HB 177
Department of Legislative Services
Maryland General Assembly
2020 Session
FISCAL AND POLICY NOTE
Third Reader - Revised
House Bill 177 (Chair, Environment and Transportation Committee)
Environment and Transportation and Education, Health, and Environmental Affairs
Appropriations
Environment – Water Infrastructure Assets – Authorization of Emergency
Actions
This bill modifies provisions related to the Maryland Department of the Environment’s
(MDE) authority to respond to an emergency situation related to a “water infrastructure
asset,” defined as a reservoir, dam, or any other waterway construction. A water
infrastructure “asset owner” must reimburse MDE for costs incurred, and a lien must be
established for nonpayment under specified circumstances. The bill also establishes legal
protections for MDE and the State. The bill takes effect July 1, 2020.
Fiscal Summary
State Effect: MDE can implement the bill with existing staff. State revenues from
reimbursements may increase due to the bill’s reimbursement and lien provisions, but any
reimbursements cannot be predicted. To the extent that the bill’s liability provisions result
in avoidance of damages awarded against MDE that would otherwise be awarded under
existing statute, special fund expenditures from the State Insurance Trust Fund decrease.
Local Effect: The bill does not directly affect local finances or operations.
Small Business Effect: Minimal or none.
Analysis
Bill Summary: An “asset owner” is the owner or person having control of a water
infrastructure asset.
Authorized Emergency Action
MDE may take emergency actions necessary to protect life, property, or the environment
if (1) MDE determines that a water infrastructure asset is in imminent danger of failure,
MDE has issued specified notice to the asset owner, and the owner has not completed the
work within the time prescribed in the notice or (2) MDE determines that a water
infrastructure asset is failing and the asset owner is not taking adequate actions to protect
life, property, or the environment. Authorized emergency actions include (1) taking control
of the water infrastructure asset; (2) lowering the level of water or completely releasing all
water impounded by the water infrastructure asset, as specified; (3) performing any
necessary remedial or protective work onsite; and (4) taking any other steps MDE deems
necessary to safeguard life, property, or the environment.
If MDE takes control of a water infrastructure asset, MDE must remain in charge and
control of the asset until MDE has determined that the water infrastructure asset is safe or
the circumstances requiring the emergency actions have ceased.
MDE or its agents may enter any property without prior notice to the property owner if the
entry is necessary to carry out emergency actions. MDE may also obtain equipment,
personnel, and other resources for emergency actions taken pursuant to the bill through any
appropriate means, including specified emergency procurements.
Required Reimbursements and the Establishment of Liens for Costs Not Reimbursed
Costs incurred by MDE for emergency actions constitute a debt owed to the State; an asset
owner, including an association, must reimburse MDE for such costs. The bill repeals an
authorization for MDE to not charge an owner for required repair or removal work if the
owner demonstrates an inability to pay.
The bill establishes provisions regarding the establishment of a lien in the event that an
asset owner does not reimburse MDE for costs incurred within a specified timeframe.
Legal Protections and Related Liability Provisions
The bill establishes protection from liability for damages brought against the State, MDE,
and their respective agents or employees for the recovery of damages caused by the partial
or total failure of a water infrastructure asset or the control or operation of any water
infrastructure asset on specified grounds.
Nothing in the bill and related provisions of law, and no act or omission of MDE, can be
construed to relieve an asset owner of (1) the legal duties, obligations, or liabilities incident
to the ownership or operation of a water infrastructure asset or (2) any liability for acts or
HB 177/ Page 2
omissions of the asset owner that cause injury, death, specified damage, or violation of any
law, regulation, or permit, even if acts or omissions of MDE could be deemed an
intervening cause of such injury, death, damage, or violation.
Current Law/Background: MDE’s Dam Safety Program is responsible for regulating
the design, construction, operation, and maintenance of dams in Maryland to prevent dam
failures and the consequences of failure. MDE conducts inspections based on hazard
classes of dams; issues permits for construction, repairs, and modifications; conducts
construction inspections; and works with dam owners and emergency management
professionals to develop and exercise an emergency action plan in the event of a dam
failure.
If MDE determines that a reservoir, dam, or similar waterway construction is unsafe, needs
repair, or should be removed because the structure is unsafe and not repairable, MDE must
notify the owner and provide a timeframe for completion of the repair or removal. If the
work is not completed within this timeframe, MDE has the authority to conduct work,
completed at the expense of an owner of a reservoir, dam, or similar waterway construction,
for public safety reasons. MDE must charge an owner for this expense (unless
MDE determines the owner is unable to pay) and may bring an action in the proper court
to recover any expenses if repayment is not made in a timely manner.
MDE has the authority to issue an injunction against a person who violates Title 5,
Subtitle 5 of the Environment Article (Appropriation or Use of Waters, Reservoirs, and
Dams), and a violator is liable for a civil penalty of up to $5,000 per violation; each day is
a separate violation. Before bringing a civil action against a local government, MDE must
meet and consult with the local government to seek an alternative resolution to the
contested issue. Criminal penalties also apply. All funds collected by MDE under these
enforcement provisions are deposited into the Maryland Clean Water Fund.
According to MDE, Maryland has more than 600 active dams in the State. Of these, 95 are
classified as high hazard and 147 are classified as significant hazard. There are 31 high- and
significant-hazard dams that are owned by a homeowners or condominiums association.
Failure of a high-hazard dam would likely result in loss of human life and extensive
property damage to homes and infrastructure or cause flooding of major highways and
State roads. Failure of a significant-hazard dam may result in the loss of human life and
cause significant flood risks to downstream buildings and roads. Further, MDE notes that
the aging of Maryland’s dam infrastructure, especially with increasingly volatile weather,
will likely result in more dams classified as “unsafe.” The majority of dams in Maryland
are more than 50 years old, which is beyond the useful life of various components.
HB 177/ Page 3
 Additional Information
Prior Introductions: None.
Designated Cross File: None.
Information Source(s): Maryland Department of the Environment; Comptroller’s Office;
Judiciary (Administrative Office of the Courts); Montgomery County; Maryland
Association of Counties; cities of Hagerstown and Laurel; Maryland Municipal League;
Department of Legislative Services
Fiscal Note History: First Reader - February 16, 2020
rh/lgc Third Reader - March 16, 2020
Revised - Amendment(s) - March 16, 2020
Revised - Updated Information - March 16, 2020
Analysis by: Kathleen P. Kennedy Direct Inquiries to:
(410) 946-5510
(301) 970-5510
HB 177/ Page 4


Statutes affected:
Text - First - Environment - Water Infrastructure Assets - Authorization of Emergency Actions and Establishment of Emergency Reserve: 5-509 Environment, 91-605.2 Environment, 5-509 Environment, 2-008 Environment
Text - Third - Environment – Water Infrastructure Assets – Authorization of Emergency Actions: 5-509 Environment, 91-605.2 Environment, 5-509 Environment, 2-008 Environment