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GUIDANCE FOR IMPLEMENTING SB 554 CHESAPEAKE BAY NITROGEN
REDUCTION ACT OF 2009 AND THE BAY RESTORATION FUND
What are the Requirements of SB 554?
SB 554 requires that, on property owned in the Critical Area,
all onsite sewage disposal systems (OSDS) serving newly
constructed buildings and all replacement OSDS include
the best available technology for removing nitrogen (BAT). In
those circumstances where a residence or other building is
being altered and the Approving Authority determines that the
existing OSDS is not adequate to serve the proposed altered
building, BAT is necessary.
In those circumstances where a residence or other building is
being altered and the Approving Authority determines that the
existing OSDS is adequate to serve the proposed altered
building, a BAT upgrade is not required. Minor repairs to an
OSDS such as a clogged or broken pipe do not require a BAT
upgrade.
What is the Critical Area?
The Critical Area includes all lands within 1,000 feet of
the mean high water line of tidal waters or wetlands of the
Chesapeake and Coastal Bays and their tidal tributaries.
Why this Emphasis on critical Area?
The Department estimates that 80 percent of the nitrogen
leaving a septic system in the Critical Area reaches surface
water while 30 percent of the nitrogen from a septic system
greater than 1,000 feet for any surface water actually
reaches surface water.
What if Only Part of a Property is in the
Critical Area?
If part of the property is in the Critical Area then the
provisions of SB 554 apply.
When Does SB 554 Apply?
SB 554 became affective October 1, 2009. Approving
Authorities should notify all applicants and contractors that
any system installation started after October 1, 2009, in
the Critical Area, will have to include BAT. Systems for
which permits were issued prior to October 1, 2009 shall
be considered started, and BAT will not be required.
What Constitutes a BAT?
Best Available Technology for Nitrogen Removal (BAT) means
an OSDS nitrogen removal system approved for use and funding
in the Bay Restoration Fund (BRF).
A list of approved BAT systems can be found at:
http://www.mde.maryland.gov/Water/CBWRF/osds/brf_bat.asp
Information on the BAT approval process can be found at:
http://www.mde.maryland.gov/Water/CBWRF/osds/brf_bat_process.asp
What Financial Assistance is Available?
Based on the availability of funds in accordance with the
Annotated Code of Maryland, the BRF can pay for the cost
difference between a traditional system and one that includes
BAT. The Annotated Code specifies that grants can be made
for up to 100 percent of the BAT cost, with priority first
given to failing systems and holding tanks located in the
Chesapeake and Atlantic Coastal Bays Critical Area and then
to failing systems that the Department determines are a
threat to public health or water quality.
Additional financial assistance may be available though the
following programs:
Maryland Housing Rehabilitation Program:
http://www.mdhousing.org/Website/programs/ProgramList.aspx
MDE’s Linked Deposit Program:
http://www.mde.maryland.gov/Programs/WaterPrograms/Water_Quality_Finance/Link_Deposit/index.asp
What is a Failing OSDS?
For the purpose of prioritizing BRF awards, the Department
considers an OSDS to be failing when the continued operation
of the system presents an imminent threat to public health. There
is either the possibility of human contact with sewage through
a system that directly discharges to the ground surface,
surface water or backs up into a building or the system has
been identified as contaminating a specific drinking water supply.
In those circumstances where a private inspector determines a
septic system is failing as part of a property transfer inspection,
the system will be given the same priority as a failing system
provided the disposal portion of the system is actually replaced.
What is the Status of Bay Restoration Fund Grant Availability?
The Department is now targeting all available BRF grants towards
upgrading failing septic systems in the Critical Area. Applicants
with a failing system in the Critical Area will continue to be
awarded grants, however for awards made after January 1, 2010,
the amount will be based on income based sliding scale. The
Department will reassess the availability of the BRF for other
priorities by July 1, 2010, at which time available funds will
then be targeted to applicants from the waitlist. Reimbursement
will not be available to applicants that proceeded with a BAT
upgrade at their own expense. The following prioritization applies:
1. Failing OSDS or holding tanks in the critical area
2. Failing OSDS or holding tanks not in the critical area
3. Non-failing OSDS in the critical area
4. Non-failing OSDS outside the critical area
What is Meant by Income Based Sliding Scale?
To ensure that grants are available for all repair and replacement
septic systems in the Critical Area and to provide an equitable
distribution of the limited BRF, effective January 1, 2010, grants
for upgrading on-site sewage disposal systems will be awarded on a
sliding scale based on federal income tax brackets. Grant
commitments made prior to January 1, 2010 will be honored for the
amount of the original commitment. All commercial property,
rental property, seasonally occupied property, non-residential
property, non-primary dwellings and property not owner occupied
will be eligible for a grant not to exceed 25 percent. The amount
of the grant for an owner occupied primary residential property
is a percentage based on federal income-tax brackets for 2008.
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% grant
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Tax rate
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2008 taxable income
Married couples
filing jointly or Household Income
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2008 taxable income
Single filers
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100
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10 % to 15 %
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Up to $65,100
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Up to $32,550
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75
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25 %
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$65,101 to $131,450
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$32,551 to $78,850
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50
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28 %
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$131,451 to
$200,300
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$78,851 to $164,550
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25
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33 % to 35 %
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Over $200,301
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Over $164,551
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What are the Requirements for Operation and Maintenance (O&M)?
As a condition of being approved as a BAT in Maryland, the upfront cost
of a BAT is to include five years of operation and maintenance.
For this five-year period, each BAT system shall be inspected and have
necessary operation and maintenance performed by a certified service
provider at a minimum of once per year but at least at the frequency
the manufacturer or engineer determines is necessary.
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