EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
[Brackets] indicate matter deleted from existing law.
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SENATE BILL 354
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By: Senators Elfreth and Pinsky
Introduced and read first time: January 21, 2022
Assigned to: Education, Health, and Environmental Affairs
A BILL ENTITLED
AN ACT concerning 1
Bay Restoration Fund – Intended Use Plans and Privately Owned Wastewater 2
Facilities 3
FOR the purpose of requiring the Department of the Environment to provide a certain 4
intended use plan to the General Assembly within a certain period of time; altering 5
the definition of “privately owned wastewater facility” as it relates to the awarding 6
of grants from the Bay Restoration Fund; requiring the Department of the 7
Environment and the Department of Planning to report on and the Department of 8
the Environment to provide certain information regarding funding for privately 9
owned wastewater facilities to the General Assembly and the Department of Budget 10
and Management; prohibiting the Department of the Environment from providing 11
funding from the Bay Restoration Fund’s Clean Water Commerce Account to 12
privately owned wastewater facilities if a determination is made that the facility was 13
not in compliance with a certain discharge permit for a certain period of time; and 14
generally relating to funding from the Bay Restoration Fund, intended use plans, 15
and privately owned wastewater facilities. 16
BY repealing and reenacting, with amendments, 17
Article – Environment 18
Section 9–1605(a)(1), 9–1605.2(i)(1) and (k), and 9–1605.4(q) 19
Annotated Code of Maryland 20
(2014 Replacement Volume and 2021 Supplement) 21
BY adding to 22
Article – Environment 23
Section 9–1605(f) 24
Annotated Code of Maryland 25
(2014 Replacement Volume and 2021 Supplement) 26
BY repealing and reenacting, without amendments, 27
Article – Environment 28 2 SENATE BILL 354
Section 9–1605.2(i)(2)(i) 1
Annotated Code of Maryland 2
(2014 Replacement Volume and 2021 Supplement) 3
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 4
That the Laws of Maryland read as follows: 5
Article – Environment 6
9–1605. 7
(a) (1) (I) There is a Maryland Water Quality Revolving Loan Fund. 8
(II) The Water Quality Fund shall be maintained and administered 9
by the Administration in accordance with the provisions of this subtitle and such rules or 10
program directives as the Secretary or the Board may from time to time prescribe. 11
(F) THE DEPARTMENT SHALL PROV IDE TO THE GENERAL ASSEMBLY, IN 12
ACCORDANCE WITH § 2–1257 OF THE STATE GOVERNMENT ARTICLE, A COPY OF 13
EACH INTENDED USE PL AN THAT THE DEPARTMENT SUBMITS TO THE U.S. 14
ENVIRONMENTAL PROTECTION AGENCY TO REQUEST FED ERAL CAPITALIZATION 15
GRANTS AND AWARDS IN ACCORDANCE WITH TITLE VI OF THE FEDERAL WATER 16
POLLUTION CONTROL ACT FOR USE IN THE WATER QUALITY FUND WITHIN 5 DAYS 17
AFTER THE DEPARTMENT PUBLISHES THE PLAN FOR PUBLIC COMMENT. 18
9–1605.2. 19
(i) (1) (i) In this subsection the following words have the meanings 20
indicated. 21
(ii) “Eligible costs” means the additional costs that would be 22
attributable to upgrading a wastewater facility to enhanced nutrient removal, as 23
determined by the Department. 24
(iii) “Privately owned wastewater facility” means a wastewater 25
facility that is owned by a private entity AND PROVIDES WASTEWA TER TREATMENT OR 26
DISPOSAL SERVICES TO MULTIPLE RESIDENTIAL DWELLING UNITS . 27
(iv) “Publicly owned wastewater facility” means a wastewater facility 28
that is owned by this State or a political subdivision, municipal corporation, or other public 29
entity. 30
(2) Funds in the Bay Restoration Fund shall be used only: 31
(i) 1. To award grants for up to 100% of eligible costs of projects 32
relating to planning, design, construction, and upgrade of a publicly owned wastewater 33 SENATE BILL 354 3
facility for flows up to the design capacity of the wastewater facility, as approved by the 1
Department, to achieve enhanced nutrient removal in accordance with paragraph (3) of this 2
subsection; and 3
2. To award grants for up to 50% of eligible costs of projects 4
relating to planning, design, construction, and upgrade of a privately owned wastewater 5
facility for flows up to the design capacity of the wastewater facility, as approved by the 6
Department, to achieve enhanced nutrient removal in accordance with paragraph (3) of this 7
subsection; 8
SECTION 2. AND BE IT FURTHER ENACTED, That the Laws of Maryland read 9
as follows: 10
Article – Environment 11
9–1605.2. 12
(k) (1) [Beginning January 1, 2009, and every year thereafter,] EACH YEAR 13
the Department and the Department of Planning shall jointly report on [the]: 14
(I) THE impact that a wastewater treatment facility that was 15
upgraded to enhanced nutrient removal during the calendar year before the previous 16
calendar year with funds from the Bay Restoration Fund had on growth within the 17
municipality or county in which the wastewater treatment facility is located; AND 18
(II) EACH PRIVATELY OWNED WASTEWATER FACILITY TO 19
WHICH THE DEPARTMENT PROVIDED F UNDING UNDER § 9–1605.4(Q)(3)(II) OF THIS 20
SUBTITLE IN THE IMME DIATELY PRECEDING 12 MONTHS AND THE REASO NS FOR 21
PROVIDING THE FUNDI NG. 22
(2) (i) In preparing the report required under paragraph (1) of this 23
subsection, the Department of the Environment and the Department of Planning shall: 24
1. Include the number of permits issued for residential and 25
commercial development to be served by the upgraded wastewater treatment facility; and 26
2. Determine what other appropriate information is to be 27
included in the report. 28
(ii) In determining the information that should be included in the 29
report under subparagraph (i) of this paragraph, the Department of the Environment and 30
the Department of Planning shall act: 31
1. In consultation with the Bay Restoration Fund Advisory 32
Committee; and 33
4 SENATE BILL 354
2. With the assistance of the municipality and county in 1
which an upgraded wastewater treatment facility is located. 2
(3) The Department and the Department of Planning shall submit the 3
report required under paragraph (1) of this subsection to the President of the Senate, the 4
Speaker of the House, the Senate Budget and Taxation Committee, the Senate Education, 5
Health, and Environmental Affairs Committee, the House Appropriations Committee, the 6
House Environment and Transportation Committee, and the Governor, in accordance with 7
§ 2–1257 of the State Government Article. 8
9–1605.4. 9
(q) (1) (i) Subject to subparagraph (ii) of this paragraph, a project or 10
practice that is partially financed with another source of State funds may be funded under 11
this section. 12
(ii) Funding provided to a project or practice under this subsection 13
shall be prorated to cover only the portion of the environmental benefit not funded by 14
another State source. 15
(2) (i) An environmental outcome that is funded entirely with public 16
funds is not eligible to be purchased with funds from the Account. 17
(ii) If an environmental outcome is partially funded with public 18
funds and is verified under subsection (l) of this section, funds from the Account may be 19
used to purchase the remaining portion of the environmental outcome that is not funded 20
with public funds. 21
(3) (I) EXCEPT AS PROVIDED IN SUBPARAGRAPH (II) OF THIS 22
PARAGRAPH , THE DEPARTMENT MAY NOT PR OVIDE FUNDING UNDER THIS SECTION 23
TO THE OWNER OF A PR IVATELY OWNED WASTEW ATER FACILITY, AS DEFINED IN § 24
9–1605.2(I) OF THIS SUBTITLE, IF THE DEPARTMENT OR THE U.S. ENVIRONMENTAL 25
PROTECTION AGENCY HAS DETERMINED IN THE 2 YEARS IMMEDIATELY PR ECEDING 26
THE DATE ON WHICH TH E OWNER OF THE FACIL ITY SUBMITTED A FUND ING 27
PROPOSAL UNDER THIS SECTION THAT THE FAC ILITY DID NOT COMPLY WITH A 28
DISCHARGE PERMIT ISS UED BY THE DEPARTMENT U NDER THIS TITLE. 29
(II) THE DEPARTMENT MAY PROVID E FUNDING UNDER THIS 30
SECTION TO THE OWNER OF A PRIVATELY OWNED WASTEWATER FACILITY THAT 31
WOULD NOT BE ELIGIBL E FOR FUNDING UNDER SUBPARAGRAPH (I) OF THIS 32
PARAGRAPH IF THE DEPARTMENT DETERMINES , BASED ON PRO OF SUBMITTED BY 33
THE OWNER OF THE FAC ILITY WHEN SUBMITTIN G A FUNDING PROPOSAL UNDER 34
THIS SECTION, THAT: 35
SENATE BILL 354 5
1. THE OWNER OF THE FACI LITY LACKS THE FINAN CIAL 1
CAPACITY TO PURCHASE OR UPGRADE A WASTEWA TER TREATMENT SYSTEM THAT 2
WOULD BRING THE FACI LITY INTO CO MPLIANCE WITH THE DI SCHARGE PERMIT 3
ISSUED BY THE DEPARTMENT ; 4
2. THE FACILITY IS INDEP ENDENTLY OWNED AND 5
OPERATED; AND 6
3. THE OWNER OF THE FACI LITY IS NOT A SUBSID IARY 7
OF ANOTHER BUSINESS . 8
(III) 1. THE DEPARTMENT SHALL INCL UDE WITH ITS ANNUAL 9
OPERATING BUDGET PRO POSAL SUBMITTED TO T HE DEPARTMENT OF BUDGET AND 10
MANAGEMENT A LIST OF EACH FACILITY TO WHI CH THE DEPARTMENT PROVIDED 11
FUNDING UNDER SUBPAR AGRAPH (II) OF THIS PARAGRAPH IN THE IMMEDIATELY 12
PRECEDING 12 MONTHS AND THE REASO NS FOR PROVIDING THE FUNDING. 13
2. IF THE DEPARTMENT PROVIDES T HE LIST UNDER 14
SUBSUBPARAGRAPH 1 OF THIS SUBPARAGRAPH TO THE DEPARTMENT OF BUDGET 15
AND MANAGEMENT , THE DEPARTMENT SHALL IMME DIATELY PROVIDE THE LIST TO 16
THE GENERAL ASSEMBLY IN ACCORDANC E WITH § 2–1257 OF THE STATE 17
GOVERNMENT ARTICLE. 18
SECTION 3. AND BE IT FURTHER ENACTED, That this Act shall take effect July 19
1, 2022. Section 2 of this Act shall remain effective until the taking effect of the termination 20
provision specified in Section 3 of Chapters 694 and 695 of the Acts of the General Assembly 21
of 2021. If that termination provision takes effect, Section 2 of this Act shall be abrogated 22
and of no further force and effect. This Act may not be interpreted to have any effect on 23
that termination provision. 24