EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
[Brackets] indicate matter deleted from existing law.
*sb0966*
SENATE BILL 966
M5 2lr3125
By: Senator Feldman
Introduced and read first time: February 15, 2022
Assigned to: Rules
A BILL ENTITLED
AN ACT concerning 1
Public Utilities – Energy Efficiency and Conservation Programs – Alterations 2
FOR the purpose of requiring energy efficiency and conservation programs and services 3
provided by gas companies and electric companies to encourage and promote the 4
electrification of certain products and beneficial electrification beginning with a 5
certain calendar year; prohibiting the energy efficiency and conservation programs 6
and services from providing financial assistance for equipment or appliances that 7
use fossil fuel; requiring the Public Service Commission to consider the social cost of 8
greenhouse gases when determining whether the energy efficiency and conservation 9
programs and services are cost–effective; requiring electric companies to increase 10
their annual incremental gross energy savings through certain energy efficiency and 11
conservation programs and services for certain program cycles; and generally 12
relating to energy efficiency and conservation programs. 13
BY repealing and reenacting, with amendments, 14
Article – Public Utilities 15
Section 7–211(d), (f), (g), and (k) 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
7–211. 22
(d) (1) Subject TO PARAGRAPH (2) OF THIS SUBSECTION A ND SUBJECT to 23
review and approval by the Commission, each gas company and electric company shall 24 2 SENATE BILL 966
develop and implement programs and services to encourage and promote the efficient use 1
and conservation of energy by consumers, gas companies, and electric companies. 2
(2) BEGINNING WITH CALEND AR YEAR 2024, THE PROGRAMS AND 3
SERVICES PROVIDED UN DER THIS SUBSECTION SHALL: 4
(I) ENCOURAGE AND PROMOT E THE REPLACEMENT OR 5
ENHANCEMEN T OF GAS, OIL, OR PROPANE HEATING S YSTEMS WITH ELECTRIC HEAT 6
PUMPS, GIVING PRIORITY TO L OW–INCOME HOUSEHOLDS AN D CONSUMERS ; AND 7
(II) ENCOURAGE AND PROMOT E BENEFICIAL ELECTRI FICATION 8
FOR THE PURPOSES OF REDUCING ENERGY CONS UMPTION, REDUCING CONSUMER 9
COSTS, AND REDUCING GREENHO USE GAS EMISSIONS . 10
(3) BEGINNING WITH CALEND AR YEAR 2024, THE PROGRAMS AND 11
SERVICES PROVIDED UN DER THIS SUBSECTION MAY NOT PROVIDE FINA NCIAL 12
ASSISTANCE FOR EQUIP MENT OR APPLIANCES T HAT USE FOSSIL FUEL . 13
(f) (1) The Commission shall: 14
[(1)] (I) require each gas company and electric company to establish any 15
program or service that the Commission deems appropriate and cost effective to encourage 16
and promote the [efficient use and conservation of energy] ITEMS SPECIFIED IN 17
SUBSECTION (D) OF THIS SECTION ; 18
[(2)] (II) adopt rate–making policies that provide cost recovery and, in 19
appropriate circumstances, reasonable financial incentives for gas companies and electric 20
companies to establish programs and services that encourage and promote the [efficient 21
use and conservation of energy] ITEMS SPECIFIED IN S UBSECTION (D) OF THIS 22
SECTION; and 23
[(3)] (III) ensure that adoption of electric customer choice under Subtitle 5 24
of this title does not adversely impact the continuation of [cost–effective energy efficiency 25
and conservation] THE programs PROVIDED UNDER SUBSE CTION (D) OF THIS SECTION. 26
(2) IN DETERMINING WHETHE R A PROGRAM OR SERVI CE PROVIDED 27
UNDER SUBSECTION (D) OF THIS SECTION IS C OST–EFFECTIVE, THE COMMISSION 28
SHALL CONSIDER THE S OCIAL COST OF GREENH OUSE GASES, USING EITHER THE 29
RATE ADOPTED BY THE DEPARTMENT OF THE ENVIRONMENT OR THE RA TE 30
ADOPTED BY THE U.S. ENVIRONMENTAL PROTECTION AGENCY, WHICHEVER IS 31
GREATER. 32
(g) (1) Except as provided in subsection (e) of this section, on or before 33
December 31, 2008, by regulation or order, the Commission shall: 34 SENATE BILL 966 3
(i) to the extent that the Commission determines that cost–effective 1
energy efficiency and conservation programs and services are available, for each affected 2
class, require each electric company to procure or provide for its electricity customers 3
cost–effective energy efficiency and conservation programs and services with projected and 4
verifiable electricity savings that are designed to achieve a targeted reduction of at least 5
5% by the end of 2011 and 10% by the end of 2015 of per capita electricity consumed in the 6
electric company’s service territory during 2007; and 7
(ii) require each electric company to implement a cost–effective 8
demand response program in the electric company’s service territory that is designed to 9
achieve a targeted reduction of at least 5% by the end of 2011, 10% by the end of 2013, and 10
15% by the end of 2015, in per capita peak demand of electricity consumed in the electric 11
company’s service territory during 2007. 12
(2) (i) Except as provided in subsection (e) of this section, for the 13
duration of the [2018–2020 and] 2021–2023 AND 2024–2026 program cycles, by regulation 14
or order, the Commission shall, to the extent that the Commission determines that 15
cost–effective energy efficiency and conservation programs and services are available, for 16
each affected class, require each electric company to procure or provide for its electricity 17
customers cost–effective energy efficiency and conservation programs and services with 18
projected and verifiable electricity savings that are designed on a trajectory to achieve a 19
targeted annual incremental gross energy savings of at least [2.0% per year, calculated as 20
a percentage of the electric company’s 2016 weather–normalized gross retail sales and 21
electricity losses] THE FOLLOWING ANNUAL PERCENTAGES , CALCULATED AS A 22
PERCENTAGE OF THE EL ECTRIC COMPANY ’S 2016 WEATHER–NORMALIZED GROSS 23
RETAIL SALES AND ELE CTRICITY LOSSES : 24
1. 2.25% PER YEAR IN 2025 AND 2026; 25
2. 2.5% IN 2027; AND 26
3. 2.75% PER YEAR IN 2028 AND THEREAFTER . 27
(ii) The savings trajectory shall use the approved 2016 plans 28
submitted under subsection (h)(2) of this section as a baseline for an incremental increase 29
of a rate of .20% per year until the minimum [2.0% per year] savings rate SPECIFIED IN 30
SUBPARAGRAPH (I) OF THIS PARAGRAPH is achieved. 31
(iii) The gross retail sales against which the savings are measured 32
shall: 33
1. reflect sales associated with customer classes served by 34
utility–administered programs only; and 35
4 SENATE BILL 966
2. be updated by the Commission for each plan submitted 1
under subsection (h)(2) of this section. 2
(iv) The targeted annual incremental gross energy savings shall be 3
achieved based on the 3–year average of an electric company’s plan submitted under 4
subsection (h)(2) of this section. 5
(k) On or before May 1 of each year, the Commission, in consultation with the 6
Maryland Energy Administration, shall report, subject to § 2–1257 of the State Government 7
Article, to the General Assembly on: 8
(1) the status of programs and services to encourage and promote the 9
[efficient use and conservation of energy] ITEMS SPECIFIED IN S UBSECTION (D) OF THIS 10
SECTION, including an evaluation of the impact of the programs and services that are 11
directed to low–income communities, low– to moderate–income communities to the extent 12
possible, and other particular classes of ratepayers; 13
(2) a recommendation for the appropriate funding level to adequately fund 14
these programs and services; and 15
(3) in accordance with subsection (c) of this section, the per capita 16
electricity consumption and the peak demand for the previous calendar year. 17
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect June 18
1, 2022. 19