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MarylandSB 01172025 Regular SessionSenateWALLET

Environment - Bay Restoration Fund - Septic System Upgrade Program

Sponsored By: Katie Fry Hester (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

2 provisions identified: 2 benefits, 0 costs, 0 mixed.

More Homeowners Get Septic Funding Priority

Beginning July 1, 2026, Maryland expands priority for help repairing or replacing failing septic systems to low- and moderate-income homeowners. The Maryland Department of the Environment defines those income groups; funding favors best available nitrogen-removal technology, then other wastewater systems. For the 60% Bay Restoration Fund share used for septic assistance, failing systems and holding tanks in the Chesapeake and Atlantic Coastal Bays Critical Area come first. Next are failing systems in Maryland Chesapeake Bay 8-digit watersheds with a total-nitrogen-reduction relative effectiveness score of at least 9.24. Third are failing systems in the 500-year floodplain; fourth are failing systems the Department finds threaten public health or water quality. These priorities guide funding decisions but do not guarantee a grant or set an individual grant amount.

Rolling Age Rules for Sewer Help

Beginning July 1, 2026, Maryland replaces fixed age cutoffs for Bay Restoration Fund sewer assistance with rolling 15-year tests. For new community sewer projects, each lot needs an occupancy certificate, or equivalent, issued at least 15 years before July 1 of the application year. For municipal connections, the septic system must have been installed at least 15 years before that same date. Existing safeguards remain: local governments must document environmental impacts, and the Department must confirm them. Community sewer projects must remove more nitrogen per dollar than individual replacements, or individual replacement must be infeasible. Municipal connections must meet nitrogen-removal cost-effectiveness or individual-replacement feasibility requirements and match county comprehensive and water and sewer plans. Outside priority funding areas, municipal projects must meet the referenced state requirements and serve a qualifying public-health area identified in the county plan or certified by the county environmental health director with Department agreement. Those outside-area funding agreements must block future connections beyond the proposed service area and protect county funding for individual nitrogen-removal upgrades.

Sponsors & Cosponsors

Sponsor

  • Katie Fry Hester

    Democratic • Senate

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

All Roll Calls

Yes: 178 • No: 4

House vote • 4/7/2025

Third Reading Passed

Yes: 134 • No: 4 • Other: 3

Senate vote • 3/6/2025

Third Reading Passed

Yes: 44 • No: 0 • Other: 1

Actions Timeline

  1. Approved by the Governor - Chapter 460

    5/13/2025

  2. Returned Passed

    4/7/2025Senate

  3. Third Reading Passed (134-4)

    4/7/2025House

  4. Favorable Adopted Second Reading Passed

    4/5/2025House

  5. Favorable Report by Environment and Transportation

    4/5/2025House

  6. Hearing 3/26 at 1:00 p.m.

    3/19/2025House

  7. Referred Environment and Transportation

    3/7/2025House

  8. Third Reading Passed (44-0)

    3/6/2025Senate

  9. Second Reading Passed with Amendments

    3/4/2025Senate

  10. Favorable with Amendments {613121/1 Adopted

    3/4/2025Senate

  11. Favorable with Amendments Report by Education, Energy, and the Environment

    3/3/2025Senate

  12. Hearing 1/28 at 2:30 p.m.

    1/14/2025Senate

  13. Hearing canceled

    1/14/2025Senate

  14. Hearing 1/14 at 2:30 p.m.

    1/14/2025Senate

  15. First Reading Education, Energy, and the Environment

    1/8/2025Senate

  16. Pre-filed

    11/1/2024Senate

Bill Text

  • Enacted

    5/13/2025

    PDF

  • Third Reading

    3/4/2025

    PDF

  • First Reading

    1/8/2025

    PDF

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