EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTING LAW. [Brackets] indicate matter deleted from existing law. *sb0096* SENATE BILL 96 M3 4lr0814 SB 743/23 – EEE (PRE–FILED) CF HB 24 By: Senator Jackson Requested: October 3, 2023 Introduced and read first time: January 10, 2024 Assigned to: Education, Energy, and the Environment A BILL ENTITLED AN ACT concerning 1 Environment – Impact of Environmental Permits and State Agency Actions 2 FOR the purpose of requiring the Department of the Environment to conduct a certain 3 evaluation regarding the impact of issuing an approval for certain environmental 4 permits; requiring the Department to provide opportunities for certain 5 communication with certain residents in a certain manner; requiring the 6 Department to deposit certain money in certain funds under certain circumstances; 7 altering certain reporting requirements for certain State agencies; and generally 8 relating to the impact of actions on climate and environmental justice and equity. 9 BY repealing and reenacting, without amendments, 10 Article – Environment 11 Section 1–601(a), 1–701(a)(1), (5), (7), and (8), 1–702(b), 2–107(a), and 7–218 12 Annotated Code of Maryland 13 (2013 Replacement Volume and 2023 Supplement) 14 BY repealing and reenacting, with amendments, 15 Article – Environment 16 Section 1–702(a), 2–107(b), 2–1305, and 7–219 17 Annotated Code of Maryland 18 (2013 Replacement Volume and 2023 Supplement) 19 BY adding to 20 Article – Environment 21 Section 1–7A–01 through 1–7A–05 to be under the new subtitle “Subtitle 7A. Impact 22 of Environmental Permits on Climate and Environmental Equity” 23 Annotated Code of Maryland 24 (2013 Replacement Volume and 2023 Supplement) 25 BY repealing and reenacting, without amendments, 26 2 SENATE BILL 96 Article – Environment 1 Section 9–320(a) 2 Annotated Code of Maryland 3 (2014 Replacement Volume and 2023 Supplement) 4 BY repealing and reenacting, with amendments, 5 Article – Environment 6 Section 9–320(b) 7 Annotated Code of Maryland 8 (2014 Replacement Volume and 2023 Supplement) 9 SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 10 That the Laws of Maryland read as follows: 11 Article – Environment 12 1–601. 13 (a) Permits issued by the Department under the following sections shall be issued 14 in accordance with this subtitle: 15 (1) Air quality control permits to construct subject to § 2–404 of this article; 16 (2) Permits to install, materially alter, or materially extend landfill 17 systems, incinerators for public use, or rubble landfills subject to § 9–209 of this article; 18 (3) Permits to discharge pollutants to waters of the State issued pursuant 19 to § 9–323 of this article; 20 (4) Permits to install, materially alter, or materially extend a structure 21 used for storage or distribution of any type of sewage sludge issued, renewed, or amended 22 pursuant to § 9–234.1 or § 9–238 of this article; 23 (5) Permits to own, operate, establish, or maintain a controlled hazardous 24 substance facility issued pursuant to § 7–232 of this article; 25 (6) Permits to own, operate, or maintain a hazardous material facility 26 issued pursuant to § 7–103 of this article; 27 (7) Permits to own, operate, establish, or maintain a low–level nuclear 28 waste facility issued pursuant to § 7–233 of this article; and 29 (8) Potable reuse permits issued in accordance with § 9–303.2 of this 30 article. 31 1–701. 32 SENATE BILL 96 3 (a) (1) In this section the following words have the meanings indicated. 1 (5) “Environmental justice” means equal protection from environmental 2 and public health hazards for all people regardless of race, income, culture, and social 3 status. 4 (7) “Overburdened community” means any census tract for which three or 5 more of the following environmental health indicators are above the 75th percentile 6 statewide: 7 (i) Particulate matter (PM) 2.5; 8 (ii) Ozone; 9 (iii) National Air Toxics Assessment (NATA) diesel PM; 10 (iv) NATA cancer risk; 11 (v) NATA respiratory hazard index; 12 (vi) Traffic proximity; 13 (vii) Lead paint indicator; 14 (viii) National Priorities List Superfund site proximity; 15 (ix) Risk Management Plan facility proximity; 16 (x) Hazardous waste proximity; 17 (xi) Wastewater discharge indicator; 18 (xii) Proximity to a Concentrated Animal Feeding Operation (CAFO); 19 (xiii) Percent of the population lacking broadband coverage; 20 (xiv) Asthma emergency room discharges; 21 (xv) Myocardial infarction discharges; 22 (xvi) Low–birth–weight infants; 23 (xvii) Proximity to emitting power plants; 24 (xviii) Proximity to a Toxic Release Inventory (TRI) facility; 25 (xix) Proximity to a brownfields site; 26 4 SENATE BILL 96 (xx) Proximity to mining operations; and 1 (xxi) Proximity to a hazardous waste landfill. 2 (8) “Underserved community” means any census tract in which, according 3 to the most recent U.S. Census Bureau Survey: 4 (i) At least 25% of the residents qualify as low–income; 5 (ii) At least 50% of the residents identify as nonwhite; or 6 (iii) At least 15% of the residents have limited English proficiency. 7 1–702. 8 (a) On or before December 31, [2023] 2024, the Department, in consultation with 9 the Commission on Environmental Justice and Sustainable Communities, shall: 10 (1) Subject to subsection (b) of this section, adopt a methodology for 11 identifying communities disproportionately affected by climate impacts; 12 (2) Develop specific strategies to address geographical impact concerns, 13 reduce emissions of greenhouse gases and co–pollutants, and build climate equity and 14 resilience within communities disproportionately affected by climate impacts; 15 (3) Set appropriate goals for the percentage of State funding for greenhouse 16 gas emission reduction measures that should be used for the benefit of disproportionately 17 affected communities; and 18 (4) Report to the Maryland Commission on Climate Change and, in 19 accordance with § 2–1257 of the State Government Article, the General Assembly on the 20 policies and programs developed under this subsection. 21 (b) In evaluating methodologies under subsection (a)(1) of this section, the 22 Department shall, at a minimum, include: 23 (1) Underserved communities; 24 (2) Overburdened communities; and 25 (3) Areas that are vulnerable to climate impacts, such as flooding, storm 26 surges, and urban heat island effects, due to low levels of tree coverage, high levels of 27 impervious surfaces, or other factors. 28 SUBTITLE 7A. IMPACT OF ENVIRONMENTAL PERMITS ON CLIMATE AND 29 ENVIRONMENTAL EQUITY. 30 SENATE BILL 96 5 1–7A–01. 1 (A) IN THIS SUBTITLE THE FOLLOWING WORDS HAVE THE MEANINGS 2 INDICATED. 3 (B) “APPLICANT” MEANS A PERSON APPLY ING FOR A PERMIT LIS TED 4 UNDER § 1–601(A) OF THIS TITLE. 5 (C) “ENVIRONMENTAL JUSTICE ” HAS THE MEANING STAT ED IN § 1–701 OF 6 THIS TITLE. 7 (D) “OVERBURDENED COMMUNIT Y” HAS THE MEANING STAT ED IN § 1–701 8 OF THIS TITLE. 9 (E) “PERMIT” MEANS A PERMIT LISTE D UNDER § 1–601(A) OF THIS TITLE. 10 (F) “UNDERSERVED COMMUNITY ” HAS THE MEANING STAT ED IN § 1–701 OF 11 THIS TITLE. 12 1–7A–02. 13 (A) (1) IF, AFTER REVIEWING AN EJ SCORE IN ACCORDANCE WITH § 14 1–601.1(B) OF THIS TITLE, THE DEPARTMENT DETERMINES THAT ISSUING AN 15 APPROVAL FOR A NEW PERMIT MAY IMPACT AN UNDERSERVED COMMUNITY OR 16 AN OVERBURDENED COMMUNITY , THE DEPARTMENT SHALL CONDUCT A CLIMATE 17 AND ENVIRONMENTAL EQUITY EVALUATION OF THE PERMIT. 18 (2) THE CLIMATE AND ENVIR ONMENTAL EQUITY EVAL UATION 19 REQUIRED UNDER THIS SECTION SHALL INCLUD E AN ANALYSIS OF: 20 (I) EXISTING ENVIRONMENTA L AND CLIMATE DATA R EGARDING 21 THE AFFECTED COMMUNITY, INCLUDING MONITORING , MODELING, OR ANY OTHER 22 DATA DEEMED APPROPRI ATE; 23 (II) THE APPLICANT FACILIT Y’S COMPLIANCE RECORD ; AND 24 (III) POTENTIAL METHODS TO MINIMIZE OR MITIGATE POTENTIAL 25 ADVERSE EFFECTS IN T HE AFFECTED COMMUNIT Y. 26 (B) IN ADDITION TO THE EVALUATI ON REQUIRED UNDER SU BSECTION (A) OF 27 THIS SECTION, THE DEPARTMENT, IN COORDINATION WITH THE MARYLAND 28 DEPARTMENT OF HEALTH, MAY CONDUCT A HEALTH IMPACT ASSESSMENT OF THE 29 6 SENATE BILL 96 PERMIT. 1 (C) (1) IN CONDUCTING A CLIMA TE AND EQUITY EVALUA TION OR A HEALTH 2 IMPACT ASSESSMENT IN ACCORDANCE WITH THIS SECTION, THE DEPARTMENT MAY 3 CONSIDER CUMULATIVE IMPACTS, AS DEFINED IN THE U.S. ENVIRONMENTAL 4 PROTECTION AGENCY’S REPORT ON CUMULATIVE IMPACTS RESEARCH: 5 RECOMMENDATIONS FOR EPA’S OFFICE OF RESEARCH AND DEVELOPMENT. 6 (2) THE DEPARTMENT SHALL COMP LETE A CLIMATE AND E QUITY 7 EVALUATION AND , IF APPLICABLE, A HEALTH IMPACT ASSE SSMENT WITHIN 60 DAYS 8 AFTER MAKING A DETER MINATION UNDER SUBSE CTION (A) OF THIS SECTION THAT 9 ISSUING AN APPROVAL FOR A NEW PERMIT MAY IMPACT AN UNDERSERVED 10 COMMUNITY OR AN OVER BURDENED COMMUNITY . 11 1–7A–03. 12 (A) THE DEPARTMENT SHALL REGU LARLY PROVIDE OPPORT UNITIES FOR 13 RESIDENTS OF THE STATE TO OPT IN TO TE XT, PHONE, E–MAIL, OR REGULAR MAIL 14 NOTIFICATIONS REGARD ING ANY FACILITY WIT H A PENDING OR FINAL PERMIT 15 APPROVAL IN OR ADJACENT TO TH E RESIDENT’S CENSUS TRACT . 16 (B) (1) IF AN APPLICANT IS AP PLYING FOR MORE THAN ONE PERMIT FOR 17 THE SAME FACILITY , THE DEPARTMENT SHALL COMP LY WITH THE REQUIREM ENTS 18 UNDER § 1–7A–02 OF THIS SUBTITLE ONL Y ONCE UNLES S THE DEPARTMENT 19 DETERMINES THAT MORE THAN ONE EVALUATION IS NECESSARY DUE TO THE 20 COMPLEXITY OF THE AP PLICATIONS. 21 (2) PARAGRAPH (1) OF THIS SUBSECTION M AY NOT BE CONSTRUED 22 TO LIMIT THE AUTHORI TY OF THE DEPARTMENT TO HOLD OR REQUIRE ADDITIONAL 23 PUBLIC HEARINGS FOR A PERMIT . 24 (C) THE DEPARTMENT MAY DENY O R ALTER A DECISION O R AMEND THE 25 CONDITIONS UNDER A P ENDING PERMIT BASED ON THE DEPARTMENT ’S FINDINGS 26 UNDER THIS SUBTITLE . 27 1–7A–04. 28 (A) SUBJECT TO SUBSECTION (B) OF THIS SECTION , IN ADDITION TO ANY 29 OTHER FEE AUTHORIZED BY LAW OR REGULATION , THE DEPARTMENT MAY CHARGE 30 A REASONABLE FEE TO COVER THE DEPARTMENT ’S COSTS ASSOCIATED W ITH THE 31 IMPLEMENTATION OF TH IS SUBTITLE, INCLUDING COSTS TO P ROVIDE TECHNICAL 32 ASSISTANCE TO PERMIT APPLICANTS AND RESID ENTS OF RELEVANT CEN SUS 33 TRACTS AS NEEDED TO COMPLY WITH THIS SUB TITLE. 34 SENATE BILL 96 7 (B) THE DEPARTMENT SHALL DEPO SIT ANY MONEY FROM F EES THAT 1 REMAINS AFTER COVERI NG COSTS IN ACCORDAN CE WITH SUBSECTION (A) OF THIS 2 SECTION INTO: 3 (1) THE MARYLAND CLEAN WATER FUND; 4 (2) THE MARYLAND CLEAN AIR FUND; OR 5 (3) THE STATE HAZARDOUS SUBSTANCE CONTROL FUND. 6 1–7A–05. 7 THE DEPARTMENT SHALL ADOP T REGULATIONS TO CAR RY OUT THIS 8 SUBTITLE. 9 2–107. 10 (a) There is a Maryland Clean Air Fund. 11 (b) (1) Except as provided in § 2–1002(g) of this title, all application fees, 12 permit fees, renewal fees, and funds collected by the Department under this title, Title 6, 13 Subtitle 4 of this article, or received from the Maryland Strategic Energy Investment Fund 14 under § 9–20B–05(g)(3)(iii) of the State Government Article, including any civil or 15 administrative penalty or any fine imposed by a court under these provisions, shall be paid 16 into the Maryland Clean Air Fund. 17 (2) THE MARYLAND CLEAN AIR FUND MAY RECEIVE MONE Y IN 18 ACCORDANCE WITH § 1–7A–04(B) OF THIS ARTICLE. 19 2–1305. 20 (a) (1) Each State agency shall review its planning, regulatory, and fiscal 21 programs to identify and recommend actions to more fully integrate the consideration of 22 Maryland’s greenhouse gas reduction goal and the impacts of climate change. 23 (2) The review shall include the consideration of: 24 (i) Sea level rise; 25 (ii) Storm surges and flooding; 26 (iii) Increased precipitation and temperature; [and] 27 (iv) Extreme weather events; AND 28 8 SENATE BILL 96 (V) WHETHER AGENCY DECISI ONS CONTRIBUTE TO LO CAL 1 DETERIORATION OF PUB LIC HEALTH OR INCREA SES IN POLLUTION ASS OCIATED 2 WITH HEALTH AND ENVI RONMENTAL BURDENS FO R UNDERSERVED AND 3 OVERBURDENED COMMUNI TIES. 4 (b) Each State agency shall identify and recommend specific policy, planning, 5 regulatory, and fiscal changes to existing programs that do not currently support the State’s 6 greenhouse gas reduction efforts or address climate change. 7 (c) (1) [The] ON OR BEFORE DECEMBER 1 EACH YEAR, THE following State 8 agencies shall report [annually] on the status of programs that support the State’s 9 greenhouse gas reduction efforts or address climate change TO THE GENERAL 10 ASSEMBLY, in accordance with § 2–1257 of the State Government Article, AND to the 11 Commission and the Governor: 12 (i) The Department; 13 (ii) The Department of Agriculture; 14 (iii) The Department of General Services; 15 (iv) The Department of Housing and Community Development; 16 (v) The Department of Natural Resources; 17 (vi) The Department of Planning; 18 (vii) The Department of Transportation; 19 (viii) The Maryland Energy Administration; 20 (ix) The Maryland Insurance Administration; 21 (x) The Public Service Commission; and 22 (xi) The University of Maryland Center for Environmental Science. 23 (2) The report required [in] UNDER paragraph (1) of this subsection shall 24 include THE FOLLOWING INFORM ATION RELATING TO TH E WORK OF EACH STATE 25 AGENCY FOR THE IMMEDIATELY PR ECEDING 12–MONTH PERIOD : 26 (i) Program descriptions and objectives; 27 (ii) Implementation milestones, whether or not they have been met; 28 SENATE BILL 96 9 (iii) Enhancement opportunities; 1 (iv) Funding; 2 (v) Challenges; 3 (vi) Estimated greenhouse gas emissions reductions, by program, for 4 the prior calendar year; [and] 5 (vii) AGENCY CONTRIBUTIONS OR IMPEDIMENTS TO 6 ENVIRONMENTAL JUSTIC E; AND 7 (VIII) Any other information that the agency considers relevant. 8 (3) EACH STATE AGENCY SHALL MAKE TH E REPORT REQUIRED 9 UNDER PARAGRAPH (1) OF THIS SUBSECTION P UBLICLY AVAILABLE ON ITS 10 WEBSITE. 11 (d) Each State agency, when conducting long–term planning, developing policy, 12 and drafting regulations, shall take into consideration: 13 (1) The likely climate impact of the agency’s decisions relative to 14 Maryland’s greenhouse gas emissions reduction goals; and 15 (2) The likely impact of the agency’s decisions on disproportionately 16 affected communities identified according to the methodology adopted by the Department 17 under § 1–702 of this article. 18 7–218. 19 There is a State Hazardous Substance Control Fund. 20 7–219. 21 (A) All application and permit fees, renewal fees, transporting vehicle certification 22 fees, and all other funds collected by the Department under this subtitle, including any civil 23 or administrative penalty or any fine imposed by a court under the provisions of this 24 subtitle, shall be paid into the State Hazardous Substance Control Fund. 25 (B) THE STATE HAZARDOUS SUBSTANCE CONTROL FUND MAY RECEIVE 26 MONEY IN ACCORDANCE WITH § 1–7A–04(B) OF THIS ARTICLE. 27 9–320. 28 (a) There is a Maryland Clean Water Fund. 29 10 SENATE BILL 96 (b) (1) The following payments shall be made into the Maryland Clean Water 1 Fund: 2 [(1)] (I) All application fees, permit fees, renewal fees, and funds 3 collected by the Department under this subtitle, including any civil or administrative 4 penalty or any fine imposed by a court under the provisions of this subtitle; 5 [(2)] (II) Any civil penalty or any fine imposed by a court under the 6 provisions of Title 5, Subtitle 5 of this article relating to water appropriation and use; 7 [(3)] (III) Any civil or administrative penalty or any fine imposed by a court 8 under the provisions of Title 4, Subtitle 1 of this article; 9 [(4)] (IV) Any fees or funds that the Department collects under Subtitle 2, 10 Part III of this title and §§ 9–269 and 9–270 of this title and any civil or administrative 11 penalty or fine imposed by a court under the provisions of Subtitle 2 of this title; and 12 [(5)] (V) Any fees or funds that the Department collects under Subtitle 24 13 of this title and any civil or administrative penalty or fine imposed by a court under the 14 provisions of Subtitle 24 of this title. 15 (2) THE MARYLAND CLEAN WATER FUND MAY RECEIVE MONE Y IN 16 ACCORDANCE WITH § 1–7A–04(B) OF THIS ARTICLE. 17 SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect 18 October 1, 2024. 19