The close of 2013 saw several developments in environmental regulatory matters that Maryland businesses and individuals should consider as they make plans for the coming year and beyond.  A common theme in many of these state programs and initiatives is the role and cost of stormwater management and how many of them are connected to and dependent on one another.  Because of these issues, businesses are encouraged to take a larger and long-term view of what is being required, what is likely to be required and what may be done in response.  As the 2014 General Assembly session begins on January 8th, businesses should carefully evaluate how these recent developments may affect their operations and budgets. 

By: Bryan Sears, The Daily Record
Daily Record Business Writer

… “Most business owners are reasonably comfortable paying fees and taxes when they know it will actually make a difference,” said M. Trent Zivkovich, a Baltimore attorney at Whiteford Taylor Preston LLP. “That being said, there is a great deal of frustration about the implementation and application of the program in the counties in terms of the fees’ charges and the credits that are available in some counties but not in others.”

This article is one in a series presenting information on the current status of local legislation implementing stormwater fees in ten jurisdictions across Maryland. For background on the stormwater fees and their purpose, please see this earlier article.  This article summarizes information on the ability for property owners to appeal the imposition of the fees and to obtain credits and rebates against the fees.

Maryland has new local stormwater fees that will be implemented in certain counties beginning July 1, 2013.

Maryland has new stormwater fees that are being implemented in certain counties by this upcoming July 1st.

In late 2010, the EPA issued the Chesapeake Bay Total Maximum Daily Load (“TMDL”), effectively establishing a “pollution diet” for nitrogen, phosphorus and sediment discharges to surface waters that the six Bay watershed states and the District of Columbia must meet by 2025.  The Maryland Department of the Environment determined that stormwater runoff contributes about 18% of the nitrogen and 22% of the phosphorus loads flowing to the Bay from our state.  In order for Maryland to follow its “pollution diet”, the state's plans call for improvements to stormwater management practices contributing about 17% of nitrogen reductions and about 45% of the phosphorus reductions necessary to meet the TMDL goals.  Current estimates of the cost to implement these stormwater improvements are approximately $7.4 billion statewide through 2025.  Failure of a state to meet its pollution diet may result in the EPA withholding federal funding for state water management programs, the withdrawal of state authority to manage and issue all water discharge permits, and potentially significant fines.

Maryland has new stormwater fees that are being implemented county-by-county.

On May 2, 2012, Governor O’Malley signed into law House Bill 987.  In short, the law requires jurisdictions within Maryland subject to a federal Municipal Separate Storm Sewer System (MS4) Phase I permit to establish a local stormwater protection and restoration program and implement a local stormwater fee to fund that Program by July 1, 2013. 

The 2012 Maryland General Assembly Session ended on April 9th with the passage of a number of bills that promise to have a significant impact on real estate and land development activities in Maryland.

Numerous programs exist that provide real financial benefits and market positioning opportunities for commercial and certain multi-family building owners looking to benefit from improvements in energy efficiency.  In fact, some owners are finding that the cost of modest capital improvements can be accounted for through reduced future utility expenses.   If these improvements allow an owner to then capitalize on available federal tax incentives, possibly save their tenants money and position themselves in the marketplace, the benefits can be substantial.

At the end of August, the Maryland Department of the Environment (MDE) proposed new Erosion & Sediment Control Regulations that will impact most land development activities across Maryland that disturb more than 5,000 square feet of land area and more than 100 cubic yards of earth.  The proposed regulations generally provide that no grading or building permit may be issued for a project unless an erosion & sediment control plan drafted in accordance with its requirements is first approved.

Effective September 15, 2011, the EPA has amended regulations that govern how, what, when and where companies report information required by the Toxic Substances Control Act (TSCA) concerning chemicals they manufacture or import.  This rule, formerly known as the Inventory Update Reporting (IUR) rule and now renamed the Chemical Data Reporting (CDR) rule, requires certain manufacturers (which, by regulation, includes importers) of chemicals listed on the TSCA Chemical Substances Inventory to report information about the manufacturing, importation, processing and use of those chemical substances.  Companies were last required to submit information to EPA under the IUR rule in 2006.