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MarylandHB 01312025 Regular SessionHouseWALLET

Environment - Bay Restoration Fund - Septic System Upgrade Program

Sponsored By: Dana Stein (Democratic)

Signed by Governor

EnvironmentChesapeake Bay RestorationCoastal BaysEnvironment, Department of theEnvironmental IncentivesEnvironmental Matters -see also- Conserv; Nat Resrce; PollutGrantsIndustry and TechnologyLoans -see also- Credit; Mortgages; Scholarships&SFALow-IncomeNatural Resources -see also- Coal; For&Pks; Rivers; etc.Residency -see also- Immigrants and CitizenshipRevenue and Taxes -see also- (specific tax)Rivers, Streams, and LakesSewageState Aid -see also- Public BenefitsTimeWater -see also- Coastal Bays; Riv,Str,Lks; Wastewater; etc.Water Pollution

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Bill Overview

Analyzed Economic Effects

4 provisions identified: 2 benefits, 1 costs, 1 mixed.

New priorities for homeowners’ septic repair help

Beginning July 1, 2026, the law changes priorities for the 60% Bay Restoration Fund share used for specified septic costs. Failing systems in the Chesapeake and Atlantic Coastal Bays Critical Area remain first. Next come failing systems in Maryland Chesapeake Bay 8-digit watersheds scoring at least 9.24 for nitrogen reduction, then the 500-year floodplain, then systems the state finds threaten health or water quality. The law also expands repair or replacement priority from low-income owners to low- and moderate-income owners, using state income definitions. Within that income-based priority, the best available nitrogen-removal systems rank before other wastewater systems; no grant amount is guaranteed.

Rolling age test for community sewer help

Beginning July 1, 2026, community sewer funding uses a rolling 15-year age test instead of the October 1, 2008 cutoff. Each lot served needs an occupancy certificate, or equivalent, dated at least 15 years before July 1 of the application year. Projects must replace multiple septic systems with a local-government-owned community sewer that meets enhanced nutrient removal standards. The local government must document the septic systems’ environmental impact, and Maryland’s environment department must confirm it. The project must remove nitrogen more cost-effectively than individual upgrades, or individual replacement must be infeasible.

Rolling age test for sewer connection help

Beginning July 1, 2026, sewer connection funding replaces the October 1, 2008 installation cutoff with a rolling 15-year test. Septic systems must have been installed at least 15 years before July 1 of the application year. The municipal plant must achieve enhanced or biological nutrient removal, or be under construction to achieve it under a state funding agreement. Local government must document environmental impacts for state confirmation; connection must be more cost-effective for nitrogen removal than individual upgrades, or replacement must be infeasible. Projects must follow county comprehensive and water and sewer plans and meet applicable priority funding area or public-health-area requirements.

State septic technology ranking requirement ends

Beginning July 1, 2026, Maryland’s environment department no longer has to evaluate and rank the best available nitrogen-removal septic technologies. The law also removes its duty to share those evaluations and rankings with local governments and residents. This repeal does not change household eligibility for repair funding or add a household duty.

Sponsors & Cosponsors

Sponsor

  • Dana Stein

    Democratic • House

Cosponsors

  • Michele Guyton

    Democratic • House

  • Sheila Ruth

    Democratic • House

Roll Call Votes

All Roll Calls

Yes: 176 • No: 5

Senate vote • 4/3/2025

Third Reading Passed

Yes: 47 • No: 0

House vote • 2/27/2025

Third Reading Passed

Yes: 129 • No: 5

Actions Timeline

  1. Approved by the Governor - Chapter 461

    5/13/2025

  2. Returned Passed

    4/4/2025House

  3. Third Reading Passed (47-0)

    4/3/2025Senate

  4. Favorable Adopted Second Reading Passed

    4/2/2025Senate

  5. Favorable Report by Education, Energy, and the Environment

    3/31/2025Senate

  6. Referred Education, Energy, and the Environment

    2/28/2025Senate

  7. Third Reading Passed (129-5)

    2/27/2025House

  8. Motion Special Order until End Of This Calendar (Delegate Korman) Adopted

    2/27/2025House

  9. Second Reading Passed with Amendments

    2/25/2025House

  10. Favorable with Amendments {823326/1 Adopted

    2/25/2025House

  11. Favorable with Amendments Report by Environment and Transportation

    2/24/2025House

  12. Hearing 2/05 at 2:00 p.m.

    1/15/2025House

  13. First Reading Environment and Transportation

    1/8/2025House

  14. Pre-filed

    11/1/2024House

Bill Text

  • Enacted

    5/13/2025

    PDF

  • Third Reading

    2/25/2025

    PDF

  • First Reading

    1/8/2025

    PDF

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