Maryland 2022 Regular Session

Maryland Senate Bill SB966 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
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2	2
3	3	EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
4	4	[Brackets] indicate matter deleted from existing law.
5	5	sb0966
6	6
7	7	SENATE BILL 966
8	8	M5 2lr3125
9	9
10	10	By: Senator Feldman
11	11	Introduced and read first time: February 15, 2022
12	12	Assigned to: Rules
13	13
14	14	A BILL ENTITLED
15	15
16	16	AN ACT concerning 1
17	17
18	18	Public Utilities – Energy Efficiency and Conservation Programs – Alterations 2
19	19
20	20	FOR the purpose of requiring energy efficiency and conservation programs and services 3
21	21	provided by gas companies and electric companies to encourage and promote the 4
22	22	electrification of certain products and beneficial electrification beginning with a 5
23	23	certain calendar year; prohibiting the energy efficiency and conservation programs 6
24	24	and services from providing financial assistance for equipment or appliances that 7
25	25	use fossil fuel; requiring the Public Service Commission to consider the social cost of 8
26	26	greenhouse gases when determining whether the energy efficiency and conservation 9
27	27	programs and services are cost–effective; requiring electric companies to increase 10
28	28	their annual incremental gross energy savings through certain energy efficiency and 11
29	29	conservation programs and services for certain program cycles; and generally 12
30	30	relating to energy efficiency and conservation programs. 13
31	31
32	32	BY repealing and reenacting, with amendments, 14
33	33	Article – Public Utilities 15
34	34	Section 7–211(d), (f), (g), and (k) 16
35	35	Annotated Code of Maryland 17
36	36	(2020 Replacement Volume and 2021 Supplement) 18
37	37
38	38	SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 19
39	39	That the Laws of Maryland read as follows: 20
40	40
41	41	Article – Public Utilities 21
42	42
43	43	7–211. 22
44	44
45	45	(d) (1) Subject TO PARAGRAPH (2) OF THIS SUBSECTION A ND SUBJECT to 23
46	46	review and approval by the Commission, each gas company and electric company shall 24 2 SENATE BILL 966
47	47
48	48
49	49	develop and implement programs and services to encourage and promote the efficient use 1
50	50	and conservation of energy by consumers, gas companies, and electric companies. 2
51	51
52	52	(2) BEGINNING WITH CALEND AR YEAR 2024, THE PROGRAMS AND 3
53	53	SERVICES PROVIDED UN DER THIS SUBSECTION SHALL: 4
54	54
55	55	(I) ENCOURAGE AND PROMOT E THE REPLACEMENT OR 5
56	56	ENHANCEMEN T OF GAS, OIL, OR PROPANE HEATING S YSTEMS WITH ELECTRIC HEAT 6
57	57	PUMPS, GIVING PRIORITY TO L OW–INCOME HOUSEHOLDS AN D CONSUMERS ; AND 7
58	58
59	59	(II) ENCOURAGE AND PROMOT E BENEFICIAL ELECTRI FICATION 8
60	60	FOR THE PURPOSES OF REDUCING ENERGY CONS UMPTION, REDUCING CONSUMER 9
61	61	COSTS, AND REDUCING GREENHO USE GAS EMISSIONS . 10
62	62
63	63	(3) BEGINNING WITH CALEND AR YEAR 2024, THE PROGRAMS AND 11
64	64	SERVICES PROVIDED UN DER THIS SUBSECTION MAY NOT PROVIDE FINA NCIAL 12
65	65	ASSISTANCE FOR EQUIP MENT OR APPLIANCES T HAT USE FOSSIL FUEL . 13
66	66
67	67	(f) (1) The Commission shall: 14
68	68
69	69	[(1)] (I) require each gas company and electric company to establish any 15
70	70	program or service that the Commission deems appropriate and cost effective to encourage 16
71	71	and promote the [efficient use and conservation of energy] ITEMS SPECIFIED IN 17
72	72	SUBSECTION (D) OF THIS SECTION ; 18
73	73
74	74	[(2)] (II) adopt rate–making policies that provide cost recovery and, in 19
75	75	appropriate circumstances, reasonable financial incentives for gas companies and electric 20
76	76	companies to establish programs and services that encourage and promote the [efficient 21
77	77	use and conservation of energy] ITEMS SPECIFIED IN S UBSECTION (D) OF THIS 22
78	78	SECTION; and 23
79	79
80	80	[(3)] (III) ensure that adoption of electric customer choice under Subtitle 5 24
81	81	of this title does not adversely impact the continuation of [cost–effective energy efficiency 25
82	82	and conservation] THE programs PROVIDED UNDER SUBSE CTION (D) OF THIS SECTION. 26
83	83
84	84	(2) IN DETERMINING WHETHE R A PROGRAM OR SERVI CE PROVIDED 27
85	85	UNDER SUBSECTION (D) OF THIS SECTION IS C OST–EFFECTIVE, THE COMMISSION 28
86	86	SHALL CONSIDER THE S OCIAL COST OF GREENH OUSE GASES, USING EITHER THE 29
87	87	RATE ADOPTED BY THE DEPARTMENT OF THE ENVIRONMENT OR THE RA TE 30
88	88	ADOPTED BY THE U.S. ENVIRONMENTAL PROTECTION AGENCY, WHICHEVER IS 31
89	89	GREATER. 32
90	90
91	91	(g) (1) Except as provided in subsection (e) of this section, on or before 33
92	92	December 31, 2008, by regulation or order, the Commission shall: 34 SENATE BILL 966 3
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94	94
95	95
96	96	(i) to the extent that the Commission determines that cost–effective 1
97	97	energy efficiency and conservation programs and services are available, for each affected 2
98	98	class, require each electric company to procure or provide for its electricity customers 3
99	99	cost–effective energy efficiency and conservation programs and services with projected and 4
100	100	verifiable electricity savings that are designed to achieve a targeted reduction of at least 5
101	101	5% by the end of 2011 and 10% by the end of 2015 of per capita electricity consumed in the 6
102	102	electric company’s service territory during 2007; and 7
103	103
104	104	(ii) require each electric company to implement a cost–effective 8
105	105	demand response program in the electric company’s service territory that is designed to 9
106	106	achieve a targeted reduction of at least 5% by the end of 2011, 10% by the end of 2013, and 10
107	107	15% by the end of 2015, in per capita peak demand of electricity consumed in the electric 11
108	108	company’s service territory during 2007. 12
109	109
110	110	(2) (i) Except as provided in subsection (e) of this section, for the 13
111	111	duration of the [2018–2020 and] 2021–2023 AND 2024–2026 program cycles, by regulation 14
112	112	or order, the Commission shall, to the extent that the Commission determines that 15
113	113	cost–effective energy efficiency and conservation programs and services are available, for 16
114	114	each affected class, require each electric company to procure or provide for its electricity 17
115	115	customers cost–effective energy efficiency and conservation programs and services with 18
116	116	projected and verifiable electricity savings that are designed on a trajectory to achieve a 19
117	117	targeted annual incremental gross energy savings of at least [2.0% per year, calculated as 20
118	118	a percentage of the electric company’s 2016 weather–normalized gross retail sales and 21
119	119	electricity losses] THE FOLLOWING ANNUAL PERCENTAGES , CALCULATED AS A 22
120	120	PERCENTAGE OF THE EL ECTRIC COMPANY ’S 2016 WEATHER–NORMALIZED GROSS 23
121	121	RETAIL SALES AND ELE CTRICITY LOSSES : 24
122	122
123	123	1. 2.25% PER YEAR IN 2025 AND 2026; 25
124	124
125	125	2. 2.5% IN 2027; AND 26
126	126
127	127	3. 2.75% PER YEAR IN 2028 AND THEREAFTER . 27
128	128
129	129	(ii) The savings trajectory shall use the approved 2016 plans 28
130	130	submitted under subsection (h)(2) of this section as a baseline for an incremental increase 29
131	131	of a rate of .20% per year until the minimum [2.0% per year] savings rate SPECIFIED IN 30
132	132	SUBPARAGRAPH (I) OF THIS PARAGRAPH is achieved. 31
133	133
134	134	(iii) The gross retail sales against which the savings are measured 32
135	135	shall: 33
136	136
137	137	1. reflect sales associated with customer classes served by 34
138	138	utility–administered programs only; and 35
139	139	4 SENATE BILL 966
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142	142	2. be updated by the Commission for each plan submitted 1
143	143	under subsection (h)(2) of this section. 2
144	144
145	145	(iv) The targeted annual incremental gross energy savings shall be 3
146	146	achieved based on the 3–year average of an electric company’s plan submitted under 4
147	147	subsection (h)(2) of this section. 5
148	148
149	149	(k) On or before May 1 of each year, the Commission, in consultation with the 6
150	150	Maryland Energy Administration, shall report, subject to § 2–1257 of the State Government 7
151	151	Article, to the General Assembly on: 8
152	152
153	153	(1) the status of programs and services to encourage and promote the 9
154	154	[efficient use and conservation of energy] ITEMS SPECIFIED IN S UBSECTION (D) OF THIS 10
155	155	SECTION, including an evaluation of the impact of the programs and services that are 11
156	156	directed to low–income communities, low– to moderate–income communities to the extent 12
157	157	possible, and other particular classes of ratepayers; 13
158	158
159	159	(2) a recommendation for the appropriate funding level to adequately fund 14
160	160	these programs and services; and 15
161	161
162	162	(3) in accordance with subsection (c) of this section, the per capita 16
163	163	electricity consumption and the peak demand for the previous calendar year. 17
164	164
165	165	SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect June 18
166	166	1, 2022. 19
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168	168