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