Maryland 2023 Regular Session

Maryland House Bill HB904 Compare Versions

Only one version of the bill is available at this time.
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33 EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
44 [Brackets] indicate matter deleted from existing law.
55 *hb0904*
66
77 HOUSE BILL 904
88 M5, C5 3lr1207
99 CF SB 689
1010 By: Delegates Qi, Barve, Embry, Foley, Fraser–Hidalgo, Stewart, Vogel, Watson,
1111 and Wu
1212 Introduced and read first time: February 9, 2023
1313 Assigned to: Economic Matters
1414
1515 A BILL ENTITLED
1616
1717 AN ACT concerning 1
1818
1919 Public Utilities – Energy Efficiency and Greenhouse Gas Emissions Reductions 2
2020 – Alterations and Requirements 3
2121 (Energy Savings Act) 4
2222
2323 FOR the purpose of altering the goals and requirements of certain energy efficiency 5
2424 programs to include certain greenhouse gas emissions reductions from electric 6
2525 companies and gas companies beginning on a certain date; requiring the EmPOWER 7
2626 Maryland Program to provide consumer rebates, and promote the use of certain 8
2727 federal rebates, for certain technologies; requiring the Department of Housing and 9
2828 Community Development and electric utilities to promote fuel switching from gas to 10
2929 electricity; eliminating EmPOWER Maryland Program incentives for certain 11
3030 fossil–fuel–powered products beginning on or before a certain date; requiring home 12
3131 energy audits and home energy checkups to include a certain evaluation beginning 13
3232 on or before a certain date; requiring the Department to establish a program for 14
3333 issuing certain rebates; requiring the Department to contract with navigators to 15
3434 facilitate whole–home retrofits; requiring a certain percentage of EmPOWER 16
3535 Maryland Program energy savings to come from behind–the–meter programs; and 17
3636 generally relating to energy efficiency and greenhouse gas emissions reductions in 18
3737 the State. 19
3838
3939 BY repealing and reenacting, with amendments, 20
4040 Article – Public Utilities 21
4141 Section 7–211(d), (g), (h), (i), and (k) 22
4242 Annotated Code of Maryland 23
4343 (2020 Replacement Volume and 2022 Supplement) 24
4444
4545 BY repealing and reenacting, without amendments, 25
4646 Article – Public Utilities 26
4747 Section 7–211(e) and (f) 27
4848 Annotated Code of Maryland 28 2 HOUSE BILL 904
4949
5050
5151 (2020 Replacement Volume and 2022 Supplement) 1
5252
5353 BY adding to 2
5454 Article – Public Utilities 3
5555 Section 7–211.1 4
5656 Annotated Code of Maryland 5
5757 (2020 Replacement Volume and 2022 Supplement) 6
5858
5959 SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 7
6060 That the Laws of Maryland read as follows: 8
6161
6262 Article – Public Utilities 9
6363
6464 7–211. 10
6565
6666 (d) Subject to review and approval by the Commission, each gas company and 11
6767 electric company shall develop and implement programs and services to encourage and 12
6868 promote: 13
6969
7070 (1) the efficient use and conservation of energy by consumers, gas 14
7171 companies, and electric companies; AND 15
7272
7373 (2) THE REDUCTION OF GRE ENHOUSE GAS EMISSION S TO SUPPORT 16
7474 THE REQUIREMENTS OF § 2–1204.1 OF THE ENVIRONMENT ARTICLE. 17
7575
7676 (e) As directed by the Commission, each municipal electric utility and each 18
7777 electric cooperative that serves a population of less than 250,000 in its distribution territory 19
7878 shall include energy efficiency and conservation programs or services as part of their 20
7979 service to their customers. 21
8080
8181 (f) The Commission shall: 22
8282
8383 (1) require each gas company and electric company to establish any 23
8484 program or service that the Commission deems appropriate and cost effective to encourage 24
8585 and promote the efficient use and conservation of energy; 25
8686
8787 (2) adopt rate–making policies that provide cost recovery and, in 26
8888 appropriate circumstances, reasonable financial incentives for gas companies and electric 27
8989 companies to establish programs and services that encourage and promote the efficient use 28
9090 and conservation of energy; and 29
9191
9292 (3) ensure that adoption of electric customer choice under Subtitle 5 of this 30
9393 title does not adversely impact the continuation of cost–effective energy efficiency and 31
9494 conservation programs. 32
9595 HOUSE BILL 904 3
9696
9797
9898 (g) (1) Except as provided in subsection (e) of this section, on or before 1
9999 December 31, 2008, by regulation or order, the Commission shall: 2
100100
101101 (i) to the extent that the Commission determines that cost–effective 3
102102 energy efficiency and conservation programs and services are available, for each affected 4
103103 class, require each electric company to procure or provide for its electricity customers 5
104104 cost–effective energy efficiency and conservation programs and services with projected and 6
105105 verifiable electricity savings that are designed to achieve a targeted reduction of at least 7
106106 5% by the end of 2011 and 10% by the end of 2015 of per capita electricity consumed in the 8
107107 electric company’s service territory during 2007; and 9
108108
109109 (ii) require each electric company to implement a cost–effective 10
110110 demand response program in the electric company’s service territory that is designed to 11
111111 achieve a targeted reduction of at least 5% by the end of 2011, 10% by the end of 2013, and 12
112112 15% by the end of 2015, in per capita peak demand of electricity consumed in the electric 13
113113 company’s service territory during 2007. 14
114114
115115 (2) (i) Except as provided in subsection (e) of this section, for the 15
116116 duration of the 2021–2023 [and 2024–2026] program [cycles,] CYCLE, by regulation or 16
117117 order, the Commission shall, to the extent that the Commission determines that 17
118118 cost–effective energy efficiency and conservation programs and services are available, for 18
119119 each affected class, require each electric company to procure or provide for its electricity 19
120120 customers cost–effective energy efficiency and conservation programs and services with 20
121121 projected and verifiable electricity savings that are designed on a trajectory to achieve a 21
122122 targeted annual incremental gross energy savings of at least [the following annual 22
123123 percentages,] 2.0% PER YEAR THROUGH 2023, calculated as a percentage of the electric 23
124124 company’s 2016 weather–normalized gross retail sales and electricity losses[: 24
125125
126126 1. 2.0% per year in 2022 through 2024; 25
127127
128128 2. 2.25% per year in 2025 and 2026; and 26
129129
130130 3. 2.5% per year in 2027 and thereafter]. 27
131131
132132 (ii) [The savings trajectory shall use the approved 2016 plans 28
133133 submitted under subsection (h)(2) of this section as a baseline for an incremental increase 29
134134 of a rate of .20% per year until the minimum savings rate specified in subparagraph (i) of 30
135135 this paragraph is achieved. 31
136136
137137 (iii)] The gross retail sales against which the savings are measured 32
138138 shall: 33
139139
140140 1. reflect sales associated with customer classes served by 34
141141 utility–administered programs only; and 35
142142 4 HOUSE BILL 904
143143
144144
145145 2. be updated by the Commission for each plan submitted 1
146146 under subsection (h)(2) of this section. 2
147147
148148 [(iv)] (III) The targeted annual incremental gross energy savings 3
149149 shall be achieved based on the 3–year average of an electric company’s plan submitted 4
150150 under subsection (h)(2) of this section. 5
151151
152152 [(v) For 2025 and thereafter, the core objective of the targeted 6
153153 reductions under this section shall include development and implementation of a portfolio 7
154154 of mutually reinforcing goals, including greenhouse gas emissions reduction, energy 8
155155 savings, net customer benefits, and reaching underserved customers.] 9
156156
157157 (3) (I) EXCEPT AS PROVIDED IN SUBSECTION (E) OF THIS SECTION, 10
158158 BEGINNING JANUARY 1, 2024, BY REGULATION OR ORD ER, THE COMMISSION SHALL 11
159159 REQUIRE EACH ELECTRI C COMPANY AND GAS COMPANY TO REDUCE GREENHOUSE 12
160160 GAS EMISSIONS FROM EACH RATEPAYER CLASS RESULTING FROM THE D IRECT 13
161161 CONSUMPTION OF ELECT RICITY AND NATURAL G AS BY AT LEAST 2% BELOW THE 14
162162 2016 LEVEL EACH YEAR, WITH A CUMULATIVE IM PACT OF AT LEAST 14% BY 2031, 15
163163 TO SUPPORT THE REQUIREMENTS OF § 2–1204.1 OF THE ENVIRONMENT ARTICLE. 16
164164
165165 (II) 1. EACH G AS COMPANY SHALL ACHIEVE THE 17
166166 GREENHOUSE GAS EMISSIONS REDUCTION TARGETS REQUIRED UNDER 18
167167 SUBPARAGRAPH (I) OF THIS PARAGRAPH THROUGH BUILDING SHE LL 19
168168 IMPROVEMENTS AND FUEL SWITCHING ONLY. 20
169169
170170 2. A GAS COMPANY MAY NOT USE THE REPLACEMENT OF 21
171171 GAS APPLIANCE S TO ACHIEVE THE GRE ENHOUSE GAS EMISSIONS REDUCTION 22
172172 TARGETS REQUIRED UNDER SUBPA RAGRAPH (I) OF THIS PARAGRAPH . 23
173173
174174 (h) (1) (i) On or before July 1, 2008, and every 3 years thereafter, each 24
175175 electric company shall consult with the Maryland Energy Administration regarding the 25
176176 design and adequacy of the electric company’s plan to achieve the [electricity savings and 26
177177 demand reduction] targets specified in subsection (g) of this section. 27
178178
179179 (ii) An electric company shall provide the Maryland Energy 28
180180 Administration with any additional information regarding the plan, as requested. 29
181181
182182 (2) On or before September 1, 2008, and every 3 years thereafter, an 30
183183 electric company shall submit its plan to the Commission that details the electric company’s 31
184184 proposals for achieving the [electricity savings and demand reduction] targets specified in 32
185185 subsection (g) of this section for the 3 subsequent calendar years. 33
186186
187187 (3) The Commission shall consider any written findings provided by the 34
188188 Maryland Energy Administration regarding the design and adequacy of the plan. 35
189189 HOUSE BILL 904 5
190190
191191
192192 (4) Each electric company shall provide annual updates to the Commission 1
193193 and the Maryland Energy Administration on plan implementation and progress towards 2
194194 achieving the [electricity savings and demand reduction] targets specified in subsection (g) 3
195195 of this section. 4
196196
197197 (5) (i) The plan shall include a description of the proposed [energy 5
198198 efficiency and conservation] programs and services [and the proposed demand response 6
199199 program, anticipated costs], projected electricity savings, and any other information 7
200200 requested by the Commission. 8
201201
202202 (ii) The plan shall address residential, commercial, and industrial 9
203203 sectors as appropriate, including low–income communities and low– to moderate–income 10
204204 communities. 11
205205
206206 (iii) 1. If, in connection with a program or service, the electric 12
207207 company proposes to provide heating, ventilation, air conditioning, or refrigeration services 13
208208 for its customers, the plan shall include procedures for the competitive selection of heating, 14
209209 ventilation, air conditioning, or refrigeration service providers. 15
210210
211211 2. On request by the electric company and for good cause 16
212212 shown, the Commission may waive the requirement that the electric company 17
213213 competitively select heating, ventilation, air conditioning, or refrigeration providers under 18
214214 subsubparagraph 1 of this subparagraph. 19
215215
216216 (6) The plan and any updates shall include a certification or recertification 20
217217 by the electric company that, if an affiliate of the electric company provides heating, 21
218218 ventilation, air conditioning, or refrigeration services through any existing contract or 22
219219 obligation in connection with a program or service, the customers of the electric company’s 23
220220 regulated services will not subsidize the operations of the affiliate. 24
221221
222222 (7) The Commission shall review each electric company’s plan to determine 25
223223 if the plan is adequate and cost–effective in achieving the [electricity savings and demand 26
224224 reduction] targets specified in subsection (g) of this section. 27
225225
226226 (i) (1) In determining whether a program or service encourages and promotes 28
227227 the efficient use and conservation of energy, OR PROMOTES A REDUCT ION IN 29
228228 GREENHOUSE GAS EMISS IONS, the Commission shall consider the: 30
229229
230230 (i) cost–effectiveness of the residential sector subportfolio and the 31
231231 commercial and industrial sector subportfolio by utilizing: 32
232232
233233 1. the total resource cost test in order to compare the 33
234234 electricity savings and demand reduction targets of the program or service with the results 34
235235 of similar programs or services implemented in other jurisdictions, including: 35
236236
237237 A. participant nonenergy benefits; and 36 6 HOUSE BILL 904
238238
239239
240240
241241 B. utility nonenergy benefits; and 1
242242
243243 2. the societal cost test in order to determine whether 2
244244 cost–effectiveness requirements will be met prospectively, including: 3
245245
246246 A. participant nonenergy benefits; 4
247247
248248 B. utility nonenergy benefits; and 5
249249
250250 C. societal nonenergy benefits; 6
251251
252252 (ii) impact on rates of each ratepayer class; 7
253253
254254 (iii) impact on jobs; and 8
255255
256256 (iv) impact on the environment. 9
257257
258258 (2) Nonenergy benefits considered under paragraph (1) of this subsection 10
259259 shall be quantifiable and directly related to a program or service. 11
260260
261261 (3) The Commission shall monitor and analyze the impact of each program 12
262262 and service to ensure that the outcome of each program and service provides the best 13
263263 possible results. 14
264264
265265 (4) In monitoring and analyzing the impact of a program or service under 15
266266 paragraph (3) of this subsection, if the Commission finds that the outcome of the program 16
267267 or services may not be providing the best possible results, the Commission shall direct the 17
268268 electric company to include in its annual update under subsection (h)(4) of this section 18
269269 specific measures to address the findings. 19
270270
271271 (5) An electric company that enters into a contract or obligation with an 20
272272 affiliate of the electric company to provide heating, ventilation, air conditioning, or 21
273273 refrigeration services in connection with a program or service shall notify the Commission 22
274274 within 30 days after entering into the contract or obligation that the electric company: 23
275275
276276 (i) has entered into a contract or obligation with an affiliate of the 24
277277 electric company; and 25
278278
279279 (ii) certifies that the customers of the electric company’s regulated 26
280280 services will not subsidize the operations of the affiliate. 27
281281
282282 (k) On or before May 1 of each year, the Commission, in consultation with the 28
283283 Maryland Energy Administration, shall report, subject to § 2–1257 of the State Government 29
284284 Article, to the General Assembly on: 30
285285 HOUSE BILL 904 7
286286
287287
288288 (1) the status of programs and services to encourage and promote the 1
289289 efficient use and conservation of energy, including an evaluation of the impact of the 2
290290 programs and services that are directed to low –income communities, low– to 3
291291 moderate–income communities to the extent possible, and other particular classes of 4
292292 ratepayers; 5
293293
294294 (2) a recommendation for the appropriate funding level to adequately fund 6
295295 these programs and services; [and] 7
296296
297297 (3) in accordance with subsection (c) of this section, the per capita 8
298298 electricity consumption and the peak demand for the previous calendar year; AND 9
299299
300300 (4) BEGINNING MAY 1, 2025, PROGRESS MADE TOWARDS REDUCING 10
301301 GREENHOUSE GAS EMISS IONS IN ACCORDANCE W ITH SUBSECTION (G)(3) OF THIS 11
302302 SECTION. 12
303303
304304 7–211.1. 13
305305
306306 (A) (1) IN THIS SECTION THE FOLLOWING WORDS HAVE THE MEANINGS 14
307307 INDICATED. 15
308308
309309 (2) (I) “BEHIND–THE–METER PROGRAMS” MEANS PROGRAMS 16
310310 THAT IMPACT THE CUST OMER SIDE OF THE UTI LITY METER. 17
311311
312312 (II) “BEHIND–THE–METER PROGRAMS ” INCLUDE: 18
313313
314314 1. ENERGY EFFICIENCY PR OGRAMS; 19
315315
316316 2. BENEFICIAL ELECTRIFI CATION PROGRAMS ; 20
317317
318318 3. PASSIVE DEMAND REDUC TION PROGRAMS ; AND 21
319319
320320 4. ACTIVE DEMAND REDUCT ION PROGRAMS . 22
321321
322322 (3) “DEPARTMENT ” MEANS THE DEPARTMENT OF HOUSING AND 23
323323 COMMUNITY DEVELOPMENT . 24
324324
325325 (4) “LOW–INCOME RESIDENTIAL C USTOMERS” MEANS CUSTOMERS 25
326326 WHO QUALIFY FOR THE DEPARTMENT ’S LOW–INCOME ASSISTANCE PR OGRAMS, 26
327327 INCLUDING: 27
328328
329329 (I) THE EMPOWER MARYLAND PROGRAM; 28
330330 8 HOUSE BILL 904
331331
332332
333333 (II) THE MULTIFAMILY ENERGY EFFICIENCY AND HOUSING 1
334334 AFFORDABILITY PROGRAM; AND 2
335335
336336 (III) THE WEATHERIZATION ASSISTANCE PROGRAM. 3
337337
338338 (5) “NAVIGATOR” MEANS A PERSON THAT SERVES AS A PROGRAM 4
339339 DELIVERY HUB . 5
340340
341341 (B) (1) ON OR BEFORE JANUARY 1, 2024, THE EMPOWER MARYLAND 6
342342 PROGRAM SHALL PROVIDE CONSUMER REBATES FOR , AND PROMOTE THE USE OF, 7
343343 ANY AVAILABLE FEDERA L REBATES AVAILABLE FOR THE ADOPTION OF THE 8
344344 FOLLOWING TECHNOLOGI ES TO REPLACE FOSSIL –FUEL–POWERED EQUIPMENT AN D 9
345345 ELECTRIC RESISTANCE HEAT: 10
346346
347347 (I) HIGH–EFFICIENCY: 11
348348
349349 1. ELECTRIC HEATING ; 12
350350
351351 2. COOKING APPLIANCES; 13
352352
353353 3. DRYERS; AND 14
354354
355355 4. HOT WATER HEATING ; AND 15
356356
357357 (II) ELECTRIFIED COMMERCIA L COOKING EQUIPMENT . 16
358358
359359 (2) PORTABLE HEAT PUMPS A ND ELECTRIC STOVES S HALL QUALIFY 17
360360 FOR REBATES UNDER THIS SUBSECTIO N. 18
361361
362362 (C) (1) THE DEPARTMENT AND ELECTRIC COMPANIES SHALL PROMOTE 19
363363 FUEL SWITCHING FROM GAS TO ELECTRIC ITY. 20
364364
365365 (2) ELECTRIC COMPANIES SHALL PROMOTE THE AV AILABILITY OF 21
366366 FEDERAL REBATES THAT CAN BE USED TO SUPPORT FUEL SWITCHI NG THROUGH A 22
367367 PUBLIC SERVICE ANNOU NCEMENTS PROGRAM . 23
368368
369369 (D) BEGINNING ON OR BEFOR E JANUARY 1, 2024, EMPOWER MARYLAND 24
370370 PROGRAM INCENTIVES FO R GAS , PROPANE, OIL, AND OTHER 25
371371 GREENHOUSE –GAS–EMITTING APPLIANCES SHALL BE ELIMINATED . 26
372372
373373 (E) (1) BEGINNING O N OR BEFORE JANUARY 1, 2024, ALL EMPOWER 27
374374 MARYLAND PROGRAM HOME ENERGY AUDITS A ND HOME ENERGY CHECK UPS SHALL 28 HOUSE BILL 904 9
375375
376376
377377 INCLUDE AN EVALUATIO N OF THE READINESS OF A HOME FOR ELECTRIFICATION , 1
378378 INCLUDING: 2
379379
380380 (I) THE CAPABILITY OF BR EAKER BOXES AND WIRI NG TO 3
381381 ACCOMMODATE HOME ELECTRIFICATION ; AND 4
382382
383383 (II) ANY OTHER MEASURES T HAT ARE NECESSARY FO R HOME 5
384384 ELECTRIFICATION . 6
385385
386386 (2) (I) SUBJECT TO SUBPARAGRA PH (II) OF THIS PARAGRAPH , THE 7
387387 DEPARTMENT SHALL ESTA BLISH A PROGRAM FOR STATE–ISSUED REBATES OF UP 8
388388 TO $2,000 PER RESIDENCE FOR BR EAKER PANEL AND WIRING REPAIRS , 9
389389 REPLACEMENTS , AND UPGRADES TO SUPPORT HOME ELECTRIFICATION . 10
390390
391391 (II) THE DEPARTMENT SHALL DEDUCT THE VAL UE OF ANY 11
392392 AVAILABLE FEDERAL RE BATES FROM THE REBATE AMOUNT OF FERED UNDER 12
393393 SUBPARAGRAPH (I) OF THIS PARAGRAPH . 13
394394
395395 (F) (1) ON OR BEFORE JANUARY 1, 2024, THE DEPARTMENT SHALL 14
396396 CONTRACT WITH NAVIGA TORS TO FACILITATE W HOLE–HOME RETROFITS , 15
397397 INCLUDING WEATHERIZA TION, ELECTRIFICATION , LEAD REMOVAL, MOLD 16
398398 REMEDIATION , ASBESTOS REMEDIATION , AND BUILDING SHELL I MPROVEMENTS . 17
399399
400400 (2) A NAVIGATOR FACILITATING WHOLE –HOME RETROFITS MUST: 18
401401
402402 (I) PROVIDE A SINGLE POI NT OF CONTACT FOR LO W–INCOME 19
403403 RESIDENTIAL CUSTOMER S, CONTRACTORS , AND MULTIFAMILY PROP ERTY OWNERS 20
404404 WHO RENT TO LOW –INCOME RESIDENTIAL C USTOMERS; AND 21
405405
406406 (II) OFFER SERVICES IN AN Y LANGUAG E NEEDED BY 22
407407 LOW–INCOME RESIDENTIAL CUSTOMER S IN THE AREA SERVE D BY THE NAVIGATOR . 23
408408
409409 (G) BEGINNING JANUARY 1, 2025, AT LEAST 85% OF EMPOWER 24
410410 MARYLAND PROGRAM ENERGY SAVINGS SHALL COME F ROM BEHIND –THE–METER 25
411411 PROGRAMS THAT ARE USED IN A CUSTOMER’S RESIDENCE OR BUSINESS. 26
412412
413413 (H) PROGRAMS OPERATED BY THE DEPARTMENT FOR LOW –INCOME 27
414414 RESIDENTIAL CUSTOMER S ARE NOT REQUIRED T O MEET THE EVALUATION, 28
415415 MEASUREMENT , AND VERIFICATION REQUIREMENT IN § 7–211(I) OF THIS SUBTITLE. 29
416416
417417 (I) THE DEPARTMENT SHALL ADOP T REGULATIONS TO CARRY OUT THIS 30
418418 SECTION. 31
419419 10 HOUSE BILL 904
420420
421421
422422 SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect 1
423423 October 1, 2023. 2