EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G 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.
*hb1035*
HOUSE BILL 1035
M5, C5 3lr1308
CF SB 905
By: Delegate Wilson
Introduced and read first time: February 10, 2023
Assigned to: Economic Matters
Committee Report: Favorable with amendments
House action: Adopted with floor amendments
Read second time: March 22, 2023
CHAPTER ______
AN ACT concerning 1
Electric Companies, Gas Companies, and the Department of Housing and 2
Community Development – Energy Energy Efficiency and Conservation Plans 3
and Green and Healthy Task Force 4
FOR the purpose of requiring each electric company and gas company and the Department 5
of Housing and Community Development to develop a certain plan for achieving 6
certain energy efficiency, conservation, and greenhouse gas emissions reduction 7
targets through certain programs and services; requiring the Department of Housing 8
and Community Development to procure or provide for its customers or certain 9
individuals, beginning on a certain date and with a certain frequency, certain energy 10
efficiency, conservation, and greenhouse gas emissions reduction programs and 11
services to encourage and promote the efficient use and conservation of energy in 12
support of certain greenhouse gas emissions reduction goals and targets for 13
achieving certain energy efficiency, conservation, and greenhouse gas emissions 14
reduction targets; requiring the Public Service Commission to encourage and 15
promote the efficient use and conservation of energy in support of certain greenhouse 16
gas emissions reduction goals and targets in a certain manner, including requiring 17
certain municipal electric or gas utilities and electric cooperatives to include certain 18
programs or services as part of their service to their customers as directed by the 19
Commission; requiring certain electric companies and gas companies and the 20
Department of Housing and Community Development to develop and submit to the 21
Commission, on or before a certain date and with a certain frequency, a plan for 22
achieving certain energy efficiency, conservation, and greenhouse gas emissions 23
reduction targets requiring the Commission to establish and determine certain 24
greenhouse gas emissions reduction targets; requiring certain contractors used for 25 2 HOUSE BILL 1035
certain programs under this Act to meet certain job requirements; requiring the 1
Department of Housing and Community Development to develop a plan to coordinate 2
and leverage funding sources to support certain energy efficiency and other home 3
upgrades; requiring the Department of the Environment to prepare and submit to 4
the Commission a certain analysis; requiring each electric company and each gas 5
company to promote certain rebates, tax credits, and incentives; establishing the 6
Green and Healthy Task Force to analyze and advance the coordination of resources 7
to address the housing needs of low–income communities; requiring the certification 8
agency designated by the Board of Public Works and the Governor’s Office of Small, 9
Minority, and Women Business Affairs, in consultation with the Department of 10
Housing and Community Development, the Office of the Attorney General, and the 11
General Assembly to study certain energy efficiency and conservation services and 12
submit its findings on or before a certain date; and generally relating to the efficient 13
use and conservation of energy in support of greenhouse gas emissions reduction 14
goals and targets. 15
BY repealing 16
Article – Public Utilities 17
Section 7–211 18
Annotated Code of Maryland 19
(2020 Replacement Volume and 2022 Supplement) 20
BY adding to 21
Article – Public Utilities 22
The new part designation “Part I. In General” to immediately precede Section 7–201; 23
and Section 7–220 through 7–226 7–228 to be under the new part “Part II. 24
Energy Efficiency and Conservation Plans” Efficiency and Conservation 25
Plans”; and 7–315 26
Annotated Code of Maryland 27
(2020 Replacement Volume and 2022 Supplement) 28
BY repealing and reenacting, with amendments, 29
Article – Public Utilities 30
Section 7–510.3(j)(2) 31
Annotated Code of Maryland 32
(2020 Replacement Volume and 2022 Supplement) 33
BY repealing and reenacting, with amendments, 34
Article – State Government 35
Section 9–20B–05(f)(4) 36
Annotated Code of Maryland 37
(2021 Replacement Volume and 2022 Supplement) 38
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 39
That Section(s) 7–211 of Article – Public Utilities of the Annotated Code of Maryland be 40
repealed. 41
HOUSE BILL 1035 3
SECTION 2. AND BE IT FURTHER ENACTED, That the new part designation 1
“Part I. In General” be added to immediately precede Section 7–201 of Article – Public 2
Utilities of the Annotated Code of Maryland. 3
SECTION 3. AND BE IT FURTHER ENACTED, That the Laws of Maryland read 4
as follows: 5
Article – Public Utilities 6
7–218. RESERVED. 7
7–219. RESERVED. 8
PART II. ENERGY EFFICIENCY AND CONSERVATION PLANS. 9
7–220. 10
(A) IN THIS PART THE FOLL OWING WORDS HAVE THE MEANINGS 11
INDICATED. 12
(B) “BEHIND–THE–METER PROGRAM ” MEANS A PROGRAM THAT IMPACTS 13
THE CUSTOMER SIDE OF THE UTILITY METER , INCLUDING ENERGY EFF ICIENCY 14
PROGRAMS, BENEFICIAL ELEC TRIFICATION PROGRAMS , AND DEMAND RESPONSE 15
PROGRAMS. 16
(C) “BENEFICIAL ELECTRIFIC ATION” MEANS THE REPLACEMEN T OF THE 17
DIRECT USE OF FOSSIL FUEL FUELS IN BUILDINGS WITH THE USE OF ELECTRICITY 18
IN A MANNER THAT: 19
(1) REDUCES OVERALL LIFE TIME GREENHOUSE GAS EMISSIONS, 20
ENERGY USE,; 21
(2) OR CUSTOMERS ’ ENERGY COSTS ; OR 22
(3) ENABLES BETTER MANAG EMENT OF THE ELECTRI C GRID. 23
(D) “CARBON DIOXIDE EQUIVA LENT” MEANS THE MEASUREMEN T OF A 24
GIVEN WEIGHT OF A GREENHOUSE GAS THAT HAS THE SAME GLOBAL WARMING 25
POTENTIAL, MEASURED OVER A SPEC IFIC PERIOD OF TIME , AS 1 METRIC TON OF 26
CARBON DIOXIDE . 27
(E) “DEMAND RESPONSE PROGR AM” MEANS A PROGRAM ESTA BLISHED BY 28
AN ELECTRIC COMPANY , AN ELECTRICITY SUPPL IER, OR A THIRD PARTY THAT 29
PROMOTES CHANGES IN ELECTRIC USAGE BY CU STOMERS F ROM THEIR NORMAL 30
CONSUMPTION PATTERNS IN RESPONSE TO: 31 4 HOUSE BILL 1035
(1) CHANGES IN THE PRICE OF ELECTRICITY OVER TIME; OR 1
(2) INCENTIVES DESIGNED TO: 2
(I) INDUCE LOWER ELECTRI CITY USE AT TIMES OF HIGH 3
WHOLESALE MARKET PRI CES; OR WHEN 4
(II) ENSURE SYSTEM RELIABILITY IS JEOPARDIZED . 5
(F) “DEPARTMENT ” MEANS THE DEPARTMENT OF HOUSING AND 6
COMMUNITY DEVELOPMENT . 7
(F) (G) “ENERGY EFFICIENCY ” MEANS THE USE OF LES S ENERGY TO 8
PERFORM THE SAME TAS K OR PRODUCE THE SAM E RESULT. 9
(G) (H) “FRONT–OF–METER COMMUNITY PROG RAM” MEANS A PROGRAM 10
THAT: 11
(1) IS SEPARATE FROM FRO NT–OF–METER UTILITY PROGRA MS; 12
(2) IMPACTS THE UTILITY SIDE OF THE METER ; AND 13
(3) DIRECTLY BENEFITS A SET OF CUSTOMERS . 14
(H) (I) “FRONT–OF–METER UTILITY PROGRA M” MEANS A PROGRAM 15
THAT IMPACTS THE UTI LITY SIDE OF A METER AND BENEFITS ALL UTI LITY 16
CUSTOMERS , INCLUDING ENERGY EFF ICIENCY PROGRAMS , BENEFICIAL 17
ELECTRIFICATION PROG RAMS, AND DEMAND RESPONSE PROGRAMS. 18
(I) (J) “GREENHOUSE GAS ” INCLUDES: 19
(1) CARBON DIOXIDE ; 20
(2) METHANE; 21
(3) NITROUS OXIDE ; 22
(4) HYDROFLUOROCARBONS ; 23
(5) PERFLUOROCARBONS ; AND 24
(6) SULFUR HEXAFLUORIDE . 25
HOUSE BILL 1035 5
(J) (K) “GREENHOUSE GAS EMISSI ONS REDUCTION ” MEANS A 1
REDUCTION IN GREENHO USE GAS EMISSIONS , MEASURED IN METRIC T ONS OF 2
CARBON DIOXIDE EQUIV ALENTS, INCLUDING: 3
(1) GREENHOUSE GAS EMISS IONS FROM THE GENERA TION OF 4
ELECTRICITY DELIVERE D TO AND CONSUMED IN THE STATE; AND 5
(2) LINE LOSSES FROM THE TRANSMISSION AND DIS TRIBUTION OF 6
ELECTRICITY, REGARDLESS OF WHETHE R THE ELECTRICITY IS GENERATED 7
IN–STATE OR IMPORTED . 8
(L) “LOW–INCOME PROGRAM ” MEANS A PROGRAM THAT DELIVERS ENERGY 9
EFFICIENCY, CONSERVATION , AND GREENHOUSE GAS E MISSIONS REDUCTION 10
MEASURES TO REDUCE U TILITY EXPENSES FOR BUILDING OWNERS , MANAGERS, AND 11
TENANTS OF HOUSING W ITH RESIDENTS WHO QU ALIFY FOR THE DEPARTMENT ’S 12
LOW–INCOME ASSISTANCE PROGRAMS , INCLUDING: 13
(1) THE EMPOWER MARYLAND LIMITED INCOME ENERGY 14
EFFICIENCY PROGRAM; 15
(2) THE MULTIFAMILY ENERGY EFFICIENCY AND HOUSING 16
AFFORDABILITY PROGRAM; AND 17
(3) THE WEATHERIZATION ASSISTANCE PROGRAM. 18
(M) “LOW–INCOME RESIDENTIAL ” MEANS A COMMUNITY , BUILDING, OR 19
HOUSEHOLD WITH RESID ENTS THAT: 20
(1) HAVE INCOMES BELOW 250% OF THE FEDERAL POVER TY LEVEL 21
AS DETERMINED BY THE FEDERAL CENSUS ; OR 22
(2) MEET THE ELIGIBILITY CRITERIA APPROVED BY THE 23
COMMISSION FOR LOW –INCOME PROGRAMS . 24
(K) (N) “NON–ENERGY PROGRAM ” MEANS A PROGRAM WITH UTILITY 25
GREENHOUSE GAS EMISS IONS REDUCTION BENEFITS THAT ARE PR IMARILY 26
NON–ENERGY–BASED. 27
(L) (O) “PLAN” MEANS ANY COMBINATIO N OF BEHIND –THE–METER 28
PROGRAMS, FRONT–OF–METER COMMUNITY PROG RAMS, FRONT–OF–METER 29
UTILITY PROGRAMS , OR NON–ENERGY PROGRAMS THAT : 30
(1) ACHIEVE ENERGY EFFICIENCY , CONSERVATION , AND 31
GREENHOUSE GAS EMISS IONS REDUCTION TARGETS REDUCTIONS THROUGH 32 6 HOUSE BILL 1035
ENERGY EFFICIENCY , CONSERVATION , DEMAND RESPONSE , AND BENEFICIAL 1
ELECTRIFICATION ; AND 2
(2) INCLUDE A COST RECOV ERY PROPOSAL . 3
(P) “TASK FORCE” MEANS THE GREEN AND HEALTHY TASK FORCE 4
ESTABLISHED UNDER § 7–315 OF THIS TITLE. 5
7–221. 6
THE GENERAL ASSEMBLY FINDS AND DE CLARES THAT ENERGY E FFICIENCY 7
IS: 8
(1) AMONG THE LEAST EXPE NSIVE WAYS TO MEET T HE ENERGY 9
DEMANDS OF THE STATE; 10
(2) A MEANS OF AFFORDABL E, RELIABLE, AND CLEAN ENERGY FOR 11
CONSUMERS OF MARYLAND; AND 12
(3) ONE METHOD TO A CHIEVE MARYLAND’S CLIMATE COMMITMENT S 13
FOR REDUCING STATEWI DE GREENHOUSE GAS EM ISSIONS, INCLUDING THOSE 14
SPECIFIED IN TITLE 2, SUBTITLE 12 OF THE ENVIRONMENT ARTICLE. 15
7–222. 16
(A) SUBJECT TO REVIEW AND APPROVAL BY THE COMMISSION, EACH 17
ELECTRIC COMPANY AND, EACH GAS COMPANY , AND THE DEPARTMENT SHALL 18
DEVELOP AND IMPLEMEN T PROGRAMS AND SERVI CES IN ACCORDANCE WI TH §§ 19
7–223 AND, 7–224, AND 7–225 OF THIS SUBTITLE TO ENCOURAGE AND PROMOT E 20
THE EFFICIENT USE AN D CONSERVATION OF EN ERGY, DEMAND RESPONSE , AND 21
BENEFICIAL ELECTRIFI CATION BY CONSUMERS , ELECTRIC COMPANIES , AND GAS 22
COMPANIES, AND THE DEPARTMENT IN SUPPORT OF THE GR EENHOUSE GAS 23
EMISSIONS REDUCTION GOALS AND TARGETS SP ECIFIED IN §§ 2–1201 AND 2–1204.1 24
OF THE ENVIRONMENT ARTICLE. 25
(B) AS DIRECTED BY THE COMMISSION, EACH MUNICIPAL ELECT RIC OR GAS 26
UTILITY AND EACH ELE CTRIC COOPERATIVE TH AT SERVES A POPULATI ON OF LESS 27
THAN 250,000 IN ITS DISTRIBUTION TERRITORY SHALL INCL UDE ENERGY 28
EFFICIENCY AND CONSE RVATION, DEMAND RESPONSE , AND BENEFICIAL 29
ELECTRIFICATIO N PROGRAMS OR SERVICES AS PART OF THEIR SER VICE TO THEIR 30
CUSTOMERS . 31
(C) THE COMMISSION SHALL ENCO URAGE AND PROMOTE TH E EFFICIENT 32
USE AND CONSERVATION OF ENERGY IN SUPPORT OF THE GREENHOUSE GA S 33 HOUSE BILL 1035 7
EMISSIONS REDUCTION GOALS AND TARGETS SP ECIFIED IN §§ 2–1201 AND 2–1204.1 1
OF THE ENVIRONMENT ARTICLE AND SET, ESTABLISHED BY THE COMMISSION 2
UNDER § 7–223(A) § 7–223(B) OF THIS SUBTITLE , AND SPECIFIED IN § 7–224(A)(2) 3
OF THIS SUBTITLE BY: 4
(1) REQUIRING EACH ELECT RIC COMPANY AND GAS COMPANY TO 5
ESTABLISH ANY PROGRA M OR SERVICE THAT THE COMMISSION DETERMINES TO BE 6
APPROPRIATE AND COST –EFFECTIVE; 7
(2) ADOPTING RATE –MAKING POLICIES THAT PROVIDE, THROUGH A 8
SURCHARGE LINE ITEM ON CUSTOMER BILLS : 9
(I) ON OR BEFORE JANUARY 1, 2027, FULL COST RECOVERY 10
AND REASONABLE FINANCIAL INCENTIVES FOR ELECTRIC COMPANI ES AND GAS 11
COMPANIES THROUGH A SURCHARGE OR BASE RA TE RECOVERY , INCLUDING THE 12
ELECTRIC COMPANY OR GAS COMPANY ’S AUTHORIZED RATE OF RETURN, FOR THE 13
ELECTRIC COMPANY OR GAS COMPANY ’S INVESTMENTS IN PROGRAMS AND 14
RESOURCES OF REASONABLY INCURR ED COSTS FOR PROGRAM S AND SERVICES 15
ESTABLISHED UNDER IT EM (1) OF THIS SUBSECTION , INCLUDING FULL RECOV ERY 16
ON A CURRENT BASIS ON OR BEFORE JANUARY 1, 2027; 17
(II) ON OR BEFORE DECEMBER 31, 2031, THE ELIMINATION OF 18
ANY UNPAID COSTS AND UNAMORTIZE D COSTS THAT: 19
1. A. EXISTED ON DECEMBER 31, 2023; OR 20
B. WERE INCURRED BEFORE JANUARY 1, 2027; AND 21
2. WERE ACCRUED FOR THE PURPOSE OF ACHIEVING 22
STATUTORY TARGETS FO R ANNUAL INCREMENTAL GROSS ENERGY SAVINGS ; AND 23
(III) COMPENSATION FOR ANY UNPAID COSTS AND 24
UNAMORTIZED COSTS UN DER ITEM (II) OF THIS ITEM AT NO M ORE THAN EACH 25
ELECTRIC COMPANY ’S AND EACH GAS COMPA NY’S AVERAGE COST OF OU TSTANDING 26
DEBT; AND 27
(III) (IV) REASONABLE FINANCIAL PERFORMANCE INCENTIV ES 28
AND PENALTI ES FOR INVESTOR –OWNED ELECTRIC COMPA NIES AND GAS 29
COMPANIES, AS APPROPRIATE ; AND 30
(3) ENSURING THAT ADOPTI ON OF ELECTRIC CUSTO MER CHOICE 31
UNDER SUBTITLE 5 OF THIS TITLE AND GA S CUSTOMER CHOICE UN DER SUBTITLE 6 32
OF THIS TITLE DO NOT ADVERSELY IMPACT THE SE GOALS AND TARGETS . 33
8 HOUSE BILL 1035
7–223. 1
(A) (1) EXCEPT AS PROVIDED IN § 7–222(B) OF THIS SUBTITLE , 2
BEGINNING SEPTEMBER 1, 2023, AND EVERY 3 YEARS THEREAFTER , THE 3
COMMISSION SHALL REQU IRE EACH ELECTRIC CO MPANY AND EACH GAS C OMPANY 4
TO: 5
(I) DEVELOP A PLAN FOR P ROCURING OR PROVIDING FO R ITS 6
CUSTOMERS COST –EFFECTIVE ENERGY EFF ICIENCY, CONSERVATION , AND 7
GREENHOUSE GAS EMISS IONS REDUCTION PROGR AMS AND SERVICES IN 8
ACCORDANCE WITH § 7–224 OF THIS SUBTITLE ; AND 9
(II) PROCURE OR PROVIDE F OR ITS CUSTOMERS 10
COST–EFFECTIVE ENERGY EFFICIENCY , CONSERVATION , AND GREENHOUSE GAS 11
EMISSIONS REDUCTION PROGRAMS AND SERVICE S. 12
(2) THE COMMISSION SHALL ENSU RE THAT THE PROGRAMS AND 13
SERVICES PROCURED OR PROVIDED BY AN ELECT RIC COMPANY OR GAS C OMPANY: 14
(I) HAVE PROJECTED AND VERIFIABLE ENERGY EF FICIENCY, 15
CONSERVATION , AND GREENHOUSE GAS E MISSIONS REDUCTIONS FOR EACH 16
AFFECTED CUSTOMER CL ASS; 17
(II) ACHIEVE GROSS GREENH OUSE GAS EMISSIONS R EDUCTION 18
TARGETS AS SET BY TH E COMMISSION; AND 19
(III) ARE COMPOSED OF SUFF ICIENT PERCENTAGES , AS 20
DETERMINED BY THE COMMISSION, OF BEHIND –THE–METER PROGRAMS , 21
NON–ENERGY PROGRAMS , FRONT–OF–METER COMMUNITY PROG RAMS, AND 22
FRONT–OF–METER UTILITY PROGRA MS. 23
(A) ON OR BEFORE JANUARY 1, 2024, THE COMMISSION SHALL , BY 24
REGULATION OR ORDER , REQUIRE EACH ELECTRIC COMPANY AND EACH GAS 25
COMPANY TO DEVELOP A ND IMPLEMENT A PLAN THAT: 26
(1) COVERS EACH RATEPAYE R CLASS; 27
(2) COVERS A 3–YEAR PROGRAM CYCLE ; AND 28
(3) ACHIEVES THE GREENHO USE GAS EMISSIONS RE DUCTION 29
TARGET ESTABLISHED F OR THE ELECTRIC COMPANY OR GAS COMPA NY UNDER 30
SUBSECTION (B) OF THIS SECTION THRO UGH COST–EFFECTIVE ENERGY EFF ICIENCY 31
AND CONSERVATION PRO GRAMS AND SERVICES , DEMAND RESPONSE PROG RAMS 32
AND SERVICES, AND BENEFICIAL ELECT RIFICATION PROGRAMS AND SERVICES. 33 HOUSE BILL 1035 9
(B) (1) FOR EACH 3–YEAR PROGRAM CYCLE , THE COMMISSION SHALL 1
ESTABLISH A GREENHOU SE GAS EMISSIONS RED UCTION TARGET FOR EA CH 2
ELECTRIC COMPANY AND EACH GAS COMPANY AS PROVIDED IN THIS SUB SECTION. 3
(2) WHEN ESTABLISHING GRE ENHOUSE GAS EMISSION S REDUCTION 4
TARGETS UNDER THIS S UBSECTION, THE COMMISSION SHALL MEAS URE THE 5
GREENHOUSE GAS EMISS IONS FROM ELECTRICIT Y USING DATA OBTAINE D FROM 6
PJM INTERCONNECTION ON MA RGINAL GREENHOUSE GA S EMISSIONS RATES FR OM 7
THE PREVIOUS YEAR . 8
(3) AS A BASELINE FOR DET ERMINING GREENHOUSE GAS EMISSIONS 9
REDUCTIONS UNDER THI S SUBSECTION , THE COMMISSION SHALL USE THE 10
GREENHOUSE GAS EMISS IONS RESULTING FROM THE DIRECT CONSUMPTI ON OF GAS 11
AND ELECTRICITY IN MARYLAND BUILDINGS IN 2020, AS DETERMINED BY THE 12
DEPARTMENT OF THE ENVIRONMENT . 13
(4) FOR THE TIME PER IOD 2024–2032, THE COMMISSION SHALL 14
DETERMINE AN OVERALL STATEWIDE GREENHOUSE GAS EMISSIONS REDUCT ION 15
TARGET BASED ON AN A VERAGE ANNUAL REDUCT ION OF AT LEAST 1.8% OF THE 16
BASELINE DETERMINED UNDER PARAGRAPH (3) OF THIS SUBSECTION . 17
(C) THE COMMISSION MAY P RIORITIZE LONG –LIVED GREENHOUSE GAS 18
EMISSIONS REDUCTION MEASURES IN THE PLAN S BY ESTABLISHING A MINIMUM 19
WEIGHTED AVERAGE MEA SURE LIFE FOR THE PL AN OF EACH ELECTRIC COMPANY 20
AND GAS COMPANY . 21
(3) (D) CONTRIBUTIONS TO GREE NHOUSE GAS EMISSIONS 22
REDUCTION GOALS AND TARGETS IN A PLAN OF AN ELECTRI C COMPANY OR A GAS 23
COMPANY: 24
(1) MAY INCLUDE PROGRAMS AND RESOURCES THAT ARE 25
RECOVERED , NOTWITHSTANDING § 7–222(C)(2) OF THIS SUBTITLE , INCLUDE 26
RECOVERY OF THE REAS ONABLE AND PRUDENT C OSTS FROM PROGRAMS T HAT ARE 27
NOT BEHIND–THE–METER PROGRAMS IN A BASE RATE PROCE EDING, SUBJECT TO 28
COMMISSION APPROVAL ; AND 29
(2) MAY NOT INCLUDE THE INCREASED ADOPTION O F ELECTRIC 30
VEHICLES. 31
(E) BEGINNING JANUARY 1, 2024, AT LEAST 80% OF THE GREENHOUSE GA S 32
EMISSIONS REDUCTIONS COUNTED TOWARD EACH ELECTRIC COMPANY’S AND EACH 33
GAS COMPANY ’S GREENHOUSE GAS EMI SSIONS REDUCTION TAR GETS ESTABLISHED 34
UNDER THIS SECTION S HALL COME FROM BEHIN D–THE–METER PROGRAMS . 35 10 HOUSE BILL 1035
7–224. 1
(B) (A) (1) BEGINNING SEPTEMBER 1, 2023 JANUARY 1, 2024, AND 2
EVERY 3 YEARS THEREAFTER , THE DEPARTMENT OF HOUSING AND COMMUNITY 3
DEVELOPMENT SHALL PROCURE OR PRO VIDE TO LOW– AND MODERATE –INCOME 4
INDIVIDUALS ENERGY E FFICIENCY, AND CONSERVATION PROGRAMS AND SERVICE S, 5
DEMAND RESPONSE PROG RAMS AND SERVICES , AND BENEFICIAL ELECTRIFICATIO N 6
PROGRAMS AND SERVICE S THAT ACHIEVE THE GREENHOUSE GAS EMISS IONS 7
REDUCTION PROGRAMS AND SERVICE S TARGETS ESTABLISHED FOR THE 8
DEPARTMENT UNDER PARA GRAPH (2) OF THIS SUBSECTION . 9
(2) FOR THE TIME PERIOD 2024–2032, THE PROGRAMS AND 10
SERVICES REQUIRED UNDER PARAGRAPH (1) OF THIS SUBSECTION S HALL BE ON A 11
TRAJECTORY TO ACHIEV E GREENHOUSE GAS RED UCTIONS AFTER 2026 OF AT LEAST 12
0.9% OF THE BASELINE DETE RMINED UNDER SUBSECT ION (G) OF THIS SECTION. 13
(3) THE GREENHOUSE GAS RE DUCTIONS ACHIEVED TO MEET THE 14
TARGETS ESTABLISHED UNDER PARAGRAPH (2) OF THIS SUBSECTION S HALL COUNT 15
TOWARD THE ACHIEVEME NT OF THE GREENHOUSE GAS REDUCTION TARGET 16
ESTABLISHED UNDER § 7–223(B) OF THIS SUBTITLE . 17
(2) (B) (1) THE DEPARTMENT OF HOUSING AND COMMUNITY 18
DEVELOPMEN T MAY PROCURE OR PROVI DE SAVINGS THAT ARE ACHIEVED 19
THROUGH FUNDING SOUR CES THAT MEET THE ST ANDARDS OF PROGRAM F UNDING 20
THROUGH UTILITY RATE S OR THE U.S. DEPARTMENT OF ENERGY. 21
(2) THE DEPARTMENT MAY USE TH E SAVINGS ACHIEVED T HROUGH 22
ALL FUNDING SOURCES TOWARD CALCULATING T HE TARGETED GREENHOU SE GAS 23
REDUCTIONS IF THE FU NDING SOURCES MEET T HE STANDARDS OF PROG RAMS 24
FUNDED THROUGH : 25
(I) A SURCHARGE UNDER § 7–222 OF THIS SUBTITLE; OR 26
(II) THE U.S. DEPARTMENT OF ENERGY. 27
(3) (C) THE ON OR BEFORE SEPTEMBER 1, 2023, AND EVERY 3 28
YEARS THEREAFTER , THE DEPARTMENT OF HOUSING AND COMMUNITY 29
DEVELOPMENT SHALL SUBMIT ITS PLANS FOR ANY PROGRAMS OR SERV ICES 30
PROCURED OR PROVIDED UNDER PARAGRAPH (1) OF THIS SUBSECTION 31
SUBSECTION (A) OF THIS SECTION TO THE COMMISSION FOR REVIEW AND 32
APPROVAL. 33
HOUSE BILL 1035 11
(D) FOR WEATHERIZATION OF LEASED OR RENTED RES IDENCES, THE 1
DEPARTMENT SHALL ADOP T REGULATIONS TO ENS URE THAT: 2
(1) THE BENEFITS OF WEAT HERIZATION ASSISTANC E, INCLUDING 3
UTILITY BILL REDUCTI ON AND PRESERVATION OF AFFORDABLE HOUSING STOCK , 4
ACCRUE PRIMARILY TO LOW–INCOME TENANTS OCCUP YING A LEASED OR REN TED 5
RESIDENCE; AND 6
(2) THE RENT ON THE RESI DENCE IS NOT INCREAS ED AND THE 7
TENANT IS NOT EVICTE D AS A RESULT OF WEA THERIZATION PROVIDED UNDER THIS 8
SECTION. 9
(E) (1) SUBJECT TO PARAGRAPH (2) OF THIS SUBSECTION , THE 10
PROGRAMS AND SERVICE S PROVIDED UNDER SUB SECTION (A) OF THIS SECTION MAY 11
NOT USE THERMAL INSU LATING MATERIALS FOR BUILDING ELEMENTS , INCLUDING 12
WALLS, FLOORS, CEILINGS, ATTICS, AND ROOF INSULATION , THAT CONTAIN 13
FORMALDEHYDE. 14
(2) THERMAL INSULATING MA TERIALS FOR BUILDING ELEMENTS 15
MAY NOT CONTAIN FORM ALDEHYDE IF THE FORM ALDEHYDE: 16
(I) WAS INTENTIONALLY AD DED; OR 17
(II) IS PRESENT IN THE PR ODUCT AT GREATER THA N 0.1% BY 18
WEIGHT. 19
(F) THE DEPARTMENT ’S APPROVED CONTR ACTORS USED FOR THE 20
PROGRAMS UNDER THIS SECTION SHALL MEET T HE FOLLOWING JOB 21
REQUIREMENTS : 22
(1) PAY AT LEAST 150% OF THE STATE MINIMUM WAGE ; 23
(2) PROVIDE CAREER ADVAN CEMENT TRAINING ; 24
(3) AFFORD EMPLOYEES THE RIGHT TO BARGAIN COL LECTIVELY FOR 25
WAGES AND BENEFITS; 26
(4) PROVIDE PAID LEAVE ; 27
(5) BE CONSIDERED COVERE D EMPLOYMENT FOR PUR POSES OF 28
UNEMPLOYMENT INSURAN CE BENEFITS IN ACCOR DANCE WITH TITLE 8 OF THE 29
LABOR AND EMPLOYMENT ARTICLE; 30
12 HOUSE BILL 1035
(6) ENTITLE THE EMPLOYEE TO WORKERS’ COMPENSATION BENEFIT S 1
IN ACCORDANCE WITH TITLE 9 OF THE LABOR AND EMPLOYMENT ARTICLE; 2
(7) BE COMPLIANT WITH FE DERAL AND STATE WAGE AND HOUR L AWS 3
FOR THE PREVIOUS 3 YEARS; 4
(8) OFFER EMPLOYER –PROVIDED HEALTH INSU RANCE BENEFITS 5
WITH MONTHLY PREMIUM S THAT DO NOT EXCEED 8.5% OF THE EMPLOYEE ’S NET 6
MONTHLY EARNINGS ; AND 7
(9) OFFER RETIREMENT BEN EFITS. 8
(G) AS A BASELINE FOR DET ERMINING GREENHOUSE GAS EMISSIONS 9
REDUCTION TARGETS UN DER THIS SUBSECTION SECTION, THE COMMISSION SHALL 10
USE THE GREENHOUSE E MISSIONS RESULTING F ROM THE DIRECT CONSUMPTION O F 11
GAS AND ELECTRICITY BY LOW– AND MODERATE –INCOME RESIDENTIAL 12
HOUSEHOLDS IN 2020, AS DETERMINED BY THE DEPARTMENT OF THE 13
ENVIRONMENT . 14
(H) (1) THE DEPARTMENT SHALL DEVE LOP A PLAN TO COORDI NATE 15
FUNDING SOURCES AND LEVERAGE THE GREATES T FUNDING POSSIBLE TO SUPPORT 16
A WHOLE HOME APPROAC H BY ADDRESSING : 17
(I) HEALTH AND SAFETY UP GRADES; 18
(II) WEATHERIZATION ; 19
(III) ENERGY EFFICIENCY ; AND 20
(IV) OTHER GENERAL MAINTE NANCE FOR LOW –INCOME 21
HOUSING. 22
(2) THE PLAN SHALL COORDI NATE FUNDING AMONG: 23
(I) THE STRATEGIC ENERGY INVESTMENT FUND; 24
(II) FEDERAL WEATHERIZATI ON ASSISTANCE PROGRA MS; 25
(III) RATEPAYER CONTRIBUTI ONS TO: 26
1. THE EMPOWER MARYLAND LIMITED INCOME 27
ENERGY EFFICIENCY PROGRAM; AND 28
HOUSE BILL 1035 13
2. THE MULTIFAMILY ENERGY EFFICIENCY AND 1
HOUSING AFFORDABILITY PROGRAM; 2
(IV) THE MARYLAND AFFORDABLE HOUSING TRUST FUND; 3
(V) U.S. DEPARTMENT OF HOUSING AND URBAN 4
DEVELOPMENT PROGRAMS , INCLUDING: 5
1. COMMUNITY DEVELOPMENT BLOCK GRANTS; 6
2. THE HOME INVESTMENT PARTNERSHIP GRANTS 7
PROGRAM; AND 8
3. LEAD HAZARD CONTROL AND HEALTHY HOMES 9
GRANTS; 10
(VI) U.S. DEPARTMENT OF AGRICULTURE PROGRAMS , 11
INCLUDING THE HOME REPAIR PROGRAM; 12
(VII) THE HEALTHY HOMES FOR HEALTHY KIDS PROGRAM; 13
(VIII) THE ENERGY EFFICIENCY AND CONSERVATION BLOCK 14
GRANT PROGRAM ; 15
(IX) STATE APPROPRIATIONS ; 16
(X) FUNDS FROM THE FEDER AL INFLATION REDUCTION ACT OF 17
2022; AND 18
(XI) ANY OTHER SOURCE OF FUNDING THAT THE DEPARTMENT 19
OR THE TASK FORCE IDENTIFIES . 20
(3) THE DEPARTMENT SHALL E NSURE, FOR ANY WHOLE HOME 21
RETROFITS ASSOCIATED WITH WEATHERIZATION PROVIDED OR DEVELOPE D UNDER 22
THE PLAN, THAT: 23
(I) THERE IS A SINGLE PO INT OF CONTACT FOR L OW– AND 24
MODERATE–INCOME RESIDENTIAL H OUSEHOLDS ; AND 25
(II) SERVICES ARE OFFERED IN ANY LANGUAGE NEEDED BY THE 26
LOW– AND MODERATE –INCOME RESIDENTIAL H OUSEHOLDS . 27
14 HOUSE BILL 1035
(4) THE DEPARTMENT SHALL COLL ABORATE WITH THE MEM BERS OF 1
THE TASK FORCE AND IDENTIFY OT HER INTERESTED STAKE HOLDERS TO DEVELOP 2
THE PLAN. 3
(4) (5) ON OR BEFORE DECEMBER 31, 2023, THE DEPARTMENT 4
SHALL SUBMIT THE PLA N TO THE GOVERNOR AND , IN ACCORDANCE WITH § 2–1257 5
OF THE STATE GOVERNMENT ARTICLE, THE GENERAL ASSEMBLY. 6
(I) THE DEPARTMENT , THE MARYLAND ENERGY ADMINISTRATION , AND 7
OTHER STATE AGENCIES SHALL APPLY FOR ALL FEDERA L FUNDING THAT MAY 8
BECOME AVAILABLE TO CARRY OUT THIS SECTI ON. 9
(J) (1) THE DEPARTMENT SHALL COLL ABORATE WITH THE MEM BERS OF 10
THE TASK FORCE TO DEVELOP A PL AN, INCLUDING A BUDGET , A TIMELINE, AND 11
POTENTIAL FUNDING SO URCES, TO PROVIDE ENERGY EF FICIENCY RETROFITS T O 12
ALL LOW–INCOME HOUSEHOLDS BY 2031. 13
(2) THE DEPARTMENT , IN COLLABORATION WIT H THE TASK FORCE, 14
SHALL SUBMIT THE PLA N TO THE GENERAL ASSEMBLY, IN ACCORDANCE WITH § 15
2–1257 OF THE STATE GOVERNMENT ARTICLE, ON OR BEFORE DECEMBER 1, 2023. 16
7–224. 7–225. 17
(A) AS SOON AS POSSIBLE I N 2023, AND AT LEAST 8 MONTHS BEFORE THE 18
FILING DEADLINE FOR PLANS AFTER 2023, THE COMMISSION SHALL ISSU E AN 19
ORDER THAT FULLY ALL OCATES AMONG ELECTRI C COMPANIES , GAS COMPANIES , 20
AND THE DEPARTMENT THE TOTAL AMOUNT OF THE OVERAL L STATEW IDE 21
GREENHOUSE GAS EMISS IONS REDUCTION TARGE T DETERMINED UNDER § 7–223(B) 22
OF THIS SUBTITLE AND THE GREENHOUSE GAS E MISSIONS REDUCTIONS SPECIFIED 23
IN § 7–224(A)(2) OF THIS SUBTITLE. 24
(B) (1) (I) ON OR BEFORE BEGINNING ON JULY 1, 2023, AND ON OR 25
BEFORE JULY 1 EVERY 3 YEARS THEREAFTER , EACH ELECTRIC COMPAN Y, AND 26
EACH GAS COMPANY THAT SUBMITTED A PLA N FOR ACHIEVING ELEC TRICITY 27
SAVINGS AND DEMAND R EDUCTION TARGETS TO THE COMMISSION BEFORE JULY 1, 28
2023, AND THE DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT SHALL 29
CONSULT WITH THE TEC HNICAL STAFF OF THE COMMISSION, THE OFFICE OF 30
PEOPLE’S COUNSEL, THE MARYLAND ENERGY ADMINISTRATION , AND THE 31
DEPARTMENT OF THE ENVIRONMENT REGARDING THE DESIGN AND ADEQU ACY OF 32
ITS PLANS FOR ACHIEV ING THE EFFICIENT USE AN D CONSERVA TION OF ENERGY IN 33
SUPPORT OF THE GREENHOUSE GAS E MISSIONS REDUCTION GOALS AND TARGETS 34
SPECIFIED IN §§ 2–1201 AND 2–1204.1 OF THE ENVIRONMENT ARTICLE AND SET 35
ESTABLISHED BY THE COMMISSION UNDER § 7–223(A) OF THIS SUBTITLE AND 36
SPECIFIED IN § 7–224(A)(2) OF THIS SUBTITLE. 37 HOUSE BILL 1035 15
(II) ON OR BEFORE OCTOBER 1, 2023, AND ON OR BEFORE JULY 1
1 EVERY 3 YEARS THEREAFTER , EACH ELECTRIC COMPAN Y AND EACH GAS COMPA NY 2
THAT DID NOT SUBMIT A PLAN FOR ACHIEVING ELECTRICITY SAVINGS AND DEMAND 3
REDUCTION TARGETS TO THE COMMISSION BE FORE JULY 1, 2023, SHALL COMPLY 4
WITH THE CONSULTING REQUIREMENTS UNDER S UBPARAGRAPH (I) OF THIS 5
PARAGRAPH . 6
(2) EACH ELECTRIC COMPANY , EACH GAS COMPANY , AND THE 7
DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT SHALL PROVIDE THE 8
TECHNICAL STAFF OF T HE COMMISSION, THE OFFICE OF PEOPLE’S COUNSEL, THE 9
MARYLAND ENERGY ADMINISTRATION , AND THE DEPARTMENT OF THE 10
ENVIRONMENT WITH ANY ADDITIONAL INFORMATI ON REGARDING ITS PLA N, AS 11
REQUESTED . 12
(B) (C) (1) (I) ON OR BEFORE SEPTEMBER 1, 2023, AND ON OR 13
BEFORE SEPTEMBER 1 EVERY 3 YEARS THEREAFTER , AN EACH ELECTRIC COMPANY , 14
A AND EACH GAS COMPANY THAT SUBMITTED A PLA N FOR ACHIEVING ELECTRICIT Y 15
SAVINGS AND DEMAND R EDUCTION TARGETS TO THE COMMISSION BEFORE JULY 1, 16
2023, AND THE DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPME NT SHALL 17
SUBMIT ITS PLAN TO T HE COMMISSION. 18
(II) ON OR BEFORE DECEMBER 1, 2023, AND ON OR BEFORE 19
SEPTEMBER 1 EVERY 3 YEARS THEREAFTER , EACH ELECTRIC COMPAN Y AND EACH 20
GAS COMPANY THAT DID NOT SUBMIT A PLAN FO R ACHIEVING ELECTRIC ITY SAVINGS 21
AND DEMAND REDUCTION TARGETS TO THE COMMISSION BEFORE JULY 1, 2023, 22
SHALL SUBMIT ITS PLA N TO THE COMMISSION. 23
(2) EACH PLAN SHALL DETAI L A PROPOSAL FOR ACH IEVING THE 24
ENERGY EFFICIENCY , CONSERVATION , AND GREENHOUSE GAS EMISS IONS 25
REDUCTION TARGETS FO R 3 SUBSEQUENT C ALENDAR YEARS . 26
(3) (I) EACH PLAN SHALL : 27
1. INCLUDE: 28
A. A DESCRIPTION OF THE PROPOSED PROGRAMS AN D 29
SERVICES; 30
B. ANTICIPATED COSTS ; 31
C. PROJECTED BENEFITS , INCLUDING GREENHOUSE 32
GAS EMISSIONS REDUCT IONS, ELECTRICITY SAVINGS , AND GAS SAVINGS; AND 33 16 HOUSE BILL 1035
D. ANY OTHER INFORMATIO N REQUESTED BY THE 1
COMMISSION; AND 2
2. ADDRESS RESIDENTIAL , COMMERCIAL , AND 3
INDUSTRIAL SECTORS A S APPROPRIATE , INCLUDING LOW –INCOME COMMUNITIES 4
AND LOW– TO MODERATE –INCOME COMMUNITIES . 5
(II) A PLAN OF THE DEPARTMENT OF HOUSING AND 6
COMMUNITY DEVELOPMENT SHALL INCLUDE A DEFI NITION OF “LOW– OR 7
MODERATE–INCOME INDIVIDUAL ” TO BE USED IN THE PR OCUREMENT OR 8
PROVISION OF ENERGY EFFICIENCY, CONSERVATION , AND GREENHOUSE GAS 9
EMISSIONS REDUCTION PROGRAMS AND SERVICE S. 10
(C) (D) (1) THE COMMISSION SHALL REVI EW THE PLAN OF EACH 11
ELECTRIC COMPANY , EACH GAS COMPANY , AND THE DEPARTMENT OF HOUSING 12
AND COMMUNITY DEVELOPMENT TO DETERMINE WHETHER THE PLAN IS ADEQUATE 13
AND COST –EFFECTIVE IN ACHIEVI NG THE GREENHOUSE GA S EMISSIONS 14
REDUCTION TARGETS SET ESTABLISHED BY THE COMMISSION UNDER § 7–223(A) § 15
7–223(B) OF THIS SUBTITLE AND SPECIFIED IN § 7–224(A)(2) OF THIS SUBTITLE. 16
(2) THE COMMISSION SHALL CONS IDER ANY WRITTEN FIN DINGS 17
PROVIDED BY THE MARYLAND ENERGY ADMINISTRATION AND, THE DEPARTMENT 18
OF THE ENVIRONMENT , AND THE OFFICE OF PEOPLE’S COUNSEL REGARDING THE 19
DESIGN AND ADEQUACY OF THE PLAN. 20
(3) IN SUBJECT TO PARAGRAPH (4) OF THIS SUBSECTION , IN 21
APPROVING, MODIFYING, OR DENYING THE PLAN OF AN ELECT RIC COMPANY OR A 22
GAS COMPANY , THE COMMISSION SHALL CONS IDER: 23
(I) THE COST–EFFECTIVENESS OF THE RESIDENTIAL AND, 24
COMMERCIAL , AND INDUSTRIAL SECTOR SUBPORTFOLIOS BY USING: 25
1. THE PRIMARY STATE JURISDICTION –SPECIFIC TEST, 26
AS DEVELOPED, UPDATED, OR APPROVED BY THE COMMISSION, TO DETERMINE THE 27
COST–EFFECTIVENESS OF A P ROGRAM OR SERVICE PR OSPECTIVELY, INCLUDING 28
CONSIDERATION OF : 29
A. PARTICIPANT NONENERG Y BENEFITS; 30
B. UTILITY NONENERGY BE NEFITS; AND 31
C. SOCIETAL NONENERGY BENEFITS; AND 32 HOUSE BILL 1035 17
2. A TOTAL RESOURCE COS T TEST TO COMPARE TH E 1
ELECTRICITY SAVINGS AND DEMAND REDUCTION TARGETS OF THE PROGR AM OR 2
SERVICE WITH THE RES ULTS OF SIMILAR PROG RAMS OR SERVICES IMP LEMENTED 3
IN OTHER JURISDICTIO NS, INCLUDING: 4
A. PARTICIPANT NONENERGY BENEFITS ; AND 5
B. UTILITY NONENERGY BE NEFITS; 6
(II) THE IMPACT ON RATES OF EACH RATEPAYER CL ASS; 7
(III) THE IMPACT ON JOBS ; 8
(IV) THE IMPACT ON THE EN VIRONMENT; AND 9
(V) THE IMPACT ON THE GR EENHOUSE GAS EMISSIO NS 10
REDUCTION TARGETS SP ECIFIED IN §§ 2–1201 AND 2–1204.1 OF THE ENVIRONMENT 11
ARTICLE AND SET, ESTABLISHED BY THE COMMISSION UNDER § 7–223(A) § 7–223(B) 12
OF THIS SUBTITLE, AND SPECIFIED IN § 7–224(A)(2) OF THIS SUBTITLE. 13
(4) NONENERGY BENEFITS CO NSIDERED UNDER PARAG RAPH (3) OF 14
THIS SUBSECTION SHAL L BE QUANTIFIABLE AN D DIRECTLY RELATED T O A 15
PROGRAM OR SERVICE . 16
(4) (5) (I) IN APPROVING , MODIFYING, OR DENYING THE PLAN 17
OF THE DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT, THE 18
COMMISSION SHALL CONS IDER: 19
1. SUBJECT TO SUBPARAGR APH (II) OF THIS 20
PARAGRAPH , THE COST–EFFECTIVENESS OF THE PLAN BY USING THE PR IMARY 21
STATE JURISDICTION –SPECIFIC TEST, AS DEVELOPED , UPDATED, OR APPROVED BY 22
THE COMMISSION; 23
2. THE IMPACT ON RATES OF EACH RAT EPAYER CLASS; 24
3. THE IMPACT ON JOBS ; 25
4. THE IMPACT ON THE EN VIRONMENT; AND 26
5. THE IMPACT ON THE GR EENHOUSE GAS EMISSIO NS 27
TARGETS SPECIFIED IN §§ 2–1201 AND 2–1204.1 OF THE ENVIRONMENT ARTICLE 28 18 HOUSE BILL 1035
AND SET, ESTABLISHED BY THE COMMISSION UNDER § 7–223(A) § 7–223(B) OF THIS 1
SUBTITLE, AND SPECIFIED IN § 7–224(A)(2) OF THIS SUBTITLE. 2
(II) THE PROGRAMS AND SERV ICES OFFERED BY THE 3
DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT ARE NOT REQUIRED 4
TO BE COST–EFFECTIVE. 5
(D) (E) THE DEPARTMENT OF THE ENVIRONMENT SHALL PRE PARE AND 6
SUBMIT TO THE COMMISSION AN ANALYSI S REGARDING THE ADEQ UACY OF THE 7
PLAN IN SUPPORTING T HE STATE’S GREENHOUSE GAS EMI SSIONS REDUCTION 8
GOALS SPECIFIED IN §§ 2–1201 AND 2–1204.1 OF THE ENVIRONMENT ARTICLE AND 9
SET, ESTABLISHED BY THE COMMISSION UNDER § 7–223(A) § 7–223(B) OF THIS 10
SUBTITLE, AND SPECIFIED IN § 7–224(A)(2) OF THIS SUBTITLE. 11
7–225. 7–226. 12
(A) (1) EACH ELECTRIC COMPANY , EACH GAS COMPANY , AND THE 13
DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPME NT SHALL PROVIDE TO 14
THE COMMISSION EVERY 6 MONTHS AN UPDATE ON PLAN IMPLEMENTATION AND 15
PROGRESS MADE TOWARD ACHIEVING THE EFFICIENT USE AN D CONSERVATION OF 16
ENERGY IN SUPPORT OF THE GREENHOUSE GAS E MISSIONS REDUCTION GOALS AND 17
TARGETS SPECIFIED IN §§ 2–1201 AND 2–1204.1 OF THE ENVIRONMENT ARTICLE 18
AND SET ESTABLISHED BY THE COMMISSION UNDER § 7–223(A) § 7–223(B) OF THIS 19
SUBTITLE AND SPECIFIED IN § 7–224(A)(2) OF THIS SUBTITLE. 20
(2) THE COMMISSION SHALL MONI TOR AND ANALYZE THE IMPACT OF 21
EACH PROGRAM AND SER VICE TO ENSURE THAT T HE OUTCOME OF EACH P ROGRAM 22
AND SERVICE PROVIDES THE BEST POSSIBLE RE SULTS. 23
(3) IN MONITORING AND ANA LYZING THE IMPACT OF A PROGRAM OR 24
SERVICE UNDER PARAGR APH (2) OF THIS SUBSECTION , IF THE COMMISSION FINDS 25
THAT THE OUTCOME OF THE PROGRAM OR SERVICE MAY NOT BE PROVIDING THE 26
BEST POSSIBLE RESULT S, THE COMMISSION SHALL DIRE CT THE ELECTRIC 27
COMPANY, THE GAS COMPANY , OR THE DEPARTMENT OF HOUSING AND 28
COMMUNITY DEVELOPMENT TO INCLUDE IN ITS NE XT UPDATE UNDER PARA GRAPH 29
(1) OF THIS SUBSECTION S PECIFIC MEASURES TO ADDRESS THE FINDINGS . 30
(B) (1) AT LEAST ONCE EACH YE AR, EACH ELECTRIC COMPAN Y AND EACH 31
GAS COMPANY SHALL NO TIFY AFFECTED CUSTOM ERS OF THE ENERGY EF FICIENCY 32
AND CONSERVATION AND GREENHOUSE GAS R EDUCTION CHARGES IMPOSED AND 33
BENEFITS CONF ERRED. 34
HOUSE BILL 1035 19
(2) THE NOTICE SHALL BE P ROVIDED BY PUBLICATI ON ON THE 1
COMPANY’S WEBSITE AND INCLUS ION WITH BILLING INF ORMATION SUCH AS A B ILL 2
INSERT OR BILL MESSA GE. 3
(C) ON OR BEFORE MAY 1 EACH YEAR, THE COMMISSION SHALL REPO RT, 4
IN ACCORDANCE WITH § 2–1257 OF THE STATE GOVERNMENT ARTICLE, TO THE 5
GENERAL ASSEMBLY ON: 6
(1) THE STATUS OF PROGRA MS AND SERVICES TO ENCOURAGE AND 7
PROMOTE ENERGY EFFIC IENCY, CONSERVATION , AND GREENHOUSE GAS E MISSIONS 8
REDUCTIONS APPROVED UNDER THIS SUBTITLE, INCLUDING AN EVALUAT ION OF 9
THE IMPACT OF THE PR OGRAMS AND SERVICES THAT ARE DIRECTED TO 10
LOW–INCOME COMMUNITIES , LOW– TO MODERATE –INCOME COMMUNITIES T O THE 11
EXTENT POSSIBLE , AND OTHER PARTICULAR CLASSES OF RATEPAYER S; AND 12
(2) A RECOMMENDATION FOR THE APPROPRIATE FUND ING LEVEL TO 13
ADEQUATELY FUND THES E PROGRAMS AND SERVI CES; 14
(3) THE PER CAPITA ELECT RICITY CONSUMPTION A ND THE WINTER 15
AND SUMMER PEAK DEMA ND FOR THE PREVIOUS CALENDAR YEAR ; AND 16
(4) BEGINNING MAY 1, 2025, PROGRESS MADE TOWARD S REDUCING 17
GREENHOUSE GAS EMISS IONS IN ACCORDANCE WITH §§ 7–223 AND 7–224 OF THIS 18
SUBTITLE. 19
7–226. 7–227. 20
(A) NOTWITHSTANDING ANY O THER LAW, THE COMMISSION MAY NOT 21
REQUIRE OR ALLOW AN ELECTRIC COMPANY OR A GAS COMPANY TO REQ UIRE A 22
CUSTOMER TO AUTHORIZ E THE ELECTRIC COMPA NY OR GAS COMPANY TO CONTROL 23
THE AMOUNT OF THE CU STOMER’S ELECTRICITY USAGE OR GAS USAGE. 24
(B) A CUSTOMER MAY PROVIDE CONSENT TO PARTICIPA TE IN A PROGRAM 25
OF AN ELECTRIC COMPA NY OR A GAS COMPANY PROVIDING DIRECT LOA D CONTROL 26
OR OTHER UTILITY MAN IPULATION OF A CUSTO MER’S ELECTRICITY OR GAS USAGE . 27
7–228. 28
(A) EACH ELECTRIC COMPANY AND EACH GAS COMPANY SHALL PROMOTE 29
THE AVAILABILITY OF FEDERAL AND STATE REBATES , TAX CREDITS , AND 30
INCENTIVES THAT CAN BE USED TO SUPPORT E NERGY EFFICIENCY INV ESTMENTS, 31
ENERGY EFFICIENT AND NON–FOSSIL–FUEL–POWERED APPLIANCES A ND COOKING 32 20 HOUSE BILL 1035
EQUIPMENT, BREAKER BOX UPGRADES , AND PORTABLE HEATING AND COOLING 1
EQUIPMENT. 2
(B) THE COMMISSION SHALL ADOP T REGULATIONS TO CAR RY OUT THIS 3
SECTION. 4
7–315. 5
(A) IN THIS SECTION, “LOW–EMISSIONS HOUSING ” MEANS HOUSING T HAT IS 6
ENGINEERED TO OR USE S MEASURES THAT REDU CE GREENHOUSE GAS EM ISSIONS. 7
(B) THERE IS A GREEN AND HEALTHY TASK FORCE. 8
(C) THE TASK FORCE CONSISTS OF THE FOLLOWING MEMBERS : 9
(1) TWO MEMBERS OF THE SENATE OF MARYLAND, APPOINTED BY 10
THE PRESIDENT OF THE SENATE; 11
(2) TWO MEMBERS OF THE HOUSE OF DELEGATES, APPOINTED BY 12
THE SPEAKER OF THE HOUSE; 13
(3) THE SECRETARY OF HOUSING AND COMMUNITY DEVELOPMENT , 14
OR THE SECRETARY’S DESIGNEE; 15
(4) THE SECRETARY OF HUMAN SERVICES, OR THE SECRETARY’S 16
DESIGNEE; 17
(5) THE DIRECTOR OF THE MARYLAND ENERGY ADMINISTRATION , 18
OR THE DIRECTOR’S DESIGNEE; 19
(6) ONE REPRESENTATIVE O F THE OFFICE OF PEOPLE’S COUNSEL, 20
DESIGNATED BY THE PEOPLE’S COUNSEL; AND 21
(7) AS APPOINTED BY THE CHAIR OF THE TASK FORCE: 22
(I) ONE REPR ESENTATIVE OF THE MARYLAND AFFORDABLE 23
HOUSING TRUST; 24
(II) ONE REPRESENTATIVE O F THE GREEN AND HEALTHY 25
HOMES INITIATIVE; 26
(III) ONE REPRESENTATIVE O F MARYLAND ENERGY 27
EFFICIENCY ADVOCATES; 28 HOUSE BILL 1035 21
(IV) ONE MEMBER WHO IS AN EXPERT IN PUBLIC HEA LTH; 1
(V) ONE MEMBER FROM A CO MMUNITY CONCERNED WI TH 2
ENVIRONMENTAL JUSTIC E; 3
(VI) ONE MEMBER WHO OWNS OR DEVELOPS AFFORDAB LE 4
HOUSING; 5
(VII) ONE MEMBER WHO HAS R ECEIVED ASSISTANCE F ROM A 6
LOW–INCOME PROGRAM THAT DELIVERS ENERGY EFFI CIENCY MEASURES ; AND 7
(VIII) OTHER MEMBERS AS DET ERMINED BY THE CHAIR OF THE 8
TASK FORCE. 9
(D) THE SECRETARY OF HOUSING AND COMMUNITY DEVELOPMENT , OR 10
THE SECRETARY’S DESIGNEE, SHALL SERVE AS CHAIR OF THE TASK FORCE. 11
(E) THE DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT 12
SHALL PROVIDE STAFF FOR TH E TASK FORCE. 13
(F) A MEMBER OF THE TASK FORCE: 14
(1) MAY NOT RECEIVE COMP ENSATION AS A MEMBER OF THE TASK 15
FORCE; BUT 16
(2) IS ENTITLED TO REIMB URSEMENT FOR EXPENSE S UNDER THE 17
STANDARD STATE TRAVEL REGULATIONS, AS PROVIDED IN THE STATE BUDGET. 18
(G) THE TASK FORCE SHALL: 19
(1) BEGINNING JULY 1, 2023, MEET QUARTERLY FOR A PERIOD OF 3 20
YEARS; 21
(2) ADVANCE THE ALIGNMEN T, BRANDING, AND COORDINATION OF 22
RESOURCES TO MORE EF FECTIVELY DELIVER GR EEN AND HEALTHY HOUS ING FOR 23
LOW–INCOME HOUSEHOL DS IN THE STATE; 24
(3) EXAMINE THE PUBLIC A ND PRIVATE RESOURCES NEEDED TO 25
ADDRESS THE HOUSING NEEDS OF LOW –INCOME COMMUNITIES ; 26
22 HOUSE BILL 1035
(4) DEVELOP POLICY AND S TATUTORY RECOMMENDAT IONS TO 1
ELIMINATE BARRIERS T O LOW–INCOME HOUSEHOLDS AC HIEVING HEALTHY , 2
ENERGY–EFFICIENT, AFFORDABLE , AND LOW–EMISSIONS HOUSING ; AND 3
(5) ENGAGE WITH INTEREST ED PARTIES AND COLLA BORATE WITH 4
OTHER ENTITIES THAT CAN HELP ADVANCE THE GOALS OF THE TASK FORCE, 5
INCLUDING EXPERTS IN THE FIELD OF HEALTHY , ENERGY–EFFICIENT, AND 6
LOW–EMISSIONS HOUSING. 7
(H) ON OR BEFORE JULY 1, 2024, AND EACH JULY 1 THROUGH 2027, THE 8
TASK FORCE SHALL REPORT IT S FINDINGS AND RECOM MENDATIONS TO THE 9
SECRETARY OF HEALTH, THE SECRETARY OF THE ENVIRONMENT , THE 10
COMMISSION, THE GOVERNOR, AND, IN ACCORDANCE WITH § 2–1257 OF THE STATE 11
GOVERNMENT ARTICLE, THE GENERAL ASSEMBLY. 12
7–510.3. 13
(j) (2) A community choice aggregator, in consultation with all 14
investor–owned electric companies whose service territories include all or part of the county 15
and the Department of Housing and Community Development, may promote energy 16
efficiency programs that are: 17
(i) offered by the investor–owned electric companies; or 18
(ii) filed by the investor–owned electric companies with the 19
Commission for its approval in accordance with [§ 7–211] SUBTITLE 2, PART II of this 20
title. 21
Article – State Government 22
9–20B–05. 23
(f) The Administration shall use the Fund: 24
(4) to provide rate relief by offsetting electricity rates of residential 25
customers, including an offset of surcharges imposed on ratepayers under [§ 7–211] TITLE 26
7, SUBTITLE 2, PART II of the Public Utilities Article; 27
SECTION 4. AND BE IT FURTHER ENACTED, That: 28
(a) The certification agency designated by the Board of Public Works under § 29
14–303(b) of the State Finance and Procurement Article and the Governor’s Office of Small, 30
Minority, and Women Business Affairs, in consultation with the Department of Housing 31
and Community Development, the Office of the Attorney General, and the General 32
Assembly, shall initiate a study regarding the energy efficiency and conservation services 33 HOUSE BILL 1035 23
used by the Department of Housing and Community Development to evaluate whether the 1
enactment of remedial measures to assist minority and women–owned businesses in the 2
energy efficiency and conservation services industry and market would comply with the 3
U.S. Supreme Court decision in City of Richmond v. J. A. Croson Co., 488 U.S. 469, and any 4
subsequent federal or constitutional requirements. 5
(b) The certification agency and the Governor’s Office of Small, Minority, and 6
Women Business Affairs shall submit the findings of the study required under subsection 7
(a) of this section to the Legislative Policy Committee, in accordance with § 2–1257 of the 8
State Government Article, on or before December 31, 2025, so that the Maryland General 9
Assembly may review the findings before the 2026 legislative session. 10
SECTION 4. 5. AND BE IT FURTHER ENACTED, That the publisher of the 11
Annotated Code of Maryland, in consultation with and subject to the approval of the 12
Department of Legislative Services, shall correct, with no further action required by the 13
General Assembly, cross–references and terminology rendered incorrect by this Act. The 14
publisher shall adequately describe any correction that is made in an editor’s note following 15
the section affected. 16
SECTION 5. 6. AND BE IT FURTHER ENACTED, That this Act shall take effect 17
July 1, 2023. 18
Approved:
________________________________________________________________________________
Governor.
________________________________________________________________________________
Speaker of the House of Delegates.
________________________________________________________________________________
President of the Senate.