In this subtitle the following words have the meanings indicated. “Best management practice” means a conservation or pollution control practice that manages soil loss due to farming practices or manages nutrients, animal wastes, or agricultural chemicals so as to minimize movement into the surface waters of the State. “Eligible cost” means a capital expenditure for installing, purchasing, or constructing a best management practice. It does not include the cost of land or interests in land, or the costs of operating or maintaining best management practices. “Fixed natural filter practice” means one of the following practices: The planting of riparian forest buffers; The planting of riparian herbaceous cover; Tree plantings that are: On agricultural land; and Outside a riparian buffer; Wetland restoration; or Pasture management, including rotational grazing systems such as: Livestock fencing; and Watering systems implemented as part of the conversion of cropland to pasture. “Person” means an individual, partnership, corporation, trust, or other business enterprise which as an owner, landlord, or tenant, participates in the operation of a farm. “Pooling agreement” means a written agreement between persons, approved by the Secretary of Agriculture, to perform best management practices and which is intended to solve a mutual pollution problem on different farms. “Project” means a project to prevent or control agriculturally related nonpoint source water pollution by establishing best management practices on a farm.

The General Assembly finds and declares that agriculturally related nonpoint sources of water pollution may potentially contribute to the degradation of the water resources of this State and that prevention and control efforts have been hampered because of the cost and lack of income producing potential in many agricultural practices designed to protect water quality. To assist in the implementation of agricultural practices which minimize water pollution from erosion, animal wastes, nutrients, and agricultural chemicals and to address the water pollution impacts of agriculture, a cost sharing program between the State and eligible applicants is established for the public benefit. The cost sharing program established under this subtitle shall be implemented in conjunction with the “Agricultural Water Quality Management Program for the Control of Sediment and Animal Wastes” of the State Soil Conservation Committee as well as other State and local programs to control water pollution. The Department may not prohibit or limit, through any cost–share agreement, a participant in the cost sharing program established under this subtitle from participating in and receiving compensation from greenhouse gas markets, carbon credits, or soil carbon programs, if the purpose of the compensation is to achieve additional conservation benefits that are consistent with the State’s Chesapeake Bay conservation goals. The Department may enter into partnerships, through formal contracts or memoranda of understanding, with private sector organizations with experience in carbon offset markets or programs in order to: Create statewide or regional partnerships for the purpose of minimizing the costs and maximizing the benefits of voluntary enrollment of farmland in carbon offset market programs; and Assist private landowners with the aggregation of projects to make the projects more saleable in carbon offset market programs.

The Secretaries of Agriculture and the Environment shall, by jointly promulgated rule or regulation: Identify geographic areas in watersheds throughout the State which have a high potential for agriculturally related soil erosion or movement of sediments, animal wastes, or agricultural chemicals into the surface waters of the State; Designate priority areas for cost sharing under this subtitle; and Establish program requirements, including application procedures, eligibility criteria, provisions for monitoring and review, and measures to assure accountability for all cost sharing funds. The selection of projects and the degree of State financial assistance shall be based on: Water quality improvements to be achieved, with consideration given to the cumulative effect of other projects on the same body of water; The estimated economic benefit to the participating farmer from use of the best management practice; and Other relevant factors as determined by regulation. State cost–sharing funds may not be used to: Reestablish agricultural practices which have deteriorated due to the negligence or mismanagement of an applicant; Fund a conservation practice that does not: Address a natural resource concern identified by the U.S. Department of Agriculture’s Natural Resources Conservation Service; or Result in an improved conservation benefit. The Secretary of Agriculture and the Secretary of the Environment shall implement the cost sharing program for a project with the technical assistance of the appropriate soil conservation district. Technical representatives of the soil conservation district shall prepare or approve all design, construction, maintenance or other plans for best management practices and shall provide the necessary degree of layout and construction supervision.

Except as provided in paragraph (2) of this subsection, State cost–sharing funds for a project being considered for State cost–sharing may be made available: For up to 100% of eligible costs, not to exceed a dollar amount of up to $200,000 as determined by a regulation adopted jointly by the Secretary of Agriculture and the Secretary of the Environment; and If: The Department of Agriculture, the soil conservation district, and a person have executed an agreement which, among other things, obligates the person to: Establish, construct, or install the best management practice or fixed natural filter practice in accordance with technical specifications; Maintain the best management practice or fixed natural filter practice for its expected life span; and Provide the required matching funds, if any, for the project; The Board of Public Works has given approval to the project when the proceeds of State bonds are to be used to finance the State share; and The soil conservation district has certified to the Department that the project meets all applicable technical standards, and that all submitted invoices properly represent eligible costs. Consistent with the requirements of this section, State cost–sharing funds may be made available to fund the Whole Watershed Fund established under § 8–2B–03 of the Natural Resources Article. A reduction in State cost–sharing rates for riparian forest buffers, riparian herbaceous cover, wetland restoration, or pasture management may not be based on tons of soil saved or an amortization formula. State cost–sharing rates for pasture management shall be based on the applicable rate established by the U.S. Department of Agriculture’s Environmental Quality Incentives Program. State cost–sharing rates paid for the planting of multiple species of cover crops shall equal or exceed the rates paid for the planting of a single species of cover crop. Except as authorized under subsubparagraph 2 of this subparagraph and before the Department of Agriculture executes a cost–sharing agreement with a farm tenant, it shall obtain the consent of the landlord to the terms and conditions of the agreement. The Department may execute the agreement without the consent of the landlord if: The agreement concerns a short–term project that involves only the planting of a cover crop; and The Department has sent by first–class mail written notice of a cover crop project to the landlord at least 10 calendar days before executing the agreement for the first cover crop project during the term of the lease. The Department may also require the granting to the State of an appropriate security interest in any equipment, structures or similar items purchased with State money. A cost–sharing agreement executed as required under this subtitle may be assigned and transferred to a successor in title of all or part of a tract of land subject to a best management practice. State cost–sharing funds shall be disbursed, on warrant of the Comptroller, only after the Department has determined that the best management practice or fixed natural filter practice has been established, or in the case of equipment, structures, or similar items, that it has been received and properly installed. Payment may be made either to the person when the person has advanced money, or directly to a vendor or contractor in accordance with the written agreement required by this section, or supplemental written agreements with the vendor or contractor. Except as provided in subparagraph (ii) of this paragraph, the Secretary of Agriculture and the Secretary of the Environment shall jointly adopt regulations to implement this subtitle. Regulations solely involving internal management of the cost–sharing program need only be adopted by the Secretary of Agriculture. The Department of Natural Resources shall be consulted before any regulations are adopted to assure coordination with its sediment control and related watershed programs. All regulations adopted under this section shall be approved by the Board of Public Works prior to the use of the proceeds of State bonds in the cost–sharing program. The Department of Agriculture and the Department of the Environment may enter into agreements with appropriate federal and local governmental entities to assist in administering this subtitle.

In this section, “Service” means the Manure Matching Service. The Department shall create a Manure Matching Service. The purpose of the Service is to develop transfer programs and marketing techniques to promote and facilitate the transfer of poultry and livestock manure. The Service shall be implemented in conjunction with the Manure Transportation Project set forth in § 8-704.2 of this subtitle. The Governor shall include in the annual budget bill sufficient funds to carry out this section.

In this section the following words have the meanings indicated. “Commercial poultry producer” means any entity that contracts with a farmer to raise poultry for the producer on property owned or leased by the farmer. “Project” means the Manure Transportation Project. It is the intent of the General Assembly that: The State and the commercial poultry producers shall facilitate the prompt transportation of poultry litter from farms in all areas of the State that experience phosphorus overenrichment; The State shall facilitate the transfer of livestock manure from farms in all parts of the State that experience phosphorus overenrichment; The Project shall encourage voluntary participation to achieve the removal of poultry litter produced by at least 20% of the poultry in the four lower Eastern Shore counties in Maryland; and The Project shall be implemented in conjunction with the Manure Matching Service set forth in § 8–704.1 of this subtitle. The purpose of the Project is to establish a cost share matching program to assist in the transportation of poultry or livestock manure from farms: To be used on land with soil having the capacity to hold additional phosphorus; or To be used in environmentally acceptable ways other than land application. The State shall provide: Funding for the Project by matching, in an amount determined by the Department, the amount of funds contributed by the commercial poultry producer industry for eligible costs, as determined by the Department, associated with the transportation and handling of poultry litter; and Up to 87.5% of the transportation and handling costs, as determined by the Department, per ton for livestock manure. The Department of Agriculture shall adopt regulations authorizing the disbursement of cost–share matching funds consistent with the purposes of the Project. The Department of Agriculture shall provide the assistance necessary to ensure that poultry or livestock manure is tested in accordance with departmental procedures before transportation of the manure occurs.

Failure by a person to establish, install, construct, or maintain a best management practice in accordance with the agreement required to be executed with the Department under § 8-704 of this subtitle shall render the person liable for an amount, to be determined by the Department, of State cost sharing funds paid for practices that are not implemented or maintained. However, a person may not be found liable for inadequate maintenance or destruction of a best management practice if it were caused by an act of nature that could not reasonably be anticipated by the person. The Attorney General, at the request of the Secretary of Agriculture may institute appropriate legal action to enforce the terms and conditions of all cost sharing agreements executed under this subtitle.

To maximize participation in the Conservation Reserve Enhancement Program, in fiscal years 2023 through 2031, inclusive, a landowner who enrolls land planted with a forested streamside buffer shall receive a one–time signing bonus of up to $1,000 per acre of land enrolled. Signing bonuses provided under this section shall be funded with: Money appropriated under subsection (c) of this section; and The amount specified in § 9–1605.2(i)(11)(i) of the Environment Article. For fiscal year 2024, the Governor shall appropriate $2,500,000 in the annual State budget to fund tree planting under this section and other tree planting programs on agricultural land. For each of fiscal years 2025 through 2031, the Governor shall appropriate $500,000 in the annual State budget to fund tree planting under this section and other tree planting programs on agricultural land. Money appropriated under this subsection is supplemental to and may not take the place of funding that would otherwise be appropriated for tree plantings under this section and other tree planting programs on agricultural land.