Maryland 2022 2022 Regular Session

Maryland House Bill HB31 Chaptered / Bill

Filed 06/07/2022

                     LAWRENCE J. HOGAN, JR., Governor Ch. 734 
 
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Chapter 734 
(House Bill 31) 
 
AN ACT concerning 
 
Maryland Energy Administration – Resiliency Hub Grant Program and Fund 
 
FOR the purpose of establishing the Resiliency Hub Grant Program in the Maryland 
Energy Administration; requiring the Administration to establish certain procedures 
and criteria for the Program; establishing the Resiliency Hub Grant Program Fund 
as a special, nonlapsing fund; requiring interest earnings of the Resiliency Hub 
Grant Program Fund to be credited to the Resiliency Hub Grant Program Fund; 
requiring that certain fines and penalties be credited to the Resiliency Hub Grant 
Program Fund rather than the General Fund of the State; requiring the 
Administration to provide certain Maryland Strategic Energy Investment Fund 
funding to the Resiliency Hub Grant Program Fund; and generally relating to the 
Resiliency Hub Grant Program and Fund. 
 
BY repealing and reenacting, without amendments, 
 Article – Public Utilities 
Section 2–110.1(a) and (b) and 7–306.2(a)(1) and (3)  
 Annotated Code of Maryland 
 (2020 Replacement Volume and 2021 Supplement) 
 
BY repealing and reenacting, with amendments, 
 Article – Public Utilities 
Section 2–110.1(c) and 13–201 
 Annotated Code of Maryland 
 (2020 Replacement Volume and 2021 Supplement) 
 
BY repealing and reenacting, without amendments, 
 Article – State Finance and Procurement 
Section 6–226(a)(2)(i) 
 Annotated Code of Maryland 
 (2021 Replacement Volume) 
 
BY repealing and reenacting, with amendments, 
 Article – State Finance and Procurement 
Section 6–226(a)(2)(ii)144. and 145. 
 Annotated Code of Maryland 
 (2021 Replacement Volume) 
 
BY adding to 
 Article – State Finance and Procurement 
Section 6–226(a)(2)(ii)146. 
 Annotated Code of Maryland  Ch. 734 	2022 LAWS OF MARYLAND  
 
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 (2021 Replacement Volume) 
 
BY adding to 
 Article – State Government 
Section 9–2010, 9–2011, and 9–20B–05(f)(11) 
 Annotated Code of Maryland 
 (2021 Replacement Volume) 
 
BY repealing and reenacting, with amendments, 
 Article – State Government 
Section 9–20B–05(f)(10) and (11) 
 Annotated Code of Maryland 
 (2021 Replacement Volume) 
 
BY repealing and reenacting, without amendments, 
 Article – State Government 
Section 9–20B–05(i) 
 Annotated Code of Maryland 
 (2021 Replacement Volume) 
 
 SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 
That the Laws of Maryland read as follows: 
 
Article – Public Utilities 
 
2–110.1. 
 
 (a) There is a Public Utility Regulation Fund. 
 
 (b) The Fund consists of: 
 
 (1) all revenue received through the imposition and collection of 
assessments under § 2–110 of this subtitle; 
 
 (2) fees received by the Commission under § 2–123 of this subtitle for 
filings and for other services rendered by the Commission; 
 
 (3) income from investments that the State Treasurer makes for the Fund; 
and 
 
 (4) any other fee, examination assessment, or revenue received by the 
Commission under this division. 
 
 (c) Notwithstanding subsection (b) of this section, the Commission shall pay all 
fines and penalties collected by the Commission under this article into the [General Fund   LAWRENCE J. HOGAN, JR., Governor Ch. 734 
 
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of the State] RESILIENCY HUB GRANT PROGRAM FUND ESTABLISHED UNDE R §  
9–2011 OF THE STATE GOVERNMENT ARTICLE. 
 
7–306.2. 
 
 (a) (1) In this section the following words have the meanings indicated. 
 
 (3) “Community solar energy generating system” means a solar energy 
system that: 
 
 (i) is connected to the electric distribution grid serving the State; 
 
 (ii) is located in the same electric service territory as its subscribers; 
 
 (iii) is attached to the electric meter of a subscriber or is a separate 
facility with its own electric meter; 
 
 (iv) credits its generated electricity, or the value of its generated 
electricity, to the bills of the subscribers to that system through virtual net energy 
metering; 
 
 (v) has at least two subscribers but no limit to the maximum number 
of subscribers; 
 
 (vi) does not have subscriptions larger than 200 kilowatts 
constituting more than 60% of its subscriptions; 
 
 (vii) has a generating capacity that does not exceed 2 megawatts as 
measured by the alternating current rating of the system’s inverter; and 
 
 (viii) may be owned by any person. 
 
13–201. 
 
 (a) This section does not apply to a violation of the following provisions of this 
article: 
 
 (1) Title 5, Subtitle 4; 
 
 (2) Title 7, Subtitle 1; 
 
 (3) § 7–213 as it applies to electric cooperatives; 
 
 (4) Title 8, Subtitles 1 and 3; 
 
 (5) Title 9, Subtitle 3; and  Ch. 734 	2022 LAWS OF MARYLAND  
 
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 (6) Title 8, Subtitle 4. 
 
 (b) (1) Except as provided in paragraph (2) of this subsection, the Commission 
may impose a civil penalty not exceeding $25,000 against a person who violates a provision 
of this division, or an effective and outstanding direction, ruling, order, rule, or regulation 
of the Commission. 
 
 (2) The civil penalty that the Commission may impose on a common carrier 
for each violation may not exceed $2,500. 
 
 (c) (1) A civil penalty may be imposed in addition to any other penalty 
authorized by this division. 
 
 (2) Each violation is a separate offense. 
 
 (3) Each day or part of a day the violation continues is a separate offense. 
 
 (d) The Commission shall determine the amount of any civil penalty after 
considering: 
 
 (1) the number of previous violations of any provision of this article; 
 
 (2) the gravity of the current violation; 
 
 (3) the good faith efforts of the violator in attempting to achieve compliance 
after notification of the violation; and 
 
 (4) any other matter that the Commission considers appropriate and 
relevant. 
 
 (e) (1) Except as provided in paragraphs (2) and (3) of this subsection, a civil 
penalty collected under this section shall be paid into the [General Fund of the State] 
RESILIENCY HUB GRANT PROGRAM FUND ESTABLISHED UNDE R § 9–2011 OF THE 
STATE GOVERNMENT ARTICLE. 
 
 (2) A civil penalty assessed for a violation of a service quality and reliability 
standard under § 7–213 of this article shall be paid into the Electric Reliability Remediation 
Fund under § 7–213(j) of this article. 
 
 (3) A civil penalty assessed for a violation of § 7–505(b)(7), § 7–507, §  
7–603, § 7–604, or § 7–606 of this article, or a rule, an order, or a regulation adopted under 
any of those sections, shall be paid into the Retail Choice Customer Education and 
Protection Fund under § 7–310 of this article. 
 
Article – State Finance and Procurement   LAWRENCE J. HOGAN, JR., Governor Ch. 734 
 
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6–226. 
 
 (a) (2) (i) Notwithstanding any other provision of law, and unless 
inconsistent with a federal law, grant agreement, or other federal requirement or with the 
terms of a gift or settlement agreement, net interest on all State money allocated by the 
State Treasurer under this section to special funds or accounts, and otherwise entitled to 
receive interest earnings, as accounted for by the Comptroller, shall accrue to the General 
Fund of the State. 
 
 (ii) The provisions of subparagraph (i) of this paragraph do not apply 
to the following funds: 
 
 144. the Health Equity Resource Community Reserve Fund; 
[and] 
 
 145. the Access to Counsel in Evictions Special Fund; AND 
 
 146. THE RESILIENCY HUB GRANT PROGRAM FUND. 
 
Article – State Government 
 
9–2010. 
 
 (A) (1) IN THIS SECTION THE F OLLOWING WORDS HAVE THE MEANINGS 
INDICATED. 
 
 (2) “EXTENDED GRID OUTAGE ” MEANS A PLANNED OR U NPLANNED 
GRID OUTAGE LASTING MORE THAN 4 HOURS. 
 
 (3) “LOW–INCOME” MEANS A HOUSEHOLD WI TH AN ANNUAL 
ADJUSTED GROSS INCOM E AT OR BELOW 175% OF THE FEDERAL POVER TY LEVEL. 
 
 (4) “MICROGRID” MEANS TECHNOLOGY THA T:  
 
 (I) COMBINES CLEAN , DISTRIBUTED POWER GE NERATION 
WITH ADVANCED CONTRO L EQUIPMENT ; AND 
 
 (II) ENABLES PORTIONS OF THE ELECTRIC GRID TO REMAIN 
ONLINE WHEN THE WIDE R GRID IS DOWN. 
 
 (5) “MODERATE–INCOME” MEANS A HOUSEHOLD WI TH AN ANNUAL 
ADJUSTED GROSS INCOM E AT OR BELOW 80% OF THE LOCAL MEDIAN INCOME, AS 
DETERMINED BY THE LA TEST MARYLAND DEPARTMENT OF HOUSING AND 
COMMUNITY DEVELOPMENT “INCOME LIMITS” DOCUMENT .  Ch. 734 	2022 LAWS OF MARYLAND  
 
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 (6) “PROGRAM” MEANS THE RESILIENCY HUB GRANT PROGRAM. 
 
 (7) “RESILIENCY HUB ” MEANS A LOCATION WHE RE SOLAR 
PHOTOVOLTAIC AND BAT TERY ENERGY STORAGE ARE DESIGNED TO PROV IDE 
ELECTRICITY TO MEET COMMUNITY NEEDS DURI NG EXTENDED GRID OUT AGES, 
INCLUDING PROVIDING : 
 
 (I) EMERGENCY HEATING AN D COOLING; 
 
 (II) REFRIGERATION OF TEM	PERATURE–SENSITIVE 
MEDICATIONS ; 
 
 (III) OUTLETS OR OTHER PLU G POWER OPTIONS FOR CHARGING 
CELL PHONE AND COMPU TER BATTERIES ; AND 
 
 (IV) VENTILATION AND EMER GENCY LIGHTING . 
 
 (B) THERE IS A RESILIENCY HUB GRANT PROGRAM IN THE 
ADMINISTRATION . 
 
 (C) THE PURPOSE OF THE PROGRAM IS TO DEVELOP RESILIENCY HUBS 
THAT SERVE LOW –INCOME AND MODERATE –INCOME HOUSEHOLDS AT NO COST TO 
THE HOUSEHOLDS . 
 
 (D) (1) BY REGULATION , THE ADMINISTRATION SHALL SET THE TERMS 
AND CONDITIONS FOR T HE ISSUANCE OF GRANT S UNDER THE PROGRAM 
CONSISTENT WITH THIS SUBTITLE. 
 
 (2) THE REGULATIONS SHALL INCLUDE: 
 
 (I) A COMPETITIVE APPLIC ATION PROCESS FOR TH E 
PROGRAM; AND 
 
 (II) CRITERIA AND PROCEDU RES FOR AWARDING GRA NTS TO 
ELIGIBLE RECIPIENTS THAT GIVE PRIORITY T O AWARDING GRANTS TO PROJECTS 
FOR MICROGRIDS THAT : 
 
 1. USE A COMMUNITY SOLA R ENERGY GENERATING 
SYSTEM, AS DEFINED IN § 7–306.2 OF THE PUBLIC UTILITIES ARTICLE; AND  
 
 2. PROVIDE MORE THAN 30% OF THE SYSTEM ’S 
KILOWATT OUTPUT TO L OW–INCOME AND MODERATE –INCOME SUBSCRIBERS . 
   LAWRENCE J. HOGAN, JR., Governor Ch. 734 
 
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 (E) THE FOLLOWING PERSONS ARE ELIGIBLE FOR A G RANT UNDER THE 
PROGRAM: 
 
 (1) BUSINESSES; 
 
 (2) NONPROFIT ENTITIES ; 
 
 (3) UNITS OF STATE GOVERNMENT ; AND 
 
 (4) LOCAL GOVERNMENTS . 
 
 (F) A PROJECT IS ELIGIBLE FOR A GRANT UNDER THE PROGRAM IF THE 
PROJECT: 
 
 (1) PROPOSES TO DEVELOP A RESILIENCY HUB ; 
 
 (2) WILL OPERATE THE RES ILIENCY HUB FOR A PE RIOD OF AT LEAST 
10 5 YEARS; AND 
 
 (3) WILL SERVE A COMMUNI TY OF MAJORITY LOW –INCOME OR 
MODERATE –INCOME HOUSEHOLDS . 
 
 (G) THE ADMINISTRATION SHALL : 
 
 (1) COORDINATE ADMINISTR ATION OF THE PROGRAM WITH THE 
MARYLAND DEPARTMENT OF EMERGENCY MANAGEMENT ; AND 
 
 (2) PROVIDE TO GRANT APP LICANTS INFORMATION ON OTHER 
SOURCES OF ASSISTANC E THAT MAY BENEFIT THE PROJECT , INCLUDING LOANS AND 
GRANTS AWARDED UNDER § 9–20B–05(I)(3) OF THIS TITLE. 
 
 (H) A PERSON WHO RECEIVES A GRANT UNDER THE PROGRAM SHALL : 
 
 (1) ATTEST IN WRITING ACQUIRE A WRITTEN AT TESTATION THAT ALL 
INSTALLATION CONTRACTORS AND SUBCONTR ACTORS WORKING ON TH E PROJECT: 
 
 (I) PAY AT LEAST 150% OF THE STATE MINIMUM WAGE ; 
 
 (II) PROVIDE CAREER ADVAN CEMENT TRAINING ; 
 
 (III) (II) AFFORD EMPLOYEES THE RIGHT TO BARGAIN 
COLLECTIVELY FOR WAG ES AND BENEFITS ; 
 
 (IV) (III) PROVIDE PAID LEAVE ;  Ch. 734 	2022 LAWS OF MARYLAND  
 
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 (V) (IV) ARE CONSIDERED “COVERED EMPLOYMENT ” FOR 
PURPOSES OF UNEMPLOY MENT INSURANCE BENEF ITS IN ACCORDANCE WI TH TITLE 
8 OF THE LABOR AND EMPLOYMENT ARTICLE; 
 
 (VI) (V) ENTITLE THE EMPLOYEE	S TO WORKERS ’ 
COMPENSATION BENEFIT S IN ACCORDANCE WITH TITLE 9 OF THE LABOR AND 
EMPLOYMENT ARTICLE; 
 
 (VII) (VI) HAVE BEEN IN COMPLIA NCE WITH FEDERAL AND 
STATE WAGE AND HOUR L AWS FOR THE LONGER O F THE IMMEDIATELY PR ECEDING 
3 YEARS OR FOR THE DUR ATION OF THE CONTRAC TOR’S OR SUBCONTRACTOR ’S 
BUSINESS OPERATION ; AND 
 
 (VIII) (VII) OFFER EMPLOYER –PROVIDED HEALTH INSU RANCE 
BENEFITS WITH MONTHL Y PREMIUMS THAT DO N OT EXCEED 8.5% OF THE 
EMPLOYEE’S NET MONTHLY EARNIN GS; AND 
 
 (IX) OFFER RETIREMENT BEN EFITS; AND 
 
 (2) PROVIDE TO THE ADMINISTRATION A PROG RESS REPORT ON OR 
BEFORE JANUARY 10, APRIL 10, JULY 10, AND OCTOBER 10 EACH YEAR. 
 
9–2011. 
 
 (A) (1) IN THIS SECTION THE F OLLOWING WORDS HAVE THE MEANINGS 
INDICATED. 
 
 (2) “FUND” MEANS THE RESILIENCY HUB GRANT PROGRAM FUND. 
 
 (3) “PROGRAM” MEANS THE RESILIENCY HUB GRANT PROGRAM 
ESTABLISHED UNDER § 9–2010 OF THIS SUBTITLE . 
 
 (B) THERE IS A RESILIENCY HUB GRANT PROGRAM FUND. 
 
 (C) THE PURPOSE OF THE FUND IS TO PROVIDE GR ANTS UNDER THE 
PROGRAM. 
 
 (D) THE ADMINISTRATION SHALL ADMINISTER THE FUND. 
 
 (E) (1) THE FUND IS A SPECI AL, NONLAPSING FUND THAT IS NOT 
SUBJECT TO § 7–302 OF THE STATE FINANCE AND PROCUREMENT ARTICLE. 
   LAWRENCE J. HOGAN, JR., Governor Ch. 734 
 
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 (2) THE STATE TREASURER SHALL HOLD THE FUND SEPARATELY , 
AND THE COMPTROLLER SHALL ACC OUNT FOR THE FUND. 
 
 (F) THE FUND CONSISTS OF : 
 
 (1) GRANT FUNDING OBTAINED UNDER SUBSE CTION (K) OF THIS 
SECTION; 
 
 (2) FUNDS DISTRIBUTED TO THE FUND UNDER § 9–20B–05 OF THIS 
TITLE AND §§ 2–110.1 AND 13–201 OF THE PUBLIC UTILITIES ARTICLE; 
 
 (3) MONEY APPROPRIATED I N THE STATE BUDGET TO THE FUND; 
 
 (4) INTEREST EARNINGS; AND 
 
 (5) ANY OTHER MONEY FROM ANY OTHER SOURCE ACC EPTED FOR 
THE BENEFIT OF THE FUND. 
 
 (G) THE FUND MAY BE USED ONLY FOR: 
 
 (1) GRANTS AWARDED UNDER THE PROGRAM; AND 
 
 (2) COSTS ASSOCIATED WIT H ADMINISTERING THE PROGRAM AND 
THE FUND. 
 
 (H) (1) THE STATE TREASURER SHALL INVES T THE MONEY OF THE FUND 
IN THE SAME MANNER A S OTHER STATE MONEY MAY BE IN VESTED. 
 
 (2) ANY INTEREST EARNINGS OF THE FUND SHALL BE CREDITE D TO 
THE FUND. 
 
 (I) EXPENDITURES FROM THE FUND MAY BE MADE ONLY IN ACCORDANCE 
WITH THE STATE BUDGET . 
 
 (J) MONEY EXPENDED FROM T HE FUND FOR THE PROGRAM IS 
SUPPLEMENTAL TO AND IS NOT INTENDED TO T AKE THE PLACE OF FUN DING THAT 
OTHERWISE WOULD BE A PPROPRIATED FOR THE PROGRAM. 
 
 (K) THE ADMINISTRATION AND TH E MARYLAND DEPARTMENT OF 
EMERGENCY MANAGEMENT , IN COORDINATION WITH ANY OTHER APPROPRIAT E 
UNIT OF STATE GOVERNMENT , SHALL IDENTIFY AND A PPLY FOR GRANT FUNDI NG, 
INCLUDING FEDERAL GR ANT FUNDING , TO SUPPORT THE PROGRAM. 
 
9–20B–05.  Ch. 734 	2022 LAWS OF MARYLAND  
 
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 (f) The Administration shall use the Fund: 
 
 (10) subject to subsections (f–2) and (f–3) of this section, to invest in  
pre–apprenticeship, youth apprenticeship, and registered apprenticeship programs to 
establish career paths in the clean energy industry under § 11–708.1 of the Labor and 
Employment Article, as follows: 
 
 (i) $1,250,000 for grants to pre–apprenticeship jobs training 
programs under § 11–708.1(c)(3) of the Labor and Employment Article starting in fiscal 
year 2021 until all amounts are spent; 
 
 (ii) $6,000,000 for grants to youth apprenticeship jobs training 
programs and registered apprenticeship jobs training programs under § 11–708.1(c)(5) of 
the Labor and Employment Article starting in fiscal year 2021 until all amounts are spent; 
and 
 
 (iii) $750,000 for the recruitment of individuals, including veterans 
and formerly incarcerated individuals, to the pre–apprenticeship jobs training programs 
and the registered apprenticeship jobs training programs under § 11–708.1 of the Labor 
and Employment Article starting in fiscal year 2021 until all amounts are spent; [and] 
 
 (11) TO PROVIDE AT LEAST $500,000 EACH YEAR TO THE RESILIENCY 
HUB GRANT PROGRAM FUND UNDER § 9–2011 OF THIS TITLE; AND 
 
 [(11)] (12) to pay the expenses of the Program. 
 
 (i) (1) In this subsection, “low–income” means having an annual household 
income that is at or below 175% of the federal poverty level. 
 
 (2) Except as provided in paragraph (3) of this subsection, compliance fees 
paid under § 7–705(b) of the Public Utilities Article may be used only to make loans and 
grants to support the creation of new Tier 1 renewable energy sources in the State that are 
owned by or directly benefit low–income residents of the State. 
 
 (3) Compliance fees paid under § 7–705(b)(2)(i)2 of the Public Utilities 
Article shall be accounted for separately within the Fund and may be used only to make 
loans and grants to support the creation of new solar energy sources in the State that are 
owned by or directly benefit low–income residents of the State. 
 
 SECTION 2. AND BE IT FURTHER ENACTED, That th is Act shall take effect 
October 1, 2022.  
 
Enacted under Article II, § 17(c) of the Maryland Constitution, May 29, 2022.