Septic System Bill Further Exposed 3-19-09

The special order that was requested yesterday by Senator J. Lowell Stoltzfus, R - Somerset, Wicomico & Worcester) on Senate Bill 554 - Chesapeake Bay Nitrogen Reduction Act of 2009 was extended at the floor session this morning until next Tuesday.  Meanwhile, Republican Senators are ferreting out more about the implications, and perhaps unintended consequences, of this bill.

The bill, as amended by the Senate Education, Health & Environmental Affairs Committee, provides that all new buildings in Maryland with on-site septic systems must be equipped with new technology to reduce nitrogen.  The statewide provisions apply to both residential and commercial projects but the fiscal note to the bill neglects to contain cost estimates for these systems.  It is believed that the commercial systems could be especially costly and serve as a deterrent to state economic development efforts.

The bill also requires all homeowners located within the state-designated "critical areas" to replace their existing system with the expensive nitrogen reduction systems if the homeowner is repairing or replacing their septic tank.

  Again, the fiscal note fails to identify how many properties would be affected but the bill would likely apply to over 50,000 existing properties.

As amended, this bill could cause financial hardship on Maryland homeowners already facing tough economic times.  For example, a homeowner needing to repair a $500 pump on his current system (not an uncommon occurrence) would be prohibited from doing that minor repair and instead be required to install an entirely new nitrogen-reduction system at a cost of over $10,000.

Legislators have also raised questions about the grant program administered by the Maryland Department of the Environment (MDE) to pay for the costs above and beyond the cost of a traditional system. The average grant payout has been about $12,000 for the new technology (though some systems can cost more than $30,000 according to the testimony of septic contractors at legislative hearings).  At that rate, the Bay Restoration Fund has only enough money to pay for less than 600 systems a year but the bill contains no provisions to waive the construction of these systems if the grant funds are depleted.

With the potential fine set at $1000 per day, county sanitarians testified that the bill could contain substantial unintended consequences.  While the conventional systems are gravity-powered, the new systems use electricity and the increased energy costs of these systems might lead homeowners to turn them off to save on their electric bill, thus rendering the system useless.  County inspectors also expressed the fear that the extremely high costs for a replacement system would lead some homeowners to not report a failing systems throughout the state's critical areas.