EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
[Brackets] indicate matter deleted from existing law.
*sb0689*
SENATE BILL 689
M5, C5 3lr2182
CF HB 904
By: Senator Lewis Young
Introduced and read first time: February 6, 2023
Assigned to: Education, Energy, and the Environment
A BILL ENTITLED
AN ACT concerning 1
Public Utilities – Energy Efficiency and Greenhouse Gas Emissions Reductions 2
– Alterations and Requirements 3
FOR the purpose of altering the goals and requirements of certain energy efficiency 4
programs to include certain greenhouse gas emissions reductions from electric 5
companies and gas companies beginning on a certain date; requiring the EmPOWER 6
Maryland Program to provide consumer rebates, and promote the use of certain 7
federal rebates, for certain technologies; requiring the Department of Housing and 8
Community Development and electric utilities to promote fuel switching from gas to 9
electricity; eliminating EmPOWER Maryland Program incentives for certain 10
fossil–fuel–powered products beginning on or before a certain date; requiring home 11
energy audits and home energy checkups to include a certain evaluation beginning 12
on or before a certain date; requiring the Department to establish a program for 13
issuing certain rebates; requiring the Department to contract with navigators to 14
facilitate whole–home retrofits; requiring a certain percentage of EmPOWER 15
Maryland Program energy savings to come from behind–the–meter programs; and 16
generally relating to energy efficiency and greenhouse gas emissions reductions in 17
the State. 18
BY repealing and reenacting, with amendments, 19
Article – Public Utilities 20
Section 7–211(d), (g), (h), (i), and (k) 21
Annotated Code of Maryland 22
(2020 Replacement Volume and 2022 Supplement) 23
BY repealing and reenacting, without amendments, 24
Article – Public Utilities 25
Section 7–211(e) and (f) 26
Annotated Code of Maryland 27
(2020 Replacement Volume and 2022 Supplement) 28
2 SENATE BILL 689
BY adding to 1
Article – Public Utilities 2
Section 7–211.1 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 – Public Utilities 8
7–211. 9
(d) Subject to review and approval by the Commission, each gas company and 10
electric company shall develop and implement programs and services to encourage and 11
promote: 12
(1) the efficient use and conservation of energy by consumers, gas 13
companies, and electric companies; AND 14
(2) THE REDUCTION OF GRE ENHOUSE GAS EMISSION S TO SUPPORT 15
THE REQUIREMENTS OF § 2–1204.1 OF THE ENVIRONMENT ARTICLE. 16
(e) As directed by the Commission, each municipal electric utility and each 17
electric cooperative that serves a population of less than 250,000 in its distribution territory 18
shall include energy efficiency and conservation programs or services as part of their 19
service to their customers. 20
(f) The Commission shall: 21
(1) require each gas company and electric company to establish any 22
program or service that the Commission deems appropriate and cost effective to encourage 23
and promote the efficient use and conservation of energy; 24
(2) adopt rate–making policies that provide cost recovery and, in 25
appropriate circumstances, reasonable financial incentives for gas companies and electric 26
companies to establish programs and services that encourage and promote the efficient use 27
and conservation of energy; and 28
(3) ensure that adoption of electric customer choice under Subtitle 5 of this 29
title does not adversely impact the continuation of cost–effective energy efficiency and 30
conservation programs. 31
(g) (1) Except as provided in subsection (e) of this section, on or before 32
December 31, 2008, by regulation or order, the Commission shall: 33
SENATE BILL 689 3
(i) to the extent that the Commission determines that cost–effective 1
energy efficiency and conservation programs and services are available, for each affected 2
class, require each electric company to procure or provide for its electricity customers 3
cost–effective energy efficiency and conservation programs and services with projected and 4
verifiable electricity savings that are designed to achieve a targeted reduction of at least 5
5% by the end of 2011 and 10% by the end of 2015 of per capita electricity consumed in the 6
electric company’s service territory during 2007; and 7
(ii) require each electric company to implement a cost–effective 8
demand response program in the electric company’s service territory that is designed to 9
achieve a targeted reduction of at least 5% by the end of 2011, 10% by the end of 2013, and 10
15% by the end of 2015, in per capita peak demand of electricity consumed in the electric 11
company’s service territory during 2007. 12
(2) (i) Except as provided in subsection (e) of this section, for the 13
duration of the 2021–2023 [and 2024–2026] program [cycles,] CYCLE, by regulation or 14
order, the Commission shall, to the extent that the Commission determines that 15
cost–effective energy efficiency and conservation programs and services are available, for 16
each affected class, require each electric company to procure or provide for its electricity 17
customers cost–effective energy efficiency and conservation programs and services with 18
projected and verifiable electricity savings that are designed on a trajectory to achieve a 19
targeted annual incremental gross energy savings of at least [the following annual 20
percentages,] 2.0% PER YEAR THROUGH 2023, calculated as a percentage of the electric 21
company’s 2016 weather–normalized gross retail sales and electricity losses[: 22
1. 2.0% per year in 2022 through 2024; 23
2. 2.25% per year in 2025 and 2026; and 24
3. 2.5% per year in 2027 and thereafter]. 25
(ii) [The savings trajectory shall use the approved 2016 plans 26
submitted under subsection (h)(2) of this section as a baseline for an incremental increase 27
of a rate of .20% per year until the minimum savings rate specified in subparagraph (i) of 28
this paragraph is achieved. 29
(iii)] The gross retail sales against which the savings are measured 30
shall: 31
1. reflect sales associated with customer classes served by 32
utility–administered programs only; and 33
2. be updated by the Commission for each plan submitted 34
under subsection (h)(2) of this section. 35
4 SENATE BILL 689
[(iv)] (III) The targeted annual incremental gross energy savings 1
shall be achieved based on the 3–year average of an electric company’s plan submitted 2
under subsection (h)(2) of this section. 3
[(v) For 2025 and thereafter, the core objective of the targeted 4
reductions under this section shall include development and implementation of a portfolio 5
of mutually reinforcing goals, including greenhouse gas emissions reduction, energy 6
savings, net customer benefits, and reaching underserved customers.] 7
(3) (I) EXCEPT AS PROVIDED IN SUBSECTION (E) OF THIS SECTION, 8
BEGINNING JANUARY 1, 2024, BY REGULATION OR ORD ER, THE COMMISSION SHALL 9
REQUIRE EACH ELECTRI C COMPANY AND GAS CO MPANY TO REDUCE GREE NHOUSE 10
GAS EMISSIONS FROM E ACH RATEPAYER CLASS RESULTING FROM THE D IRECT 11
CONSUMPTION OF ELECT RICITY AND NATURAL G AS BY AT LEAST 2% BELOW THE 12
2016 LEVEL EACH YEAR , WITH A CUMULATIVE IM PACT OF AT LEAST 14% BY 2031, 13
TO SUPPORT THE REQUI REMENTS OF § 2–1204.1 OF THE ENVIRONMENT ARTICLE. 14
(II) 1. EACH GAS COMPANY SHAL L ACHIEVE THE 15
GREENHOUSE GAS EMISS IONS REDUCTION TARGE TS REQUIRED UNDER 16
SUBPARAGRAPH (I) OF THIS PARAGRAPH TH ROUGH BUILDING SHELL 17
IMPROVEMENTS AND FUE L SWITCHING ONLY . 18
2. A GAS COMPANY MAY NOT USE THE REPLACEMENT OF 19
GAS APPLIANCES TO AC HIEVE THE GREENHOUSE GAS EMISSIONS REDUCT ION 20
TARGETS REQUIRED UND ER SUBPARAGRAPH (I) OF THIS PARAGRAPH . 21
(h) (1) (i) On or before July 1, 2008, and every 3 years thereafter, each 22
electric company shall consult with the Maryland Energy Administration regarding the 23
design and adequacy of the electric company’s plan to achieve the [electricity savings and 24
demand reduction] targets specified in subsection (g) of this section. 25
(ii) An electric company shall provide the Maryland Energy 26
Administration with any additional information regarding the plan, as requested. 27
(2) On or before September 1, 2008, and every 3 years thereafter, an 28
electric company shall submit its plan to the Commission that details the electric company’s 29
proposals for achieving the [electricity savings and demand reduction] targets specified in 30
subsection (g) of this section for the 3 subsequent calendar years. 31
(3) The Commission shall consider any written findings provided by the 32
Maryland Energy Administration regarding the design and adequacy of the plan. 33
(4) Each electric company shall provide annual updates to the Commission 34
and the Maryland Energy Administration on plan implementation and progress towards 35 SENATE BILL 689 5
achieving the [electricity savings and demand reduction] targets specified in subsection (g) 1
of this section. 2
(5) (i) The plan shall include a description of the proposed [energy 3
efficiency and conservation] programs and services [and the proposed demand response 4
program, anticipated costs], projected electricity savings, and any other information 5
requested by the Commission. 6
(ii) The plan shall address residential, commercial, and industrial 7
sectors as appropriate, including low–income communities and low– to moderate–income 8
communities. 9
(iii) 1. If, in connection with a program or service, the electric 10
company proposes to provide heating, ventilation, air conditioning, or refrigeration services 11
for its customers, the plan shall include procedures for the competitive selection of heating, 12
ventilation, air conditioning, or refrigeration service providers. 13
2. On request by the electric company and for good cause 14
shown, the Commission may waive the requirement that the electric company 15
competitively select heating, ventilation, air conditioning, or refrigeration providers under 16
subsubparagraph 1 of this subparagraph. 17
(6) The plan and any updates shall include a certification or recertification 18
by the electric company that, if an affiliate of the electric company provides heating, 19
ventilation, air conditioning, or refrigeration services through any existing contract or 20
obligation in connection with a program or service, the customers of the electric company’s 21
regulated services will not subsidize the operations of the affiliate. 22
(7) The Commission shall review each electric company’s plan to determine 23
if the plan is adequate and cost–effective in achieving the [electricity savings and demand 24
reduction] targets specified in subsection (g) of this section. 25
(i) (1) In determining whether a program or service encourages and promotes 26
the efficient use and conservation of energy, OR PROMOTES A REDUCT ION IN 27
GREENHOUSE GAS EMISS IONS, the Commission shall consider the: 28
(i) cost–effectiveness of the residential sector subportfolio and the 29
commercial and industrial sector subportfolio by utilizing: 30
1. the total resource cost test in order to compare the 31
electricity savings and demand reduction targets of the program or service with the results 32
of similar programs or services implemented in other jurisdictions, including: 33
A. participant nonenergy benefits; and 34
B. utility nonenergy benefits; and 35 6 SENATE BILL 689
2. the societal cost test in order to determine whether 1
cost–effectiveness requirements will be met prospectively, including: 2
A. participant nonenergy benefits; 3
B. utility nonenergy benefits; and 4
C. societal nonenergy benefits; 5
(ii) impact on rates of each ratepayer class; 6
(iii) impact on jobs; and 7
(iv) impact on the environment. 8
(2) Nonenergy benefits considered under paragraph (1) of this subsection 9
shall be quantifiable and directly related to a program or service. 10
(3) The Commission shall monitor and analyze the impact of each program 11
and service to ensure that the outcome of each program and service provides the best 12
possible results. 13
(4) In monitoring and analyzing the impact of a program or service under 14
paragraph (3) of this subsection, if the Commission finds that the outcome of the program 15
or services may not be providing the best possible results, the Commission shall direct the 16
electric company to include in its annual update under subsection (h)(4) of this section 17
specific measures to address the findings. 18
(5) An electric company that enters into a contract or obligation with an 19
affiliate of the electric company to provide heating, ventilation, air conditioning, or 20
refrigeration services in connection with a program or service shall notify the Commission 21
within 30 days after entering into the contract or obligation that the electric company: 22
(i) has entered into a contract or obligation with an affiliate of the 23
electric company; and 24
(ii) certifies that the customers of the electric company’s regulated 25
services will not subsidize the operations of the affiliate. 26
(k) On or before May 1 of each year, the Commission, in consultation with the 27
Maryland Energy Administration, shall report, subject to § 2–1257 of the State Government 28
Article, to the General Assembly on: 29
(1) the status of programs and services to encourage and promote the 30
efficient use and conservation of energy, including an evaluation of the impact of the 31
programs and services that are directed to low –income communities, low– to 32 SENATE BILL 689 7
moderate–income communities to the extent possible, and other particular classes of 1
ratepayers; 2
(2) a recommendation for the appropriate funding level to adequately fund 3
these programs and services; [and] 4
(3) in accordance with subsection (c) of this section, the per capita 5
electricity consumption and the peak demand for the previous calendar year; AND 6
(4) BEGINNING MAY 1, 2025, PROGRESS MADE TOWARD S REDUCING 7
GREENHOUSE GAS EMISS IONS IN ACCORDANCE W ITH SUBSECTION (G)(3) OF THIS 8
SECTION. 9
7–211.1. 10
(A) (1) IN THIS SECTION THE F OLLOWING WORDS HAVE THE MEANINGS 11
INDICATED. 12
(2) (I) “BEHIND–THE–METER PROGRAMS ” MEANS PROGRAMS 13
THAT IMPACT THE CUST OMER SIDE OF THE UTI LITY METER. 14
(II) “BEHIND–THE–METER PROGRAMS ” INCLUDE: 15
1. ENERGY EFFICIENCY PR OGRAMS; 16
2. BENEFICIAL ELECTRIFI CATION PROGRAMS ; 17
3. PASSIVE DEMAND REDUC TION PROGRAMS ; AND 18
4. ACTIVE DEMAND REDUCT ION PROGRAMS . 19
(3) “DEPARTMENT ” MEANS THE DEPARTMENT OF HOUSING AND 20
COMMUNITY DEVELOPMENT . 21
(4) “LOW–INCOME RESIDENTIAL C USTOMERS” MEANS CUSTOMERS 22
WHO QUALIFY FOR THE DEPARTMENT ’S LOW–INCOME ASSISTANCE PR OGRAMS, 23
INCLUDING: 24
(I) THE EMPOWER MARYLAND PROGRAM; 25
(II) THE MULTIFAMILY ENERGY EFFICIENCY AND HOUSING 26
AFFORDABILITY PROGRAM; AND 27
(III) THE WEATHERIZATION ASSISTANCE PROGRAM. 28 8 SENATE BILL 689
(5) “NAVIGATOR” MEANS A PERSON THAT SERVES AS A PROGRAM 1
DELIVERY HUB . 2
(B) (1) ON OR BEFORE JANUARY 1, 2024, THE EMPOWER MARYLAND 3
PROGRAM SHALL PROVIDE CONSUMER REBATES FOR , AND PROMOTE THE USE OF, 4
ANY AVAILABLE FEDERA L REBATES AVAILABLE FOR THE ADOPTION OF THE 5
FOLLOWING TECHNOLOGI ES TO REPLACE FOSSIL –FUEL–POWERED EQUIPMENT AN D 6
ELECTRIC RESISTANCE HEAT : 7
(I) HIGH–EFFICIENCY: 8
1. ELECTRIC HEATING ; 9
2. COOKING APPLIANCES ; 10
3. DRYERS; AND 11
4. HOT WATER HEATING ; AND 12
(II) ELECTRIFIED COMMERCI AL COOKING EQUIPMENT . 13
(2) PORTABLE HEAT PUMPS A ND ELECTRIC STOVES S HALL QUALIFY 14
FOR REBATES UNDER TH IS SUBSECTION. 15
(C) (1) THE DEPARTMENT AND ELECTR IC COMPANIES SHALL P ROMOTE 16
FUEL SWITCHING FROM GAS TO ELECTRICITY . 17
(2) ELECTRIC COMPANIES SH ALL PROMOTE THE AVAI LABILITY OF 18
FEDERAL REBATES THAT CAN BE USED TO SUPPO RT FUEL SWITCHING THROUGH A 19
PUBLIC SERVICE ANNOU NCEMENTS PROGRAM . 20
(D) BEGINNING ON OR BEFOR E JANUARY 1, 2024, EMPOWER MARYLAND 21
PROGRAM INCENTIVES FO R GAS , PROPANE, OIL, AND OTHER 22
GREENHOUSE –GAS–EMITTING APPLIANCES SHALL BE ELIMINATED . 23
(E) (1) BEGINNING ON OR BEFOR E JANUARY 1, 2024, ALL EMPOWER 24
MARYLAND PROGRAM HOME ENERGY A UDITS AND HOME ENERG Y CHECKUPS SHALL 25
INCLUDE AN EVALUATIO N OF THE READINESS O F A HOME FOR ELECTRI FICATION, 26
INCLUDING: 27
(I) THE CAPABILITY OF BR EAKER BOXES AND WIRI NG TO 28
ACCOMMODATE HOME ELEC TRIFICATION; AND 29 SENATE BILL 689 9
(II) ANY OTHER MEASURES T HAT ARE NECESSARY FO R HOME 1
ELECTRIFICATION . 2
(2) (I) SUBJECT TO SUBPARAGRA PH (II) OF THIS PARAGRAPH , THE 3
DEPARTMENT SHALL ESTA BLISH A PROGRAM FOR STATE–ISSUED REBATES OF UP 4
TO $2,000 PER RESIDENCE FOR BREAKE R PANEL AND WIRING R EPAIRS, 5
REPLACEMENTS , AND UPGRADES TO SUPP ORT HOME ELECTRIFICA TION. 6
(II) THE DEPARTMENT SHALL DEDU CT THE VALUE OF ANY 7
AVAILABLE FEDERAL RE BATES FROM THE REBAT E AMOUNT OFFERED UND ER 8
SUBPARAGRAPH (I) OF THIS PARAGRAPH. 9
(F) (1) ON OR BEFORE JANUARY 1, 2024, THE DEPARTMENT SHALL 10
CONTRACT WITH NAVIGA TORS TO FACILITATE W HOLE–HOME RETROFITS , 11
INCLUDING WEATHERIZA TION, ELECTRIFICATION , LEAD REMOVAL , MOLD 12
REMEDIATION , ASBESTOS REMEDIATION , AND BUILDING SHELL I MPROVEMENT S. 13
(2) A NAVIGATOR FACILITATI NG WHOLE–HOME RETROFITS MUST : 14
(I) PROVIDE A SINGLE POI NT OF CONTACT FOR LO W–INCOME 15
RESIDENTIAL CUSTOMER S, CONTRACTORS , AND MULTIFAMILY PROP ERTY OWNERS 16
WHO RENT TO LOW –INCOME RESIDENTIAL C USTOMERS; AND 17
(II) OFFER SE RVICES IN ANY LANGUA GE NEEDED BY 18
LOW–INCOME RESIDENTIAL C USTOMERS IN THE AREA SERVED BY THE NAVIGA TOR. 19
(G) BEGINNING JANUARY 1, 2025, AT LEAST 85% OF EMPOWER 20
MARYLAND PROGRAM ENERGY SAVING S SHALL COME FROM BE HIND–THE–METER 21
PROGRAMS THAT ARE US ED IN A CUSTOMER ’S RESIDENCE OR BUSIN ESS. 22
(H) PROGRAMS OPERATED BY THE DEPARTMENT FOR LOW –INCOME 23
RESIDENTIAL CUSTOMER S ARE NOT REQUIRED T O MEET THE EVALUATIO N, 24
MEASUREMENT , AND VERIFICATION REQ UIREMENT IN § 7–211(I) OF THIS SUBTITLE. 25
(I) THE DEPARTMENT SHALL ADOP T REGULATIONS TO CAR RY OUT THIS 26
SECTION. 27
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect 28
October 1, 2023. 29