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. *sb0876* SENATE BILL 876 M3, M2 (2lr2943) ENROLLED BILL — Education, Health, and Environmental Affairs/Environment and Transportation — Introduced by Senator Bailey Senators Bailey and Carozza 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 Water Pollution – Civil and Administrative Penalty Surcharge – Oyster 2 Repletion Fund Supplemental Environmental Projects 3 FOR the purpose of establishing a surcharge on civil and administrative penalties imposed 4 for certain violations that result in the discharge of pollutants into the Chesapeake 5 Bay or its tributaries; establishing the Oyster Repletion Fund as a special, 6 nonlapsing fund in the Department of Natural Resources; requiring the surcharges 7 to be deposited to the Fund and used to finance the repletion of natural oyster bars 8 in waters impacted by water pollution violations requiring the Department of the 9 Environment to include oyster repletion projects in a certain database; requiring the 10 Department to prioritize a supplemental environmental project involving certain 11 oyster repletion projects for a party who is in violation of a certain effluent limitation 12 or unpermitted discharge; and generally relating to water pollution and oyster 13 repletion. 14 2 SENATE BILL 876 BY repealing and reenacting, with amendments, 1 Article – Environment 2 Section 9–342 3 Annotated Code of Maryland 4 (2014 Replacement Volume and 2021 Supplement) 5 BY adding to 6 Article – Natural Resources 7 Section 4–209.1 8 Annotated Code of Maryland 9 (2018 Replacement Volume and 2021 Supplement) 10 BY adding to 11 Article – Environment 12 Section 1–306(b)(3) 13 Annotated Code of Maryland 14 (2013 Replacement Volume and 2021 Supplement) 15 (As enacted by Chapter __ (S.B. 90/H.B. 595) of the Acts of the General Assembly of 16 2022) 17 SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 18 That the Laws of Maryland read as follows: 19 Article – Environment 20 1–306. 21 (b) (3) THE DEPARTMENT SHALL INCL UDE OYSTER REPLETION 22 PROJECTS IN THE DATA BASE. 23 9–342. 24 (a) (1) In addition to being subject to an injunctive action under this subtitle, 25 a person who violates any provision of this subtitle or of any rule, regulation, order, or 26 permit adopted or issued under this subtitle is liable to a civil penalty not exceeding 27 $10,000, to be collected in a civil action brought by the Department. 28 (2) Each day a violation occurs is a separate violation under this 29 subsection. 30 (b) (1) In addition to any other remedies available at law or in equity and after 31 an opportunity for a hearing which may be waived in writing by the person accused of a 32 violation, the Department may impose a penalty for violation of any provision of this 33 subtitle or any rule, regulation, order, or permit adopted or issued under this subtitle. 34 (2) The penalty imposed on a person under this subsection shall be: 35 SENATE BILL 876 3 (i) Up to $10,000 for each violation, but not exceeding $100,000 1 total; and 2 (ii) Assessed with consideration given to: 3 1. The willfulness of the violation, the extent to which the 4 existence of the violation was known to but uncorrected by the violator, and the extent to 5 which the violator exercised reasonable care; 6 2. Any actual harm to the environment or to human health, 7 including injury to or impairment of the use of the waters of this State or the natural 8 resources of this State; 9 3. The cost of cleanup and the cost of restoration of natural 10 resources; 11 4. The nature and degree of injury to or interference with 12 general welfare, health, and property; 13 5. The extent to which the location of the violation, including 14 location near waters of this State or areas of human population, creates the potential for 15 harm to the environment or to human health or safety; 16 6. The available technology and economic reasonableness of 17 controlling, reducing, or eliminating the violation; 18 7. The degree of hazard posed by the particular pollutant or 19 pollutants involved; and 20 8. The extent to which the current violation is part of a 21 recurrent pattern of the same or similar type of violation committed by the violator. 22 (3) Each day a violation occurs is a separate violation under this 23 subsection. 24 (4) Any penalty imposed under this subsection is payable to this State and 25 collectible in any manner provided at law for the collection of debts. 26 (5) If any person who is liable to pay a penalty imposed under this 27 subsection fails to pay it after demand, the amount, together with interest and any costs 28 that may accrue, shall be: 29 (i) A lien in favor of this State on any property, real or personal, of 30 the person; and 31 4 SENATE BILL 876 (ii) Recorded in the office of the clerk of court for the county in which 1 the property is located. 2 (6) Any penalty collected under this subsection shall be placed in a special 3 fund to be used for monitoring and surveillance by the Department to assure and maintain 4 an adequate record of any violations, including discharge of waste material and other 5 pollutants into the waters of this State or into the environment. 6 (C) (1) IN ADDITION TO A CIVI L OR ADMINISTRA TIVE PENALTY IMPOSED 7 UNDER SUBSECTION (A) OR (B) OF THIS SECTION, IF A VIOLATION OF AN Y PROVISION 8 OF THIS SUBTITLE OR ANY RULE, REGULATION , ORDER, OR PERMIT ADOPTED OR 9 ISSUED UNDER THIS SU BTITLE, RESULTS IN THE DISCH ARGE OF POLLUTANTS T O 10 THE CHESAPEAKE BAY OR ITS TRIBUTARIES , THE DEPARTMENT SHALL IMPO SE A 11 SURCHARGE ON THE PER SON RESPONSIBLE FOR THE VIOLATION. 12 (2) THE SURCHARGE SHALL B E EQUAL TO 25% OF THE TOTAL CIVIL 13 OR ADMINISTRATIVE PENALTY IMPOSED UNDE R SUBSECTION (A) OR (B) OF THIS 14 SECTION. 15 (3) ANY SURCHARGE COLLECT ED UNDER THIS SUBSEC TION SHALL 16 BE DEPOSITED INTO TH E OYSTER REPLETION FUND ESTABLISHED UNDE R § 4–209.1 17 OF THE NATURAL RESOURCES ARTICLE. 18 Article – Natural Resources 19 4–209.1. 20 (A) (1) IN THIS SECTION THE F OLLOWING WORDS HAVE THE MEANINGS 21 INDICATED. 22 (2) “COUNTY OYSTER COMMITT EE” MEANS A COMMITTEE 23 ESTABLISHED UNDER § 4–1106(B) OF THIS TITLE. 24 (3) “FUND” MEANS THE OYSTER REPLETION FUND. 25 (B) THERE IS AN OYSTER REPLETION FUND IN THE DEPARTMENT . 26 (C) THE PURPOSE OF THE FUND IS TO FINANCE THE REPLET ION OF 27 NATURAL OYSTER BARS IN WATERS IMPACTED B Y WATER POLLUTION VI OLATIONS. 28 (D) THE DEPARTMENT SHALL ADMI NISTER THE FUND. 29 (E) (1) THE FUND IS A SPECIAL , NONLAPSING FUND THAT IS NOT 30 SUBJECT TO § 7–302 OF THE STATE FINANCE AND PROCUREMENT ARTICLE. 31 SENATE BILL 876 5 (2) THE STATE TREASURER SHALL HOLD THE FUND SEPARATELY 1 AND THE COMPTROLLER SHALL ACC OUNT FOR THE FUND. 2 (F) THE FUND CONSISTS OF : 3 (1) SURCHARGES ON CIVIL AND ADMINISTRATIVE PENALTIES 4 COLLECTED UNDER § 9–342(C) OF THE ENVIRONMENT ARTICLE; 5 (2) MONEY APPROPRIATED IN THE STATE BUDGET TO THE FUND; 6 AND 7 (3) ANY OTHER MONEY FROM ANY OTHER SOURCE ACC EPTED FOR 8 THE BENEFIT OF THE FUND. 9 (G) (1) THE FUND MAY BE USED ONLY FOR OYSTER REPLETION 10 PROJECTS CONDUCTED I N ACCORDANCE WITH TH IS SUBSECTION. 11 (2) TO THE EXTENT PRACTIC ABLE, A SURCHARGE COLLECTE D 12 UNDER § 9–342(C) OF THE ENVIRONMENT ARTICLE SHALL BE USED TO FUND 13 OYSTER REPLETION PRO JECTS IN THE COUNTY WHERE THE UNDERLYING WATER 14 POLLUTION VIOLATION O CCURRED. 15 (3) THE DEPARTMENT SHALL WORK WITH THE COUNTY OYST ER 16 COMMITTEE FOR THE CO UNTY WHERE THE UNDER LYING WATER POLLUTIO N 17 VIOLATION OCCURRED T O IDENTIFY: 18 (I) NATURAL OYSTER BARS W ITHIN THE COUNTY FOR 19 REPLETION; OR 20 (II) IF NO NATURAL OYSTER BA R WITHIN THE COUNTY IS 21 SUITABLE FOR REPLETI ON, NATURAL OYSTER BARS WITHIN AN ADJACENT C OUNTY 22 FOR REPLETION . 23 (4) REPLETION PROJECTS CO NDUCTED UNDER THIS S UBSECTION 24 SHALL BE IN THE FORM OF SPAT–ON–SHELL. 25 (5) (I) THE DEPARTMENT MAY CONTRACT WITH A NONP ROFIT 26 ORGANIZATION THAT SP ECIALIZES IN OYSTER RECOVERY TO CARRY OU T OYSTER 27 REPLETION PROJECTS U NDER THIS SUBSECTION . 28 (II) THE FUND MAY BE USED TO C OVER REASONABLE 29 ADMINISTRATIVE EXPEN SES INCURRED BY A NO NPROFIT ORGANIZATION IN 30 CARRYING OUT OYSTER REPLETION PROJECTS U NDER THIS SUBSECTION . 31 6 SENATE BILL 876 (H) (1) THE STATE TREASURER SHALL INVES T THE MONEY OF THE FUND 1 IN THE SAME MANNER A S OTHER STATE MONEY MAY BE IN VESTED. 2 (2) ANY INTEREST EARNINGS OF THE FUND SHALL BE CREDITE D TO 3 THE GENERAL FUND OF THE STATE. 4 (I) EXPENDITURES FROM THE FUND MAY BE MADE ONLY IN ACCORDANCE 5 WITH THE STATE BUDGET . 6 (J) MONEY EXPENDED FROM T HE FUND FOR OYSTER REPLE TION 7 PROJECTS IS SUPPLEME NTAL TO AND IS NOT I NTENDED TO TAKE THE PLACE OF 8 FUNDING THAT OTHERWISE WOULD BE A PPROPRIATED FOR OYST ER REPLETION 9 PROJECTS. 10 SECTION 2. AND BE IT FURTHER ENACTED, That: 11 (a) Subject to subsection (b) of this section, the Department of the Environment 12 shall prioritize a supplemental environmental project involving oyster repletion in natural 13 oyster bars in the county where the underlying water pollution violation occurred with input 14 from the county oyster committee for a party who is in violation of an effluent limitation or 15 unpermitted discharge in the proximity of an oyster population. 16 (b) If there are no suitable natural oyster bars for repletion in the county where the 17 violation occurred, the natural oyster bar repletion project shall be carried out in an adjacent 18 county. 19 SECTION 3. AND BE IT FURTHE R ENACTED, That Section 1 of this Act shall take 20 effect October 1, 2022, contingent on the taking effect of Chapter ____ (S.B. 90/H.B. 595) of 21 the Acts of the General Assembly of 2022, and if Chapter ____ (S.B. 90/H.B. 595) does not 22 become effective, Section 1 of this Act, with no further action required by the General 23 Assembly, shall be null and void. 24 SECTION 2. 4. AND BE IT FURTHER ENACTED, That , except as provided in 25 Section 3 of this Act, this Act shall take effect October 1, 2022. 26