Maryland 2022 2022 Regular Session

Maryland House Bill HB171 Introduced / Bill

Filed 12/27/2021

                     
 
EXPLANATION: CAPITALS INDICATE MATTER ADDED TO EXIS TING LAW. 
        [Brackets] indicate matter deleted from existing law. 
          *hb0171*  
  
HOUSE BILL 171 
M5, C5   	2lr0992 
  	(PRE–FILED) 	CF 2lr0993 
By: Delegate Fraser–Hidalgo 
Requested: October 28, 2021 
Introduced and read first time: January 12, 2022 
Assigned to: Economic Matters and Environment and Transportation 
 
A BILL ENTITLED 
 
AN ACT concerning 1 
 
Climate Crisis and Environmental Justice Act 2 
 
FOR the purpose of requiring the State to reduce greenhouse gas emissions through various 3 
measures, including by altering statewide greenhouse gas emissions reduction 4 
requirements, requiring the Department of the Environment to adopt a certain plan 5 
for the reduction of statewide greenhouse gas emissions on or before a certain date, 6 
establishing a Climate Crisis Initiative in the Department, establishing a Climate 7 
Crisis Council to develop a plan to achieve certain emissions reductions, and 8 
establishing a greenhouse gas pollution fee on certain fuels; altering the date by 9 
which and the frequency with which a certain report must be submitted to the 10 
Governor and the General Assembly; requiring a local distribution company for 11 
natural gas to pay the fee for all natural gas that the company distributes for 12 
combustion in the State; establishing the Household and Employer Benefit Fund as 13 
a special, nonlapsing fund for certain purposes; requiring interest earnings of the 14 
Benefit Fund to be credited to the Benefit Fund; establishing the Climate Crisis 15 
Infrastructure Fund as a special, nonlapsing fund for certain purposes; requiring 16 
interest earnings of the Infrastructure Fund to be credited to the Infrastructure 17 
Fund; requiring the Commission on Environmental Just ice and Sustainable 18 
Communities to establish certain criteria for the disbursement and investment of 19 
certain money in the Infrastructure Fund; requiring the Secretary of the 20 
Environment to prepare certain reports periodically considering certain matters; 21 
requiring the Secretary of the Environment, in consultation with the Commission, 22 
the Secretary of Housing and Community Development, and the Secretary of Human 23 
Services, to identify certain measures and programs that provide low–income energy 24 
assistance and energy efficiency improvements for renter–occupied dwellings in 25 
consultation with certain units each year; and generally relating to greenhouse gas 26 
emissions reductions. 27 
 
BY renumbering 28 
 Article – Environment 29  2 	HOUSE BILL 171  
 
 
Section 2–1201 and 2–1202, respectively 1 
to be Section 2–1202 and 2–1201, respectively 2 
 Annotated Code of Maryland 3 
 (2013 Replacement Volume and 2021 Supplement) 4 
 
BY adding to 5 
 Article – Environment 6 
New part designation “Part I. Statewide Inventory and Emissions Reduction Plan” 7 
to immediately precede Section 2–1201; and Section 2–1215 through 2–1225 8 
to be under the new part “Part II. Climate Crisis Initiative”  9 
 Annotated Code of Maryland 10 
 (2013 Replacement Volume and 2021 Supplement) 11 
 
BY repealing and reenacting, without amendments, 12 
 Article – Environment 13 
Section 2–1201 and 2–1202(1) through (5) and (8) 14 
 Annotated Code of Maryland 15 
 (2013 Replacement Volume and 2021 Supplement) 16 
 (As enacted by Section 1 of this Act) 17 
 
BY repealing and reenacting, with amendments, 18 
 Article – Environment 19 
Section 2–1204.1, 2–1205, and 2–1211 20 
 Annotated Code of Maryland 21 
 (2013 Replacement Volume and 2021 Supplement) 22 
 
BY repealing and reenacting, without amendments, 23 
 Article – State Finance and Procurement 24 
 Section 6–226(a)(2)(i) 25 
 Annotated Code of Maryland 26 
 (2021 Replacement Volume) 27 
 
BY repealing and reenacting, with amendments, 28 
 Article – State Finance and Procurement  29 
Section 6–226(a)(2)(ii)144. and 145. 30 
 Annotated Code of Maryland 31 
 (2021 Replacement Volume) 32 
 
BY adding to 33 
 Article – State Finance and Procurement 34 
Section 6–226(a)(2)(ii)146. and 147. 35 
 Annotated Code of Maryland 36 
 (2021 Replacement Volume) 37 
 
BY repealing and reenacting, with amendments, 38 
 Chapter 11 of the Acts of the General Assembly of 2016 39 
 Section 6 40   	HOUSE BILL 171 	3 
 
 
 
 SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 1 
That Section(s) 2–1201 and 2–1202, respectively, of Article – Environment of the Annotated 2 
Code of Maryland be renumbered to be Section(s) 2–1202 and 2–1201, respectively. 3 
 
 SECTION 2. AND BE IT FURTHER ENACTED, That the Laws of Maryland read 4 
as follows: 5 
 
Article – Environment 6 
 
PART I. STATEWIDE INVENTORY AND EMISSIONS REDUCTION PLAN. 7 
 
2–1201. 8 
 
 (a) In this subtitle the following words have the meanings indicated. 9 
 
 (b) “Alternative compliance mechanism” means an action authorized by 10 
regulations adopted by the Department that achieves the equivalent reduction of 11 
greenhouse gas emissions over the same period as a direct emissions reduction. 12 
 
 (c) “Carbon dioxide equivalent” means the measurement of a given weight of a 13 
greenhouse gas that has the same global warming potential, measured over a specified 14 
period of time, as one metric ton of carbon dioxide. 15 
 
 (d) “Direct emissions reduction” means a reduction of greenhouse gas emissions 16 
from a greenhouse gas emissions source. 17 
 
 (e) “Greenhouse gas” includes carbon dioxide, methane, nitrous oxide, 18 
hydrofluorocarbons, perfluorocarbons, and sulfur hexafluoride. 19 
 
 (f) “Greenhouse gas emissions source” means a source or category of sources of 20 
greenhouse gas emissions that have emissions of greenhouse gases that are subject to 21 
reporting requirements or other provisions of this subtitle, as determined by the 22 
Department. 23 
 
 (g) “Leakage” means a reduction in greenhouse gas emissions within the State 24 
that is offset by a corresponding increase in greenhouse gas emissions from a greenhouse 25 
gas emissions source located outside the State that is not subject to a similar state, 26 
interstate, or regional greenhouse gas emissions cap or limitation. 27 
 
 (h) (1) “Manufacturing” means the process of substantially transforming, or a 28 
substantial step in the process of substantially transforming, tangible personal property 29 
into a new and different article of tangible personal property by the use of labor or 30 
machinery. 31 
 
 (2) “Manufacturing”, when performed by companies primarily engaged in 32 
the activities described in paragraph (1) of this subsection, includes: 33  4 	HOUSE BILL 171  
 
 
 
 (i) The operation of saw mills, grain mills, or feed mills; 1 
 
 (ii) The operation of machinery and equipment used to extract and 2 
process minerals, metals, or earthen materials or by–products that result from the 3 
extracting or processing; and 4 
 
 (iii) Research and development activities. 5 
 
 (3) “Manufacturing” does not include: 6 
 
 (i) Activities that are primarily a service; 7 
 
 (ii) Activities that are intellectual, artistic, or clerical in nature; 8 
 
 (iii) Public utility services, including gas, electric, water, and steam 9 
production services; or 10 
 
 (iv) Any other activity that would not commonly be considered as 11 
manufacturing. 12 
 
 (i) “Statewide greenhouse gas emissions” means the total annual emissions of 13 
greenhouse gases in the State, measured in metric tons of carbon dioxide equivalents, 14 
including all emissions of greenhouse gases from the generation of electricity delivered to 15 
and consumed in the State, and line losses from the transmission and distribution of 16 
electricity, whether the electricity is generated in–State or imported. 17 
 
2–1202. 18 
 
 The General Assembly finds that: 19 
 
 (1) Greenhouse gases are air pollutants that threaten to endanger the 20 
public health and welfare of the people of Maryland; 21 
 
 (2) Global warming poses a serious threat to the State’s future health, 22 
well–being, and prosperity; 23 
 
 (3) With 3,100 miles of tidally influenced shoreline, Maryland is vulnerable 24 
to the threat posed by global warming and susceptible to rising sea levels and flooding, 25 
which would have detrimental and costly effects; 26 
 
 (4) The State has the ingenuity to reduce the threat of global warming and 27 
make greenhouse gas reductions a part of the State’s future by achieving a 25% reduction 28 
in greenhouse gas emissions from 2006 levels by 2020 and by preparing a plan to meet a 29 
longer–term goal of reducing greenhouse gas emissions by up to 90% from 2006 levels by 30 
2050 in a manner that promotes new “green” jobs, and protects existing jobs and the State’s 31 
economic well–being; 32   	HOUSE BILL 171 	5 
 
 
 
 (5) Studies have shown that energy efficiency programs and technological 1 
initiatives consistent with the goal of reducing greenhouse gas emissions can result in a net 2 
economic benefit to the State;  3 
 
 (8) It is necessary to protect the public health, economic well–being, and 4 
natural treasures of the State by reducing harmful air pollutants such as greenhouse gas 5 
emissions by using practical solutions that are already at the State’s disposal; 6 
 
2–1204.1. 7 
 
 (A) The State shall reduce statewide greenhouse gas emissions by [40%]:  8 
 
 (1) 60% from 2006 levels by 2030; AND 9 
 
 (2) 100% FROM 2006 LEVELS BY 2040. 10 
 
 (B) AFTER 2040, STATEWIDE GREENHOUSE GAS EMISSIONS SHALL BE NET 11 
NEGATIVE. 12 
 
2–1205. 13 
 
 (a) The State shall develop plans, adopt regulations, and implement programs 14 
that reduce statewide greenhouse gas emissions in accordance with this subtitle. 15 
 
 (b) On or before December 31, 2018, the Department shall: 16 
 
 (1) Submit a proposed plan that reduces statewide greenhouse gas 17 
emissions by 40% from 2006 levels by 2030 to the Governor and General Assembly; 18 
 
 (2) Make the proposed plan available to the public; and 19 
 
 (3) Convene a series of public workshops to provide interested parties with 20 
an opportunity to comment on the proposed plan. 21 
 
 (c) (1) The Department shall, on or before December 31, 2012, adopt a final 22 
plan that reduces statewide greenhouse gas emissions by 25% from 2006 levels by 2020. 23 
 
 (2) The Department shall, on or before [December 31, 2019] DECEMBER 24 
31, 2022, adopt a final plan that reduces statewide greenhouse gas emissions by [40%] 25 
60% from 2006 levels by 2030. 26 
 
 (3) The plans shall be developed in recognition of the finding by the 27 
Intergovernmental Panel on Climate Change that developed countries will need to reduce 28 
greenhouse gas emissions by between 80% and 95% from 1990 levels by 2050. 29 
  6 	HOUSE BILL 171  
 
 
 (d) The final plans required under subsection (c) of this section shall include: 1 
 
 (1) Adopted regulations that implement all plan measures for which State 2 
agencies have existing statutory authority; and 3 
 
 (2) A summary of any new legislative authority needed to fully implement 4 
the plans and a timeline for seeking legislative authority. 5 
 
 (e) In developing and adopting a final plan to reduce statewide greenhouse gas 6 
emissions, the Department shall consult with State and local agencies as appropriate. 7 
 
 (f) (1) Unless required by federal law or regulations or existing State law, 8 
regulations adopted by State agencies to implement a final plan may not: 9 
 
 (i) Require greenhouse gas emissions reductions from the State’s 10 
manufacturing sector; or 11 
 
 (ii) Cause a significant increase in costs to the State’s manufacturing 12 
sector. 13 
 
 (2) Paragraph (1) of this subsection may not be construed to exempt 14 
greenhouse gas emissions sources in the State’s manufacturing sector from the obligation 15 
to comply with: 16 
 
 (i) Greenhouse gas emissions monitoring, recordkeeping, and 17 
reporting requirements for which the Department had existing authority under § 2–301(a) 18 
of this title on or before October 1, 2009; or 19 
 
 (ii) Greenhouse gas emissions reductions required of the 20 
manufacturing sector as a result of the State’s implementation of the Regional Greenhouse 21 
Gas Initiative. 22 
 
 (g) A regulation adopted by a State agency for the purpose of reducing greenhouse 23 
gas emissions in accordance with this section may not be construed to result in a significant 24 
increase in costs to the State’s manufacturing sector unless the source would not incur the 25 
cost increase but for the new regulation. 26 
 
2–1211. 27 
 
 The Department shall monitor implementation of the plans required under § 2–1205 28 
of this subtitle and shall submit a report, on or before [October 1, 2022] DECEMBER 31, 29 
2022, and every [5] 3 years thereafter, to the Governor and, in accordance with § 2–1257 30 
of the State Government Article, the General Assembly that describes the State’s progress 31 
toward achieving: 32 
 
 (1) The reductions in greenhouse gas emissions required under this 33 
subtitle, or any revisions conducted in accordance with § 2–1210 of this subtitle; and 34   	HOUSE BILL 171 	7 
 
 
 
 (2) The greenhouse gas emissions reductions needed by 2050 in order to 1 
avoid dangerous anthropogenic changes to the Earth’s climate system, based on the 2 
predominant view of the scientific community at the time of the latest report. 3 
 
2–1213. RESERVED. 4 
 
2–1214. RESERVED. 5 
 
PART II. CLIMATE CRISIS INITIATIVE. 6 
 
2–1215. 7 
 
 (A) IN THIS PART THE FOLL OWING WORDS HAVE THE MEANINGS 8 
INDICATED. 9 
 
 (B) “ADMINISTRATION ” MEANS THE MARYLAND ENERGY 10 
ADMINISTRATION . 11 
 
 (C) “ADULT RESIDENT ” MEANS A RESIDENT OF THE STATE WHO IS AT LEAST 12 
18 YEARS OLD. 13 
 
 (D) “BENEFIT FUND” MEANS THE HOUSEHOLD AND EMPLOYER BENEFIT 14 
FUND ESTABLISHED UNDE R § 2–1221 OF THIS SUBTITLE. 15 
 
 (E) “COMMISSION” MEANS THE PUBLIC SERVICE COMMISSION. 16 
 
 (F) “COUNCIL” MEANS THE CLIMATE CRISIS COUNCIL ESTABLISHED 17 
UNDER § 2–1217 OF THIS SUBTITLE. 18 
 
 (G) “EMPLOYER” MEANS A PERSON , A GOVERNMENTAL UNIT , OR ANY 19 
OTHER ENTITY THAT HA S EMPLOYEES WORKING IN THE STATE. 20 
 
 (H) “FOSSIL FUEL” MEANS: 21 
 
 (1) NATURAL GAS; 22 
 
 (2) PETROLEUM; 23 
 
 (3) COAL; AND 24 
 
 (4) ANY SOLID, LIQUID, OR GASEOUS FUEL DERI VED FROM ITEM (1), 25 
(2), OR (3) OF THIS SUBSECTION . 26 
  8 	HOUSE BILL 171  
 
 
 (I) “FUGITIVE EMISSIONS ” MEANS EMISSIONS OF G REENHOUSE GASES 1 
FROM EQUIPMENT , INCLUDING PIPELINES , DUE TO LEAKS OR OTHER UNINTENDED 2 
OR IRREGULAR RELEASE S. 3 
 
 (J) “GREENHOUSE GAS POLLUT ION FEE” OR “FEE” MEANS A FEE IMPOSED 4 
ON EACH CARBON DIOXI DE EQUIVALENT UNDER THIS PART. 5 
 
 (K) “INFRASTRUCTURE FUND” MEANS THE CLIMATE CRISIS 6 
INFRASTRUCTURE FUND ESTABLISHED UNDE R § 2–1222 OF THIS SUBTITLE. 7 
 
 (L) “INITIATIVE” MEANS THE CLIMATE CRISIS INITIATIVE ESTABLISHE D 8 
UNDER THIS PART . 9 
 
 (M) (1) “LIFE–CYCLE EMISSIONS ” MEANS GREENHOUSE GAS EMISSIONS 10 
THAT ARE RELEASED DU RING PHASES OF A FUE L OR OTHER PRODUCT ’S LIFE. 11 
 
 (2) “LIFE–CYCLE EMISSIONS ” INCLUDES GREENHOUSE 	GAS 12 
EMISSIONS RELEASED D URING EXTRACTION , PROCESSING, TRANSPORTATION , AND 13 
DISPOSAL ACTIVITIES . 14 
 
 (N) “MINOR RESIDENT ” MEANS A RESIDENT OF THE STATE WHO IS UNDER 15 
THE AGE OF 18 YEARS. 16 
 
 (O) “QUINTILE 1” MEANS THE 20% OF HOUSEHOLDS WITH PRE –TAX 17 
INCOMES THROUGH THE
 
20TH
 
PERCENTILE OF ALL HO USEHOLDS IN THE STATE. 18 
 
 (P) “QUINTILE 2” MEANS THE 20% OF HOUSEHOLDS WITH P RE–TAX 19 
INCOMES ABOVE THE
 
20TH PERCENTILE THROUG H THE
 
40TH PERCENTILE OF ALL 20 
HOUSEHOLDS IN THE STATE. 21 
 
 (Q) “QUINTILE 3” MEANS THE 20% OF HOUSEHOLDS WITH P RE–TAX 22 
INCOMES ABOVE THE
 
40TH PERCENTILE THROUG H THE
 
60TH PERCENTILE OF ALL 23 
HOUSEHOLDS IN THE STATE. 24 
 
 (R) “QUINTILE 4” MEANS THE 20% OF HOUSEHOLDS WITH P RE–TAX 25 
INCOMES ABOVE THE
 
60TH PERCENTILE THROUG H THE
 
80TH PERCENTILE OF ALL 26 
HOUSEHOLDS IN THE STATE. 27 
 
 (S) “QUINTILE 5” MEANS THE 20% OF HOUSEHOLDS WITH P RE–TAX 28 
INCOMES ABOVE THE
 
80TH PERCENTILE OF ALL HOUSEHOLDS IN THE STATE. 29 
 
2–1216. 30 
   	HOUSE BILL 171 	9 
 
 
 (A) THERE IS A CLIMATE CRISIS INITIATIVE IN THE DEPARTMENT . 1 
 
 (B) THE INITIATIVE PROVIDES F OR: 2 
 
 (1) THE ESTABLISHMENT OF GREENHOUSE GAS REDUC TION GOALS; 3 
 
 (2) THE ESTABLISHMENT OF A CLIMATE CRISIS COUNCIL; 4 
 
 (3) THE ASSESSMENT OF GRE ENHOUSE GAS POLLUTIO N FEES; 5 
 
 (4) BENEFITS TO HOUSEHOLD S AND EMPLOYERS IN T HE STATE TO 6 
MITIGATE THE IMPACT OF FEES UNDER THE INITIATIVE; AND 7 
 
 (5) THE FUNDING OF ACTIVI TIES FOR GREENHOUSE GAS REDUCTION 8 
AND SEQUESTRATION , IMPROVEMENTS IN RESI LIENCY, AND THE PROMOTION OF A 9 
JUST ECONOMIC TRANSI TION IN THE STATE. 10 
 
2–1217. 11 
 
 (A) THERE IS A CLIMATE CRISIS COUNCIL. 12 
 
 (B) THE COUNCIL CONSISTS OF T HE FOLLOWING MEMBERS : 13 
 
 (1) ONE MEMBER OF THE SENATE OF MARYLAND, SELECTED BY THE 14 
PRESIDENT OF THE SENATE; 15 
 
 (2) ONE MEMBER OF THE HOUSE OF DELEGATES, SELECTED BY THE 16 
SPEAKER OF THE HOUSE; AND 17 
 
 (3) EXPERTS IN THE FIELDS OF ECONOMICS, ENVIRONMENTAL 18 
SCIENCE, AND ENVIRONMENTAL JU STICE, AND OTHERS AS NEEDED , APPOINTED 19 
JOINTLY BY THE PRESIDENT AND THE SPEAKER. 20 
 
 (C) (1) THE SECRETARY, IN COORDINATION WITH THE COUNCIL, SHALL 21 
DEVELOP A PLAN TO ACHIEVE TH E REDUCTION TARGETS SET OUT IN § 2–1204.1 OF 22 
THIS SUBTITLE.  23 
 
 (2) THE PLAN:  24 
 
 (I) SHALL INCLUDE POLICIE S TO MITIGATE INEQUI TIES THAT 25 
COULD ARISE FROM THE IMPLEMENTATION OF TH E PLAN; AND 26 
 
 (II) MAY RECOMMEND AMENDME NTS TO THE FEE , BENEFIT 27  10 	HOUSE BILL 171  
 
 
FUND, AND INFRASTRUCTURE FUND ESTABLISHED UNDER §§ 2–1219 THROUGH  1 
2–1222 OF THIS SUBTITLE IF: 2 
 
 1. LOW– AND MODERATE –INCOME HOUSEHOLDS AN D  3 
ENERGY–INTENSIVE, TRADE–EXPOSED EMPLOYERS AR E REASONABLY PROTECT ED 4 
FROM FINANCIAL HARM ; AND 5 
 
 2. THE AMENDMENTS DO NOT DIMINISH THE 6 
EFFECTIVENESS OF THE FEE, BENEFIT FUND, AND INFRASTRUCTURE FUND AT 7 
REDUCING EMISSIONS . 8 
 
 (3) IN DEVELOPING THE PLA N AND ANY AMENDMENTS TO THE PLAN, 9 
THE SECRETARY SHALL : 10 
 
 (I) HOLD PERIODIC MEETINGS AT CONVENIENT LOCATIONS 11 
AND TIMES FOR PUBLIC PARTICIPATION ; AND 12 
 
 (II) PROVIDE A REASONABLE AMOUNT OF TIME IN EA CH 13 
MEETING FOR COMMENTS BY THE PUBLIC. 14 
 
 (4) BEFORE THE SECRETARY SUBMITS THE PLAN TO THE GENERAL 15 
ASSEMBLY UNDER SUBSECTION (D) OF THIS SECTION , AN INDEPENDENT AND 16 
RESPECTED ENTITY MUS T VERIFY THROUGH MOD ELING THAT THE PLAN WILL: 17 
 
 (I) MEET THE GREENHOUSE GAS REDUCTION TARGETS SET 18 
OUT IN § 2–1204.1 OF THIS SUBTITLE; AND 19 
 
 (II) BE EQUITABLE. 20 
 
 (D) ON OR BEFORE DECEMBER 31, 2022, THE SECRETARY SHALL SUBMI T 21 
THE PLAN DEVELOPED U NDER SUBSECTION (C) OF THIS SECTION TO THE GENERAL 22 
ASSEMBLY, IN ACCORDANCE WITH § 2–1257 OF THE STATE GOVERNMENT ARTICLE. 23 
 
2–1218. 24 
 
 (A) THE SECRETARY SHALL ADMIN ISTER THE SCHEDULES OF GREENHOUSE 25 
GAS POLLUTION FEES UNDER THIS PART. 26 
 
 (B) THE SECRETARY SHALL DELEG ATE ALL COLLECTION O F GREENHOUSE 27 
GAS POLLUTION CHARGE S, DISTRIBUTION OF BENE FITS, AND ANY OTHER 28 
APPROPRIATE FUNCTION S TO THE COMPTROLLER . 29 
 
 (C) THE COMPTROLLER SHALL CAR RY OUT ALL FUNCTIONS THE 30   	HOUSE BILL 171 	11 
 
 
SECRETARY DELEGATES TO THE COMPTROLLER UNDER THIS PART . 1 
 
2–1219. 2 
 
 (A) (1) EXCEPT AS PROVIDED IN PARAGRAPH (2) OF THIS SUBSECTION , A 3 
GREENHOUSE GAS POLLU TION FEE SHALL BE CO LLECTED ON ALL FOSSI L FUELS 4 
BROUGHT INTO THE STATE FOR COMBUSTION IN THE STATE. 5 
 
 (2) NOTWITHSTANDING ANY O THER LAW , A GREENHOUSE GAS 6 
POLLUTION FEE MAY NO T BE IMPOSED ON ANY GREENHOUSE GAS –PRODUCING 7 
SUBSTANCE:  8 
 
 (I) THAT WILL BE USED TO GENERATE ELEC TRICITY; OR 9 
 
 (II) IF THE IMPOSITION IS SUPERSEDED BY FEDERA L LAW OR 10 
REGULATION . 11 
 
 (B) SUBJECT TO SUBSECTION (C) OF THIS SECTION, THE FEE ASSESSED PER 12 
TON OF CARBON DIOXID E EQUIVALENT ON : 13 
 
 (1) NONTRANSPORTATION FUE LS SHALL: 14 
 
 (I) BE $15 FROM JULY 31, 2022, THROUGH DECEMBER 31, 15 
2023; 16 
 
 (II) BE $20 IN 2024; 17 
 
 (III) INCREASE BY $5 EACH YEAR THEREAFTER THROUGH 2031; 18 
AND 19 
 
 (IV) BE $60 IN 2032 AND EACH YEAR THEREA FTER; AND 20 
 
 (2) TRANSPORTATION FUELS SHALL: 21 
 
 (I) BE $10 FROM JULY 31, 2023, THROUGH DECEMBER 31, 22 
2023; 23 
 
 (II) BE $13 IN 2024; 24 
 
 (III) INCREASE BY $3 EACH YEAR THEREAFTER THROUGH 2031; 25 
AND  26 
 
 (IV) BE $37 IN 2032 AND EACH YEAR THEREA FTER. 27  12 	HOUSE BILL 171  
 
 
 
 (C) IF THE FEES AND BENEF ITS UNDER THIS PART TAKE EFFECT IN A 1 
CALENDAR YEAR LATER THAN 2023, THE SECRETARY SHALL DELAY THE SCHEDULE 2 
OF FEES UNDER SUBSEC TION (B) OF THIS SECTION BY THE SAME NUMBE R OF YEARS. 3 
 
 (D) (1) THE FEE ON FOSSIL FUE LS TO BE COMBUSTED I N THE STATE 4 
SHALL BE:  5 
 
 (I) COLLECTED AT THE FOSSIL FUEL’S FIRST POINT OF SALE IN 6 
THE STATE; AND 7 
 
 (II) PAID BY THE ENTITY TR ANSPORTING THE FOSSI L FUEL 8 
INTO THE STATE. 9 
 
 (2) (I) SUBJECT TO SUBPARAGRA PH (II) OF THIS PARAGRAPH , THE 10 
ANNUAL TOTAL OF FEES PAID BY AN ENTITY TRANSPO RTING PETROLEUM 11 
PRODUCTS INTO THE STATE UNDER PARAGRAPH (1) OF THIS SUBSECTION S HALL BE 12 
REDUCED BY AN AMOUNT EQUAL TO THE ANNUAL TOTAL OF EMISSIONS 13 
COMPLIANCE COST OBLI GATIONS THE PETROLEU M PRODUCT IS SUBJECT TO UNDER 14 
REGIONAL INITIATIVES , INCLUDING THE TRANSPORTATION AND CLIMATE 15 
INITIATIVE, FOR THE SAME YEAR . 16 
 
 (II) THE AMOUNT DEDUCTED U NDER SUBPARAGRAPH (I) OF 17 
THIS PARAGRAPH MAY NOT EXCEED THE TOTAL AMOUNT OF THE FEE CALCULATED 18 
UNDER SUBSECTION (B) OF THIS SECTION. 19 
 
 (3) (I) SUBJECT TO SUBPARAGRA PH (II) OF THIS PARAGRAPH , A 20 
FEE COLLECTED UNDER THIS SECTION MAY NOT BE PASSED THROUGH AS A DIRECT 21 
COST TO: 22 
 
 1. AN END USER OF A FOSS IL FUEL; OR 23 
 
 2. A CUSTOMER OF A GAS CO MPANY. 24 
 
 (II) THIS PARAGRAPH DOES N OT PROHIBIT THE PASS ING 25 
THROUGH TO A CUSTOME R OF A FEE COLLECTED UNDER THIS SECTION O N NATURAL 26 
GAS DISTRIBUTED BY A GAS COMPANY ONLY TO THE EXTENT THAT THE COMMISSION 27 
APPROVES THE FEE AS A PRUDENTLY INCURRED CO ST OF DISTRIBUTION . 28 
 
 (E) (1) A LOCAL DISTRIBUTION C OMPANY FOR NATURAL G AS SHALL PAY 29 
THE FEE FOR ALL NATU RAL GAS THAT THE COM PANY DISTRIBUTES FOR 30 
COMBUSTION IN THE STATE. 31 
   	HOUSE BILL 171 	13 
 
 
 (2) THE FEE UNDER THIS SU BSECTION SHALL BE CA LCULATED BY 1 
MULTIPLYING THE NUMBER OF CUBIC FEET OF NATURA L GAS USED BY EACH 2 
CUSTOMER BY THE AMOU NT OF CARBON DIOXIDE EQUIVALENTS RELEASED BY 3 
BURNING 1 CUBIC FOOT OF NATURA L GAS, AS THAT VALUE IS DET ERMINED BY THE 4 
U.S. ENERGY INFORMATION ADMINISTRATION . 5 
 
 (F) SUBJECT TO § 2–1223 OF THIS SUBTITLE, THE SECRETARY SHALL 6 
DETERMINE THE AMOUNT OF EMISSIONS, AS CARBON DIOXIDE EQ UIVALENTS, FROM 7 
ESCAPED OR INTENTION ALLY RELEASED METHAN E DUE TO THE EXTRACT ION, 8 
PROCESSING, TRANSPORT, OR DISTRIBUTION OF N ATURAL GAS BEFORE TH E POINT 9 
OF COMBUSTION IN THE STATE, AND MAY ADD AN ADDIT IONAL FEE FOR THESE 10 
EMISSIONS. 11 
 
 (G) (1) UNITS OF GOVERNMENT W HOSE PRIMARY PURPOSE IS TO 12 
PROVIDE PUBLIC TRANS PORTATION BY BUS , VAN, RAIL, OR OTHER MEANS THAT 13 
REDUCE THE AMOUNT OF DRIVING BY PRIVATE M OTOR VEHICLES SHALL BE EXEMPT 14 
FROM GREENHOUSE GAS POLLUT ION FEES UNDER THIS PART. 15 
 
 (2) IF AN EXEMPTION FOR A UNIT UNDER PARAGRAPH (1) OF THIS 16 
SUBSECTION IS NOT FE ASIBLE, THE UNIT SHALL BE FU LLY REIMBURSED FOR I TS 17 
INCREASED COSTS UNDE R THIS PART FROM THE BENEFIT FUND. 18 
 
 (H) SUBJECT TO SUBSE CTION (C) OF THIS SECTION , THE COLLECTION OF 19 
THE FEE UNDER THIS S ECTION SHALL BEGIN O N THE ADOPTION OF AL L NECESSARY 20 
RULES FOR ITS COLLEC TION, BUT NOT LATER THAN JANUARY 1, 2024, FOR 21 
EMISSIONS OCCURRING IN THE LAST 6 MONTHS OF 2023. 22 
 
 (I) THE FEES COLLECTE D UNDER THIS SECTION SHALL BE PAID INTO T HE 23 
INFRASTRUCTURE FUND AND THE BENEFIT FUND IN ACCORDANCE WI TH THIS 24 
PART. 25 
 
 (J) (1) USING THE BEST INFORM ATION AND SCIENCE RE ASONABLY 26 
AVAILABLE, THE SECRETARY SHALL DETER MINE WHETHER TO IDEN TIFY ANY 27 
GREENHOUSE GAS –EMITTING SUBSTANCE OR SOURCE, IN ADDITION TO NATUR AL 28 
GAS, PETROLEUM , COAL, AND THEIR DERIVATIVE S, AS BEING A FOSSIL FU EL 29 
SUBJECT TO THE FEE U NDER THIS PART . 30 
 
 (2) EMISSIONS FROM FARM A NIMALS AND CROPS MAY NOT BE 31 
DESIGNATED AS SUBJEC T TO THE FEE UNDER T HIS PART. 32 
 
 (K) (1) WITHIN 3 YEARS AFTER THE FEES AND BENEFITS UNDER T HIS 33 
PART TAKE EFFECT , AND EVERY 2 YEARS THEREAFTER , THE SECRETARY, IN 34 
CONSULTATION WITH TH E COUNCIL, SHALL SUBMIT A REPOR T TO THE GOVERNOR 35  14 	HOUSE BILL 171  
 
 
AND, IN ACCORDANCE WITH § 2–1257 OF THE STATE GOVERNMENT ARTICLE, THE 1 
GENERAL ASSEMBLY. 2 
 
 (2) THE REPORT SHALL TAKE INTO CONSIDERATION W HETHER ANY 3 
INCREASES OR DECREAS ES IN GREENHOUSE GAS POLLUTION FEES ARE 4 
RECOMMENDED TO : 5 
 
 (I) ACCOUNT FOR INFLATION ; 6 
 
 (II) ADDRESS LIFE –CYCLE EMISSIONS AND 	FUGITIVE 7 
EMISSIONS ISSUES ; 8 
 
 (III) ENSURE PROGRESS TOWAR D REACHING EMISSIONS LIMITS 9 
UNDER § 2–1204.1 OF THIS SUBTITLE AND SUBTITLE 10 OF THIS TITLE; AND 10 
 
 (IV) MITIGATE SERIOUS HARM TO ECONOMIC SECTORS , 11 
ECONOMIC SUBSECTORS , OR INDIVIDUAL ENERGY –INTENSIVE, TRADE–EXPOSED 12 
EMPLOYERS IN THE STATE CAUSED BY COLLE CTION OF GREENHOUSE GAS 13 
POLLUTION FEES UNDER THIS PART. 14 
 
 (3) TO MEET THE STATE’S GREENHOUSE GAS RED UCTION TARGETS 15 
UNDER § 2–1204.1 OF THIS SUBTITLE, THE REPORT SHALL INCL UDE 16 
RECOMMENDATIONS ON A DDITIONAL EMISSIONS SOURCES TO WHICH THE 17 
GREENHOUSE GAS POLLU TION FEE SHOULD APPL Y, INCLUDING INDUSTRIAL 18 
PROCESS EMISSIONS AN D EMISSIONS ASSOCIAT ED WITH THE GENERATI ON AND 19 
DISTRIBUTION OF ELEC TRICITY. 20 
 
2–1220. 21 
 
 (A) REVENUES FROM GREENHO USE GAS POLLUTION FE ES UNDER THIS 22 
PART SHALL BE DISTRI BUTED TO THE BENEFIT FUND AND THE INFRASTRUCTURE 23 
FUND IN ACCORDANCE WI TH THIS SECTION. 24 
 
 (B) OF THE REVENUES GENERAT ED BY THE FEE:  25 
 
 (1) 50% SHALL BE DISTRIBUTED EACH YEAR TO THE BENEFIT FUND 26 
FOR THE PURPOSE OF P ROVIDING BE NEFITS TO HOUSEHOLDS AND EMPLOYERS IN 27 
ACCORDANCE WITH § 2–1221 OF THIS SUBTITLE; AND 28 
 
 (2) 50% SHALL BE DISTRIBUTED EACH YEAR TO THE 29 
INFRASTRUCTURE FUND. 30 
 
2–1221. 31   	HOUSE BILL 171 	15 
 
 
 
 (A) THERE IS A HOUSEHOLD AND EMPLOYER BENEFIT FUND. 1 
 
 (B) THE PURPOSES OF THE BENEFIT FUND ARE TO: 2 
 
 (1) PROVIDE A HIGH DEGREE OF PROTECTION FOR LO W– AND 3 
MODERATE–INCOME HOUSEHOLDS IN THE STATE; AND 4 
 
 (2) PROTECT ENERGY –INTENSIVE, TRADE–EXPOSED EMPLOYERS IN 5 
THE STATE. 6 
 
 (C) THE SECRETARY SHALL ADMIN ISTER THE BENEFIT FUND. 7 
 
 (D) (1) THE BENEFIT FUND IS A SPECIAL , NONLAPSING FUND THAT IS 8 
NOT SUBJECT TO § 7–302 OF THE STATE FINANCE AND PROCUREMENT ARTICLE. 9 
 
 (2) THE STATE TREASURER SHALL HOLD THE BENEFIT FUND 10 
SEPARATELY, AND THE COMPTROLLER SHALL ACC OUNT FOR THE BENEFIT FUND. 11 
 
 (E) THE BENEFIT FUND CONSISTS OF : 12 
 
 (1) PROCEEDS OF FEES DIST RIBUTED TO THE BENEFIT FUND UNDER 13 
§ 2–1220(B) OF THIS SUBTITLE; 14 
 
 (2) MONEY APPROPRIATED IN THE STATE BUDGET TO THE BENEFIT 15 
FUND; AND 16 
 
 (3) ANY OTHER MONEY FROM ANY OTHER SOURCE ACC EPTED FOR 17 
THE BENEFIT OF THE BENEFIT FUND. 18 
 
 (F) THE BENEFIT FUND MAY BE USED ONLY FOR: 19 
 
 (1) PAYMENT OF BENEFITS U NDER THIS SECTION ; AND 20 
 
 (2) ADMINISTRATION OF THE BENEFIT FUND, NOT TO EXCEED 5% OF 21 
THE MONEY IN THE BENEFIT FUND. 22 
 
 (G) (1) THE STATE TREASURER SHALL INVES T THE MONEY OF THE 23 
BENEFIT FUND IN THE SAME MANN ER AS OTHER STATE MONEY MAY BE IN VESTED. 24 
 
 (2) ANY INTEREST EARNINGS OF THE BENEFIT FUND SHALL BE 25 
CREDITED TO THE BENEFIT FUND. 26 
  16 	HOUSE BILL 171  
 
 
 (H) IN THE BENEFIT FUND THERE ARE THE FO LLOWING SEPARATE 1 
ACCOUNTS: 2 
 
 (1) THE HOUSEHOLD BENEFIT ACCOUNT, WHICH CONSISTS OF 80% 3 
OF THE MONEY IN THE BENEFIT FUND; AND 4 
 
 (2) THE EMPLOYER BENEFIT ACCOUNT, WHICH CONSISTS OF 20% OF 5 
THE MONEY IN THE BENEFIT FUND. 6 
 
 (I) (1) (I) MONEY IN THE HOUSEHOLD BENEFIT ACCOUNT SHALL BE 7 
DISTRIBUTED AS BENEFITS IN ACCORDAN CE WITH THIS SUBSECT ION. 8 
 
 (II) 1. ONE–HALF SHALL BE DISTRI BUTED TO HOUSEHOLDS 9 
IN QUINTILE 1. 10 
 
 2. ONE–THIRD SHALL BE DISTR	IBUTED TO 11 
HOUSEHOLDS IN QUINTI LE 2. 12 
 
 3. ONE–SIXTH SHALL BE DISTR IBUTED TO HOUSEHOLDS 13 
IN QUINTILE 3. 14 
 
 (III) 1. IF THE QUINTILE 1 DISTRIBUTION IS NOT SUFFICIENT 15 
TO ENSURE THAT NO QU INTILE 1 HOUSEHOLD PAYS MORE IN FEES THAN IT 16 
RECEIVES IN BENEFITS , THE QUINTILE 1 DISTRIBUTION SHALL B E INCREASED TO 17 
ENSURE THAT THIS REQ UIREMENT IS MET . 18 
 
 2. IF THE DISTRIBU TION TO QUINTILE 1 IS GREATER 19 
THAN ONE–HALF, TWO–THIRDS OF THE FEES R EMAINING IN THE HOUSEHOLD 20 
BENEFIT ACCOUNT AFTER DISTRIB UTION TO QUINTILE 1 SHALL BE DISTRIBUTED 21 
TO QUINTILE 2 AND ONE–THIRD TO QUINTILE 3. 22 
 
 (2) (I) EACH QUINTILE’S TOTAL DISTRIBUTION AMOUNT SHALL BE 23 
DIVIDED BY THE SUM O F THE ADULT RESIDENT S IN THAT QUINTILE P LUS ONE–HALF 24 
OF THE MINOR RESIDEN TS IN THAT QUINTILE TO PRODUCE THAT QUIN TILE’S 25 
INITIAL BENEFIT. 26 
 
 (II) EACH HOUSEHOLD IN A Q UINTILE SHALL RECEIV E A 27 
BENEFIT EQUAL TO THA T QUINTILE’S INITIAL BENEFIT TI MES THE SUM OF THE 28 
NUMBER OF ADULT RESI DENTS IN THE HOUSEHO LD AND ONE–HALF OF THE NUMBER 29 
OF MINOR RESIDENTS I N THE HOUSEHOLD . 30 
 
 (3) ANY MONEY REMAINING I N THE HOUSEHOLD BENEFIT ACCOUNT 31 
AFTER THE DISTRIBUTI ON OF MONEY IN ACCOR DANCE WITH PARAGRAPH (1) OF 32   	HOUSE BILL 171 	17 
 
 
THIS SUBSECTION SHAL L BE DEPOSITED IN TH E INFRASTRUCTURE FUND. 1 
 
 (4) IN PROVIDING BENEFITS FROM FEE PROCEEDS FR OM THE 2 
HOUSEHOLD BENEFIT ACCOUNT, THE SECRETARY SHALL COORD INATE WITH THE 3 
COMPTROLLER , THE DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT , 4 
THE DEPARTMENT OF HUMAN SERVICES, AND OTHER UNITS IN M AKING ALL 5 
REASONABLE EFFORTS T O IDENTIFY THE NAMES AND ADDRESSES OF ALL 6 
RESIDENTS, WITH SPECIAL ATTENTI ON TO THE NAMES AND ADDRESSES OF 7 
LOW–INCOME RESIDENTS , SO THAT THEY CAN REC EIVE BENEFITS EXPEDITIOUSLY . 8 
 
 (5) MONEY DISTRIBUTED FRO M THE HOUSEHOLD BENEFIT 9 
ACCOUNT: 10 
 
 (I) MAY NOT BE INCLUDED I N TAXABLE INCOME FOR 11 
PURPOSES OF ANY STATE OR LOCAL INCOME TAX; AND 12 
 
 (II) SHALL, TO THE EXTENT FEASIB LE, BE EXCLUDED FROM 13 
HOUSEHOLD INCOME FOR PURPOSES OF DETERMIN ING ELIGIBILITY FOR , OR THE 14 
LEVEL OF, ANY FORM OF PUBLIC A SSISTANCE. 15 
 
 (J) (1) MONEY IN THE EMPLOYER BENEFIT ACCOUNT SHALL BE 16 
DISTRIBUTED IN ACCOR DANCE WITH THIS SUBS ECTION. 17 
 
 (2) THE SECRETARY SHALL USE T HE MONEY IN THE EMPLOYER 18 
BENEFIT ACCOUNT TO PROVIDE BE NEFITS TO EMPLOYERS . 19 
 
 (3) (I) THE SECRETARY, IN CONSULTATION WITH THE SECRETARY 20 
OF COMMERCE, THE SECRETARY OF LABOR, AND THE SECRETARY OF HOUSING AND 21 
COMMUNITY DEVELOPMENT , SHALL, WITH SPECIAL ATTENTI ON TO 22 
MANUFACTURING AND AG RICULTURE, IDENTIFY ECONOMIC SE CTORS OR ECONOMIC 23 
SUBSECTORS THAT ARE ENERGY–INTENSIVE AND TRADE –EXPOSED. 24 
 
 (II) THE SECRETARY SHALL , AS MITIGATION, CALCULATE THE 25 
TOTAL PROCEEDS COLLE CTED FROM THE SECTOR S OR SUBSECTORS IDEN TIFIED IN 26 
SUBPARAGRAPH (I) OF THIS PARAGRAPH AND MAY APP ORTION PART OR ALL O F THE 27 
PROCEEDS TO THE AFFE CTED SECTOR OR SUBSE CTOR. 28 
 
 (4) MONEY REMAINING IN TH E EMPLOYER BENEFIT ACCOUNT 29 
AFTER DISTRIBUTIONS UNDER PARAGRAPH (3) OF THIS SUBSECTION A RE 30 
CALCULATED SHALL BE DEPOSITED IN THE INFRASTRU CTURE FUND. 31 
 
 (K) (1) THE SECRETARY SHALL CONSI DER ALTERNATIVE CALE NDAR 32 
SCHEDULES FOR DISTRI BUTION OF THE BENEFI TS AUTHORIZED UNDER THIS 33  18 	HOUSE BILL 171  
 
 
SECTION, INCLUDING PARTIAL OR WHOLE DISTRIBUTIONS EARLY IN THE RELEVAN T 1 
REVENUE CYCLE AND ON A REGULAR BASIS THRO UGHOUT THE REVENUE CYCLE . 2 
 
 (2) THE METHOD AND SCHEDU LE OF DISTRIBUTION O F BENEFITS 3 
SHALL TAKE INTO ACCO UNT:  4 
 
 (I) THE NEEDS OF RESIDENT	S AND EMPLOYERS , 5 
PARTICULARLY LOW –INCOME HOUSEHOLDS , TO OBTAIN BENEFITS 6 
CORRESPONDING TO THE TIME SCHEDULE WHEN T HEY WILL BE PAYING 7 
GREENHOUSE GAS POLLU TION FEES; 8 
 
 (II) THE NEED TO MAKE CLEA R TO RESIDENTS AND E MPLOYERS 9 
THAT THEY ARE RECEIV ING A BENEFIT OF GRE ENHOUSE GAS POLLUTIO N FEES THAT 10 
IS SEPARATE FROM OTH ER TRANSACTIONS THEY MAY HAVE WITH THE STATE; AND 11 
 
 (III) THE NEED TO MINIMIZE THE ADMINISTRATIVE COSTS OF 12 
THE INITIATIVE. 13 
 
 (L) HOUSEHOLDS AND EMPLOY ERS MAY OPT TO RECEI VE A PORTION OR 14 
ALL OF THEIR BENEFIT S ON THEIR UTILITY B ILLS. 15 
 
 (M) THE SECRETARY MAY ISSUE A DDITIONAL BENEFITS O R DECLARE 16 
EXEMPTIONS FROM FEES IN INSTANCES WHERE FEES HAVE BEEN PAID BUT N O 17 
EMISSIONS HAVE OCCUR RED OR ARE ANTICIPAT ED TO OCCUR. 18 
 
2–1222. 19 
 
 (A) THERE IS A CLIMATE CRISIS INFRASTRUCTURE FUND. 20 
 
 (B) THE PURPOSE OF THE INFRASTRUCTURE FUND IS TO INVEST IN 21 
INITIATIVES THAT IMP ROVE THE HEALTH A ND WELFARE OF THE CI TIZENS OF THE 22 
STATE BY: 23 
 
 (1) EXPANDING THE USE OF CLEAN ENERGY SOURCES AND ENERGY 24 
EFFICIENCY IN THE EL ECTRICITY AND OTHER ENERGY–CONSUMING SECTORS ; 25 
 
 (2) CREATING A CLEANER , MORE JUST , AND MORE EFFICIENT 26 
TRANSPORTATION SECTO R THROUGHOUT THE STATE; 27 
 
 (3) PROVIDING FUNDING FOR RESILIENCY AGAINST C LIMATE 28 
CHANGE AND WEATHER E VENTS THAT HAVE AN I MPACT ON THE LIVES O F THE 29 
CITIZENS OF THE STATE AND ITS ECONOMY ; 30 
   	HOUSE BILL 171 	19 
 
 
 (4) SEQUESTERING CARBON I N FORESTS, SOILS, AND WETLANDS ; AND 1 
 
 (5) PROMOTING A JUST TRANS ITION TO CLEAN ENERG Y. 2 
 
 (C) (1) THE DEPARTMENT , IN CONSULTATION WITH THE COUNCIL, 3 
SHALL ADMINISTER THE INFRASTRUCTURE FUND. 4 
 
 (2) THE DEPARTMENT MAY DELEGA TE ADMINISTRATION OF A NY 5 
PROGRAMS DEVELOPED U NDER THE INFRASTRUCTURE FUND TO STATE AGENCIES, 6 
REGIONAL AUTHORITIES , MUNICIPAL GOVERNMENT S, AND OTHER PUBLIC 7 
INSTITUTIONS.  8 
 
 (D) (1) THE INFRASTRUCTURE FUND IS A SPECIAL , NONLAPSING FUND 9 
THAT IS NOT SUBJECT TO § 7–302 OF THE STATE FINANCE AND PROCUREMENT 10 
ARTICLE. 11 
 
 (2) THE STATE TREASURER SHALL HOLD THE INFRASTRUCTURE 12 
FUND SEPARATELY , AND THE COMPTROLLER SHALL ACC OUNT FOR THE 13 
INFRASTRUCTURE FUND. 14 
 
 (E) THE INFRASTRUCTURE FUND CONSISTS OF : 15 
 
 (1) PROCEEDS OF FEES DIST RIBUTED TO THE INFRASTRUCTURE 16 
FUND UNDER § 2–1220(B) OF THIS SUBTITLE; 17 
 
 (2) ANY EXCESS OF UNSPENT BENEFITS RECEIVED FR OM THE 18 
BENEFIT FUND UNDER § 2–1221(I)(3) AND (J)(4) OF THIS SUBTITLE; 19 
 
 (3) MONEY APPROPRIATED IN THE STATE BUDGET TO THE 20 
INFRASTRUCTURE FUND; AND 21 
 
 (4) ANY OTHER MONEY FROM ANY OTHER SOURCE ACC EPTED FOR 22 
THE BENEFIT OF THE INFRASTRUCTURE FUND. 23 
 
 (F) (1) THE INFRASTRUCTURE FUND MAY BE USED ONLY FOR: 24 
 
 (I) THE PURPOSES AUTHORIZED U NDER THIS SECTION ; AND 25 
 
 (II) ADMINISTRATION OF THE INFRASTRUCTURE FUND, NOT TO 26 
EXCEED 5% OF THE MONEY IN THE INFRASTRUCTURE FUND. 27 
 
 (2) WHEN FEASIBLE, INVESTMENTS UNDER TH IS SECTION SHALL BE 28 
DESIGNED TO CREATE L OCAL ECONOMIC DEVELO PMENT AND EMPLOYMENT IN THE 29  20 	HOUSE BILL 171  
 
 
STATE. 1 
 
 (G) (1) UP TO 50% OF THE MONEY IN THE INFRASTRUCTURE FUND MAY 2 
BE DISBURSED TO QUALIFIED COUNTY AND MUNICIPAL GOVERNMENTS FOR 3 
PROJECTS THAT MEET T HE REQUIREMENTS OF T HIS SUBTITLE. 4 
 
 (2) (I) ON OR BEFORE JANUARY 1, 2023, THE COUNCIL, IN 5 
CONSULTATION WITH TH E COMMISSION ON ENVIRONMENTAL JUSTICE AND 6 
SUSTAINABLE COMMUNITIES , SHALL ESTABLISH AND PUBLISH THE CRITERIA A 7 
COUNTY OR MUNICIPAL GOVERNMENT MUST MEET TO BE A QUALIFIED CO UNTY OR 8 
QUALIFIED MUNICIPAL GOVERNMENT . 9 
 
 (II) THE CRITERIA ESTABLISHED UNDER SU BPARAGRAPH (I) OF 10 
THIS PARAGRAPH SHALL REQUIRE, AT A MINIMUM, THAT A COUNTY OR MUN ICIPAL 11 
GOVERNMENT SUBMIT TO THE DEPARTMENT A 2030 GREENHOUSE GAS REDUC TION 12 
PLAN FOR THE COUNTY OR MU NICIPALITY:  13 
 
 1. THAT IS ALIGNED WITH STATEWI DE GREENHOUSE 14 
GAS REDUCTION REQUIR EMENTS; AND 15 
 
 2. FOR WHICH THE COUNTY ’S OR MUNICIPALITY ’S 16 
RESIDENTS WERE SUFFICIENTLY INVOLVED. 17 
 
 (H) (1) THE SECRETARY MAY USE UP TO 5% OF THE MONEY IN THE 18 
INFRASTRUCTURE FUND TO PROVIDE TECHN ICAL ASSISTANCE , CAPACITY, AND 19 
PLANNING TO OLS TO COUNTY AND MUNI CIPAL GOVERNMENTS FO R THE 20 
DEVELOPMENT OF LOCAL CLIMATE PLANS AND IN VESTMENT PROPOSALS .  21 
 
 (2) IN USING THE MONEY IN T HE INFRASTRUCTURE FUND UNDER 22 
PARAGRAPH (1) OF THIS SUBSECTION , THE SECRETARY SHALL GIVE DUE 23 
CONSIDERATION TO COU NTIES AND MUNICIPALI TIES WITH ENVIRONMEN TAL 24 
JUSTICE POPULATIONS . 25 
 
 (I) (1) AT LEAST 50% OF THE MONEY IN THE INFRASTRUCTURE FUND 26 
SHALL BE INVESTED IN PROJECTS THAT ARE LO CATED WITHIN AND PRO VIDE 27 
MEANINGFUL BENEFITS TO ENVIRONMENTAL JUS TICE POPULATIONS . 28 
 
 (2) (I) ON OR BEFORE JANUARY 1, 2023, AND EVERY 3 YEARS 29 
THEREAFTER , THE COMMISSION ON ENVIRONMENTAL JUSTICE AND SUSTAINABLE 30 
COMMUNITIES SHALL EST ABLISH THE CRITERIA A POPULATION MUST ME ET TO BE 31 
CONSIDERED AN ENVIRO NMENTAL JUSTICE POPU LATION FOR THE PURPO SES OF 32 
THIS SECTION. 33 
   	HOUSE BILL 171 	21 
 
 
 (II) IN ESTABLISHING THE C RITERIA UNDER SUBPAR AGRAPH 1 
(I) OF THIS PARAGRAPH , THE COMMISSION ON ENVIRONMENTAL JUSTICE AND 2 
SUSTAINABLE COMMUNITIES SHALL :  3 
 
 1. USE, AT A MINIMUM , ANNUAL HOUSEHOLD INC OME, 4 
MINORITY STATUS , AND ENVIRONMENTAL BU RDEN AS CRITERIA ;  5 
 
 2. ENSURE THAT NOT MORE THAN 50% OF THE STATE 6 
POPULATION RESIDES WIT HIN AN ENVIRONMENTAL JUSTICE POPULATION ;  7 
 
 3. ENSURE THAT EACH ENVI RONMENTAL JUSTICE 8 
POPULATION IS NOT LA RGER THAN A CENSUS T RACT; AND 9 
 
 4. SOLICIT INPUT FROM TH E PUBLIC. 10 
 
 (3) ON OR BEFORE JANUARY 1, 2023, THE COMMISSION ON 11 
ENVIRONMENTAL JUSTICE AND SUSTAINABLE COMMUNITIES SHALL : 12 
 
 (I) DEFINE “MEANINGFUL BENEFIT S” THAT A PROJECT MAY 13 
PROVIDE TO ENVIRONME NTAL JUSTICE POPULAT IONS; 14 
 
 (II) DEVELOP A METHOD FOR DETERMINING WHAT PORTION OF 15 
A PROJECT’S EXPENDITURES ARE D IRECTLY LOCATED WITHIN , AND PROVIDE 16 
DIRECT MEANINGFUL BE NEFITS TO, ENVIRONMENTAL JUSTIC E POPULATIONS ; 17 
 
 (III) DEVELOP MEASURABLE CR ITERIA THAT A PROJECT 18 
RECEIVING FUNDING UN DER THIS SUBSECTION MUST MEET TO BE CONS IDERED 19 
DIRECTLY LOCATED WIT HIN, AND PROVIDING MEA NINGFUL BENEFITS TO , 20 
ENVIRONMENTAL JUSTIC E POPULATIONS ;  21 
 
 (IV) DEVELOP ANY PROCEDURE	S THE COMMISSION 22 
DETERMINES ARE NECES SARY TO DEMONSTRATE AN ENVIRONMENTAL JUS TICE 23 
POPULATION ’S SUPPORT OF A PROJE CT THAT WILL BE LOCA TED WITHIN AND 24 
PROVIDE MEANINGFUL BENEFITS TO THE ENVI RONMENTAL JUSTICE PO PULATION; 25 
AND 26 
 
 (V) ESTABLISH A PROCESS F OR RECIPIENTS OF FUN DING 27 
UNDER THIS SUBSECTIO N TO REPORT THE INFO RMATION UNDER ITEMS (II) AND (III) 28 
OF THIS PARAGRAPH TO THE SECRETARY.  29 
 
 (4) A RECIPIENT OF FUNDING UNDER THIS SUBSECTIO N SHALL 30 
REPORT ANNUALLY TO T HE SECRETARY ON THE INFORMATION U NDER PARAGRAPH 31 
(3) OF THIS SUBSECTION.  32  22 	HOUSE BILL 171  
 
 
 
 (J) (1) THE STATE TREASURER SHALL INVES T THE MONEY OF THE 1 
INFRASTRUCTURE FUND IN THE SAME MANN ER AS OTHER STATE MONEY MAY BE 2 
INVESTED. 3 
 
 (2) ANY INTEREST EARNINGS OF THE INFRASTRUCTURE FUND SHALL 4 
BE CREDITED TO THE INFRASTRUCTURE FUND. 5 
 
 (K) ON OR BEFORE JANUARY 1, 2023, AND EVERY 3 YEARS THEREAFTER , 6 
THE SECRETARY SHALL SUBMIT A REPOR T TO THE GENERAL ASSEMBLY, IN 7 
ACCORDANCE WITH § 2–1257 OF THE STATE GOVERNMENT ARTICLE, ON THE 8 
STATUS OF THE INFRASTRUCTURE FUND, INCLUDING INFORMATION REPORTED BY 9 
RECIPIENTS OF FUNDIN G UNDER SUBSECTION (I) OF THIS SECTION. 10 
 
2–1223. 11 
 
 (A) ON OR BEFORE JULY 1, 2024, THE SECRETARY SHALL STUDY AND 12 
PREPARE A REPORT ON THE FEASIB ILITY OF IMPOSING AN D COLLECTING 13 
ADDITIONAL GREENHOUS E GAS EMISSION FEES ON FUGITIVE EMISSION S AND 14 
INTENTIONAL RELEASES OF METHANE FROM NATU RAL GAS INFRASTRUCTU RE. 15 
 
 (B) THE REPORT SHALL INCL UDE AN ANALYSIS OF T HE FEASIBILITY AND 16 
EXPENSE OF: 17 
 
 (1) CALCULATING A REASONA BLY ACCURATE CURRENT STATISTICAL 18 
BASELINE, SPECIFIC TO THE STATE, OF FUGITIVE EMISSION S AND INTENTIONAL 19 
RELEASES; AND 20 
 
 (2) DEVELOPING AND DEPLOY ING A MEA NS OF CALCULATING 21 
REASONABLY ACCURATE UPDATES OF PROGRESS OR LACK OF PROGRESS IN 22 
REDUCING FUGITIVE EM ISSIONS AND INTENTIO NAL RELEASES . 23 
 
 (C) THE SECRETARY SHALL SUBMI T THE REPORT , INCLUDING ANY 24 
RECOMMENDED LEGISLAT IVE OR REGULATORY CH ANGES, TO THE GOVERNOR AND, 25 
IN ACCORDANCE WITH § 2–1257 OF THE STATE GOVERNMENT ARTICLE, THE 26 
GENERAL ASSEMBLY. 27 
 
 (D) THE REPORT MAY BE INC LUDED IN THE REPORT REQUIRED UNDER §  28 
2–1222(K) OF THIS SUBTITLE. 29 
 
2–1224. 30 
 
 EACH YEAR, THE SECRETARY, IN CONSULTATION WITH THE COMMISSION, 31   	HOUSE BILL 171 	23 
 
 
THE SECRETARY OF HOUSING AND COMMUNITY DEVELOPMENT , AND THE 1 
SECRETARY OF HUMAN SERVICES, SHALL IDENTIFY MEASU RES AND PROGRAMS 2 
BEST CALCULATED TO E NSURE THE PROVISION OF LOW–INCOME ENERGY 3 
ASSISTANCE AND IMPRO VEMENTS IN THE ENERG	Y EFFICIENCY OF 4 
RENTER–OCCUPIED DWELLINGS IN THE STATE. 5 
 
2–1225. 6 
 
 THE SECRETARY, IN CONSULTATION WITH THE COMMISSION, SHALL ADOPT 7 
REGULATIONS TO CARRY OUT THIS PART. 8 
 
Article – State Finance and Procurement 9 
 
6–226. 10 
 
 (a) (2) (i) Notwithstanding any other provision of law, and unless 11 
inconsistent with a federal law, grant agreement, or other federal requirement or with the 12 
terms of a gift or settlement agreement, net interest on all State money allocated by the 13 
State Treasurer under this section to special funds or accounts, and otherwise entitled to 14 
receive interest earnings, as accounted for by the Comptroller, shall accrue to the General 15 
Fund of the State. 16 
 
 (ii) The provisions of subparagraph (i) of this paragraph do not apply 17 
to the following funds: 18 
 
 144. the Health Equity Resource Community Reserve Fund; 19 
[and] 20 
 
 145. the Access to Counsel in Evictions Special Fund;  21 
 
 146. THE CLIMATE CRISIS INFRASTRUCTURE FUND; AND 22 
 
 147. THE HOUSEHOLD AND EMPLOYER BENEFIT FUND. 23 
 
Chapter 11 of the Acts of 2016 24 
 
 SECTION 6. AND BE IT FURTHER ENACTED, That Section 2 of this Act shall take 25 
effect October 1, 2016. [It shall remain effective for a period of 7 years and 3 months and 26 
at, the end of December 31, 2023, with no further action required by the General Assembly, 27 
Section 2 of this Act shall be abrogated and of no further force and effect.] 28 
 
 SECTION 3. AND BE IT FURTHER ENACTED, That this Act shall take effect July 29 
1, 2022. 30