EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW. [Brackets] indicate matter deleted from existing law. *sb0932* SENATE BILL 932 M4, M3, M1 4lr3246 CF HB 1042 By: Senators Elfreth, Gile, Hester, and Jackson Introduced and read first time: February 2, 2024 Assigned to: Education, Energy, and the Environment A BILL ENTITLED AN ACT concerning 1 Maryland Agricultural BMP Best in Show Program – Established 2 FOR the purpose of establishing the Maryland Agricultural BMP Best in Show Program to 3 provide and prioritize the use of certain funding relating to agricultural best 4 management practices and to increase the cost–effectiveness and environmental, 5 social, and health impacts of State–funded best management practices in a certain 6 manner; requiring the Department of Agriculture to administer and manage certain 7 competitive grants under the Program in a certain manner; establishing the 8 Maryland Agricultural BMP Best in Show Account in the Department; requiring an 9 applicant for a grant under the Program to provide certain information relating to 10 proposed best management practices; and generally relating to agricultural best 11 management practices. 12 BY adding to 13 Article – Agriculture 14 Section 2–2301 and 2–2302 to be under the new subtitle “Subtitle 23. Maryland 15 Agricultural BMP Best in Show Program” 16 Annotated Code of Maryland 17 (2016 Replacement Volume and 2023 Supplement) 18 BY repealing and reenacting, without amendments, 19 Article – Environment 20 Section 9–1605.4(b) and (f)(1) 21 Annotated Code of Maryland 22 (2014 Replacement Volume and 2023 Supplement) 23 BY repealing and reenacting, with amendments, 24 Article – Environment 25 Section 9–1605.4(f)(3) 26 Annotated Code of Maryland 27 (2014 Replacement Volume and 2023 Supplement) 28 2 SENATE BILL 932 BY repealing and reenacting, without amendments, 1 Article – Natural Resources 2 Section 8–2A–02(a) 3 Annotated Code of Maryland 4 (2023 Replacement Volume and 2023 Supplement) 5 BY repealing and reenacting, with amendments, 6 Article – Natural Resources 7 Section 8–2A–02(f)(1) 8 Annotated Code of Maryland 9 (2023 Replacement Volume and 2023 Supplement) 10 BY adding to 11 Article – Natural Resources 12 Section 8–2A–02(f)(5) 13 Annotated Code of Maryland 14 (2023 Replacement Volume and 2023 Supplement) 15 SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 16 That the Laws of Maryland read as follows: 17 Article – Agriculture 18 SUBTITLE 23. MARYLAND AGRICULTURAL BMP BEST IN SHOW PROGRAM. 19 2–2301. 20 (A) IN THIS SUBTITLE THE FOLLOWING WORDS HAVE THE MEANINGS 21 INDICATED. 22 (B) “AGRICULTURAL LAND TRANSITION” MEANS THE IDENTIFICA TION OF 23 AGRICULTURAL LANDS T HAT ARE FACING LOSS OR SIGNIFICANT REDUC TION OF 24 AGRICULTURAL PRODUCT ION CAPACITY DUE TO PREDICTED SALTWATER 25 INTRUSION OR FREQUEN T FLOODING AND THE R ESULTING IMPLEMENTAT ION OF 26 BEST MANAGEMENT PRAC TICES TO CONVERT THO SE LANDS TO FUNCTION ING 27 WETLANDS, STREAMS, OR FOREST BUFFER HAB ITAT. 28 (C) “BEST MANAGEMENT PRACT ICE” MEANS A CONSERVATION OR 29 POLLUTION CONTROL PR ACTICE THAT: 30 (1) REDUCES SOIL OR NUTRI ENT LOSS DUE TO FARM ING PRACTICES; 31 OR 32 SENATE BILL 932 3 (2) MANAGES OR MITIGATES THE IMPACT OF POLLUT ANTS, ANIMAL 1 WASTES, OR AGRICULTURAL CHEM ICALS ON WATERS OF T HE STATE OR THE 2 ENVIRONMENT . 3 (D) “ECOLOGICAL TIPPING PO INT” MEANS A CONDITION IN WHICH AN 4 ECOLOGICALLY DEGRADE D OR IMPAIRED STREAM SEGMENT HAS IMPROVED 5 ENOUGH SUCH THAT MONI TORING DATA SHOWS NE WLY HEALTHY BENTHIC 6 POPULATIONS AND BIOT IC INTEGRITY OR WATE R QUALITY THAT SUPPO RTS ALL 7 DESIGNATED USES , INCLUDING SIGNIFICAN TLY ENHANCED LIVING RESOURCES. 8 (E) “PROGRAM” MEANS THE MARYLAND AGRICULTURAL BMP BEST IN 9 SHOW PROGRAM ESTABLISHED U NDER § 2–2302 OF THIS SUBTITLE. 10 (F) “SHALLOW WATER HABITAT ” MEANS THE PORTION OF THE 11 CHESAPEAKE AND ATLANTIC COASTAL BAYS AND THEIR TRIBUT ARIES FOR WHICH 12 THE STATE HAS ADOPTED WAT ER QUALITY CRITERIA TO SUPPORT SUBMERGED 13 AQUATIC VEGETATION. 14 2–2302. 15 (A) THERE IS A MARYLAND AGRICULTURAL BMP BEST IN SHOW 16 PROGRAM. 17 (B) THE PURPOSE OF THE PROGRAM IS TO: 18 (1) PROVIDE GREATER FUNDI NG NEEDED TO PROVIDE PRODUCERS 19 WITH GREATER INCENTI VES TO PARTICIPATE I N THE COORDINATED FU NDING OF 20 MULTIPLE BEST MANAGE MENT PRACTICES WITHI N INDIVIDUAL AGRICUL TURAL 21 OPERATIONS OR ACROSS MULTIPLE OPERATIONS IN CLOSE PROXIMITY ; 22 (2) PRIORITIZE THE USE OF AGRICULTURAL COST –SHARE FUNDING 23 AND OTHER STATE FUNDS TO SUPPOR T THE COORDINATED ES TABLISHMENT OF 24 BEST MANAGEMENT PRACTI CES IN LOCATIONS MOS T LIKELY TO HAVE A 25 SHORT–TERM BENEFICIAL IMPA CT ON WATER QUALITY , LIVING RESOURCES , OR 26 PUBLIC HEALTH ; AND 27 (3) INCREASE THE COST –EFFECTIVENESS AND EN VIRONMENTAL , 28 SOCIAL, AND HEALTH IMPACTS O F STATE–FUNDED BEST MAN AGEMENT PRACTICES 29 THROUGH GREATER COOR DINATION, PLANNING, TARGETING, OR USE OF 30 HIGH–PRIORITY PRACTICES T HAT PROVIDE ENVIRONM ENTAL, SOCIAL, AND 31 RESILIENCY BENEFITS IN ADDITION TO NUTRI ENT AND SEDIMENT RED UCTION. 32 4 SENATE BILL 932 (C) TO CARRY OUT THE PURP OSE OF THE PROGRAM, THE DEPARTMENT 1 SHALL: 2 (1) ASSIGN A PROGRAM ADMINISTRATOR AND PRO VIDE FOR 3 ADEQUATE ADMINISTRAT IVE SUPPORT; 4 (2) DEVELOP, ADVERTISE, AND RECEIVE COMPETIT IVE PROGRAM 5 GRANT APPLICATIONS ; 6 (3) EVALUATE APPLICATIONS AND SELECT GRANTEES NOT LESS 7 THAN ANNUALLY ; 8 (4) ADMINISTER AND MANAGE GRANTS UNDER THE PROGRAM, 9 INCLUDING BY MONITOR ING AND EVALUATING STATE–FUNDED BEST MANAGEME NT 10 PRACTICES; AND 11 (5) COORDINATE WITH THE DEPARTMENT OF NATURAL RESOURCES 12 AND THE DEPARTMENT OF THE ENVIRONMENT TO PR OVIDE TECHNICAL 13 ASSISTANCE AND GUIDA NCE TO APPLICANTS AN D GRANTEES, INCLUDING METHODS 14 AND PROCEDURES FOR M ONITORING, EVALUATING, AND VERIFYING PROJEC T 15 OUTCOMES. 16 (D) (1) THERE IS A MARYLAND AGRICULTURAL BMP BEST IN SHOW 17 ACCOUNT IN THE DEPARTMENT . 18 (2) THE MARYLAND AGRICULTURAL BMP BEST IN SHOW ACCOUNT 19 CONSISTS OF: 20 (I) NOT MORE THAN $2,000,000 PER YEAR OF THE REVE NUES 21 TRANSFERRED TO THE DEPARTMENT FROM THE BAY RESTORATION FUND UNDER 22 § 9–1605.2(H)(2)(II) OF THE ENVIRONMENT ARTICLE; 23 (II) NOT MORE THAN $3,000,000 PER YEAR OF THE REVE NUES 24 TRANSFERRED TO THE DEPARTMENT FROM THE CHESAPEAKE AND ATLANTIC 25 COASTAL BAYS 2010 TRUST FUND UNDER § 8–2A–02(F)(5) OF THE NATURAL 26 RESOURCES ARTICLE; 27 (III) ANY AGRICULTURAL COST –SHARE FUNDING PROVID ED BY 28 THE DEPARTMENT UNDER § 8–704 OF THIS ARTICLE FOR THE PURPO SE OF THE 29 PROGRAM; AND 30 SENATE BILL 932 5 (IV) ANY FUNDS TRANSFERRED TO THE DEPARTMENT FROM 1 THE CLEAN WATER COMMERCE ACCOUNT UNDER § 9–1605.4(F)(3)(III) OF THE 2 ENVIRONMENT ARTICLE. 3 (3) AT THE END OF EACH FI SCAL YEAR, ANY UNUSED FUNDS 4 REMAINING IN THE ACCOUNT MAY BE RETURNED TO THE S OURCE FROM WHICH THE 5 FUNDS WERE RECEIVED . 6 (E) (1) AN APPLICANT FOR A GRANT UNDER TH IS SECTION SHALL 7 DEMONSTRATE THAT ANY AGRICULTURAL OPERATI ON ON WHICH BEST 8 MANAGEMENT PRACTICES ARE TO BE ESTABLISHE D ARE IN COMPLIANCE WITH ANY 9 NUTRIENT MANAGEMENT PLAN OR CONSERVATION PLAN REQUIRED UNDER THIS 10 ARTICLE. 11 (2) AN APPLIC ANT SHALL INCLUDE A PLAN FOR THE 12 IMPLEMENTATION OF : 13 (I) NOT LESS THAN FIVE DIFFERENT TYPES OF B EST 14 MANAGEMENT PRACTICES , WITH PRIORITY CONSID ERATION GIVEN TO THO SE 15 PRACTICES LISTED UNDER PARAGRA PH (4)(II) OF THIS SUBSECTION, DESIGNED TO 16 FUNCTION AS PART O F A COMMON PLAN TO M AXIMIZE IMPACT AND E FFICIENCY; OR 17 (II) FOR AN OPERATION LOCA TED IN AN OVERBURDEN ED 18 COMMUNITY OR UNDERSERVED COMMU NITY, AS DEFINED IN § 1–701 OF THE 19 ENVIRONMENT ARTICLE, A VEGETATIVE ENVIRON MENTAL BUFFER , HEDGEROW , 20 WINDBREAK , OR OTHER BEST MANAGEMEN T PRACTICE OR COMBIN ATION OF 21 PRACTICES DESIGNED T O REDUCE EXPOSURE TO AIR EMISSIONS FROM R EGULATED 22 POINT SOURCES OF POL LUTION. 23 (3) AN APPLICANT SHALL : 24 (I) PROVIDE AN IMPLEMENTA TION AND MONITORING PLAN 25 SUFFICIENT TO EVALUA TE ACHIEVEMENT OF THE ENVIRO NMENTAL, SOCIAL, 26 RESILIENCY, NUTRIENT REDUCTION , AND SEDIMENT REDUCTI ON OUTCOMES OF 27 THE PROJECT; 28 (II) IDENTIFY THE WATER QU ALITY, LIVING RESOURCE , OR 29 OTHER ENVIRONMENTAL AND SOCIAL BENEFITS ANTICIPATED FROM THE BEST 30 MANAGEMENT PRACT ICES, ALONG WITH THE ANTIC IPATED TIMELINE FOR 31 ACHIEVEMENT OF THE BENEFITS; 32 (III) DESCRIBE ANY KNOWN AN D RELEVANT ENVIRONME NTAL 33 FEATURES THAT DEMONS TRATE HOW THE SPECIF IC LOCATIONS FOR BES T 34 6 SENATE BILL 932 MANAGEMENT PRACTICE ESTABLISHMENT ARE LI KELY TO PROVIDE A 1 PARTICULARLY ROBUST AND A CCELERATED RESPONSE , INCLUDING 2 CONSIDERATIONS OF: 3 1. PROXIMITY TO WATERS O F THE STATE; 4 2. KNOWN ENVIRONMENTAL O R HYDROLOGIC 5 INFORMATION , INCLUDING GROUNDWATE R TRANSPORT RATES , POLLUTANT 6 ATTENUATION , POLLUTANT DELIVERY R ATIOS, AND SOIL TYPES; 7 3. ATTAINMENT STATUS OF WATER QUALITY 8 STANDARDS; 9 4. LOCATION WITHIN THE B UFFER OF A CHESAPEAKE 10 OR ATLANTIC COASTAL BAYS CRITICAL AREA OR OTHER AREA DE SIGNATED FOR 11 REGULATION OR SPECIA L PROTECTION UNDER A STATE OR FEDERAL LAW ; AND 12 5. HUMAN POLLUTANT EXPOS URE PATHWAYS , 13 INCLUDING PROXIMITY TO NEARBY RESIDENTIA L AREAS AND ANTICIPA TED 14 IMPROVEMENTS TO DRIN KING WATER, AIR QUALITY, AND REDUCTION OF EXP OSURE 15 TO RUNOFF; AND 16 (IV) ALLOW THE DEPARTMENT TO INSPECT AND EVALUATE 17 BEST MANAGEMENT PRACTICE EFFECTIVENESS , INCLUDING THROUGH 18 MONITORING AND SAMPL ING ACTIVITIES, ON AN AGREED –ON SCHEDULE . 19 (4) (I) WHEN EVALUATING APPLI CATIONS FOR THE USE OF FUNDS 20 UNDER THIS SECTION , THE DEPARTMENT SHALL PRIO RITIZE BEST MANAGEME NT 21 PRACTICES THAT THE APPLICANT D EMONSTRATES ARE : 22 1. IN CLOSE PROXIMITY AN D LIKELY TO PROVIDE 23 ENHANCED AND ACCELER ATED BENEFITS TO A P ARTICULAR AREA OF SH ALLOW 24 WATER HABITAT ; 25 2. POTENTIALLY CAPABLE O F REDUCING POLLUTION TO 26 WATERS OF THE STATE SUFFICIENT TO R EACH AN ECOLOGICAL TI PPING POINT; OR 27 3. LIKELY TO REDUCE HEAL TH BURDENS FOR NEARB Y 28 RESIDENTS THROUGH TH E REDUCTION OF EXPOS URE TO AIR POLLUTANT S OR 29 CONTAMINATED DRINKIN G WATER. 30 (II) PRIORITY BEST MANAGEM ENT PRACTICES INCLUD E: 31 SENATE BILL 932 7 1. VEGETATIVE EN VIRONMENTAL BUFFERS , 1 HEDGEROWS , WINDBREAKS , OR OTHER PRACTICES D ESIGNED TO REDUCE TH E 2 TRANSPORT OF AIR EMI SSIONS AND DEPOSITIO N; 3 2. STREAM EXCLUSION FENC ING; 4 3. RIPARIAN TREE PLANTIN G AND OTHER HIGH –IMPACT 5 FIXED NATURAL FILTER PRACTICES AS DEFINED IN § 8–701 OF THIS ARTICLE; 6 4. WETLAND RESTORATION O R ESTABLISHMENT ; 7 5. LAND RETIREMENT AND C ONSERVATION ; 8 6. SMALL–SCALE URBAN AGRICULT URAL PRACTICES ; 9 7. AGRICULTURAL LAND TRANSITION PRACTICES; 10 8. MUSSEL RESTORATION ; 11 9. BIORETENTION ; AND 12 10. AGRICULTURAL DITCH MA NAGEMENT PRACTICES , 13 INCLUDING DENITRIFYI NG BIOREACTORS . 14 (F) (1) THE DEPARTMENT SHALL PUBL ISH ON ITS WEBSITE: 15 (I) A BEST MANAGEMENT PRAC TICE PAYMENT SCHEDUL E; 16 (II) ANY CRITERIA USED FOR THE EVALUATION OF 17 COMPETITIVE APPLICAT IONS AND SELECTION O F GRANTEES; 18 (III) THE PROCEDURES FOR ME ASURING THE EFFECTIV ENESS 19 OF BEST MANAGEMENT P RACTICES THAT ARE TO BE INCLUD ED IN ANY GRANT 20 AGREEMENT ; AND 21 (IV) A MAP PROVIDED BY OR P RODUCED IN CONSULTAT ION 22 WITH THE DEPARTMENT OF NATURAL RESOURCES THAT DEPICT S AREAS OF THE 23 STATE TO BE PRIORITIZ ED FOR FUNDING UNDER THE PROGRAM WITH SPECIAL 24 CONSIDERATION GIVEN TO: 25 1. OVERBURDENED AND UNDERSE RVED COMMUNITIES ; 26 OR 27 8 SENATE BILL 932 2. LOCATIONS IDENTIFIED UNDER SUBSECTION 1 (E)(3)(III) OF THIS SECTION. 2 (2) THE FIVE OR MORE PRACTICES PR OPOSED BY A GRANT 3 APPLICANT UNDER SUBSECTION (E)(4)(II) OF THIS SECTION MUST MEET THE SAME 4 COMPETITIVE FUNDING CRITERIA AS THE CHESAPEAKE AND ATLANTIC COASTAL 5 BAYS 2010 TRUST FUND UNDER § 8–2A–02 OF THE NATURAL RESOURCES ARTICLE. 6 Article – Environment 7 9–1605.4. 8 (b) There is a Clean Water Commerce Account. 9 (f) (1) Subject to the provisions of this subsection, the Account may be used 10 only for the purchase of cost–effective environmental outcomes that: 11 (i) Support the State’s efforts to achieve the Chesapeake Bay 12 TMDL; and 13 (ii) Have an expected life of at least 10 years. 14 (3) Any unencumbered funds not used to purchase environmental 15 outcomes as specified under paragraph (2) of this subsection are: 16 (i) No longer subject to the allocation requirements specified under 17 paragraph (2) of this subsection; [and] 18 (ii) Available for use consistent with this section in subsequent fiscal 19 years; AND 20 (III) SUBJECT TO TRANSFER T O THE DEPARTMENT OF 21 AGRICULTURE TO BE USE D IN ACCORDANCE WITH § 2–2302 OF THE AGRICULTUR E 22 ARTICLE. 23 Article – Natural Resources 24 8–2A–02. 25 (a) There is a Chesapeake and Atlantic Coastal Bays 2010 Trust Fund. 26 (f) (1) The Fund may be used only for the implementation of [nonpoint source 27 pollution control projects to]: 28 (i) NONPOINT SOURCE POLLU TION CONTROL PROJECT S THAT: 29 SENATE BILL 932 9 1. Support State and local watershed implementation plans 1 by targeting limited financial resources on the most effective nonpoint source pollution 2 control projects; and 3 2. IMPROVE THE HEALTH OF THE ATLANTIC COASTAL 4 BAYS AND THEIR TRIBUT ARIES; OR 5 (ii) [Improve the health of the Atlantic Coastal Bays and their 6 tributaries] BEST MANAGEMENT PRACT ICES IN ACCORDANCE W ITH § 2–2302 OF THE 7 AGRICULTURE ARTICLE. 8 (5) UP TO $3,000,000 OF THE FUND MAY BE TRANSFERR ED TO THE 9 DEPARTMENT OF AGRICULTURE ANNUALLY TO BE USED IN ACCORDANCE WITH § 10 2–2302 OF THE AGRICULTUR E ARTICLE. 11 SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect 12 October 1, 2024. 13