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SB 699

Forest Conservation Act - Linear Projects - Alteration

2025 Regular Session Introduced by Justin Ready

SB 699 ends the FCA linear-project exemption for new electric transmission/distribution lines built after Oct 1, 2025, requiring forest planning, afforestation/mitigation or fees.

Hearing 2/25 at 1:00 p.m.
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Bill Summary · SB 699

SB 699 — Forest Conservation Act — Linear Projects — Alteration

Status: Hearing scheduled Feb. 25 at 1:00 p.m.
Introduced: January 26, 2025 (Sen. Ready) — Assigned to Education, Energy, and the Environment
Sponsor: Senator Ready

Purpose / Intent

SB 699 narrows the “linear project” exemption under Maryland’s Forest Conservation Act (FCA) by specifying that projects to construct a new electric transmission line or a new electric distribution line on or after October 1, 2025, are not “linear projects.” The practical effect is to make such new electric-line projects subject to FCA requirements (forest evaluation, afforestation/reforestation, mitigation, or fee‑in‑lieu payments) that otherwise might not apply if they were treated as exempt linear projects.

Key provisions

  • Amends the FCA definitions (Art. — Natural Resources §5‑1601(u)) to add:
    • “LINEAR PROJECT” DOES NOT INCLUDE a project for a new transmission line or new distribution line constructed on or after October 1, 2025.
  • Retains existing FCA structure and thresholds:
    • FCA applies to development or grading on 40,000 sq ft (0.9 acres) or greater, subject to exceptions.
    • Current linear-project exemption applies only if cutting/clearing/grading ≤ 20,000 sq ft and not subject to a prior forest conservation plan.
    • Afforestation thresholds remain (e.g., 20% forest cover for agricultural/resource and medium‑density residential areas; 15% for many urban categories).
  • Effective date: October 1, 2025 (for the exclusion language).

Who is affected

  • Electric utilities and developers of new transmission and distribution lines (projects begun on/after Oct. 1, 2025) — may now need to comply with FCA planning, afforestation, reforestation, or pay fees into forest conservation funds.
  • Maryland Department of Natural Resources and local governments implementing FCA programs — increased scope of projects subject to review and mitigation tracking.
  • Forest Conservation Funds (State and local) — may receive additional fee‑in‑lieu payments or afforestation project work.
  • Small businesses providing FCA compliance services, tree/land contractors, and contractors on utility projects — could see increased business or compliance costs.

Fiscal and practical impacts

  • Fiscal (per departmental/legislative analysis): Potential increase in State and local forest conservation fund revenues beginning FY 2026, likely minimal and uncertain (depends on number/scale of affected electric-line projects and whether they previously would have been exempt). No direct increase in State or local expenditures anticipated.
  • Compliance / project impacts: Utilities may face additional planning and mitigation obligations (on‑site/off‑site afforestation, or fee payments) which can increase project costs and timelines. Magnitude is uncertain because many utility projects already fall under other exemptions (e.g., high‑voltage lines subject to PSC/CPCN review and related FCA considerations).
  • Small business effect: Potentially meaningful for firms involved in FCA compliance and mitigation; could also impose additional costs on utility contractors.

Context / notes

  • The bill does not alter other FCA exemptions (for example, public utility right‑of‑way exemptions tied to Certificates of Public Convenience and Necessity and related PSC review).
  • Related statutory and regulatory changes enacted recently (Chs. 541/542 of 2023, as amended) also affect some FCA exemptions and afforestation rules beginning July 1, 2026; SB 699 specifically targets new electric-line projects with an Oct. 1, 2025 effective date.
  • Fiscal and implementation outcomes will depend on the number and design of new transmission/distribution projects seeking construction on or after the effective date, and on how local jurisdictions apply FCA rules to utility projects.

Compiled from official sources — confirm details with the bill’s official record.

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