EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
[Brackets] indicate matter deleted from existing law.
*hb1266*
HOUSE BILL 1266
M3 4lr3076
CF 4lr3477
By: Delegate Stein
Introduced and read first time: February 8, 2024
Assigned to: Environment and Transportation and Appropriations
A BILL ENTITLED
AN ACT concerning 1
Clean Water Commerce Ac count – Contracts for the Purchase of Environmental 2
Outcomes 3
FOR the purpose of requiring, in entering into a certain contract under the Clean Water 4
Commerce Account for the purchase of a certain environmental outcome, the 5
Department of the Environment to allow certain nonuniform payment schedules and 6
include certain financial incentives for certain purposes; and generally relating to 7
the Clean Water Commerce Account. 8
BY repealing and reenacting, without amendments, 9
Article – Environment 10
Section 9–1605.4(a)(1), (2), and (6), (b), (c), (f)(1), (m), and (n) 11
Annotated Code of Maryland 12
(2014 Replacement Volume and 2023 Supplement) 13
BY repealing and reenacting, with amendments, 14
Article – Environment 15
Section 9–1605.4(o) 16
Annotated Code of Maryland 17
(2014 Replacement Volume and 2023 Supplement) 18
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 19
That the Laws of Maryland read as follows: 20
Article – Environment 21
9–1605.4. 22
(a) (1) In this section the following words have the meanings indicated. 23
(2) “Account” means the Clean Water Commerce Account. 24 2 HOUSE BILL 1266
(6) “Environmental outcome” means nitrogen load reductions that can be 1
directly measured or modeled using the Chesapeake Bay Program Models. 2
(b) There is a Clean Water Commerce Account. 3
(c) The purpose of the Account is to purchase environmental outcomes in support 4
of the State’s efforts to achieve the Chesapeake Bay TMDL. 5
(f) (1) Subject to the provisions of this subsection, the Account may be used 6
only for the purchase of cost–effective environmental outcomes that: 7
(i) Support the State’s efforts to achieve the Chesapeake Bay 8
TMDL; and 9
(ii) Have an expected life of at least 10 years. 10
(m) An environmental outcome purchased under this section shall: 11
(1) Result from a new project or practice designed and established 12
following the selection of a proposal and the execution of a contract in accordance with this 13
section; 14
(2) Be in addition to any load reduction required by any federal, State, or 15
local law, regulation, policy, or permit, including any applicable total maximum daily load; 16
and 17
(3) Be consistent with the Chesapeake Bay Program Models so as to ensure 18
the load reductions will count toward the achievement of the Chesapeake Bay TMDL. 19
(n) A contract entered into by the Department under this section may be funded 20
for the expected life of the project or practice yielding the environmental outcome, not to 21
exceed 20 years. 22
(o) (1) [A] SUBJECT TO PARAGRAPH (2) OF THIS SUBSECTION , A contract 23
entered into by the Department under this section shall: 24
[(1)] (I) Require the owner of the project or practice to periodically submit 25
status updates in accordance with the quantification plan for the environmental outcomes 26
of the project or practice; 27
[(2)] (II) Require that payment for environmental outcomes be 28
conditioned on the achievement and verification of the environmental outcomes in 29
accordance with the quantification plan; 30
[(3)] (III) Include a schedule of payments that will be made as 31
environmental outcomes are achieved and verified; and 32 HOUSE BILL 1266 3
[(4)] (IV) Require reporting on the amount of nitrogen and, to the extent 1
that it can be feasibly determined without significant expense, phosphorus and sediment 2
that are removed annually by the project or practice. 3
(2) IN ENTERING INTO A CO NTRACT UNDER THIS SE CTION, THE 4
DEPARTMENT SHALL : 5
(I) FOR THE PURPOSE OF RE DUCING FINANCING COS TS FOR 6
THE OWNER OF A PROJE CT OR PRACTICE AND T HE STATE, ALLOW NONUNIFORM 7
PAYMENT SCHEDULES TH AT TAKE INTO ACCOUNT THE UPFRONT CAPITAL 8
INVESTMENT NEEDED IN ORDER TO GENERATE TH E INITIAL ENVIRONMEN TAL 9
OUTCOMES OF A PROJEC T OR PRACTICE; AND 10
(II) INCLUDE FINANCIAL INC ENTIVES TO ENSURE TH E OWNER’S 11
COMMITMENT TO THE OPERATIO N AND MAINTENANCE OF THE PROJECT OR 12
PRACTICE FOR ITS PRO POSED EXPECTED LIFE . 13
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect July 14
1, 2024. 15