EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
[Brackets] indicate matter deleted from existing law.
*sb0117*
SENATE BILL 117
M3 5lr1673
(PRE–FILED) CF HB 131
By: Senator Hester
Requested: November 1, 2024
Introduced and read first time: January 8, 2025
Assigned to: Education, Energy, and the Environment
A BILL ENTITLED
AN ACT concerning 1
Environment – Bay Restoration Fund – Septic System Upgrade Program 2
FOR the purpose of authorizing the Department of the Environment to establish 3
performance–based funding levels for best available nitrogen removal technologies 4
for on–site sewage disposal systems using a certain evaluation and ranking process; 5
requiring the Department to make certain eligible funding levels available in a 6
certain manner; altering priorities for funding the repair or replacement of certain 7
on–site sewage disposal systems; expanding certain funding eligibility criteria for 8
on–site sewage disposal systems and community sewerage systems; exempting 9
procurements by the Department of certain best av ailable nitrogen removal 10
technologies for on–site sewage disposal systems from certain provisions of the 11
general procurement law; and generally relating to on–site sewage disposal systems. 12
BY repealing and reenacting, with amendments, 13
Article – Environment 14
Section 9–1108.1 and 9–1605.2(h)(2) through (5) 15
Annotated Code of Maryland 16
(2014 Replacement Volume and 2024 Supplement) 17
BY repealing and reenacting, without amendments, 18
Article – Environment 19
Section 9–1605.2(a)(1) and (h)(1) 20
Annotated Code of Maryland 21
(2014 Replacement Volume and 2024 Supplement) 22
BY repealing and reenacting, with amendments, 23
Article – State Finance and Procurement 24
Section 11–203(a)(1)(xviii) and (xix) 25
Annotated Code of Maryland 26
(2021 Replacement Volume and 2024 Supplement) 27 2 SENATE BILL 117
BY adding to 1
Article – State Finance and Procurement 2
Section 11–203(a)(1)(xx) 3
Annotated Code of Maryland 4
(2021 Replacement Volume and 2024 Supplement) 5
BY repealing and reenacting, without amendments, 6
Article – State Finance and Procurement 7
Section 11–203(a)(2) and (3) 8
Annotated Code of Maryland 9
(2021 Replacement Volume and 2024 Supplement) 10
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 11
That the Laws of Maryland read as follows: 12
Article – Environment 13
9–1108.1. 14
(a) (1) In this section the following words have the meanings indicated. 15
(2) “Nitrogen removal technology” has the meaning stated in § 9–1108 of 16
this subtitle. 17
(3) “On–site sewage disposal system” has the meaning stated in § 9–1108 18
of this subtitle. 19
(4) “Vendor” means a person that sells, offers for sale, or distributes 20
on–site sewage disposal systems that utilize nitrogen removal technology. 21
(b) (1) In accordance with subsection (c) of this section, the Department shall 22
evaluate and rank all best available nitrogen removal technologies for on–site sewage 23
disposal systems to advise local governments and residents of the State of approved 24
technologies that qualify for funding under § 9–1605.2(h)(2) of this title. 25
(2) THE DEPARTMENT MAY USE TH E EVALUATION AND RANKING 26
UNDER PARAGRAPH (1) OF THIS SUBSECTION T O ESTABLISH PERFORMA NCE–BASED 27
FUNDING LEVELS FOR E ACH BEST AVAILABLE N ITROGEN REMOVAL TECH NOLOGY 28
FOR ON–SITE SEWAGE DISPOSAL SYSTEMS THAT QUALIFI ES FOR FUNDING UNDER § 29
9–1605.2(H)(2) OF THIS TITLE. 30
(3) The Department shall: 31
SENATE BILL 117 3
(i) Make available the evaluation [and], ranking, AND ELIGIBLE 1
FUNDING LEVELS of all best available nitrogen removal technologies required under this 2
section on the Department’s [Web site] WEBSITE; and 3
(ii) Provide the evaluation [and], ranking, AND ELIGIBLE 4
FUNDING LEVELS of all best available nitrogen removal technologies to a county, 5
municipality, or resident of the State in any correspondence relating to approved 6
technologies that qualify for funding under § 9–1605.2(h)(2) of this title. 7
(c) The Department shall evaluate and rank all best available nitrogen removal 8
technologies for on–site sewage disposal systems based on: 9
(1) The total amount of nitrogen reduction the technology can achieve; 10
(2) The total cost of the technology, including the estimated annual cost of 11
operation and maintenance, including electricity costs; 12
(3) The cost per pound of the nitrogen reduction; and 13
(4) Any other information the Department determines is necessary. 14
(d) Beginning June 1, 2011, and every 2 years thereafter, the Department shall 15
request information from vendors necessary to carry out the requirements of this section. 16
9–1605.2. 17
(a) (1) There is a Bay Restoration Fund. 18
(h) (1) With regard to the funds collected under subsection (b)(1)(i)1 of this 19
section from users of an on–site sewage disposal system or holding tank that receive a water 20
bill and subsection (b)(1)(i)2 and 3 of this section, beginning in fiscal year 2006, the 21
Comptroller shall: 22
(i) Establish a separate account within the Bay Restoration Fund; 23
and 24
(ii) Disburse the funds as provided under paragraph (2) of this 25
subsection. 26
(2) The Comptroller shall: 27
(i) Deposit 60% of the funds in the separate account to be used for: 28
1. Subject to paragraphs (3), (4), (5), and (6) of this 29
subsection, with priority first given to failing systems and holding tanks located in the 30
Chesapeake and Atlantic Coastal Bays Critical Area [and then], SECOND to failing 31 4 SENATE BILL 117
systems that ARE LOCATED WITHIN T HE WATERSHED OF A NITRO GEN–IMPAIRED 1
BODY OF WATER , AND THIRD TO FAILING SYSTEMS THAT the Department determines 2
are a threat to public health or water quality, grants or loans for up to 100% of: 3
A. The costs attributable to upgrading an on–site sewage 4
disposal system to the best available technology for the removal of nitrogen; 5
B. The cost difference between a conventional on–site sewage 6
disposal system and a system that utilizes the best available technology for the removal of 7
nitrogen; 8
C. The cost of repairing or replacing a failing on–site sewage 9
disposal system with a system that uses the best available technology for nitrogen removal; 10
D. The cost, up to the sum of the costs authorized under item 11
B of this item for each individual system, of replacing multiple on–site sewage disposal 12
systems located in the same community with a new community sewerage system that is 13
owned by a local government and that meets enhanced nutrient removal standards; or 14
E. The cost, up to the sum of the costs authorized under item 15
C of this item for each individual system, of connecting a property using an on–site sewage 16
disposal system to an existing municipal wastewater facility that is achieving, or has signed 17
a funding agreement with the Department and is under construction to achieve, enhanced 18
nutrient removal or biological nutrient removal level treatment, including payment of the 19
principal, but not interest, of debt issued by a local government for such connection costs; 20
2. The reasonable costs of the Department, not to exceed 8% 21
of the funds deposited into the separate account, to: 22
A. Implement an education, outreach, and upgrade program 23
to advise owners of on–site sewage disposal systems and holding tanks on the proper 24
maintenance of the systems and tanks and the availability of grants and loans under item 25
1 of this item; 26
B. Review and approve the design and construction of on–site 27
sewage disposal system or holding tank upgrades; 28
C. Issue grants or loans as provided under item 1 of this item; 29
and 30
D. Provide technical support for owners of upgraded 31
on–site sewage disposal systems or holding tanks to operate and maintain the upgraded 32
systems; 33
3. A portion of the reasonable costs of a local public entity 34
that has been delegated by the Department under § 1–301(b) of this article to administer 35
and enforce environmental laws, not to exceed 10% of the funds deposited into the separate 36 SENATE BILL 117 5
account, to implement regulations adopted by the Department for on–site sewage disposal 1
systems that utilize the best available technology for the removal of nitrogen; 2
4. Subject to paragraph (7) of this subsection, financial 3
assistance to low–income homeowners, as defined by the Department, for up to 50% of the 4
cost of an operation and maintenance contract of up to 5 years for an on–site sewage 5
disposal system that utilizes nitrogen removal technology; 6
5. Subject to paragraph (8) of this subsection, a local 7
jurisdiction to provide financial assistance to eligible homeowners for the reasonable cost 8
of pumping out an on–site sewage disposal system, at least once every 5 years, unless a 9
more frequent pump out schedule is recommended during an inspection, not to exceed 10% 10
of the funds allocated to the local jurisdiction; and 11
6. In fiscal years 2020 and 2021, financial assistance to a 12
local jurisdiction for the development of a septic stewardship plan that meets the 13
requirements under paragraph (8)(iii)2 of this subsection; and 14
(ii) Transfer 40% of the funds to the Maryland Agriculture Water 15
Quality Cost Share Program in the Department of Agriculture in order to fund cover crop 16
activities. 17
(3) Funding for the costs identified in paragraph (2)(i)1 of this subsection 18
shall be provided in the following order of priority: 19
(i) For owners of all levels of income, the costs identified in 20
paragraph (2)(i)1A and B of this subsection; and 21
(ii) For [low–income] LOW– AND MODERATE –INCOME owners, as 22
defined by the Department, the costs identified in paragraph (2)(i)1C of this subsection: 23
1. First, for best available technologies for nitrogen removal; 24
and 25
2. Second, for other wastewater treatment systems. 26
(4) Funding for the costs identified in paragraph (2)(i)1D of this subsection 27
may be provided if: 28
(i) The environmental impact of the on–site sewage disposal system 29
is documented by the local government and confirmed by the Department; 30
(ii) It can be demonstrated that: 31
1. The replacement of the on–site sewage disposal system 32
with a new community sewerage system is more cost effective for nitrogen removal than 33
upgrading each individual on–site sewage disposal system; or 34 6 SENATE BILL 117
2. The individual replacement of the on–site sewage disposal 1
system is not feasible; and 2
(iii) The new community sewerage system will only serve lots that 3
have received a certificate of occupancy, or equivalent certificate, [on or before October 1, 4
2008] AT LEAST 15 YEARS BEFORE JULY 1 OF THE YEAR IN WHICH THE APPLICATION 5
FOR FUNDING IS MADE . 6
(5) Funding for the costs identified in paragraph (2)(i)1E of this subsection 7
may be provided only if all of the following conditions are met: 8
(i) The environmental impact of the on–site sewage disposal system 9
is documented by the local government and confirmed by the Department; 10
(ii) It can be demonstrated that: 11
1. The replacement of the on–site sewage disposal system 12
with service to an existing municipal wastewater facility that is achieving, or has signed a 13
funding agreement with the Department and is under construction to achieve, enhanced 14
nutrient removal or biological nutrient removal level treatment is more cost–effective for 15
nitrogen removal than upgrading the individual on–site sewage disposal system; or 16
2. The individual replacement of the on–site sewage disposal 17
system is not feasible; 18
(iii) The project is consistent with the county’s comprehensive plan 19
and water and sewer master plan; 20
(iv) 1. The on–site sewage disposal system was installed [as of 21
October 1, 2008] AT LEAST 15 YEARS BEFORE JULY 1 OF THE YEAR IN WHICH THE 22
APPLICATION FOR FUND ING IS MADE, and the property the system serves is located in a 23
priority funding area, in accordance with § 5–7B–02 of the State Finance and Procurement 24
Article; or 25
2. The on–site sewage disposal system was installed [as of 26
October 1, 2008] AT LEAST 15 YEARS BEFORE JULY 1 OF THE YEAR IN WHICH THE 27
APPLICATION FOR FUND ING IS MADE, the property the system serves is not located in a 28
priority funding area, and the project meets the requirements under § 5–7B–06 of the State 29
Finance and Procurement Article and is consistent with a public health area of concern: 30
A. Identified in the county water and sewer plan; or 31
B. Certified by a county environmental health director with 32
concurrence by the Department and, if funding is approved, subsequently added to the 33
county water and sewer plan within a time frame jointly agreed on by the Department and 34 SENATE BILL 117 7
the county that takes into consideration the county’s water and sewer plan update and 1
amendment process; and 2
(v) The funding agreement for a project that meets the conditions for 3
funding under subparagraph (iv)2 of this paragraph includes provisions to ensure: 4
1. Denial of access for any future connections that are not 5
included in the project’s proposed service area; and 6
2. That the project will not unduly impede access to funding 7
for upgrading individual on–site sewage disposal systems in the county with best available 8
technology for nitrogen removal. 9
Article – State Finance and Procurement 10
11–203. 11
(a) Except as provided in subsection (b) of this section, this Division II does not 12
apply to: 13
(1) procurement by: 14
(xviii) the Department of Natural Resources, for negotiating or entering 15
into grants, agreements, or partnerships with nonprofit entities related to conservation 16
service opportunities; [and] 17
(xix) the State Archives for preservation, conservation, proper care, 18
restoration, and transportation of fine art or decorative art that is: 19
1. in the custody of the Commission on Artistic Property; and 20
2. owned by or loaned to the State; AND 21
(XX) THE DEPARTMENT OF THE ENVIRONMENT FOR BEST 22
AVAILABLE NITROGEN R EMOVAL TECHNOLOGIES FOR ON–SITE SEWAGE DISPOSAL 23
SYSTEMS THAT QUALIFY FOR FUNDING UNDER § 9–1605(H)(2) OF THE 24
ENVIRONMENT ARTICLE, INCLUDING: 25
1. REQUESTING INFORMATI ON FROM VENDORS ; 26
2. RANKING AND EVALUATI NG BEST AVAILABLE 27
TECHNOLOGIES ; AND 28
3. ESTABLISHING PERFORM ANCE–BASED FUNDING 29
LEVELS AS PROVIDED I N § 9–1108.1 OF THE ENVIRONMENT ARTICLE; 30
8 SENATE BILL 117
(2) procurement by a unit from: 1
(i) another unit; 2
(ii) a political subdivision of the State; 3
(iii) an agency of a political subdivision of the State; 4
(iv) a government, including the government of another state, of the 5
United States, or of another country; 6
(v) an agency or political subdivision of a government; or 7
(vi) a bistate, multistate, bicounty, or multicounty governmental 8
agency; or 9
(3) procurement in support of enterprise activities for the purpose of: 10
(i) direct resale; or 11
(ii) remanufacture and subsequent resale. 12
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect July 13
1, 2026. 14