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. *sb0492* SENATE BILL 492 M3 2lr1566 CF HB 649 By: Senators Pinsky, Guzzone, Elfreth, Lam, Patterson, Rosapepe, and Washington Washington, and Jackson Introduced and read first time: January 27, 2022 Assigned to: Education, Health, and Environmental Affairs Committee Report: Favorable with amendments Senate action: Adopted Read second time: March 4, 2022 Returned to second reading: March 4, 2022 Senate action: Adopted with floor amendments Read second time: March 4, 2022 CHAPTER ______ AN ACT concerning 1 Environment – Discharge Permits – Inspections and Administrative 2 Continuations 3 FOR the purpose of limiting the period of time for which the Department of the 4 Environment may administratively continue certain water pollution discharge 5 permits; establishing inspection and reporting requirements for certain permit 6 holders; establishing administrative penalties for certain permit holders determined 7 to be in significant noncompliance of certain State or federal water quality 8 standards, effluent limitations, or other requirements; requiring the Department to 9 clear a certain backlog of administratively continued permits on or before a certain 10 date; and generally relating to water pollution discharge permits. 11 BY repealing and reenacting, with without amendments, 12 Article – Environment 13 Section 9–328 14 Annotated Code of Maryland 15 (2014 Replacement Volume and 2021 Supplement) 16 BY adding to 17 Article – Environment 18 Section 9–328.1 19 2 SENATE BILL 492 Annotated Code of Maryland 1 (2014 Replacement Volume and 2021 Supplement) 2 SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 3 That the Laws of Maryland read as follows: 4 Article – Environment 5 9–328. 6 (a) (1) Unless it is renewed for another term, a discharge permit expires on 7 the expiration date the Department sets at issuance or renewal. 8 (2) The Department may not issue a discharge permit for a term longer 9 than 5 years. 10 (b) Before a discharge permit expires, the Department may renew the discharge 11 permit for another term: 12 (1) After administrative review in accordance with the rules and 13 regulations that the Department adopts; 14 (2) After notice and opportunity for public hearing on the subject; 15 (3) On the condition that the discharge meets or will meet: 16 (i) Any applicable State or federal water quality standards or 17 effluent limitations; and 18 (ii) Any applicable requirement of this subtitle; and 19 (4) If the permit holder pays all application and permit fees assessed by the 20 Department under this subtitle. 21 (c) (1) ON OR AFTER JULY 1, 2022, THE DEPARTMENT MAY NOT 22 ADMINISTRATIVELY CON TINUE A DISCHARGE PE RMIT FOR A PERIOD LO NGER THAN 23 3 YEARS. 24 (2) ON OR AFTER JANUARY 1, 2027, THE DEPARTMENT MAY NOT 25 ADMINISTRATIVELY CON TINUE A DISCHARGE PE RMIT FOR A PERIOD LO NGER THAN 26 1 YEAR. 27 (D) Administrative review proceedings under this section shall be completed at 28 least 60 days before the expiration date of the permit. 29 9–328.1. 30 SENATE BILL 492 3 (A) (1) IN THIS SECTION , “ADMINISTRATIVELY CON TINUED PERMIT ” 1 MEANS A DISCHARGE PE RMIT THAT HAS BEEN A DMINISTRATIVELY CONT INUED 2 UNDER DEPARTMENT REGULATION S IN ACCORDANCE WITH 40 C.F.R. § 122.6(D). 3 (2) “ADMINISTRATIVELY CONT INUED PERMIT” DOES NOT INCLUDE A 4 DISCHARGE PERMIT THAT HA S BEEN CONTINUED BEY OND ITS ORIGINAL 5 EXPIRATION DATE DUE TO AN ENFORCEMENT AC TION TAKEN DURING TH E PERMIT 6 TERM. 7 (B) (1) TO ENSURE COMPLIANCE WITH THE TERMS OF A DISCHARGE 8 PERMIT, AT LEAST ONCE PER MO NTH THE DEPARTMENT SHALL INSPECT THE 9 OPERATIONS OF: CONDUCT INSPECTIONS IN ACCORDANCE WITH T HIS SUBSECTION . 10 (1) EACH PERMIT HOLDER OP ERATING UNDER AN 11 ADMINISTRATIVELY CON TINUED PERMIT ; AND 12 (2) EACH PERMIT HOLDER TH AT THE DEPARTMENT HAS 13 DETERMINED TO BE IN SIGNIFICANT NONCOMPL IANCE OF AN APPLICABLE STATE 14 OR FEDERAL WATER QUA LITY STANDARD , EFFLUENT LIMITATION , OR OTHER 15 APPLICABLE REQUIREME NT OF THE DEPARTMENT OR THE U.S. ENVIRONMENTAL 16 PROTECTION AGENCY. 17 (2) (I) EXCEPT AS PROVIDED IN SUBPARAGRAPH (II) OF THIS 18 PARAGRAPH , AND SUBJECT TO PARAGRAPH (4) OF THIS SUBSECTION , BEGINNING 19 JULY 1, 2022, AT LEAST ONCE PER MO NTH THE DEPARTMENT SHALL INSP ECT EACH 20 FACILITY OR SITE THA T THE DEPARTMENT OR THE U.S. ENVIRONMENTAL 21 PROTECTION AGENCY HAS DETERMINED TO BE IN SIGNIFICANT NONCOMPLIANCE 22 WITH AN APPLICABLE STATE OR FEDERAL WATE R QUALITY STANDARD , EFFLUENT 23 LIMITATION, OR OTHER APPLICABLE REQUIREMENT OF THE DEPARTMENT OR THE 24 U.S. ENVIRONMENTAL PROTECTION AGENCY. 25 (II) IF A FACILITY OR SITE IS DETERMINED TO BE IN 26 SIGNIFICANT NONCOMPL IANCE SOLE LY DUE TO THE FAILUR E TO REPORT ANY 27 REQUIRED INFORMATION TO THE DEPARTMENT OR THE U.S. ENVIRONMENTAL 28 PROTECTION AGENCY, THE DEPARTMENT MAY : 29 1. DELAY INSPECTIONS UND ER SUBPARAGRAPH (I) OF 30 THIS PARAGRAPH BY 1 MONTH WHILE THE DEPARTMENT REVIEWS TH E 31 COMPLIANCE STATUS OF THE FACILITY OR SITE THROUGH CORRESPONDEN CE WITH 32 THE OWNER OR OPERATO R OF THE FACILITY OR SITE OR OTHER APPROP RIATE 33 METHODS; AND 34 4 SENATE BILL 492 2. BEGIN MONTHLY INSPECT IONS IN ACCORDANCE 1 WITH SUBPARAGRAPH (I) OF THIS PARAGRAPH IF , AFTER THE PERIOD SPE CIFIED IN 2 ITEM 1 OF THIS SUBPARAGRAPH , THE OWNER OR OPERATO R OF THE FACILITY OR 3 SITE HAS NOT PROVIDE D THE INFORMATION NE CESSARY FOR THE DEPARTMENT TO 4 DETERMINE THE COMPLIAN CE STATUS OF THE FAC ILITY OR SITE. 5 (3) (I) EXCEPT AS PROVIDED IN SUBPARAGRAPH (II) OF THIS 6 PARAGRAPH AND SUBJEC T TO PARAGRAPH (4) OF THIS SUBSECTION , BEGINNING 7 JULY 1, 2023, AT LEAST ONCE EVERY 90 DAYS, THE DEPARTMENT SHALL INSP ECT 8 EACH FACILITY OR SITE THAT HAS BEEN OPERAT ING UNDER AN ADMINIS TRATIVELY 9 CONTINUED PERMIT FOR LONGER THAN 365 DAYS. 10 (II) THE DEPARTMENT IS NOT REQ UIRED TO INSPECT THE 11 OPERATIONS OF A FACI LITY OR SITE OPERATI NG A GENERAL PERMIT THAT HAS 12 BEEN ADMINISTRATIV ELY CONTINUED , UNLESS THE DEPARTMENT OR THE U.S. 13 ENVIRONMENTAL PROTECTION AGENCY HAS DETERMINED THE FACILITY OR SITE 14 TO BE IN SIGNIFICANT NONCOMPLIANCE AS SPE CIFIED UNDER PARAGRA PH (2) OF 15 THIS SUBSECTION . 16 (4) INSPECTIONS REQUIRED UNDER THIS SUBSECTIO N MAY BE 17 CONDUCTED BY MEANS O THER THAN AN IN –PERSON INSPECTION OF THE FACILITY 18 OR SITE IF THE PRESE NCE OF THE INSPECTOR WOULD RESULT IN AN 19 UNREASONABLE RISK TO HEALTH, SAFETY, OR WELFARE. 20 (C) (1) THIS SUBSECTION APPLI ES TO A PERMIT HOLDE R THAT: 21 (I) IS IS DETERMINED BY THE DEPARTMENT OR THE U.S. 22 ENVIRONMENTAL PROTECTION AGENCY TO BE IN SIGNIFICANT NONCOMPLIANCE 23 OF AN APPLICABLE STATE OR FEDERAL WATE R QUALITY STANDARD , EFFLUENT 24 LIMITATION, OR OTHER APPLICABLE REQUIREMENT OF THE DEPARTMENT OR THE 25 U.S. ENVIRONMENTAL PROTECTION AGENCY TWO OR MORE TI MES IN A YEAR; 26 (II) REPORTS EXCEEDING EFF LUENT LIMITATIONS FO R TWO OR 27 MORE PARAMETERS REQU IRED TO BE MONITORED UNDER THE DISCHARGE PERMIT; 28 OR 29 (III) REPORTS EXCEEDING , BY 200% OR MORE, EFFLUENT 30 LIMITATIONS FOR ANY SINGLE PARAM ETER REQUIRED TO BE MONITORED UNDER 31 THE DISCHARGE PERMIT . 32 (2) THE DEPARTMENT SHALL REQU IRE A PERMIT HOLDER 33 SPECIFIED UNDER PARA GRAPH (1) OF THIS SUBSECTION T O SUBMIT A WRITTEN 34 REPORT TO THE DEPARTMENT DETAILING : 35 SENATE BILL 492 5 (I) HOW VIOLATIO NS REPORTED BY THE P ERMIT HOLDER OR 1 NOTED BY THE DEPARTMENT WILL BE AD DRESSED; AND 2 (II) THE TIMELINE FOR ADDR ESSING THE VIOLATION S. 3 (D) (1) IF A PERMIT HOLDER RE MAINS IN SIGNIFICANT NONCOMPLIANCE 4 FOR THE SAME UNDERLY ING CONDITION AFTER 2 CONSECUTIVE MONTHS O F 5 INSPECTIONS CONDUCTE D UNDER SUBSECTION (B)(2) (B) OF THIS SECTION , THE 6 PERMIT HOLDER SHALL BE SUBJECT TO AN ADM INISTRATIVE PENALTY OF: 7 (I) FOR A PERMIT HOLDER C LASSIFIED BY THE DEPARTMENT 8 AS A MINOR FACILITY DISCHARGER : 9 1. $250 WHEN THE CONDITION I S OBSERVED ON THE 10 THIRD CONSECUTIVE IN SPECTION; 11 2. $500 WHEN THE CONDITION I S OBSERVED ON THE 12 FOURTH CONSECUTIVE I NSPECTION; AND 13 3. $2,500 WHEN THE CONDITION I S OBSERVED ON THE 14 FIFTH CONSECUTIVE IN SPECTION OR ANY SUBS EQUENT CONSECUTIVE I NSPECTION; 15 AND 16 (II) FOR A PERMIT HOLDER C LASSIFIED BY THE DEPARTMENT 17 AS A MAJOR FACILITY DISCHARGER : 18 1. $1,000 WHEN THE CONDITION I S OBSERVED ON THE 19 THIRD CONSECUTIVE IN SPECTION; 20 2. $5,000 WHEN THE CONDITION I S OBSERVED ON THE 21 FOURTH CONSECUTIVE I NSPECTION; AND 22 3. $10,000 WHEN THE CONDITION I S OBSERVED ON THE 23 FIFTH CONSECUTIVE IN SPECTION OR ANY SUBS EQUENT CONSECUTIVE INSPECTION. 24 (2) THE PENALTIES PROVIDE D UNDER THIS SUBSECT ION ARE IN 25 ADDITION TO ANY OTHE R CIVIL OR CRIMINAL PENALTIES PROVIDED U NDER THIS 26 SUBTITLE. 27 SECTION 2. AND BE IT FURTHER ENACTED, That: 28 (a) In this section, “Department” means the Department of the Environment. 29 6 SENATE BILL 492 (b) Subject to subsection (c) of this section, this Act shall be interpreted to apply 1 only prospectively to discharge permits issued, renewed, or administratively continued on 2 or after the effective date of this Act. 3 (c) On or before December 31, 2026, the Department shall clear the backlog of 4 administratively continued discharge permits existing on the effective date of this Act. 5 (d) (c) (1) On or before December 31, 2023 October 1, 2022, the Department shall 6 report to the Governor and, in accordance with § 2–1257 of the State Government Article, 7 the General Assembly on the number of additional employees necessary to: 8 (i) clear the backlog of administratively continued discharge 9 permits, as required by subsection (c) (b) of this section; and 10 (ii) process discharge permit renewals in a timely manner, as 11 required by § 9–328(c) of the Environment Article, as enacted by Section 1 of this Act. 12 (2) The Department shall request: 13 (i) on or before December 31, 2024 2022, Position Identification 14 Numbers (PINs) for at least half of the additional employees identified in the report 15 required under paragraph (1) of this subsection; and 16 (ii) on or before December 31, 2025 2023, PINs for the full number 17 of additional employees identified in the report required under paragraph (1) of this 18 subsection. 19 (e) (d) On or before December 31, 2025, and each year thereafter, the Department 20 shall report to the Governor and, in accordance with § 2–1257 of the State Government 21 Article, the General Assembly on the progress toward meeting the requirements of this 22 section: 23 (1) the number of facilities or sites subject to discharge permits that were 24 administratively continued or expired at the end of the prior fiscal year, by census tract; 25 and 26 (2) the number of additional positions for the subsequent fiscal year that 27 the Department needs to ensure that any discharge permits that have been continued or 28 expired for more than 365 days are renewed in a timely manner. 29 SECTION 3. AND BE IT FURTHER ENACTED, That this Act shall take effect July 30 1, 2022. 31