Maryland 2022 Regular Session

Maryland Senate Bill SB903 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 MATTER ADDE D TO EXISTING LAW .
4	4	[Brackets] indicate matter deleted from existing law.
5	5	sb0903
6	6
7	7	SENATE BILL 903
8	8	C5, M5 2lr1973
9	9	SB 549/21 – FIN CF 2lr1955
10	10	By: Senators Hershey and Edwards
11	11	Introduced and read first time: February 7, 2022
12	12	Assigned to: Finance
13	13
14	14	A BILL ENTITLED
15	15
16	16	AN ACT concerning 1
17	17
18	18	Renewable Energy Portfolio Standard – Qualifying Biomass and Thermal 2
19	19	Biomass Systems 3
20	20
21	21	FOR the purpose of altering the components of fuels that qualify a generating facility as a 4
22	22	Tier 1 renewable source under the renewable energy portfolio standard by altering 5
23	23	the definitions of “qualifying biomass” and “thermal biomass system”; and generally 6
24	24	relating to the renewable energy portfolio standard. 7
25	25
26	26	BY repealing and reenacting, without amendments, 8
27	27	Article – Natural Resources 9
28	28	Section 5–101(a) and (l) 10
29	29	Annotated Code of Maryland 11
30	30	(2018 Replacement Volume and 2021 Supplement) 12
31	31
32	32	BY repealing and reenacting, without amendments, 13
33	33	Article – Public Utilities 14
34	34	Section 7–701(a) and 7–704(d), (f)(1), and (i) 15
35	35	Annotated Code of Maryland 16
36	36	(2020 Replacement Volume and 2021 Supplement) 17
37	37
38	38	BY repealing and reenacting, with amendments, 18
39	39	Article – Public Utilities 19
40	40	Section 7–701(l) and (r) 20
41	41	Annotated Code of Maryland 21
42	42	(2020 Replacement Volume and 2021 Supplement) 22
43	43
44	44	SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 23
45	45	That the Laws of Maryland read as follows: 24
46	46
47	47	Article – Natural Resources 25
48	48	2 SENATE BILL 903
49	49
50	50
51	51	5–101. 1
52	52
53	53	(a) In this title the following words have the meanings indicated. 2
54	54
55	55	(l) “Silvicultural product” or “forest product” means any raw material yielded by 3
56	56	a forest, including: 4
57	57
58	58	(1) Timber; 5
59	59
60	60	(2) Timber products; and 6
61	61
62	62	(3) Any other forest materials, such as lumber, poles, pulpwood, firewood, 7
63	63	and pine straw. 8
64	64
65	65	Article – Public Utilities 9
66	66
67	67	7–701. 10
68	68
69	69	(a) In this subtitle the following words have the meanings indicated. 11
70	70
71	71	(l) (1) “Qualifying biomass” means a nonhazardous, organic material that is 12
72	72	available on a renewable or recurring basis, and is: 13
73	73
74	74	(i) waste material that is segregated from inorganic waste material 14
75	75	and is derived from sources including: 15
76	76
77	77	1. except for old growth timber, any of the following 16
78	78	forest–related resources: 17
79	79
80	80	A. [mill residue, except sawdust and wood shavings; 18
81	81
82	82	B. precommercial] soft wood thinning; 19
83	83
84	84	[C.] B. [slash] SILVICULTURAL PRODUC TS, AS DEFINED 20
85	85	IN § 5–101 OF THE NATURAL RESOURCES ARTICLE; 21
86	86
87	87	[D.] C. [brush] NATURAL WOOD WASTE AS DEFINED IN 22
88	88	COMAR 26.04.09.02; or 23
89	89
90	90	[E.] D. yard waste; 24
91	91
92	92	2. a pallet, crate, or dunnage; 25
93	93
94	94	3. agricultural and silvicultural sources, including tree 26
95	95	crops, vineyard materials, grain, legumes, sugar, and other crop by–products or residues; 27
96	96	or 28 SENATE BILL 903 3
97	97
98	98
99	99
100	100	4. gas produced from the anaerobic decomposition of animal 1
101	101	waste or poultry waste; or 2
102	102
103	103	(ii) a plant that is cultivated exclusively for purposes of being used 3
104	104	at a Tier 1 renewable source or a Tier 2 renewable source to produce electricity. 4
105	105
106	106	(2) “Qualifying biomass” includes biomass listed in paragraph (1) of this 5
107	107	subsection that is used for co–firing, subject to § 7–704(d) of this subtitle. 6
108	108
109	109	(3) “Qualifying biomass” does not include: 7
110	110
111	111	(i) unsegregated solid waste or postconsumer wastepaper; 8
112	112
113	113	(ii) black liquor, or any product derived from black liquor; or 9
114	114
115	115	(iii) an invasive exotic plant species. 10
116	116
117	117	(r) “Thermal biomass system” means a system that: 11
118	118
119	119	(1) uses AS FUEL: 12
120	120
121	121	(i) [primarily] animal manure, including poultry litter, and 13
122	122	associated bedding to generate thermal energy; [and] 14
123	123
124	124	(ii) [food waste or] qualifying biomass [for the remainder of the 15
125	125	feedstock]; OR 16
126	126
127	127	(III) FOOD WASTE; 17
128	128
129	129	(2) is used in the State; and 18
130	130
131	131	(3) complies with all applicable State and federal statutes and regulations, 19
132	132	as determined by the appropriate regulatory authority. 20
133	133
134	134	7–704. 21
135	135
136	136	(d) An electricity supplier shall receive credit toward meeting the renewable 22
137	137	energy portfolio standard for electricity derived from the biomass fraction of biomass 23
138	138	co–fired with other fuels. 24
139	139
140	140	(f) (1) In order to create a renewable energy credit, a Tier 1 renewable source 25
141	141	or Tier 2 renewable source must substantially comply with all applicable environmental 26
142	142	and administrative requirements, including air quality, water quality, solid waste, and 27
143	143	right–to–know provisions, permit conditions, and administrative orders. 28
144	144	4 SENATE BILL 903
145	145
146	146
147	147	(i) (1) Energy from a thermal biomass system is eligible for inclusion in 1
148	148	meeting the renewable energy portfolio standard. 2
149	149
150	150	(2) (i) A person that owns and operates a thermal biomass system that 3
151	151	uses anaerobic digestion is eligible to receive a renewable energy credit. 4
152	152
153	153	(ii) A person that owns and operates a thermal biomass system that 5
154	154	uses a thermochemical process is eligible to receive a renewable energy credit if the person 6
155	155	demonstrates to the Maryland Department of the Environment that the operation of the 7
156	156	thermal biomass system: 8
157	157
158	158	1. is not significantly contributing to local or regional air 9
159	159	quality impairments; and 10
160	160
161	161	2. will substantially decrease emissions of oxides of nitrogen 11
162	162	beyond that achieved by a direct burn combustion unit through the use of precombustion 12
163	163	techniques, combustion techniques, or postcombustion techniques. 13
164	164
165	165	(3) A person that is eligible to receive a renewable energy credit under 14
166	166	paragraph (2) of this subsection shall receive a renewable energy credit equal to the amount 15
167	167	of energy, converted from BTUs to kilowatt–hours, that is generated by the thermal 16
168	168	biomass system and used on site. 17
169	169
170	170	(4) The total amount of energy generated and consumed for a residential, 18
171	171	nonresidential, or commercial thermal biomass system shall be measured by an on–site 19
172	172	meter that meets the required performance standards established by the Commission. 20
173	173
174	174	(5) The Commission shall adopt regulations for the metering, verification, 21
175	175	and reporting of the output of thermal biomass systems. 22
176	176
177	177	SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall apply to all 23
178	178	renewable energy portfolio standard compliance years starting on or after January 1, 2022. 24
179	179
180	180	SECTION 3. AND BE IT FURTHER ENACTED, That this Act shall take effect 25
181	181	October 1, 2022. 26
182	182