EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
[Brackets] indicate matter deleted from existing law.
*hb0904*
HOUSE BILL 904
M5, C5 3lr1207
CF SB 689
By: Delegates Qi, Barve, Embry, Foley, Fraser–Hidalgo, Stewart, Vogel, Watson,
and Wu
Introduced and read first time: February 9, 2023
Assigned to: Economic Matters
A BILL ENTITLED
AN ACT concerning 1
Public Utilities – Energy Efficiency and Greenhouse Gas Emissions Reductions 2
– Alterations and Requirements 3
(Energy Savings Act) 4
FOR the purpose of altering the goals and requirements of certain energy efficiency 5
programs to include certain greenhouse gas emissions reductions from electric 6
companies and gas companies beginning on a certain date; requiring the EmPOWER 7
Maryland Program to provide consumer rebates, and promote the use of certain 8
federal rebates, for certain technologies; requiring the Department of Housing and 9
Community Development and electric utilities to promote fuel switching from gas to 10
electricity; eliminating EmPOWER Maryland Program incentives for certain 11
fossil–fuel–powered products beginning on or before a certain date; requiring home 12
energy audits and home energy checkups to include a certain evaluation beginning 13
on or before a certain date; requiring the Department to establish a program for 14
issuing certain rebates; requiring the Department to contract with navigators to 15
facilitate whole–home retrofits; requiring a certain percentage of EmPOWER 16
Maryland Program energy savings to come from behind–the–meter programs; and 17
generally relating to energy efficiency and greenhouse gas emissions reductions in 18
the State. 19
BY repealing and reenacting, with amendments, 20
Article – Public Utilities 21
Section 7–211(d), (g), (h), (i), and (k) 22
Annotated Code of Maryland 23
(2020 Replacement Volume and 2022 Supplement) 24
BY repealing and reenacting, without amendments, 25
Article – Public Utilities 26
Section 7–211(e) and (f) 27
Annotated Code of Maryland 28 2 HOUSE BILL 904
(2020 Replacement Volume and 2022 Supplement) 1
BY adding to 2
Article – Public Utilities 3
Section 7–211.1 4
Annotated Code of Maryland 5
(2020 Replacement Volume and 2022 Supplement) 6
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 7
That the Laws of Maryland read as follows: 8
Article – Public Utilities 9
7–211. 10
(d) Subject to review and approval by the Commission, each gas company and 11
electric company shall develop and implement programs and services to encourage and 12
promote: 13
(1) the efficient use and conservation of energy by consumers, gas 14
companies, and electric companies; AND 15
(2) THE REDUCTION OF GRE ENHOUSE GAS EMISSION S TO SUPPORT 16
THE REQUIREMENTS OF § 2–1204.1 OF THE ENVIRONMENT ARTICLE. 17
(e) As directed by the Commission, each municipal electric utility and each 18
electric cooperative that serves a population of less than 250,000 in its distribution territory 19
shall include energy efficiency and conservation programs or services as part of their 20
service to their customers. 21
(f) The Commission shall: 22
(1) require each gas company and electric company to establish any 23
program or service that the Commission deems appropriate and cost effective to encourage 24
and promote the efficient use and conservation of energy; 25
(2) adopt rate–making policies that provide cost recovery and, in 26
appropriate circumstances, reasonable financial incentives for gas companies and electric 27
companies to establish programs and services that encourage and promote the efficient use 28
and conservation of energy; and 29
(3) ensure that adoption of electric customer choice under Subtitle 5 of this 30
title does not adversely impact the continuation of cost–effective energy efficiency and 31
conservation programs. 32
HOUSE BILL 904 3
(g) (1) Except as provided in subsection (e) of this section, on or before 1
December 31, 2008, by regulation or order, the Commission shall: 2
(i) to the extent that the Commission determines that cost–effective 3
energy efficiency and conservation programs and services are available, for each affected 4
class, require each electric company to procure or provide for its electricity customers 5
cost–effective energy efficiency and conservation programs and services with projected and 6
verifiable electricity savings that are designed to achieve a targeted reduction of at least 7
5% by the end of 2011 and 10% by the end of 2015 of per capita electricity consumed in the 8
electric company’s service territory during 2007; and 9
(ii) require each electric company to implement a cost–effective 10
demand response program in the electric company’s service territory that is designed to 11
achieve a targeted reduction of at least 5% by the end of 2011, 10% by the end of 2013, and 12
15% by the end of 2015, in per capita peak demand of electricity consumed in the electric 13
company’s service territory during 2007. 14
(2) (i) Except as provided in subsection (e) of this section, for the 15
duration of the 2021–2023 [and 2024–2026] program [cycles,] CYCLE, by regulation or 16
order, the Commission shall, to the extent that the Commission determines that 17
cost–effective energy efficiency and conservation programs and services are available, for 18
each affected class, require each electric company to procure or provide for its electricity 19
customers cost–effective energy efficiency and conservation programs and services with 20
projected and verifiable electricity savings that are designed on a trajectory to achieve a 21
targeted annual incremental gross energy savings of at least [the following annual 22
percentages,] 2.0% PER YEAR THROUGH 2023, calculated as a percentage of the electric 23
company’s 2016 weather–normalized gross retail sales and electricity losses[: 24
1. 2.0% per year in 2022 through 2024; 25
2. 2.25% per year in 2025 and 2026; and 26
3. 2.5% per year in 2027 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 savings rate specified in subparagraph (i) of 30
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 HOUSE BILL 904
2. be updated by the Commission for each plan submitted 1
under subsection (h)(2) of this section. 2
[(iv)] (III) The targeted annual incremental gross energy savings 3
shall be achieved based on the 3–year average of an electric company’s plan submitted 4
under subsection (h)(2) of this section. 5
[(v) For 2025 and thereafter, the core objective of the targeted 6
reductions under this section shall include development and implementation of a portfolio 7
of mutually reinforcing goals, including greenhouse gas emissions reduction, energy 8
savings, net customer benefits, and reaching underserved customers.] 9
(3) (I) EXCEPT AS PROVIDED IN SUBSECTION (E) OF THIS SECTION, 10
BEGINNING JANUARY 1, 2024, BY REGULATION OR ORD ER, THE COMMISSION SHALL 11
REQUIRE EACH ELECTRI C COMPANY AND GAS COMPANY TO REDUCE GREENHOUSE 12
GAS EMISSIONS FROM EACH RATEPAYER CLASS RESULTING FROM THE D IRECT 13
CONSUMPTION OF ELECT RICITY AND NATURAL G AS BY AT LEAST 2% BELOW THE 14
2016 LEVEL EACH YEAR, WITH A CUMULATIVE IM PACT OF AT LEAST 14% BY 2031, 15
TO SUPPORT THE REQUIREMENTS OF § 2–1204.1 OF THE ENVIRONMENT ARTICLE. 16
(II) 1. EACH G AS COMPANY SHALL ACHIEVE THE 17
GREENHOUSE GAS EMISSIONS REDUCTION TARGETS REQUIRED UNDER 18
SUBPARAGRAPH (I) OF THIS PARAGRAPH THROUGH BUILDING SHE LL 19
IMPROVEMENTS AND FUEL SWITCHING ONLY. 20
2. A GAS COMPANY MAY NOT USE THE REPLACEMENT OF 21
GAS APPLIANCE S TO ACHIEVE THE GRE ENHOUSE GAS EMISSIONS REDUCTION 22
TARGETS REQUIRED UNDER SUBPA RAGRAPH (I) OF THIS PARAGRAPH . 23
(h) (1) (i) On or before July 1, 2008, and every 3 years thereafter, each 24
electric company shall consult with the Maryland Energy Administration regarding the 25
design and adequacy of the electric company’s plan to achieve the [electricity savings and 26
demand reduction] targets specified in subsection (g) of this section. 27
(ii) An electric company shall provide the Maryland Energy 28
Administration with any additional information regarding the plan, as requested. 29
(2) On or before September 1, 2008, and every 3 years thereafter, an 30
electric company shall submit its plan to the Commission that details the electric company’s 31
proposals for achieving the [electricity savings and demand reduction] targets specified in 32
subsection (g) of this section for the 3 subsequent calendar years. 33
(3) The Commission shall consider any written findings provided by the 34
Maryland Energy Administration regarding the design and adequacy of the plan. 35
HOUSE BILL 904 5
(4) Each electric company shall provide annual updates to the Commission 1
and the Maryland Energy Administration on plan implementation and progress towards 2
achieving the [electricity savings and demand reduction] targets specified in subsection (g) 3
of this section. 4
(5) (i) The plan shall include a description of the proposed [energy 5
efficiency and conservation] programs and services [and the proposed demand response 6
program, anticipated costs], projected electricity savings, and any other information 7
requested by the Commission. 8
(ii) The plan shall address residential, commercial, and industrial 9
sectors as appropriate, including low–income communities and low– to moderate–income 10
communities. 11
(iii) 1. If, in connection with a program or service, the electric 12
company proposes to provide heating, ventilation, air conditioning, or refrigeration services 13
for its customers, the plan shall include procedures for the competitive selection of heating, 14
ventilation, air conditioning, or refrigeration service providers. 15
2. On request by the electric company and for good cause 16
shown, the Commission may waive the requirement that the electric company 17
competitively select heating, ventilation, air conditioning, or refrigeration providers under 18
subsubparagraph 1 of this subparagraph. 19
(6) The plan and any updates shall include a certification or recertification 20
by the electric company that, if an affiliate of the electric company provides heating, 21
ventilation, air conditioning, or refrigeration services through any existing contract or 22
obligation in connection with a program or service, the customers of the electric company’s 23
regulated services will not subsidize the operations of the affiliate. 24
(7) The Commission shall review each electric company’s plan to determine 25
if the plan is adequate and cost–effective in achieving the [electricity savings and demand 26
reduction] targets specified in subsection (g) of this section. 27
(i) (1) In determining whether a program or service encourages and promotes 28
the efficient use and conservation of energy, OR PROMOTES A REDUCT ION IN 29
GREENHOUSE GAS EMISS IONS, the Commission shall consider the: 30
(i) cost–effectiveness of the residential sector subportfolio and the 31
commercial and industrial sector subportfolio by utilizing: 32
1. the total resource cost test in order to compare the 33
electricity savings and demand reduction targets of the program or service with the results 34
of similar programs or services implemented in other jurisdictions, including: 35
A. participant nonenergy benefits; and 36 6 HOUSE BILL 904
B. utility nonenergy benefits; and 1
2. the societal cost test in order to determine whether 2
cost–effectiveness requirements will be met prospectively, including: 3
A. participant nonenergy benefits; 4
B. utility nonenergy benefits; and 5
C. societal nonenergy benefits; 6
(ii) impact on rates of each ratepayer class; 7
(iii) impact on jobs; and 8
(iv) impact on the environment. 9
(2) Nonenergy benefits considered under paragraph (1) of this subsection 10
shall be quantifiable and directly related to a program or service. 11
(3) The Commission shall monitor and analyze the impact of each program 12
and service to ensure that the outcome of each program and service provides the best 13
possible results. 14
(4) In monitoring and analyzing the impact of a program or service under 15
paragraph (3) of this subsection, if the Commission finds that the outcome of the program 16
or services may not be providing the best possible results, the Commission shall direct the 17
electric company to include in its annual update under subsection (h)(4) of this section 18
specific measures to address the findings. 19
(5) An electric company that enters into a contract or obligation with an 20
affiliate of the electric company to provide heating, ventilation, air conditioning, or 21
refrigeration services in connection with a program or service shall notify the Commission 22
within 30 days after entering into the contract or obligation that the electric company: 23
(i) has entered into a contract or obligation with an affiliate of the 24
electric company; and 25
(ii) certifies that the customers of the electric company’s regulated 26
services will not subsidize the operations of the affiliate. 27
(k) On or before May 1 of each year, the Commission, in consultation with the 28
Maryland Energy Administration, shall report, subject to § 2–1257 of the State Government 29
Article, to the General Assembly on: 30
HOUSE BILL 904 7
(1) the status of programs and services to encourage and promote the 1
efficient use and conservation of energy, including an evaluation of the impact of the 2
programs and services that are directed to low –income communities, low– to 3
moderate–income communities to the extent possible, and other particular classes of 4
ratepayers; 5
(2) a recommendation for the appropriate funding level to adequately fund 6
these programs and services; [and] 7
(3) in accordance with subsection (c) of this section, the per capita 8
electricity consumption and the peak demand for the previous calendar year; AND 9
(4) BEGINNING MAY 1, 2025, PROGRESS MADE TOWARDS REDUCING 10
GREENHOUSE GAS EMISS IONS IN ACCORDANCE W ITH SUBSECTION (G)(3) OF THIS 11
SECTION. 12
7–211.1. 13
(A) (1) IN THIS SECTION THE FOLLOWING WORDS HAVE THE MEANINGS 14
INDICATED. 15
(2) (I) “BEHIND–THE–METER PROGRAMS” MEANS PROGRAMS 16
THAT IMPACT THE CUST OMER SIDE OF THE UTI LITY METER. 17
(II) “BEHIND–THE–METER PROGRAMS ” INCLUDE: 18
1. ENERGY EFFICIENCY PR OGRAMS; 19
2. BENEFICIAL ELECTRIFI CATION PROGRAMS ; 20
3. PASSIVE DEMAND REDUC TION PROGRAMS ; AND 21
4. ACTIVE DEMAND REDUCT ION PROGRAMS . 22
(3) “DEPARTMENT ” MEANS THE DEPARTMENT OF HOUSING AND 23
COMMUNITY DEVELOPMENT . 24
(4) “LOW–INCOME RESIDENTIAL C USTOMERS” MEANS CUSTOMERS 25
WHO QUALIFY FOR THE DEPARTMENT ’S LOW–INCOME ASSISTANCE PR OGRAMS, 26
INCLUDING: 27
(I) THE EMPOWER MARYLAND PROGRAM; 28
8 HOUSE BILL 904
(II) THE MULTIFAMILY ENERGY EFFICIENCY AND HOUSING 1
AFFORDABILITY PROGRAM; AND 2
(III) THE WEATHERIZATION ASSISTANCE PROGRAM. 3
(5) “NAVIGATOR” MEANS A PERSON THAT SERVES AS A PROGRAM 4
DELIVERY HUB . 5
(B) (1) ON OR BEFORE JANUARY 1, 2024, THE EMPOWER MARYLAND 6
PROGRAM SHALL PROVIDE CONSUMER REBATES FOR , AND PROMOTE THE USE OF, 7
ANY AVAILABLE FEDERA L REBATES AVAILABLE FOR THE ADOPTION OF THE 8
FOLLOWING TECHNOLOGI ES TO REPLACE FOSSIL –FUEL–POWERED EQUIPMENT AN D 9
ELECTRIC RESISTANCE HEAT: 10
(I) HIGH–EFFICIENCY: 11
1. ELECTRIC HEATING ; 12
2. COOKING APPLIANCES; 13
3. DRYERS; AND 14
4. HOT WATER HEATING ; AND 15
(II) ELECTRIFIED COMMERCIA L COOKING EQUIPMENT . 16
(2) PORTABLE HEAT PUMPS A ND ELECTRIC STOVES S HALL QUALIFY 17
FOR REBATES UNDER THIS SUBSECTIO N. 18
(C) (1) THE DEPARTMENT AND ELECTRIC COMPANIES SHALL PROMOTE 19
FUEL SWITCHING FROM GAS TO ELECTRIC ITY. 20
(2) ELECTRIC COMPANIES SHALL PROMOTE THE AV AILABILITY OF 21
FEDERAL REBATES THAT CAN BE USED TO SUPPORT FUEL SWITCHI NG THROUGH A 22
PUBLIC SERVICE ANNOU NCEMENTS PROGRAM . 23
(D) BEGINNING ON OR BEFOR E JANUARY 1, 2024, EMPOWER MARYLAND 24
PROGRAM INCENTIVES FO R GAS , PROPANE, OIL, AND OTHER 25
GREENHOUSE –GAS–EMITTING APPLIANCES SHALL BE ELIMINATED . 26
(E) (1) BEGINNING O N OR BEFORE JANUARY 1, 2024, ALL EMPOWER 27
MARYLAND PROGRAM HOME ENERGY AUDITS A ND HOME ENERGY CHECK UPS SHALL 28 HOUSE BILL 904 9
INCLUDE AN EVALUATIO N OF THE READINESS OF A HOME FOR ELECTRIFICATION , 1
INCLUDING: 2
(I) THE CAPABILITY OF BR EAKER BOXES AND WIRI NG TO 3
ACCOMMODATE HOME ELECTRIFICATION ; AND 4
(II) ANY OTHER MEASURES T HAT ARE NECESSARY FO R HOME 5
ELECTRIFICATION . 6
(2) (I) SUBJECT TO SUBPARAGRA PH (II) OF THIS PARAGRAPH , THE 7
DEPARTMENT SHALL ESTA BLISH A PROGRAM FOR STATE–ISSUED REBATES OF UP 8
TO $2,000 PER RESIDENCE FOR BR EAKER PANEL AND WIRING REPAIRS , 9
REPLACEMENTS , AND UPGRADES TO SUPPORT HOME ELECTRIFICATION . 10
(II) THE DEPARTMENT SHALL DEDUCT THE VAL UE OF ANY 11
AVAILABLE FEDERAL RE BATES FROM THE REBATE AMOUNT OF FERED UNDER 12
SUBPARAGRAPH (I) OF THIS PARAGRAPH . 13
(F) (1) ON OR BEFORE JANUARY 1, 2024, THE DEPARTMENT SHALL 14
CONTRACT WITH NAVIGA TORS TO FACILITATE W HOLE–HOME RETROFITS , 15
INCLUDING WEATHERIZA TION, ELECTRIFICATION , LEAD REMOVAL, MOLD 16
REMEDIATION , ASBESTOS REMEDIATION , AND BUILDING SHELL I MPROVEMENTS . 17
(2) A NAVIGATOR FACILITATING WHOLE –HOME RETROFITS MUST: 18
(I) PROVIDE A SINGLE POI NT OF CONTACT FOR LO W–INCOME 19
RESIDENTIAL CUSTOMER S, CONTRACTORS , AND MULTIFAMILY PROP ERTY OWNERS 20
WHO RENT TO LOW –INCOME RESIDENTIAL C USTOMERS; AND 21
(II) OFFER SERVICES IN AN Y LANGUAG E NEEDED BY 22
LOW–INCOME RESIDENTIAL CUSTOMER S IN THE AREA SERVE D BY THE NAVIGATOR . 23
(G) BEGINNING JANUARY 1, 2025, AT LEAST 85% OF EMPOWER 24
MARYLAND PROGRAM ENERGY SAVINGS SHALL COME F ROM BEHIND –THE–METER 25
PROGRAMS THAT ARE USED IN A CUSTOMER’S RESIDENCE OR BUSINESS. 26
(H) PROGRAMS OPERATED BY THE DEPARTMENT FOR LOW –INCOME 27
RESIDENTIAL CUSTOMER S ARE NOT REQUIRED T O MEET THE EVALUATION, 28
MEASUREMENT , AND VERIFICATION REQUIREMENT IN § 7–211(I) OF THIS SUBTITLE. 29
(I) THE DEPARTMENT SHALL ADOP T REGULATIONS TO CARRY OUT THIS 30
SECTION. 31
10 HOUSE BILL 904
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect 1
October 1, 2023. 2