<?xml version='1.0' encoding='utf-8'?>
<regulation prefix="Regulation" num=".04" citation="COMAR 21.05.15.04" title_num="21" subtitle_num="05" chapter_num="15" heading="Pay-for-Success Contracts.">
  <paragraph num="A.">
    <text>A pay-for-success contract executed under this regulation shall include:</text>
    <paragraph num="(1)">
      <text>A quantification plan approved by the unit;</text>
    </paragraph>
    <paragraph num="(2)">
      <text>A statement of the environmental outcomes to be procured under the contract and a description of how defined performance measures will demonstrate progress in achieving these outcomes;</text>
    </paragraph>
    <paragraph num="(3)">
      <text>Requirements regarding the content and frequency of progress reports regarding the achievement of environmental outcomes;</text>
    </paragraph>
    <paragraph num="(4)">
      <text>A methodology for calculating the amount and timing of outcome payments to an aggregator when the evaluator determines that the aggregator has achieved a defined performance measure;</text>
    </paragraph>
    <paragraph num="(5)">
      <text>A statement that the basis of payment is the determination of achievement of environmental outcomes by the evaluator and that payments for those outcomes do not require itemized billing or cost documentation by the aggregator; and</text>
    </paragraph>
    <paragraph num="(6)">
      <text>Terms addressing:</text>
      <paragraph num="(a)">
        <text>Compliance with State law;</text>
      </paragraph>
      <paragraph num="(b)">
        <text>Nondiscrimination in employment;</text>
      </paragraph>
      <paragraph num="(c)">
        <text>Contractor indemnification;</text>
      </paragraph>
      <paragraph num="(d)">
        <text>Termination for default; and</text>
      </paragraph>
      <paragraph num="(e)">
        <text>The unit’s right to inspect the environmental outcomes project.</text>
      </paragraph>
    </paragraph>
  </paragraph>
  <paragraph num="B.">
    <text>A pay-for-success contract executed under this regulation may include provisions regarding:</text>
    <paragraph num="(1)">
      <text>Long-term maintenance and monitoring of environmental services, including the establishment of a stewardship fund;</text>
    </paragraph>
    <paragraph num="(2)">
      <text>A requirement that the unit hold contract funds in a reserve account for outcome payments;</text>
    </paragraph>
    <paragraph num="(3)">
      <text>For agriculture services, payment for achievement of baseline water quality requirements for nitrogen, phosphorus, or sediment; or</text>
    </paragraph>
    <paragraph num="(4)">
      <text>Terminations prior to the first payment under the contract for the purpose of selling environmental outcomes without penalty to another entity or for any other reason.</text>
    </paragraph>
  </paragraph>
</regulation>