EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G 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. *sb0932* SENATE BILL 932 M4, M3, M1 4lr3246 CF HB 1042 By: Senators Elfreth, Gallion, Gile, Hester, and Jackson Introduced and read first time: February 2, 2024 Assigned to: Education, Energy, and the Environment Committee Report: Favorable with amendments Senate action: Adopted Read second time: March 13, 2024 CHAPTER ______ AN ACT concerning 1 Maryland Agricultural BMP Best in Show Priority Environmental Stewardship 2 Program – Established 3 FOR the purpose of establishing the Maryland Agricultural BMP Best in Show Priority 4 Environmental Stewardship Program to provide and prioritize the use of certain 5 funding relating to agricultural best management practices and to increase the 6 cost–effectiveness and environmental, social, and health impacts of State–funded 7 best management practices in a certain manner; requiring the Department of 8 Agriculture to administer and manage certain competitive grants under the Program 9 in a certain manner; establishing the Maryland Agricultural BMP Best in Show 10 Priority Environmental Stewardship Account in the Department of Agriculture; 11 requiring an applicant for a grant under the Program to provide certain information 12 relating to proposed best management practices; and generally relating to 13 agricultural best management practices. 14 BY adding to 15 Article – Agriculture 16 Section 2–2301 and 2–2302 to be under the new subtitle “Subtitle 23. Maryland 17 Agricultural BMP Best in Show Priority Environmental Stewardship 18 Program” 19 Annotated Code of Maryland 20 (2016 Replacement Volume and 2023 Supplement) 21 BY repealing and reenacting, without amendments, 22 Article – Environment 23 2 SENATE BILL 932 Section 9–1605.4(b) and (f)(1) 1 Annotated Code of Maryland 2 (2014 Replacement Volume and 2023 Supplement) 3 BY repealing and reenacting, with amendments, 4 Article – Environment 5 Section 9–1605.4(f)(3) 6 Annotated Code of Maryland 7 (2014 Replacement Volume and 2023 Supplement) 8 BY repealing and reenacting, without amendments, 9 Article – Natural Resources 10 Section 8–2A–02(a) 11 Annotated Code of Maryland 12 (2023 Replacement Volume and 2023 Supplement) 13 BY repealing and reenacting, with amendments, 14 Article – Natural Resources 15 Section 8–2A–02(f)(1) 16 Annotated Code of Maryland 17 (2023 Replacement Volume and 2023 Supplement) 18 BY adding to 19 Article – Natural Resources 20 Section 8–2A–02(f)(5) 21 Annotated Code of Maryland 22 (2023 Replacement Volume and 2023 Supplement) 23 SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 24 That the Laws of Maryland read as follows: 25 Article – Agriculture 26 SUBTITLE 23. MARYLAND AGRICULTURAL BMP BEST IN SHOW PRIORITY 27 ENVIRONMENTAL STEWARDSHIP PROGRAM. 28 2–2301. 29 (A) IN THIS SUBTITLE THE FOLLOWING WORDS HAVE THE MEANINGS 30 INDICATED. 31 (B) “AGRICULTURAL LAND TRA NSITION” MEANS THE IDENTIFICA TION OF 32 AGRICULTURAL LANDS T HAT ARE FACING LOSS OR SIGNIFICANT REDUC TION OF 33 AGRICULTURAL PRODUCT ION CAPACITY DUE TO PREDICTED SAL TWATER 34 INTRUSION OR FREQUEN T FLOODING AND THE R ESULTING IMPLEMENTAT ION OF 35 SENATE BILL 932 3 BEST MANAGEMENT PRAC TICES TO CONVERT THO SE LANDS TO FUNCTION ING 1 WETLANDS, STREAMS, OR FOREST BUFFER HAB ITAT. 2 (C) “BEST MANAGEMENT PRACT ICE” MEANS A CONSERVATION OR 3 POLLUTION CONTROL PR ACTICE THAT: 4 (1) REDUCES SOIL OR NUTRI ENT LOSS DUE TO FARM ING PRACTICES; 5 OR 6 (2) MANAGES OR MITIGATES THE IMPACT OF POLLUT ANTS, ANIMAL 7 WASTES, OR AGRICULTURAL CHEM ICALS ON WATERS OF T HE STATE OR THE 8 ENVIRONMENT . 9 (D) “ECOLOGICAL TIPPING POINT ” MEANS A CONDITION IN WHICH AN 10 ECOLOGICALLY DEGRADE D OR IMPAIRED STREAM SEGMENT HAS IMPROVED 11 ENOUGH SUCH THAT MON ITORING DATA SHOWS N EWLY HEALTHY BENTHIC 12 POPULATIONS AND BIOT IC INTEGRITY OR WATE R QUALITY THAT SUPPO RTS ALL 13 DESIGNATED USES , INCLUDING SIGNIFICAN TLY ENHANCED LIVING RESOURCES. 14 (E) “PROGRAM” MEANS THE MARYLAND AGRICULTURAL BMP BEST IN 15 SHOW PRIORITY ENVIRONMENTAL STEWARDSHIP PROGRAM ESTABLISHED U NDER 16 § 2–2302 OF THIS SUBTITLE. 17 (F) “SHALLOW WATER HABITAT ” MEANS THE PORTION OF THE 18 CHESAPEAKE AND ATLANTIC COASTAL BAYS AND THEIR TRIBUT ARIES FOR WHICH 19 THE STATE HAS ADOPTED WAT ER QUALITY CRITERIA TO SUPPORT SUBMERGED 20 AQUATIC VEGETATION . 21 2–2302. 22 (A) THERE IS A MARYLAND AGRICULTURAL BMP BEST IN SHOW PRIORITY 23 ENVIRONMENTAL STEWARDSH IP PROGRAM. 24 (B) THE PURPOSE OF THE PROGRAM IS TO: 25 (1) PROVIDE GREATER FUNDI NG NEEDED TO PROVIDE PRODUCERS 26 WITH GREATER INCENTI VES TO PARTICIPATE I N THE COORDINATED FUNDING 27 ADOPTION OF MULTIPLE HIGH–PRIORITY AGRICULTURA L BEST MANAGEMENT 28 PRACTICES WITHIN INDIVIDUAL AG RICULTURAL OPERATION S OR ACROSS 29 MULTIPLE OPERATIONS IN CLOSE PROXIMITY ; 30 (2) PRIORITIZE THE USE OF AGRICULTURAL COST –SHARE FUNDING 31 AND OTHER STATE FUNDS TO SUPPOR T THE COORDINATED ES TABLISHMENT OF 32 BEST MANAGEMENT PRAC TICES IN LOCATION S MOST LIKELY TO HAV E A 33 4 SENATE BILL 932 SHORT–TERM BENEFICIAL IMPA CT ON WATER QUALITY , LIVING RESOURCES , OR 1 PUBLIC HEALTH ; AND 2 (3) INCREASE THE COST –EFFECTIVENESS AND EN VIRONMENTAL , 3 SOCIAL, AND HEALTH IMPACTS O F STATE–FUNDED BEST MANAGEME NT PRACTICES 4 THROUGH GREATER C OORDINATION , PLANNING, TARGETING, OR USE OF 5 HIGH–PRIORITY PRACTICES T HAT PROVIDE ENVIRONM ENTAL, SOCIAL, AND 6 RESILIENCY BENEFITS IN ADDITION TO NUTRI ENT AND SEDIMENT RED UCTION. 7 (C) TO CARRY OUT THE PURP OSE OF THE PROGRAM SUBJECT TO THE 8 DISCRETION OF THE SECRETARY, THE DEPARTMENT SHALL : 9 (1) ASSIGN A PROGRAM ADMINISTRATOR AND PROVIDE FOR 10 ADEQUATE ADMINISTRAT IVE SUPPORT; 11 (2) DEVELOP, ADVERTISE, AND RECEIVE COMPETIT IVE PROGRAM 12 GRANT APPLICATIONS A LIST OF HIGH–PRIORITY BEST MANAGE MENT PRACTICES , 13 INCLUDING: 14 (I) NATURAL FILTERS ; 15 (II) VEGETATED ENVIRONMENT AL BUFFERS; 16 (III) WILDLIFE AND POLLINAT OR HABITATS; 17 (IV) SHALLOW WATER AND AQU ATIC ORGANISM HABITA TS; 18 (V) AGRICULTURAL LAND TRA NSITION PRACTICES ; AND 19 (VI) AGRICULTURAL DITCH MANAGEMENT PRACTICES ; 20 (3) EVALUATE APPLICATIONS AND SELECT GRANTEES NOT LESS 21 THAN ANNUALLY DEVELOP CRITERIA FOR EVALUATING APPLICATI ONS INCLUDING 22 CONSIDERATIONS OF : 23 (I) PROXIMITY TO WATERS O F THE STATE; 24 (II) KNOWN ENVIRONMENTAL O R HYDROLOGIC INFORMATION , 25 INCLUDING GROUNDWATE R TRANSPORT RATES , POLLUTANT ATTENUATIO N, 26 POLLUTANT DELIVERY R ATIOS, AND SOIL TYPES; 27 (III) POTENTIALLY REDUCING THE POLLUTION OF THE WATERS 28 OF THE STATE SUFFICIENT ENOU GH TO REACH AN ECOLO GICAL TIPPING POINT ; 29 SENATE BILL 932 5 (IV) THE LOCATION WITHIN T HE BUFFER OF THE CHESAPEAKE 1 AND ATLANTIC COASTAL BAYS CRITICAL AREA OR OTHER AREA DE SIGNATED FOR 2 REGULATION OR SPECIA L PROTECTION UNDER A FEDERAL OR STATE LAW; AND 3 (V) OVERBURDENED AND UNDE RSERVED COMMUNITIES ; 4 (4) ADMINISTER AND MANAGE GRANTS UNDER THE PROGRAM, 5 INCLUDING BY MONITOR ING AND EVALUATING STATE–FUNDED BEST MANAGEME NT 6 PRACTICES DEVELOP A PAYMENT SCH EDULE; AND 7 (5) COORDINATE WITH THE DEPARTMENT OF NATURAL RESOURCES 8 AND THE DEPARTMENT OF THE ENVIRONMENT TO PROVID E TECHNICAL 9 ASSISTANCE AND GUIDA NCE TO APPLICANTS AN D GRANTEES, INCLUDING METHODS 10 AND PROCEDURES FOR M ONITORING, EVALUATING, AND VERIFYING PROJEC T 11 OUTCOMES DEVELOP A MAP , IN CONSULTATION WITH THE DEPARTMENT OF THE 12 ENVIRONMENT AND THE DEPARTMENT OF NATURAL RESOURCES, THAT 13 PRIORITIZES AREAS OF THE STATE FOR FUNDING UND ER THE PROGRAM IN 14 CONSIDERATION OF THE MOST EFFECTIVE BASIN S, IMPAIRMENT STATUS UN DER 15 SECTION 303(D) OF THE CLEAN WATER ACT, AND SPECIFICALLY DES IGNATED 16 WATERSHEDS . 17 (D) (1) THERE IS A MARYLAND AGRICULTURAL BMP BEST IN SHOW 18 PRIORITY ENVIRONMENTAL STEWARDSHIP ACCOUNT IN THE DEPARTMENT . 19 (2) THE MARYLAND AGRICULTURAL BMP BEST IN SHOW PRIORITY 20 ENVIRONMENTAL STEWARDSHIP ACCOUNT, FOR FISCAL YEARS 2026 THROUGH 21 2030, CONSISTS OF: 22 (I) NOT MORE THAN $2,000,000 PER YEAR OF THE REVE NUES 23 TRANSFERRED TO THE DEPARTMENT FROM THE BAY RESTORATION FUND UNDER 24 § 9–1605.2(H)(2)(II) OF THE ENVIRONMENT ARTICLE; 25 (II) NOT MORE THAN $3,000,000 PER YEAR OF THE REVE NUES 26 TRANSFERRED TO THE DEPARTMENT FROM THE CHESAPEAK E AND ATLANTIC 27 COASTAL BAYS 2010 TRUST FUND UNDER § 8–2A–02(F)(5) OF THE NATURAL 28 RESOURCES ARTICLE; 29 (III) ANY AGRICULTURAL COST –SHARE FUNDING PROVID ED BY 30 THE DEPARTMENT UNDER § 8–704 OF THIS ARTICLE FOR THE PURPOSE OF THE 31 PROGRAM; AND 32 (IV) ANY FUNDS NOT MORE THAN $3,000,000 TRANSFERRED TO 33 THE DEPARTMENT FROM THE CLEAN WATER COMMERCE ACCOUNT UNDER § 34 9–1605.4(F)(3)(III) OF THE ENVIRONMENT ARTICLE. 35 6 SENATE BILL 932 (3) AT THE END OF EACH FI SCAL YEAR, ANY UNUSED FUNDS 1 REMAINING IN THE ACCOUNT MAY BE RETURN ED TO THE SOURCE FROM WHIC H THE 2 FUNDS WERE RECEIVED . 3 (E) (1) AN APPLICANT FOR A GR ANT UNDER THIS SECTI ON SHALL 4 DEMONSTRATE THAT ANY AGRICULTURAL OPERATI ON ON WHICH BEST 5 MANAGEMENT PRACTICES ARE TO BE ESTABLISHE D ARE IN COMPLIANCE WITH ANY 6 NUTRIENT MANAGEMENT PLAN OR CONSERVATION PLAN REQUIRED UNDER THIS 7 ARTICLE. 8 (2) AN APPLICANT SHALL IN CLUDE A PLAN FOR THE 9 IMPLEMENTATION OF : 10 (I) NOT LESS THAN FIVE THREE DIFFERENT TYPES OF B EST 11 MANAGEMENT PRACTICES , WITH PRIORITY CONSID ERATION GIVEN TO THO SE 12 PRACTICES LI STED UNDER PARAGRAPH (4)(II) OF THIS SUBSECTION SUBSECTION 13 (C)(2) OF THIS SECTION, DESIGNED TO FUNCTION AS PART OF A COMMON PLAN TO 14 MAXIMIZE IMPACT AND EFFICIENCY; OR 15 (II) FOR AN OPERATION LOCA TED IN AN OVERBURDEN ED 16 COMMUNITY OR UNDERSE RVED COMMUNITY , AS DEFINED IN § 1–701 OF THE 17 ENVIRONMENT ARTICLE, A VEGETATIVE ENVIRON MENTAL BUFFER , HEDGEROW , 18 WINDBREAK , OR OTHER BEST MANAGE MENT PRACTICE OR COM BINATION OF 19 PRACTICES DESIGNED T O REDUCE EXPOSURE TO AIR EMISSIONS FROM R EGULATED 20 POINT SOURCES OF POL LUTION. 21 (3) AN APPLICANT SHALL : 22 (I) PROVIDE AN IMPLEMENTA TION AND MONITORING PLAN 23 SUFFICIENT TO EVALUA TE ACHIEVEMENT OF TH E ENVIRONMENTAL , SOCIAL, 24 RESILIENCY, NUTRIENT REDUCTION , AND SEDIMENT REDUCTI ON OUTCOMES OF 25 THE PROJECT; 26 (II) IDENTIFY THE WATER QU ALITY, LIVING RESOURCE , OR 27 OTHER ENVIRONMENTAL AND SOCIAL BENEFITS ANTICIPATED FROM THE BEST 28 MANAGEMENT PRACTICES , ALONG WITH THE ANTIC IPATED TIMELINE FOR 29 ACHIEVEMENT OF THE B ENEFITS; 30 (III) DESCRIBE ANY KNOWN AN D RELEVANT ENVIRONME NTAL 31 FEATURES THAT DEMONSTRATE HOW THE SPECIFIC LOCATIONS F OR BEST 32 MANAGEMENT PRACTICE ESTABLISHMENT ARE LI KELY TO PROVIDE A 33 PARTICULARLY ROBUST AND ACCELERATED RESP ONSE, INCLUDING 34 CONSIDERATIONS OF : 35 SENATE BILL 932 7 1. PROXIMITY TO WATERS O F THE STATE; 1 2. KNOWN ENVIRONMENTAL O R HY DROLOGIC 2 INFORMATION , INCLUDING GROUNDWATE R TRANSPORT RATES , POLLUTANT 3 ATTENUATION , POLLUTANT DELIVERY R ATIOS, AND SOIL TYPES; 4 3. ATTAINMENT STATUS OF WATER QUALITY 5 STANDARDS; 6 4. LOCATION WITHIN THE B UFFER OF A CHESAPEAKE 7 OR ATLANTIC COASTAL BAYS CRITICAL AREA OR OTHER AREA DE SIGNATED FOR 8 REGULATION OR SPECIA L PROTECTION UNDER A STATE OR FEDERAL LAW ; AND 9 5. HUMAN POLLUTANT EXPOS URE PATHWAYS , 10 INCLUDING PROXIMITY TO NEARBY RESIDENTIA L AREAS AND ANTICIPA TED 11 IMPROVEMENTS TO DRIN KING WATER, AIR QUALITY, AND REDUCTION OF EXP OSURE 12 TO RUNOFF; AND 13 (IV) ALLOW THE DEPARTMENT TO INSPECT AND EVALUATE 14 BEST MANAGEMENT PRAC TICE EFFECTIVENESS , INCLUDING THROUGH 15 MONITORING AND SAMPL ING ACTIVITIES, ON AN AGREED –ON SCHEDULE . 16 (4) (I) WHEN EVALUATING APPLI CATIONS FOR THE USE OF FUNDS 17 UNDER THIS SECTION , THE DEPARTMENT SHALL PRIO RITIZE BEST MANAGEME NT 18 PRACTICES THAT THE A PPLICANT DEMONSTRATE S ARE: 19 1. IN CLOSE PROXIMITY AN D LIKELY TO PROVIDE 20 ENHANCED AND ACCELER ATED BENEFITS TO A P ARTICULAR AREA OF SHALLOW 21 WATER HABITAT ; 22 2. POTENTIALLY CAPABLE O F REDUCING POLLUTION TO 23 WATERS OF THE STATE SUFFICIENT TO R EACH AN ECOLOGICAL T IPPING POINT; OR 24 3. LIKELY TO REDUCE HEAL TH BURDENS FOR NEARB Y 25 RESIDENTS THROUGH TH E REDUCTION OF EXPOS URE TO AIR POLLUT ANTS OR 26 CONTAMINATED DRINKIN G WATER. 27 (II) PRIORITY BEST MANAGEM ENT PRACTICES INCLUD E: 28 1. VEGETATIVE ENVIRONMEN TAL BUFFERS , 29 HEDGEROWS , WINDBREAKS , OR OTHER PRACTICES D ESIGNED TO REDUCE TH E 30 TRANSPORT OF AIR EMI SSIONS AND DEPOSITIO N; 31 8 SENATE BILL 932 2. STREAM EXCLUSION FENCING ; 1 3. RIPARIAN TREE PLANTIN G AND OTHER HIGH –IMPACT 2 FIXED NATURAL FILTER PRACTICES AS DEFINED IN § 8–701 OF THIS ARTICLE; 3 4. WETLAND RESTORATION O R ESTABLISHMENT ; 4 5. LAND RETIREMENT AND C ONSERVATION ; 5 6. SMALL–SCALE URBA N AGRICULTURAL PRACT ICES; 6 7. AGRICULTURAL LAND TRA NSITION PRACTICES ; 7 8. MUSSEL RESTORATION ; 8 9. BIORETENTION ; AND 9 10. AGRICULTURAL DITCH MA NAGEMENT PRACTICES , 10 INCLUDING DENITRIFYI NG BIOREACTORS . 11 (F) (1) THE DEPARTMENT SHALL PUBL ISH ON ITS WEBSITE: 12 (I) A BEST MANAGEMENT PRAC TICE PAYMENT SCHEDUL E; 13 (II) ANY CRITERIA USED FOR THE EVALUATION OF 14 COMPETITIVE APPLICAT IONS AND SELECTION O F GRANTEES; 15 (III) THE PROCEDURES FOR ME ASURING THE EFFECTIV ENESS 16 OF BEST MANAGEMENT P RACTICES THAT ARE TO BE INCLU DED IN ANY GRANT 17 AGREEMENT ; AND 18 (IV) A MAP PROVIDED BY OR P RODUCED IN CONSULTAT ION 19 WITH THE DEPARTMENT OF NATURAL RESOURCES THAT DEPICT S AREAS OF THE 20 STATE TO BE PRIORITIZ ED FOR FUNDING UNDER THE PROGRAM WITH SPECIAL 21 CONSIDERATION G IVEN TO: 22 1. OVERBURDENED AND UNDE RSERVED COMMUNITIES ; 23 OR 24 2. LOCATIONS IDENTIFIED UNDER SUBSECTION 25 (E)(3)(III) OF THIS SECTION. 26 (2) THE FIVE OR MORE PRAC TICES PROPOSED BY A GRANT 27 APPLICANT UNDER SUBS ECTION (E)(4)(II) OF THIS SECTION MUST MEET THE SAME 28 SENATE BILL 932 9 COMPETITIVE FUNDING CRITERIA AS THE CHESAPEAKE AND ATLANTIC COASTAL 1 BAYS 2010 TRUST FUND UNDER § 8–2A–02 OF THE NATURAL RESOURCES ARTICLE. 2 Article – Environment 3 9–1605.4. 4 (b) There is a Clean Water Commerce Account. 5 (f) (1) Subject to the provisions of this subsection, the Account may be used 6 only for the purchase of cost–effective environmental outcomes that: 7 (i) Support the State’s efforts to achieve the Chesapeake Bay 8 TMDL; and 9 (ii) Have an expected life of at least 10 years. 10 (3) Any unencumbered funds not used to purchase environmental 11 outcomes as specified under paragraph (2) of this subsection are: 12 (i) No longer subject to the allocation requirements specified under 13 paragraph (2) of this subsection; [and] 14 (ii) Available for use consistent with this section in subsequent fiscal 15 years; AND 16 (III) SUBJECT TO TRANSFER T O THE DEPARTMENT OF 17 AGRICULTURE TO BE USE D IN ACCORDANCE WITH § 2–2302 OF THE AGRICULTURE 18 ARTICLE. 19 Article – Natural Resources 20 8–2A–02. 21 (a) There is a Chesapeake and Atlantic Coastal Bays 2010 Trust Fund. 22 (f) (1) The Fund may be used only for the implementation of [nonpoint source 23 pollution control projects to]: 24 (i) NONPOINT SOURCE POLLU TION CONTROL PROJECT S THAT: 25 1. Support State and local watershed implementation plans 26 by targeting limited financial resources on the most effective nonpoint source pollution 27 control projects; and 28 10 SENATE BILL 932 2. IMPROVE THE HEALTH OF THE ATLANTIC COASTAL 1 BAYS AND THEIR TRIBUT ARIES; OR 2 (ii) [Improve the health of the Atlantic Coastal Bays and their 3 tributaries] BEST MANAGEMENT PRACT ICES IN ACCORDANCE W ITH § 2–2302 OF THE 4 AGRICULTURE ARTICLE. 5 (5) UP TO $3,000,000 OF THE FUND MAY BE TRANSFERR ED TO THE 6 DEPARTMENT OF AGRICULTURE ANNUALLY TO BE USED IN ACCORD ANCE WITH § 7 2–2302 OF THE AGRICULTURE ARTICLE. 8 SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect 9 October 1, 2024. 10 Approved: ________________________________________________________________________________ Governor. ________________________________________________________________________________ President of the Senate. ________________________________________________________________________________ Speaker of the House of Delegates.