Environment agency defends climate grants and permit gains while analysts question fee accounting and reporting

The Maryland Department of the Environment's fiscal 2027 budget and program activity were reviewed Feb. 27 amid questions about federal grant awards, permit timelines and reporting.

DLS analyst Andrew Gray summarized the department's $270 million request, noting that much of the multi-year climate and adaptation spending reported to the legislature flows through other state agencies such as transportation. Gray flagged a recent $11.2 million stream of climate-pollution reduction grant funding (including an initial $4.2 million allocation) and asked for clearer reporting on how grant awards and outcomes will be tracked across agencies.

Gray also asked the agency to explain a rebasing of permit and public information request statistics and questioned whether some wastewater operations costs appear to be double-budgeted. The analysis recommended deletion of $11.1 million that DLS identified as a double budget entry for wastewater O&M pending clarification.

Secretary Serena Mawane told the subcommittee the department is reducing permit turnaround times, clearing wastewater backlogs and has completed a $341 million settlement and 50-year water-quality certification for the Conowingo Dam matter, which she said should move the state from litigation to implementation and longer-term investments for affected watersheds.

MDE staff acknowledged delays in a contractor-produced child blood-lead levels report, and said the 2024 calendar-year report was delayed due to contractor performance issues; the agency pledged to post the report as soon as possible and to explain trends in testing and elevated results.

On stormwater rules, MDE said it has closed informal public comment and intends to post draft regulations for formal comment later in 2026, with a target for finalization by year-end.

Committee staff and MDE agreed to follow up on the allocation of the climate grant funds by agency and year, the resolution of the misc. adjustment entries in the budget, and the status of the delayed blood-lead report.