2016 Progress Report

Phosphorus Management Tool Transition Advisory Committee

A Report to Governor Larry Hogan and the members of the Maryland General Assembly By the Nutrient Management Advisory Committee

January 31, 2017

Larry Hogan Boyd K. Rutherford Joseph Bartenfelder James P. Eichhorst Governor Lt. Governor Secretary Deputy Secretary

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2016 Progress Report

Phosphorus Management Tool Transition Advisory Committee

A Report to Governor Larry Hogan and the members of the Maryland General Assembly By the Nutrient Management Advisory Committee

January 31, 2017

Contents

The Phosphorus Management Tool Transition Advisory Committee ............................................ 3

2016 Advisory Committee Members .............................................................................................. 4

Introduction .................................................................................................................................... 5

Executive Summary ......................................................................................................................... 6

Soils Data ......................................................................................................................................... 9

Tier Groups .................................................................................................................................... 10

Economic Analysis ......................................................................................................................... 11

Poultry Litter Land Application Analysis ....................................................................................... 13

Manure Transport Program .......................................................................................................... 14

Animal Waste Technology Grants ................................................................................................. 15

Looking Ahead: Implementation ................................................................................................. 17

Recommendations from the Committee ...................................................................................... 18

Summary ....................................................................................................................................... 20

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THE PHOSPHORUS MANAGEMENT TOOL TRANSITION ADVISORY COMMITTEE

Established by regulation, the Phosphorus Management Tool (PMT) Transition Advisory Committee, chaired by the Maryland Secretary of Agriculture, includes members appointed by stakeholder groups and members appointed by the Secretary. The Committee began in 2015 and will continue until the Phosphorus Management Tool is fully implemented. Meeting dates will be established at the discretion of the Secretary but the Committee will meet at least annually at a time determined by the Department.

The purpose of the Committee shall be to:

Evaluate information relevant to the implementation of the Phosphorus Management Tool including: The quantity and location of excess manure within the State The status and activity of manure transportation activities in geographic areas

with excess animal manures The viability of markets for animal manures as a crop fertilizer, fuel stock for

energy generation, and other alternative uses The status and capacity of alternative use technology using animal manures Other information the Department and the Advisory Committee deem

appropriate

Recommend to the Secretary strategies to facilitate the effective implementation of the Phosphorus Management Tool

Recommend to the Secretary potential changes to the schedule implementing the Phosphorus Management Tool, as provided for in this chapter

Identify resources necessary for the effective transition to the Phosphorus Management Tool

The Committee met once in 2015 to organize and discuss its role. At the 2015 meeting, the Committee was given an overview of the Phosphorus Management Tool, the Manure Transport Program, and alternative energy projects that were being considered. The Committee met again in 2016 with the Secretary to review its responsibilities and receive updates on the Phosphorus Management Tool. Committee members expressed a desire to be more actively involved and offered suggestions for changes or improvements to the process. This report will provide a summary of the 2016 meeting and will explore the recommendations of the Committee.

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2016 ADVISORY COMMITTEE MEMBERS Joseph Bartenfelder Ben Grumbles/Lee Currey (alt.) Maryland Secretary of Agriculture Maryland Department of Environment Thomas Middleton Roy McGrath, Director/CEO Maryland Senate Representative Maryland Environmental Service Stephen Lafferty Ann Swanson/Bevin Bucheister (alt.) Maryland House of Delegates Representative Chesapeake Bay Commission Leigh Williams Chris Clark (alt.) Craig Beyrouty/Patricia Steinhilber (alt.) Maryland Energy Administration University of Maryland AGNR Charles Wright Alison Prost Maryland Farm Bureau Chesapeake Bay Foundation Kevin Anderson Paul Spies Maryland Grain Producers Chester River Association Virgil Shockley Shelly Baird DelMarVa Poultry Industry Nanticoke River Alliance Allen Stiles John Uzupis Maryland Dairy Industry Association Synagro (Biosolids Industry) Ray Ellis Phil Snader Manure Hauling Industry- Poultry Manure Application - Dairy, Food Waste Mark Schroeder Robert Monley Alternative Technology - Castle Bridge Group Alternative Technology - USDA Farm Pilot Project Nancy Hausroth Vacant Maryland Municipal League Maryland Association of County Governments

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INTRODUCTION

This report to the Governor and the members of the General Assembly is in accordance with COMAR 15.20.08.11(E) which states that “Beginning December 1, 2016 and each year thereafter, until the Phosphorus Management Tool is fully implemented, the Committee shall provide a report to the Governor and the General Assembly.” The report shall include:

A summary of the data collected from farms related to the operational changes created by implementing the Phosphorus Management Tool

The status of certain programs related to or supporting the transition to the Phosphorus Management Tool

Resource needs considered critical for the effective transition to the Phosphorus Management Tool

Policy recommendations to enhance the implementation of the Phosphorus Management Tool

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EXECUTIVE SUMMARY

The Phosphorus Management Tool The Phosphorus Management Tool (PMT) is an updated risk assessment tool that reflects more than 10 years of research conducted by University of Maryland scientists in collaboration with regional and national experts. It uses the best available science to identify the potential risk of phosphorus loss from farm fields and prevent the additional buildup of phosphorus in soils that are already saturated. It replaces the risk management tool—the Phosphorus Site Index (PSI)—which is currently in use by Maryland farmers. Soils with high phosphorus levels are typically found on fields that have used manure or poultry litter as a crop nutrient over an extended period of time. Use of the Phosphorus Management Tool only applies to farm fields with high soil phosphorus levels identified by a Fertility Index Value (FIV) of 150 or greater. If a farm field scores less than 150 FIV, the farmer may apply phosphorus to the land based on the farm’s nutrient management plan and current University of Maryland recommendations. The Maryland Agriculture Phosphorus Initiative 2015 The Maryland Department of Agriculture’s original Phosphorus Management Tool regulations were published in the Maryland Register in January 2013 and were subsequently submitted and withdrawn three times. On January 21, 2015, Governor Larry Hogan signed an executive order moving the regulations forward. The 2015 PMT Regulatory Proposal, titled the Agriculture Phosphorus Initiative, provided a balanced approach to protecting water quality while promoting Maryland agriculture. The Agriculture Phosphorus Initiative included four enhancements:

Ensure adequate time for farmers to fully understand and plan for new requirements

Assure agricultural producers that critical elements are available for implementation

Enact an immediate ban on additional phosphorus applications to fields with the greatest risk for phosphorus runoff as indicated by a phosphorus Fertility Index Value of 500 or greater

Collect comprehensive information on soil phosphorus conditions statewide Phosphorus Fertility Index Value Soils Data Collection The Department began collecting soil phosphorus data in fall 2015 for all farms in Maryland subject to nutrient management plan requirements. The regulations require soil phosphorus data to be collected and submitted to the Department every six years by consultants who prepare nutrient management plans for farmers and farmers who are certified to write their own nutrient management plans. Required soil data include current soil test phosphorus values for individual fields, including Fertility Index Values, field acreage, county information, and other vital information. Data submitted by consultants is anonymous since the soils data and list of farm operations are reported separately.

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A detailed chart with individual county information is included in this report. As of January 2017, approximately 85 percent of the state agricultural acreage is accounted for; however, the Department continues to gather data. Reporting forms were made available to consultants in September 2015 with a November 2015 reporting deadline. Since then, the Department has provided deadline extensions as requested. The Department has followed up with letters and calls to consultants that failed to report soil data and eventually began contacting individual farmers for the missing information. In October 2016, the Department’s nine nutrient management specialists were instructed to make soil phosphorus data collection a priority. Farms with missing soils data were targeted for nutrient management implementation reviews for the purpose of collecting the missing data, as well as on-farm audits. Much data was collected as a result of this directive and those operations that did not have current soils data were given 90 days to comply. As of January 2017, the process of identifying farm operations that lack soils data is still ongoing and will continue until all regulated farms are accounted for statewide. Tier Group Designation Utilizing the soil phosphorus Fertility Index Value data, farm operations with one or more fields with average soil phosphorus levels greater than 150 FIV will be assigned to a Tier Group that determines when the farmer must transition to the Phosphorus Management Tool. By September 1, 2016, every farm field in the state with an FIV greater than 150 was to be placed into one of three tier groups based on the soil test data. There was some resistance by the larger consulting companies to provide this information to the Department because it linked the farm operation to the soils data previously collected anonymously. Following assurances issued by the Department that all of the submitted data and farm information would be treated confidentially and not released publicly; these consultants submitted the required data. The Department deems all of the data collected during this process “nutrient management plan content” and, therefore, protected information under the law. A detailed chart showing the tier groups and the transition schedule is included in this report. Manure Transport Program One of the key considerations of the Maryland Phosphorus Agriculture Initiative is the relocation of poultry litter and other types of livestock manure from areas with high soil phosphorus levels to other farms or alternative use facilities that can use the resource safely. The Maryland Department of Agriculture’s Manure Transport Program, established in 1999, provides financial assistance to help farmers transport poultry litter and manure to other farms or facilities where it can be used in accordance with an approved nutrient management plan. Poultry companies voluntarily provide matching funds to transport poultry litter generated by their growers. Many poultry farms are considered “no-land operations” if they do not have cropland as part of their operation to utilize litter. As a result, most poultry litter is transported to other farms or alternative use facilities. Dairy manure is typically utilized on other areas of the farm where it was generated, in accordance with a nutrient management plan. Areas eligible to receive the manure must be located at least one mile from the generating source. Farms impacted by the Phosphorus

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Management Tool receive priority for available funds under the Manure Transport Program, which has experienced extraordinary growth over the years. A chart detailing quantities and funding for both poultry litter and dairy manure transported is included in this report. Animal Waste Technology Fund The Maryland Agriculture Phosphorus Initiative included a provision to expand investments in new animal waste technology projects. The Animal Waste Technology Fund provides incentives to companies that demonstrate new technologies on farms and provide alternative strategies for managing animal manure. These technologies may generate energy from animal manure, reduce on-farm waste streams, and repurpose manure by creating marketable fertilizer and other products and by-products. Details about current projects and projects under consideration are included in this report. PMT On-Farm Economic Analysis Project The Phosphorus Management Tool regulations call for a two-year on-farm economic analysis to evaluate the economic and management impacts of implementing the new tool. (A broader, more comprehensive economic impact study was conducted in 2014 by Salisbury State University.) The data collected by the two-year on-farm analysis is currently being analyzed and a final report will be issued later this year. Findings will help the Department determine how PMT implementation changes farm management and resource needs and may be extrapolated statewide. The analysis began in spring 2015 with eight farms participating. The enrolled farms ran both the current Phosphorus Site Index and the new Phosphorus Management Tool on their fields, but followed the PMT recommendations. Farmers were reimbursed up to $125/acre for replacement fertilizer if required under PMT management and received a $25/acre participation fee. Study participants include three poultry farms that apply poultry litter to crop fields that they own, one crop farm (without animals), and four dairy farms that use the manure they generate to grow crops. Although an effort was made to enroll an organic farm, the cost of fertilizer (to replace poultry litter) was far greater than the reimbursement rate offered by the Department. More details on the economic study are included in the report.

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SOILS DATA

Soils Data as of 1/17/2017) Soil Test P FIV Less Than 150

Soil Test PIV 150 - 499

Soil Test P FIV Greater Than 500

County

2014 Total AIR Acres Reported

Total Acres submitted

% of County Reported Acres

% of Acres Acres

% of Acres Acres

% of Acres

WESTERN MARYLAND

Allegany 12,321.60 10,091.90 81.90% 9,532.40 94.46% 533.50 5.29% 26.00 0.26%

Carroll 94,462.98 75,820.42 80.26% 71,170.03 93.87% 4,518.49 5.96% 131.90 0.17%

Frederick 127,363.87 98,676.43 77.48% 87,356.65 88.53% 11,255.82 11.41% 63.96 0.06%

Garrett 39,478.24 28,256.97 71.58% 27,366.74 96.85% 865.23 3.06% 25.00 0.09%

Washington 80,805.27 60,444.35 74.80% 56,195.65 92.97% 4,231.05 7.00% 17.65 0.03%

Regional Total 354,431.96 273,290.07 77.11% 251,621.47 92.07% 21,404.09 7.83% 264.51 0.10%

CENTRAL MARYLAND

Baltimore 38,004.15 36,260.06 95.41% 34,301.08 94.60% 1,898.36 5.24% 60.62 0.17%

Harford 49,862.63 40,266.01 80.75% 36,673.58 91.08% 3,460.06 8.59% 132.37 0.33%

Howard 14,635.39 14,945.05 102.12% 13,677.85 91.52% 1,251.90 8.38% 15.30 0.10%

Montgomery 49,377.83 28,200.84 57.11% 27,245.45 96.61% 846.09 3.00% 109.30 0.39%

Regional Total 151,880.00 119,671.96 78.79% 111,897.96 93.50% 7,456.41 6.23% 317.59 0.27%

SOUTHERN MARYLAND

Anne Arundel 15,557.15 12,350.46 79.39% 8,985.77 72.76% 3,298.19 26.70% 66.50 0.54%

Prince George’s 12,069.75 10,366.24 85.89% 8,324.05 80.30% 2,008.19 19.37% 34.00 0.33%

Calvert 11,685.82 8,538.90 73.07% 5,689.50 66.63% 2,838.10 33.24% 11.30 0.13%

Charles 22,075.21 20,060.81 90.87% 15,912.21 79.32% 4,115.80 20.52% 32.80 0.16%

Saint Mary's 35,326.72 28,072.46 79.47% 21,093.96 75.14% 6,872.72 24.48% 105.78 0.38%

Regional Total 96,714.65 79,388.87 82.09% 60,005.49 75.58% 19,133.00 24.10% 250.38 0.32%

UPPER EASTERN SHORE

Cecil 51,726.39 57,939.99 112.01% 54,216.06 93.57% 3,590.17 6.20% 133.76 0.23%

Kent 95,083.11 92,746.15 97.54% 85,129.51 91.79% 7,274.52 7.84% 342.12 0.37%

Queen Anne’s 125,814.99 112,972.15 89.79% 98,495.01 87.19% 14,357.72 12.71% 119.42 0.11%

Regional Total 272,624.49 263,658.29 96.71% 237,840.58 90.21% 25,222.41 9.57% 595.30 0.23%

MID EASTERN SHORE

Talbot 69,783.22 65,560.26 93.95% 58,569.18 89.34% 6,932.68 10.57% 58.40 0.09%

Caroline 92,039.41 89,914.24 97.69% 58,434.75 64.99% 31,218.39 34.72% 261.10 0.29%

Dorchester 84,686.73 51,364.50 60.65% 38,036.64 74.05% 13,079.54 25.46% 248.32 0.48%

Regional Total 246,509.36 206,839.00 83.91% 155,040.57 74.96% 51,230.61 24.77% 567.82 0.27%

LOWER EASTERN SHORE

Somerset 32,598.90 27,011.51 82.86% 5,875.77 21.75% 17,417.44 64.48% 3,718.30 13.77%

Wicomico 53,223.80 46,209.11 86.82% 15,473.65 33.49% 24,794.72 53.66% 5,940.00 12.85%

Worcester 69,947.75 67,482.73 96.48% 20,867.79 30.92% 40,595.72 60.16% 6,019.22 8.92%

Regional Total 155,770.45 140,703.35 90.33% 42,217.21 30.00% 82,807.88 58.85% 15,677.52 11.14%

STATE TOTAL 1,277931 1,083,551.54 84.79% 858,623 79.24% 207,254 19.13% 17,673.12 1.63%

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TIER GROUPS

Tier Group Data as of 1/17/17

Tier Group A (150 - 300) Tier Group B (300 - 450) Tier Group C (Greater Than 450)

County Number of Operations

Number of Fields Acres

Number of Operations

Number of Fields Acres

Number of Operations

Number of Fields Acres

Western Maryland

Allegany 11 37 247.00 4 10 106.00 1 4 5.00

Carroll 75 322 3248.80 6 18 157.40 3 3 88.00

Frederick 147 527 7746.00 13 51 563.00 1 2 18.00

Garrett 10 39 264.00 0 0 0.00 1 1 25.00

Washington 89 273 3196.70 12 33 364.70 4 7 75.50

Regional Total 332 1,198 14,702.50 35 112 1,191.10 10 17 211.50

Central Maryland

Baltimore 36 133 1159.70 1 8 78.00 0 0 0.00

Harford 38 153 1579.10 7 35 270.00 2 3 27.00

Howard 17 67 895.80 2 5 108.00 0 0 0.00

Montgomery 24 99 696.00 4 8 59.10 2 11 173.00

Regional Total 115 452 4,330.60 14 56 515.10 4 14 200.00

Southern Maryland

Anne Arundel 62 354 2778.60 6 63 233.40 1 15 73.30 Prince George’s 34 110 1210.00 7 18 49.00 1 2 11.00

Calvert 41 227 1839.00 4 13 53.00 0 0 0.00

Charles 48 194 2782.00 4 9 53.00 1 1 5.00

Saint Mary's 91 456 5568.00 9 30 634.70 0 0 0.00

Regional Total 276 1,341 14,177.60 30 133 1,023.10 3 18 89.30

Upper Eastern Shore

Cecil 69 277 2487.00 10 30 315.00 0 0 0.00

Kent 49 306 6325.00 5 12 67.00 2 19 739.00

Queen Anne’s 83 362 7041.20 7 23 497.60 3 11 59.10

Regional Total 201 945 15,853.20 22 65 879.60 5 30 798.10

Mid Eastern Shore

Talbot 44 200 3725.20 5 29 559.40 0 0 0.00

Caroline 171 1368 26388.65 30 242 3391.90 4 5 64.00

Dorchester 76 1172 14883.70 15 126 2384.00 2 17 52.00

Regional Total 291 2,740 44,997.55 50 397 6,335.30 6 22 116.00

Lower Eastern Shore

Somerset 23 363 7017.00 25 135 10833.40 7 110 1498.90

Wicomico 49 690 10209.00 40 674 9806.00 44 409 5995.30

Worcester 26 491 11417.60 36 1243 23687.50 17 114 1984.60

Regional Total 98 1,544 28,643.60 101 2,052 44,326.90 68 633 9,478.80

MD State Total 1,313 8,220 122,705.05 252 2,815 54,271.10 96 734 10,893.70

Total All 3 Tier Groups 1,661 11,769 187,869.85

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ECONOMIC ANALYSIS

First year data has been collected from the eight farms participating in the On-Farm Economic Analysis. Information from the second year of the study is not yet available. Key observations regarding management and economic impact based on one year’s data are preliminary:

Both higher and lower yields were reported when commercial fertilizer was used instead of poultry litter. No conclusions can be drawn.

Commercial fertilizer increased the cost of production for the poultry litter farms when compared on a per acre cost or on a per bushel cost.

In 2015, corn planting at one farm was delayed due to rain. The yield suffered with commercial fertilizer, and the farmer speculates that poultry litter use would have resulted in nutrients being crop available for a longer period.

One dairy farm uses the Manure Transport Program (MTP) to move manure to another farm they manage which is located five miles away. Without MTP compensation, commercial fertilizer use on this farm would be a more cost effective nutrient source, but the farmer would have a surplus of manure at the home farm.

One dairy farm enrolled seven fields in the study and the nutrient recommendation for all of the fields was 162-0-0 (N-P-K). Since he only needed nitrogen, the cost of hauling the liquid manure was far greater than the value of the manure when only nitrogen value is considered.

Participants on the Eastern Shore were surprised to see how many fields moved from low or medium phosphorus levels when evaluated using the PSI to high under the PMT.

Although the regulation called for an Economic Analysis, it was recognized that an evaluation of the on-farm results of the eight participating farms should be considered case studies. One of the key preliminary findings of the study is the difference in the way fields scored using the Phosphorus Site Index vs. the Phosphorus Management Tool.

Phosphorus Site Index

Low Medium High

75% 25% 0%

Phosphorus Management Tool

Low Medium High

30.8% 30.8% 38.5%

The first analysis looked at the cost difference in implementing the PSI vs. the PMT on a per bushel basis, however, it was later determined that using a cost-difference on a per acre basis would achieve greater consistency among farms. The per acre method suited all farms including those that utilized the corn crop as silage for cattle. One case study has been included in this report that is fairly representative for the poultry farms. The dairy farm results need more careful analysis.

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Case Study: Farm 2015-P-02 Costs of Fertilizer under Phosphorus Site Index (PSI) Regulations

Input Price ($)

Manure 68-104-136 $15.00/ton @ 2 tons/acre

Spreading Manure $10.00/acre

N-SUL-32 $41.40/acre

Knife in N $10.00/acre

Total Cost Per Acre $91.40

Case Study: Farm 2015-P-02 Costs of Fertilizer under Phosphorus Management Tool (PMT) Regulations

Input Price ($)

10-0-30 $43.70/acre

Spreading $7.00/acre

N-SUL-32 $62.00/acre

Knife in N $10.00/acre

Total Cost Per Acre $122.70

The above chart shows the difference between the per acre cost of nutrients for Farm 2015-P-02. The cost using Phosphorus Site Index recommendations, which allow manure, is $91.40/acre. The cost using the Phosphorus Management Tool recommendation with commercial fertilizer is $122.70/acre, or an increase of $31.30 per acre using commercial fertilizer as a nutrient source replacement for poultry litter. The incorporation of year two data and a more comprehensive data analysis of the Economic Study is still underway. When complete, it will include observations and comments from participating farmers.

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POULTRY LITTER LAND APPLICATION ANALYSIS

The following analysis was completed to address the issue of “excess” poultry litter. Although there are several definitions/ interpretations of the term “excess”, the Department’s Nutrient Management Program uses the quantity reported as collected on the Annual Implementation Report (AIR) as being available and subject to management requirements in accordance with a nutrient management plan. This analysis only included acres on the Eastern Shore with soil phosphorus levels under 150 FIV, meaning those acres will not be subject to the Phosphorus Management Tool and would be eligible to receive poultry litter. Fields over 150 FIV may be able to utilize poultry litter under certain circumstances, but we chose to use conservative acreage numbers and did not include any acres over 150 FIV. This analysis indicates:

312,393 tons poultry litter collected/available in 2014

383,949 tons poultry litter collected/available in 2015

383,949 tons/2 ton application rate = 191,975 acres needed for application of poultry litter Upper Shore = 245,362 acres (90% of reported acres is below 150 FIV) Mid Shore = 184,882 acres (75% of reported acres is below 150 FIV) Lower Shore = 38,943 acres (25% of reported acres is below 150 FIV) Total acres available for spreading on the Eastern Shore= 469,187

January 2017

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MANURE TRANSPORT PROGRAM Manure Transport Program Fiscal Year 2016 Accomplishments

213,151 tons transported (all manure)

$1,402,182 in payments ($954,300 in State Cost-Share; $447,882 Poultry Company Funds)

Poultry Litter tons- 57,700

Other Manures tons- 155,400

Land applied poultry litter- 6,000 tons (17 contracts) Manure Transport Traditional Process

Continuation of existing application and claim process

Parts of a nutrient management plan submitted and reviewed at application stage

Allows interim or standardized litter analysis for nutrient management plan development

The PMT Advisory Committee has expressed a desire for an application process that shortens the amount of time it takes for an operator to get approval to receive transport funds. It is believed that a simpler application process with less time spent reviewing the nutrient management plan at application will lead to greater program participation and result in less litter imported into Maryland from other states. In response to this request, the Maryland Agricultural Water Quality Cost-Share (MACS) Program has proposed a draft Fast Track Application for poultry litter and a concept for a Fast Track Application for dairy manure. Manure Transport - Draft Fast Track Poultry Litter

Use standardized poultry litter analysis (4-3-3/NPK)

Standardized application rate: Up to 3 tons per acre, fields with a Fertility Index Value of 100 or less where corn will be planted

Fields with a Fertility Index Value greater than 100 are not eligible

The nutrient management plan would not be submitted at application or claim stage

Application obtained from Department website or soil conservation district

Application submittal includes soil analysis and field maps

Department reviews application for nutrient management and MACS compliance, conducts an Animal Health review, and verifies poultry company information

The goal will be to review and approve applications within 48 hours

There will be a goal of 25 percent of the Fast Track contracts to undergo a full nutrient management review in the first year. If a nutrient management plan deficiency associated with the Fast Track Application process is determined, the receiving operator will not be allowed to participate in the Transport Program for one year.

Concept for a Fast Track Dairy Application Process

Department reviews application for compliance with MACS and the Nutrient Management Program, conducts an Animal Health review, and verifies information

Application review and approval goal of 48 hours

Uses standardized dairy manure analysis (N-135/K-60/P-110)

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Only fields greater than one mile from production site will be eligible to receive manure.

Standardized application rate: Up to 6,000 gallons per acre; only fields with a Fertility Index Value of 100 or less that will be planted in corn would be eligible

Fields with a Fertility Index Value of that is greater than 100 are not eligible

The farm’s nutrient management plan would not be submitted at the application or claim stage; it will be reviewed later by Nutrient Management Program

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ANIMAL WASTE TECHNOLOGY GRANTS

Animal Waste Technology Projects Projects Animal Type/Location State Funding Technology Status

Biomass Heating Solutions, Inc. Annapolis, MD

Poultry Murphy Farms Dorchester County

$970,000 Fluidized bed (Thermochemical)

Commissioned December 2016; Operational January 2017

Green Mountain Technologies, Inc. Bainbridge Island, WA

Horse Days End Farm Howard County

$150,000 In vessel composter/ turnkey

Operational October 2015 - present Successful

Green Mountain Technologies, Inc. Bainbridge Island, WA

Dairy Cattle Iager Farm Frederick County

$237,520 In vessel composter/ turnkey

Operational December 2015 - present ; 3 months additional monitoring planned

Planet Found Energy Development Berlin, MD

Poultry Millennium Farms Worcester County

$676,144 Anaerobic digestion with nutrient separating system

Commissioning December 2016 -January 2017; Operational February 2017

Projects Approved October 2016 2016 Projects Animal Type/Location State Funding Technology

Veteran Compost Livestock Anne Arundel County

$350,302 Aerated Static Pile Composting

CleanBay Renewables Poultry Litter Somerset County

$1,400,000 Thermophilic Anaerobic Digester with Nutrient Recovery

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LOOKING AHEAD: IMPLEMENTATION

Phosphorus Management Tool Overview of How It Works - Risk 7 Year Transition Summary

Crop Year

2016 2017 2018 2019 2020 2021 2022

Tier C - Avg. FIV P 450 and above PSI/PMT PSI/PMT TM1 TM1 TM2 TM2 PMT

Tier B - Avg. FIV P 300-450 PSI/PMT PSI/PMT PSI TM1 TM2 TM2 PMT

Tier A - Avg. FIV P 150-300 PSI/PMT PSI/PMT PSI PSI TM1 TM2 PMT

PSI = Phosphorus Site Index

TM1 = Transition Management Phase 1

TM2 = Transition Management Phase 2

PMT = Phosphorus Management Tool

** Could add time if services are not adequate

Phosphorus Management Tool Overview of How It Works - Management PMT Risk Category Transition Management Phase 1 Transition Management Phase 2 PMT

Low N-Based (Not to Exceed 3 Year Crop Removal)

3 Year Crop Removal 3 Year Crop Removal

Medium 3 Year Crop Removal P 2 Year Crop Removal 1 Year Crop Removal

High 1 Year Crop Removal P 50% of 1 Year Crop Removal No Additional P Allowed

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RECOMMENDATIONS FROM THE COMMITTEE Highlights of 2016 Meeting There were a number of recommendations from the Committee, but only the Fast Track Application for Poultry Litter Transport gained full consensus. Other issues need further discussion and consideration at the next meeting. The Department’s decision to have consultants and certified farmers submit the soils phosphorus data was based on the following:

Consultants and certified farmers have easy access to the data

They are considered reliable and capable to interpret the instructions and send accurate data

Improves administrative efficiency since it reduces the amount of individuals who are required to comply

Following discussions with Committee members, it was recommended that in the future, farmers be required to submit soil data information to the Department. The next soils submission deadline is fall 2022. This recommendation requires a regulatory change. The Committee asked for an update on the availability of cost-share funding from the Maryland Agricultural Water Quality Cost-Share (MACS) Program for capital projects and were told that the Department did not anticipate any additional funding for Fiscal year 2017. There was a recommendation that this Committee would be actively involved in seeking ways to encourage the restoration of funds for the capital budget of the MACS Program. There was much discussion about establishing a Fast Track application process for the Manure Transport Program. This topic of discussion began at the Committee’s first meeting in 2015. The Department prepared a draft Fast Track proposal for the 2016 meeting. Farmers and committee members stated that many farmers do not use Maryland’s Manure Transport Program because it is too cumbersome, primarily due to the requirement that nutrient management plans be reviewed prior to approval. The Committee supports a Fast Track Application to encourage the transport and use of Maryland poultry litter. The biosolids industry expressed concern that restrictions for the application rate of Phosphorus are the same for both animal manure and biosolids when the P in biosolids is not as readily available. The industry has presented scientific references stating the sources could be treated differently to allow for a higher application rate for biosolids. The representative asked the Department to address biosolids separately so that available P is considered when setting management guidelines and not total P as currently used for all nutrient sources. The issue of confidentiality specific to nutrient management plan content was discussed. Although one of the Department’s attorneys general gave reasonable assurance to the Committee that nutrient management plan content is protected, and stated how the

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Department has prevailed in legal challenges that went through the court system, there was still skepticism. Some members of the Committee would appreciate written assurances and a guarantee that the Maryland Department of Agriculture will accept responsibility for liability and damages that may occur if it mistakenly discloses private information that leads to damages. The Committee was in general agreement with the regulatory changes as outlined by the Maryland Department of Agriculture that took effect on December 13, 2016. The changes allow an emergency spreading provision, remove the requirement for manure incorporation, and extend the fall spreading date to December 15th statewide. Some members had concerns about removing the incorporation requirement.

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SUMMARY The Phosphorus Management Tool Transition Advisory Committee met on August 24, 2016 for a comprehensive update on the progress of the Phosphorus Management Tool and associated actions required for full implementation. The Committee expressed a desire to be actively involved in the implementation of the Phosphorus Management Tool and would like the opportunity to offer suggestions for improvement. There were a number of recommendations from the Committee that were discussed and debated. There was consensus on the recommendation for a Fast Track Poultry Litter Transport Application. The Department’s Nutrient Management Program continues to work toward full implementation of the Phosphorus Management Tool and will continue to collect soils data with the goal of accounting for every farm in Maryland by the end of 2017.

50 Harry S. Truman Parkway Annapolis, MD 21401 410-841-5959 mda.maryland.gov