1 | 1 | | |
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2 | 2 | | |
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3 | 3 | | EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW. |
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4 | 4 | | [Brackets] indicate matter deleted from existing law. |
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5 | 5 | | *hb0024* |
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6 | 6 | | |
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7 | 7 | | HOUSE BILL 24 |
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8 | 8 | | M3 5lr1145 |
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9 | 9 | | (PRE–FILED) |
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10 | 10 | | By: Delegates Nawrocki and Szeliga |
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11 | 11 | | Requested: October 8, 2024 |
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12 | 12 | | Introduced and read first time: January 8, 2025 |
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13 | 13 | | Assigned to: Environment and Transportation |
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14 | 14 | | |
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15 | 15 | | A BILL ENTITLED |
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16 | 16 | | |
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17 | 17 | | AN ACT concerning 1 |
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18 | 18 | | |
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19 | 19 | | Bay Restoration Fund – Authorized Uses – Connection to Existing Municipal 2 |
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20 | 20 | | Wastewater Facility 3 |
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21 | 21 | | |
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22 | 22 | | FOR the purpose of altering the authorized uses of a certain account of the Bay Restoration 4 |
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23 | 23 | | Fund to include the cost of connecting certain property using an on–site sewage 5 |
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24 | 24 | | disposal system to an existing municipal wastewater facility under certain 6 |
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25 | 25 | | circumstances; and generally relating to authorized uses of the Bay Restoration 7 |
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26 | 26 | | Fund. 8 |
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27 | 27 | | |
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28 | 28 | | BY repealing and reenacting, with amendments, 9 |
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29 | 29 | | Article – Environment 10 |
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30 | 30 | | Section 9–1605.2(h) 11 |
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31 | 31 | | Annotated Code of Maryland 12 |
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32 | 32 | | (2014 Replacement Volume and 2024 Supplement) 13 |
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33 | 33 | | |
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34 | 34 | | SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 14 |
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35 | 35 | | That the Laws of Maryland read as follows: 15 |
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36 | 36 | | |
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37 | 37 | | Article – Environment 16 |
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38 | 38 | | |
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39 | 39 | | 9–1605.2. 17 |
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40 | 40 | | |
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41 | 41 | | (h) (1) With regard to the funds collected under subsection (b)(1)(i)1 of this 18 |
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42 | 42 | | section from users of an on–site sewage disposal system or holding tank that receive a water 19 |
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43 | 43 | | bill and subsection (b)(1)(i)2 and 3 of this section, beginning in fiscal year 2006, the 20 |
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44 | 44 | | Comptroller shall: 21 |
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45 | 45 | | |
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46 | 46 | | (i) Establish a separate account within the Bay Restoration Fund; 22 |
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47 | 47 | | and 23 |
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48 | 48 | | 2 HOUSE BILL 24 |
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49 | 49 | | |
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50 | 50 | | |
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51 | 51 | | (ii) Disburse the funds as provided under paragraph (2) of this 1 |
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52 | 52 | | subsection. 2 |
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53 | 53 | | |
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54 | 54 | | (2) The Comptroller shall: 3 |
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55 | 55 | | |
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56 | 56 | | (i) Deposit 60% of the funds in the separate account to be used for: 4 |
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57 | 57 | | |
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58 | 58 | | 1. Subject to paragraphs (3), (4), (5), [and] (6), AND (7) of 5 |
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59 | 59 | | this subsection, with priority first given to failing systems and holding tanks located in the 6 |
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60 | 60 | | Chesapeake and Atlantic Coastal Bays Critical Area and then to failing systems that the 7 |
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61 | 61 | | Department determines are a threat to public health or water quality, grants or loans for 8 |
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62 | 62 | | up to 100% of: 9 |
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63 | 63 | | |
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64 | 64 | | A. The costs attributable to upgrading an on–site sewage 10 |
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65 | 65 | | disposal system to the best available technology for the removal of nitrogen; 11 |
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66 | 66 | | |
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67 | 67 | | B. The cost difference between a conventional on–site sewage 12 |
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68 | 68 | | disposal system and a system that utilizes the best available technology for the removal of 13 |
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69 | 69 | | nitrogen; 14 |
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70 | 70 | | |
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71 | 71 | | C. The cost of repairing or replacing a failing on–site sewage 15 |
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72 | 72 | | disposal system with a system that uses the best available technology for nitrogen removal; 16 |
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73 | 73 | | |
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74 | 74 | | D. The cost, up to the sum of the costs authorized under item 17 |
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75 | 75 | | B of this item for each individual system, of replacing multiple on–site sewage disposal 18 |
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76 | 76 | | systems located in the same community with a new community sewerage system that is 19 |
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77 | 77 | | owned by a local government and that meets enhanced nutrient removal standards; [or] 20 |
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78 | 78 | | |
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79 | 79 | | E. The cost, up to the sum of the costs authorized under item 21 |
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80 | 80 | | C of this item for each individual system, of connecting a property using an on–site sewage 22 |
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81 | 81 | | disposal system to an existing municipal wastewater facility that is achieving enhanced 23 |
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82 | 82 | | nutrient removal or biological nutrient removal level treatment, including payment of the 24 |
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83 | 83 | | principal, but not interest, of debt issued by a local government for such connection costs; 25 |
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84 | 84 | | OR 26 |
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85 | 85 | | |
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86 | 86 | | F. SUBJECT TO PARAGRAPH (6) OF THIS SUBSECTION , 27 |
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87 | 87 | | THE COST OF CONNECTING A PROPERTY IN A LOW –INCOME AREA , AS DEFINED BY 28 |
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88 | 88 | | THE DEPARTMENT , THAT IS USING AN ON –SITE SEWAGE DISPOSAL SYSTEM TO AN 29 |
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89 | 89 | | EXISTING MUNICIPAL W ASTEWATER FACILITY , REGARDLESS OF THE LE VEL OF 30 |
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90 | 90 | | NUTRIENT R EMOVAL OR BIOLOGICAL NUTRIENT LEVEL TREAT MENT, INCLUDING 31 |
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91 | 91 | | PAYMENT OF THE PRINC IPAL, BUT NOT INTEREST , OF DEBT ISSUED BY A LOCAL 32 |
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92 | 92 | | GOVERNMENT FOR SUCH CONNECTION COSTS ; 33 |
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93 | 93 | | |
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94 | 94 | | 2. The reasonable costs of the Department, not to exceed 8% 34 |
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95 | 95 | | of the funds deposited into the separate account, to: 35 |
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96 | 96 | | HOUSE BILL 24 3 |
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97 | 97 | | |
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98 | 98 | | |
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99 | 99 | | A. Implement an education, outreach, and upgrade program 1 |
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100 | 100 | | to advise owners of on–site sewage disposal systems and holding tanks on the proper 2 |
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101 | 101 | | maintenance of the systems and tanks and the availability of grants and loans under item 3 |
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102 | 102 | | 1 of this item; 4 |
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103 | 103 | | |
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104 | 104 | | B. Review and approve the design and construction of on–site 5 |
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105 | 105 | | sewage disposal system or holding tank upgrades; 6 |
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106 | 106 | | |
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107 | 107 | | C. Issue grants or loans as provided under item 1 of this item; 7 |
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108 | 108 | | and 8 |
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109 | 109 | | |
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110 | 110 | | D. Provide technical support for owners of upgraded on–site 9 |
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111 | 111 | | sewage disposal systems or holding tanks to operate and maintain the upgraded systems; 10 |
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112 | 112 | | |
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113 | 113 | | 3. A portion of the reasonable costs of a local public entity 11 |
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114 | 114 | | that has been delegated by the Department under § 1–301(b) of this article to administer 12 |
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115 | 115 | | and enforce environmental laws, not to exceed 10% of the funds deposited into the separate 13 |
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116 | 116 | | account, to implement regulations adopted by the Department for on–site sewage disposal 14 |
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117 | 117 | | systems that utilize the best available technology for the removal of nitrogen; 15 |
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118 | 118 | | |
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119 | 119 | | 4. Subject to paragraph [(7)] (8) of this subsection, financial 16 |
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120 | 120 | | assistance to low–income homeowners, as defined by the Department, for up to 50% of the 17 |
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121 | 121 | | cost of an operation and maintenance contract of up to 5 years for an on–site sewage 18 |
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122 | 122 | | disposal system that utilizes nitrogen removal technology; 19 |
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123 | 123 | | |
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124 | 124 | | 5. Subject to paragraph [(8)] (9) of this subsection, a local 20 |
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125 | 125 | | jurisdiction to provide financial assistance to eligible homeowners for the reasonable cost 21 |
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126 | 126 | | of pumping out an on–site sewage disposal system, at least once every 5 years, unless a 22 |
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127 | 127 | | more frequent pump out schedule is recommended during an inspection, not to exceed 10% 23 |
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128 | 128 | | of the funds allocated to the local jurisdiction; and 24 |
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129 | 129 | | |
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130 | 130 | | 6. In fiscal years 2020 and 2021, financial assistance to a 25 |
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131 | 131 | | local jurisdiction for the development of a septic stewardship plan that meets the 26 |
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132 | 132 | | requirements under paragraph [(8)(iii)2] (9)(III)2 of this subsection; and 27 |
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133 | 133 | | |
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134 | 134 | | (ii) Transfer 40% of the funds to the Maryland Agriculture Water 28 |
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135 | 135 | | Quality Cost Share Program in the Department of Agriculture in order to fund cover crop 29 |
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136 | 136 | | activities. 30 |
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137 | 137 | | |
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138 | 138 | | (3) Funding for the costs identified in paragraph (2)(i)1 of this subsection 31 |
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139 | 139 | | shall be provided in the following order of priority: 32 |
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140 | 140 | | |
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141 | 141 | | (i) For owners of all levels of income, the costs identified in 33 |
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142 | 142 | | paragraph (2)(i)1A and B of this subsection; [and] 34 |
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143 | 143 | | |
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144 | 144 | | (ii) For low–income owners, as defined by the Department, the costs 35 |
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145 | 145 | | identified in paragraph (2)(i)1C of this subsection: 36 4 HOUSE BILL 24 |
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146 | 146 | | |
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147 | 147 | | |
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148 | 148 | | |
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149 | 149 | | 1. First, for best available technologies for nitrogen removal; 1 |
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150 | 150 | | and 2 |
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151 | 151 | | |
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152 | 152 | | 2. Second, for other wastewater treatment systems; AND 3 |
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153 | 153 | | |
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154 | 154 | | (III) FOR OWNERS WITH A HOU SEHOLD INCOME UP TO $300,000 4 |
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155 | 155 | | PER YEAR, THE COSTS IDENTIFIED IN PARAGRAPH (2)(I)1F OF THIS SUBSECTION . 5 |
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156 | 156 | | |
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157 | 157 | | (4) Funding for the costs identified in paragraph (2)(i)1D of this subsection 6 |
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158 | 158 | | may be provided if: 7 |
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159 | 159 | | |
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160 | 160 | | (i) The environmental impact of the on–site sewage disposal system 8 |
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161 | 161 | | is documented by the local government and confirmed by the Department; 9 |
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162 | 162 | | |
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163 | 163 | | (ii) It can be demonstrated that: 10 |
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164 | 164 | | |
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165 | 165 | | 1. The replacement of the on–site sewage disposal system 11 |
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166 | 166 | | with a new community sewerage system is more cost effective for nitrogen removal than 12 |
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167 | 167 | | upgrading each individual on–site sewage disposal system; or 13 |
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168 | 168 | | |
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169 | 169 | | 2. The individual replacement of the on–site sewage disposal 14 |
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170 | 170 | | system is not feasible; and 15 |
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171 | 171 | | |
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172 | 172 | | (iii) The new community sewerage system will only serve lots that 16 |
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173 | 173 | | have received a certificate of occupancy, or equivalent certificate, on or before October 1, 17 |
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174 | 174 | | 2008. 18 |
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175 | 175 | | |
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176 | 176 | | (5) Funding for the costs identified in paragraph (2)(i)1E of this subsection 19 |
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177 | 177 | | may be provided only if all of the following conditions are met: 20 |
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178 | 178 | | |
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179 | 179 | | (i) The environmental impact of the on–site sewage disposal system 21 |
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180 | 180 | | is documented by the local government and confirmed by the Department; 22 |
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181 | 181 | | |
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182 | 182 | | (ii) It can be demonstrated that: 23 |
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183 | 183 | | |
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184 | 184 | | 1. The replacement of the on–site sewage disposal system 24 |
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185 | 185 | | with service to an existing municipal wastewater facility that is achieving, or has signed a 25 |
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186 | 186 | | funding agreement with the Department and is under construction to achieve, enhanced 26 |
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187 | 187 | | nutrient removal or biological nutrient removal level treatment is more cost–effective for 27 |
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188 | 188 | | nitrogen removal than upgrading the individual on–site sewage disposal system; or 28 |
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189 | 189 | | |
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190 | 190 | | 2. The individual replacement of the on–site sewage disposal 29 |
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191 | 191 | | system is not feasible; 30 |
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192 | 192 | | |
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193 | 193 | | (iii) The project is consistent with the county’s comprehensive plan 31 |
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194 | 194 | | and water and sewer master plan; 32 HOUSE BILL 24 5 |
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195 | 195 | | |
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196 | 196 | | |
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197 | 197 | | |
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198 | 198 | | (iv) 1. The on–site sewage disposal system was installed as of 1 |
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199 | 199 | | October 1, 2008, and the property the system serves is located in a priority funding area, 2 |
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200 | 200 | | in accordance with § 5–7B–02 of the State Finance and Procurement Article; or 3 |
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201 | 201 | | |
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202 | 202 | | 2. The on–site sewage disposal system was installed as of 4 |
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203 | 203 | | October 1, 2008, the property the system serves is not located in a priority funding area, 5 |
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204 | 204 | | and the project meets the requirements under § 5–7B–06 of the State Finance and 6 |
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205 | 205 | | Procurement Article and is consistent with a public health area of concern: 7 |
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206 | 206 | | |
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207 | 207 | | A. Identified in the county water and sewer plan; or 8 |
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208 | 208 | | |
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209 | 209 | | B. Certified by a county environmental health director with 9 |
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210 | 210 | | concurrence by the Department and, if funding is approved, subsequently added to the 10 |
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211 | 211 | | county water and sewer plan within a time frame jointly agreed on by the Department and 11 |
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212 | 212 | | the county that takes into consideration the county’s water and sewer plan update and 12 |
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213 | 213 | | amendment process; and 13 |
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214 | 214 | | |
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215 | 215 | | (v) The funding agreement for a project that meets the conditions for 14 |
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216 | 216 | | funding under subparagraph (iv)2 of this paragraph includes provisions to ensure: 15 |
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217 | 217 | | |
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218 | 218 | | 1. Denial of access for any future connections that are not 16 |
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219 | 219 | | included in the project’s proposed service area; and 17 |
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220 | 220 | | |
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221 | 221 | | 2. That the project will not unduly impede access to funding 18 |
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222 | 222 | | for upgrading individual on–site sewage disposal systems in the county with best available 19 |
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223 | 223 | | technology for nitrogen removal. 20 |
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224 | 224 | | |
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225 | 225 | | (6) FUNDING FOR THE COSTS IDENTIFIED IN PARAGRAPH (2)(I)1F OF 21 |
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226 | 226 | | THIS SUBSECTION MAY BE PROVIDED ONLY IF THE HOUSEHOLD SERVED BY THE 22 |
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227 | 227 | | ON–SITE SEWAGE DISPOSAL SYSTEM TO BE REPLACE D: 23 |
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228 | 228 | | |
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229 | 229 | | (I) IS LOCATED IN A LOW –INCOME AREA , AS DETERMINED BY 24 |
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230 | 230 | | THE DEPARTMENT ; 25 |
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231 | 231 | | |
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232 | 232 | | (II) HAS A HOUSEHOLD INCOME OF UP TO $300,000 PER YEAR; 26 |
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233 | 233 | | AND 27 |
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234 | 234 | | |
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235 | 235 | | (III) IS LOCATED ADJACENT T O AN EXISTING SEWER MAIN. 28 |
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236 | 236 | | |
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237 | 237 | | (7) The Comptroller, in consultation with the Administration, may 29 |
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238 | 238 | | establish any other accounts and subaccounts within the Bay Restoration Fund as 30 |
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239 | 239 | | necessary to: 31 |
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240 | 240 | | |
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241 | 241 | | (i) Effectuate the purposes of this subtitle; 32 |
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242 | 242 | | 6 HOUSE BILL 24 |
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243 | 243 | | |
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244 | 244 | | |
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245 | 245 | | (ii) Comply with the provisions of any bond resolution; 1 |
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246 | 246 | | |
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247 | 247 | | (iii) Meet the requirements of any federal or State law or of any grant 2 |
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248 | 248 | | or award to the Bay Restoration Fund; and 3 |
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249 | 249 | | |
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250 | 250 | | (iv) Meet any rules or program directives established by the 4 |
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251 | 251 | | Secretary or the Board. 5 |
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252 | 252 | | |
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253 | 253 | | [(7)] (8) The Department or a local government shall determine: 6 |
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254 | 254 | | |
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255 | 255 | | (i) Whether an applicant is eligible for financial assistance under 7 |
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256 | 256 | | paragraph (2)(i)4 of this subsection; and 8 |
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257 | 257 | | |
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258 | 258 | | (ii) The amount of financial assistance to be provided for each 9 |
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259 | 259 | | applicant based on the average cost of an operation and maintenance contract of up to 5 10 |
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260 | 260 | | years provided by vendors, as defined in § 9–1108.1 of this title, in the applicant’s area. 11 |
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261 | 261 | | |
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262 | 262 | | [(8)] (9) (i) The amount of financial assistance under paragraph 12 |
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263 | 263 | | (2)(i)5 of this subsection shall be based on homeowner income, with priority given to 13 |
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264 | 264 | | low–income homeowners. 14 |
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265 | 265 | | |
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266 | 266 | | (ii) Financial assistance under paragraph (2)(i)5 of this subsection 15 |
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267 | 267 | | may be provided through grants, rebates, or low– or no–interest loans. 16 |
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268 | 268 | | |
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269 | 269 | | (iii) Financial assistance under paragraph (2)(i)5 of this subsection 17 |
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270 | 270 | | may be provided only if: 18 |
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271 | 271 | | |
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272 | 272 | | 1. The homeowner verifies the pump out has occurred; and 19 |
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273 | 273 | | |
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274 | 274 | | 2. The homeowner resides in a local jurisdiction that has 20 |
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275 | 275 | | developed and implemented a septic stewardship plan that: 21 |
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276 | 276 | | |
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277 | 277 | | A. Has been adopted by the local governing body of the 22 |
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278 | 278 | | jurisdiction, after consultation with the jurisdiction’s local health department; 23 |
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279 | 279 | | |
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280 | 280 | | B. States specific goals consistent with the nitrogen load 24 |
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281 | 281 | | reduction identified in the local jurisdiction’s watershed implementation plan; 25 |
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282 | 282 | | |
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283 | 283 | | C. Specifies public education and outreach measures that 26 |
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284 | 284 | | will be taken, including education and outreach on best management practices, legal 27 |
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285 | 285 | | requirements, and existing support and financial assistance; 28 |
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286 | 286 | | |
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287 | 287 | | D. Provides technical guidance for the siting, design, 29 |
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288 | 288 | | evaluation, and construction of an on–site sewage disposal system; 30 |
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289 | 289 | | HOUSE BILL 24 7 |
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290 | 290 | | |
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291 | 291 | | |
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292 | 292 | | E. Requires an on–site sewage disposal system located on 1 |
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293 | 293 | | residential property to be pumped out and inspected at least once every 5 years, unless a 2 |
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294 | 294 | | more frequent pump out schedule is recommended during an inspection; 3 |
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295 | 295 | | |
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296 | 296 | | F. Requires an on–site sewage disposal system located on 4 |
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297 | 297 | | commercial property to be pumped out and inspected at least once every 5 years, unless a 5 |
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298 | 298 | | more frequent pump out schedule is recommended during an inspection; 6 |
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299 | 299 | | |
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300 | 300 | | G. Specifies certification and licensing procedures for a 7 |
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301 | 301 | | person that pumps out and inspects on–site sewage disposal systems; 8 |
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302 | 302 | | |
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303 | 303 | | H. Specifies enforcement mechanisms, compliance 9 |
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304 | 304 | | incentives, and penalties; 10 |
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305 | 305 | | |
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306 | 306 | | I. Outlines funding mechanisms to support the plan and 11 |
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307 | 307 | | expand education, demonstration projects, and inspections; 12 |
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308 | 308 | | |
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309 | 309 | | J. Specifies requirements for record keeping; and 13 |
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310 | 310 | | |
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311 | 311 | | K. Establishes a process for periodically evaluating and 14 |
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312 | 312 | | revising the plan. 15 |
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313 | 313 | | |
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314 | 314 | | [(9)] (10) On or before December 31 each year, the Department of the 16 |
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315 | 315 | | Environment shall submit a report, in accordance with § 2–1257 of the State Government 17 |
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316 | 316 | | Article, to the House Environmental Matters Committee and the Senate Education, 18 |
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317 | 317 | | Energy, and the Environment Committee on: 19 |
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318 | 318 | | |
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319 | 319 | | (i) Each project funded under paragraph (5)(iv)2 of this subsection; 20 |
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320 | 320 | | and 21 |
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321 | 321 | | |
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322 | 322 | | (ii) A summary of any impacts that the funding used for these 22 |
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323 | 323 | | projects had on overall funding for upgrading individual on–site sewage disposal systems 23 |
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324 | 324 | | with best available technology for nitrogen removal. 24 |
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325 | 325 | | |
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326 | 326 | | SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect 25 |
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327 | 327 | | October 1, 2025. 26 |
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