Title 9. Water, Ice, and Sanitary Facilities — Subtitle 16. Maryland Water Infrastructure Financing Administration
Statutes in effect as of October 1, 2026.
Md. Code Ann., Envir. § 9-1601 (2026)
Title 9. Water, Ice, and Sanitary Facilities
Subtitle 16. Maryland Water Infrastructure Financing Administration
§ 9–1601LinkCopy Citation
(a)
Unless the context clearly requires otherwise, in this subtitle the following words have the meanings indicated.
(b)
“Administration” means the Maryland Water Infrastructure Financing Administration.
(c)
“Bay Restoration Fund” means the Bay Restoration Fund established under § 9–1605.2 of this subtitle.
(d)
“Biological nutrient removal” means a biological nutrient removal technology capable of reducing the nitrogen in wastewater effluent to not more than 8 milligrams per liter, as calculated on an annually averaged basis.
(e)
(1)
“Blue infrastructure” means a water–based natural area or natural feature, or a system or feature designed to protect, mimic, or enhance a natural function, that:
(i)
Absorbs and filters pollutants;
(ii)
Attenuates shoreline erosion;
(iii)
Protects communities from flooding or storm surge;
(iv)
Reduces erosion; or
(v)
Sequesters carbon.
(2)
“Blue infrastructure” includes:
(i)
Enhanced or restored oyster reefs;
(ii)
Enhanced or restored seagrass beds;
(iii)
Shellfish aquaculture projects;
(iv)
Floating wetlands; and
(v)
Restored freshwater mussel populations.
(f)
“Board” means the Board of Public Works.
(g)
“Bond” means a bond, note, or other evidence of obligation of the Administration issued under this subtitle, including a bond or revenue anticipation note, notes in the nature of commercial paper, and refunding bonds.
(h)
“Bond resolution” means the resolution or resolutions of the Director, including the trust agreement, if any, authorizing the issuance of and providing for the terms and conditions applicable to bonds.
(i)
“Borrower” means a local government or a person as defined in § 1–101(h) of this article who has received a loan.
(j)
“Chesapeake and Atlantic Coastal Bays Nonpoint Source Fund” means the Chesapeake and Atlantic Coastal Bays Nonpoint Source Fund established under § 9–1605.3 of this subtitle.
(k)
“Community sewerage system” means a publicly or privately owned sewerage system that serves at least two lots.
(l)
“Director” means the Director of the Administration.
(m)
“Drinking Water Loan Fund” means the Maryland Drinking Water Revolving Loan Fund.
(n)
“Eligible costs” means the costs identified under § 9–1605.2(i) of this subtitle.
(o)
“Enhanced nutrient removal” means:
(1)
An enhanced nutrient removal technology that is capable of reducing the nitrogen and phosphorus concentrations in wastewater effluent to concentrations of not more than 3 milligrams per liter total nitrogen and not more than 0.3 milligrams per liter total phosphorus, as calculated on an annually averaged basis; or
(2)
If the Department has determined that the concentrations under item (1) of this subsection are not practicable for a wastewater facility, the lowest average annual wastewater effluent nitrogen and phosphorus concentrations that the Department determines are practicable for that facility.
(p)
“Environmental outcome” means a commodity that is modeled or directly measured as a single, quantifiable, and certified unit of improvement to the environment, including a nutrient or carbon benefit.
(q)
“Equivalent dwelling unit” means a measure of wastewater effluent where one unit is equivalent to:
(1)
If a local government or billing authority for a wastewater facility has established a definition for “equivalent dwelling unit” on or before January 1, 2004, the average daily flow of wastewater effluent that the local government or billing authority has established to be equivalent to the average daily flow of wastewater effluent discharged by a residential dwelling, which may not exceed 250 gallons; or
(2)
If a local government or billing authority has not established a definition for “equivalent dwelling unit” on or before January 1, 2004, or if a local government or billing authority has established a definition that exceeds 250 gallons of wastewater effluent per day, an average daily flow of 250 gallons of wastewater effluent.
(r)
“Facility” means a wastewater facility or all or a portion of a water supply system as defined in § 9–201(u) of this title.
(s)
“Federal Safe Drinking Water Act” means Title XIV of the Public Health Service Act, P.L. 93–523, as amended, 42 U.S.C. § 300f, et seq., and the rules and regulations promulgated thereunder.
(t)
“Federal Water Pollution Control Act” means the Water Pollution Control Act of 1972, P.L. 92–500, as amended, 33 U.S.C. § 1251, et seq., and rules and regulations promulgated thereunder.
(u)
“Fund” means a fund established by this subtitle, including the Water Quality Fund, the Drinking Water Loan Fund, the Bay Restoration Fund, and the Chesapeake and Atlantic Coastal Bays Nonpoint Source Fund.
(v)
“Grant” means a grant from the Administration to a grantee.
(w)
“Grant agreement” means a written agreement between the Administration and a grantee with respect to a grant.
(x)
“Grantee” means the grant recipient.
(y)
(1)
“Green infrastructure” means a land–based natural area or natural feature, or a system or feature designed to protect, mimic, or enhance a natural function, that:
(i)
Absorbs and filters pollutants;
(ii)
Protects communities from flooding or storm surge;
(iii)
Reduces erosion; or
(iv)
Sequesters carbon.
(2)
“Green infrastructure” includes:
(i)
Enhanced or restored natural landscape features, such as forests, streams, wetlands, riparian buffers, headwaters, or floodplains;
(ii)
Rain gardens;
(iii)
Permeable pavement;
(iv)
Pocket parks;
(v)
Bioswales;
(vi)
Green roofs;
(vii)
Infiltration planters;
(viii)
Tree plantings or tree boxes; and
(ix)
Rainwater harvesting.
(z)
“Lender” has the meaning stated in § 9–1606.1 of this subtitle.
(aa)
“Linked deposit” has the meaning stated in § 9–1606.1 of this subtitle.
(bb)
“Linked deposit loan” has the meaning stated in § 9–1606.1 of this subtitle.
(cc)
“Linked deposit program” has the meaning stated in § 9–1606.1 of this subtitle.
(dd)
“Loan” means a loan from the Administration to a borrower for the purpose of financing all or a portion of the cost of a wastewater facility, if the loan is from the Water Quality Fund, or water supply system, if the loan is from the Drinking Water Loan Fund.
(ee)
“Loan agreement” means a written agreement between the Administration and a borrower with respect to a loan.
(ff)
“Loan obligation” means a bond, note, or other evidence of obligation, including a mortgage, deed of trust, lien, or other security instrument, issued or executed by a borrower to evidence its indebtedness under a loan agreement with respect to a loan.
(gg)
(1)
“Local government” means a county, municipal corporation, sanitary district, or other State or local public entity that has authority to own or operate a facility.
(2)
“Local government” includes any combination of two or more of the public entities under paragraph (1) of this subsection when acting jointly to construct or operate a facility.
(hh)
(1)
“Person” means an individual, a corporation, a partnership, an association, a nonprofit entity, the State, any unit of the State, a commission, a special taxing district, or the federal government.
(2)
“Person” does not include a county, municipal corporation, bi–county or multicounty agency under Division II of the Land Use Article or Division II of the Public Utilities Article, housing authority under Division II of the Housing and Community Development Article, school board, community college, or any other unit of a county or municipal corporation, or a local fire department, as defined in § 9–401 of the Public Safety Article.
(ii)
(1)
“Residential dwelling” means a room or group of rooms occupied as living quarters by an individual, a single family, or other discrete group of persons with facilities that are used or intended to be used for living, sleeping, cooking, sanitation, and eating, including an apartment unit, condominium unit, cooperative unit, town house unit, mobile home, or house.
(2)
“Residential dwelling” does not include a hospital, a hotel, a motel, an inn, a boarding house, a club, a dormitory, a school, a college, or a similar seasonal, institutional, or transient facility.
(jj)
“Single site” means a discrete grouping of buildings or structures that are located on contiguous or adjacent property and owned by the same user.
(kk)
(1)
“User” means any person discharging wastewater to:
(i)
A wastewater facility that has a State discharge permit or national pollutant discharge elimination system discharge permit;
(ii)
An on–site sewage disposal system; or
(iii)
A sewage holding tank.
(2)
“User” does not include a person whose sole discharge is stormwater under a stormwater permit.
(ll)
(1)
“Wastewater facility” means any equipment, plant, treatment works, structure, machinery, apparatus, interest in land, or any combination of these, which is acquired, used, constructed, or operated:
(i)
For the storage, collection, treatment, neutralization, stabilization, reduction, recycling, reclamation, separation, or disposal of wastewater;
(ii)
To improve water conservation, reduce energy consumption, or increase security; or
(iii)
For the final disposal of residues resulting from the treatment of wastewater.
(2)
“Wastewater facility” includes:
(i)
Treatment or disposal plants; outfall sewers, interceptor sewers, and collector sewers; pumping and ventilating stations, facilities, and works; and other real or personal property and appurtenances incident to their development, use, or operation;
(ii)
Any programs and projects for managing, reducing, treating, recapturing, abating, or controlling nonpoint sources of water pollution, including stormwater or subsurface drainage water; and
(iii)
Any programs and projects for improving estuarine conservation and management.
(mm)
“Water Quality Fund” means the Maryland Water Quality Revolving Loan Fund.
(nn)
“Water supply system” has the meaning stated in § 9–201(u) of this title.
Md. Code Ann., Envir. § 9-1602 (2026)
Title 9. Water, Ice, and Sanitary Facilities
Subtitle 16. Maryland Water Infrastructure Financing Administration
§ 9–1602LinkCopy Citation
There is a Maryland Water Infrastructure Financing Administration in the Department.
Md. Code Ann., Envir. § 9-1603 (2026)
Title 9. Water, Ice, and Sanitary Facilities
Subtitle 16. Maryland Water Infrastructure Financing Administration
§ 9–1603LinkCopy Citation
(a)
The Secretary, with the approval of the Governor, shall appoint the Director of the Administration who shall serve at the pleasure of the Secretary. The Director is a special appointment in the State Personnel Management System. The Director shall operate and exercise the powers of the Administration under the direction of the Secretary in accordance with the provisions of this subtitle. The Director shall receive such salary and have such deputies, assistants, employees, and professional consultants as provided in the State budget.
(b)
The Attorney General shall be the legal advisor for and represent the Administration.
Md. Code Ann., Envir. § 9-1604 (2026)
Title 9. Water, Ice, and Sanitary Facilities
Subtitle 16. Maryland Water Infrastructure Financing Administration
§ 9–1604LinkCopy Citation
(a)
In addition to the powers set forth elsewhere in this subtitle, but subject to such rules or program directives as the Secretary may from time to time prescribe, the Administration may:
(1)
Adopt and alter an official seal;
(2)
Sue and be sued, plead, and be impleaded;
(3)
Adopt bylaws, rules, and regulations to carry out the provisions of this subtitle;
(4)
Maintain an office at such place as the Secretary may designate;
(5)
Subject to subsection (b) of this section, employ consultants, accountants, attorneys, financial experts, and other personnel and agents as may be necessary in its judgment, and fix their compensation;
(6)
Establish regulations, criteria, or guidelines with respect to loans, loan agreements, loan obligations, grants, grant agreements, and grant obligations;
(7)
Receive and accept from any source, private or public, contributions, grants, or gifts of money or property;
(8)
Enter into contracts of any kind, and execute all instruments necessary or convenient with respect to carrying out the powers in this subtitle to accomplish the purposes of the Administration;
(9)
Make loans, enter into loan agreements, and accept and enforce loan obligations;
(10)
Award grants, enter into grant agreements, and accept and enforce grant obligations;
(11)
Subject to the prior approval of the Board and the Secretary, issue bonds under this subtitle; and
(12)
Do all acts and things necessary or convenient to carry out the powers granted by this subtitle.
(b)
(1)
In accordance with the State budget, the Administration may set the compensation of an Administration employee in a position that:
(i)
Is unique to the Administration;
(ii)
Requires specific skills or experience to perform the duties of the position; and
(iii)
Does not require the employee to perform functions that are comparable to functions performed in other units of the Executive Branch of State government.
(2)
The Secretary of Budget and Management, in consultation with the Secretary, shall determine the positions for which the Administration may set compensation under paragraph (1) of this subsection.
(c)
(1)
This subsection applies to financial assistance provided by the Administration under:
(i)
The Water Quality Fund;
(ii)
The Bay Restoration Fund;
(iii)
The Biological Nutrient Removal Program; and
(iv)
The Supplemental Assistance Program.
(2)
The Administration shall ensure the fair and equitable distribution of financial assistance among wastewater treatment facilities with a design capacity of less than 500,000 gallons per day and wastewater treatment facilities with a design capacity of 500,000 gallons or more per day.
(3)
It is the policy of the State that the maintenance and repair of source watersheds, including the conservation and restoration of forests and the installation and maintenance of blue infrastructure or green infrastructure that contributes to improved water quality, is eligible for the same forms of financial assistance as other water collection and treatment infrastructure.
Md. Code Ann., Envir. § 9-1605 (2026)
Title 9. Water, Ice, and Sanitary Facilities
Subtitle 16. Maryland Water Infrastructure Financing Administration
§ 9–1605LinkCopy Citation
(a)
(1)
(i)
There is a Maryland Water Quality Revolving Loan Fund.
(ii)
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 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 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.
(3)
(i)
The Administration shall establish a technical assistance subaccount within the Water Quality Fund.
(ii)
Federal funds deposited in the Water Quality Fund for the purpose of providing technical assistance for projects in rural, small, and tribal communities shall be distributed to the technical assistance subaccount.
(iii)
The technical assistance subaccount may be used to provide financial assistance to entities specified in subparagraph (iv) of this paragraph for the purpose of providing technical assistance for projects in rural, small, and tribal communities, with priority given to entities providing technical assistance for projects in disadvantaged communities and communities disproportionately burdened by environmental harms and risks, including financial assistance to support the development of:
(1)
An application for financial assistance under the Water Quality Fund; or
(2)
A financing plan under the Water Quality Fund.
(iv)
The following entities are eligible to receive financial assistance under this paragraph:
(1)
A publicly owned treatment works that primarily serves a rural, small, or tribal community;
(2)
A State, regional, interstate, or municipal entity; or
(3)
A nonprofit organization working with a rural, small, tribal, or disadvantaged community.
(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 the lesser of 30 years or the projected useful life of the project;
(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 on the expiration of the term of the loan;
(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, 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, including loans for forest restoration or the conservation of forest land by fee or easement;
(7)
To provide loans for the protection of source water areas or Chesapeake and Atlantic Coastal Bay watersheds through property acquisitions or easements;
(8)
To establish a sponsorship program that allows a local government to serve as the primary borrower and receive a loan for a publicly owned treatment works project at a reduced interest rate if the loan also includes financing for a sponsored nonpoint source project managed by an organization;
(9)
To support long–term or permanent green or blue infrastructure projects:
(i)
That provide a water quality benefit to Maryland’s portion of the Chesapeake Bay;
(ii)
That are proposed and carried out by an eligible regional or interstate entity in the Susquehanna River watershed;
(iii)
About which the Secretary has consulted with the head of the environmental agency in which the project is located; and
(iv)
For which the Secretary has determined the allocation of credits for the Chesapeake Bay total maximum daily load’s watershed implementation plans;
(10)
To establish master lease purchase agreements with State agencies to support projects that enhance water quality on State lands;
(11)
To support multiyear initiatives authorized under Title 8, Subtitle 2A of the Natural Resources Article that also involve funding from:
(i)
The Chesapeake and Atlantic Coastal Bays 2010 Trust Fund;
(ii)
A hazard mitigation program under the Maryland Department of Emergency Management; or
(iii)
A climate resilience program under the National Oceanic and Atmospheric Administration;
(12)
For the reasonable costs of administering the Water Quality Fund and conducting activities under Title VI of the Federal Water Pollution Control Act;
(13)
For any other purpose authorized by Title VI of the Federal Water Pollution Control Act or § 302 of the federal Safe Drinking Water Act;
(14)
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;
(15)
To provide loan guarantees for similar revolving funds established by municipalities or intermunicipal agencies; and
(16)
To serve as guarantee for long–term pay–for–success contracts, green bonds, or environmental impact bonds by any public, private, or nonprofit entity for the purchase of outcomes that provide a water quality benefit.
(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.
(f)
In creating an intended use plan for the Water Quality Fund, the Administration shall prioritize:
(1)
Opportunities to provide assistance to disadvantaged communities or communities disproportionately burdened by environmental harms and risks; and
(2)
Green and blue infrastructure, with particular focus on natural areas or natural features.
(g)
The Department shall provide to the General Assembly, in accordance with § 2–1257 of the State Government Article, a copy of each intended use plan that the Department submits to the U.S. Environmental Protection Agency to request federal capitalization grants and awards in accordance with Title VI of the Federal Water Pollution Control Act for use in the Water Quality Fund within 5 days after the Department publishes the plan for public comment.
Md. Code Ann., Envir. § 9-1605.1 (2026)
Title 9. Water, Ice, and Sanitary Facilities
Subtitle 16. Maryland Water Infrastructure Financing Administration
§ 9–1605.1LinkCopy Citation
(a)
(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 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)
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)
(1)
The Administration may establish accounts and subaccounts within the Drinking Water Loan Fund 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 Drinking Water Loan Fund; or
(iv)
Meet any rules or program directives established by the Secretary or the Board.
(2)
(i)
The Administration shall establish a technical assistance subaccount within the Drinking Water Loan Fund.
(ii)
Federal funds deposited in the Drinking Water Loan Fund for the purpose of providing technical assistance to small drinking water systems, as defined under the federal Safe Drinking Water Act, shall be distributed to the technical assistance subaccount.
(iii)
The technical assistance subaccount may be used to provide financial assistance to entities specified in subparagraph (iv) of this paragraph for the purpose of providing technical assistance to small drinking water systems, with priority given to entities providing technical assistance for small drinking water systems in disadvantaged communities or communities disproportionately burdened by environmental harms and risks, including financial assistance for:
(1)
Assessing risks from water pipes made from lead;
(2)
Supporting the development of lead pipe inventories;
(3)
Supporting the development of an application for financial assistance under the Drinking Water Loan Fund; and
(4)
Supporting the development of a financing plan under the Drinking Water Loan Fund.
(iv)
The following entities are eligible to receive financial assistance under this paragraph:
(1)
A small drinking water system, as defined under the federal Safe Drinking Water Act;
(2)
A multijurisdictional entity; or
(3)
A nonprofit organization working with a rural, small, tribal, or disadvantaged community.
(d)
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 the loan;
(iv)
The loans are made at terms not to exceed:
(1)
30 years; or
(2)
With respect to disadvantaged communities as defined in the federal Safe Drinking Water Act, the lesser of 40 years after project completion or the design life of the project; and
(v)
Annual principal and interest payments will commence not later than 18 months after completion of any drinking water facility and all loans will be fully amortized on the expiration of the term of the loan;
(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, including loans for:
(i)
Controlling nonpoint sources of pollution and protecting the quality of State waters;
(ii)
Protecting or acquiring forests or wetlands by fee or easement; or
(iii)
Restoring forests;
(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 comply with the limitations and requirements set forth in the federal Safe Drinking Water Act and any federal appropriations or authorization acts;
(9)
To establish a sponsorship program that allows a local government to serve as the primary borrower and receive a loan for a publicly owned water supply system at a reduced interest rate if the loan also includes financing for a sponsored nonpoint source project managed by an organization;
(10)
With respect to any federal funds deposited in the Drinking Water Loan Fund, to prioritize support for local governments, community water systems, and other eligible partners by:
(i)
Serving as a guarantee for long–term pay–for–success contracts for the purchase of environmental outcomes that provide water quality benefits;
(ii)
Supporting the delineation, assessment, or updated assessment of source water protection areas and the implementation of well head protection programs, including through grants and technical assistance; or
(iii)
Supporting loans and loan guarantees for the protection of source water areas or the Chesapeake and Atlantic Coastal Bays watersheds through property acquisitions or easements for the purpose of controlling nonpoint sources of pollution;
(11)
To support multiyear initiatives authorized under Title 8, Subtitle 2A of the Natural Resources Article that also involve funding from the Chesapeake and Atlantic Coastal Bays 2010 Trust Fund;
(12)
To provide financial assistance to disadvantaged communities as defined in the federal Safe Drinking Water Act in the form of planning phase grants or design phase grants;
(13)
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
(14)
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)
§§ 302 and 1452 of the federal Safe Drinking Water Act;
(iii)
Title VI of the Federal Water Pollution Control Act; or
(iv)
Federal appropriations or authorization acts.
(e)
In creating an intended use plan for the Drinking Water Loan Fund, the Administration shall prioritize opportunities to provide assistance to disadvantaged communities or communities disproportionately burdened by environmental harms and risks and support innovative financing partnerships to address environmental justice issues as defined in § 1–701 of this article, including through investment in:
(1)
Water infrastructure loans designed to ensure fairer and more just opportunities to improve community health through better water service;
(2)
Municipal consolidation efforts under § 9–707 of this title;
(3)
Toxic lead service line replacement; and
(4)
Green infrastructure that contributes to improved water quality and remediates or mitigates environmental and health hazards in disadvantaged communities or communities disproportionately burdened by environmental harms and risks.
(f)
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 money 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.
Md. Code Ann., Envir. § 9-1605.2 (2026)
Title 9. Water, Ice, and Sanitary Facilities
Subtitle 16. Maryland Water Infrastructure Financing Administration
§ 9–1605.2LinkCopy Citation
(a)
(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;
(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; and
(iii)
Used to accelerate the restoration of the Chesapeake Bay and Atlantic Coastal Bays and their watersheds.
(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 on–site 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)
(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 on–site 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 on–site 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 on–site sewage disposal system or holding tank is located within the Chesapeake Bay Watershed or the Coastal Bays Watershed;
(2)
For each user of an on–site sewage disposal system that does not receive a water bill:
(A)
$30 per year if the on–site sewage disposal system is not located within the Chesapeake Bay Watershed or the Coastal Bays Watershed; or
(B)
$60 per year if the on–site 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 on–site 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 on–site sewage disposal system and for users of a sewage holding tank, the county in which the on–site 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 on–site 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)
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(n) 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)
(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 on–site 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, on–site 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, on–site sewage disposal system, or holding tank.
(ii)
A notice of lien shall be recorded in the land records of Caroline County.
(e)
(1)
(i)
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:
(1)
On or before the 20th day of the month that follows the calendar quarter in which the restoration fee was collected; and
(2)
For other periods and on other dates that the Comptroller may specify by regulation, including periods in which no restoration fee has been collected.
(ii)
For periods beginning after December 31, 2026, a person shall file a Bay Restoration Fee return electronically.
(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)
(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)
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)
(1)
With regard to the funds collected under subsection (b)(1)(i)1 of this section from users of an on–site sewage disposal system or holding tank that receive a water bill and subsection (b)(1)(i)2 and 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 paragraphs (3), (4), (5), and (6) of this subsection, with priority first given to failing systems and holding tanks located in the Chesapeake and Atlantic Coastal Bays Critical Area, second to failing systems that are located within a Maryland Chesapeake Bay 8–digit watershed that has a relative effectiveness for total nitrogen reduction of 9.24 or higher based on the Chesapeake Bay watershed model, third to failing systems that are located within the 500–year floodplain, and fourth 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 on–site sewage disposal system to the best available technology for the removal of nitrogen;
(B)
The cost difference between a conventional on–site 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 on–site 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 on–site 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 on–site sewage disposal system to an existing municipal wastewater facility that is achieving enhanced nutrient removal or biological nutrient removal level treatment, including payment of the principal, but not interest, of debt issued by a local government for such connection costs;
(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 on–site 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 on–site 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 on–site sewage disposal systems or holding tanks to operate and maintain the upgraded systems;
(3)
A portion of the reasonable costs of a local public entity that has been delegated by the Department under § 1–301(b) of this article to administer and enforce environmental laws, not to exceed 10% of the funds deposited into the separate account, to implement regulations adopted by the Department for on–site sewage disposal systems that utilize the best available technology for the removal of nitrogen;
(4)
Subject to paragraph (7) of this subsection, financial assistance to low–income homeowners, as defined by the Department, for up to 50% of the cost of an operation and maintenance contract of up to 5 years for an on–site sewage disposal system that utilizes nitrogen removal technology;
(5)
Subject to paragraph (8) of this subsection, a local jurisdiction to provide financial assistance to eligible homeowners for the reasonable cost of pumping out an on–site sewage disposal system, at least once every 5 years, unless a more frequent pump out schedule is recommended during an inspection, not to exceed 10% of the funds allocated to the local jurisdiction; and
(6)
In fiscal years 2020 and 2021, financial assistance to a local jurisdiction for the development of a septic stewardship plan that meets the requirements under paragraph (8)(iii)2 of this subsection; 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)
Funding for the costs identified in paragraph (2)(i)1 of this subsection shall be provided in the following order of priority:
(i)
For owners of all levels of income, the costs identified in paragraph (2)(i)1A and B of this subsection; and
(ii)
For low– and moderate–income owners, as defined by the Department, the costs identified in paragraph (2)(i)1C of this subsection:
(1)
First, for best available technologies for nitrogen removal; and
(2)
Second, for other wastewater treatment systems.
(4)
Funding for the costs identified in paragraph (2)(i)1D of this subsection may be provided if:
(i)
The environmental impact of the on–site sewage disposal system is documented by the local government and confirmed by the Department;
(ii)
It can be demonstrated that:
(1)
The replacement of the on–site sewage disposal system with a new community sewerage system is more cost effective for nitrogen removal than upgrading each individual on–site sewage disposal system; or
(2)
The individual replacement of the on–site sewage disposal system is not feasible; and
(iii)
The new community sewerage system will only serve lots that have received a certificate of occupancy, or equivalent certificate, at least 15 years before July 1 of the year in which the application for funding is made.
(5)
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:
(i)
The environmental impact of the on–site sewage disposal system is documented by the local government and confirmed by the Department;
(ii)
It can be demonstrated that:
(1)
The replacement of the on–site sewage disposal system with service to an existing municipal wastewater facility that is achieving enhanced nutrient removal or biological nutrient removal level treatment is more cost–effective for nitrogen removal than upgrading the individual on–site sewage disposal system; or
(2)
The individual replacement of the on–site sewage disposal system is not feasible;
(iii)
The project is consistent with the county’s comprehensive plan and water and sewer master plan;
(iv)
(1)
The on–site sewage disposal system was installed at least 15 years before July 1 of the year in which the application for funding is made, 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; or
(2)
The on–site sewage disposal system was installed at least 15 years before July 1 of the year in which the application for funding is made, the property the system serves is not located in a priority funding area, and the project meets the requirements under § 5–7B–06 of the State Finance and Procurement Article and is consistent with a public health area of concern:
(A)
Identified in the county water and sewer plan; or
(B)
Certified by a county environmental health director with concurrence by the Department and, if funding is approved, subsequently added to the county water and sewer plan within a time frame jointly agreed on by the Department and the county that takes into consideration the county’s water and sewer plan update and amendment process; and
(v)
The funding agreement for a project that meets the conditions for funding under subparagraph (iv)2 of this paragraph includes provisions to ensure:
(1)
Denial of access for any future connections that are not included in the project’s proposed service area; and
(2)
That the project will not unduly impede access to funding for upgrading individual on–site sewage disposal systems in the county with best available technology for nitrogen removal.
(6)
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.
(7)
The Department or a local government shall determine:
(i)
Whether an applicant is eligible for financial assistance under paragraph (2)(i)4 of this subsection; and
(ii)
The amount of financial assistance to be provided for each applicant based on the average cost of an operation and maintenance contract of up to 5 years provided by vendors, as defined in § 9–1108.1 of this title, in the applicant’s area.
(8)
(i)
The amount of financial assistance under paragraph (2)(i)5 of this subsection shall be based on homeowner income, with priority given to low–income homeowners.
(ii)
Financial assistance under paragraph (2)(i)5 of this subsection may be provided through grants, rebates, or low– or no–interest loans.
(iii)
Financial assistance under paragraph (2)(i)5 of this subsection may be provided only if:
(1)
The homeowner verifies the pump out has occurred; and
(2)
The homeowner resides in a local jurisdiction that has developed and implemented a septic stewardship plan that:
(A)
Has been adopted by the local governing body of the jurisdiction, after consultation with the jurisdiction’s local health department;
(B)
States specific goals consistent with the nitrogen load reduction identified in the local jurisdiction’s watershed implementation plan;
(C)
Specifies public education and outreach measures that will be taken, including education and outreach on best management practices, legal requirements, and existing support and financial assistance;
(D)
Provides technical guidance for the siting, design, evaluation, and construction of an on–site sewage disposal system;
(E)
Requires an on–site sewage disposal system located on residential property to be pumped out and inspected at least once every 5 years, unless a more frequent pump out schedule is recommended during an inspection;
(F)
Requires an on–site sewage disposal system located on commercial property to be pumped out and inspected at least once every 5 years, unless a more frequent pump out schedule is recommended during an inspection;
(G)
Specifies certification and licensing procedures for a person that pumps out and inspects on–site sewage disposal systems;
(H)
Specifies enforcement mechanisms, compliance incentives, and penalties;
(I)
Outlines funding mechanisms to support the plan and expand education, demonstration projects, and inspections;
(J)
Specifies requirements for record keeping; and
(K)
Establishes a process for periodically evaluating and revising the plan.
(9)
On or before December 31 each year, the Department of the Environment shall submit a report, in accordance with § 2–1257 of the State Government Article, to the House Environment and Transportation Committee and the Senate Education, Energy, and the Environment Committee on:
(i)
Each project funded under paragraph (5)(iv)2 of this subsection; and
(ii)
A summary of any impacts that the funding used for these projects had on overall funding for upgrading individual on–site sewage disposal systems with best available technology for nitrogen removal.
(i)
(1)
(i)
In this subsection the following words have the meanings indicated.
(ii)
“Eligible costs” means the additional costs that would be attributable to upgrading a wastewater facility to enhanced nutrient removal, as determined by the Department.
(iii)
“Privately owned wastewater facility” means a wastewater facility that is owned by a private entity and provides wastewater treatment or disposal services to multiple residential dwelling units.
(iv)
“Publicly owned wastewater facility” means a wastewater facility that is owned by this State or a political subdivision, municipal corporation, or other public entity.
(2)
Funds in the Bay Restoration Fund shall be used only:
(i)
(1)
To award grants for up to 100% of eligible costs of projects relating to planning, design, construction, and upgrade of a publicly owned 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 (4) of this subsection; and
(2)
Subject to paragraph (12) of this subsection, to award grants for up to 50% of eligible costs of projects relating to planning, design, construction, and upgrade of a privately owned 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 (4) of this subsection;
(ii)
In fiscal years 2016 and thereafter, for up to 87.5% of the total cost of projects, as approved by the Department, relating to combined sewer overflows abatement, rehabilitation of existing sewers, and upgrading conveyance systems, including pumping stations;
(iii)
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;
(iv)
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:
(1)
For funding the eligible costs to upgrade a wastewater facility to enhanced nutrient removal at wastewater facilities with a design capacity of 500,000 gallons or more per day;
(2)
For funding the eligible costs of the most cost–effective enhanced nutrient removal upgrades at wastewater facilities with a design capacity of less than 500,000 gallons per day; and
(3)
As determined by the Department and based on water quality, climate resiliency, flood control, and public health benefits, for the following:
(A)
For costs identified under item (ii) of this paragraph;
(B)
For costs identified under subsection (h)(2)(i)1 of this section; and
(C)
With respect to a local government that has enacted and implemented a system of charges 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, including stormwater measures relating to water quality, climate resiliency, or flood control, as determined and approved by the Department, from the restoration fees collected annually by the Comptroller from users of wastewater facilities under this section;
(v)
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;
(vi)
To earn interest on Bay Restoration Fund accounts;
(vii)
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;
(viii)
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;
(ix)
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;
(x)
For costs associated with the issuance of bonds;
(xi)
Subject to the allocation of funds and the conditions under subsection (h) of this section, for projects related to the removal of nitrogen from on–site sewage disposal systems and cover crop activities;
(xii)
For costs associated with the implementation of alternate compliance plans authorized in § 4–202.1(k)(3) of this article;
(xiii)
After funding any eligible costs identified under item (iv)1 and 2 of this paragraph, for transfers to the Clean Water Commerce Account in accordance with paragraph (3) of this subsection; and
(xiv)
After funding any eligible costs identified under item (iv)1 and 2 of this paragraph, for the transfers required under paragraph (11) of this subsection.
(3)
In fiscal year 2022 and each fiscal year thereafter, the Department shall transfer $20,000,000 from the Bay Restoration Fund to the Clean Water Commerce Account established under § 9–1605.4 of this subtitle, to be used for the purposes specified in § 9–1605.4 of this subtitle.
(4)
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.
(5)
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 Small, Minority, and Women Business Affairs in identifying and soliciting small business enterprises, minority business enterprises, and women’s business enterprises.
(6)
If the steps required under paragraph (5) of this subsection are not demonstrated to the satisfaction of the Department, the Department may withhold financial assistance for the project.
(7)
(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.
(8)
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.
(9)
(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 (l) 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.
(10)
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.
(11)
(i)
In fiscal year 2023 the Department shall transfer from the Bay Restoration Fund:
(1)
$10,000,000 to the Chesapeake Bay Trust for the Urban Trees Program established under § 8–1911 of the Natural Resources Article;
(2)
$2,500,000 to the Chesapeake and Atlantic Coastal Bays 2010 Trust Fund in the Department of Natural Resources, to be used, subject to the requirements of subparagraph (ii) of this paragraph, for tree planting on public and private land; and
(3)
$2,500,000 to the Maryland Department of Agriculture to fund tree plantings under the Conservation Reserve Enhancement Program in accordance with § 8–706 of the Agriculture Article and other tree–planting programs on agricultural land.
(ii)
Funds transferred to the Chesapeake and Atlantic Coastal Bays 2010 Trust Fund under subparagraph (i)2 of this paragraph:
(1)
May be distributed in accordance with § 8–2A–04(c)(2) of the Natural Resources Article;
(2)
May be used to cover the costs of:
(A)
Site preparation, labor, and materials for tree–planting projects;
(B)
Maintaining trees following a tree–planting project; and
(C)
Landowner incentive payments or signing bonuses of up to $1,000 per acre of trees planted;
(3)
May not be used to plant trees intended for timber harvest; and
(4)
May be used only for tree plantings on private land if the landowner enters into a binding legal agreement to maintain the planted area in tree cover for at least 15 years.
(iii)
Funds transferred from the Bay Restoration Fund under this paragraph are supplemental to and may not take the place of funding that otherwise would be appropriated for the programs and initiatives specified in subparagraph (i) of this paragraph.
(12)
(i)
Except as provided in subparagraph (ii) of this paragraph, the Department may not provide funding under this section to the owner of a privately owned wastewater facility if the Department or the U.S. Environmental Protection Agency has determined in the 2 years immediately preceding the date on which the owner applied for funding under this section that the facility did not comply with a discharge permit issued by the Department under this title.
(ii)
The Department may provide funding under this section to the owner of a privately owned wastewater facility that would not be eligible for funding under subparagraph (i) of this paragraph if the Department determines, based on proof submitted by the owner of the facility when applying for funding under this section, that the owner of the facility lacks the financial capacity to purchase or upgrade a wastewater treatment system that would bring the facility into compliance with the discharge permit issued by the Department.
(iii)
(1)
The Department shall include with its annual operating budget proposal submitted to the Department of Budget and Management a list of each facility to which the Department provided funding under subparagraph (ii) of this paragraph in the immediately preceding 12 months and the reasons for providing the funding.
(2)
If the Department provides the list under subsubparagraph 1 of this subparagraph to the Department of Budget and Management, the Department shall immediately provide the list to the General Assembly in accordance with § 2–1257 of the State Government Article.
(j)
(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 on–site sewage disposal systems, appointed by the Governor;
(ix)
One individual representing a university or research institute who has expertise in nutrient pollution, appointed by the Governor;
(x)
One individual representing the Chesapeake Bay Commission, appointed by the Chair of the Maryland Delegation to the Commission; and
(xi)
One individual representing communities disproportionately burdened by environmental harms and risks as identified by the Department in consultation with the Commission on Environmental Justice and Sustainable Communities.
(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 on–site 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 on–site 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 (l) of this section; and
(ix)
On or before December 31 each year, report to the Governor and, subject to § 2–1257 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)
(1)
On or before December 31 each year, the Department and the Department of Planning shall jointly report on:
(i)
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; and
(ii)
Each privately owned wastewater facility to which the Department provided funding under subsection (i)(12) of this section in the immediately preceding 12 months and the reasons for providing the funding.
(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, Energy, and the Environment Committee, the House Appropriations Committee, the House Environment and Transportation Committee, and the Governor, in accordance with § 2–1257 of the State Government Article.
(l)
The Department shall adopt regulations that are necessary or appropriate to carry out the provisions of this section.
Md. Code Ann., Envir. § 9-1605.3 (2026)
Title 9. Water, Ice, and Sanitary Facilities
Subtitle 16. Maryland Water Infrastructure Financing Administration
§ 9–1605.3LinkCopy Citation
(a)
(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)
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)
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 money in the Chesapeake and Atlantic Coastal Bays Nonpoint Source Fund; and
(4)
Any other money from any other source accepted for the benefit of the Fund.
(d)
(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)
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)
(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)
Ensuring 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, and 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 Small, Minority, and Women Business 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)
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.
Md. Code Ann., Envir. § 9-1605.4 (2026)
Title 9. Water, Ice, and Sanitary Facilities
Subtitle 16. Maryland Water Infrastructure Financing Administration
§ 9–1605.4LinkCopy Citation
(a)
(1)
In this section the following words have the meanings indicated.
(2)
“Account” means the Clean Water Commerce Account.
(3)
“Aggregator” means a person that facilitates or coordinates the establishment of practices or projects that:
(i)
Are implemented by the person or by others;
(ii)
Produce a quantifiable environmental outcome;
(iii)
Are registered by the person; and
(iv)
Are made available for purchase by the Department under this section.
(4)
(i)
“Agricultural practice” means a best management practice that is:
(1)
Approved by the Chesapeake Bay Program Partnership; and
(2)
Implemented on land or water that is used for the production or processing of an agricultural crop.
(ii)
“Agricultural practice” includes agricultural, horticultural, silvicultural, and aquacultural operations.
(5)
“Chesapeake Bay TMDL” means the total maximum daily load approved by the U.S. Environmental Protection Agency under the Clean Water Act for the Chesapeake Bay.
(6)
“Environmental outcome” means nitrogen load reductions that can be directly measured or modeled using the Chesapeake Bay Program Models.
(7)
(i)
“Nonagricultural landscape restoration project” means a project that:
(1)
Is installed on nonagricultural lands;
(2)
Has an intended lifespan of at least 10 years; and
(3)
Provides environmental outcomes.
(ii)
“Nonagricultural landscape restoration project” includes a project that returns land to native or natural land cover, such as afforestation or reforestation projects.
(8)
“Quantification plan” means a plan approved by the Department that describes:
(i)
The method that will be used to measure or model environmental outcomes;
(ii)
The required compliance monitoring that will occur to ensure that the proposed actions were taken;
(iii)
Any verification steps that may be carried out by the Department or the owner of a project or practice to confirm environmental outcomes; and
(iv)
The timeline for proposed payments under a contract with the Department.
(b)
There is a Clean Water Commerce Account.
(c)
The purpose of the Account is to:
(1)
Purchase environmental outcomes in support of the State’s efforts to achieve the Chesapeake Bay TMDL; and
(2)
Accelerate restoration of the Chesapeake Bay and Atlantic Coastal Bays and their watersheds.
(d)
The Secretary shall administer the Account.
(e)
The Account consists of:
(1)
Revenue transferred to the Account under § 9–1605.2(i)(2)(xiii) of this subtitle; and
(2)
Any other money from any other sources accepted for the benefit of the Account.
(f)
(1)
Subject to the provisions of this subsection, the Account may be used only for the purchase of cost–effective environmental outcomes that:
(i)
Support the State’s efforts to achieve the Chesapeake Bay TMDL; and
(ii)
Have an expected life of at least 10 years.
(2)
Except as provided in paragraph (3) of this subsection, in each fiscal year:
(i)
At least 35% shall be used to procure environmental outcomes from agricultural practices, with priority given to projects that are:
(1)
A fixed natural filter practice, as defined in § 8–701 of the Agriculture Article; or
(2)
An agricultural ditch management practice, as defined by the Chesapeake Bay Program;
(ii)
At least 20% shall be used to procure environmental outcomes from projects, including stormwater management and green infrastructure projects, established in communities disproportionately burdened by environmental harms and risks as identified by the Department in consultation with the Commission on Environmental Justice and Sustainable Communities; and
(iii)
At least 10% shall be used to procure environmental outcomes from nonagricultural landscape restoration projects that take into consideration the project’s ecological suitability, including the hydrological conditions and other physical characteristics of the location at which the project will be implemented.
(3)
Any unencumbered funds not used to purchase environmental outcomes as specified under paragraph (2) of this subsection are:
(i)
No longer subject to the allocation requirements specified under paragraph (2) of this subsection; and
(ii)
Available for use consistent with this section in subsequent fiscal years, including to fund the Whole Watershed Fund established under § 8–2B–03 of the Natural Resources Article.
(4)
A project may include environmental outcomes from one or more of the project types specified under paragraph (2) of this subsection.
(g)
Expenditures from the Account may be made only in accordance with the State budget.
(h)
The Department may establish subaccounts within the Account to carry out the purposes of this section.
(i)
An environmental outcome purchased under this section may not be resold or transferred to any other person separately from the property on which the environmental outcome is located.
(j)
In calculating pollution reductions under the Chesapeake Bay TMDL by various major source sectors recognized in the Watershed Implementation Plan, credit for any reductions funded under this section shall be attributed to the sector of the source that makes the reductions.
(k)
(1)
The Department shall:
(i)
Use a competitive process to invite funding proposals from aggregators and other persons for the provision of environmental outcomes that will contribute toward the achievement of the Chesapeake Bay TMDL;
(ii)
Develop and use a scoring system to evaluate a submitted funding proposal;
(iii)
Provide each person that submits a funding proposal with a copy of the scoring system, including the weight given to the co–benefits specified under paragraph (3)(ii)2 of this subsection; and
(iv)
At least once a year, publicly announce a request for proposals or otherwise initiate a procurement process for environmental outcomes to be funded under this section.
(2)
The Department shall require each funding proposal submitted under this section to include:
(i)
The legal name of the person submitting the proposal;
(ii)
A description of the projects or practices to be used or implemented to achieve the environmental outcomes;
(iii)
The location where the projects or practices will be used or implemented;
(iv)
The expected life of each environmental outcome that will be achieved under the projects or practices;
(v)
To ensure that the applicant has the legal authority to implement the projects or practices, a description of the ownership of each parcel of land or facility that will be used in the projects or practices;
(vi)
A proposed quantification plan and verification procedure;
(vii)
An implementation timetable for the projects or practices;
(viii)
A proposed cost and payment schedule;
(ix)
An explanation of whether the proposal meets the requirements for funding specified in subsection (g) of this section;
(x)
If the projects or practices will achieve a co–benefit specified under paragraph (3)(ii)2 of this subsection, a description of the co–benefit, including as much information as is reasonably possible regarding the nature, extent, duration, and means of verifying the co–benefit;
(xi)
A statement on whether any portion of the projects or practices are being funded or will be funded, in whole or in part, with federal funds, local funds, or State funds other than funds provided under this section, and a description of any such funding, including:
(1)
The name of the department or agency providing the funds;
(2)
The amount of funding received or that will be received; and
(3)
The portion of the projects or practices for which the funds are being or will be provided; and
(xii)
Any other information required by the Department.
(3)
(i)
When initiating a competitive process under this subsection, the Department shall announce the criteria that will be used to evaluate funding proposals.
(ii)
When evaluating funding proposals, the Department shall prioritize the following factors in the following order:
(1)
The dollar cost per unit of environmental outcome; and
(2)
The provision of expected co–benefits related to:
(A)
Enhancing the mitigation of and resiliency to the anticipated adverse effects of climate changes;
(B)
Alleviating the environmental harms and risks borne by communities disproportionately burdened by environmental harms and risks as identified by the Department in consultation with the Commission on Environmental Justice and Sustainable Communities;
(C)
Contributing toward the attainment of water quality standards in a locally impaired watershed; or
(D)
Reductions in phosphorus or sediment loads that are directly measured or modeled by the Chesapeake Bay Program Models and can be counted toward the State’s pollution load reductions required under the Chesapeake Bay TMDL.
(l)
The Department shall:
(1)
Approve a process to verify environmental outcomes for which funding is provided under this section; and
(2)
Use consistent standards and processes for verifying environmental outcomes through the confirmation of modeling results, the confirmation of installations, or, where appropriate, the measurement of outcomes during or after the initiation of a project or practice.
(m)
An environmental outcome purchased under this section shall:
(1)
Result from a new project or practice designed and established following the selection of a proposal and the execution of a contract in accordance with this section;
(2)
Be in addition to any load reduction required by any federal, State, or local law, regulation, policy, or permit, including any applicable total maximum daily load; and
(3)
Be consistent with the Chesapeake Bay Program Models so as to ensure the load reductions will count toward the achievement of the Chesapeake Bay TMDL.
(n)
A contract entered into by the Department under this section may be funded for the expected life of the project or practice yielding the environmental outcome, not to exceed 20 years.
(o)
(1)
Subject to paragraph (2) of this subsection, a contract entered into by the Department under this section shall:
(i)
Require the owner of the project or practice to periodically submit status updates in accordance with the quantification plan for the environmental outcomes of the project or practice;
(ii)
Require that payment for environmental outcomes be conditioned on the achievement and verification of the environmental outcomes in accordance with the quantification plan;
(iii)
Include a schedule of payments that will be made as environmental outcomes are achieved and verified; and
(iv)
Require reporting on the amount of nitrogen and, to the extent that it can be feasibly determined without significant expense, phosphorus and sediment that are removed annually by the project or practice.
(2)
(i)
In entering into a contract for a project that includes construction, reconstruction, or rehabilitation, on request, under this section, the Department shall allow nonuniform payment schedules that allow for a cost–per–pound of nitrogen reduced that varies with the achievement of performance milestones, as agreed upon by both parties to the contract.
(ii)
The first performance milestone may not occur earlier than the time that the construction, reconstruction, or rehabilitation is complete.
(3)
In order to ensure the achievement of environmental outcomes agreed to in a contract, the Department may require:
(i)
A minimum final payment; and
(ii)
For a contract award greater than $500,000, additional financial protections, including a letter of credit, insurance instrument, or performance bond.
(p)
The Department shall:
(1)
Maintain a public registry for the environmental outcomes of each project or practice that includes:
(i)
A description of the project or practice and the associated spatial information; and
(ii)
To ensure that the environmental outcomes are maintained for the life expectancy of the environmental outcome, a summary of the contract provisions for the project or practice; and
(2)
Make the registry available to the public on the Department’s website.
(q)
(1)
(i)
Subject to subparagraph (ii) of this paragraph, a project or practice that is partially financed with another source of State funds may be funded under this section.
(ii)
Funding provided to a project or practice under this subsection shall be prorated to cover only the portion of the environmental benefit not funded by another State source.
(2)
(i)
An environmental outcome that is funded entirely with public funds is not eligible to be purchased with funds from the Account.
(ii)
If an environmental outcome is partially funded with public funds and is verified under subsection (l) of this section, funds from the Account may be used to purchase the remaining portion of the environmental outcome that is not funded with public funds.
(r)
In conjunction with the report required under § 9–1605.2(j)(6) of this subtitle, on or before December 31 each year, the Bay Restoration Fund Advisory Committee shall report, in accordance with § 2–1257 of the State Government Article, to the Senate Education, Health, and Environmental Affairs Committee and the House Environment and Transportation Committee on:
(1)
The total amount expended and encumbered under this section:
(i)
During the immediately preceding fiscal year; and
(ii)
Since July 1, 2022;
(2)
The amount and type of environmental outcomes purchased under this section and the types of projects or practices that produced those outcomes, including information on:
(i)
The cost per unit of nitrogen reduced or removed; and
(ii)
The relative contribution of each environmental outcome toward closing any gaps in achieving the nutrient and sediment targets of the Chesapeake Bay TMDL;
(3)
The type and value of any co–benefits provided by projects or practices funded under this section;
(4)
The cost–effectiveness of environmental outcomes purchased under this section as compared with other approaches to reducing nitrogen; and
(5)
For fiscal year 2025 only, any amendments to this section necessary to reflect historic and projected demand for funding from the Account and the Bay Restoration Fund, including an assessment and recommendation on possible changes to the percentages specified under subsection (f) of this section.
(s)
The Department may adopt regulations to implement this section.
Md. Code Ann., Envir. § 9-1606 (2026)
Title 9. Water, Ice, and Sanitary Facilities
Subtitle 16. Maryland Water Infrastructure Financing Administration
§ 9–1606LinkCopy Citation
(a)
(1)
A loan made by the Administration shall be evidenced by a loan agreement.
(2)
Loans made from the Water Quality Fund, except for loans made in accordance with § 9–1605(d)(9) of this subtitle, shall be subject to the provisions of § 9–1605(d)(1) of this subtitle.
(3)
Loans made from the Drinking Water Loan Fund, except for loans made in accordance with § 9–1605.1(d)(10) of this subtitle, shall be subject to the provisions of § 9–1605.1(d)(1) of this subtitle.
(4)
Loans made from the Private Dam Repair Fund shall be subject to the provisions of § 5–509.2 of this article.
(5)
Subject to the provisions of any applicable bond resolution, the Administration may consent to the modification, with respect to rate of interest, time of payment of any installment of principal or interest, security, or any other term of any loan agreement or loan obligation.
(6)
In connection with any security received by or owned by the Administration, including any loan obligations, the Administration may commence any action to protect or enforce the rights conferred upon it by any law or loan agreement or loan obligation.
(b)
Notwithstanding any other provision of public general or public local law, charter, or ordinance, a borrower may issue and sell loan obligations to the Administration:
(1)
At private sale, without public bidding;
(2)
Without regard to any limitations on the denomination of such obligations; and
(3)
At any interest rate or cost or at any price that the borrower considers necessary or desirable.
(c)
A borrower may pay any fees or charges necessary to enable the Administration to sell its bonds, including any fees for the insurance of its loan obligations or bonds of the Administration, or to provide any other guarantee, credit enhancement, or additional security for any such loan obligations or bonds.
(d)
(1)
Notwithstanding any other provision of public general or public local law, charter, or ordinance, a borrower may agree with the Administration to pledge any money that the borrower is entitled to receive from the State, including the borrower’s share of the State income tax, to secure its obligations under a loan agreement.
(2)
The State Comptroller and the State Treasurer shall cause any money withheld under such a pledge to be paid to, or applied at the direction of, the Administration.
(e)
Each loan agreement shall contain a provision whereby the borrower acknowledges and agrees that:
(1)
The borrower’s loan obligation is cancelable only upon repayment in full; and
(2)
Neither the Administration, the Secretary, nor the Board is authorized to forgive the repayment of all or any portion of the loan, except for:
(i)
Loans to disadvantaged communities, pursuant to the federal Safe Drinking Water Act;
(ii)
Loans made in accordance with §§ 9–1605(d)(9) and 9–1605.1(d)(10) of this subtitle; and
(iii)
Loans made in accordance with § 5–509.2(h) of this article.
(f)
(1)
In the event of a default on a loan obligation by a borrower other than a local government, the Administration may place a lien against property of the borrower securing the loan which, 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 §§ 14–804 and 14–805 of the Tax – Property Article.
(2)
The Administration may exercise the same rights and powers in enforcing such 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.
Md. Code Ann., Envir. § 9-1606.1 (2026)
Title 9. Water, Ice, and Sanitary Facilities
Subtitle 16. Maryland Water Infrastructure Financing Administration
§ 9–1606.1LinkCopy Citation
(a)
(1)
In this section the following words have the meanings indicated.
(2)
“Lender” means a financial institution that:
(i)
Is eligible to make commercial loans;
(ii)
Agrees to receive linked deposits under this subtitle; and
(iii)
(1)
Is a public depository of State funds insured by the Federal Deposit Insurance Corporation; or
(2)
Is an institution of the Farm Credit System organized under the Farm Credit Act of 1971, as amended.
(3)
“Linked deposit” means a deposit or investment that is placed by the Administration with a lender and earns income below the prevailing market rate for equivalent deposits or investments made with the lender at the time of the deposit or investment.
(4)
“Linked deposit loan” means a loan from a lender to a borrower that:
(i)
Is used for the purposes of § 9-1605(d)(6) or § 9-1605.1(d)(7) of this subtitle; and
(ii)
Is provided at an interest rate below the prevailing market rate to the same extent income earned on the linked deposit is below income paid on equivalent deposits.
(5)
“Linked Deposit Program” means a program established by the Administration whereby a linked deposit is placed with a lender based on the agreement of the lender to provide a linked deposit loan to a borrower.
(b)
(1)
A borrower desiring to acquire a linked deposit loan shall apply to a lender.
(2)
The Administration shall certify to a lender that a borrower is eligible for a linked deposit loan consistent with § 9-1605(d)(6) or § 9-1605.1(d)(7) of this subtitle.
(c)
Upon approval of a linked deposit loan by the lender, the Administration and lender shall enter into an agreement under which the amount and term of, and schedule for payment of principal and interest on, the linked deposit shall be determined.
(d)
On receiving a linked deposit from the Administration, the lender shall execute a loan commitment with the borrower.
(e)
A linked deposit loan is not a debt of the State or a pledge of the credit of the State.
Md. Code Ann., Envir. § 9-1607 (2026)
Title 9. Water, Ice, and Sanitary Facilities
Subtitle 16. Maryland Water Infrastructure Financing Administration
§ 9–1607LinkCopy Citation
(a)
The Administration may, subject to the prior approval of the Board and the Secretary, issue bonds for the purpose of providing moneys for deposit to a fund.
(b)
With respect to each issue of bonds, the Director shall adopt a bond resolution determining:
(1)
The date or dates of issue;
(2)
The date or dates of maturity and the amount or amounts maturing on such date or dates;
(3)
The fixed or variable rate or rates of interest payable on the bonds, or manner of determining the same, and the date or dates of such payment;
(4)
The form or forms and denomination or denominations, manner of execution and the place or places of payment of the bonds and of the interest thereon, which may be at any bank or trust company within or without this State;
(5)
Whether the bonds or any part thereof shall be made redeemable before maturity and, if so, upon what terms, conditions, and prices; and
(6)
Any other matter relating to the forms, terms, conditions, issuance, and sale of the bonds.
(c)
No person executing the bonds or approving the issuance of the bonds shall be liable personally on the bonds or subject to any personal liability by reason of the issuance of the bonds.
(d)
The Administration may enter into agreements with agents, banks, insurers, or others for the purpose of enhancing the marketability of or as security for the bonds.
Md. Code Ann., Envir. § 9-1608 (2026)
Title 9. Water, Ice, and Sanitary Facilities
Subtitle 16. Maryland Water Infrastructure Financing Administration
§ 9–1608LinkCopy Citation
(a)
If any officer whose signature or a facsimile of whose signature appears on any bonds shall cease to be such officer before the delivery of the bonds, such signature or such facsimile shall nevertheless be valid and sufficient for all purposes the same as if he or she had remained in office until such delivery.
(b)
Notwithstanding any other provisions of this subtitle or any recitals in any bonds issued hereunder, all such bonds shall be deemed to be negotiable instruments under the laws of this State.
(c)
The bonds shall be exempt from the provisions of §§ 19–205 and 19–206 of the Local Government Article and §§ 8–206 and 8–208 of the State Finance and Procurement Article, and the Administration may sell such bonds in such manner, either at public or at private sale, and for such price as it may determine.
Md. Code Ann., Envir. § 9-1609 (2026)
Title 9. Water, Ice, and Sanitary Facilities
Subtitle 16. Maryland Water Infrastructure Financing Administration
§ 9–1609LinkCopy Citation
(a)
The Administration is authorized, subject to the prior approval of the Board and the Secretary, to provide for the issuance of its bonds for the purpose of refunding any bonds of the Administration then outstanding, including the payment of any redemption premium thereon and any interest accrued or to accrue to the earliest or any subsequent date of redemption, purchase, or maturity of such bonds. Refunding bonds may be issued in the discretion of the Director for any public purpose, including, without limitation, the public purposes of realizing savings in the effective costs of debt service, directly or through a debt restructuring, or alleviating an impending or actual default, or relieving the Administration of contractual agreements which in the opinion of the Director have become unreasonably onerous or impracticable or impossible to perform. Refunding bonds, in one or more series, may be issued in an amount in excess of that of the bonds to be refunded. Without limiting the extent of any sources of payment provided by the Administration, refunding bonds may be made payable from escrowed bond proceeds and from interest, income, and profits, if any, on investments.
(b)
The proceeds of any bonds issued for the purpose of refunding outstanding bonds may, in the discretion of the Director, be applied to the purchase or retirement at maturity or redemption of such outstanding bonds either on their earliest or any subsequent redemption date, and may, pending such application, be placed in escrow to be applied to such purchase or retirement at maturity or redemption on such date as may be determined by the Director.
(c)
Any such escrowed proceeds, pending such use, may be invested and reinvested in obligations of or guaranteed by the United States of America, or in certificates of deposit or time deposits secured by obligations of or guaranteed by the United States of America, maturing at such time or times as shall be appropriate to assure the prompt payment, as to principal, interest, and redemption premium, if any, of the outstanding bonds to be so refunded. The interest, income and profits, if any, earned or realized on any such investment may also be applied to the payment of the outstanding bonds to be so refunded. After the terms of the escrow have been fully satisfied and carried out, any balance of such proceeds and interest, income, and profits, if any, earned or realized on the investments thereof may be returned to the Administration for use by it in any lawful manner.
Md. Code Ann., Envir. § 9-1610 (2026)
Title 9. Water, Ice, and Sanitary Facilities
Subtitle 16. Maryland Water Infrastructure Financing Administration
§ 9–1610LinkCopy Citation
The Administration is further authorized and empowered, subject to the prior approval of the Board and the Secretary:
(1)
To issue, prior to the preparation of definitive bonds, interim receipts or temporary bonds, exchangeable for definitive bonds when such bonds have been executed and are available for delivery; and
(2)
To issue and sell its bond anticipation notes, the principal of and interest on such notes to be made payable to the owner or owners thereof out of the first proceeds of sale of bonds therein designated, and to issue and sell its revenue anticipation notes or grant anticipation notes, the principal of and interest on such notes to be made payable to the owner or owners thereof out of the first receipts of the revenues or grants, as the case may be, therein designated. The authorizing resolution may make provision for the issuance of such notes in series as funds are required and for the renewal of such notes at maturity with or without resale. The issuance of such notes and the details thereof, the rights of the holders thereof, and the rights, duties, and obligations of the Administration in respect thereto shall be governed by the provisions of this subtitle relating to bonds, insofar as the same may be applicable.
Md. Code Ann., Envir. § 9-1611 (2026)
Title 9. Water, Ice, and Sanitary Facilities
Subtitle 16. Maryland Water Infrastructure Financing Administration
§ 9–1611LinkCopy Citation
(a)
Bonds may be secured by a trust agreement by and between the Administration and a corporate trustee, which may be any trust company or bank having trust powers, within or without the State. Such trust agreement may pledge or assign all or any part of the revenues or corpus of the Water Quality Fund, Drinking Water Loan Fund, the Bay Restoration Fund, or the Chesapeake and Atlantic Coastal Bays Nonpoint Source Fund, or any account within these funds, and may pledge or assign or grant a lien on or security interest in any loan agreement or loan obligation. Any such trust agreement or resolution authorizing the issuance of bonds may contain such provisions for the protection and enforcement of the rights and remedies of the bondholders as may be deemed reasonable and proper, including covenants setting forth the duties of the Administration in relation to the making, administration and enforcement of loans and the custody, safeguarding and application of moneys. Such trust agreement may set forth the rights and remedies of the bondholders and of the trustee and may restrict the individual right of action by bondholders. In addition to the foregoing, such trust agreement may contain such other provisions as the Director may deem reasonable and proper for the security of the bondholders, including, without limitation, covenants pertaining to the issuance of additional parity bonds upon conditions stated therein consistent with the requirements of this subtitle.
(b)
The proceeds of the sale of bonds shall be disbursed in such manner and under such restrictions, if any, as may be provided in such trust agreement.
(c)
(1)
The revenues and moneys designated as security for bonds shall be set aside at such regular intervals as may be provided in the bond resolution in a special account in the Water Quality Fund, if the net sale proceeds will be deposited in the Water Quality Fund, the Drinking Water Loan Fund, if the net sale proceeds will be deposited in the Drinking Water Loan Fund, the Bay Restoration Fund, if the net sale proceeds will be deposited in the Bay Restoration Fund, or the Chesapeake and Atlantic Coastal Bays Nonpoint Source Fund, if the net sale proceeds will be deposited in the Chesapeake and Atlantic Coastal Bays Nonpoint Source Fund, which is pledged to, and charged with, the payment of:
(i)
The interest upon such bonds as such interest falls due;
(ii)
The principal of such bonds as it falls due;
(iii)
The necessary charges of the trustee, bond registrar, and paying agents; and
(iv)
The redemption price or purchase price of bonds retired by call or purchase as provided in the bond resolution or trust agreement.
(2)
Any amounts set aside in such special account which are not needed to provide for the payment of the items included under paragraph (1) of this subsection may be used for any other lawful purpose, to the extent provided in the bond resolution. Such pledge shall be valid and binding from the time when the pledge is made. Such revenues or other moneys so pledged and thereafter received by the Administration shall immediately be subject to the lien of such pledge without any physical delivery thereof or further act, and the lien of any such pledge shall be valid and binding as against all parties having any claims of any kind in tort, contract, or otherwise against the Administration or the Water Quality Fund, the Drinking Water Loan Fund, the Bay Restoration Fund, or the Chesapeake and Atlantic Coastal Bays Nonpoint Source Fund, irrespective of whether such parties have notice thereof. Neither the bond resolution nor any trust agreement by which a pledge is created need be filed or recorded except in the records of the Administration, any public general or public local law to the contrary notwithstanding.
(d)
Any net earnings of the Administration, beyond that necessary for the retirement of bonds or to implement the public purposes or programs of the Administration, shall not inure to the benefit of any person, other than the State of Maryland for use to accomplish the purposes of this subtitle.
Md. Code Ann., Envir. § 9-1612 (2026)
Title 9. Water, Ice, and Sanitary Facilities
Subtitle 16. Maryland Water Infrastructure Financing Administration
§ 9–1612LinkCopy Citation
Any owner of bonds and the trustee, except to the extent the rights herein given may be restricted by a bond resolution, may, either at law or in equity, by suit, action, mandamus, or other proceedings, protect and enforce any and all rights under the laws of this State or granted hereunder or under the bond resolution, and may enforce and compel the performance of all duties required by this subtitle or by a bond resolution to be performed by the Administration or by any officer, employee, or agent thereof.
Md. Code Ann., Envir. § 9-1613 (2026)
Title 9. Water, Ice, and Sanitary Facilities
Subtitle 16. Maryland Water Infrastructure Financing Administration
§ 9–1613LinkCopy Citation
Bonds are securities in which all public officers and public bodies of the State of Maryland and its political subdivisions and all banks, trust companies, savings and loan associations, investment companies and others carrying on a banking business, all insurance companies and insurance associations and others carrying on an insurance business, all personal representatives, executors, administrators, guardians, trustees and other fiduciaries, and all other persons may legally and properly invest funds, including capital in their control or belonging to them. Bonds are securities which may properly and legally be deposited with and received by a State or municipal officer or any agency or political subdivision of the State for any purpose for which the deposit of bonds or other obligations of the State is now or may hereafter be authorized by law.
Md. Code Ann., Envir. § 9-1614 (2026)
Title 9. Water, Ice, and Sanitary Facilities
Subtitle 16. Maryland Water Infrastructure Financing Administration
§ 9–1614LinkCopy Citation
(a)
The bonds shall not be deemed to constitute a debt, liability, or a pledge of the faith and credit of the State of Maryland or of any political subdivision thereof other than the Administration, but such bonds shall be payable solely from the revenues and funds herein provided therefor. However, this section does not limit the ability of a borrower to set, impose, levy, or collect an assessment, rate, fee, tax or charge to pay to the Administration any amounts required under a loan agreement or loan obligation of the borrower.
(b)
Notwithstanding any other provision of public general or public local law, charter, or ordinance regulating the creation of public debts or the making of contracts, a local government may enter into a loan agreement with the Administration for the purpose of financing all or a portion of the cost of a wastewater facility or water supply system. The express powers contained and enumerated in Titles 5 and 10 of the Local Government Article and in the charter of the City of Baltimore are deemed to incorporate and include the power and authority contained in this section.
Md. Code Ann., Envir. § 9-1615 (2026)
Title 9. Water, Ice, and Sanitary Facilities
Subtitle 16. Maryland Water Infrastructure Financing Administration
§ 9–1615LinkCopy Citation
The bonds of the Administration, their transfer, the interest payable thereon, and any income derived therefrom, including any profit realized in the sale or exchange thereof, shall at all times be exempt from taxation of every kind and nature whatsoever by the State of Maryland or by any of its political subdivisions, municipal corporations, or public agencies of any kind.
Md. Code Ann., Envir. § 9-1616 (2026)
Title 9. Water, Ice, and Sanitary Facilities
Subtitle 16. Maryland Water Infrastructure Financing Administration
§ 9–1616LinkCopy Citation
The Administration shall not be required to give any bond as security for costs, supersedeas, or any other security in any suit or action brought by or against it, or in proceedings to which it may be a party, in any court of this State, and the Administration shall have the remedies of appeal of whatever kind to all courts without bonds, supersedeas, or security of any kind. No builder’s, materialman’s, contractor’s, laborer’s, or mechanic’s liens of any kind or character shall ever attach to or become a lien upon the Water Quality Fund, the Drinking Water Loan Fund, the Bay Restoration Fund, or the Chesapeake and Atlantic Coastal Bays Nonpoint Source Fund, or any property, real or personal, belonging to the Administration and no assignment of wages shall be binding upon or recognized by the Administration.
Md. Code Ann., Envir. § 9-1617 (2026)
Title 9. Water, Ice, and Sanitary Facilities
Subtitle 16. Maryland Water Infrastructure Financing Administration
§ 9–1617LinkCopy Citation
The Administration shall make provision for a system of financial accounting, controls, audits, and reports in accordance with generally accepted principles of governmental accounting. All accounting systems and records, auditing procedures and standards, and financial reporting for the Water Quality Fund, the Drinking Water Loan Fund, and the Bay Restoration Fund shall conform to the requirements of Title VI of the Federal Water Pollution Control Act, the federal Safe Drinking Water Act, and the Bay Restoration Fund Act, as applicable and, to the extent not inconsistent therewith, generally accepted principles of governmental accounting. As soon as practical after the closing of the fiscal year, an audit shall be made of the financial books, records, and accounts of the Administration. The audit shall be made by independent certified public accountants, selected by the Administration, and licensed to practice in the State as auditors. The auditors may not have a personal interest either directly or indirectly in the fiscal affairs of the Administration. They shall be experienced and qualified in the accounting and auditing of public bodies. The report of audit shall be prepared in accordance with generally accepted auditing principles and point out any irregularities found to exist. The auditors shall report to the Secretary the results of their examination, including their unqualified opinion on the presentation of the financial positions of the Water Quality Fund, the Drinking Water Loan Fund, and the Bay Restoration Fund, and the results of the Administration’s financial operations. If they are unable to express an unqualified opinion they shall state and explain in detail the reasons for their qualifications, disclaimer, or opinion including recommendations necessary to make possible future unqualified opinions.
Md. Code Ann., Envir. § 9-1617.1 (2026)
Title 9. Water, Ice, and Sanitary Facilities
Subtitle 16. Maryland Water Infrastructure Financing Administration
§ 9–1617.1LinkCopy Citation
(a)
(1)
The Administration shall make provisions for a system of financial accounting, controls, audits, and reports in accordance with generally accepted principles of governmental accounting.
(2)
All accounting systems and records, auditing procedures and standards, and financial reporting for the Water Quality Fund, the Drinking Water Loan Fund, the Bay Restoration Fund, and the Chesapeake and Atlantic Coastal Bays Nonpoint Source Fund shall conform to the requirements of Title VI of the Federal Water Pollution Control Act, the federal Safe Drinking Water Act, the Bay Restoration Fund Act, and the Chesapeake and Atlantic Coastal Bays 2010 Trust Fund under Title 8, Subtitle 2A of the Natural Resources Article, as applicable, and generally accepted principles of governmental accounting.
(b)
(1)
As soon as practical after the closing of the fiscal year, an audit shall be made of the financial books, records, and accounts of the Administration.
(2)
The audit shall be made by independent certified public accountants, selected by the Administration, and licensed to practice in the State as auditors.
(3)
The auditors:
(i)
May not have a personal interest either directly or indirectly in the fiscal affairs of the Administration; and
(ii)
Shall be experienced and qualified in the accounting and auditing of public bodies.
(4)
The audit report shall be prepared in accordance with generally accepted auditing principles and point out any irregularities found to exist.
(5)
(i)
The auditors shall report to the Secretary the results of their examination, including their unqualified opinion on the presentation of the financial positions of the Water Quality Fund, the Drinking Water Loan Fund, the Bay Restoration Fund, and the Chesapeake and Atlantic Coastal Bays Nonpoint Source Fund and the results of the Administration’s financial operations.
(ii)
If the auditors are unable to express an unqualified opinion, the auditors shall state and explain in detail the reasons for their qualifications, disclaimer, or opinion including recommendations necessary to make possible future unqualified opinions.
Md. Code Ann., Envir. § 9-1617.2 (2026)
Title 9. Water, Ice, and Sanitary Facilities
Subtitle 16. Maryland Water Infrastructure Financing Administration
§ 9–1617.2LinkCopy Citation
On or before November 1 each year, beginning in 2024, the Administration shall report to the General Assembly, in accordance with § 2–1257 of the State Government Article, on the amounts allocated by type of assistance provided under the Water Quality Fund and the Drinking Water Loan Fund to support each type of green and blue infrastructure.
Md. Code Ann., Envir. § 9-1618 (2026)
Title 9. Water, Ice, and Sanitary Facilities
Subtitle 16. Maryland Water Infrastructure Financing Administration
§ 9–1618LinkCopy Citation
The Administration shall continue until terminated by law, except that no such law shall take effect so long as the Administration shall have bonds outstanding, unless adequate provision has been made for the payment thereof. Upon termination of the existence of the Administration, all its rights and properties shall pass to and be vested in the State.
Md. Code Ann., Envir. § 9-1619 (2026)
Title 9. Water, Ice, and Sanitary Facilities
Subtitle 16. Maryland Water Infrastructure Financing Administration
§ 9–1619LinkCopy Citation
The provisions of this subtitle are severable, and if any of its provisions are held unconstitutional by any court of competent jurisdiction, the decision of the court shall not affect or impair any of the remaining provisions.
Md. Code Ann., Envir. § 9-1620 (2026)
Title 9. Water, Ice, and Sanitary Facilities
Subtitle 16. Maryland Water Infrastructure Financing Administration
§ 9–1620LinkCopy Citation
This subtitle shall be deemed to provide an additional and alternative method for the doing of things authorized hereby and shall be regarded as supplemental and additional to powers conferred by other laws, and shall not be regarded as in derogation of any powers now existing.
Md. Code Ann., Envir. § 9-1621 (2026)
Title 9. Water, Ice, and Sanitary Facilities
Subtitle 16. Maryland Water Infrastructure Financing Administration
§ 9–1621LinkCopy Citation
This subtitle, being necessary for the welfare of the State and its inhabitants, shall be liberally construed to effect the purposes hereof.
Md. Code Ann., Envir. § 9-1622 (2026)
Title 9. Water, Ice, and Sanitary Facilities
Subtitle 16. Maryland Water Infrastructure Financing Administration
§ 9–1622LinkCopy Citation
This subtitle may be cited as the Maryland Water Infrastructure Financing Administration Act.