or the Department’s own initiative, the Department may 7
297+investigate or examine any water infrastructure asset. 8
298+
299+ (2) If the Department determines that the water infrastructure asset is 9
300+unsafe, needs repair, or should be removed because the water infrastructure asset is unsafe 10
301+and not repairable, the Department shall notify the asset owner in writing to repair or 11
302+remove the water infrastructure asset, as the situation warrants. 12
303+
304+ (3) The repair or removal work shall be completed within a reasonable 13
305+time, which time shall be prescribed in the Department’s notice. 14
306+
307+ (4) (I) THIS PARAGRAPH APPLIE S TO A WATER INFRAST RUCTURE 15
308+ASSET THAT THE DEPARTMENT DETERMINES MEETS THE CRITERIA S PECIFIED IN 16
309+PARAGRAPH (2) OF THIS SUBSECTION . 17
310+
311+ (II) IF THE DEPARTMENT DETERMINES THAT CHANGES TO THE 18
312+WATER INFRASTRUCTURE ASSET, INCLUDING REMOVAL OF THE ASSET, ARE A 19
313+PRIORITY FOR IMPROVI NG FISH PASSAGE OR F OR OTHER ENVIRONMENT AL 20
314+BENEFITS, THE DEPARTMENT : 21
315+
316+ 1. MAY PARTNER WITH THE ASSET OWNER AND AN 22
317+ORGANIZATION THAT PR OVIDES RESOURCES AND EXPERTISE TO PLAN , DESIGN, OR 23
318+FINANCE CHANGES TO W ATER INFRASTRUCTURE ASSETS FOR THE PURPO SE OF 24
319+REPAIRING, REMOVING, OR RETROFITTING THE ASSET IN A MANNER CO NSISTENT 25
320+WITH THE DEPARTMENT ’S OBJECTIVES; OR 26
321+
322+ 2. SHALL PRIORITIZE THE USE OF ENVIRONMENTAL 27
323+OUTCOMES, AS DEFINED IN § 9–1601 OF THIS ARTICLE, ARISING FROM THE REP AIR, 28
324+REMOVAL, OR RETROFIT OF THE W ATER INFRASTRUCTURE ASSET IN ANY 29
325+ENVIRONMENTAL MITIGA TION PROGRAM IDENTIF IED BY THE DEPARTMENT . 30
326+
327+ (III) FOR THE PURPOSE OF SEEKI NG FINANCIAL ASSISTA NCE 31
328+UNDER TITLE 5, SUBTITLE 4 OF THE ECONOMIC DEVELOPMENT ARTICLE, IF THE 32
329+DEPARTMENT DETERMINES THAT THE WATER INFRA STRUCTURE ASSET IS N OT A 33
330+PRIORITY UNDER SUBPA RAGRAPH (II) OF THIS PARAGRAPH BU T IS A PRIORITY FOR 34 8 HOUSE BILL 653
331+
332+
333+INSTALLATION OF LESS T HAN 30 MEGAWATTS OF SMALL H YDROELECTRIC POWER 1
334+PLANT CAPACITY , THE DEPARTMENT SHALL PROV IDE NOTICE TO THE MARYLAND 2
335+INDUSTRIAL DEVELOPMENT FINANCING AUTHORITY OF: 3
336+
337+ 1. ANY WATER INFRASTRUCT URE ASSET IDENTIFIED AS 4
338+A PRIORITY FOR INSTA LLATION OF LESS THAN 30 MEGAWATTS OF SMALL 5
339+HYDROELECTRIC POWER PLANT CAPACITY UNDER THIS PARAGRAPH ; AND 6
340+
341+ 2. THE REPAIR, RETROFIT, OR REMOVAL MEASURES 7
342+IDENTIFIED FOR THE W ATER INFRASTRUCTURE ASSET IN THE NOTICE PROVIDED 8
343+UNDER PARAGRAPH (2) OF THIS SUBSECTION . 9
344+
345+Subtitle 16. Maryland Water [Quality] INFRASTRUCTURE Financing Administration. 10
346+
347+9–1601. 11
348+
349+ (a) Unless the context clearly requires otherwise, in this subtitle the following 12
350+words have the meanings indicated. 13
351+
352+ (b) “Administration” means the Maryland Water [Quality] INFRASTRUCTURE 14
353+Financing Administration. 15
354+
355+ (c) “Bay Restoration Fund” means the Bay Restoration Fund established under § 16
356+9–1605.2 of this subtitle. 17
357+
358+ (d) “Biological nutrient removal” means a biological nutrient removal technology 18
359+capable of reducing the nitrogen in wastewater effluent to not more than 8 milligrams per 19
360+liter, as calculated on an annually averaged basis. 20
361+
362+ (e) (1) “BLUE INFRASTRUCTURE ” MEANS A WATER –BASED NATURAL 21
363+AREA OR NATURAL FEAT URE, OR A SYSTEM OR FEATU RE DESIGNED TO PROTE CT, 22
364+MIMIC, OR ENHANCE A NATURAL FUNCTION, THAT: 23
365+
366+ (I) ABSORBS AND FILTERS P OLLUTANTS; 24
367+
368+ (II) ATTENUATES SHORELINE EROSION; 25
369+
370+ (III) PROTECTS COMMUNITIES FROM FLOODING OR STO RM 26
371+SURGE; 27
372+
373+ (IV) REDUCES EROSION ; OR 28
374+
375+ (V) SEQUESTERS CARBON . 29
376+
377+ (2) “BLUE INFRASTRUCTURE ” INCLUDES: 30 HOUSE BILL 653 9
378+
379+
380+
381+ (I) ENHANCED OR RESTORED OYSTER REEFS ; 1
382+
383+ (II) ENHANCED OR RESTORED SEAGRASS BE DS; 2
384+
385+ (III) SHELLFISH AQUACULTURE PROJECTS; 3
386+
387+ (IV) FLOATING WETLANDS ; AND 4
388+
389+ (V) RESTORED FRESHWATER M USSEL POPULATIONS . 5
390+
391+ (F) “Board” means the Board of Public Works. 6
392+
393+ [(f)] (G) “Bond” means a bond, note, or other evidence of obligation of the 7
394+Administration issued under this subtitle, including a bond or revenue anticipation note, 8
395+notes in the nature of commercial paper, and refunding bonds. 9
396+
397+ [(g)] (H) “Bond resolution” means the resolution or resolutions of the Director, 10
398+including the trust agreement, if any, authorizing the issuance of and providing for the 11
399+terms and conditions applicable to bonds. 12
400+
401+ [(h)] (I) “Borrower” means a local government or a person as defined in § 13
402+1–101(h) of this article who has received a loan. 14
403+
404+ [(i)] (J) “Chesapeake and Atlantic Coastal Bays Nonpoint Source Fund” means 15
405+the Chesapeake and Atlantic Coastal Bays Nonpoint Source Fund established under § 16
406+9–1605.3 of this subtitle. 17
407+
408+ [(j)] (K) “Community sewerage system” means a publicly or privately owned 18
409+sewerage system that serves at least two lots. 19
410+
411+ [(k)] (L) “Director” means the Director of the Administration. 20
412+
413+ [(l)] (M) “Drinking Water Loan Fund” means the Maryland Drinking Water 21
414+Revolving Loan Fund. 22
415+
416+ [(m)] (N) “Eligible costs” means the costs identified under § 9–1605.2(i) of this 23
417+subtitle. 24
418+
419+ [(n)] (O) “Enhanced nutrient removal” means: 25
420+
421+ (1) An enhanced nutrient removal technology that is capable of reducing 26
422+the nitrogen and phosphorus concentrations in wastewater effluent to concentrations of not 27
423+more than 3 milligrams per liter total nitrogen and not more than 0.3 milligrams per liter 28
424+total phosphorus, as calculated on an annually averaged basis; or 29
425+ 10 HOUSE BILL 653
426+
427+
428+ (2) If the Department has determined that the concentrations under item 1
429+(1) of this subsection are not practicable for a wastewater facility, the lowest average annual 2
430+wastewater effluent nitrogen and phosphorus concentrations that the Department 3
431+determines are practicable for that facility. 4
432+
433+ (P) “ENVIRONMENTAL OUTCOME ” MEANS A COMMODITY TH AT IS MODELED 5
434+OR DIRECTLY MEASURED AS A SINGLE, QUANTIFIABLE , AND CERTIFIED UNIT O F 6
435+IMPROVEMENT TO THE E NVIRONMENT , INCLUDING A NUTRIENT OR CARBON 7
436+BENEFIT. 8
437+
438+ [(o)] (Q) “Equivalent dwelling unit” means a measure of wastewater effluent 9
439+where one unit is equivalent to: 10
440+
441+ (1) If a local government or billing authority for a wastewater facility has 11
442+established a definition for “equivalent dwelling unit” on or before January 1, 2004, the 12
443+average daily flow of wastewater effluent that the local government or billing authority has 13
444+established to be equivalent to the average daily flow of wastewater effluent discharged by 14
445+a residential dwelling, which may not exceed 250 gallons; or 15
446+
447+ (2) If a local government or billing authority has not established a 16
448+definition for “equivalent dwelling unit” on or before January 1, 2004, or if a local 17
449+government or billing authority has established a definition that exceeds 250 gallons of 18
450+wastewater effluent per day, an average daily flow of 250 gallons of wastewater effluent. 19
451+
452+ [(p)] (R) “Facility” means a wastewater facility or all or a portion of a water 20
453+supply system as defined in § 9–201(u) of this title. 21
454+
455+ [(q)] (S) “Federal Safe Drinking Water Act” means Title XIV of the Public 22
456+Health Service Act, P.L. 93–523, as amended, 42 U.S.C. § 300f, et seq., and the rules and 23
457+regulations promulgated thereunder. 24
458+
459+ [(r)] (T) “Federal Water Pollution Control Act” means the Water Pollution 25
460+Control Act of 1972, P.L. 92–500, as amended, 33 U.S.C. § 1251, et seq., and rules and 26
461+regulations promulgated thereunder. 27
462+
463+ [(s)] (U) “Fund” means a fund established by this subtitle, including the Water 28
464+Quality Fund, the Drinking Water Loan Fund, the Bay Restoration Fund, and the 29
465+Chesapeake and Atlantic Coastal Bays Nonpoint Source Fund. 30
466+
467+ [(t)] (V) “Grant” means a grant from the Administration to a grantee. 31
468+
469+ [(u)] (W) “Grant agreement” means a written agreement between the 32
470+Administration and a grantee with respect to a grant. 33
471+
472+ [(v)] (X) “Grantee” means the grant recipient. 34
473+ HOUSE BILL 653 11
474+
475+
476+ (Y) (1) “GREEN INFRASTRUCTURE ” MEANS A LAND –BASED NATURAL 1
477+AREA OR NATURAL FEAT URE, OR A SYSTEM OR FEATU RE DESIGNED TO PROTE CT, 2
478+MIMIC, OR ENHANCE A NATURAL FUNCTION, THAT: 3
479+
480+ (I) ABSORBS AND FILTERS P OLLUTANTS; 4
481+
482+ (II) PROTECTS COMMUNITIES FROM FLOODING OR STO RM 5
483+SURGE; 6
484+
485+ (III) REDUCES EROSION ; OR 7
486+
487+ (IV) SEQUESTERS CARBON . 8
488+
489+ (2) “GREEN INFRASTRUCTURE ” INCLUDES: 9
490+
491+ (I) ENHANCED OR RESTORED NATURAL LANDSCAPE 10
492+FEATURES, SUCH AS FORESTS , STREAMS, WETLANDS, RIPARIAN BUFFERS , 11
493+HEADWATERS , OR FLOODPLAINS ; 12
494+
495+ (II) RAIN GARDENS; 13
496+
497+ (III) PERMEABLE PAVEMENT ; 14
498+
499+ (IV) POCKET PARKS ; 15
500+
501+ (V) BIOSWALES; 16
502+
503+ (VI) GREEN ROOFS; 17
504+
505+ (VII) INFILTRATION PLANTERS ; 18
506+
507+ (VIII) TREE PLANTINGS OR TRE E BOXES; AND 19
508+
509+ (IX) RAINWATER HARVESTING . 20
510+
511+ [(w)] (Z) “Lender” has the meaning stated in § 9–1606.1 of this subtitle. 21
512+
513+ [(x)] (AA) “Linked deposit” has the meaning stated in § 9–1606.1 of this subtitle. 22
514+
515+ [(y)] (BB) “Linked deposit loan” has the meaning stated in § 9–1606.1 of this 23
516+subtitle. 24
517+
518+ [(z)] (CC) “Linked deposit program” has the meaning stated in § 9–1606.1 of this 25
519+subtitle. 26
520+ 12 HOUSE BILL 653
521+
522+
523+ [(aa)] (DD) “Loan” means a loan from the Administration to a borrower for the 1
524+purpose of financing all or a portion of the cost of a wastewater facility, if the loan is from 2
525+the Water Quality Fund, or water supply system, if the loan is from the Drinking Water 3
526+Loan Fund. 4
527+
528+ [(bb)] (EE) “Loan agreement” means a written agreement between the 5
529+Administration and a borrower with respect to a loan. 6
530+
531+ [(cc)] (FF) “Loan obligation” means a bond, note, or other evidence of obligation, 7
532+including a mortgage, deed of trust, lien, or other security instrument, issued or executed 8
533+by a borrower to evidence its indebtedness under a loan agreement with respect to a loan. 9
534+
535+ [(dd)] (GG) (1) “Local government” means a county, municipal corporation, 10
536+sanitary district, or other State or local public entity that has authority to own or operate 11
537+a facility. 12
538+
539+ (2) “Local government” includes any combination of two or more of the 13
540+public entities under paragraph (1) of this subsection when acting jointly to construct or 14
541+operate a facility. 15
542+
543+ [(ee)] (HH) (1) “Person” means an individual, corporation, partnership, 16
544+association, nonprofit entity, the State, any unit of the State, commission, special taxing 17
545+district, or the federal government. 18
546+
547+ (2) “Person” does not include a county, municipal corporation, bi–county or 19
548+multicounty agency under Division II of the Land Use Article or Division II of the Public 20
549+Utilities Article, housing authority under Division II of the Housing and Community 21
550+Development Article, school board, community college, or any other unit of a county or 22
551+municipal corporation, or a local fire department, as defined in § 9–401 of the Public Safety 23
552+Article. 24
553+
554+ [(ff)] (II) (1) “Residential dwelling” means a room or group of rooms occupied 25
555+as living quarters by an individual, a single family, or other discrete group of persons with 26
556+facilities that are used or intended to be used for living, sleeping, cooking, sanitation, and 27
557+eating, including an apartment unit, condominium unit, cooperative unit, town house unit, 28
558+mobile home, or house. 29
559+
560+ (2) “Residential dwelling” does not include a hospital, hotel, motel, inn, 30
561+boarding house, club, dormitory, school, college, or similar seasonal, institutional, or 31
562+transient facility. 32
563+
564+ [(gg)] (JJ) “Single site” means a discrete grouping of buildings or structures that 33
565+are located on contiguous or adjacent property and owned by the same user. 34
566+
567+ [(hh)] (KK) (1) “User” means any person discharging wastewater to: 35
568+ HOUSE BILL 653 13
569+
570+
571+ (i) A wastewater facility that has a State discharge permit or 1
572+national pollutant discharge elimination system discharge permit; 2
573+
574+ (ii) An on–site sewage disposal system; or 3
575+
576+ (iii) A sewage holding tank. 4
577+
578+ (2) “User” does not include a person whose sole discharge is stormwater 5
579+under a stormwater permit. 6
580+
581+ [(ii)] (LL) (1) “Wastewater facility” means any equipment, plant, treatment 7
582+works, structure, machinery, apparatus, interest in land, or any combination of these, 8
583+which is acquired, used, constructed, or operated: 9
584+
585+ (i) For the storage, collection, treatment, neutralization, 10
586+stabilization, reduction, recycling, reclamation, separation, or disposal of wastewater; 11
587+
588+ (ii) To improve water conservation, reduce energy consumption, or 12
589+increase security; or 13
590+
591+ (iii) For the final disposal of residues resulting from the treatment of 14
592+wastewater. 15
593+
594+ (2) “Wastewater facility” includes: 16
595+
596+ (i) Treatment or disposal plants; outfall sewers, interceptor sewers, 17
597+and collector sewers; pumping and ventilating stations, facilities, and works; and other real 18
598+or personal property and appurtenances incident to their development, use, or operation; 19
599+
600+ (ii) Any programs and projects for managing, reducing, treating, 20
601+recapturing, abating, or controlling nonpoint sources of water pollution, including 21
602+stormwater or subsurface drainage water; and 22
603+
604+ (iii) Any programs and projects for improving estuarine conservation 23
605+and management. 24
606+
607+ [(jj)] (MM) “Water Quality Fund” means the Maryland Water Quality Revolving 25
608+Loan Fund. 26
609+
610+ [(kk)] (NN) “Water supply system” has the meaning stated in § 9–201(u) of this 27
611+title. 28
612+
613+9–1602. 29
614+
615+ There is a Maryland Water [Quality] INFRASTRUCTURE Financing Administration 30
616+in the Department. 31
617+ 14 HOUSE BILL 653
618+
619+
620+9–1604. 1
621+
622+ (c) (1) This subsection applies to financial assistance provided by the 2
623+Administration under: 3
624+
625+ (i) The Water Quality Fund; 4
626+
627+ (ii) The Bay Restoration Fund; 5
628+
629+ (iii) The Biological Nutrient Removal Program; and 6
630+
631+ (iv) The Supplemental Assistance Program. 7
632+
633+ (2) The Administration shall ensure the fair and equitable distribution of 8
634+financial assistance among wastewater treatment facilities with a design capacity of less 9
635+than 500,000 gallons per day and wastewater treatment facilities with a design capacity of 10
636+500,000 gallons or more per day. 11
637+
638+ (3) IT IS THE POLICY OF THE STATE THAT THE MAINTE NANCE AND 12
639+REPAIR OF SOURCE WAT ERSHEDS, INCLUDING THE CONSER VATION AND 13
640+RESTORATION OF FORES TS AND THE INSTALLAT ION AND MAINTENANCE OF BLUE 14
641+INFRASTRUCTURE OR GR EEN INFRASTRUCTURE T HAT CONTRIBUTES TO I MPROVED 15
642+WATER QUALITY , IS ELIGIBLE FOR THE SAME FORM S OF FINANCIAL ASSIS TANCE AS 16
643+OTHER WATER COLLECTI ON AND TREATMENT INF RASTRUCTURE . 17
644+
645+9–1605. 18
646+
647+ (a) (1) (I) There is a Maryland Water Quality Revolving Loan Fund. 19
648+
649+ (II) The Water Quality Fund shall be maintained and administered 20
650+by the Administration in accordance with the provisions of this subtitle and such rules or 21
651+program directives as the Secretary or the Board may from time to time prescribe. 22
652+
653+ (c) (1) The Administration may establish accounts and subaccounts within the 23
654+Water Quality Fund [as may be considered desirable] to: 24
655+
656+ (i) Effectuate the purposes of this subtitle; 25
657+
658+ (ii) Comply with the provisions of any bond resolution; 26
659+
660+ (iii) Meet the requirements of any federal law, or of any federal grant 27
661+or award to the Water Quality Fund; or 28
662+
663+ (iv) Meet any rules or program directives established by the 29
664+Secretary or the Board. 30
665+ HOUSE BILL 653 15
666+
667+
668+ (2) The accounts and subaccounts established under paragraph (1) of this 1
669+subsection may include: 2
670+
671+ (i) A federal receipts account; 3
672+
673+ (ii) A State receipts account; 4
674+
675+ (iii) A management and administration expense account; 5
676+
677+ (iv) A bond proceeds account; 6
678+
679+ (v) An account to segregate a portion or portions of the revenues or 7
680+corpus of the Water Quality Fund as security for bonds of the Administration; 8
681+
682+ (vi) A loan repayment account; and 9
683+
684+ (vii) An investment earnings account. 10
685+
686+ (3) (I) THE ADMINISTRATION SHALL ESTABLISH A TECHNICA L 11
687+ASSISTANCE SUBACCOUN T WITHIN THE WATER QUALITY FUND. 12
688+
689+ (II) FEDERAL FUNDS DEPOSIT ED IN THE WATER QUALITY 13
690+FUND FOR THE PURPOSE OF PROVIDING TECHNIC AL ASSISTANCE FOR PR OJECTS IN 14
691+RURAL, SMALL, AND TRIBAL COMMUNITI ES SHALL BE DISTRIBU TED TO THE 15
692+TECHNICAL ASSISTANCE SUBACCOUNT . 16
693+
694+ (III) THE TECHNICAL ASSISTA NCE SUBACCOUNT MAY B E USED 17
695+TO PROVIDE FINANCIAL ASSISTANCE TO ENTITI ES SPECIFIED IN SUBP ARAGRAPH 18
696+(IV) OF THIS PARAGRAPH FO R THE PURPOSE OF PRO VIDING TECHNICAL 19
697+ASSISTANCE FOR PROJE CTS IN RURAL, SMALL, AND TRIBAL COMMUNITI ES, WITH 20
698+PRIORITY GIVEN TO EN TITIES PROVIDING TEC HNICAL ASSISTANCE FO R PROJECTS 21
699+IN DISADVANTAGED COMMUNI TIES AND COMMUNITIES DISPROPORTIONATELY 22
700+BURDENED BY ENVIRONM ENTAL HARMS AND RISK S, INCLUDING FINANCIAL 23
701+ASSISTANCE TO SUPPOR T THE DEVELOPMENT OF : 24
702+
703+ 1. AN APPLICATION FOR FI NANCIAL ASSISTANCE U NDER 25
704+THE WATER QUALITY FUND; OR 26
705+
706+ 2. A FINANCING PLAN UNDER THE WATER QUALITY 27
707+FUND. 28
708+
709+ (IV) THE FOLLOWING ENTITIE S ARE ELIGIBLE TO RE CEIVE 29
710+FINANCIAL ASSISTANCE UNDER THIS PARAGRAPH : 30
711+ 16 HOUSE BILL 653
712+
713+
714+ 1. A PUBLICLY OWNED TREAT MENT WORKS THAT 1
715+PRIMARILY SERVES A R URAL, SMALL, OR TRIBAL COMMUNITY ; 2
716+
717+ 2. A STATE, REGIONAL, INTERSTATE, OR MUNICIPAL 3
718+ENTITY; OR 4
719+
720+ 3. A NONPROFIT ORGANIZATI ON WORKING WITH A 5
721+RURAL, SMALL, TRIBAL, OR DISADVANTAGED COM MUNITY. 6
722+
723+ (d) Amounts in the Water Quality Fund may be used only: 7
724+
725+ (1) To make loans, on the condition that: 8
726+
727+ (i) The loans are made at or below market interest rates, including 9
728+interest free loans, at terms not to exceed the lesser of 30 years or the projected useful life 10
729+of the project; 11
730+
731+ (ii) Annual principal and interest payments will commence not later 12
732+than 1 year after completion of any wastewater facility and all loans will be fully amortized 13
733+on the expiration of the term of the loan; 14
734+
735+ (iii) The local government borrower will establish a dedicated source 15
736+of revenue for repayment of loans; 16
737+
738+ (iv) In the case of a wastewater facility owned by a borrower other 17
739+than a local government, the borrower will provide adequate security for repayment of 18
740+loans; and 19
741+
742+ (v) The Water Quality Fund will be credited with all payments of 20
743+principal and interest on all loans; 21
744+
745+ (2) To buy or refinance debt obligations of local governments at or below 22
746+market rates, if such debt obligations were incurred after March 7, 1985; 23
747+
748+ (3) To guarantee, or purchase insurance for, bonds, notes, or other 24
749+evidences of obligation issued by a local government if such action would improve credit 25
750+market access or reduce interest rates; 26
751+
752+ (4) As a source of revenue or security for the payment of principal and 27
753+interest on bonds issued by the Administration if the proceeds of the sale of such bonds will 28
754+be deposited in the Water Quality Fund; 29
755+
756+ (5) To earn interest on Water Quality Fund accounts; 30
757+
758+ (6) To establish a linked deposit program to promote loans for controlling 31
759+nonpoint sources of pollution and protecting the quality of the waters of the State, 32 HOUSE BILL 653 17
760+
761+
762+INCLUDING LOANS FOR FOREST RESTORATION O R THE CONSERVATION O F FOREST 1
763+LAND BY FEE OR EASEM ENT; 2
764+
765+ (7) TO PROVIDE LOANS FOR THE PROTECTION OF SO URCE WATER 3
766+AREAS OR CHESAPEAKE AND ATLANTIC COASTAL BAY WATERSHEDS THROUG H 4
767+PROPERTY ACQUISITION S OR EASEMENTS ; 5
768+
769+ (8) TO ESTABLISH A SPONSO RSHIP PROGRAM THAT A LLOWS A LOCAL 6
770+GOVERNMENT TO SERVE AS THE PRIMARY BORRO WER AND RECEIVE A LOA N FOR A 7
771+PUBLICLY OWNED TREAT MENT WORKS PROJECT A T A REDUCED INTEREST RATE IF 8
772+THE LOAN ALSO INCLUD ES FINANCING FOR A S PONSORED NONPOINT SO URCE 9
773+PROJECT MANAGED BY A N ORGANIZATION ; 10
774+
775+ (9) TO SUPPORT LONG –TERM OR PERMANENT GR EEN OR BLUE 11
776+INFRASTRUCTURE PROJECT S: 12
777+
778+ (I) THAT PROVIDE A WATER QUALITY BENEFIT TO 13
779+MARYLAND’S PORTION OF THE CHESAPEAKE BAY; 14
780+
781+ (II) THAT ARE PROPOSED AND CARRIED OUT BY AN EL IGIBLE 15
782+REGIONAL OR INTERSTA TE ENTITY IN THE SUSQUEHANNA RIVER WATERSHED ; 16
783+
784+ (III) ABOUT WHICH THE SECRETARY HAS CONSULT ED WITH THE 17
785+HEAD OF THE ENVIRONM ENTAL AGENCY IN WHIC H THE PROJECT IS LOC ATED; AND 18
786+
787+ (IV) FOR WHICH THE SECRETARY HAS DETERMI NED THE 19
788+ALLOCATION OF CREDIT S FOR THE CHESAPEAKE BAY TOTAL MAXIMUM DAI LY 20
789+LOAD’S WATERSHED IMPLEMEN TATION PLANS; 21
790+
791+ (10) TO ESTABLISH MASTER L EASE PURCHASE AGREEM ENTS WITH 22
792+STATE AGENCIES TO SUP PORT PROJECTS THAT E NHANCE WATER QUALITY ON 23
793+STATE LANDS; 24
794+
795+ (11) TO SUPPORT MULTIYEAR INITIATIVES AUTHORIZ ED UNDER TITLE 25
796+8, SUBTITLE 2A OF THE NATURAL RESOURCES ARTICLE THAT ALSO INVOL VE 26
797+FUNDING FROM : 27
798+
799+ (I) THE CHESAPEAKE AND ATLANTIC COASTAL BAYS 2010 28
800+TRUST FUND; 29
801+
802+ (II) A HAZARD MITIGATION PR OGRAM UNDER THE MARYLAND 30
803+EMERGENCY MANAGEMENT AGENCY; OR 31
804+ 18 HOUSE BILL 653
805+
806+
807+ (III) A CLIMATE RESILIENCE P ROGRAM UNDER THE NATIONAL 1
808+OCEANIC AND ATMOSPHERIC ADMINISTRATION ; 2
809+
810+ [(7)] (12) For the reasonable costs of administering the Water Quality 3
811+Fund and conducting activities under Title VI of the Federal Water Pollution Control Act; 4
812+
813+ [(8)] (13) For any other purpose authorized by Title VI of the Federal 5
814+Water Pollution Control Act or § 302 of the federal Safe Drinking Water Act; 6
815+
816+ [(9)] (14) To provide financial assistance in the form of grants, negative 7
817+interest loans, forgiveness of principal, subsidized interest rates, and any other form of 8
818+financial assistance as authorized or required by: 9
819+
820+ (i) The American Recovery and Reinvestment Act of 2009, as may 10
821+be amended and supplemented; 11
822+
823+ (ii) Title VI of the Federal Water Pollution Control Act; 12
824+
825+ (iii) § 302 of the federal Safe Drinking Water Act; or 13
826+
827+ (iv) Federal appropriations or authorization acts. 14
828+
829+ [(10)] (15) To provide loan guarantees for similar revolving funds 15
830+established by municipalities or intermunicipal agencies; and 16
831+
832+ [(11)] (16) To serve as guarantee for long–term Pay for Success contracts, 17
833+green bonds, or environmental impact bonds by any public, private, or nonprofit entity for 18
834+the purchase of outcomes that provide a water quality benefit. 19
835+
836+ (F) IN CREATING AN INTEND ED USE PLAN FOR THE WATER QUALITY FUND, 20
837+THE ADMINISTRATION SHALL PRIORITIZE: 21
838+
839+ (1) OPPORTUNITIES TO PROV IDE ASSISTANCE TO DI SADVANTAGED 22
840+COMMUNITIES OR COMMU NITIES DISPROPORTION ATELY BURDENED BY 23
841+ENVIRONMENTAL HARMS AND RISKS; AND 24
842+
843+ (2) GREEN AND BLUE INFRAS TRUCTURE, WITH PARTICULAR FOCU S 25
844+ON NATURAL AREAS OR NATURA L FEATURES. 26
845+
846+9–1605.1. 27
847+
848+ (a) (1) There is a Maryland Drinking Water Revolving Loan Fund. The 28
849+Drinking Water Loan Fund shall be maintained and administered by the Administration 29
850+in accordance with the provisions of this subtitle and such rules or program directives as 30
851+the Secretary or the Board may from time to time prescribe. 31
852+ HOUSE BILL 653 19
853+
854+
855+ (c) (1) The Administration may [from time to time] establish accounts and 1
856+subaccounts within the Drinking Water Loan Fund [as may be deemed desirable] to 2
857+[effectuate]: 3
858+
859+ (I) EFFECTUATE the purposes of this subtitle[, to comply]; 4
860+
861+ (II) COMPLY with the provisions of any bond resolution[, to meet]; 5
862+
863+ (III) MEET the requirements of any federal law, or of any federal 6
864+grant or award to the Drinking Water Loan Fund[, or to meet]; OR 7
865+
866+ (IV) MEET any rules or program directives established by the 8
867+Secretary or the Board. 9
868+
869+ (2) (I) THE ADMINISTRATION SHALL ESTABLISH A TECHNICAL 10
870+ASSISTANCE SUBACCOUN T WITHIN THE DRINKING WATER LOAN FUND. 11
871+
872+ (II) FEDERAL FUNDS DEPOSIT ED IN THE DRINKING WATER 12
873+LOAN FUND FOR THE PURPOSE OF PROVIDING TECHNIC AL ASSISTANCE TO SMA LL 13
874+DRINKING WATER SYSTE MS, AS DEFINED UNDER THE FEDERAL SAFE DRINKING 14
875+WATER ACT, SHALL BE DISTRIBUTED TO THE TECHNICAL ASS ISTANCE 15
876+SUBACCOUNT . 16
877+
878+ (III) THE TECHNICAL ASSISTA NCE SUBACCOUNT MAY B E USED 17
879+TO PROVIDE FINANCIAL ASSISTANCE TO ENTITI ES SPECIFIED IN SUBP ARAGRAPH 18
880+(IV) OF THIS PARAGRAPH FO R THE PURPOSE OF PRO VIDING TECHNICAL 19
881+ASSISTANCE TO SMALL DRINKING WATER SYSTE MS, WITH PRIORITY GIVEN TO 20
882+ENTITIES PROVIDING T ECHNICAL ASSISTANCE FOR SMALL DRINKING W ATER 21
883+SYSTEMS IN DISADVANT AGED COMMUNITIES OR COMMUNITIES 22
884+DISPROPORTIONATELY B URDENED BY ENVIRONME NTAL HARMS AND RISKS , 23
885+INCLUDING FINANCIAL ASSISTANCE FOR : 24
886+
887+ 1. ASSESSING RISKS FROM WATER PIPES MADE FRO M 25
888+LEAD; 26
889+
890+ 2. SUPPORTING THE DEVELO PMENT OF LEAD PIPE 27
891+INVENTORIES; 28
892+
893+ 3. SUPPORTING THE DEVELO PMENT OF AN 29
894+APPLICATION FOR FINA NCIAL ASSISTANCE UND ER THE DRINKING WATER LOAN 30
895+FUND; AND 31
896+
897+ 4. SUPPORTING THE DEVELO PMENT OF A FINANCING 32
898+PLAN UNDER THE DRINKING WATER LOAN FUND. 33 20 HOUSE BILL 653
899+
900+
901+
902+ (IV) THE FOLLOWING ENTITIE S ARE ELIGIBLE TO RE CEIVE 1
903+FINANCIAL ASSISTANCE UNDER THIS PARAGRAPH : 2
904+
905+ 1. A SMALL DRINKING WATER SYSTEM, AS DEFINED 3
906+UNDER THE FEDERAL SAFE DRINKING WATER ACT; 4
907+
908+ 2. A MULTIJURISDICTIONAL ENTITY; OR 5
909+
910+ 3. A NONPROFIT ORGANIZATI ON WORKING WITH A 6
911+RURAL, SMALL, TRIBAL, OR DISADVANTAGED COM MUNITY. 7
912+
913+ (d) Amounts in the Drinking Water Loan Fund may be used only: 8
914+
915+ (1) To make loans at or below market rates on the condition that: 9
916+
917+ (i) The local government borrower will establish a dedicated source 10
918+of revenue; 11
919+
920+ (ii) In the case of a water supply system owned by a borrower other 12
921+than a local government, the borrower shall provide adequate security for the repayment 13
922+of the loan; 14
923+
924+ (iii) The Drinking Water Loan Fund will be credited with all 15
925+payments of the loan; 16
926+
927+ (iv) The loans are made at terms not to exceed: 17
928+
929+ 1. 30 years; or 18
930+
931+ 2. With respect to disadvantaged communities as defined in 19
932+the federal Safe Drinking Water Act, the lesser of 40 years after project completion or the 20
933+design life of the project; and 21
934+
935+ (v) Annual principal and interest payments will commence not later 22
936+than 18 months after completion of any drinking water facility and all loans will be fully 23
937+amortized on the expiration of the term of the loan; 24
938+
939+ (2) To buy or refinance debt obligations of local governments issued by a 25
940+local government for the purposes of financing all or a portion of the cost of a water supply 26
941+system at or below market rates, if such debt obligations were incurred after July 1, 1993; 27
942+
943+ (3) To guarantee or purchase insurance for bonds, notes, or other evidences 28
944+of indebtedness issued by a local government for the purposes of financing all or a portion 29
945+of the cost of a water supply system, if such action would improve credit market access or 30
946+reduce interest rates; 31 HOUSE BILL 653 21
947+
948+
949+
950+ (4) As a source of revenue or security for the payment of principal and 1
951+interest on bonds issued by the Administration if the proceeds of the sale of such bonds will 2
952+be deposited in the Drinking Water Loan Fund; 3
953+
954+ (5) To earn interest on Drinking Water Loan Fund accounts; 4
955+
956+ (6) For the reasonable costs of administering the Drinking Water Loan 5
957+Fund and conducting activities under any federal law that may apply to federal deposits to 6
958+the Drinking Water Loan Fund; 7
959+
960+ (7) To establish a linked deposit program for loans in accordance with this 8
961+subtitle and the federal Safe Drinking Water Act, INCLUDING LOANS FOR : 9
962+
963+ (I) CONTROLLING NONPOINT SOURCES OF POLLUTION AND 10
964+PROTECTING THE QUALI TY OF STATE WATERS; 11
965+
966+ (II) PROTECTING OR ACQUIRI NG FORESTS OR WETLAN DS BY 12
967+FEE OR EASEMENT ; OR 13
968+
969+ (III) RESTORING FORESTS ; 14
970+
971+ (8) For loan subsidies for disadvantaged communities as provided by the 15
972+federal Safe Drinking Water Act, including but not limited to loan forgiveness, provided 16
973+that such loan subsidies comply with the limitations and requirements set forth in the 17
974+federal Safe Drinking Water Act and any federal appropriations or authorization acts; 18
975+
976+ (9) TO ESTABLISH A SPONSO RSHIP PROGRAM THAT A LLOWS A LOCAL 19
977+GOVERNMENT TO SERVE AS THE PRIMARY BORRO WER AND RECEIVE A LO AN FOR A 20
978+PUBLICLY OWNED WATER SUPPLY SYSTEM AT A REDUCED IN TEREST RATE IF THE 21
979+LOAN ALSO INCLUDES F INANCING FOR A SPONS ORED NONPOINT SOURCE PROJECT 22
980+MANAGED BY AN ORGANI ZATION; 23
981+
982+ (10) WITH RESPECT TO ANY F EDERAL FUNDS DEPOSIT ED IN THE 24
983+DRINKING WATER LOAN FUND, TO PRIORITIZE SUPPOR T FOR LOCAL 25
984+GOVERNMENTS , COMMUNITY WATER SYSTEMS , AND OTHER ELIGIBLE P ARTNERS BY: 26
985+
986+ (I) SERVING AS A GUARANTE E FOR LONG –TERM 27
987+PAY–FOR–SUCCESS CONTRACTS FO R THE PURCHASE OF EN VIRONMENTAL 28
988+OUTCOMES THAT PROVID E WATER QUALITY BENE FITS; 29
989+
990+ (II) SUPPORTING THE DELINE ATION, ASSESSMENT , OR 30
991+UPDATED ASSESSMENT OF S OURCE WATER PROTECTI ON AREAS AND THE 31
992+IMPLEMENTATION OF WE LL HEAD PROTECTION P ROGRAMS, INCLUDING THROUGH 32
993+GRANTS AND TECHNICAL ASSISTANCE; OR 33 22 HOUSE BILL 653
994+
995+
996+
997+ (III) SUPPORTING LOANS AND LOAN GUARANTEES FOR THE 1
998+PROTECTION OF SOURCE WATER AREAS OR THE CHESAPEAKE AND ATLANTIC 2
999+COASTAL BAYS WATERSHEDS THROU GH PROPERTY ACQUISIT IONS OR EASEMENTS 3
1000+FOR THE PURPOSE OF C ONTROLLING NONPOINT SOURCES OF POLLUTION ; 4
1001+
1002+ (11) TO SUPPORT MULTIYEAR INITIATIVES AUTHORIZ ED UNDER TITLE 5
1003+8, SUBTITLE 2A OF THE NATURAL RESOURCES ARTICLE THAT ALSO INV OLVE 6
1004+FUNDING FROM THE CHESAPEAKE AND ATLANTIC COASTAL BAYS 2010 TRUST 7
1005+FUND; 8
1006+
1007+ (12) TO PROVIDE FINANCIAL ASSISTANCE TO DISADV ANTAGED 9
1008+COMMUNITIES AS DEFIN ED IN THE FEDERAL SAFE DRINKING WATER ACT IN THE 10
1009+FORM OF PLANNING PHA SE GRANTS OR DESIGN PHASE GRANTS ; 11
1010+
1011+ [(9)] (13) For any other purpose authorized for any federal funds deposited 12
1012+in the Drinking Water Loan Fund including, without limitation, any purpose authorized by 13
1013+the federal Safe Drinking Water Act, including source water protection expenditures 14
1014+eligible for assistance from the Drinking Water Loan Fund; and 15
1015+
1016+ [(10)] (14) To provide financial assistance in the form of grants, negative 16
1017+interest loans, forgiveness of principal, subsidized interest rates, and any other form of 17
1018+financial assistance as authorized or required by: 18
1019+
1020+ (i) The American Recovery and Reinvestment Act of 2009, as may 19
1021+be amended and supplemented; 20
1022+
1023+ (ii) §§ 302 and 1452 of the federal Safe Drinking Water Act; 21
1024+
1025+ (iii) Title VI of the Federal Water Pollution Control Act; or 22
1026+
1027+ (iv) Federal appropriations or authorization acts. 23
1028+
1029+ (E) IN CREATING AN INTEND ED USE PLAN FOR THE DRINKING WATER LOAN 24
1030+FUND, THE ADMINISTRATION SHALL PRIORITIZE OPPORTUNI TIES TO PROVIDE 25
1031+ASSISTANCE TO DISADV ANTAGED COMMUNITIES OR COMMUNITIES 26
1032+DISPROPORTIONATELY B URDENED BY ENVIRONME NTAL HARMS AND RISKS AND 27
1033+SUPPORT INNOVATIVE F INANCING PARTNE RSHIPS TO ADDRESS EN VIRONMENTAL 28
1034+JUSTICE ISSUES AS DE FINED IN § 1–701 OF THIS ARTICLE , INCLUDING THROUGH 29
1035+INVESTMENT IN : 30
1036+
1037+ (1) WATER INFRASTRUCTURE LOANS DESIGNED TO EN SURE FAIRER 31
1038+AND MORE JUST OPPORT UNITIES TO IMPROVE C OMMUNITY HEALTH THRO UGH 32
1039+BETTER WATER SERVICE; 33
1040+ HOUSE BILL 653 23
1041+
1042+
1043+ (2) MUNICIPAL CONSOLIDATI ON EFFORTS UNDER § 9–707 OF THIS 1
1044+TITLE; 2
1045+
1046+ (3) TOXIC LEAD SERVICE LI NE REPLACEMENT ; AND 3
1047+
1048+ (4) GREEN INFRASTRUCTURE THAT CONTRIBUTES TO IMPROVED 4
1049+WATER QUALITY AND RE MEDIATES OR MITIGATE S ENVIRONMENTAL AND HEALTH 5
1050+HAZARDS IN DISADVANT AGED COMMUNITIES OR COMMUNITIES 6
1051+DISPROPORTIONATELY B URDENED BY ENVIRONME NTAL HARMS AND RISKS . 7
1052+
1053+ [(e)] (F) The costs of administering the Drinking Water Loan Fund shall be paid 8
1054+from federal grants and awards, from bond sale proceeds, and from amounts received from 9
1055+borrowers pursuant to loan agreements, and may not be paid from any State [moneys] 10
1056+MONEY appropriated to the Drinking Water Loan Fund, except general funds of the State 11
1057+used to match federal grants and awards to the Drinking Water Loan Fund. 12
1058+
1059+9–1617.2. 13
1060+
1061+ ON OR BEFORE NOVEMBER 1 EACH YEAR , BEGINNING IN 2024, THE 14
1062+ADMINISTRATION SHALL REPORT TO THE GENERAL ASSEMBLY, IN ACCORDANCE 15
1063+WITH § 2–1257 OF THE STATE GOVERNMENT ARTICLE, ON THE AMOUNTS 16
1064+ALLOCATED BY TYPE OF ASSISTANCE PROVIDED UNDER THE WATER QUALITY FUND 17
1065+AND THE DRINKING WATER LOAN FUND TO SUPPORT EACH TYPE OF GREEN AND 18
1066+BLUE INFRASTRUCTURE . 19
1067+
1068+9–1622. 20
1069+
1070+ This subtitle may be cited as the Maryland Water [Quality] INFRASTRUCTURE 21
1071+Financing Administration Act. 22
1072+
1073+Article – Natural Resources 23
1074+
1075+1–110. 24
1076+
1077+ (A) THE DEPARTMENT MAY ENTER INTO PARTNERSHIPS , THROUGH 25
1078+FORMAL CONTRACTS OR MEMORANDA OF UNDERST ANDING, WITH PRIVATE SECTOR 26
1079+ORGANIZATIONS WITH E XPERIENCE IN CARBON OFFSET MARKETS OR PR OGRAMS IN 27
1080+ORDER TO: 28
1081+
1082+ (1) CREATE STATEWIDE OR R EGIONAL PARTNERSHIPS FOR THE 29
1083+PURPOSE OF MINIMIZIN G THE COSTS AND MAXI MIZING THE BENEFITS OF 30
1084+ENROLLING PRIVATE AN D PUBLIC LANDS IN CA RBON OFFSET MARKETS ; AND 31
1085+ 24 HOUSE BILL 653
1086+
1087+
1088+ (2) ASSIST PRIVATE LANDOW NERS WITH THE AGGREG ATION OF 1
1089+PROJECTS TO MAKE THE PROJECTS MORE SALEAB LE IN CARBON OFFSET MARKET 2
1090+PROGRAMS. 3
1091+
1092+ (B) TO LEARN ABOUT ESTABL ISHING AND VERIFYING CARBON CREDITS , ON 4
1093+OR BEFORE JULY 1, 2024, THE DEPARTMENT, IN CONSULTATION WITH 5
1094+APPROPRIATE EXPERTS , SHALL BEGIN IMPLEMEN TATION OF, OR OTHERWISE 6
1095+SUPPORT: 7
1096+
1097+ (1) AT LEAST ONE CARBON O FFSET PROJECT ON STATE LAND; AND 8
1098+
1099+ (2) AT LEAST ONE CARBON O FFSET PROJECT IN A M ARINE OR 9
1100+ESTUARINE HABITAT . 10
1101+
1102+3–103. 11
1103+
1104+ (a) (1) There is a body politic and corporate known as the “Maryland 12
1105+Environmental Service”. 13
1106+
1107+ (2) The Service is an instrumentality of the State and a public corporation 14
1108+by that name, style, and title, and the exercise by the Service of the powers conferred by 15
1109+this subtitle is the performance of an essential governmental function of the State. 16
1110+
1111+ (g) (1) The Service is exempt from the provisions of Subtitles 3, 4, 5, and 7 of 17
1112+Title 4 of the State Finance and Procurement Article. 18
1113+
1114+ (2) The Service is exempt from the provisions of Division II of the State 19
1115+Finance and Procurement Article, but is not exempt from Subtitle 3 of Title 14, Subtitle 4 20
1116+of Title 12, Title 16, and Title 17 of the State Finance and Procurement Article. 21
1117+
1118+ (3) (i) Except as otherwise provid ed in this paragraph, all 22
1119+procurements by the Service for materials, equipment, services, or supplies performed or 23
1120+furnished in connection with the planning, development, design, equipping, construction, 24
1121+or operation of any project owned or controlled by the Service, shall be awarded in 25
1122+accordance with rules and regulations adopted pursuant to the Administrative Procedure 26
1123+Act. 27
1124+
1125+ (ii) The Service may procure materials, equipment, services, or 28
1126+supplies by utilizing: 29
1127+
1128+ 1. Competitive sealed bids; 30
1129+
1130+ 2. Competitive sealed proposals; 31
1131+
1132+ 3. Sole source procurement; 32
1133+ HOUSE BILL 653 25
1134+
1135+
1136+ 4. Intergovernmental cooperative purchasing agreements; 1
1137+
1138+ 5. A small procurement process, if the procurement is 2
1139+estimated by the Service to result in an expenditure of $25,000 or less; [or] 3
1140+
1141+ 6. An emergency procurement process, if the procurement is 4
1142+necessary to avoid or to mitigate serious damage to public health, safety, or welfare; OR 5
1143+
1144+ 7. PAY–FOR–SUCCESS CONTRACTING UNDER § 13–112.1 6
1145+OF THE STATE FINANCE AND PROCUREMENT ARTICLE. 7
1146+
1147+ (4) (i) The approval of the Board shall be required on any 8
1148+nonemergency expenditure that exceeds $200,000. 9
1149+
1150+ (ii) The Service shall notify the Board of any nonemergency 10
1151+expenditure that exceeds $25,000. 11
1152+
1153+ (5) The Service may adopt rules and regulations to provide a process to 12
1154+resolve disputes between the Service and its contractors, that may include alternative 13
1155+dispute resolution by the parties to the dispute. 14
1156+
1157+3–201. 15
1158+
1159+ (a) (1) There is a Maryland Environmental Trust established to conserve, 16
1160+improve, stimulate, and perpetuate the aesthetic, natural, health and welfare, scenic, and 17
1161+cultural qualities of the environment, including, but not limited to land, water, air, wildlife, 18
1162+scenic qualities, open spaces, buildings or any interest therein, and other appurtenances 19
1163+pertaining in any way to the State. 20
1164+
1165+ (2) Through educational and other means, the Trust shall encourage and 21
1166+motivate the populace of the State and others to do so and shall promote continuing interest 22
1167+in and the study of these matters. 23
1168+
1169+ (3) The purpose of the Trust is of general benefit to the citizens of the State, 24
1170+and it is charitable in nature. 25
1171+
1172+ (b) The Trust has perpetual existence subject to modification or termination by 26
1173+the General Assembly if necessary to effectuate its purpose or when and if its substantial 27
1174+purpose ceases. 28
1175+
1176+ (C) (1) IN THIS SUBSECTION , “ECOSYSTEM SERVICES ” INCLUDES: 29
1177+
1178+ (I) CLIMATE RESILIENCE ; 30
1179+
1180+ (II) CARBON SEQUESTRATION ; 31
1181+ 26 HOUSE BILL 653
1182+
1183+
1184+ (III) THE PROVISION OF WILD LIFE HABITAT; 1
1185+
1186+ (IV) CONTRIBUTIONS TO FORE ST HEALTH; AND 2
1187+
1188+ (V) THE PROTECTION OR RES TORATION OF WETLANDS . 3
1189+
1190+ (2) AN EASEMENT APPROVED BY THE TRUST MAY ALLOW FOR THE 4
1191+POTENTIAL OF ECONOMI C RETURN FROM THE PR OTECTION, MANAGEMENT , 5
1192+MAINTENANCE , OR IMPROVEMENT OF EC OSYSTEM SERVICES PRO VIDED BY THE 6
1193+PROPERTY, SO LONG AS THE TRUST DETERMINES THOSE USES DO NOT IM PAIR OR 7
1194+INTERFERE WITH THE C ONSERVATION VALUES A ND PURPOSES OF THE E ASEMENT 8
1195+AND ARE OTHERWISE CO NSISTENT WITH THE TRUST’S POLICIES RELATED T O 9
1196+ECOSYSTEM SERVICES . 10
1197+
1198+5–102. 11
1199+
1200+ (b) It is the policy of the State to encourage the retention and sustainable 12
1201+management of forest lands by: 13
1202+
1203+ (1) Achieving no net loss of forest; 14
1204+
1205+ (2) Affording due consideration to the protection and retention of forests in 15
1206+the State through existing land conservation programs where they have the highest value 16
1207+in terms of promoting the State’s compliance with its clean water goals under the 2014 17
1208+Chesapeake Bay Watershed Agreement and the 2007 Forestry Conservation Initiative; 18
1209+
1210+ (3) Enhancing the retention of privately owned forest lands through 19
1211+research–based educational outreach efforts to landowners by the State’s forest 20
1212+conservancy district boards; 21
1213+
1214+ (4) Developing financial incentives to encourage landowners to retain and 22
1215+manage their forests sustainably and in a manner that is consistent with a forest 23
1216+stewardship plan, INCLUDING BY ALLOWIN G LANDOWNERS TO USE FORESTS ON 24
1217+STATE LANDS THAT ARE REFORESTED OR AFFORE STED UNDER SUBTITLE 16 OF 25
1218+THIS TITLE AFTER JULY 1, 2022, TO SATISFY BUFFER OR INSURANCE PROVISIONS 26
1219+REQUIRED BY REGISTRI ES OR PROTOCOLS ASSOCIATED WITH PRIVATE FOREST 27
1220+CARBON CREDIT TRANSA CTIONS; 28
1221+
1222+ (5) Promoting renewable energy policies and markets with increased 29
1223+emphasis on the use of in–State produced woody biomass; 30
1224+
1225+ (6) Ensuring dual certification of the State’s forests by the Forest 31
1226+Stewardship Council and the Sustainable Forestry Initiative; 32
1227+
1228+ (7) Recognizing the importance of: 33
1229+ HOUSE BILL 653 27
1230+
1231+
1232+ (i) A viable forest products industry to the economies of rural 1
1233+Maryland; 2
1234+
1235+ (ii) Continued development of fiber products; and 3
1236+
1237+ (iii) Maryland’s green infrastructure; and 4
1238+
1239+ (8) Developing and enhancing programs with a sustainable forestry 5
1240+component, including a forest mitigation banking system, a carbon credit or carbon 6
1241+sequestration program, a clean water credit trading system, an environmental services 7
1242+credit trading program, and a renewable energy credit trading system. 8
1243+
1244+5–9A–05. 9
1245+
1246+ (P) (1) IN THIS SUBSECTION , “ECOSYSTEM SERVICES ” INCLUDES: 10
1247+
1248+ (I) CLIMATE RESILIENCE ; 11
1249+
1250+ (II) CARBON SEQUESTRATION ; 12
1251+
1252+ (III) THE PROVISION OF WILD LIFE HABITAT; 13
1253+
1254+ (IV) CONTRIBUTIONS TO FORE ST HEALTH; AND 14
1255+
1256+ (V) THE PROTECTION OR RES TORATION OF WETLANDS . 15
1257+
1258+ (2) AN EASEMENT ACQUIRED UNDER THIS SUBTITLE MAY ALLOW FOR 16
1259+THE POTENTIAL OF ECO NOMIC RETURN FROM TH E PROTECTION , MANAGEMENT , 17
1260+MAINTENANCE , OR IMPROVEMENT OF EC OSYSTEM SERVICES PRO VIDED BY THE 18
1261+PROPERTY, SO LONG AS THE DEPARTMENT DETERMINES : 19
1262+
1263+ (I) THOSE USES AFFIRMATIV ELY INCREASE THE 20
1264+CONSERVATION ATTRIBU TES OF THE PROPERTY BEYOND THE REQUIREME NTS OF 21
1265+THE EASEMENT ; AND 22
1266+
1267+ (II) ANY CREDITS CREATED I N ACCORDANCE WITH TH IS 23
1268+SUBSECTION ARE USED ONLY: 24
1269+
1270+ 1. TO MITIGATE OFFSITE E NVIRONMENTAL DAMAGE IN 25
1271+A PRIORITY FUNDING A REA, AS DEFINED IN § 5–7B–02 OF THE STATE FINANCE AND 26
1272+PROCUREMENT ARTICLE; OR 27
1273+
1274+ 2. IN A MANNER THE DEPARTMENT DETERMINES TO BE 28
1275+CONSISTENT WITH THE APPLICABLE LOCAL COM PREHENSIVE PLAN AND STATE AND 29
1276+LOCAL OBJECTIVES FOR LAND PROTECTION . 30 28 HOUSE BILL 653
1277+
1278+
1279+
1280+8–203.1. 1
1281+
1282+ THE SECRETARY: 2
1283+
1284+ (1) USING ELIGIBLE FUNDIN G SOURCES , MAY PURCHASE 3
1285+ENVIRONMENTAL OUTCOM ES, AS DEFINED IN § 8–2A–01 OF THIS TITLE, THAT 4
1286+PROVIDE FOR COST –EFFECTIVE LONG –TERM OR PERMANENT GR EEN OR BLUE 5
1287+INFRASTRUCTURE PROJE CTS THAT: 6
1288+
1289+ (I) IMPROVE THE WATER QUA LITY OF MARYLAND’S PORTION 7
1290+OF THE CHESAPEAKE BAY; AND 8
1291+
1292+ (II) ARE LOCATED IN THE SUSQUEHANNA RIVER WATERSHED ; 9
1293+AND 10
1294+
1295+ (2) SHALL CONSULT WITH TH E SECRETARY OF THE E NVIRONMENTAL 11
1296+AGENCY OF THE STATE IN WHICH THE PROJECT IS LOCATED TO ENSURE THAT: 12
1297+
1298+ (I) THE STATE SUPPORTS TH E PROJECT; AND 13
1299+
1300+ (II) FOR THE PURCHASED ENV IRONMENTAL OUTCOMES , THERE 14
1301+IS MUTUAL AGREEMENT AS TO THE ALLOCATION OF CRE DITS TO THE CHESAPEAKE 15
1302+BAY TOTAL MAXIMUM DAI LY LOAD’S WATERSHED IMPLEMEN TATION PLANS. 16
1303+
1304+8–207. 17
1305+
1306+ THE DEPARTMENT MAY NOT PR OHIBIT OR LIMIT, THROUGH ANY CONTRACT , 18
1307+EASEMENT, OR AGREEMENT , A PARTICIPANT IN A P ROGRAM ADMINISTERED BY THE 19
1308+DEPARTMENT FROM PARTICIP ATING IN AND RECEIVI NG COMPENSATION FROM 20
1309+GREENHOUSE GAS MARKE TS, CARBON CREDITS , OR SOIL CARBON PROGR AMS, IF 21
1310+THE PURPOSE OF THE C OMPENSATION IS TO AC HIEVE ADDITIONAL 22
1311+ENVIRONMENTAL OUTCOM ES THAT ARE CONSISTE NT WITH THE STATE’S 23
1312+CHESAPEAKE BAY CONSERVATION GOAL S. 24
1313+
1314+8–2A–01. 25
1315+
1316+ (a) In this subtitle the following words have the meanings indicated. 26
1317+
1318+ (b) “AGGREGATOR ” MEANS A PERSON THAT FACILITATES OR COORD INATES 27
1319+THE ESTABLISHMENT OF PRACTICES OR PROJECT S THAT: 28
1320+
1321+ (1) ARE IMPLEMENTED BY TH E PERSON OR BY OTHER S; 29
1322+
1323+ (2) PRODUCE A QUANTIFIABL E ENVIRONMENTAL OUTC OME; 30 HOUSE BILL 653 29
1324+
1325+
1326+
1327+ (3) ARE REGISTERED BY THE PERSON; AND 1
1328+
1329+ (4) ARE MADE AVAILABLE FO R PURCHASE BY THE STATE. 2
1330+
1331+ (C) “BayStat Program” means the program established under § 8–2A–03 of this 3
1332+subtitle. 4
1333+
1334+ (D) “ENVIRONMENTAL OUTCOME ” MEANS A COMMODITY TH AT IS MODELED 5
1335+OR DIRECTLY MEASURED AS A SINGLE, QUANTIFIABLE , AND CERTIFIED UNIT O F 6
1336+IMPROVEMENT TO THE E NVIRONMENT , INCLUDING A NUTRIENT OR CARBON 7
1337+BENEFIT. 8
1338+
1339+ (E) “EVALUATOR” MEANS A PERSON OTHER THA N AN AGGREGATOR THAT 9
1340+DETERMINES WHETHER E NVIRONMENTAL OUTCOME S HAVE BEEN ACHIEVED BASED 10
1341+ON DEFINED PERFORMAN CE MEASURES . 11
1342+
1343+ [(c)] (F) (1) “Nonpoint source pollution control project” means a project to 12
1344+improve water quality by a reduction of nitrogen, phosphorus, or sediment pollution. 13
1345+
1346+ (2) “Nonpoint source pollution control project” includes: 14
1347+
1348+ (i) An agricultural best management implementation practice, 15
1349+including cover crops, riparian forested buffer, manure processing, grassed waterways, 16
1350+animal waste storage structures, and livestock fencing; 17
1351+
1352+ (ii) An urban or suburban stormwater practice; 18
1353+
1354+ (iii) A sustainable forest management practice, including a forest 19
1355+stewardship plan or a nonornamental urban and suburban tree planting project; 20
1356+
1357+ (iv) Stream and wetland restoration; 21
1358+
1359+ (v) Riparian buffer planting; 22
1360+
1361+ (vi) A project that demonstrates the effectiveness of an innovative 23
1362+nonpoint source pollution reduction measure provided that the measure is capable of 24
1363+integration into existing nonpoint source pollution programs; 25
1364+
1365+ (vii) Technical assistance necessary to implement a nonpoint source 26
1366+pollution control project; 27
1367+
1368+ (viii) Improvement of a municipal park located on or adjacent to a 28
1369+waterway, provided that the improvement is limited to state–of–the–art and sustainable 29
1370+nonpoint source pollution control measures that demonstrably improve water quality by 30
1371+reducing nitrogen, phosphorus, and sediment pollution; and 31 30 HOUSE BILL 653
1372+
1373+
1374+
1375+ (ix) Strategic monitoring of water quality improvements from 1
1376+nonpoint source pollution control projects that have been funded, in whole or in part, with 2
1377+grants from the Trust Fund. 3
1378+
1379+ (G) “QUANTIFICATION PLAN ” MEANS A PLAN IN WHIC H AN AGGREGATOR 4
1380+DESCRIBES: 5
1381+
1382+ (1) THE METHOD THAT WILL BE USED TO MEASURE O R MODEL 6
1383+ENVIRONMENTAL OUTCOM ES AND CO–BENEFITS; 7
1384+
1385+ (2) THE COMPLIANCE MONITO RING THAT WILL OCCUR TO ENSURE 8
1386+THAT THE PROPOSED AC TIONS ARE TAKEN AND MAINTAINED OVER THE LIFE OF THE 9
1387+PROJECT; 10
1388+
1389+ (3) VERIFICATION STEPS TH AT WILL BE CARRIED O UT BY THE STATE 11
1390+OR AN EVALU ATOR TO CONFIRM MODE L RESULTS OR ACCURAT E MEASUREMENT OF 12
1391+ENVIRONMENTAL OUTCOM ES; AND 13
1392+
1393+ (4) THE TIMELINE FOR PROP OSED PAYMENTS UNDER A CONTRACT 14
1394+WITH THE STATE. 15
1395+
1396+ [(d)] (H) “Trust Fund” means the Chesapeake and Atlantic Coastal Bays 2010 16
1397+Trust Fund. 17
1398+
1399+ [(e)] (I) “Watershed implementation plan” means a plan to achieve the nutrient 18
1400+and sediment limits required under the Chesapeake Bay total maximum daily load. 19
1401+
1402+8–2A–03. 20
1403+
1404+ (a) (1) There is a BayStat Program to: 21
1405+
1406+ (i) Measure and evaluate efforts to restore the Chesapeake and 22
1407+Atlantic Coastal Bays; and 23
1408+
1409+ (ii) Administer the Trust Fund. 24
1410+
1411+ (2) The BayStat Subcabinet shall oversee the administration of the 25
1412+BayStat Program. 26
1413+
1414+ (3) The BayStat Subcabinet is composed of: 27
1415+
1416+ (i) The Secretary of Natural Resources; 28
1417+
1418+ (ii) The Secretary of the Environment; 29
1419+ HOUSE BILL 653 31
1420+
1421+
1422+ (iii) The Secretary of Planning; 1
1423+
1424+ (iv) The Secretary of Agriculture; 2
1425+
1426+ (v) The President of the University of Maryland Center for 3
1427+Environmental Science; 4
1428+
1429+ (vi) The Dean of the College of Agriculture and Natural Resources at 5
1430+the University of Maryland, College Park Campus; and 6
1431+
1432+ (vii) The chair of the Critical Area Commission for the Chesapeake 7
1433+and Atlantic Coastal Bays. 8
1434+
1435+ (b) The BayStat Program shall: 9
1436+
1437+ (1) Provide accurate and timely data to policymakers and the public about 10
1438+the efficacy and cost–effectiveness of local, State, and federal programs to restore the 11
1439+Chesapeake and Atlantic Coastal Bays; 12
1440+
1441+ (2) Track and assess the progress of State and federal programs to improve 13
1442+the health of the Chesapeake and Atlantic Coastal Bays; 14
1443+
1444+ (3) Assess the effectiveness of enforcement programs in curbing pollution 15
1445+and achieving Chesapeake and Atlantic Coastal Bays restoration goals and institute 16
1446+actions to improve the effectiveness of enforcement programs; 17
1447+
1448+ (4) Adopt measurable goals for Chesapeake and Atlantic Coastal Bays 18
1449+restoration; 19
1450+
1451+ (5) Identify new threats to the health of the Chesapeake and Atlantic 20
1452+Coastal Bays; 21
1453+
1454+ (6) Increase public awareness of, and participation in, efforts to restore the 22
1455+vitality of the Chesapeake and Atlantic Coastal Bays; and 23
1456+
1457+ (7) Direct the administration of the Trust Fund. 24
1458+
1459+ (c) The BayStat Subcabinet shall: 25
1460+
1461+ (1) Report annually to the public regarding: 26
1462+
1463+ (i) The health of the Chesapeake Bay tributary basin; 27
1464+
1465+ (ii) The health of the Atlantic Coastal Bays and their tributaries; 28
1466+
1467+ (iii) The status of local, State, and federal programs to restore the 29
1468+Chesapeake and Atlantic Coastal Bays; and 30 32 HOUSE BILL 653
1469+
1470+
1471+
1472+ (iv) Estimated nutrient reductions achieved through projects 1
1473+financed by the Trust Fund; and 2
1474+
1475+ (2) (i) Develop an annual work plan that identifies the planned work to 3
1476+be funded with money from the Trust Fund for the next fiscal year, including annual 4
1477+nutrient and sediment reduction targets, performance measures, and accountability 5
1478+criteria; and 6
1479+
1480+ (ii) Develop an annual expenditure plan that identifies planned 7
1481+expenditures for the work plan and includes an accounting of all [moneys] MONEY 8
1482+distributed from the Trust Fund in the previous fiscal year. 9
1483+
1484+ (d) The Governor shall submit the annual work and expenditure plans to the 10
1485+General Assembly as part of the annual budget submission. 11
1486+
1487+ (e) (1) On an annual basis the BayStat Subcabinet shall prepare a final work 12
1488+and expenditure plan based on the budget approved by the General Assembly. 13
1489+
1490+ (2) BEGINNING WITH THE PL AN PREPARED FOR FISC AL YEAR 2024, 14
1491+THE PLAN SHALL BE IN FORMED BY THE ANALYS IS CARRIED OUT BY TH E BAYSTAT 15
1492+PROGRAM SCIENTIFIC ADVISORY PANEL UNDER § 8–2A–04(G)(4)(VII) OF THIS 16
1493+SUBTITLE. 17
1494+
1495+8–2A–04. 18
1496+
1497+ (a) The BayStat Program shall direct the administration of the Trust Fund in 19
1498+accordance with this section. 20
1499+
1500+ (b) (1) The BayStat Program shall implement nonpoint source pollution 21
1501+reduction measures to: 22
1502+
1503+ (i) Support State and local watershed implementation plans by 23
1504+targeting limited financial resources on the most effective nonpoint source pollution control 24
1505+projects; and 25
1506+
1507+ (ii) Improve the health of the Atlantic Coastal Bays and their 26
1508+tributaries by targeting funds, geographically and by practice, to proven, scientifically 27
1509+based projects that provide the most cost–effective and measurable water quality benefits 28
1510+to the Atlantic Coastal Bays and their tributaries. 29
1511+
1512+ (2) To the maximum extent practicable, the BayStat Program shall 30
1513+distribute the Trust Fund [moneys] MONEY on a competitive basis. 31
1514+
1515+ (c) (1) The BayStat Program shall distribute funds from the Trust Fund to the 32
1516+BayStat Subcabinet agencies in accordance with the final work and expenditure plans. 33 HOUSE BILL 653 33
1517+
1518+
1519+
1520+ (2) The BayStat Subcabinet agencies shall administer the funds in 1
1521+accordance with the final work and expenditure plans, including the distribution of funds: 2
1522+
1523+ (i) Through grants to: 3
1524+
1525+ 1. Counties; 4
1526+
1527+ 2. Bicounty agencies; 5
1528+
1529+ 3. Municipalities; 6
1530+
1531+ 4. Forest conservancy district boards; 7
1532+
1533+ 5. Soil conservation districts; 8
1534+
1535+ 6. Academic institutions; and 9
1536+
1537+ 7. Nonprofit organizations having a demonstrated ability to 10
1538+implement nonpoint source pollution control projects; 11
1539+
1540+ (ii) To the Chesapeake and Atlantic Coastal Bays Nonpoint Source 12
1541+Fund established under § 9–1605.3 of the Environment Article; 13
1542+
1543+ (iii) To the Maryland Agricultural Cost–Share Program established 14
1544+under Title 8, Subtitle 7 of the Agriculture Article for nonpoint source pollution control 15
1545+projects; 16
1546+
1547+ (iv) To the Green Shores Program established under § 5–429 of this 17
1548+article; [and] 18
1549+
1550+ (v) To the Mel Noland Woodland Incentives Fund established under 19
1551+§ 5–307 of this article; AND 20
1552+
1553+ (VI) SUBJECT TO PARAGRAPH (4) OF THIS SUBSECTION , 21
1554+THROUGH THE PROCUREM ENT OF NUTRIENT – OR SEDIMENT –RELATED 22
1555+ENVIRONMENTAL OUTCOMES U NDER A PAY –FOR–SUCCESS CONTRACT OR ANY 23
1556+OTHER PROCUREMENT ME THOD AUTHORIZED UNDE R DIVISION II OF THE STATE 24
1557+FINANCE AND PROCUREMENT ARTICLE. 25
1558+
1559+ (3) [(i)] The BayStat Program shall [develop]: 26
1560+
1561+ (I) DEVELOP solicitations, guidelines, and applications for Trust 27
1562+Fund grants AND CONTRACTS that shall include consideration of the extent to which a 28
1563+proposed project, both geographically and by practice, will deliver the greatest, most 29 34 HOUSE BILL 653
1564+
1565+
1566+cost–effective, and measurable nonpoint source pollution reduction per Trust Fund 1
1567+dollar[.]; AND 2
1568+
1569+ (ii) [The BayStat Program shall] IN EVALUATING TRUST FUND 3
1570+APPLICATIONS, encourage and consider [multi–year]: 4
1571+
1572+ 1. MULTI–YEAR, multi–partner proposals, local match or 5
1573+cost–share agreements, or similar actions proposed by [a grant] AN applicant [in 6
1574+evaluating a Trust Fund grant application]; 7
1575+
1576+ 2. PROJECTS THAT , IN ADDITION TO PROVI DING 8
1577+COST–EFFECTIVE AND MEASUR ABLE NONPOINT SOURCE POLLUTION RED UCTIONS, 9
1578+PROVIDE CO–BENEFITS INCLUDING : 10
1579+
1580+ A. THE RESTORATION OF AQ UATIC RESOURCES , SUCH 11
1581+AS SEAGRASS BEDS OR OYSTER REEFS ; 12
1582+
1583+ B. CLIMATE RESILIENCE ; 13
1584+
1585+ C. CARBON SEQUESTRATION ; 14
1586+
1587+ D. CREATION OF WILDLIFE HABITAT; 15
1588+
1589+ E. LOCAL EMPLOYMENT OPPORTUNIT IES; 16
1590+
1591+ F. THE IMPROVEMENT OR PR OVISION OF 17
1592+RECREATIONAL OPPORTU NITIES; OR 18
1593+
1594+ G. ENVIRONMENTAL JUSTICE BENEFITS; AND 19
1595+
1596+ 3. SUBJECT TO PARAGRAPH (5) OF THIS SUBSECTION , 20
1597+MULTI–YEAR AGREEMENTS WHER EBY AN AGGREGATOR PR OPOSES TO: 21
1598+
1599+ A. COMBINE FUNDING FROM THE TRUST FUND WITH 22
1600+REVOLVING LOAN FUNDS AUTHORIZED UNDER §§ 9–1605 AND 9–1605.1 OF THE 23
1601+ENVIRONMENT ARTICLE, FEDERAL EMERGENCY MANAGEMENT AGENCY HAZARD 24
1602+MITIGATION SUPPORT , OR PRIVATE SOURCES O F FUNDING; AND 25
1603+
1604+ B. USE THE COMBINED SOURCES TO FUND AND 26
1605+ADMINISTER THE IMPLE MENTATION OF MULTIPL E PROJECTS OR PAY FO R 27
1606+ENVIRONMENTAL OUTCOM ES FROM MULTIPLE COM PLETED PROJECTS . 28
1607+
1608+ (4) (I) FUNDS FROM THE TRUST FUND MAY NOT BE USED TO 29
1609+PROCURE ENVIRONMENTA L OUTCOMES ACHIEVED BEFORE JANUARY 1, 2021. 30
1610+ HOUSE BILL 653 35
1611+
1612+
1613+ (II) PAYMENT UNDER A PAY –FOR–SUCCESS CONTRACT MAY BE 1
1614+MADE ONLY AFTER AN E VALUATOR HAS CERTIFI ED TO THE CONTRACTIN G AGENCY 2
1615+THAT THE ENVIRONMENT AL OUTCOMES HAVE BEE N MEASURED OR MODELE D 3
1616+CONSISTENT WITH AN A PPROVED QUANTIFICATI ON PLAN. 4
1617+
1618+ (5) A BAYSTAT SUBCABINET AGENCY MAY USE FUNDING FROM THE 5
1619+TRUST FUND FOR A MULTI –YEAR AGREEMENT SPECI FIED UNDER PARAGRAPH 6
1620+(3)(II)3 OF THIS SUBSECTION O NLY IF THE AGENCY DE TERMINES THAT THE 7
1621+AGREEMENT WILL : 8
1622+
1623+ (I) PROVIDE COST –EFFECTIVE NUTRIENT A ND SEDIMENT 9
1624+REDUCTIONS IN A MANNER CO NSISTENT WITH THE CO ST–EFFECTIVENESS OF OTH ER 10
1625+PROJECTS SUPPORTED T HROUGH THE TRUST FUND; 11
1626+
1627+ (II) DELIVER BENEFITS CONS ISTENT WITH THOSE RE QUIRED 12
1628+BY REVOLVING LOAN FU NDS AUTHORIZED UNDER §§ 9–1605 AND 9–1605.2 OF THE 13
1629+ENVIRONMENT ARTICLE; 14
1630+
1631+ (III) REQUIRE NOT MORE THAN 20% OF TOTAL RESOURCES I N 15
1632+THE TRUST FUND; AND 16
1633+
1634+ (IV) DELIVER CO–BENEFITS AS DESCRIBE D IN PARAGRAPH 17
1635+(3)(II)2 OF THIS SUBSECTION . 18
1636+
1637+ (d) Any grant OR CONTRACT agreement regarding funds from the Trust Fund 19
1638+shall: 20
1639+
1640+ (1) Specify the use of the funds provided under the grant, accountability 21
1641+measures, and performance requirements; 22
1642+
1643+ (2) Take into account the need for efficient, multi–year funding and 23
1644+administration; and 24
1645+
1646+ (3) Include provisions for verification that practices are being 25
1647+implemented. 26
1648+
1649+ (e) (1) A recipient of funds from the Trust Fund in any fiscal year shall submit 27
1650+an annual report to the BayStat Program by November 1 of the next fiscal year. 28
1651+
1652+ (2) The report required under paragraph (1) of this subsection shall 29
1653+include: 30
1654+
1655+ (i) For agencies receiving [moneys] MONEY from the Trust Fund: 31
1656+
1657+ 1. A description of how the funds were allocated, including: 32 36 HOUSE BILL 653
1658+
1659+
1660+
1661+ A. The number and amounts of grants awards; and 1
1662+
1663+ B. Direct expenditures by the agency; 2
1664+
1665+ 2. How funding was leveraged; and 3
1666+
1667+ 3. Estimated or calculated nutrient reductions associated 4
1668+with Trust Fund expenditures. 5
1669+
1670+ (ii) For recipients of competitive grants OR PAY–FOR–SUCCESS 6
1671+CONTRACTS from the Trust Fund, a description of funded projects, including: 7
1672+
1673+ 1. Project location; 8
1674+
1675+ 2. Description of practices implemented; 9
1676+
1677+ 3. Timeframes for project completion; 10
1678+
1679+ 4. Estimated or calculated nutrient reductions; and 11
1680+
1681+ 5. Provisions for long–term maintenance of practices. 12
1682+
1683+ (f) Funds from the Trust Fund may not be used to enable an individual cited for 13
1684+noncompliance with a nonpoint source pollution control law or regulation to achieve 14
1685+compliance. 15
1686+
1687+ (g) (1) There is a BayStat Program Scientific Advisory Panel. 16
1688+
1689+ (2) The Governor shall appoint the chair and members of the BayStat 17
1690+Program Scientific Advisory Panel. 18
1691+
1692+ (3) The BayStat Program Scientific Advisory Panel shall include scientists 19
1693+and other technical experts with demonstrated expertise in the disciplines related to 20
1694+protection and restoration of the Chesapeake and Atlantic Coastal Bays. 21
1695+
1696+ (4) The BayStat Program Scientific Advisory Panel shall: 22
1697+
1698+ (i) On or before August 1, annually provide recommendations to the 23
1699+BayStat Subcabinet on the use of funds of the Trust Fund for the following fiscal year; 24
1700+
1701+ (ii) Monitor the distribution of funds from the Trust Fund; 25
1702+
1703+ (iii) Review the categories of grants AND CONTRACTS made in the 26
1704+previous year to assess nutrient loading reduction estimates and cost efficiencies and the 27
1705+effectiveness of any innovative nonpoint source pollution reduction measure; 28
1706+ HOUSE BILL 653 37
1707+
1708+
1709+ (iv) Review the proposed annual work plan and advise the BayStat 1
1710+Subcabinet of any recommended changes; 2
1711+
1712+ (v) On request by the BayStat Subcabinet, review individual [grant] 3
1713+FUNDING applications; [and] 4
1714+
1715+ (vi) Annually review any Trust Fund [moneys] MONEY that [are] IS 5
1716+not distributed on a competitive basis to assess whether [those moneys] THAT MONEY may 6
1717+be distributed on a competitive basis; AND 7
1718+
1719+ (VII) ON OR BEFORE JANUARY 31, 2023: 8
1720+
1721+ 1. ANALYZE AND COMPARE T HE FUND DISTRIBUTION S 9
1722+THROUGH THE COMPETIT IVE PROGRAM AND BY E ACH BAYSTAT SUBCABINET 10
1723+AGENCY FOR FISCAL YE ARS 2012 THROUGH 2023 AND THE STRATEGIES S UPPORTED 11
1724+BY THOSE DISTRIBUTIO NS; 12
1725+
1726+ 2. QUANTIFY THE RELATIVE EFFECTIVENESS OF EACH 13
1727+DISTRIBUTION AND STR ATEGY PER DOLLAR OF STATE FUNDING ; AND 14
1728+
1729+ 3. REPORT TO THE BAYSTAT SUBCABINET, THE 15
1730+GOVERNOR, AND, IN ACCORDANCE WITH § 2–1257 OF THE STATE GOVERNMENT 16
1731+ARTICLE, THE GENERAL ASSEMBLY ON THE RESUL TS OF THE ANALYSES R EQUIRED 17
1732+UNDER ITEMS 1 AND 2 OF THIS ITEM. 18
1733+
1734+ (h) The BayStat Subcabinet agencies may [distribute]: 19
1735+
1736+ (1) DISTRIBUTE to an administrative cost account the amount that is 20
1737+necessary to administer grant programs, not to exceed 1.5% of the allocations to the 21
1738+BayStat Subcabinet agencies; AND 22
1739+
1740+ (2) MAINTAIN AN AMOUNT , NOT TO EXCEED 2% OF THE TOTAL IN 23
1741+COMPETITIVE GRANTS A ND CONTRACTS ADMINIS TERED BY THE BAYSTAT 24
1742+SUBCABINET AGENCIES , FOR THE PURPOSE OF M EETING ADDITIONAL PR OJECT 25
1743+NEEDS, INCLUDING: 26
1744+
1745+ (I) THE ADAPTIVE MANAGEME NT, MAINTENANCE , OR 27
1746+CATASTROPHE –INDUCED REPAIR NEEDS OF PROJECTS FUNDED B Y THE GRANTS OR 28
1747+CONTRACTS; AND 29
1748+
1749+ (II) PAYING FOR QUANTIFIED AND VERIFIED WATER 30
1750+QUALITY–RELATED ENVIRONMENTA L OUTCOMES THAT EXCE ED THE QUANTITY OF 31
1751+ENVIRONMENTAL OUTCOM ES ANTICIPATED UND ER PARTICULAR GRANTS OR 32
1752+CONTRACTS . 33 38 HOUSE BILL 653
1753+
1754+
1755+
1756+Article – State Finance and Procurement 1
1757+
1758+10A–101. 2
1759+
1760+ (a) In this title the following words have the meanings indicated. 3
1761+
1762+ (d) (1) “Public infrastructure asset” means a capital facility or structure, 4
1763+including systems and equipment related to the facility or structure intended for public 5
1764+use. 6
1765+
1766+ (2) “PUBLIC INFRASTRUCTURE ASSET” INCLUDES BLUE 7
1767+INFRASTRUCTURE AND G REEN INFRASTRUCTURE , AS DEFINED IN § 9–1601 OF THE 8
1768+ENVIRONMENT ARTICLE. 9
1769+
1770+13–101. 10
1771+
1772+ (a) In this subtitle the following words have the meanings indicated. 11
1773+
1774+ (b) “Designated procurement unit” means: 12
1775+
1776+ (1) the Department of Budget and Management; 13
1777+
1778+ (2) the Department of General Services; 14
1779+
1780+ (3) the Department of Information Technology; or 15
1781+
1782+ (4) the Department of Transportation. 16
1783+
1784+ (c) “eMaryland Marketplace” means the Internet–based procurement system 17
1785+managed by the Department of General Services. 18
1786+
1787+ (d) “Evaluated bid price” means the price of a bid after adjustment in accordance 19
1788+with objective measurable criteria. 20
1789+
1790+ (e) “Master contracting” means a streamlined procurement method that provides 21
1791+for the qualification of bidders and offerors for the procurement of services, supplies, or 22
1792+commodities. 23
1793+
1794+ (f) (1) “Objective measurable criteria” means standards that enable the State 24
1795+to compare the economy, effectiveness, or value of the subject of the bids. 25
1796+
1797+ (2) “Objective measurable criteria” includes standards of reliability, 26
1798+operational costs, maintainability, useful life, and residual value. 27
1799+ HOUSE BILL 653 39
1800+
1801+
1802+ (g) “PAY–FOR–SUCCESS CONT RACTING” MEANS A PERFORMANCE –BASED 1
1803+PROCUREMENT METHOD T HROUGH WHICH A UNIT CONTRACTS WITH AN 2
1804+ORGANIZATION TO DELI VER SERVICES OR COMM ODITIES IN EXCHANGE FOR 3
1805+PAYMENT BASED ON THE ACHIEVEMENT OF OUTCO MES. 4
1806+
1807+ (H) “Person” includes, unless the context requires otherwise: 5
1808+
1809+ (1) the State; 6
1810+
1811+ (2) a county, a municipal corporation, or any other political subdivision; 7
1812+and 8
1813+
1814+ (3) any unit of the State government or a political subdivision. 9
1815+
1816+ [(h)] (I) “Task order” means a procurement process in which only those vendors 10
1817+with master contracts may compete to provide the services, supplies, or commodities under 11
1818+the procurement. 12
1819+
1820+13–102. 13
1821+
1822+ (a) The following procurement methods are authorized at the procurement 14
1823+officer’s discretion, where applicable: 15
1824+
1825+ (1) competitive sealed bids under § 13–103 of this subtitle; 16
1826+
1827+ (2) competitive sealed proposals under § 13–104 or § 13–105 of this 17
1828+subtitle; 18
1829+
1830+ (3) noncompetitive negotiation under § 13–106 of this subtitle; 19
1831+
1832+ (4) sole source procurement under § 13–107 of this subtitle; 20
1833+
1834+ (5) emergency or expedited procurement under § 13–108 of this subtitle; 21
1835+
1836+ (6) small procurement under § 13–109 of this subtitle; 22
1837+
1838+ (7) an intergovernmental cooperative purchasing agreement under § 23
1839+13–110 of this subtitle; 24
1840+
1841+ (8) auction bids under § 13–111 of this subtitle; 25
1842+
1843+ (9) architectural, engineering, and land surveying services qualification 26
1844+based selection under § 13–112 of this subtitle; [or] 27
1845+
1846+ (10) master contracting under § 13–113 of this subtitle; OR 28
1847+ 40 HOUSE BILL 653
1848+
1849+
1850+ (11) PAY–FOR–SUCCESS CONTRACTING UNDER § 13–112.1 OF THIS 1
1851+SUBTITLE. 2
1852+
1853+ (b) (1) In awarding a procurement contract for human, social, cultural, or 3
1854+educational service, the preferred method is by competitive sealed proposals under § 4
1855+13–104 of this subtitle. 5
1856+
1857+ (2) In awarding a procurement contract for a lease of real property, the 6
1858+preferred method is by competitive sealed proposals under § 13–105 of this subtitle. 7
1859+
1860+ (3) Procurement under an intergovernmental cooperative purchasing 8
1861+agreement is appropriate in situations where the State is expected to achieve a better price 9
1862+as the result of economies of scale or to otherwise benefit by purchasing in cooperation with 10
1863+another governmental entity. 11
1864+
1865+13–112.1. 12
1866+
1867+ (A) (1) IN THIS SECTION THE F OLLOWING WORDS HAVE THE MEANINGS 13
1868+INDICATED. 14
1869+
1870+ (2) “AGGREGATOR” MEANS A PERSON THAT : 15
1871+
1872+ (I) PROVIDES OR CONTRACT S FOR ENVIRONMENTAL 16
1873+OUTCOMES; OR 17
1874+
1875+ (II) PROVIDES OR RAISES C APITAL TO FINANCE DE LIVERY OF 18
1876+ENVIRONMENTAL OUTCOM ES. 19
1877+
1878+ (3) “ENVIRONMENTAL OUTCOME ” MEANS A COMMODITY TH AT IS 20
1879+MODELED OR DIRECTLY MEASURED AS A SINGLE , QUANTIFIABLE , AND CERTIFIED 21
1880+UNIT OF IMPROVEMENT TO THE ENVIRONMENT , INCLUDING A NUTRIENT OR 22
1881+CARBON BENEFIT . 23
1882+
1883+ (4) “ENVIRONMENTAL OUTCOME S PROJECT” MEANS A PROJECT 24
1884+DESIGNED TO SECURE E NVIRONMENTAL OUTCOME S. 25
1885+
1886+ (5) “EVALUATOR” MEANS A PERSON OTHER THAN AN AGGREGATOR 26
1887+THAT DETERMINES WHET HER ENVIRONMENTAL OU TCOMES HAVE BEEN ACH IEVED 27
1888+BASED ON DEFINED PER FORMANCE MEASURES . 28
1889+
1890+ (6) “OUTCOME PAYMENT ” MEANS THE MONEY PAID WHEN A 29
1891+PAY–FOR–SUCCESS CONTRACT PER FORMANCE MEASURE IS MET. 30
1892+
1893+ (7) “QUANTIFICATION PLAN ” MEANS A PLAN IN WHIC H AN 31
1894+AGGREGATOR DESCRIBES : 32 HOUSE BILL 653 41
1895+
1896+
1897+
1898+ (I) THE METHOD THAT WILL BE USED TO MEASURE O R MODEL 1
1899+ENVIRONMENTAL OUTCOM ES AND CO –BENEFITS UNDER A PAY –FOR–SUCCESS 2
1900+CONTRACT; 3
1901+
1902+ (II) THE COMPLIANCE MONIT ORING THAT WILL OCCU R TO 4
1903+ENSURE THAT THE ACTI ONS PROPOSED IN THE PAY–FOR–SUCCESS CONTRACT ARE 5
1904+TAKEN AND MAINTAINED OVER THE LIFE OF THE PROJECT; 6
1905+
1906+ (III) VERIFICATION STEPS T HAT WILL BE CARRIED OUT BY THE 7
1907+STATE TO CONFIRM MODE L RESULT S OR ACCURATE MEASUR EMENT OF 8
1908+ENVIRONMENTAL OUTCOM ES; AND 9
1909+
1910+ (IV) THE TIMELINE FOR PRO POSED PAYMENTS UNDER THE 10
1911+PAY–FOR–SUCCESS CONTRACT . 11
1912+
1913+ (B) THE GENERAL ASSEMBLY FINDS AND DE CLARES THAT: 12
1914+
1915+ (1) PAY–FOR–SUCCESS CONTRACTING SHIFTS THE RISK OF 13
1916+PERFORMANC E TO THE CONTRACTOR BECAUSE GOVERNMENT P AYMENT IS MADE 14
1917+ONLY ON ACHIEVEMENT OF OUTCOMES ; 15
1918+
1919+ (2) SOCIAL AND ENVIRONME NTAL IMPACT INVESTME NT IS GROWING 16
1920+DRAMATICALLY , AND INVESTORS ARE SE EKING WAYS TO FINANC E AND EXECUTE 17
1921+PAY–FOR–SUCCESS CONTRACTS IN THE STATE TO EXPAND THE SUCCES S OF 18
1922+CHESAPEAKE BAY RESTORATION EFFOR TS AND ACHIEVE OTHER PUBLIC 19
1923+OUTCOMES; AND 20
1924+
1925+ (3) IT IS IN THE BEST IN TEREST OF THE STATE TO INCLUDE 21
1926+PAY–FOR–SUCCESS CONTRACTING AS A PROCUREMENT OPT ION, PARTICULARLY 22
1927+FOR UNITS RESPONSIBL E FOR LAND CONSERVATION AND ENV IRONMENTAL 23
1928+PROTECTION , ENHANCEMENT , AND RESTORATION . 24
1929+
1930+ (C) A UNIT MAY ENTER INTO A PAY–FOR–SUCCESS CONTRACT ONL Y IF THE 25
1931+PROCUREMENT OFFICER OF THE UNIT DETERMIN ES THAT: 26
1932+
1933+ (1) THE CONTRACT WILL PR ODUCE ESTIMATED FINA NCIAL SAVINGS 27
1934+OR OTHER QUANTIFIABLE PUB LIC BENEFITS FOR THE STATE; AND 28
1935+
1936+ (2) A SUBSTANTIAL PORTIO N OF THE OUTCOME PAY MENT DUE UNDER 29
1937+THE CONTRACT WILL BE PAID ONLY AFTER SPEC IFIC OUTCOMES HAVE B EEN 30
1938+DOCUMENTED . 31
1939+
1940+ (D) (1) THIS SUBSECTION APPLI ES ONLY TO PROCUREME NTS BY: 32 42 HOUSE BILL 653
1941+
1942+
1943+
1944+ (I) THE DEPARTMENT OF AGRICULTURE ; 1
1945+
1946+ (II) THE DEPARTMENT OF THE ENVIRONMENT ; 2
1947+
1948+ (III) THE DEPARTMENT OF NATURAL RESOURCES; 3
1949+
1950+ (IV) THE DEPARTMENT OF TRANSPORTATION ; 4
1951+
1952+ (V) THE MARYLAND ENVIRONMENTAL SERVICE; AND 5
1953+
1954+ (VI) THE DEPARTMENT OF GENERAL SERVICES. 6
1955+
1956+ (2) THIS SUBSECTION DOES NOT APPLY TO THE PUR CHASE OF 7
1957+NITROGEN LOAD REDUCT IONS WITH FUNDS FROM THE CLEAN WATER COMMERCE 8
1958+ACCOUNT OF THE BAY RESTORATION FUND ESTABLISHED UNDE R § 9–1605.2 OF 9
1959+THE ENVIRONMENT ARTICLE. 10
1960+
1961+ (3) (I) A UNIT SPECIFIED IN PARAGRAPH (1) OF THIS SUBSECTION 11
1962+MAY ENTER INTO A PAY –FOR–SUCCESS CONTRACT WIT H AN AGGREGATOR TO 12
1963+PROCURE: 13
1964+
1965+ 1. DELIVERY OF AN ENVIR ONMENTAL OUTCOMES 14
1966+PROJECT; OR 15
1967+
1968+ 2. ALREADY CERTIFIED EN VIRONMENTAL OUTCOMES . 16
1969+
1970+ (II) OTHER STATE AND LOCAL ENTIT IES MAY PARTICIPATE IN A 17
1971+PAY–FOR–SUCCESS CONTRACT UND ER THIS SUBSECTION I N ACCORDANCE WITH AN 18
1972+INTERGOVERNMENTAL CO OPERATIVE PURCHASING AGREEMENT UNDER § 13–110 19
1973+OF THIS SUBTITLE. 20
1974+
1975+ (4) A PAY–FOR–SUCCESS CONTRACT EXE CUTED UNDER THIS 21
1976+SUBSECTION SHALL INC LUDE: 22
1977+
1978+ (I) A QUANTIFICATION PLA N APPROVED BY THE UN IT; 23
1979+
1980+ (II) A STATEMENT OF THE E NVIRONMENTAL OUTCOME S TO BE 24
1981+PROCURED UNDER THE C ONTRACT AND A DESCRI PTION OF HOW DEFINED 25
1982+PERFORMANCE MEASURES WILL DEMONSTRATE PRO GRESS IN ACHIEVING T HESE 26
1983+OUTCOMES; 27
1984+ HOUSE BILL 653 43
1985+
1986+
1987+ (III) REQUIREMENTS REGARDING THE CONTENT AND 1
1988+FREQUENCY OF PROGRES S REPORTS REGARDING THE ACHIEVEMENT OF 2
1989+ENVIRONMENTAL OUTCOM ES; 3
1990+
1991+ (IV) A METHODOLOGY FOR CA LCULATING THE AMOUNT AND 4
1992+TIMING OF OUTCOME PA YMENTS TO AN AGGREGA TOR WHEN THE EVALUAT OR 5
1993+DETERMINES THAT TH E AGGREGATOR HAS ACH IEVED A DEFINED PERF ORMANCE 6
1994+MEASURE; 7
1995+
1996+ (V) A STATEMENT THAT THE BASIS OF PAYMENT IS THE 8
1997+DETERMINATION OF ACH IEVEMENT OF ENVIRONM ENTAL OUTCOMES BY TH E 9
1998+EVALUATOR AND THAT P AYMENTS FOR THOSE OU TCOMES DO NOT REQUIR E 10
1999+ITEMIZED BILLING OR COST DOCUMENTATION B Y THE AGGREGATOR ; AND 11
2000+
2001+ (VI) TERMS ADDRESSING : 12
2002+
2003+ 1. COMPLIANCE WITH STATE LAW; 13
2004+
2005+ 2. NONDISCRIMINATION IN EMPLOYMENT ; 14
2006+
2007+ 3. CONTRACTOR INDEMNIFI CATION; 15
2008+
2009+ 4. TERMINATION FOR DEFA ULT; AND 16
2010+
2011+ 5. THE UNIT’S RIGHT TO INSPECT T HE ENVIRONMENTAL 17
2012+OUTCOMES PROJECT . 18
2013+
2014+ (5) A PAY–FOR–SUCCESS CONTRACT EXE CUTED UNDER THIS 19
2015+SUBSECTION MAY INCLU DE PROVISIONS REGARD ING: 20
2016+
2017+ (I) LONG–TERM MAINTENANCE AND MONITORING OF 21
2018+ENVIRONMENTAL SERVIC ES, INCLUDING THE ESTABL ISHMENT OF A STEWARD SHIP 22
2019+FUND; 23
2020+
2021+ (II) A REQUIREMENT THAT T HE UNIT HOLD CONTRAC T FUNDS 24
2022+IN A RESERVE ACCOUNT FOR OUTCOME PAYMENTS ; 25
2023+
2024+ (III) FOR AGRICULTURE SERV ICES, PAYMENT FOR 26
2025+ACHIEVEMENT OF BASEL INE WATER QUALITY RE QUIREMENTS FOR NITRO GEN, 27
2026+PHOSPHORUS , OR SEDIMENT; OR 28
2027+
2028+ (IV) TERMINATIONS PRIOR T O THE FIRST PAYMENT UNDER THE 29
2029+CONTRACT FOR THE PUR POSE OF SELLING ENVI RONMENTAL OUTCOMES W ITHOUT 30
2030+PENALTY TO ANOTHER E NTITY OR FOR ANY OTH ER REASON. 31 44 HOUSE BILL 653
2031+
2032+
2033+
2034+ (E) (1) (I) BEGINNING JULY 2025 AND EVERY 3 YEARS THEREAFTE R, 1
2035+THE MARYLAND ENVIRONMENTAL SERVICE SHALL REVIEW AND EVALUATE THE 2
2036+RESULTS OF ALL PAY –FOR–SUCCESS CONTRACTS CO MPLETED UNDER THIS S ECTION 3
2037+FOR THE PREVIOUS 3 FISCAL YEARS. 4
2038+
2039+ (II) THE FIRST REVIEW COND UCTED UNDER SUBPARAG RAPH (I) 5
2040+OF THIS PARAGRAPH SH ALL INCLUDE A REVIEW OF AL L PAY–FOR–SUCCESS 6
2041+CONTRACTS COMPLETED UNDER THIS SECTION B ETWEEN JULY 1, 2022, AND JUNE 7
2042+30, 2025. 8
2043+
2044+ (2) THE REVIEW CONDUCTED UNDER PARAGRAPH (1) OF THIS 9
2045+SUBSECTION SHALL INC LUDE: 10
2046+
2047+ (I) THE COST OF EACH PRO JECT PERFORMED UNDER A 11
2048+CONTRACT; 12
2049+
2050+ (II) THE LENGTH OF TIME T AKEN TO COMPLETE THE PROJECT, 13
2051+FROM THE DATE OF NOT ICE TO PROCEED UNTIL COMPLETION ; 14
2052+
2053+ (III) THE AVERAGE COST AND PROJECT DURATION FOR EACH 15
2054+PROJECT TYPE ; AND 16
2055+
2056+ (IV) WHETHER EACH PROJECT MET THE TERMS OF ITS 17
2057+CONTRACT. 18
2058+
2059+ (3) EACH UNIT THAT ENTERS INTO A PAY–FOR–SUCCESS CONTRACT 19
2060+UNDER THIS SECTION S HALL EXECUTE AN AGRE EMENT WITH THE MARYLAND 20
2061+ENVIRONMENTAL SERVICE TO REIMBURSE THE SERVICE FOR EACH OF T HE UNIT’S 21
2062+COMPLETED CONTRACTS THE SERVICE REVIEWS UNDER THIS SECTION. 22
2063+
2064+ (4) THE MARYLAND ENVIRONMENTAL SERVICE SHALL PROVIDE 23
2065+COPIES OF EACH REVIE W CONDUCTED UNDER TH IS SUBSECTION TO : 24
2066+
2067+ (I) EACH UNIT FOR WHICH THE SERVICE REVIEWED AND 25
2068+EVALUATED A CONTRACT ; AND 26
2069+
2070+ (II) IN ACCORDANCE WITH § 2–1257 OF THE STATE 27
2071+GOVERNMENT ARTICLE, THE SENATE EDUCATION, HEALTH, AND ENVIRONMENTAL 28
2072+AFFAIRS COMMITTEE, THE SENATE BUDGET AND TAXATION COMMITTEE, THE 29
2073+HOUSE ENVIRONMENT AND TRANSPORTATION COMMITTEE, AND THE HOUSE 30
2074+APPROPRIATIONS COMMITTEE. 31
2075+ HOUSE BILL 653 45
2076+
2077+
2078+ SECTION 2. AND BE IT FURTHER ENACTED, That t he Laws of Maryland read 1
2079+as follows: 2
2080+
2081+Article – Environment 3
2082+
2083+SUBTITLE 14. GREEN AND BLUE INFRASTRUCTURE POLICY ADVISORY 4
2084+COMMISSION. 5
2085+
2086+5–1401. 6
2087+
2088+ (A) IN THIS SUBTITLE THE FOLLOWING WORDS HAVE THE MEANINGS 7
2089+INDICATED. 8
2090+
2091+ (B) “BLUE INFRASTRUCTURE ” HAS THE MEANING STATED IN § 9–1601 OF 9
2092+THIS ARTICLE. 10
2093+
2094+ (C) “COMMISSION” MEANS THE GREEN AND BLUE INFRASTRUCTURE 11
2095+POLICY ADVISORY COMMISSION. 12
2096+
2097+ (D) “GREEN INFRASTRUCTURE ” HAS THE MEANING STAT ED IN § 9–1601 OF 13
2098+THIS ARTICLE. 14
2099+
2100+5–1402. 15
2101+
2102+ (A) THERE IS A GREEN AND BLUE INFRASTRUCTURE POLICY ADVISORY 16
2103+COMMISSION. 17
2104+
2105+ (B) THE PURPOSE OF THE COMMISSION IS TO ADVI SE THE SECRETARY, THE 18
2106+BAYSTAT SUBCABINET, AND LOCAL GOVERNMENT OFFICIALS ON WAYS TO 19
2107+FACILITATE AND ACCEL ERATE THE SCALE AND PACE OF IMPLEMEN TATION OF 20
2108+GREEN AND BLUE INFRA STRUCTURE PROJECTS I N THE STATE, INCLUDING 21
2109+PROJECTS DESIGNED TO : 22
2110+
2111+ (1) REDUCE NUTRIENT AND S EDIMENT LOADS ENTERI NG THE 23
2112+CHESAPEAKE BAY; 24
2113+
2114+ (2) SEQUESTER NUTRIENTS A LREADY IN THE CHESAPEAKE BAY; 25
2115+
2116+ (3) IMPROVE CLIMATE RESIL IENCE; 26
2117+
2118+ (4) SEQUESTER CARBON ; 27
2119+
2120+ (5) PROTECT AND RESTORE I MPORTANT TERRESTRIAL OR AQUATIC 28
2121+HABITATS; 29
2122+ 46 HOUSE BILL 653
2123+
2124+
2125+ (6) RESTORE STREAMS OR WE TLANDS; 1
2126+
2127+ (7) BUILD LIVING SHORELIN ES; 2
2128+
2129+ (8) AUGMENT OR RESTORE SHELLFISH POPULATION S; OR 3
2130+
2131+ (9) RESTORE FOREST OR AGR ICULTURAL LANDS. 4
2132+
2133+ (C) THE COMMISSION CONSISTS O F THE FOLLOWING MEMB ERS, 5
2134+APPOINTED BY THE SECRETARY IN CONSULTA TION WITH THE OTHER MEMBERS OF 6
2135+THE BAYSTAT SUBCABINET: 7
2136+
2137+ (1) FOUR REPRESENTATIVES OF LOCAL GOVERNMENT WHO 8
2138+REPRESENT DIFFERENT REGIONS OF THE STATE AND WHO ARE RESPONSIBLE FOR 9
2139+IMPLEMENTING ECOLOGI CAL RESTORATION PROJ ECTS, OF WHOM TWO SHALL 10
2140+REPRESENT COUNTY GOV ERNMENTS AND TWO SHA LL REPRESENT MUNICIP AL 11
2141+GOVERNMENTS ; 12
2142+
2143+ (2) TWO REPRESENTATIVES O F PRIVATE ECOLOGICAL RESTORATION 13
2144+COMPANIES THAT REGUL ARLY WORK IN T HE STATE; 14
2145+
2146+ (3) TWO REPRESENTATIVES O F COMPANIES THAT INV EST PRIVATE 15
2147+CAPITAL IN ECOLOGICA L RESTORATION PROJEC TS; 16
2148+
2149+ (4) TWO REPRESENTATIVES O F NONPROFIT ORGANIZA TIONS THAT 17
2150+ARE KNOWLEDGEABLE AB OUT GREEN OR BLUE IN FRASTRUCTURE AND ADV OCATE 18
2151+ON BEHALF OF THE PUB LIC’S INTEREST IN THE STATE’S NATURAL RESOURCES ; 19
2152+
2153+ (5) ONE REPRESENTATIVE OF THE UNIVERSITY OF MARYLAND 20
2154+ENVIRONMENTA L FINANCE CENTER; 21
2155+
2156+ (6) ONE REPRESENTATIVE OF THE PATUXENT ENVIRONMENTAL AND 22
2157+AQUATIC RESEARCH LABORATORY , MORGAN STATE UNIVERSITY, RECOMMENDED 23
2158+BY THE RESEARCH LABORATORY ; 24
2159+
2160+ (7) TWO MEMBERS OF THE PU BLIC WHO HAVE A DOCU MENTED AND 25
2161+CONTINUING INTEREST IN ECOLOGICAL RESTORATION ; AND 26
2162+
2163+ (8) TWO REPRESENTATIVES O F STATE AGENCIES WHO AR E 27
2164+RESPONSIBLE FOR IMPL EMENTING GREEN OR BL UE INFRASTRUCTURE PR OJECTS. 28
2165+
2166+ (D) THE SECRETARY SHALL ENSUR E THAT, TO THE EXTENT PRACTI CABLE, 29
2167+THE MEMBERSHIP OF TH E COMMISSION REFLECTS THE GEOGRAPHIC , RACIAL, 30
2168+GENDER, AND CULTURAL DIVERSI TY OF THE STATE. 31 HOUSE BILL 653 47
2169+
2170+
2171+
2172+ (E) FROM AMONG THE COMMISSION MEMBERS , THE SECRETARY SHALL 1
2173+DESIGNATE: 2
2174+
2175+ (1) ONE OF THE STATE AGENCY REPRESEN TATIVES TO SERVE AS 3
2176+COCHAIR; AND 4
2177+
2178+ (2) ONE OF THE LOCAL GOVE RNMENT REPRESENTATIV ES TO SERVE 5
2179+AS COCHAIR. 6
2180+
2181+ (F) A MEMBER OF THE COMMISSION: 7
2182+
2183+ (1) MAY NOT RECEIVE COMPE NSATION AS A MEMBER OF THE 8
2184+COMMISSION; BUT 9
2185+
2186+ (2) IS ENTITLED TO REIMBU RSEMENT FOR EXPENSES UNDER THE 10
2187+STANDARD STATE TRAVEL REGULATIONS, AS PROVIDED IN THE STATE BUDGET . 11
2188+
2189+5–1403. 12
2190+
2191+ (A) (1) THE COMMISSION SHALL MEET AT LEAST THREE TIMES PER 13
2192+YEAR. 14
2193+
2194+ (2) MEETINGS MAY BE HELD VIRTUALLY OR AT A LOCATION 15
2195+DESIGNATED BY THE SECRETARY. 16
2196+
2197+ (B) THE COMMISSION SHALL STUD Y AND MAKE RECOMMENDATIONS 17
2198+REGARDING: 18
2199+
2200+ (1) WAYS TO PRIORITIZE GR EEN AND BLUE INFRAST RUCTURE 19
2201+PROJECTS THROUGH STATE PERMITTING PROC ESSES; 20
2202+
2203+ (2) CHANGES TO LOCAL DEVE LOPMENT POLICIES AND REGULATIONS 21
2204+THAT WOULD FACILITAT E THE TIMELY REVIEW AND APPROVAL OF GREE N AND BLUE 22
2205+INFRASTRUCTURE PROJE CTS; 23
2206+
2207+ (3) WAYS TO PHASE IN LIFE CYCLE COSTING REQUIR EMENTS FOR 24
2208+LONG–TERM MONITORING AND REPAIR OF STATE AND LOCAL 25
2209+GOVERNMENT –FUNDED GREEN AND BLU E INFRASTRUCTURE PRO JECTS; 26
2210+
2211+ (4) STRATEGIES AND POLICI ES TO PRIORITIZE GRE EN AND B LUE 27
2212+INFRASTRUCTURE PROJE CTS THAT BOTH CONTRI BUTE TOWARD THE ACHI EVEMENT 28
2213+OF CHESAPEAKE BAY RESTORATION GOALS AND CREATE LOCAL ECO NOMIC, 29
2214+SOCIAL, AND ENVIRONMENTAL BE NEFITS FOR DISADVANT AGED COMMUNITIES ; 30 48 HOUSE BILL 653
2215+(5)POLICIES TO ALLOW THE STATE AND LOCAL GOVERNMENTS TO 1
2216+ATTRACT SOURCES OF P RIVATE CAPITAL INVES TMENT AND MAXIMIZE P UBLIC 2
2217+SECTOR FUNDING FOR GREEN AND BLUE INFRAS TRUCTURE PROJECTS ; 3
2218+(6)CIRCUMSTANCES IN WHIC H VOLUNTEER –
2219+BASED GREEN AND
2220+4
2221+BLUE INFRASTRUCTURE PROJECTS SHOULD BE P RIORITIZED BECAUSE O F 5
2222+COST–SAVING BENEFITS ; 6
2223+(7)BEST PRACTICES FOR ST REAMLINING THE PROCU REMENT AND7
2224+FINANCING PROCESS FO R ENVIRONMENTAL CRED IT BUYERS AT THE LOC AL LEVEL; 8
2225+AND 9
2226+(8)OTHER POLICIES TO ACH IEVE THE INCREASED S COPE AND SCALE10
2227+OF ECOLOGICAL RESTOR ATION. 11
2228+(C)ON OR BEFORE JANUARY 1 EACH YEAR, THE COMMISSION SHALL12
2229+REPORT TO THE SECRETARY , THE GOVERNOR , AND, IN ACCORDANCE WITH §
2230+ 2–1257
2231+13
2232+OF THE STATE GOVERNMENT ARTICLE, THE GENERAL ASSEMBLY ON ITS FINDI NGS 14
2233+AND RECOMMENDATIONS . 15
2234+SECTION 3. AND BE IT FURTHER ENACTED , That: 16
2235+(a)There is a Task Force on State and Local Government Accounting for Natural17
2236+Capital. 18
2237+(b)The Task Force consists of the following members:19
2238+(1)the Secretary of the Environment, or the Secretary’s designee;20
2239+(2)the Director of the University of Maryland Environmental Finance21
2240+Center, or the Director’s designee; 22
2241+(3)the Secretary of Agriculture, or the Secretary’s designee;23
2242+(4)the Secretary of Natural Resources, or the Secretary’s designee;24
2243+(5)the Secretary of Budget and Management, or the Secretary’s designee;25
2244+(6)the State Treasurer, or the State Treasurer’s designee;26
2245+(7)the Executive Director of the Chesapeake Bay Commission, or the27
2246+Executive Director’s designee; 28
2247+(8)two county government representatives with expertise and experience29
2248+in accounting and budgeting, selected by the Maryland Association of Counties; 30 HOUSE BILL 653 49
2249+
2250+
2251+
2252+ (9) two municipal government representatives with expertise and 1
2253+experience in accounting and budgeting, selected by the Maryland Municipal League; and 2
2254+
2255+ (10) the following members, appointed by the Secretary of the Environment: 3
2256+
2257+ (i) one representative of the Maryland Association of Certified 4
2258+Public Accountants; 5
2259+
2260+ (ii) one representative with expertise in sustainability standards 6
2261+and disclosure related to the environmental and social issues relevant to financial 7
2262+performance; 8
2263+
2264+ (iii) two representatives of local water utilities who serve as chief 9
2265+financial officers or their functional equivalents; and 10
2266+
2267+ (iv) two representatives of nonpoint organizations that advocate on 11
2268+behalf of the public’s interest in the State’s natural resources. 12
2269+
2270+ (c) The Secretary of the Environment shall ensure that, to the extent practicable, 13
2271+the membership of the Task Force reflects the geographic, racial, gender, and cultural 14
2272+diversity of the State. 15
2273+
2274+ (c) (d) The Secretary of the Environment, or the Secretary’s designee, and the 16
2275+Director of the University of Maryland Environmental Finance Center, or the Director’s 17
2276+designee, shall serve as cochairs of the Task Force. 18
2277+
2278+ (d) (e) The Department of the Environment and the University of Maryland 19
2279+Environmental Finance Center shall provide staff for the Task Force. 20
2280+
2281+ (e) (f) A member of the Task Force: 21
2282+
2283+ (1) may not receive compensation as a member of the Task Force; but 22
2284+
2285+ (2) is entitled to reimbursement for expenses under the Standard State 23
2286+Travel Regulations, as provided in the State budget. 24
2287+
2288+ (f) (g) (1) The purpose of the Task Force is to assist State and local governments 25
2289+to take full advantage of Government Accounting Standards Board accounting standards 26
2290+in order to unlock the financing needed to scale up the installation and maintenance of 27
2291+green and blue infrastructure and other conservation and restoration projects capable of 28
2292+contributing to a net reduction in the use of public funding while improving community 29
2293+health and resilience. 30
2294+
2295+ (2) The Task Force shall: 31
2296+ 50 HOUSE BILL 653
2297+
2298+
2299+ (i) document the extent to which Go vernment Accounting 1
2300+Standards Board standards have been adopted in the State, identify barriers to the 2
2301+adoption of the standards, and make recommendations regarding the increased adoption of 3
2302+the standards; 4
2303+
2304+ (ii) compile an inventory of the institutions that support natural 5
2305+capital and make recommendations regarding the engagement of land trusts, land banks, 6
2306+and community land trusts to act as green infrastructure institutions and the creation of 7
2307+equity and resilience in disadvantaged communities; 8
2308+
2309+ (iii) make recommendations regarding public accounting and 9
2310+auditing practices that could help State and local governments to better quantify and value 10
2311+natural capital alongside traditional asset accounting; 11
2312+
2313+ (iv) develop a communications plan describing natural resources as 12
2314+natural capital assets, including discussing urban tree canopy as a natural asset; and 13
2315+
2316+ (v) study and make recommendations regarding any other matter 14
2317+the Task Force considers relevant and timely. 15
2318+
2319+ (g) (h) On or before September 30, 2023, the Task Force shall report its findings 16
2320+and recommendations under subsection (f) (g) of this section to the Governor and, in 17
2321+accordance with § 2–1257 of the State Government Article, the General Assembly. 18
2322+
2323+ SECTION 4. AND BE IT FURTHER ENACTED, That: 19
2324+
2325+ (a) (1) In consultation with the BayStat Subcabinet agencies and appropriate 20
2326+experts and using funding received through State or federal grant programs, the 21
2327+Department of Natural Resources shall study and assess the potential for digital tools and 22
2328+platforms to contribute to Chesapeake Bay restoration and climate solutions, including: 23
2329+
2330+ (i) artificial intelligence and machine learning; 24
2331+
2332+ (ii) blockchain technologies and distributed ledgers; 25
2333+
2334+ (iii) crowdsourcing platforms; 26
2335+
2336+ (iv) smart sensors; 27
2337+
2338+ (v) the Internet of things; and 28
2339+
2340+ (vi) software and systems. 29
2341+
2342+ (2) The study shall include: 30
2343+ HOUSE BILL 653 51
2344+(i)as practicable, an inventory and assessment of digital tools and 1
2345+platforms based on the Digital Climate Solutions Report required under § 40433 of the 2
2346+federal Infrastructure Investment and Jobs Act; 3
2347+(ii)an analysis of the likely applications of the digital tools and4
2348+platforms assessed under item (i) of this paragraph for drinking water management; 5
2349+(iii)the potential cost savings associated with the adoption of any6
2350+digital tools or platforms; and 7
2351+(iv)a summary of opportunities for the State to incentivize the8
2352+deployment of promising technologies by the private sector in the State in ways that 9
2353+support State programs and services. 10
2354+(b)On or before December 1, 2023, the Department of Natural Resources shall11
2355+report the findings of the study required under subsection (a) of this section to the General 12
2356+Assembly, in accordance with § 2–1257 of the State Government Article. 13
2357+SECTION 5. AND BE IT FURTHER ENACTED, That this Act shall take effect July 14
2358+1, 2022. Section 2 of this Act shall remain effective for a period of 3 years and, at the end of 15
2359+June 30, 2025, Section 2 of this Act, with no further action required by the General 16
2360+Assembly, shall be abrogated and of no further force and effect. Section 3 of this Act shall 17
2361+remain effective for a period of 2 years and, at the end of June 30, 2024, Section 3 of this 18
2362+Act, with no further action required by the General Assembly, shall be abrogated and of no 19
2363+further force and effect. 20
2364+Approved:
2365+________________________________________________________________________________
2366+Governor.
2367+________________________________________________________________________________
2368+ Speaker of the House of Delegates.
2369+________________________________________________________________________________
2370+ President of the Senate.