EXPLANATION: CAPITALS INDICATE MATTER ADDE D TO EXISTING LAW .
[Brackets] indicate matter deleted from existing law.
*sb0170*
SENATE BILL 170
C5, K3, M5 3lr0706
SB 418/22 – FIN
By: Senator Feldman
Introduced and read first time: January 20, 2023
Assigned to: Finance
A BILL ENTITLED
AN ACT concerning 1
Energy Generation Projects – Required Labor Standards 2
FOR the purpose of requiring the developer of a covered project, on the approval of a 3
certificate of public convenience and necessity for the construction of a certain 4
generating station or qualified generator lead line or an exemption from a certain 5
requirement for a certificate of public convenience and necessity, to meet certain 6
labor standards and reporting requirements; establishing certain labor standards 7
and certain certification, reporting, and record–keeping requirements related to the 8
construction of a covered project; subjecting a developer, contractor, or subcontractor 9
to debarment for knowingly submitting a certification with false, misleading, or 10
materially inaccurate information; requiring the Maryland Department of Labor to 11
enforce certain provisions of this Act; and generally relating to energy generation 12
projects. 13
BY adding to 14
Article – Labor and Employment 15
Section 3–718 16
Annotated Code of Maryland 17
(2016 Replacement Volume and 2022 Supplement) 18
BY repealing and reenacting, without amendments, 19
Article – Public Utilities 20
Section 7–207(a)(1), (3), and (5) and (b)(1)(i) and (ii) and 7–207.1(a) and (b)(1) 21
Annotated Code of Maryland 22
(2020 Replacement Volume and 2022 Supplement) 23
BY adding to 24
Article – Public Utilities 25
Section 7–207(h) and 7–207.1(g) 26
Annotated Code of Maryland 27
(2020 Replacement Volume and 2022 Supplement) 28 2 SENATE BILL 170
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 1
That the Laws of Maryland read as follows: 2
Article – Labor and Employment 3
3–718. 4
(A) (1) IN THIS SECTION , “COVERED PROJECT ” MEANS A GENERATION 5
STATION WITH A CUMUL ATIVE NAMEPLATE CAPA CITY OF 2 MEGAWATTS OR MORE 6
FOR WHICH THE PUBLIC SERVICE COMMISSION HAS A PPROVED: 7
(I) A CERTIFICATE OF PUB LIC CONVENIENCE AND NECESSITY 8
UNDER § 7–207 OF THE PUBLIC UTILITIES ARTICLE; OR 9
(II) AN EXEMPTION FROM TH E REQUIREMENT TO OBT AIN A 10
CERTIFICATE OF PUBLI C CONVENIENCE AND NE CESSITY UNDER § 7–207.1 OF THE 11
PUBLIC UTILITIES ARTICLE. 12
(2) “COVERED PROJECT ” DOES NOT INCLUDE AN OFF–SHORE WIND 13
PROJECT UNDER § 7–704.1 OF THE PUBLIC UTILITIES ARTICLE. 14
(B) THIS SECTION APPLIES ONLY TO THE CONSTRUC TION OF A COVERED 15
PROJECT. 16
(C) THE DEVELOPER OF A CO VERED PROJECT SHALL ENSURE THAT 17
WORKERS ARE PAID NOT LESS THAN THE PREVAI LING WAGE RATE DETER MINED 18
UNDER TITLE 17, SUBTITLE 2 OF THE STATE FINANCE AND PROCUREMENT 19
ARTICLE UNLESS THE CO VERED PROJECT IS SUB JECT TO A PROJECT LA BOR 20
AGREEMENT THAT : 21
(1) BINDS ALL CONTRACTOR S AND SUBCONTRACTORS ON THE 22
COVERED PROJECT THRO UGH THE INCLUSION OF SPECIFICATIONS IN AL L 23
RELEVANT SOLICITATIO N PROVISIONS AND CON TRACT DOCUMENTS ; 24
(2) ALLOWS ALL CONTRACTO RS AND SUBCONTRACTOR S TO COMPETE 25
FOR CONTRACTS AND SU BCONTRACTS ON THE PR OJECT WITHO UT REGARD TO 26
WHETHER THEY ARE OTH ERWISE PARTIES TO CO LLECTIVE BARGAINING 27
AGREEMENTS ; 28
(3) ESTABLISHES UNIFORM TERMS AND CONDITIONS OF 29
EMPLOYMENT FOR ALL C ONSTRUCTION LABOR EM PLOYED ON THE PROJEC TS; 30
SENATE BILL 170 3
(4) GUARANTEES AGAINST S TRIKES, LOCKOUTS, AND SIMILAR JOB 1
DISRUPTIONS; 2
(5) ESTABLISHES MUTUALLY BINDING PROCEDURES F OR RESOLVING 3
LABOR DISPUTES ; AND 4
(6) INCLUDES ANY OTHER P ROVISIONS NEGOTIATED BY THE PARTIES 5
TO PROMOTE SUCCESSFU L DELIVERY OF THE CO VERED PROJECT . 6
(D) (1) THE DEVELOPER OF A CO VERED PROJECT SHALL ENSURE THAT 7
EACH CONTRACTOR AND SUBCONTRACTOR INVOLV ED IN THE CONSTRUCTI ON OF 8
THE PROJECT COMPLETE S A CERTIFICATION TH AT THE CONTRACTOR OR 9
SUBCONTRACTOR : 10
(I) HAS THE NECESSARY RE SOURCES TO PERFORM T HE 11
PORTION O F THE COVERED PROJEC T TO WHICH THE CONTR ACTOR OR 12
SUBCONTRACTOR IS ASS IGNED, INCLUDING THE NECESS ARY TECHNICAL , 13
FINANCIAL, AND PERSONNEL RESOUR CES; 14
(II) HAS ALL REQUIRED LIC ENSES, CERTIFICATIONS , OR 15
CREDENTIALS REQUIRED UNDER STATE OR LOCAL LAW ; 16
(III) FOR EACH CONSTRUCTIO N TRADE EMPLOYED ON THE 17
COVERED PROJECT , PARTICIPATES IN APPR ENTICESHIP TRAINING THROUGH AN 18
APPRENTICESHIP PROGR AM REGISTERED WITH T HE MARYLAND DEPARTMENT OF 19
LABOR OR A FEDERALLY RECOGNIZED STATE APPRENTICESHIP AGENCY; 20
(IV) DURING THE IMMEDIATEL Y PRECEDING 3 YEARS: 21
1. HAS NOT BEEN DEBARRE D BY ANY GOVERNMENT 22
AGENCY; 23
2. HAS NOT DEFAULTED ON ANY PROJECT; 24
3. HAS NOT HAD ANY LICE NSE, CERTIFICATION , OR 25
OTHER CREDENTIAL REL ATING TO THE BUSINES S REVOKED OR SUSPEND ED; AND 26
4. HAS NOT BEEN FOUND I N VIOLATION OF ANY L AW 27
APPLICABLE TO THE BU SINESS OF THE CONTRA CTOR OR SUBCONTRACTO R THAT 28
RESULTED IN THE PAYM ENT OF A FINE , BACK PAY DAMAGES , OR ANY OTHER 29
PENALTY IN THE AMOUN T OF $10,000 OR MORE; 30
4 SENATE BILL 170
(V) WILL PAY INDIVID UALS EMPLOYED ON THE PROJECT NOT 1
LESS THAN THE APPLIC ABLE WAGE AND FRINGE BENEFIT RATES FOR TH E 2
CLASSIFICATION IN WH ICH EACH INDIVIDUAL IS EMPLOYED; AND 3
(VI) HAS NOT MISCLASSIFIE D AND WILL NOT MISCL ASSIFY 4
EMPLOYEES AS INDEPEN DENT CONTRACTORS . 5
(2) (I) THE DEVELOPER OF A CO VERED PROJECT SHALL SUBMIT 6
TO THE MARYLAND DEPARTMENT OF LABOR A CERTIFICATION OF COMPLIANCE 7
WITH THE REQUIREMENT S OF THIS SUBSECTION NOT LATER THAN 30 DAYS BEFORE 8
COMMENCEMENT OF CONS TRUCTION OF THE PROJ ECT. 9
(II) IF A COVERED PROJECT IS SUBJECT T O A PROJECT LABOR 10
AGREEMENT DESCRIBED IN SUBSECTION (C) OF THIS SECTION, THE DEVELOPER OF 11
THE COVERED PROJECT SHALL SUBMIT A COPY OF THE PROJECT LABOR 12
AGREEMENT WITH THE C ERTIFICATION OF COMP LIANCE. 13
(3) IF A CERTIFICATION CO NTAINS FALSE, MISLEADING, OR 14
MATERIALLY INACCURAT E INFORMATION , THE DEVELOPER , CONTRACTOR , OR 15
SUBCONTRACTOR THAT E XECUTED THE CERTIFIC ATION SHALL, AFTER NOTICE AND 16
OPPORTUNITY TO BE HE ARD, BE SUBJECT TO DEBARM ENT FROM ENTERING IN TO A 17
CONTRACT WITH A PUBL IC BODY. 18
(4) EACH CONTRACTOR AND S UBCONTRACTOR ON A CO VERED 19
PROJECT SHALL BE SUB JECT TO ALL REPORTIN G AND COMPLIANCE REQ UIREMENTS 20
OF THIS SECTION AND OTHER STATE LAW. 21
(5) A CONTRACTOR OR SUBCON TRACTOR THAT VIOLATE S THIS 22
SUBSECTION SHALL BE SUBJECT TO PENALTI ES ESTABLISHED BY TH E MARYLAND 23
DEPARTMENT OF LABOR BY REGULATION . 24
(E) (1) THIS SUBSECTION DOES NOT APPLY TO A COVER ED PROJECT FOR 25
WHICH THERE IS A PRO JECT LABOR AGREEMENT DESCRIBED IN SUBSECT ION (C) OF 26
THIS SECTION. 27
(2) EACH DEVELOPER , CONTRACTOR , AND SUBCONTRACTOR SHALL 28
MAINTAIN RECORDS REL ATING TO THE WAGES A ND HOURS WORKED BY E ACH 29
INDIVIDUAL PERFORMIN G THE WORK ON A COVE RED PROJECT , INCLUDING: 30
(I) A SCHEDULE OF THE OC CUPATION OR WORK 31
CLASSIFICATION OF EA CH INDIVIDUAL WORKIN G ON THE PROJECT ; AND 32
(II) A SCHEDULE OF THE WO RK HOURS THAT EACH I NDIVIDUAL 33
WORKING ON THE PROJE CT PERFORMED WITH SU FFICIENT DETAIL THAT THE 34 SENATE BILL 170 5
MARYLAND DEPARTMENT OF LABOR REQUIRES TO ENS URE THE PROPER 1
PAYMENTS OF WAGES WE RE MADE. 2
(3) THE RECORDS SHALL INC LUDE A STATEMENT SIGNED BY THE 3
DEVELOPER , CONTRACTOR , OR SUBCONTRACTOR THA T INDICATES: 4
(I) THE RECORDS ARE CORR ECT; 5
(II) THE RATE OF WAGES PA ID TO EACH INDIVIDUA L ARE NOT 6
LESS THAN THE PREVAI LING WAGE FOR THAT I NDIVIDUAL’S TRADE; 7
(III) THE AMOUNT OF WAGES PAID IS NOT LESS THA N THE 8
AMOUNT REQUIRED BY T HE CONTRACT TO BE PA ID; 9
(IV) THE DEVELOPER , CONTRACTOR , OR SUBCONTRACTOR HAS 10
COMPLIED WITH THE AP PLICABLE PROVISIONS OF THIS SECTION; AND 11
(V) THE DEVELOPER , CONTRACTOR , OR SUBCONTRA CTOR DOES 12
NOT RECEIVE KICKBACK S FROM AN EMPLOYEE O R EMPLOYEE WELFARE F UND. 13
(4) THE PAYROLL FOR A COV ERED PROJECT SHALL B E CONSIDERED 14
A PUBLIC RECORD AND EVERY PERSON HAS THE RIGHT TO INSPECT AND COPY THE 15
RECORDS. 16
(F) THE MARYLAND DEPARTMENT OF LABOR SHALL DISTRIBUTE A LI ST TO 17
ALL UNITS, DEPARTMENTS , AND POLITICAL SUBDIV ISIONS OF THE STATE 18
PROVIDING THE NAMES OF INDIVIDUALS OR FI RMS THAT THE MARYLAND 19
DEPARTMENT OF LABOR HAS FOUND TO HA VE: 20
(1) FAILED TO MEET THE R EQUIREMENTS OF SUBSE CTIONS (C), (D), 21
AND (E) OF THIS SECTION; 22
(2) BEEN DEBARRED BY FED ERAL OR STATE GOVERNMENT ; OR 23
(3) SUBMITTED FALSE , MISLEADING, OR MATERIALLY INACCU RATE 24
INFORMATION UNDER TH IS SECTION. 25
(G) THE SECRETARY OF LABOR SHALL ADOPT REG ULATIONS 26
IMPLEMENTING SUBSECT IONS (C), (D), AND (E) OF THIS SECTION. 27
Article – Public Utilities 28
7–207. 29
(a) (1) In this section the following words have the meanings indicated. 30 6 SENATE BILL 170
(3) (i) “Construction” means: 1
1. any physical change at a site, including fabrication, 2
erection, installation, or demolition; or 3
2. the entry into a binding agreement or contractual 4
obligation to purchase equipment exclusively for use in construction in the State or to 5
undertake a program of actual construction in the State which cannot be canceled or 6
modified without substantial loss to the owner or operator of the proposed generating 7
station. 8
(ii) “Construction” does not include a change that is needed for the 9
temporary use of a site or route for nonutility purposes or for use in securing geological 10
data, including any boring that is necessary to ascertain foundation conditions. 11
(5) “Qualified generator lead line” means an overhead transmission line 12
that is designed to carry a voltage in excess of 69,000 volts and would allow an out–of–state 13
Tier 1 or Tier 2 renewable source to interconnect with a portion of the electric system in 14
Maryland that is owned by an electric company. 15
(b) (1) (i) Unless a certificate of public convenience and necessity for the 16
construction is first obtained from the Commission, a person may not begin construction in 17
the State of: 18
1. a generating station; or 19
2. a qualified generator lead line. 20
(ii) If a person obtains Commission approval for construction under 21
§ 7–207.1 of this subtitle, the Commission shall exempt a person from the requirement to 22
obtain a certificate of public convenience and necessity under this section. 23
(H) (1) ON APPROVAL OF A CERT IFICATE OF PUBLIC CO NVENIENCE AND 24
NECESSITY FOR THE CO NSTRUCTION OF A PROP OSED GENERATING STAT ION THAT 25
IS A COVERED PROJECT , AS DEFINED IN § 3–718 OF THE LABOR AND EMPLOYMENT 26
ARTICLE, THE DEVELOPER OF THE PROPOSED GENERATING STATION SHALL MEET 27
THE REQUIREMENTS OF § 3–718 OF THE LABOR AND EMPLOYMENT ARTICLE. 28
(2) THE MARYLAND DEPARTMENT OF LABOR SHALL ENFORCE T HIS 29
SUBSECTION. 30
7–207.1. 31
(a) This section applies to a person who: 32
SENATE BILL 170 7
(1) constructs a generating station: 1
(i) designed to provide on–site generated electricity if: 2
1. the capacity of the generating station does not exceed 70 3
megawatts; and 4
2. the electricity that may be exported for sale from the 5
generating station to the electric system is sold only on the wholesale market pursuant to 6
an interconnection, operation, and maintenance agreement with the local electric company; 7
or 8
(ii) that produces electricity from wind if: 9
1. the generating station is land–based; 10
2. the capacity of the generating station does not exceed 70 11
megawatts; 12
3. the electricity that may be exported for sale from the 13
generating station to the electric system is sold only on the wholesale market pursuant to 14
an interconnection, operation, and maintenance agreement with the local electric company; 15
4. the Commission provides an opportunity for public 16
comment at a public hearing as provided in subsection (f) of this section; and 17
5. the generating station’s wind turbines are not located 18
within a distance from the Patuxent River Naval Air Station that is determined by 19
regulations adopted by the Commission in coordination with the Commander, Naval Air 20
Warfare Center Aircraft Division, provided that the distance requirement under the 21
regulation is: 22
A. not greater than is necessary to encompass an area in 23
which utility scale wind turbines could create Doppler radar interference for missions at 24
the Patuxent River Naval Air Station; 25
B. not greater than 46 miles, measured from location 26
38.29667N, 76.37668W; and 27
C. subject to modification if necessary to reflect changes in 28
missions or technology at the Patuxent River Naval Air Station or changes in wind energy 29
technology; or 30
(2) constructs a generating station if: 31
(i) the capacity of the generating station does not exceed 25 32
megawatts; 33 8 SENATE BILL 170
(ii) the electricity that may be exported for sale from the generating 1
station to the electric system is sold only on the wholesale market pursuant to an 2
interconnection, operation, and maintenance agreement with the local electric company; 3
and 4
(iii) at least 10% of the electricity generated at the generating station 5
each year is consumed on–site. 6
(b) (1) The Commission shall require a person that is exempted from the 7
requirement to obtain a certificate of public convenience and necessity to obtain approval 8
from the Commission under this section before the person may construct a generating 9
station described in subsection (a) of this section. 10
(G) (1) ON APPROVAL OF AN EXE MPTION FROM THE REQU IREMENT TO 11
OBTAIN A CERTIFICATE OF PUBLIC CONVENIENC E AND NECESSITY FOR THE 12
CONSTRUCTION OF A PR OPOSED GENERATING ST ATION THAT IS A COVE RED 13
PROJECT, AS DEFINED IN § 3–718 OF THE LABOR AND EMPLOYMENT ARTICLE, THE 14
DEVELOPER OF THE PRO POSED GENERATING STA TION SHALL MEET THE 15
REQUIREMENTS OF § 3–718 OF THE LABOR AND EMPLOYMENT ARTICLE. 16
(2) THE MARYLAND DEPARTMENT OF LABOR SHALL ENFORCE T HIS 17
SUBSECTION. 18
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect 19
October 1, 2023. 20