Bay programs seek funding clarity as goal dates shift to 2040; Conowingo settlement and whole-watershed strategy questioned
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Summary
DLS told the subcommittee Maryland reduced nitrogen loads but will not meet the 2025 load target; the revised Chesapeake Bay watershed agreement extends the target period to 2040. DLS and legislators pressed agencies about the Whole Watershed Act's minimal agricultural project spending in selected watersheds and the Conowingo settlement funding and studies on dredging effectiveness.
DLS presented a non-budgeted Chesapeake Bay overview that combined water-quality progress updates with budget and programmatic concerns, and subcommittee members pushed agency leaders for clarity on how funds will be used going forward.
Legislative analyst Andrew Gray said Maryland achieved a reduction of about 1.9 million pounds of nitrogen between calendar 2023 and 2024 but will not meet the 2025 total maximum daily load (TMDL) target, a shortfall driven in part by out-of-state loads. DLS summarized FY27 budget changes that boost Bay restoration funding by about $113.2 million relative to FY26, including increases in land-preservation funding and additional resources for SHA TMDL compliance and for MDE's water-quality revolving loan fund.
Gray raised a programmatic concern: the Whole Watershed Act selected projects appear to underweight agricultural conservation within watersheds that were identified as having agricultural-sector priorities. DLS cited an example where agricultural conservation appeared to represent only $220,000 of roughly $11.2 million in selected project spending, and recommended the administration provide a fuller accounting of Whole Watershed Act fund authorizations and program interactions.
Agency leaders—DNR Secretary Josh Kurtz, MDE Secretary McElwain, and MDA Secretary Addicks—explained how multiple fund sources and a state management team coordinate project selection and implementation. DNR emphasized that some projects selected were already underway and that Whole Watershed Act funding often seeds local projects that are then expanded with agricultural cost-share programs and land preservation supports.
Agencies also addressed the Conowingo Dam relicensing and settlement agreements. DLS noted a potential settlement amount increase (press coverage cited $240–245 million versus earlier $200 million) and raised questions about how settlement proceeds and the previously allocated $25 million for Susquehanna-basin projects will be used. Agencies said rounds of project funding have been allocated but some transferring actions and budget amendments still need completion.
DLS recommended continued committee narrative and administration briefings on multiple Bay-related items, including the Whole Watershed Act funding picture, Conowingo settlement disbursements, enhanced nutrient removal proposals for wastewater plants, and the policy implications of extending the restoration deadline to 2040. Agency officials emphasized the need for coordinated long-term financing and additional private capital to meet the revised goals and asked for ongoing legislative engagement.
The subcommittee closed the Bay overview portion after committee members requested more detailed reporting on funding allocations and the Conowingo settlement accounting.
