LAWRENCE J. HOGAN, JR., Governor Ch. 341
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Chapter 341
(Senate Bill 354)
AN ACT concerning
Bay Restoration Fund – Intended Use Plans and Privately Owned Wastewater
Facilities
FOR the purpose of requiring the Department of the Environment to provide a certain
intended use plan to the General Assembly within a certain period of time; altering
the definition of “privately owned wastewater facility” as it relates to the awarding
of grants from the Bay Restoration Fund; requiring the Department of the
Environment and the Department of Planning to report on and the Department of
the Environment to provide certain information regarding funding for privately
owned wastewater facilities to the General Assembly and the Department of Budget
and Management; prohibiting the Department of the Environment from providing
funding from the Bay Restoration Fund’s Clean Water Commerce Account Fund to
privately owned wastewater facilities if a determination is made that the facility was
not in compliance with a certain discharge permit for a certain period of time;
prohibiting this Act from being construed to apply to a certain industrial wastewater
facility that is connecting to a publicly owned wastewater facility; and generally
relating to funding from the Bay Restoration Fund, intended use plans, and privately
owned wastewater facilities.
BY repealing and reenacting, with amendments,
Article – Environment
Section 9–1605(a)(1), 9–1605(a)(1) and 9–1605.2(i)(1) and (2)(i) and (k), and
9–1605.4(q) (k)
Annotated Code of Maryland
(2014 Replacement Volume and 2021 Supplement)
BY adding to
Article – Environment
Section 9–1605(f) and 9–1605.2(i)(12)
Annotated Code of Maryland
(2014 Replacement Volume and 2021 Supplement)
BY repealing and reenacting, without amendments,
Article – Environment
Section 9–1605.2(i)(2)(i)
Annotated Code of Maryland
(2014 Replacement Volume and 2021 Supplement)
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND,
That the Laws of Maryland read as follows:
Ch. 341 2022 LAWS OF MARYLAND
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Article – Environment
9–1605.
(a) (1) (I) There is a Maryland Water Quality Revolving Loan Fund.
(II) The Water Quality Fund shall be maintained and administered
by the Administration in accordance with the provisions of this subtitle and such rules or
program directives as the Secretary or the Board may from time to time prescribe.
(F) THE DEPARTMENT SHALL PROV IDE TO THE GENERAL ASSEMBLY, IN
ACCORDANCE WITH § 2–1257 OF THE STATE GOVERNMENT ARTICLE, A COPY OF
EACH INTENDED USE PL AN THAT THE DEPARTMENT SUBMITS TO THE U.S.
ENVIRONMENTAL PROTECTION AGENCY TO REQUEST FED ERAL CAPITALIZATION
GRANTS AND AWARDS IN ACCORDANCE WITH TITLE VI OF THE FEDERAL WATER
POLLUTION CONTROL ACT FOR USE IN THE WATER QUALITY FUND WITHIN 5 DAYS
AFTER THE DEPARTMENT PUBLISHES THE PLAN FOR PUBLIC COMMENT.
9–1605.2.
(i) (1) (i) In this subsection the following words have the meanings
indicated.
(ii) “Eligible costs” means the additional costs that would be
attributable to upgrading a wastewater facility to enhanced nutrient removal, as
determined by the Department.
(iii) “Privately owned wastewater facility” means a wastewater
facility that is owned by a private entity AND PROVIDES WASTEWA TER TREATMENT OR
DISPOSAL SERVICES TO MULTIPLE RESIDENTIAL DWELLING UNITS .
(iv) “Publicly owned wastewater facility” means a wastewater facility
that is owned by this State or a political subdivision, municipal corporation, or other public
entity.
(2) Funds in the Bay Restoration Fund shall be used only:
(i) 1. To award grants for up to 100% of eligible costs of projects
relating to planning, design, construction, and upgrade of a publicly owned wastewater
facility for flows up to the design capacity of the wastewater facility, as approved by the
Department, to achieve enhanced nutrient removal in accordance with paragraph (3) of this
subsection; and
2. To SUBJECT TO PARAGRAPH (12) OF THIS
SUBSECTION, TO award grants for up to 50% of eligible costs of projects relating to LAWRENCE J. HOGAN, JR., Governor Ch. 341
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planning, design, construction, and upgrade of a privately owned wastewater facility for
flows up to the design capacity of the wastewater facility, as approved by the Department,
to achieve enhanced nutrient removal in accordance with paragraph (3) of this subsection;
(12) (I) EXCEPT AS PROVIDED IN SUBPARAGRAPH (II) OF THIS
PARAGRAPH , THE DEPARTMENT MAY NOT PR OVIDE FUNDING UNDER THIS SECTION
TO THE OWNER OF A PR IVATELY OWNED WASTEWATER FACILITY IF THE
DEPARTMENT OR THE U.S. ENVIRONMENTAL PROTECTION AGENCY HAS
DETERMINED IN THE 2 YEARS IMMEDIATELY PR ECEDING THE DATE ON WHICH THE
OWNER APPLIED FOR FU NDING UNDER THIS SEC TION THAT THE FACILI TY DID NOT
COMPLY WITH A DISCHA RGE PERMI T ISSUED BY THE DEPARTMENT UNDER THIS
TITLE.
(II) THE DEPARTMENT MAY PROVID E FUNDING UNDER THIS
SECTION TO THE OWNER OF A PRIVATELY OWNED WASTEWATER FACILITY THAT
WOULD NOT BE ELIGIBL E FOR FUNDING UNDER SUBPARAGRAPH (I) OF THIS
PARAGRAPH IF THE:
1. THE THE DEPARTMENT DETERMINES , BASED ON
PROOF SUBMITTED BY T HE OWNER OF THE FACI LITY WHEN APPLYING F OR FUNDING
UNDER THIS SECTION , THAT:
1. A. 1. THE THE OWNER OF THE FACILIT Y LACKS THE
FINANCIAL CAPACITY T O PURCHASE OR UPGRAD E A WASTEWATER TREATMENT
SYSTEM THAT WOULD BR ING THE FACILITY INT O COMPLIANCE WITH TH E
DISCHARGE PERMIT ISS UED BY THE DEPARTMENT ;.
2. B. 2. THE FACILITY IS INDEP ENDENTLY OWNED AND
OPERATED; AND
3. C. 3. THE OWNER OF THE FACI LITY IS NOT A
SUBSIDIARY OF ANOTHE R BUSINESS; OR
2. A. THE PROJECT FOR THE P RIVATELY OWNED
WASTEWATER FACILITY HAS RECEIVED FUNDING FROM THE BAY RESTORATION
FUND UNDER THIS SUBSE CTION IN THE FISCAL YEAR 2023 CAPITAL BUDGET OR AN Y
PRECEDING FISCAL YEA R; AND
B. THE FUNDING IS PROVIDED FOR A PERCE NT OF
ELIGIBLE COSTS OF TH E PROJECT THAT DOES NOT EXCEED THE PERCE NT OF
ELIGIBLE COSTS OF TH E PROJECT PROVIDED I N THE FISCAL YEAR 2023 CAPITAL
BUDGET OR ANY PRECED ING FISCAL YEAR.
Ch. 341 2022 LAWS OF MARYLAND
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(III) 1. THE DEPARTMENT SHALL INCL UDE WITH ITS ANNUA L
OPERATING BUDGET PRO POSAL SUBMITTED TO T HE DEPARTMENT OF BUDGET AND
MANAGEMENT A LIST OF EACH FACILITY TO WHI CH THE DEPARTMENT PROVIDED
FUNDING UNDER SUBPAR AGRAPH (II) (II)1 (II) OF THIS PARAGRAPH IN THE
IMMEDIATELY PRECEDIN G 12 MONTHS AND THE REASO NS FOR PROVIDING THE
FUNDING.
2. IF THE DEPARTMENT PROVIDES T HE LIST UNDER
SUBSUBPARAGRAPH 1 OF THIS SUBPARAGRAPH TO THE DEPARTMENT OF BUDGET
AND MANAGEMENT , THE DEPARTMENT SHALL IMME DIATELY PROVIDE THE LIST TO
THE GENERAL ASSEMBLY IN ACCORDANC E WITH § 2–1257 OF THE STATE
GOVERNMENT ARTICLE.
SECTION 2. AND BE IT FURTHER ENACTED, That the Laws of Maryland read
as follows:
Article – Environment
9–1605.2.
(k) (1) [Beginning January 1, 2009, and every year thereafter,] EACH YEAR
the Department and the Department of Planning shall jointly report on [the]:
(I) THE impact that a wastewater treatment facility that was
upgraded to enhanced nutrient removal during the calendar year before the previous
calendar year with funds from the Bay Restoration Fund had on growth within the
municipality or county in which the wastewater treatment facility is located; AND
(II) EACH PRIVATELY OWNED WASTEWATER FACILITY TO
WHICH THE DEPARTMENT PROVIDED F UNDING UNDER § 9–1605.4(Q)(3)(II) OF THIS
SUBTITLE SUBSECTION (I)(12) OF THIS SECTION IN THE IMMEDIATELY P RECEDING
12 MONTHS AND THE REASO NS FOR PROVIDING THE FUNDING.
(2) (i) In preparing the report required under paragraph (1) of this
subsection, the Department of the Environment and the Department of Planning shall:
1. Include the number of permits issued for residential and
commercial development to be served by the upgraded wastewater treatment facility; and
2. Determine what other appropriate information is to be
included in the report.
LAWRENCE J. HOGAN, JR., Governor Ch. 341
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(ii) In determining the information that should be included in the
report under subparagraph (i) of this paragraph, the Department of the Environment and
the Department of Planning shall act:
1. In consultation with the Bay Restoration Fund Advisory
Committee; and
2. With the assistance of the municipality and county in
which an upgraded wastewater treatment facility is located.
(3) The Department and the Department of Planning shall submit the
report required under paragraph (1) of this subsection to the President of the Senate, the
Speaker of the House, the Senate Budget and Taxation Committee, the Senate Education,
Health, and Environmental Affairs Committee, the House Appropriations Committee, the
House Environment and Transportation Committee, and the Governor, in accordance with
§ 2–1257 of the State Government Article.
9–1605.4.
(q) (1) (i) Subject to subparagraph (ii) of this paragraph, a project or
practice that is partially financed with another source of State funds may be funded under
this section.
(ii) Funding provided to a project or practice under this subsection
shall be prorated to cover only the portion of the environmental benefit not funded by
another State source.
(2) (i) An environmental outcome that is funded entirely with public
funds is not eligible to be purchased with funds from the Account.
(ii) If an environmental outcome is partially funded with public
funds and is verified under subsection (l) of this section, funds from the Account may be
used to purchase the remaining portion of the environmental outcome that is not funded
with public funds.
(3) (I) EXCEPT AS PROVIDED IN SUBPARAGRAPH (II) OF THIS
PARAGRAPH , THE DEPARTMENT MAY NOT PR OVIDE FUNDING UNDER THIS SECTION
TO THE OWNER OF A P RIVATELY OWNED WASTE WATER FACILITY , AS DEFINED IN §
9–1605.2(I) OF THIS SUBTITLE, IF THE DEPARTMENT OR THE U.S. ENVIRONMENTAL
PROTECTION AGENCY HAS DETERMINED IN THE 2 YEARS IMMEDIATELY PR ECEDING
THE DATE ON WHICH TH E OWNER OF THE FACIL ITY SUBMITTED A FUND ING
PROPOSAL UNDER THIS SECTION THAT THE FAC ILITY DID NOT COMPLY WITH A
DISCHARGE PERMIT ISS UED BY THE DEPARTMENT UNDER THIS TITLE.
(II) THE DEPARTMENT MAY PROVID E FUNDING UNDER THIS
SECTION TO THE OWNER OF A PRIVATELY OWNED WASTEWATER FACILITY THAT Ch. 341 2022 LAWS OF MARYLAND
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WOULD NOT BE ELIGIBLE FOR FUNDING UNDER SU BPARAGRAPH (I) OF THIS
PARAGRAPH IF THE DEPARTMENT DETERMINES , BASED ON PROOF SUBMI TTED BY
THE OWNER OF THE FAC ILITY WHEN SUBMITTIN G A FUNDING PROPOSAL UNDER
THIS SECTION, THAT:
1. THE OWNER OF THE FACI LITY LACKS THE FINANCIAL
CAPACITY TO PURCHASE OR UPGRADE A WASTEWA TER TREATMENT SYSTEM THAT
WOULD BRING THE FACI LITY INTO COMPLIANCE WITH THE DISCHARGE P ERMIT
ISSUED BY THE DEPARTMENT ;
2. THE FACILITY IS INDEP ENDENTLY OWNED AND
OPERATED; AND
3. THE OWNER OF THE FACILIT Y IS NOT A SUBSIDIAR Y
OF ANOTHER BUSINESS .
(III) 1. THE DEPARTMENT SHALL INCL UDE WITH ITS ANNUAL
OPERATING BUDGET PRO POSAL SUBMITTED TO T HE DEPARTMENT OF BUDGET AND
MANAGEMENT A LIST OF EACH FACILITY TO WHI CH THE DEPARTMENT PROVIDED
FUNDING UNDER SUBPAR AGRAPH (II) OF THIS PARAGRAPH IN THE IMMEDIATELY
PRECEDING 12 MONTHS AND THE REASO NS FOR PROVIDING THE FUNDING.
2. IF THE DEPARTMENT PROVIDES T HE LIST UNDER
SUBSUBPARAGRAPH 1 OF THIS SUBPARAGRAPH TO THE DEPARTMENT OF BUDGET
AND MANAGEMENT , THE DEPARTMENT SHALL IMME DIATELY PROVIDE THE LIST TO
THE GENERAL ASSEMBLY IN ACCORDANC E WITH § 2–1257 OF THE STATE
GOVERNMENT ARTICLE.
SECTION 2. AND BE IT FURTHER ENACTED, That this Act may not be construed
to apply to any privately owned industrial wastewater facility that is connecting to a publicly
owned wastewater facility and has been awarded grant funding for this purpose from the
Bay Restoration Fund in the Fiscal Year 2023 Capital Budget or any preceding Capital
Budget.
SECTION 3. 2. 3. AND BE IT FURTHER ENACTED, That this Act shall take effect
July 1, 2022. Section 2 of this Act shall remain effective until the taking effect of the
termination provision specified in Section 3 of Chapters 694 and 695 of the Acts of the
General Assembly of 2021. If that termination provision takes effect, Section 2 of this Act
shall be abrogated and of no further force and effect. This Act may not be interpreted to
have any effect on that termination provision.
Approved by the Governor, May 12, 2022.