WES MOORE, Governor Ch. 372 – 1 – Chapter 372 (Senate Bill 434) AN ACT concerning Natural Resources – Restorative Aquaculture Pilot Program FOR the purpose of requiring the Department of Natural Resources to establish and implement a Restorative Aquaculture Pilot Program to provide financial incentives to certain holders of aquaculture leases; authorizing a holder of an aquaculture lease who is participating in the Pilot Program to meet certain requirements by shellfish seed planting only; providing for the financing of the financial incentives under the Pilot Program; and generally relating to the Restorative Aquaculture Pilot Program. BY adding to Article – Natural Resources Section 4–11A–24 Annotated Code of Maryland (2018 Replacement Volume and 2022 Supplement) SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, That the Laws of Maryland read as follows: Article – Natural Resources 4–11A–24. (A) IN THIS SECTION , “PILOT PROGRAM” MEANS THE RESTORATIVE AQUACULTURE PILOT PROGRAM. (B) THE GENERAL ASSEMBLY FINDS THAT , WITH APPROPRIATE SIT ING, ACTIVE USE REQUIREME NTS THAT REQUIRE ANN UAL SHELLFISH SEED P LANTINGS, AND APPROPRI ATE HUSBANDRY , SHELLFISH AQUACULTUR E IS A RESTORATIVE ACTIVITY THAT BENEFI TS WATER QUALITY , OYSTER PRODUCTIVITY , AND HABITAT. (C) (1) THE DEPARTMENT SHALL ESTA BLISH AND IMPLEMENT A RESTORATIVE AQUACULTURE PILOT PROGRAM. (2) THE PILOT PROGRAM SHALL BE DESIGNED TO PROVIDE FINANCIAL INCENTIVES TO A HOLDER OF AN AQ UACULTURE LEASE WHO : (I) MAINTAINS THE LEASE , IN WHOLE OR IN PART , IN ACCORDANCE WITH THE CRITERIA FOR RESTORA TIVE AQUACULTURE IDE NTIFIED BY THE DEPARTMENT UNDER SUBS ECTION (D) OF THIS SECTIO N; AND Ch. 372 2023 LAWS OF MARYLAND – 2 – (II) MAINTAINS THE RESTORA TIVE CONDITIONS FOR AT LEAST 4 YEARS; AND (III) MEETS ANY CRITERIA TH E DEPARTMENT , IN CONSULTATION WITH TH E AQUACULTURE COORDINATING COUNCIL, CONSIDERS NECESSARY. (D) (1) SUBJECT TO PARAGRAPH (2) OF THIS SUBSECTION, THE DEPARTMENT SHALL IDEN TIFY CRITERIA AND ME TRICS FOR RESTORATIV E AQUACULTURE THAT TAK E INTO CONSIDERATION : (I) OYSTER DENSITY; (II) OYSTER BIOMASS ; (III) HABITAT COMPLEXITY ; AND (IV) ANY OTHER CRITERIA AN D METRICS DEVELOPED OR IDENTIFIED IN COORDI NATION WITH THE AQUACULTURE COORDINATING COUNCIL, THE UNIVERSITY OF MARYLAND CENTER FOR ENVIRONMENTAL SCIENCE, OR OTHER INTERESTED STA KEHOLDERS . (2) THE CRITERIA AND METR ICS IDENTIFIED UNDER PARAGRAPH (1) OF THIS SUBSECTION S HALL BE AT LEAST AS STRINGEN T AS THE TARGET CRIT ERIA AND METRICS USED IN LARGE–SCALE OYSTER RESTORA TION PROJECTS OVERSE EN OR SUPPORTED BY THE CHESAPEAKE BAY PROGRAM. (E) (1) SUBJECT TO PARAGRAPHS (2) AND (3) OF THIS SUBSECTION , THE DEPARTMENT SHALL ESTA BLISH ELIGIBILITY REQUIREMEN TS AND FINANCIAL INCENTIVES FOR THE PILOT PROGRAM. (2) THE FINANCIAL INCENTI VES ESTABLISHED UNDE R PARAGRAPH (1) OF THIS SUBSECTION S HALL BE DESIGNED IN A MANNER THAT PAYS E LIGIBLE LEASE HOLDERS : (I) 1. ON A PER–ACRE BASIS; AND 2. AT A RATE DETERMINED BY THE DEPARTMENT IN CONSULTATION WITH TH E AQUACULTURE COORDINATING COUNCIL; OR (II) FOR OYSTERS PURCHASED BY THE DEPARTMENT FOR USE IN OYSTER RESTORATIO N SANCTUARY PROJECTS . WES MOORE, Governor Ch. 372 – 3 – (3) THE DEPARTMENT MAY CONSUL T WITH INTERESTED STAKEHOLDERS IN ESTA BLISHING THE FINANCI AL INCENTIVES UNDER THIS SUBSECTION. (4) FINANCIAL INCENTIVES UNDER THIS SUBSECTIO N SHALL BE FINANCED THROUGH : (I) PRIVATE DONATIONS ; (II) FEDERAL FUNDING ; (III) MONEY APPROPRIATED IN THE STATE BUDGET SPECIFICALLY FOR THE PAYMENT OF THE INCEN TIVES; OR (IV) ANY OTHER FUNDING FRO M ANY OTHER SOURCE A CCEPTED FOR THE PAYMENT OF T HE INCENTIVES. (F) A HOLDER OF AN AQUACUL TURE LEASE WHO IS PA RTICIPATING IN THE PILOT PROGRAM MAY MEET ANY REQUIREMENTS FOR THE ACTIVE USE OF TH E LEASE BY SHELLFISH S EED PLANTING ONLY . (G) (1) ON OR BEFORE OCTOBER 1, 2024, THE DEPARTMENT SHALL ADOPT REGULATIONS TO CARRY OUT THIS SECTI ON. (2) THE REGULATIONS ADOPT ED UNDER PARAGRAPH (1) OF THIS SUBSECTION SHALL INC LUDE PROVI SIONS FOR THE VERIFI CATION OF EXISTING AND IMPROVED CONDITI ONS ON AQUACULTURE L EASES THAT ARE PART OF THE PILOT PROGRAM. SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect October 1, 2023. It shall remain effective for a period of 6 years and, at the end of September 30, 2029, this Act, with no further action required by the General Assembly, shall be abrogated and of no further force and effect. Approved by the Governor, May 3, 2023.