EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
[Brackets] indicate matter deleted from existing law.
*sb0635*
SENATE BILL 635
M3 3lr2712
CF 3lr2681
By: Senator Mautz
Introduced and read first time: February 6, 2023
Assigned to: Education, Energy, and the Environment
A BILL ENTITLED
AN ACT concerning 1
Bay Restoration Fund – Authorized Uses – Dorchester County Sanitary District 2
FOR the purpose of altering the authorized uses of the Bay Restoration Fund to include, 3
for certain fiscal years, certain administrative costs incurred by the Dorchester 4
County Sanitary District, Inc., for certain purposes, up to a certain amount for each 5
fiscal year; and generally relating to authorized uses of the Bay Restoration Fund. 6
BY repealing and reenacting, with amendments, 7
Article – Environment 8
Section 9–1605.2(i)(2) 9
Annotated Code of Maryland 10
(2014 Replacement Volume and 2022 Supplement) 11
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 12
That the Laws of Maryland read as follows: 13
Article – Environment 14
9–1605.2. 15
(i) (2) Funds in the Bay Restoration Fund shall be used only: 16
(i) 1. To award grants for up to 100% of eligible costs of projects 17
relating to planning, design, construction, and upgrade of a publicly owned wastewater 18
facility for flows up to the design capacity of the wastewater facility, as approved by the 19
Department, to achieve enhanced nutrient removal in accordance with paragraph (4) of this 20
subsection; and 21
2. Subject to paragraph (12) of this subsection, to award 22
grants for up to 50% of eligible costs of projects relating to planning, design, construction, 23
and upgrade of a privately owned wastewater facility for flows up to the design capacity of 24 2 SENATE BILL 635
the wastewater facility, as approved by the Department, to achieve enhanced nutrient 1
removal in accordance with paragraph (4) of this subsection; 2
(ii) In fiscal years 2016 and thereafter, for up to 87.5% of the total 3
cost of projects, as approved by the Department, relating to combined sewer overflows 4
abatement, rehabilitation of existing sewers, and upgrading conveyance systems, including 5
pumping stations; 6
(iii) In fiscal years 2010 and thereafter, for a portion of the operation 7
and maintenance costs related to the enhanced nutrient removal technology, which may 8
not exceed 10% of the total restoration fee collected from users of wastewater facilities 9
under this section by the Comptroller annually; 10
(iv) In fiscal years 2018 and thereafter, after payment of outstanding 11
bonds and the allocation of funds to other required uses of the Bay Restoration Fund for 12
funding in the following order of priority: 13
1. For funding the eligible costs to upgrade a wastewater 14
facility to enhanced nutrient removal at wastewater facilities with a design capacity of 15
500,000 gallons or more per day; 16
2. For funding the eligible costs of the most cost–effective 17
enhanced nutrient removal upgrades at wastewater facilities with a design capacity of less 18
than 500,000 gallons per day; and 19
3. As determined by the Department and based on water 20
quality, climate resiliency, flood control, and public health benefits, for the following: 21
A. For costs identified under item (ii) of this paragraph; 22
B. For costs identified under subsection (h)(2)(i)1 of this 23
section; and 24
C. With respect to a local government that has enacted and 25
implemented a system of charges to fully fund the implementation of a stormwater 26
management program, for grants to the local government for a portion of the costs of the 27
most cost–effective and efficient stormwater control measures, including stormwater 28
measures relating to water quality, climate resiliency, or flood control, as determined and 29
approved by the Department, from the restoration fees collected annually by the 30
Comptroller from users of wastewater facilities under this section; 31
(v) As a source of revenue or security for the payment of principal 32
and interest on bonds issued by the Administration if the proceeds of the sale of the bonds 33
will be deposited in the Bay Restoration Fund; 34
(vi) To earn interest on Bay Restoration Fund accounts; 35
SENATE BILL 635 3
(vii) For the reasonable costs of administering the Bay Restoration 1
Fund, which may not exceed 1.5% of the total restoration fees imposed on users of 2
wastewater facilities that are collected by the Comptroller annually; 3
(viii) For the reasonable administrative costs incurred by a local 4
government or a billing authority for a water or wastewater facility collecting the 5
restoration fees, in an amount not to exceed 5% of the total restoration fees collected by 6
that local government or billing authority; 7
(ix) For future upgrades of wastewater facilities to achieve additional 8
nutrient removal or water quality improvement, in accordance with paragraphs (6) and (7) 9
of this subsection; 10
(x) For costs associated with the issuance of bonds; 11
(xi) Subject to the allocation of funds and the conditions under 12
subsection (h) of this section, for projects related to the removal of nitrogen from on–site 13
sewage disposal systems and cover crop activities; 14
(xii) For costs associated with the implementation of alternate 15
compliance plans authorized in § 4–202.1(k)(3) of this article; 16
(xiii) After funding any eligible costs identified under item (iv)1 and 2 17
of this paragraph, for transfers to the Clean Water Commerce Account in accordance with 18
paragraph (3) of this subsection; [and] 19
(xiv) After funding any eligible costs identified under item (iv)1 and 2 20
of this paragraph, for the transfers required under paragraph (11) of this subsection; AND 21
(XV) IN FISCAL YEARS 2024, 2025, AND 2026, FOR THE 22
REASONABLE ADMINISTR ATIVE COSTS INCURRED BY THE DORCHESTER COUNTY 23
SANITARY DISTRICT, INC., UP TO $200,000 FOR EACH FISCAL YEAR , TO ADDRESS 24
BERMED INFILTRATION PONDS: 25
1. IDENTIFIED AS ACTIVEL Y FAILING OR AT IMMI NENT 26
RISK OF FAILURE; OR 27
2. IDENTIFIED AS ACTIVEL Y DISCHARGING SEWAGE 28
EFFLUENT ONTO THE GR OUND SURFACE . 29
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect July 30
1, 2023. 31