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Jan. 19, 2004

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Contact:
Sue Brown, Maryland League of Conservation Voters, (410) 280-9855; sbrown@mdlcv.org
Erich Pica, Friends of the Earth, (202) 222-0739
Brad Heavner, MD Public Interest Research Group (410) 467-0439; bsh@marypirg.org

Groups Release New Report Showing How to Save $144 Million While Protecting the Environment

(Annapolis, MD) In response to Maryland’s current budget deficit, 20 public interest groups released “Greening the Budget: 11 Ideas for Protecting the Environment and Easing Maryland’s Fiscal Crisis,” a new report detailing how the state could realize over $144 million in savings this year while still protecting critical environmental protection programs.

“Maryland faces an unprecedented budget shortfall that could result in drastic cuts to nearly every critical social service in the state,” said Susan Brown, executive director of the Maryland League of Conservation Voters. “Every year Maryland spends millions of taxpayer dollars on programs to protect public health, the Chesapeake Bay and our environment, while letting polluters off the hook for the cost of their harmful activities.”

“Protecting the environment and balancing the budget make perfect sense in the current environmental and budget climate in Annapolis,” stated Erich Pica, economics campaign director at Friends of the Earth. “We encourage Governor Ehrlich and the Maryland State Legislature to carefully consider these 11 common sense proposals as they grapple with the budget this session.”

“Fiscal responsibility and environmental stewardship should go hand in hand,” said MaryPIRG Director Brad Heavner. “There has never been a better time to close loopholes that hurt the environment and make polluters pay for the government services they require.”

The “Greening the Budget” report offers 11 recommendations that would save Maryland more than $144 million in FY 2005. 1000 Friends of Maryland, Audubon Naturalist Society, Chesapeake Bay Foundation, Friends of the Earth, Maryland Conservation Council, Maryland League of Conservation Voters Education Fund, the MaryPIRG Foundation, and Sierra Club - Maryland Chapter co-produced and released the report; it has been endorsed by nearly a dozen other environmental organizations and public interest groups.

The report’s recommendations range from eliminating tax breaks for coal mined in Maryland, to eliminating hidden pollution subsidies by raising fees for activities such as dumping in landfills and discharging wastewater. Specifically, the report recommends:

Cancel Coal Mining Tax Break: Currently, the State of Maryland offers a $3 per ton tax credit for coal mined in Maryland. By eliminating this tax break Maryland could save $12 million annually.

Close Program Open Space Funding Loophole: The Program Open Space program is funded by a tax on real estate transfers. Unfortunately, many corporations are avoiding the real estate transfer tax by creating holding companies, which shelter any real estate transaction from the tax. By applying the real estate transfer tax to holding companies, Maryland could save $9 million.

Repeal Sales Tax Exemption for Pesticides: Maryland currently exempts agricultural pesticides from the state’s sales tax. By repealing this exemption, Maryland could save $2.2 million annually.

Wetlands Permit Development Fees: Currently, developers allowed to build on wetland areas pay no fees for monitoring and regulating their activity. The “Greening the Budget” report recommends a $1 per square foot fee for developers. The fee would generate $2.8 million annually.

Water Withdrawal Permit Fees: The Maryland Department of the Environment regulates groundwater and surface water withdrawal under its Water Supply Program. The $4.3 million budget for the program is funded by the state and federal government and not by water users. Adding a fee to water withdrawal permits could raise $3.6 million.

Wastewater Permit Discharge Fees: Polluters wishing to dump waste into Maryland waters must pay between $50 and $20,000 for a waste discharge fee. Unfortunately, this fee fails to fully cover the costs of regulating industrial pollution dischargers, for managing the impacts of such pollution, and for program development activities. MDE should raise at least $1 million more from permit fees.

Landfill Dumping Fees: Currently, MDE charges no fees to issue permits for solid waste acceptance facilities, nor are these facilities required to pay a fee based on the amount of waste accepted for disposal. Maryland is the only state in the Mid-Atlantic region that does not charge such a disposal fee. A $5 per ton dumping fee would generate $34 million in annual revenue.

Fuel Efficiency Incentive Program: Maryland has a policy in law that is designed to encourage the use of fuel-efficient motor vehicles, by charging a surcharge on fuel inefficient vehicles. Due to a technical error the law was never implemented. By correcting this glitch, the surcharge on fuel inefficient vehicles would raise at least $19 million annually, rising to $62 million in later years.

Toxic Chemical Storage Fees: Corporations currently pay fees into an under funded Community Right to Know Fund. To increase money for the Fund, “Greening the Budget,” recommends eliminating the fee cap for companies that use large amounts of chemicals. This change would generate roughly $5.5 million annually.

Air Pollution Fees: The “Greening the Budget” report recommends raising the air pollution fee to $85 per ton, and eliminating pollution caps that exempt the largest air polluters from the fee. The fee would generate $33 million in additional revenue.

Cut Funding for the Inter-County Connector: In fiscal year 2004, the state budgeted $21 million to study the Inter-County Connector (ICC). The report recommends eliminating this funding.

See a pdf version of "Greening the Budget" or call for your copy: 410-280-9855.