Committee approves MDE fee package with dam‑safety registration, septic/well permit fees and increased air fees; Hester amendments set registration caps and waq

The Education, Energy, and the Environment Committee voted to report Senate Bill 250, a departmental bill from the Maryland Department of the Environment (MDE) that increases multiple fees and penalties used to fund the department's programs and creates a new special fund for dam safety.

Why it matters: the bill would shift certain program costs from general revenues to fee payers, authorize new permit and registration fees, and create a dam safety fund to assist private dam owners with repairs. Committee amendments changed the structure and timing of several fees and added exemptions and hardship waivers for small dams.

What the bill would do (as amended)

- Air program: increase the statutory cap for emissions‑based air quality operating permit fees (the draft raised the cap to $200 per ton; a later amendment reduced the cap to $100). MDE told the committee the fee cap of $200 would be sufficient to cover federally delegated permitting costs; $100 would not fully cover that need.

- Septic and well permits: authorize MDE to charge fees in counties where local health departments do not perform those permitting functions; fees capped but may be indexed for inflation.

- Oil transfer fee: raise the per‑barrel fee (structured in the bill to increase to 9¢ and then revert on schedule unless extended by future action).

- Dam safety: require dam owners to register with MDE and pay an annual registration fee (staggered by hazard classification). Hester amendments exempt small low‑hazard dams from registration and delay the registration requirement until 01/01/2027; they set explicit registration fees (e.g., $200 low, $500 significant, $1,000 high hazard) and require a hardship waiver process. The amendments also capped construction permit fees at a percentage of estimated construction cost (a top cap of 3%) and required the department to establish a hardship waiver process.

- Special fund and assistance: the bill creates a new special fund financed by registration and hazard‑based fees and authorizes the fund to provide financial assistance to dam owners requiring repairs.

- Coal combustion: broaden the annual fee base for coal combustion byproduct generators to include landfilled or stored coal ash that causes environmental harm.

Committee debate and amendments

Senator Hester's amendments were the most consequential for dam safety: they delayed statewide registration, exempted small low‑hazard dams, set fee levels, created a waiver for owners who cannot pay, and asked MDE to notify affected owners in advance. MDE staff (Lee Curry, director of Water and Science Administration) told senators the 3% cap mirrors some other states' approaches and that Maryland's dam inventory contains roughly 557 structures (about 261 privately owned).

Senator Washington proposed several amendments that the committee accepted in part; she removed a provision that would have funneled excess Clean Air Fund balances into the general fund, modified the proposed air‑permit cap downward in negotiation with MDE, and restored certain oil‑transfer licensing language. MDE agreed to some but not all of the sponsor's changes; the final package included MDE's requested technical amendments as well.

Vote and action

The committee adopted Hester and MDE amendments, accepted agreed Washington amendments, and voted to report the bill favorably as amended. Senator Washington moved favorable; Senator Hester seconded. The roll call on the final amended bill was: Aye — Kagan, Augustine, Watson, Otter, Attar, Brooks, Hester, Washington, Feldman; No — Gallien, Carozza, Simon‑Air (recorded as "No" in the roll call). The motion carried, 8–3.

Implementation notes and next steps

MDE acknowledged it will need additional program resources to implement some provisions and that the plan is for fees and registration revenue to cover administrative costs. Senators asked for follow‑up on which dams are on Maryland's inventory, how many are privately owned, and how MDE will notify owners; the Hester amendment requires MDE to notify owners on or before 10/01/2025 and 10/01/2026 ahead of the 01/01/2027 registration date.

Ending: Sponsors said they would continue to refine legislative language as needed. The committee moved the bill favorably to the next chamber stage.