2013 Maryland Code
ENVIRONMENT
§ 9-1605 - Maryland Water Quality Revolving Loan Fund
§9-1605.
(a) (1) There is a Maryland Water Quality Revolving Loan Fund. The Water Quality Fund shall be maintained and administered by the Administration in accordance with the provisions of this subtitle and such rules or program directives as the Secretary or the Board may from time to time prescribe.
(2) The Water Quality Fund is a special, continuing, nonlapsing fund which is not subject to § 7-302 of the State Finance and Procurement Article and which shall be available in perpetuity for the purpose of providing financial assistance in accordance with the provisions of this subtitle and Title VI of the Federal Water Pollution Control Act.
(3) Subject to the provisions of any applicable bond resolution regarding the holding or application of amounts in the Water Quality Fund, the Treasurer shall separately hold, and the Comptroller shall account for, the Water Quality Fund.
(4) (i) Except as provided in subparagraph (ii) of this paragraph, and subject to the provisions of any applicable bond resolution governing the investment of amounts in the Water Quality Fund, the Water Quality Fund shall be invested and reinvested in the same manner as other State funds.
(ii) The Administration, in cooperation with the Treasurer, may establish a linked deposit program to carry out the purposes of this subtitle and Title VI of the Federal Water Pollution Control Act.
(5) Any investment earnings shall be retained to the credit of the Water Quality Fund.
(6) The Water Quality Fund shall be subject to biennial audit by the Office of Legislative Audits as provided for in § 2-1220 of the State Government Article.
(b) There shall be deposited in the Water Quality Fund:
(1) Federal capitalization grants and awards or other federal assistance received by the State pursuant to Title VI of the Federal Water Pollution Control Act and any funds transferred to the Water Quality Fund pursuant to § 302 of the federal Safe Drinking Water Act;
(2) Funds appropriated by the General Assembly for deposit to the Water Quality Fund;
(3) Payments received from any borrower in repayment of a loan, including amounts withheld by the State Comptroller and paid to the Administration pursuant to a pledge made by a borrower under § 9-1606(d) of this subtitle or § 7-222 of the State Finance and Procurement Article;
(4) Net proceeds of bonds issued by the Administration;
(5) Interest or other income earned on the investment of moneys in the Water Quality Fund; and
(6) Any additional moneys made available from any sources, public or private, for the purposes for which the Water Quality Fund has been established.
(c) (1) The Administration may establish accounts and subaccounts within the Water Quality Fund as may be considered desirable to:
(i) Effectuate the purposes of this subtitle;
(ii) Comply with the provisions of any bond resolution;
(iii) Meet the requirements of any federal law, or of any federal grant or award to the Water Quality Fund; or
(iv) Meet any rules or program directives established by the Secretary or the Board.
(2) The accounts and subaccounts established under paragraph (1) of this subsection may include:
(i) A federal receipts account;
(ii) A State receipts account;
(iii) A management and administration expense account;
(iv) A bond proceeds account;
(v) An account to segregate a portion or portions of the revenues or corpus of the Water Quality Fund as security for bonds of the Administration;
(vi) A loan repayment account; and
(vii) An investment earnings account.
(d) Amounts in the Water Quality Fund may be used only:
(1) To make loans, on the condition that:
(i) The loans are made at or below market interest rates, including interest free loans, at terms not to exceed 20 years;
(ii) Annual principal and interest payments will commence not later than 1 year after completion of any wastewater facility and all loans will be fully amortized not later than 20 years after project completion;
(iii) The local government borrower will establish a dedicated source of revenue for repayment of loans;
(iv) In the case of a wastewater facility owned by a borrower other than a local government, the borrower will provide adequate security for repayment of loans; and
(v) The Water Quality Fund will be credited with all payments of principal and interest on all loans;
(2) To buy or refinance debt obligations of local governments at or below market rates, if such debt obligations were incurred after March 7, 1985;
(3) To guarantee, or purchase insurance for, bonds, notes, or other evidences of obligation issued by a local government for the purpose of financing all or a portion of the cost of a wastewater facility, if such action would improve credit market access or reduce interest rates;
(4) As a source of revenue or security for the payment of principal and interest on bonds issued by the Administration if the proceeds of the sale of such bonds will be deposited in the Water Quality Fund;
(5) To earn interest on Water Quality Fund accounts;
(6) To establish a linked deposit program to promote loans for controlling nonpoint sources of pollution and protecting the quality of the waters of the State;
(7) For the reasonable costs of administering the Water Quality Fund and conducting activities under Title VI of the Federal Water Pollution Control Act;
(8) For any other purpose authorized by Title VI of the Federal Water Pollution Control Act or § 302 of the federal Safe Drinking Water Act; and
(9) To provide financial assistance in the form of grants, negative interest loans, forgiveness of principal, subsidized interest rates, and any other form of financial assistance as authorized or required by:
(i) The American Recovery and Reinvestment Act of 2009, as may be amended and supplemented;
(ii) Title VI of the Federal Water Pollution Control Act;
(iii) § 302 of the federal Safe Drinking Water Act; or
(iv) Federal appropriations or authorization acts.
(e) The costs of administering the Water Quality Fund shall be paid from federal capitalization grants and awards, from bond sale proceeds, and from amounts received from borrowers pursuant to loan agreements, and not from any State moneys appropriated to the Fund, except general funds of the State used to match federal capitalization grants and awards to the Water Quality Fund.
§ 9-1605 - 1. Maryland Drinking Water Revolving Loan Fund
(a) Established; maintenance; purpose; accounting; investment; audit. --
(1) There is a Maryland Drinking Water Revolving Loan Fund. The Drinking Water Loan Fund shall be maintained and administered by the Administration in accordance with the provisions of this subtitle and such rules or program directives as the Secretary or the Board may from time to time prescribe.
(2) The Drinking Water Loan Fund is a special, continuing, nonlapsing fund which is not subject to § 7-302 of the State Finance and Procurement Article and which shall be available in perpetuity for the purpose of providing financial assistance in accordance with the provisions of this subtitle and the federal Safe Drinking Water Act.
(3) Subject to the provisions of any applicable bond resolution regarding the holding or application of amounts in the Drinking Water Loan Fund, the Treasurer shall separately hold, and the Comptroller shall account for, the Drinking Water Loan Fund.
(4) (i) Except as provided in subparagraph (ii) of this paragraph, and subject to the provisions of any applicable bond resolution governing the investment of amounts in the Drinking Water Loan Fund, the Drinking Water Loan Fund shall be invested and reinvested in the same manner as other State funds.
(ii) The Administration, in cooperation with the Treasurer, may establish a linked deposit program to carry out the purposes of this subtitle and the federal Safe Drinking Water Act.
(5) Any investment earnings shall be retained to the credit of the Drinking Water Loan Fund.
(6) The Drinking Water Loan Fund shall be subject to biennial audit by the Office of Legislative Audits as provided for in § 2-1220 of the State Government Article.
(7) The Administration shall operate the Drinking Water Loan Fund in accordance with §§ 9-1616 through 9-1621, inclusive, of this subtitle.
(b) Sources of Fund. -- There shall be deposited in the Drinking Water Loan Fund:
(1) Federal grants and awards or other federal assistance received by the State for the purpose of making loans to borrowers for water supply systems and any funds transferred from the Water Quality Fund pursuant to § 302 of the federal Safe Drinking Water Act;
(2) Funds appropriated by the General Assembly for deposit to the Drinking Water Loan Fund;
(3) Payments received from borrowers for deposit to the Drinking Water Loan Fund in repayment of a loan, including amounts withheld by the State Comptroller and paid to the Administration pursuant to a pledge made by a borrower under § 9-1606(d) of this subtitle or § 7-222 of the State Finance and Procurement Article;
(4) Net proceeds of bonds issued by the Administration;
(5) Interest or other income earned on the investment of moneys in the Drinking Water Loan Fund; and
(6) Any additional moneys made available from any sources, public or private, for the purposes for which the Drinking Water Loan Fund has been established.
(c) Establishment of accounts and subaccounts. -- The Administration may from time to time establish accounts and subaccounts within the Drinking Water Loan Fund as may be deemed desirable to effectuate the purposes of this subtitle, to comply with the provisions of any bond resolution, to meet the requirements of any federal law, or of any federal grant or award to the Drinking Water Loan Fund, or to meet any rules or program directives established by the Secretary or the Board.
(d) Uses. -- Amounts in the Drinking Water Loan Fund may be used only:
(1) To make loans at or below market rates on the condition that:
(i) The local government borrower will establish a dedicated source of revenue;
(ii) In the case of a water supply system owned by a borrower other than a local government, the borrower shall provide adequate security for the repayment of the loan;
(iii) The Drinking Water Loan Fund will be credited with all payments of principal and interest on all loans; and
(iv) Annual principal and interest payments will commence not later than 1 year after completion of any drinking water facility and, except as provided in § 130 of the federal Safe Drinking Water Act, all loans will be fully amortized not later than 20 years after project completion;
(2) To buy or refinance debt obligations of local governments issued by a local government for the purposes of financing all or a portion of the cost of a water supply system at or below market rates, if such debt obligations were incurred after July 1, 1993;
(3) To guarantee or purchase insurance for bonds, notes, or other evidences of indebtedness issued by a local government for the purposes of financing all or a portion of the cost of a water supply system, if such action would improve credit market access or reduce interest rates;
(4) As a source of revenue or security for the payment of principal and interest on bonds issued by the Administration if the proceeds of the sale of such bonds will be deposited in the Drinking Water Loan Fund;
(5) To earn interest on Drinking Water Loan Fund accounts;
(6) For the reasonable costs of administering the Drinking Water Loan Fund and conducting activities under any federal law that may apply to federal deposits to the Drinking Water Loan Fund;
(7) To establish a linked deposit program for loans in accordance with this subtitle and the federal Safe Drinking Water Act;
(8) For loan subsidies for disadvantaged communities as provided by the federal Safe Drinking Water Act, including but not limited to loan forgiveness, provided that such loan subsidies shall not exceed 30% of the annual federal capitalization grant received by the Administration;
(9) For any other purpose authorized for any federal funds deposited in the Drinking Water Loan Fund including, without limitation, any purpose authorized by the federal Safe Drinking Water Act, including source water protection expenditures eligible for assistance from the Drinking Water Loan Fund; and
(10) To provide financial assistance in the form of grants, negative interest loans, forgiveness of principal, subsidized interest rates, and any other form of financial assistance as authorized or required by the American Recovery and Reinvestment Act of 2009, as may be amended and supplemented.
(e) Costs of administration. -- The costs of administering the Drinking Water Loan Fund shall be paid from federal grants and awards, from bond sale proceeds, and from amounts received from borrowers pursuant to loan agreements, and may not be paid from any State moneys appropriated to the Drinking Water Loan Fund, except general funds of the State used to match federal grants and awards to the Drinking Water Loan Fund.
§ 9-1605 - 2. Bay Restoration Fund [Subject to amendment effective July 1, 2030; amended version follows this section]
(a) Established; legislative intent. --
(1) There is a Bay Restoration Fund.
(2) It is the intent of the General Assembly that the Bay Restoration Fund be:
(i) Used, in part, to provide the funding necessary to upgrade any of the wastewater treatment facilities that are located in the State or used by citizens of the State in order to achieve enhanced nutrient removal where it is cost-effective to do so; and
(ii) Available for treatment facilities discharging into the Atlantic Coastal Bays or other waters of the State, but that priority be given to treatment facilities discharging into the Chesapeake Bay.
(3) The Bay Restoration Fund shall be maintained and administered by the Administration in accordance with the provisions of this section and any rules or program directives as the Secretary or the Board may prescribe.
(4) There is established a Bay Restoration Fee to be paid by any user of a wastewater facility, an onsite sewage disposal system, or a holding tank that:
(i) Is located in the State; or
(ii) Serves a Maryland user and is eligible for funding under this subtitle.
(b) Bay Restoration Fee. --
(1) (i) Beginning on July 1, 2012, the Bay Restoration Fee is:
1. For each residential dwelling that receives an individual sewer bill and each user of an onsite sewage disposal system or a holding tank that receives a water bill:
A. $ 2.50 per month if the wastewater generated by a residential dwelling is treated at a wastewater facility that does not discharge into the Chesapeake Bay Watershed or the Coastal Bays Watershed;
B. $ 2.50 per month if the onsite sewage disposal system or holding tank is not located within the Chesapeake Bay Watershed or the Coastal Bays Watershed;
C. $ 5.00 per month if the wastewater generated by a residential dwelling is treated at a wastewater facility that does discharge into the Chesapeake Bay Watershed or the Coastal Bays Watershed; and
D. $ 5.00 per month if the wastewater onsite sewage disposal system or holding tank is located within the Chesapeake Bay Watershed or the Coastal Bays Watershed;
2. For each user of an onsite sewage disposal system that does not receive a water bill:
A. $ 30 per year if the onsite sewage disposal system is not located within the Chesapeake Bay Watershed or the Coastal Bays Watershed; or
B. $ 60 per year if the onsite sewage disposal system is located within the Chesapeake Bay Watershed or the Coastal Bays Watershed;
3. For each user of a sewage holding tank that does not receive a water bill:
A. $ 30 per year if the sewage holding tank is not located within the Chesapeake Bay Watershed or the Coastal Bays Watershed; and
B. $ 60 per year if the sewage holding tank is located within the Chesapeake Bay Watershed or the Coastal Bays Watershed; and
4. For a building or group of buildings under single ownership or management that receives a sewer bill and that contains multiple residential dwellings that do not receive an individual sewer bill or for a nonresidential user:
A. For each equivalent dwelling unit not exceeding 2,000 equivalent dwelling units, $ 2.50 per month if the wastewater generated by a building or group of buildings containing multiple residential dwellings is treated at a wastewater facility that does not discharge into the Chesapeake Bay Watershed or the Coastal Bays Watershed;
B. For each equivalent dwelling unit not exceeding 2,000 equivalent dwelling units, $ 5.00 per month if the wastewater generated by a building or group of buildings containing multiple residential dwellings is treated at a wastewater facility that does discharge into the Chesapeake Bay Watershed or the Coastal Bays Watershed; and
C. For each equivalent dwelling unit exceeding 2,000 equivalent dwelling units, zero.
(ii) For a nonresidential user, the Bay Restoration Fee may be calculated based on an estimate of equivalent dwelling units of wastewater effluent generated, if the nonresidential user's wastewater bill is based on wastewater generated and not on water usage.
(2) (i) For a residential dwelling that receives an individual sewer bill, a user of an onsite sewage disposal system or a holding tank that receives a water bill, a building or group of buildings under single ownership or management that receives a water and sewer bill and that contains multiple residential dwellings that do not receive an individual sewer bill, and a nonresidential user, the restoration fee shall be:
1. Stated in a separate line on the sewer or water bill, as appropriate, that is labeled "Bay Restoration Fee"; and
2. Collected for each calendar quarter, unless a local government or billing authority for a water or wastewater facility established some other billing period on or before January 1, 2004.
(ii) 1. A. If the user does not receive a water bill, for users of an onsite sewage disposal system and for users of a sewage holding tank, the county in which the onsite sewage disposal system or holding tank is located shall be responsible for collecting the restoration fee.
B. A county may negotiate with a municipal corporation located within the county for the municipal corporation to collect the restoration fee from onsite sewage disposal systems and holding tanks located in the municipal corporation.
2. The governing body of each county, in consultation with the Bay Restoration Fund Advisory Committee, shall determine the method and frequency of collecting the restoration fee under subsubparagraph 1 of this subparagraph.
(3) The total fee imposed under paragraph (1) of this subsection may not exceed $ 120,000 annually for a single site.
(4) (i) For purposes of measuring average daily wastewater flow, the local government or billing authority for a wastewater facility shall use existing methods of measurement, which may include water usage or other estimation methods.
(ii) The averaging period is:
1. The billing period established by the local government or billing authority; or
2. If a billing period is not established by the local government or billing authority, a quarter of a calendar year.
(5) (i) The Bay Restoration Fee under this subsection may not be reduced as long as bonds are outstanding.
(ii) Any change in the manner of determining the Bay Restoration Fee may not reduce the amount of funds available for the payment of outstanding bonds.
(c) Exemptions. -- A user of a wastewater facility is exempt from paying the restoration fee if:
(1) (i) 1. The user's wastewater facility's average annual effluent nitrogen and phosphorus concentrations, as reported in the facility's State discharge monitoring reports for the previous calendar year, demonstrate that the facility is achieving enhanced nutrient removal, as defined under § 9-1601(m) of this subtitle; or
2. The Department has determined that the wastewater facility does not discharge nitrogen or phosphorus and is not required to monitor for nitrogen or phosphorus in its discharge permit; and
(ii) The user's wastewater facility has not received a State or federal grant for that facility;
(2) (i) The user's wastewater facility discharges to groundwater and the annual average nutrient concentrations in the wastewater prior to discharge to groundwater have not exceeded 3 milligrams per liter total nitrogen and 0.3 milligrams per liter total phosphorus, as demonstrated by analysis of the groundwater from monitoring wells located on the property and as reported in discharge monitoring reports for the previous calendar year; and
(ii) The user's wastewater facility has not received a federal or State grant for that facility; or
(3) The Department determines that:
(i) The user's wastewater facility discharges noncontact cooling water, water from dewatering operations, or reclaimed wastewater from a facility whose users pay in to the Fund; and
(ii) The discharge does not result in a net increase in loading of nutrients compared to the intake water.
(d) Collection; hardship exemption. --
(1) Subject to the approval of the Administration, a local government or a billing authority for a water or wastewater facility shall establish a program to exempt from the requirements of this section a residential dwelling able to demonstrate substantial financial hardship as a result of the restoration fee.
(2) (i) Except as provided in subparagraph (ii) of this paragraph, the Bay Restoration Fee shall be collected by the local government or the billing authority for the water or wastewater facility, as appropriate, on behalf of the State.
(ii) For a wastewater facility without a billing authority, the Comptroller may collect the restoration fee from the facility owner.
(3) A local government, billing authority for a water or wastewater facility, or any other authorized collecting agency:
(i) May use all of its existing procedures and authority for collecting a water or sewer bill, an onsite sewage disposal system bill, or a holding tank bill in order to enforce the collection of the Bay Restoration Fee; and
(ii) Shall establish a segregated account for the deposit of funds collected under this section.
(4) (i) This paragraph applies only in Dorchester County.
(ii) An unpaid Bay Restoration Fee shall be a lien against the property served by a wastewater facility, onsite sewage disposal system, or holding tank.
(iii) A notice of lien shall be recorded in the land records of Dorchester County.
(iv) The County Council may collect the Bay Restoration Fee on behalf of the Dorchester County Sanitary District.
(5) (i) In Caroline County, an unpaid Bay Restoration Fee shall be a lien against the property served by a wastewater facility, onsite sewage disposal system, or holding tank.
(ii) A notice of lien shall be recorded in the land records of Caroline County.
(e) Return and remittance; applicable law; powers of Comptroller. --
(1) A local government, the billing authority for a water or wastewater facility, or any other authorized collecting agency shall complete and submit, under oath, a return and remit the restoration fees collected to the Comptroller:
(i) On or before the 20th day of the month that follows the calendar quarter in which the restoration fee was collected; and
(ii) For other periods and on other dates that the Comptroller may specify by regulation, including periods in which no restoration fee has been collected.
(2) Except to the extent of any inconsistency with this subsection, the provisions of Title 13 of the Tax - General Article that are applicable to the sales and use tax shall govern the administration, collection, and enforcement of the restoration fee under this section.
(3) The Comptroller may adopt regulations necessary to administer, collect, and enforce the restoration fee.
(4) (i) From the restoration fee revenue, the Comptroller shall distribute to an administrative cost account the amount that is necessary to administer the fee, which may not exceed 0.5% of the fees collected by the Comptroller.
(ii) After making the distribution required under subparagraph (i) of this paragraph, the Comptroller shall deposit the restoration fee in the Bay Restoration Fund.
(5) The State Central Collection Unit may collect delinquent accounts under this section in accordance with § 3-302 of the State Finance and Procurement Article.
(f) Nature of Fund; accounting, investment, and audits. --
(1) (i) The Bay Restoration Fund is a special, continuing, nonlapsing fund that is not subject to § 7-302 of the State Finance and Procurement Article and shall be available in perpetuity for the purpose of providing financial assistance in accordance with the provisions of this section.
(ii) Money in the Fund may not revert or be transferred to the General Fund or a special fund of the State.
(2) The Bay Restoration Fund shall be available for the purpose of providing financial assistance in accordance with the provisions of this section for:
(i) Eligible costs of projects relating to planning, design, construction, and upgrades of wastewater facilities to achieve enhanced nutrient removal as required by the conditions of a grant agreement and a discharge permit; and
(ii) All projects identified in subsections (h) and (i) of this section.
(3) Subject to the provisions of any applicable bond resolution regarding the holding or application of amounts in the Bay Restoration Fund, the Treasurer shall separately hold, and the Comptroller shall account for, the Bay Restoration Fund.
(4) Subject to the provisions of any applicable bond resolution governing the investment of amounts in the Bay Restoration Fund, the Bay Restoration Fund shall be invested and reinvested in the same manner as other State funds.
(5) Any investment earnings shall be retained to the credit of the Bay Restoration Fund.
(6) The Bay Restoration Fund shall be subject to audit by the Office of Legislative Audits as provided under § 2-1220 of the State Government Article.
(7) The Administration shall operate the Bay Restoration Fund in accordance with §§ 9-1616 through 9-1621 of this subtitle.
(g) Deposits. -- There shall be deposited in the Bay Restoration Fund:
(1) Funds received from the restoration fee;
(2) Net proceeds of bonds issued by the Administration;
(3) Interest or other income earned on the investment of money in the Bay Restoration Fund; and
(4) Any additional money made available from any sources, public or private, for the purposes for which the Bay Restoration Fund has been established.
(h) Separate accounting for and use of certain funds. --
(1) With regard to the funds collected under subsection (b)(1)(i)1, from users of an onsite sewage disposal system or holding tank that receive a water bill, (i)2, and (i)3 of this section, beginning in fiscal year 2006, the Comptroller shall:
(i) Establish a separate account within the Bay Restoration Fund; and
(ii) Disburse the funds as provided under paragraph (2) of this subsection.
(2) The Comptroller shall:
(i) Deposit 60% of the funds in the separate account to be used for:
1. Subject to paragraph (3) of this subsection, with priority first given to failing systems and holding tanks located in the Chesapeake and Atlantic Coastal Bays Critical Area and then to failing systems that the Department determines are a threat to public health or water quality, grants or loans for up to 100% of:
A. The costs attributable to upgrading an onsite sewage disposal system to the best available technology for the removal of nitrogen;
B. The cost difference between a conventional onsite sewage disposal system and a system that utilizes the best available technology for the removal of nitrogen;
C. The cost of repairing or replacing a failing onsite sewage disposal system with a system that uses the best available technology for nitrogen removal;
D. The cost, up to the sum of the costs authorized under item B of this item for each individual system, of replacing multiple onsite sewage disposal systems located in the same community with a new community sewerage system that is owned by a local government and that meets enhanced nutrient removal standards; or
E. The cost, up to the sum of the costs authorized under item C of this item for each individual system, of connecting a property using an onsite sewage disposal system to an existing municipal wastewater facility that is achieving enhanced nutrient removal level treatment; and
2. The reasonable costs of the Department, not to exceed 8% of the funds deposited into the separate account, to:
A. Implement an education, outreach, and upgrade program to advise owners of onsite sewage disposal systems and holding tanks on the proper maintenance of the systems and tanks and the availability of grants and loans under item 1 of this item;
B. Review and approve the design and construction of onsite sewage disposal system or holding tank upgrades;
C. Issue grants or loans as provided under item 1 of this item; and
D. Provide technical support for owners of upgraded onsite sewage disposal systems or holding tanks to operate and maintain the upgraded systems; and
(ii) Transfer 40% of the funds to the Maryland Agriculture Water Quality Cost Share Program in the Department of Agriculture in order to fund cover crop activities.
(3) (i) Funding for the costs identified in paragraph (2)(i)1 of this subsection shall be provided in the following order of priority:
1. For owners of all levels of income, the costs identified in paragraph (2)(i)1A and B of this subsection; and
2. For low-income owners, as defined by the Department, the costs identified in paragraph (2)(i)1C of this subsection:
A. First, for best available technologies for nitrogen removal; and
B. Second, for other wastewater treatment systems.
(ii) Funding for the costs identified in paragraph (2)(i)1D of this subsection may be provided if:
1. The environmental impact of the onsite sewage disposal system is documented by the local government and confirmed by the Department;
2. It can be demonstrated that:
A. The replacement of the onsite sewage disposal system with a new community sewerage system is more cost effective for nitrogen removal than upgrading each individual onsite sewage disposal system; or
B. The individual replacement of the onsite sewage disposal system is not feasible; and
3. The new community sewerage system will only serve lots that have received a certificate of occupancy, or equivalent certificate, on or before October 1, 2008.
(iii) Funding for the costs identified in paragraph (2)(i)1E of this subsection may be provided only if all of the following conditions are met:
1. The environmental impact of the onsite sewage disposal system is documented by the local government and confirmed by the Department;
2. It can be demonstrated that:
A. The replacement of the onsite sewage disposal system with service to an existing municipal wastewater facility that is achieving enhanced nutrient removal level treatment is more cost-effective for nitrogen removal than upgrading the individual onsite sewage disposal system; or
B. The individual replacement of the onsite sewage disposal system is not feasible;
3. The project is consistent with the county's comprehensive plan and water and sewer master plan;
4. The onsite sewage disposal system was installed as of October 1, 2008, and the property the system serves is located in a priority funding area, in accordance with § 5-7B-02 of the State Finance and Procurement Article; and
5. The local government has adopted a policy or procedure that will guarantee that any future connection to an existing municipal wastewater facility that is funded under paragraph (2)(i)1E of this subsection will meet all of the requirements under this subparagraph.
(4) The Comptroller, in consultation with the Administration, may establish any other accounts and subaccounts within the Bay Restoration Fund as necessary to:
(i) Effectuate the purposes of this subtitle;
(ii) Comply with the provisions of any bond resolution;
(iii) Meet the requirements of any federal or State law or of any grant or award to the Bay Restoration Fund; and
(iv) Meet any rules or program directives established by the Secretary or the Board.
(i) Use of Fund. --
(1) In this subsection, "eligible costs" means the additional costs that would be attributable to upgrading a wastewater facility from biological nutrient removal to enhanced nutrient removal, as determined by the Department.
(2) Funds in the Bay Restoration Fund shall be used only:
(i) To award grants for up to 100% of eligible costs of projects relating to planning, design, construction, and upgrade of a wastewater facility for flows up to the design capacity of the wastewater facility, as approved by the Department, to achieve enhanced nutrient removal in accordance with paragraph (3) of this subsection;
(ii) 1. In fiscal years 2005 through 2009, inclusive, for a portion of the costs of projects relating to combined sewer overflows abatement, rehabilitation of existing sewers, and upgrading conveyance systems, including pumping stations, not to exceed an annual total of $ 5,000,000;
2. In fiscal years 2010 and thereafter, for a portion of the operation and maintenance costs related to the enhanced nutrient removal technology, which may not exceed 10% of the total restoration fee collected from users of wastewater facilities under this section by the Comptroller annually;
3. In fiscal years 2018 and thereafter, after payment of outstanding bonds and the allocation of funds to other required uses of the Bay Restoration Fund for funding in the following order of priority:
A. For funding an upgrade of a wastewater facility to enhanced nutrient removal at wastewater facilities with a design capacity of 500,000 gallons or more per day;
B. For funding for the most cost-effective enhanced nutrient removal upgrades at wastewater facilities with a design capacity of less than 500,000 gallons per day;
C. For costs identified under subsection (h)(2)(i)1 of this section; and
D. With respect to a local government that has enacted and implemented a system of charges under § 4-204 of this article to fully fund the implementation of a stormwater management program, for grants to the local government for a portion of the costs of the most cost-effective and efficient stormwater control measures, as determined and approved by the Department, from the restoration fees collected annually by the Comptroller from users of wastewater facilities under this section;
(iii) As a source of revenue or security for the payment of principal and interest on bonds issued by the Administration if the proceeds of the sale of the bonds will be deposited in the Bay Restoration Fund;
(iv) To earn interest on Bay Restoration Fund accounts;
(v) For the reasonable costs of administering the Bay Restoration Fund, which may not exceed 1.5% of the total restoration fees imposed on users of wastewater facilities that are collected by the Comptroller annually;
(vi) For the reasonable administrative costs incurred by a local government or a billing authority for a water or wastewater facility collecting the restoration fees, in an amount not to exceed 5% of the total restoration fees collected by that local government or billing authority;
(vii) For future upgrades of wastewater facilities to achieve additional nutrient removal or water quality improvement, in accordance with paragraphs (6) and (7) of this subsection;
(viii) For costs associated with the issuance of bonds; and
(ix) Subject to the allocation of funds and the conditions under subsection (h) of this section, for projects related to the removal of nitrogen from onsite sewage disposal systems and cover crop activities.
(3) The grant agreement and State discharge permit, if applicable, shall require an owner of a wastewater facility to operate the enhanced nutrient removal facility in a manner that optimizes the nutrient removal capability of the facility in order to achieve enhanced nutrient removal performance levels.
(4) The grant agreement shall require a grantee to demonstrate, to the satisfaction of the Department, that steps were taken to include small business enterprises, minority business enterprises, and women's business enterprises by:
(i) Placing qualified small business enterprises, minority business enterprises, and women's business enterprises on solicitation lists;
(ii) Assuring that small business enterprises, minority business enterprises, and women's business enterprises are solicited whenever they are potential sources;
(iii) Dividing total requirements, when economically feasible, into small tasks or quantities to permit maximum participation of small business enterprises, minority business enterprises, and women's business enterprises;
(iv) Establishing delivery schedules, where the requirement permits, that encourage participation by small business enterprises, minority business enterprises, and women's business enterprises; and
(v) Using the services and assistance of the Maryland Department of Transportation and the Governor's Office of Minority Affairs in identifying and soliciting small business enterprises, minority business enterprises, and women's business enterprises.
(5) If the steps required under paragraph (4) of this subsection are not demonstrated to the satisfaction of the Department, the Department may withhold financial assistance for the project.
(6) (i) All wastewater facilities serving Maryland users that have contributed to the Bay Restoration Fund are eligible for grants under this section, including the Blue Plains Wastewater Treatment Plant in the District of Columbia.
(ii) Grants issued under paragraph (2)(i) of this subsection for upgrades to the Blue Plains Wastewater Treatment Plant may be awarded only if each party to the Blue Plains Intermunicipal Agreement of 1985 contributes a proportional share of the upgrade costs in accordance with the Blue Plains Intermunicipal Agreement of 1985, as revised and updated.
(7) Priority for funding an upgrade of a wastewater facility shall be given to enhanced nutrient removal upgrades at wastewater facilities with a design capacity of 500,000 gallons or more per day.
(8) (i) The eligibility and priority ranking of a project shall be determined by the Department based on criteria established in regulations adopted by the Department, in accordance with subsection (k) of this section.
(ii) The criteria adopted by the Department shall include, as appropriate, consideration of:
1. The cost-effectiveness in providing water quality benefit;
2. The water quality benefit to a body of water identified by the Department as impaired under Section 303(d) of the Clean Water Act;
3. The readiness of a wastewater facility to proceed to construction; and
4. The nitrogen and phosphorus loads discharged by a wastewater facility.
(9) A wastewater facility that has not been offered or has not received funds from the Department under this section or from any other fund in the Department may not be required to upgrade to enhanced nutrient removal levels, except as otherwise required under federal or State law.
(j) Bay Restoration Fund Advisory Committee. --
(1) There is a Bay Restoration Fund Advisory Committee.
(2) The Committee consists of the following members:
(i) The Secretaries of the Environment, Agriculture, Planning, Natural Resources, and Budget and Management, or their designees;
(ii) One member of the Senate, appointed by the President of the Senate;
(iii) One member of the House of Delegates, appointed by the Speaker of the House of Delegates;
(iv) Two individuals representing publicly owned wastewater facilities, appointed by the Governor;
(v) Two individuals representing environmental organizations, appointed by the Governor;
(vi) One individual each from the Maryland Association of Counties and the Maryland Municipal League, appointed by the Governor;
(vii) Two individuals representing the business community, appointed by the Governor;
(viii) Two individuals representing local health departments who have expertise in onsite sewage disposal systems, appointed by the Governor; and
(ix) One individual representing a university or research institute who has expertise in nutrient pollution, appointed by the Governor.
(3) The Governor shall appoint the chairman of the Committee from the designated members of the Committee.
(4) The Committee may consult with any stakeholder group as it deems necessary.
(5) (i) The term of a member is 4 years.
(ii) A member continues to serve until a successor is appointed.
(iii) The terms of the members appointed by the Governor are staggered as required by the terms provided for members of the Committee on October 1, 2004.
(iv) At the end of a term, a member continues to serve until a successor is appointed and qualifies.
(v) A member who is appointed after a term has begun serves only for the rest of the term and until a successor is appointed and qualifies.
(6) The Committee shall:
(i) Perform an analysis of the cost of nutrient removal from wastewater facilities;
(ii) Identify additional sources for funding the Bay Restoration Fund;
(iii) Make recommendations to improve the effectiveness of the Bay Restoration Fund in reducing nutrient loadings to the waters of the State;
(iv) Make recommendations regarding the appropriate increase in the restoration fee to be assessed in fiscal year 2008 and subsequent years as necessary to meet the financing needs of the Bay Restoration Fund;
(v) In consultation with the governing body of each county:
1. Identify users of onsite sewage disposal systems and holding tanks; and
2. Make recommendations to the governing body of each county on the best method of collecting the Bay Restoration Fee from the users of onsite sewage disposal systems and holding tanks that do not receive water bills;
(vi) Advise the Department on the components of an education, outreach, and upgrade program established within the Department under subsection (h)(2)(i)2 of this section;
(vii) Study the availability of money from the Fund for the supplemental assistance program within the Department to provide grants to smaller, economically disadvantaged communities in the State to upgrade their wastewater collection and treatment facilities;
(viii) Advise the Secretary concerning the adoption of regulations as described in subsection (k) of this section; and
(ix) Beginning January 1, 2006, and every year thereafter, report to the Governor and, subject to § 2-1246 of the State Government Article, the General Assembly on its findings and recommendations.
(7) Members of the Committee:
(i) May not receive compensation; but
(ii) Are entitled to reimbursement for expenses under the Standard State Travel Regulations, as provided in the State budget.
(8) The Department of the Environment, Department of Agriculture, Department of Planning, Department of Natural Resources, and Department of Budget and Management shall provide staff support for the Committee.
(k) Joint report. --
(1) Beginning January 1, 2009, and every year thereafter, the Department and the Department of Planning shall jointly report on the impact that a wastewater treatment facility that was upgraded to enhanced nutrient removal during the calendar year before the previous calendar year with funds from the Bay Restoration Fund had on growth within the municipality or county in which the wastewater treatment facility is located.
(2) (i) In preparing the report required under paragraph (1) of this subsection, the Department of the Environment and the Department of Planning shall:
1. Include the number of permits issued for residential and commercial development to be served by the upgraded wastewater treatment facility; and
2. Determine what other appropriate information is to be included in the report.
(ii) In determining the information that should be included in the report under subparagraph (i) of this paragraph, the Department of the Environment and the Department of Planning shall act:
1. In consultation with the Bay Restoration Fund Advisory Committee; and
2. With the assistance of the municipality and county in which an upgraded wastewater treatment facility is located.
(3) The Department and the Department of Planning shall submit the report required under paragraph (1) of this subsection to the President of the Senate, the Speaker of the House, the Senate Budget and Taxation Committee, the Senate Education, Health, and Environmental Affairs Committee, the House Appropriations Committee, the House Environmental Matters Committee, and the Governor, in accordance with § 2-1246 of the State Government Article.
(l) Regulations. -- The Department shall adopt regulations that are necessary or appropriate to carry out the provisions of this section.
§ 9-1605 - 2. Bay Restoration Fund (Amendment effective July 1, 2030.)
(a) Established; legislative intent. --
(1) There is a Bay Restoration Fund.
(2) It is the intent of the General Assembly that the Bay Restoration Fund be:
(i) Used, in part, to provide the funding necessary to upgrade any of the wastewater treatment facilities that are located in the State or used by citizens of the State in order to achieve enhanced nutrient removal where it is cost-effective to do so; and
(ii) Available for treatment facilities discharging into the Atlantic Coastal Bays or other waters of the State, but that priority be given to treatment facilities discharging into the Chesapeake Bay.
(3) The Bay Restoration Fund shall be maintained and administered by the Administration in accordance with the provisions of this section and any rules or program directives as the Secretary or the Board may prescribe.
(4) There is established a Bay Restoration Fee to be paid by any user of a wastewater facility, an onsite sewage disposal system, or a holding tank that:
(i) Is located in the State; or
(ii) Serves a Maryland user and is eligible for funding under this subtitle.
(b) Bay Restoration Fee. --
(1) (i) Beginning on July 1, 2030, the Bay Restoration Fee is:
1. For each residential dwelling that receives an individual sewer bill and each user of an onsite sewage disposal system or a holding tank that receives a water bill, $ 2.50 per month;
2. For each user of an onsite sewage disposal system that does not receive a water bill, $ 30 per year;
3. For each user of a sewage holding tank that does not receive a water bill, $ 30 per year; and
4. For a building or group of buildings under single ownership or management that receives a sewer bill and that contains multiple residential dwellings that do not receive an individual sewer bill or for a nonresidential user:
A. For each equivalent dwelling unit not exceeding 3,000 equivalent dwelling units, $ 2.50 per month;
B. For each equivalent dwelling unit exceeding 3,000 equivalent dwelling units and not exceeding 5,000 equivalent dwelling units, $ 1.25 per month; and
C. For each equivalent dwelling unit exceeding 5,000 equivalent dwelling units, zero.
(ii) For a nonresidential user, the Bay Restoration Fee may be calculated based on an estimate of equivalent dwelling units of wastewater effluent generated, if the nonresidential user's wastewater bill is based on wastewater generated and not on water usage.
(2) (i) For a residential dwelling that receives an individual sewer bill, a user of an onsite sewage disposal system or a holding tank that receives a water bill, a building or group of buildings under single ownership or management that receives a water and sewer bill and that contains multiple residential dwellings that do not receive an individual sewer bill, and a nonresidential user, the restoration fee shall be:
1. Stated in a separate line on the sewer or water bill, as appropriate, that is labeled "Bay Restoration Fee"; and
2. Collected for each calendar quarter, unless a local government or billing authority for a water or wastewater facility established some other billing period on or before January 1, 2004.
(ii) 1. A. If the user does not receive a water bill, for users of an onsite sewage disposal system and for users of a sewage holding tank, the county in which the onsite sewage disposal system or holding tank is located shall be responsible for collecting the restoration fee.
B. A county may negotiate with a municipal corporation located within the county for the municipal corporation to collect the restoration fee from onsite sewage disposal systems and holding tanks located in the municipal corporation.
2. The governing body of each county, in consultation with the Bay Restoration Fund Advisory Committee, shall determine the method and frequency of collecting the restoration fee under subsubparagraph 1 of this subparagraph.
(3) The total fee imposed under paragraph (1) of this subsection may not exceed $ 120,000 annually for a single site.
(4) (i) For purposes of measuring average daily wastewater flow, the local government or billing authority for a wastewater facility shall use existing methods of measurement, which may include water usage or other estimation methods.
(ii) The averaging period is:
1. The billing period established by the local government or billing authority; or
2. If a billing period is not established by the local government or billing authority, a quarter of a calendar year.
(5) (i) The Bay Restoration Fee under this subsection may not be reduced as long as bonds are outstanding.
(ii) Any change in the manner of determining the Bay Restoration Fee may not reduce the amount of funds available for the payment of outstanding bonds.
(c) Exemptions. -- A user of a wastewater facility is exempt from paying the restoration fee if:
(1) (i) 1. The user's wastewater facility's average annual effluent nitrogen and phosphorus concentrations, as reported in the facility's State discharge monitoring reports for the previous calendar year, demonstrate that the facility is achieving enhanced nutrient removal, as defined under § 9-1601(m) of this subtitle; or
2. The Department has determined that the wastewater facility does not discharge nitrogen or phosphorus and is not required to monitor for nitrogen or phosphorus in its discharge permit; and
(ii) The user's wastewater facility has not received a State or federal grant for that facility;
(2) (i) The user's wastewater facility discharges to groundwater and the annual average nutrient concentrations in the wastewater prior to discharge to groundwater have not exceeded 3 milligrams per liter total nitrogen and 0.3 milligrams per liter total phosphorus, as demonstrated by analysis of the groundwater from monitoring wells located on the property and as reported in discharge monitoring reports for the previous calendar year; and
(ii) The user's wastewater facility has not received a federal or State grant for that facility; or
(3) The Department determines that:
(i) The user's wastewater facility discharges noncontact cooling water, water from dewatering operations, or reclaimed wastewater from a facility whose users pay in to the Fund; and
(ii) The discharge does not result in a net increase in loading of nutrients compared to the intake water.
(d) Collection; hardship exemption. --
(1) Subject to the approval of the Administration, a local government or a billing authority for a water or wastewater facility shall establish a program to exempt from the requirements of this section a residential dwelling able to demonstrate substantial financial hardship as a result of the restoration fee.
(2) (i) Except as provided in subparagraph (ii) of this paragraph, the Bay Restoration Fee shall be collected by the local government or the billing authority for the water or wastewater facility, as appropriate, on behalf of the State.
(ii) For a wastewater facility without a billing authority, the Comptroller may collect the restoration fee from the facility owner.
(3) A local government, billing authority for a water or wastewater facility, or any other authorized collecting agency:
(i) May use all of its existing procedures and authority for collecting a water or sewer bill, an onsite sewage disposal system bill, or a holding tank bill in order to enforce the collection of the Bay Restoration Fee; and
(ii) Shall establish a segregated account for the deposit of funds collected under this section.
(4) (i) This paragraph applies only in Dorchester County.
(ii) An unpaid Bay Restoration Fee shall be a lien against the property served by a wastewater facility, onsite sewage disposal system, or holding tank.
(iii) A notice of lien shall be recorded in the land records of Dorchester County.
(iv) The County Council may collect the Bay Restoration Fee on behalf of the Dorchester County Sanitary District.
(5) (i) In Caroline County, an unpaid Bay Restoration Fee shall be a lien against the property served by a wastewater facility, onsite sewage disposal system, or holding tank.
(ii) A notice of lien shall be recorded in the land records of Caroline County.
(e) Return and remittance; applicable law; powers of Comptroller. --
(1) A local government, the billing authority for a water or wastewater facility, or any other authorized collecting agency shall complete and submit, under oath, a return and remit the restoration fees collected to the Comptroller:
(i) On or before the 20th day of the month that follows the calendar quarter in which the restoration fee was collected; and
(ii) For other periods and on other dates that the Comptroller may specify by regulation, including periods in which no restoration fee has been collected.
(2) Except to the extent of any inconsistency with this subsection, the provisions of Title 13 of the Tax - General Article that are applicable to the sales and use tax shall govern the administration, collection, and enforcement of the restoration fee under this section.
(3) The Comptroller may adopt regulations necessary to administer, collect, and enforce the restoration fee.
(4) (i) From the restoration fee revenue, the Comptroller shall distribute to an administrative cost account the amount that is necessary to administer the fee, which may not exceed 0.5% of the fees collected by the Comptroller.
(ii) After making the distribution required under subparagraph (i) of this paragraph, the Comptroller shall deposit the restoration fee in the Bay Restoration Fund.
(5) The State Central Collection Unit may collect delinquent accounts under this section in accordance with § 3-302 of the State Finance and Procurement Article.
(f) Nature of Fund; accounting, investment, and audits. --
(1) (i) The Bay Restoration Fund is a special, continuing, nonlapsing fund that is not subject to § 7-302 of the State Finance and Procurement Article and shall be available in perpetuity for the purpose of providing financial assistance in accordance with the provisions of this section.
(ii) Money in the Fund may not revert or be transferred to the General Fund or a special fund of the State.
(2) The Bay Restoration Fund shall be available for the purpose of providing financial assistance in accordance with the provisions of this section for:
(i) Eligible costs of projects relating to planning, design, construction, and upgrades of wastewater facilities to achieve enhanced nutrient removal as required by the conditions of a grant agreement and a discharge permit; and
(ii) All projects identified in subsections (h) and (i) of this section.
(3) Subject to the provisions of any applicable bond resolution regarding the holding or application of amounts in the Bay Restoration Fund, the Treasurer shall separately hold, and the Comptroller shall account for, the Bay Restoration Fund.
(4) Subject to the provisions of any applicable bond resolution governing the investment of amounts in the Bay Restoration Fund, the Bay Restoration Fund shall be invested and reinvested in the same manner as other State funds.
(5) Any investment earnings shall be retained to the credit of the Bay Restoration Fund.
(6) The Bay Restoration Fund shall be subject to audit by the Office of Legislative Audits as provided under § 2-1220 of the State Government Article.
(7) The Administration shall operate the Bay Restoration Fund in accordance with §§ 9-1616 through 9-1621 of this subtitle.
(g) Deposits. -- There shall be deposited in the Bay Restoration Fund:
(1) Funds received from the restoration fee;
(2) Net proceeds of bonds issued by the Administration;
(3) Interest or other income earned on the investment of money in the Bay Restoration Fund; and
(4) Any additional money made available from any sources, public or private, for the purposes for which the Bay Restoration Fund has been established.
(h) Separate accounting for and use of certain funds. --
(1) With regard to the funds collected under subsection (b)(1)(i)1, from users of an onsite sewage disposal system or holding tank that receive a water bill, (i)(2), and (i)(3) of this section, beginning in fiscal year 2006, the Comptroller shall:
(i) Establish a separate account within the Bay Restoration Fund; and
(ii) Disburse the funds as provided under paragraph (2) of this subsection.
(2) The Comptroller shall:
(i) Deposit 60% of the funds in the separate account to be used for:
1. Subject to paragraph (3) of this subsection, with priority first given to failing systems and holding tanks located in the Chesapeake and Atlantic Coastal Bays Critical Area and then to failing systems that the Department determines are a threat to public health or water quality, grants or loans for up to 100% of:
A. The costs attributable to upgrading an onsite sewage disposal system to the best available technology for the removal of nitrogen;
B. The cost difference between a conventional onsite sewage disposal system and a system that utilizes the best available technology for the removal of nitrogen;
C. The cost of repairing or replacing a failing onsite sewage disposal system with a system that uses the best available technology for nitrogen removal;
D. The cost, up to the sum of the costs authorized under item 1B of this item for each individual system, of replacing multiple onsite sewage disposal systems located in the same community with a new community sewerage system that is owned by a local government and that meets enhanced nutrient removal standards; or
E. The cost, up to the sum of the costs authorized under item 1C of this item for each individual system, of connecting a property using an onsite sewage disposal system to an existing municipal wastewater facility that is achieving enhanced nutrient removal level treatment; and
2. The reasonable costs of the Department, not to exceed 8% of the funds deposited into the separate account, to:
A. Implement an education, outreach, and upgrade program to advise owners of onsite sewage disposal systems and holding tanks on the proper maintenance of the systems and tanks and the availability of grants and loans under item 1 of this item;
B. Review and approve the design and construction of onsite sewage disposal system or holding tank upgrades;
C. Issue grants or loans as provided under item 1 of this item; and
D. Provide technical support for owners of upgraded onsite sewage disposal systems or holding tanks to operate and maintain the upgraded systems; and
(ii) Transfer 40% of the funds to the Maryland Agriculture Water Quality Cost Share Program in the Department of Agriculture in order to fund cover crop activities.
(3) (i) Funding for the costs identified in paragraph (2)(i)1 of this subsection shall be provided in the following order of priority:
1. For owners of all levels of income, the costs identified in paragraph (2)(i)1A and B of this subsection; and
2. For low-income owners, as defined by the Department, the costs identified in paragraph (2)(i)1C of this subsection:
A. First, for best available technologies for nitrogen removal; and
B. Second, for other wastewater treatment systems.
(ii) Funding for the costs identified in paragraph (2)(i)1D of this subsection may be provided if:
1. The environmental impact of the onsite sewage disposal system is documented by the local government and confirmed by the Department;
2. It can be demonstrated that:
A. The replacement of the onsite sewage disposal system with a new community sewerage system is more cost effective for nitrogen removal than upgrading each individual onsite sewage disposal system; or
B. The individual replacement of the onsite sewage disposal system is not feasible; and
3. The new community sewerage system will only serve lots that have received a certificate of occupancy, or equivalent certificate, on or before October 1, 2008.
(iii) Funding for the costs identified in paragraph (2)(i)1E of this subsection may be provided only if all of the following conditions are met:
1. The environmental impact of the onsite sewage disposal system is documented by the local government and confirmed by the Department;
2. It can be demonstrated that:
A. The replacement of the onsite sewage disposal system with service to an existing municipal wastewater facility that is achieving enhanced nutrient removal level treatment is more cost-effective for nitrogen removal than upgrading the individual onsite sewage disposal system; or
B. The individual replacement of the onsite sewage disposal system is not feasible;
3. The project is consistent with the county's comprehensive plan and water and sewer master plan;
4. The onsite sewage disposal system was installed as of October 1, 2008, and the property the system serves is located in a priority funding area, in accordance with § 5-7B-02 of the State Finance and Procurement Article; and
5. The local government has adopted a policy or procedure that will guarantee that any future connection to an existing municipal wastewater facility that is funded under paragraph (2)(i)1E of this subsection will meet all of the requirements under this subparagraph.
(4) The Comptroller, in consultation with the Administration, may establish any other accounts and subaccounts within the Bay Restoration Fund as necessary to:
(i) Effectuate the purposes of this subtitle;
(ii) Comply with the provisions of any bond resolution;
(iii) Meet the requirements of any federal or State law or of any grant or award to the Bay Restoration Fund; and
(iv) Meet any rules or program directives established by the Secretary or the Board.
(i) Use of Fund. --
(1) In this subsection, "eligible costs" means the additional costs that would be attributable to upgrading a wastewater facility from biological nutrient removal to enhanced nutrient removal, as determined by the Department.
(2) Funds in the Bay Restoration Fund shall be used only:
(i) To award grants for up to 100% of eligible costs of projects relating to planning, design, construction, and upgrade of a wastewater facility for flows up to the design capacity of the wastewater facility, as approved by the Department, to achieve enhanced nutrient removal in accordance with paragraph (3) of this subsection;
(ii) 1. In fiscal years 2005 through 2009, inclusive, for a portion of the costs of projects relating to combined sewer overflows abatement, rehabilitation of existing sewers, and upgrading conveyance systems, including pumping stations, not to exceed an annual total of $ 5,000,000;
2. In fiscal years 2010 and thereafter, for a portion of the operation and maintenance costs related to the enhanced nutrient removal technology, which may not exceed 10% of the total restoration fee collected from users of wastewater facilities under this section by the Comptroller annually;
3. In fiscal years 2018 and thereafter, after payment of outstanding bonds and the allocation of funds to other required uses of the Bay Restoration Fund for funding in the following order of priority:
A. For funding an upgrade of a wastewater facility to enhanced nutrient removal at wastewater facilities with a design capacity of 500,000 gallons or more per day;
B. For funding for the most cost-effective enhanced nutrient removal upgrades at wastewater facilities with a design capacity of less than 500,000 gallons per day;
C. For costs identified under subsection (h)(2)(i)1 of this section; and
D. With respect to a local government that has enacted and implemented a system of charges under § 4-204 of this article to fully fund the implementation of a stormwater management program, for grants to the local government for a portion of the costs of the most cost-effective and efficient stormwater control measures, as determined and approved by the Department, from the restoration fees collected annually by the Comptroller from users of wastewater facilities under this section;
(iii) As a source of revenue or security for the payment of principal and interest on bonds issued by the Administration if the proceeds of the sale of the bonds will be deposited in the Bay Restoration Fund;
(iv) To earn interest on Bay Restoration Fund accounts;
(v) For the reasonable costs of administering the Bay Restoration Fund, which may not exceed 1.5% of the total restoration fees imposed on users of wastewater facilities that are collected by the Comptroller annually;
(vi) For the reasonable administrative costs incurred by a local government or a billing authority for a water or wastewater facility collecting the restoration fees, in an amount not to exceed 5% of the total restoration fees collected by that local government or billing authority;
(vii) For future upgrades of wastewater facilities to achieve additional nutrient removal or water quality improvement, in accordance with paragraphs (6) and (7) of this subsection;
(viii) For costs associated with the issuance of bonds; and
(ix) Subject to the allocation of funds and the conditions under subsection (h) of this section, for projects related to the removal of nitrogen from onsite sewage disposal systems and cover crop activities.
(3) The grant agreement and State discharge permit, if applicable, shall require an owner of a wastewater facility to operate the enhanced nutrient removal facility in a manner that optimizes the nutrient removal capability of the facility in order to achieve enhanced nutrient removal performance levels.
(4) The grant agreement shall require a grantee to demonstrate, to the satisfaction of the Department, that steps were taken to include small business enterprises, minority business enterprises, and women's business enterprises by:
(i) Placing qualified small business enterprises, minority business enterprises, and women's business enterprises on solicitation lists;
(ii) Assuring that small business enterprises, minority business enterprises, and women's business enterprises are solicited whenever they are potential sources;
(iii) Dividing total requirements, when economically feasible, into small tasks or quantities to permit maximum participation of small business enterprises, minority business enterprises, and women's business enterprises;
(iv) Establishing delivery schedules, where the requirement permits, that encourage participation by small business enterprises, minority business enterprises, and women's business enterprises; and
(v) Using the services and assistance of the Maryland Department of Transportation and the Governor's Office of Minority Affairs in identifying and soliciting small business enterprises, minority business enterprises, and women's business enterprises.
(5) If the steps required under paragraph (4) of this subsection are not demonstrated to the satisfaction of the Department, the Department may withhold financial assistance for the project.
(6) (i) All wastewater facilities serving Maryland users that have contributed to the Bay Restoration Fund are eligible for grants under this section, including the Blue Plains Wastewater Treatment Plant in the District of Columbia.
(ii) Grants issued under paragraph (2)(i) of this subsection for upgrades to the Blue Plains Wastewater Treatment Plant may be awarded only if each party to the Blue Plains Intermunicipal Agreement of 1985 contributes a proportional share of the upgrade costs in accordance with the Blue Plains Intermunicipal Agreement of 1985, as revised and updated.
(7) Priority for funding an upgrade of a wastewater facility shall be given to enhanced nutrient removal upgrades at wastewater facilities with a design capacity of 500,000 gallons or more per day.
(8) (i) The eligibility and priority ranking of a project shall be determined by the Department based on criteria established in regulations adopted by the Department, in accordance with subsection (k) of this section.
(ii) The criteria adopted by the Department shall include, as appropriate, consideration of:
1. The cost-effectiveness in providing water quality benefit;
2. The water quality benefit to a body of water identified by the Department as impaired under Section 303(d) of the Clean Water Act;
3. The readiness of a wastewater facility to proceed to construction; and
4. The nitrogen and phosphorus loads discharged by a wastewater facility.
(9) A wastewater facility that has not been offered or has not received funds from the Department under this section or from any other fund in the Department may not be required to upgrade to enhanced nutrient removal levels, except as otherwise required under federal or State law.
(j) Bay Restoration Fund Advisory Committee. --
(1) There is a Bay Restoration Fund Advisory Committee.
(2) The Committee consists of the following members:
(i) The Secretaries of the Environment, Agriculture, Planning, Natural Resources, and Budget and Management, or their designees;
(ii) One member of the Senate, appointed by the President of the Senate;
(iii) One member of the House of Delegates, appointed by the Speaker of the House of Delegates;
(iv) Two individuals representing publicly owned wastewater facilities, appointed by the Governor;
(v) Two individuals representing environmental organizations, appointed by the Governor;
(vi) One individual each from the Maryland Association of Counties and the Maryland Municipal League, appointed by the Governor;
(vii) Two individuals representing the business community, appointed by the Governor;
(viii) Two individuals representing local health departments who have expertise in onsite sewage disposal systems, appointed by the Governor; and
(ix) One individual representing a university or research institute who has expertise in nutrient pollution, appointed by the Governor.
(3) The Governor shall appoint the chairman of the Committee from the designated members of the Committee.
(4) The Committee may consult with any stakeholder group as it deems necessary.
(5) (i) The term of a member is 4 years.
(ii) A member continues to serve until a successor is appointed.
(iii) The terms of the members appointed by the Governor are staggered as required by the terms provided for members of the Committee on October 1, 2004.
(iv) At the end of a term, a member continues to serve until a successor is appointed and qualifies.
(v) A member who is appointed after a term has begun serves only for the rest of the term and until a successor is appointed and qualifies.
(6) The Committee shall:
(i) Perform an analysis of the cost of nutrient removal from wastewater facilities;
(ii) Identify additional sources for funding the Bay Restoration Fund;
(iii) Make recommendations to improve the effectiveness of the Bay Restoration Fund in reducing nutrient loadings to the waters of the State;
(iv) Make recommendations regarding the appropriate increase in the restoration fee to be assessed in fiscal year 2008 and subsequent years as necessary to meet the financing needs of the Bay Restoration Fund;
(v) In consultation with the governing body of each county:
1. Identify users of onsite sewage disposal systems and holding tanks; and
2. Make recommendations to the governing body of each county on the best method of collecting the Bay Restoration Fee from the users of onsite sewage disposal systems and holding tanks that do not receive water bills;
(vi) Advise the Department on the components of an education, outreach, and upgrade program established within the Department under subsection (h)(2)(i)2 of this section;
(vii) Study the availability of money from the Fund for the supplemental assistance program within the Department to provide grants to smaller, economically disadvantaged communities in the State to upgrade their wastewater collection and treatment facilities;
(viii) Advise the Secretary concerning the adoption of regulations as described in subsection (k) of this section; and
(ix) Beginning January 1, 2006, and every year thereafter, report to the Governor and, subject to § 2-1246 of the State Government Article, the General Assembly on its findings and recommendations.
(7) Members of the Committee:
(i) May not receive compensation; but
(ii) Are entitled to reimbursement for expenses under the Standard State Travel Regulations, as provided in the State budget.
(8) The Department of the Environment, Department of Agriculture, Department of Planning, Department of Natural Resources, and Department of Budget and Management shall provide staff support for the Committee.
(k) Joint report. --
(1) Beginning January 1, 2009, and every year thereafter, the Department and the Department of Planning shall jointly report on the impact that a wastewater treatment facility that was upgraded to enhanced nutrient removal during the calendar year before the previous calendar year with funds from the Bay Restoration Fund had on growth within the municipality or county in which the wastewater treatment facility is located.
(2) (i) In preparing the report required under paragraph (1) of this subsection, the Department of the Environment and the Department of Planning shall:
1. Include the number of permits issued for residential and commercial development to be served by the upgraded wastewater treatment facility; and
2. Determine what other appropriate information is to be included in the report.
(ii) In determining the information that should be included in the report under subparagraph (i) of this paragraph, the Department of the Environment and the Department of Planning shall act:
1. In consultation with the Bay Restoration Fund Advisory Committee; and
2. With the assistance of the municipality and county in which an upgraded wastewater treatment facility is located.
(3) The Department and the Department of Planning shall submit the report required under paragraph (1) of this subsection to the President of the Senate, the Speaker of the House, the Senate Budget and Taxation Committee, the Senate Education, Health, and Environmental Affairs Committee, the House Appropriations Committee, the House Environmental Matters Committee, and the Governor, in accordance with § 2-1246 of the State Government Article.
(l) Regulations. -- The Department shall adopt regulations that are necessary or appropriate to carry out the provisions of this section.
§ 9-1605 - 3. Chesapeake and Atlantic Coastal Bays Nonpoint Source Fund.
(a) In general. --
(1) There is a Chesapeake and Atlantic Coastal Bays Nonpoint Source Fund.
(2) The Chesapeake and Atlantic Coastal Bays Nonpoint Source Fund shall be maintained and administered by the Administration in accordance with the provisions of this subtitle and such rules or Program directives as the Secretary or the Board may from time to time prescribe.
(b) Purpose. -- The purpose of the Chesapeake and Atlantic Coastal Bays Nonpoint Source Fund is to provide financial assistance for the implementation of urban and suburban stormwater management practices, and stream and wetland restoration.
(c) Source of funds. -- There shall be deposited in the Chesapeake and Atlantic Coastal Bays Nonpoint Source Fund:
(1) Money distributed to the Chesapeake and Atlantic Coastal Bays Nonpoint Source Fund under § 8-2A-04 of the Natural Resources Article and appropriated in the State budget for the Fund;
(2) Net proceeds of bonds issued by the Administration;
(3) Interest or other income earned on the investment of moneys in the Chesapeake and Atlantic Coastal Bays Nonpoint Source Fund; and
(4) Any other moneys from any other source accepted for the benefit of the Fund.
(d) Status; administration; investments. --
(1) The Chesapeake and Atlantic Coastal Bays Nonpoint Source Fund is a special, continuing, nonlapsing fund that is not subject to § 7-302 of the State Finance and Procurement Article.
(2) Money in the Chesapeake and Atlantic Coastal Bays Nonpoint Source Fund may not revert or be transferred to the General Fund of the State.
(3) Subject to the provisions of any applicable bond resolution regarding the holding or application of amounts in the Chesapeake and Atlantic Coastal Bays Nonpoint Source Fund, the Treasurer shall separately hold, and the Comptroller shall account for, the Chesapeake and Atlantic Coastal Bays Nonpoint Source Fund.
(4) Subject to the provision of any applicable bond resolution governing the investment of amounts in the Chesapeake and Atlantic Coastal Bays Nonpoint Source Fund, the Chesapeake and Atlantic Coastal Bays Nonpoint Source Fund shall be invested and reinvested in the same manner as other State funds.
(5) Any investment earnings shall be retained to the credit of the Chesapeake and Atlantic Coastal Bays Nonpoint Source Fund.
(6) The Chesapeake and Atlantic Coastal Bays Nonpoint Source Fund shall be subject to audit by the Office of Legislative Audits as provided under § 2-1220 of the State Government Article.
(7) The Administration may from time to time establish accounts and subaccounts within the Chesapeake and Atlantic Coastal Bays Nonpoint Source Fund as may be deemed desirable to effectuate the purposes of this subtitle, to comply with the provisions of any bond resolution, or to meet any requirement or rules or program directives established by the Secretary or the Board.
(8) The Administration shall operate the Chesapeake and Atlantic Coastal Bays Nonpoint Source Fund in accordance with §§ 9-1607 through 9-1622 of this subtitle.
(e) Use of Fund. -- The Chesapeake and Atlantic Coastal Bays Nonpoint Source Fund shall be used:
(1) To award grants for up to 100 percent of project costs relating to planning, design, and construction of urban and suburban stormwater management practices, and stream and wetland restoration;
(2) As a source of revenue or security for the payment of principal and interest on bonds issued by the Administration if the proceeds of the sale of such bonds will be deposited in the Chesapeake and Atlantic Coastal Bays Nonpoint Source Fund;
(3) For costs associated with the issuance of bonds;
(4) To earn interest on the Chesapeake and Atlantic Coastal Bays Nonpoint Source Fund accounts; and
(5) For the reasonable costs of administering the Chesapeake and Atlantic Coastal Bays Nonpoint Source Fund.
(f) Demonstration of steps to include small businesses and certified minority business enterprises for financial assistance. --
(1) (i) In this subsection the following words have the meanings indicated.
(ii) "Certified minority business enterprise" has the meaning stated in § 14-301 of the State Finance and Procurement Article.
(iii) "Small business" has the meaning stated in § 14-501 of the State Finance and Procurement Article.
(2) For financial assistance over $ 500,000 awarded under the Fund, the grantee shall demonstrate, to the satisfaction of the Department, that steps were taken to include small businesses, certified minority business enterprises, and certified minority business enterprises classified as women-owned businesses by:
(i) Placing small businesses, certified minority business enterprises, and certified minority business enterprises classified as women-owned businesses on solicitation lists;
(ii) Assuring that small businesses, certified minority business enterprises, and certified minority business enterprises classified as women-owned businesses are solicited whenever they are potential sources;
(iii) Dividing total requirements, when economically feasible, into small tasks or quantities to permit maximum participation of small businesses, certified minority business enterprises, and certified minority business enterprises classified as women-owned businesses;
(iv) Establishing delivery schedules, where the requirement permits, that encourage participation by small businesses, certified minority business enterprises, classified as women-owned businesses; and
(v) Using the services and assistance of the Department of Transportation and the Governor's Office of Minority Affairs in identifying and soliciting small businesses, certified minority business enterprises, and certified minority business enterprises classified as women-owned businesses.
(3) In determining whether the grantee took the steps described in paragraph (2) of this subsection, the Department shall consider the availability to the grantee of small businesses, certified minority business enterprises, and certified minority business enterprises classified as women-owned businesses that are capable of completing all or part of the project.
(g) Withholding financial assistance. -- If the steps required under subsection (f) of this section are not demonstrated to the satisfaction of the Department, the Department may withhold financial assistance for the project.
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