Title 3. Environmental Programs — Subtitle 1. Maryland Environmental Service

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

“Board” means the Board of Directors of the Maryland Environmental Service.

“Bonds” means all bonds or other evidences of indebtedness of the Service other than notes, whether general or limited obligations of the Service.

“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.

The word “county” includes Baltimore City unless otherwise indicated.

“Energy project” means any service, facility, system, or property, real or personal, used, useful, or having present capacity for use in connection with:

“Executive Director” means the Executive Director of the Maryland Environmental Service.

“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.

“Liquid waste” means:

“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.

“Notes” means bond anticipation notes, revenue anticipation notes, and grant anticipation notes of the Service, whether general or limited obligations of the Service.

“Person” means any natural person, individual, firm, partnership, association, cooperative, limited liability company, corporation, or other entity.

“Service” means the Maryland Environmental Service.

“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.

“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.

“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.

“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.

“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.

“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.

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.

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.

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.

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.

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

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:

Board members shall observe the same standard of care required of corporate directors under § 2–405.1 of the Corporations and Associations Article.

The Executive Director shall appoint a Diversity Officer to:

On or before December 31, 2021, and each December 31 thereafter, the Service shall, in accordance with § 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.

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

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.

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

The Board shall:

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.

To have perpetual existence as a corporation.

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

To adopt an official seal and alter it.

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

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

To sue and be sued.

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.

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.

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.

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.

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.

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:

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.

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.

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.

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 § 11–101 of the State Finance and Procurement Article.

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

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.

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

Except as provided in §§ 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.

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.

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.

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

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

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

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.

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.

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 §§ 3–109 and 3–110 of this subtitle; or pursuant to a mandatory agreement to provide requested services, as provided in § 3–107 of this subtitle; or pursuant to an approved five–year plan, as provided in § 3–106 of this subtitle.

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.

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.

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.

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.

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.

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 § 3–109 or § 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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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:

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.

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.

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.

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.

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.

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.

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

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.

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.

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.

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.

The bonds and notes are exempt from the provisions of §§ 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.

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.

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;

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

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:

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.

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.

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 § 3–128 of this subtitle.

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.

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.

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.

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.

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.

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.

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.

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:

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.

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

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.

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.

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.

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.

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

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.

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 § 3–102(b) of this subtitle, the jurisdiction and powers of the Public Service Commission do not extend to the Service.