EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G 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.
Italics indicate opposite chamber/conference committee amendments.
*sb0354*
SENATE BILL 354
M3 (2lr1313)
ENROLLED BILL
— Education, Health, and Environmental Affairs/Environment and Transportation —
Introduced by Senators Elfreth and Pinsky
Read and Examined by Proofreaders:
_______________________________________________
Proofreader.
_______________________________________________
Proofreader.
Sealed with the Great Seal and presented to the Governor, for his approval this
_______ day of _______________ at ________________________ o’clock, ________M.
______________________________________________
President.
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; 14
prohibiting this Act from being construed to apply to a certain industrial wastewater 15 2 SENATE BILL 354
facility that is connecting to a publicly owned wastewater facility; and generally 1
relating to funding from the Bay Restoration Fund, intended use plans, and privately 2
owned wastewater facilities. 3
BY repealing and reenacting, with amendments, 4
Article – Environment 5
Section 9–1605(a)(1), 9–1605(a)(1) and 9–1605.2(i)(1) and (2)(i) and (k), and 6
9–1605.4(q) (k) 7
Annotated Code of Maryland 8
(2014 Replacement Volume and 2021 Supplement) 9
BY adding to 10
Article – Environment 11
Section 9–1605(f) and 9–1605.2(i)(12) 12
Annotated Code of Maryland 13
(2014 Replacement Volume and 2021 Supplement) 14
BY repealing and reenacting, without amendments, 15
Article – Environment 16
Section 9–1605.2(i)(2)(i) 17
Annotated Code of Maryland 18
(2014 Replacement Volume and 2021 Supplement) 19
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 20
That the Laws of Maryland read as follows: 21
Article – Environment 22
9–1605. 23
(a) (1) (I) There is a Maryland Water Quality Revolving Loan Fund. 24
(II) The Water Quality Fund shall be maintained and administered 25
by the Administration in accordance with the provisions of this subtitle and such rules or 26
program directives as the Secretary or the Board may from time to time prescribe. 27
(F) THE DEPARTMENT SHALL PROV IDE TO THE GENERAL ASSEMBLY, IN 28
ACCORDANCE WITH § 2–1257 OF THE STATE GOVERNMENT ARTICLE, A COPY OF 29
EACH INTENDED USE PL AN THAT THE DEPARTMENT SUBMITS TO THE U.S. 30
ENVIRONMENTAL PROTECTION AGENCY TO REQUEST FED ERAL CAPITALIZATION 31
GRANTS AND AWARDS IN ACCORDANCE WITH TITLE VI OF THE FEDERAL WATER 32
POLLUTION CONTROL ACT FOR USE IN THE WATER QUALITY FUND WITHIN 5 DAYS 33
AFTER THE DEPARTMENT PUBLISHES THE PLAN FOR PUBLIC COMMENT. 34
9–1605.2. 35
SENATE BILL 354 3
(i) (1) (i) In this subsection the following words have the meanings 1
indicated. 2
(ii) “Eligible costs” means the additional costs that would be 3
attributable to upgrading a wastewater facility to enhanced nutrient removal, as 4
determined by the Department. 5
(iii) “Privately owned wastewater facility” means a wastewater 6
facility that is owned by a private entity AND PROVIDES WASTEWA TER TREATMENT OR 7
DISPOSAL SERVICES TO MULTIPLE RESIDENTIAL DWELLING UNITS . 8
(iv) “Publicly owned wastewater facility” means a wastewater facility 9
that is owned by this State or a political subdivision, municipal corporation, or other public 10
entity. 11
(2) Funds in the Bay Restoration Fund shall be used only: 12
(i) 1. To award grants for up to 100% of eligible costs of projects 13
relating to planning, design, construction, and upgrade of a publicly owned wastewater 14
facility for flows up to the design capacity of the wastewater facility, as approved by the 15
Department, to achieve enhanced nutrient removal in accordance with paragraph (3) of this 16
subsection; and 17
2. To SUBJECT TO PARAGRAPH (12) OF THIS 18
SUBSECTION, TO award grants for up to 50% of eligible costs of projects relating to 19
planning, design, construction, and upgrade of a privately owned wastewater facility for 20
flows up to the design capacity of the wastewater facility, as approved by the Department, 21
to achieve enhanced nutrient removal in accordance with paragraph (3) of this subsection; 22
(12) (I) EXCEPT AS PROVIDED IN SUBPARAGRAPH (II) OF THIS 23
PARAGRAPH , THE DEPARTMENT MAY NOT PR OVIDE FUNDING UNDER THIS SECTION 24
TO THE OWNER OF A PR IVATELY OWNED WASTEW ATER FACILITY IF THE 25
DEPARTMENT OR THE U.S. ENVIRONMENTAL PROTECTION AGENCY HAS 26
DETERMINED IN THE 2 YEARS IMMEDIATELY PR ECEDING THE DATE ON WHICH THE 27
OWNER APPLIED FOR FU NDING UNDER THIS SEC TION THAT THE FACILI TY DID NOT 28
COMPLY WITH A DISCHA RGE PERMIT ISSUED BY THE DEPARTMENT UNDER THIS 29
TITLE. 30
(II) THE DEPARTMENT MAY PROVID E FUNDING UNDER THIS 31
SECTION TO THE OWNER OF A PRIVATELY OWNED WASTEWATER FACILITY THAT 32
WOULD NOT BE ELIGIBL E FOR FUNDING UNDER SUBPARAGRAPH (I) OF THIS 33
PARAGRAPH IF THE: 34
4 SENATE BILL 354
1. THE THE DEPARTMENT DETERMINES , BASED ON 1
PROOF SUBMITTED BY T HE OWNER OF THE FACI LITY WHEN APPLYING F OR FUNDING 2
UNDER THIS SECTION , THAT: 3
1. A. 1. THE THE OWNER OF THE FACILIT Y LACKS THE 4
FINANCIAL CAPACITY T O PURCHASE OR UPGRAD E A WASTEWATER TREAT MENT 5
SYSTEM THAT WOULD BRING THE FACILITY INTO COMPLI ANCE WITH THE 6
DISCHARGE PERMIT ISS UED BY THE DEPARTMENT ;. 7
2. B. 2. THE FACILITY IS INDEP ENDENTLY OWNED AND 8
OPERATED; AND 9
3. C. 3. THE OWNER OF THE FACI LITY IS NOT A 10
SUBSIDIARY OF ANOTHE R BUSINESS; OR 11
2. A. THE PROJECT FOR THE P RIVATELY OWNED 12
WASTEWATER FACILITY HAS RECEIVED FUNDING FROM THE BAY RESTORATION 13
FUND UNDER THIS SUBSE CTION IN THE FISCAL YEAR 2023 CAPITAL BUDGET OR AN Y 14
PRECEDING FISCAL YEA R; AND 15
B. THE FUNDING IS PROVID ED FOR A PERCENT OF 16
ELIGIBLE COSTS OF TH E PROJECT THAT DOES NOT EXCEED THE PERCE NT OF 17
ELIGIBLE COSTS OF TH E PROJECT PROVIDED I N THE FISCAL YEAR 2023 CAPITAL 18
BUDGET OR ANY PRECED ING FISCAL YEAR. 19
(III) 1. THE DEPARTMENT SHALL INCL UDE WITH ITS ANNUAL 20
OPERATING BUDGET PRO POSAL SUBMITTED TO THE DEPARTMENT OF BUDGET AND 21
MANAGEMENT A LIST OF EACH FACILITY TO WHI CH THE DEPARTMENT PROVIDED 22
FUNDING UNDER SUBPAR AGRAPH (II) (II)1 (II) OF THIS PARAGRAPH IN THE 23
IMMEDIATELY PRECEDIN G 12 MONTHS AND THE REASO NS FOR PROVIDING THE 24
FUNDING. 25
2. IF THE DEPARTMENT PROVIDES T HE LIST UNDER 26
SUBSUBPARAGRAPH 1 OF THIS SUBPARAGRAPH TO THE DEPARTMENT OF BUDGET 27
AND MANAGEMENT , THE DEPARTMENT SHALL IMME DIATELY PROVIDE THE LIST TO 28
THE GENERAL ASSEMBLY IN ACCORDANC E WITH § 2–1257 OF THE STATE 29
GOVERNMENT ARTICLE. 30
SECTION 2. AND BE IT FURTHER ENACTED, That the Laws of Maryland read 31
as follows: 32
Article – Environment 33
9–1605.2. 34 SENATE BILL 354 5
(k) (1) [Beginning January 1, 2009, and every year thereafter,] EACH YEAR 1
the Department and the Department of Planning shall jointly report on [the]: 2
(I) THE impact that a wastewater treatment facility that was 3
upgraded to enhanced nutrient removal during the calendar year before the previous 4
calendar year with funds from the Bay Restoration Fund had on growth within the 5
municipality or county in which the wastewater treatment facility is located; AND 6
(II) EACH PRIVATELY OWNED WASTEWATER FACILITY TO 7
WHICH THE DEPARTMENT PROVIDED F UNDING UNDER § 9–1605.4(Q)(3)(II) OF THIS 8
SUBTITLE SUBSECTION (I)(12) OF THIS SECTION IN THE IMMEDIATELY P RECEDING 9
12 MONTHS AND THE REASO NS FOR PROVIDING THE FUNDING. 10
(2) (i) In preparing the report required under paragraph (1) of this 11
subsection, the Department of the Environment and the Department of Planning shall: 12
1. Include the number of permits issued for residential and 13
commercial development to be served by the upgraded wastewater treatment facility; and 14
2. Determine what other appropriate information is to be 15
included in the report. 16
(ii) In determining the information that should be included in the 17
report under subparagraph (i) of this paragraph, the Department of the Environment and 18
the Department of Planning shall act: 19
1. In consultation with the Bay Restoration Fund Advisory 20
Committee; and 21
2. With the assistance of the municipality and county in 22
which an upgraded wastewater treatment facility is located. 23
(3) The Department and the Department of Planning shall submit the 24
report required under paragraph (1) of this subsection to the President of the Senate, the 25
Speaker of the House, the Senate Budget and Taxation Committee, the Senate Education, 26
Health, and Environmental Affairs Committee, the House Appropriations Committee, the 27
House Environment and Transportation Committee, and the Governor, in accordance with 28
§ 2–1257 of the State Government Article. 29
9–1605.4. 30
(q) (1) (i) Subject to subparagraph (ii) of this paragraph, a project or 31
practice that is partially financed with another source of State funds may be funded under 32
this section. 33
6 SENATE BILL 354
(ii) Funding provided to a project or practice under this subsection 1
shall be prorated to cover only the portion of the environmental benefit not funded by 2
another State source. 3
(2) (i) An environmental outcome that is funded entirely with public 4
funds is not eligible to be purchased with funds from the Account. 5
(ii) If an environmental outcome is partially funded with public 6
funds and is verified under subsection (l) of this section, funds from the Account may be 7
used to purchase the remaining portion of the environmental outcome that is not funded 8
with public funds. 9
(3) (I) EXCEPT AS PROVIDED IN SUBPARAGRAPH (II) OF THIS 10
PARAGRAPH , THE DEPARTMENT MAY NOT PR OVIDE FUNDING UNDER THIS SECTION 11
TO THE OWNER OF A PRIVATELY OWNED WAST EWATER FACILITY , AS DEFINED IN § 12
9–1605.2(I) OF THIS SUBTITLE, IF THE DEPARTMENT OR THE U.S. ENVIRONMENTAL 13
PROTECTION AGENCY HAS DETERMINED IN THE 2 YEARS IMMEDIATELY PR ECEDING 14
THE DATE ON WHICH TH E OWNER OF THE FACIL ITY SUBMITTED A FUN DING 15
PROPOSAL UNDER THIS SECTION THAT THE FAC ILITY DID NOT COMPLY WITH A 16
DISCHARGE PERMIT ISS UED BY THE DEPARTMENT UNDER THIS TITLE. 17
(II) THE DEPARTMENT MAY PROVID E FUNDING UNDER THIS 18
SECTION TO THE OWNER OF A PRIVATELY OWNED WASTEWATER FACILITY THAT 19
WOULD NOT BE ELIGIBLE FOR FUNDING UNDER SU BPARAGRAPH (I) OF THIS 20
PARAGRAPH IF THE DEPARTMENT DETERMINES , BASED ON PROOF SUBMI TTED BY 21
THE OWNER OF THE FAC ILITY WHEN SUBMITTIN G A FUNDING PROPOSAL UNDER 22
THIS SECTION, THAT: 23
1. THE OWNER OF THE FACI LITY LACKS THE FINANCIAL 24
CAPACITY TO PURCHASE OR UPGRADE A WASTEWA TER TREATMENT SYSTEM THAT 25
WOULD BRING THE FACI LITY INTO COMPLIANCE WITH THE DISCHARGE P ERMIT 26
ISSUED BY THE DEPARTMENT ; 27
2. THE FACILITY IS INDEP ENDENTLY OWNED AND 28
OPERATED; AND 29
3. THE OWNER OF THE FACILIT Y IS NOT A SUBSIDIAR Y 30
OF ANOTHER BUSINESS . 31
(III) 1. THE DEPARTMENT SHALL INCL UDE WITH ITS ANNUAL 32
OPERATING BUDGET PRO POSAL SUBMITTED TO T HE DEPARTMENT OF BUDGET AND 33
MANAGEMENT A LIST OF EACH FACILITY TO WHI CH THE DEPARTMENT PROVIDED 34
FUNDING UNDER SUBPAR AGRAPH (II) OF THIS PARAGRAPH IN THE IMMEDIATELY 35
PRECEDING 12 MONTHS AND THE REASO NS FOR PROVIDING THE FUNDING. 36 SENATE BILL 354 7
2. IF THE DEPARTMENT PROVIDES T HE LIST UNDER 1
SUBSUBPARAGRAPH 1 OF THIS SUBPARAGRAPH TO THE DEPARTMENT OF BUDGET 2
AND MANAGEMENT , THE DEPARTMENT SHALL IMME DIATELY PROVIDE THE LIST TO 3
THE GENERAL ASSEMBLY IN ACCORDANC E WITH § 2–1257 OF THE STATE 4
GOVERNMENT ARTICLE. 5
SECTION 2. AND BE IT FURTHER ENACTED, That this Act may not be construed 6
to apply to any privately owned industrial wastewater facility that is connecting to a publicly 7
owned wastewater facility and has been awarded grant funding for this purpose from the 8
Bay Restoration Fund in the Fiscal Year 2023 Capital Budget or any preceding Capital 9
Budget. 10
SECTION 3. 2. 3. AND BE IT FURTHER ENACTED, That this Act shall take effect 11
July 1, 2022. Section 2 of this Act shall remain effective until the taking effect of the 12
termination provision specified in Section 3 of Chapters 694 and 695 of the Acts of the 13
General Assembly of 2021. If that termination provision takes effect, Section 2 of this Act 14
shall be abrogated and of no further force and effect. This Act may not be interpreted to 15
have any effect on that termination provision. 16
Approved:
________________________________________________________________________________
Governor.
________________________________________________________________________________
President of the Senate.
________________________________________________________________________________
Speaker of the House of Delegates.