EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW. [Brackets] indicate matter deleted from existing law. *hb1042* HOUSE BILL 1042 M4, M3, M1 4lr3249 CF SB 932 By: Delegate Guzzone Introduced and read first time: February 7, 2024 Assigned to: Environment and Transportation A BILL ENTITLED AN ACT concerning 1 Maryland Agricultural BMP Best in Show Program – Established 2 FOR the purpose of establishing the Maryland Agricultural BMP Best in Show Program to 3 provide and prioritize the use of certain funding relating to agricultural best 4 management practices and to increase the cost–effectiveness and environmental, 5 social, and health impacts of State–funded best management practices in a certain 6 manner; requiring the Department of Agriculture to administer and manage certain 7 competitive grants under the Program in a certain manner; establishing the 8 Maryland Agricultural BMP Best in Show Account in the Department; requiring an 9 applicant for a grant under the Program to provide certain information relating to 10 proposed best management practices; and generally relating to agricultural best 11 management practices. 12 BY adding to 13 Article – Agriculture 14 Section 2–2301 and 2–2302 to be under the new subtitle “Subtitle 23. Maryland 15 Agricultural BMP Best in Show Program” 16 Annotated Code of Maryland 17 (2016 Replacement Volume and 2023 Supplement) 18 BY repealing and reenacting, without amendments, 19 Article – Environment 20 Section 9–1605.4(b) and (f)(1) 21 Annotated Code of Maryland 22 (2014 Replacement Volume and 2023 Supplement) 23 BY repealing and reenacting, with amendments, 24 Article – Environment 25 Section 9–1605.4(f)(3) 26 Annotated Code of Maryland 27 (2014 Replacement Volume and 2023 Supplement) 28 2 HOUSE BILL 1042 BY repealing and reenacting, without amendments, 1 Article – Natural Resources 2 Section 8–2A–02(a) 3 Annotated Code of Maryland 4 (2023 Replacement Volume and 2023 Supplement) 5 BY repealing and reenacting, with amendments, 6 Article – Natural Resources 7 Section 8–2A–02(f)(1) 8 Annotated Code of Maryland 9 (2023 Replacement Volume and 2023 Supplement) 10 BY adding to 11 Article – Natural Resources 12 Section 8–2A–02(f)(5) 13 Annotated Code of Maryland 14 (2023 Replacement Volume and 2023 Supplement) 15 SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 16 That the Laws of Maryland read as follows: 17 Article – Agriculture 18 SUBTITLE 23. MARYLAND AGRICULTURAL BMP BEST IN SHOW PROGRAM. 19 2–2301. 20 (A) IN THIS SUBTITLE THE FOLLOWING WORDS HAVE THE MEANINGS 21 INDICATED. 22 (B) “AGRICULTURAL LAND TRA NSITION” MEANS THE IDENTIFICA TION OF 23 AGRICULTURAL LANDS T HAT ARE FACING LOSS OR SIGNI FICANT REDUCTION OF 24 AGRICULTURAL PRODUCT ION CAPACITY DUE TO PREDICTED SALTWATER 25 INTRUSION OR FREQUEN T FLOODING AND THE R ESULTING IMPLEMENTAT ION OF 26 BEST MANAGEMENT PRAC TICES TO CONVERT THO SE LANDS TO FUNCTION ING 27 WETLANDS, STREAMS, OR FOREST BUFFER HABITAT . 28 (C) “BEST MANAGEMENT PRACT ICE” MEANS A CONSERVATION OR 29 POLLUTION CONTROL PR ACTICE THAT: 30 (1) REDUCES SOIL OR NUTRI ENT LOSS DUE TO FARM ING PRACTICES; 31 OR 32 HOUSE BILL 1042 3 (2) MANAGES OR MITIGATES THE IMPACT OF POLLUT ANTS, ANIMAL 1 WASTES, OR AGRICULTURAL CHEMICA LS ON WATERS OF THE STATE OR THE 2 ENVIRONMENT . 3 (D) “ECOLOGICAL TIPPING PO INT” MEANS A CONDITION IN WHICH AN 4 ECOLOGICALLY DEGRADE D OR IMPAIRED STREAM SEGMENT HAS IMPROVED 5 ENOUGH SUCH THAT MON ITORING DATA SHOWS N EWLY HEALTHY BENTHIC 6 POPULATIONS AND BIOTIC I NTEGRITY OR WATER QU ALITY THAT SUPPORTS ALL 7 DESIGNATED USES , INCLUDING SIGNIFICAN TLY ENHANCED LIVING RESOURCES. 8 (E) “PROGRAM” MEANS THE MARYLAND AGRICULTURAL BMP BEST IN 9 SHOW PROGRAM ESTABLISHED U NDER § 2–2302 OF THIS SUBTITLE. 10 (F) “SHALLOW WATER HABITAT ” MEANS THE PORTION OF THE 11 CHESAPEAKE AND ATLANTIC COASTAL BAYS AND THEIR TRIBUT ARIES FOR WHICH 12 THE STATE HAS ADOPTED WAT ER QUALITY CRITERIA TO SUPPORT SUBMERGED 13 AQUATIC VEGETATION . 14 2–2302. 15 (A) THERE IS A MARYLAND AGRICULTURAL BMP BEST IN SHOW 16 PROGRAM. 17 (B) THE PURPOSE OF THE PROGRAM IS TO: 18 (1) PROVIDE GREATER FUNDI NG NEEDED TO PROVIDE PRODUCERS 19 WITH GREATER INCENTI VES TO PARTICIPATE I N THE COORDINATED FU NDING OF 20 MULTIPLE BEST MANAGE MENT PRACTICES WITHI N INDIVIDUAL AGRICUL TURAL 21 OPERATIONS OR ACROSS MULTIPLE OPERATIONS IN CLOSE PROXIMITY ; 22 (2) PRIORITIZE THE USE OF AGRICULTURAL COST –SHARE FUNDING 23 AND OTHER STATE FUNDS TO SUPPOR T THE COORDINATED ES TABLISHMENT OF 24 BEST MANAGEMENT PRAC TICES IN LOCATIONS M OST LIKELY TO HAVE A 25 SHORT–TERM BENEFICIAL IMPA CT ON WATER QUALITY , LIVING RESOURCES , OR 26 PUBLIC HEALTH ; AND 27 (3) INCREASE THE COST –EFFECTIVENESS AND EN VIRONMENTAL , 28 SOCIAL, AND HEALTH IMPACTS O F STATE–FUNDED BEST MANAGEME NT PRACTICES 29 THROUGH GREATER COOR DINATION, PLANNING, TARGETING, OR USE OF 30 HIGH–PRIORITY PRACTICES T HAT PROVIDE ENVIRONM ENTAL, SOCIAL, AND 31 RESILIENCY BENEFITS IN ADDITION TO NUTRI ENT AND SEDIMENT RED UCTION. 32 4 HOUSE BILL 1042 (C) TO CARRY OUT THE PURP OSE OF THE PROGRAM, THE DEPARTMENT 1 SHALL: 2 (1) ASSIGN A PROGRAM ADMINISTRATOR AND PROVIDE FOR 3 ADEQUATE ADMINISTRAT IVE SUPPORT; 4 (2) DEVELOP, ADVERTISE, AND RECEIVE COMPETIT IVE PROGRAM 5 GRANT APPLICATIONS ; 6 (3) EVALUATE APPLICATIONS AND SELECT GRANTEES NOT LESS 7 THAN ANNUALLY ; 8 (4) ADMINISTER AND MANAGE GRANTS UNDER THE PROGRAM, 9 INCLUDING BY MONITOR ING AND EVALUATING STATE–FUNDED BEST MANAGEME NT 10 PRACTICES; AND 11 (5) COORDINATE WITH THE DEPARTMENT OF NATURAL RESOURCES 12 AND THE DEPARTMENT OF THE ENVIRONMENT TO PROVID E TECHNICAL 13 ASSISTANCE AND GUIDA NCE TO APPLICANTS AN D GRANTEES, INCLUDING METHODS 14 AND PROCEDURES FOR M ONITORING, EVALUATING, AND VERIFYING PROJEC T 15 OUTCOMES. 16 (D) (1) THERE IS A MARYLAND AGRICULTURAL BMP BEST IN SHOW 17 ACCOUNT IN THE DEPARTMENT . 18 (2) THE MARYLAND AGRICULTURAL BMP BEST IN SHOW ACCOUNT 19 CONSISTS OF: 20 (I) NOT MORE THAN $2,000,000 PER YEAR OF THE REVE NUES 21 TRANSFERRED TO THE DEPARTMENT FROM THE BAY RESTORATION FUND UNDER 22 § 9–1605.2(H)(2)(II) OF THE ENVIRONMENT ARTICLE; 23 (II) NOT MORE THAN $3,000,000 PER YEAR OF THE REVE NUES 24 TRANSFERRED TO THE DEPARTMEN T FROM THE CHESAPEAKE AND ATLANTIC 25 COASTAL BAYS 2010 TRUST FUND UNDER § 8–2A–02(F)(5) OF THE NATURAL 26 RESOURCES ARTICLE; 27 (III) ANY AGRICULTURAL COST –SHARE FUNDING PROVID ED BY 28 THE DEPARTMENT UNDER § 8–704 OF THIS ARTICLE FOR THE PURPOSE OF THE 29 PROGRAM; AND 30 HOUSE BILL 1042 5 (IV) ANY FUNDS TRANSFERRED TO THE DEPARTMENT FROM 1 THE CLEAN WATER COMMERCE ACCOUNT UNDER § 9–1605.4(F)(3)(III) OF THE 2 ENVIRONMENT ARTICLE. 3 (E) (1) AN APPLICANT FOR A GR ANT UNDER THIS SECTI ON SHALL 4 DEMONSTRATE THAT ANY AGRICULTURAL OPERATI ON ON WHI CH BEST 5 MANAGEMENT PRACTICES ARE TO BE ESTABLISHE D ARE IN COMPLIANCE WITH ANY 6 NUTRIENT MANAGEMENT PLAN OR CONSERVATION PLAN REQUIRED UNDER THIS 7 ARTICLE. 8 (2) AN APPLICANT SHALL IN CLUDE A PLAN FOR THE 9 IMPLEMENTATION OF : 10 (I) NOT LESS THAN FIVE DIFFERENT TYPES OF B EST 11 MANAGEMENT PRACTICES , WITH PRIORITY CONSID ERATION GIVEN TO THO SE 12 PRACTICES LISTED UND ER PARAGRAPH (4)(II) OF THIS SUBSECTION , DESIGNED TO 13 FUNCTION AS PART OF A COMMON PLAN TO MAX IMIZE IMPACT AND EFF ICIENCY; OR 14 (II) FOR AN OPERAT ION LOCATED IN AN OV ERBURDENED 15 COMMUNITY OR UNDERSE RVED COMMUNITY , AS DEFINED IN § 1–701 OF THE 16 ENVIRONMENT ARTICLE, A VEGETATIVE ENVIRON MENTAL BUFFER , HEDGEROW , 17 WINDBREAK , OR OTHER BEST MANAGE MENT PRACTICE OR COM BINATION OF 18 PRACTICES DESIGNED T O REDUCE EX POSURE TO AIR EMISSI ONS FROM REGULATED 19 POINT SOURCES OF POL LUTION. 20 (3) AN APPLICANT SHALL : 21 (I) PROVIDE AN IMPLEMENTA TION AND MONITORING PLAN 22 SUFFICIENT TO EVALUA TE ACHIEVEMENT OF TH E ENVIRONMENTAL , SOCIAL, 23 RESILIENCY, NUTRIENT REDUCTION , AND SEDIMEN T REDUCTION OUTCOMES OF 24 THE PROJECT; 25 (II) IDENTIFY THE WATER QU ALITY, LIVING RESOURCE , OR 26 OTHER ENVIRONMENTAL AND SOCIAL BENEFITS ANTICIPATED FROM THE BEST 27 MANAGEMENT PRACTICES , ALONG WITH THE ANTIC IPATED TIMELINE FOR 28 ACHIEVEMENT OF THE B ENEFITS; 29 (III) DESCRIBE ANY KNOWN AN D RELEVANT ENVIRONME NTAL 30 FEATURES THAT DEMONS TRATE HOW THE SPECIF IC LOCATIONS FOR BES T 31 MANAGEMENT PRACTICE ESTABLISHMENT ARE LI KELY TO PROVIDE A 32 PARTICULARLY ROBUST AND ACCELERATED RESP ONSE, INCLUDING 33 CONSIDERATIONS OF : 34 6 HOUSE BILL 1042 1. PROXIMITY TO WATERS OF THE STATE; 1 2. KNOWN ENVIRONMENTAL O R HYDROLOGIC 2 INFORMATION , INCLUDING GROUNDWATE R TRANSPORT RATES , POLLUTANT 3 ATTENUATION , POLLUTANT DELIVERY R ATIOS, AND SOIL TYPES; 4 3. ATTAINMENT STATUS OF WATER QUALITY 5 STANDARDS; 6 4. LOCATION WITHIN THE B UFFER OF A CHESAPEAKE 7 OR ATLANTIC COASTAL BAYS CRITICAL AREA OR OTHER AREA DE SIGNATED FOR 8 REGULATION OR SPECIA L PROTECTION UNDER A STATE OR FEDERAL LAW ; AND 9 5. HUMAN POLLUTANT EXPOS URE PATHWAYS , 10 INCLUDING PROXIMITY TO NEARBY RESID ENTIAL AREAS AND ANT ICIPATED 11 IMPROVEMENTS TO DRIN KING WATER, AIR QUALITY, AND REDUCTION OF EXP OSURE 12 TO RUNOFF; AND 13 (IV) ALLOW THE DEPARTMENT TO INSPECT AND EVALUATE 14 BEST MANAGEMENT PRAC TICE EFFECTIVENESS , INCLUDING THROUGH 15 MONITORING AND SAMPL ING ACTIVITIES, ON AN AGREED –ON SCHEDULE . 16 (4) (I) WHEN EVALUATING APPLI CATIONS FOR THE USE OF FUNDS 17 UNDER THIS SECTION , THE DEPARTMENT SHALL PRIO RITIZE BEST MANAGEME NT 18 PRACTICES THAT THE A PPLICANT DEMONSTRATE S ARE: 19 1. IN CLOSE PROXIMITY AN D LIKELY TO PROVIDE 20 ENHANCED AND ACCELER ATED BENEFITS TO A P ARTICULAR AREA OF SH ALLOW 21 WATER HABITAT ; 22 2. POTENTIALLY CAPABLE O F REDUCING POLLUTION TO 23 WATERS OF THE STATE SUFFICIENT TO R EACH AN ECOLOGICAL T IPPING POINT; OR 24 3. LIKELY TO REDUCE HEAL TH BURDENS FO R NEARBY 25 RESIDENTS THROUGH TH E REDUCTION OF EXPOS URE TO AIR POLLUTANT S OR 26 CONTAMINATED DRINKIN G WATER. 27 (II) PRIORITY BEST MANAGEM ENT PRACTICES INCLUD E: 28 1. VEGETATIVE ENVIRONMEN TAL BUFFERS , 29 HEDGEROWS , WINDBREAKS , OR OTHER PRACTICES D ESIGNED TO RED UCE THE 30 TRANSPORT OF AIR EMI SSIONS AND DEPOSITIO N; 31 HOUSE BILL 1042 7 2. STREAM EXCLUSION FENC ING; 1 3. RIPARIAN TREE PLANTIN G AND OTHER HIGH –IMPACT 2 FIXED NATURAL FILTER PRACTICES AS DEFINED IN § 8–701 OF THIS ARTICLE; 3 4. WETLAND RESTORATION O R ESTABLISHMENT ; 4 5. LAND RETIREMENT AND C ONSERVATION ; 5 6. SMALL–SCALE URBAN AGRICULT URAL PRACTICES ; 6 7. AGRICULTURAL LAND TRA NSITION PRACTICES ; 7 8. MUSSEL RESTORATION ; 8 9. BIORETENTION ; AND 9 10. AGRICULTURAL DITCH MA NAGEMENT PRACTICES , 10 INCLUDING DENITRIFYI NG BIOREACTORS . 11 (F) (1) THE DEPARTMENT SHALL PUBL ISH ON ITS WEBSITE A BEST 12 MANAGEMENT PRACTICE PAYMENT SCHEDULE AND ANY CRITERIA USED FO R THE 13 EVALUATION OF COMPET ITIVE APPLICATIONS , SELECTION OF GRANTEES , AND 14 PROCEDURES FOR MEASU RING THE EFFECTIVENE SS OF BEST MANAGEMEN T 15 PRACTICES THAT ARE T O BE INCLUDED IN ANY GRANT AGREEMENT . 16 (2) THE FIVE OR MORE PRAC TICES PROPOSED BY A GRANT 17 APPLICANT UNDER SUBS ECTION (E)(4)(II) OF THIS SECTION MUST MEET THE SAME 18 COMPETITIVE FUNDING CRITERIA AS THE CHESAPEAKE AND ATLANTIC COASTAL 19 BAYS 2010 TRUST FUND UNDER § 8–2A–02 OF THE NATURAL RESOURCES ARTICLE. 20 Article – Environment 21 9–1605.4. 22 (b) There is a Clean Water Commerce Account. 23 (f) (1) Subject to the provisions of this subsection, the Account may be used 24 only for the purchase of cost–effective environmental outcomes that: 25 (i) Support the State’s efforts to achieve the Chesapeake Bay 26 TMDL; and 27 (ii) Have an expected life of at least 10 years. 28 8 HOUSE BILL 1042 (3) Any unencumbered funds not used to purchase environmental 1 outcomes as specified under paragraph (2) of this subsection are: 2 (i) No longer subject to the allocation requirements specified under 3 paragraph (2) of this subsection; [and] 4 (ii) Available for use consistent with this section in subsequent fiscal 5 years; AND 6 (III) SUBJECT TO TRANSFER T O THE DEPARTMENT OF 7 AGRICULTURE TO BE USE D IN ACCORDANCE WITH § 2–2302 OF THE AGRICULTURE 8 ARTICLE. 9 Article – Natural Resources 10 8–2A–02. 11 (a) There is a Chesapeake and Atlantic Coastal Bays 2010 Trust Fund. 12 (f) (1) The Fund may be used only for the implementation of [nonpoint source 13 pollution control projects to]: 14 (i) NONPOINT SOURCE POLLU TION CONTROL PROJECT S THAT: 15 1. Support State and local watershed implementation plans 16 by targeting limited financial resources on the most effective nonpoint source pollution 17 control projects; and 18 2. IMPROVE THE HEALTH OF THE ATLANTIC COASTAL 19 BAYS AND THEIR TRIBUT ARIES; AND 20 (ii) [Improve the health of the Atlantic Coastal Bays and their 21 tributaries] BEST MANAGEMENT PRACT ICES IN ACCORDANCE W ITH § 2–2302 OF THE 22 AGRICULTURE ARTICLE. 23 (5) UP TO $3,000,000 OF THE FUND MAY BE TRANSFERR ED TO THE 24 DEPARTMENT OF AGRICULTURE ANNUALLY TO BE USED IN ACCORD ANCE WITH § 25 2–2302 OF THE AGRICULTURE ARTICLE. 26 SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect 27 October 1, 2024. 28