EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW. [Brackets] indicate matter deleted from existing law. *hb0530* HOUSE BILL 530 M1 3lr1267 By: Delegate Kerr Introduced and read first time: February 1, 2023 Assigned to: Environment and Transportation A BILL ENTITLED AN ACT concerning 1 Natural Resources – Forest Mitigation Banks and the Forest Conservation Fund 2 – Alterations 3 FOR the purpose of altering the definition of “qualified conservation” for purposes of 4 provisions of law related to forest mitigation banks; extending the deadline for the 5 Department of Natural Resources to accomplish the reforestation or afforestation for 6 which certain money is deposited to the Forest Conservation Fund; altering the 7 development projects for which afforestation or reforestation credits granted may not 8 exceed a certain percentage of forest conserved; establishing that money in the Fund 9 that is encumbered within a certain time period may not revert to certain persons 10 for certain use; and generally relating to forest conservation. 11 BY renumbering 12 Article – Natural Resources 13 Section 5–1601(hh) through (qq) 14 to be Section 5–1601(ii) through (rr), respectively 15 Annotated Code of Maryland 16 (2018 Replacement Volume and 2022 Supplement) 17 BY repealing and reenacting, without amendments, 18 Article – Natural Resources 19 Section 5–1601(a) and 5–1610(b) 20 Annotated Code of Maryland 21 (2018 Replacement Volume and 2022 Supplement) 22 BY repealing and reenacting, with amendments, 23 Article – Natural Resources 24 Section 5–1601(gg), 5–1607(b), and 5–1610(e) 25 Annotated Code of Maryland 26 (2018 Replacement Volume and 2022 Supplement) 27 2 HOUSE BILL 530 BY adding to 1 Article – Natural Resources 2 Section 5–1601(hh) 3 Annotated Code of Maryland 4 (2018 Replacement Volume and 2022 Supplement) 5 BY repealing and reenacting, with amendments, 6 Chapter 645 of the Acts of the General Assembly of 2021 7 Section 11 8 SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 9 That Section(s) 5–1601(hh) through (qq) of Article – Natural Resources of the Annotated 10 Code of Maryland be renumbered to be Section(s) 5–1601(ii) through (rr), respectively. 11 SECTION 2. AND BE IT FURTHER ENACTED, That the Laws of Maryland read 12 as follows: 13 Article – Natural Resources 14 5–1601. 15 (a) In this subtitle the following words have the meanings indicated. 16 (gg) “Qualified conservation” means the conservation of all or a part of an existing 17 forest that: 18 (1) [Was] HAS BEEN approved [on or before December 31, 2020,] by the 19 appropriate State or local forest conservation program for the purpose of establishing a 20 forest mitigation bank; and 21 (2) Is encumbered in perpetuity by a restrictive easement, covenant, or 22 another similar mechanism recorded in the county land records to conserve its character 23 as a forest. 24 (HH) “QUALIFIED PROJECT ” MEANS A PROJECT THAT USES QUALIFIED 25 CONSERVATION FOR WHI CH AN APPLICATION WA S SUBMITTED OR APPRO VED ON OR 26 BEFORE DECEMBER 31, 2020. 27 5–1607. 28 (b) Standards for meeting afforestation or reforestation requirements shall be 29 established by the State or local program using one or more of the following methods: 30 (1) Forest creation in accordance with a forest conservation plan using one 31 or more of the following: 32 (i) Transplanted or nursery stock; 33 HOUSE BILL 530 3 (ii) Whip and seedling stock; or 1 (iii) Natural regeneration where it can be shown to adequately meet 2 the objective of the forest conservation plan. 3 (2) [The] FOR A QUALIFIED PROJE CT, THE use of qualified conservation 4 completed in a forest mitigation bank, in which case, the afforestation or reforestation 5 credit granted may not exceed 50% of the forest area encumbered in perpetuity. 6 (3) The use of street trees in a municipal corporation with a tree 7 management plan, in an existing population center designated in a county master plan that 8 has been adopted to conform with the Economic Growth, Resource Protection, and Planning 9 Act of 1992, or in any other designated area approved by the Department as part of a local 10 program, under criteria established by the local program, subject to the approval of the 11 Department, using: 12 (i) Street trees as a permissible step in the priority sequence for 13 afforestation or reforestation and, based on a mature canopy coverage, may grant full credit 14 as a mitigation technique; and 15 (ii) Acquisition as a mitigation technique of an off–site protective 16 easement for existing forested areas not currently protected in perpetuity, in which case 17 the afforestation or reforestation credit granted may not exceed 50% of the area of forest 18 cover protected. 19 (4) When all other options, both on–site and off–site, have been exhausted, 20 landscaping as a mitigation technique, conducted under an approved landscaping plan that 21 establishes a forest at least 35 feet wide and covering at least 2,500 square feet of area. 22 5–1610. 23 (b) There is a Forest Conservation Fund in the Department. 24 (e) (1) The Department shall accomplish the reforestation or afforestation for 25 which the money is deposited within [2] 5 years or [3] 6 growing seasons, as appropriate, 26 after receipt of the money. 27 (2) Money deposited in the Fund under subsection (c) of this section shall 28 remain in the Fund for a period of [2] 5 years or [3] 6 growing seasons, and at the end of 29 that time period, any portion that has not been used OR ENCUMBERED to meet the 30 afforestation or reforestation requirements shall be returned to the person who provided 31 the money to be used for documented tree planting in the same county or watershed beyond 32 that required by this subtitle or other applicable statutes. 33 Chapter 645 of the Acts of 2021 34 4 HOUSE BILL 530 SECTION 11. AND BE IT FURTHER ENACTED, That, except as provided in 1 Section 10 of this Act, this Act shall take effect June 1, 2021. Sections 1[, 2,] and 7 of this 2 Act shall remain effective for a period of 3 years and 1 month and, at the end of June 30, 3 2024, Sections 1[, 2,] and 7 of this Act, with no further action required by the General 4 Assembly, shall be abrogated and of no further force and effect. Subject to Section 10 of this 5 Act, Sections 3, 4, and 5 of this Act shall remain effective for a period of 10 years and 1 6 month and, at the end of June 30, 2031, Sections 3, 4, and 5 of this Act, with no further 7 action required by the General Assembly, shall be abrogated and of no further force and 8 effect. Section 6 of this Act shall remain effective for a period of 2 years and 1 month and, 9 at the end of June 30, 2023, Section 6 of this Act, with no further action required by the 10 General Assembly, shall be abrogated and of no further force and effect. 11 SECTION 3. AND BE IT FURTHER ENACTED, That this Act s hall take effect July 12 1, 2023. 13