<?xml version='1.0' encoding='utf-8'?>
<regulation prefix="Regulation" num=".03" citation="COMAR 21.05.15.03" title_num="21" subtitle_num="05" chapter_num="15" heading="Application.">
  <paragraph num="A.">
    <text>A unit may enter into a pay-for-success contract only if the procurement officer of the unit determines that:</text>
    <paragraph num="(1)">
      <text>The contract will produce estimated financial savings or other quantifiable public benefits for the State; and</text>
    </paragraph>
    <paragraph num="(2)">
      <text>A substantial portion of the outcome payment due under the contract will be paid only after specific outcomes have been documented.</text>
    </paragraph>
  </paragraph>
  <paragraph num="B.">
    <text>This chapter applies only to procurements by:</text>
    <paragraph num="(1)">
      <text>The Department of Agriculture;</text>
    </paragraph>
    <paragraph num="(2)">
      <text>The Department of the Environment;</text>
    </paragraph>
    <paragraph num="(3)">
      <text>The Department of Natural Resources;</text>
    </paragraph>
    <paragraph num="(4)">
      <text>The Department of Transportation;</text>
    </paragraph>
    <paragraph num="(5)">
      <text>The Maryland Environmental Service; and</text>
    </paragraph>
    <paragraph num="(6)">
      <text>The Department of General Services.</text>
    </paragraph>
  </paragraph>
  <paragraph num="C.">
    <text>This chapter does not apply to the purchase of nitrogen load reductions with funds from the Clean Water Commerce Account of the Bay Restoration Fund established under Environment Article, §9-1605.2, Annotated Code of Maryland.</text>
  </paragraph>
  <paragraph num="D.">
    <text>A unit specified in §B of this regulation may enter into a pay-for-success contract with an aggregator to procure:</text>
    <paragraph num="(1)">
      <text>Delivery of an environmental outcomes project; or</text>
    </paragraph>
    <paragraph num="(2)">
      <text>Already certified environmental outcomes.</text>
    </paragraph>
  </paragraph>
  <paragraph num="E.">
    <text>Other State and local entities may participate in a pay-for-success contract under this chapter in accordance with an intergovernmental cooperative purchasing agreement under COMAR 21.05.09.</text>
  </paragraph>
</regulation>