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. *sb0434* SENATE BILL 434 M2 3lr2079 CF HB 1254 By: Senator Klausmeier Introduced and read first time: February 2, 2023 Assigned to: Education, Energy, and the Environment Committee Report: Favorable Senate action: Adopted Read second time: March 5, 2023 CHAPTER ______ 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 2 SENATE BILL 434 (B) THE GENERAL ASSEMBLY FINDS THAT , WITH APPROPRIATE SIT ING, 1 ACTIVE USE REQUIREME NTS THAT REQUIRE ANN UAL SHELLFISH SEED PLANTINGS , 2 AND APPROPRIATE HUSB ANDRY, SHELLFISH AQUACULTUR E IS A RESTORATIVE 3 ACTIVITY THAT BENEFI TS WATER QUALITY, OYSTER PRODUCTIVITY , AND HABITAT. 4 (C) (1) THE DEPARTMENT SHALL ESTA BLISH AND IMPLEMENT A 5 RESTORATIVE AQUACULTURE PILOT PROGRAM. 6 (2) THE PILOT PROGRAM SHALL BE DESI GNED TO PROVIDE 7 FINANCIAL INCENTIVES TO A HOLDER OF AN AQUACUL TURE LEASE WHO: 8 (I) MAINTAINS THE LEASE, IN WHOLE OR IN PART , IN 9 ACCORDANCE WITH THE CRITERIA FOR RESTORATIVE AQUACULTURE IDENTIFIED 10 BY THE DEPARTMENT UNDER SUBSECTION (D) OF THIS SECTION; AND 11 (II) MAINTAINS THE RESTORATIVE COND ITIONS FOR AT LEAST 12 4 YEARS. 13 (D) (1) SUBJECT TO PARAGRAPH (2) OF THIS SUBSECTION , THE 14 DEPARTMENT SHALL IDEN TIFY CRITERIA AND METRICS FOR RESTORATIVE 15 AQUACULTURE THAT TAK E INTO CONSIDERATION : 16 (I) OYSTER DENSITY; 17 (II) OYSTER BIOMASS ; 18 (III) HABITAT COMPLEXITY ; AND 19 (IV) ANY OTHER CRITERIA AND METRICS DEVELOPED OR 20 IDENTIFIED IN COORDI NATION WITH THE AQUACULTURE COORDINATING COUNCIL, 21 THE UNIVERSITY OF MARYLAND CENTER FOR ENVIRONMENTAL SCIENCE, OR 22 OTHER INTERESTED STA KEHOLDERS . 23 (2) THE CRITERIA AND METRICS IDENTIFIED UNDER PAR AGRAPH (1) 24 OF THIS SUBSECTION S HALL BE AT LEAST AS STRINGENT AS THE TARGET CRITERIA 25 AND METRICS USED IN LARGE–SCALE OYSTER RESTORA TION PROJECTS OVERSEEN 26 OR SUPPORTED BY THE CHESAPEAKE BAY PROGRAM. 27 (E) (1) SUBJECT TO PARAGRAPHS (2) AND (3) OF THIS SUBSECTION , THE 28 DEPARTMENT SHALL ESTA BLISH ELIGIBILITY REQUIREMENTS AND FINANCIAL 29 INCENTIVES FOR THE PILOT PROGRAM. 30 (2) THE FINANCIAL INCENTI VES ESTABLISHED UNDE R PARAGRAPH 31 SENATE BILL 434 3 (1) OF THIS SUBSECTION S HALL BE DESIGNED IN A MANNER THAT PAYS ELIGIBLE 1 LEASE HOLDERS : 2 (I) 1. ON A PER–ACRE BASIS; AND 3 2. AT A RATE DETERMINED BY THE DEPARTMENT IN 4 CONSULTATION WITH TH E AQUACULTURE COORDINATING COUNCIL; OR 5 (II) FOR OYSTERS PURCHASED BY THE DEPARTMENT FOR USE 6 IN OYSTER RESTORATIO N SANCTUARY PROJECTS. 7 (3) THE DEPARTMENT MAY CONSUL T WITH INTERESTED 8 STAKEHOLDERS IN ESTA BLISHING THE FINANCI AL INCENTIVES UNDER THIS 9 SUBSECTION. 10 (F) A HOLDER OF AN AQUACUL TURE LEASE WHO IS PA RTICIPATING IN THE 11 PILOT PROGRAM MAY MEET ANY REQUIRE MENTS FOR THE ACTIVE USE OF THE 12 LEASE BY SHELLFISH SEED PLANTING ONLY . 13 (G) (1) ON OR BEFORE OCTOBER 1, 2024, THE DEPARTMENT SHALL 14 ADOPT REGULATIONS TO CARRY OUT THIS SECTI ON. 15 (2) THE REGULATIONS ADOPT ED UNDER PARAGRAPH (1) OF THIS 16 SUBSECTION SHALL INCLUDE PROVISIONS F OR THE VERIFICATION OF EXISTING 17 AND IMPROVED CONDITI ONS ON AQUACULTURE L EASES THAT ARE PART OF THE 18 PILOT PROGRAM. 19 SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect 20 October 1, 2023. It shall remain effective for a period of 6 years and, at the end of September 21 30, 2029, this Act, with no further action required by the General Assembly, shall be 22 abrogated and of no further force and effect. 23 Approved: ________________________________________________________________________________ Governor. ________________________________________________________________________________ President of the Senate. ________________________________________________________________________________ Speaker of the House of Delegates.