EXPLANATION: CAPITALS INDICATE MATTER ADDED TO EXIS TING LAW.
[Brackets] indicate matter deleted from existing law.
Underlining indicates amendments to bill.
Strike out indicates matter stricken from the bill by amendment or deleted from the law by
amendment.
*sb0354*
SENATE BILL 354
M3 2lr1313
CF HB 714
By: Senators Elfreth and Pinsky
Introduced and read first time: January 21, 2022
Assigned to: Education, Health, and Environmental Affairs
Committee Report: Favorable with amendments
Senate action: Adopted
Read second time: February 27, 2022
CHAPTER ______
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 Fund 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(a)(1) and 9–1605.2(i)(1) and (2)(i) and (k), and 19
9–1605.4(q) (k) 20
Annotated Code of Maryland 21
(2014 Replacement Volume and 2021 Supplement) 22
BY adding to 23 2 SENATE BILL 354
Article – Environment 1
Section 9–1605(f) and 9–1605.2(i)(12) 2
Annotated Code of Maryland 3
(2014 Replacement Volume and 2021 Supplement) 4
BY repealing and reenacting, without amendments, 5
Article – Environment 6
Section 9–1605.2(i)(2)(i) 7
Annotated Code of Maryland 8
(2014 Replacement Volume and 2021 Supplement) 9
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 10
That the Laws of Maryland read as follows: 11
Article – Environment 12
9–1605. 13
(a) (1) (I) There is a Maryland Water Quality Revolving Loan Fund. 14
(II) The Water Quality Fund shall be maintained and administered 15
by the Administration in accordance with the provisions of this subtitle and such rules or 16
program directives as the Secretary or the Board may from time to time prescribe. 17
(F) THE DEPARTMENT SHALL PROVIDE TO THE GENERAL ASSEMBLY, IN 18
ACCORDANCE WITH § 2–1257 OF THE STATE GOVERNMENT ARTICLE, A COPY OF 19
EACH INTENDED USE PL AN THAT THE DEPARTMENT SUBMITS TO THE U.S. 20
ENVIRONMENTAL PROTECTION AGENCY TO REQUEST FED ERAL CAPITALIZATION 21
GRANTS AND AWARDS IN ACCORDANCE WITH TITLE VI OF THE FEDERAL WATER 22
POLLUTION CONTROL ACT FOR USE IN THE WATER QUALITY FUND WITHIN 5 DAYS 23
AFTER THE DEPARTMENT PUBLISHES THE PLAN FOR PUBLIC COMMENT. 24
9–1605.2. 25
(i) (1) (i) In this subsection the following words have the meanings 26
indicated. 27
(ii) “Eligible costs” means the additional costs that would be 28
attributable to upgrading a wastewater facility to enhanced nutrient removal, as 29
determined by the Department. 30
(iii) “Privately owned wastewater facility” means a wastewater 31
facility that is owned by a private entity AND PROVIDES WASTEWA TER TREATMENT OR 32
DISPOSAL SERVICES TO MULTIPLE RESIDENTIAL DWELLING UNITS . 33
SENATE BILL 354 3
(iv) “Publicly owned wastewater facility” means a wastewater facility 1
that is owned by this State or a political subdivision, municipal corporation, or other public 2
entity. 3
(2) Funds in the Bay Restoration Fund shall be used only: 4
(i) 1. To award grants for up to 100% of eligible costs of projects 5
relating to planning, design, construction, and upgrade of a publicly owned wastewater 6
facility for flows up to the design capacity of the wastewater facility, as approved by the 7
Department, to achieve enhanced nutrient removal in accordance with paragraph (3) of this 8
subsection; and 9
2. To SUBJECT TO PARAGRAPH (12) OF THIS 10
SUBSECTION, TO award grants for up to 50% of eligible costs of projects relating to 11
planning, design, construction, and upgrade of a privately owned wastewater facility for 12
flows up to the design capacity of the wastewater facility, as approved by the Department, 13
to achieve enhanced nutrient removal in accordance with paragraph (3) of this subsection; 14
(12) (I) EXCEPT AS PROVIDED IN SUBPARAGRAPH (II) OF THIS 15
PARAGRAPH , THE DEPARTMENT MAY N OT PROVIDE FUNDING U NDER THIS SECTION 16
TO THE OWNER OF A PR IVATELY OWNED WASTEW ATER FACILITY IF THE 17
DEPARTMENT OR THE U.S. ENVIRONMENTAL PROTECTION AGENCY HAS 18
DETERMINED IN THE 2 YEARS IMMEDIATELY PR ECEDING THE DATE ON WHICH THE 19
OWNER APPLIED FOR FU NDING UNDER THIS SECTION THA T THE FACILITY DID N OT 20
COMPLY WITH A DISCHA RGE PERMIT ISSUED BY THE DEPARTMENT UNDER THIS 21
TITLE. 22
(II) THE DEPARTMENT MAY PROVID E FUNDING UNDER THIS 23
SECTION TO THE OWNER OF A PRIVATELY OWNED WASTEWATER FACILITY THAT 24
WOULD NOT BE ELIG IBLE FOR FUNDING UND ER SUBPARAGRAPH (I) OF THIS 25
PARAGRAPH IF THE DEPARTMENT DETERMINES , BASED ON PROOF SUBMI TTED BY 26
THE OWNER OF THE FAC ILITY WHEN APPLYING FOR FUNDING UNDER TH IS SECTION, 27
THAT: 28
1. THE OWNER OF THE FACI LITY LACKS THE FINAN CIAL 29
CAPACITY TO PURCHASE OR UPGRADE A WASTEWA TER TREATMENT SYSTEM THAT 30
WOULD BRING THE FACI LITY INTO COMPLIANCE WITH THE DISCHARGE P ERMIT 31
ISSUED BY THE DEPARTMENT ; 32
2. THE FACILITY IS INDEP ENDENTLY OWNED AND 33
OPERATED; AND 34
3. THE OWNER OF THE FACI LITY IS NOT A SUBSID IARY 35
OF ANOTHER BUSINESS . 36
4 SENATE BILL 354
(III) 1. THE DEPARTMENT SHALL INCL UDE WITH ITS ANNUAL 1
OPERATING BUDGET PRO POSAL SUBMITTED TO T HE DEPARTMENT OF BUDGET AND 2
MANAGEMENT A LIST OF EACH FACILITY TO WHI CH THE DEPARTMENT PROVIDED 3
FUNDING UNDER SUBPAR AGRAPH (II) OF THIS PARAGRAPH IN THE IMMEDIATELY 4
PRECEDING 12 MONTHS AND THE REASO NS FOR PROVIDING THE FUNDING. 5
2. IF THE DEPARTMENT PROVIDES T HE LIST UNDER 6
SUBSUBPARAGRAPH 1 OF THIS SUBPARAGRAPH TO THE DEPARTMENT OF BUDGET 7
AND MANAGEMENT , THE DEPARTMENT SHALL IMME DIATELY PROVIDE THE LIST TO 8
THE GENERAL ASSEMBLY IN ACCORDANC E WITH § 2–1257 OF THE STATE 9
GOVERNMENT ARTICLE. 10
SECTION 2. AND BE IT FURTHER ENACTED, That the Laws of Maryland read 11
as follows: 12
Article – Environment 13
9–1605.2. 14
(k) (1) [Beginning January 1, 2009, and every year thereafter,] EACH YEAR 15
the Department and the Department of Planning shall jointly report on [the]: 16
(I) THE impact that a wastewater treatment facility that was 17
upgraded to enhanced nutrient removal during the calendar year before the previous 18
calendar year with funds from the Bay Restoration Fund had on growth within the 19
municipality or county in which the wastewater treatment facility is located; AND 20
(II) EACH PRIVATELY OWNED WASTEWATER FACILITY TO 21
WHICH THE DEPARTMENT PROVIDED F UNDING UNDER § 9–1605.4(Q)(3)(II) OF THIS 22
SUBTITLE SUBSECTION (I)(12) OF THIS SECTION IN THE IMMEDIATELY P RECEDING 23
12 MONTHS AND THE REASONS FOR PROV IDING THE FUNDING . 24
(2) (i) In preparing the report required under paragraph (1) of this 25
subsection, the Department of the Environment and the Department of Planning shall: 26
1. Include the number of permits issued for residential and 27
commercial development to be served by the upgraded wastewater treatment facility; and 28
2. Determine what other appropriate information is to be 29
included in the report. 30
(ii) In determining the information that should be included in the 31
report under subparagraph (i) of this paragraph, the Department of the Environment and 32
the Department of Planning shall act: 33
SENATE BILL 354 5
1. In consultation with the Bay Restoration Fund Advisory 1
Committee; and 2
2. With the assistance of the municipality and county in 3
which an upgraded wastewater treatment facility is located. 4
(3) The Department and the Department of Planning shall submit the 5
report required under paragraph (1) of this subsection to the President of the Senate, the 6
Speaker of the House, the Senate Budget and Taxation Committee, the Senate Education, 7
Health, and Environmental Affairs Committee, the House Appropriations Committee, the 8
House Environment and Transportation Committee, and the Governor, in accordance with 9
§ 2–1257 of the State Government Article. 10
9–1605.4. 11
(q) (1) (i) Subject to subparagraph (ii) of this paragraph, a project or 12
practice that is partially financed with another source of State funds may be funded under 13
this section. 14
(ii) Funding provided to a project or practice under this subsection 15
shall be prorated to cover only the portion of the environmental benefit not funded by 16
another State source. 17
(2) (i) An environmental outcome that is funded entirely with public 18
funds is not eligible to be purchased with funds from the Account. 19
(ii) If an environmental outcome is partially funded with public 20
funds and is verified under subsection (l) of this section, funds from the Account may be 21
used to purchase the remaining portion of the environmental outcome that is not funded 22
with public funds. 23
(3) (I) EXCEPT AS PROVIDED IN SUBPARAGRAPH (II) OF THIS 24
PARAGRAPH , THE DEPARTMENT MAY NOT PR OVIDE FUNDING UNDER THIS SECTION 25
TO THE OWNER OF A PR IVATELY OWNED WASTEW ATER FACILITY, AS DEFINED IN § 26
9–1605.2(I) OF THIS SUBTITLE, IF THE DEPARTMENT OR THE U.S. ENVIRONMENTAL 27
PROTECTION AGENCY HAS DETERMINED IN THE 2 YEARS IMMEDIATELY PR ECEDING 28
THE DATE ON WHICH TH E OWNER OF THE FACIL ITY SUBMITTED A FUND ING 29
PROPOSAL UNDER THIS SECTION THAT THE FAC ILITY DID NOT COMPLY WITH A 30
DISCHARGE PERMIT ISS UED BY THE DEPARTMENT UNDER THIS TITLE. 31
(II) THE DEPARTMENT MAY PROVID E FUNDING UNDER THIS 32
SECTION TO THE OWNER OF A PRIVATELY OWNED WASTEWATER FACILITY THAT 33
WOULD NOT BE ELIGIBL E FOR FUNDING UNDER SUBPARAGRAPH (I) OF THIS 34
PARAGRAPH IF THE DEPARTMENT DETERMINES , BASED ON PROOF SUBMI TTED BY 35
THE OWNER OF THE FAC ILITY WHEN SUBMITTIN G A FUNDING PROPOSAL UNDER 36
THIS SECTION, THAT: 37 6 SENATE BILL 354
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 BR ING THE FACILITY INT O COMPLIANCE WITH TH E DISCHARGE 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 INCLUDE WITH ITS ANN UAL 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 TH E REASONS FOR PROVID ING 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 ACCORDANCE WITH § 2–1257 OF THE STATE 17
GOVERNMENT ARTICLE. 18
SECTION 3. 2. AND BE IT FURTHER ENACTED, That this Act shall take effect 19
July 1, 2022. Section 2 of this Act shall remain effective until the taking effect of the 20
termination provision specified in Section 3 of Chapters 694 and 695 of the Acts of the 21
General Assembly of 2021. If that termination provision takes effect, Section 2 of this Act 22
shall be abrogated and of no further force and effect. This Act may not be interpreted to 23
have any effect on that termination provision. 24
Approved:
________________________________________________________________________________
Governor.
________________________________________________________________________________
President of the Senate.
________________________________________________________________________________
Speaker of the House of Delegates.