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Maryland House Bill HB1266

Maryland 2024 Regular Session

Maryland House Bill HB1266 Compare Versions

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1- WES MOORE, Governor Ch. 502
21
3-– 1 –
4-Chapter 502
5-(House Bill 1266)
62
7-AN ACT concerning
3+EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
4+ [Brackets] indicate matter deleted from existing law.
5+ Underlining indicates amendments to bill.
6+ Strike out indicates matter stricken from the bill by amendment or deleted from the law by
7+amendment.
8+ *hb1266*
89
9-Clean Water Commerce Account – Contracts for the Purchase of Environmental
10-Outcomes
10+HOUSE BILL 1266
11+M3 4lr3076
12+ CF SB 1144
13+By: Delegate Stein
14+Introduced and read first time: February 8, 2024
15+Assigned to: Environment and Transportation and Appropriations
16+Committee Report: Favorable with amendments
17+House action: Adopted
18+Read second time: March 8, 2024
1119
12-FOR the purpose of requiring, in entering into a certain contract under the Clean Water
13-Commerce Account for the purchase of a certain environmental outcome, the
14-Department of the Environment to allow certain nonuniform payment schedules and
15-include certain financial incentives for certain purposes; authorizing the Department
16-to require a certain payment or certain financial protections for contracts of a certain
17-size to ensure certain outcomes; and generally relating to the Clean Water Commerce
18-Account.
20+CHAPTER ______
1921
20-BY repealing and reenacting, without amendments,
21- Article – Environment
22-Section 9–1605.4(a)(1), (2), and (6), (b), (c), (f)(1), (m), and (n)
23- Annotated Code of Maryland
24- (2014 Replacement Volume and 2023 Supplement)
22+AN ACT concerning 1
2523
26-BY repealing and reenacting, with amendments,
27- Article – Environment
28-Section 9–1605.4(o)
29- Annotated Code of Maryland
30- (2014 Replacement Volume and 2023 Supplement)
24+Clean Water Commerce Account – Contracts for the Purchase of Environmental 2
25+Outcomes 3
3126
32- SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND,
33-That the Laws of Maryland read as follows:
27+FOR the purpose of requiring, in entering into a certain contract under the Clean Water 4
28+Commerce Account for the purchase of a certain environmental outcome, the 5
29+Department of the Environment to allow certain nonuniform payment schedules and 6
30+include certain financial incentives for certain purposes; authorizing the Department 7
31+to require a certain payment or certain financial protections for contracts of a certain 8
32+size to ensure certain outcomes; and generally relating to the Clean Water Commerce 9
33+Account. 10
3434
35-Article – Environment
35+BY repealing and reenacting, without amendments, 11
36+ Article – Environment 12
37+Section 9–1605.4(a)(1), (2), and (6), (b), (c), (f)(1), (m), and (n) 13
38+ Annotated Code of Maryland 14
39+ (2014 Replacement Volume and 2023 Supplement) 15
3640
37-9–1605.4.
41+BY repealing and reenacting, with amendments, 16
42+ Article – Environment 17
43+Section 9–1605.4(o) 18
44+ Annotated Code of Maryland 19
45+ (2014 Replacement Volume and 2023 Supplement) 20
3846
39- (a) (1) In this section the following words have the meanings indicated.
47+ SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 21
48+That the Laws of Maryland read as follows: 22 2 HOUSE BILL 1266
4049
41- (2) “Account” means the Clean Water Commerce Account.
4250
43- (6) “Environmental outcome” means nitrogen load reductions that can be
44-directly measured or modeled using the Chesapeake Bay Program Models.
4551
46- (b) There is a Clean Water Commerce Account.
52+Article – Environment 1
4753
48- (c) The purpose of the Account is to purchase environmental outcomes in support
49-of the State’s efforts to achieve the Chesapeake Bay TMDL. Ch. 502 2024 LAWS OF MARYLAND
54+9–1605.4. 2
5055
51-– 2 –
56+ (a) (1) In this section the following words have the meanings indicated. 3
5257
53- (f) (1) Subject to the provisions of this subsection, the Account may be used
54-only for the purchase of cost–effective environmental outcomes that:
58+ (2) “Account” means the Clean Water Commerce Account. 4
5559
56- (i) Support the State’s efforts to achieve the Chesapeake Bay
57-TMDL; and
60+ (6) “Environmental outcome” means nitrogen load reductions that can be 5
61+directly measured or modeled using the Chesapeake Bay Program Models. 6
5862
59- (ii) Have an expected life of at least 10 years.
63+ (b) There is a Clean Water Commerce Account. 7
6064
61- (m) An environmental outcome purchased under this section shall:
65+ (c) The purpose of the Account is to purchase environmental outcomes in support 8
66+of the State’s efforts to achieve the Chesapeake Bay TMDL. 9
6267
63- (1) Result from a new project or practice designed and established
64-following the selection of a proposal and the execution of a contract in accordance with this
65-section;
68+ (f) (1) Subject to the provisions of this subsection, the Account may be used 10
69+only for the purchase of cost–effective environmental outcomes that: 11
6670
67- (2) Be in addition to any load reduction required by any federal, State, or
68-local law, regulation, policy, or permit, including any applicable total maximum daily load;
69-and
71+ (i) Support the State’s efforts to achieve the Chesapeake Bay 12
72+TMDL; and 13
7073
71- (3) Be consistent with the Chesapeake Bay Program Models so as to ensure
72-the load reductions will count toward the achievement of the Chesapeake Bay TMDL.
74+ (ii) Have an expected life of at least 10 years. 14
7375
74- (n) A contract entered into by the Department under this section may be funded
75-for the expected life of the project or practice yielding the environmental outcome, not to
76-exceed 20 years.
76+ (m) An environmental outcome purchased under this section shall: 15
7777
78- (o) (1) [A] SUBJECT TO PARAGRAPH (2) OF THIS SUBSECTION , A contract
79-entered into by the Department under this section shall:
78+ (1) Result from a new project or practice designed and established 16
79+following the selection of a proposal and the execution of a contract in accordance with this 17
80+section; 18
8081
81- [(1)] (I) Require the owner of the project or practice to periodically submit
82-status updates in accordance with the quantification plan for the environmental outcomes
83-of the project or practice;
82+ (2) Be in addition to any load reduction required by any federal, State, or 19
83+local law, regulation, policy, or permit, including any applicable total maximum daily load; 20
84+and 21
8485
85- [(2)] (II) Require that payment for environmental outcomes be
86-conditioned on the achievement and verification of the environmental outcomes in
87-accordance with the quantification plan;
86+ (3) Be consistent with the Chesapeake Bay Program Models so as to ensure 22
87+the load reductions will count toward the achievement of the Chesapeake Bay TMDL. 23
8888
89- [(3)] (III) Include a schedule of payments that will be made as
90-environmental outcomes are achieved and verified; and
89+ (n) A contract entered into by the Department under this section may be funded 24
90+for the expected life of the project or practice yielding the environmental outcome, not to 25
91+exceed 20 years. 26
9192
92- [(4)] (IV) Require reporting on the amount of nitrogen and, to the extent
93-that it can be feasibly determined without significant expense, phosphorus and sediment
94-that are removed annually by the project or practice.
95- WES MOORE, Governor Ch. 502
93+ (o) (1) [A] SUBJECT TO PARAGRAPH (2) OF THIS SUBSECTION , A contract 27
94+entered into by the Department under this section shall: 28
95+ HOUSE BILL 1266 3
9696
97-– 3 –
98- (2) (I) IN ENTERING INTO A CO NTRACT FOR A PROJECT THAT
99-INCLUDES CONSTRUCTIO N, RECONSTRUCTION , OR REHABILITATION , ON REQUEST,
100-UNDER THIS SECTION , THE DEPARTMENT SHALL :
10197
102- (I) FOR THE PURPOSE OF RE DUCING FINANCING COS TS FOR
103-THE OWNER OF A PROJE CT OR PRACTICE AND T HE STATE, ALLOW NONUNIFORM
104-PAYMENT SCHEDULES THAT TAKE INTO ACCOU NT THE UPFRONT CAPIT AL
105-INVESTMENT NEEDED IN ORDER TO GENERATE TH E INITIAL ENVIRONMEN TAL
106-OUTCOMES OF A PROJECT OR PRACTICE ; AND THAT ALLOW FOR A COS T–PER–POUND
107-OF NITROGEN REDUCED THAT VARIES WITH THE ACHIEVEMENT OF PERFO RMANCE
108-MILESTONES, AS AGREED UPON BY BO TH PARTIES TO THE CO NTRACT.
98+ [(1)] (I) Require the owner of the project or practice to periodically submit 1
99+status updates in accordance with the quantification plan for the environmental outcomes 2
100+of the project or practice; 3
109101
110- (II) THE FIRST PERFORMANCE MILESTONE MAY NOT OC CUR
111-EARLIER THAN THE TIME THAT THE CONSTR UCTION, RECONSTRUCTION , OR
112-REHABILITATION IS CO MPLETE.
102+ [(2)] (II) Require that payment for environmental outcomes be 4
103+conditioned on the achievement and verification of the environmental outcomes in 5
104+accordance with the quantification plan; 6
113105
114- (II) INCLUDE FINANCIAL INC ENTIVES TO ENSURE TH E OWNER’S
115-COMMITMENT TO THE OP ERATION AND MAINTENA NCE OF THE PROJECT O R
116-PRACTICE FOR ITS PRO POSED EXPECTED LIFE .
106+ [(3)] (III) Include a schedule of payments that will be made as 7
107+environmental outcomes are achieved and verified; and 8
117108
118- (3) IN ORDER TO ENSURE THE ACHIEV EMENT OF ENVIRONMENT AL
119-OUTCOMES AGREED TO I N A CONTRACT, THE DEPARTMENT MAY REQUIR E:
109+ [(4)] (IV) Require reporting on the amount of nitrogen and, to the extent 9
110+that it can be feasibly determined without significant expense, phosphorus and sediment 10
111+that are removed annually by the project or practice. 11
120112
121- (I) A MINIMUM FINAL PAYMEN T; AND
113+ (2) (I) IN ENTERING INTO A CO NTRACT FOR A PROJECT THAT 12
114+INCLUDES CONSTRUCTIO N, RECONSTRUCTION , OR REHABILITATION , ON REQUEST, 13
115+UNDER THIS SECTION , THE DEPARTMENT SHALL : 14
122116
123- (II) FOR A CONTRACT AWARD GREATER THAN $500,000,
124-ADDITIONAL FINANCIAL PROTECTIONS , INCLUDING A LETTER O F CREDIT,
125-INSURANCE INSTRUMENT , OR PERFORMANCE BOND .
117+ (I) FOR THE PURPOSE OF RE DUCING FINANCING COS TS FOR 15
118+THE OWNER OF A PROJE CT OR PRACTICE AND T HE STATE, ALLOW NONUNIFORM 16
119+PAYMENT SCHEDULES THAT TAKE INTO ACCOU NT THE UPFRONT CAPIT AL 17
120+INVESTMENT NEEDED IN ORDER TO GENERATE TH E INITIAL ENVIRONMEN TAL 18
121+OUTCOMES O F A PROJECT OR PRACT ICE; AND THAT ALLOW FOR A COS T–PER–POUND 19
122+OF NITROGEN REDUCED THAT VARIES WITH THE ACHIEVEMENT OF PERFO RMANCE 20
123+MILESTONES, AS AGREED UPON BY BO TH PARTIES TO THE CO NTRACT. 21
126124
127- SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect July
128-1, 2024.
125+ (II) THE FIRST PERFORMANCE MILESTONE MAY NOT OC CUR 22
126+EARLIER THAN THE TIME THAT THE CO NSTRUCTION , RECONSTRUCTION , OR 23
127+REHABILITATION IS CO MPLETE. 24
129128
130-Approved by the Governor, May 9, 2024.
129+ (II) INCLUDE FINANCIAL INC ENTIVES TO ENSURE TH E OWNER’S 25
130+COMMITMENT TO THE OP ERATION AND MAINTENA NCE OF THE PROJECT O R 26
131+PRACTICE FOR ITS PRO POSED EXPECTED LIFE . 27
132+
133+ (3) IN ORDER TO ENSURE THE ACHIEVEMENT OF ENVIR ONMENTAL 28
134+OUTCOMES AGREED TO I N A CONTRACT, THE DEPARTMENT MAY REQUIR E: 29
135+
136+ (I) A MINIMUM FINAL PAYMEN T; AND 30
137+
138+ (II) FOR A CONTRACT AWARD GREATER THAN $500,000, 31
139+ADDITIONAL FINANCIAL PROTECTIONS , INCLUDING A LETTER O F CREDIT, 32
140+INSURANCE INSTRUMENT , OR PERFORMANCE BOND . 33
141+ 4 HOUSE BILL 1266
142+
143+
144+ SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect July 1
145+1, 2024. 2
146+
147+
148+
149+
150+Approved:
151+________________________________________________________________________________
152+ Governor.
153+________________________________________________________________________________
154+ Speaker of the House of Delegates.
155+________________________________________________________________________________
156+ President of the Senate.