EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
[Brackets] indicate matter deleted from existing law.
*hb0088*
HOUSE BILL 88
M5, C5 2lr1074
(PRE–FILED) CF 2lr1075
By: Delegate Charkoudian
Requested: October 29, 2021
Introduced and read first time: January 12, 2022
Assigned to: Economic Matters
A BILL ENTITLED
AN ACT concerning 1
Public Utilities – Energy Distribution Planning and Required Labor Standards 2
FOR the purpose of establishing the Distribution System Planning Workgroup to study 3
issues related to energy distribution planning and implementation; requiring the 4
Public Service Commission to adopt regulations on or before a certain date related 5
to energy distribution planning and implementation; requiring the Commission and 6
the Maryland Energy Administration to coordinate efforts with utilities to apply for 7
and access certain federal funds to meet the State’s policy goals for the electric 8
distribution grid; establishing labor standards for contractors and subcontractors 9
participating in projects undertaken by investor–owned electric companies or gas 10
and electric companies; and generally relating to energy distribution planning and 11
labor standards. 12
BY adding to 13
Article – Public Utilities 14
Section 7–801 through 7–805 to be under the new subtitle “Subtitle 8. Energy 15
Distribution Planning and Labor Standards” 16
Annotated Code of Maryland 17
(2020 Replacement Volume and 2021 Supplement) 18
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 19
That the Laws of Maryland read as follows: 20
Article – Public Utilities 21
SUBTITLE 8. ENERGY DISTRIBUTION PLANNING AND LABOR STANDARDS. 22
7–801. 23
2 HOUSE BILL 88
IN THIS SUBTITLE , “WORKGROUP ” MEANS THE DISTRIBUTION SYSTEM 1
PLANNING WORKGROUP . 2
7–802. 3
IT IS THE GOAL OF THE STATE THAT THE ELECTR IC DISTRIBUTION GRID 4
SUPPORT THE STATE’S POLICY GOALS WITH REGARD TO: 5
(1) DECARBONIZATION AND GREENHOUSE GAS REDUCTION; 6
(2) RENEWABLE ENERGY ; 7
(3) EQUITY; 8
(4) FAMILY–SUSTAINING EMPLOYMEN T; AND 9
(5) ACHIEVING ENERGY DIS TRIBUTION RESILIENCY AND RELIABILITY 10
IN A COST–EFFECTIVE MANNER . 11
7–803. 12
(A) THERE IS A DISTRIBUTION SYSTEM PLANNING WORKGROUP . 13
(B) THE WORKGROUP CONSISTS OF THE FOLL OWING MEMBERS : 14
(1) THE SECRETARY OF THE ENVIRONMENT , OR THE SECRETARY’S 15
DESIGNEE; 16
(2) THE PEOPLE’S COUNSEL, OR THE PEOPLE’S COUNSEL’S 17
DESIGNEE; 18
(3) THE DIRECTOR OF THE MARYLAND ENERGY ADMINISTRATION , 19
OR THE DIRECTOR’S DESIGNEE; AND 20
(4) THE FOLLOWING MEMBER S, APPOINTED BY THE CHAIRMAN OF 21
THE COMMISSION: 22
(I) ONE REPRESENTATIVE OF EA CH INVESTOR –OWNED 23
ELECTRIC COMPANY WITH CUSTOMERS IN TH E STATE; 24
(II) ONE REPRESENTATIVE OF RE SIDENTIAL AND SMALL 25
COMMERCIAL ELECTRIC CUSTOMERS ; 26
HOUSE BILL 88 3
(III) ONE REPRESENTATIVE OF LO W–INCOME COMMUNITIES ; 1
(IV) ONE REPRESENTATIVE OF MI NORITY COMMUNITIES ; 2
(V) ONE REPRESENTATIVE OF ENVIRONMENTAL ADVOCAC Y 3
GROUPS; 4
(VI) ONE REPRESENTATIVE OF ENVIRONMENTAL JUSTICE 5
GROUPS; 6
(VII) ONE REPRESENTATIVE OF TH E BALTIMORE–DC METRO 7
BUILDING TRADES COUNCIL; 8
(VIII) ONE REPRESENTATIVE OF THE MARYLAND STATE AND 9
DISTRICT OF COLUMBIA AFL–CIO; 10
(IX) ONE REPRESENTATIVE OF THE DISTRIBUTED ENERGY 11
RESOURCE INDUSTRY; 12
(X) ONE REPRESENTATIVE OF THE ELECTRIC VEHI CLE 13
INDUSTRY; 14
(XI) ONE INDIVIDUAL WITH EXPERTISE IN IM PLEMENTING 15
ENERGY DISTRIBUTION PLANNIN G; AND 16
(XII) ANY OTHER INDIVIDUALS ID ENTIFIED BY THE COMMISSION. 17
(C) THE CHAIRMAN OF THE COMMISSION SHALL DESIGNATE THE CHAIR OF 18
THE WORKGROUP . 19
(D) THE COMMISSION SHALL PROVIDE STAFF FOR THE WORKGROUP . 20
(E) A MEMBER OF THE WORKGROUP : 21
(1) MAY NOT RECEIVE COMP ENSATION AS A MEMBER OF THE 22
WORKGROUP ; BUT 23
(2) IS ENTITLED TO REIMB URSEMENT FOR EXPENSE S UNDER THE 24
STANDARD STATE TRAVEL REGULATIONS, AS PROVIDED IN THE STATE BUDGET . 25
(F) THE WORKGROUP SHALL: 26
(1) STUDY AND MAKE RECOMMENDAT IONS REGARDING ENERG Y 27 4 HOUSE BILL 88
DISTRIBUTION PLANNIN G PROCESSES AND IMPL EMENTATION THAT PROM OTE: 1
(I) DECARBONIZATION , INCLUDING HIGH LEVEL S OF 2
DISTRIBUTED ENERGY R ESOURCES AND ELECTRIC VEHICLES; 3
(II) GIVING PRIORITY TO VULNERABLE COMMUNITI ES IN THE 4
DEVELOPMENT OF DISTRIBUTED ENERGY R ESOURCES AND ELECTRI C VEHICLE 5
INFRASTRUCTURE ; 6
(III) ENERGY EFFICIENCY AND CONSERVATION ; 7
(IV) MEETING INCREASED LO AD REQUIREMENTS DUE TO THE 8
ELECTRIFICATION OF BUILDI NGS AND TRANSPORTATI ON; 9
(V) LABOR STANDARDS IN A LL ELEMENTS OF ELECTRIC GRID 10
MODERNIZATION ; 11
(VI) ELECTRIC GRID RESILIENCY AND ADAPT ATION; 12
(VII) PEAK LOAD MANAGEMENT ; 13
(VIII) INTEGRATION OF VEHIC LES WITH THE ELECTRIC GRID AND 14
OTHER BIDIRECTIONAL POWER FLOWS FROM STO RAGE ASSETS; 15
(IX) EFFECTIVE USE OF DEM AND RESPONSE AND OTH ER 16
NONWIRE ALTERNATIVES ; 17
(X) TRANSPARENT STAKEHOL DER PARTICIPATION IN ONGOING 18
ENERGY DISTRIBUTION PLANNIN G PROCESSES; AND 19
(XI) COMPARISONS AMONG ALTERNATIVE AP PROACHES, 20
INCLUDING NONWIRE AL TERNATIVES AND NONCA PITAL OPTIONS , INCLUDING 21
REPAIR, MAINTENANCE , AND OPERATION OF EXISTING RESOURCE S IN A 22
COST–EFFECTIVE MANNER ; AND 23
(2) MAXIMIZE TRANSPARENC Y FOR STAKEHOLDER PA RTICIPATION, 24
INCLUDING PROVIDING STAKEHOLDER ACCESS T O NONCONFIDENTIAL UT ILITY 25
INFORMATION . 26
(G) ON OR BEFORE JANUARY 1, 2023, THE WORKGROUP SHALL REPORT ITS 27
FINDINGS AND RECOMME NDATIONS TO THE COMMISSION. 28
(H) AFTER SUBMITTING THE REPORT REQUIRED UNDER SUBSECTION (G) 29 HOUSE BILL 88 5
OF THIS SECTION , THE WORKGROUP SHALL CONTINUE TO SERVE IN AN ONGOING 1
ADVISORY CAPACITY TO THE COMMISSION FOR ENERGY DISTRIBUTION SYSTEM 2
PLANNING. 3
7–804. 4
(A) ON OR BEFORE DECEMBER 1, 2022, AND EACH YEAR THEREAFTER , THE 5
COMMISSION SHALL SUBM IT A REPORT, IN ACCORDANCE WITH § 2–1257 OF THE 6
STATE GOVERNMENT ARTICLE, TO THE GENERAL ASSEMBLY WITH INFORMA TION 7
REGARDING THE CURRENT STATUS O F ELECTRIC DISTRIBUTION GRID EV OLUTION, 8
INCLUDING INFORMATIO N ADDRESSING THE TOPICS OUTLINED IN SUBSECTI ON (B) 9
OF THIS SECTION. 10
(B) ON OR BEFORE JANUARY 1, 2024, WITH INPUT FROM THE WORKGROUP , 11
THE COMMISSION SHALL ADOP T REGULATIONS REGARD ING ENERGY DISTRIBUTION 12
PLANNING PROCESSES A ND IMPLEMENTATION TH AT PROMOTE: 13
(1) DECARBONIZATION , INCLUDING HIGH LEVEL S OF DISTRIBUTED 14
ENERGY RESOURCES AND ELECTRIC VEHICLES ; 15
(2) GIVING PRIORITY TO VULNERABLE COMMUNITI ES IN THE 16
DEVELOPMENT OF DISTR IBUTED ENERGY RESOUR CES AND ELECTRIC VEH ICLE 17
INFRASTRUCTURE ; 18
(3) ENERGY EFFICIENCY AND CONSERVATION ; 19
(4) MEETING INCREASED LO AD DUE TO ELECTRIFIC ATION OF 20
BUILDINGS AND TRANSP ORTATION; 21
(5) LABOR STANDARDS IN A LL ELEMENTS OF ELECT RIC GRID 22
MODERNIZATION ; 23
(6) ELECTRIC GRID RESILIENCY AND AD APTATION; 24
(7) PEAK LOAD MANAGEMENT ; 25
(8) INTEGRATION OF VEHIC LES WITH THE ELECTRIC GRID AN D 26
OTHER BIDIRECTIONAL POWER FLOWS FROM STO RAGE ASSETS; 27
(9) EFFECTIVE USE OF DEM AND RESPONSE AND OTH ER NONWIRE 28
ALTERNATIVES ; 29
(10) TRANSPARENT STAKEHOL DER PARTICIPATION IN ONGOING 30 6 HOUSE BILL 88
ENERGY DISTRIBUTION PLANNING PROCESSES ; AND 1
(11) COMPARISONS AMONG AL TERNATIVE APPROACHES , INCLUDING 2
NONWIRE ALTERNATIVES AND NONCAPITAL OPTIO NS, INCLUDING REPAIR , 3
MAINTENANCE , AND OPERATION OF EXI STING RESOURCES IN A COST–EFFECTIVE 4
MANNER. 5
(C) THE REGULATIONS ADOPT ED UNDER SUBSECTION (B) OF THIS SECTION 6
SHALL: 7
(1) BE DEVELOPED WITH CO NSIDERATION OF THE STATE’S 8
GREENHOUSE REDUCTION GOALS ; 9
(2) ACCOUNT FOR BENEFITS THAT MAY NOT BE READ ILY 10
QUANTIFIABLE ; 11
(3) IDENTIFY LEAST REGRETS INVESTMENTS ; 12
(4) ESTABLISH METRICS FOR ASSESSIN G BENEFITS; 13
(5) UTILIZE A DISCOUNT R ATE THAT REFLECTS STATE REGULATORY 14
AND ENVIRONMENTAL GO ALS; 15
(6) ACCOUNT FOR INCREMENTAL UTILITY OP ERATIONS AND 16
MAINTENANCE COSTS , INCREMENTAL UTILITY CAPITAL COSTS, AND INCREMENTAL 17
TRANSMISSION AND ENERGY DISTRIBUTION COSTS ; AND 18
(7) ACCOUNT FOR : 19
(I) REDUCTIONS IN OPERATION AND MAINTE NANCE COSTS, 20
GENERATION CAPACITY COSTS, ENERGY COSTS, TRANSMISSION AND ENERGY 21
DISTRIBUTION COSTS AND LOSSES, ANCILLARY SERVICES C OSTS, CUSTOMER 22
OUTAGES, AND ENVIRONMENT AL COMPLIANCE COSTS ; AND 23
(II) INCREASES IN SYSTEM RELIABILIT Y, SAFETY, RESILIENCE, 24
DISTRIBUTED ENERGY R ESOURCE INTEGRATION , POWER QUALITY , CUSTOMER 25
SATISFACTION, CUSTOMER FLEXIBILITY AND CHOICE, AND OTHER ENVIRONMEN TAL 26
BENEFITS. 27
(D) IN RATE CASES , UTILITIES SHALL BEAR THE BURDEN OF 28
DEMONSTRATING COMPLI ANCE WITH THE COMMISSION’S REGULATIONS THROUGH 29
QUANTIFICATION OF BENEFITS AND OBJE CTIVE AND VERIFIABLE STANDARDS. 30
HOUSE BILL 88 7
(E) THE COMMISSION AND THE MARYLAND ENERGY ADMINISTRATION 1
SHALL COORDINATE EFF ORTS WITH UTILITIES TO APPLY FOR AND ACC ESS FEDERAL 2
FUNDS, INCLUDING THOSE MADE AVAIL ABLE UNDER § 40101 OF THE FEDERAL 3
INFRASTRUCTURE INVESTMENT AND JOBS ACT, TO MEET THE STATE’S POLICY 4
GOALS FOR THE ELECTRIC DISTRIBUTION GRID . 5
7–805. 6
(A) THIS SECTION APPLIES TO A PROJECT UNDERTAKEN BY AN 7
INVESTOR–OWNED ELECTRIC COMPA NY OR GAS AND ELECTR IC COMPANY 8
INVOLVING THE CONSTRUCTION , RECONSTRUCTION , INSTALLATION, DEMOLITION, 9
RESTORATION , OR ALTERATION OF ANY ELECTRIC INFRASTRUCT URE OF THE 10
COMPANY, AND ANY RELATED TRAF FIC CONTROL ACTIVITI ES. 11
(B) AN INVESTOR–OWNED ELECTRIC COMPA NY OR GAS AND ELECTR IC 12
COMPANY SHALL REQUIR E A CONTRACTOR OR SUBC ONTRACTOR ON A PROJE CT 13
DESCRIBED IN SUBSECT ION (A) OF THIS SECTION TO : 14
(1) PAY THE AREA PREVAILI NG WAGE FOR EACH TRA DE EMPLOYED, 15
INCLUDING WAGES AND FRINGE BENEFITS ; 16
(2) OFFER HEALTH CARE AN D RETIREMENT BENEFIT S TO THE 17
EMPLOYEES WORKING ON THE PROJE CT; 18
(3) PARTICIPATE IN AN AP PRENTICESHIP PROGRAM REGISTERED 19
WITH THE STATE FOR EACH TRADE EMPLOYED ON THE PROJ ECT; 20
(4) ESTABLISH AND EXECUT E A PLAN FOR OUTREAC H, RECRUITMENT , 21
AND RETENTION OF STATE RESIDENTS TO PERFORM WORK ON THE PROJECT , WITH 22
AN ASPIRATIONAL GOAL OF 25% OF TOTAL WORK HOURS PERFORMED BY 23
MARYLAND RESIDENTS , INCLUDING RESIDENTS WHO ARE: 24
(I) RETURNING CITIZENS ; 25
(II) WOMEN; 26
(III) MINORITY INDIVIDUALS ; OR 27
(IV) VETERANS; 28
(5) HAVE BEEN IN COMPLIANCE WITH FEDERAL AND STATE WAGE 29
AND HOUR LAWS FOR THE PREVIOUS 3 YEARS; 30
8 HOUSE BILL 88
(6) BE SUBJECT TO ALL STATE REPORTING AND C OMPLIANCE 1
REQUIREMENTS ; AND 2
(7) MAINTAIN ALL APPROPRIATE LICENSE S IN GOOD STANDING . 3
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect 4
October 1, 2022. 5