Funding at Record Levels FY 2019 Budget Includes $1.2-billion for Chesapeake Bay Restoration Efforts! Highlights: $52.9-Million for Chesapeake and Atlantic Coastal Bays Trust Fund $253-milion (67-million) dedicated transfer tax programs like Open Space $306-million in Water Quality Revolving Loan Fund $70-million in Bay Restoration Funds for Wastewater Projects and $15-million for septic upgrades Before getting into some of the new funding initiatives, I wanted to first emphasize Maryland’s strong commitment to providing resources needed for local Bay Restoration efforts. Under Governor Hogan’s and the Bay Cabinet’s leadership, Maryland is committing historic levels of funding towards the Chesapeake Bay Restoration. FY19 marks the first year since 2008 that no funding from transfer tax programs, like program open space, will be diverted to the general fund. FY19 includes $1.2-billion in funding to help local government with water infrastructure, land preservation, and ecological restoration programs that can also help with local issues like flooding and climate resiliency. Our commitment to you is stronger than ever and we recognize that local governments are ground zero on Bay restoration.

Agencies have prepared fact sheets with funding sources provided in your packet Since there are more resources out there than what I am going to highlight, we have provided handouts on funding and other resources out these to help you with your local implementation efforts. Please consult these resources and share them with your team. Program contacts are provided in case you have specific programmatic questions.

Status of New Programs and Funding Clean Water Commerce Act Water Quality Trading Septic Stewardship Some of the newer funding and innovation programs I want to highlight are the Clean Water Commerce Act, Nutrient Trading and Septics stewardship.

Clean Water Commerce Act $6-million in FY19, $10-million in 2020 & 2021 (sunset) Incentivizes most cost-effective pollution reductions Regulations were adopted in March 2018 and request for proposals/solicitation will be posted shortly, possibly in June. Allows BRF $ to be used for N, P, and Sediment load reductions (in addition to CSO/SSO, septic connections and stormwater) Agricultural Sector excluded Point of Contact: Walid Saffouri, walid.saffouri@maryland.gov Cost-effective solutions, pay for performance and public/private partnerships. Ag. not included because the primary focus of the fund is to address urban sources.

Water Quality Trading Program Creates marketplace for achieving sector pollution limits, stimulates sector participation, expands compliance options, incentivizes innovation and lowers costs. Allows N, P and Sediments trading between Sectors (Agricultural, Stormwater, Wastewater and On-Site systems) as long as local WQ met and baselines are met. Necessary administrative process and permit modifications are still underway Credits must be certified, verified/maintained, registered, and include uncertainty, edge of tide, and reserve ratios. Trading geography: Patuxent, Potomac, Eastern/Western Shores & Susquehanna Final Regulations expected to be published by the end of June and effective by mid July. Point of Contact: Marya Levelev, marya.levelev@maryland.gov In short, purpose is to stimulate a restoration economy by allowing cross-sector availability of pollution reduction credits.

Septic Stewardship In FY2020 and 2021, financial assistance to local jurisdictions to develop septic stewardship plans. Provides financial assistance (grants, rebates or loans) to eligible homeowners for the reasonable cost of pump outs. Homeowner must verify pump out and must be in septic stewardship plan jurisdiction. Department is reviewing the need for regulations. Point of Contact: Naomi Howell, naomi.howell@maryland.gov Creates another use of the BRF.

How Else Can the State Help? Are there local barriers to using State funds? Are there barriers with spending local stormwater funds or getting projects in the ground? Are there challenges with BMP verification and maintenance to ensure ongoing pollution credit? Are there local funding innovations or collaborations that are accelerating progress? Other barriers or challenges? Be thinking about these, and other questions, as you hear the next presentation from the watershed specialists and we want to hear our thoughts during the Q&A.