Supporting Inclusive Community Adaptation Act

EXPLANATION: CAPITALS INDICATE MATTER ADDED TO EXISTING LAW.
[Brackets] indicate matter deleted from existing law.
Underlining indicates amendments to bill.
Strike out indicates matter stricken from the bill by amendment or deleted from the law by
amendment.
*hb0254*

HOUSE BILL 254
M1, M5 6lr0132
(PRE–FILED) CF 6lr0131
By: Chair, Environment and Transportation Committee (By Request –
Departmental – Natural Resources)
Requested: October 28, 2025
Introduced and read first time: January 14, 2026
Assigned to: Environment and Transportation
Committee Report: Favorable
House action: Adopted
Read second time: March 3, 2026

CHAPTER ______

AN ACT concerning 1

Supporting Inclusive Community Adaptation Act 2

FOR the purpose of requiring the Department of Natural Resources to facilitate community 3
participation in project planning and development; establishing the Resilience 4
Through Restoration Capital Grant Fund in the Department as a special, nonlapsing 5
fund to provide certain grant funding for certain projects that reduce the State’s 6
climate change vulnerabilities and enhance the resilience of the State’s communities 7
and public lands; requiring interest earnings of the Res ilience Through Restoration 8
Capital Grant Fund to be credited to the Fund; requiring, by a certain date, the 9
Department to develop a website, guidance, and training for certain planning tools 10
and resources; requiring, by a certain date, the Department to t ake certain actions 11
relating to climate change mitigation, adaptation, and resilience projects on certain 12
land owned, leased, or managed by the Department; altering certain provisions of 13
law relating to the Shore Erosion Control Construction Loan Fund, inc luding 14
altering the eligibility for loans, authorizing the Department to forgive loans under 15
certain circumstances, and requiring interest earnings of the Fund to be credited to 16
the Fund; and generally relating to community participation in project planning and 17
development and climate change resilience. 18

BY adding to 19
Article – Natural Resources 20
Section 1 –408; 3 –1201 and 3 –1202 to be under the new subtitle “Subtitle 12. 21
Resilience Through Restoration Capital Grant Fund”; 3 –1301 and 3–1302 to 22
2 HOUSE BILL 254

be under the new subtitle “Subtitle 13. Increasing Climate Change Resilience 1
of Local Jurisdictions”; and 5 –2201 and 5–2202 to be under the new subtitle 2
“Subtitle 22. Increasing Climate Change Resilience on Department Lands” 3
Annotated Code of Maryland 4
(2023 Replacement Volume and 2025 Supplement) 5

BY repealing and reenacting, with amendments, 6
Article – Natural Resources 7
Section 8–1005(a) 8
Annotated Code of Maryland 9
(2023 Replacement Volume and 2025 Supplement) 10

BY repealing and reenacting, without amendments, 11
Article – State Finance and Procurement 12
Section 6–226(a)(1) and (2)(i) and (ii) 13
Annotated Code of Maryland 14
(2021 Replacement Volume and 2025 Supplement) 15

BY repealing and reenacting, with amendments, 16
Article – State Finance and Procurement 17
Section 6–226(a)(2)(iii)212. and 213. 18
Annotated Code of Maryland 19
(2021 Replacement Volume and 2025 Supplement) 20

BY adding to 21
Article – State Finance and Procurement 22
Section 6–226(a)(2)(iii)214. and 215. 23
Annotated Code of Maryland 24
(2021 Replacement Volume and 2025 Supplement) 25

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 26
That the Laws of Maryland read as follows: 27

Article – Natural Resources 28

1–408. 29

(A) IN THIS SECTION, “COMMUNITY PARTICIPATION” INCLUDES: 30

(1) FACILITATING, HOSTING, OR ATTENDING COMMUNITY MEETINGS; 31

(2) PROVIDING COMMUNITY PERSPECTIVES THROUGHOUT PROJECT 32
PLANNING AND DEVELOPMENT; AND 33

(3) SERVING AS A DEDICATE D PROJECT PARTNER OR COMMUNITY 34
LIAISON. 35
HOUSE BILL 254 3

(B) THE DEPARTMENT SHALL FACILITATE COMMUNITY PARTICIPATION IN 1
PROJECT PLANNING AND DEVELOPMENT TO ENSURE: 2

(1) EQUITABLE PARTICIPATION; AND 3

(2) THAT COMMUNITY PERSPE CTIVES, GOALS, AND NEEDS ARE 4
MEANINGFULLY INFORMING PROJECT DEVELOPMENT. 5

(C) (1) THE DEPARTMENT MAY ENTER INTO CONTRACT UAL 6
AGREEMENTS WITH OTHE R STATE AGENCIES , LOCAL GOVERNMENTS , AND 7
NONPROFIT ORGANIZATI ONS TO PROMOTE AND E NHANCE COMMUNITY 8
PARTICIPATION IN PROJECT PLANNING AND DEVELOPMENT. 9

(2) A CONTRACTUAL AGREEMEN T ENTERED INTO UNDER 10
PARAGRAPH (1) OF THIS SUBSECTION: 11

(I) MAY ALLOW FOR OTHER STATE AGENCIES , LOCAL 12
GOVERNMENTS, OR NONPROFIT ORGANIZ ATIONS TO PROVIDE CO MPENSATION TO 13
INDIVIDUALS FOR COMM UNITY PARTICIPATION IN PROJECT PLANNING AND 14
DEVELOPMENT; AND 15

(II) SHALL SPECIFY THE TERMS OF ANY GRANT OR PAYMENT TO 16
BE RECEIVED. 17

SUBTITLE 12. RESILIENCE THROUGH RESTORATION CAPITAL GRANT FUND. 18

3–1201. 19

IN THIS SUBTITLE , “FUND” MEANS THE RESILIENCE THROUGH 20
RESTORATION CAPITAL GRANT FUND. 21

3–1202. 22

(A) THERE IS A RESILIENCE THROUGH RESTORATION CAPITAL GRANT 23
FUND IN THE DEPARTMENT. 24

(B) THE PURPOSE OF THE FUND IS TO PROVIDE EQ UITABLE GRANT 25
FUNDING TO STATE AGENCIES , LOCAL JURISDICTIONS , AND NONPROFIT 26
ORGANIZATIONS FOR TH E PLANNING , DESIGN, CONSTRUCTION, AND ADAPTIVE 27
MANAGEMENT OF NATURE –BASED RESTORATION PR OJECTS TH AT REDUCE THE 28
STATE’S CLIMATE CHANGE VUL NERABILITIES AND ENH ANCE THE RESILIENCE OF 29
THE STATE’S COMMUNITIES AND PUBLIC LANDS. 30
4 HOUSE BILL 254

(C) THE DEPARTMENT SHALL ADMINISTER THE FUND. 1

(D) (1) THE FUND IS A SPECIAL , NONLAPSING FUND THAT IS NOT 2
SUBJECT TO § 7–302 OF THE STATE FINANCE AND PROCUREMENT ARTICLE. 3

(2) THE STATE TREASURER SHALL HOLD THE FUND SEPARATELY , 4
AND THE COMPTROLLER SHALL ACCOUNT FOR THE FUND. 5

(E) THE FUND CONSISTS OF: 6

(1) MONEY APPROPRIATED IN THE STATE BUDGET TO THE FUND; 7

(2) MONEY FROM PRIVATE OR PUBLIC SOURCES, INCLUDING FROM 8
FEDERAL SOURCES, ACCEPTED FOR THE BENEFIT OF THE FUND; 9

(3) INTEREST EARNINGS; AND 10

(4) ANY OTHER MONEY FROM ANY OTHER SOURCE ACC EPTED FOR 11
THE BENEFIT OF THE FUND. 12

(F) THE FUND MAY BE USED ONLY FOR: 13

(1) PROVIDING GRANTS TO STATE AGENCIES, LOCAL GOVERNMENTS, 14
AND NONPROFIT ORGANI ZATIONS IN THE STATE FOR THE PLANNIN G, DESIGN, 15
CONSTRUCTION, AND ADAPTIVE MANAGEM ENT OF NATURE –BASED RESTORATION 16
PROJECTS THAT REDUCE THE STATE’S CLIMATE CHANGE VUL NERABILITIES AND 17
ENHANCE THE RESILIENCE OF THE STATE’S COMMUNITIES AND PUBLIC LANDS; 18

(2) SUPPORTING PROGRAMMAT IC AND PROJECT –LEVEL ADAPTIVE 19
MANAGEMENT THAT REDU CES THE STATE’S OVERALL CLIMATE CH ANGE 20
VULNERABILITIES AND ENHANCES THE RESILIENCE OF THE STATE’S COMMUNITIES 21
AND PUBLIC LANDS; AND 22

(3) ADMINISTRATIVE EXPENSES CALCULATED IN ACCORDANCE WITH 23
§ 1–103(B)(2) OF THIS ARTICLE. 24

(G) A PROJECT THAT RECEIVES FUNDING UNDER THE FUND: 25

(1) SHALL ENHANCE THE ABI LITY OF COMMUNITIES AND PUBLIC 26
LANDS TO PREPARE FOR , RESPOND TO , OR RECOVER FROM EXTR EME HAZARDS 27
SUCH AS STORMS AND M ORE FREQUENT AND INT ENSE RAIN EVENTS OR CHRONIC 28
HAZARDS SUCH AS NUISANCE FLOODING AND SEA LEVEL RISE; 29
HOUSE BILL 254 5

(2) SHALL USE AT LEAST 3% OF THE FUNDING FOR P ROGRAMMATIC 1
OR PROJECT–LEVEL ADAPTIVE MANAGEMENT; AND 2

(3) MAY INCLUDE: 3

(I) NATURAL AND NATURE–BASED SHORELINE RESTORATION; 4

(II) FLOODPLAIN RESTORATION; 5

(III) BENEFICIAL USE OF DREDGED MATERIAL; 6

(IV) TIDAL AND NONTIDAL WETLAND RESTORATION; 7

(V) DUNE AND BEACH RESTORATION; 8

(VI) GREEN INFRASTRUCTURE; AND 9

(VII) ANY OTHER NATURE –BASED PROJECT THAT P ROVIDES 10
COMMUNITY AND ECOSYSTEM BENEFITS BY RESTORING, ENHANCING, OR CREATING 11
HABITAT. 12

(H) (1) THE STATE TREASURER SHALL INVEST THE MONEY OF THE FUND 13
IN THE SAME MANNER AS OTHER STATE MONEY MAY BE INVESTED. 14

(2) ANY INTEREST EARNINGS OF THE FUND SHALL BE CREDITED TO 15
THE FUND. 16

(I) EXPENDITURES FROM THE FUND MAY BE MADE ONLY IN ACCORDANCE 17
WITH THE STATE BUDGET. 18

SUBTITLE 13. INCREASING CLIMATE CHANGE RESILIENCE OF LOCAL 19
JURISDICTIONS. 20

3–1301. 21

IN THIS SUBTITLE, “PLANNING TOOLS AND RESOURCES” MEANS ANY MAPPING 22
APPLICATION, DATASET, ANALYTICAL MODEL , ASSESSMENT METHODOLO GY, 23
TECHNICAL RESOURCE , OR O THER TOOL DEVELOPED OR MAINTAINED BY THE 24
DEPARTMENT THAT REFLE CTS THE LATEST CLIMA TE AND ENVIRONMENTAL 25
SCIENCE AND PROVIDES INFORMATION RELEVANT TO CLIMATE CHANGE AN D 26
NATURAL RESOURCE PLANNING. 27

6 HOUSE BILL 254

3–1302. 1

(A) BY OCTOBER 1, 2027, THE DEPARTMENT SHALL DEVELOP: 2

(1) A USER–FRIENDLY WEBSITE THA T SERVES AS THE CENT RAL 3
ACCESS POINT FOR THE DEPARTMENT’S PLANNING TOOLS AND RESOURCES; 4

(2) STREAMLINED GUIDANCE TO SUPPORT THE USE A ND 5
INTEGRATION OF THE DEPARTMENT’S PLANNING TOOLS AND RESOURCES INTO 6
LOCAL JURISDICTION PLANNING EFFORTS; AND 7

(3) TRAINING TO ASSIST LO CAL JURISDICTIONS IN INCORPORATING 8
CLIMATE ADAPTATION PLANNING INTO LOCAL COMPREHENSIVE PLANS AND OTHER 9
PLANNING DOCUMENTS. 10

(B) THE DEPARTMENT SHALL MAIN TAIN AND REGULARLY U PDATE THE 11
WEBSITE, GUIDANCE, AND TRAININGS DEVELOPED UNDER SUBSECTION (A) OF THIS 12
SECTION WITH BEST–AVAILABLE DATA AND INFORMATION. 13

SUBTITLE 22. INCREASING CLIMATE CHANGE RESILIENCE ON DEPARTMENT 14
LANDS. 15

5–2201. 16

IN THIS SUBTITLE , “DEPARTMENT LANDS ” MEANS ALL LANDS OWNE D, 17
LEASED, OR MANAGED BY THE DEPARTMENT, INCLUDING STATE PARKS, WILDLIFE 18
MANAGEMENT AREAS, NATURAL RESOURCE MANAGEMENT AREAS, AND STATE 19
FORESTS. 20

5–2202. 21

(A) THE DEPARTMENT SHALL: 22

(1) IDENTIFY CLIMATE VULN ERABILITIES AND RISK S ON 23
DEPARTMENT LANDS; 24

(2) EVALUATE OPPORTUNITIE S TO IMPLEMENT CLIMA TE CHANGE 25
MITIGATION, ADAPTATION, OR RESILIENCE PROJECTS, INCLUDING NATURE–BASED 26
SOLUTIONS AND ADAPTIVE MANAGEMENT, ON DEPARTMENT LANDS; AND 27

(3) PRIORITIZE DEPARTMENT LANDS FOR PROJECTS BASED ON 28
CLIMATE RISK, ECOLOGICAL VALUE, AND POTENTIAL CO–BENEFITS. 29

HOUSE BILL 254 7

(B) BY DECEMBER 31, 2035, THE DEPARTMENT SHALL CARR Y OUT THE 1
PROVISIONS OF SUBSEC TION (A) OF THIS SECTION FOR TWO COASTAL AND TWO 2
INLAND PROPERTIES OWNED, LEASED, OR MANAGED BY THE DEPARTMENT. 3

8–1005. 4

(a) (1) There is a “Shore Erosion Control Construction Loan Fund”. 5

(2) The Department shall administer the Fund to provide interest –free 6
loans or grants to persons, municipalities, or counties for design and construction of shore 7
erosion control projects. 8

(3) The Fund shall be maintained by: 9

(i) Repayments of principal on loans made from the Fund, with the 10
repayments made through a benefit charge the State levies on privately owned property 11
benefited by shore erosion control projects. The benefit cha rge shall compensate the State 12
for net project construction cost. The benefit charge shall be levied at a uniform rate over a 13
period not exceeding 25 years; 14

(ii) Repayment of administrative costs under § 8 –1004 of this 15
subtitle; and 16

(iii) Annual ap propriation of funds to restore the Fund to a level 17
sufficient to carry out an effective shore erosion control construction loan program during 18
the succeeding year. 19

[(2)] (4) (i) The Fund is a special, nonlapsing fund that is not subject 20
to § 7–302 of the State Finance and Procurement Article. 21

(ii) Any [investment] INTEREST earnings of the Fund shall be 22
credited to the [General] Fund [of the State]. 23

[(3)] (5) (I) A property owner whose project is approved is eligible to 24
receive an interest–free loan [covering 100% of the first $60,000 of project construction cost, 25
50% of the next $20,000 of project construction cost, 25% of the next $20,000 of project 26
construction cost, and 10% of the part of construction cost exceeding $100,000. However, 27
where]. 28

(II) IF 2 or more property owners are included within a shore erosion 29
control project, the land of each property owner [is] SHALL BE considered a separate shore 30
erosion project for the purpose of computing net project construction cost [under this 31
formula]. 32

8 HOUSE BILL 254

(III) SUBJECT TO THE AVAILA BILITY OF FUNDING , THE 1
DEPARTMENT MAY , AT THE DEPARTMENT’S DISCRETION , AUTHORIZE PARTIAL 2
FORGIVENESS OF A LOAN GRANTED UNDER THIS SUBSECTION IN ACCORDANCE WITH 3
ECOLOGICALLY BASED , PERFORMANCE–BASED, AND EQUITY –BASED CRI TERIA 4
DEVELOPED BY THE DEPARTMENT. 5

Article – State Finance and Procurement 6

6–226. 7

(a) (1) Except as otherwise specifically provided by law or by regulation of the 8
Treasurer, the Treasurer shall credit to the General Fund any interest on or other income 9
from State money that the Treasurer invests. 10

(2) (i) This paragraph does not apply in fiscal years 2024 through 2028. 11

(ii) Notwithstanding any other provision of law, and unless 12
inconsistent with a federal law, grant agreement, or other federal requirement or with the 13
terms of a gift or settlement agreement, net interest on all State money allocated by the 14
State Treasurer under this section to special funds or accounts, and otherwise entitled to 15
receive interest earnings, as accounted for by the Comptroller, shall accrue to the General 16
Fund of the State. 17

(iii) The provisions of subparagraph (ii) of this paragraph do not 18
apply to the following funds: 19

212. the Department of Social and Economic Mobility Special 20
Fund; [and] 21

213. the Population Health Improvement Fund; 22

214. THE RESILIENCE THROUGH RESTORATION CAPITAL 23
GRANT FUND; AND 24

215. THE SHORE EROSION CONTROL CONSTRUCTION 25
LOAN FUND. 26

SECTION 2. AND BE IT FURTHER ENACTED, That the Resilience Through 27
Restoration Capital Grant Fund established under Section 1 of this Act may not receive 28
any appropriation from the General Fund of the State in fiscal year 2027. 29

SECTION 3. AND BE IT FURTHER ENACTED, That this Act shall take effect 30
October 1, 2026. 31