This chapter establishes the Urban Agriculture Water and Power Infrastructure Grant Program. The purpose of the Program is to increase the viability of urban farming and community and to improve access to urban-grown foods. A In this chapter, the following terms have the meaning indicated. B Terms Defined. “Department” means Maryland Department of Agriculture. “Eligible cost” means a cost that the Department determines is necessary for the purchase and installation of: Water meters; Water pipes; Irrigation hoses; Electric meters; Electric lines; or Any other equipment associated with water supply and irrigation or electric power access that may be required to provide water or electrical power to operation. “Farm product” means: Any agricultural, horticultural, vegetable, or fruit product of the soil, whether raw or canned, frozen, dried, pickled, or otherwise processed; Livestock, meats, marine food products, poultry, eggs, or dairy products; Wool, hides, feathers, nuts, or honey; or Any product of farm, forest, orchard, garden, or water. “Program” means the Urban Agriculture Water and Power Infrastructure Grant Program. “Project” means the installation of equipment associated with water supply and irrigation or electric power access to provide water or electrical power to a farm or community garden in an urban area. “Qualified nonprofit organization” means a nonprofit organization that is organized and operated exclusively for exempt purposes under §501(c)(3) of the Internal Revenue Code and operates a farm or community garden in an urban area. “Urban agricultural producer” means any person that: Annually produces farm products in an urban area; and Sells, plans to sell, or normally would have sold at least $1,000 annually of farm products produced from a farming operation. “Urban area” means an area of the State delineated as an urban area by the U.S. Census Bureau set forth in “Urban Area Criteria for the 2020 Census—Final Criteria”, at 87 Federal Register 16706 (March 24, 2022). An urban agricultural producer or qualified nonprofit organization is eligible to apply for financial assistance under the Program to install equipment associated with water supply and irrigation or electric power access to provide water or electrical power to a farm or community garden in an urban area. A person who applies for cost-sharing funds under the Program shall submit to the Department the following: An application on a Department form, including a project narrative describing the proposed project, which shall include an approximate total project cost figure based on all eligible costs; A map identifying the project location, street address and parcel boundaries of the operation; For a nonprofit organization: A favorable determination letter from the Internal Revenue Service that the organization meets the requirements of §501(c)(3) of the Internal Revenue Code; and A letter of good standing with the State of Maryland Department of Assessments and Taxation; Documentation supporting the sale or anticipated sale of at least $1,000 annually of farm products from the farming operation in the State; Except for an individual applying on the individual’s own behalf, documentation establishing that person’s authority to sign on behalf of the organization on all matters related to the Program; and A completed Current Nutrient Management Plan Certification form or Nutrient Management Plan Waiver, as applicable. Department Approval or Disapproval of Application. If the Department approves a project, it shall base the amount of State cost-sharing funds on: The eligibility of the applicant; and The lack of existing water or power infrastructure to the operation. Department shall disapprove an application for any of the following reasons: The application is incomplete or does not comply with these regulations; The applicant’s land is not used for agricultural purposes; The application is for a project which is already under construction; or No funds are available. Within 30 days, the Department shall notify the applicant if an application is approved. If the application has been approved, the Department shall inform the applicant of the estimated State cost-sharing amount for the project and the applicant’s required matching amount. If the application has not been approved, the Department shall inform the applicant of the reason it has been denied. The Department and the applicant shall execute an agreement. The agreement, among other things, shall obligate the applicant to: Establish, construct, or install utilities in accordance with the jurisdictions permit specifications; Maintain the utility for at least five years from date of completion; Bind any successor in title for the life of the project as specified in the agreement; and Provide any required funds for the project. Before the Department executes a cost-sharing agreement with a farm tenant, it shall obtain the consent of the landlord to the terms and conditions of the agreement. After all parties execute a cost-sharing agreement, an applicant shall begin the approved project. The applicant shall be responsible for all steps in completing the project, including, but not limited to, obtaining any necessary permits and the services of contractors or obtaining any necessary materials or equipment to complete project construction. The applicant who executes a cost-sharing agreement shall be paid in accordance with the following payment schedule: Upon receipt of all required construction permits, up to 25 percent of the estimated costs as outlined in the cost-sharing agreement; Upon commencement of construction, up to 50 percent of estimated costs as outlined in the cost-sharing agreement minus any payment made previously; and Upon completion of project and satisfactory final inspection, 87.5 percent of realized eligible costs minus any payments made previously. Except for payments described in §A(1) and (2) of this regulation, the applicant shall document all eligible costs on an itemized statement. Each itemized cost shall be supported by payment receipts or unpaid invoices from vendors. Each receipt shall be signed by the person who executes a cost-sharing agreement and certified that each cost is true and correct to the best of that person's knowledge. Each payment receipt or unpaid invoice shall show the following: Vendor names; Type of material, labor, or equipment used on the project; and The unit cost paid for the item, the total amount paid to the vendor, and the date payment was received. The applicant shall complete and submit to the Department a departmental claim for payment form for each scheduled payment outlined in §A of this regulation. After the Department has distributed cost-sharing funds, the Department shall monitor projects to see if they are maintained in accordance with the agreement. Any violations shall be documented on a departmental form, a copy of which shall be provided to the applicant. If the applicant fails to establish, install, construct, or maintain the project in accordance with any agreement executed with the Department, that applicant shall be liable for the full amount of State cost-sharing funds paid for any practice that was not implemented or maintained. However, the applicant is not liable for inadequate maintenance or destruction of a best management practice if caused by an act of nature that could not be reasonably anticipated. If the applicant is required to have a nutrient management plan under Agriculture Article, Title 8, Subtitle 8, Annotated Code of Maryland, and fails to obtain a nutrient management plan or to comply with this plan, the Department may require repayment of the cost-sharing funds it paid towards installation of the project. The Department shall submit a report to the Governor, the Senate Budget and Taxation Committee, and the House Appropriations Committee on the effectiveness of the funding provided for the Program by October 15 of each year. Agriculture Article, §2-103; State Finance and Procurement Article, §14-704; Annotated Code of Maryland Effective date: April 17, 2023 (50:7 Md. R. 302)