In this subtitle the following words have the meanings indicated. “Agricultural operation” means each physical site where a person engages in a business that: Grows, raises, keeps, pastures, or otherwise produces a farm product, including: Any agricultural, horticultural, vegetable, or fruit product of the soil; or Livestock, poultry, eggs, dairy products, nuts, honey, and every product of a farm, a forest, or an orchard; and Has: A gross annual income of $2,500 or more; or Eight or more animal units. “Applicant” means: The owner or operator of an agricultural operation; or A commercial broker or commercial hauler who has contracted with the owner or operator of an agricultural operation to have food processing residuals utilized at that location. “Commercial broker” means a person who: For commercial purposes, assumes temporary control of food processing residuals from an agricultural operation or a food processing plant and transports or arranges the transport of this material to an importing agricultural operation; and Is not working for or under the control of an agricultural operation. “Commercial hauler” means a person that is engaged in the business of hauling, transporting, moving, or land–applying food processing residuals as a contract agent for a farm operator, commercial broker, or food processing plant under the direction of the operator, broker, or processing plant. “Food processing residuals” means an organic material that is: Generated by processing agricultural commodities for human or animal consumption and includes food residuals, food coproducts, food processing wastes, food processing sludges, or any other incidental material whose characteristics are derived from processing agricultural products for human consumption or animal consumption; and Registered with the State Chemist as a soil conditioner. “NRCS” means the Natural Resources Conservation Service. “Permit” means a food processing residuals utilization permit. “Utilize” means: Handling or storing food processing residuals or using food processing residuals for land application; and Transporting food processing residuals to or from a generator of food processing residuals to or from an agricultural operation.

Except as provided in this subtitle, a person may not utilize food processing residuals in the State. A person shall obtain a permit before utilizing food processing residuals in the State. A permit authorizes the permit holder to utilize food processing residuals in conjunction with an agricultural operation in accordance with this subtitle, regulations adopted under this subtitle, and the terms of the permit. A person must have a permit for each site where the person utilizes food processing residuals.

A person may not utilize food processing residuals in conjunction with an agricultural operation unless: The person has a permit; The owner or operator of the agricultural operation: Has a nutrient management plan that meets the requirements of Subtitle 8 of this title; and Is in compliance with the plan; The food processing residuals being utilized are: Registered with the State Chemist; and Applied in accordance with the nutrient management plan; If the person is not the owner or operator of the agricultural operation, the person has obtained the owner or operator’s consent to utilize the food processing residuals in conjunction with the agricultural operation; If the agricultural operation is subject to a discharge permit under § 9–301 of the Environment Article, the owner or operator of the agricultural operation is in compliance with all laws, regulations, and permits governing those permitted activities; and For storage of food processing residuals, the person has obtained any necessary county approval or permits to store material at the agricultural operation.

An applicant for a permit shall: At least 45 days before utilizing the food processing residuals, submit an application to the Department on the form that the Department requires; Certify by signature the truth and accuracy of the completed application; Pay any associated application fees at the same time that the application is submitted; Provide the name and address of any source of food processing residuals that will be utilized, including: The location, capacity, and age of any storage structure at the site where the food processing residuals will be stored; and Any other information about the storage structure that the Department deems necessary in issuing a permit under this subtitle, including evidence: Showing that the structure meets the NRCS Waste Storage Facility No. 313 Conservation Practice standard or an equivalent standard determined by a professional engineer; and Demonstrating any required county approval of the storage structure, including permits required for the structure; Obtain the written consent of the owner or operator of the land where the food processing residuals will be utilized, including an agreement from the owner or operator that the owner or operator will not violate the permit; Agree to allow or secure access to any food processing residuals utilization site for any inspection authorized under this subtitle; Provide the Department with acceptable evidence of a performance bond or other security in the amount that the Department considers sufficient to guarantee the fulfillment of any requirement related to the permit; and Satisfy every other requirement of this subtitle.

Within 10 days after receiving a permit application that includes storing food processing residuals in conjunction with an agricultural operation, the Department shall provide notice by mail to the chair of the legislative body and any elected executive in the county where the food processing residuals will be stored.

The Department may issue a permit to an applicant that satisfies the requirements of this subtitle. The Department may not issue a permit to an applicant if the Department determines that an applicant cannot utilize food processing residuals without: Causing undue risk to: The environment; or Public health, safety, or welfare; or Otherwise violating this subtitle.

Subject to paragraph (2) of this subsection, a permit shall expire on the date the Department sets at the time the permit is issued or renewed. The term of a permit may not last for more than 1 year. The Department may renew a permit if the permit holder: Is in compliance with: The conditions of the permit; The requirements of this subtitle; All applicable regulations established by the Department; and An applicable discharge permit under § 9–301 of the Environment Article; Submits to the Department in a timely manner a renewal application on the form that the Department requires; and Pays a renewal application fee. The Department may refuse to renew a permit if: The permit holder violates this subtitle, any regulation adopted by the Department under this subtitle, or any condition of the permit; The Department determines that continued operation of any area covered by the permit would be injurious to the environment or public health, safety, or welfare; or The Department determines that there is any other good cause.

To maintain a permit in good standing, a permit holder shall: Maintain a performance bond or other security in the amount that the Department considers sufficient to guarantee the fulfillment of any requirement related to the permit; Ensure that food processing residuals are utilized in accordance with: § 8–8A–03 of this subtitle; and Good husbandry and sound agronomic practices; Allow a representative of the Department seeking to inspect a site entry to any area covered by the permit; Keep records regarding the utilization of food processing residuals, including daily records of the source and amount of food processing residuals in each truckload delivered to a site; Take samples in accordance with the method, location, frequency, and manner requirements set by the Department; Provide to the Department or the relevant local health official any information that the Department requires; and Comply with any other requirement set by the Department.

The Department may suspend, revoke, or modify a permit issued under this subtitle in accordance with the Administrative Procedure Act if the Department finds that: The permit application contained false or inaccurate information; There has been a substantial deviation from: The plans, specifications, or other documents approved by the Department; or Any requirement established by the Department; A representative of the Department seeking to inspect a site in accordance with § 8–8A–10 of this subtitle has been refused entry to any area covered by the permit; There is or has been a violation of this subtitle, any regulation adopted under this subtitle, or any condition of the permit; or There is any other good cause as determined by the Department.

To enforce this subtitle and to ensure compliance with a permit, a representative of the Department may enter and inspect, at any reasonable time, any site where food processing residuals are utilized. A permit holder or other person at a site where food processing residuals are utilized may not: Refuse access to the site to any representative of the Department that requests access under this section; or Interfere with any inspection under this subtitle. After completing an inspection under this section, the Department shall issue a stop work order or other order if necessary to obtain compliance with State law, regulations, or a permit.

In addition to any other remedy authorized under this subtitle, the Department may bring an action to enjoin the violation of any law, regulation, or order concerning the utilization of food processing residuals under this subtitle. The right to bring an action under subsection (a) of this section is in addition to and not instead of the right to bring any other action under this subtitle. The Department may not be required to furnish bond. The court shall issue a preliminary injunction if it finds that the permit holder is: Engaging in unlawful conduct in violation of this subtitle; or Engaged in conduct which is causing immediate and irreparable harm to the public.

In addition to any other action authorized under this subtitle, the Department may impose administrative penalties up to $5,000 per day, not to exceed $50,000 in total penalties, for a violation of this subtitle, regulations adopted under this subtitle, or any condition of the permit. The penalty shall be assessed with consideration given to: The willfulness of the violation; The extent to which the existence of the violation was known to the violator but uncorrected by the violator; The extent to which the violator exercised reasonable care; The extent to which the violation resulted in actual harm to the environment or to human health or safety; The nature and degree of injury to or interference with general welfare, health, and property; The extent to which the current violation is part of a recurrent pattern of the same or similar type of violation committed by the violator; and The extent to which the violation creates the potential for harm to the environment or to human health or safety.

There is a Food Processing Residuals Administration Fund. The Department shall set reasonable fees necessary to carry out its responsibilities regulating the utilization of food processing residuals under this title. The fees charged shall be set so as to produce funds to approximate the cost of administering the Department’s responsibilities regulating the utilization of food processing residuals under this title. The Department shall pay all fees collected under the provisions of this subtitle to the Comptroller. The Comptroller shall distribute the fees received from the Department to the Food Processing Residuals Administration Fund. The Food Processing Residuals Administration Fund shall be used exclusively to cover the actual documented direct and indirect costs of fulfilling the statutory and regulatory duties of the Department as provided by the provisions of this title. The Food Processing Residuals Administration Fund is a continuing, nonlapsing special fund that is not subject to § 7–302 of the State Finance and Procurement Article. Any unspent portion of the Food Processing Residuals Administration Fund may not be transferred or revert to the General Fund of the State, but shall remain in the Food Processing Residuals Administration Fund to be used for the purposes specified in this title. The Secretary or the Secretary’s designee shall administer the Fund. Money in the Fund may be expended only for any lawful purpose authorized under the provisions of this title. The accounts and transactions of the Fund shall be subject to audit as provided in § 2–1220 of the State Government Article.

Each person issued a permit under this subtitle shall submit to the Department on a form that the Department requires: A semiannual written statement of the tonnage of food processing residuals utilized in conjunction with an agricultural operation in the State; and Any other information the Department deems necessary in administering this program. The statement required under paragraph (1) of this subsection shall include utilizations for the periods January 1 through June 30 and July 1 through December 31. The permit holder shall keep records necessary or required by the Department to indicate accurately the tonnage of food processing residuals utilized in conjunction with agricultural operations in the State. The Department has the right to examine the records to verify any statement of tonnage.

The Department, in consultation with the Maryland Department of the Environment, shall adopt regulations to carry out this subtitle. The regulations adopted by the Department may include: Adequate standards for hauling food processing residuals; Adequate standards governing the application and suitability of soil conditioners for land application, including standards governing the number of applications per field per season consistent with good husbandry and sound agronomic practices; The crops that are to be grown on land on which food processing residuals may be applied; The character of nearby existing land uses; Acceptable nutrient application rates, including rates for nitrogen, phosphorus, and heavy metals, consistent with recommendations published or accepted by the Department for nutrient management; Reasonable buffer areas to separate any home or other property on which food processing residuals may be applied; Methods for calculating nutrient application rates that are limited by the nutrient requirements of the harvestable crop or cover crop; and Any other standards deemed necessary by the Department.