EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
[Brackets] indicate matter deleted from existing law.
*sb0461*
SENATE BILL 461
M3 5lr2204
By: Senator M. Washington
Introduced and read first time: January 21, 2025
Assigned to: Education, Energy, and the Environment and Budget and Taxation
A BILL ENTITLED
AN ACT concerning 1
Environment – Maryland Water Quality Revolving Loan Fund – Renaming and 2
Alterations 3
FOR the purpose of renaming the Maryland Water Quality Revolving Loan Fund to be the 4
Maryland Water Quality Improvement Revolving Loan Fund; altering the conditions 5
under which the Fund may be used to include supporting certain projects; requiring 6
the Maryland Water Infrastructure Financing Administration to include certain 7
communities and to use a certain scoring system when creating a certain intended 8
use plan; and generally relating to the Maryland Water Quality Improvement 9
Revolving Loan Fund. 10
BY repealing and reenacting, without amendments, 11
Article – Environment 12
Section 1–701(a)(1), (7), and (8) 13
Annotated Code of Maryland 14
(2013 Replacement Volume and 2024 Supplement) 15
BY repealing and reenacting, with amendments, 16
Article – Environment 17
Section 5–5B–02 and 5–5B–05(b) and (c) 18
Annotated Code of Maryland 19
(2013 Replacement Volume and 2024 Supplement) 20
BY repealing and reenacting, without amendments, 21
Article – Environment 22
Section 9–1601(a) 23
Annotated Code of Maryland 24
(2014 Replacement Volume and 2024 Supplement) 25
BY repealing and reenacting, with amendments, 26
Article – Environment 27 2 SENATE BILL 461
Section 9–1601(mm), 9–1605(a)(1) and (2), (d)(15) and (16), and (f) 1
Annotated Code of Maryland 2
(2014 Replacement Volume and 2024 Supplement) 3
BY adding to 4
Article – Environment 5
Section 9–1605(d)(17) 6
Annotated Code of Maryland 7
(2014 Replacement Volume and 2024 Supplement) 8
BY repealing and reenacting, without amendments, 9
Article – State Finance and Procurement 10
Section 5–7B–01(a) 11
Annotated Code of Maryland 12
(2021 Replacement Volume and 2024 Supplement) 13
BY repealing and reenacting, with amendments, 14
Article – State Finance and Procurement 15
Section 5–7B–01(c)(1)(iv) and 6–226(a)(2)(ii)47. 16
Annotated Code of Maryland 17
(2021 Replacement Volume and 2024 Supplement) 18
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 19
That the Laws of Maryland read as follows: 20
Article – Environment 21
1–701. 22
(a) (1) In this section the following words have the meanings indicated. 23
(7) “Overburdened community” means any census tract for which three or 24
more of the following environmental health indicators are above the 75th percentile 25
statewide: 26
(i) Particulate matter (PM) 2.5; 27
(ii) Ozone; 28
(iii) National Air Toxics Assessment (NATA) diesel PM; 29
(iv) NATA cancer risk; 30
(v) NATA respiratory hazard index; 31
(vi) Traffic proximity; 32
SENATE BILL 461 3
(vii) Lead paint indicator; 1
(viii) National Priorities List Superfund site proximity; 2
(ix) Risk Management Plan facility proximity; 3
(x) Hazardous waste proximity; 4
(xi) Wastewater discharge indicator; 5
(xii) Proximity to a Concentrated Animal Feeding Operation (CAFO); 6
(xiii) Percent of the population lacking broadband coverage; 7
(xiv) Asthma emergency room discharges; 8
(xv) Myocardial infarction discharges; 9
(xvi) Low–birth–weight infants; 10
(xvii) Proximity to emitting power plants; 11
(xviii) Proximity to a Toxic Release Inventory (TRI) facility; 12
(xix) Proximity to a brownfields site; 13
(xx) Proximity to mining operations; and 14
(xxi) Proximity to a hazardous waste landfill. 15
(8) “Underserved community” means any census tract in which, according 16
to the most recent U.S. Census Bureau Survey: 17
(i) At least 25% of the residents qualify as low–income; 18
(ii) At least 50% of the residents identify as nonwhite; or 19
(iii) At least 15% of the residents have limited English proficiency. 20
5–5B–02. 21
This subtitle applies to public water systems serving at least 10,000 individuals that: 22
(1) Apply for a new or expanded water appropriation permit; or 23
4 SENATE BILL 461
(2) Apply for State financial assistance including the Maryland Water 1
Quality IMPROVEMENT Revolving Loan Fund as provided in § 9–1605 of this article and 2
any other State funding source. 3
5–5B–05. 4
(b) In reviewing and prioritizing requests by public water systems, as defined by 5
this subtitle, for State financial assistance through the Maryland Water Quality 6
IMPROVEMENT Revolving Loan Fund under § 9–1605 of this article and other State 7
funding sources, the Department shall consider local initiatives and voluntary efforts, and 8
the best management practices set forth for implementation within a financial assistance 9
application. 10
(c) On or before October 1, 2003, the Department shall issue guidelines to public 11
water systems on best management practices for improving water conservation and 12
efficiency in water use, treatment, storage, and transmission, including: 13
(1) Costs and cost–savings associated with implementing examples of 14
specific best management practices; 15
(2) Water conservation associated with implementing specific best 16
management practices; and 17
(3) Priority eligibility for funding through State financial resources for 18
drinking water and wastewater treatment improvements including the Maryland Water 19
Quality IMPROVEMENT Revolving Loan Fund under § 9–1605 of this article and other 20
State or federal financial assistance when best management practices are implemented. 21
9–1601. 22
(a) Unless the context clearly requires otherwise, in this subtitle the following 23
words have the meanings indicated. 24
(mm) “Water Quality Fund” means the Maryland Water Quality IMPROVEMENT 25
Revolving Loan Fund. 26
9–1605. 27
(a) (1) (i) There is a Maryland Water Quality IMPROVEMENT Revolving 28
Loan Fund. 29
(ii) The Water Quality Fund shall be maintained and administered 30
by the Administration in accordance with the provisions of this subtitle and such rules or 31
program directives as the Secretary or the Board may from time to time prescribe. 32
(2) The Water Quality Fund is a special, continuing, nonlapsing fund which 33
is not subject to § 7–302 of the State Finance and Procurement Article and which shall be 34 SENATE BILL 461 5
available in perpetuity for the purpose of providing financial assistance TO PRESERVE , 1
MAINTAIN, AND IMPROVE THE WATER RESOURCES OF THE STATE in accordance with 2
the provisions of this subtitle and Title VI of the Federal Water Pollution Control Act. 3
(d) Amounts in the Water Quality Fund may be used only: 4
(15) To provide loan guarantees for similar revolving funds established by 5
municipalities or intermunicipal agencies; [and] 6
(16) To serve as guarantee for long–term Pay for Success contracts, green 7
bonds, or environmental impact bonds by any public, private, or nonprofit entity for the 8
purchase of outcomes that provide a water quality benefit; AND 9
(17) TO SUPPORT PROJECTS T HAT INVOLVE: 10
(I) DECENTRALIZED WASTEWA TER SYSTEMS; 11
(II) STORMWATER MANAGEMENT INFRASTRUCTURE ; 12
(III) FLOODWATERS ; 13
(IV) FLOODPLAINS; 14
(V) STREAMS; 15
(VI) TRIBUTARIES; 16
(VII) WETLANDS; AND 17
(VIII) TECHNICAL ASSISTANCE FOR PROJECTS UNDER T HIS ITEM. 18
(f) In creating an intended use plan for the Water Quality Fund, the 19
Administration shall [prioritize]: 20
(1) INCLUDE IN THE PLAN: 21
[(1)] (I) Opportunities to provide TECHNICAL assistance to 22
[disadvantaged] OVERBURDENED communities [or communities], AS DEFINED IN § 23
1–701 OF THIS ARTICLE , THAT HAVE BEEN disproportionately [burdened] IMPACTED 24
by environmental harms and risks; and 25
[(2)] (II) Green and blue infrastructure[, with particular focus on natural 26
areas or natural features]; AND 27
6 SENATE BILL 461
(2) USE A SCORING SYSTEM THAT: 1
(I) EVALUATES APPLICATIONS FOR THE FUND TO ENSURE 2
THAT FUNDING PRIORITY IS GIVEN TO UNDERSERVED COMMUNITIES , AS DEFINED 3
IN § 1–701 OF THIS ARTICLE, THAT ARE DISADVANTAGED BY : 4
1. ECONOMIC DISTRESS ; 5
2. HIGH ENVIRONMENTAL BU RDENS; AND 6
3. INSUFFICIENT INFRASTR UCTURE; AND 7
(II) REVIEWS AND CONSIDERS APPLICATIONS THAT WE RE 8
PREVIOUSLY DENIED AND THAT INCLUDED PROJEC TS THAT: 9
1. ALIGNED WITH THE STATE’S LAWS AND GOALS 10
INVOLVING: 11
A. CLIMATE CHANGE; 12
B. FLOOD MITIGATION ; AND 13
C. WATER QUALITY; 14
2. PROVIDED TECHNICAL AS SISTANCE FOR IMPROVING 15
INSUFFICIENT OR FAIL ED INFRASTRUCTURE ; AND 16
3. INVOLVED: 17
A. OVERBURDENED COMMUNIT IES; AND 18
B. AREAS WITH SIGNIFICAN T ENVIRONMENTAL HARM . 19
Article – State Finance and Procurement 20
5–7B–01. 21
(a) In this subtitle the following words have the meanings indicated. 22
(c) (1) “Growth–related project” means only the items set forth below: 23
(iv) funding by the Department of the Environment, for any project 24
under: 25
SENATE BILL 461 7
1. §§ 9–1601 through 9 –1605 (Water Quality 1
IMPROVEMENT Revolving Loan Fund) of the Environment Article except for funding 2
nonpoint source pollution projects; 3
2. §§ 9–420 through 9–426 (Water Supply Financial 4
Assistance Program) of the Environment Article; and 5
3. the supplemental assistance program authorized under 6
Title 9, Subtitle 3, Part VI of the Environment Article; and 7
6–226. 8
(a) (2) (ii) The provisions of subparagraph (i) of this paragraph do not apply 9
to the following funds: 10
47. Maryland Water Quality IMPROVEMENT Revolving Loan 11
Fund; 12
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect July 13
1, 2025. 14