EXPLANATION: CAPITALS INDICATE MATTER ADDE D TO EXISTING LAW .
[Brackets] indicate matter deleted from existing law.
*sb0903*
SENATE BILL 903
C5, M5 2lr1973
SB 549/21 – FIN CF 2lr1955
By: Senators Hershey and Edwards
Introduced and read first time: February 7, 2022
Assigned to: Finance
A BILL ENTITLED
AN ACT concerning 1
Renewable Energy Portfolio Standard – Qualifying Biomass and Thermal 2
Biomass Systems 3
FOR the purpose of altering the components of fuels that qualify a generating facility as a 4
Tier 1 renewable source under the renewable energy portfolio standard by altering 5
the definitions of “qualifying biomass” and “thermal biomass system”; and generally 6
relating to the renewable energy portfolio standard. 7
BY repealing and reenacting, without amendments, 8
Article – Natural Resources 9
Section 5–101(a) and (l) 10
Annotated Code of Maryland 11
(2018 Replacement Volume and 2021 Supplement) 12
BY repealing and reenacting, without amendments, 13
Article – Public Utilities 14
Section 7–701(a) and 7–704(d), (f)(1), and (i) 15
Annotated Code of Maryland 16
(2020 Replacement Volume and 2021 Supplement) 17
BY repealing and reenacting, with amendments, 18
Article – Public Utilities 19
Section 7–701(l) and (r) 20
Annotated Code of Maryland 21
(2020 Replacement Volume and 2021 Supplement) 22
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 23
That the Laws of Maryland read as follows: 24
Article – Natural Resources 25
2 SENATE BILL 903
5–101. 1
(a) In this title the following words have the meanings indicated. 2
(l) “Silvicultural product” or “forest product” means any raw material yielded by 3
a forest, including: 4
(1) Timber; 5
(2) Timber products; and 6
(3) Any other forest materials, such as lumber, poles, pulpwood, firewood, 7
and pine straw. 8
Article – Public Utilities 9
7–701. 10
(a) In this subtitle the following words have the meanings indicated. 11
(l) (1) “Qualifying biomass” means a nonhazardous, organic material that is 12
available on a renewable or recurring basis, and is: 13
(i) waste material that is segregated from inorganic waste material 14
and is derived from sources including: 15
1. except for old growth timber, any of the following 16
forest–related resources: 17
A. [mill residue, except sawdust and wood shavings; 18
B. precommercial] soft wood thinning; 19
[C.] B. [slash] SILVICULTURAL PRODUC TS, AS DEFINED 20
IN § 5–101 OF THE NATURAL RESOURCES ARTICLE; 21
[D.] C. [brush] NATURAL WOOD WASTE AS DEFINED IN 22
COMAR 26.04.09.02; or 23
[E.] D. yard waste; 24
2. a pallet, crate, or dunnage; 25
3. agricultural and silvicultural sources, including tree 26
crops, vineyard materials, grain, legumes, sugar, and other crop by–products or residues; 27
or 28 SENATE BILL 903 3
4. gas produced from the anaerobic decomposition of animal 1
waste or poultry waste; or 2
(ii) a plant that is cultivated exclusively for purposes of being used 3
at a Tier 1 renewable source or a Tier 2 renewable source to produce electricity. 4
(2) “Qualifying biomass” includes biomass listed in paragraph (1) of this 5
subsection that is used for co–firing, subject to § 7–704(d) of this subtitle. 6
(3) “Qualifying biomass” does not include: 7
(i) unsegregated solid waste or postconsumer wastepaper; 8
(ii) black liquor, or any product derived from black liquor; or 9
(iii) an invasive exotic plant species. 10
(r) “Thermal biomass system” means a system that: 11
(1) uses AS FUEL: 12
(i) [primarily] animal manure, including poultry litter, and 13
associated bedding to generate thermal energy; [and] 14
(ii) [food waste or] qualifying biomass [for the remainder of the 15
feedstock]; OR 16
(III) FOOD WASTE; 17
(2) is used in the State; and 18
(3) complies with all applicable State and federal statutes and regulations, 19
as determined by the appropriate regulatory authority. 20
7–704. 21
(d) An electricity supplier shall receive credit toward meeting the renewable 22
energy portfolio standard for electricity derived from the biomass fraction of biomass 23
co–fired with other fuels. 24
(f) (1) In order to create a renewable energy credit, a Tier 1 renewable source 25
or Tier 2 renewable source must substantially comply with all applicable environmental 26
and administrative requirements, including air quality, water quality, solid waste, and 27
right–to–know provisions, permit conditions, and administrative orders. 28
4 SENATE BILL 903
(i) (1) Energy from a thermal biomass system is eligible for inclusion in 1
meeting the renewable energy portfolio standard. 2
(2) (i) A person that owns and operates a thermal biomass system that 3
uses anaerobic digestion is eligible to receive a renewable energy credit. 4
(ii) A person that owns and operates a thermal biomass system that 5
uses a thermochemical process is eligible to receive a renewable energy credit if the person 6
demonstrates to the Maryland Department of the Environment that the operation of the 7
thermal biomass system: 8
1. is not significantly contributing to local or regional air 9
quality impairments; and 10
2. will substantially decrease emissions of oxides of nitrogen 11
beyond that achieved by a direct burn combustion unit through the use of precombustion 12
techniques, combustion techniques, or postcombustion techniques. 13
(3) A person that is eligible to receive a renewable energy credit under 14
paragraph (2) of this subsection shall receive a renewable energy credit equal to the amount 15
of energy, converted from BTUs to kilowatt–hours, that is generated by the thermal 16
biomass system and used on site. 17
(4) The total amount of energy generated and consumed for a residential, 18
nonresidential, or commercial thermal biomass system shall be measured by an on–site 19
meter that meets the required performance standards established by the Commission. 20
(5) The Commission shall adopt regulations for the metering, verification, 21
and reporting of the output of thermal biomass systems. 22
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall apply to all 23
renewable energy portfolio standard compliance years starting on or after January 1, 2022. 24
SECTION 3. AND BE IT FURTHER ENACTED, That this Act shall take effect 25
October 1, 2022. 26