EXPLANATION: CAPITALS INDICATE MATTER ADDED TO EXIS TING 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.
*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
Committee Report: Favorable with amendments
Senate action: Adopted
Read second time: February 16, 2025
CHAPTER ______
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 available 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 without amendments, 13
Article – Environment 14
Section 9–1108.1 and 9–1605.2(h)(2) through (5) Section 9–1605.2(a)(1) and (h)(1) 15
Annotated Code of Maryland 16
(2014 Replacement Volume and 2024 Supplement) 17
BY repealing and reenacting, without with amendments, 18
Article – Environment 19
Section 9–1605.2(a)(1) and (h)(1) 9–1605.2(h)(2) through (5) 20
Annotated Code of Maryland 21
(2014 Replacement Volume and 2024 Supplement) 22 2 SENATE BILL 117
BY repealing and reenacting, with amendments, 1
Article – State Finance and Procurement 2
Section 11–203(a)(1)(xviii) and (xix) 3
Annotated Code of Maryland 4
(2021 Replacement Volume and 2024 Supplement) 5
BY adding to 6
Article – State Finance and Procurement 7
Section 11–203(a)(1)(xx) 8
Annotated Code of Maryland 9
(2021 Replacement Volume and 2024 Supplement) 10
BY repealing and reenacting, without amendments, 11
Article – State Finance and Procurement 12
Section 11–203(a)(2) and (3) 13
Annotated Code of Maryland 14
(2021 Replacement Volume and 2024 Supplement) 15
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 16
That the Laws of Maryland read as follows: 17
Article – Environment 18
9–1108.1. 19
(a) (1) In this section the following words have the meanings indicated. 20
(2) “Nitrogen removal technology” has the meaning stated in § 9–1108 of 21
this subtitle. 22
(3) “On–site sewage disposal system” has the meaning stated in § 9–1108 23
of this subtitle. 24
(4) “Vendor” means a person that sells, offers for sale, or distributes 25
on–site sewage disposal systems that utilize nitrogen removal technology. 26
(b) (1) In accordance with subsection (c) of this section, the Department shall 27
evaluate and rank all best available nitrogen removal technologies for on–site sewage 28
disposal systems to advise local governments and residents of the State of approved 29
technologies that qualify for funding under § 9–1605.2(h)(2) of this title. 30
(2) THE DEPARTMENT MAY USE TH E EVALUATION AND RAN KING 31
UNDER PARAGRAPH (1) OF THIS SUBSECTION T O ESTABLISH PERFO RMANCE–BASED 32
FUNDING LEVELS FOR E ACH BEST AVAILABLE N ITROGEN REMOVAL TECH NOLOGY 33
FOR ON–SITE SEWAGE DISPOSAL SYSTEMS THAT QUALIFI ES FOR FUNDING UNDER § 34
9–1605.2(H)(2) OF THIS TITLE. 35 SENATE BILL 117 3
(3) The Department shall: 1
(i) Make available the evaluation [and], ranking, AND ELIGIBLE 2
FUNDING LEVELS of all best available nitrogen removal technologies required under this 3
section on the Department’s [Web site] WEBSITE; and 4
(ii) Provide the evaluation [and], ranking, AND ELIGIBLE 5
FUNDING LEVELS of all best available nitrogen removal technologies to a county, 6
municipality, or resident of the State in any correspondence relating to approved 7
technologies that qualify for funding under § 9–1605.2(h)(2) of this title. 8
(c) The Department shall evaluate and rank all best available nitrogen removal 9
technologies for on–site sewage disposal systems based on: 10
(1) The total amount of nitrogen reduction the technology can achieve; 11
(2) The total cost of the technology, including the estimated annual cost of 12
operation and maintenance, including electricity costs; 13
(3) The cost per pound of the nitrogen reduction; and 14
(4) Any other information the Department determines is necessary. 15
(d) Beginning June 1, 2011, and every 2 years thereafter, the Department shall 16
request information from vendors necessary to carry out the requirements of this section. 17
9–1605.2. 18
(a) (1) There is a Bay Restoration Fund. 19
(h) (1) With regard to the funds collected under subsection (b)(1)(i)1 of this 20
section from users of an on–site sewage disposal system or holding tank that receive a water 21
bill and subsection (b)(1)(i)2 and 3 of this section, beginning in fiscal year 2006, the 22
Comptroller shall: 23
(i) Establish a separate account within the Bay Restoration Fund; 24
and 25
(ii) Disburse the funds as provided under paragraph (2) of this 26
subsection. 27
(2) The Comptroller shall: 28
(i) Deposit 60% of the funds in the separate account to be used for: 29
4 SENATE BILL 117
1. Subject to paragraphs (3), (4), (5), and (6) of this 1
subsection, with priority first given to failing systems and holding tanks located in the 2
Chesapeake and Atlantic Coastal Bays Critical Area [and then], SECOND to failing 3
systems that ARE LOCATED WITHIN THE WATERSHED OF A N ITROGEN–IMPAIRED 4
BODY OF WATER , AND THIRD A MARYLAND CHESAPEAKE BAY 8–DIGIT WATERSHED 5
THAT HAS A RELATIVE EFFECTIVENESS FOR TO TAL NITROGEN REDUCTI ON OF 9.24 6
OR HIGHER BASED ON T HE CHESAPEAKE BAY WATERSHED MODEL , THIRD TO 7
FAILING SYSTEMS THAT ARE LOCATED WITHIN T HE 500–YEAR FLOODPLAIN , AND 8
FOURTH TO FAILING SYSTEMS THAT the Department determines are a threat to public 9
health or water quality, grants or loans for up to 100% of: 10
A. The costs attributable to upgrading an on–site sewage 11
disposal system to the best available technology for the removal of nitrogen; 12
B. The cost difference between a conventional on–site sewage 13
disposal system and a system that utilizes the best available technology for the removal of 14
nitrogen; 15
C. The cost of repairing or replacing a failing on–site sewage 16
disposal system with a system that uses the best available technology for nitrogen removal; 17
D. The cost, up to the sum of the costs authorized under item 18
B of this item for each individual system, of replacing multiple on–site sewage disposal 19
systems located in the same community with a new community sewerage system that is 20
owned by a local government and that meets enhanced nutrient removal standards; or 21
E. The cost, up to the sum of the costs authorized under item 22
C of this item for each individual system, of connecting a property using an on–site sewage 23
disposal system to an existing municipal wastewater facility that is achieving, or has signed 24
a funding agreement with the Department and is under construction to achieve, enhanced 25
nutrient removal or biological nutrient removal level treatment, including payment of the 26
principal, but not interest, of debt issued by a local government for such connection costs; 27
2. The reasonable costs of the Department, not to exceed 8% 28
of the funds deposited into the separate account, to: 29
A. Implement an education, outreach, and upgrade program 30
to advise owners of on–site sewage disposal systems and holding tanks on the proper 31
maintenance of the systems and tanks and the availability of grants and loans under item 32
1 of this item; 33
B. Review and approve the design and construction of on–site 34
sewage disposal system or holding tank upgrades; 35
C. Issue grants or loans as provided under item 1 of this item; 36
and 37 SENATE BILL 117 5
D. Provide technical support for owners of upgrade d 1
on–site sewage disposal systems or holding tanks to operate and maintain the upgraded 2
systems; 3
3. A portion of the reasonable costs of a local public entity 4
that has been delegated by the Department under § 1–301(b) of this article to administer 5
and enforce environmental laws, not to exceed 10% of the funds deposited into the separate 6
account, to implement regulations adopted by the Department for on–site sewage disposal 7
systems that utilize the best available technology for the removal of nitrogen; 8
4. Subject to paragraph (7) of this subsection, financial 9
assistance to low–income homeowners, as defined by the Department, for up to 50% of the 10
cost of an operation and maintenance contract of up to 5 years for an on–site sewage 11
disposal system that utilizes nitrogen removal technology; 12
5. Subject to paragraph (8) of this subsection, a local 13
jurisdiction to provide financial assistance to eligible homeowners for the reasonable cost 14
of pumping out an on–site sewage disposal system, at least once every 5 years, unless a 15
more frequent pump out schedule is recommended during an inspection, not to exceed 10% 16
of the funds allocated to the local jurisdiction; and 17
6. In fiscal years 2020 and 2021, financial assistance to a 18
local jurisdiction for the development of a septic stewardship plan that meets the 19
requirements under paragraph (8)(iii)2 of this subsection; and 20
(ii) Transfer 40% of the funds to the Maryland Agriculture Water 21
Quality Cost Share Program in the Department of Agriculture in order to fund cover crop 22
activities. 23
(3) Funding for the costs identified in paragraph (2)(i)1 of this subsection 24
shall be provided in the following order of priority: 25
(i) For owners of all levels of income, the costs identified in 26
paragraph (2)(i)1A and B of this subsection; and 27
(ii) For [low–income] LOW– AND MODERATE –INCOME owners, as 28
defined by the Department, the costs identified in paragraph (2)(i)1C of this subsection: 29
1. First, for best available technologies for nitrogen removal; 30
and 31
2. Second, for other wastewater treatment systems. 32
(4) Funding for the costs identified in paragraph (2)(i)1D of this subsection 33
may be provided if: 34
6 SENATE BILL 117
(i) The environmental impact of the on–site sewage disposal system 1
is documented by the local government and confirmed by the Department; 2
(ii) It can be demonstrated that: 3
1. The replacement of the on–site sewage disposal system 4
with a new community sewerage system is more cost effective for nitrogen removal than 5
upgrading each individual on–site sewage disposal system; or 6
2. The individual replacement of the on–site sewage disposal 7
system is not feasible; and 8
(iii) The new community sewerage system will only serve lots that 9
have received a certificate of occupancy, or equivalent certificate, [on or before October 1, 10
2008] AT LEAST 15 YEARS BEFORE JULY 1 OF THE YEAR IN WHICH THE APPLICATION 11
FOR FUNDING IS MADE . 12
(5) Funding for the costs identified in paragraph (2)(i)1E of this subsection 13
may be provided only if all of the following conditions are met: 14
(i) The environmental impact of the on–site sewage disposal system 15
is documented by the local government and confirmed by the Department; 16
(ii) It can be demonstrated that: 17
1. The replacement of the on–site sewage disposal system 18
with service to an existing municipal wastewater facility that is achieving, or has signed a 19
funding agreement with the Department and is under construction to achieve, enhanced 20
nutrient removal or biological nutrient removal level treatment is more cost–effective for 21
nitrogen removal than upgrading the individual on–site sewage disposal system; or 22
2. The individual replacement of the on–site sewage disposal 23
system is not feasible; 24
(iii) The project is consistent with the county’s comprehensive plan 25
and water and sewer master plan; 26
(iv) 1. The on–site sewage disposal system was installed [as of 27
October 1, 2008] AT LEAST 15 YEARS BEFORE JULY 1 OF THE YEAR IN WHICH THE 28
APPLICATION FOR FUND ING IS MADE, and the property the system serves is located in a 29
priority funding area, in accordance with § 5–7B–02 of the State Finance and Procurement 30
Article; or 31
2. The on–site sewage disposal system was installed [as of 32
October 1, 2008] AT LEAST 15 YEARS BEFORE JULY 1 OF THE YEAR IN WHICH THE 33
APPLICATION FOR FUND ING IS MADE, the property the system serves is not located in a 34 SENATE BILL 117 7
priority funding area, and the project meets the requirements under § 5–7B–06 of the State 1
Finance and Procurement Article and is consistent with a public health area of concern: 2
A. Identified in the county water and sewer plan; or 3
B. Certified by a county environmental health director with 4
concurrence by the Department and, if funding is approved, subsequently added to the 5
county water and sewer plan within a time frame jointly agreed on by the Department and 6
the county that takes into consideration the county’s water and sewer plan update and 7
amendment process; and 8
(v) The funding agreement for a project that meets the conditions for 9
funding under subparagraph (iv)2 of this paragraph includes provisions to ensure: 10
1. Denial of access for any future connections that are not 11
included in the project’s proposed service area; and 12
2. That the project will not unduly impede access to funding 13
for upgrading individual on–site sewage disposal systems in the county with best available 14
technology for nitrogen removal. 15
Article – State Finance and Procurement 16
11–203. 17
(a) Except as provided in subsection (b) of this section, this Division II does not 18
apply to: 19
(1) procurement by: 20
(xviii) the Department of Natural Resources, for negotiating or entering 21
into grants, agreements, or partnerships with nonprofit entities related to conservation 22
service opportunities; [and] 23
(xix) the State Archives for preservation, conservation, proper care, 24
restoration, and transportation of fine art or decorative art that is: 25
1. in the custody of the Commission on Artistic Property; and 26
2. owned by or loaned to the State; AND 27
(XX) THE DEPARTMENT OF THE ENVIRONMENT FOR BEST 28
AVAILABLE NITROGEN R EMOVAL TECHNOLOGIES FOR ON–SITE SEWAGE DISPOSAL 29
SYSTEMS THAT QUALIFY FOR FUNDING UNDER § 9–1605(H)(2) OF THE 30
ENVIRONMENT ARTICLE, INCLUDING: 31
8 SENATE BILL 117
1. REQUESTING INFORMATI ON FROM VENDORS ; 1
2. RANKING AND EVALUATI NG BEST AVAILABLE 2
TECHNOLOGIES ; AND 3
3. ESTABLISHING PERFORM ANCE–BASED FUNDING 4
LEVELS AS PROVIDED I N § 9–1108.1 OF THE ENVIRONMENT ARTICLE; 5
(2) procurement by a unit from: 6
(i) another unit; 7
(ii) a political subdivision of the State; 8
(iii) an agency of a political subdivision of the State; 9
(iv) a government, including the government of another state, of the 10
United States, or of another country; 11
(v) an agency or political subdivision of a government; or 12
(vi) a bistate, multistate, bicounty, or multicounty governmental 13
agency; or 14
(3) procurement in support of enterprise activities for the purpose of: 15
(i) direct resale; or 16
(ii) remanufacture and subsequent resale. 17
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect July 18
1, 2026. 19
Approved:
________________________________________________________________________________
Governor.
________________________________________________________________________________
President of the Senate.
________________________________________________________________________________
Speaker of the House of Delegates.