EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW. [Brackets] indicate matter deleted from existing law. *sb0434* SENATE BILL 434 M2 3lr2079 By: Senator Klausmeier Introduced and read first time: February 2, 2023 Assigned to: Education, Energy, and the Environment A BILL ENTITLED AN ACT concerning 1 Natural Resources – Restorative Aquaculture Pilot Program 2 FOR the purpose of requiring the Department of Natural Resources to establish and 3 implement a Restorative Aquaculture Pilot Program to provide financial incentives 4 to certain holders of aquaculture leases; authorizing a holder of an aquaculture lease 5 who is participating in the Pilot Program to meet certain requirements by shellfish 6 seed planting only; and generally relating to the Restorative Aquaculture Pilot 7 Program. 8 BY adding to 9 Article – Natural Resources 10 Section 4–11A–24 11 Annotated Code of Maryland 12 (2018 Replacement Volume and 2022 Supplement) 13 SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 14 That the Laws of Maryland read as follows: 15 Article – Natural Resources 16 4–11A–24. 17 (A) IN THIS SECTION , “PILOT PROGRAM” MEANS THE RESTORATIVE 18 AQUACULTURE PILOT PROGRAM. 19 (B) THE GENERAL ASSEMBLY FINDS THAT , WITH APPROPRIATE SIT ING, 20 ACTIVE USE REQUIREME NTS THAT REQUIRE ANN UAL SHELLFISH SEED PLANT INGS, 21 AND APPROPRIATE HUSB ANDRY, SHELLFISH AQUACULTUR E IS A RESTORATIVE 22 ACTIVITY THAT BENEFI TS WATER QUALITY , OYSTER PRODUCTIVITY , AND HABITAT. 23 2 SENATE BILL 434 (C) (1) THE DEPARTMENT SHALL ESTA BLISH AND IMPLEMENT A 1 RESTORATIVE AQUACULTURE PILOT PROGRAM. 2 (2) THE PILOT PROGRAM SHALL BE DESI GNED TO PROVIDE 3 FINANCIAL INCENTIVES TO A HOLDER OF AN AQUACUL TURE LEASE WHO: 4 (I) MAINTAINS THE LEASE, IN WHOLE OR IN PART , IN 5 ACCORDANCE WITH THE CRITERIA FOR RESTORATIVE AQUACULTURE IDENTIFIED 6 BY THE DEPARTMENT UNDER SUBSECTION (D) OF THIS SECTION; AND 7 (II) MAINTAINS THE RESTORATIVE COND ITIONS FOR AT LEAST 8 4 YEARS. 9 (D) (1) SUBJECT TO PARAGRAPH (2) OF THIS SUBSECTION , THE 10 DEPARTMENT SHALL IDEN TIFY CRITERIA AND METRICS FOR RESTORATIVE 11 AQUACULTURE THAT TAK E INTO CONSIDERATION : 12 (I) OYSTER DENSITY; 13 (II) OYSTER BIOMASS ; 14 (III) HABITAT COMPLEXITY ; AND 15 (IV) ANY OTHER CRITERIA AND METRICS DEVELOPED OR 16 IDENTIFIED IN COORDI NATION WITH THE AQUACULTURE COORDINATING COUNCIL, 17 THE UNIVERSITY OF MARYLAND CENTER FOR ENVIRONMENTAL SCIENCE, OR 18 OTHER INTERESTED STA KEHOLDERS . 19 (2) THE CRITERIA AND METRICS IDENTIFIED UNDER PAR AGRAPH (1) 20 OF THIS SUBSECTION S HALL BE AT LEAST AS STRINGENT AS THE TARGET CRITERIA 21 AND METRICS USED IN LARGE–SCALE OYSTER RESTORA TION PROJECTS OVERSEEN 22 OR SUPPORTED BY THE CHESAPEAKE BAY PROGRAM. 23 (E) (1) SUBJECT TO PARAGRAPHS (2) AND (3) OF THIS SUBSECTION , THE 24 DEPARTMENT SHALL ESTA BLISH ELIGIBILITY REQUIREMENTS AND FINANCIAL 25 INCENTIVES FOR THE PILOT PROGRAM. 26 (2) THE FINANCIAL INCENTI VES ESTABLISHED UNDE R PARAGRAPH 27 (1) OF THIS SUBSECTION S HALL BE DESIGNED IN A MANNER THAT PAYS ELIGIBLE 28 LEASE HOLDERS : 29 (I) 1. ON A PER–ACRE BASIS; AND 30 SENATE BILL 434 3 2. AT A RATE DETERMINED BY THE DEPARTMENT IN 1 CONSULTATION WITH TH E AQUACULTURE COORDINATING COUNCIL; OR 2 (II) FOR OYSTERS PURCHASED BY THE DEPARTMENT FOR USE 3 IN OYSTER RESTORATIO N SANCTUARY PROJECTS . 4 (3) THE DEPARTMENT MAY CONSUL T WITH INTERESTED 5 STAKEHOLDERS IN ESTA BLISHING THE FINANCI AL INCENTIVES UNDER THIS 6 SUBSECTION. 7 (F) A HOLDER OF AN AQUACUL TURE LEASE WHO IS PA RTICIPATING IN THE 8 PILOT PROGRAM MAY MEET ANY REQUIRE MENTS FOR THE ACTIVE USE OF THE 9 LEASE BY SHELLFISH SEED PLANTING ONLY . 10 (G) (1) ON OR BEFORE OCTOBER 1, 2024, THE DEPARTMENT SHALL 11 ADOPT REGULATIONS TO CARRY OUT THIS SECTI ON. 12 (2) THE REGULATIONS ADOPT ED UNDER PARAGRAPH (1) OF THIS 13 SUBSECTION SHALL INCLUDE PROVISIONS F OR THE VERIFICATION OF EXISTING 14 AND IMPROVED CONDITI ONS ON AQUACULTURE L EASES THAT ARE PART OF THE 15 PILOT PROGRAM. 16 SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect 17 October 1, 2023. It shall remain effective for a period of 6 years and, at the end of September 18 30, 2029, this Act, with no further action required by the General Assembly, shall be 19 abrogated and of no further force and effect. 20