SB 116
Department of Legislative Services
Maryland General Assembly
2021 Session
FISCAL AND POLICY NOTE
Third Reader
Senate Bill 116 (Senator Kagan, et al.)
Education, Health, and Environmental Affairs Environment and Transportation
Department of the Environment - Office of Recycling - Recycling Market
Development
This bill requires the Maryland Department of the Environment’s (MDE) Office of
Recycling to promote the development of markets for recycled materials and recycled
products in the State, as specified. The bill establishes various requirements for the office,
including expanded reporting requirements, and requires the office to coordinate its
activities with the Department of Commerce, the Department of General Services (DGS),
the Maryland Department of Transportation (MDOT), the Maryland Environmental
Service (MES), the Northeast Maryland Waste Disposal Authority, local governments, and
private organizations.
Fiscal Summary
State Effect: General/special fund expenditures increase by $67,700 in FY 2022; future
years reflect annualization. Minimal increase in nonbudgeted revenues and expenditures
beginning in FY 2022. Otherwise, State revenues are not affected.
(in dollars) FY 2022 FY 2023 FY 2024 FY 2025 FY 2026
NonBud Rev. - - - - -
GF/SF Exp. $67,700 $80,100 $82,200 $84,900 $87,600
NonBud Exp. - - - - -
Net Effect ($67,700) ($80,100) ($82,200) ($84,900) ($87,600)
Note:() = decrease; GF = general funds; FF = federal funds; SF = special funds; - = indeterminate increase; (-) = indeterminate decrease
Local Effect: It is assumed that local governments can coordinate with MDE with minimal
operational and/or fiscal impact. Local governments may benefit operationally and fiscally
from increased local recycling opportunities, as discussed below.
Small Business Effect: Potential meaningful.
 Analysis
Bill Summary: The bill requires the Office of Recycling to take several actions to promote
the development of markets for recycled materials and recycled products, including
(1) evaluating the availability of local, national, and international markets for recycled
materials and products; (2) identifying the recyclable materials representing the largest
portion of the recycling waste stream; (3) identifying businesses in the State that use
recycled materials and opportunities for businesses in the State to increase their use of
recycled materials; (4) establishing and promoting the “Maryland is Open for Recycling
Business” campaign to attract new businesses to the State; and (5) providing advisory and
technical services to support the development of markets for recycled materials and
recycled products in the State.
By July 1, 2022, Commerce, DGS, MDOT, and MES must report to the office on relevant
programs, tools, training guides, campaigns, and technologies available for promoting the
development of markets for recycled materials and recycled products in the State, including
efforts in State government to increase the use, reuse, and remanufacturing of recycled
materials and the use of recycled products. By September 1, 2022, and annually thereafter,
the annual Maryland Solid Waste Management and Diversion Report must include the
activities conducted pursuant to the bill.
The bill expresses the General Assembly’s intent that the office seek input from all
interested parties to develop a comprehensive understanding of the programs, tools,
training guides, and technologies available to promote the development of markets for
recycled materials and recycled products in the State. The bill also expresses the
General Assembly’s intent that DGS, Commerce, and MDOT assist the Office of
Recycling in developing markets for recycled materials and recycled products.
The bill repeals a current law requirement for MES and MDE to report biannually to the
Governor and the General Assembly on the availability of local, national, and international
markets for recycling materials.
Current Law: Maryland’s recycling policy is guided by the Maryland Recycling Act,
which sets mandatory recycling rates for State government and local jurisdictions, as well
as a voluntary statewide waste diversion goal of 60% and a voluntary statewide recycling
goal of 55% by 2020. Each county (including Baltimore City) must prepare a recycling
plan that addresses how the jurisdiction will achieve its mandatory recycling rate. The plan
must be submitted to MDE’s Office of Recycling for approval when the jurisdiction
submits its water and sewerage plan at least every 10 years. At least every 2 years, each
county must also submit a progress report to MDE, which must include any revision of or
amendment to the county plan that has been adopted.
SB 116/ Page 2
MDE’s Office of Recycling submits annual reports, in coordination with MES, to the
Governor and the General Assembly on specified information related to recycling in
Maryland. Beginning in 2009, MDE has combined the Maryland Waste Diversion
Activities Report and the Solid Waste Managed in Maryland Report into one report, the
Maryland Solid Waste Management and Diversion Report.
State Fiscal Effect: General/special fund expenditures increase by $67,692 in fiscal 2022,
which accounts for the bill’s October 1, 2021 effective date. This estimate reflects the cost
of hiring one natural resources planner to (1) conduct research on available and potential
markets for recyclable materials; (2) research the types and quantities of recyclable
materials generated in the State; (3) identify opportunities for businesses in Maryland to
use recycled materials; (4) identify existing funding mechanisms for recycling market
development; (5) conduct outreach and establish and promote a “Maryland is Open for
Recycling Business” campaign; and (6) annually report on the activities conducted
pursuant to the bill. It includes a salary, fringe benefits, one-time start-up costs, and
ongoing operating expenses, including travel costs.
Position 1
Salary and Fringe Benefits $55,743
Operating Expenses 11,949
Total MDE Fiscal 2022 Costs $67,692
Future year expenditures reflect a full salary with annual increases and employee turnover
and ongoing operating expenses. Funding for this position would normally come from the
State Recycling Trust Fund, which is a special fund, but there is not enough available
funding in that special fund to fully cover the costs of the new position. Thus, this analysis
assumes that a combination of general funds and special funds are used.
Commerce, DGS, and MDOT can likely submit the required report to MDE, collaborate
with MDE on an ongoing basis, and assist MDE in the development of markets for recycled
materials and recycled products with existing budgeted resources. For context, MDOT
estimates that costs are approximately $2,000 annually for existing staff to fulfill the
department’s duties under the bill.
Based on information provided for identical legislation considered during the 2020 session,
it is anticipated that MES’ nonbudgeted expenditures increase to submit the required report
to MDE and to collaborate with MDE on an ongoing basis. Since this project is likely not
billable, staff costs to implement the bill are charged to MES overhead, and agency
operating costs increase. It is assumed that MES increases its overhead rates to cover these
costs, resulting in a corresponding increase in nonbudgeted revenues.
SB 116/ Page 3
Local Fiscal Effect: It is assumed that local governments and the Northeast Maryland
Waste Disposal Authority can coordinate with MDE with only a minimal fiscal and/or
operational impact. Additionally, local governments may benefit from increased and
potentially lower cost recycling opportunities. Most local governments have incurred
increases in recycling costs in recent years. If local recycling markets are more readily
available as a result of the bill, local governments benefit.
Small Business Effect: To the extent the bill results in additional markets for recyclable
materials in Maryland, small businesses that collect, haul, and process recyclable materials
may benefit. In the past, MES has reported that few processors of recyclable commodities
are located in Maryland; most of the commodities produced at recovery facilities in
Maryland are shipped out-of-state or exported for recycling.
Additional Information
Prior Introductions: House Bill 1452 of 2020 passed the House with amendments and
was referred to the Senate Education, Health, and Affairs Committee, but no further action
was taken.
Designated Cross File: HB 164 (Delegates Stein and Lierman) - Environment and
Transportation.
Information Source(s): Anne Arundel, Charles, Frederick, and Montgomery counties;
Department of Commerce; Northeast Maryland Waste Disposal Authority; Maryland
Department of the Environment; Department of General Services; Maryland Department
of Transportation; Department of Legislative Services
Fiscal Note History: First Reader - January 14, 2021
rh/lgc Third Reader - March 11, 2021
Analysis by: Kathleen P. Kennedy Direct Inquiries to:
(410) 946-5510
(301) 970-5510
SB 116/ Page 4


Statutes affected:
Text - First - Department of the Environment – Office of Recycling – Recycling Market Development: 91-702 Environment, 91-702.1 Environment, 91-702.1 Environment
Text - Third - Department of the Environment - Office of Recycling - Recycling Market Development: 91-702 Environment, 91-702.1 Environment, 91-702.1 Environment