EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTING LAW.
[Brackets] indicate matter deleted from existing law.
Underlining indicates amendments to bill.
Strike out indicates matter stricken from the bill by amendment or deleted from the law by
amendment.
*sb1173*
SENATE BILL 1173
M3 4lr3541
CF HB 1512
By: Senator Mautz
Introduced and read first time: February 15, 2024
Assigned to: Rules
Re–referred to: Education, Energy, and the Environment, March 9, 2024
Committee Report: Favorable
Senate action: Adopted
Read second time: March 21, 2024
CHAPTER ______
AN ACT concerning 1
Bay Restoration Fund – Use of Funds – Municipal Wastewater Facilities – 2
Sunset Repeal 3
FOR the purpose of repealing the termination date for certain provisions of law that expand 4
the authorized uses of the Bay Restoration Fund to include certain costs associated 5
with the connection of a property using an on–site sewage disposal system to a 6
certain existing municipal wastewater facility; and generally relating to the Bay 7
Restoration Fund. 8
BY repealing and reenacting, without amendments, 9
Article – Environment 10
Section 9–1605.2(h)(1), (2), and (5) 11
Annotated Code of Maryland 12
(2014 Replacement Volume and 2023 Supplement) 13
BY repealing and reenacting, with amendments, 14
Chapter 413 of the Acts of the General Assembly of 2020 15
Section 2 16
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 17
That the Laws of Maryland read as follows: 18
Article – Environment 19
2 SENATE BILL 1173
9–1605.2. 1
(h) (1) With regard to the funds collected under subsection (b)(1)(i)1 of this 2
section from users of an on–site sewage disposal system or holding tank that receive a water 3
bill and subsection (b)(1)(i)2 and 3 of this section, beginning in fiscal year 2006, the 4
Comptroller shall: 5
(i) Establish a separate account within the Bay Restoration Fund; 6
and 7
(ii) Disburse the funds as provided under paragraph (2) of this 8
subsection. 9
(2) The Comptroller shall: 10
(i) Deposit 60% of the funds in the separate account to be used for: 11
1. Subject to paragraphs (3), (4), (5), and (6) of this 12
subsection, with priority first given to failing systems and holding tanks located in the 13
Chesapeake and Atlantic Coastal Bays Critical Area and then to failing systems that the 14
Department determines are a threat to public health or water quality, grants or loans for 15
up to 100% of: 16
A. The costs attributable to upgrading an on–site sewage 17
disposal system to the best available technology for the removal of nitrogen; 18
B. The cost difference between a conventional on–site sewage 19
disposal system and a system that utilizes the best available technology for the removal of 20
nitrogen; 21
C. The cost of repairing or replacing a failing on–site sewage 22
disposal system with a system that uses the best available technology for nitrogen removal; 23
D. The cost, up to the sum of the costs authorized under item 24
B of this item for each individual system, of replacing multiple on–site sewage disposal 25
systems located in the same community with a new community sewerage system that is 26
owned by a local government and that meets enhanced nutrient removal standards; or 27
E. The cost, up to the sum of the costs authorized under item 28
C of this item for each individual system, of connecting a property using an on–site sewage 29
disposal system to an existing municipal wastewater facility that is achieving, or has signed 30
a funding agreement with the Department and is under construction to achieve, enhanced 31
nutrient removal or biological nutrient removal level treatment, including payment of the 32
principal, but not interest, of debt issued by a local government for such connection costs; 33
2. The reasonable costs of the Department, not to exceed 8% 34
of the funds deposited into the separate account, to: 35 SENATE BILL 1173 3
A. Implement an education, outreach, and upgrade program 1
to advise owners of on–site sewage disposal systems and holding tanks on the proper 2
maintenance of the systems and tanks and the availability of grants and loans under item 3
1 of this item; 4
B. Review and approve the design and construction of on–site 5
sewage disposal system or holding tank upgrades; 6
C. Issue grants or loans as provided under item 1 of this item; 7
and 8
D. Provide technical support for owners of upgraded on–site 9
sewage disposal systems or holding tanks to operate and maintain the upgraded systems; 10
3. A portion of the reasonable costs of a local public entity 11
that has been delegated by the Department under § 1–301(b) of this article to administer 12
and enforce environmental laws, not to exceed 10% of the funds deposited into the separate 13
account, to implement regulations adopted by the Department for on–site sewage disposal 14
systems that utilize the best available technology for the removal of nitrogen; 15
4. Subject to paragraph (7) of this subsection, financial 16
assistance to low–income homeowners, as defined by the Department, for up to 50% of the 17
cost of an operation and maintenance contract of up to 5 years for an on–site sewage 18
disposal system that utilizes nitrogen removal technology; 19
5. Subject to paragraph (8) of this subsection, a local 20
jurisdiction to provide financial assistance to eligible homeowners for the reasonable cost 21
of pumping out an on–site sewage disposal system, at least once every 5 years, unless a 22
more frequent pump out schedule is recommended during an inspection, not to exceed 10% 23
of the funds allocated to the local jurisdiction; and 24
6. In fiscal years 2020 and 2021, financial assistance to a 25
local jurisdiction for the development of a septic stewardship plan that meets the 26
requirements under paragraph (8)(iii)2 of this subsection; and 27
(ii) Transfer 40% of the funds to the Maryland Agriculture Water 28
Quality Cost Share Program in the Department of Agriculture in order to fund cover crop 29
activities. 30
(5) Funding for the costs identified in paragraph (2)(i)1E of this subsection 31
may be provided only if all of the following conditions are met: 32
(i) The environmental impact of the on–site sewage disposal system 33
is documented by the local government and confirmed by the Department; 34
(ii) It can be demonstrated that: 35 4 SENATE BILL 1173
1. The replacement of the on–site sewage disposal system 1
with service to an existing municipal wastewater facility that is achieving, or has signed a 2
funding agreement with the Department and is under construction to achieve, enhanced 3
nutrient removal or biological nutrient removal level treatment is more cost–effective for 4
nitrogen removal than upgrading the individual on–site sewage disposal system; or 5
2. The individual replacement of the on–site sewage disposal 6
system is not feasible; 7
(iii) The project is consistent with the county’s comprehensive plan 8
and water and sewer master plan; 9
(iv) 1. The on–site sewage disposal system was installed as of 10
October 1, 2008, and the property the system serves is located in a priority funding area, 11
in accordance with § 5–7B–02 of the State Finance and Procurement Article; or 12
2. The on–site sewage disposal system was installed as of 13
October 1, 2008, the property the system serves is not located in a priority funding area, 14
and the project meets the requirements under § 5–7B–06 of the State Finance and 15
Procurement Article and is consistent with a public health area of concern: 16
A. Identified in the county water and sewer plan; or 17
B. Certified by a county environmental health director with 18
concurrence by the Department and, if funding is approved, subsequently added to the 19
county water and sewer plan within a time frame jointly agreed on by the Department and 20
the county that takes into consideration the county’s water and sewer plan update and 21
amendment process; and 22
(v) The funding agreement for a project that meets the conditions for 23
funding under subparagraph (iv)2 of this paragraph includes provisions to ensure: 24
1. Denial of access for any future connections that are not 25
included in the project’s proposed service area; and 26
2. That the project will not unduly impede access to funding 27
for upgrading individual on–site sewage disposal systems in the county with best available 28
technology for nitrogen removal. 29
Chapter 413 of the Acts of 2020 30
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect July 31
1, 2020. [It shall remain effective for a period of 4 years and, at the end of June 30, 2024, 32
this Act, with no further action required by the General Assembly, shall be abrogated and 33
of no further force and effect.] 34
SENATE BILL 1173 5
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect June 1
1, 2024. 2
Approved:
________________________________________________________________________________
Governor.
________________________________________________________________________________
President of the Senate.
________________________________________________________________________________
Speaker of the House of Delegates.