# Environment (GEN)

## Title 5. Water Resources

### Subtitle 5. Appropriation or Use of Waters, Reservoirs, and Dams

#### Section 5-501

(a) In order to conserve, protect, and use water resources of the State in accordance with the best interests of the people of Maryland, it is the policy of the State to control, so far as feasible, appropriation or use of surface waters and groundwaters of the State. Also, it is State policy to promote public safety and welfare and control and supervise, so far as is feasible, construction, reconstruction, and repair of dams, reservoirs, and other waterworks in any waters of the State.

(b)

  (1) In accordance with the policy declared in this section, and provided that it will not jeopardize the State's natural resources, when appropriating groundwater of the State in Carroll, Frederick, or Washington counties, the Department may give priority to a public water system that provides water to:

    (i) A municipal corporation, not including those areas annexed after January 1, 2000; or

    (ii) A priority funding area established on or before January 1, 2000, under Sec. 5-7B-02(6) of the State Finance and Procurement Article.

  (2) The Department may adopt regulations to implement this subsection.

(c) This subtitle is in addition to and not in substitution for any existing laws of the State.

#### Section 5-502

(a) Every person is required to obtain a permit from the Department to appropriate or use or begin to construct any plant, building, or structure which may appropriate or use any waters of the State, whether surface water or groundwater. The permit is obtained upon written application to the Department. The applicant shall provide the Department with satisfactory proof that the proposed withdrawal of water will not jeopardize the State's natural resources.

(b) This section does not apply to:

  (1) Use of water for domestic purposes other than for heating and cooling;

  (2) Use of water for agricultural purposes, if the average annual water use is less than 10,000 gallons per day, except as provided in subsection (c)(2) of this section;

  (3) Use of tidal waters for oyster aquaculture purposes, if the water is returned to the same body of water from which it is appropriated; or

  (4) Use of groundwater at an average annual water use of 5,000 gallons of water per day or less, provided that:

    (i)

      (1) The use is not for a public water system that:

      (A) Serves at least 15 service connections used by year-round residents of the area served by the system; or

      (B) Regularly serves at least 25 year-round residents; or

      (2) The use will not occur within a water management strategy area established by the Department; and

    (ii) The user files a notice of exemption with the Department at least 30 days before the use is proposed to begin.

(c)

  (1) The Department shall issue a permit to a person using water prior to July 1, 1988 for agricultural purposes upon written application to the Department.

  (2) A person using less than an annual average of 10,000 gallons of water per day for agricultural purposes may apply for a permit to appropriate or use waters of the State.

(d) When the Department determines that a water supply emergency exists and available water supplies are inadequate in an area to meet the needs of all persons who have permits under this subtitle, the following uses shall have priority for appropriation or use of water in the order listed:

  (1) Domestic and municipal uses for sanitation, drinking water, and public health and safety;

  (2) Agricultural uses, including the processing of agricultural products; and

  (3) All other uses.

(e) Notwithstanding any other provision of this subtitle, an application for a certificate of public convenience and necessity associated with power plant construction which involves use or diversion of waters of the State made to the Public Service Commission under the Public Utilities Article constitutes an application for the permit required by this section, and the provisions of Sec. 3-306 of the Natural Resources Article apply. If an application is made to the Public Service Commission, the hearing provided for by this subtitle is not required. All evidence relevant to the purposes of this subtitle shall be presented at the hearing held by the Public Service Commission, as required by Sec. 7-207 of the Public Utilities Article. The permit required by this subtitle is included in the certificate of public convenience and necessity issued by the Public Service Commission.

#### Section 5-503

(a)

  (1) A person shall obtain, on written application to the Department, a permit from the Department to:

    (i) Construct, reconstruct, or repair any reservoir, dam, or waterway obstruction;

    (ii) Make, construct, or permit to be made or constructed any change or addition to any reservoir, dam, or waterway obstruction;

    (iii) Make or permit to be made any change in, addition to, or repair of any existing waterway obstruction; or

    (iv) Change, in any manner, in whole or part the course, current, or cross section of any stream or body of water within the State, except tidal waters.

  (2)

    (i) If by March 1, 1982 a flood management plan for Jones Falls is not prepared and approved and implementation begun under Sec. 5-803 of this title, the Department shall adopt regulations limiting construction, reconstruction, or changes in the course, current, or cross section of the channel and floodplain of the Jones Falls in the Patapsco River watershed until such time as a flood management plan for Jones Falls is prepared, approved, and implemented under Subtitle 8 of this title.

    (ii) Regulations adopted pursuant to this paragraph may not apply:

      (1) To floodproofing of any existing structure; or

      (2) If use of the Pennington Avenue sanitary landfill site in Baltimore City as a sanitary landfill is terminated by the end of May 1, 1981, to any construction, reconstruction, development, or use of those properties in Baltimore City comprising and known as the Woodberry Quarry sanitary landfill site.

  (3) Due to variances in floodplain measurements, a new residential permit for construction in the Jones Falls floodplain within 25 feet adjacent to the floodplain may not be approved or issued until the flood management plan for the Jones Falls is prepared, approved, and implemented under Subtitle 8 of this title.

  (4) Regulations adopted by the Department as required under paragraph (2) of this subsection shall be null and void if the Department determines that a flood management plan for the Jones Falls in the Patapsco River has been adopted and implemented.

(b)

  (1) A person is exempt from the requirement of obtaining a permit from the Department if:

    (i) The plans and specifications are approved by the appropriate soil conservation district or the Department's designee;

    (ii) The pond is not located within drainage of the Gwynns Falls, Jones Falls, or Herring Run streams situated in or adjacent to Baltimore City;

    (iii) The pond meets minimum standards for safety set forth in Department rules and regulations;

    (iv) The contributory drainage area is less than 1 square mile (640 acres);

    (v) The dam is not greater than 20 feet in height measured vertically from the lowest point on the top of the dam to the lowest point on the upstream toe of the dam;

    (vi) The pond is a low hazard structure the failure of which is unlikely to cause loss of life or property damage; and

    (vii) The pond is not a wastewater stabilization pond.

  (2) The soil conservation district or the Department's designee shall notify the Department of any pond approved under this subsection.

  (3) Nothing in this subsection is a limitation on the Department's authority under this subtitle.

  (4)

    (i) Each soil conservation district may recommend a fee system to cover the cost of reviewing plans for ponds that are exempt from permit requirements under this subsection.

    (ii) Subject to Sec. 8-311 of the Agriculture Article, any recommended fee system shall take effect upon enactment by the local governing body.

    (iii) Any fees collected under a fee system established in accordance with this paragraph shall be supplemental to county and State funds and may not:

      (1) Be used to reduce county or State funds; or

      (2) Exceed the cost of reviewing the plans.

(c)

  (1) The Department, by regulation, may designate interjurisdictional watersheds in which any impoundment proposal is subject to review and approval by the Department for standards relating to safety and flood control.

  (2) Gwynns Falls, Jones Falls, and Herring Run, situated in or adjacent to Baltimore City, are designated interjurisdictional watersheds.

(d) The provisions of this section do not restrict or limit the Department's jurisdiction over waste treatment structures, including dams, impoundments, ponds, and lagoons or limit the applicability of any other laws administered by the Department.

(e) Agricultural drainage systems, for the purpose of lowering the level of water in the soil, with a total drainage area of 2,500 acres or less are exempt from the requirement of obtaining a permit from the Department, except that drainage systems financed or managed by a public drainage association are exempt from this requirement only if plans for construction, operation, and maintenance have been approved by the Secretary of Agriculture under Sec. 8-603 of the Agriculture Article.

(f) The periodic maintenance of agricultural drainage systems constructed under the auspices of a public drainage or watershed association is exempt from the requirement of obtaining a permit from the Department if:

  (1) The maintenance is performed in accordance with a permit from the Department for the original construction or reconstruction of the drainage system; or

  (2) The maintenance is performed in accordance with an operation and maintenance plan approved by the local soil conservation district and the Secretary of Agriculture under Sec. 8-603 of the Agriculture Article.

(g) The removal or demolition of residential structures is exempt from any permit requirement of this section.

#### Section 5-503.1

(a)

  (1) This section applies to any dam that:

    (i) Has the potential to cause the loss of human life or substantial property damage in the event of structural failure; and

    (ii) Has been designated or verified by the Department as a high hazard or significant hazard dam, as defined in the classification of dams under regulations adopted by the Department.

  (2) This section does not apply to a dam that is licensed by, and subject to the jurisdiction of, the Federal Energy Regulatory Commission if the owner of the dam submits to the Department:

    (i) On or before August 1, 2017, a copy of the existing emergency action plan for the dam; and

    (ii) Within 30 days after filing with the Federal Energy Regulatory Commission any update to the emergency action plan, a copy of the update to the emergency action plan.

(b)

  (1) An owner of a dam subject to this section shall prepare and submit to the Department for approval an emergency action plan in accordance with this section to protect downstream human life and safeguard property in the event of a structural failure or any other emergency.

  (2) An owner of an existing dam subject to this section shall submit a plan to the Department for approval on or before August 1, 2017.

  (3) A person proposing to construct a dam subject to this section shall submit a plan with an application for a permit to construct the dam under Sec. 5-503 of this subtitle.

(c) An emergency action plan shall contain:

  (1) A description of the dam, including its hazard classification;

  (2) Maps or other graphic representations of areas downstream that have the potential to be affected by a structural failure or any other emergency;

  (3) A list of agencies and individuals responsible for monitoring weather and operating conditions at the dam during emergencies;

  (4) Detailed operating procedures for making decisions and taking actions to protect lives and property in areas downstream from the dam in the event of an emergency;

  (5) Procedures for notifying jurisdictions, businesses, and persons who have the potential to be affected by a dam failure or any other emergency;

  (6) A list of emergency management resources and equipment that could be needed in the event of an emergency; and

  (7) Any additional information required by the Department.

(d) On approval of the emergency action plan by the Department, the dam owner shall provide copies of the plan to appropriate State and local emergency management agencies.

(e) Emergency action plans shall be updated annually and submitted to the Department for approval on or before May 1 each year.

(f)

  (1) An owner of a dam subject to this section shall conduct a functional exercise or test of the approved emergency action plan at least once every 5 years.

  (2) The results of the functional exercise or test required under paragraph (1) of this subsection shall be reported in the annual update to the emergency action plan that is submitted in the same year.

(g) The Department may adopt regulations to implement this section.

#### Section 5-504

A person shall obtain a permit from the Department to construct, reconstruct, change, or make an addition to any conduit, pipeline, wire cable, trestle, or other device, structure, or apparatus in, under, through, or over the bed or waters of the Potomac River. The permit is obtained upon written application to the Department. Obtaining, using, and holding this permit is subject severally to the provisions concerning permits found elsewhere in this subtitle.

#### Section 5-505

Each application for a permit required by this subtitle shall be accompanied by maps, drawings, and specifications of proposed use or waterway obstruction, changes, additions, or repairs proposed to be made, and other data and information the Department requires.

#### Section 5-506

(a) Upon application for a permit under this subtitle, and except as otherwise provided in this section, the procedures in Sec. 5-204 of this title shall apply.

(b) Under the following conditions, the Department may waive the notice requirements and the holding of a public informational hearing on a permit application:

  (1) If there is an emergency or a request to make minor repairs, the Department, upon written or oral application, may grant an application to repair any reservoir, dam, or waterway obstruction without notice or hearing. Repair necessary to save life or property may be made without an application, but notice shall be given promptly to the Department;

  (2) If plans of other projects which conform to water resources development plans accepted and adopted by the Department were subject to public hearing, and the Department's review finds no changed conditions in them since the last public review and comment to justify another hearing;

  (3) If temporary structures constructed to provide access across streams during construction operations or to trap sediment or achieve another similar purpose meet minimum design standards the Department establishes, and are removed completely, in a manner acceptable to the Department, within 6 months after need for the structure is terminated;

  (4) If the requested waterway construction permit is for temporary excavation, filling, or grading for the installation of utilities which meet minimum design standards acceptable to the Department and preconstruction contours which are to be reestablished upon installation of the utility;

  (5) If the requested waterway construction permit is for clearing and grading activities disturbing less than 5,000 square feet of land area and disturbing less than 100 cubic yards of earth; or

  (6) If the requested waterway construction permit is for livestock crossing of a stream.

(c) If contiguous property owners and interested persons who receive periodic reports are notified under Sec. 5-204 of this title, the Department may waive the notice requirements of this section and the holding of a public informational hearing on a permit application for roads, bridges, or culverts if they meet minimum design standards acceptable to the Department and construction does not adversely affect known water resources projects.

(d) The Department shall waive notice requirements and the holding of a public hearing if the requested appropriation or use of waters of the State is for an agricultural use in effect prior to July 1, 1993.

(e) Notwithstanding any other requirement of this section:

  (1) The Department may waive the notice and hearing requirements of this section if the appropriation requested is for:

    (i) An average annual water use of 10,000 gallons per day or less; or

    (ii) A construction dewatering project; and

  (2) The Department may waive the holding of a public informational hearing if the requested appropriation or use of waters of the State is greater than an average annual water use of 10,000 gallons per day but less than an average annual water use of 50,000 gallons per day.

#### Section 5-507

(a) Before acting on any permit application, the Department shall weigh all respective public advantages and disadvantages and make all appropriate investigations. If the Department believes from the evidence before the Department and based upon State water resources policy declared in this subtitle that the applicant's plans provide greatest feasible utilization of the waters of the State, adequately preserve public safety, and promote the general public welfare, the Department shall grant the permit to appropriate or use the waters, construct, reconstruct, or repair the proposed reservoir, dam, or waterway obstruction, or accomplish any combination of these objectives. If the Department believes from the evidence before the Department that the proposed appropriation or use of State waters or proposed construction is inadequate, wasteful, dangerous, impracticable or detrimental to the best public interest, the Department may reject the application or suggest modifications to the proposed plans to protect the public welfare and safety.

(b)

  (1) In granting any permit to appropriate or use water or construct any reservoir, dam or waterway obstruction, the Department may include any condition, term, or reservation concerning the character, amount, means, and manner of the appropriation or use or method of construction necessary to preserve proper control in the State and insure the safety and welfare of the people of the State. The Department may determine and specify what provisions to make, if any, in each permit granted to construct a dam or other waterwork for passage of fish.

  (2) Any measuring and reporting of water use required of a permittee by the Department shall be effective and reasonable under the circumstances.

  (3) Any regulations concerning measuring and reporting of agricultural water use or determination of aquifer or stream flow characteristics prior to issuance of a water appropriation permit for an agricultural water use shall be adopted by the Department with the advice and consent of the Secretary of Agriculture.

#### Section 5-508

(a) Appropriation or use of any waters of the State, construction or beginning construction, making or beginning any change, addition, reconstruction, or repair of any reservoir, dam or waterway obstruction, only shall be in conformity with any term, condition, regulation, or restriction of the Department's permit or with any regulation the Department prescribes concerning any construction, change, addition, or repair.

(b)

  (1) Any term, condition, regulation, or restriction imposed on an appropriation or use of waters of the State or on a reservoir, dam, waterway obstruction, or change in the course, current, or cross section of any stream, through a permit issued pursuant to this subtitle, shall be binding on the owner of the permitted land or facility at the time the permit is issued and on any heirs, successors, or assigns of the owner's interest in the land or facility.

  (2) As a condition of permit issuance or renewal under this subtitle to construct, reconstruct, change, add to, or repair any dam or reservoir, the Department shall require the owner of the permitted land or facility to record, in accordance with Sec.Sec. 3-102 and 3-103 of the Real Property Article, a memorandum prepared by the Department of the terms, conditions, regulations, or restrictions applicable to that land or facility. The recording shall be at the expense of the landowner.

#### Section 5-509

(a)

  (1) In this section the following words have the meanings indicated.

  (2) "Asset owner" means the owner or person having control of a water infrastructure asset.

  (3) "Association" means:

    (i) A homeowners association, as defined in Sec. 11B-101 of the Real Property Article;

    (ii) A council of unit owners, as defined in Sec. 11-101 of the Real Property Article; or

    (iii) Any other entity owning or controlling a water infrastructure asset, the owners or members of which are owners of property adjacent to or benefited by the water infrastructure asset.

  (4) "Association member" means an owner or a member of an association.

  (5) "Water infrastructure asset" means a reservoir, a dam, or any other waterway construction.

(b)

  (1) On complaint or the Department's own initiative, the Department may investigate or examine any water infrastructure asset.

  (2) If the Department determines that the water infrastructure asset is unsafe, needs repair, or should be removed because the water infrastructure asset is unsafe and not repairable, the Department shall notify the asset owner in writing to repair or remove the water infrastructure asset, as the situation warrants.

  (3) The repair or removal work shall be completed within a reasonable time, which time shall be prescribed in the Department's notice.

  (4)

    (i) This paragraph applies to a water infrastructure asset that the Department determines meets the criteria specified in paragraph (2) of this subsection.

    (ii) If the Department determines that changes to the water infrastructure asset, including removal of the asset, are a priority for improving fish passage or for other environmental benefits, the Department:

      (1) May partner with the asset owner and an organization that provides resources and expertise to plan, design, or finance changes to water infrastructure assets for the purpose of repairing, removing, or retrofitting the asset in a manner consistent with the Department's objectives; or

      (2) Shall prioritize the use of environmental outcomes, as defined in Sec. 9-1601 of this article, arising from the repair, removal, or retrofit of the water infrastructure asset in any environmental mitigation program identified by the Department.

    (iii) For the purpose of seeking financial assistance under Title 5, Subtitle 4 of the Economic Development Article, if the Department determines that the water infrastructure asset is not a priority under subparagraph (ii) of this paragraph but is a priority for installation of less than 30 megawatts of small hydroelectric power plant capacity, the Department shall provide notice to the Maryland Industrial Development Financing Authority of:

      (1) Any water infrastructure asset identified as a priority for installation of less than 30 megawatts of small hydroelectric power plant capacity under this paragraph; and

      (2) The repair, retrofit, or removal measures identified for the water infrastructure asset in the notice provided under paragraph (2) of this subsection.

(c) If the work is not completed in the time prescribed in the notice:

  (1) The Department may have the work completed at the expense of the asset owner;

  (2) The Department shall charge the asset owner for the costs to complete the work; and

  (3) If repayment is not made within 30 days after written demand, the Department may bring an action in the proper court to recover the costs to complete the work.

(d)

  (1) The Department may take emergency actions necessary to protect life, property, or the environment if:

    (i)

      (1) The Department determines that a water infrastructure asset is in imminent danger of failure; and

      (2) The asset owner has been issued a notice by the Department under subsection (b) of this section and has not completed the work in accordance with the time prescribed in the notice; or

    (ii) The Department determines that:

      (1) A water infrastructure asset is failing; and

      (2) The asset owner is not taking adequate actions to protect life, property, or the environment.

  (2) Emergency actions taken by the Department under this subsection may include:

    (i) Taking control of the water infrastructure asset;

    (ii) Lowering the level of water impounded by the water infrastructure asset by releasing the impounded water or by other means;

    (iii) Completely releasing all water impounded by the water infrastructure asset;

    (iv) Performing any necessary remedial or protective work at the site of the water infrastructure asset, including breaching the water infrastructure asset; and

    (v) Taking any other steps the Department deems necessary to safeguard life, property, or the environment.

  (3) The Department or its agents may enter any property, without prior notice to the owner of the property, if the entry is necessary to carry out emergency actions under this subsection.

  (4) If the Department takes control of a water infrastructure asset under paragraph (2)(i) of this subsection, the Department shall remain in charge and control of the water infrastructure asset until the Department has determined that the water infrastructure asset has been rendered safe or the circumstances requiring the emergency actions have ceased.

  (5) The Department may obtain equipment, personnel, and other resources for emergency actions taken under this subsection through any appropriate means, including emergency procurements under Sec. 13-108 of the State Finance and Procurement Article.

(e)

  (1) Costs incurred by the Department under this section shall:

    (i) Constitute a debt owed to the State; and

    (ii) Be reimbursed to the Department by the asset owner.

  (2) If any such cost remains unreimbursed 30 days after the Department makes a demand for reimbursement from the asset owner, the water infrastructure asset shall be subject to the establishment of a lien in accordance with this section for the payment of the unreimbursed amount.

(f)

  (1) With respect to costs incurred by the Department under this section relating to a water infrastructure asset for which an association is the asset owner, if any such cost remains unreimbursed 30 days after the Department makes a demand for reimbursement from the association, such costs shall be a debt to the State owed, and shall be reimbursed to the Department, by the association members, jointly and severally, notwithstanding any provision of law that would otherwise relieve the association members of such liability.

  (2) If any such cost remains unreimbursed 30 days after the Department makes a demand for reimbursement from the association members, the lots, condominium units, or other property owned by the association members that is adjacent to or benefited by the water infrastructure asset shall be subject to the establishment of a lien in accordance with this section for the payment of the unreimbursed amount.

(g)

  (1) Any lien arising under subsections (e) and (f) of this section shall, to the extent not otherwise expressly prohibited by law, have priority over all other liens and encumbrances perfected after July 1, 2020, on the water infrastructure asset, or the lots, condominium units, or other property owned by the association members that is adjacent to or benefited by the water infrastructure asset.

  (2) The establishment and enforcement of liens arising under subsections (e) and (f) of this section shall be governed by the rules set forth in Title 12, Chapter 300 of the Maryland Rules.

(h) No action may be brought against the State, the Department, or their respective agents or employees for the recovery of damages caused by the partial or total failure of any water infrastructure asset, or the control or operation of any water infrastructure asset, on the ground that the State, the Department, or their respective agents or employees are liable by virtue of any of the following:

  (1) The approval or permitting of the water infrastructure asset;

  (2) The issuance or enforcement of orders relative to maintenance or operation of the water infrastructure asset;

  (3) Control or regulation of the water infrastructure asset;

  (4) Actions taken to protect against failure during an emergency, including any actions taken under this subsection;

  (5) The use of design and construction criteria prepared, approved, or promulgated by the Department; or

  (6) The failure to issue or enforce orders, to control or regulate water infrastructure assets, to take measures to protect against any failure thereof, or to take any emergency actions contemplated by this subsection.

(i) Nothing in this section, and no act or omission of the Department under this section, shall be construed to relieve an asset owner of:

  (1) The legal duties, obligations, or liabilities incident to the ownership or operation of a water infrastructure asset; or

  (2) Any liability for acts or omissions of the asset owner that cause injury or death to any person, damage to any property or the environment, or violation of any law, regulation, or permit, even if acts or omissions of the Department under this section could be deemed an intervening cause of such injury, death, damage, or violation.

(j) This section does not apply to farm ponds used for agricultural purposes.

#### Section 5-509.1

(a) In this section, "dam owner" means the owner or person having control of the normal operation or maintenance of a dam.

(b)

  (1) This section applies to a dam that is:

    (i) Included in the Maryland Dam Inventory; and

    (ii) Not owned by the federal government.

  (2) This section does not apply to a reservoir, dam, waterway obstruction, or small pond that is exempt from permit requirements under Sec. 5-503(b) of this subtitle.

(c) Except as otherwise provided in this subtitle, all dam owners shall register their dams annually with the Department.

(d) Beginning January 1, 2027, to register with the Department, a dam owner shall:

  (1) Submit an application to the Department on the form provided by the Department; and

  (2) Pay to the Department a registration fee.

(e) The registration fee shall be:

  (1) For a low hazard class dam, $200;

  (2) For a significant hazard class dam, $500; and

  (3) For a high hazard class dam, $1,000.

(f) Registration fees collected under this section shall be paid into the Private Dam Repair Fund established under Sec. 5-509.2 of this subtitle.

(g)

  (1) The Department shall establish criteria to fully or partially waive the registration fee under this section due to financial hardship.

  (2) The waiver criteria established under paragraph (1) of this subsection shall prioritize individual homeowners.

#### Section 5-509.2

(a)

  (1) In this section the following words have the meanings indicated.

  (2) "Dam owner" has the meaning stated in Sec. 5-509 of this subtitle.

  (3)

    (i) "Eligible cost" means any cost to be incurred by a dam owner for the repair, emergency repair, or permanent breach of a dam.

    (ii) "Eligible cost" includes construction activities, engineering fees, demolition, excavation, stabilization, and related costs.

  (4) "Fund" means the Private Dam Repair Fund.

  (5) "Loan" means a private dam repair loan made in accordance with this section.

  (6) "Private dam" means a dam that is not owned by the federal government, the State government, or a county or municipal government.

  (7) "Unsafe condition" has the meaning stated in Sec. 5-509 of this subtitle.

(b)

  (1) There is a Private Dam Repair Fund.

  (2) The purpose of the Fund is to provide financial assistance for the repair, upgrade, or removal of private dams in accordance with this subtitle.

  (3) The Maryland Water Infrastructure Financing Administration within the Department shall administer the Fund.

(c)

  (1) The Fund is a special, nonlapsing fund that is not subject to Sec. 7-302 of the State Finance and Procurement Article.

  (2) The State Treasurer shall hold the Fund separately, and the Comptroller shall account for the Fund.

(d) The Fund consists of:

  (1) Dam safety permit fees collected by the Department under Sec. 5-203.2 of this title;

  (2) Dam owner registration fees collected by the Department under Sec. 5-509.1 of this subtitle;

  (3) Payments received from borrowers for deposit into the Fund in repayment of loans issued under subsection (h) of this section, including any loan origination fees;

  (4) Penalties distributed to the Fund under Sec. 5-514(c)(2) of this subtitle;

  (5) Funds appropriated in the State budget to the Fund;

  (6) Interest earnings; and

  (7) Any other money from any other source accepted for the benefit of the Fund.

(e) The Fund may be used only for:

  (1) Providing financial assistance to private dam owners for Department-directed upgrades, repairs, or removals;

  (2) Making loans in accordance with this section;

  (3) Funding emergency repairs and removals of private dams performed by the Department; and

  (4) Reimbursing the administrative cost to the Department of processing and issuing dam safety permits and performing the duties under Sec. 5-509 of this subtitle.

(f)

  (1) The State Treasurer shall invest money of the Fund in the same manner as other State money may be invested.

  (2) Any interest earnings of the Fund shall be credited to the Fund.

(g) Expenditures from the Fund may be made only in accordance with the State budget.

(h)

  (1)

    (i) Beginning July 1, 2028, the Department may provide loans from the Fund to owners of private dams for the purpose of repairing or removing private dams deemed to be in an unsafe condition by the Department.

    (ii) Loans made under this subsection shall be administered by the Maryland Water Infrastructure Financing Administration in accordance with Sec.Sec. 9-1604 and 9-1606 of this article.

  (2)

    (i) The Department may establish criteria for awarding loans under the Fund.

    (ii) Eligible applicants may include dam owners that:

      (1) Have an approved emergency action plan in accordance with Sec. 5-503.1 of this subtitle;

      (2) Have had an inspection of the private dam performed by the Department that documents deficiencies in accordance with Sec. 5-509 of this subtitle within the past 24 months;

      (3) Can demonstrate, with documentation, actions taken to address deficiencies indicated in inspection reports prepared by the Department; and

      (4) Have demonstrated an ability to repay a loan.

  (3) Each loan may be in an amount that covers the reasonable and necessary eligible costs of a project, as determined by the Department, for which funds are sought by the applicant and that are not provided by other available sources.

  (4) A dam owner may use multiple programs or sources to fund the repair or removal costs for a dam in an unsafe condition up to 100% of the costs.

  (5) A dam owner seeking a loan shall submit a complete loan application to the Department on a form provided by the Department.

  (6) The repayment period for a loan may not exceed 20 years.

  (7) The loan shall be made at or below market interest rates.

  (8) The Department may charge a loan origination fee that may be used for the reasonable cost of administering the loan program.

  (9) If the Department determines that a dam owner does not have the financial resources to repay a loan granted under this subsection, the Department may, at the Department's discretion, authorize partial forgiveness of the loan.

  (10) Full repayment of the loan shall be required on sale or transfer of the property.

  (11)

    (i) The Department may establish remedies for loan recipients who fail to meet repayment obligations under the loan terms.

    (ii) In addition to any other action authorized by this subtitle, the Attorney General may bring an action to recover principal, interest, late fees and penalties, attorney's fees, and costs from any loan recipient that defaults on the loan recipient's obligations under the loan agreement.

    (iii)

      (1) In the event of a default on a loan obligation issued under this subsection, the Department may place a lien against the property that, subject to the tax liens of the federal, State, and local governments, shall have the same priority and status as a lien of the State for unpaid taxes under Sec.Sec. 14-804 and 14-805 of the Tax - Property Article.

      (2) The Department may exercise the same rights and powers in enforcing the lien and collecting funds for the payment of amounts in default under the loan obligation as the State may exercise in collecting unpaid taxes under Title 14, Subtitle 8 of the Tax - Property Article.

  (12) The Department shall adopt regulations to carry out this subsection.

(i) On or before November 1, 2026, and each November 1 thereafter, the Department shall report to the Governor and, subject to Sec. 2-1257 of the State Government Article, the General Assembly on:

  (1) The status of the Fund;

  (2) Revenues, encumbrances to, and expenditures from the Fund;

  (3) A description of the projects funded by the Fund; and

  (4) The number of applications for financial assistance from the Fund that were denied.

#### Section 5-510

(a) Except for permits issued for the appropriation or use of water for agricultural purposes, the Department shall prescribe a time limit not exceeding 2 years from the grant of a permit, during which construction, reconstruction, or repair shall begin or appropriation or use of water shall be completed.

(b) The Department shall prescribe a time limit, not more than 5 years from the grant of any permit, during which construction, reconstruction, or repair of reservoirs, dams, or waterway obstruction shall be completed.

(c) The Department may extend a permit-time limit for good cause shown.

#### Section 5-511

The Department shall review triennially every appropriation and use of water for which a required permit is granted, to ascertain if the appropriation and use of water is being made according to quantity limitations and other conditions established by permit. Unless a permit is for the periodic appropriation or use of water for agricultural purposes, the Department shall correct a permit where the total quantity of water permitted to be appropriated and used is not used or needed.

#### Section 5-512

(a) The provisions of this subtitle do not amend or repeal:

  (1) Any law relating to the Public Service Commission or to water and water structures; or

  (2) Any act or parts of acts consistent with the provisions of this subtitle.

(b) The provisions of this subtitle do not impair any riparian or other vested right, nor amend, repeal, limit, impair, or alter any right, power, or privilege granted by the General Assembly to the Mayor and City Council of Baltimore to appropriate or use any river, stream, or water in the State to augment and improve the municipal water supply of Baltimore City.

#### Section 5-513

On application of the Department, verified by oath or affirmation, the circuit court for any county, sitting in equity, may enforce by injunction, compliance with, or restraint from violating or attempting to violate any provisions of this subtitle or any Department order, notice, or regulation made under this subtitle.

#### Section 5-514

(a)

  (1) In addition to being subject to an injunctive action under this subtitle, a person who violates any provision of this subtitle or any regulation, order, or permit adopted or issued under this subtitle is liable for a civil penalty not exceeding $10,000 per violation to be collected in a civil action brought by the Department.

  (2) Each day a violation occurs or continues is a separate violation under this subsection.

  (3)

    (i) Before bringing a civil action against a local government under this subsection, the Department shall meet and consult with the local government to seek an alternative resolution to the contested issue.

    (ii) Prior consultation by the Department with the local government shall constitute compliance with this subsection.

(b) A person who violates a provision of this subtitle or a regulation adopted under this subtitle is subject to the penalties provided in Sec. 9-343 of this article.

(c)

  (1) In addition to any other remedies available at law or in equity and after an opportunity for a hearing, which may be waived in writing by the person accused of a violation, the Department may impose a penalty for violation of any provision of this subtitle or any regulation, order, or permit adopted or issued under this subtitle.

  (2) The penalty imposed on a person under this subsection shall be:

    (i) Up to $5,000 for each violation, but not exceeding $100,000 total; and

    (ii) Assessed with consideration given to:

      (1) The willfulness of the violation, the extent to which the existence of the violation was known to but uncorrected by the violator, and the extent to which the violator exercised reasonable care;

      (2) Any actual harm to the environment or to human health, including injury to or impairment of the use of the waters of the State or the natural resources of the State;

      (3) The cost of cleanup and the cost of restoration of natural resources;

      (4) The nature and degree of injury to or interference with general welfare, health, and property;

      (5) The extent to which the location of the violation, including location near waters of the State or areas of human population, creates the potential for harm to the environment or to human health or safety;

      (6) The available technology and economic reasonableness of controlling, reducing, or eliminating the violation;

      (7) The degree of hazard or harm posed by the violation;

      (8) 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

      (9) The degree of cooperation with the Department after being notified of the violation and any good faith efforts to address the violation.

  (3) Each day a violation exists is a separate violation under this subsection.

  (4) Any penalty imposed under this subsection is payable to the State and collectible in any manner provided at law for the collection of debts.

  (5) If any person who is liable to pay a penalty imposed under this subsection fails to pay the penalty after demand, the amount, together with interest and any costs that may accrue, shall be a lien in favor of the State on any:

    (i) Real property of the person when recorded with the clerk of the circuit court for the county in which the property is located; and

    (ii) Personal property of the person when attached and levied by the State in accordance with the Maryland Rules.

(d) Before taking any civil or administrative action to recover a penalty under subsection (a) or (c) of this section, the Department shall:

  (1) Provide the person alleged to have violated this subtitle with written notice of the proposed penalty and an opportunity for an informal meeting concerning settlement of the proposed civil or administrative penalty;

  (2) Use discretion to determine whether a formal enforcement action under this section is appropriate; and

  (3) If applicable, review any good faith application from the person, or an authorized representative of the person, for a loan from the Private Dam Repair Fund.

(e)

  (1) Except as provided in paragraph (2) of this subsection, all funds collected by the Department under this section, including any civil or administrative penalties or any fine imposed by a court under the provisions of this section, shall be paid into the Maryland Clean Water Fund.

  (2) Funds collected by the Department under this section relating to an unsafe condition shall be paid into the Private Dam Repair Fund.

#### Section 5-515

(a) After or concurrently with the service of a complaint under this subtitle, the Department may:

  (1) Issue an order that requires the person to whom the order is directed to take corrective action within a time set in the order;

  (2) Send a written notice that requires the person to whom the notice is directed to file a written report about the alleged violation; or

  (3) Send a written notice that requires the person to whom the notice is directed:

    (i) To appear at a hearing before the Department at a time and place the Department sets to answer the charges in the complaint; or

    (ii) To file a written report and also to appear at a hearing before the Department at a time and place the Department sets to answer the charges in the complaint.

(b) Any order issued under this section is effective immediately, according to its terms, when it is served.

#### Section 5-516

(a) The Department shall give notice and hold any hearing related to orders imposed under this subtitle in accordance with the Administrative Procedure Act.

(b)

  (1) Within 10 days after being served with an order under Sec. 5-515(a)(1) of this subtitle, the person served may request in writing a hearing before the Department.

  (2)

    (i) Subject to subparagraph (ii) of this paragraph, if a request for a hearing on an order is made under this subsection, the Department shall:

      (1) Hold the hearing promptly after receiving the request; and

      (2) Render a decision promptly after the hearing.

    (ii) If a request for a hearing on an order is made under this subsection and the Department alleges in the order that there is an imminent threat or danger to the public health or safety or to the environment, the Department shall:

      (1) Hold the hearing within 10 days after receiving the request; and

      (2) Render a decision within 10 days after the hearing.

(c) Within 10 days after being served with a notice under Sec. 5-515(a)(2) of this subtitle, the person served may request in writing a hearing before the Department.

(d) The Department may make a verbatim record of the proceedings of any hearing held under this subtitle.

(e)

  (1) In connection with any hearing under this subtitle, the Department may:

    (i) Subpoena any person or evidence; and

    (ii) Order a witness to give evidence.

  (2) A subpoenaed witness shall receive the same fees and mileage reimbursement as if the hearing were part of a civil action.

  (3) If a person fails to comply with a subpoena or order issued under this subsection, on petition of the Department, a circuit court, by order, may:

    (i) Compel obedience to the Department's order or subpoena; or

    (ii) Compel testimony or the production of evidence.

  (4) The court may punish as contempt any failure to obey its order issued under this section.

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Md. Code Ann., Envir. (as displayed at mgaleg.maryland.gov, October 16, 2026)