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Governor
Ehrlich’s Bay Restoration Fund (Senate Bill 320)
On May 26, 2004, Governor Ehrlich
signed Senate Bill 320 (Bay Restoration Fund) into law. The
Chesapeake Bay has experienced a decline in water quality due to
over enrichment of nutrients (mainly phosphorus and nitrogen).
Effluent from wastewater treatment plants is one of the three major
contributors of nutrients entering the Bay (urban and agricultural
runoffs are the other two). The purpose of the bill is to create a
dedicated fund, financed by wastewater treatment plant users, to
upgrade Maryland’s wastewater treatment plants with enhanced
nutrient removal (ENR) technology so they are capable of achieving
wastewater effluent quality of 3 mg/l total nitrogen and 0.3 mg/l
total phosphorus. In addition, a similar fee to be paid by septic
system users will be utilized to upgrade onsite systems and to plant
cover crops to remove nitrogen from the soil before it leaches into
the Bay. By signing this bill, Governor Ehrlich has initiated
Maryland’s efforts to further reduce nitrogen and phosphorus loading
in the Bay by over 7.5 million pounds of nitrogen per year and over
260 thousand pounds of phosphorus per year, which represent over
one-third of Maryland’s commitment under the Chesapeake Bay 2000
Agreement.
Wastewater Treatment Plants Fund: A $2.50 monthly fee
will be collected from each residential customer served by a
wastewater treatment plant. Commercial, industrial and other
non-residential users will be charged at the rate of $2.50 per month
per equivalent dwelling unit (EDU). One EDU equals 250 gpd (gallons
per day) of water used. Fees from wastewater treatment plant users
will generate an estimated $65 million per year. To expedite the
implementation of the program, the Department may issue bonds backed
in full or in part by funds generated under this program. The 66
major facilities discharging to the Chesapeake Bay have priority.
Other facilities will be considered on case-by-case basis in
consideration of cost-effectiveness, water quality benefits,
readiness to proceed, and nitrogen/phosphorus load.
Septic Systems Fund: A
$30 annual fee will be collected from each home served by an onsite
system. The total estimated program income is $12.6 million per
year. Sixty percent of these funds will be used for septic system
upgrades and the remaining 40 percent will be used for cover crops.
There are 420,000 onsite systems in Maryland. With priority given
to failing septic systems in Critical Areas, funds can be provided
for upgrades of existing systems to best available technology for
nitrogen removal or for the marginal cost of using best available
technology instead of conventional technology.
MetCom’s Responsibilities:
The Commission is charged with collecting Bay Restoration fees from
its customers beginning in January of 2005. This includes customers
connected to the Public Wastewater System and customers connected to
a Public Water System who have Onsite Septic Systems. A $2.50 fee
will be added to the Monthly Bill received by each residential
customer that is served by the public wastewater system or by an
onsite system. A $2.50 fee for each EDU of water used (1 EDU = 250
gpd or 7500 gallons/month of water used) will be added to the
Monthly Bill received by each Non-Residential customer. This will
be calculated at a rate of $0.334 per 1000 gallons used up to
22,500,000 gallons per month, then at $0.167 per 1000 gallons used
from 22,500,001 to 37,500,000. Senate Bill 320 also includes
language that may allow the Commission to exempt a residential
customer who can demonstrate that the Restoration Fee creates a
“substantial financial hardship” from paying the fee.
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