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SB 637

Relating to: a sales and use tax exemption and an income and franchise tax credit for nuclear energy facilities. (FE)

2025-2026 Regular Session Introduced by Dan Feyen

The bill excludes registered vessels from the nonwater-dependent category, so they won’t need wetlands licenses or pay related fees regardless of use.

Failed to pass pursuant to Senate Joint Resolution 1
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Bill Summary · SB 637

SB 637 — State and Private Wetlands: “Nonwater‑Dependent Project” — Definition (Maryland)

Status: Hearing 2/18 at 1:00 p.m. | Introduced: February 20, 2025 | Cross‑file: HB 976
Sponsor(s): Senators Hershey and Bailey — Assigned to Education, Energy, and the Environment
Effective date (as drafted in fiscal note): July 1, 2025

Purpose / intent

SB 637 narrows the statutory definition of “nonwater‑dependent project” by expressly excluding vessels that are registered under the State Boat Act (Natural Resources Article, Title 8, Subtitle 7). The change is intended to clarify that a registered vessel — regardless of how it is used or operated — is not treated as a nonwater‑dependent project for purposes of wetlands licensing and permitting.

Key provisions

  • Amends Article — Environment (wetlands statutes) to add that a vessel registered under Title 8, Subtitle 7 of the Natural Resources Article is not a “nonwater‑dependent project,” regardless of use or operation.
  • Leaves existing licensing/permit authorities in place (Board of Public Works for State wetlands; MDE for private wetlands) but changes which activities are categorized as nonwater‑dependent.
  • Takes effect July 1, 2025 (per fiscal note).

How existing law works (context)

  • State law generally prohibits issuance of licenses/permits for “nonwater‑dependent projects” located in State or private wetlands, except under narrowly defined conditions.
  • “Nonwater‑dependent project” currently includes structures and uses on piers and certain vessels depending on use (e.g., a vessel used as a dwelling or restaurant may be treated as nonwater‑dependent).
  • Wetlands and Waterways application fees currently range about $250–$7,500 depending on project size/impact; MDE reports a typical affected application fee of $1,500. Some State tidal wetlands licenses can also carry compensation/mitigation payments.

Who would be affected

  • Vessel owners and businesses that operate on registered vessels (e.g., floating restaurants, offices, short‑term lodging, marinas): projects on registered vessels would no longer be treated as nonwater‑dependent projects and therefore would generally not be subject to wetlands licensing/permit requirements or associated application/compensation fees tied to that classification.
  • Maryland Department of the Environment (MDE) and Board of Public Works (BPW): administrative implementation is expected to be feasible with existing resources, but permitting workload and fee revenue would be affected.
  • Local governments: not anticipated to have significant operational or fiscal impacts.

Fiscal and policy impacts

  • Revenue: MDE special fund revenues likely decrease beginning FY 2026 from foregone wetlands/waterways application fees and potential compensation payments; the decrease is uncertain but could be significant given the large number of registered vessels. MDE estimates a $1,500 application fee per affected project as a reference point.
  • Small businesses: the bill reduces regulatory burden and costs for businesses that would otherwise have to secure wetlands permits for nonwater‑dependent uses on registered vessels.
  • Environmental oversight: by removing such vessels from the “nonwater‑dependent” category, some projects that previously required review, mitigation, or compensation may no longer be subject to the same wetlands permitting processes (a consequential change for wetlands protection/mitigation policy).

Notes

  • Text and fiscal analysis identify the change as categorical: registration status (per Title 8, Subtitle 7) determines exclusion from the nonwater‑dependent definition, irrespective of actual use (e.g., dwelling, commercial use).
  • Cross‑file/related: HB 976.

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

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