EXPLANATION: CAPITALS INDICATE MATTER ADDED TO EXIS TING 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.
*hb0088*
HOUSE BILL 88
M5, C5 2lr1074
(PRE–FILED) CF SB 525
By: Delegate Charkoudian
Requested: October 29, 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 10, 2022
CHAPTER ______
AN ACT concerning 1
Public Utilities – Energy Electric Distribution System Planning and Required 2
Labor Standards 3
FOR the purpose of establishing the Distribution System Planning Workgroup to study 4
issues related to energy distribution planning and implementation establishing 5
certain State policy goals with regard to the State’s electric distribution system; 6
requiring the Public Service Commission to adopt regulations on or before a certain 7
date related to energy distribution planning and implementation; requiring the 8
Public Service Commission and the Maryland Energy Administration to coordinate 9
efforts with utilities to apply provide assistance and support to electric companies 10
for applying for and obtaining access to certain federal funds to meet the State’s 11
policy goals for the electric distribution grid system; requiring the Administration to 12
identify certain funding sources; requiring certain electric companies to report to the 13
Commission and the Administration on certain funding information; establishing 14
labor standards for contractors and subcontractors participating in certain projects 15
undertaken by investor–owned electric companies or gas and electric companies; and 16
generally relating to energy electric distribution system planning and labor 17
standards. 18
BY adding to 19
Article – Public Utilities 20
Section 7–801 through 7–805 7–804 to be under the new subtitle “Subtitle 8. Energy 21
Electric Distribution System Planning and Labor Standards” 22
Annotated Code of Maryland 23 2 HOUSE BILL 88
(2020 Replacement Volume and 2021 Supplement) 1
BY adding to 2
Article – Labor and Employment 3
Section 3–416 4
Annotated Code of Maryland 5
(2016 Replacement Volume and 2021 Supplement) 6
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 7
That the Laws of Maryland read as follows: 8
Article – Public Utilities 9
SUBTITLE 8. ENERGY ELECTRIC DISTRIBUTION SYSTEM PLANNING AND LABOR 10
STANDARDS. 11
7–801. 12
IN THIS SUBTITLE , “WORKGROUP ” MEANS THE DISTRIBUTION SYSTEM 13
PLANNING WORKGROUP . 14
7–802. 15
IT IS THE GOAL OF THE STATE THAT THE ELECTR IC DISTRIBUTION GRID 16
SYSTEM SUPPORT, IN A COST–EFFECTIVE MANNER , THE STATE’S POLICY GOALS 17
WITH REGARD TO : 18
(1) DECARBONIZATION AND GREENHOUSE GAS REDUC TION; 19
(2) RENEWABLE ENERGY ; 20
(3) EQUITY; 21
(4) FAMILY–SUSTAINING EMPLOYMEN T DECREASING DEPENDENC E 22
ON ELECTRICITY IMPOR TED FROM OTHER STATE S; AND 23
(5) (4) ACHIEVING ENERGY DISTRIBUTION RESILIE NCY, 24
EFFICIENCY, AND RELIABILITY IN A COST–EFFECTIVE MANNER . 25
7–803. 26
(A) THERE IS A DISTRIBUTION SYSTEM PLANNING WORKGROUP . 27
(B) THE WORKGROUP CONSISTS OF THE FOLLOWING MEMBER S: 28
HOUSE BILL 88 3
(1) THE SECRETARY OF THE ENVIRONMENT , OR THE SECRETARY’S 1
DESIGNEE; 2
(2) THE PEOPLE’S COUNSEL, OR THE PEOPLE’S COUNSEL’S 3
DESIGNEE; 4
(3) THE DIRECTOR OF THE MARYLAND ENERGY ADMINISTRATION , 5
OR THE DIRECTOR’S DESIGNEE; AND 6
(4) THE FOLLOWING MEMBER S, APPOINTED BY THE CHAIRMAN OF 7
THE COMMISSION: 8
(I) ONE REPRESENTATIVE O F EACH INVESTOR –OWNED 9
ELECTRIC COMPANY WIT H CUSTOMERS IN THE STATE; 10
(II) ONE REPRESENTATIVE O F RESIDENTIAL AND SM ALL 11
COMMERCIAL ELECTRIC CUSTOMERS ; 12
(III) ONE REPRESENTATIVE O F LOW–INCOME COMMUNITIES ; 13
(IV) ONE REPRESENTA TIVE OF MINORITY COM MUNITIES; 14
(V) ONE REPRESENTATIVE O F ENVIRONMENTAL ADVO CACY 15
GROUPS; 16
(VI) ONE REPRESENTATIVE O F ENVIRONMENTAL JUST ICE 17
GROUPS; 18
(VII) ONE REPRESENTATIVE O F THE BALTIMORE–DC METRO 19
BUILDING TRADES COUNCIL; 20
(VIII) ONE REPRESENTATIVE OF TH E MARYLAND STATE AND 21
DISTRICT OF COLUMBIA AFL–CIO; 22
(IX) ONE REPRESENTATIVE O F THE DISTRIBUTED EN ERGY 23
RESOURCE INDUSTRY ; 24
(X) ONE REPRESENTATIVE O F THE ELECTRIC VEHIC LE 25
INDUSTRY; 26
(XI) ONE INDIVIDUAL WITH EXPERTISE IN IMPLEMENTING 27
ENERGY DISTRIBUTION PLANNING; AND 28
(XII) ANY OTHER INDIVIDUAL S IDENTIFIED BY THE COMMISSION. 29
4 HOUSE BILL 88
(C) THE CHAIRMAN OF THE COMMISSION SHALL DESI GNATE THE CHAIR OF 1
THE WORKGROUP . 2
(D) THE COMMISSION SHALL PROV IDE STAFF FOR THE WORKGROUP . 3
(E) A MEMBER OF THE WORKGROUP : 4
(1) MAY NOT RECEIVE COMP ENSATION AS A MEMBER OF THE 5
WORKGROUP ; BUT 6
(2) IS ENTITLED TO REIMB URSEMENT FOR EXPENSE S UNDER THE 7
STANDARD STATE TRAVEL REGULATIONS, AS PROVIDED IN THE STATE BUDGET . 8
(F) THE WORKGROUP SHALL : 9
(1) STUDY AND MAKE RECOM MENDATIONS REGARDING ENERGY 10
DISTRIBUTION PLANNIN G PROCESSES AND IMPL EMENTATION THAT PROM OTE: 11
(I) DECARBONIZATION , INCLUDING HIGH LEVEL S OF 12
DISTRIBUTED ENERGY R ESOURCES AND ELECTRI C VEHICLES; 13
(II) GIVING PRIORITY TO V ULNERABLE COMMUNITIES IN THE 14
DEVELOPMENT OF DISTR IBUTED ENERGY RESOUR CES AND ELECTRIC VEH ICLE 15
INFRASTRUCTURE ; 16
(III) ENERGY EFFICIENCY AN D CONSERVATION ; 17
(IV) MEETING INCREASED LO AD REQUIREMENTS DUE TO THE 18
ELECTRIFICATION OF B UILDINGS AND TRANSPO RTATION; 19
(V) LABOR STANDARDS IN A LL ELEMENTS OF ELECT RIC GRID 20
MODERNIZATION ; 21
(VI) ELECTRIC GRID RESILI ENCY AND ADAPTATION ; 22
(VII) PEAK LOAD MANAGEMENT ; 23
(VIII) INTEGRATION OF VEHIC LES WITH THE ELECTRI C GRID AND 24
OTHER BIDIRECTIONAL POWER FLOWS FROM STO RAGE ASSETS; 25
(IX) EFFECTIVE USE OF DEM AND RESPONSE AND OTH ER 26
NONWIRE ALTERNATIVES ; 27
(X) TRANSPARENT STAKEHOL DER PARTICIPATION IN ONGOING 28
ENERGY DISTRIBUTION PLANNING PROCESSES ; AND 29 HOUSE BILL 88 5
(XI) COMPARISONS AMONG AL TERNATIVE APPROACHES , 1
INCLUDING NONWIRE AL TERNATIVES AND NONCA PITAL OPTIONS , INCLUDING 2
REPAIR, MAINTENANCE , AND OPERATION OF EXI STING RESOURCES IN A 3
COST–EFFECTIVE MANNER ; AND 4
(2) MAXIMIZE TRANSPARENC Y FOR STAKEHOLDER PA RTICIPATION, 5
INCLUDING PROVIDING STAKEHOLDER ACCESS T O NONCONFIDENTIAL UTILITY 6
INFORMATION . 7
(G) ON OR BEFORE JANUARY 1, 2023, THE WORKGROUP SHALL REPOR T ITS 8
FINDINGS AND RECOMME NDATIONS TO THE COMMISSION. 9
(H) AFTER SUBMITTING THE REPORT REQUIRED UNDE R SUBSECTION (G) 10
OF THIS SECTION , THE WORKGROUP SHALL CONTI NUE TO SERVE I N AN ONGOING 11
ADVISORY CAPACITY TO THE COMMISSION FOR ENERGY DISTRIBUTION SYSTEM 12
PLANNING. 13
7–804. 7–802. 14
(A) ON OR BEFORE DECEMBER 1, 2022 2023, AND EACH YEAR THEREA FTER, 15
THE COMMISSION SHALL SUBM IT A REPORT, IN ACCORDANCE WITH § 2–1257 OF THE 16
STATE GOVERNMENT ARTICLE, TO THE GENERAL ASSEMBLY WITH INFORMA TION 17
REGARDING THE CURREN T STATUS OF ELECTRIC DISTRIBUTION GRID SYSTEM 18
EVOLUTION, INCLUDING INFORMATIO N ADDRESSING THE TOPIC S OUTLINED IN 19
SUBSECTION (B) OF THIS SECTION. 20
(B) ON OR BEFORE JANUARY 1, 2024, WITH INPUT FROM THE WORKGROUP , 21
THE COMMISSION SHALL ADOP T REGULATIONS REGARD ING ENERGY ON ELECTRIC 22
DISTRIBUTION SYSTEM PLANNING PROCESSES A ND IMPLEMENTATION TH AT 23
PROMOTE, AS SPECIFIC GOALS , THE FOLLOWING : 24
(1) DECARBONIZATION MEASURES TO DECREASE GREENHOUSE GAS 25
EMISSIONS INCIDENT T O ELECTRIC DISTRIBUT ION, INCLUDING HIGH LEVEL S OF 26
DISTRIBUTED ENERGY R ESOURCES AND ELECTRI C VEHICLES; 27
(2) GIVING PRIORITY TO V ULNERABLE COMMUNITIE S IN THE 28
DEVELOPMENT OF DISTR IBUTED ENERGY RESOUR CES AND ELECTRIC VEH ICLE 29
INFRASTRUCTURE ; 30
(3) ENERGY EFFICIENCY AND CONSERVATION ; 31
(4) MEETING INCREASED LOAD DUE T O ELECTRIFICATION OF 32
BUILDINGS AND TRANSP ORTATION ANTICIPATED INCREASE S IN LOAD; 33 6 HOUSE BILL 88
(5) LABOR STANDARDS IN A LL ELEMENTS OF INCORPORATION OF 1
ENERGY STORAGE TECHN OLOGY AS APPROPRIATE AND PRUDENT TO : 2
(I) SUPPORT EFFICIENCY A ND RELIABILITY OF TH E ELECTRIC 3
DISTRIBUTION SYSTEM ; AND 4
(II) PROVIDE ADDITIONAL C APACITY TO ACCOMMODA TE 5
INCREASED DISTRIBUTE D RENEWABLE ELECTRIC ITY GENERATION IN CONNEC TION 6
WITH ELECTRIC DISTRIBUTION GRID SYSTEM MODERNIZATION ; 7
(6) EFFICIENT MANAGEMENT OF LOAD VARIABILITY ; 8
(6) (7) ELECTRIC DISTRIBUTION GRID SYSTEM RESILIENCY AND 9
ADAPTATION RELIABILITY; 10
(7) PEAK LOAD MANAGEMENT ; 11
(8) INTEGRATION OF VEHIC LES WITH THE ELECTRI C GRID AND 12
OTHER BIDIRECTIONAL POWER FLOWS FROM STORAGE ASSETS ; 13
(9) EFFECTIVE USE OF DEMAND RESPONSE AND OTHER NONWIRE 14
AND NONCAPITAL ALTERNATIVES ; 15
(10) INCREASED USE OF DIS TRIBUTED ENERGY RESO URCES, 16
INCLUDING ELECTRIC VEHICLES ; 17
(10) (11) TRANSPARENT STAKEHOL DER PARTICIPATION IN ONGOING 18
ENERGY ELECTRIC DISTRIBUTION SYSTEM PLANNING PROCESSES ; AND 19
(12) ANY OTHER ISSUES THE COMMISSION CONSIDERS APPROPRIATE . 20
(11) COMPARISONS AMONG AL TERNATIVE APPROACHES , INCLUDING 21
NONWIRE ALTERNATIVES AND NONCAPITAL OPTIO NS, INCLUDING REPAIR , 22
MAINTENANCE , AND OPERATION OF EXI STING RESOURCES IN A COST–EFFECTIVE 23
MANNER. 24
(C) THE REGULATIONS ADOPT ED UNDER SUBSECTION (B) OF THIS SECTION 25
SHALL: 26
(1) BE DEVELOPED WITH CO NSIDERATION OF THE STATE’S 27
GREENHOUSE REDUCTION GOALS; 28
HOUSE BILL 88 7
(2) ACCOUNT FOR BENEFITS THAT MAY NOT BE READ ILY 1
QUANTIFIABLE ; 2
(3) IDENTIFY LEAST REGRE TS INVESTMENTS ; 3
(4) ESTABLISH METRICS FO R ASSESSING BENEFITS ; 4
(5) UTILIZE A DISCOUNT R ATE THAT REFLECTS STATE REGULATORY 5
AND ENVIRONMENTAL GO ALS; 6
(6) ACCOUNT FOR INCREMEN TAL UTILITY OPERATIO NS AND 7
MAINTENANCE COSTS , INCREMENTAL UTILITY CAPITAL COSTS, AND INCREMENTAL 8
TRANSMISSION AND ENE RGY DISTRIBUTION COS TS; AND 9
(7) ACCOUNT FOR : 10
(I) REDUCTIONS IN OPERATION AND MAINTE NANCE COSTS , 11
GENERATION CAPACITY COSTS, ENERGY COSTS , TRANSMISSION AND ENE RGY 12
DISTRIBUTION COSTS A ND LOSSES, ANCILLARY SERVICES C OSTS, CUSTOMER 13
OUTAGES, AND ENVIRONMENTAL CO MPLIANCE COSTS ; AND 14
(II) INCREASES IN SYSTEM RELIABILITY, SAFETY, RESILIENCE, 15
DISTRIBUTED ENERGY R ESOURCE INTEGRATION , POWER QUALITY , CUSTOMER 16
SATISFACTION, CUSTOMER FLEXIBILITY AND CHOICE, AND OTHER ENVIRONMEN TAL 17
BENEFITS. 18
(D) IN RATE CASES , UTILITIES SHALL BEAR THE BURDEN OF 19
DEMONSTRATING COMPLI ANCE WITH THE COMMISSION’S REGULATIONS THROUG H 20
QUANTIFICATION OF BE NEFITS AND OBJECTIVE AND VERIFIABLE STAND ARDS. 21
7–803. 22
(E) (A) THE GENERAL ASSEMBLY STRONGLY ENC OURAGES THE 23
ELECTRIC COMPANIES O F THE STATE TO PURSUE DILIG ENTLY FEDERAL FUNDS TO 24
MEET THE STATE’S POLICY GOALS FOR THE ELECTR IC DISTRIBUTION SYST EM, 25
INCLUDING FUNDS MADE AVAILABLE UNDER §§ 40101, 40103, AND 40107 OF THE 26
FEDERAL INFRASTRUCTURE INVESTMENT AND JOBS ACT. 27
(B) THE COMMISSION AND THE MARYLAND ENERGY ADMINISTRATION 28
SHALL COORDINATE EFFORTS W ITH UTILITIES TO APPLY PROVIDE ASSISTANCE A ND 29
SUPPORT TO ELECTRIC COMPANIES FOR APPLYI NG FOR AND OBTAINING ACCESS TO 30
FEDERAL AND OTHER AVAILABLE FUNDS, INCLUDING THOSE MADE AVAILABLE 31
UNDER § 40101 OF THE FEDERAL INFRASTRUCTURE INVESTMENT AND JOBS ACT, 32 8 HOUSE BILL 88
TO MEET THE STATE’S POLICY GOALS FOR THE ELECTR IC DISTRIBUTION GRID TO 1
MEET THE STATE’S POLICY GOALS FOR T HE ELECTRIC DISTRIBU TION SYSTEM. 2
(C) THE MARYLAND ENERGY ADMINISTRATION SHALL IDENTIFY FUNDING 3
SOURCES THAT MAY BE AVAILABLE TO ELECTRI C COMPANIES TO IMPLE MENT THE 4
STATE’S POLICY GOALS UNDER § 7–802 OF THIS SUBTITLE , INCLUDING FUNDING 5
FOR: 6
(1) INCREASING THE EFFIC IENCY OF ELECTRIC DI STRIBUTION 7
SYSTEMS, INCLUDING THROUGH IN STALLATION AND INTEG RATION OF ENERGY 8
STORAGE DEVICES AND OPERATIONAL CHANGES AND UPGRADES; 9
(2) GRID HARDENING ACTIV ITIES TO REDUCE THE OCCURRENCE OF 10
OR CONSEQUENCES OF E VENTS THAT DISRUPT O PERATIONS OF THE ELE CTRIC 11
DISTRIBUTION SYSTEM DUE TO EXTREME WEATH ER OR NATURAL DISAST ERS; 12
(3) OTHER DISTRIBUTION S YSTEM–RELATED UPGRADE ACTI VITIES 13
AVAILABLE FOR FUNDIN G UNDER § 40101, § 40103, OR § 40107 OF THE FEDERAL 14
INFRASTRUCTURE INVESTMENT AND JOBS ACT; AND 15
(4) OTHER SPECIFIC ACTIV ITIES THAT THE COMMISSION IDENTIFIES . 16
(D) AS NEEDED TO PROMOTE THE STATE’S POLICY GOALS UNDER § 7–802 17
OF THIS SUBTITLE, THE COMMISSION: 18
(1) SHALL REQUIRE EACH E LECTRIC COMPANY TO R EPORT TO THE 19
COMMISSION AND THE MARYLAND ENERGY ADMINISTRATION ON : 20
(I) THE FUNDING FOR WHIC H THE ELECTRIC COMPA NY HAS 21
APPLIED; 22
(II) THE PURPOSES FOR WHI CH THE FUNDING IS IN TENDED TO 23
BE USED; 24
(III) THE STATUS OF THE FU NDING APPLICATIONS ; AND 25
(IV) CONDITIONS THAT MUST BE MET TO OBTAIN THE FUNDING; 26
AND 27
(2) MAY ADOPT REGULATION S OR ISSUE ORDERS TH AT REQUIRE 28
ELECTRIC COMPANIES T O APPLY FOR FEDERAL AND OTHER AVAILABLE FUNDS IN A 29
TIMELY MANNER . 30
7–804. 31 HOUSE BILL 88 9
ON OR BEFORE JULY 1, 2025, THE COMMISSION SHALL ADOP T REGULATIONS 1
OR ISSUE ORDERS TO I MPLEMENT SPECIFIC PO LICIES FOR ELECTRIC DISTRIBUTION 2
SYSTEM PLANNING AND IMPROVEMENTS IN ORDE R TO PROMOTE THE STATE’S 3
POLICY GOALS UND ER § 7–802 OF THIS SUBTITLE. 4
7–805. 5
Article – Labor and Employment 6
3–416. 7
(A) THIS SECTION APPLIES : 8
(1) TO A PROJECT UNDERTA KEN BY AN INVESTOR –OWNED ELECTRIC 9
COMPANY OR GAS AND E LECTRIC COMPANY INVOLVING THAT: 10
(I) INVOLVES THE CONSTRUCTION , RECONSTRUCTION , 11
INSTALLATION, DEMOLITION, RESTORATION , OR ALTERATION OF ANY ELECTRIC 12
INFRASTRUCTURE OF TH E COMPANY , AND ANY RELATED TRAF FIC CONTROL 13
ACTIVITIES; AND 14
(II) IS FUNDED BY FEDERAL FUNDS TO MEET THE STATE’S 15
POLICY GOALS FOR THE ELECTRIC DISTRI BUTION SYSTEM UNDER TITLE 7, 16
SUBTITLE 8 OF THE PUBLIC UTILITIES ARTICLE, INCLUDING FUNDS MADE 17
AVAILABLE UNDER § 40101, § 40103, OR § 40107 OF THE FEDERAL 18
INFRASTRUCTURE INVESTMENT AND JOBS ACT; AND 19
(2) ONLY TO THE PORTION OF THE PROJECT SUPPO RTED BY THE 20
FEDERAL FUNDS . 21
(B) AN INVESTOR–OWNED ELECTRIC COMPA NY OR GAS AND ELECTR IC 22
COMPANY SHALL REQUIR E A CONTRACTOR OR SU BCONTRACTOR ON A PRO JECT 23
DESCRIBED IN SUBSECT ION (A) OF THIS SECTION TO : 24
(1) PAY THE AREA PREVAIL ING WAGE FOR EACH TR ADE EMPLOYED , 25
INCLUDING WAGES AND FRINGE BENEFITS ; 26
(2) OFFER HEALTH CARE AN D RETIREMENT BENEFIT S TO THE 27
EMPLOYEES WORKING ON THE PROJECT; 28
(3) PARTICIPATE IN AN AP PRENTICESHIP PROGRAM REGISTERED 29
WITH THE STATE FOR EACH TRADE EMPLOYED ON THE PROJ ECT; 30
10 HOUSE BILL 88
(4) ESTABLISH AND EXECUTE A PLAN FOR OUTREACH , RECRUITMENT , 1
AND RETENTION OF STATE RESIDENTS TO PE RFORM WORK ON THE PR OJECT, WITH 2
AN ASPIRATIONAL GOAL OF 25% OF TOTAL WORK HOURS PERFORMED BY 3
MARYLAND RESIDENTS , INCLUDING RESIDENTS WHO ARE: 4
(I) RETURNING CITIZENS ; 5
(II) WOMEN; 6
(III) MINORITY INDIVIDUALS ; OR 7
(IV) VETERANS; 8
(5) HAVE BEEN IN COMPLIA NCE WITH FEDERAL AND STATE WAGE 9
AND HOUR LAWS FOR TH E PREVIOUS 3 YEARS; 10
(6) BE SUBJECT TO ALL STATE REPORTING AND C OMPLIANCE 11
REQUIREMENTS ; AND 12
(7) MAINTAIN ALL APPROPRI ATE LICENSES IN GOOD STANDING. 13
SECTION 2. AND BE IT FURTHER ENACTED, That on or before December 31, 14
2022, the Public Service Commission shall provide an interim report on the status of 15
matters required to be reported under § 7–802 of the Public Utilities Article, as enacted by 16
this Act, to the House Economic Matters Committee and the Senate Finance Committee, 17
in accordance with § 2–1257 of the State Government Article. 18
SECTION 3. AND BE IT FURTHER ENACTED, That this Act shall take ef fect 19
October July 1, 2022. 20
Approved:
________________________________________________________________________________
Governor.
________________________________________________________________________________
Speaker of the House of Delegates.
________________________________________________________________________________
President of the Senate.