1. A. In this chapter, the following words have the meaning indicated.

2. B. Terms Defined.

   1. (1) “Aggregator” means a person that:

      1. (a) Provides or contracts for environmental outcomes; or
      2. (b) Provides or raises capital to finance delivery of environmental outcomes.
   2. (2) “Environmental outcome” means a commodity that is modeled or directly measured as a single, quantifiable, and certified unit of improvement to the environment, including a nutrient or carbon benefit.
   3. (3) “Environmental outcomes project” means a project designed to secure environmental outcomes.
   4. (4) “Evaluator” means a person other than an aggregator that determines whether environmental outcomes have been achieved based on defined performance measures.
   5. (5) “Outcome payment” means the money paid when a pay-for-success contract performance measure is met.
   6. (6) “Pay-for-success contracting” means a performance-based procurement method through which a unit contracts with an organization to deliver services or commodities in exchange for payment based on the achievement of outcomes.

   7. (7) “Quantification plan” means a plan in which an aggregator describes:

      1. (a) The method that will be used to measure or model environmental outcomes and co-benefits under a pay-for-success contract;
      2. (b) The compliance monitoring that will occur to ensure that the actions proposed in the pay-for-success contract are taken and maintained over the life of the project;
      3. (c) Verification steps that will be carried out by the State to confirm model results or accurate measurement of environmental outcomes; and
      4. (d) The timeline for proposed payments under the pay-for-success contract.

Authority: State Finance and Procurement Article, §§13-101, 13-102, and 13-112.1, Annotated Code of Maryland

Effective date: September 18, 2023 (50:18 Md. R. 800)