Maryland Bay Restoration Fund Flush Fee Update

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Maryland Bay Restoration Fund (Flush Fee) Update

• Presentation to the Maryland GFOA
• By
• Jag Khuman, Director
• Maryland Water Quality Financing Administration
• Maryland Department of Environment
• April 20, 2007

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Maryland Bay Restoration Fund

• Background
• Bay Restoration Fund (BRF) was created under SB
  320 during 2004 legislative session, which
  provides a dedicated source of revenue for
  nutrient (Nitrogen Phosphorus) reduction to the
  Chesapeake Bay.
• The BRF established two separate sub-funds
• a. Wastewater Fund
• b. Septic Fund

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Maryland Bay Restoration Fund

• BRF Fee
• A fixed 2.50/month (30/yr) fee per household
  collected with water/sewer bills - effective
  1/1/05 (commercial industrial users pay based
  on 250 gallons/day flow 1 EDU)
• A 30/yr fee per user of an onsite sewage
  disposal (septic) system or holding tanks to be
  collected by the County - effective 10/1/05 (60
  to MDE 40 to MDA)

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Maryland Bay Restoration Fund
Administrative Cost Allowance

• For BRF Fee billing and revenue collection
• Local governments/billing authorities - up to 5
  of the fee deposited to the State Comptrollers
  Office (Cumulative claims thru 3/31/07 show 1.08
  of fee deposits)
• State Comptrollers Office - up to 0.5 total
  fee deposits
• For wastewater septic fund program
  implementation
• MDE - Up to 1.5 of Wastewater Fund
• MDE - Up to 8 of MDE share of Septic Fund
• For cover crop program implementation
• MDA Statute Silent

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Maryland Bay Restoration Fund

• Exempted from Paying Fee (by Statute)
• County, Municipal Corporation, Bi-County or
  Multi-County Agency under Article 28 or 29 of the
  Code, Housing Authority under Article 44A of the
  Code, School Board, Community College, or any
  other Unit of the County or Municipal Corporation
  (Federal State Government not exempt)
•    

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Maryland Bay Restoration Fund

• Financial Hardship Exemption
• The law allows, subject to approval by the
  Maryland Department of the Environment, the
  billing authority to establish a program to
  exempt certain residential dwellings that
  demonstrate substantial financial hardship (As of
  March 2007, 24 billing authorities have approved
  financial hardship exemption programs)  

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Maryland Bay Restoration Fund
Septic Fund - Revenue Grant Awards

Septic Fund Fee Revenue Deposit (MDE/MDA) FY
2005 0.26M FY 2006 7.97M FY 2007
11.01M (thru 3/31/07) (Estimated 12M/yr
split 60 MDE, 40 MDA) MDE Grant Awards (thru
3/31/2007) Septic Projects 9.0M (10
entities)
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Maryland Bay Restoration Fund
Septic Fund - Fee Billing Options

• Bay Restoration Advisory Committee recommendation
• to County Governments on fee billing options
• A. Bill the septic fee along with property tax
  (starting July 05 with fee prorated for 3
  quarters) or
• B. Develop separate septic fee billing system
  (starting 10/1/05)
• (Most Counties opted for option A 3 did not
  start fee billing until July 06 - FY 07)

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Maryland Bay Restoration Fund
MDE Eligible Uses of the Septic Fund

• With priority given to onsite sewage disposal
  systems (septic systems) in the critical areas,
  provide grants or loans of up to 100 for the
• a. cost to upgrade septic systems with the best
  available technology for nitrogen removal,
• b. cost difference between a conventional system
  and a system that uses best available technology
  for nitrogen removal, or
• c. cost of repairing/replacing a failing
  septic system with best available technology for
  nitrogen removal or another wastewater treatment
  system (added during 2006 legislative session and
  applicable only to low- income owners)

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Maryland Bay Restoration Fund
MDE Septic Grant Awards (thru 3/31/07)

GRANTEE AWARD Anne Arundel Co. Health
Department 2,644,000 Calvert Co. Dept. of
Planning/Zoning 933,000 Charles Co.
Health Department 604,000 Frederick Co.
Health Department/Canaan Valley 712,000
Kent Co. Water and Wastewater Department
597,000 State DNR (Queen Anne's Co./Corsica)
287,000 Caroline Co. Health Department
144,000 Talbot Co. Dept. of Public
Works 1,168,000 Wicomico Co. Health
Department 771,000 Worcester Co. -
Environmental Programs 1,142,000
TOTAL 9,002,000
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Maryland Bay Restoration Fund
MDE Septic Grant Direct Applications

Owners of Septic Systems located in other areas
(i.e., not part of the10 entities awarded grant
to-date) can make direct applications to MDE.
Application form available on web site
http//www.mde.state.md.us/Water/CBWRF/osds_preap
p.asp MDE contact Jay Prager Water Management
Administration 410-537-3780
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Maryland Bay Restoration Fund
Wastewater Fund - Revenue Grant Awards

Wastewater Fund Fee Revenue Deposit (MDE) FY
2005 7.02M FY 2006 57.69M FY 2007
42.96M (thru 3/31/07) (Estimated Revenue
60M/yr) MDE Grant Awards (thru 3/31/2007) ENR
Projects 72.3M (27 projects) Sewer
Rehabilitation 5.8M (8 projects)
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Maryland Bay Restoration Fund
Eligible Uses of the Wastewater Fund

• Grants to WWTP owners of up to 100 of eligible
  cost of planning, design and construction of ENR
  upgrade (e.g., nitrogen reduction from 8mg/l to
  3mg/l) for flows up to the approved design
  capacity.
• Grant of up to 5M/yr for existing sewer system
  rehabilitation (FYs 2005 - 2009).
• Grant to WWTP owners of up to 10 of annual BRF
  wastewater fee revenue to off-set additional ENR
  operations and maintenance costs (Starting FY
  2010 Est. 6M/yr).

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Maryland Bay Restoration Fund
Wastewater Fund - ENR Goals

• First upgrade the 66 major WWTPs discharging to
  the Chesapeake Bay with ENR technologies. These
  66 major facilities treat 95 of the total
  Maryland sewage flow and will reduce nitrogen by
  an additional 7.5M lbs/yr and phosphorus by 0.26M
  lbs/yr.
• Next upgrade additional WWTPs based on ENR cost
  effectiveness, water quality benefit, readiness
  to proceed, and availability of funding.

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Chesapeake Bay Watershed
The nutrients causing water quality impairments
drain into the Chesapeake Bay via rivers from the
entire watershed.
New York
Pennsylvania
Maryland
Delaware
West Virginia
Chesapeake Bay Watershed Boundary
District of Columbia
Virginia
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Cap Load Allocations by State
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Maryland Annual Nutrient Loading Cap
Nitrogen 37.25 Million pounds
Phosphorus 2.92 Million pounds
20 million pound reduction needed
1.1 million pound reduction needed
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(No Transcript)
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Maryland Bay Restoration Fund
List of Major WWTPs

WWTP NAME OWNER COUNTY CELANESE
ALLEGANY Co. ALLEGANY CUMBERLAND
CUMBERLAND ALLEGANY GEORGES CREEK ALLEGANY
Co. ALLEGANY ANNAPOLIS ANNE ARUNDEL Co.
ANNE ARUNDEL BROADNECK ANNE ARUNDEL Co.
ANNE ARUNDEL BROADWATER ANNE ARUNDEL Co.
ANNE ARUNDEL COX CREEK ANNE ARUNDEL Co.
ANNE ARUNDEL DORSEY RUN STATE (MES) ANNE
ARUNDEL MARYLAND CITY ANNE ARUNDEL Co. ANNE
ARUNDEL MAYO LARGE COMMUNAL ANNE ARUNDEL Co.
ANNE ARUNDEL PATUXENT ANNE ARUNDEL Co. ANNE
ARUNDEL BACK RIVER BALTIMORE CITY (REGIONAL) PAT
APSCO BALTIMORE CITY (REGIONAL) CHESAPEAKE
BEACH CHESAPEAKE BEACH CALVERT
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Maryland Bay Restoration Fund
List of Major WWTPs

WWTP NAME OWNER COUNTY DENTON DENTON
CAROLINE FEDERALSBURG FEDERALSBURG
CAROLINE FREEDOM DISTRICT CARROLL
Co./MES CARROLL MOUNT AIRY MOUNT
AIRY CARROLL TANEYTOWN TANEYTOWN
CARROLL WESTMINSTER WESTMINSTER
CARROLL ELKTON ELKTON CECIL NORTHEAST
RIVER CECIL Co. CECIL PERRYVILLE PERRYVILLE
CECIL INDIAN HEAD INDIAN HEAD CHARLES LA
PLATA LA PLATA CHARLES MATTAWOMAN CHARLES
Co. CHARLES SWAN POINT CHARLES Co. CHARLES
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Maryland Bay Restoration Fund
List of Major WWTPs

WWTP NAME OWNER COUNTY CAMBRIDGE CAMBRID
GE DORCHESTER HURLOCK HURLOCK DORCHESTER BALL
ENGER CREEK FREDERICK Co. FREDERICK BRUNSWICK B
RUNSWICK FREDERICK EMMITSBURG EMMITSBURG
FREDERICK FREDERICK FREDERICK CITY
FREDERICK THURMONT THURMONT FREDERICK ABERDEEN
ABERDEEN HARFORD ABERDEEN (APG) FEDERAL
(DOD) HARFORD HAVRE DE GRACE HAVRE DE
GRACE HARFORD JOPPATOWNE HARFORD
Co. HARFORD SOD RUN HARFORD Co. HARFORD LITTLE
PATUXENT HOWARD Co. HOWARD
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Maryland Bay Restoration Fund
List of Major WWTPs

WWTP NAME OWNER COUNTY CHESTERTOWN CHEST
ERTOWN KENT POOLESVILLE POOLESVILLE MONTGOMERY
DAMASCUS WSSC MONTGOMERY SENECA
CREEK WSSC MONTGOMERY PARKWAY WSSC PRINCE
GEORGES PISCATAWAY WSSC PRINCE
GEORGES WESTERN BRANCH WSSC PRINCE
GEORGES BOWIE BOWIE PRINCE
GEORGES CENTREVILLE CENTREVILLE QUEEN
ANNES KNSG (KENT ISLAND) QUEEN ANNES
Co. QUEEN ANNES CRISFIELD CRISFIELD
SOMERSET PRINCESS ANNE PRINCESS
ANNE SOMERSET LEONARDTOWN LEONARDTOWN SAINT
MARYS MARLAY TAYLOR SAINT MARYS Co. SAINT
MARYS
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Maryland Bay Restoration Fund
List of Major WWTPs

WWTP NAME OWNER COUNTY EASTON EASTON
TALBOT TALBOT COUNTY REGION II TALBOT
Co. TALBOT CONOCOCHEAGUE WASHINGTON
Co. WASHINGTON HAGERSTOWN HAGERSTOWN
WASHINGTON MCI STATE (MES) WASHINGTON WINEBRE
NNER WASHINGTON Co. WASHINGTON DELMAR DELMAR
WICOMICO FRUITLAND FRUITLAND WICOMICO SALISB
URY SALISBURY WICOMICO POCOMOKE CITY POCOMOKE
CITY WORCESTER SNOW HILL SNOW
HILL WORCESTER BLUE PLAINS (WSSC SHARE) DISTRICT
OF COLUMBIA (REGIONAL) TOTAL ESTIMATED COST
ENR UPGRADES 1.014 BILLION (MARCH 2007)
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Maryland Bay Restoration Fund
Wastewater Fund - ENR Upgrade Status (3/31/2007)

WWTPs Completed 2 Under
Construction 11 Design 12
Planning 23 Pre-Planning 18
Total 66
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Maryland Bay Restoration Fund
Wastewater Fund - Projected ENR Grant Awards
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Maryland Bay Restoration Fund
Wastewater Fund - Projected Bond Issuance
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Maryland Bay Restoration Fund
Wastewater Fund - Est. ENR Construction Starts/Yr
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Maryland Bay Restoration Fund
Wastewater Fund - Cum. Awards vs. Funding Need
Deficit likely 200 million
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Maryland Bay Restoration Fund
Bay Restoration Fund Advisory Committee

• 18 members representing the state agencies,
  legislature, local governments, and environmental
  and business organizations (Provide an annual
  report each January 1)
• Key Responsibilities
• Perform an analysis of the cost of nutrient
  removal
• Identify additional sources of funding for the
  fund
• Make recommendations to improve effectiveness of
  fund
• Make recommendations on the appropriate fee to be
  assessed in FY 2008 and beyond

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Maryland Bay Restoration Fund
Construction Material Inflation vs. CPI
Source Bureau of Labor Statistics
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Maryland Bay Restoration Fund
MDE Grants and Loans -Wastewater Systems
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Maryland Bay Restoration Fund
In Summary

• Local Government Finance Budget Officials
• Dont expect 100 in ENR grants from BRF
• Expect higher construction bids than estimated
• Apply timely for MDE financial assistance

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• Maryland Department of the Environment
• Bay Restoration Fund
• For additional information visit MDE
• website at www.mde.state.md.us
• or call 410-537-3119