# Natural Resources (GNR)

## Title 3. Environmental Programs

### Subtitle 1. Maryland Environmental Service

#### Section 3-101

(a) In this subtitle the following words and terms have the meanings indicated.

(b) "Board" means the Board of Directors of the Maryland Environmental Service.

(c) "Bonds" means all bonds or other evidences of indebtedness of the Service other than notes, whether general or limited obligations of the Service.

(d) "Cost" as applied to a water supply project, a solid waste disposal project, a wastewater purification project, an energy project, a service area, a service district, or to any activity undertaken by the Service, includes: (1) the cost of construction or acquisition, including the purchase price of any existing project or the cost of acquiring all or any portion of the right, title, or interest in the project and the amount to be paid to discharge all obligations necessary to vest title to the project or any part of it in the Service or other owner; (2) the cost of any reconstruction, extension, enlargement, alteration, repair, or improvement; (3) the cost of all lands, properties, rights, easements, interests, franchises, and permits acquired; (4) the cost of all labor, machinery and equipment, financing charges, interest prior to and during construction and for such period after completion of construction as the Service deems appropriate; (5) the cost of revenue estimates, engineering and legal services, plans, designs, specifications, surveys, investigations, demonstrations, studies, estimates of cost, other expenses necessary or incident to determining the feasibility or practicability of any such acquisition, improvement, or construction; (6) administrative and overhead expenses, and all expenses necessary or incidental to the financing herein authorized, and to the acquisition, operation, maintenance, improvement, construction of water supply, liquid, solid waste, and energy project facilities, and the placing of these project facilities in operation, including reasonable provision for working capital; (7) reserves for principal and interest and for extensions, enlargements, additions and improvements. Any obligation or expense incurred prior to the issuance of bonds or notes under the provisions of this title in connection with the foregoing items of cost may be regarded as a part of such costs.

(e) The word "county" includes Baltimore City unless otherwise indicated.

(f) "Energy project" means any service, facility, system, or property, real or personal, used, useful, or having present capacity for use in connection with:

  (1) Energy conservation; or

  (2) The production, generation, or distribution of energy from a renewable or other energy source.

(g) "Executive Director" means the Executive Director of the Maryland Environmental Service.

(h) "Facility" means a physical structure or appurtenance built, constructed, acquired, installed, or established to perform a function or service in connection with a water supply, wastewater purification, solid waste disposal, or energy project whether publicly or privately owned and whether existing or proposed.

(i) "Liquid waste" means:

  (1) Stormwater runoff; and

  (2) Any water-carried wastes or wastes which are liquid in nature created in and carried away, or to be carried away, from residences, institutions, industrial establishments, commercial establishments, or any other public or private building, structure, or facility.

(j) "Municipality" means any county, municipal corporation, sanitary district, State or local unit, the District of Columbia, the United States or any of its units, or other public body or unit created or established by or in accordance with federal, State, or local law, ordinance, or resolution.

(k) "Notes" means bond anticipation notes, revenue anticipation notes, and grant anticipation notes of the Service, whether general or limited obligations of the Service.

(l) "Person" means any natural person, individual, firm, partnership, association, cooperative, limited liability company, corporation, or other entity.

(m)

  (1) "Project" means a solid waste disposal project, a wastewater purification project, a water supply project, or an energy project, as the case may be.

  (2) "Project" includes any service, facility, or property used or useful or having present capacity for future use in connection with:

    (i) The transporting, transferring, compacting, burying, incinerating, reduction, composting, collection, storage, treatment, utilization, processing, or final disposal of liquid wastes, solid wastes or water, as the case may be;

    (ii) The conversion of liquid wastes, solid wastes or water, as the case may be, to fuel, steam, electricity, energy, or other resources or the generation of steam, electricity, or other forms of energy from fuel which is derived from, or is otherwise related to, liquid wastes, solid wastes or water, as the case may be;

    (iii) The reconstruction, converting or otherwise recycling of liquid wastes, solid wastes or water, as the case may be, into material which is not liquid waste, solid waste or water or which is useful or is marketable; or

    (iv) Any combination of items (i) through (iii) of this paragraph, whether or not such facilities are located on a single site.

  (3) "Project" also includes:

    (i) Waste disposal facilities, pollution control facilities, and facilities for generating and furnishing electric energy or gas or other forms of energy which can be financed by bonds the interest on which is exempt from income tax under the Internal Revenue Code of 1986, as amended, whether such interest would have been tax exempt at the time of the enactment of this subtitle or of any amendment thereto; and

    (ii) Any facilities and properties within the definition of "project", "solid waste disposal project", "wastewater purification project", "water supply project", or "energy project" set forth in this subsection, whether or not such facilities or properties can be financed by bonds the interest on which is tax exempt under the Internal Revenue Code of 1986, as amended, it being the purpose and intent of this subtitle that the terms "project", "solid waste disposal project", "wastewater purification project", "water supply project", and "energy project" be liberally construed so as to effectuate the purposes of this subtitle.

  (4) "Project", "solid waste disposal project", "wastewater purification project", "water supply project", and "energy project" include land, buildings, structures, machinery, equipment, rail or motor vehicles, barges, boats, and all properties and rights therein and appurtenances thereof, rights-of-way, franchises, easements, and other interests in land, all land and facilities that are functionally or administratively related and subordinate to the solid waste disposal project, wastewater purification project, water supply project, or energy project, as the case may be, and all patents, licenses, and other rights necessary or useful in the planning, development, construction, or operation of a solid waste disposal project, wastewater purification project, water supply project, or energy project.

(n) "Service" means the Maryland Environmental Service.

(o) "Service district" means a geographic area established by the Service, after consultation with the municipalities affected, for the purpose of providing water supply projects, wastewater purification projects or solid waste disposal projects. Service districts may encompass areas containing projects of the Service as well as nonduplicating, noncompetitive projects owned and operated by municipalities or persons. Service districts shall be based upon approved State-county master water and sewerage plans or solid waste disposal plans, if any, adopted pursuant to the Environment Article, but they may also take account of other plans and studies.

(p) "Service region" means a geographic area which the Maryland Environmental Service designates and within which the Executive Director, after consultation with the municipalities affected, causes surveys, plans, studies, and estimates to be made for the purpose of determining the most dependable, effective, and efficient means of providing services through water supply projects, solid waste disposal projects, or wastewater purification projects. Service regions shall be based upon needs set forth in approved State-county master water and sewerage plans, or solid waste disposal plans, if any, adopted pursuant to the Environment Article, but they may also take account of other plans and studies.

(q) "Solid waste disposal project" means any service, facility, or real or personal property used or useful or having present capacity for future use in connection with the measurement, management, collection, disposal, prevention, or recycling of solid wastes by any means, including disposal, recovery, or reuse to produce energy or products, or otherwise.

(r) "Solid wastes" means all waste materials, whether solid, liquid, or gas, including liquid wastes. The term includes garbage, rubbish, ashes, incinerator residue, wastewater treatment residue, street cleanings, dredged materials, dead animals, demolition and construction debris, household appliances, hazardous materials, automobile bodies, offal, paunch manure, methane or any other gases, sewage sludge and solid or gaseous waste materials from commercial, agricultural, residential, industrial, or community activities.

(s) "Wastewater purification project" means any service, facility, or property, real or personal, used or useful or having present capacity for future use in connection with the measurement, management, prevention, redirection, collection, or treatment of liquid wastes.

(t) "Water supply project" means any service, facility, or property, real or personal, used, useful, or having present capacity for future use in connection with water supply, protection, and distribution, including any water treatment facility or property and rights therein and appurtenances thereto.

#### Section 3-102

(a) To assist with the preservation, improvement, and management of the quality of air, land, water, and natural resources, and to promote the health and welfare of the citizens of the State, it is the intention of the General Assembly in enactment of this subtitle to provide for dependable, effective, and efficient water supply and purification and disposal of liquid and solid wastes, to encourage reductions in the amount of waste generated and discharged to the environment and the generation of energy and the recovery of useable resources from such waste to the extent practicable; to promote the conservation of energy usage and to enable and provide for the production of energy from solid wastes and renewable and other sources; to encourage private sector participation in environmental protection; and to serve its political subdivisions and economic interests. For these purposes, the General Assembly creates an instrumentality of the State constituted as a body politic and corporate to provide water supply wastewater purification and disposal, solid and hazardous waste disposal, and energy conservation, generation, and transmission services in compliance with State and federal laws, regulations, and policies governing air, land, and water pollution to public and private instrumentalities, and with safeguards to protect the autonomy of the political subdivisions and the rights of the private entities it serves. It is also the intent of the General Assembly that the instrumentality may not participate in competitive bidding with the private sector to provide its services.

(b) This subtitle shall be liberally construed to effect its purposes. However, nothing contained in it shall restrict any control which the Departments of the Environment and Natural Resources, or of their units, are empowered to exercise over any water supply, wastewater purification, solid waste disposal, or energy project authorized by this subtitle, nor interfere with or affect the operation of existing wastewater purification, water supply, solid waste disposal, or energy projects found by the Secretary of the Environment to be adequately and lawfully operated by municipalities having jurisdiction or responsibility for them, except by their express consent and agreement. Nothing in this subtitle shall restrict any control which the Public Service Commission is empowered to exercise over any energy project authorized by this subtitle.

(c) Nothing in this subtitle shall be construed to alter, change, or modify the zoning or land use planning authority of any municipality or public instrumentality or cause a municipality or public instrumentality to take action inconsistent with the county solid waste management plan required under Title 9, Subtitle 5 of the Environment Article.

#### Section 3-103

(a)

  (1) There is a body politic and corporate known as the "Maryland Environmental Service".

  (2) The Service is an instrumentality of the State and a public corporation by that name, style, and title, and the exercise by the Service of the powers conferred by this subtitle is the performance of an essential governmental function of the State.

(b)

  (1) There are four officers of the Service:

    (i) An Executive Director;

    (ii) A Deputy Director;

    (iii) A Secretary; and

    (iv) A Treasurer.

  (2)

    (i) The four officers of the Service shall be appointed in accordance with this paragraph.

    (ii)

      (1) The Executive Director shall be appointed by the Governor, with the advice and consent of the Senate solely with regard to the qualifications for the duties of the office.

      (2) The Executive Director serves at the pleasure of the Board with the concurrence of the Governor and shall receive such compensation as may be determined by the Board.

    (iii)

      (1) The Deputy Director shall be appointed by the Executive Director with the approval of the Governor solely with regard to the qualifications for the duties of the office.

      (2) The Deputy Director serves at the pleasure of the Executive Director and shall receive such compensation as may be determined by the Board.

    (iv)

      (1) The Secretary and the Treasurer shall be selected by the Board from among the Board's members.

      (2) The Secretary and the Treasurer serve at the pleasure of the Board and shall receive such compensation as may be reasonably determined by the Board.

  (3) The Board of Directors of the Service shall consist of the following members:

    (i) The Executive Director, who shall serve as a nonvoting member;

    (ii) The following two members, who shall each serve as a nonvoting member:

      (1) One member of the Senate of Maryland, appointed by the President of the Senate; and

      (2) One member of the House of Delegates, appointed by the Speaker of the House;

    (iii) The Secretary of Planning, or the Secretary's designee;

    (iv) Three members from the public sector in the State in positions responsible for environmental, water, wastewater, or solid waste management;

    (v) One member from the private sector in the State with technical, financial, development, or legal experience related to environmental, water, wastewater, or solid waste management;

    (vi) One member from the private sector in the State with financial experience related to environmental, water, wastewater, or solid waste management; and

    (vii) One member from the private sector in the State with experience or expertise in matters related to business ethics, preferably involving board of director ethics and conflicts of interest.

  (4)

    (i) Subject to subparagraphs (ii), (iii), and (iv) of this paragraph, the public sector and private sector members of the Board, as set forth in paragraph (3)(iv) through (vii) of this subsection shall be appointed by the Governor with the advice and consent of the Senate.

    (ii) The Governor shall select at least one of the public sector members of the Board from a list of recommendations jointly compiled by the Maryland Association of Counties and the Maryland Municipal League.

    (iii) The Governor may not appoint an employee of the Service to the Board.

    (iv) At least one of the public sector or private sector members shall be a resident of a rural county in the State.

  (5)

    (i) Five members constitute a quorum for the transaction of business of the Board.

    (ii) The affirmative vote of at least five members is necessary for any action taken by the Board.

  (6) Those members of the Board not already holding a public office shall receive from the Service:

    (i) Per diem compensation as established by the Board; and

    (ii) Reimbursement for expenses under Standard State Travel Regulations.

  (7) The term of a member other than the Secretary of Planning, a member appointed under paragraph (3)(ii) of this subsection, and the Executive Director is 4 years.

  (8) The terms of members other than the Secretary of Planning, a member appointed under paragraph (3)(ii) of this subsection, and the Executive Director are staggered as required by the terms provided for those members of the Board on July 1, 2021.

  (9) At the end of a term, a member continues to serve until a successor is appointed and qualifies.

  (10) A member who is appointed after a term has begun serves only the remainder of that term and until a successor is appointed and qualifies.

  (11) A member of the Board who is appointed under paragraph (3)(iii) through (vi) of this subsection may serve only two consecutive full 4-year terms, plus any partial term served before the initial 4-year term.

  (12) Subject to paragraphs (13) and (14) of this subsection, the Board shall select a Chair from among the Board's members.

  (13) The Executive Director may not serve as the Secretary, Treasurer, or Chair of the Board.

  (14) The Secretary of Planning or a member appointed under paragraph (3)(ii) of this subsection may not serve as the Secretary, Treasurer, or Chair of the Board.

(c)

  (1) The Executive Director:

    (i) Is the administrative head of the Service;

    (ii) Is directly responsible to the Board and shall advise the Board on all matters assigned to the Service;

    (iii) Shall carry out the Board's policies related to the Service;

    (iv) Shall, at each regular meeting of the Board, present a detailed and itemized accounting and explanation of all expenses incurred by or on behalf of the Executive Director and the Deputy Director that, in the aggregate and calculated from the date of the previous regular meeting through the day before the date of the regular meeting at which the expenses will be presented, exceed $500; and

    (v) Is responsible for the exercise of all powers and duties conferred upon the Service by the provisions of this subtitle except for those powers and duties specifically conferred by this subtitle on the Secretary, Treasurer, or Board.

  (2) The voting members of the Board shall:

    (i) Establish the criteria and procedures for evaluating the Executive Director;

    (ii) Publish the criteria and procedures established under item (i) of this paragraph on the Service's website; and

    (iii) Annually evaluate the Executive Director in accordance with the criteria and procedures established under item (i) of this paragraph.

  (3) The Deputy Director shall have the duties provided by law or delegated by the Executive Director.

(d)

  (1) The Secretary:

    (i) Shall keep a record of the proceedings of the Board and be custodian of all books, documents, and papers filed with the Service and of the minute book or journal of the Service and its official seal;

    (ii) May have copies made of all minutes, records, and documents of the Service and certify them to be true copies under the official seal of the Service; and

    (iii) May, with the approval of the Board, delegate to another member of the Board, during an absence of the Secretary, any duty enumerated in items (i) and (ii) of this paragraph.

  (2) Any person dealing with the Service may rely on the certificates described in paragraph (1)(ii) of this subsection, and certified copies shall be received as evidence in any court or other tribunal in the State, in the same manner and with the same effect as if the original books, papers, entries, records, or proceedings could be produced.

  (3) With the approval of the Board, the Secretary may authorize an employee of the Service to serve as Deputy Secretary and to perform the functions set forth under paragraphs (1) and (2) of this subsection on behalf of the Secretary, subject to any restrictions and conditions that the Secretary establishes.

(e)

  (1)

    (i) The Treasurer shall:

      (1) Develop and maintain a detailed and accurate accounting system for all financial transactions of the Service; and

      (2) Perform other duties relating to the financial affairs of the Service as required by law or by a directive of the Board.

    (ii) Unless any money of the Service is otherwise held by or payable to a trustee appointed pursuant to a resolution authorizing the issuance of bonds or notes or under a trust agreement securing the bonds or notes, the Treasurer shall:

      (1) Receive money of the Service until otherwise prescribed by law; and

      (2) Deposit the money as soon as it is received to the credit of the Service in any financial institution in which the State Treasurer is authorized to deposit State funds.

    (iii) The Treasurer shall disburse money for the purposes of the Service according to law, only upon the Treasurer's warrant.

    (iv) The Treasurer shall make arrangements for the payment of the interest on and principal of the Service debt.

    (v) Upon entering the performance of official duties, the Treasurer shall be covered by a surety bond or an insurance policy of the type and in the amount of coverage determined by the State Treasurer under Sec. 5-108 of the State Government Article.

  (2)

    (i) With the approval of the Board, the Treasurer may authorize an employee of the Service to serve as Deputy Treasurer and to perform any of the functions set forth under paragraph (1) of this subsection, subject to restrictions and other conditions that the Treasurer establishes.

    (ii) The Deputy Treasurer shall be covered by a surety bond or an insurance policy of the type and in the amount of coverage determined by the State Treasurer under Sec. 5-108 of the State Government Article.

(f)

  (1) The Attorney General of Maryland shall:

    (i) Be the legal advisor for the Service and the Board; and

    (ii) Enforce compliance with the requirements of this subtitle through any appropriate legal remedy and prosecute violations in accordance with the provisions of this subtitle.

  (2)

    (i) The Attorney General shall assign to the Service the number of assistant Attorneys General and other staff requested by the Service.

    (ii) One of the assistant Attorneys General shall be designated by the Attorney General as counsel to the Service.

    (iii) The counsel to the Service shall have no other duty than to render, subject to the discretion and control of the Attorney General, the legal aid, advice, and counsel required by the Executive Director, the Board, and the other officials of the Service and, also subject to the discretion and control of the Attorney General, to supervise the other assistant Attorneys General assigned to the Service.

    (iv) The counsel and every other assistant Attorney General assigned to the Service shall be practicing lawyers of this State in good standing and shall be entitled to a salary from the funds of the Service.

    (v) After the Attorney General has designated an assistant Attorney General to serve as counsel to the Service, the Attorney General may not reassign the counsel without consulting with the Executive Director and the Board.

    (vi) With the approval of the Attorney General and the Board, the Service may employ additional counsel that it considers necessary to carry out the provisions of this subtitle.

(g)

  (1) The Service is exempt from the provisions of Subtitles 3, 4, 5, and 7 of Title 4 of the State Finance and Procurement Article.

  (2) The Service is exempt from the provisions of Division II of the State Finance and Procurement Article, but is not exempt from Subtitle 3 of Title 14, Subtitle 4 of Title 12, Title 16, and Title 17 of the State Finance and Procurement Article.

  (3)

    (i) Except as otherwise provided in this paragraph, all procurements by the Service for materials, equipment, services, or supplies performed or furnished in connection with the planning, development, design, equipping, construction, or operation of any project owned or controlled by the Service, shall be awarded in accordance with rules and regulations adopted pursuant to the Administrative Procedure Act.

    (ii) The Service may procure materials, equipment, services, or supplies by utilizing:

      (1) Competitive sealed bids;

      (2) Competitive sealed proposals;

      (3) Sole source procurement;

      (4) Intergovernmental cooperative purchasing agreements;

      (5) A small procurement process, if the procurement is estimated by the Service to result in an expenditure of $50,000 or less;

      (6) An emergency procurement process, if the procurement is necessary to avoid or to mitigate serious damage to public health, safety, or welfare; or

      (7) Pay-for-success contracting under Sec. 13-228 of the State Finance and Procurement Article.

  (4)

    (i) The approval of the Board shall be required on any nonemergency expenditure that exceeds $200,000.

    (ii) The Service shall notify the Board of any nonemergency expenditure that exceeds $25,000.

  (5) The Service may adopt rules and regulations to provide a process to resolve disputes between the Service and its contractors, that may include alternative dispute resolution by the parties to the dispute.

(h)

  (1) The Service:

    (i) May create and establish 1 or more project reserve funds in such amounts as the Board considers appropriate, including the following project reserve funds:

      (1) An Eastern Correctional Institution Turbine Project Contingency Fund;

      (2) A Department of Natural Resources Project Contingency Fund; and

      (3) A Reimbursable Project Contingency Fund; and

    (ii) Subject to paragraph (2) of this subsection, may pay into such funds:

      (1) Any money appropriated and made available by the State for the purposes of such funds;

      (2) Any proceeds from the sale of bonds or notes, to the extent provided in the resolution authorizing the issuance of the bonds or notes;

      (3) Revenues derived from a project of the Service; and

      (4) Any other money that may be received by or otherwise made available to the Service from any other source or sources which the Service has designated for deposit into such funds.

  (2) Money held in or credited to a project reserve fund established under this subsection shall be used solely to accomplish the purposes of this subtitle, as determined by the Board and, subject to paragraph (3) of this subsection, may be retained by the Service in the appropriate project reserve fund based on the project for which the money was received by the Service.

  (3)

    (i) The Service may credit to a project reserve fund established under paragraph (1)(i)1 through 3 of this subsection only money that is reimbursable to the State.

    (ii) The Service may not retain more than:

      (1) $5,000,000 in the Eastern Correctional Institution Turbine Project Contingency Fund;

      (2) $500,000 in the Department of Natural Resources Project Contingency Fund; or

      (3) $3,000,000 in the Reimbursable Project Contingency Fund.

    (iii) If at the end of a fiscal year the balance in a project reserve fund exceeds the limits stated in subparagraph (ii) of this paragraph, the Service shall revert the excess to the State fund from which the money in the project reserve fund was originally appropriated.

  (4) Money appropriated or made available to the Service by the State shall be expended in accordance with the provisions of this subtitle.

(i)

  (1) Subject to paragraph (2) of this subsection, the Service shall submit annually a full and detailed budget reflecting the operating and capital program of the Service to the Department of Budget and Management for inclusion for informational purposes in the State budget book.

  (2) The budget submitted under paragraph (1) of this subsection shall:

    (i) Be submitted in a manner required by the Department of Budget and Management; and

    (ii) Specify the source of the Service's revenues in a manner required by the Department of Budget and Management.

#### Section 3-103.1

(a) The staff of the Service shall consist of such employees as the Service may determine are necessary to carry out the duties of the Service.

(b)

  (1) The Service shall adopt regulations to govern the employees of the Service.

  (2) The Service shall, in accordance with the requirements of Title 3 of the State Personnel and Pensions Article, establish a personnel system that:

    (i) Is based on merit and compensates employees based on performance;

    (ii) Includes fair and equitable procedures for the redress of grievances and for the hiring, promotion, discipline or discharge for just cause, and laying off of employees; and

    (iii) Allows State employees who are employed by the Service prior to July 1, 1993, and members of the State retirement or pension systems to continue membership in the Employees' Retirement System of the State of Maryland or the Employees' Pension System of the State of Maryland.

  (3)

    (i) The Service shall be liable for and shall pay to the State Retirement Agency the employer's share of employee retirement or pension costs for Service employees who participate in the State retirement or pension systems, as provided in Title 21, Subtitle 3 of the State Personnel and Pensions Article.

    (ii) The Service shall be liable for and shall pay the employer's share of health insurance costs for Service employees.

  (4) For each open position in the Service that is not assigned to a project, the Service shall reasonably advertise, conduct a search, and conduct a competitive interview process.

  (5) In carrying out the requirements of this subsection, the Service may:

    (i) Create or abolish any position other than one specifically provided for in this subtitle;

    (ii) Determine employee qualifications, appointment and removal procedures, terms of employment including compensation, benefits, holiday schedules, and leave policies, and any other matter concerning employees; and

    (iii) Subject to the provisions of subsection (c) of this section, take such actions that are necessary for the transition to a new personnel system.

(c)

  (1) All State employees who are employed by the Service prior to July 1, 1993, shall be provided the opportunity to transfer to the Service's new personnel system without loss of pay. All nonstate employees of the Service employed prior to July 1, 1993, shall be members of the new personnel system.

  (2) All persons hired by the Service on or after July 1, 1993, shall be members of the new personnel system.

  (3) State employees who transfer to the Service's new personnel system shall, unless fairly compensated for the leave by the Service, retain vacation leave, sick leave, and personal and compensatory leave earned prior to the date of transfer until the time that the leave would normally expire under the regulations adopted under the State Personnel and Pensions Article.

  (4) The Executive Director and the Secretary of Personnel will use their combined resources to facilitate, prior to January 1, 1995, the placement, reassignment, or transfer of Service State employees who elect not to transfer to the new personnel system.

  (5) Classified State employees who elect not to transfer to the new personnel system shall retain all rights and privileges of the State Personnel Management System until January 1, 1995.

  (6) State employees who are not classified in the State Personnel Management System who elect not to transfer to the new personnel system shall retain such rights and privileges as existed on July 1, 1993, until January 1, 1995.

  (7) The Service shall permit continuation of the rights of employee organizations in existence on July 1, 1993, to represent employees and to collect union dues through a checkoff system.

  (8) Employees of the Service may enter into binding collective bargaining agreements establishing wages, hours, pension rights, or working conditions in accordance with the provisions of Title 3 of the State Personnel and Pensions Article.

#### Section 3-103.2

Except as provided in Sec. 3-103.1(c)(8) of this subtitle, the Service is exempt from the provisions of Division I of the State Personnel and Pensions Article that govern the State Personnel Management System.

#### Section 3-103.3

(a) On or before October 31, 2021, the Board shall adopt a conflict of interest policy for members of the Board that includes:

  (1) Standards for the disclosure of financial interests;

  (2) Standards for Board member participation in contracts with the Service in accordance with this subtitle, including an attestation that the Board member has complied with the conflict of interest standards adopted by the Board;

  (3) Standards for recusal from voting;

  (4) A requirement that a Board member may not use the Board member's position on the Board for personal gain when contracting with the Service; and

  (5) A requirement that a Board member provide an attestation of any business relationship with the Service.

(b) The Board shall send a copy of the conflict of interest policy adopted under subsection (a) of this section to the Governor, the President of the Senate, and the Speaker of the House:

  (1) After the policy is initially adopted; and

  (2) Each time a substantive change is made to the policy.

#### Section 3-103.4

(a) Board members shall observe the same standard of care required of corporate directors under Sec. 2-405.1 of the Corporations and Associations Article.

(b)

  (1) The Board may not award a severance package to an executive of the Service  if the executive accepts another position in the State government within 1 year after the date on which the executive's employment with the Service is terminated.

  (2) Any former executive of the Service awarded a severance package in violation of this subsection shall reimburse the Service for the value of the severance package within 1 year after terminating employment with the Service.

(c) The Executive Director shall appoint a Diversity Officer to:

  (1) Coordinate the development and implementation of a diversity policy for the Service; and

  (2) Assist employees with the resolution of grievances relating to alleged violations of:

    (i) The Service's diversity policy; or

    (ii) State or federal antidiscrimination laws.

(d)

  (1) On or before December 1, 2021, the Board shall adopt or readopt policies, consistent with this section, governing:

    (i) Severance packages;

    (ii) Bonuses, including a limit on bonuses for executives calculated as a percentage of the executive's salary;

    (iii) Tuition reimbursements, including limits on the amounts that may be reimbursed;

    (iv) Expense reimbursements, including:

      (1) Limits on the amounts that may be reimbursed;

      (2) Limits on how long an expense may be reimbursed after it is incurred; and

      (3) Requirements regarding the nexus between reimbursable expenses and Service functions;

    (v) Workforce diversity;

    (vi) Whistleblower complaints;

    (vii) Travel; and

    (viii) The use of cars, laptops, cell phones, and other vehicles and devices owned by the Service, including policies on whether and how these vehicles and devices may be transferred to an employee or another agency.

  (2) The Board periodically shall review the policies required under this subsection and revise the policies as needed.

  (3) In accordance with Sec. 2-1257 of the State Government Article, the Board shall submit a report containing copies of the policies required under this subsection to the Legislative Policy Committee, the Senate Budget and Taxation Committee, and the House Appropriations Committee:

    (i) On or before December 31, 2021; and

    (ii) Within 30 days after any policy is revised.

(e)

  (1) Board members, the Executive Director, and the Deputy Director shall receive annual training on:

    (i) Ethics;

    (ii) Harassment;

    (iii) Diversity; and

    (iv) Policies adopted under subsection (d) of this section.

  (2) In addition to the training specified in paragraph (1) of this subsection, Board members shall receive annual training on the standard of care required under subsection (a) of this section.

(f) On or before December 31, 2021, and each December 31 thereafter, the Service shall, in accordance with Sec. 2-1257 of the State Government Article, report to the General Assembly on the Service's efforts to reduce greenhouse gas emissions in furtherance of the goals and requirements established under Title 2, Subtitle 12 of the Environment Article.

(g) This section may be cited as the Maryland Environmental Service Reform Act of 2021.

#### Section 3-103.5

(a) On or before December 31, 2021, and each December 31 every 5 years thereafter, the Board shall obtain an assessment of the Board's operations by an independent consultant or accountant.

(b) The assessment required under subsection (a) of this section shall include an evaluation of:

  (1) The structure of the Board, including the Board's:

    (i) Composition;

    (ii) Charter, bylaws, and other governing documents and procedures;

    (iii) Diversity;

    (iv) Subcommittees or workgroups; and

    (v) Frequency of meetings;

  (2) The dynamics and functioning of the Board, including:

    (i) The Board's annual calendar;

    (ii) Access to information;

    (iii) Communication with Service personnel;

    (iv) Planning; and

    (v) Cohesiveness and conduct of Board meetings;

  (3) The Board's role in the Service's short-term and long-term strategy;

  (4) The financial reporting process, internal audit, and internal controls;

  (5) The Board's role in monitoring the Service's policies, strategies, and systems;

  (6) The Board's role in supporting and advising the Service;

  (7) The role of the Chair of the Board; and

  (8) Any other issue relevant to the Board's operations.

(c) The Board shall:

  (1) Review each assessment required under this section at a meeting of the Board; and

  (2) Make any changes or recommendations that the Board considers appropriate based on the assessment.

(d)

  (1) The Board shall submit each assessment required under this section to the Governor and, in accordance with Sec. 2-1257 of the State Government Article, the General Assembly.

  (2) The Service shall post a copy of each assessment on the Service's website, including a link to a copy of the most recent assessment on the homepage of the website.

#### Section 3-104

(a) The Service has all powers necessary for carrying out the purposes of this subtitle, including the following rights and powers set forth in this section.

(b) To have perpetual existence as a corporation.

(c) To adopt bylaws, rules, regulations, policies, and procedures for the regulation of its affairs and conduct of its business.

(d) To adopt an official seal and alter it.

(e) To maintain one or more offices at a place or places it chooses.

(f) To appoint agents and employees, to prescribe their duties, and fix their compensation as set forth in this subtitle.

(g) To sue and be sued.

(h) To acquire, construct, reconstruct, rehabilitate, improve, maintain, lease as lessor or as lessee, repair and operate projects within or without the State. The Service shall establish reasonable rules and regulations for the use of any project. It may acquire, purchase, hold, lease as lessee, and use any franchise and any property, real, personal or mixed, tangible or intangible, or any interest therein necessary to carry out the purposes of the Service. It may sell, lease as lessor, transfer, and dispose of any property or interest in it that it has acquired.

(i) To acquire by gift, purchase, or the exercise of the right of eminent domain in the manner prescribed by law lands, structures, real or personal property rights, rights-of-way, franchises, easements, and other interests in lands, including lands lying underwater and riparian rights which are located within and without the State as it considers necessary or convenient for the construction or operation of a project, upon terms and at prices considered by the Service to be reasonable and can be agreed upon by the Service and the owner of the interest, and to take title to the interest in the name of the Service. At any time ten days after the return and recordation of the verdict or award in any condemnation proceeding, the Service may take possession of the property condemned, upon paying to the clerk of the court the amount of the award and all costs taxed to that date, notwithstanding any appeal or further proceeding by defendant. At the time of the payment, the Service shall give its corporate undertaking to abide by any judgment in any appeal or further proceedings.

(j) To borrow money and issue bonds or notes for the purpose of paying all or any part of the cost of any one or more projects or for any other purpose of the Service; to provide funds to be paid into any debt service reserve fund; to secure the payment of the bonds or notes or any part thereof by pledge or deed of trust of all or any part of its revenues or other available money or by pledge, mortgage, or deed of trust of any one or more facilities or properties; to combine projects for financing purposes and to make agreements with or for the benefit of the purchaser or holder of the bonds or notes, with the issue of the bonds or notes, whether issued or to be issued, as the Service may deem advisable; and in general to provide for the security of the bonds or notes and the rights of their holders.

(k) To combine, after consultation with the municipalities affected, one or more water supply, wastewater purification, solid waste disposal, or energy project with any other project as a single system for the purpose of operation or financing.

(l) To fix, alter, charge, and collect rates, fees, and charges for the use of or for the services, products, or energy furnished or produced by the Service.

(m) To enter into contracts with the federal or any state government, or any unit, instrumentality, or subdivision thereof, or with any municipality or person within or without the State, providing for or relating to the furnishing of services to or the facilities of any project of the Service, or in connection with the services or facilities provided by any water supply project, solid waste project, wastewater purification project, or energy project owned or controlled by the other contracting party, including contracts for the construction and operation of any project in the State or in any other state. These contracts may make provision for:

  (1) The payment by the other contracting party to the Service of a fixed amount for the collection, processing, treatment, storage, transporting, use, or disposal of a stated amount of solid waste (whether or not the stated amount of solid waste is collected, processed, treated, stored, transported, used, or disposed of), or of all or any portion of the operating expenses of one or more projects;

  (2) The utilization by the other contracting party of one or more projects for the processing, treatment, storage, transporting, use, or disposal of all or any portion of solid waste over which such party has control;

  (3) The collection by the other contracting party or its agents or by agents of the Service of fees, rates, or charges for the services and facilities rendered to a municipality or its inhabitants, and for the enforcement of delinquent charges for such services and facilities; or

  (4) The abandonment, restriction, or prohibition of the construction or operation of competing facilities. The provisions of any contract with a municipality shall be deemed to be for the benefit of bondholders or noteholders as designated by the Service and may be made irrevocable so long as any bonds or notes of the Service secured by such contract are outstanding.

(n)

  (1) To make any contract or agreement the Service determines to be necessary or incidental to the performance of its duties and to the execution of the purpose of and the powers granted by this subtitle, including contracts with the federal or any state government, or any unit, instrumentality, or municipality thereof, or with any person, on terms and conditions the Service approves.

  (2) The Service may make contracts or agreements relating to:

    (i) The use by the other contracting party or the inhabitants of any municipality of any project acquired, constructed, reconstructed, rehabilitated, improved, or extended by the Service under this subtitle or the services therefrom or the facilities thereof;

    (ii) The use by the Service of the services or facilities of any water supply system or project, solid waste system or project, or liquid waste system or project, not owned or operated by the Service;

    (iii) The sale of any fuel, steam, electricity, energy, waste product, or other material or resource derived from the operation of any project;

    (iv) The acceptance, processing, treatment, use, and disposal of solid wastes by one or more projects; or

    (v) The employment or retention of consulting and other engineers, superintendents, financial advisors, attorneys, accountants, and other employees, advisors, or agents as in the judgment of the Service are necessary or desirable.

  (3) The contracts and agreements of the Service may provide for the collecting of fees, rates, or charges for the projects provided by the Service and for the enforcement of delinquent charges for the projects. The provisions of any contract or agreement of the Service, and of any ordinance or resolution of the governing body of a municipality enacted pursuant thereto, shall be deemed to be for the benefit of bondholders or noteholders.

(o) To enter upon and excavate any municipal street, road, alley, highway, or any other public way for the purpose of installing, maintaining, and operating a water supply, solid waste disposal, wastewater purification, or energy project provided for under this subtitle. The Service may construct, reconstruct, rehabilitate, or extend in the street, road, alley, or highway, a water supply facility, sewer or storm drain, energy transmission facility, or any appurtenance thereof, without a permit or the payment of a charge subject, however, to reasonable regulation established by the governing body of any municipality having jurisdiction in the particular respect. If any municipal street, road, alley, or highway is to be disturbed, the governing body shall be notified within a reasonable period of time, and the street, road, alley, or highway shall be repaired and left by the Service in the same condition as, or in a condition not inferior to, that existing before the street, road, alley, or highway was torn up. The Service shall bear every incidental cost.

(p) To enter upon lands, waters, or premises as is necessary or desirable for the purposes of making surveys, soundings, borings, and examinations to accomplish any purpose authorized by this subtitle. The Service is liable for actual damage done.

(q) To make application for, receive, and accept from any state or federal government, or any unit, instrumentality, or subdivision thereof, grants for or in aid of the planning, financing, construction, acquisition, maintenance, or operation of any project, and to receive and accept aid or contributions from any source of money, property, labor, or other things of value, to be held, used, and applied only for the purpose for which the grants and contributions are made in the furtherance of the purposes of this subtitle. In those cases involving federal and State grants, including, but not limited to, grants administered by the Department of the Environment for the collection and treatment of sewage and industrial wastes under the Sanitary Facilities Fund, in Title 9 of the Environment Article, the Service shall be eligible the same as a municipality.

(r) To make directly, or through the hiring of consultants, any plans, surveys, investigations, and studies relating to water supply, liquid and solid wastes transportation, purification, disposal techniques, recycling, energy production and transmission, conservation of resources, and management methods or the effects of these techniques, and methods, in order to improve or evaluate the effectiveness or economy of its services and operations. The Service may charge in whole or in part the costs of the investigations and studies against one or more projects or Service districts, or it may include them in whole or in part in its general operating expenses depending on the expected applicability of the studies and investigations. The Service may supplement grants or other aids received from the federal government or from other sources to assist in carrying out the purposes of this subtitle. Consultants hired under this subsection may not be deemed to be providing architectural or engineering services as those terms are defined in Sec. 11-101 of the State Finance and Procurement Article.

(s) To conduct hearings and investigations for the furtherance of the purposes of this subtitle.

(t) To take and hold title to any project that may be transferred to the Service, and to assume jurisdiction over and provide for the maintenance and operation of the project, all on such terms as may be mutually agreed upon between the Service and the transferor. The Service may contract with any municipality to assume the payment of the principal of and interest on obligations or indebtedness of such municipality incurred in connection with any project and may undertake to operate any project in such a manner as to provide for the payment of all outstanding obligations or indebtedness applicable to the project and the interest thereon and to transfer to the appropriate municipality an amount equal to the debt service payments prior to the applicable payment date. Subject to the approval of the Board of Public Works, the State may lease, lend, grant, or otherwise convey to the Service any property that is necessary for the purposes of this subtitle.

(u) To do all things necessary to carry out its purposes and for the exercise of the powers granted in this subtitle.

(v) Except as provided in Sec.Sec. 3-109 and 3-110 of this subtitle, the Service does not have any power to construct, establish, or operate any new solid waste disposal project within the boundaries of any county or municipal corporation without the express consent of the governing body of the county or municipal corporation.

(w) To permit a municipality to construct, operate, maintain, expand, relocate, replace, renovate, or repair facilities provided for in this subtitle when the Service certifies that it is not in a position to provide the necessary construction, operation, maintenance, expansion, relocation, replacement, renovation, or repair of facilities within the municipality. Notwithstanding other provisions in this subtitle and limited to the circumstances in this subsection, a municipality shall finance construction, operation, maintenance, expansion, relocation, replacement, renovation, or repair of facilities in accordance with its statutory authority, including the receiving of State and federal grants if available. The municipality may construct, operate, maintain, expand, relocate, replace, renovate, or repair these facilities.

(x) In making plans, surveys, studies, and investigations under this subtitle, the Service shall include in its findings its statement of the impact that a project may have on the site on which the project is to be located if that site has cultural, historic, or social significance.

(y) To create, with the approval of the Board, private corporations for purposes consistent with this subtitle.

(z) To exercise all the corporate powers granted Maryland corporations under the Maryland General Corporation Law.

#### Section 3-105

(a) The Service is responsible for carrying out the following general activities subject to the limitations stated in this section.

(b) Planning, integrating, and establishing geographic service regions and districts, in cooperation with affected municipalities and based upon approved State-county master plans for water and sewerage, and solid waste disposal as provided in the Environment Article, as well as other plans and studies permitted by this subtitle.

(c) Research and developmental studies and investigations into improved methods and techniques of water supply, liquid wastes, solid wastes, and energy generation, acquisition, transportation, processing, recycling, purification, disposal and management, and technical consultation and assistance to design, management, and operation personnel of the Service and, pursuant to an order or request, to appropriate municipalities or persons possessing similar responsibilities.

(d) To the extent appropriate in each instance, acquisition, design, construction, reconstruction, rehabilitation, improvement, operation, maintenance, and repair of a water supply project, wastewater purification project, and solid waste disposal project, pursuant to an order of the Secretary of the Environment as further provided in Sec.Sec. 3-109 and 3-110 of this subtitle; or pursuant to a mandatory agreement to provide requested services, as provided in Sec. 3-107 of this subtitle; or pursuant to an approved five-year plan, as provided in Sec. 3-106 of this subtitle.

(e) Except upon request of a municipality and pursuant to a contract between the Service and the municipality, the Service may not acquire, construct, operate, or establish a wastewater purification project or solid waste disposal project, as the case may be, for (1) any area or district which, in the determination of the Secretary of the Environment, is receiving adequate service from a project owned by a municipality and operated in compliance with applicable laws and regulations; (2) any area or district which, in the determination of that Secretary, will receive, within a reasonable time, adequate service from a project owned by a municipality and operated in compliance with applicable laws and regulations; or (3) dredging or dredged material disposal projects.

(f) Execute the powers and perform the duties set forth in Title 7, Subtitle 4 of the Environment Article, including the financing, acquisition, leasing, and operation of hazardous waste disposal facilities.

#### Section 3-106

(a) The Executive Director, after consultation with the Secretary of Natural Resources, the Secretary of the Environment, the Secretary of Planning, and the municipalities affected, shall determine appropriate boundaries for water supply service regions, wastewater purification service regions, and solid waste disposal service regions. Service regions shall be based upon needs set forth in, and provide integration of, approved State-county master plans for water and sewerage or solid waste disposal, adopted pursuant to the Environment Article, but also may take account of other plans and studies.

(b) As soon as possible after the determination of appropriate boundaries, the Executive Director, after consultation with the municipalities affected, shall establish priorities for designating water supply service regions, wastewater purification service regions, and solid waste disposal service regions and formally designate the regions.

(c) Identical service regions need not be designated for water supply, wastewater purification and solid waste disposal projects. No part of the State may be included in more than one of these service regions.

(d) As soon as possible after designation of a service region, the Service shall cause surveys, plans, studies, and estimates to be made, and after consultation with the municipalities located within the service region, prepare a five-year plan for each service region for the most effective and economical means of providing water supply, wastewater purification and solid waste disposal projects. In preparing a five-year plan, the Service shall consider the effects of public versus private ownership of water and wastewater facilities upon the provision of dependable, effective, and efficient water and wastewater services. Except as required by an order of the Secretary of the Environment under Sec. 3-109 or Sec. 3-110 of this subtitle, the five-year plans shall be consistent with the approved county water and sewerage plans adopted in compliance with Title 9 of the Environment Article. The five-year plans shall designate the existing facilities or portions that are to be transferred to the jurisdiction of the Service; improvements to and extension of existing facilities; construction of new water supply, wastewater purification, and solid waste disposal projects; proposed methods of acquisition, ownership, and operation by the Service or by affected municipalities and persons, or both together with anticipated expenditures, sources of revenue, and charges for projects to be levied against municipalities, persons, and property; and related matters the Service finds necessary or convenient.

(e)

  (1) The Service may adopt a five-year plan only after at least one public hearing in each of the counties affected. At least 60 days before a hearing, the proposed five-year plan shall be submitted for review and comment to each county, to each municipality which owns or operates a public facility affected by the plan, and to the Secretaries of Natural Resources and the Environment and the Secretary of Planning. A five-year plan can be adopted by the Service only after it is submitted to and approved by resolution of the governing body of each county and after consultation with the governing body of each municipality which owns or operates a public facility affected by the plan, or if the plan is not approved by each of the appropriate governing bodies within 120 days following submission of the plan for approval of the governing bodies, after the plan is approved by joint resolution of the General Assembly. If a joint resolution of the General Assembly approving a five-year plan contains any amendments or modifications to the plan, those amendments and modifications repeal the plan to the extent of any inconsistency. The provisions of this subtitle do not authorize the Service to take any action which would be inconsistent with the amendments or modifications without the approval of the governing body of each county and after consultation with the governing body of each municipality which owns or operates a public facility included within the plan.

  (2) Notwithstanding any other provision of this subtitle, if any bonds or notes issued by the Service with respect to a project in a service area are outstanding and unpaid, any 5-year plan, contract, or charges relating to a service district or project may not be amended, terminated, or reduced, as the case may be, without the written consent of the Service, and any 5-year plan, contract, or charges to the service district remain in full force and effect so long as any such bonds or notes remain outstanding and unpaid.

(f) Upon adoption of a five-year plan by the Service, service districts shall be established in the manner and following the schedule set forth in the plan. Immediately thereafter, the Service shall proceed with the acquisition, extension, and construction of facilities set forth in the plan and assume jurisdiction over and provide for the maintenance and operation of water supply, wastewater purification and solid waste disposal projects included in the plan, for those projects within the service region and districts placed under the jurisdiction of the Service by the plan.

(g) The Service may enter into contracts with municipalities and persons within a service district and stipulate the projects to be provided, the amount of compensation for acquiring existing projects, the charges to be apportioned to the municipalities and persons, the manner of repaying the Service for these charges, and the effective date or dates the Service will initiate the provision of projects.

(h) Existing projects providing water supply, wastewater purification and solid waste disposal services, including all rights, easements, laboratory facilities, vehicles, records and all other property, equipment, and furnishings necessary and normally associated with the operation of the facility, shall be transferred to the sole ownership of the Service at the time designated in the five-year plan. Compensation for existing projects may be based on the original cost of the project minus an allowance for depreciation, or on other terms and conditions satisfactory to the municipality or person transferring the project. All costs and obligations assumed by the Service incidental to the transfer of ownership of an existing project shall be included in the charges apportioned to the service district.

(i) The Service shall review, update, and readopt the five-year plan for each service region biennially after review by the municipalities and persons concerned. The five-year plan may be updated and readopted by the Service only after at least one public hearing in each of the counties affected. Upon updating and readopting, the Service shall take the actions necessary to implement the revised plan.

(j) The Service by formal action, and after consultation with the municipalities affected, may extend the boundaries of service regions or districts, combine two or more service regions or districts or parts thereof and combine, abandon, extend, enlarge, improve, or make any other modification of projects serving one or more service districts, but no change may diminish any existing level of service rendered to the district or districts concerned.

(k) Within a wastewater purification service district, the Service is responsible for the purification and disposal of liquid waste as set forth in the five-year plan, including the residue resulting from purification, that is delivered to the Service projects through the sewer pipes of any municipality or person in the Service district, except that the Service may exclude or require preconditioning of any waste that might otherwise be harmful to structures or purification processes or endanger the health or safety of workers. Within the Service district no municipality or person may discharge liquid waste onto the surface of the ground or into the waterways of the State except through the projects of the Service or of a municipality or person designated by the plan or under reasonable conditions the Service stipulates.

(l) Within a solid waste disposal service district the Service is responsible for the disposal of solid wastes as set forth in the five-year plan. Within the service district no municipality or person may dispose of solid wastes except through the projects of the Service or of a municipality or person designated by the plan, or under reasonable conditions the Service stipulates.

(m) Within a water supply service district, the Service shall be responsible for supply and distribution of water as set forth in the five-year plan.

(n) With the consent of the county or municipal corporation in which a project is to be located, the Service may implement a project not provided for in the five-year plan adopted under this subtitle, service region, or service district established under this section or if no five-year plan, service region, or service district has been established.

#### Section 3-107

(a)

  (1) Any municipality or person may request the Service to provide the water supply, wastewater purification, solid waste disposal, or energy projects, or any other services, authorized by this subtitle.

  (2) The request shall set forth the type of proposed project or services to be furnished and the proposed boundaries of the area within which a project or services are requested.

(b)

  (1) Notwithstanding any limitations or other provisions to the contrary of Division II, Title 9, Subtitle 2 or Subtitle 3, Title 10, or Title 11 of the Local Government Article, or of any charter or local law regulating the procurement or awarding of public contracts, a municipality may enter into contracts with the Service for the purpose of the Service providing any of the projects or services requested by the municipality.

  (2)

    (i) As soon as possible after receipt of a duly authorized request from a municipality or person, the Service shall provide a proposal or a proposed contract with the municipality or person in accordance with the provisions of this subtitle specifying the type of project or services to be provided, whether or not a service district will be established, the boundaries and effective date of any service district, and the terms, conditions, and costs under which the project or services will be provided.

    (ii) Except as provided in Sec.Sec. 3-109 and 3-110 of this subtitle, the Service is not obligated to provide a project or services to a municipality or a person before a contract has been executed by the parties.

  (3) The Service shall provide any services and provide, maintain, and operate a project in accordance with the terms in the contract.

  (4) For the purposes of this subsection, the express powers contained and enumerated in Division II and Title 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 subsection.

(c) The charges levied against a service district shall be reduced by the full amount of federal and State grants which the Service receives and is entitled to retain to defray the cost of any project within the service district.

(d)

  (1) Existing facilities providing service of the type requested, including all rights, easements, laboratory facilities, vehicles, records, and all other property, equipment, and furnishings necessary and normally associated with the operation of the facility, shall be transferred to the sole ownership of the Service on the date a service district comes into existence unless the Service determines that it not be so transferred.

  (2) Compensation for existing projects may be based on the original cost of the project minus an allowance for depreciation, or on other terms and conditions satisfactory to the municipality or person transferring the project.

  (3) All costs and obligations assumed by the Service incidental to the transfer of ownership shall be included in the charge levied against the service district.

(e) At the request of any person or municipality having the responsibility for the collection of liquid waste or solid waste, the Service may enter into a contract to provide management and operation of waste collection services in any service district as an adjunct to the mandatory provision of projects as set forth in subsections (a) through (d) of this section, if:

  (1) As a condition to the provision of management and operation of waste collection services, the municipality or person enters into a contract upon terms the Service determines reasonable; and

  (2) The Service and the municipality or person requesting collection services determines by agreement from time to time the charges including the amount and frequency of payments to the Service.

(f)

  (1) Except as provided in paragraph (2) of this subsection, the review and approval of the Board of Public Works shall be required on any contract for the provision of requested services with a value of $250,000 or more.

  (2) The review and approval of the Board of Public Works is not required on a contract for the provision of:

    (i) Requested services to a unit of State or local government; or

    (ii) Services to the federal government.

#### Section 3-108

(a)

  (1) In calculating charges for water supply, wastewater purification, solid waste disposal, and energy projects, products, or services or in determining the costs to be levied against a municipality, person, or property in a service district established pursuant to this subtitle, the Service shall require that the charges reflect the full costs of providing the projects, products, or services.

  (2) The charges and costs to be levied against any particular municipality, person, or property located within a service district shall take account of:

    (i) Whether the property is eligible for water or sewerage service in accordance with the approved State-county master plans for water and sewerage adopted under Title 9 of the Environment Article;

    (ii) The value and capacity of any existing facility transferred by the municipality or person to the Service; and

    (iii) The costs and obligations assumed by the Service incidental to the transfer of the facility.

  (3) To the extent deemed reasonable and practicable by the Service, charges for solid waste or wastewater purification projects or services also shall be based on but not necessarily limited to a formula reflecting the volume and characteristics of the wastes as they influence transportation, purification, final disposal, and time pattern of discharge.

  (4)

    (i) At least 60 days before establishing or adjusting charges in a service district, the Service shall notify the residents of the service district by:

      (1) Subject to subparagraph (ii) of this paragraph, publishing notice of the proposed charges, at least once a week for 2 weeks, in at least one newspaper of general circulation in the municipality in which the service district is located and hold a public hearing on the proposed charges; and

      (2) Using one or more of the following methods:

      (A) Posting the proposed charges on the homepage of the Service website for at least 2 consecutive weeks;

      (B) If the service district is already established and there is a proposed adjustment to charges in the service district, sending an e-mail or a text notification of the proposed charges at least once a week for 2 consecutive weeks to all affected ratepayers who have provided contact information; or

      (C) Providing notice of the proposed charges by mail through the United States Postal Service to each affected property owner and physical address affected.

    (ii) The published notice under subparagraph (i)1 of this paragraph shall:

      (1) Be placed with legal notices;

      (2) Have the headline of the notice in bold print, with all letters capitalized; and

      (3) Have the text of the notice, other than the headline, in upper and lower case letters.

    (iii) The charges shall become effective on the date set by the Service. The Service may, by resolution of the Board, provide that the charges are chargeable against all or part of the lots or parcels of land in the service district and constitute a first lien on such property. The resolution may establish reasonable times and methods of collection of the charges, which may be levied and collected by the Service and have the same priority and rights and bear the same interest and penalties and in every respect be treated the same as taxes of the State. The charges may be levied and collected notwithstanding the absence of a contract between the Service and the municipality, person, or property against whom the charge is imposed.

(b) If a municipality fails to pay the Service for projects or services provided pursuant to this subtitle within 60 days of the due date, as established by contract, all State funds, or that portion of them required, relating to the income tax, the tax on racing, the recordation tax, the tax on amusements and the license tax thereafter to be distributed to the municipality shall be paid by the Comptroller of Maryland directly to the Service until the amount paid to the Service is equal to the amount due the Service by the municipality.

(c) If a person fails to pay the Service for projects or services provided in accordance with this subtitle within 60 days of the due date, as established by the Service, the unpaid amount constitutes a statutory lien against the real property served, shall be referred to the Attorney General for collection, and may be collected through a tax sale.

(d) The governing body of any county may charge the Service a fee for final disposal of solid waste at any solid waste disposal project located in that county provided that any fees charged the Service are not greater than those charged other users of any solid waste disposal project.

#### Section 3-109

(a)

  (1) Upon failure of a municipality to comply with an order of the Secretary of the Environment to provide a sewerage system or refuse disposal works as provided for in Title 9 of the Environment Article, the Secretary of the Environment shall direct the Service to install or put into operation sewerage or refuse disposal facilities to satisfy the requirements of the order.

  (2) Except as provided in subsection (e) of this section, upon receipt of the directive from the Secretary of the Environment, the Service shall proceed to install and put into operation sewerage or refuse disposal projects to comply with the directive. Every cost the Service incurs to construct and operate the projects shall be charged to the municipality against which the order is issued.

  (3) Funds to pay the Service for construction and operation of projects may be raised under Title 9 of the Environment Article.

  (4) Upon terms satisfactory to the Service and the municipality, the Service may enter into an agreement with the municipality to continue to operate the sewerage system or refuse disposal works installed by the Service under the provisions of this subsection. In this event, the municipality shall enter into a contract with the Service for the establishment of a service district as provided in Sec. 3-107(e) of this subtitle.

(b)

  (1) Upon failure of a person to comply with an order of the Secretary of the Environment to abate pollution as provided for in Title 9 of the Environment Article, the Secretary of the Environment shall direct the Service to provide projects necessary to abate the pollution.

  (2) Except as provided in subsection (e) of this section, upon receipt of the directive from the Secretary of the Environment, the Service shall provide the projects necessary to abate the pollution and the person shall discharge or deliver his wastes only to a service project or avail himself of the projects provided by the Service to abate the pollution. The cost of projects provided by the Service to abate pollution under the terms of this subsection shall be borne by the person against whom the order to the Secretary of the Environment was issued. The person and the Service shall determine by agreement the costs, rental, charges, or other fees to be paid by the person to the Service. If the fees and charges remain unpaid for a period of 60 days, the unpaid bills become a lien against the property served, if it is recorded and indexed as provided in this subtitle, and shall be referred to the Attorney General for collection.

  (3) All projects provided by the Service under this subsection remain under the control and operation of the Service. It is unlawful for a person provided with projects by the Service under this subsection to duplicate or use any other project serving the same purpose.

(c)

  (1) Upon the failure of a municipality or person to comply with an order of the Secretary of the Environment to correct deficiencies on the operation of sewerage systems or refuse disposal works as provided in Title 9 of the Environment Article, the Secretary of the Environment shall direct the Service to take charge of and operate the systems or works to secure the results demanded by the Secretary of the Environment.

  (2) Except as provided in subsection (e) of this section, upon the receipt of the directive from the Secretary of the Environment, the Service immediately shall take charge of and operate the systems or works to secure the results set forth in the directive of the Secretary of the Environment. All costs for maintenance, operation, and other services including legal fees incidental to taking possession of the sewerage system or refuse disposal works shall be charged to the municipality or person against which or whom the original order of the Secretary of the Environment was served.

  (3)

    (i) Funds to pay the Service for services rendered under this subsection shall be raised in the case of a municipality under Title 9 of the Environment Article.

    (ii) If the order is issued against a person, the Service shall bill the person for the full cost of services rendered.

    (iii) If payment is not made within 60 days, the costs become a lien against the sewerage system or refuse disposal works if it is recorded and indexed as provided in this subtitle, and the Executive Director shall refer the matter to the Attorney General for collection.

(d)

  (1) Upon failure of a municipality or person to comply with an order of the Secretary of the Environment to extend or alter a sewerage system or refuse disposal works as provided in Title 9 of the Environment Article, the Secretary of the Environment shall direct the Service to make alterations or extensions to the systems or works, or install a new system or works as the Secretary of the Environment deems necessary to correct the improper conditions.

  (2) Except as provided in subsection (e) of this section, upon receipt of the directive from the Secretary of the Environment, the Service shall assume jurisdiction over the systems or works and make the alterations, extensions, or new construction required to comply with the directive of the Secretary of the Environment. All costs, including legal fees incidental to assuming jurisdiction over the system or works, shall be charged to the municipality or person against which or whom the order of the Secretary of the Environment was issued.

  (3) Funds to pay the Service for costs incurred as a result of actions taken under this subsection may be raised as provided in Title 9 of the Environment Article. If the order was against a person, the Service shall charge the person with the cost of making the necessary improvements to comply with the directive of the Secretary of the Environment. If the person fails to pay within 60 days, the cost becomes a lien against the property served if it is recorded and indexed as provided in this subtitle, and the matter shall be referred to the Attorney General for collection.

(e)

  (1) In the event the Service determines, at any time, that it will be unable to recoup all or a portion of its costs from the municipality or persons subject to the order of the Secretary of the Environment, the Service shall provide to the Secretary a full accounting of all costs incurred or anticipated to be incurred by it in complying with the Secretary's directive.

  (2) Within 30 days of receipt of the accounting, the Secretary may request that the Service provide additional information.

  (3) Within 90 days of receipt of the accounting or, when applicable, the additional information, the State shall pay to the Service the full amount of the Service's costs that are not paid or reasonably expected to be paid by the municipality or persons.

  (4)

    (i) The State's payment of any amount to the Service does not preclude the State from seeking or obtaining reimbursement from the municipality or persons subject to the order of the Secretary.

    (ii) The Service shall cooperate fully with the Secretary in seeking reimbursement from the municipality or persons.

#### Section 3-110

(a) Upon the failure of a person to comply with an order to abate pollution provided for in Title 7, Subtitle 2 or Title 9, Subtitle 3 of the Environment Article, the Secretary of the Environment, if no remedy provided in Title 7, Subtitle 2 or Title 9, Subtitle 3 of the Environment Article is sought against that person, may direct the Service to provide projects necessary to abate the pollution.

(b) Except as provided in subsection (d) of this section, upon receipt of the directive from the Secretary of the Environment, the Service shall provide the project necessary to abate the pollution, and the person shall discharge or deliver his wastes only to a Service project or avail himself of the projects provided by the Service to abate the pollution. The cost of projects provided by the Service to abate pollution under the terms of this section shall be borne by the person against whom the order to abate pollution was issued. That person and the Service shall determine by agreement the costs, rental, charges, or other fees to be paid by the person to the Service. If the fees and charges remain unpaid for a period of 60 days, the unpaid amount becomes a lien against the property served if it is recorded and indexed as provided in this subtitle, and the matter shall be referred to the Attorney General for collection.

(c) All projects provided by the Service under this section remain under the control and operation of the Service. It is unlawful for a person provided with projects by the Service under this section to duplicate or use any other project serving the same purpose.

(d)

  (1) In the event the Service determines, at any time, that it will be unable to recoup all or a portion of its costs from the persons subject to the order of the Secretary of the Environment, the Service shall provide to the Secretary a full accounting of all costs incurred or anticipated to be incurred by it in complying with the Secretary's directive.

  (2) Within 30 days of receipt of the accounting, the Secretary may request that the Service provide additional information.

  (3) Within 90 days of receipt of the accounting or, when applicable, the additional information, the State shall pay to the Service the full amount of the Service's costs that are not paid or reasonably expected to be paid by the persons.

  (4)

    (i) The State's payment of any amount to the Service does not preclude the State from seeking or obtaining reimbursement from the municipality or persons subject to the order of the Secretary.

    (ii) The Service shall cooperate fully with the Secretary in seeking reimbursement from the municipality or persons.

#### Section 3-111

Except as provided in Sec. 3-104 of this subtitle, or in an approved five-year plan adopted under this subtitle, it is unlawful for a municipality or person provided with any projects by the Service under this subtitle to duplicate or use any other similar projects serving the same purpose unless the Service expressly permits it to do so.

#### Section 3-112

(a) The Service may provide by resolution, adopted by a majority of the Board, for the issuance of bonds and notes of the Service.

(b) The Board has absolute discretion to determine with respect to the bonds or notes of any issue: (1) the date or dates of issue; (2) the date or dates and amount or amounts of maturity, provided only that no bond of any issue may mature later than 40 years from the date of its issue; (3) the rate or rates of interest payable thereon and the date or dates of such payment; (4) the form or forms, denomination or denominations, manner of execution and the place or places of payment thereof, and the interest thereon, which may be at any bank or trust company within or without the State; (5) whether the bonds or notes or any part thereof are made redeemable before maturity and, if so, upon what terms, conditions, and prices; (6) whether there shall be a debt service reserve fund and, if so, its amount; and (7) any other matter relating to the form, terms, conditions, issuance, and sale thereof.

#### Section 3-113

(a) If any officer whose signature or a facsimile of whose signature appears on any bonds or notes ceases to be the officer before the delivery of the bonds or notes, the signature or facsimile is nevertheless valid and sufficient for all purposes as if he had remained in office until delivery.

(b) Notwithstanding any other provision of this title or any recitals in any bonds and notes issued hereunder, all bonds and notes shall be deemed to be negotiable instruments under the laws of the State.

(c) The bonds may be issued in registered form or in such other form as determined by the Board. Provision may also be made for the replacement of bonds which become mutilated or are lost or destroyed.

(d) The bonds and notes are exempt from the provisions of Sec.Sec. 8-206 and 8-208 of the State Finance and Procurement Article. The Service may sell its bonds and notes in the manner, either at public or at private sale, and for the price it determines.

(e) The bonds and notes may be issued by the Service without obtaining the consent of any unit of the State government, and without any other proceedings or the happening of any other conditions or things than those specifically required hereunder.

#### Section 3-114

Except as may otherwise be expressly provided by the Service, every issue of its bonds or notes shall be general obligations of the Service payable out of any revenues or other money of the Service subject only to any agreements with the holders of particular bonds or notes pledging any particular receipts or revenues.

#### Section 3-115

The Service may provide, by resolution adopted by a majority of the Board, for the issuance of its renewal notes or of refunding bonds for the purpose of refunding any bonds or notes then outstanding which were issued under the provisions of this subtitle, whether or not the bonds or notes to be refunded have matured, including the payment of any redemption premium thereon and any interest accrued or to accrue to the date of redemption of the bonds or notes, and, if deemed advisable by the Board, for either or both of the following combined additional purposes: (1) paying all or any part of the cost of constructing improvements or extensions to or enlargements of any existing project or projects and (2) paying all or any part of the cost of any additional project or projects. The issuance of refunding bonds or renewal notes and the details thereof, the rights of the holders thereof, and the rights, duties, and obligations of the Service in respect thereto, are governed by the provisions of this subtitle relating to bonds or notes, insofar as these provisions may be applicable.

#### Section 3-116

The Service, by resolution adopted by a majority of the Board, may:

(1) Issue, prior to the preparation of definitive bonds, interim receipts or temporary bonds exchangeable for definitive bonds when these bonds have been executed and are available for delivery;

(2) Issue and sell its bond anticipation notes, revenue anticipation notes, or grant anticipation notes the principal of and interest on these notes to be made payable to the bearer or registered holder out of the first proceeds of the sale of any bonds, revenues or grants, as the case may be, issued under this subtitle, or from any other available money of the Service, but the authorizing resolution may make provision for the issuance of bond anticipation notes in series as funds are required and for the renewal of these notes at maturity, with or without resale. The issuance of notes and the details thereof, the rights of the holders, and the rights, duties, and obligations of the Service in respect thereto, are governed by the provisions of this title relating to bonds, insofar as these provisions may be applicable. A grant anticipation note may be issued or sold only after receipt of written commitment of the federal or State government or agency making the grant; and

(3) Issue and sell its revenue bonds or notes for the purpose of borrowing money to lend to any person or municipality for the accomplishment by such person or municipality of a project or projects. The principal of and interest on the bonds or notes may be made payable out of:

  (i) The revenues received by the Service from such person or municipality or otherwise received in connection with such project;

  (ii) Any property pledged or mortgaged as security for such bonds or notes; or

  (iii) Any other sources designated by the Service. The authorizing resolution may make provision for the issuance of such bonds or notes in series as funds are required. The issuance of bonds or notes and the details of the issuance, the rights of the holders of the bonds or notes, and the rights, duties, and obligations of the Service of the bonds and notes shall be governed by the provisions of this subtitle relating to bonds insofar as those provisions are applicable. The Service may make or approve such provisions in connection with the issuance of the bonds or notes authorized by this subsection, including the security for such bonds or notes, the priority of the bonds or notes with regard to such security (which priority may be senior, or subordinated to, or on a parity with, other obligations) as the Service may deem necessary or appropriate to effectuate the acquisition, construction, or provision of a project by any person or municipality. However, the Service does not have power to take any action in connection with the issuance of bonds or notes pursuant to this paragraph which would create any obligation on the part of any municipality without the consent of the municipality to the obligation.

#### Section 3-117

(a) Bonds and notes authorized to be issued under the provisions of this subtitle by resolution of the Board may be secured by a trust agreement by and between the Service and a corporate trustee, which may be any trust company, or bank having trust powers, within or without the State. The trust agreement, or the authorizing resolution, may pledge or assign all or any part of the revenues of the Service or of any project or other available funds of the Service or pledge, convey, or assign any one or more facilities or properties. Any trust agreement or resolution authorizing the issuance of bonds or notes may contain the provisions for the protection and enforcement of the rights and remedies of the bondholders and the trustee deemed reasonable and proper and may restrict the individual right of action by bondholders. In addition, the trust agreement may contain other provisions which the Board deems reasonable and proper for the security of the bondholders, including, without limitation, covenants to abandon, restrict, or prohibit the construction or operation of competing facilities and covenants pertaining to the issuance of additional parity bonds or notes upon conditions stated therein consistent with the requirements of this subtitle. All expenses incurred in carrying out the provisions of any trust agreement may be treated as a part of the cost of the operation of any project or projects in connection with which the bonds or notes have been issued.

(b) The proceeds of the sale of bonds or notes secured by a trust agreement shall be paid to the trustee under the trust agreement securing the bonds or notes and shall be disbursed in the manner and under the restrictions, if any, that may be provided in the trust agreement.

#### Section 3-118

(a) The Service may fix, revise, charge, and collect rentals, rates, fees or other charges for the use of or for the services or products furnished by any project or projects, including projects within a service district, contract with any person or municipality desiring the use of the services or products, or any part of any project or projects, and fix the terms, conditions, rentals, rates, fees, and charges therefor. The rentals and other rates, fees and charges designated as security for any bonds or notes issued under this subtitle shall be fixed and adjusted in respect of the aggregate thereof from the projects under the control of the Service as to provide funds sufficient with other revenues, if any, (1) to pay the cost of maintaining, repairing, and operating any project or projects financed in whole or in part by outstanding bonds or notes, to the extent the cost is not otherwise provided, (2) to pay the principal of and the interest on the bonds or notes as they become due and payable, (3) to create reserves for those purposes, and (4) to provide funds for paying the cost of renewals or replacements, the cost of acquiring or installing equipment, and the cost of enlarging, extending, reconstructing, or improving any project or projects. The rentals, rates, fees, and charges are not subject to supervision or regulation by any unit of the State government or any political subdivision, except as provided in Sec. 3-128 of this subtitle.

(b) The rentals, rates, fees, and other charges and revenues, or any part thereof, whether derived from the project or projects in connection with which the bonds or notes of any issue have been issued or from other projects, designated as security for the bonds or notes by the authorizing resolution or in the trust agreement securing the bonds or notes, shall be set aside at the regular intervals provided in the resolution or trust agreement in a sinking fund pledged to, and charged with, the payment of (1) the interest on the bonds or notes as it falls due, (2) the principal of the bonds or notes as it falls due, (3) the necessary charges of the trustee and other agents appointed by the trust agreement, and (4) the redemption price or purchase price of bonds or notes retired by call or purchase as provided in the resolution or trust agreement. Any amounts set aside in the sinking fund which are not needed to provide for the payment of items (1), (2), (3), and (4) may be used for any other lawful purpose to the extent provided in the resolution or trust agreement. The pledge is valid and binding from the time it is made. The rentals, rates, fees, and other charges, revenues or other money pledged and thereafter received by the Service immediately shall be subject to the lien of the pledge without any physical delivery thereof or further act, and the lien of the pledge is valid and binding as against all parties having any claims of any kind in tort, contract, or otherwise against the Service, irrespective of whether the parties have notice thereof. Neither the resolution nor any trust agreement by which a pledge is created need be filed or recorded except in the records of the Service, any public general or public local law to the contrary notwithstanding. The use and disposition of money to the credit of the sinking fund are subject to the provisions of the resolution authorizing the issuance of the bonds or notes or of the trust agreement.

#### Section 3-119

All money received by the Service as proceeds from the sale of bonds or notes and all money received or by way of those rentals, rates, fees, or other charges or revenues, or portion thereof, from any project, or any continuation of projects and which are designated by any authorizing resolution or trust agreement as security for bonds or notes shall be deemed to be trust funds to be held and applied solely as provided by the provisions of this subtitle and in the resolution authorizing the issuance of bonds or notes or the trust agreement securing the bonds or notes.

#### Section 3-120

Any holder of bonds or notes issued under this subtitle and the trustee, except to the extent the rights herein given may be restricted by the trust agreement, either at law or in equity, by suit, action, mandamus or other proceedings, may protect and enforce any and all rights under the laws of the State or granted hereunder, or in the resolution authorizing the issuance of the bonds or notes, or under the trust agreement, and may enforce and compel the performance of all duties required by this subtitle, or in the resolution authorizing the issuance of the bonds or notes, or by the trust agreement, to be performed by the Service, or by any officer thereof, including the fixing, charging, and collecting of rentals and other rates, fees, and charges for the use of the projects.

#### Section 3-121

Bonds and notes issued under this subtitle are securities in which all public officers and public units of the State 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, insurance associations, and others carrying on an insurance business, all personal representatives, guardians, trustees, and other fiduciaries, and all other persons may legally and properly invest funds, including capital in their control or belonging to them. The bonds and notes are securities which may properly and legally be deposited with and received by any State or municipal officer or any unit or political subdivision of the State for any purpose for which the deposit of bonds or other obligations of the State is authorized by law.

#### Section 3-122

(a) Bonds or notes issued under the provisions of this subtitle shall not be deemed to constitute or create a debt or a pledge of the faith and credit of the State or of any political subdivision. Every bond or note shall contain on its face a statement to the effect that neither the Service, the State, nor any political subdivision thereof is obligated to pay it or the interest thereon except from revenues or other money of the Service available therefor and that neither the faith and credit nor the taxing power of the State or any political subdivision is pledged to the payment of the principal of or the interest on the bonds or notes. However, this subsection does not limit the ability of the State or a political subdivision to set, impose, or collect an assessment, rate, fee, or charge to pay to the Service the cost of a project, including the principal of and interest on a bond or note, under an agreement between the Service and the State or political subdivision.

(b)

  (1) Notwithstanding any limitations or other provisions to the contrary of Division II, Title 9, Subtitle 2 or Subtitle 3, Title 10, or Title 11 of the Local Government Article, or of any charter or local law regulating the creation of public debts, a municipality may enter into contracts with the Service for the purpose of defraying the Service's costs of acquiring or providing a solid waste disposal project, wastewater purification project, water supply project, or energy project, which costs may include debt service requirements of the Service relating to that project. These contracts shall not be deemed to constitute or create a debt of the municipality or a pledge of its faith or credit within the meaning of any of these limitations or other provisions. Such a solid waste disposal project, wastewater purification project, water supply project, or energy project may not be deemed to be a capital project of the municipality within the meaning of any of these limitations or other provisions, and a resolution, ordinance, or other official action authorizing such contracts is not subject to referendum or other procedure not applicable to all ordinances or resolutions enacted by the municipality. For the purposes of this subsection, the express powers contained and enumerated in Division II and Title 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 subsection.

  (2)

    (i) A county or municipal corporation may limit its obligations under contracts with the Service to a specific source of funds including revenues of its publicly operated or publicly contracted solid waste collection or disposal system.

    (ii) The governing body of a county or municipal corporation may, by ordinance or resolution, impose reasonable rates and charges for publicly operated or publicly contracted solid waste collection, treatment, or disposal sufficient to defray expenses of its publicly operated or publicly contracted solid waste collection, treatment, or disposal system, including amounts due under a contract with the Service and the funding of reserves.

    (iii) The ordinance or resolution may establish a reasonable basis for setting the rates and charges, and a schedule of rates and charges, and may designate solid waste collection, treatment, or disposal service areas within the county or municipal corporation, provided the county or municipal corporation is operating its own collection, treatment, or disposal service or has contracted out those services.

    (iv) The ordinance or resolution may provide that the rates and charges are chargeable against all or part of the occupied lots or parcels of land in the county or municipal corporation or in service areas established by the county or municipal corporation and constitute a first lien on such property and may establish reasonable times and methods for collection of the rates or charges, which may be levied and collected and have the same priority and rights and bear the same interest and penalties and in every respect be treated the same as taxes of the county or municipal corporation.

    (v) The county or municipal corporation may modify the amount of the rates and charges by a resolution of its governing body or by other action authorized by the ordinance or resolution imposing the rates and charges.

    (vi) Before setting or modifying the rates and charges, the county or municipal corporation shall give notice of the proposed rates or charges in at least one newspaper of general circulation in the county or municipal corporation and hold a public hearing on the necessity or advisability of the proposed rates or charges.

    (vii) The county or municipal corporation may enter into a rate covenant with the Service specifying the level of these rates and charges, the covenants described in Sec. 3-104(m) of this subtitle, and other covenants of the county or municipal corporation to provide solid waste collection, treatment, or disposal service and ensure that sufficient revenues are available to provide for the payments due under the contract.

    (viii) The powers granted by this section are in addition to other powers of a county or municipal corporation granted under law and may not be restricted by any debt or tax rate limitation in any general law, local law, or charter provision.

    (ix) Rates and charges imposed under this section are not subject to the jurisdiction of any entity other than the Service or the contracting municipality.

  (3) Any contract between the Service and a municipality shall be valid, binding, and enforceable against the municipality if it is approved by resolution of the governing body of the municipality.

  (4) A county or municipal corporation may exercise the powers granted under this section notwithstanding any limitations or other provisions to the contrary of Division II, Title 9, Subtitle 2 or Subtitle 3, Title 10, or Title 11 of the Local Government Article or of any charter or local law.

#### Section 3-123

The exercise of the powers granted by this subtitle is for the benefit of the people of the State for the improvement of their health and living conditions. Since the activities of the Service and the operation and maintenance of its projects constitute the performance of essential governmental functions, the Service is exempt from any payment of or liability for any and all taxes, whether federal, State, or local, now or hereafter levied or imposed, and any assessments or other governmental charges. The bonds and notes of the Service issued pursuant to the authority of this subtitle, their transfer, the interest payable thereon, and any income derived therefrom, including any profit realized in the sale or exchange thereof, at all times shall be exempt from taxation of every kind and nature whatsoever by the State, or by any of its political subdivisions, municipal corporations, or public units of any kind.

#### Section 3-124

The Service may 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 in the State. The Service may appeal to a court having jurisdiction 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 may ever attach to or become a lien upon any property, real or personal, owned or controlled by the Service. No assignment of wages may be binding upon or recognized by the Service.

#### Section 3-125

(a) Any lien created in favor of the Service or a municipality pursuant to this subtitle is effective against the person on whose property the lien exists and the owner of record. However, the lien is not effective against any third party unless written notice of the lien is recorded and indexed in a permanent record maintained in the office of the clerk of the circuit court in each county in which the property subject to the lien or any part of it is located.

(b) The notice shall contain the name and address of the owner of record against whose property the lien exists, the name and address of the Service or municipality, the amount of the lien, a description or reference to the property subject to the lien, and the date the lien was created.

(c) On presentation of a release of any lien of the Service or municipality, the clerk of the proper court in which the lien is recorded and indexed shall record and index the release and shall note in the lien docket the date the release is filed and the fact that the lien is released.

(d) The clerk of the proper court shall provide a suitable well-bound book, at the expense of the county or city, to be called the environmental service lien docket, in which the notices of liens shall be recorded and indexed. The clerk may not collect more than $2 for recording and indexing each lien or release of any lien.

#### Section 3-126

(a) The Service may provide for the creation, continuation, and administration of whatever funds may be required. Money in these funds and other money of the Service shall be deposited, as directed by the Service, in any State or national bank, or federally insured savings and loan associations having a total paid-in capital of at least $1,000,000 or in any financial institution in which the State Treasurer is authorized to deposit State funds. The trust department of any State or national bank or savings and loan association may be designated as a depository to receive any securities acquired or owned by the Service. The restriction with respect to paid-in capital may be waived for any qualifying bank or savings and loan association which agrees to pledge securities of the State or of the United States to protect the funds and securities of the Service in amounts and under arrangements acceptable to the Service.

(b) Any money of the Service, in its discretion and unless otherwise provided in any trust agreement, other agreement, or covenant made by the Service for the benefit of the holders of any of its obligations with respect to funds held under the trust or other agreement may be invested in:

  (1) Bonds or other obligations of, or guaranteed as to principal and interest by, the United States or the State or its political subdivisions or units; or

  (2) Any other obligation or security in which the State Treasurer may invest under Sec. 6-222 of the State Finance and Procurement Article.

(c) The Service shall make provision for a system of financial accounting, controls, audits, and reports. All accounting systems and records, auditing procedures and standards, and financial reporting shall conform to generally accepted principles of governmental accounting. The Service shall adopt the fiscal year of July 1 to June 30, designate the necessary funds for complete accountability, and specify the basis of accounting for each fund.

(d)

  (1)

    (i) On or before November 15 each year, an audit shall be made of the financial books, records, and accounts of the Service.

    (ii) The audit shall be made by independent certified public accountants, selected by the Service and licensed to practice in the State.

    (iii) The accountants:

      (1) May not have a personal interest either directly or indirectly in the fiscal affairs of the Service; and

      (2) Shall be experienced and qualified in the accounting and auditing of public bodies.

    (iv) The report of audit shall be prepared in accordance with generally accepted auditing principles and point out any irregularities found to exist.

    (v)

      (1) The accountants shall report the results of their examination, including their unqualified opinion on the presentation of the financial position of the various funds and the results of the Service's financial operations.

      (2) If the accountants 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.

  (2) The Board shall review an audit prepared under paragraph (1) of this subsection at a meeting of the Board and make any changes or recommendations that the Board considers appropriate based on the audit.

  (3) The Service shall:

    (i) Provide to the Department of Budget and Management:

      (1) A copy of an audit prepared under paragraph (1) of this subsection; and

      (2) Any changes or recommendations of the Board based on the audit; and

    (ii) Post a copy of an audit prepared under paragraph (1) of this subsection on the Service's website, including a link on the homepage of the website to a copy of the most recent audit.

(e) The books, records, and accounts of the Service are subject to audit by the State, including the Legislative Auditor.

(f) Any officer or employee who refuses to give the required assistance and information to the accountants selected by the Service or by the State, or who refuses to submit to them for examination the books, documents, records, files, accounts, papers, things, or property required for the audit, in the discretion of the Service, may be required to forfeit his office or employment.

(g) Any money received by the Service from State agencies for goods or services provided by the Service in accordance with agreements with those agencies shall be deposited and credited to the funds created under this subtitle.

(h)

  (1) On or before November 15 each year, the Service shall make a report to the Governor and, subject to Sec. 2-1257 of the State Government Article, to the General Assembly of its activities for the preceding fiscal year.

  (2) Each such report shall include the completed financial audit required under subsection (d) of this section and a summary of energy activities undertaken by the Service during the preceding fiscal year.

#### Section 3-127

(a) Except as otherwise provided by this subtitle, the Service may adopt, formulate, revise, and enforce rules and regulations necessary for the regulation of its internal affairs and for the use and operation of its projects, and of any other laws the administration of which is vested in the Service. A rule or regulation concerning the use or operation of a project may not conflict with any rule, regulation, permit, or hauler certificate of the Department of the Environment. The Service may limit or regulate water supply or liquid waste service, refuse collection, disposal service, and storm and surface water drainage service, in any area or to any premises served by Service projects, as the exigencies of the occasion and the protection of its systems require. The Service may adopt lawful and reasonable regulations it considers necessary for the public's health and safety, comfort, and convenience in the construction, operation, maintenance, expansion, relocation, replacement, renovation, and repair of its water supply, wastewater purification, solid waste disposal, and energy projects.

(b) Rules and regulations shall be approved by the Board and adopted under the provisions of the Administrative Procedure Act, except when necessary for the immediate preservation of the public health and safety and except for emergency provisions required to protect Service projects.

(c) Any regulation adopted by the Service under this section has the effect of law.

#### Section 3-128

(a) If the Service and a municipality or person fail to reach agreement on rates, fees, or other charges to be exacted by the Service for a water supply or wastewater purification project, the Public Service Commission, on the petition of either party to the disagreement, shall assume jurisdiction for the purpose of arbitrating the disagreement. Its determination shall be final and binding on all parties concerned, subject to the right of any party to appeal the determination to the circuit court of any county within which the municipality or person is located, resides, or carries on business. In any appeal the decision of the Commission is prima facie correct and shall be affirmed unless clearly shown to be (1) in violation of constitutional provisions, or (2) made on unlawful procedure, or (3) arbitrary or capricious, or (4) affected by other error of law. It is the intention of this subtitle that judicial review in all instances includes the right to appeal to the Appellate Court of Maryland from the decision of the lower court. The provisions of this section and the jurisdiction of the Public Service Commission shall not apply to any rates, fees, or charges agreed to by contract between the Service and a municipality or person for a water supply or wastewater purification project.

(b) The Service may not be deemed to be a public service company within the meaning of the Public Utilities Article, and, except as provided in this section and in Sec. 3-102(b) of this subtitle, the jurisdiction and powers of the Public Service Commission do not extend to the Service.

#### Section 3-129

Any person who violates any provision of this subtitle or of any rule or regulation adopted by the Service is guilty of a misdemeanor and on conviction is subject to a fine not exceeding $1,000 for each violation. A separate offense exists for each day a violation occurs.

#### Section 3-130

This subtitle shall be known as the "Maryland Environmental Service Act".

### Subtitle 2. Maryland Environmental Trust

#### Section 3-201

(a)

  (1) There is a Maryland Environmental Trust established to conserve, improve, stimulate, and perpetuate the aesthetic, natural, health and welfare, scenic, and cultural qualities of the environment, including, but not limited to land, water, air, wildlife, scenic qualities, open spaces, buildings or any interest therein, and other appurtenances pertaining in any way to the State.

  (2) Through educational and other means, the Trust shall encourage and motivate the populace of the State and others to do so and shall promote continuing interest in and the study of these matters.

  (3) The purpose of the Trust is of general benefit to the citizens of the State, and it is charitable in nature.

(b) The Trust has perpetual existence subject to modification or termination by the General Assembly if necessary to effectuate its purpose or when and if its substantial purpose ceases.

(c)

  (1) In this subsection, "ecosystem services" includes:

    (i) Climate resilience;

    (ii) Carbon sequestration;

    (iii) The provision of wildlife habitat;

    (iv) Contributions to forest health; and

    (v) The protection or restoration of wetlands.

  (2) An easement approved by the Trust may allow for the potential of economic return from the protection, management, maintenance, or improvement of ecosystem services provided by the property, so long as the Trust determines those uses do not impair or interfere with the conservation values and purposes of the easement and are otherwise consistent with the Trust's policies related to ecosystem services.

#### Section 3-202

(a)

  (1) A board of 19 trustees has and shall exercise the powers and duties of the Trust.

  (2) The Governor, the President of the Senate, and the Speaker of the House of Delegates are ex officio members of the board of trustees.

  (3)

    (i) Subject to subparagraphs (ii) and (iii) of this paragraph, beginning on June 1, 2017, of the remaining 16 trustees, four shall be elected each year for a term of four years at any regular or special meeting by a majority vote of the trustees present.

    (ii) In order to bring the composition of the board of trustees up to 16 elected trustees, four trustees shall be elected in October 2016.

    (iii) The trustees shall elect a trustee as follows:

      (1) The Governor shall submit three recommendations to the board of trustees, of which two shall be elected;

      (2) The President of the Senate shall submit three recommendations to the board of trustees, of which one shall be elected; and

      (3) The Speaker of the House of Delegates shall submit three recommendations to the board of trustees, of which one shall be elected.

    (iv) Insofar as is practicable and consistent with the purposes of the Trust, the recommendations for an elected trustee shall:

      (1) Represent a broad distribution of professions and geographies;

      (2) Reflect the diversity of the State; and

      (3) Represent individuals with experience in one or more of the following categories:

      (A) Conservation or preservation of parklands, agricultural land, forest land, historic and cultural properties, natural areas, or important recreational lands;

      (B) Agriculture, including the horse industry;

      (C) Community planning and land use policy, with an emphasis on community sustainability, health communities, community food systems, youth development and education, or green infrastructure;

      (D) Academic work in natural science, social science, or cultural science at the university level; and

      (E) Business leadership, governance, or fund-raising in any of the categories identified under this item.

    (v)

      (1) Except as provided under subsubparagraph 2 of this subparagraph, an elected trustee may not serve more than two consecutive terms.

      (2) The chair may serve a third consecutive term if elected as chair during or after the second year of the chair's second term.

      (3) The terms of elected trustees are staggered as required by the terms provided for trustees of the Trust on June 1, 2016.

      (4) A trustee who is elected to fill a vacancy that arises after a term has begun:

      (A) Shall be elected from recommendations submitted by the Governor, the President of the Senate, or the Speaker of the House of Delegates in accordance with subparagraph (iii) of this paragraph, as applicable; and

      (B) Serves only for the rest of the term and until a successor is elected.

(b) A trustee:

  (1) May not receive compensation as a trustee of the Trust; but

  (2) Is entitled to reimbursement for expenses under the Standard State Travel Regulations, as provided in the State budget.

(c)

  (1) An ex officio member of the board of trustees may delegate any of the powers or duties of the member to an authorized representative.

  (2)

    (i) The representative of the Governor shall be a member of the Executive Department of this State.

    (ii) The representative of the President of the Senate shall be a member of the Senate.

    (iii) The representative of the Speaker of the House shall be a member of the House of Delegates.

#### Section 3-203

The trustees have the powers and duties to:

(1) Receive annual appropriations as provided in the budget;

(2) Sponsor, assist, conduct, or otherwise cause to be undertaken, comprehensive programs of research and education pertaining to the aesthetic, natural, health and welfare, scenic, or cultural qualities of the State environment, including the provision of financial grants to public and private agencies, organizations, and persons engaged by the trustees for consulting and other special participation in these programs;

(3) Acquire and hold real and personal property, or any interest therein, of aesthetic, scenic, or cultural significance, or of significance to the health and welfare of the public, by lease, gift, purchase, devise, bequest, or by any other means, and conserve, improve, administer, invest, or dispose of the properties for the purposes of the Trust, and in the acquisition of these properties to acquire property adjacent thereto deemed necessary for the proper use and administration of the Trust;

(4) Accept any gift. The trustees may expend both principal and income of any gift of money or invest it in whole or in part in general obligations of the State or other securities in furtherance of the Trust, as decided at a regular or special meeting, if a quorum is present, by the affirmative vote of a minimum of seven elected trustees;

(5) Apply any money, assets, property or other things of value it may receive as an incident to its operation, to the general purposes of the Trust;

(6) Cooperate with and assist as far as practicable, any unit of the State, any political subdivision, and any private, public, or federal agency, foundation, or person, in furtherance of the purposes of the Trust;

(7) Take any action necessary or proper to effectuate the powers expressly conferred by this subtitle;

(8) Adopt, subject to the terms of this subtitle, rules and regulations necessary or proper for the regulation of their own government or to effectuate the purpose of the Trust;

(9) Delegate any of the powers conferred to any one or more of the trustees or the director of the Trust; and

(10) Report annually to the Governor and, subject to Sec. 2-1257 of the State Government Article, to the General Assembly on the Trust's activities during the preceding year together with any recommendations or requests deemed appropriate to further the purposes of the Trust.

#### Section 3-203.1

(a) When any person offers to donate a perpetual conservation easement to the Maryland Environmental Trust, notification shall be mailed by the Maryland Environmental Trust to the appropriate governing body in which the land is located, as specified in subsection (b) of this section.

(b) The appropriate governing body for the purposes of this section means:

  (1) The board of county commissioners in a commission county;

  (2) The county executive and county council in a charter home rule county;

  (3) The county commissioners in a Code home rule county; and

  (4) The Mayor and City Council in Baltimore City.

#### Section 3-204

(a) The trustees shall elect from among the elected membership a chair, secretary, and other officers as they determine.

(b) The trustees shall meet at least four times a year at places and on dates they determine.

(c) The chair may call other meetings, and must call one at the request of six or more trustees.

(d) The secretary shall notify in writing every trustee of the time and place of every meeting at least seven days in advance of the meeting, except that meetings may be held on shorter notice if all trustees agree.

(e) Ten trustees constitute a quorum to conduct business.

(f) If at any time there is no director, the chair shall assume the director's duties and powers.

(g) The chair with the consent of the trustees may appoint an advisory council.

#### Section 3-205

The trustees may appoint a director of the Trust to administer its activities subject to the trustees' supervision. They may employ other persons as necessary. The director and staff are employees of the State, but the director shall not be a member of the skilled service or professional service, with the exception of special appointments. The trustees may remove the director at their will.

#### Section 3-206

The trustees may request and shall receive from the Attorney General legal counsel and services necessary to carry out effectively the purposes of the Trust.

#### Section 3-207

The State may pay money or transfer property to the Trust to carry out the purposes of the Trust. The Trust may receive, manage, expend, and dispose of grants, money, and property from the federal government or political subdivision of the State.

#### Section 3-208

Subject to the limitations of Sec. 3-207 of this subtitle, the Trust may improve, sell, convey, assign, lease, or otherwise transfer or dispose of any property, or interest in property, it holds, and enter into any contract, easement, or other legal arrangement incident thereto, including but not limited to, the authority to lease properties for various commercial and residential uses consistent with the purposes of the Trust on terms and conditions the trustees deem appropriate. Any lease the trustees make shall be in immediate furtherance of the purposes of the Trust and not merely for investment purposes. Notwithstanding any provision of law to the contrary, a lease the Trust makes may not be subject to redemption at the option of the tenant, unless expressly provided.

#### Section 3-209

Each State political subdivision, by appropriate action of its respective legislative body, may appoint a subcommittee to cooperate with, and work under, the guidance and control of the trustees of the Trust to further the objectives of the Trust at the local level.

#### Section 3-210

(a)

  (1) Any function or activity of the Governor's Committee to Keep Maryland Beautiful is transferred to the Trust.

  (2) These functions and activities include, by way of enumeration and not limitation:

    (i) Educating Maryland citizens and visitors in their individual responsibility in litter prevention and care of the out-of-doors through a two-fold approach:

      (1) Awareness-publicity through radio, TV, newspapers, and other public media; and

      (2) Action-cleanup and beautification projects carried out by civic organizations, county committees, and community groups in cooperation with public agencies;

    (ii) Efficient use of public and private funds spent on cleaning up highways, parks, beaches, and other public and private property;

    (iii) Increasing beauty through stimulation of private business, community, and public planting projects; and

    (iv) Stimulating pride and appreciation for home, community, and State.

(b)

  (1) In fiscal year 2025 and each fiscal year thereafter, the Governor may include in the annual budget bill an appropriation of $235,000 to the Trust, to be used in the following amounts for the following purposes:

    (i) $50,000 per year to provide land stewardship capacity-building grants of up to $10,000 to land trusts to support monitoring and stewardship scholarships, land monitoring and stewardship equipment, or organizational accreditation and certification trainings;

    (ii) $50,000 per year to provide land stewardship improvement grants of up to $10,000 to land trusts to support improved monitoring and stewardship of agricultural lands, forest lands, or lands facing a high degree of threat from invasive species or the effects of climate change; and

    (iii) $135,000 per year to provide citizen stewardship grants of up to $5,000 to nonprofit organizations, community organizations, schools, and municipal corporations to engage community members, especially children and young adults, in environmental education and stewardship.

  (2) Funds provided to the Trust under paragraph (1) of this subsection are supplemental to and are not intended to take the place of funding that would otherwise be appropriated to the Trust for grants administered under the Keep Maryland Beautiful Program.

#### Section 3-211

The provisions relating to the Trust do not limit the power or activity of any unit of the State, any political subdivision, any private unit, or person interested in the aesthetic, natural, health and welfare, scenic, and cultural qualities of the environment of the State.

#### Section 3-214

(a) In this part the following words have the meanings indicated.

(b) "Advisory Committee" means the Land Preservation Rapid Response Advisory Committee.

(c) "Board of Trustees" means the Board of Trustees of the Maryland Environmental Trust.

(d) "Executive Committee" means the Executive Committee of the Maryland Environmental Trust.

(e) "Fund" means the Local Land Trust Revolving Loan Fund.

(f) "Land trust" has the meaning stated in Sec. 3-2A-01 of this article.

(g) "Program" means the Local Land Trust Revolving Loan Program.

(h) "Trust" means the Maryland Environmental Trust.

#### Section 3-215

(a) There is a Local Land Trust Revolving Loan Program.

(b) The purpose of the Program is to:

  (1) Support the efforts of local land trusts that work with State and local governmental entities; and

  (2) Provide revolving loans to land trusts on a rolling basis to assist the land trusts to purchase fee simple or easement interests in real property for conservation purposes.

(c)

  (1) The Trust shall:

    (i) Administer the Program; and

    (ii) Establish application procedures and eligibility criteria for Program loans.

  (2) If the Trust approves an applicant's request for a Program loan, the Trust shall:

    (i) Prepare the loan documents; and

    (ii) Establish the terms and conditions for the loan.

(d) A land trust that receives a Program loan to purchase property in accordance with subsection (b) of this section shall repay the Fund:

  (1) At a rate to be determined by the Trust, not to exceed one point below the prime interest rate; and

  (2) After the property is:

    (i) Placed under a conservation easement; or

    (ii) Transferred to a State or local governmental entity.

(e) Nothing in this section obligates a State or local government entity to accept or purchase from a land trust a conservation easement or transferred property purchased with a Program loan.

(f) Notwithstanding subsection (d)(2) of this section, a land trust shall repay a Program loan and any accrued interest within 5 years after receiving the Program loan, unless the Board of Trustees approves an extension of time based on extenuating circumstances.

(g) If a land trust violates any provision of the loan documents or ceases to meet the requirements of this subtitle, on reasonable notice to the land trust, the Trust may exercise any remedy available under law, including any remedies provided for in the loan documents.

(h)

  (1) A person may not knowingly make or cause to be made any false statement or report, including any understatement or overstatement of financial condition for a new loan or affecting a loan already made under this subtitle:

    (i) In any application or in any document furnished to the Trust; or

    (ii) For the purpose of influencing the action of the Trust on an application for financial assistance or for the purpose of influencing any action of the Trust affecting financial assistance whether or not such assistance may have already been extended.

  (2) Any person, aider, or abettor who violates any provision of this subtitle is guilty of a misdemeanor and on conviction is subject to a fine not exceeding $50,000 or imprisonment not exceeding 5 years or both.

#### Section 3-216

(a) There is a Land Preservation Rapid Response Advisory Committee.

(b) The purpose of the Advisory Committee is to:

  (1) Review and prioritize Program loan applications for consideration by the Board of Trustees; and

  (2) Make recommendations to the Board of Trustees on:

    (i) Which projects to fund, whether in whole or in part; and

    (ii) The funding to be allocated to each project.

(c) The Advisory Committee consists of:

  (1) A representative of the Department, selected by the Secretary; and

  (2) The following members, selected by the Board of Trustees:

    (i) A representative of the Trust that is not a member of the Executive Committee;

    (ii) A representative of a nonprofit land conservation organization in the State;

    (iii) A representative of a local parks and recreation department in the State; and

    (iv) An individual with experience in loan underwriting.

#### Section 3-217

(a) There is a Local Land Trust Revolving Loan Fund.

(b) The purpose of the Fund is to finance the Program.

(c) The Trust shall administer the Fund.

(d)

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

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

(e) The Fund consists of:

  (1) Money appropriated in the State budget to the Fund;

  (2) Interest earnings;

  (3) Repayments of principal and interest from loans made under the Program; and

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

(f) The Governor may include in the annual budget bill an appropriation to the Fund.

(g) The Fund may be used only to provide funding for the Program.

(h)

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

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

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

(j) Money expended from the Fund for the Program is supplemental to and is not intended to take the place of funding that otherwise would be appropriated for the Program.

### Subtitle 2A. Land Trust Grant Fund

#### Section 3-2A-01

(a) In this subtitle the following words have the meanings indicated.

(b) "Department" means the Department of Natural Resources.

(c) "Grant Fund" means the Land Trust Grant Fund established under Sec. 3-2A-02 of this subtitle.

(d) "Land trust" means a qualified conservation organization that:

  (1) Is a qualified organization under Sec. 170(h)(3) of the Internal Revenue Code and regulations adopted under Sec. 170(h)(3); and

  (2) Has executed a cooperative agreement with the Maryland Environmental Trust.

(e) "Trust" means the Maryland Environmental Trust.

#### Section 3-2A-02

(a) There is within the Department a Land Trust Grant Fund.

(b)

  (1) The Grant Fund shall be used as a nonlapsing revolving fund to make grants to land trusts in the State.

  (2) The Grant Fund may be used only to encourage the preservation and protection of open space and natural areas in the State.

  (3) When deemed appropriate by the Trust, grants from the Grant Fund to land trusts shall be reimbursable to the Grant Fund, subject to Sec. 3-2A-08 of this subtitle.

(c)

  (1) The Maryland Environmental Trust shall administer the Grant Fund.

  (2) In addition to their other powers and duties under this title, the trustees of the Trust may take any action necessary or proper to administer the Grant Fund.

(d) Funds shall be included in the Department's annual budget for the costs of administering the Grant Fund.

#### Section 3-2A-03

(a) All receipts designated for the Grant Fund shall be placed in the Grant Fund held by the Department and administered by the Trust, including:

  (1) Money appropriated by the State to the Grant Fund;

  (2) Premiums, fees, and payments on reimbursement of grants, where required;

  (3) Income from investments that the State Treasurer, on instruction of the Department, makes for the Department under this subtitle; and

  (4) Any other money made available to the Grant Fund.

(b) Any unspent money in the Grant Fund at the end of the fiscal year shall remain in the Grant Fund and may not revert to the General Fund of the State.

#### Section 3-2A-04

(a) If, at any time, the amount of money in the Grant Fund exceeds the amount that the Trust considers necessary currently to meet its expenses and obligations, the Department shall deposit the excess money with the State Treasurer, who shall invest the money in the manner provided for by law.

(b) Annually, the State Treasurer shall report to the Department as to:

  (1) The status of the money invested under this subtitle;

  (2) The market value of the assets in the Grant Fund as of the date of the report; and

  (3) The interest received from investments for the Grant Fund during the period covered by the report.

#### Section 3-2A-05

(a) Subject to conditions necessary to carry out the purposes and requirements of this subtitle, the Trust, on application by a land trust, may provide a grant to the applicant from the Grant Fund.

(b) The Trust may make a grant to an applicant only if:

  (1) The applicant meets the qualifications required by this subtitle;

  (2) The grant is to be used only for the acquisition of interests or rights in real property for recreational or preservation purposes;

  (3) The Department approves the project as being in conformity with the Department's criteria governing land acquired under a State grant from Program Open Space;

  (4) The trustees of the Trust approve the grant; and

  (5) The Board of Public Works approves the grant.

#### Section 3-2A-06

(a) To apply for a grant, an applicant shall submit to the Trust an application in the form that the Trust requires.

(b) The application shall include:

  (1) A detailed description of the proposed acquisition;

  (2) An itemization of known and estimated costs;

  (3) The total amount of investment required to acquire the property;

  (4) The funds available to the applicant without financial assistance from the Trust;

  (5) The amount of financial assistance sought from the Trust;

  (6) Information that relates to the financial status of the applicant; and

  (7) Any other relevant information that the Trust requests.

#### Section 3-2A-07

(a) In making grants under this subtitle, the Trust shall give consideration to:

  (1) The amount of funds contributed to the project by the land trust as a match against the grant;

  (2) The amount of funds contributed to the project by parties other than the land trust or the Trust;

  (3) The natural resource, open space, or recreational value of the project;

  (4) Geographic distribution;

  (5) The degree of development pressure in the area; and

  (6) Whether the grant will be reimbursed to the Land Trust Grant Fund, as provided by Sec. 3-2A-08 of this subtitle.

(b) The Trust may not make a grant under this subtitle to a land trust unless the land trust:

  (1) Contributes an amount not less than 15% of the amount of the grant as a match; or

  (2) Agrees to resell the property to the Department or a local governing body as provided by Sec. 5-903 or Sec. 5-905 of this article.

#### Section 3-2A-08

(a) A land trust may, with the approval of the Trust, subsequently sell or transfer the acquired property to a third party.

(b) As a condition of the grant, the Trust may require the dedication of a conservation easement on or reversionary interest in the property in favor of the Trust.

(c)

  (1) Grants awarded to land trusts under this subtitle may be fully or partially reimbursed to the Land Trust Grant Fund under the general conditions set forth in paragraph (2) of this subsection, to be further specified by the Trust in the grant conditions.

  (2) When land or an interest in land is acquired by the land trust with a grant under this subtitle, on resale of the property a proportion of the money from the resale shall be repaid to the Land Trust Grant Fund as may be provided in the grant conditions.

#### Section 3-2A-09

(a) Except as provided in this subtitle, the Trust may set the terms and conditions for grants.

(b) If the Trust decides to grant money to an applicant, the Trust shall prepare grant documents.

#### Section 3-2A-10

(a) If the Trust approves the application, the Trust shall recommend to the Board of Public Works approval of the grant.

(b) The Board of Public Works may approve the grant conditional on modifying its terms.

#### Section 3-2A-11

If an applicant violates any provision of the grant documents or ceases to meet the requirements of this subtitle, on reasonable notice to the applicant, the Trust may exercise any remedy for which the grant documents provide.

#### Section 3-2A-12

(a) A person may not knowingly make or cause to be made any false statement or report, including any understatement or overstatement of financial condition for a new grant or affecting a grant already made under this subtitle:

  (1) In any application or in any document furnished to the Trust; or

  (2) For the purpose of influencing the action of the Trust on an application for financial assistance or for the purpose of influencing any action of the Trust affecting financial assistance whether or not such assistance may have already been extended.

(b) Any person or any aider or abettor, who violates any provision of this subtitle, is guilty of a misdemeanor and on conviction is subject to a fine not exceeding $50,000 or imprisonment in the penitentiary not exceeding 5 years or both.

#### Section 3-2A-13

The Department shall adopt any regulations necessary to carry out the purposes of this subtitle.

#### Section 3-2A-14

(a) The Trust shall report on or before September 1 of each year to the Governor, the budget committees of the General Assembly, and the Department of Legislative Services on the status of the Grant Fund as of the end of the previous fiscal year.

(b) The Trust's report shall include:

  (1) The total amounts of funds expended;

  (2) The total amounts of funds committed;

  (3) The total amounts of funds remaining;

  (4) A list of projects for which funds have been expended or are committed;

  (5) A projection of projects in the near future for which grants will be made;

  (6) An assessment of which grants are expected to be fully or partially reimbursable to the Grant Fund;

  (7) An evaluation of the program's effectiveness; and

  (8) Projections as to future funding needs.

### Subtitle 3. Power Plant Research Program

#### Section 3-301

(a) In this subtitle the following words have the meanings indicated.

(b) "Fund" means Environmental Trust Fund.

(c) "Generator lead route" and "route" means a transmission line from a generation site to the first substation or substations connecting the line to the grid.

(d) "Program" means a continuing research program for electric power plant site evaluation and related environmental land use considerations.

(e) "Secretary" means Secretary of Natural Resources.

#### Section 3-302

(a)

  (1) There is an Environmental Trust Fund.

  (2)

    (i) For the purpose of this subtitle, there is established as an added cost of electricity distributed to retail electric customers within the State, an environmental surcharge per kilowatt hour of electric energy distributed in the State to be paid by any electric company as defined in Sec. 1-101 of the Public Utilities Article.

    (ii) The Public Service Commission shall impose the surcharge per kilowatt hour of electric energy distributed to retail electric customers within the State and shall authorize the electric companies to add the full amount of the surcharge to retail electric customers' bills.

    (iii) To the extent that the surcharge is not collected from retail electric customers, the surcharge shall be deemed a cost of distribution and shall be allowed and computed as such, together with other allowable expenses, for rate-making purposes.

    (iv) Revenues from the surcharge shall be collected by the Comptroller and placed in the Fund.

(b)

  (1)

    (i) The Secretary, in consultation with the Director of the Maryland Energy Administration, annually shall coordinate the preparation of a budget required to carry out the provisions of this subtitle.

    (ii) On approval of the budget by the General Assembly, the Public Service Commission shall establish the amount of the surcharge per kilowatt hour for the fiscal year beginning July 1, 1972, and for each subsequent fiscal year.

  (2) Notwithstanding any other provisions of this subtitle, the amount of the surcharge for each account for each retail electric customer may not exceed the lesser of 0.15 mill per kilowatt hour or $1,000 per month and the surcharge may not continue beyond fiscal year 2030.

  (3)

    (i) The Comptroller shall maintain the method of collection of the surcharge from the companies and the collections shall accrue to the Fund.

    (ii) The Department shall credit against the amount required to be paid into the Environmental Trust Fund by each electric company an amount equal to 0.75% of the total surcharge attributed to each company on the basis of the electricity distributed within Maryland.

(c)

  (1)

    (i) The Secretary shall administer the Fund.

    (ii) The Fund is subject to the provisions for financial management and budgeting established by the Department of Budget and Management.

    (iii) Any investment earnings of the Fund shall be credited to the General Fund of the State.

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

    (v) Except as provided in paragraph (2) of this subsection, the money in the Fund shall be used to carry out the provisions of this subtitle as provided for in the budget.

    (vi) For the purposes of this subtitle, the Secretary, in consultation with the Director of the Maryland Energy Administration, may execute appropriate contracts with any State or federal agency, research organization, industry, or academic institution to conduct the necessary research, construct or acquire, or both, real property including physical predictive models, laboratories, buildings, land, and appurtenances, or support the technological development of extraordinary systems related to power plants designed to minimize environmental impact.

    (vii) The Secretary may utilize available expertise in any other State unit in the development, execution, and management of contracts and agreements on projects relating to their areas of prime responsibility.

  (2) Money in the Fund may be used for administrative costs calculated in accordance with Sec. 1-103(b)(2) of this article.

(d) The Chesapeake Bay Trust shall receive $375,000 from the Fund each fiscal year for the purpose of funding energy conservation projects through the Thomas V. Mike Miller, Jr., Chesapeake Conservation and Climate Corps Program, as provided under Sec.Sec. 8-1913 through 8-1924 of this article.

(e) The Legislative Auditor may conduct post audits of a fiscal and compliance nature of the Fund and of the appropriations and expenditures made for the purposes of this subtitle. The cost of the fiscal portion of the post audit examinations shall be an operating cost of the Fund.

#### Section 3-303

(a)

  (1) The Secretary, in consultation with the Director of the Maryland Energy Administration and in cooperation with the Secretaries of the Environment, Agriculture, Commerce, and Planning and electric company representatives shall implement a continuing research program for electric power plant site evaluation, related environmental and land use considerations, and the evaluation of the impact of electric power plants on climate change.

  (2)

    (i) The Secretary shall seek from additional sources recommendations for related research to be included in the program.

    (ii) The additional sources shall include appropriate federal and State agencies, electric companies and technical, scientific, or educational institutions or organizations.

  (3)

    (i) The Secretary, in consultation with the Director of the Maryland Energy Administration, shall institute effective procedures for coordinating environmental research assignments to prevent dissipation of money, time, and effort.

    (ii) To this end, the State's electric companies shall be reimbursed from the Fund for environmental research specifically required to satisfy application and permit requirements for any federal, State, or local regulatory agencies, if the electric company has requested reimbursement in advance and furnishes an outline of the program and its estimated cost so that the Secretary can budget it in advance.

(b) The program shall include:

  (1) General biological and ecological baseline studies, including, but not limited to, appropriate environmental studies of the biology, physics, and chemistry of the Chesapeake Bay and tributaries; sediment and biological surveys to determine and identify essential marine organism nursery areas of the State's waters, including the Chesapeake Bay and tributaries; epibenthos; bottom species; crab; finfish and human use studies;

  (2) Research to assist prediction, including but not limited to experimental research, field and laboratory, and the development and provision for physical, mathematical, and biological modeling tools to assist in determining and evaluating the effects of variation of natural waters resulting from electric generating plant operations including changes in temperature, oxygen levels, salinity, biocides, radionuclides, and "heavy" metals. This research also includes collection and organization of relevant information and data necessary to operate physical, mathematical, and biological modeling tools;

  (3) Provisions for monitoring operations of electric power facilities located in the State. These provisions include but are not limited to a determination of actual distribution and effect of temperature, salinity, oxygen, radionuclides, "heavy" metals, and biological effects; radiological; "heavy" metals and biocide effects; recreational and commercial fishing gains and losses; and human health and welfare effects;

  (4) Research and investigations relating to effects on air resources of electric power plants and effects of air pollutants from power plants on public health and welfare, vegetation, animals, materials, and esthetic values, including baseline studies, predictive modeling, and monitoring of the air mass at sites of proposed or operating electric generating stations, evaluation of new or improved methods for minimizing air pollution from power plants and other matters pertaining to the effect of power plants on the air environment;

  (5) An environmental evaluation of electric power plant sites proposed for future development and expansion and their relationship to the waters and air of the State;

  (6) An evaluation of the environmental effects of new electric power generation technologies and extraordinary systems related to power plants designed to minimize environmental effects;

  (7) Determining the potential for constructive uses of waste energy to be released at proposed electric plant sites;

  (8) Analysis of the socioeconomic impact of electric power generation facilities on the land uses of the State;

  (9) An evaluation of the pollinator benefits that would occur under a pollinator-friendly vegetation management standard or pollinator habitat plan implemented on land:

    (i) On which a proposed or an existing ground-mounted solar generation facility is located; and

    (ii) That does not include land that is adjacent to the land on which the solar generation facility is located; and

  (10) An evaluation of:

    (i) The greenhouse gas emissions and climate effects of different electric power generation technologies based on the best available scientific information recognized by the Intergovernmental Panel on Climate Change; and

    (ii) Whether the greenhouse gas emissions and climate effects of electric power generation technologies are consistent with the State's climate commitments for reducing statewide greenhouse gas emissions, including those specified in Title 2, Subtitle 12 of the Environment Article.

#### Section 3-303.1

(a) The Department, in consultation with the Department of Agriculture, shall designate a solar generation facility as pollinator-friendly if the solar generation facility meets the requirements of this section.

(b) The Department shall adopt a Solar Site Pollinator Habitat Planning and Assessment scorecard that:

  (1) Has been recommended by the University of Maryland bee lab;

  (2) May be updated or amended only once every 2 years; and

  (3) Applies only to solar generation facilities.

(c)

  (1) A solar generation facility may be designated as pollinator-friendly only by the Department.

  (2) A solar generation facility may be designated by the Department as pollinator-friendly if:

    (i) The solar generation facility:

      (1) Is ground-mounted;

      (2) Is at least 1 acre in size; and

      (3) Meets or exceeds the minimum score identified in the Solar Site Pollinator Habitat Planning and Assessment scorecard; and

    (ii) The land on which the solar generation facility is located is planted and managed in accordance with a pollinator-friendly vegetation management standard or pollinator habitat plan evaluated under Sec. 3-303(b)(9) of this subtitle by the power plant research program.

(d) The owner of a solar generation facility may not claim that the facility is pollinator-friendly or that the facility provides benefits to pollinators, song birds, or game birds unless the facility has been designated as pollinator-friendly by the Department in accordance with this section.

(e) The owner of a pollinator-friendly solar generation facility shall provide appropriate maintenance of the pollinator vegetation.

(f) The owner of a pollinator-friendly solar generation facility shall make the facility's pollinator-friendly vegetation management standard or pollinator habitat plan evaluated under Sec. 3-303(b)(9) of this subtitle by the power plant research program available to the Maryland, DC, and Virginia Solar Energy Industries Association or other nonprofit solar industry trade associations.

(g) Nothing in this section restricts any farming practices on any land adjacent to the land on which a solar generation facility is located.

(h) The Department may charge the owner of a solar generation facility a reasonable fee to cover costs associated with designating the solar generation facility as pollinator-friendly.

(i) The Department shall adopt regulations to carry out this section.

#### Section 3-304

In cooperation with the Public Service Commission, the Maryland Energy Administration, and the Secretary of the Environment, the Secretary shall implement a long-range environmental evaluation of power plant building sites projected for at least 10 years. To facilitate providing adequate electric power on reasonable schedules at reasonable costs with the least possible depreciation of the quality of Maryland's environment, the following responsibilities and procedures are set forth:

(1) The Public Service Commission shall assemble and evaluate annually the long-range plans of Maryland's public electric companies regarding generating needs and means for meeting those needs. Beginning January 1, 1972, the Chairman of the Public Service Commission shall forward annually to the Secretary a ten-year plan of possible and proposed sites, including associated transmission routes, for the construction of new electric power plants within the State and extensions of existing plants.

(2) Upon receipt of a ten-year plan from the Public Service Commission, the Secretary with the advice of the Secretary of the Environment and the Director of the Maryland Energy Administration and in accordance with paragraph (1) of this section and Sec. 7-201 of the Public Utilities Article, shall prepare and submit, within 180 days a preliminary environmental statement on each possible and proposed site, including associated transmission routes. The statement, on the basis of the environmental research program, shall include but not be limited to the following considerations:

  (i) The environmental impact at the proposed site;

  (ii) Any adverse environmental effects which cannot be avoided if the proposed site is accepted;

  (iii) Possible alternatives to the proposed site;

  (iv) Any irreversible and irretrievable commitments of resources which would be involved at the proposed site if it is approved;

  (v) Where appropriate, a discussion of problems and objections raised by other State and federal agencies and local entities;

  (vi) A plan for monitoring environmental effects of the proposed action and provision for remedial actions if the monitoring reveals unanticipated environmental effects of significant adverse consequences; and

  (vii) The ability to adequately provide emergency response plans to residents if a nuclear power plant is considered for location at a site.

  The Secretary shall state to the Public Service Commission which possible and proposed sites, based on preliminary environmental statement, justify an unsuitable classification. Unless the electric company whose proposed site is involved offers the Secretary substantial evidence to the contrary, the site shall be deleted from the plan. The site may be included in a subsequent ten-year plan.

(3) The Secretary with the advice of the Director of the Maryland Energy Administration and the Secretary of the Environment shall initiate a detailed investigation of any site proposed in the ten-year plan which appears desirable or acceptable on the basis of preliminary environmental statements. With respect to any site in the plan on which authorized construction has not commenced by July 1, 1974, at least two years before construction is estimated to begin and if the preponderance of newly offered scientific evidence does not justify a revised classification as unsuitable, the Secretary shall publish a detailed environmental statement on the site. The statement shall consider and include information developed in the program outlined in Sec. 3-303 of this subtitle.

(4) The Secretary, with the advice of the Director of the Maryland Energy Administration, the Secretary of the Environment and the Secretary of Planning, shall publish on a biennial basis, commencing July 1, 1972, a cumulative environmental impact report on all electric power plants operating in the State. The report shall include a section specifying the changes that can occur as additional electric power plants are constructed in accordance with the ten-year plan. It shall include recommendations to the Governor which delineate State environmental policy and objectives. The Secretary of Planning and the Director of the Maryland Energy Administration shall jointly include a section devoted exclusively to the question of growth and the specific growth related factors which necessitate specific additional increments of electric energy by development of a site in the ten-year plan. In preparing this section, they shall consider the projected estimates and recommendations of electric company representatives.

#### Section 3-305

(a) The expertise of the electric utilities in the basic requirements, including environmental considerations, of a site for power generation and generator lead route is a needed element in site selection. Therefore, for the purposes of ensuring adequate power on reasonable schedules while also protecting the quality of the State's environment, site acquisition and generator lead route designation may occur as follows:

  (1) Notwithstanding any other provision of this subtitle, any site either already owned or purchased in the future by electric companies shall be included in the inventory of possible and proposed sites.

  (2) The Secretary, on the advice of the Secretary of Commerce, shall acquire in the name of the State a sufficient number of sites to satisfy the expected requirements as submitted by the Secretary of Planning and the Director of the Maryland Energy Administration, as provided in Sec. 3-304(4) of this subtitle. Site selection shall be based on research findings that show the site is desirable for power plant construction. Following site acquisition, the Secretary and the local governing bodies of the areas through which the potential generator lead routes pass shall designate mutually one or more desirable routes. After designation of a route, each county within which the route is located shall designate the proposed public utility corridor by enactment of an ordinance or by incorporation in its appropriate land use plan. Any investigation to ascertain the suitability of a site for the construction of an electric generating station shall be completed within 2 years of the date the site has been identified. By the end of the 2 year period, the Secretary shall purchase or remove from consideration the site and make public his decision.

  (3) Notwithstanding any other provision of this subtitle, the Secretary may acquire a site for an electric company if the Public Service Commission requests the Secretary to purchase a site under Sec. 7-202 of the Public Utilities Article.

  (4) If the Secretary decides to dispose of any property acquired by condemnation under this subsection, the Board of Public Works may transfer the property to another unit of the Executive Branch of State government in accordance with Sec. 10-304 of the State Government Article.

  (5) If the Secretary decides to dispose of any property acquired by condemnation under this subsection and the property is not transferred in accordance with paragraph (4) of this subsection, the Secretary shall provide the opportunity to purchase the property within 90 days from the date the offer is made:

    (i) To the county where the property is located;

    (ii) If the county rejects the offer, to the original owner of the property; and

    (iii) If the original owner of the property cannot be found or is dead or rejects the offer, to the general public.

  (6) For the purposes of this section, "site" means land which is reasonably necessary for a new site or for the expansion of an existing site owned by a utility. "Site" includes land necessary for such ancillary purposes as disposal of solid wastes produced by an electric generating station operating on the site, transmission or cooling water access, or transportation access.

(b) If the other requirements of this subtitle have been satisfied, the Secretary may acquire any site by agreement or condemnation under the condemnation law and pay for them from the Fund. Prior to such acquisition, the Secretary shall hold one or more informational meetings and one public hearing in the legislative district where the proposed site or sites are located. The Secretary holds the property in the name of the State and may not permit its temporary use for any purpose which might logically be expected to impede its prompt availability for power plant siting as and when needed. Temporary uses which the Secretary may authorize may include but are not limited to public recreational facilities, including open space areas, parks, forests and beaches, fish and wildlife refuges and other public recreational uses as authorized within this article. The Secretary may not hold, at any one time, more than eight sites, suitable for either single or multiple power plant siting.

(c) Fifty percent of all revenues the Secretary obtains through temporary use of sites shall be deposited in the Fund. The remaining 50 percent shall be paid to the county in which the site is situated. If the site lies within two or more counties, the 50 percent shall be distributed proportionally according to the area within each county. The Secretary shall pay from the Fund to the county an amount equal to the real estate taxes assessed on the land at the time of acquisition less any funds received by the county for any temporary use of the site.

(d) An electric company as defined in Sec. 1-101 of the Public Utilities Article may request from the Secretary an appropriate site in his possession under the provisions of this subtitle, and the Secretary shall make the site available. The electric utility may purchase the site. The purchase price shall be the fair market value of the site as determined by a committee of three independent qualified real estate appraisers, one of whom is chosen by the Secretary, one by the electric company making the application, and the third by the two appraisers first selected. Each party compensates its own appraiser and bears one-half the cost of the third appraiser. Receipts from the purchase transactions shall be deposited in the Fund.

(e)

  (1) When property held in the name of the State under this section is not used for the purposes for which it is being held, the Secretary shall provide for the temporary use of the property. In providing for the temporary use of the property, the Secretary shall consider the recommendations of the local governing body of the subdivision in which the property is located.

  (2)

    (i) The local governing body of the subdivision in which the property is located shall appoint an advisory committee to recommend temporary uses of the property acquired under this section. The advisory committee shall consider, with the assistance of the Conservation Education Council of Maryland, the possibility of using the property for environmental education.

    (ii) Upon receipt and evaluation of the advisory committee's recommendations, the local governing body in which the property is located shall submit its recommendations to the Secretary.

  (3)

    (i) The Secretary shall provide the local subdivision in which the property is located up to $25,000 for development of an effective program for approved temporary uses of the property, as authorized in the annual budget.

    (ii) The Secretary shall provide the local subdivision in which the property is located up to $10,000 annually for the operation of approved temporary uses, as authorized in the annual budget.

(f)

  (1) For the purposes of performing the duties required under this subtitle, or, upon written request from an electric company setting out the nature, extent, and duration of the work to be done, the Department, its agents, employees, and contractors may enter upon private property to collect data and otherwise conduct environmental and engineering studies related to potential sites for electric generating facilities, potential corridors for rail and pipeline access to electric generating facilities, and potential overhead transmission lines in excess of 69,000 volts. The studies may include the installation of meteorological testing equipment, biological sampling, soil borings, and installation of test wells.

  (2) Entry onto private property as authorized by paragraph (1) of this subsection shall not be undertaken without prior consent of the property owner. If, after real and bona fide effort, the consent of the property owner cannot be secured, the Department may apply to the circuit court where the property or any part of it is located for an order directing that entry be permitted. "Bona fide effort" shall include either 30 days' advance notice in writing by certified mail, return receipt requested, to the last known address of the property owner or posting notice on the property not less than 30 days in advance, or such other requirements as the court may deem appropriate.

  (3) The Department shall reimburse the landowner or lessee who is farming the property for those agricultural products which are either destroyed or damaged by its agents, employees, or contractors. The Department shall be responsible for any other damages that may be incurred as a result of entry on private property as authorized by this section.

#### Section 3-306

(a)

  (1) Notwithstanding anything to the contrary in this article or the Public Utilities Article, on application to the Public Service Commission for a certificate of public convenience and necessity associated with power plant construction in accordance with Sec. 7-207 of the Public Utilities Article, the Commission shall notify immediately the Department and the Department of the Environment of the application.

  (2) The Commission shall supply the Department of Natural Resources and the Department of the Environment with any pertinent information available regarding the application.

  (3) The Department of the Environment shall treat the application for a certificate of public convenience and necessity as an application for:

    (i) Appropriation or use of waters of the State under Title 5 of the Environment Article; and

    (ii) A license for dredging and filling under Title 16 of the Environment Article.

(b)

  (1) Subject to paragraph (3) of this subsection, within 6 months after the Commission deems an application complete:

    (i) The Secretary shall require the Department of Natural Resources to complete an independent environmental and socioeconomic project assessment report and any additional required study and investigation concerning the application; and

    (ii) The Secretary of the Environment shall require the Department of the Environment to study and investigate the necessity for dredging and filling at the proposed plant site and water appropriation or use.

  (2)

    (i) In accordance with the Commission's procedural schedule for an application and subject to paragraph (3) of this subsection, within 6 months after the Commission deems an application complete, the Secretary and the Secretary of the Environment jointly shall submit to the Commission:

      (1) The results of the studies, investigations, and reports required under paragraph (1) of this subsection;

      (2) A recommendation that the certificate should be granted or denied and the factual basis for the recommendation; and

      (3) Subject to subparagraph (ii) of this paragraph, recommended licensing conditions for the construction, operation, or decommissioning of the proposed facility.

    (ii)

      (1) A licensing condition submitted under subparagraph (i) of this paragraph that relates to wetlands, stormwater management, or erosion and sediment control must be consistent with the wetland, stormwater management, and erosion and sediment control requirements in the Environment Article.

      (2) A licensing condition submitted under subparagraph (i) of this paragraph that relates to wetlands, stormwater management, or erosion and sediment control may not exceed the authority of the Department of the Environment.

  (3) The Commission may waive a deadline under this section:

    (i) For good cause; or

    (ii) On agreement of the parties to the proceeding.

(c) The submissions made to the Commission under subsection (b)(2) of this section shall be:

  (1) Open for public inspection; and

  (2) Presented jointly by the Secretary and the Secretary of the Environment, or their designees, at the hearing held by the Commission in accordance with Title 7, Subtitle 2 of the Public Utilities Article.

#### Section 3-306.1

In view of the safeguards provided by this subtitle through State units, and to assure the controlling effect of their determinations, any property certified as a suitable site by the Secretary of Natural Resources and placed in inventory as provided in this subtitle or any sites acquired and placed in inventory as provided in this subtitle shall be used and operated for electric generating and associated on-site transmission purposes without regard to any local zoning rule, regulation, law, or ordinance, and this use is not required to be submitted to or approved by any county or municipal zoning board, authority, or unit.

#### Section 3-307

Judicial review shall in all instances include the right to appeal to the circuit courts as set forth in Title 3, Subtitle 2 of the Public Utilities Article.

### Subtitle 3A. Acid Deposition

#### Section 3-3A-01

(a) In this subtitle the following words have the meanings indicated.

(b) "Acid deposition" means the process whereby acid-forming chemical compounds are transported from the atmosphere to the surface of the earth.

(c) "Acid deposition precursor" means an air contaminant that may be transformed to an acid gas or particle in the atmosphere.

(d) "Commission" means the Maryland Public Service Commission.

(e) "Departments" means the Department of Natural Resources and the Department of the Environment.

(f) "Participating agencies" means the Commission, the People's Counsel of the Public Service Commission, and the Departments of Commerce, Agriculture, and Transportation, and the Department of Planning.

#### Section 3-3A-02

(a) The Director of the Power Plant Siting and Research Program shall be responsible for the direction and coordination of the activities required under this subtitle.

(b)

  (1) To the extent funds are provided in the State budget, the departments, in cooperation with the participating agencies, shall conduct a comprehensive evaluation of:

    (i) The sources of acid deposition received in the State;

    (ii) The impact of acid deposition on the State;

    (iii) Any available effective methods to alleviate any significant adverse impact on the State; and

    (iv) The costs of the available effective methods to alleviate any significant adverse impact on the State.

  (2) The departments shall utilize the results of studies conducted by other organizations where applicable and shall conduct independent research and monitoring studies where necessary.

(c)

  (1) The departments, in cooperation with the participating agencies, shall consult with and involve interested parties, including affected private sector industries and resource conservationists, in the comprehensive evaluation in subsection (b)(1) of this section.

  (2) The interested parties shall participate in the planning of the research program and monitoring activities, the design of specific projects, the review of the results of studies, and the production of final reports.

#### Section 3-3A-03

(a) The departments shall design and operate a comprehensive research and monitoring program through:

  (1) New studies on issues affecting the State;

  (2) Application of the results from ongoing and completed projects sponsored by the State; and

  (3) The results of research conducted by the National Acid Precipitation Assessment Program and other programs funded by the federal and state governments or private institutions.

(b) The comprehensive research and monitoring program shall:

  (1) Determine the relative contributions, if any, to acid deposition in the State of various sources of acid deposition precursor emissions;

  (2) Determine if acid deposition varies significantly from 1 geographic region of the State to another and identify the relative contribution of various sources of precursor emissions responsible for this variability;

  (3) Expand and improve impact databases through the compilation of existing data on precipitation and surface water chemistry, improved quality control, and standardization of sampling and analytical techniques;

  (4) Identify regions, localized areas, or specific ecosystems of the State especially sensitive to acid deposition;

  (5) Assess the consequence of the environmental impacts of acid deposition on resources such as surface water, groundwater, crops, forests, fisheries, and structures;

  (6) Identify and evaluate the technological effectiveness, if any, and economic cost of technologies and noncontrol mitigative techniques that are feasible for use in the State to control acid deposition precursor emissions or to mitigate the impact of acid deposition;

  (7) Identify and monitor activities of the federal government and private industry towards development of innovative technologies for cleaner coal combustion that are feasible for possible use in the State to reduce acid deposition precursor emissions from facilities in the State;

  (8) Document and apply all current federal, State, and other monitoring and research results related to acid deposition relevant to the State to insure that State activities are coordinated to prevent unnecessary duplication and waste of financial and technical resources;

  (9) Evaluate issues concerning implementation that may arise due to federal acid deposition control legislation, including:

    (i) The examination of the regulatory authority of the Commission and the Department of the Environment to implement a federally enacted emissions control program; and

    (ii) The identification and analysis of issues such as nitrogen oxide controls, cost sharing, emissions trading, and costs of controls that may be applied to the industrial, mobile, and residential sectors versus the utility sector;

  (10) Initiate research and monitoring projects that are found to be necessary to augment information related to the sources and impacts of acid deposition affecting the State; and

  (11) Examine the possible contribution to the control and reduction of acid deposition through energy management, enhanced conservation activities by electric utilities, and development of alternative sources of energy.

### Subtitle 4. Center for Environmental Science

#### Section 3-401

The University of Maryland Center for Environmental Science, a branch of the University System of Maryland, is designated to encompass the functions of the Natural Resources Institute and the additions set forth in this subtitle.

#### Section 3-402

The University of Maryland Center for Environmental Science shall be under the supervision, direction, and control of the Board of Regents of the University System of Maryland. Academic rank and faculty status may be assigned to the director and qualified personnel staff members.

#### Section 3-403

(a) The University of Maryland Center for Environmental Science shall conduct a comprehensive program to develop and apply predictive ecology for Maryland to the improvement and preservation of the physical environment, through a program of research, public service, and education. The University of Maryland Center for Environmental Science shall perform the following functions:

  (1) Maintain liaison with the State to identify the important regional and environmental problems, including the relationship to the use of the waters of the State and in particular those environmental problems affecting the waters of the Chesapeake Bay;

  (2) Inventory appropriate:

    (i) Professional individuals;

    (ii) Organizations which are private, public, and commercial;

    (iii) Facilities; and

    (iv) Programs, including:

      (1) Educational;

      (2) Research and development; and

      (3) Public service;

  (3) Arrange or prepare critical reviews, analyses, summaries of present levels of understanding and technical status reports on topical environmental problems, in formats ranging in depth from informal consultation to formal reports;

  (4) Assist the development and coordination of single or multidisciplinary programs and projects on the environment at public and private educational and research institutes;

  (5) Develop and promote environmental educational programs in the State;

  (6) Conduct environmental research programs;

  (7) Implement a program of environmental education to include participation in undergraduate and graduate collegiate programs, assist public and private educational systems, and participate in the education of the public and environmental fields;

  (8) Implement joint graduate degree programs and post baccalaureate certificate programs, if authorized by the Maryland Higher Education Commission and the Board of Regents of the University System of Maryland in accordance with the Education Article;

  (9) Perform other acts of public service relating to the environment in the best interest of the citizens of the State; and

  (10) Implement the application of the institutional and physical resources of the University to the needs of State agencies in environmental matters.

(b) The University of Maryland Center for Environmental Science staff may collect any animal, plant, and other sample and use any collection device, technique, and seizure necessary for and pertinent to its research, public service and education program.

### Subtitle 5. Irreplaceable Natural Areas Program

#### Section 3-501

(a) In this subtitle the following words have the meanings indicated.

(b) "Biodiversity" means the full range of living organisms native to a region.

(c) "Irreplaceable natural area" means an area with habitat necessary to support:

  (1) A unique natural community; or

  (2) A plant or animal species listed as threatened or endangered under Title 10, Subtitle 2A of this article.

(d) "Program" means the Irreplaceable Natural Areas Program.

(e) "Unique natural community" means an area that:

  (1) Has an assemblage of native plants or animals that is rare or declining in the State; or

  (2) Supports an unusually pristine example of a native ecosystem type.

#### Section 3-502

(a) There is an Irreplaceable Natural Areas Program in the Department.

(b) The purpose of the Program is to preserve Maryland's native biodiversity on State-owned land managed by the Department for current and future residents of the State.

#### Section 3-503

(a) On or before July 1, 2023, the Department shall adopt regulations to carry out this subtitle, including regulations:

  (1) Designating irreplaceable natural areas on State-owned land managed by the Department; and

  (2) Establishing management objectives for irreplaceable natural areas, including:

    (i) A map depicting boundaries for each area;

    (ii) A description of the unique features and threats for each area; and

    (iii) Compatible and incompatible activities for each area.

(b) On or before July 1, 2033, and at least every 10 years thereafter, the Secretary shall review and, if warranted, update the regulations required under this section.

### Subtitle 6. Maryland Deepwater Port Siting Act

#### Section 3-601

The General Assembly finds and declares that the increasing energy requirements of the State and nation continue to exceed domestic sources of energy supply and that demand must be met, at least in the near future, by imported oil. Construction of deepwater ports in waters adjacent to the continental shelf of the United States could accommodate oil tenders too large for present ports and port facilities. As compared to smaller tanker systems, transfer of oil to the United States by these large tankers may have certain advantages, including assured access to the world's total petroleum shipping fleet, a reduction in economic costs and safety hazards, increased transportation efficiency, and reduced environmental hazards to harbors and shorelines. The legislature, in recognition of these objectives and those of protecting the coastal environment, regulating growth and determining land use, and in order to carry out its delegated responsibilities under the federal Deepwater Port Act of 1974, hereby defines the policy and procedure to advance and protect the interests of the people of the State of Maryland in the location, construction and operation of deepwater ports in the waters beyond the State.

#### Section 3-602

(a) In this subtitle the following words have the meanings indicated.

(b) "Adjacent coastal state" means any coastal state which:

  (1) Would be connected directly by pipeline to a deepwater port, as proposed in an application;

  (2) Would be located within 15 miles of any proposed deepwater port; or

  (3) Is so designated by the federal Secretary in accordance with Sec. 9(a)(2) of the federal act.

(c) "Application" means any application submitted under the federal act for:

  (1) A license for the ownership, construction, and operation of a deepwater port;

  (2) Transfer of any license; or

  (3) Any substantial change in any of the conditions and provisions of any license.

(d) "Coastal environment" means the State's navigable waters and the adjacent shorelines. The term includes transitional and intertidal areas, bays, lagoons, salt marshes, estuaries, and beaches and their fish, wildlife and other living resources, and the recreational and scenic values of the lands, waters and resources.

(e) "Deepwater port" means any fixed or floating manmade structure other than a vessel, or any group of structures, located beyond territorial waters of a state and off the coast of the United States and which are used or intended for use as a port or terminal for the loading or unloading and further handling of hydrocarbons and their products for transportation to any state, except as otherwise provided in Sec. 23 of the federal act. A deepwater port is a "new source" for purposes of the federal Clean Air Act and the Federal Water Pollution Control Act.

(f) "Federal act" means the federal Deepwater Port Act of 1974.

(g) "Federal Secretary" means the Secretary of the United States Department of Transportation.

(h) "Hydrocarbon" means petroleum, crude oil, any substance refined from petroleum or crude oil and natural gas.

(i) "Marine environment" means the coastal environment, State waters of the contiguous zone, and State waters of the high seas; the fish, wildlife, and other living resources of the waters; and the recreational and scenic values of the waters and resources.

#### Section 3-603

The Governor, a State agency or official may not represent the State, individually or by joint agreements and compacts, as an applicant under the federal act without express authorization under State law.

#### Section 3-604

In order to carry out the policy of this subtitle, the Secretary of Natural Resources shall:

(1) On his or the Governor's determination that the State's interest should be considered in an application proceeding under the federal act, request the federal Secretary to designate the State of Maryland as an "adjacent coastal state". The request shall be communicated only with the approval of the Governor and shall include evidence to support the conclusion that there is a risk of damage to the coastal environment of the State equal to or greater than the risk posed to a state directly connected by pipeline to the proposed deepwater port. A request shall be communicated in accordance with Sec. 9(a)(2) of the federal act;

(2) Determine and collect reimbursement for those costs to the State associated with the processing of an application for which the applicant is responsible to the State under the federal act;

(3) Present the views of the State to the federal Secretary, other than those required under item (1) of this section, regarding the location, construction and operation of a deepwater port;

(4) Request all documents, reports or other information from the federal Secretary under the federal act which are necessary to assist the State in the processing of an application;

(5) Set reasonable fees permitted under the federal act for the use of a deepwater port facility and State land-based facilities directly related to a deepwater port facility; and

(6) Obtain the suggestions and comments of those departments having responsibility associated with the duties enumerated in this section.

#### Section 3-605

(a) If the State has qualified as an adjacent coastal state under the federal act, the Governor preliminarily shall determine the State's decision on the pending application, and submit his recommendation to the legislature, under subsection (d) of this section.

(b) The State's decision shall consist of one of the following:

  (1) Approval of the application;

  (2) Disapproval of the application; or

  (3) Conditional approval of the application, under which approval would be granted if the application were amended to remove certain inconsistencies with State programs relating to environmental protection, land and water use, or coastal zone management.

(c) In the preliminary determination of the State's decision, the Governor shall consider factors, including:

  (1) Environmental review criteria, including:

    (i) The effect on the marine environment;

    (ii) The effect on oceanographic currents and wave patterns;

    (iii) The effect on alternate uses of the oceans and navigable waters, including scientific study, fishing, and exploration of other living and nonliving resources;

    (iv) The effect of land-based developments related to deepwater port development;

    (v) The effect on human health and welfare;

    (vi) The effect on the State's coastal zone management program under Sec. 301(a) and (b) of the federal Coastal Zone Management Act of 1972; and

    (vii) Other considerations the federal Secretary may deem necessary and appropriate;

  (2) Economic, social, and cultural impacts;

  (3) Impacts on existing and future State and local public facilities and services;

  (4) Evidence presented at public hearings held within the State either required under the federal act or conducted by the State;

  (5) The findings of any statement prepared under Sec. 14-506 of the Environment Article, and the status of any permit action under Title 14, Subtitle 5 of the Environment Article;

  (6) Views of all interested county or local governments; and

  (7) Views of the Secretaries of Agriculture, Natural Resources, Transportation, the Environment, and Commerce and the Secretary of Planning.

(d)

  (1) Within 30 days after the last public hearing mandated by Sec. 9(b)(1) of the federal act, the Governor shall submit a recommendation for the State's decision to the legislature in the following manner:

    (i) If the legislature is convened in regular or special session, the Governor shall submit a recommendation to the legislature for appropriate legislative action.

    (ii) If the legislature is not convened in regular or special session, the Governor shall submit a recommendation to the Administrative, Executive, and Legislative Review Committee. Within five days of receipt of the Governor's recommendation and after a public hearing, the Committee shall recommend to the President of the Senate and the Speaker of the House whether the Governor's recommendation should represent the State's decision or whether the legislature should convene in special session to review the Governor's recommendation for appropriate legislative action. However, failure of the Committee to recommend review by the full legislature may not preclude convening of the legislature.

  (2)

    (i) When the full legislature reviews the Governor's recommendation under paragraph (1)(i) or (ii) of this subsection, the legislature, after a public hearing, may take appropriate legislative action to approve, disapprove, or conditionally approve the pending application.

    (ii) In order to modify the Governor's recommendation in any way, the legislature shall take action by joint resolution requiring at least three-fifths vote of each house. The joint resolution shall constitute the State's decision on the pending application.

    (iii) If the legislature fails to modify the Governor's recommendation by the 44th day after the last public hearing mandated by the federal act, the Governor's recommendation shall constitute the State's decision on the pending application.

  (3) The Governor shall send the State's decision to the federal Secretary no later than 45 days after the last public hearing mandated by the federal act.

### Subtitle 9. Northeast Maryland Waste Disposal Authority

#### Section 3-901

This subtitle shall be known as the "Northeast Maryland Waste Disposal Authority Act".

#### Section 3-902

For the benefit of the people of the State of Maryland, the increase of their commerce, welfare and prosperity, and the improvement of their health and living conditions, it is essential that provision be made for the efficient collection and disposal of waste on a regional basis from both public and private sources in compliance with State and federal laws, regulations, and policies and for the generation of energy and the recovery of useable resources from such waste to the extent practicable. It is the purpose of this subtitle to assist certain participating political subdivisions of this State, other public entities and the private sector of the economy to provide adequate waste disposal facilities (including those which provide for energy generation and resource recovery) and facilities for the generation of steam, electricity, or other forms of energy from fuels which are derived from or are otherwise related to waste disposal facilities by providing a regional coordinating agency and a financing vehicle for such facilities. It is the purpose of this subtitle to assist the participating counties to effect waste disposal programs on a regional basis and to that end this subtitle provides for the creation of the Authority. It is the intention and purpose of this subtitle that, without in any way limiting the discretion of the Authority, the Authority and the Maryland Environmental Service cooperate to the maximum extent practicable in effecting a regional waste disposal program in the participating counties.

#### Section 3-903

(a)

  (1) There is hereby created a body politic and corporate to be known as the "Northeast Maryland Waste Disposal Authority" which is constituted a public instrumentality of the State of Maryland. The exercise by the Authority of the powers conferred by this subtitle shall be deemed to be the performance of an essential public function.

  (2) The Authority was organized and commenced its activities on October 21, 1980, when there were filed with the Secretary of State and the Department of Legislative Services certified copies of the resolutions of participation of at least two of the following four counties: Mayor and City Council of Baltimore, Baltimore County, Maryland, Anne Arundel County, Maryland, and Harford County, Maryland.

  (3) Montgomery County, Maryland, also became a participating county in the Authority by filing certified copies of a resolution of participation with the Secretary of State and the Department of Legislative Services, whereupon Montgomery County, Maryland, had all of the rights, privileges, and powers under this subtitle that the other participating counties have or may have, including the power to participate in projects and to enter into contracts with the Authority, including the contracts relating to the Authority's Southwest Resource Recovery Facility located in the City of Baltimore, in order to defray and provide for the Authority's costs of acquiring, constructing, operating, or providing a project, including debt service requirements of the Authority relating to a project.

  (4) Carroll County, Maryland, may also become a participating county in the Authority by the County Commissioners of Carroll County filing certified copies of a resolution of participation with the Secretary of State and the Department of Legislative Services, whereupon Carroll County, Maryland, shall have all of the rights, privileges, and powers under this subtitle that the other participating counties have or may have.

  (5) Howard County, Maryland, may also become a participating county in the Authority by the County Council of Howard County filing certified copies of a resolution of participation with the Secretary of State and the Department of Legislative Services, whereupon Howard County, Maryland, shall have all of the rights, privileges, and powers under this subtitle that the other participating counties have or may have.

  (6) Frederick County, Maryland, may also become a participating county in the Authority by the County Council of Frederick County filing certified copies of a resolution of participation with the Secretary of State and the Department of Legislative Services, whereupon Frederick County, Maryland, shall have all of the rights, privileges, and powers under this subtitle that the other participating counties have or may have.

  (7) Cecil County, Maryland, may also become a participating county in the Authority by the Board of County Commissioners of Cecil County filing certified copies of a resolution of participation with the Secretary of State and the Department of Legislative Services, whereupon Cecil County, Maryland, shall have all of the rights, privileges, and powers under this subtitle that the other participating counties have or may have.

  (8) Wicomico County, Maryland, may also become a participating county in the Authority by the County Council of Wicomico County filing certified copies of a resolution of participation with the Secretary of State and the Department of Legislative Services, whereupon Wicomico County, Maryland, shall have all of the rights, privileges, and powers under this subtitle that the other participating counties have or may have.

  (9) Each resolution of participation contained:

    (i) A declaration by the county of its intention and consent to participate in the activities of the Authority; and

    (ii) Such provisions, if any, as the participating counties approved and required as being necessary or desirable for the Authority to be an organization described in Sec. 501(c)(3) of the Internal Revenue Code.

  (10) Each resolution of participation was presented by the chief executive officer of a county to the body exercising legislative powers of that county and was effective after adoption by such legislative body and approval by such chief executive officer.

(b) The Authority shall consist of one member from each of the participating counties and the director of the Maryland Environmental Service, ex officio. Each member from a participating county shall be appointed by the Governor from a list of at least three persons, which list has been submitted to the Governor by such participating county. Each such list shall be submitted to the Governor after approval by the chief executive officer of the county submitting such list. Members from a participating county shall serve terms of 4 years and shall continue in office until their successors have been appointed and qualified. A member from a participating county shall be eligible for reappointment. Each member of the Authority, before entering upon his or her duties, shall take an oath to administer the duties of the office faithfully and impartially, and such oath shall be filed with the Secretary of State. The members of the Authority may be removed by the Governor for good cause or may be removed at the will of the Governor at any time in the event the Governor has previously received a resolution of that county which nominated such a member for appointment requesting that such member be removed.

(c) The Authority shall appoint, subject to the approval of the Governor, an executive director. The executive director may not be a member of the Authority. The Authority may also appoint, subject to the approval of the Governor, a general counsel, either on a full-time or a part-time basis as the Authority may determine, or it may otherwise provide for the provision of necessary legal services to the Authority. The general counsel shall not be a member of the Authority. Both the executive director and the general counsel shall serve at the pleasure of the Authority, and shall receive such compensation as may be determined by the Authority.

(d) The executive director shall keep a record of the proceedings of the Authority and shall be custodian of all books, documents, and papers filed with the Authority and of the minute book or journal of the Authority and of its official seal. The executive director may cause copies to be made of all minutes and other records and documents of the Authority and may give certificates under the official seal of the Authority to the effect that such copies are true copies, and all persons dealing with the Authority may rely upon such certificates. The records and documents of the Authority shall be considered public records subject to reasonable inspection. The executive director shall, subject to the supervision and direction of the Authority, be the chief administrative officer of the Authority.

(e) The general counsel, if one is appointed, shall be the legal advisor to the Authority. He shall, when directed by the Authority, represent the Authority in judicial or other proceedings.

(f) A majority of the members of the Authority shall constitute a quorum and the affirmative vote of a majority of the members present at a meeting of the Authority having a quorum present shall be necessary for any action taken by the Authority. The director of the Maryland Environmental Service is a voting member of the Authority. No vacancy in the membership of the Authority shall impair the right of a quorum to exercise all the rights and perform all the duties of the Authority as aforesaid. Any action taken by the Authority under the provisions of this subtitle may be authorized by resolution at any regular or special meeting. Each such resolution, other than resolutions promulgating rules and regulations, shall take effect immediately and need not be published or posted. Rules and regulations shall be promulgated under the provisions of the Administrative Procedure Act, except when necessary for the immediate preservation of the public health and safety and except for emergency provisions required to protect projects of the Authority.

(g) Each member of the Authority, the executive director and such employees as may be designated by the Authority, shall, upon entering the performance of their duties, be covered by a surety bond or an insurance policy of the type and in the amount of coverage determined by the State Treasurer under Sec. 5-108 of the State Government Article.

(h) The members of the Authority shall receive no compensation for the performance of their duties hereunder, but each such member shall be paid his necessary expenses incurred while engaged in the performance of such duties.

(i) The participating counties may grant, loan, or otherwise transfer to the Authority, and the Authority may accept, from time to time such money, property or other assets as may be necessary or desirable to enable the Authority to initiate its operations or those of any project or to carry out any of its corporate purposes.

(j) The staff of the Authority shall consist of such employees as the Authority may determine to be necessary to carry out the duties of the Authority. The executive director shall appoint and remove the staff of the Authority in accordance with the provisions and restrictions of a "merit system" to be developed by the Authority.

(k)

  (1) Whenever the Authority shall undertake to provide service to or within any participating county, such county shall have the option (which option must be exercised prior to the effectiveness of such undertaking) of:

    (i) Designating those employees who, at the time of the transfer, were engaged primarily in the rendering of such service, whereupon the Authority shall be responsible for the continuation of such employees with all rights and privileges and equivalent benefits that such employees theretofore enjoyed; or

    (ii) Not certifying to the Authority any employees formerly engaged in providing the "take-over" services, but continuing such employees in the county's employment.

  (2) In the event that any employee of a county so certified to the Authority does not desire to be transferred to the Authority, such employee shall be given first priority in the filling of any vacancy for which he or she is qualified as determined by the head of such county's merit system. In the event there are no vacancies, such employee shall be placed on the reemployment list and shall be given first preference in the filling of any position for which such person is qualified.

(l) If the Authority determines that the provision of pension benefits for its employees cannot be effected practicably by means of the State Retirement System, the Authority shall be empowered to provide a pension benefit for employees upon their retirement on account of age, service, or disability and shall have the right to contract with an insurance company or other appropriate body to provide such pension benefits or by resolution to establish a retirement system to be operated on an actuarial basis under the applicable laws of the State of Maryland. Any employee of the State of Maryland or any subdivision who is employed by the Authority shall have the right to transfer to the pension system of the Authority and receive credit in the Authority's system for the service in the system from which such employee transferred contingent upon a transfer of the pension reserve applicable to such employee (employee and employer share) as certified by the actuary of the transferee system. With respect to employees initially transferred from any subdivision to the Authority, such employee shall elect within 6 months of said date of transfer whether to transfer his pension membership.

(m) The Authority shall by regulation establish the boundary of the Northeast Maryland waste disposal region. The boundary of the waste disposal region may include all or any part of the area within the boundaries of the participating counties. The director of the Maryland Environmental Service shall designate the Northeast Maryland waste disposal region as a solid waste disposal service region as provided in Sec. 3-106 of this title.

(n)

  (1) Upon designation of the Northeast Maryland waste disposal region as a service region, the Authority, and not the Maryland Environmental Service, shall prepare the five-year plan providing for solid waste disposal projects required in Sec. 3-106 of this title, and provide for its adoption, approval and implementation in accordance with the provisions of that section. The acquisition or purchase of any waste disposal facility as a project which is in existence as of July 1, 1980, if it is to be acquired or purchased, shall be included in the five-year plan of the Authority as approved by each county under the provisions of Sec. 3-106 of this title, as amended from time to time.

  (2) The five-year plan may include provisions for the establishment and implementation of a regional system of service fees to be charged at public waste disposal facilities within the participating jurisdictions. The Authority, by agreement with a subdivision or person outside the boundaries of the service region, may establish various service fees for the disposal of waste generated within the service region consistent with the 5-year plan. The Secretary of the Environment shall supervise any pricing structure proposed for adoption in the five-year plan or subsequent amendments thereto, for reasonableness and consistency with county solid waste plans pursuant to Title 9 of the Environment Article.

(o) Upon adoption by the Authority of a five-year plan providing for solid waste disposal projects and approval of such plan by the affected county or counties or the General Assembly, as the case may be, service districts shall be established within the Northeast Maryland waste disposal region in the manner and following the schedule set forth in the five-year plan providing for solid waste disposal projects. Within each service district in the Northeast Maryland waste disposal region, the Authority, and not the Maryland Environmental Service, is responsible for the disposal of solid wastes (including any wastewater treatment residue) as set forth in the five-year plan providing for solid waste disposal projects. Within the service district, no subdivision or person may dispose of solid wastes except through projects of the Authority or of a subdivision or person designated by the five-year plan or under reasonable conditions the Authority stipulates; provided however, that it is not intended by this section that the Authority, in the absence of an agreement to do so, be required to assume responsibility over any wastewater treatment activity or project or over any existing solid waste activity or project of any person or subdivision. Nothing contained in this subtitle shall affect the power of the Secretary of the Environment, as set forth in Sec. 3-109 of this title, to direct the Maryland Environmental Service to undertake any of the actions authorized therein.

(p) Notwithstanding any other provision of this subtitle, all general funds appropriated to the Maryland Environmental Service to prepare the five-year plan providing for solid waste disposal projects in the participating counties as provided in Sec. 3-106 of this title or to provide for its adoption, approval and implementation shall be transferred to the Authority for application by the Authority to such purposes.

#### Section 3-904

(a) As used in this subtitle, the words and terms listed in this section have the meaning given, unless the context clearly indicates another or different meaning.

(b) "Bonds" means all bonds, bond anticipation notes, revenue anticipation notes, grant anticipation notes, or other evidences of indebtedness of the Authority, whether general or limited obligations of the Authority.

(c) "Cost" shall include the purchase price of any project or the cost of acquiring all or any portion of the right, title, or interest of a project and the amount to be paid to discharge all obligations necessary or desirable to vest title to the project or any part thereof in the Authority or other owner; the cost of any reconstruction, extension, enlargement, alteration, repair or improvement; the cost of all lands, properties, rights, easements, franchises, and permits; the cost of all labor, machinery, and equipment; financing charges; interest prior to and during construction and if, deemed desirable by the Authority, for a limited period after the completion of construction; reserves for principal and interest and for extensions, enlargements, additions and improvements; the cost of revenue estimates, engineering and legal services, plans, designs, specifications, surveys, investigations, demonstrations, studies, estimates of cost, other expenses necessary or incident to determining the feasibility or practicability of any such acquisition, improvement, repair or construction; administrative expenses, and other expenses as necessary or incident to the financings herein authorized, and to the acquisition, operation, maintenance, improvement, construction of a project and the placing of the same in operation by the Authority, including reasonable provision for working capital. Any obligation or expense incurred prior to the issuance of bonds under the provisions of this subtitle in connection with the foregoing items of cost may be regarded as a part of such cost.

(d) The word "county" includes the Mayor and City Council of Baltimore unless otherwise indicated.

(e) "Person" means any natural person, corporation, firm, partnership, cooperative, or other entity.

(f)

  (1) "Project" means the facilities and properties used or useful or having present capacity for future use in connection with:

    (i) The transporting, transferring, compacting, burying, incinerating, reduction, composting, collection, storage, treatment, utilization, processing, or final disposal of waste;

    (ii) The conversion of waste to fuel, steam, electricity, energy, or other resources or the generation of steam, electricity, or other forms of energy from fuel which is derived from, or is otherwise related to, waste;

    (iii) The reconstruction, converting or otherwise recycling of waste into material which is not waste or which is useful or is marketable; or

    (iv) Any combination of the foregoing (whether or not such facilities are located on a single site). The term "project" also includes but shall not be limited to:

      (1) Waste disposal facilities, pollution control facilities, and facilities for generating and furnishing electric energy or gas or other forms of energy which can be financed by bonds the interest on which is exempt from income tax under the Internal Revenue Code, whether such interest would have been tax exempt at the time of the enactment of this subtitle or of any amendment thereto; and

      (2) Any facilities and properties within the definition of "project" set forth in this section, whether or not such facilities or properties can be financed by bonds the interest on which is tax exempt under the Internal Revenue Code, it being the purpose and intent of this subtitle that the term "project" be liberally construed so as to effectuate the purposes of this subtitle.

  (2) The term "project" includes (without limitation) land, buildings, structures, machinery, equipment, rail or motor vehicles, barges, boats, and all properties and rights therein and appurtenances thereof, rights-of-way, franchises, easements and other interests in land, all land and facilities which are functionally related and subordinate to the project and all patents, licenses and other rights necessary or useful in the construction or operation of a project.

(g) "Resolution of participation" means the resolution filed by a county with the Secretary of State and the Department of Legislative Services in order to evidence the consent of the county to participate in the activities of the Authority in accordance with the provisions of this subtitle.

(h) "Revenues" means, but is not necessarily limited to, all money received by the Authority from or in connection with any project, including (without limitation) grants, rentals, rates, fees, charges for the use of the services furnished or available and all other income inuring to the Authority; provided that the Authority, from time to time, may further define or limit the term "revenues" as applied to a particular project, financing, or other matter.

(i) "Subdivision" means any county, municipal corporation, sanitary district, State or local agency, or other public body or agency created or established by or pursuant to State or local law, ordinance, or resolution.

(j) "Wastes" means all waste materials, whether solid, liquid or gas, including but not limited to garbage, refuse, and other discarded materials, waste materials resulting from industrial, commercial and agricultural operations and from community activities, rubbish, ashes, incinerator residue, wastewater treatment residue, street cleanings, dead animals, demolition and construction debris, discarded household appliances, automobile bodies, offal and paunch manure.

#### Section 3-905

(a) Except as provided in Sec. 3-907.1 of this subtitle, the Authority is granted and has and may exercise all powers necessary for carrying out the purposes of this subtitle, including but not limited to, the following rights and powers:

  (1) To have perpetual existence as a corporation;

  (2) To adopt bylaws, rules, regulations, policies, and procedures for the regulation of its affairs and the conduct of its business;

  (3) To adopt an official seal and alter the same at pleasure;

  (4) To maintain an office or offices at such place or places as it may designate;

  (5) To appoint officers, agents and employees, and to prescribe their duties and to fix their compensation as set forth in this subtitle;

  (6) To sue and be sued in its own name;

  (7) To acquire, construct, reconstruct, rehabilitate, improve, maintain, equip, lease (as lessor or as lessee), repair, and operate projects within or without the State of Maryland and to establish reasonable rules and regulations relating to any project;

  (8) To acquire, purchase, hold, lease as lessee, and use any franchise, patent or license and any property (real, personal or mixed or tangible or intangible), or any interest therein, necessary or convenient for carrying out the purposes of the Authority;

  (9) To sell, lease as lessor, transfer, and dispose of any property or interest therein at any time acquired by it;

  (10) To acquire, either directly or by or through any person or political subdivision, by purchase or by gift or devise such lands, structures, property (real or personal) rights, rights-of-way, franchises, easements and other interests in lands, including lands lying under water and riparian rights which are located within or without the State as it may deem necessary or convenient for the construction or operation of a project, upon such terms and at such prices as may be considered by it to be reasonable and can be agreed upon by it and the owner thereof, and to take title thereto in the name of the Authority;

  (11) To borrow money and to issue bonds for the purpose of paying all or any part of the cost of any one or more projects or for any other corporate purpose of the Authority; to secure the payment of such borrowing or any part thereof by pledge of or mortgage or deed of trust on all or any part of its properties or revenues; to combine projects for financing or operating purposes; to make agreements with or for the benefit of the purchasers or holders of bonds or with others in connection with the issuance of any such bonds, whether issued or to be issued, as the Authority may deem advisable; and in general to provide for the security of such bonds and the rights of the holders thereof;

  (12) To take and hold title to any project which may be transferred to the Authority, and to assume jurisdiction over and provide for the maintenance and operation of said project, all on such terms as may be mutually agreed upon between the Authority and the transferor. The Authority may contract with any subdivision to assume the payment of the principal of and interest on obligations or indebtedness of such subdivision incurred in connection with any project and may undertake to operate any project in such a manner as to provide for the payment of all outstanding obligations or indebtedness applicable to such project and the interest thereon and to transfer to the appropriate subdivision an amount equal to the debt service payments prior to the applicable payment date;

  (13) To fix and revise from time to time and to collect rates, rentals, fees, and charges for the use of or for services and facilities provided or made available by the Authority;

  (14) To make and enter into contracts with the federal or any state government (or any agency, instrumentality or subdivision thereof) or with any subdivision or person within or without the State of Maryland providing for or relating to the acquisition, construction, management, operation, and maintenance of any project or the furnishing of services by or to any project or in connection with the services of any project owned, operated, or controlled by the other contracting party; such contracts may make provision for:

    (i) The payment by the other contracting party to the Authority of a fixed amount for the collection, processing, or disposal of a stated amount of waste (whether or not the stated amount of waste is collected, processed or disposed of), or of all or any portion of the operating expenses of one or more projects;

    (ii) The utilization by the other contracting party of one or more projects for the processing or disposal of all or any portion of waste over which such party has control;

    (iii) The collection by the other contracting party or its agents or by agents of the Authority of fees, rates or charges for the services and facilities rendered to a subdivision or the inhabitants thereof, and for the enforcement of delinquent charges for such services and facilities; or

    (iv) The abandonment or restriction or prohibition of the construction or operation of competing facilities. The provisions of any such contract with a subdivision shall be deemed to be for the benefit of bondholders as designated by the Authority and may be made irrevocable so long as any bonds of the Authority secured by such contract shall be outstanding;

  (15) To make and enter into all contracts or agreements which the Authority determines are necessary or incidental to the performance of its duties and to the execution of the purposes of and the powers granted by this subtitle, including (without limitation) contracts relating to:

    (i) The use or management by the other contracting party of any project or the services therefrom or the facilities thereof;

    (ii) The use by the Authority of the services or facilities of any project owned, leased, operated or controlled by the other contracting party;

    (iii) The sale of any fuel, steam, electricity, energy, or other material or resource derived from the operation of any project;

    (iv) The acceptance, processing and disposal of wastes by one or more projects; or

    (v) The employment or retention of consulting and other engineers, superintendents, financial advisors, attorneys, accountants, and such other employees, advisors or agents as in the judgment of the Authority may be deemed necessary or desirable;

  (16) To enter with the permission of the owner upon lands, waters, or premises for the purpose of making surveys, soundings, borings, and examinations to accomplish any purpose authorized by this subtitle, the Authority being liable for any actual damage done;

  (17) To make application for, receive and accept from the federal or any state government (or any agency, instrumentality, or subdivision thereof) or from any person grants relating to the Authority or any project, including (without limitation) grants for or in aid of the planning, financing, construction, acquisition, maintenance, or operation of any project; to receive and accept aid or contributions from any source, whether in the form of money or property, labor, or other things of value; and to participate in any price support program, loan program or other program of the federal or State government relating to waste disposal, resource recovery or energy generation;

  (18) To make rules and regulations pertaining to the Authority and projects, which rules and regulations may (without limitation) exclude or require preconditioning of any waste that might otherwise be harmful to the project or its efficient operation or endanger the health or safety of workers or others;

  (19) To enter into agreements with the Maryland Environmental Service providing for the assumption by the Maryland Environmental Service of such activities of the Authority as the Authority may deem necessary or desirable to effectuate its purposes, including agreements relating to the exchange of information between the Authority and the Maryland Environmental Service, the sharing of planning resources, the provision by the Maryland Environmental Service of personnel, consulting services and technical assistance to the Authority, and the acquisition, construction, supervision, operation or maintenance of one or more projects by the Maryland Environmental Service; and

  (20) To do all things necessary to carry out its purposes and for the exercise of the powers granted in this subtitle.

(b) Anything in this subtitle to the contrary notwithstanding, the Authority does not have any power to acquire, construct, operate, finance, or otherwise provide any project located outside the boundaries of the participating counties and within the State of Maryland unless:

  (1) The project is included in a service region plan adopted and approved pursuant to Sec. 3-106 of this title; and

  (2) The project is consistent with any plan which has been adopted by the subdivision in which the project is to be located and which has been approved by the Department of the Environment pursuant to Title 9 of the Environment Article.

#### Section 3-906

All expenses incurred in carrying out the provisions of this subtitle shall be payable solely from funds provided under the authority of this subtitle and no liability or obligation shall be incurred by the Authority hereunder beyond the extent to which money shall have been provided under the provisions of this subtitle.

#### Section 3-907

(a) Except as provided in Sec. 3-907.1 of this subtitle, the Authority is hereby authorized and empowered, by resolution, to issue bonds for the purpose of financing the cost of one or more projects or for any other corporate purpose. Except as may otherwise be expressly provided by the Authority, every issue of its bonds shall be general obligations of the Authority payable from any revenues or money of the Authority available therefor and not otherwise pledged, subject only to any agreements with holders of particular bonds pledging any particular revenues or money and to any agreements with any persons or subdivisions. The Authority may issue its bonds without obtaining the consent of any board, agency, department or unit of the State, and without any other proceedings or the happening of any conditions or things other than those specifically required hereunder. The Authority and the Maryland Environmental Service may enter into agreements providing for (i) the financing by the issuance of bonds of the Maryland Environmental Service of projects provided for any subdivision by the Authority or (ii) the financing by the issuance of bonds of the Authority of projects provided for any subdivision by the Maryland Environmental Service.

(b) The Authority shall have absolute discretion to determine with respect to the bonds of any issue:

  (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, provided only that no bond of any issue shall mature later than 40 years from the date of its issue;

  (3) The rate or rates of interest payable on such bonds and the date or dates of such payment;

  (4) The form or forms, denomination or denominations, manner of execution and the place or places of payment thereof and of the interest thereon, which may be at any bank or trust company within or without this State;

  (5) Whether such 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 thereof.

#### Section 3-907.1

(a) Beginning June 1, 2023, the Authority may not issue bonds.

(b) Subsection (a) of this section does not impair the Authority's powers and authority regarding:

  (1) Any bonds that, as of June 1, 2023, are outstanding and unpaid; or

  (2) Any contracts that, as of June 1, 2023, rely on the Authority's bonding authority.

#### Section 3-908

(a) In case any officer whose signature or a facsimile of whose signature appears on any bonds or coupons shall cease to be such officer before the delivery of such bonds, such signature or such facsimile shall nevertheless be valid and sufficient for all purposes the same as if he 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 may be issued in coupon or in registered form or both, and provision may be made for the registration of any coupon bonds as to principal alone and also as to both principal and interest, for the reconversion into coupon bonds of any bonds registered as to both principal and interest, and for the interchange of coupon and registered bonds. Provision may also be made for the replacement of bonds which become mutilated or are stolen, lost or destroyed.

(d) The bonds shall be exempt from the provisions of Sec.Sec. 19-205 and 19-206 of the Local Government Article and Sec.Sec. 8-206 and 8-208 of the State Finance and Procurement Article, and the Authority may sell such bonds in such manner, either at public or at private sale, and for such price as it may determine.

#### Section 3-909

(a) The Authority is hereby authorized to provide for the issuance of its bonds for the purpose of refunding any bonds of the Authority 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, and, if deemed advisable by the Authority, for the additional purpose of paying all or any part of the cost of a project or any portion thereof. Refunding bonds may be issued in the discretion of the Authority for any corporate 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 Authority of contractual agreements which, in the opinion of the Authority, 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 or nature of any sources of payment provided by the Authority, refunding bonds may be made payable from escrowed bond proceeds and from interest, income, and profits, if any, on investments. Such sources may be so applied in addition to other lawful uses and shall constitute revenues of a project under this subtitle.

(b) The proceeds of any such bonds issued for the purpose of refunding outstanding bonds may, in the discretion of the Authority, 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 Authority.

(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 ensure 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 Authority for use by it in any lawful manner.

(d) The portion of the proceeds of any such bonds issued for the additional purpose of paying all or any part of the cost of a project 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 not later than the time or times when such proceeds will be needed for the purpose of paying all or any part of such cost. The interest, income and profits, if any, earned or realized on such investment may be applied to the payment of all or any part of such cost or may be used by the Authority in any lawful manner.

#### Section 3-910

The Authority is further authorized and empowered, by resolution:

(a) To issue, prior to the preparation of definitive bonds, interim receipts or temporary bonds, with or without coupons, exchangeable for definitive bonds when such bonds have been executed and are available for delivery.

(b) To issue and sell its bond anticipation notes, the principal of and interest on such notes to be made payable to the bearer or registered holder thereof out of the first proceeds of sale of bonds therein designated and to issue and to sell its revenue anticipation notes or grant anticipation notes, the principal of and interest on such notes to be made payable to the bearer or registered holder 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 Authority in respect thereto, shall be governed by the provisions of this subtitle relating to bonds, insofar as the same may be applicable.

(c) To issue and sell its revenue bonds in the nature of industrial development bonds, whether the bonds be pollution control revenue bonds, solid waste disposal revenue bonds or other types of industrial development revenue bonds, for the purpose of borrowing money to lend to any person or subdivision for the accomplishment by such person or subdivision of a project or projects. The principal of and interest on such bonds may be made payable to the bearer or registered holder thereof out of:

  (1) The revenues received by the Authority from such person or subdivision or otherwise received in connection with such project;

  (2) Any property pledged or mortgaged as security for such bonds; or

  (3) Any other sources designated by the Authority. The authorizing resolution may make provision for the issuance of such bonds in series as funds are required. The issuance of such bonds and the details thereof, the rights of the holders thereof, and the rights, duties, and obligations of the Authority in respect thereto shall be governed by the provisions of this subtitle relating to the bonds, insofar as the same may be applicable. The Authority, however, in its discretion, may make or approve such provisions in connection with the issuance of the bonds authorized by this paragraph, including (without limitation) the security for such bonds, the priority of the bonds with regard to such security (which priority may be senior, or subordinated to, or on a parity with, other obligations) as the Authority may deem necessary or appropriate to effectuate the acquisition, construction or provision of a project by any person or subdivision; provided, however, that the Authority shall not have power to take any action in connection with the issuance of bonds pursuant to this paragraph which would create any obligation on the part of any subdivision without the consent of such subdivision to such obligation.

#### Section 3-911

(a) Bonds may be secured by a trust agreement by and between the Authority 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 of the Authority or of any project, and may mortgage or grant a lien on or security interest in any project or any part thereof. 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 Authority in relation to the acquisition or construction of any project, the extension, enlargement, improvement, maintenance, operation, repair and insurance of any project and the custody, safeguarding and application of money and may contain provisions for the employment of consulting engineers and other experts in connection with the construction or operation of any project. It shall be lawful for any bank or trust company incorporated under the laws of this State which may act as depository of the proceeds of the bonds or of revenues to furnish such indemnifying bonds or to pledge such securities as may be required by the Authority. 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 Authority may deem reasonable and proper for the security of the bondholders, including (without limitation) covenants to abandon, restrict, or prohibit the construction or operation of competing facilities and covenants pertaining to the issuance of additional parity bonds upon conditions stated therein consistent with the requirements of this subtitle. All expenses incurred in carrying out the provisions of any such trust agreement may be treated as a part of the cost of any project or projects in connection with which such bonds shall have been issued.

(b) The proceeds of the sale of bonds shall be paid to the trustee under any trust agreement securing such bonds and shall be disbursed in such manner and under such restrictions, if any, as may be provided in such trust agreement.

#### Section 3-912

(a) The rates, rentals, fees, and charges of the Authority in connection with each project shall be so fixed, revised, and collected as to provide funds, with other funds available for such purposes, sufficient at all times:

  (1) To pay the cost of maintaining, repairing, and operating the project on account of which the Authority shall have issued bonds, including such reserves as the Authority may deem necessary or desirable for such purposes and for replacement and depreciation and necessary extensions;

  (2) To pay the principal of and redemption premium (if any) and interest on the bonds as the same shall become due and payable and to create and maintain such reserves as the Authority may deem necessary or desirable for such purposes; and

  (3) To fulfill the terms and provisions of any agreements made with the purchasers or holders of any of its bonds or with any person or subdivision.

(b) In cases where the character of the waste from any source is such that it imposes an unreasonable burden upon any project, an additional charge may be made therefor, or the Authority may, if it deems advisable, require that such waste be treated or processed in such manner as shall be specified by the Authority prior to the deposit of such waste at the project. Such rentals and other rates, fees, and charges shall not be subject to supervision or regulation by any department, division, commission, board, bureau, or agency of the State or any political subdivision thereof.

(c) The revenues, or any part thereof (whether derived from the project or projects in connection with which the bonds of any issue shall have been issued or from other projects or sources), designated as security for such bonds by the authorizing resolution or in the trust agreement securing the bonds shall be set aside at such regular intervals as may be provided in such resolution or trust agreement in a special fund which is hereby pledged to, and charged with, the payment of:

  (1) The interest upon such bonds as such interest falls due;

  (2) The principal of such bonds as it falls due;

  (3) The necessary charges of paying agents for paying principal and interest; and

  (4) The redemption price or purchase price of bonds retired by call or purchase as provided in such resolution or trust agreement.

  Any amounts set aside in such special fund which are not needed to provide for the payment of such items (1), (2), (3), and (4) may be used for any other lawful purpose, to the extent provided in such resolution or trust agreement. Such pledge shall be valid and binding from the time when the pledge is made. Such revenues or other money so pledged and thereafter received by the Authority 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 Authority, irrespective of whether such parties have notice thereof.

  Neither the resolution nor any trust agreement by which a pledge is created need be filed or recorded except in the records of the Authority, any public general or public local law to the contrary notwithstanding. The use and disposition of money to the credit of such special fund shall be subject to the provisions of the resolution authorizing the issuance of such bonds or of such trust agreement.

(d) Without in any way limiting or restricting the effect or application thereof, the provisions of this subtitle are intended and shall be construed to authorize the Authority to finance any project or projects or any combination of projects by any combination of issues or series of bonds which shall be secured by the pledge of the net or gross (or combination thereof) revenues from any project or projects or combination of projects, designated by a resolution authorizing the issuance of such bonds or by any trust agreement securing such bonds.

(e) Any net earnings of the Authority (beyond that necessary for the retirement of bonds or to implement the public purposes or programs of the Authority) shall not inure to the benefit of any person, other than the State of Maryland for use to accomplish the purposes of this subtitle.

#### Section 3-913

Any holder of bonds or of any of the coupons thereto appertaining and the trustee (except to the extent the rights herein given may be restricted by any resolution authorizing the issuance of, or by any trust agreement securing, such bonds) 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 such resolution or trust agreement, and may enforce and compel the performance of all duties required by this subtitle or by such resolution or trust agreement to be performed by the Authority or by any officer, employee, or agent thereof, including the fixing, charging, and collecting of rates, rentals, fees, and charges herein authorized required by the provisions of such resolution or trust agreement to be fixed, charged, and collected.

#### Section 3-914

Bonds are hereby made 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. Such bonds are hereby made 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.

#### Section 3-915

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 Authority, but such bonds shall be payable solely from the funds herein provided therefor. All such bonds shall contain on the face thereof a statement to the effect that neither the State of Maryland nor any political subdivision thereof other than the Authority shall be obligated to pay the same or the interest thereon except from revenues pledged thereto and that neither the faith and credit nor the taxing power of the State or any political subdivision thereof is pledged to the payment of the principal of or the interest on such bonds. The issuance of bonds under the provisions of this subtitle is not directly or indirectly or contingently an obligation, moral or other, of the State of Maryland or any political subdivision thereof to levy or pledge any form of taxation whatever therefor or to make any appropriation for their payment. Nothing contained in this section shall prevent the Authority from pledging its full faith and credit to the payment of bonds authorized pursuant to this subtitle. However, this section does not limit the ability of the State or a subdivision to set, impose, or collect an assessment, rate, fee, or charge to pay to the Authority the cost of a project, including the principal of and interest on a bond or note, under an agreement between the Authority and the State or subdivision.

Notwithstanding any limitations or other provisions to the contrary of Division II, Title 9, Subtitle 2 or Subtitle 3, Title 10, or Title 11 of the Local Government Article, or of any charter or local law regulating the creation of public debts, a subdivision may enter into contracts with the Authority for the purpose of defraying the Authority's costs of acquiring, constructing, operating, or providing a project, which costs may include debt service requirements of the Authority relating to that project. These contracts are not intended and shall not be deemed to constitute or create a debt of the subdivision or a pledge of its faith or credit within the meaning of any of these limitations or any constitutional or other provisions. Such a project shall not be deemed to be a capital project of the subdivision within the meaning of any of these limitations or other provisions, and a resolution, ordinance, or other official action authorizing such contracts is not subject to referendum or other procedure not applicable to all ordinances or resolutions enacted by the subdivision. For the purposes of this section, the express powers contained and enumerated in Division II and Title 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.

#### Section 3-916

The exercise of the powers granted by this subtitle is and will be in all respects for the benefit of the people of the State of Maryland and the participating counties, for the increase of their commerce, welfare and prosperity, and for the improvement of their health and living conditions, and since the activities of the Authority and the operation and maintenance of its projects will constitute the performance of essential governmental functions, the Authority shall be exempt from any payment of or liability for any and all taxes, whether federal, State, or local, now or hereafter levied or imposed, and any assessments or other governmental charges. The bonds of the Authority, 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.

#### Section 3-917

The Authority 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 in this State, and the Authority 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 any property, real or personal, belonging to the Authority and no assignment of wages shall be binding upon or recognized by the Authority.

#### Section 3-918

(a) Except as otherwise provided by this subtitle, the Authority is hereby authorized to adopt, formulate, and revise from time to time, and enforce rules and regulations necessary for the regulation of its internal affairs and for the use and operation of its projects, and of any other laws the administration of which is vested in the Authority; provided, however, that no such rule or regulation concerning the use or operation of a project shall be in conflict with any rule or regulation of the Department of the Environment. The Authority may limit or regulate waste disposal service on a temporary basis in any area or to any premises served by Authority projects, as the exigencies of the occasion and the protection of its systems require. The Authority shall make such regulations consistent with law as it may deem necessary for the public safety, health, comfort or convenience, in the construction, operation, maintenance, expansion, relocation, replacement, renovation, and repair of its projects.

(b) Notwithstanding any other provision of law granting to the State or to any of its agencies or instrumentalities an exemption from charges and/or fees, the State or any of its agencies or instrumentalities shall pay to the Authority any contractual obligation, or benefit or connection charges imposed thereon, for services rendered.

#### Section 3-919

(a) Nothing in this subtitle shall be construed to alter, change, modify, or restrict the zoning or land use planning authority of any subdivision, municipality, or public instrumentality.

(b) The Authority shall not be deemed to be a public service company within the meaning of the Public Utilities Article, and the jurisdiction and powers of the Public Service Commission shall not extend to the Authority.

(c) Unless otherwise expressly prohibited by any contractual agreement, a subdivision may enter into a contract with the Maryland Environmental Service relating to the provision by the Maryland Environmental Service of any project.

#### Section 3-920

Prior to the acquisition, construction, leasing or installation of a project or the material extension of an existing project, the Authority shall deliver or mail by certified mail a notice of its intention to undertake such project or extension of a project to the chief executive officer of the county in which such project is or is to be located and to the secretary or clerk of the board of county commissioners or the legislative body of such county (as the case may be). The Authority shall not acquire, construct, lease, or install a project or materially extend any existing project if the board of county commissioners, the city council, or the county council (as the case may be) of the county in which such project is or is to be located advises the Authority, within 120 days following the date of the notice required in this section, that it has found that, after a public hearing which has been advertised in a newspaper of general circulation in the affected county at least 14 days prior to such hearing and after considering the recommendations of the chief executive officer of the county and such other facts as it deemed relevant and material, such acquisition, construction, leasing, installation, or extension would be contrary to the best interests of the residents of such county because it would be contrary to the health, safety and welfare of the citizens of such county by reason of (i) the impact of such project on the environment, or (ii) a conflict of such project with the master plan of the county, or (iii) such other facts concerning such project or effects of such project as such legislative body shall find would have an adverse effect on such health, safety and welfare.

#### Section 3-921

All purchases, including but not limited to contracts and orders for materials, services and supplies performed or furnished in connection with the construction of any project owned by the Authority, shall be awarded in accordance with rules and regulations adopted pursuant to the Administrative Procedure Act, which rules and regulations shall provide, with respect to contracts and orders involving the expenditure of more than $10,000 for award by resolution of the Authority after either competitive bidding or public design competition, and which rules and regulations need not be approved by any other board, agency or department of the State. The Authority's rules and regulations providing for competitive bidding or public design competition may include competitive sealed bidding, competitive negotiation, and revised bids after competitive sealed bidding where all bids are rejected as methods for source selection and contract formation. The State Finance and Procurement Article does not apply to the Authority.

#### Section 3-922

Judicial review of any action under this subtitle shall in all instances include the right to appeal to the Appellate Court of Maryland and the Supreme Court of Maryland; provided, however, that nothing in this subtitle shall be construed or applied so as to permit any court or State or local regulatory authority to impair any obligation of the Authority to fix, charge and collect rates, rentals, fees and charges in amounts sufficient to satisfy any covenant in any resolution authorizing bonds or in any trust agreement securing bonds.

#### Section 3-923

(a) Within the first ninety days of each fiscal year, the Authority shall make a report to the Governor and to the chief executive officer and the legislative body of each participating county of its activities for the preceding fiscal year. Each such report shall set forth the complete operating and financial statement covering its operations during such year.

(b) The Authority shall make provision for a system of financial accounting, controls, audits, and reports. All accounting systems and records, auditing procedures and standards, and financial reporting shall conform to generally accepted principles of governmental accounting. The Authority shall adopt the fiscal year of July 1 to June 30, designate the necessary funds for complete accountability, and specify the basis of accounting for each fund. 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 Authority. The audit shall be made by independent certified public accountants, selected by the Authority and licensed to practice in the State. The accountants may not have a personal interest either directly or indirectly in the fiscal affairs of the Authority. 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 accountants shall report the results of their examination, including their unqualified opinion on the presentation of the financial position of the various funds and the results of the Authority'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.

(c) The books, records, and accounts of the Authority are subject to audit by the State. Any officer or employee who refuses to give the required assistance and information to the accountants selected by the Authority or by the State, or who refuses to submit to them for examination the books, documents, records, files, accounts, papers, things, or property required for the audit, in the discretion of the Authority, may be required to forfeit his or her office or employment.

#### Section 3-924

The Authority and its corporate existence shall continue until terminated by law, provided, however, that no such law shall take effect so long as the Authority shall have bonds outstanding, unless adequate provision has been made for the payment thereof. Upon making adequate provision for the payment of all outstanding bonds of the Authority, the Authority may merge into the Maryland Environmental Service, with the consent of the Maryland Environmental Service and the approval of the Governor, by filing a statement of merger with the Secretary of State and the Department of Legislative Services. Upon termination of the existence of the Authority, all its rights and properties shall pass to and be vested in the State for such distribution as may be provided for in contracts between the Authority and the participating counties and in the statement of merger, if any.

#### Section 3-925

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.

#### Section 3-926

When the principal of and interest on bonds of the Authority issued to finance the cost of a particular project or projects for a subdivision or person, (including any refunding bonds issued to refund and refinance such bonds), have been fully paid and retired, or when adequate provision has been made to fully pay and retire the same, and all other conditions of the resolution or trust agreement authorizing and securing the same have been satisfied and the lien of such resolution or trust agreement has been released in accordance with the provisions thereof, the Authority, to the extent required by applicable agreements with any person or subdivision shall promptly do such things and execute such deeds, releases, and documents as are necessary and required:

(1) To convey title to such project or projects to such person or subdivision, free and clear of all liens and encumbrances, all to the extent that title to such project or projects shall not, at the time, then be vested in such person or subdivision; and

(2) To release securities held as collateral by a trustee or trustees pursuant to the trust agreement to such person or subdivision, which had, pursuant to the trust agreement, deposited and turned over such securities to a trustee or trustees in order to assure the full payment and retirement of said bonds, free and clear of all liens and encumbrances, all to the extent that title to such securities shall not, at the time, then be vested in such person or subdivision.

#### Section 3-927

This subtitle shall be deemed to provide an additional and alternative method for the doing of things authorized thereby 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.

#### Section 3-928

This subtitle, being necessary for the welfare of the State and its inhabitants, shall be liberally construed to effect the purposes hereof.

### Subtitle 9A. Solid Waste Disposal Facilities

#### Section 3-9A-01

(a) By resolution or ordinance of its legislative body, any charter county not a party to the Northeast Maryland Waste Disposal Authority provided for in Sec. 3-903 of this title may enter into contracts with any industrial concern for the collection, storage, treatment, utilization, processing or final disposition of solid waste or for the recovery of material or energy therefrom, or any combination thereof.

(b) The contracts:

  (1) Shall be only in connection with solid waste disposal facilities financed under this article located within the charter county or another participating county; and

  (2) May not be in connection with a landfill.

(c) The contracts may be for a period not to exceed 30 years.

(d) The contracts may provide for minimum amounts of waste to be delivered or processed, and payment based thereon, whether or not the waste is actually delivered or processed, and may contain other terms and conditions as the parties consider appropriate.

(e) Any contract may not be deemed a debt of or gift of the county within the meaning of any provision of law or charter, but shall constitute only the contractual liability provided by its terms.

(f) The county may award or negotiate contracts which it deems to be in its best interest in the manner provided with respect to State competitive sealed proposals under Sec. 13-104 of the State Finance and Procurement Article.

(g) If construction of any waste disposal facility subject to the provisions of subsection (a) of this section is proposed within 1 mile of the border of an adjoining county, the government of the county in which construction is proposed shall provide the government of the adjoining county with a copy of the filings and notice of public hearings required under Sec. 9-209 of the Environment Article.

### Subtitle 10. Sea Level Rise Inundation and Coastal Flooding

#### Section 3-1001

(a) In this subtitle the following words have the meanings indicated.

(b)

  (1) "Coast Smart" means a construction practice in which preliminary planning, siting, design, construction, operation, maintenance, and repair of a structure or highway facility avoids or minimizes future impacts associated with coastal flooding and sea level rise inundation.

  (2) "Coast Smart" includes design criteria and siting criteria that are applicable throughout the entire life cycle of a project.

(c) "Council" means the Coast Smart Council.

(d) "Design criteria" means standard specifications related to the shape, size, or form of a construction practice.

(e) "Freshwater" means water with a total dissolved-solid concentration of less than 1,000 mg/L.

(f) "Highway facility" has the meaning stated in Sec. 3-101(f) of the Transportation Article.

(g) "Nuisance flooding" means high-tide flooding that causes public inconvenience.

(h)

  (1) "Replacement cost" means, at the time of reconstruction, the cost of reconstructing a structure and its surrounding property to full use with materials of the same kind and quality as the original materials.

  (2) "Replacement cost" does not include:

    (i) The value of the land on which a structure is located; or

    (ii) For tax purposes, a deduction for depreciation.

(i)

  (1) "Saltwater intrusion" means the movement of water with a total dissolved-solid concentration greater than or equal to 1,000 mg/L to freshwater.

  (2) "Saltwater intrusion" includes saltwater intrusion into surface water, aquifers, and soils.

(j) "Sea level rise inundation" means the inundation of land from a sea level rise of 2 feet, as determined by the Council.

(k) "Siting criteria" means specifications related to the location or use of a structure or highway facility.

(l) "Structure" means:

  (1) A walled or roofed building;

  (2) A manufactured home; or

  (3) A gas or liquid storage tank that is principally above ground.

(m) "Substantial damage" means damage caused by any source that is sustained by a structure such that the cost of reconstruction to its before-damaged condition is at least half of the structure's replacement cost before the damage occurred.

#### Section 3-1004

(a) There is a Coast Smart Council in the Department.

(b) The Department shall provide staff support for the Council.

#### Section 3-1005

(a) The Coast Smart Council shall include:

  (1) The Secretary of Natural Resources, or the Secretary's designee;

  (2) The Secretary of Budget and Management, or the Secretary's designee;

  (3) The Secretary of the Environment, or the Secretary's designee;

  (4) The Secretary of General Services, or the Secretary's designee;

  (5) The Secretary of Planning, or the Secretary's designee;

  (6) The Secretary of Transportation, or the Secretary's designee;

  (7) The Secretary of Commerce, or the Secretary's designee;

  (8) The Chair of the Critical Area Commission for the Chesapeake and Atlantic Coastal Bays, or the Chair's designee;

  (9) The Secretary of Emergency Management, or the Secretary's designee;

  (10) The Comptroller, or the Comptroller's designee;

  (11) The Chancellor of the University System of Maryland, or the Chancellor's designee; and

  (12) Five members appointed by the Governor to represent local government, environmental, and business interests.

(b) The Secretary of Natural Resources or the Secretary's designee shall chair the Council.

(c)

  (1) Subject to paragraph (2) of this subsection, the term of a member appointed by the Governor is 2 years.

  (2) The Governor shall stagger the terms of the initial appointed members.

  (3) At the end of a term, a member continues to serve until a successor is appointed and qualifies.

  (4) A member who is appointed after a term has begun serves only for the remainder of that term and until a successor is appointed and qualifies.

  (5) The Governor may remove an appointed member for incompetence, misconduct, or failure to perform the duties of the position.

(d) A member appointed by the Governor may not receive compensation but is entitled to reimbursement for expenses under the Standard State Travel Regulations, as provided in the State budget.

#### Section 3-1006

(a) The Council shall:

  (1) Study and provide analysis regarding standards and factors relevant to the establishment of Coast Smart siting criteria and design criteria;

  (2) Develop siting and design criteria to establish and implement Coast Smart practices and requirements;

  (3) Develop eligibility criteria, standards, and procedures for applying for and obtaining a waiver from compliance with the Coast Smart requirements;

  (4) Establish procedures for evaluating Coast Smart waiver applications that include the consideration of proposed capital projects with regard to:

    (i) The anticipated need to prepare for, respond to, and recover from extreme weather events, sea level rise inundation, coastal flooding, storm surges, and shoreline erosion; and

    (ii) The need to prevent danger to life and property and to avoid environmental, socio-economic, and economic harm; and

  (5) Develop eligibility criteria, standards, and procedures for categorical exemptions from the application of the Coast Smart requirements for proposed capital projects that have been designed to include adaptation and resiliency features to prevent or mitigate damage to the maximum extent practicable.

(b) The Council may recommend regulations for adoption by the Secretary to carry out the provisions of this subtitle.

(c) The chair of the Council may establish subcommittees consisting of members of the Council, experts in fields related to climate change and sea level rise, and interested parties to address or study specific issues.

#### Section 3-1009

(a)

  (1) This section applies to State and local capital projects for which at least 50% of the project costs are funded with State funds.

  (2) This section does not apply to a capital project that costs less than $500,000.

(b)

  (1) Beginning July 1, 2020, if a State or local capital project includes the construction of a structure or highway facility, the structure or highway facility shall be constructed in compliance with siting and design criteria established under subsection (c) of this section.

  (2) Beginning July 1, 2020, if a State or local capital project includes the reconstruction of a structure with substantial damage, the structure shall be reconstructed in compliance with siting and design criteria established under subsection (c) of this section.

(c)

  (1) The Council, in consultation with the Department and the Department of Transportation, shall establish Coast Smart siting and design criteria to address sea level rise inundation and coastal flood impacts on State and local capital projects.

  (2) The criteria adopted under this subsection shall include:

    (i) Guidelines and any other directives applicable to the preliminary planning and construction of a proposed capital project;

    (ii) A requirement that a structure be designed and constructed or reconstructed in a manner to withstand the storm surge from a storm that registers as a category 2 on the Saffir-Simpson hurricane wind scale, including a requirement for structures to be constructed or reconstructed at a minimum elevation above the projected storm surge; and

    (iii) Provisions establishing a process to allow a unit of State or local government to obtain a waiver from complying with the requirements of subsection (b) of this section.

#### Section 3-1012

(a) On or before December 15, 2019, the Department of Planning, in consultation with the Department, the Department of the Environment, and the Department of Agriculture, shall establish a plan to adapt to saltwater intrusion.

(b) The plan established under subsection (a) of this section shall be updated at least once every 5 years.

#### Section 3-1015

(a) The Board of Public Works, in conjunction with the Department, the Department of the Environment, and the Maryland Department of Emergency Management, shall establish criteria to evaluate whether State funds may be used to mitigate hazards associated with sea level rise inundation and coastal flooding.

(b) The criteria established under subsection (a) of this section shall incorporate tools to assess the vulnerability of an area or a structure to hazards associated with sea level rise inundation and coastal flooding, including tools to measure:

  (1) The level of exposure of an area or a structure to hazards; and

  (2) The degree to which an area or a structure is likely to be affected by the exposure to hazards.

#### Section 3-1018

(a) On or before October 1, 2019, the Department of Planning, in consultation with the Department and the Department of the Environment, shall develop and publish guidelines to assist local jurisdictions in the collection of data to establish nuisance flooding baselines.

(b)

  (1) On or before October 1, 2020, a local jurisdiction that experiences nuisance flooding shall develop a plan to address nuisance flooding.

  (2) A local jurisdiction shall update the plan required under paragraph (1) of this subsection at least once every 5 years.

  (3) A local jurisdiction shall publish the plans required under this subsection on the local jurisdiction's website.

(c) A local jurisdiction that develops a plan to address nuisance flooding shall submit a copy of the nuisance flooding plan to the Department of Planning.

### Subtitle 11. Water Quality Monitoring Program

#### Section 3-1101

(a) There is a Water Quality Monitoring Program within the Department.

(b) The purpose of the Water Quality Monitoring Program is to:

  (1) Provide for a consistent statewide approach for improving water quality monitoring data, consistent with the most up-to-date scientific knowledge and technologies;

  (2) Conduct long-term and targeted short-term water quality monitoring and assessments to develop an understanding of and guide programs designed to meet water quality improvement goals, improve aquatic living resources and habitat, address climate change impacts, and implement resilience planning;

  (3) Integrate water quality monitoring data into planning processes to inform policy choices about the effectiveness of management actions; and

  (4) Provide the general public with readily available water quality monitoring data to guide recreational and other passive uses.

(c) The Department may assess and incorporate water quality monitoring data that meets the quality assurance and use goals of the State data sets into the Water Quality Monitoring Program.

### Subtitle 12

#### Section 3-1201

In this subtitle, "Fund" means the Resilience Through Restoration Capital Grant Fund.

#### Section 3-1202

(a) There is a Resilience Through Restoration Capital Grant Fund in the Department.

(b) The purpose of the Fund is to provide equitable grant funding to State agencies, local jurisdictions, and nonprofit organizations for the planning, design, construction, and adaptive management of nature-based restoration projects that reduce the State's climate change vulnerabilities and enhance the resilience of the State's communities and public lands.

(c) The Department shall administer the Fund.

(d)

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

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

(e) The Fund consists of:

  (1) Money appropriated in the State budget to the Fund;

  (2) Money from private or public sources, including from federal sources, accepted for the benefit of the Fund;

  (3) Interest earnings; and

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

(f) The Fund may be used only for:

  (1) Providing grants to State agencies, local governments, and nonprofit organizations in the State for the planning, design, construction, and adaptive management of nature-based restoration projects that reduce the State's climate change vulnerabilities and enhance the resilience of the State's communities and public lands;

  (2) Supporting programmatic and project-level adaptive management that reduces the State's overall climate change vulnerabilities and enhances the resilience of the State's communities and public lands; and

  (3) Administrative expenses calculated in accordance with Sec. 1-103(b)(2) of this article.

(g) A project that receives funding under the Fund:

  (1) Shall enhance the ability of communities and public lands to prepare for, respond to, or recover from extreme hazards such as storms and more frequent and intense rain events or chronic hazards such as nuisance flooding and sea level rise;

  (2) Shall use at least 3% of the funding for programmatic or project-level adaptive management; and

  (3) May include:

    (i) Natural and nature-based shoreline restoration;

    (ii) Floodplain restoration;

    (iii) Beneficial use of dredged material;

    (iv) Tidal and nontidal wetland restoration;

    (v) Dune and beach restoration;

    (vi) Green infrastructure; and

    (vii) Any other nature-based project that provides community and ecosystem benefits by restoring, enhancing, or creating habitat.

(h)

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

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

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

### Subtitle 13

#### Section 3-1301

In this subtitle, "planning tools and resources" means any mapping application, dataset, analytical model, assessment methodology, technical resource, or other tool developed or maintained by the Department that reflects the latest climate and environmental science and provides information relevant to climate change and natural resource planning.

#### Section 3-1302

(a) By October 1, 2027, the Department shall develop:

  (1) A user-friendly website that serves as the central access point for the Department's planning tools and resources;

  (2) Streamlined guidance to support the use and integration of the Department's planning tools and resources into local jurisdiction planning efforts; and

  (3) Training to assist local jurisdictions in incorporating climate adaptation planning into local comprehensive plans and other planning documents.

(b) The Department shall maintain and regularly update the website, guidance, and trainings developed under subsection (a) of this section with best-available data and information.

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