§8–2A–04.    IN EFFECT

    (a)    The BayStat Program shall direct the administration of the Trust Fund in accordance with this section.

    (b)    (1)    The BayStat Program shall implement nonpoint source pollution reduction measures to:

            (i)    Support State and local watershed implementation plans by targeting limited financial resources on the most effective nonpoint source pollution control projects; and

            (ii)    Improve the health of the Atlantic Coastal Bays and their tributaries by targeting funds, geographically and by practice, to proven, scientifically based projects that provide the most cost–effective and measurable water quality benefits to the Atlantic Coastal Bays and their tributaries.

        (2)    To the maximum extent practicable, the BayStat Program shall distribute the Trust Fund money on a competitive basis.

    (c)    (1)    The BayStat Program shall distribute funds from the Trust Fund to the BayStat Subcabinet agencies in accordance with the final work and expenditure plans.

        (2)    The BayStat Subcabinet agencies shall administer the funds in accordance with the final work and expenditure plans, including the distribution of funds:

            (i)    Through grants to:

                1.    Counties;

                2.    Bicounty agencies;

                3.    Municipalities;

                4.    Forest conservancy district boards;

                5.    Soil conservation districts;

                6.    Academic institutions; and

                7.    Nonprofit organizations having a demonstrated ability to implement nonpoint source pollution control projects;

            (ii)    To the Chesapeake and Atlantic Coastal Bays Nonpoint Source Fund established under § 9–1605.3 of the Environment Article;

            (iii)    To the Maryland Agricultural Cost–Share Program established under Title 8, Subtitle 7 of the Agriculture Article for nonpoint source pollution control projects;

            (iv)    To the Green Shores Program established under § 5–429 of this article;

            (v)    To the Mel Noland Woodland Incentives Fund established under § 5–307 of this article; and

            (vi)    Subject to paragraph (4) of this subsection, through the procurement of nutrient– or sediment–related environmental outcomes under a pay–for–success contract or any other procurement method authorized under Division II of the State Finance and Procurement Article.

        (3)    The BayStat Program shall:

            (i)    Develop solicitations, guidelines, and applications for Trust Fund grants and contracts that shall include consideration of the extent to which a proposed project, both geographically and by practice, will deliver the greatest, most cost–effective, and measurable nonpoint source pollution reduction per Trust Fund dollar; and

            (ii)    In evaluating Trust Fund applications, encourage and consider:

                1.    Multi–year, multi–partner proposals, local match or cost–share agreements, or similar actions proposed by an applicant;

                2.    Projects that, in addition to providing cost–effective and measurable nonpoint source pollution reductions, provide co–benefits including:

                A.    The restoration of aquatic resources, such as seagrass beds or oyster reefs;

                B.    Climate resilience;

                C.    Carbon sequestration;

                D.    Creation of wildlife habitat;

                E.    Local employment opportunities;

                F.    The improvement or provision of recreational opportunities; or

                G.    Environmental justice benefits; and

                3.    Subject to paragraph (5) of this subsection, multi–year agreements whereby an aggregator proposes to:

                A.    Combine funding from the Trust Fund with revolving loan funds authorized under §§ 9–1605 and 9–1605.1 of the Environment Article, Federal Emergency Management Agency hazard mitigation support, or private sources of funding; and

                B.    Use the combined sources to fund and administer the implementation of multiple projects or pay for environmental outcomes from multiple completed projects.

        (4)    (i)    Funds from the Trust Fund may not be used to procure environmental outcomes achieved before January 1, 2021.

            (ii)    Payment under a pay–for–success contract may be made only after an evaluator has certified to the contracting agency that the environmental outcomes have been measured or modeled consistent with an approved quantification plan.

        (5)    A BayStat Subcabinet agency may use funding from the Trust Fund for a multi–year agreement specified under paragraph (3)(ii)3 of this subsection only if the agency determines that the agreement will:

            (i)    Provide cost–effective nutrient and sediment reductions in a manner consistent with the cost–effectiveness of other projects supported through the Trust Fund;

            (ii)    Deliver benefits consistent with those required by revolving loan funds authorized under §§ 9–1605 and 9–1605.2 of the Environment Article;

            (iii)    Require not more than 20% of total resources in the Trust Fund; and

            (iv)    Deliver co–benefits as described in paragraph (3)(ii)2 of this subsection.

    (d)    Any grant or contract agreement regarding funds from the Trust Fund shall:

        (1)    Specify the use of the funds provided under the grant, accountability measures, and performance requirements;

        (2)    Take into account the need for efficient, multi–year funding and administration; and

        (3)    Include provisions for verification that practices are being implemented.

    (e)    (1)    A recipient of funds from the Trust Fund in any fiscal year shall submit an annual report to the BayStat Program by November 1 of the next fiscal year.

        (2)    The report required under paragraph (1) of this subsection shall include:

            (i)    For agencies receiving money from the Trust Fund:

                1.    A description of how the funds were allocated, including:

                A.    The number and amounts of grants awards; and

                B.    Direct expenditures by the agency;

                2.    How funding was leveraged; and

                3.    Estimated or calculated nutrient reductions associated with Trust Fund expenditures.

            (ii)    For recipients of competitive grants or pay–for–success contracts from the Trust Fund, a description of funded projects, including:

                1.    Project location;

                2.    Description of practices implemented;

                3.    Timeframes for project completion;

                4.    Estimated or calculated nutrient reductions; and

                5.    Provisions for long–term maintenance of practices.

    (f)    Funds from the Trust Fund may not be used to enable an individual cited for noncompliance with a nonpoint source pollution control law or regulation to achieve compliance.

    (g)    (1)    There is a BayStat Program Scientific Advisory Panel.

        (2)    The Governor shall appoint the chair and members of the BayStat Program Scientific Advisory Panel.

        (3)    The BayStat Program Scientific Advisory Panel shall include scientists and other technical experts with demonstrated expertise in the disciplines related to protection and restoration of the Chesapeake and Atlantic Coastal Bays.

        (4)    The BayStat Program Scientific Advisory Panel shall:

            (i)    On or before August 1, annually provide recommendations to the BayStat Subcabinet on the use of funds of the Trust Fund for the following fiscal year;

            (ii)    Monitor the distribution of funds from the Trust Fund;

            (iii)    Review the categories of grants and contracts made in the previous year to assess nutrient loading reduction estimates and cost efficiencies and the effectiveness of any innovative nonpoint source pollution reduction measure;

            (iv)    Review the proposed annual work plan and advise the BayStat Subcabinet of any recommended changes;

            (v)    On request by the BayStat Subcabinet, review individual funding applications;

            (vi)    Annually review any Trust Fund money that is not distributed on a competitive basis to assess whether that money may be distributed on a competitive basis; and

            (vii)    On or before January 31, 2023:

                1.    Analyze and compare the fund distributions through the competitive program and by each BayStat Subcabinet agency for fiscal years 2012 through 2023 and the strategies supported by those distributions;

                2.    Quantify the relative effectiveness of each distribution and strategy per dollar of State funding; and

                3.    Report to the BayStat Subcabinet, the Governor, and, in accordance with § 2–1257 of the State Government Article, the General Assembly on the results of the analyses required under items 1 and 2 of this item.

    (h)    The BayStat Subcabinet agencies may:

        (1)    Distribute to an administrative cost account the amount that is necessary to administer grant programs, not to exceed 1.5% of the allocations to the BayStat Subcabinet agencies; and

        (2)    Maintain an amount, not to exceed 2% of the total in competitive grants and contracts administered by the BayStat Subcabinet agencies, for the purpose of meeting additional project needs, including:

            (i)    The adaptive management, maintenance, or catastrophe–induced repair needs of projects funded by the grants or contracts; and

            (ii)    Paying for quantified and verified water quality–related environmental outcomes that exceed the quantity of environmental outcomes anticipated under particular grants or contracts.

§8–2A–04.    // EFFECTIVE JUNE 30, 2031 PER CHAPTER 645 OF 2021 //

    (a)    The BayStat Program shall direct the administration of the Trust Fund in accordance with this section.

    (b)    (1)    The BayStat Program shall implement nonpoint source pollution reduction measures to:

            (i)    Support State and local watershed implementation plans by targeting limited financial resources on the most effective nonpoint source pollution control projects; and

            (ii)    Improve the health of the Atlantic Coastal Bays and their tributaries by targeting funds, geographically and by practice, to proven, scientifically based projects that provide the most cost–effective and measurable water quality benefits to the Atlantic Coastal Bays and their tributaries.

        (2)    To the maximum extent practicable, the BayStat Program shall distribute the Trust Fund money on a competitive basis.

    (c)    (1)    The BayStat Program shall distribute funds from the Trust Fund to the BayStat Subcabinet agencies in accordance with the final work and expenditure plans.

        (2)    The BayStat Subcabinet agencies shall administer the funds in accordance with the final work and expenditure plans, including the distribution of funds:

            (i)    Through grants to:

                1.    Counties;

                2.    Bicounty agencies;

                3.    Municipalities;

                4.    Forest conservancy district boards;

                5.    Soil conservation districts;

                6.    Academic institutions; and

                7.    Nonprofit organizations having a demonstrated ability to implement nonpoint source pollution control projects;

            (ii)    To the Chesapeake and Atlantic Coastal Bays Nonpoint Source Fund established under § 9–1605.3 of the Environment Article;

            (iii)    To the Maryland Agricultural Cost–Share Program established under Title 8, Subtitle 7 of the Agriculture Article for nonpoint source pollution control projects;

            (iv)    To the Mel Noland Woodland Incentives Fund established under § 5–307 of this article; and

            (v)    Subject to paragraph (4) of this subsection, through the procurement of nutrient– or sediment–related environmental outcomes under a pay–for–success contract or any other procurement method authorized under Division II of the State Finance and Procurement Article.

        (3)    The BayStat Program shall:

            (i)    Develop solicitations, guidelines, and applications for Trust Fund grants and contracts that shall include consideration of the extent to which a proposed project, both geographically and by practice, will deliver the greatest, most cost–effective, and measurable nonpoint source pollution reduction per Trust Fund dollar; and

            (ii)    In evaluating Trust Fund applications, encourage and consider:

                1.    Multi–year, multi–partner proposals, local match or cost–share agreements, or similar actions proposed by an applicant;

                2.    Projects that, in addition to providing cost–effective and measurable nonpoint source pollution reductions, provide co–benefits including:

                A.    The restoration of aquatic resources, such as seagrass beds or oyster reefs;

                B.    Climate resilience;

                C.    Carbon sequestration;

                D.    Creation of wildlife habitat;

                E.    Local employment opportunities;

                F.    The improvement or provision of recreational opportunities; or

                G.    Environmental justice benefits; and

                3.    Subject to paragraph (5) of this subsection, multi–year agreements whereby an aggregator proposes to:

                A.    Combine funding from the Trust Fund with revolving loan funds authorized under §§ 9–1605 and 9–1605.1 of the Environment Article, Federal Emergency Management Agency hazard mitigation support, or private sources of funding; and

                B.    Use the combined sources to fund and administer the implementation of multiple projects or pay for environmental outcomes from multiple completed projects.

        (4)    (i)    Funds from the Trust Fund may not be used to procure environmental outcomes achieved before January 1, 2021.

            (ii)    Payment under a pay–for–success contract may be made only after an evaluator has certified to the contracting agency that the environmental outcomes have been measured or modeled consistent with an approved quantification plan.

        (5)    A BayStat Subcabinet agency may use funding from the Trust Fund for a multi–year agreement specified under paragraph (3)(ii)3 of this subsection only if the agency determines that the agreement will:

            (i)    Provide cost–effective nutrient and sediment reductions in a manner consistent with the cost–effectiveness of other projects supported through the Trust Fund;

            (ii)    Deliver benefits consistent with those required by revolving loan funds authorized under §§ 9–1605 and 9–1605.2 of the Environment Article;

            (iii)    Require not more than 20% of total resources in the Trust Fund; and

            (iv)    Deliver co–benefits as described in paragraph (3)(ii)2 of this subsection.

    (d)    Any grant agreement regarding funds from the Trust Fund shall:

        (1)    Specify the use of the funds provided under the grant, accountability measures, and performance requirements;

        (2)    Take into account the need for efficient, multi–year funding and administration; and

        (3)    Include provisions for verification that practices are being implemented.

    (e)    (1)    A recipient of funds from the Trust Fund in any fiscal year shall submit an annual report to the BayStat Program by November 1 of the next fiscal year.

        (2)    The report required under paragraph (1) of this subsection shall include:

            (i)    For agencies receiving money from the Trust Fund:

                1.    A description of how the funds were allocated, including:

                A.    The number and amounts of grants awards; and

                B.    Direct expenditures by the agency;

                2.    How funding was leveraged; and

                3.    Estimated or calculated nutrient reductions associated with Trust Fund expenditures.

            (ii)    For recipients of competitive grants or pay–for–success contracts from the Trust Fund, a description of funded projects, including:

                1.    Project location;

                2.    Description of practices implemented;

                3.    Timeframes for project completion;

                4.    Estimated or calculated nutrient reductions; and

                5.    Provisions for long–term maintenance of practices.

    (f)    Funds from the Trust Fund may not be used to enable an individual cited for noncompliance with a nonpoint source pollution control law or regulation to achieve compliance.

    (g)    (1)    There is a BayStat Program Scientific Advisory Panel.

        (2)    The Governor shall appoint the chair and members of the BayStat Program Scientific Advisory Panel.

        (3)    The BayStat Program Scientific Advisory Panel shall include scientists and other technical experts with demonstrated expertise in the disciplines related to protection and restoration of the Chesapeake and Atlantic Coastal Bays.

        (4)    The BayStat Program Scientific Advisory Panel shall:

            (i)    On or before August 1, annually provide recommendations to the BayStat Subcabinet on the use of funds of the Trust Fund for the following fiscal year;

            (ii)    Monitor the distribution of funds from the Trust Fund;

            (iii)    Review the categories of grants made in the previous year to assess nutrient loading reduction estimates and cost efficiencies and the effectiveness of any innovative nonpoint source pollution reduction measure;

            (iv)    Review the proposed annual work plan and advise the BayStat Subcabinet of any recommended changes;

            (v)    On request by the BayStat Subcabinet, review individual funding applications;

            (vi)    Annually review any Trust Fund money that is not distributed on a competitive basis to assess whether that money may be distributed on a competitive basis; and

            (vii)    On or before January 31, 2023:

                1.    Analyze and compare the fund distributions through the competitive program and by each BayStat Subcabinet agency for fiscal years 2012 through 2023 and the strategies supported by those distributions;

                2.    Quantify the relative effectiveness of each distribution and strategy per dollar of State funding; and

                3.    Report to the BayStat Subcabinet, the Governor, and, in accordance with § 2–1257 of the State Government Article, the General Assembly on the results of the analyses required under items 1 and 2 of this item.

    (h)    The BayStat Subcabinet agencies may:

        (1)    Distribute to an administrative cost account the amount that is necessary to administer grant programs, not to exceed 1.5% of the allocations to the BayStat Subcabinet agencies; and

        (2)    Maintain an amount, not to exceed 2% of the total in competitive grants and contracts administered by the BayStat Subcabinet agencies, for the purpose of meeting additional project needs, including:

            (i)    The adaptive management, maintenance, or catastrophe–induced repair needs of projects funded by the grants or contracts; and

            (ii)    Paying for quantified and verified water quality–related environmental outcomes that exceed the quantity of environmental outcomes anticipated under particular grants or contracts.