SB 585
Department of Legislative Services
Maryland General Assembly
2021 Session
FISCAL AND POLICY NOTE
First Reader
Senate Bill 585 (Senator Gallion)
Education, Health, and Environmental Affairs
Agriculture - Processing of Poultry Litter for Alternative Use
This bill establishes requirements for the processing of poultry litter for an “alternative
use” and for the product that results from the processing. The bill takes effect
July 1, 2021.
Fiscal Summary
State Effect: The bill is not expected to materially affect State finances, particularly in the
short-term, but could affect State operations for Maryland Department of Agriculture
(MDA) manure management initiatives, as discussed below.
Local Effect: The bill does not materially affect local government finances or operations.
Small Business Effect: Potential meaningful.
Analysis
Bill Summary: “Alternative use” is the use of poultry litter or other animal manure in an
environmentally acceptable way, other than by direct land application in an unprocessed
form, as determined by MDA.
The processing of poultry litter for an alternative use or the product that results from the
processing, as appropriate, must (1) convert the phosphorus content of unprocessed poultry
litter to a form that is not soluble in water, as specified, but retain the phosphorus in a form
that may be converted by the natural activity of soil-resident microorganisms to be
available to plants; (2) contain a community of natural soil microorganisms that enhances
or replenishes farm soil microbiology, as specified; and (3) retain the high nutrient value
of poultry litter. Additionally, the processing must eliminate any noxious odor from poultry
litter early in the process.
In order to avoid or minimize any disruption of longstanding farming or growing regimes,
an alternative use product resulting from the processing of poultry litter must be able to be
procured in the same manner, at relatively similar cost, and handled or applied in the same
manner as unprocessed poultry litter. An alternative use product resulting from the
processing of poultry litter may be transported off the Delmarva Peninsula (1) to
established, identified markets and (2) using a distribution apparatus that is in place and
does not require any transportation cost-sharing assistance.
Current Law: MDA administers and helps to implement a number of programs and
initiatives to address animal waste, particularly from the poultry industry on the
Eastern Shore. Several of these programs are discussed below.
Manure Transport Program
MDA’s manure transport program, which was founded in 1999, provides funds for farmers
to transport poultry litter and livestock manure to other farms or alternative use facilities
where it can be used in an environmentally safe manner. Poultry companies voluntarily
pay part of the cost of transporting poultry litter generated by their growers. This amount
is based on the square footage of their poultry houses in Maryland. Livestock manure
transport (nonpoultry manure) is eligible for cost-share grants for up to 87.5% of all eligible
costs (up to $15,000).
Regulations define “alternative use” as using poultry or other animal manure in
environmentally acceptable ways, as determined by MDA, other than by direct land
application in an unprocessed form. An “alternative use operation” is a person or entity
that uses or processes poultry or livestock manure in environmentally acceptable ways, as
determined by MDA, other than by direct land application in an unprocessed form.
Alternative use operations are eligible to receive cost-share funds for transporting manure,
and regulations establish eligibility requirements for an alternative use operation to receive
manure transport program cost-share funds. Among other things, to participate, an alternate
use operation must (1) submit certain required information; (2) agree to obtain manure only
from an eligible sending operation, and to use the manure in an environmentally acceptable
way, as determined by MDA, other than by direct land application in an unprocessed form;
and (3) maintain specified records.
Animal Waste Technology Fund
Maryland’s Animal Waste Technology Fund, which is administered by MDA, provides
grants to vendors, businesses, and individuals that (1) conduct research or develop
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technologies that are intended to reduce the amount of nutrients in animal waste; (2) alter
the composition of animal waste; (3) develop alternative waste management strategies; or
(4) use animal waste in a production process. The statutory goal of the fund is to encourage
the development and implementation of economically feasible technologies that help
protect the public health and the environment by reducing the amount of nutrients from
animal waste to enable farmers to meet nutrient management requirements and provide
alternative animal waste management strategies to farmers.
Nutrient Management Program and the Phosphorus Management Tool
MDA’s Nutrient Management Program protects water quality in the Chesapeake Bay and
its tributaries by ensuring that farmers and urban land managers apply fertilizers, animal
manure, and other nutrient sources in an effective and environmentally sound manner.
Farmers are required to follow nutrient management plans when fertilizing crops and
managing animal waste. These plans specify how much fertilizer, manure, or other nutrient
sources may be safely applied to crops to achieve yields and prevent excess nutrients from
impacting waterways. Nutrient management plans generally are required for all agricultural
land used to produce plants, food, feed, fiber, animals, or other agricultural products.
Farm fields with high soil phosphorus levels must use Maryland’s Phosphorus
Management Tool (PMT), which is an updated environmental risk assessment tool that
uses the best available science to identify the potential risk of phosphorus loss from farm
fields and prevent the additional buildup of phosphorus in soils that are already saturated.
PMT regulations took effect June 8, 2015, and include a multi-year process for farmers to
transition to the use of PMT for fields with high soil phosphorus levels. MDA anticipates
that PMT will be fully implemented by 2022. Depending on phosphorus levels in affected
farm fields, the application of manure directly on farm fields can be limited or prohibited.
State Fiscal Effect: The specific impact of the bill is unclear since the bill does not directly
affect MDA’s current initiatives for managing animal waste in the State. However, to the
extent that MDA must incorporate the restrictions and requirements for alternative uses of
poultry litter under the bill into the current manure transport program and the Animal Waste
Technology Fund, the bill could limit the expansion and use of alternative uses. This could
also limit MDA’s ability to support poultry litter producers during the final implementation
phase of PMT.
Small Business Effect: To the extent that the bill limits alternative uses for the disposal
of poultry litter, the bill could have a meaningful impact on a number of types of small
businesses in the State. Poultry litter disposal costs and costs to implement PMT could
increase, potentially significantly. The bill’s requirements for alternative uses could also
restrict a company’s ability to enter into the alternative use market in the State. MDA
advises that manure treatment companies are actively seeking to locate in Maryland to
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address streams of manure for alternative uses as the final PMT implementation phase
occurs. The bill could reduce these companies’ eligibility for funding under the
Manure Transport Program, and potentially, the Animal Waste Technology Fund.
Additional Information
Prior Introductions: HB 1438 of 2020 passed the House and was referred to the Senate
Education, Health, and Environmental Affairs Committee, but no further action was taken.
Designated Cross File: HB 455 (Delegate Jacobs) - Environment and Transportation.
Information Source(s): Worcester County; Maryland Department of Agriculture;
Maryland Department of the Environment; Department of Legislative Services
Fiscal Note History: First Reader - February 2, 2021
an/sdk
Analysis by: Kathleen P. Kennedy Direct Inquiries to:
(410) 946-5510
(301) 970-5510
SB 585/ Page 4


Statutes affected:
Text - First - Agriculture - Processing of Poultry Litter for Alternative Use: 81-101 Agriculture