EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW. [Brackets] indicate matter deleted from existing law. Underlining indicates amendments to bill. Strike out indicates matter stricken from the bill by amendment or deleted from the law by amendment. *hb0031* HOUSE BILL 31 M5, C5 2lr0806 (PRE–FILED) CF SB 256 By: Delegate Charkoudian Requested: October 18, 2021 Introduced and read first time: January 12, 2022 Assigned to: Economic Matters Committee Report: Favorable with amendments House action: Adopted Read second time: March 3, 2022 CHAPTER ______ 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 Gener al 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 2 HOUSE BILL 31 BY repealing and reenacting, without amendments, 1 Article – State Finance and Procurement 2 Section 6–226(a)(2)(i) 3 Annotated Code of Maryland 4 (2021 Replacement Volume) 5 BY repealing and reenacting, with amendments, 6 Article – State Finance and Procurement 7 Section 6–226(a)(2)(ii)144. and 145. 8 Annotated Code of Maryland 9 (2021 Replacement Volume) 10 BY adding to 11 Article – State Finance and Procurement 12 Section 6–226(a)(2)(ii)146. 13 Annotated Code of Maryland 14 (2021 Replacement Volume) 15 BY adding to 16 Article – State Government 17 Section 9–2010, 9–2011, and 9–20B–05(f)(11) 18 Annotated Code of Maryland 19 (2021 Replacement Volume) 20 BY repealing and reenacting, with amendments, 21 Article – State Government 22 Section 9–20B–05(f)(10) and (11) 23 Annotated Code of Maryland 24 (2021 Replacement Volume) 25 BY repealing and reenacting, without amendments, 26 Article – State Government 27 Section 9–20B–05(i) 28 Annotated Code of Maryland 29 (2021 Replacement Volume) 30 SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 31 That the Laws of Maryland read as follows: 32 Article – Public Utilities 33 2–110.1. 34 (a) There is a Public Utility Regulation Fund. 35 (b) The Fund consists of: 36 HOUSE BILL 31 3 (1) all revenue received through the imposition and collection of 1 assessments under § 2–110 of this subtitle; 2 (2) fees received by the Commission under § 2–123 of this subtitle for 3 filings and for other services rendered by the Commission; 4 (3) income from investments that the State Treasurer makes for the Fund; 5 and 6 (4) any other fee, examination assessment, or revenue received by the 7 Commission under this division. 8 (c) Notwithstanding subsection (b) of this section, the Commission shall pay all 9 fines and penalties collected by the Commission under this article into the [General Fund 10 of the State] RESILIENCY HUB GRANT PROGRAM FUND ESTABLISHED UNDE R § 11 9–2011 OF THE STATE GOVERNMENT ARTICLE. 12 7–306.2. 13 (a) (1) In this section the following words have the meanings indicated. 14 (3) “Community solar energy generating system” means a solar energy 15 system that: 16 (i) is connected to the electric distribution grid serving the State; 17 (ii) is located in the same electric service territory as its subscribers; 18 (iii) is attached to the electric meter of a subscriber or is a separate 19 facility with its own electric meter; 20 (iv) credits its generated electricity, or the value of its generated 21 electricity, to the bills of the subscribers to that system through virtual net energy 22 metering; 23 (v) has at least two subscribers but no limit to the maximum number 24 of subscribers; 25 (vi) does not have subscriptions larger than 200 kilowatts 26 constituting more than 60% of its subscriptions; 27 (vii) has a generating capacity that does not exceed 2 megawatts as 28 measured by the alternating current rating of the system’s inverter; and 29 (viii) may be owned by any person. 30 4 HOUSE BILL 31 13–201. 1 (a) This section does not apply to a violation of the following provisions of this 2 article: 3 (1) Title 5, Subtitle 4; 4 (2) Title 7, Subtitle 1; 5 (3) § 7–213 as it applies to electric cooperatives; 6 (4) Title 8, Subtitles 1 and 3; 7 (5) Title 9, Subtitle 3; and 8 (6) Title 8, Subtitle 4. 9 (b) (1) Except as provided in paragraph (2) of this subsection, the Commission 10 may impose a civil penalty not exceeding $25,000 against a person who violates a provision 11 of this division, or an effective and outstanding direction, ruling, order, rule, or regulation 12 of the Commission. 13 (2) The civil penalty that the Commission may impose on a common carrier 14 for each violation may not exceed $2,500. 15 (c) (1) A civil penalty may be imposed in addition to any other penalty 16 authorized by this division. 17 (2) Each violation is a separate offense. 18 (3) Each day or part of a day the violation continues is a separate offense. 19 (d) The Commission shall determine the amount of any civil penalty after 20 considering: 21 (1) the number of previous violations of any provision of this article; 22 (2) the gravity of the current violation; 23 (3) the good faith efforts of the violator in attempting to achieve compliance 24 after notification of the violation; and 25 (4) any other matter that the Commission considers appropriate and 26 relevant. 27 (e) (1) Except as provided in paragraphs (2) and (3) of this subsection, a civil 28 penalty collected under this section shall be paid into the [General Fund of the State] 29 HOUSE BILL 31 5 RESILIENCY HUB GRANT PROGRAM FUND ESTABLISHED UNDE R § 9–2011 OF THE 1 STATE GOVERNMENT ARTICLE. 2 (2) A civil penalty assessed for a violation of a service quality and reliability 3 standard under § 7–213 of this article shall be paid into the Electric Reliability Remediation 4 Fund under § 7–213(j) of this article. 5 (3) A civil penalty assessed for a violation of § 7–505(b)(7), § 7–507, § 6 7–603, § 7–604, or § 7–606 of this article, or a rule, an order, or a regulation adopted under 7 any of those sections, shall be paid into the Retail Choice Customer Education and 8 Protection Fund under § 7–310 of this article. 9 Article – State Finance and Procurement 10 6–226. 11 (a) (2) (i) Notwithstanding any other provision of law, and unless 12 inconsistent with a federal law, grant agreement, or other federal requirement or with the 13 terms of a gift or settlement agreement, net interest on all State money allocated by the 14 State Treasurer under this section to special funds or accounts, and otherwise entitled to 15 receive interest earnings, as accounted for by the Comptroller, shall accrue to the General 16 Fund of the State. 17 (ii) The provisions of subparagraph (i) of this paragraph do not apply 18 to the following funds: 19 144. the Health Equity Resource Community Reserve Fund; 20 [and] 21 145. the Access to Counsel in Evictions Special Fund; AND 22 146. THE RESILIENCY HUB GRANT PROGRAM FUND. 23 Article – State Government 24 9–2010. 25 (A) (1) IN THIS SECTION THE F OLLOWING WORDS HAVE THE MEANINGS 26 INDICATED. 27 (2) “EXTENDED GRID OUTAGE ” MEANS A PLANNED OR U NPLANNED 28 GRID OUTAGE LASTING MORE THAN 4 HOURS. 29 (3) “LOW–INCOME” MEANS A HOUSEHOLD WITH AN ANNUAL 30 ADJUSTED GROSS INCOM E AT OR BELOW 175% OF THE FEDERAL POVER TY LEVEL. 31 6 HOUSE BILL 31 (4) “MICROGRID” MEANS TECHNOLOGY THA T: 1 (I) COMBINES CLEAN , DISTRIBUTED POWER GE NERATION 2 WITH ADVANCED CONTRO L EQUIPMENT; AND 3 (II) ENABLES PORTIONS O F THE ELECTRIC GRID TO REMAIN 4 ONLINE WHEN THE WIDE R GRID IS DOWN. 5 (5) “MODERATE–INCOME” MEANS A HOUSEHOLD WI TH AN ANNUAL 6 ADJUSTED GROSS INCOM E AT OR BELOW 80% OF THE LOCAL MEDIAN INCOME, AS 7 DETERMINED BY THE LA TEST MARYLAND DEPARTMENT OF HOUSING AND 8 COMMUNITY DEVELOPMENT “INCOME LIMITS” DOCUMENT . 9 (6) “PROGRAM” MEANS THE RESILIENCY HUB GRANT PROGRAM. 10 (7) “RESILIENCY HUB ” MEANS A LOCATION WHE RE SOLAR 11 PHOTOVOLTAIC AND BAT TERY ENERGY STORAGE ARE DESIGNED TO PROV IDE 12 ELECTRICITY TO MEET COMMUNITY NEEDS DURING EXTENDED GRID OUTAGES, 13 INCLUDING PROVIDING : 14 (I) EMERGENCY HEATING AN D COOLING; 15 (II) REFRIGERATION OF TEM PERATURE–SENSITIVE 16 MEDICATIONS ; 17 (III) OUTLETS OR OTHER PLU G POWER OPTIONS FOR CHARGING 18 CELL PHONE AND COMPU TER BATTERIES ; AND 19 (IV) VENTILATION AND EMER GENCY LIGHTING . 20 (B) THERE IS A RESILIENCY HUB GRANT PROGRAM IN THE 21 ADMINISTRATION . 22 (C) THE PURPOSE OF THE PROGRAM IS TO DEVELOP RESILIENCY HUBS 23 THAT SERVE LOW –INCOME AND MODERATE –INCOME HOUSEHOLDS AT NO COST TO 24 THE HOUSEHOLDS . 25 (D) (1) BY REGULATION , THE ADMINISTRATION SHALL SET THE TERMS 26 AND CONDITIONS FOR T HE ISSUANCE OF GRANT S UNDER THE PROGRAM 27 CONSISTENT WITH THIS SUBTITLE. 28 (2) THE REGULATIONS SHALL INCLUDE: 29 HOUSE BILL 31 7 (I) A COMPETITIVE APPLIC ATION PROCESS FOR TH E 1 PROGRAM; AND 2 (II) CRITERIA AND PROCEDU RES FOR AWARDING GRA NTS TO 3 ELIGIBLE RECIPIENTS THAT GIVE PRIORITY T O AWARDING GRANTS TO PROJECTS 4 FOR MICROGRIDS THAT : 5 1. USE A COMMUNITY SOLA R ENERGY GENERATING 6 SYSTEM, AS DEFINED IN § 7–306.2 OF THE PUBLIC UTILITIES ARTICLE; AND 7 2. PROVIDE MORE THAN 30% OF THE SYSTEM ’S 8 KILOWATT OUTPUT TO L OW–INCOME AND MODERATE –INCOME SUBSCRIBERS . 9 (E) THE FOLLOWING PERSONS ARE ELIGIBLE FOR A G RANT UNDER THE 10 PROGRAM: 11 (1) BUSINESSES; 12 (2) NONPROFIT ENTITIES ; 13 (3) UNITS OF STATE GOVERNMENT ; AND 14 (4) LOCAL GOVERNMENTS . 15 (F) A PROJECT IS ELIGIBLE FOR A GRANT UNDER TH E PROGRAM IF THE 16 PROJECT: 17 (1) PROPOSES TO DEVELOP A RESILIENCY HUB ; 18 (2) WILL OPERATE THE RES ILIENCY HUB FOR A PE RIOD OF AT LEAST 19 10 5 YEARS; AND 20 (3) WILL SERVE A COMMUNI TY OF MAJORITY LOW –INCOME OR 21 MODERATE–INCOME HOUSEHOLDS . 22 (G) THE ADMINISTRATION SHALL : 23 (1) COORDINATE ADMINISTR ATION OF THE PROGRAM WITH THE 24 MARYLAND DEPARTMENT OF EMERGENCY MANAGEMENT ; AND 25 (2) PROVIDE TO GRANT APP LICANTS INFORM ATION ON OTHER 26 SOURCES OF ASSISTANC E THAT MAY BENEFIT T HE PROJECT, INCLUDING LOANS AND 27 GRANTS AWARDED UNDER § 9–20B–05(I)(3) OF THIS TITLE. 28 (H) A PERSON WHO RECEIVES A GRANT UNDER THE PROGRAM SHALL : 29 8 HOUSE BILL 31 (1) ATTEST IN WRITING ACQUIRE A WRITTEN AT TESTATION THAT ALL 1 INSTALLATION CONTRACTORS AND SUBCONTRACTORS W ORKING ON THE PROJEC T: 2 (I) PAY AT LEAST 150% OF THE STATE MINIMUM WAGE ; 3 (II) PROVIDE CAREER ADVAN CEMENT TRAINING ; 4 (III) (II) AFFORD EMPLOYEES THE RIGHT TO BARGAIN 5 COLLECTIVELY FOR WAG ES AND BENEFITS; 6 (IV) (III) PROVIDE PAID LEAVE ; 7 (V) (IV) ARE CONSIDERED “COVERED EMPLOYMENT ” FOR 8 PURPOSES OF UNEMPLOY MENT INSURANCE BENEF ITS IN ACCORDANCE WI TH TITLE 9 8 OF THE LABOR AND EMPLOYMENT ARTICLE; 10 (VI) (V) ENTITLE THE EMPLOYEE S TO WORKERS ’ 11 COMPENSATION BENEFITS I N ACCORDANCE WITH TITLE 9 OF THE LABOR AND 12 EMPLOYMENT ARTICLE; 13 (VII) (VI) HAVE BEEN IN COMPLIA NCE WITH FEDERAL AND 14 STATE WAGE AND HOUR L AWS FOR THE LONGER O F THE IMMEDIATELY PR ECEDING 15 3 YEARS OR FOR THE DUR ATION OF THE CONTRAC TOR’S OR SUBCONTRACTOR ’S 16 BUSINESS OPERATION ; AND 17 (VIII) (VII) OFFER EMPLOYER –PROVIDED HEALTH INSU RANCE 18 BENEFITS WITH MONTHL Y PREMIUMS THAT DO N OT 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 (I) EXPENDITURES FRO M THE FUND MAY BE MADE ONLY IN ACCORDANCE 26 WITH THE STATE BUDGET . 27 10 HOUSE BILL 31 (J) MONEY EXPENDED FROM T HE FUND FOR THE PROGRAM IS 1 SUPPLEMENTAL TO AND IS NOT INTENDED TO T AKE THE PLACE OF FUN DING THAT 2 OTHERWISE WOULD BE A PPROPRIATED FOR THE PROGRAM. 3 (K) THE ADMINISTRATION AND THE MARYLAND DEPARTMENT OF 4 EMERGENCY MANAGEMENT , IN COORDINATION WITH ANY OTHER APPROPRIAT E 5 UNIT OF STATE GOVERNMENT , SHALL IDENTIFY AND A PPLY FOR GRANT FUNDI NG, 6 INCLUDING FEDERAL GR ANT FUNDING, TO SUPPORT THE PROGRAM. 7 9–20B–05. 8 (f) The Administration shall use the Fund: 9 (10) subject to subsections (f–2) and (f–3) of this section, to invest in 10 pre–apprenticeship, youth apprenticeship, and registered apprenticeship programs to 11 establish career paths in the clean energy industry under § 11–708.1 of the Labor and 12 Employment Article, as follows: 13 (i) $1,250,000 for grants to pre–apprenticeship jobs training 14 programs under § 11–708.1(c)(3) of the Labor and Employment Article starting in fiscal 15 year 2021 until all amounts are spent; 16 (ii) $6,000,000 for grants to youth apprenticeship jobs training 17 programs and registered apprenticeship jobs training programs under § 11–708.1(c)(5) of 18 the Labor and Employment Article starting in fiscal year 2021 until all amounts are spent; 19 and 20 (iii) $750,000 for the recruitment of individuals, including veterans 21 and formerly incarcerated individuals, to the pre–apprenticeship jobs training programs 22 and the registered apprenticeship jobs training programs under § 11–708.1 of the Labor 23 and Employment Article starting in fiscal year 2021 until all amounts are spent; [and] 24 (11) TO PROVIDE AT LEAST $500,000 EACH YEAR TO THE RESILIENCY 25 HUB GRANT PROGRAM FUND UNDER § 9–2011 OF THIS TITLE; AND 26 [(11)] (12) to pay the expenses of the Program. 27 (i) (1) In this subsection, “low–income” means having an annual household 28 income that is at or below 175% of the federal poverty level. 29 (2) Except as provided in paragraph (3) of this subsection, compliance fees 30 paid under § 7–705(b) of the Public Utilities Article may be used only to make loans and 31 grants to support the creation of new Tier 1 renewable energy sources in the State that are 32 owned by or directly benefit low–income residents of the State. 33 HOUSE BILL 31 11 (3) Compliance fees paid under § 7–705(b)(2)(i)2 of the Public Utilities 1 Article shall be accounted for separately within the Fund and may be used only to make 2 loans and grants to support the creation of new solar energy sources in the State that are 3 owned by or directly benefit low–income residents of the State. 4 SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect 5 October 1, 2022. 6 Approved: ________________________________________________________________________________ Governor. ________________________________________________________________________________ Speaker of the House of Delegates. ________________________________________________________________________________ President of the Senate.