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. *sb0434* SENATE BILL 434 M2 (3lr2079) ENROLLED BILL — Education, Energy, and the Environment/Environment and Transportation — Introduced by Senator Klausmeier 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 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; providing for the financing of the financial incentives under the 7 Pilot Program; and generally relating to the Restorative Aquaculture Pilot 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 2 SENATE BILL 434 SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 1 That the Laws of Maryland read as follows: 2 Article – Natural Resources 3 4–11A–24. 4 (A) IN THIS SECTION , “PILOT PROGRAM” MEANS THE RESTORATIVE 5 AQUACULTURE PILOT PROGRAM. 6 (B) THE GENERAL ASSEMBLY FINDS THAT , WITH APPROPRIATE SIT ING, 7 ACTIVE USE REQUIREME NTS THAT REQUIRE ANN UAL SHELLFISH SEED P LANTINGS, 8 AND APPROPRIATE HUSBANDR Y, SHELLFISH AQUACULTUR E IS A RESTORATIVE 9 ACTIVITY THAT BENEFI TS WATER QUALITY , OYSTER PRODUCTIVITY , AND HABITAT. 10 (C) (1) THE DEPARTMENT SHALL ESTA BLISH AND IMPLEMENT A 11 RESTORATIVE AQUACULTURE PILOT PROGRAM. 12 (2) THE PILOT PROGRAM S HALL BE DESIGNED TO PROVIDE 13 FINANCIAL INCENTIVES TO A HOLDER OF AN AQ UACULTURE LEASE WHO : 14 (I) MAINTAINS THE LEASE , IN WHOLE OR IN PART , IN 15 ACCORDANCE WITH THE CRITERIA FOR RESTORA TIVE AQUACULTURE IDE NTIFIED 16 BY THE DEPARTMENT UNDER SUBS ECTION (D) OF THIS SECTION; AND 17 (II) MAINTAINS THE RESTORA TIVE CONDITIONS FOR AT LEAST 18 4 YEARS; AND 19 (III) MEETS ANY CRITERIA TH E DEPARTMENT , IN 20 CONSULTATION WITH TH E AQUACULTURE COORDINATING COUNCIL, CONSIDERS 21 NECESSARY. 22 (D) (1) SUBJECT TO PARAGRAPH (2) OF THIS SUBSECTION, THE 23 DEPARTMENT SHALL IDEN TIFY CRITERIA AND ME TRICS FOR RESTORATIV E 24 AQUACULTURE THAT TAK E INTO CONSIDERATION : 25 (I) OYSTER DENSITY; 26 (II) OYSTER BIOMASS ; 27 (III) HABITAT COMPLEXITY ; AND 28 (IV) ANY OTHER CRITERIA AN D METRICS DEVELOPED OR 29 IDENTIFIED IN COORDI NATION WITH THE AQUACULTURE COORDINATING COUNCIL, 30 SENATE BILL 434 3 THE UNIVERSITY OF MARYLAND CENTER FOR ENVIRONMENTAL SCIENCE, OR 1 OTHER INTERESTED STA KEHOLDERS . 2 (2) THE CRITERIA AND METR ICS IDENTIFIED UNDER PARAGRAPH (1) 3 OF THIS SUBSECTION S HALL BE AT LEAST AS STRINGEN T AS THE TARGET CRIT ERIA 4 AND METRICS USED IN LARGE–SCALE OYSTER RESTORA TION PROJECTS OVERSE EN 5 OR SUPPORTED BY THE CHESAPEAKE BAY PROGRAM. 6 (E) (1) SUBJECT TO PARAGRAPHS (2) AND (3) OF THIS SUBSECTION , THE 7 DEPARTMENT SHALL ESTA BLISH ELIGIBILITY REQUIREMEN TS AND FINANCIAL 8 INCENTIVES FOR THE PILOT PROGRAM. 9 (2) THE FINANCIAL INCENTI VES ESTABLISHED UNDE R PARAGRAPH 10 (1) OF THIS SUBSECTION S HALL BE DESIGNED IN A MANNER THAT PAYS E LIGIBLE 11 LEASE HOLDERS : 12 (I) 1. ON A PER–ACRE BASIS; AND 13 2. AT A RATE DETERMINED BY THE DEPARTMENT IN 14 CONSULTATION WITH TH E AQUACULTURE COORDINATING COUNCIL; OR 15 (II) FOR OYSTERS PURCHASED BY THE DEPARTMENT FOR USE 16 IN OYSTER RESTORATIO N SANCTUARY PROJECTS . 17 (3) THE DEPARTMENT MAY CONSUL T WITH INTERESTED 18 STAKEHOLDERS IN ESTA BLISHING THE FINANCI AL INCENTIVES UNDER THIS 19 SUBSECTION. 20 (4) FINANCIAL INCENTIVES UNDER THIS SUBSECTIO N SHALL BE 21 FINANCED THROUGH : 22 (I) PRIVATE DONATIONS ; 23 (II) FEDERAL FUNDING ; 24 (III) MONEY APPROPRIATED IN THE STATE BUDGET 25 SPECIFICALLY FOR THE PAYMENT OF THE INCEN TIVES; OR 26 (IV) ANY OTHER FUNDING FRO M ANY OTHER SOURCE A CCEPTED 27 FOR THE PAYMENT OF T HE INCENTIVES. 28 (F) A HOLDER OF AN AQUACUL TURE LEASE WHO IS PA RTICIPATING IN THE 29 PILOT PROGRAM MAY MEET ANY REQUIREMENTS FOR THE ACTIVE USE OF TH E 30 LEASE BY SHELLFISH S EED PLANTING ONLY . 31 4 SENATE BILL 434 (G) (1) ON OR BEFORE OCTOBER 1, 2024, THE DEPARTMENT SHALL 1 ADOPT REGULATIONS TO CARRY OUT THIS SECTI ON. 2 (2) THE REGULATIONS ADOPT ED UNDER PARAGRAPH (1) OF THIS 3 SUBSECTION SHALL INC LUDE PROVI SIONS FOR THE VERIFI CATION OF EXISTING 4 AND IMPROVED CONDITI ONS ON AQUACULTURE L EASES THAT ARE PART OF THE 5 PILOT PROGRAM. 6 SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect 7 October 1, 2023. It shall remain effective for a period of 6 years and, at the end of September 8 30, 2029, this Act, with no further action required by the General Assembly, shall be 9 abrogated and of no further force and effect. 10 Approved: ________________________________________________________________________________ Governor. ________________________________________________________________________________ President of the Senate. ________________________________________________________________________________ Speaker of the House of Delegates.