LEONARDTOWN, Md. — St. Marys County commissioners approved two loan applications from the Metropolitan Commission on Jan. 13, 2026, to fund water and wastewater upgrades in Piney Point, including a force main replacement and pump station rehabilitations required under a 2024 consent decree with the Maryland Department of the Environment.
The board voted 3-2 to authorize a 30-year loan not exceeding $35,993,393 for capital projects and a 10-year loan not exceeding $1,215,000 for vehicles and equipment through the states Community Development Administration. The larger loan covers the Piney Point Force Main, Forest Run Wastewater Pump Station and Piney Point Wastewater Pump Station, among other initiatives.
MetCom officials stated the projects address environmental compliance and aging infrastructure without affecting current rates or charges. The approvals followed a presentation by MetCom Director George Erichsen, Chief Financial Officer Sean Bathay and Grants Administrator Debbie Settle during the commissioners meeting.
The Piney Point Force Main, identified as MetCom Project ID 5171MS, must be rehabilitated within 3.5 years from the date the Department approves the CAP Analysis under Article Three of the consent decree. The Forest Run Wastewater Pump Station, Project ID 8131SS, and the Piney Point Wastewater Pump Station, Project ID 5081SS, face the same timeline.
These upgrades stem from a consent decree entered Aug. 1, 2024, among the Maryland Department of the Environment, citizen groups Shore Thing Shellfish LLC and Potomac Riverkeeper Inc., and MetCom. The agreement resolves claims of violations under Title 9, Subtitle 3 of the Environment Article, Annotated Code of Maryland, involving unpermitted pollutant discharges and sanitary sewer overflows.
The decree requires MetCom to implement remedial measures to eliminate overflows from its collection system, including flow monitoring, hydraulic modeling and rehabilitation plans. Full implementation of the Sewer System Evaluation Survey Rehabilitation Plan must occur by Dec. 31, 2033.
During the meeting, Bathay explained the loans preference over Maryland Department of the Environment funding due to flexibility, eligibility and expedited closings. The projects are constrained by timelines articulated in the Maryland Department of the Environment consent decree, he said.
Erichsen addressed concerns about borrowing amounts and reserves. The 36 million number seems relatively high compared to the amount of past loans, but the DHCD still plans to bundle them with other requesters to get the best rates and distribution of administrative costs, Bathay noted.
Commissioners raised questions on draw schedules and use of unrestricted reserves of $29,784,000 as of the latest audit. Erichsen confirmed funds would be drawn as needed, not in one chunk, and projects were staggered over three to four years with 720-day construction cycles.
The consent decree includes a $250,500 civil penalty, with $125,250 paid directly to the department and the remainder funding a Supplemental Environmental Project for oyster restoration in the Potomac River watershed through the Potomac River Fisheries Commission. Stipulated penalties for missed deadlines start at $1,000 per day, escalating to $6,000 per day after 60 days. Penalties for post-entry overflows range from $500 for under 100 gallons to $10,000 for 50,000 gallons or more.
MetCom must submit an Inflow and Infiltration Characterization Report by Sept. 30, 2024, and a Capacity Management, Operations and Maintenance Plan within 180 days of the decrees entry. Semi-annual reports on overflows are required until termination, which occurs after full compliance, penalty payments and department approval of a post-construction report.
The decree mandates elimination of illegal discharges, proactive pump station maintenance and public posting of approved plans. It reserves rights for future enforcement on non-decree matters and allows force majeure extensions for unforeseeable events like disasters or supply disruptions.
In the meeting, Erichsen noted MetComs 2025 audit showed $43.5 million in reserves, but obligated funds for projects like the $23 million St. Clement Shores Wastewater Treatment Plant would draw them down. By 2031, combined reserves could fall to $11.5 million if growth assumptions hold, below policy targets.
The loans mark MetComs first request in two years, with a prior 2024 loan of $11.7 million nearly fully drawn. Officials projected 89 new water customers and 147 sewer customers annually, influencing reserve growth from equivalent dwelling unit fees.
Commissioner Mike Hewitt questioned borrowing timelines, suggesting use of reserves for shorter-life assets like vehicles. Commissioner Mike Alderson Jr. expressed concerns over paying interest before construction, advocating smaller, phased loans.
Despite split votes, Commissioner Eric Colvin highlighted no impact to rates and pre-approved projects. The funds will not all be drawn down at once, they would be delayed until needed for the projects, he stated in a post-meeting update.
The consent decree emphasizes compliance with NPDES Permit MD0021679, limiting phosphorus and nitrogen discharges. It prohibits overflows except in minor cases and requires emergency response plans with public notices and root cause analyses.
MetCom operates the Marlay-Taylor Water Reclamation Facility serving Lexington Park, Hollywood and Piney Point, with average daily flow of 4 million gallons in fiscal 2017. A prior 2017 consent order for enhanced nutrient removal at that facility was terminated after upgrades.
These Piney Point projects support Southern Marylands environmental protection amid suburban growth, ensuring wastewater systems meet state standards through 2033.