MD
Maryland Senate Bill SB1144

Maryland 2024 Regular Session

Maryland Senate Bill SB1144 Compare Versions

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1- WES MOORE, Governor Ch. 501
21
3-– 1 –
4-Chapter 501
5-(Senate Bill 1144)
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+ *sb1144*
89
9-Clean Water Commerce Account – Contracts for the Purchase of Environmental
10-Outcomes
10+SENATE BILL 1144
11+M3 4lr3477
12+ CF HB 1266
13+By: Senators Guzzone and Elfreth
14+Introduced and read first time: February 10, 2024
15+Assigned to: Rules
16+Re–referred to: Education, Energy, and the Environment and Budget and Taxation, March
17+9, 2024
18+Committee Report: Favorable with amendments
19+Senate action: Adopted
20+Read second time: March 21, 2024
1121
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.
22+CHAPTER ______
1923
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)
24+AN ACT concerning 1
2525
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)
26+Clean Water Commerce Account – Contracts for the Purchase of Environmental 2
27+Outcomes 3
3128
32- SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND,
33-That the Laws of Maryland read as follows:
29+FOR the purpose of requiring, in entering into a certain contract under the Clean Water 4
30+Commerce Account for the purchase of a certain environmental outcome, the 5
31+Department of the Environment to allow certain nonuniform payment schedules and 6
32+include certain financial incentives for certain purposes; authorizing the Department 7
33+to require a certain payment or certain financial protections for contracts of a certain 8
34+size to ensure certain outcomes; and generally relating to the Clean Water Commerce 9
35+Account. 10
3436
35-Article – Environment
37+BY repealing and reenacting, without amendments, 11
38+ Article – Environment 12
39+Section 9–1605.4(a)(1), (2), and (6), (b), (c), (f)(1), (m), and (n) 13
40+ Annotated Code of Maryland 14
41+ (2014 Replacement Volume and 2023 Supplement) 15
3642
37-9–1605.4.
43+BY repealing and reenacting, with amendments, 16
44+ Article – Environment 17
45+Section 9–1605.4(o) 18
46+ Annotated Code of Maryland 19
47+ (2014 Replacement Volume and 2023 Supplement) 20
48+ 2 SENATE BILL 1144
3849
39- (a) (1) In this section the following words have the meanings indicated.
4050
41- (2) “Account” means the Clean Water Commerce Account.
51+ SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 1
52+That the Laws of Maryland read as follows: 2
4253
43- (6) “Environmental outcome” means nitrogen load reductions that can be
44-directly measured or modeled using the Chesapeake Bay Program Models.
54+Article – Environment 3
4555
46- (b) There is a Clean Water Commerce Account.
56+9–1605.4. 4
4757
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. 501 2024 LAWS OF MARYLAND
58+ (a) (1) In this section the following words have the meanings indicated. 5
5059
51-– 2 –
60+ (2) “Account” means the Clean Water Commerce Account. 6
5261
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:
62+ (6) “Environmental outcome” means nitrogen load reductions that can be 7
63+directly measured or modeled using the Chesapeake Bay Program Models. 8
5564
56- (i) Support the State’s efforts to achieve the Chesapeake Bay
57-TMDL; and
65+ (b) There is a Clean Water Commerce Account. 9
5866
59- (ii) Have an expected life of at least 10 years.
67+ (c) The purpose of the Account is to purchase environmental outcomes in support 10
68+of the State’s efforts to achieve the Chesapeake Bay TMDL. 11
6069
61- (m) An environmental outcome purchased under this section shall:
70+ (f) (1) Subject to the provisions of this subsection, the Account may be used 12
71+only for the purchase of cost–effective environmental outcomes that: 13
6272
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;
73+ (i) Support the State’s efforts to achieve the Chesapeake Bay 14
74+TMDL; and 15
6675
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
76+ (ii) Have an expected life of at least 10 years. 16
7077
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.
78+ (m) An environmental outcome purchased under this section shall: 17
7379
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.
80+ (1) Result from a new project or practice designed and established 18
81+following the selection of a proposal and the execution of a contract in accordance with this 19
82+section; 20
7783
78- (o) (1) [A] SUBJECT TO PARAGRAPH (2) OF THIS SUBSECTION , A contract
79-entered into by the Department under this section shall:
84+ (2) Be in addition to any load reduction required by any federal, State, or 21
85+local law, regulation, policy, or permit, including any applicable total maximum daily load; 22
86+and 23
8087
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;
88+ (3) Be consistent with the Chesapeake Bay Program Models so as to ensure 24
89+the load reductions will count toward the achievement of the Chesapeake Bay TMDL. 25
8490
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;
91+ (n) A contract entered into by the Department under this section may be funded 26
92+for the expected life of the project or practice yielding the environmental outcome, not to 27
93+exceed 20 years. 28
8894
89- [(3)] (III) Include a schedule of payments that will be made as
90-environmental outcomes are achieved and verified; and
95+ (o) (1) [A] SUBJECT TO PARAGRAPH (2) OF THIS SUBSECTION , A contract 29
96+entered into by the Department under this section shall: 30
97+ SENATE BILL 1144 3
9198
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. 501
9699
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 :
100+ [(1)] (I) Require the owner of the project or practice to periodically submit 1
101+status updates in accordance with the quantification plan for the environmental outcomes 2
102+of the project or practice; 3
101103
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.
104+ [(2)] (II) Require that payment for environmental outcomes be 4
105+conditioned on the achievement and verification of the environmental outcomes in 5
106+accordance with the quantification plan; 6
109107
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.
108+ [(3)] (III) Include a schedule of payments that will be made as 7
109+environmental outcomes are achieved and verified; and 8
113110
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 .
111+ [(4)] (IV) Require reporting on the amount of nitrogen and, to the extent 9
112+that it can be feasibly determined without significant expense, phosphorus and sediment 10
113+that are removed annually by the project or practice. 11
117114
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:
115+ (2) (I) IN ENTERING INTO A CO NTRACT FOR A PROJECT THAT 12
116+INCLUDES CONSTRUCTIO N, RECONSTRUCTION , OR REHABILITATION , ON REQUEST, 13
117+UNDER THIS SECTION , THE DEPARTMENT SHALL : 14
120118
121- (I) A MINIMUM FINAL PAYMEN T; AND
119+ (I) FOR THE PURPOSE OF RE DUCING FINANCING COS TS FOR 15
120+THE OWNER OF A PROJE CT OR PRACTICE AND T HE STATE, ALLOW NONUNIFORM 16
121+PAYMENT SCHEDULES THAT TAKE INTO ACCOU NT THE UPFRONT CAPIT AL 17
122+INVESTMENT NEEDED IN ORDER TO GENERATE THE INITIAL ENVIRONMENTAL 18
123+OUTCOMES OF A PROJEC T OR PRACTICE; AND THAT ALLOW FOR A COS T–PER–POUND 19
124+OF NITROGEN REDUCED THAT VARIES WITH THE ACHIEVEMENT OF PERFO RMANCE 20
125+MILESTONES, AS AGREED UPON BY BO TH PARTIES TO THE CO NTRACT. 21
122126
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 .
127+ (II) THE FIRST PER FORMANCE MILESTONE M AY NOT OCCUR 22
128+EARLIER THAN THE TIM E THAT THE CONSTRUCT ION, RECONSTRUCTION , OR 23
129+REHABILITATION IS CO MPLETE. 24
126130
127- SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect July
128-1, 2024.
131+ (II) INCLUDE FINANCIAL INC ENTIVES TO ENSURE TH E OWNER’S 25
132+COMMITMENT TO THE OP ERATION AND MAINTENA NCE OF THE PROJECT O R 26
133+PRACTICE FOR ITS PROPOSED EXP ECTED LIFE. 27
129134
130-Approved by the Governor, May 9, 2024.
135+ (3) IN ORDER TO ENSURE TH E ACHIEVEMENT OF ENV IRONMENTAL 28
136+OUTCOMES AGREED TO I N A CONTRACT, THE DEPARTMENT MAY REQUIR E: 29
137+
138+ (I) A MINIMUM FINAL PAYMEN T; AND 30
139+
140+ (II) FOR A CONTRACT AWARD GREATER THAN $500,000, 31
141+ADDITIONAL FINANCIAL PROTECTION S, INCLUDING A LETTER O F CREDIT, 32
142+INSURANCE INSTRUMENT , OR PERFORMANCE BOND . 33
143+ 4 SENATE BILL 1144
144+
145+
146+ SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect July 1
147+1, 2024. 2
148+
149+
150+
151+
152+Approved:
153+________________________________________________________________________________
154+ Governor.
155+________________________________________________________________________________
156+ President of the Senate.
157+________________________________________________________________________________
158+ Speaker of the House of Delegates.