Maryland 2022 Regular Session

Maryland House Bill HB171 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1
2	2
3	3	EXPLANATION: CAPITALS INDICATE MATTER ADDED TO EXIS TING LAW.
4	4	[Brackets] indicate matter deleted from existing law.
5	5	hb0171
6	6
7	7	HOUSE BILL 171
8	8	M5, C5 2lr0992
9	9	(PRE–FILED) CF 2lr0993
10	10	By: Delegate Fraser–Hidalgo
11	11	Requested: October 28, 2021
12	12	Introduced and read first time: January 12, 2022
13	13	Assigned to: Economic Matters and Environment and Transportation
14	14
15	15	A BILL ENTITLED
16	16
17	17	AN ACT concerning 1
18	18
19	19	Climate Crisis and Environmental Justice Act 2
20	20
21	21	FOR the purpose of requiring the State to reduce greenhouse gas emissions through various 3
22	22	measures, including by altering statewide greenhouse gas emissions reduction 4
23	23	requirements, requiring the Department of the Environment to adopt a certain plan 5
24	24	for the reduction of statewide greenhouse gas emissions on or before a certain date, 6
25	25	establishing a Climate Crisis Initiative in the Department, establishing a Climate 7
26	26	Crisis Council to develop a plan to achieve certain emissions reductions, and 8
27	27	establishing a greenhouse gas pollution fee on certain fuels; altering the date by 9
28	28	which and the frequency with which a certain report must be submitted to the 10
29	29	Governor and the General Assembly; requiring a local distribution company for 11
30	30	natural gas to pay the fee for all natural gas that the company distributes for 12
31	31	combustion in the State; establishing the Household and Employer Benefit Fund as 13
32	32	a special, nonlapsing fund for certain purposes; requiring interest earnings of the 14
33	33	Benefit Fund to be credited to the Benefit Fund; establishing the Climate Crisis 15
34	34	Infrastructure Fund as a special, nonlapsing fund for certain purposes; requiring 16
35	35	interest earnings of the Infrastructure Fund to be credited to the Infrastructure 17
36	36	Fund; requiring the Commission on Environmental Just ice and Sustainable 18
37	37	Communities to establish certain criteria for the disbursement and investment of 19
38	38	certain money in the Infrastructure Fund; requiring the Secretary of the 20
39	39	Environment to prepare certain reports periodically considering certain matters; 21
40	40	requiring the Secretary of the Environment, in consultation with the Commission, 22
41	41	the Secretary of Housing and Community Development, and the Secretary of Human 23
42	42	Services, to identify certain measures and programs that provide low–income energy 24
43	43	assistance and energy efficiency improvements for renter–occupied dwellings in 25
44	44	consultation with certain units each year; and generally relating to greenhouse gas 26
45	45	emissions reductions. 27
46	46
47	47	BY renumbering 28
48	48	Article – Environment 29 2 HOUSE BILL 171
49	49
50	50
51	51	Section 2–1201 and 2–1202, respectively 1
52	52	to be Section 2–1202 and 2–1201, respectively 2
53	53	Annotated Code of Maryland 3
54	54	(2013 Replacement Volume and 2021 Supplement) 4
55	55
56	56	BY adding to 5
57	57	Article – Environment 6
58	58	New part designation “Part I. Statewide Inventory and Emissions Reduction Plan” 7
59	59	to immediately precede Section 2–1201; and Section 2–1215 through 2–1225 8
60	60	to be under the new part “Part II. Climate Crisis Initiative” 9
61	61	Annotated Code of Maryland 10
62	62	(2013 Replacement Volume and 2021 Supplement) 11
63	63
64	64	BY repealing and reenacting, without amendments, 12
65	65	Article – Environment 13
66	66	Section 2–1201 and 2–1202(1) through (5) and (8) 14
67	67	Annotated Code of Maryland 15
68	68	(2013 Replacement Volume and 2021 Supplement) 16
69	69	(As enacted by Section 1 of this Act) 17
70	70
71	71	BY repealing and reenacting, with amendments, 18
72	72	Article – Environment 19
73	73	Section 2–1204.1, 2–1205, and 2–1211 20
74	74	Annotated Code of Maryland 21
75	75	(2013 Replacement Volume and 2021 Supplement) 22
76	76
77	77	BY repealing and reenacting, without amendments, 23
78	78	Article – State Finance and Procurement 24
79	79	Section 6–226(a)(2)(i) 25
80	80	Annotated Code of Maryland 26
81	81	(2021 Replacement Volume) 27
82	82
83	83	BY repealing and reenacting, with amendments, 28
84	84	Article – State Finance and Procurement 29
85	85	Section 6–226(a)(2)(ii)144. and 145. 30
86	86	Annotated Code of Maryland 31
87	87	(2021 Replacement Volume) 32
88	88
89	89	BY adding to 33
90	90	Article – State Finance and Procurement 34
91	91	Section 6–226(a)(2)(ii)146. and 147. 35
92	92	Annotated Code of Maryland 36
93	93	(2021 Replacement Volume) 37
94	94
95	95	BY repealing and reenacting, with amendments, 38
96	96	Chapter 11 of the Acts of the General Assembly of 2016 39
97	97	Section 6 40 HOUSE BILL 171 3
98	98
99	99
100	100
101	101	SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 1
102	102	That Section(s) 2–1201 and 2–1202, respectively, of Article – Environment of the Annotated 2
103	103	Code of Maryland be renumbered to be Section(s) 2–1202 and 2–1201, respectively. 3
104	104
105	105	SECTION 2. AND BE IT FURTHER ENACTED, That the Laws of Maryland read 4
106	106	as follows: 5
107	107
108	108	Article – Environment 6
109	109
110	110	PART I. STATEWIDE INVENTORY AND EMISSIONS REDUCTION PLAN. 7
111	111
112	112	2–1201. 8
113	113
114	114	(a) In this subtitle the following words have the meanings indicated. 9
115	115
116	116	(b) “Alternative compliance mechanism” means an action authorized by 10
117	117	regulations adopted by the Department that achieves the equivalent reduction of 11
118	118	greenhouse gas emissions over the same period as a direct emissions reduction. 12
119	119
120	120	(c) “Carbon dioxide equivalent” means the measurement of a given weight of a 13
121	121	greenhouse gas that has the same global warming potential, measured over a specified 14
122	122	period of time, as one metric ton of carbon dioxide. 15
123	123
124	124	(d) “Direct emissions reduction” means a reduction of greenhouse gas emissions 16
125	125	from a greenhouse gas emissions source. 17
126	126
127	127	(e) “Greenhouse gas” includes carbon dioxide, methane, nitrous oxide, 18
128	128	hydrofluorocarbons, perfluorocarbons, and sulfur hexafluoride. 19
129	129
130	130	(f) “Greenhouse gas emissions source” means a source or category of sources of 20
131	131	greenhouse gas emissions that have emissions of greenhouse gases that are subject to 21
132	132	reporting requirements or other provisions of this subtitle, as determined by the 22
133	133	Department. 23
134	134
135	135	(g) “Leakage” means a reduction in greenhouse gas emissions within the State 24
136	136	that is offset by a corresponding increase in greenhouse gas emissions from a greenhouse 25
137	137	gas emissions source located outside the State that is not subject to a similar state, 26
138	138	interstate, or regional greenhouse gas emissions cap or limitation. 27
139	139
140	140	(h) (1) “Manufacturing” means the process of substantially transforming, or a 28
141	141	substantial step in the process of substantially transforming, tangible personal property 29
142	142	into a new and different article of tangible personal property by the use of labor or 30
143	143	machinery. 31
144	144
145	145	(2) “Manufacturing”, when performed by companies primarily engaged in 32
146	146	the activities described in paragraph (1) of this subsection, includes: 33 4 HOUSE BILL 171
147	147
148	148
149	149
150	150	(i) The operation of saw mills, grain mills, or feed mills; 1
151	151
152	152	(ii) The operation of machinery and equipment used to extract and 2
153	153	process minerals, metals, or earthen materials or by–products that result from the 3
154	154	extracting or processing; and 4
155	155
156	156	(iii) Research and development activities. 5
157	157
158	158	(3) “Manufacturing” does not include: 6
159	159
160	160	(i) Activities that are primarily a service; 7
161	161
162	162	(ii) Activities that are intellectual, artistic, or clerical in nature; 8
163	163
164	164	(iii) Public utility services, including gas, electric, water, and steam 9
165	165	production services; or 10
166	166
167	167	(iv) Any other activity that would not commonly be considered as 11
168	168	manufacturing. 12
169	169
170	170	(i) “Statewide greenhouse gas emissions” means the total annual emissions of 13
171	171	greenhouse gases in the State, measured in metric tons of carbon dioxide equivalents, 14
172	172	including all emissions of greenhouse gases from the generation of electricity delivered to 15
173	173	and consumed in the State, and line losses from the transmission and distribution of 16
174	174	electricity, whether the electricity is generated in–State or imported. 17
175	175
176	176	2–1202. 18
177	177
178	178	The General Assembly finds that: 19
179	179
180	180	(1) Greenhouse gases are air pollutants that threaten to endanger the 20
181	181	public health and welfare of the people of Maryland; 21
182	182
183	183	(2) Global warming poses a serious threat to the State’s future health, 22
184	184	well–being, and prosperity; 23
185	185
186	186	(3) With 3,100 miles of tidally influenced shoreline, Maryland is vulnerable 24
187	187	to the threat posed by global warming and susceptible to rising sea levels and flooding, 25
188	188	which would have detrimental and costly effects; 26
189	189
190	190	(4) The State has the ingenuity to reduce the threat of global warming and 27
191	191	make greenhouse gas reductions a part of the State’s future by achieving a 25% reduction 28
192	192	in greenhouse gas emissions from 2006 levels by 2020 and by preparing a plan to meet a 29
193	193	longer–term goal of reducing greenhouse gas emissions by up to 90% from 2006 levels by 30
194	194	2050 in a manner that promotes new “green” jobs, and protects existing jobs and the State’s 31
195	195	economic well–being; 32 HOUSE BILL 171 5
196	196
197	197
198	198
199	199	(5) Studies have shown that energy efficiency programs and technological 1
200	200	initiatives consistent with the goal of reducing greenhouse gas emissions can result in a net 2
201	201	economic benefit to the State; 3
202	202
203	203	(8) It is necessary to protect the public health, economic well–being, and 4
204	204	natural treasures of the State by reducing harmful air pollutants such as greenhouse gas 5
205	205	emissions by using practical solutions that are already at the State’s disposal; 6
206	206
207	207	2–1204.1. 7
208	208
209	209	(A) The State shall reduce statewide greenhouse gas emissions by [40%]: 8
210	210
211	211	(1) 60% from 2006 levels by 2030; AND 9
212	212
213	213	(2) 100% FROM 2006 LEVELS BY 2040. 10
214	214
215	215	(B) AFTER 2040, STATEWIDE GREENHOUSE GAS EMISSIONS SHALL BE NET 11
216	216	NEGATIVE. 12
217	217
218	218	2–1205. 13
219	219
220	220	(a) The State shall develop plans, adopt regulations, and implement programs 14
221	221	that reduce statewide greenhouse gas emissions in accordance with this subtitle. 15
222	222
223	223	(b) On or before December 31, 2018, the Department shall: 16
224	224
225	225	(1) Submit a proposed plan that reduces statewide greenhouse gas 17
226	226	emissions by 40% from 2006 levels by 2030 to the Governor and General Assembly; 18
227	227
228	228	(2) Make the proposed plan available to the public; and 19
229	229
230	230	(3) Convene a series of public workshops to provide interested parties with 20
231	231	an opportunity to comment on the proposed plan. 21
232	232
233	233	(c) (1) The Department shall, on or before December 31, 2012, adopt a final 22
234	234	plan that reduces statewide greenhouse gas emissions by 25% from 2006 levels by 2020. 23
235	235
236	236	(2) The Department shall, on or before [December 31, 2019] DECEMBER 24
237	237	31, 2022, adopt a final plan that reduces statewide greenhouse gas emissions by [40%] 25
238	238	60% from 2006 levels by 2030. 26
239	239
240	240	(3) The plans shall be developed in recognition of the finding by the 27
241	241	Intergovernmental Panel on Climate Change that developed countries will need to reduce 28
242	242	greenhouse gas emissions by between 80% and 95% from 1990 levels by 2050. 29
243	243	6 HOUSE BILL 171
244	244
245	245
246	246	(d) The final plans required under subsection (c) of this section shall include: 1
247	247
248	248	(1) Adopted regulations that implement all plan measures for which State 2
249	249	agencies have existing statutory authority; and 3
250	250
251	251	(2) A summary of any new legislative authority needed to fully implement 4
252	252	the plans and a timeline for seeking legislative authority. 5
253	253
254	254	(e) In developing and adopting a final plan to reduce statewide greenhouse gas 6
255	255	emissions, the Department shall consult with State and local agencies as appropriate. 7
256	256
257	257	(f) (1) Unless required by federal law or regulations or existing State law, 8
258	258	regulations adopted by State agencies to implement a final plan may not: 9
259	259
260	260	(i) Require greenhouse gas emissions reductions from the State’s 10
261	261	manufacturing sector; or 11
262	262
263	263	(ii) Cause a significant increase in costs to the State’s manufacturing 12
264	264	sector. 13
265	265
266	266	(2) Paragraph (1) of this subsection may not be construed to exempt 14
267	267	greenhouse gas emissions sources in the State’s manufacturing sector from the obligation 15
268	268	to comply with: 16
269	269
270	270	(i) Greenhouse gas emissions monitoring, recordkeeping, and 17
271	271	reporting requirements for which the Department had existing authority under § 2–301(a) 18
272	272	of this title on or before October 1, 2009; or 19
273	273
274	274	(ii) Greenhouse gas emissions reductions required of the 20
275	275	manufacturing sector as a result of the State’s implementation of the Regional Greenhouse 21
276	276	Gas Initiative. 22
277	277
278	278	(g) A regulation adopted by a State agency for the purpose of reducing greenhouse 23
279	279	gas emissions in accordance with this section may not be construed to result in a significant 24
280	280	increase in costs to the State’s manufacturing sector unless the source would not incur the 25
281	281	cost increase but for the new regulation. 26
282	282
283	283	2–1211. 27
284	284
285	285	The Department shall monitor implementation of the plans required under § 2–1205 28
286	286	of this subtitle and shall submit a report, on or before [October 1, 2022] DECEMBER 31, 29
287	287	2022, and every [5] 3 years thereafter, to the Governor and, in accordance with § 2–1257 30
288	288	of the State Government Article, the General Assembly that describes the State’s progress 31
289	289	toward achieving: 32
290	290
291	291	(1) The reductions in greenhouse gas emissions required under this 33
292	292	subtitle, or any revisions conducted in accordance with § 2–1210 of this subtitle; and 34 HOUSE BILL 171 7
293	293
294	294
295	295
296	296	(2) The greenhouse gas emissions reductions needed by 2050 in order to 1
297	297	avoid dangerous anthropogenic changes to the Earth’s climate system, based on the 2
298	298	predominant view of the scientific community at the time of the latest report. 3
299	299
300	300	2–1213. RESERVED. 4
301	301
302	302	2–1214. RESERVED. 5
303	303
304	304	PART II. CLIMATE CRISIS INITIATIVE. 6
305	305
306	306	2–1215. 7
307	307
308	308	(A) IN THIS PART THE FOLL OWING WORDS HAVE THE MEANINGS 8
309	309	INDICATED. 9
310	310
311	311	(B) “ADMINISTRATION ” MEANS THE MARYLAND ENERGY 10
312	312	ADMINISTRATION . 11
313	313
314	314	(C) “ADULT RESIDENT ” MEANS A RESIDENT OF THE STATE WHO IS AT LEAST 12
315	315	18 YEARS OLD. 13
316	316
317	317	(D) “BENEFIT FUND” MEANS THE HOUSEHOLD AND EMPLOYER BENEFIT 14
318	318	FUND ESTABLISHED UNDE R § 2–1221 OF THIS SUBTITLE. 15
319	319
320	320	(E) “COMMISSION” MEANS THE PUBLIC SERVICE COMMISSION. 16
321	321
322	322	(F) “COUNCIL” MEANS THE CLIMATE CRISIS COUNCIL ESTABLISHED 17
323	323	UNDER § 2–1217 OF THIS SUBTITLE. 18
324	324
325	325	(G) “EMPLOYER” MEANS A PERSON , A GOVERNMENTAL UNIT , OR ANY 19
326	326	OTHER ENTITY THAT HA S EMPLOYEES WORKING IN THE STATE. 20
327	327
328	328	(H) “FOSSIL FUEL” MEANS: 21
329	329
330	330	(1) NATURAL GAS; 22
331	331
332	332	(2) PETROLEUM; 23
333	333
334	334	(3) COAL; AND 24
335	335
336	336	(4) ANY SOLID, LIQUID, OR GASEOUS FUEL DERI VED FROM ITEM (1), 25
337	337	(2), OR (3) OF THIS SUBSECTION . 26
338	338	8 HOUSE BILL 171
339	339
340	340
341	341	(I) “FUGITIVE EMISSIONS ” MEANS EMISSIONS OF G REENHOUSE GASES 1
342	342	FROM EQUIPMENT , INCLUDING PIPELINES , DUE TO LEAKS OR OTHER UNINTENDED 2
343	343	OR IRREGULAR RELEASE S. 3
344	344
345	345	(J) “GREENHOUSE GAS POLLUT ION FEE” OR “FEE” MEANS A FEE IMPOSED 4
346	346	ON EACH CARBON DIOXI DE EQUIVALENT UNDER THIS PART. 5
347	347
348	348	(K) “INFRASTRUCTURE FUND” MEANS THE CLIMATE CRISIS 6
349	349	INFRASTRUCTURE FUND ESTABLISHED UNDE R § 2–1222 OF THIS SUBTITLE. 7
350	350
351	351	(L) “INITIATIVE” MEANS THE CLIMATE CRISIS INITIATIVE ESTABLISHE D 8
352	352	UNDER THIS PART . 9
353	353
354	354	(M) (1) “LIFE–CYCLE EMISSIONS ” MEANS GREENHOUSE GAS EMISSIONS 10
355	355	THAT ARE RELEASED DU RING PHASES OF A FUE L OR OTHER PRODUCT ’S LIFE. 11
356	356
357	357	(2) “LIFE–CYCLE EMISSIONS ” INCLUDES GREENHOUSE GAS 12
358	358	EMISSIONS RELEASED D URING EXTRACTION , PROCESSING, TRANSPORTATION , AND 13
359	359	DISPOSAL ACTIVITIES . 14
360	360
361	361	(N) “MINOR RESIDENT ” MEANS A RESIDENT OF THE STATE WHO IS UNDER 15
362	362	THE AGE OF 18 YEARS. 16
363	363
364	364	(O) “QUINTILE 1” MEANS THE 20% OF HOUSEHOLDS WITH PRE –TAX 17
365	365	INCOMES THROUGH THE
366	366
367	367	20TH
368	368
369	369	PERCENTILE OF ALL HO USEHOLDS IN THE STATE. 18
370	370
371	371	(P) “QUINTILE 2” MEANS THE 20% OF HOUSEHOLDS WITH P RE–TAX 19
372	372	INCOMES ABOVE THE
373	373
374	374	20TH PERCENTILE THROUG H THE
375	375
376	376	40TH PERCENTILE OF ALL 20
377	377	HOUSEHOLDS IN THE STATE. 21
378	378
379	379	(Q) “QUINTILE 3” MEANS THE 20% OF HOUSEHOLDS WITH P RE–TAX 22
380	380	INCOMES ABOVE THE
381	381
382	382	40TH PERCENTILE THROUG H THE
383	383
384	384	60TH PERCENTILE OF ALL 23
385	385	HOUSEHOLDS IN THE STATE. 24
386	386
387	387	(R) “QUINTILE 4” MEANS THE 20% OF HOUSEHOLDS WITH P RE–TAX 25
388	388	INCOMES ABOVE THE
389	389
390	390	60TH PERCENTILE THROUG H THE
391	391
392	392	80TH PERCENTILE OF ALL 26
393	393	HOUSEHOLDS IN THE STATE. 27
394	394
395	395	(S) “QUINTILE 5” MEANS THE 20% OF HOUSEHOLDS WITH P RE–TAX 28
396	396	INCOMES ABOVE THE
397	397
398	398	80TH PERCENTILE OF ALL HOUSEHOLDS IN THE STATE. 29
399	399
400	400	2–1216. 30
401	401	HOUSE BILL 171 9
402	402
403	403
404	404	(A) THERE IS A CLIMATE CRISIS INITIATIVE IN THE DEPARTMENT . 1
405	405
406	406	(B) THE INITIATIVE PROVIDES F OR: 2
407	407
408	408	(1) THE ESTABLISHMENT OF GREENHOUSE GAS REDUC TION GOALS; 3
409	409
410	410	(2) THE ESTABLISHMENT OF A CLIMATE CRISIS COUNCIL; 4
411	411
412	412	(3) THE ASSESSMENT OF GRE ENHOUSE GAS POLLUTIO N FEES; 5
413	413
414	414	(4) BENEFITS TO HOUSEHOLD S AND EMPLOYERS IN T HE STATE TO 6
415	415	MITIGATE THE IMPACT OF FEES UNDER THE INITIATIVE; AND 7
416	416
417	417	(5) THE FUNDING OF ACTIVI TIES FOR GREENHOUSE GAS REDUCTION 8
418	418	AND SEQUESTRATION , IMPROVEMENTS IN RESI LIENCY, AND THE PROMOTION OF A 9
419	419	JUST ECONOMIC TRANSI TION IN THE STATE. 10
420	420
421	421	2–1217. 11
422	422
423	423	(A) THERE IS A CLIMATE CRISIS COUNCIL. 12
424	424
425	425	(B) THE COUNCIL CONSISTS OF T HE FOLLOWING MEMBERS : 13
426	426
427	427	(1) ONE MEMBER OF THE SENATE OF MARYLAND, SELECTED BY THE 14
428	428	PRESIDENT OF THE SENATE; 15
429	429
430	430	(2) ONE MEMBER OF THE HOUSE OF DELEGATES, SELECTED BY THE 16
431	431	SPEAKER OF THE HOUSE; AND 17
432	432
433	433	(3) EXPERTS IN THE FIELDS OF ECONOMICS, ENVIRONMENTAL 18
434	434	SCIENCE, AND ENVIRONMENTAL JU STICE, AND OTHERS AS NEEDED , APPOINTED 19
435	435	JOINTLY BY THE PRESIDENT AND THE SPEAKER. 20
436	436
437	437	(C) (1) THE SECRETARY, IN COORDINATION WITH THE COUNCIL, SHALL 21
438	438	DEVELOP A PLAN TO ACHIEVE TH E REDUCTION TARGETS SET OUT IN § 2–1204.1 OF 22
439	439	THIS SUBTITLE. 23
440	440
441	441	(2) THE PLAN: 24
442	442
443	443	(I) SHALL INCLUDE POLICIE S TO MITIGATE INEQUI TIES THAT 25
444	444	COULD ARISE FROM THE IMPLEMENTATION OF TH E PLAN; AND 26
445	445
446	446	(II) MAY RECOMMEND AMENDME NTS TO THE FEE , BENEFIT 27 10 HOUSE BILL 171
447	447
448	448
449	449	FUND, AND INFRASTRUCTURE FUND ESTABLISHED UNDER §§ 2–1219 THROUGH 1
450	450	2–1222 OF THIS SUBTITLE IF: 2
451	451
452	452	1. LOW– AND MODERATE –INCOME HOUSEHOLDS AN D 3
453	453	ENERGY–INTENSIVE, TRADE–EXPOSED EMPLOYERS AR E REASONABLY PROTECT ED 4
454	454	FROM FINANCIAL HARM ; AND 5
455	455
456	456	2. THE AMENDMENTS DO NOT DIMINISH THE 6
457	457	EFFECTIVENESS OF THE FEE, BENEFIT FUND, AND INFRASTRUCTURE FUND AT 7
458	458	REDUCING EMISSIONS . 8
459	459
460	460	(3) IN DEVELOPING THE PLA N AND ANY AMENDMENTS TO THE PLAN, 9
461	461	THE SECRETARY SHALL : 10
462	462
463	463	(I) HOLD PERIODIC MEETINGS AT CONVENIENT LOCATIONS 11
464	464	AND TIMES FOR PUBLIC PARTICIPATION ; AND 12
465	465
466	466	(II) PROVIDE A REASONABLE AMOUNT OF TIME IN EA CH 13
467	467	MEETING FOR COMMENTS BY THE PUBLIC. 14
468	468
469	469	(4) BEFORE THE SECRETARY SUBMITS THE PLAN TO THE GENERAL 15
470	470	ASSEMBLY UNDER SUBSECTION (D) OF THIS SECTION , AN INDEPENDENT AND 16
471	471	RESPECTED ENTITY MUS T VERIFY THROUGH MOD ELING THAT THE PLAN WILL: 17
472	472
473	473	(I) MEET THE GREENHOUSE GAS REDUCTION TARGETS SET 18
474	474	OUT IN § 2–1204.1 OF THIS SUBTITLE; AND 19
475	475
476	476	(II) BE EQUITABLE. 20
477	477
478	478	(D) ON OR BEFORE DECEMBER 31, 2022, THE SECRETARY SHALL SUBMI T 21
479	479	THE PLAN DEVELOPED U NDER SUBSECTION (C) OF THIS SECTION TO THE GENERAL 22
480	480	ASSEMBLY, IN ACCORDANCE WITH § 2–1257 OF THE STATE GOVERNMENT ARTICLE. 23
481	481
482	482	2–1218. 24
483	483
484	484	(A) THE SECRETARY SHALL ADMIN ISTER THE SCHEDULES OF GREENHOUSE 25
485	485	GAS POLLUTION FEES UNDER THIS PART. 26
486	486
487	487	(B) THE SECRETARY SHALL DELEG ATE ALL COLLECTION O F GREENHOUSE 27
488	488	GAS POLLUTION CHARGE S, DISTRIBUTION OF BENE FITS, AND ANY OTHER 28
489	489	APPROPRIATE FUNCTION S TO THE COMPTROLLER . 29
490	490
491	491	(C) THE COMPTROLLER SHALL CAR RY OUT ALL FUNCTIONS THE 30 HOUSE BILL 171 11
492	492
493	493
494	494	SECRETARY DELEGATES TO THE COMPTROLLER UNDER THIS PART . 1
495	495
496	496	2–1219. 2
497	497
498	498	(A) (1) EXCEPT AS PROVIDED IN PARAGRAPH (2) OF THIS SUBSECTION , A 3
499	499	GREENHOUSE GAS POLLU TION FEE SHALL BE CO LLECTED ON ALL FOSSI L FUELS 4
500	500	BROUGHT INTO THE STATE FOR COMBUSTION IN THE STATE. 5
501	501
502	502	(2) NOTWITHSTANDING ANY O THER LAW , A GREENHOUSE GAS 6
503	503	POLLUTION FEE MAY NO T BE IMPOSED ON ANY GREENHOUSE GAS –PRODUCING 7
504	504	SUBSTANCE: 8
505	505
506	506	(I) THAT WILL BE USED TO GENERATE ELEC TRICITY; OR 9
507	507
508	508	(II) IF THE IMPOSITION IS SUPERSEDED BY FEDERA L LAW OR 10
509	509	REGULATION . 11
510	510
511	511	(B) SUBJECT TO SUBSECTION (C) OF THIS SECTION, THE FEE ASSESSED PER 12
512	512	TON OF CARBON DIOXID E EQUIVALENT ON : 13
513	513
514	514	(1) NONTRANSPORTATION FUE LS SHALL: 14
515	515
516	516	(I) BE $15 FROM JULY 31, 2022, THROUGH DECEMBER 31, 15
517	517	2023; 16
518	518
519	519	(II) BE $20 IN 2024; 17
520	520
521	521	(III) INCREASE BY $5 EACH YEAR THEREAFTER THROUGH 2031; 18
522	522	AND 19
523	523
524	524	(IV) BE $60 IN 2032 AND EACH YEAR THEREA FTER; AND 20
525	525
526	526	(2) TRANSPORTATION FUELS SHALL: 21
527	527
528	528	(I) BE $10 FROM JULY 31, 2023, THROUGH DECEMBER 31, 22
529	529	2023; 23
530	530
531	531	(II) BE $13 IN 2024; 24
532	532
533	533	(III) INCREASE BY $3 EACH YEAR THEREAFTER THROUGH 2031; 25
534	534	AND 26
535	535
536	536	(IV) BE $37 IN 2032 AND EACH YEAR THEREA FTER. 27 12 HOUSE BILL 171
537	537
538	538
539	539
540	540	(C) IF THE FEES AND BENEF ITS UNDER THIS PART TAKE EFFECT IN A 1
541	541	CALENDAR YEAR LATER THAN 2023, THE SECRETARY SHALL DELAY THE SCHEDULE 2
542	542	OF FEES UNDER SUBSEC TION (B) OF THIS SECTION BY THE SAME NUMBE R OF YEARS. 3
543	543
544	544	(D) (1) THE FEE ON FOSSIL FUE LS TO BE COMBUSTED I N THE STATE 4
545	545	SHALL BE: 5
546	546
547	547	(I) COLLECTED AT THE FOSSIL FUEL’S FIRST POINT OF SALE IN 6
548	548	THE STATE; AND 7
549	549
550	550	(II) PAID BY THE ENTITY TR ANSPORTING THE FOSSI L FUEL 8
551	551	INTO THE STATE. 9
552	552
553	553	(2) (I) SUBJECT TO SUBPARAGRA PH (II) OF THIS PARAGRAPH , THE 10
554	554	ANNUAL TOTAL OF FEES PAID BY AN ENTITY TRANSPO RTING PETROLEUM 11
555	555	PRODUCTS INTO THE STATE UNDER PARAGRAPH (1) OF THIS SUBSECTION S HALL BE 12
556	556	REDUCED BY AN AMOUNT EQUAL TO THE ANNUAL TOTAL OF EMISSIONS 13
557	557	COMPLIANCE COST OBLI GATIONS THE PETROLEU M PRODUCT IS SUBJECT TO UNDER 14
558	558	REGIONAL INITIATIVES , INCLUDING THE TRANSPORTATION AND CLIMATE 15
559	559	INITIATIVE, FOR THE SAME YEAR . 16
560	560
561	561	(II) THE AMOUNT DEDUCTED U NDER SUBPARAGRAPH (I) OF 17
562	562	THIS PARAGRAPH MAY NOT EXCEED THE TOTAL AMOUNT OF THE FEE CALCULATED 18
563	563	UNDER SUBSECTION (B) OF THIS SECTION. 19
564	564
565	565	(3) (I) SUBJECT TO SUBPARAGRA PH (II) OF THIS PARAGRAPH , A 20
566	566	FEE COLLECTED UNDER THIS SECTION MAY NOT BE PASSED THROUGH AS A DIRECT 21
567	567	COST TO: 22
568	568
569	569	1. AN END USER OF A FOSS IL FUEL; OR 23
570	570
571	571	2. A CUSTOMER OF A GAS CO MPANY. 24
572	572
573	573	(II) THIS PARAGRAPH DOES N OT PROHIBIT THE PASS ING 25
574	574	THROUGH TO A CUSTOME R OF A FEE COLLECTED UNDER THIS SECTION O N NATURAL 26
575	575	GAS DISTRIBUTED BY A GAS COMPANY ONLY TO THE EXTENT THAT THE COMMISSION 27
576	576	APPROVES THE FEE AS A PRUDENTLY INCURRED CO ST OF DISTRIBUTION . 28
577	577
578	578	(E) (1) A LOCAL DISTRIBUTION C OMPANY FOR NATURAL G AS SHALL PAY 29
579	579	THE FEE FOR ALL NATU RAL GAS THAT THE COM PANY DISTRIBUTES FOR 30
580	580	COMBUSTION IN THE STATE. 31
581	581	HOUSE BILL 171 13
582	582
583	583
584	584	(2) THE FEE UNDER THIS SU BSECTION SHALL BE CA LCULATED BY 1
585	585	MULTIPLYING THE NUMBER OF CUBIC FEET OF NATURA L GAS USED BY EACH 2
586	586	CUSTOMER BY THE AMOU NT OF CARBON DIOXIDE EQUIVALENTS RELEASED BY 3
587	587	BURNING 1 CUBIC FOOT OF NATURA L GAS, AS THAT VALUE IS DET ERMINED BY THE 4
588	588	U.S. ENERGY INFORMATION ADMINISTRATION . 5
589	589
590	590	(F) SUBJECT TO § 2–1223 OF THIS SUBTITLE, THE SECRETARY SHALL 6
591	591	DETERMINE THE AMOUNT OF EMISSIONS, AS CARBON DIOXIDE EQ UIVALENTS, FROM 7
592	592	ESCAPED OR INTENTION ALLY RELEASED METHAN E DUE TO THE EXTRACT ION, 8
593	593	PROCESSING, TRANSPORT, OR DISTRIBUTION OF N ATURAL GAS BEFORE TH E POINT 9
594	594	OF COMBUSTION IN THE STATE, AND MAY ADD AN ADDIT IONAL FEE FOR THESE 10
595	595	EMISSIONS. 11
596	596
597	597	(G) (1) UNITS OF GOVERNMENT W HOSE PRIMARY PURPOSE IS TO 12
598	598	PROVIDE PUBLIC TRANS PORTATION BY BUS , VAN, RAIL, OR OTHER MEANS THAT 13
599	599	REDUCE THE AMOUNT OF DRIVING BY PRIVATE M OTOR VEHICLES SHALL BE EXEMPT 14
600	600	FROM GREENHOUSE GAS POLLUT ION FEES UNDER THIS PART. 15
601	601
602	602	(2) IF AN EXEMPTION FOR A UNIT UNDER PARAGRAPH (1) OF THIS 16
603	603	SUBSECTION IS NOT FE ASIBLE, THE UNIT SHALL BE FU LLY REIMBURSED FOR I TS 17
604	604	INCREASED COSTS UNDE R THIS PART FROM THE BENEFIT FUND. 18
605	605
606	606	(H) SUBJECT TO SUBSE CTION (C) OF THIS SECTION , THE COLLECTION OF 19
607	607	THE FEE UNDER THIS S ECTION SHALL BEGIN O N THE ADOPTION OF AL L NECESSARY 20
608	608	RULES FOR ITS COLLEC TION, BUT NOT LATER THAN JANUARY 1, 2024, FOR 21
609	609	EMISSIONS OCCURRING IN THE LAST 6 MONTHS OF 2023. 22
610	610
611	611	(I) THE FEES COLLECTE D UNDER THIS SECTION SHALL BE PAID INTO T HE 23
612	612	INFRASTRUCTURE FUND AND THE BENEFIT FUND IN ACCORDANCE WI TH THIS 24
613	613	PART. 25
614	614
615	615	(J) (1) USING THE BEST INFORM ATION AND SCIENCE RE ASONABLY 26
616	616	AVAILABLE, THE SECRETARY SHALL DETER MINE WHETHER TO IDEN TIFY ANY 27
617	617	GREENHOUSE GAS –EMITTING SUBSTANCE OR SOURCE, IN ADDITION TO NATUR AL 28
618	618	GAS, PETROLEUM , COAL, AND THEIR DERIVATIVE S, AS BEING A FOSSIL FU EL 29
619	619	SUBJECT TO THE FEE U NDER THIS PART . 30
620	620
621	621	(2) EMISSIONS FROM FARM A NIMALS AND CROPS MAY NOT BE 31
622	622	DESIGNATED AS SUBJEC T TO THE FEE UNDER T HIS PART. 32
623	623
624	624	(K) (1) WITHIN 3 YEARS AFTER THE FEES AND BENEFITS UNDER T HIS 33
625	625	PART TAKE EFFECT , AND EVERY 2 YEARS THEREAFTER , THE SECRETARY, IN 34
626	626	CONSULTATION WITH TH E COUNCIL, SHALL SUBMIT A REPOR T TO THE GOVERNOR 35 14 HOUSE BILL 171
627	627
628	628
629	629	AND, IN ACCORDANCE WITH § 2–1257 OF THE STATE GOVERNMENT ARTICLE, THE 1
630	630	GENERAL ASSEMBLY. 2
631	631
632	632	(2) THE REPORT SHALL TAKE INTO CONSIDERATION W HETHER ANY 3
633	633	INCREASES OR DECREAS ES IN GREENHOUSE GAS POLLUTION FEES ARE 4
634	634	RECOMMENDED TO : 5
635	635
636	636	(I) ACCOUNT FOR INFLATION ; 6
637	637
638	638	(II) ADDRESS LIFE –CYCLE EMISSIONS AND FUGITIVE 7
639	639	EMISSIONS ISSUES ; 8
640	640
641	641	(III) ENSURE PROGRESS TOWAR D REACHING EMISSIONS LIMITS 9
642	642	UNDER § 2–1204.1 OF THIS SUBTITLE AND SUBTITLE 10 OF THIS TITLE; AND 10
643	643
644	644	(IV) MITIGATE SERIOUS HARM TO ECONOMIC SECTORS , 11
645	645	ECONOMIC SUBSECTORS , OR INDIVIDUAL ENERGY –INTENSIVE, TRADE–EXPOSED 12
646	646	EMPLOYERS IN THE STATE CAUSED BY COLLE CTION OF GREENHOUSE GAS 13
647	647	POLLUTION FEES UNDER THIS PART. 14
648	648
649	649	(3) TO MEET THE STATE’S GREENHOUSE GAS RED UCTION TARGETS 15
650	650	UNDER § 2–1204.1 OF THIS SUBTITLE, THE REPORT SHALL INCL UDE 16
651	651	RECOMMENDATIONS ON A DDITIONAL EMISSIONS SOURCES TO WHICH THE 17
652	652	GREENHOUSE GAS POLLU TION FEE SHOULD APPL Y, INCLUDING INDUSTRIAL 18
653	653	PROCESS EMISSIONS AN D EMISSIONS ASSOCIAT ED WITH THE GENERATI ON AND 19
654	654	DISTRIBUTION OF ELEC TRICITY. 20
655	655
656	656	2–1220. 21
657	657
658	658	(A) REVENUES FROM GREENHO USE GAS POLLUTION FE ES UNDER THIS 22
659	659	PART SHALL BE DISTRI BUTED TO THE BENEFIT FUND AND THE INFRASTRUCTURE 23
660	660	FUND IN ACCORDANCE WI TH THIS SECTION. 24
661	661
662	662	(B) OF THE REVENUES GENERAT ED BY THE FEE: 25
663	663
664	664	(1) 50% SHALL BE DISTRIBUTED EACH YEAR TO THE BENEFIT FUND 26
665	665	FOR THE PURPOSE OF P ROVIDING BE NEFITS TO HOUSEHOLDS AND EMPLOYERS IN 27
666	666	ACCORDANCE WITH § 2–1221 OF THIS SUBTITLE; AND 28
667	667
668	668	(2) 50% SHALL BE DISTRIBUTED EACH YEAR TO THE 29
669	669	INFRASTRUCTURE FUND. 30
670	670
671	671	2–1221. 31 HOUSE BILL 171 15
672	672
673	673
674	674
675	675	(A) THERE IS A HOUSEHOLD AND EMPLOYER BENEFIT FUND. 1
676	676
677	677	(B) THE PURPOSES OF THE BENEFIT FUND ARE TO: 2
678	678
679	679	(1) PROVIDE A HIGH DEGREE OF PROTECTION FOR LO W– AND 3
680	680	MODERATE–INCOME HOUSEHOLDS IN THE STATE; AND 4
681	681
682	682	(2) PROTECT ENERGY –INTENSIVE, TRADE–EXPOSED EMPLOYERS IN 5
683	683	THE STATE. 6
684	684
685	685	(C) THE SECRETARY SHALL ADMIN ISTER THE BENEFIT FUND. 7
686	686
687	687	(D) (1) THE BENEFIT FUND IS A SPECIAL , NONLAPSING FUND THAT IS 8
688	688	NOT SUBJECT TO § 7–302 OF THE STATE FINANCE AND PROCUREMENT ARTICLE. 9
689	689
690	690	(2) THE STATE TREASURER SHALL HOLD THE BENEFIT FUND 10
691	691	SEPARATELY, AND THE COMPTROLLER SHALL ACC OUNT FOR THE BENEFIT FUND. 11
692	692
693	693	(E) THE BENEFIT FUND CONSISTS OF : 12
694	694
695	695	(1) PROCEEDS OF FEES DIST RIBUTED TO THE BENEFIT FUND UNDER 13
696	696	§ 2–1220(B) OF THIS SUBTITLE; 14
697	697
698	698	(2) MONEY APPROPRIATED IN THE STATE BUDGET TO THE BENEFIT 15
699	699	FUND; AND 16
700	700
701	701	(3) ANY OTHER MONEY FROM ANY OTHER SOURCE ACC EPTED FOR 17
702	702	THE BENEFIT OF THE BENEFIT FUND. 18
703	703
704	704	(F) THE BENEFIT FUND MAY BE USED ONLY FOR: 19
705	705
706	706	(1) PAYMENT OF BENEFITS U NDER THIS SECTION ; AND 20
707	707
708	708	(2) ADMINISTRATION OF THE BENEFIT FUND, NOT TO EXCEED 5% OF 21
709	709	THE MONEY IN THE BENEFIT FUND. 22
710	710
711	711	(G) (1) THE STATE TREASURER SHALL INVES T THE MONEY OF THE 23
712	712	BENEFIT FUND IN THE SAME MANN ER AS OTHER STATE MONEY MAY BE IN VESTED. 24
713	713
714	714	(2) ANY INTEREST EARNINGS OF THE BENEFIT FUND SHALL BE 25
715	715	CREDITED TO THE BENEFIT FUND. 26
716	716	16 HOUSE BILL 171
717	717
718	718
719	719	(H) IN THE BENEFIT FUND THERE ARE THE FO LLOWING SEPARATE 1
720	720	ACCOUNTS: 2
721	721
722	722	(1) THE HOUSEHOLD BENEFIT ACCOUNT, WHICH CONSISTS OF 80% 3
723	723	OF THE MONEY IN THE BENEFIT FUND; AND 4
724	724
725	725	(2) THE EMPLOYER BENEFIT ACCOUNT, WHICH CONSISTS OF 20% OF 5
726	726	THE MONEY IN THE BENEFIT FUND. 6
727	727
728	728	(I) (1) (I) MONEY IN THE HOUSEHOLD BENEFIT ACCOUNT SHALL BE 7
729	729	DISTRIBUTED AS BENEFITS IN ACCORDAN CE WITH THIS SUBSECT ION. 8
730	730
731	731	(II) 1. ONE–HALF SHALL BE DISTRI BUTED TO HOUSEHOLDS 9
732	732	IN QUINTILE 1. 10
733	733
734	734	2. ONE–THIRD SHALL BE DISTR IBUTED TO 11
735	735	HOUSEHOLDS IN QUINTI LE 2. 12
736	736
737	737	3. ONE–SIXTH SHALL BE DISTR IBUTED TO HOUSEHOLDS 13
738	738	IN QUINTILE 3. 14
739	739
740	740	(III) 1. IF THE QUINTILE 1 DISTRIBUTION IS NOT SUFFICIENT 15
741	741	TO ENSURE THAT NO QU INTILE 1 HOUSEHOLD PAYS MORE IN FEES THAN IT 16
742	742	RECEIVES IN BENEFITS , THE QUINTILE 1 DISTRIBUTION SHALL B E INCREASED TO 17
743	743	ENSURE THAT THIS REQ UIREMENT IS MET . 18
744	744
745	745	2. IF THE DISTRIBU TION TO QUINTILE 1 IS GREATER 19
746	746	THAN ONE–HALF, TWO–THIRDS OF THE FEES R EMAINING IN THE HOUSEHOLD 20
747	747	BENEFIT ACCOUNT AFTER DISTRIB UTION TO QUINTILE 1 SHALL BE DISTRIBUTED 21
748	748	TO QUINTILE 2 AND ONE–THIRD TO QUINTILE 3. 22
749	749
750	750	(2) (I) EACH QUINTILE’S TOTAL DISTRIBUTION AMOUNT SHALL BE 23
751	751	DIVIDED BY THE SUM O F THE ADULT RESIDENT S IN THAT QUINTILE P LUS ONE–HALF 24
752	752	OF THE MINOR RESIDEN TS IN THAT QUINTILE TO PRODUCE THAT QUIN TILE’S 25
753	753	INITIAL BENEFIT. 26
754	754
755	755	(II) EACH HOUSEHOLD IN A Q UINTILE SHALL RECEIV E A 27
756	756	BENEFIT EQUAL TO THA T QUINTILE’S INITIAL BENEFIT TI MES THE SUM OF THE 28
757	757	NUMBER OF ADULT RESI DENTS IN THE HOUSEHO LD AND ONE–HALF OF THE NUMBER 29
758	758	OF MINOR RESIDENTS I N THE HOUSEHOLD . 30
759	759
760	760	(3) ANY MONEY REMAINING I N THE HOUSEHOLD BENEFIT ACCOUNT 31
761	761	AFTER THE DISTRIBUTI ON OF MONEY IN ACCOR DANCE WITH PARAGRAPH (1) OF 32 HOUSE BILL 171 17
762	762
763	763
764	764	THIS SUBSECTION SHAL L BE DEPOSITED IN TH E INFRASTRUCTURE FUND. 1
765	765
766	766	(4) IN PROVIDING BENEFITS FROM FEE PROCEEDS FR OM THE 2
767	767	HOUSEHOLD BENEFIT ACCOUNT, THE SECRETARY SHALL COORD INATE WITH THE 3
768	768	COMPTROLLER , THE DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT , 4
769	769	THE DEPARTMENT OF HUMAN SERVICES, AND OTHER UNITS IN M AKING ALL 5
770	770	REASONABLE EFFORTS T O IDENTIFY THE NAMES AND ADDRESSES OF ALL 6
771	771	RESIDENTS, WITH SPECIAL ATTENTI ON TO THE NAMES AND ADDRESSES OF 7
772	772	LOW–INCOME RESIDENTS , SO THAT THEY CAN REC EIVE BENEFITS EXPEDITIOUSLY . 8
773	773
774	774	(5) MONEY DISTRIBUTED FRO M THE HOUSEHOLD BENEFIT 9
775	775	ACCOUNT: 10
776	776
777	777	(I) MAY NOT BE INCLUDED I N TAXABLE INCOME FOR 11
778	778	PURPOSES OF ANY STATE OR LOCAL INCOME TAX; AND 12
779	779
780	780	(II) SHALL, TO THE EXTENT FEASIB LE, BE EXCLUDED FROM 13
781	781	HOUSEHOLD INCOME FOR PURPOSES OF DETERMIN ING ELIGIBILITY FOR , OR THE 14
782	782	LEVEL OF, ANY FORM OF PUBLIC A SSISTANCE. 15
783	783
784	784	(J) (1) MONEY IN THE EMPLOYER BENEFIT ACCOUNT SHALL BE 16
785	785	DISTRIBUTED IN ACCOR DANCE WITH THIS SUBS ECTION. 17
786	786
787	787	(2) THE SECRETARY SHALL USE T HE MONEY IN THE EMPLOYER 18
788	788	BENEFIT ACCOUNT TO PROVIDE BE NEFITS TO EMPLOYERS . 19
789	789
790	790	(3) (I) THE SECRETARY, IN CONSULTATION WITH THE SECRETARY 20
791	791	OF COMMERCE, THE SECRETARY OF LABOR, AND THE SECRETARY OF HOUSING AND 21
792	792	COMMUNITY DEVELOPMENT , SHALL, WITH SPECIAL ATTENTI ON TO 22
793	793	MANUFACTURING AND AG RICULTURE, IDENTIFY ECONOMIC SE CTORS OR ECONOMIC 23
794	794	SUBSECTORS THAT ARE ENERGY–INTENSIVE AND TRADE –EXPOSED. 24
795	795
796	796	(II) THE SECRETARY SHALL , AS MITIGATION, CALCULATE THE 25
797	797	TOTAL PROCEEDS COLLE CTED FROM THE SECTOR S OR SUBSECTORS IDEN TIFIED IN 26
798	798	SUBPARAGRAPH (I) OF THIS PARAGRAPH AND MAY APP ORTION PART OR ALL O F THE 27
799	799	PROCEEDS TO THE AFFE CTED SECTOR OR SUBSE CTOR. 28
800	800
801	801	(4) MONEY REMAINING IN TH E EMPLOYER BENEFIT ACCOUNT 29
802	802	AFTER DISTRIBUTIONS UNDER PARAGRAPH (3) OF THIS SUBSECTION A RE 30
803	803	CALCULATED SHALL BE DEPOSITED IN THE INFRASTRU CTURE FUND. 31
804	804
805	805	(K) (1) THE SECRETARY SHALL CONSI DER ALTERNATIVE CALE NDAR 32
806	806	SCHEDULES FOR DISTRI BUTION OF THE BENEFI TS AUTHORIZED UNDER THIS 33 18 HOUSE BILL 171
807	807
808	808
809	809	SECTION, INCLUDING PARTIAL OR WHOLE DISTRIBUTIONS EARLY IN THE RELEVAN T 1
810	810	REVENUE CYCLE AND ON A REGULAR BASIS THRO UGHOUT THE REVENUE CYCLE . 2
811	811
812	812	(2) THE METHOD AND SCHEDU LE OF DISTRIBUTION O F BENEFITS 3
813	813	SHALL TAKE INTO ACCO UNT: 4
814	814
815	815	(I) THE NEEDS OF RESIDENT S AND EMPLOYERS , 5
816	816	PARTICULARLY LOW –INCOME HOUSEHOLDS , TO OBTAIN BENEFITS 6
817	817	CORRESPONDING TO THE TIME SCHEDULE WHEN T HEY WILL BE PAYING 7
818	818	GREENHOUSE GAS POLLU TION FEES; 8
819	819
820	820	(II) THE NEED TO MAKE CLEA R TO RESIDENTS AND E MPLOYERS 9
821	821	THAT THEY ARE RECEIV ING A BENEFIT OF GRE ENHOUSE GAS POLLUTIO N FEES THAT 10
822	822	IS SEPARATE FROM OTH ER TRANSACTIONS THEY MAY HAVE WITH THE STATE; AND 11
823	823
824	824	(III) THE NEED TO MINIMIZE THE ADMINISTRATIVE COSTS OF 12
825	825	THE INITIATIVE. 13
826	826
827	827	(L) HOUSEHOLDS AND EMPLOY ERS MAY OPT TO RECEI VE A PORTION OR 14
828	828	ALL OF THEIR BENEFIT S ON THEIR UTILITY B ILLS. 15
829	829
830	830	(M) THE SECRETARY MAY ISSUE A DDITIONAL BENEFITS O R DECLARE 16
831	831	EXEMPTIONS FROM FEES IN INSTANCES WHERE FEES HAVE BEEN PAID BUT N O 17
832	832	EMISSIONS HAVE OCCUR RED OR ARE ANTICIPAT ED TO OCCUR. 18
833	833
834	834	2–1222. 19
835	835
836	836	(A) THERE IS A CLIMATE CRISIS INFRASTRUCTURE FUND. 20
837	837
838	838	(B) THE PURPOSE OF THE INFRASTRUCTURE FUND IS TO INVEST IN 21
839	839	INITIATIVES THAT IMP ROVE THE HEALTH A ND WELFARE OF THE CI TIZENS OF THE 22
840	840	STATE BY: 23
841	841
842	842	(1) EXPANDING THE USE OF CLEAN ENERGY SOURCES AND ENERGY 24
843	843	EFFICIENCY IN THE EL ECTRICITY AND OTHER ENERGY–CONSUMING SECTORS ; 25
844	844
845	845	(2) CREATING A CLEANER , MORE JUST , AND MORE EFFICIENT 26
846	846	TRANSPORTATION SECTO R THROUGHOUT THE STATE; 27
847	847
848	848	(3) PROVIDING FUNDING FOR RESILIENCY AGAINST C LIMATE 28
849	849	CHANGE AND WEATHER E VENTS THAT HAVE AN I MPACT ON THE LIVES O F THE 29
850	850	CITIZENS OF THE STATE AND ITS ECONOMY ; 30
851	851	HOUSE BILL 171 19
852	852
853	853
854	854	(4) SEQUESTERING CARBON I N FORESTS, SOILS, AND WETLANDS ; AND 1
855	855
856	856	(5) PROMOTING A JUST TRANS ITION TO CLEAN ENERG Y. 2
857	857
858	858	(C) (1) THE DEPARTMENT , IN CONSULTATION WITH THE COUNCIL, 3
859	859	SHALL ADMINISTER THE INFRASTRUCTURE FUND. 4
860	860
861	861	(2) THE DEPARTMENT MAY DELEGA TE ADMINISTRATION OF A NY 5
862	862	PROGRAMS DEVELOPED U NDER THE INFRASTRUCTURE FUND TO STATE AGENCIES, 6
863	863	REGIONAL AUTHORITIES , MUNICIPAL GOVERNMENT S, AND OTHER PUBLIC 7
864	864	INSTITUTIONS. 8
865	865
866	866	(D) (1) THE INFRASTRUCTURE FUND IS A SPECIAL , NONLAPSING FUND 9
867	867	THAT IS NOT SUBJECT TO § 7–302 OF THE STATE FINANCE AND PROCUREMENT 10
868	868	ARTICLE. 11
869	869
870	870	(2) THE STATE TREASURER SHALL HOLD THE INFRASTRUCTURE 12
871	871	FUND SEPARATELY , AND THE COMPTROLLER SHALL ACC OUNT FOR THE 13
872	872	INFRASTRUCTURE FUND. 14
873	873
874	874	(E) THE INFRASTRUCTURE FUND CONSISTS OF : 15
875	875
876	876	(1) PROCEEDS OF FEES DIST RIBUTED TO THE INFRASTRUCTURE 16
877	877	FUND UNDER § 2–1220(B) OF THIS SUBTITLE; 17
878	878
879	879	(2) ANY EXCESS OF UNSPENT BENEFITS RECEIVED FR OM THE 18
880	880	BENEFIT FUND UNDER § 2–1221(I)(3) AND (J)(4) OF THIS SUBTITLE; 19
881	881
882	882	(3) MONEY APPROPRIATED IN THE STATE BUDGET TO THE 20
883	883	INFRASTRUCTURE FUND; AND 21
884	884
885	885	(4) ANY OTHER MONEY FROM ANY OTHER SOURCE ACC EPTED FOR 22
886	886	THE BENEFIT OF THE INFRASTRUCTURE FUND. 23
887	887
888	888	(F) (1) THE INFRASTRUCTURE FUND MAY BE USED ONLY FOR: 24
889	889
890	890	(I) THE PURPOSES AUTHORIZED U NDER THIS SECTION ; AND 25
891	891
892	892	(II) ADMINISTRATION OF THE INFRASTRUCTURE FUND, NOT TO 26
893	893	EXCEED 5% OF THE MONEY IN THE INFRASTRUCTURE FUND. 27
894	894
895	895	(2) WHEN FEASIBLE, INVESTMENTS UNDER TH IS SECTION SHALL BE 28
896	896	DESIGNED TO CREATE L OCAL ECONOMIC DEVELO PMENT AND EMPLOYMENT IN THE 29 20 HOUSE BILL 171
897	897
898	898
899	899	STATE. 1
900	900
901	901	(G) (1) UP TO 50% OF THE MONEY IN THE INFRASTRUCTURE FUND MAY 2
902	902	BE DISBURSED TO QUALIFIED COUNTY AND MUNICIPAL GOVERNMENTS FOR 3
903	903	PROJECTS THAT MEET T HE REQUIREMENTS OF T HIS SUBTITLE. 4
904	904
905	905	(2) (I) ON OR BEFORE JANUARY 1, 2023, THE COUNCIL, IN 5
906	906	CONSULTATION WITH TH E COMMISSION ON ENVIRONMENTAL JUSTICE AND 6
907	907	SUSTAINABLE COMMUNITIES , SHALL ESTABLISH AND PUBLISH THE CRITERIA A 7
908	908	COUNTY OR MUNICIPAL GOVERNMENT MUST MEET TO BE A QUALIFIED CO UNTY OR 8
909	909	QUALIFIED MUNICIPAL GOVERNMENT . 9
910	910
911	911	(II) THE CRITERIA ESTABLISHED UNDER SU BPARAGRAPH (I) OF 10
912	912	THIS PARAGRAPH SHALL REQUIRE, AT A MINIMUM, THAT A COUNTY OR MUN ICIPAL 11
913	913	GOVERNMENT SUBMIT TO THE DEPARTMENT A 2030 GREENHOUSE GAS REDUC TION 12
914	914	PLAN FOR THE COUNTY OR MU NICIPALITY: 13
915	915
916	916	1. THAT IS ALIGNED WITH STATEWI DE GREENHOUSE 14
917	917	GAS REDUCTION REQUIR EMENTS; AND 15
918	918
919	919	2. FOR WHICH THE COUNTY ’S OR MUNICIPALITY ’S 16
920	920	RESIDENTS WERE SUFFICIENTLY INVOLVED. 17
921	921
922	922	(H) (1) THE SECRETARY MAY USE UP TO 5% OF THE MONEY IN THE 18
923	923	INFRASTRUCTURE FUND TO PROVIDE TECHN ICAL ASSISTANCE , CAPACITY, AND 19
924	924	PLANNING TO OLS TO COUNTY AND MUNI CIPAL GOVERNMENTS FO R THE 20
925	925	DEVELOPMENT OF LOCAL CLIMATE PLANS AND IN VESTMENT PROPOSALS . 21
926	926
927	927	(2) IN USING THE MONEY IN T HE INFRASTRUCTURE FUND UNDER 22
928	928	PARAGRAPH (1) OF THIS SUBSECTION , THE SECRETARY SHALL GIVE DUE 23
929	929	CONSIDERATION TO COU NTIES AND MUNICIPALI TIES WITH ENVIRONMEN TAL 24
930	930	JUSTICE POPULATIONS . 25
931	931
932	932	(I) (1) AT LEAST 50% OF THE MONEY IN THE INFRASTRUCTURE FUND 26
933	933	SHALL BE INVESTED IN PROJECTS THAT ARE LO CATED WITHIN AND PRO VIDE 27
934	934	MEANINGFUL BENEFITS TO ENVIRONMENTAL JUS TICE POPULATIONS . 28
935	935
936	936	(2) (I) ON OR BEFORE JANUARY 1, 2023, AND EVERY 3 YEARS 29
937	937	THEREAFTER , THE COMMISSION ON ENVIRONMENTAL JUSTICE AND SUSTAINABLE 30
938	938	COMMUNITIES SHALL EST ABLISH THE CRITERIA A POPULATION MUST ME ET TO BE 31
939	939	CONSIDERED AN ENVIRO NMENTAL JUSTICE POPU LATION FOR THE PURPO SES OF 32
940	940	THIS SECTION. 33
941	941	HOUSE BILL 171 21
942	942
943	943
944	944	(II) IN ESTABLISHING THE C RITERIA UNDER SUBPAR AGRAPH 1
945	945	(I) OF THIS PARAGRAPH , THE COMMISSION ON ENVIRONMENTAL JUSTICE AND 2
946	946	SUSTAINABLE COMMUNITIES SHALL : 3
947	947
948	948	1. USE, AT A MINIMUM , ANNUAL HOUSEHOLD INC OME, 4
949	949	MINORITY STATUS , AND ENVIRONMENTAL BU RDEN AS CRITERIA ; 5
950	950
951	951	2. ENSURE THAT NOT MORE THAN 50% OF THE STATE 6
952	952	POPULATION RESIDES WIT HIN AN ENVIRONMENTAL JUSTICE POPULATION ; 7
953	953
954	954	3. ENSURE THAT EACH ENVI RONMENTAL JUSTICE 8
955	955	POPULATION IS NOT LA RGER THAN A CENSUS T RACT; AND 9
956	956
957	957	4. SOLICIT INPUT FROM TH E PUBLIC. 10
958	958
959	959	(3) ON OR BEFORE JANUARY 1, 2023, THE COMMISSION ON 11
960	960	ENVIRONMENTAL JUSTICE AND SUSTAINABLE COMMUNITIES SHALL : 12
961	961
962	962	(I) DEFINE “MEANINGFUL BENEFIT S” THAT A PROJECT MAY 13
963	963	PROVIDE TO ENVIRONME NTAL JUSTICE POPULAT IONS; 14
964	964
965	965	(II) DEVELOP A METHOD FOR DETERMINING WHAT PORTION OF 15
966	966	A PROJECT’S EXPENDITURES ARE D IRECTLY LOCATED WITHIN , AND PROVIDE 16
967	967	DIRECT MEANINGFUL BE NEFITS TO, ENVIRONMENTAL JUSTIC E POPULATIONS ; 17
968	968
969	969	(III) DEVELOP MEASURABLE CR ITERIA THAT A PROJECT 18
970	970	RECEIVING FUNDING UN DER THIS SUBSECTION MUST MEET TO BE CONS IDERED 19
971	971	DIRECTLY LOCATED WIT HIN, AND PROVIDING MEA NINGFUL BENEFITS TO , 20
972	972	ENVIRONMENTAL JUSTIC E POPULATIONS ; 21
973	973
974	974	(IV) DEVELOP ANY PROCEDURE S THE COMMISSION 22
975	975	DETERMINES ARE NECES SARY TO DEMONSTRATE AN ENVIRONMENTAL JUS TICE 23
976	976	POPULATION ’S SUPPORT OF A PROJE CT THAT WILL BE LOCA TED WITHIN AND 24
977	977	PROVIDE MEANINGFUL BENEFITS TO THE ENVI RONMENTAL JUSTICE PO PULATION; 25
978	978	AND 26
979	979
980	980	(V) ESTABLISH A PROCESS F OR RECIPIENTS OF FUN DING 27
981	981	UNDER THIS SUBSECTIO N TO REPORT THE INFO RMATION UNDER ITEMS (II) AND (III) 28
982	982	OF THIS PARAGRAPH TO THE SECRETARY. 29
983	983
984	984	(4) A RECIPIENT OF FUNDING UNDER THIS SUBSECTIO N SHALL 30
985	985	REPORT ANNUALLY TO T HE SECRETARY ON THE INFORMATION U NDER PARAGRAPH 31
986	986	(3) OF THIS SUBSECTION. 32 22 HOUSE BILL 171
987	987
988	988
989	989
990	990	(J) (1) THE STATE TREASURER SHALL INVES T THE MONEY OF THE 1
991	991	INFRASTRUCTURE FUND IN THE SAME MANN ER AS OTHER STATE MONEY MAY BE 2
992	992	INVESTED. 3
993	993
994	994	(2) ANY INTEREST EARNINGS OF THE INFRASTRUCTURE FUND SHALL 4
995	995	BE CREDITED TO THE INFRASTRUCTURE FUND. 5
996	996
997	997	(K) ON OR BEFORE JANUARY 1, 2023, AND EVERY 3 YEARS THEREAFTER , 6
998	998	THE SECRETARY SHALL SUBMIT A REPOR T TO THE GENERAL ASSEMBLY, IN 7
999	999	ACCORDANCE WITH § 2–1257 OF THE STATE GOVERNMENT ARTICLE, ON THE 8
1000	1000	STATUS OF THE INFRASTRUCTURE FUND, INCLUDING INFORMATION REPORTED BY 9
1001	1001	RECIPIENTS OF FUNDIN G UNDER SUBSECTION (I) OF THIS SECTION. 10
1002	1002
1003	1003	2–1223. 11
1004	1004
1005	1005	(A) ON OR BEFORE JULY 1, 2024, THE SECRETARY SHALL STUDY AND 12
1006	1006	PREPARE A REPORT ON THE FEASIB ILITY OF IMPOSING AN D COLLECTING 13
1007	1007	ADDITIONAL GREENHOUS E GAS EMISSION FEES ON FUGITIVE EMISSION S AND 14
1008	1008	INTENTIONAL RELEASES OF METHANE FROM NATU RAL GAS INFRASTRUCTU RE. 15
1009	1009
1010	1010	(B) THE REPORT SHALL INCL UDE AN ANALYSIS OF T HE FEASIBILITY AND 16
1011	1011	EXPENSE OF: 17
1012	1012
1013	1013	(1) CALCULATING A REASONA BLY ACCURATE CURRENT STATISTICAL 18
1014	1014	BASELINE, SPECIFIC TO THE STATE, OF FUGITIVE EMISSION S AND INTENTIONAL 19
1015	1015	RELEASES; AND 20
1016	1016
1017	1017	(2) DEVELOPING AND DEPLOY ING A MEA NS OF CALCULATING 21
1018	1018	REASONABLY ACCURATE UPDATES OF PROGRESS OR LACK OF PROGRESS IN 22
1019	1019	REDUCING FUGITIVE EM ISSIONS AND INTENTIO NAL RELEASES . 23
1020	1020
1021	1021	(C) THE SECRETARY SHALL SUBMI T THE REPORT , INCLUDING ANY 24
1022	1022	RECOMMENDED LEGISLAT IVE OR REGULATORY CH ANGES, TO THE GOVERNOR AND, 25
1023	1023	IN ACCORDANCE WITH § 2–1257 OF THE STATE GOVERNMENT ARTICLE, THE 26
1024	1024	GENERAL ASSEMBLY. 27
1025	1025
1026	1026	(D) THE REPORT MAY BE INC LUDED IN THE REPORT REQUIRED UNDER § 28
1027	1027	2–1222(K) OF THIS SUBTITLE. 29
1028	1028
1029	1029	2–1224. 30
1030	1030
1031	1031	EACH YEAR, THE SECRETARY, IN CONSULTATION WITH THE COMMISSION, 31 HOUSE BILL 171 23
1032	1032
1033	1033
1034	1034	THE SECRETARY OF HOUSING AND COMMUNITY DEVELOPMENT , AND THE 1
1035	1035	SECRETARY OF HUMAN SERVICES, SHALL IDENTIFY MEASU RES AND PROGRAMS 2
1036	1036	BEST CALCULATED TO E NSURE THE PROVISION OF LOW–INCOME ENERGY 3
1037	1037	ASSISTANCE AND IMPRO VEMENTS IN THE ENERG Y EFFICIENCY OF 4
1038	1038	RENTER–OCCUPIED DWELLINGS IN THE STATE. 5
1039	1039
1040	1040	2–1225. 6
1041	1041
1042	1042	THE SECRETARY, IN CONSULTATION WITH THE COMMISSION, SHALL ADOPT 7
1043	1043	REGULATIONS TO CARRY OUT THIS PART. 8
1044	1044
1045	1045	Article – State Finance and Procurement 9
1046	1046
1047	1047	6–226. 10
1048	1048
1049	1049	(a) (2) (i) Notwithstanding any other provision of law, and unless 11
1050	1050	inconsistent with a federal law, grant agreement, or other federal requirement or with the 12
1051	1051	terms of a gift or settlement agreement, net interest on all State money allocated by the 13
1052	1052	State Treasurer under this section to special funds or accounts, and otherwise entitled to 14
1053	1053	receive interest earnings, as accounted for by the Comptroller, shall accrue to the General 15
1054	1054	Fund of the State. 16
1055	1055
1056	1056	(ii) The provisions of subparagraph (i) of this paragraph do not apply 17
1057	1057	to the following funds: 18
1058	1058
1059	1059	144. the Health Equity Resource Community Reserve Fund; 19
1060	1060	[and] 20
1061	1061
1062	1062	145. the Access to Counsel in Evictions Special Fund; 21
1063	1063
1064	1064	146. THE CLIMATE CRISIS INFRASTRUCTURE FUND; AND 22
1065	1065
1066	1066	147. THE HOUSEHOLD AND EMPLOYER BENEFIT FUND. 23
1067	1067
1068	1068	Chapter 11 of the Acts of 2016 24
1069	1069
1070	1070	SECTION 6. AND BE IT FURTHER ENACTED, That Section 2 of this Act shall take 25
1071	1071	effect October 1, 2016. [It shall remain effective for a period of 7 years and 3 months and 26
1072	1072	at, the end of December 31, 2023, with no further action required by the General Assembly, 27
1073	1073	Section 2 of this Act shall be abrogated and of no further force and effect.] 28
1074	1074
1075	1075	SECTION 3. AND BE IT FURTHER ENACTED, That this Act shall take effect July 29
1076	1076	1, 2022. 30
1077	1077
1078	1078