Maryland 2022 Regular Session

Maryland House Bill HB569 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 MAT TER ADDED TO EXISTIN G LAW.
4	4	[Brackets] indicate matter deleted from existing law.
5	5	hb0569
6	6
7	7	HOUSE BILL 569
8	8	C5, M5 2lr2448
9	9	CF SB 418
10	10	By: Delegate Carey
11	11	Introduced and read first time: January 31, 2022
12	12	Assigned to: Economic Matters
13	13
14	14	A BILL ENTITLED
15	15
16	16	AN ACT concerning 1
17	17
18	18	Energy Generation, Transmission, and Storage Projects – Required Community 2
19	19	Benefit Agreement and Labor Standards 3
20	20
21	21	FOR the purpose of requiring the Public Service Commission to condition the approval of a 4
22	22	certificate of public convenience and necessity for the construction of a certain 5
23	23	generating station or qualified generator lead line and an exemption from the 6
24	24	requirement for a certificate of public convenience and necessity on the requirement 7
25	25	that the developer of the project take all reasonable actions to enter into a community 8
26	26	benefits agreement and adhere to certain labor standards and reporting 9
27	27	requirements; establishing certain labor standards and certain community benefit, 10
28	28	certification, reporting, and record–keeping requirements related to the construction 11
29	29	of a covered project; subjecting a developer, contractor, or subcontractor to 12
30	30	debarment or other penalties for knowingly submitting a certification with false, 13
31	31	misleading, or materially inaccurate information; and generally relating to energy 14
32	32	generation, transmission, and storage projects. 15
33	33
34	34	BY repealing and reenacting, without amendments, 16
35	35	Article – Public Utilities 17
36	36	Section 7–207(a)(1), (3), and (5) and (b)(1)(i) and (ii) and 7–207.1(a) and (b)(1) 18
37	37	Annotated Code of Maryland 19
38	38	(2020 Replacement Volume and 2021 Supplement) 20
39	39
40	40	BY adding to 21
41	41	Article – Public Utilities 22
42	42	Section 7–207(h), 7–207.1(g), and 7–207.3 23
43	43	Annotated Code of Maryland 24
44	44	(2020 Replacement Volume and 2021 Supplement) 25
45	45
46	46	SECTION 1. BE IT ENACTED BY THE GENERA L ASSEMBLY OF MARYLAND, 26
47	47	That the Laws of Maryland read as follows: 27
48	48	2 HOUSE BILL 569
49	49
50	50
51	51	Article – Public Utilities 1
52	52
53	53	7–207. 2
54	54
55	55	(a) (1) In this section the following words have the meanings indicated. 3
56	56
57	57	(3) (i) “Construction” means: 4
58	58
59	59	1. any physical change at a site, including fabrication, 5
60	60	erection, installation, or demolition; or 6
61	61
62	62	2. the entry into a binding agreement or contractual 7
63	63	obligation to purchase equipment exclusively for use in construction in the State or to 8
64	64	undertake a program of actual construction in the State which cannot be canceled or 9
65	65	modified without substantial loss to the owner or operator of the proposed generating 10
66	66	station. 11
67	67
68	68	(ii) “Construction” does not include a change that is needed for the 12
69	69	temporary use of a site or route for nonutility purposes or for use in securing geological 13
70	70	data, including any boring that is necessary to ascertain foundation conditions. 14
71	71
72	72	(5) “Qualified generator lead line” means an overhead transmission line 15
73	73	that is designed to carry a voltage in excess of 69,000 volts and would allow an out–of–state 16
74	74	Tier 1 or Tier 2 renewable source to interconnect with a portion of the electric system in 17
75	75	Maryland that is owned by an electric company. 18
76	76
77	77	(b) (1) (i) Unless a certificate of public convenience and necessity for the 19
78	78	construction is first obtained from the Commission, a person may not begin construction in 20
79	79	the State of: 21
80	80
81	81	1. a generating station; or 22
82	82
83	83	2. a qualified generator lead line. 23
84	84
85	85	(ii) If a person obtains Commission approval for construction under 24
86	86	§ 7–207.1 of this subtitle, the Commission shall exempt a person from the requirement to 25
87	87	obtain a certificate of public convenience and necessity under this section. 26
88	88
89	89	(H) THE COMMISSION SHALL COND ITION APPROVAL OF A CERTIFICATE OF 27
90	90	PUBLIC CONVENIENCE A ND NECESSIT Y ON THE REQUIREMENT THAT THE PERSON 28
91	91	CONSTRUCTING A PROPO SED GENERATING STATI ON COMPLY WITH THE 29
92	92	REQUIREMENTS OF § 7–207.3 OF THIS SUBTITLE, AS APPLICABLE. 30
93	93
94	94	7–207.1. 31
95	95
96	96	(a) This section applies to a person who: 32
97	97	HOUSE BILL 569 3
98	98
99	99
100	100	(1) constructs a generating station: 1
101	101
102	102	(i) designed to provide on–site generated electricity if: 2
103	103
104	104	1. the capacity of the generating station does not exceed 70 3
105	105	megawatts; and 4
106	106
107	107	2. the electricity that may be exported for sale from the 5
108	108	generating station to the electric system is sold only on the wholesale market pursuant to 6
109	109	an interconnection, operation, and maintenance agreement with the local electric company; 7
110	110	or 8
111	111
112	112	(ii) that produces electricity from wind if: 9
113	113
114	114	1. the generating station is land–based; 10
115	115
116	116	2. the capacity of the generating station does not exceed 70 11
117	117	megawatts; 12
118	118
119	119	3. the electricity that may be exported for sale from the 13
120	120	generating station to the electric system is sold only on the wholesale market pursuant to 14
121	121	an interconnection, operation, and maintenance agreement with the local electric company; 15
122	122
123	123	4. the Commission provides an opportunity for public 16
124	124	comment at a public hearing as provided in subsection (f) of this section; and 17
125	125
126	126	5. the generating station’s wind turbines are not located 18
127	127	within a distance from the Patuxent River Naval Air Station that is determined by 19
128	128	regulations adopted by the Commission in coordination with the Commander, Naval Air 20
129	129	Warfare Center Aircraft Division, provided that the distance requirement under the 21
130	130	regulation is: 22
131	131
132	132	A. not greater than is necessary to encompass an area in 23
133	133	which utility scale wind turbines could create Doppler radar interference for missions at 24
134	134	the Patuxent River Naval Air Station; 25
135	135
136	136	B. not greater than 46 miles, measured from location 26
137	137	38.29667N, 76.37668W; and 27
138	138
139	139	C. subject to modification if necessary to reflect changes in 28
140	140	missions or technology at the Patuxent River Naval Air Station or changes in wind energy 29
141	141	technology; or 30
142	142
143	143	(2) constructs a generating station if: 31
144	144
145	145	(i) the capacity of the generating station does not exceed 25 32
146	146	megawatts; 33 4 HOUSE BILL 569
147	147
148	148
149	149
150	150	(ii) the electricity that may be exported for sale from the generating 1
151	151	station to the electric system is sold only on the wholesale market pursuant to an 2
152	152	interconnection, operation, and maintenance agreement with the local electric company; 3
153	153	and 4
154	154
155	155	(iii) at least 10% of the electricity generated at the generating station 5
156	156	each year is consumed on–site. 6
157	157
158	158	(b) (1) The Commission shall require a person that is exempted from the 7
159	159	requirement to obtain a certificate of public convenience and necessity to obtain approval 8
160	160	from the Commission under this section before the person may construct a generating 9
161	161	station described in subsection (a) of this section. 10
162	162
163	163	(G) THE COMMISSION SHALL COND ITION APPROVAL OF AN EXEMPTION 11
164	164	FROM THE REQUIREMENT TO O BTAIN A CERTIFICATE OF PUBLIC CONVENIENC E AND 12
165	165	NECESSITY ON THE REQ UIREMENT THAT THE PE RSON CONSTRUCTING TH E 13
166	166	PROPOSED GENERATING STATION COMPLY WITH THE REQUIREMENTS OF § 7–207.3 14
167	167	OF THIS SUBTITLE, AS APPLICABLE. 15
168	168
169	169	7–207.3. 16
170	170
171	171	(A) (1) IN THIS SECTION THE FOLL OWING WORDS HAVE THE MEANINGS 17
172	172	INDICATED. 18
173	173
174	174	(2) (I) “COVERED PROJECT ” MEANS: 19
175	175
176	176	1. A GENERATION STATION WITH A CUMULATIVE 20
177	177	NAMEPLATE CAPACITY O F 2 MEGAWATTS OR MORE TH AT PRODUCES ENERGY F ROM 21
178	178	A TIER 1 RENEWABLE SOURCE , A TIER 2 RENEWAB LE SOURCE, OR NUCLEAR 22
179	179	ENERGY; OR 23
180	180
181	181	2. AN ENERGY STORAGE DE VICE WITH A CUMULATI VE 24
182	182	NAMEPLATE CAPACITY O F 2 MEGAWATTS OR MORE . 25
183	183
184	184	(II) “COVERED PROJECT ” DOES NOT INCLUDE : 26
185	185
186	186	1. AN OFF–SHORE WIND PROJECT U NDER § 7–704.1 OF 27
187	187	THIS TITLE; OR 28
188	188
189	189	2. AN ENERGY STORAGE PROJECT U NDER § 7–216 OF 29
190	190	THIS SUBTITLE. 30
191	191	HOUSE BILL 569 5
192	192
193	193
194	194	(3) (I) “ENERGY STORAGE DEVICE ” MEANS A RESOURCE CAP ABLE 1
195	195	OF ABSORBING ELECTRI CAL ENERGY , STORING IT FOR A PER IOD OF TIME, AND 2
196	196	DELIVERING THE ENERG Y FOR USE AT A LATER TIME AS NEEDED , REGARDLESS OF 3
197	197	WHERE THE RESOURCE IS LOCA TED ON THE ELECTRIC DISTRIBUTION SYSTEM . 4
198	198
199	199	(II) “ENERGY STORAGE DEVICE ” INCLUDES ALL TYPES O F 5
200	200	ELECTRIC STORAGE TEC HNOLOGIES, REGARDLESS OF THEIR SIZE, STORAGE 6
201	201	MEDIUM, OR OPERATIONAL PURPO SE. 7
202	202
203	203	(B) THIS SECTION APPLIES ONLY TO THE CONSTRUCTION OF A CO VERED 8
204	204	PROJECT. 9
205	205
206	206	(C) THE DEVELOPER OF A CO VERED PROJECT SHALL TAKE ALL 10
207	207	REASONABLE ACTIONS T O ENTER INTO A COMMU NITY BENEFITS AGREEM ENT WITH 11
208	208	A COMMUNITY –BASED ORGANIZATION O R COLLECTION OF COMM UNITY–BASED 12
209	209	ORGANIZATIONS REPRES ENTING THE C OMMUNITY AFFECTED BY THE PROJECT 13
210	210	THAT: 14
211	211
212	212	(1) DETAILS THE CONTRIBU TIONS THAT THE PROJE CT WILL BRING 15
213	213	TO THE COMMUNITY IN WHICH THE PROJECT WI LL BE LOCATED; 16
214	214
215	215	(2) DETAILS ACTIONS TO B E TAKEN TO MITIGATE ADVERSE 17
216	216	CONDITIONS CAUSED BY THE PROJECT; 18
217	217
218	218	(3) PROMOTES INCREASED O PPORTUNITIES FOR LOC AL BUSINESSES 19
219	219	AND SMALL, MINORITY, WOMEN–OWNED, AND VETERAN –OWNED BUSINESSES IN THE 20
220	220	ENERGY INDUSTRY ; 21
221	221
222	222	(4) PROMOTES SAFE COMPLE TION OF THE PROJECT BY ENSURING 22
223	223	THAT AT LEAST 80% OF THE CRAFT WORKERS ON THE PROJECT HA VE COMPLETED 23
224	224	AN OCCUPATIONAL SAFETY AND HEALTH ADMINISTRATION 10–HOUR OR 30–HOUR 24
225	225	COURSE; 25
226	226
227	227	(5) PROMOTES CAREER TRAI NING OPPORTUNITIES I N THE 26
228	228	CONSTRUCTION INDUSTR Y FOR LOCAL RESIDENT S, VETERANS, WOMEN, AND 27
229	229	MINORITIES; 28
230	230
231	231	(6) PROVIDES FOR BEST EF FORTS AND E FFECTIVE OUTREACH TO 29
232	232	OBTAIN, AS A GOAL, THE USE OF A WORKFOR CE INCLUDING MINORIT IES, TO THE 30
233	233	EXTENT PRACTICABLE , AS SUPPORTED BY A DI SPARITY STUDY; AND 31
234	234
235	235	(7) REFLECTS A 21ST–CENTURY LABOR –MANAGEMENT APPROACH 32
236	236	BASED ON COOPERATION , HARMONY, AND PARTNERSHIP . 33 6 HOUSE BILL 569
237	237
238	238
239	239
240	240	(D) THE DEVELOPER OF A CO VERED PROJECT SHALL ENSURE THAT 1
241	241	WORKERS ARE PAID NOT LESS THAN THE PREVAI LING WAGE RATE DETER MINED 2
242	242	UNDER TITLE 17, SUBTITLE 2 OF THE STATE FINANCE AND PROCUREMENT 3
243	243	ARTICLE UNLESS THE CO VERED PROJECT IS SUB JECT TO A PROJECT LA BOR 4
244	244	AGREEMENT THAT : 5
245	245
246	246	(1) BINDS ALL CONTRACTOR S AND SUBCONTRACTORS ON THE 6
247	247	COVERED PROJECT THRO UGH THE INCLUSION OF SPECIFICATIONS IN AL L 7
248	248	RELEVANT SOLICITATIO N PROVISIONS AND CON TRACT DOCUMENTS ; 8
249	249
250	250	(2) ALLOWS ALL CONTRACTO RS AND SUBCONTRACTOR S TO COMPETE 9
251	251	FOR CONTRACTS AND SUBCONT RACTS ON THE PROJECT WITHOUT REGARD TO 10
252	252	WHETHER THEY ARE OTH ERWISE PARTIES TO CO LLECTIVE BARGAINING 11
253	253	AGREEMENTS ; 12
254	254
255	255	(3) ESTABLISHES UNIFORM TERMS AND CONDITIONS OF 13
256	256	EMPLOYMENT FOR ALL C ONSTRUCTION LABOR EM PLOYED ON THE PROJEC TS; 14
257	257
258	258	(4) GUARANTEES AGAINST ST RIKES, LOCKOUTS, AND SIMILAR JOB 15
259	259	DISRUPTIONS; 16
260	260
261	261	(5) ESTABLISHES MUTUALLY BINDING PROCEDURES F OR RESOLVING 17
262	262	LABOR DISPUTES ; AND 18
263	263
264	264	(6) INCLUDES ANY OTHER P ROVISIONS NEGOTIATED BY THE PARTIES 19
265	265	TO PROMOTE SUCCESSFU L DELIVERY OF THE CO VERED PROJECT. 20
266	266
267	267	(E) (1) THE DEVELOPER OF A CO VERED PROJECT SHALL ENSURE THAT 21
268	268	EACH CONTRACTOR AND SUBCONTRACTOR INVOLV ED IN THE CONSTRUCTI ON OF 22
269	269	THE PROJECT COMPLETE S A CERTIFICATION TH AT THE CONTRACTOR OR 23
270	270	SUBCONTRACTOR : 24
271	271
272	272	(I) HAS THE NECESSARY RE SOURCES TO PERFORM T HE 25
273	273	PORTION OF THE COVER ED PROJECT TO WHICH THE CONTRACTOR OR 26
274	274	SUBCONTRACTOR IS ASS IGNED, INCLUDING THE NECESS ARY TECHNICAL , 27
275	275	FINANCIAL, AND PERSONNEL RESOUR CES; 28
276	276
277	277	(II) HAS ALL REQUIRED LIC ENSES, CERTIFICATIONS , OR 29
278	278	CREDENTIALS REQUIRED UNDER STATE OR LOCAL LAW ; 30
279	279
280	280	(III) FOR EACH CONSTRUCTIO N TRADE EMPLOYED ON THE 31
281	281	COVERED PROJECT , PARTICIPATES IN APPR ENTICESHIP TRAINING THROUGH AN 32 HOUSE BILL 569 7
282	282
283	283
284	284	APPRENTICESHIP PROGR AM REGISTERED WITH T HE MARYLAND DEPARTMENT OF 1
285	285	LABOR OR A FEDERALLY RECOGNIZED STATE APPRENTICESHIP AGENCY; 2
286	286
287	287	(IV) DURING THE IMMEDIATE LY PRECEDING 3 YEARS: 3
288	288
289	289	1. HAS NOT BEEN DEBARRE D BY ANY GOVERNMENT 4
290	290	AGENCY; 5
291	291
292	292	2. HAS NOT DEFAULTED ON ANY PROJECT; 6
293	293
294	294	3. HAS NOT HAD ANY LICE NSE, CERTIFICATION , OR 7
295	295	OTHER CREDENT IAL RELATING TO THE BUSINESS REVOKED OR SUSPENDED; AND 8
296	296
297	297	4. HAS NOT BEEN FOUND I N VIOLATION OF ANY L AW 9
298	298	APPLICABLE TO THE BU SINESS OF THE CONTRA CTOR OR SUBCONTRACTO R THAT 10
299	299	RESULTED IN THE PAYM ENT OF A FINE , BACK PAY DAMAGES , OR ANY OTHER 11
300	300	PENALTY IN THE A MOUNT OF $10,000 OR MORE; 12
301	301
302	302	(V) WILL PAY INDIVIDUALS EMPLOYED ON THE PROJ ECT NOT 13
303	303	LESS THAN THE APPLIC ABLE WAGE AND FRINGE BENEFIT RATES FOR TH E 14
304	304	CLASSIFICATION IN WH ICH EACH INDIVIDUAL IS EMPLOYED; AND 15
305	305
306	306	(VI) HAS NOT MISCLASSIFIE D AND WILL NOT MISCL ASSIFY 16
307	307	EMPLOYEES AS INDEPEN DENT CONTRACTORS . 17
308	308
309	309	(2) (I) THE DEVELOPER OF A CO VERED PROJECT SHALL SUBMIT 18
310	310	TO THE MARYLAND DEPARTMENT OF LABOR A CERTIFICATION OF COMPLIANCE 19
311	311	WITH THE REQUIREMENT S OF THIS SUBSECTION NOT LATER THAN 30 DAYS BEFORE 20
312	312	COMMENCEMENT OF C ONSTRUCTION OF THE P ROJECT. 21
313	313
314	314	(II) IF A COVERED PROJECT IS SUBJECT TO A PROJ ECT LABOR 22
315	315	AGREEMENT DESCRIBED IN SUBSECTION (D) OF THIS SECTION, THE DEVELOPER OF 23
316	316	THE COVERED PROJECT SHALL SUBMIT A COPY OF THE PROJECT LABOR 24
317	317	AGREEMENT WITH THE C ERTIFICATION O F COMPLIANCE . 25
318	318
319	319	(3) IF A CERTIFICATION CO NTAINS FALSE , MISLEADING, OR 26
320	320	MATERIALLY INACCURAT E INFORMATION , THE DEVELOPER , CONTRACTOR , OR 27
321	321	SUBCONTRACTOR THAT E XECUTED THE CERTIFIC ATION SHALL, AFTER NOTICE AND 28
322	322	OPPORTUNITY TO BE HE ARD, BE SUBJECT TO DEBARM ENT FROM ENTERING INTO A 29
323	323	CONTRACT WITH A PUBL IC BODY. 30
324	324	8 HOUSE BILL 569
325	325
326	326
327	327	(4) EACH CONTRACTOR AND S UBCONTRACTOR ON A CO VERED 1
328	328	PROJECT SHALL BE SUB JECT TO ALL REPORTIN G AND COMPLIANCE REQ UIREMENTS 2
329	329	OF THIS SECTION AND OTHER STATE LAW. 3
330	330
331	331	(5) A CONTRACTOR OR SUBCON TRACTOR THAT VIOLATES THIS 4
332	332	SUBSECTION SHALL BE SUBJECT TO PENALTIES ESTABLISHED BY THE MARYLAND 5
333	333	DEPARTMENT OF LABOR BY REGULATION . 6
334	334
335	335	(F) (1) THIS SUBSECTION DOES NOT APPLY TO A COVER ED PROJECT FOR 7
336	336	WHICH THERE IS A PRO JECT LABOR AGREEMENT DESCRIBED IN SUBSECT ION (D) OF 8
337	337	THIS SECTION. 9
338	338
339	339	(2) EACH DEVELOPER , CONTRACTOR , AND SUBCONTRACTOR SH ALL 10
340	340	MAINTAIN RECORDS REL ATING TO THE WAGES A ND HOURS WORKED BY E ACH 11
341	341	INDIVIDUAL PERFORMIN G THE WORK ON A COVE RED PROJECT , INCLUDING: 12
342	342
343	343	(I) A SCHEDULE OF THE OC CUPATION OR WORK 13
344	344	CLASSIFICATION OF EACH INDIVID UAL WORKING ON THE P ROJECT; AND 14
345	345
346	346	(II) A SCHEDULE OF THE WO RK HOURS THAT EACH I NDIVIDUAL 15
347	347	WORKING ON THE PROJE CT PERFORMED WITH SU FFICIENT DETAIL THAT THE 16
348	348	MARYLAND DEPARTMENT OF LABOR REQUIRES TO ENS URE THE PROPER 17
349	349	PAYMENTS OF WAGES WE RE MADE. 18
350	350
351	351	(3) THE RECORDS SHALL INC LUDE A STATEMENT SIG NED BY THE 19
352	352	DEVELOPER , CONTRACTOR , OR SUBCONTRACTOR THA T INDICATES: 20
353	353
354	354	(I) THE RECORDS ARE CORR ECT; 21
355	355
356	356	(II) THE RATE OF WAGES PA ID TO EACH INDIVIDUA L ARE NOT 22
357	357	LESS THAN THE PREVAI LING WAGE FOR THAT I NDIVIDUAL’S TRADE; 23
358	358
359	359	(III) THE AMOUNT OF WAGES PAID IS NOT LESS THA N THE 24
360	360	AMOUNT REQUIRED BY T HE CONTRACT TO BE PA ID; 25
361	361
362	362	(IV) THE DEVELOPER , CONTRACTOR , OR SUBCONTRACTOR HAS 26
363	363	COMPLIED WITH THE AP PLICABLE PROVISIONS OF THIS SECTION; AND 27
364	364
365	365	(V) THE DEVELOPER, CONTRACTOR , OR SUBCONTRACTOR DOE S 28
366	366	NOT RECEIVE KICKBACK S FROM AN EMPLOYEE O R EMPLOYEE WELFARE F UND. 29
367	367	HOUSE BILL 569 9
368	368
369	369
370	370	(4) THE PAYROLL FOR A COV ERED PROJECT SHALL B E CONSIDERED 1
371	371	A PUBLIC RECORD AND EVERY PERSON HAS THE RIGHT TO INSPECT AND COPY THE 2
372	372	RECORDS. 3
373	373
374	374	(G) THE MARYLAND DEPARTMENT OF LABOR SHALL DISTRIBUT E A LIST TO 4
375	375	ALL UNITS, DEPARTMENTS , AND POLITICAL SUBDIV ISIONS OF THE STATE 5
376	376	PROVIDING THE NAMES OF INDIVIDUALS OR FI RMS THAT THE MARYLAND 6
377	377	DEPARTMENT OF LABOR HAS FOUND TO HA VE: 7
378	378
379	379	(1) FAILED TO MEET THE REQUIREMENTS OF SUBS ECTIONS (C), (D), 8
380	380	(E), AND (F) OF THIS SECTION; 9
381	381
382	382	(2) BEEN DEBARRED BY FED ERAL OR STATE GOVERNMENT ; OR 10
383	383
384	384	(3) SUBMITTED FALSE , MISLEADING, OR MATERIALLY INACCU RATE 11
385	385	INFORMATION UNDER TH IS SECTION. 12
386	386
387	387	(H) THE SECRETARY OF LABOR SHALL ADO PT REGULATIONS 13
388	388	IMPLEMENTING SUBSECT IONS (C), (D), (E), AND (F) OF THIS SECTION. 14
389	389
390	390	SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect 15
391	391	October 1, 2022. 16
392	392