EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW. [Brackets] indicate matter deleted from existing law. *hb0840* HOUSE BILL 840 M3 3lr1377 HB 880/22 – ENT & ECM CF SB 743 By: Delegate Boyce Introduced and read first time: February 9, 2023 Assigned to: Environment and Transportation and Economic Matters A BILL ENTITLED AN ACT concerning 1 Climate, Labor, and Environmental Equity Act of 2023 2 FOR the purpose of requiring the Department of the Environment to conduct a certain 3 evaluation regarding the impact of issuing an approval for certain environmental 4 permits; requiring the Department to provide opportunities for certain 5 communication with certain residents in a certain manner; altering certain reporting 6 requirements for certain State agencies; and generally relating to the impact of 7 actions on climate, labor and employment, and environmental justice and equity. 8 BY repealing and reenacting, without amendments, 9 Article – Environment 10 Section 1–601(a), 1–701(a)(1), (5), (7), and (8), and 1–702(a)(1) and (b) 11 Annotated Code of Maryland 12 (2013 Replacement Volume and 2022 Supplement) 13 BY adding to 14 Article – Environment 15 Section 1–7A–01 through 1–7A–05 to be under the new subtitle “Subtitle 7A. Impact 16 of Environmental Permits on Climate, Labor, and Environmental Equity” 17 Annotated Code of Maryland 18 (2013 Replacement Volume and 2022 Supplement) 19 BY repealing and reenacting, with amendments, 20 Article – Environment 21 Section 2–1305 22 Annotated Code of Maryland 23 (2013 Replacement Volume and 2022 Supplement) 24 SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 25 That the Laws of Maryland read as follows: 26 2 HOUSE BILL 840 Article – Environment 1 1–601. 2 (a) Permits issued by the Department under the following sections shall be issued 3 in accordance with this subtitle: 4 (1) Air quality control permits to construct subject to § 2–404 of this article; 5 (2) Permits to install, materially alter, or materially extend landfill 6 systems, incinerators for public use, or rubble landfills subject to § 9–209 of this article; 7 (3) Permits to discharge pollutants to waters of the State issued pursuant 8 to § 9–323 of this article; 9 (4) Permits to install, materially alter, or materially extend a structure 10 used for storage or distribution of any type of sewage sludge issued, renewed, or amended 11 pursuant to § 9–234.1 or § 9–238 of this article; 12 (5) Permits to own, operate, establish, or maintain a controlled hazardous 13 substance facility issued pursuant to § 7–232 of this article; 14 (6) Permits to own, operate, or maintain a hazardous material facility 15 issued pursuant to § 7–103 of this article; and 16 (7) Permits to own, operate, establish, or maintain a low–level nuclear 17 waste facility issued pursuant to § 7–233 of this article. 18 1–701. 19 (a) (1) In this section the following words have the meanings indicated. 20 (5) “Environmental justice” means equal protection from environmental 21 and public health hazards for all people regardless of race, income, culture, and social 22 status. 23 (7) “Overburdened community” means any census tract for which three or 24 more of the following environmental health indicators are above the 75th percentile 25 statewide: 26 (i) Particulate matter (PM) 2.5; 27 (ii) Ozone; 28 (iii) National Air Toxics Assessment (NATA) diesel PM; 29 (iv) NATA cancer risk; 30 HOUSE BILL 840 3 (v) NATA respiratory hazard index; 1 (vi) Traffic proximity; 2 (vii) Lead paint indicator; 3 (viii) National Priorities List Superfund site proximity; 4 (ix) Risk Management Plan facility proximity; 5 (x) Hazardous waste proximity; 6 (xi) Wastewater discharge indicator; 7 (xii) Proximity to a Concentrated Animal Feeding Operation (CAFO); 8 (xiii) Percent of the population lacking broadband coverage; 9 (xiv) Asthma emergency room discharges; 10 (xv) Myocardial infarction discharges; 11 (xvi) Low–birth–weight infants; 12 (xvii) Proximity to emitting power plants; 13 (xviii) Proximity to a Toxic Release Inventory (TRI) facility; 14 (xix) Proximity to a brownfields site; 15 (xx) Proximity to mining operations; and 16 (xxi) Proximity to a hazardous waste landfill. 17 (8) “Underserved community” means any census tract in which, according 18 to the most recent U.S. Census Bureau Survey: 19 (i) At least 25% of the residents qualify as low–income; 20 (ii) At least 50% of the residents identify as nonwhite; or 21 (iii) At least 15% of the residents have limited English proficiency. 22 1–702. 23 4 HOUSE BILL 840 (a) On or before December 31, 2023, the Department, in consultation with the 1 Commission on Environmental Justice and Sustainable Communities, shall: 2 (1) Subject to subsection (b) of this section, adopt a methodology for 3 identifying communities disproportionately affected by climate impacts; 4 (b) In evaluating methodologies under subsection (a)(1) of this section, the 5 Department shall, at a minimum, include: 6 (1) Underserved communities; 7 (2) Overburdened communities; and 8 (3) Areas that are vulnerable to climate impacts, such as flooding, storm 9 surges, and urban heat island effects, due to low levels of tree coverage, high levels of 10 impervious surfaces, or other factors. 11 SUBTITLE 7A. IMPACT OF ENVIRONMENTAL PERMITS ON CLIMATE, LABOR, AND 12 ENVIRONMENTAL EQUITY. 13 1–7A–01. 14 (A) IN THIS SUBTITLE THE FOLLOWING WORDS HAVE THE MEANINGS 15 INDICATED. 16 (B) “APPLICANT” MEANS A PERSON APPLYING FO R A PERMIT LISTED 17 UNDER § 1–601(A) OF THIS TITLE. 18 (C) “ENVIRONMENTAL JUSTICE ” HAS THE MEANING STAT ED IN § 1–701 OF 19 THIS TITLE. 20 (D) “OVERBURDENED COMMUNIT Y” HAS THE MEANING STAT ED IN § 1–701 21 OF THIS TITLE. 22 (E) “PERMIT” MEANS A PERMIT LISTE D UNDER § 1–601(A) OF THIS TITLE. 23 (F) “UNDERSERVED COMMUNITY ” HAS THE MEANING STAT ED IN § 1–701 OF 24 THIS TITLE. 25 1–7A–02. 26 (A) IF, AFTER CONDUCTING AN EJ SCORE REVIEW REQUIRED UNDER § 27 1–601.1(B) OF THIS TITLE, THE DEPARTMENT DETERMINES THAT ISSUING AN 28 APPROVAL FOR A PERMIT MAY IMPACT AN UNDERSERVED COMMUNITY OR AN 29 OVERBURDENED COMMUNITY , THE DEPARTMENT SHALL CONDUCT A CLIMATE AND 30 HOUSE BILL 840 5 ENVIRONMENTAL EQUITY EVALUATION OF THE PERMIT. 1 (B) THE CLIMATE AND ENVIR ONMENTAL EQUITY EVAL UATION REQUIRED IN 2 THIS SECTION MAY INC LUDE AN ANALYSIS OF : 3 (1) THE DEMOGRAPHIC DATA OF THE AFFECTED COMM UNITY, 4 INCLUDING POTENTIAL VULNERABILITIES WITH IN THE COMMUNITY ; 5 (2) EXISTING ENVIRONMENTAL AND CL IMATE DATA REGARDING THE 6 AFFECTED COMMUNITY , INCLUDING MONITORING , MODELING, OR ANY OTHER DATA 7 DEEMED APPROPRIATE ; 8 (3) THE APPLICANT FACILIT Y’S POTENTIAL CONTRIBU TION TO 9 GREENHOUSE GAS EMISS IONS; 10 (4) THE APPLICANT FACILIT Y’S COMPLIANCE RECORD; 11 (5) EXISTING PUBLIC HEALT H DATA REGARDING THE AFFECTED 12 COMMUNITY; 13 (6) POTENTIAL CHEMICAL AN D NONCHEMICAL STRESS ORS THAT THE 14 AFFECTED COMMUNITY W ILL BE EXPOSED TO AN D THE EFFECT OF THOS E STRESSORS 15 ON THE COMMUNITY ’S HEALTH AND WELL –BEING; 16 (7) THE CUMULATIVE IMPACT OF POLLUTION IN THE AFFECTED 17 COMMUNITY IF THE PER MIT IS APPROVED; AND 18 (8) POTENTIAL METHODS TO MINIMIZE OR MITIGATE POTENTIAL 19 ADVERSE EFFECTS IN T HE AFFECTED COMMUNIT Y. 20 (C) IN ADDITION TO THE EV ALUATION REQUIRED BY THIS SECTION, THE 21 DEPARTMENT, IN COORDINATION WITH THE MARYLAND DEPARTMENT OF HEALTH, 22 MAY CONDUCT A HEALTH IMPACT ASSESSMENT OF THE PERMIT. 23 1–7A–03. 24 (A) THE DEPARTMENT SHALL REGULARLY PROVIDE OP PORTUNITIES FOR 25 RESIDENTS OF THE STATE TO OPT IN TO TEXT, PHONE, E–MAIL, OR REGULAR MAIL 26 NOTIFICATIONS REGARD ING ANY FACILITY WIT H A PENDING OR FINAL PERMIT 27 APPROVAL IN OR ADJACENT TO THE RESIDENT’S CENSUS TRACT . 28 (B) (1) IF AN APPLICANT IS AP PLYING FOR MORE THAN ONE PERMIT FOR 29 THE SAME FACILITY , THE DEPARTMENT SHALL COMPLY WITH THE REQUIREMENTS 30 6 HOUSE BILL 840 UNDER § 1–7A–02 OF THIS SUBTITLE ONLY ONCE UNLESS THE DEPARTMENT 1 DETERMINES THAT MORE THAN ONE EVALUATION IS NECESSARY DUE TO THE 2 COMPLEXITY OF THE AP PLICATIONS. 3 (2) PARAGRAPH (1) OF THIS SUBSECTION M AY NOT BE CONSTRUED 4 TO LIMIT THE AUTHORITY OF THE DEPARTMENT TO HOLD OR REQUIRE ADDITIONAL 5 PUBLIC HEARINGS FOR A PERMIT. 6 (C) THE DEPARTMENT MAY DENY OR ALTER A DECISION OR AMEND THE 7 CONDITIONS UNDER A PENDI NG PERMIT BASED ON T HE DEPARTMENT ’S FINDINGS 8 UNDER THIS SUBTITLE. 9 1–7A–04. 10 IN ADDITION TO ANY OT HER FEE AUTHORIZED B Y LAW OR REGULATION , THE 11 DEPARTMENT MAY CHARGE A REASONABLE FEE TO COVER THE DEPARTMENT ’S 12 COSTS ASSOCIATED WIT H THE IMPLEMENTATION OF THIS SUBTITLE, INCLUDING 13 COSTS TO PROVIDE TEC HNICAL ASSISTANCE TO PERMIT APPLICANTS AN D 14 RESIDENTS OF RELEVANT CENSUS TRAC TS AS NEEDED TO COMPLY WITH THIS 15 SUBTITLE. 16 1–7A–05. 17 THE DEPARTMENT SHALL ADOP T REGULATIONS TO CARRY OUT THIS 18 SUBTITLE. 19 2–1305. 20 (a) (1) Each State agency shall review its planning, regulatory, and fiscal 21 programs to identify and recommend actions to more fully integrate the consideration of 22 Maryland’s greenhouse gas reduction goal and the impacts of climate change, INCLUDING 23 GEOGRAPHIC IMPACT S. 24 (2) The review shall include the consideration of: 25 (i) Sea level rise; 26 (ii) Storm surges and flooding; 27 (iii) Increased precipitation and temperature; [and] 28 (iv) Extreme weather events; AND 29 HOUSE BILL 840 7 (V) WHETHER AGENCY DECISI ONS CONTRIBUTE TO LOCAL 1 DETERIORATION OF PUB LIC HEALTH OR INCREASES IN POLLUTI ON ASSOCIATED 2 WITH HEALTH AND ENVI RONMENTAL BURDENS FO R UNDERSERVED AND 3 OVERBURDENED COMMUNITIES . 4 (B) IN ADDITION TO THE RE VIEW REQUIRED UNDER SUBSECTION (A) OF 5 THIS SECTION, THE MARYLAND DEPARTMENT OF LABOR SHALL ANNUALLY REPORT 6 WHETHER AGENCY DECISIONS SUP PORT BUSINESSES THAT PROMOTE EQUITABLE 7 LABOR AND WAGE STAND ARDS, INCLUDING CONSIDERAT ION OF WHETHER THE 8 AGENCY SUPPORTS BUSI NESSES THAT: 9 (1) PAY THE AREA PREVAILI NG WAGE STANDARD FOR EACH TRADE, 10 INCLUDING THE WAGES AND FRINGE BENEFITS PER TRADE; 11 (2) ARE IN GOOD STANDING WITH ALL STATE REPORTING AND 12 COMPLIANCE REQUIREME NTS; 13 (3) PARTICIPATE IN AN APP RENTICESHIP PROGRAM REGISTERED 14 WITH THE STATE FOR EACH TRADE EMPLOYED ON A PROJEC T OR OTHER ITEM 15 ASSOCIATED WITH THE PROJECT; 16 (4) HAVE BEEN IN COMPLIAN CE WITH FEDERAL AND STATE WAGE 17 AND FAIR LABOR LAWS FOR THE IMMEDIATELY PRECEDING 3 YEARS; 18 (5) ESTABLISH AND EXECUTE A PLAN FOR OUTREACH , 19 RECRUITMENT, AND RETENTION OF RESIDENTS OF THE STATE TO PERFORM WORK 20 ON A PROJECT OR OTHE R ITEM ASSOCIATED WI TH THE PROJECT, WITH AN 21 ASPIRATIONAL GOAL OF 25% OF TOTAL WORK HOURS PERFORMED BY RESIDENTS 22 OF THE STATE, INCLUDING RESIDENTS WHO ARE: 23 (I) RETURNING CITIZENS; 24 (II) WOMEN; 25 (III) MINORITY INDIVIDUALS ; OR 26 (IV) VETERANS; 27 (6) OFFER HEALTH CARE AND RETIREMENT BENEFITS TO THE 28 EMPLOYEES WORKING ON A PROJECT OR OTHER I TEM ASSOCIATED WITH THE 29 PROJECT; AND 30 (7) MAINTAIN ALL APPROPRI ATE LICENSES IN GOOD STA NDING. 31 8 HOUSE BILL 840 [(b)] (C) Each State agency shall identify and recommend specific policy, 1 planning, regulatory, and fiscal changes to existing programs that do not currently support 2 the State’s greenhouse gas reduction efforts or address climate change, INCLUDING 3 GEOGRAPHIC IMPACTS . 4 [(c)] (D) (1) [The] ON OR BEFORE DECEMBER 1 EACH YEAR , THE 5 following State agencies shall report [annually] on the status of programs that support the 6 State’s greenhouse gas reduction efforts or address climate change, INCLUDING 7 GEOGRAPHIC IMPACTS , in accordance with § 2–1257 of the State Government Article, to 8 THE GENERAL ASSEMBLY, the Commission, and the Governor: 9 (i) The Department; 10 (ii) The Department of Agriculture; 11 (iii) The Department of General Services; 12 (iv) The Department of Housing and Community Development; 13 (v) The Department of Natural Resources; 14 (vi) The Department of Planning; 15 (vii) The Department of Transportation; 16 (viii) The Maryland Energy Administration; 17 (ix) The Maryland Insurance Administration; 18 (x) The Public Service Commission; and 19 (xi) The University of Maryland Center for Environmental Science. 20 (2) The report required [in] UNDER paragraph (1) of this subsection shall 21 include THE FOLLOWING INFORM ATION RELATING TO TH E WORK OF EACH STATE 22 AGENCY FOR THE IMMED IATELY PRECEDING 12–MONTH PERIOD: 23 (i) Program descriptions and objectives; 24 (ii) Implementation milestones, whether or not they have been met; 25 (iii) Enhancement opportunities; 26 (iv) Funding; 27 HOUSE BILL 840 9 (v) Challenges; 1 (vi) Estimated greenhouse gas emissions reductions, by program, for 2 the prior calendar year; [and] 3 (vii) AGENCY CONTRIBUTIONS OR IMPEDIMENTS TO 4 ENVIRONMENTAL JUSTIC E; AND 5 (VIII) Any other information that the agency considers relevant. 6 (3) EACH STATE AGENCY SHALL MA KE THE REPORT REQUIRED 7 UNDER PARAGRAPH (1) OF THIS SUBSECTION PUBLICLY AVAILABLE ON ITS 8 WEBSITE. 9 [(d)] (E) Each State agency, when conducting long–term planning, developing 10 policy, and drafting regulations, shall take into consideration: 11 (1) The likely climate impact of the agency’s decisions relative to 12 Maryland’s greenhouse gas emissions reduction goals; and 13 (2) The likely impact of the agency’s decisions on disproportionately 14 affected communities identified according to the methodology adopted by the Department 15 under § 1–702 of this article. 16 SECTION 2. AND BE IT FURTHER E NACTED, That this Act shall take effect 17 October 1, 2024. 18