EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
[Brackets] indicate matter deleted from existing law.
*hb0024*
HOUSE BILL 24
M3 5lr1145
(PRE–FILED)
By: Delegates Nawrocki and Szeliga
Requested: October 8, 2024
Introduced and read first time: January 8, 2025
Assigned to: Environment and Transportation
A BILL ENTITLED
AN ACT concerning 1
Bay Restoration Fund – Authorized Uses – Connection to Existing Municipal 2
Wastewater Facility 3
FOR the purpose of altering the authorized uses of a certain account of the Bay Restoration 4
Fund to include the cost of connecting certain property using an on–site sewage 5
disposal system to an existing municipal wastewater facility under certain 6
circumstances; and generally relating to authorized uses of the Bay Restoration 7
Fund. 8
BY repealing and reenacting, with amendments, 9
Article – Environment 10
Section 9–1605.2(h) 11
Annotated Code of Maryland 12
(2014 Replacement Volume and 2024 Supplement) 13
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 14
That the Laws of Maryland read as follows: 15
Article – Environment 16
9–1605.2. 17
(h) (1) With regard to the funds collected under subsection (b)(1)(i)1 of this 18
section from users of an on–site sewage disposal system or holding tank that receive a water 19
bill and subsection (b)(1)(i)2 and 3 of this section, beginning in fiscal year 2006, the 20
Comptroller shall: 21
(i) Establish a separate account within the Bay Restoration Fund; 22
and 23
2 HOUSE BILL 24
(ii) Disburse the funds as provided under paragraph (2) of this 1
subsection. 2
(2) The Comptroller shall: 3
(i) Deposit 60% of the funds in the separate account to be used for: 4
1. Subject to paragraphs (3), (4), (5), [and] (6), AND (7) of 5
this subsection, with priority first given to failing systems and holding tanks located in the 6
Chesapeake and Atlantic Coastal Bays Critical Area and then to failing systems that the 7
Department determines are a threat to public health or water quality, grants or loans for 8
up to 100% of: 9
A. The costs attributable to upgrading an on–site sewage 10
disposal system to the best available technology for the removal of nitrogen; 11
B. The cost difference between a conventional on–site sewage 12
disposal system and a system that utilizes the best available technology for the removal of 13
nitrogen; 14
C. The cost of repairing or replacing a failing on–site sewage 15
disposal system with a system that uses the best available technology for nitrogen removal; 16
D. The cost, up to the sum of the costs authorized under item 17
B of this item for each individual system, of replacing multiple on–site sewage disposal 18
systems located in the same community with a new community sewerage system that is 19
owned by a local government and that meets enhanced nutrient removal standards; [or] 20
E. The cost, up to the sum of the costs authorized under item 21
C of this item for each individual system, of connecting a property using an on–site sewage 22
disposal system to an existing municipal wastewater facility that is achieving enhanced 23
nutrient removal or biological nutrient removal level treatment, including payment of the 24
principal, but not interest, of debt issued by a local government for such connection costs; 25
OR 26
F. SUBJECT TO PARAGRAPH (6) OF THIS SUBSECTION , 27
THE COST OF CONNECTING A PROPERTY IN A LOW –INCOME AREA , AS DEFINED BY 28
THE DEPARTMENT , THAT IS USING AN ON –SITE SEWAGE DISPOSAL SYSTEM TO AN 29
EXISTING MUNICIPAL W ASTEWATER FACILITY , REGARDLESS OF THE LE VEL OF 30
NUTRIENT R EMOVAL OR BIOLOGICAL NUTRIENT LEVEL TREAT MENT, INCLUDING 31
PAYMENT OF THE PRINC IPAL, BUT NOT INTEREST , OF DEBT ISSUED BY A LOCAL 32
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
HOUSE BILL 24 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)] (8) 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)] (9) 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] (9)(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
(3) Funding for the costs identified in paragraph (2)(i)1 of this subsection 31
shall be provided in the following order of priority: 32
(i) For owners of all levels of income, the costs identified in 33
paragraph (2)(i)1A and B of this subsection; [and] 34
(ii) For low–income owners, as defined by the Department, the costs 35
identified in paragraph (2)(i)1C of this subsection: 36 4 HOUSE BILL 24
1. First, for best available technologies for nitrogen removal; 1
and 2
2. Second, for other wastewater treatment systems; AND 3
(III) FOR OWNERS WITH A HOU SEHOLD INCOME UP TO $300,000 4
PER YEAR, THE COSTS IDENTIFIED IN PARAGRAPH (2)(I)1F OF THIS SUBSECTION . 5
(4) Funding for the costs identified in paragraph (2)(i)1D of this subsection 6
may be provided if: 7
(i) The environmental impact of the on–site sewage disposal system 8
is documented by the local government and confirmed by the Department; 9
(ii) It can be demonstrated that: 10
1. The replacement of the on–site sewage disposal system 11
with a new community sewerage system is more cost effective for nitrogen removal than 12
upgrading each individual on–site sewage disposal system; or 13
2. The individual replacement of the on–site sewage disposal 14
system is not feasible; and 15
(iii) The new community sewerage system will only serve lots that 16
have received a certificate of occupancy, or equivalent certificate, on or before October 1, 17
2008. 18
(5) Funding for the costs identified in paragraph (2)(i)1E of this subsection 19
may be provided only if all of the following conditions are met: 20
(i) The environmental impact of the on–site sewage disposal system 21
is documented by the local government and confirmed by the Department; 22
(ii) It can be demonstrated that: 23
1. The replacement of the on–site sewage disposal system 24
with service to an existing municipal wastewater facility that is achieving, or has signed a 25
funding agreement with the Department and is under construction to achieve, enhanced 26
nutrient removal or biological nutrient removal level treatment is more cost–effective for 27
nitrogen removal than upgrading the individual on–site sewage disposal system; or 28
2. The individual replacement of the on–site sewage disposal 29
system is not feasible; 30
(iii) The project is consistent with the county’s comprehensive plan 31
and water and sewer master plan; 32 HOUSE BILL 24 5
(iv) 1. The on–site sewage disposal system was installed as of 1
October 1, 2008, and the property the system serves is located in a priority funding area, 2
in accordance with § 5–7B–02 of the State Finance and Procurement Article; or 3
2. The on–site sewage disposal system was installed as of 4
October 1, 2008, the property the system serves is not located in a priority funding area, 5
and the project meets the requirements under § 5–7B–06 of the State Finance and 6
Procurement Article and is consistent with a public health area of concern: 7
A. Identified in the county water and sewer plan; or 8
B. Certified by a county environmental health director with 9
concurrence by the Department and, if funding is approved, subsequently added to the 10
county water and sewer plan within a time frame jointly agreed on by the Department and 11
the county that takes into consideration the county’s water and sewer plan update and 12
amendment process; and 13
(v) The funding agreement for a project that meets the conditions for 14
funding under subparagraph (iv)2 of this paragraph includes provisions to ensure: 15
1. Denial of access for any future connections that are not 16
included in the project’s proposed service area; and 17
2. That the project will not unduly impede access to funding 18
for upgrading individual on–site sewage disposal systems in the county with best available 19
technology for nitrogen removal. 20
(6) FUNDING FOR THE COSTS IDENTIFIED IN PARAGRAPH (2)(I)1F OF 21
THIS SUBSECTION MAY BE PROVIDED ONLY IF THE HOUSEHOLD SERVED BY THE 22
ON–SITE SEWAGE DISPOSAL SYSTEM TO BE REPLACE D: 23
(I) IS LOCATED IN A LOW –INCOME AREA , AS DETERMINED BY 24
THE DEPARTMENT ; 25
(II) HAS A HOUSEHOLD INCOME OF UP TO $300,000 PER YEAR; 26
AND 27
(III) IS LOCATED ADJACENT T O AN EXISTING SEWER MAIN. 28
(7) The Comptroller, in consultation with the Administration, may 29
establish any other accounts and subaccounts within the Bay Restoration Fund as 30
necessary to: 31
(i) Effectuate the purposes of this subtitle; 32
6 HOUSE BILL 24
(ii) Comply with the provisions of any bond resolution; 1
(iii) Meet the requirements of any federal or State law or of any grant 2
or award to the Bay Restoration Fund; and 3
(iv) Meet any rules or program directives established by the 4
Secretary or the Board. 5
[(7)] (8) The Department or a local government shall determine: 6
(i) Whether an applicant is eligible for financial assistance under 7
paragraph (2)(i)4 of this subsection; and 8
(ii) The amount of financial assistance to be provided for each 9
applicant based on the average cost of an operation and maintenance contract of up to 5 10
years provided by vendors, as defined in § 9–1108.1 of this title, in the applicant’s area. 11
[(8)] (9) (i) The amount of financial assistance under paragraph 12
(2)(i)5 of this subsection shall be based on homeowner income, with priority given to 13
low–income homeowners. 14
(ii) Financial assistance under paragraph (2)(i)5 of this subsection 15
may be provided through grants, rebates, or low– or no–interest loans. 16
(iii) Financial assistance under paragraph (2)(i)5 of this subsection 17
may be provided only if: 18
1. The homeowner verifies the pump out has occurred; and 19
2. The homeowner resides in a local jurisdiction that has 20
developed and implemented a septic stewardship plan that: 21
A. Has been adopted by the local governing body of the 22
jurisdiction, after consultation with the jurisdiction’s local health department; 23
B. States specific goals consistent with the nitrogen load 24
reduction identified in the local jurisdiction’s watershed implementation plan; 25
C. Specifies public education and outreach measures that 26
will be taken, including education and outreach on best management practices, legal 27
requirements, and existing support and financial assistance; 28
D. Provides technical guidance for the siting, design, 29
evaluation, and construction of an on–site sewage disposal system; 30
HOUSE BILL 24 7
E. Requires an on–site sewage disposal system located on 1
residential property to be pumped out and inspected at least once every 5 years, unless a 2
more frequent pump out schedule is recommended during an inspection; 3
F. Requires an on–site sewage disposal system located on 4
commercial property to be pumped out and inspected at least once every 5 years, unless a 5
more frequent pump out schedule is recommended during an inspection; 6
G. Specifies certification and licensing procedures for a 7
person that pumps out and inspects on–site sewage disposal systems; 8
H. Specifies enforcement mechanisms, compliance 9
incentives, and penalties; 10
I. Outlines funding mechanisms to support the plan and 11
expand education, demonstration projects, and inspections; 12
J. Specifies requirements for record keeping; and 13
K. Establishes a process for periodically evaluating and 14
revising the plan. 15
[(9)] (10) On or before December 31 each year, the Department of the 16
Environment shall submit a report, in accordance with § 2–1257 of the State Government 17
Article, to the House Environmental Matters Committee and the Senate Education, 18
Energy, and the Environment Committee on: 19
(i) Each project funded under paragraph (5)(iv)2 of this subsection; 20
and 21
(ii) A summary of any impacts that the funding used for these 22
projects had on overall funding for upgrading individual on–site sewage disposal systems 23
with best available technology for nitrogen removal. 24
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect 25
October 1, 2025. 26