EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTING LAW.
[Brackets] indicate matter deleted from existing law.
*sb0726*
SENATE BILL 726
M3 4lr3041
By: Senator Lewis Young
Introduced and read first time: January 31, 2024
Assigned to: Education, Energy, and the Environment
A BILL ENTITLED
AN ACT concerning 1
Bay Restoration Fund – Authorized Uses – Decommission of Wastewater 2
Treatment Lagoon 3
FOR the purpose of altering the authorized uses of the Bay Restoration Fund to include, 4
beginning in a certain fiscal year, certain costs related to the decommissioning of 5
certain wastewater treatment lagoons; and generally relating to authorized uses of 6
the Bay Restoration Fund. 7
BY repealing and reenacting, with amendments, 8
Article – Environment 9
Section 9–1605.2(i)(2) 10
Annotated Code of Maryland 11
(2014 Replacement Volume and 2023 Supplement) 12
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 13
That the Laws of Maryland read as follows: 14
Article – Environment 15
9–1605.2. 16
(i) (2) Funds in the Bay Restoration Fund shall be used only: 17
(i) 1. To award grants for up to 100% of eligible costs of projects 18
relating to planning, design, construction, and upgrade of a publicly owned wastewater 19
facility for flows up to the design capacity of the wastewater facility, as approved by the 20
Department, to achieve enhanced nutrient removal in accordance with paragraph (4) of this 21
subsection; and 22
2. Subject to paragraph (12) of this subsection, to award 23
grants for up to 50% of eligible costs of projects relating to planning, design, construction, 24 2 SENATE BILL 726
and upgrade of a privately owned wastewater facility for flows up to the design capacity of 1
the wastewater facility, as approved by the Department, to achieve enhanced nutrient 2
removal in accordance with paragraph (4) of this subsection; 3
(ii) In fiscal years 2016 and thereafter, for up to 87.5% of the total 4
cost of projects, as approved by the Department, relating to combined sewer overflows 5
abatement, rehabilitation of existing sewers, and upgrading conveyance systems, including 6
pumping stations; 7
(iii) In fiscal years 2010 and thereafter, for a portion of the operation 8
and maintenance costs related to the enhanced nutrient removal technology, which may 9
not exceed 10% of the total restoration fee collected from users of wastewater facilities 10
under this section by the Comptroller annually; 11
(iv) In fiscal years 2018 and thereafter, after payment of outstanding 12
bonds and the allocation of funds to other required uses of the Bay Restoration Fund for 13
funding in the following order of priority: 14
1. For funding the eligible costs to upgrade a wastewater 15
facility to enhanced nutrient removal at wastewater facilities with a design capacity of 16
500,000 gallons or more per day; 17
2. For funding the eligible costs of the most cost–effective 18
enhanced nutrient removal upgrades at wastewater facilities with a design capacity of less 19
than 500,000 gallons per day; and 20
3. As determined by the Department and based on water 21
quality, climate resiliency, flood control, and public health benefits, for the following: 22
A. For costs identified under item (ii) of this paragraph; 23
B. For costs identified under subsection (h)(2)(i)1 of this 24
section; and 25
C. With respect to a local government that has enacted and 26
implemented a system of charges to fully fund the implementation of a stormwater 27
management program, for grants to the local government for a portion of the costs of the 28
most cost–effective and efficient stormwater control measures, including stormwater 29
measures relating to water quality, climate resiliency, or flood control, as determined and 30
approved by the Department, from the restoration fees collected annually by the 31
Comptroller from users of wastewater facilities under this section; 32
(v) As a source of revenue or security for the payment of principal 33
and interest on bonds issued by the Administration if the proceeds of the sale of the bonds 34
will be deposited in the Bay Restoration Fund; 35
(vi) To earn interest on Bay Restoration Fund accounts; 36 SENATE BILL 726 3
(vii) For the reasonable costs of administering the Bay Restoration 1
Fund, which may not exceed 1.5% of the total restoration fees imposed on users of 2
wastewater facilities that are collected by the Comptroller annually; 3
(viii) For the reasonable administrative costs incurred by a local 4
government or a billing authority for a water or wastewater facility collecting the 5
restoration fees, in an amount not to exceed 5% of the total restoration fees collected by 6
that local government or billing authority; 7
(ix) For future upgrades of wastewater facilities to achieve additional 8
nutrient removal or water quality improvement, in accordance with paragraphs (6) and (7) 9
of this subsection; 10
(x) For costs associated with the issuance of bonds; 11
(xi) Subject to the allocation of funds and the conditions under 12
subsection (h) of this section, for projects related to the removal of nitrogen from on–site 13
sewage disposal systems and cover crop activities; 14
(xii) For costs associated with the implementation of alternate 15
compliance plans authorized in § 4–202.1(k)(3) of this article; 16
(xiii) After funding any eligible costs identified under item (iv)1 and 2 17
of this paragraph, for transfers to the Clean Water Commerce Account in accordance with 18
paragraph (3) of this subsection; [and] 19
(xiv) After funding any eligible costs identified under item (iv)1 and 2 20
of this paragraph, for the transfers required under paragraph (11) of this subsection; AND 21
(XV) IN FISCAL YEARS 2026 AND THEREAFTER , FOR 100% OF THE 22
COST OF: 23
1. DECOMMISSIONING , CONSISTENT WITH THE 24
DEPARTMENT ’S LAND AND MATERIALS ADMINISTRATION ’S GUIDELINES , A 25
WASTEWATER TREATMENT LAGOON THAT IS: 26
A. LOCATED, IN WHOLE OR IN PART , IN A FLOODPLAIN 27
DESIGNATED BY THE FEDERAL EMERGENCY MANAGEMENT AGENCY AS A SPECIAL 28
FLOOD HAZARD AREA ZONE A OR ZONE V; AND 29
B. NOT INTENDED FOR US E WITH A NEW WASTEWA TER 30
TREATMENT SYSTEM ; AND 31
4 SENATE BILL 726
2. THE PURCHASE AND INST ALLATION OF ALL PUMP 1
STATION AND RELATED SYSTEMS NECESSARY TO REDIRECT WASTEWATER OUT OF 2
THE FLOODPLAIN TO ANOTHER WASTEWATE R TREATMENT FACILITY IN 3
ACCORDANCE WITH THE DEPARTMENT ’S LAND AND MATERIALS 4
ADMINISTRATION ’S GUIDELINES. 5
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect 6
October 1, 2024. 7