EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW. [Brackets] indicate matter deleted from existing law. *hb0031* HOUSE BILL 31 M5, C5 2lr0806 (PRE–FILED) CF 2lr1677 By: Delegate Charkoudian Requested: October 18, 2021 Introduced and read first time: January 12, 2022 Assigned to: Economic Matters A BILL ENTITLED AN ACT concerning 1 Maryland Energy Administration – Resiliency Hub Grant Program and Fund 2 FOR the purpose of establishing the Resiliency Hub Grant Program in the Maryland 3 Energy Administration; requiring the Administration to establish certain procedures 4 and criteria for the Program; establishing the Resiliency Hub Grant Program Fund 5 as a special, nonlapsing fund; requiring interest earnings of the Resiliency Hub 6 Grant Program Fund to be credited to the Resiliency Hub Grant Program Fund; 7 requiring that certain fines and penalties be credited to the Resiliency Hub Grant 8 Program Fund rather than the General Fund of the State; requiring the 9 Administration to provide certain Maryland Strategic Energy Investment Fund 10 funding to the Resiliency Hub Grant Program Fund; and generally relating to the 11 Resiliency Hub Grant Program and Fund. 12 BY repealing and reenacting, without amendments, 13 Article – Public Utilities 14 Section 2–110.1(a) and (b) and 7–306.2(a)(1) and (3) 15 Annotated Code of Maryland 16 (2020 Replacement Volume and 2021 Supplement) 17 BY repealing and reenacting, with amendments, 18 Article – Public Utilities 19 Section 2–110.1(c) and 13–201 20 Annotated Code of Maryland 21 (2020 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 2 HOUSE BILL 31 BY repealing and reenacting, with amendments, 1 Article – State Finance and Procurement 2 Section 6–226(a)(2)(ii)144. and 145. 3 Annotated Code of Maryland 4 (2021 Replacement Volume) 5 BY adding to 6 Article – State Finance and Procurement 7 Section 6–226(a)(2)(ii)146. 8 Annotated Code of Maryland 9 (2021 Replacement Volume) 10 BY adding to 11 Article – State Government 12 Section 9–2010, 9–2011, and 9–20B–05(f)(11) 13 Annotated Code of Maryland 14 (2021 Replacement Volume) 15 BY repealing and reenacting, with amendments, 16 Article – State Government 17 Section 9–20B–05(f)(10) and (11) 18 Annotated Code of Maryland 19 (2021 Replacement Volume) 20 BY repealing and reenacting, without amendments, 21 Article – State Government 22 Section 9–20B–05(i) 23 Annotated Code of Maryland 24 (2021 Replacement Volume) 25 SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 26 That the Laws of Maryland read as follows: 27 Article – Public Utilities 28 2–110.1. 29 (a) There is a Public Utility Regulation Fund. 30 (b) The Fund consists of: 31 (1) all revenue received through the imposition and collection of 32 assessments under § 2–110 of this subtitle; 33 (2) fees received by the Commission under § 2–123 of this subtitle for 34 filings and for other services rendered by the Commission; 35 HOUSE BILL 31 3 (3) income from investments that the State Treasurer makes for the Fund; 1 and 2 (4) any other fee, examination assessment, or revenue received by the 3 Commission under this division. 4 (c) Notwithstanding subsection (b) of this section, the Commission shall pay all 5 fines and penalties collected by the Commission under this article into the [General Fund 6 of the State] RESILIENCY HUB GRANT PROGRAM FUND ESTABLISHED UNDE R § 7 9–2011 OF THE STATE GOVERNMENT ARTICLE. 8 7–306.2. 9 (a) (1) In this section the following words have the meanings indicated. 10 (3) “Community solar energy generating system” means a solar energy 11 system that: 12 (i) is connected to the electric distribution grid serving the State; 13 (ii) is located in the same electric service territory as its subscribers; 14 (iii) is attached to the electric meter of a subscriber or is a separate 15 facility with its own electric meter; 16 (iv) credits its generated electricity, or the value of its generated 17 electricity, to the bills of the subscribers to that system through virtual net energy 18 metering; 19 (v) has at least two subscribers but no limit to the maximum number 20 of subscribers; 21 (vi) does not have subscriptions larger than 200 kilowatts 22 constituting more than 60% of its subscriptions; 23 (vii) has a generating capacity that does not exceed 2 megawatts as 24 measured by the alternating current rating of the system’s inverter; and 25 (viii) may be owned by any person. 26 13–201. 27 (a) This section does not apply to a violation of the following provisions of this 28 article: 29 (1) Title 5, Subtitle 4; 30 4 HOUSE BILL 31 (2) Title 7, Subtitle 1; 1 (3) § 7–213 as it applies to electric cooperatives; 2 (4) Title 8, Subtitles 1 and 3; 3 (5) Title 9, Subtitle 3; and 4 (6) Title 8, Subtitle 4. 5 (b) (1) Except as provided in paragraph (2) of this subsection, the Commission 6 may impose a civil penalty not exceeding $25,000 against a person who violates a provision 7 of this division, or an effective and outstanding direction, ruling, order, rule, or regulation 8 of the Commission. 9 (2) The civil penalty that the Commission may impose on a common carrier 10 for each violation may not exceed $2,500. 11 (c) (1) A civil penalty may be imposed in addition to any other penalty 12 authorized by this division. 13 (2) Each violation is a separate offense. 14 (3) Each day or part of a day the violation continues is a separate offense. 15 (d) The Commission shall determine the amount of any civil penalty after 16 considering: 17 (1) the number of previous violations of any provision of this article; 18 (2) the gravity of the current violation; 19 (3) the good faith efforts of the violator in attempting to achieve compliance 20 after notification of the violation; and 21 (4) any other matter that the Commission considers appropriate and 22 relevant. 23 (e) (1) Except as provided in paragraphs (2) and (3) of this subsection, a civil 24 penalty collected under this section shall be paid into the [General Fund of the State] 25 RESILIENCY HUB GRANT PROGRAM FUND ESTABLISHED UNDE R § 9–2011 OF THE 26 STATE GOVERNMENT ARTICLE. 27 (2) A civil penalty assessed for a violation of a service quality and reliability 28 standard under § 7–213 of this article shall be paid into the Electric Reliability Remediation 29 Fund under § 7–213(j) of this article. 30 HOUSE BILL 31 5 (3) A civil penalty assessed for a violation of § 7–505(b)(7), § 7–507, § 1 7–603, § 7–604, or § 7–606 of this article, or a rule, an order, or a regulation adopted under 2 any of those sections, shall be paid into the Retail Choice Customer Education and 3 Protection Fund under § 7–310 of this article. 4 Article – State Finance and Procurement 5 6–226. 6 (a) (2) (i) Notwithstanding any other provision of law, and unless 7 inconsistent with a federal law, grant agreement, or other federal requirement or with the 8 terms of a gift or settlement agreement, net interest on all State money allocated by the 9 State Treasurer under this section to special funds or accounts, and otherwise entitled to 10 receive interest earnings, as accounted for by the Comptroller, shall accrue to the General 11 Fund of the State. 12 (ii) The provisions of subparagraph (i) of this paragraph do not apply 13 to the following funds: 14 144. the Health Equity Resource Community Reserve Fund; 15 [and] 16 145. the Access to Counsel in Evictions Special Fund; AND 17 146. THE RESILIENCY HUB GRANT PROGRAM FUND. 18 Article – State Government 19 9–2010. 20 (A) (1) IN THIS SECTION THE F OLLOWING WORDS HAVE THE MEANI NGS 21 INDICATED. 22 (2) “EXTENDED GRID OUTAGE ” MEANS A PLANNED OR UNPLANNED 23 GRID OUTAGE LASTING MORE THAN 4 HOURS. 24 (3) “LOW–INCOME” MEANS A HOUSEHOLD WI TH AN ANNUAL 25 ADJUSTED GROSS INCOM E AT OR BELOW 175% OF THE FEDERAL POVER TY LEVEL. 26 (4) “MICROGRID” MEANS TECHNOLOGY THA T: 27 (I) COMBINES CLEAN , DISTRIBUTED POWER GE NERATION 28 WITH ADVANCED CONTRO L EQUIPMENT; AND 29 6 HOUSE BILL 31 (II) ENABLES PORTIONS OF THE ELEC TRIC GRID TO REMAIN 1 ONLINE WHEN THE WIDER GRID IS DO WN. 2 (5) “MODERATE–INCOME” MEANS A HOUSEHOLD WI TH AN ANNUAL 3 ADJUSTED GROSS INCOM E AT OR BELOW 80% OF THE LOCAL MEDIAN INCOME, AS 4 DETERMINED BY THE LA TEST MARYLAND DEPARTMENT OF HOUSING AND 5 COMMUNITY DEVELOPMENT “INCOME LIMITS” DOCUMENT . 6 (6) “PROGRAM” MEANS THE RESILIENCY HUB GRANT PROGRAM. 7 (7) “RESILIENCY HUB ” MEANS A LOCATION WHERE SOLAR 8 PHOTOVOLTAIC AND BAT TERY ENERGY STORAGE ARE DESIGNED TO PROV IDE 9 ELECTRICITY TO MEET COMMUNITY NEEDS DURI NG EXTENDED GRID OUT AGES, 10 INCLUDING PROVIDING: 11 (I) EMERGENCY HEATING AN D COOLING; 12 (II) REFRIGERATION OF TEM PERATURE–SENSITIVE 13 MEDICATIONS ; 14 (III) OUTLETS OR OTHER PLUG POWER OPTIONS FOR CHARGING 15 CELL PHONE AND COMPU TER BATTERIES ; AND 16 (IV) VENTILATION AND EMER GENCY LIGHTING . 17 (B) THERE IS A RESILIENCY HUB GRANT PROGRAM IN THE 18 ADMINISTRATION . 19 (C) THE PURPOSE OF THE PROGRAM IS TO DEVELOP RESILIENCY HUBS 20 THAT SERVE LOW –INCOME AND MODERATE –INCOME HOUSEHOLDS AT NO COST TO 21 THE HOUSEHOLD S. 22 (D) (1) BY REGULATION , THE ADMINISTRATION SHALL SET THE TERMS 23 AND CONDITIONS FOR THE ISSUANCE OF GRAN TS UNDER THE PROGRAM 24 CONSISTENT WITH THIS SUBTITLE. 25 (2) THE REGULATIONS SHALL INCLUDE : 26 (I) A COMPETITIVE APPLIC ATION PROCESS FOR THE 27 PROGRAM; AND 28 HOUSE BILL 31 7 (II) CRITERIA AND PROCEDU RES FOR AWARDING GRA NTS TO 1 ELIGIBLE RECIPIENTS THAT GIVE PRIORITY TO AWARDING GRANTS TO P ROJECTS 2 FOR MICROGRIDS THAT: 3 1. USE A COMMUNITY SOLAR ENER GY GENERATING 4 SYSTEM, AS DEFINED IN § 7–306.2 OF THE PUBLIC UTILITIES ARTICLE; AND 5 2. PROVIDE MORE THAN 30% OF THE SYSTEM ’S 6 KILOWATT OUTPUT TO L OW–INCOME AND MODERATE –INCOME SUBSCRIBERS . 7 (E) THE FOLLOWING PERSONS ARE ELIGIBLE FOR A G RANT UNDER THE 8 PROGRAM: 9 (1) BUSINESSES; 10 (2) NONPROFIT ENTITIES; 11 (3) UNITS OF STATE GOVERNMENT ; AND 12 (4) LOCAL GOVERNMENTS . 13 (F) A PROJECT IS ELIGIBLE FOR A GRANT UNDER THE PROGRAM IF THE 14 PROJECT: 15 (1) PROPOSES TO DEVELOP A RESILIENCY HUB ; 16 (2) WILL OPERATE THE RES ILIENCY HUB FOR A PE RIOD OF AT LEAST 17 10 YEARS; AND 18 (3) WILL SERVE A COMMUNI TY OF MAJORITY LOW –INCOME OR 19 MODERATE–INCOME HOUSEHOLDS . 20 (G) THE ADMINISTRATION SHALL : 21 (1) COORDINATE ADMINISTRATION OF TH E PROGRAM WITH THE 22 MARYLAND DEPARTMENT OF EMERGENCY MANAGEMENT ; AND 23 (2) PROVIDE TO GRANT APPLICANTS INFORMATI ON ON OTHER 24 SOURCES OF ASSISTANC E THAT MAY BENEFIT T HE PROJECT, INCLUDING LOANS AND 25 GRANTS AWARDED UNDER § 9–20B–05(I)(3) OF THIS TITLE. 26 (H) A PERSON WHO RECEIVES A GRANT UNDER THE PROGRAM SHALL : 27 8 HOUSE BILL 31 (1) ATTEST IN WRITING TH AT ALL CONT RACTORS AND 1 SUBCONTRACTORS WORKI NG ON THE PROJECT : 2 (I) PAY AT LEAST 150% OF THE STATE MINIMUM WAGE ; 3 (II) PROVIDE CAREER ADVAN CEMENT TRAINING ; 4 (III) AFFORD EMPLOYEES THE RIGHT TO BARGAIN 5 COLLECTIVELY FOR WAG ES AND BENEFITS ; 6 (IV) PROVIDE PAID LEAVE; 7 (V) ARE CONSIDERED “COVERED EMPLOYMENT ” FOR 8 PURPOSES OF UNEMPLOY MENT INSURANCE BENEF ITS IN ACCORDANCE WITH TITLE 9 8 OF THE LABOR AND EMPLOYMENT ARTICLE; 10 (VI) ENTITLE THE EMPLOYEES TO WORKERS’ COMPENSATION 11 BENEFITS IN ACCORDAN CE WITH TITLE 9 OF THE LABOR AND EMPLOYMENT 12 ARTICLE; 13 (VII) HAVE BEEN IN COMPLIA NCE WITH FEDERAL AND STATE 14 WAGE AND HOUR LAWS FOR THE LONGER OF THE IMMEDIATELY PREC EDING 3 YEARS 15 OR FOR THE DURATION OF THE CONTRACTOR’S OR SUBCONTRACTOR ’S BUSINESS 16 OPERATION; 17 (VIII) OFFER EMPLOYER–PROVIDED HEALTH INSU RANCE 18 BENEFITS WITH MONTHLY PREMIUM S THAT DO NOT EXCEED 8.5% OF THE 19 EMPLOYEE’S NET MONTHLY EARNIN GS; AND 20 (IX) OFFER RETIREMENT BEN EFITS; AND 21 (2) PROVIDE TO THE ADMINISTRATION A PROG RESS REPORT ON OR 22 BEFORE JANUARY 10, APRIL 10, JULY 10, AND OCTOBER 10 EACH YEAR. 23 9–2011. 24 (A) (1) IN THIS SECTION THE F OLLOWING WORDS HAVE THE MEANINGS 25 INDICATED. 26 (2) “FUND” MEANS THE RESILIENCY HUB GRANT PROGRAM FUND. 27 (3) “PROGRAM” MEANS THE RESILIENCY HUB GRANT PROGRAM 28 ESTABLISHED UNDER § 9–2010 OF THIS SUBTITLE. 29 HOUSE BILL 31 9 (B) THERE IS A RESILIENCY HUB GRANT PROGRAM FUND. 1 (C) THE PURPOSE OF THE FUND IS TO PROVIDE GR ANTS UNDER THE 2 PROGRAM. 3 (D) THE ADMINISTRATION SHALL ADMINISTER THE FUND. 4 (E) (1) THE FUND IS A SPECIAL , NONLAPSING FUND THAT IS NOT 5 SUBJECT TO § 7–302 OF THE STATE FINANCE AND PROCUREMENT ARTICLE. 6 (2) THE STATE TREASURER SHALL HOLD THE FUND SEPARATELY , 7 AND THE COMPTROLLER SHALL ACC OUNT FOR THE FUND. 8 (F) THE FUND CONSISTS OF : 9 (1) GRANT FUNDING OBTAIN ED UNDER SUBSECTION (K) OF THIS 10 SECTION; 11 (2) FUNDS DISTRIBUTED TO THE FUND UNDER § 9–20B–05 OF THIS 12 TITLE AND §§ 2–110.1 AND 13–201 OF THE PUBLIC UTILITIES ARTICLE; 13 (3) MONEY APPROPRIATED I N THE STATE BUDGET TO THE FUND; 14 (4) INTEREST EARNINGS ; AND 15 (5) ANY OTHER MONEY FROM ANY OTHER SOURCE ACC EPTED FOR 16 THE BENEFIT OF THE FUND. 17 (G) THE FUND MAY BE USED ONLY FOR: 18 (1) GRANTS AWARDED UNDER THE PROGRAM; AND 19 (2) COSTS ASSOCIATED WIT H ADMINISTERING THE PROGRAM AND 20 THE FUND. 21 (H) (1) THE STATE TREASURER SHALL INVES T THE MONEY OF THE FUND 22 IN THE SAME MANNER A S OTHER STATE MONEY MAY BE IN VESTED. 23 (2) ANY INTEREST EARNINGS OF THE FUND SHALL BE CREDITE D TO 24 THE FUND. 25 10 HOUSE BILL 31 (I) EXPENDITURES FROM THE FUND MAY BE MADE ONLY IN ACCORDANCE 1 WITH THE STATE BUDGET . 2 (J) MONEY EXPENDED FROM T HE FUND FOR THE PROGRAM IS 3 SUPPLEMENTAL TO AND IS NOT INTENDED TO T AKE THE PLACE OF FUN DING THAT 4 OTHERWISE WOULD BE A PPROPRIATED FOR THE PROGRAM. 5 (K) THE ADMINISTRATION AND THE MARYLAND DEPARTMENT OF 6 EMERGENCY MANAGEMENT , IN COORDINATION WITH ANY OTHER APPROPRIATE 7 UNIT OF STATE GOVERNMENT , SHALL IDENTIFY AND A PPLY FOR GRANT FUNDI NG, 8 INCLUDING FEDERAL GR ANT FUNDING, TO SUPPORT THE PROGRAM. 9 9–20B–05. 10 (f) The Administration shall use the Fund: 11 (10) subject to subsections (f–2) and (f–3) of this section, to invest in 12 pre–apprenticeship, youth apprenticeship, and registered apprenticeship programs to 13 establish career paths in the clean energy industry under § 11–708.1 of the Labor and 14 Employment Article, as follows: 15 (i) $1,250,000 for grants to pre–apprenticeship jobs training 16 programs under § 11–708.1(c)(3) of the Labor and Employment Article starting in fiscal 17 year 2021 until all amounts are spent; 18 (ii) $6,000,000 for grants to youth apprenticeship jobs training 19 programs and registered apprenticeship jobs training programs under § 11–708.1(c)(5) of 20 the Labor and Employment Article starting in fiscal year 2021 until all amounts are spent; 21 and 22 (iii) $750,000 for the recruitment of individuals, including veterans 23 and formerly incarcerated individuals, to the pre–apprenticeship jobs training programs 24 and the registered apprenticeship jobs training programs under § 11–708.1 of the Labor 25 and Employment Article starting in fiscal year 2021 until all amounts are spent; [and] 26 (11) TO PROVIDE $500,000 EACH YEAR TO THE RESILIENCY HUB 27 GRANT PROGRAM FUND UNDER § 9–2011 OF THIS TITLE; AND 28 [(11)] (12) to pay the expenses of the Program. 29 (i) (1) In this subsection, “low–income” means having an annual household 30 income that is at or below 175% of the federal poverty level. 31 (2) Except as provided in paragraph (3) of this subsection, compliance fees 32 paid under § 7–705(b) of the Public Utilities Article may be used only to make loans and 33 HOUSE BILL 31 11 grants to support the creation of new Tier 1 renewable energy sources in the State that are 1 owned by or directly benefit low–income residents of the State. 2 (3) Compliance fees paid under § 7–705(b)(2)(i)2 of the Public Utilities 3 Article shall be accounted for separately within the Fund and may be used only to make 4 loans and grants to support the creation of new solar energy sources in the State that are 5 owned by or directly benefit low–income residents of the State. 6 SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect 7 October 1, 2022. 8