1. A. A unit may enter into a pay-for-success contract only if the procurement officer of the unit determines that:

   1. (1) The contract will produce estimated financial savings or other quantifiable public benefits for the State; and
   2. (2) A substantial portion of the outcome payment due under the contract will be paid only after specific outcomes have been documented.

2. B. This chapter applies only to procurements by:

   1. (1) The Department of Agriculture;
   2. (2) The Department of the Environment;
   3. (3) The Department of Natural Resources;
   4. (4) The Department of Transportation;
   5. (5) The Maryland Environmental Service; and
   6. (6) The Department of General Services.
3. C. This chapter does not apply to the purchase of nitrogen load reductions with funds from the Clean Water Commerce Account of the Bay Restoration Fund established under Environment Article, §9-1605.2, Annotated Code of Maryland.

4. D. A unit specified in §B of this regulation may enter into a pay-for-success contract with an aggregator to procure:

   1. (1) Delivery of an environmental outcomes project; or
   2. (2) Already certified environmental outcomes.
5. E. Other State and local entities may participate in a pay-for-success contract under this chapter in accordance with an intergovernmental cooperative purchasing agreement under COMAR 21.05.09.

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)