MD
Maryland Senate Bill SB689

Maryland 2023 Regular Session

Maryland Senate Bill SB689 Compare Versions

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33 EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
44 [Brackets] indicate matter deleted from existing law.
55 *sb0689*
66
77 SENATE BILL 689
88 M5, C5 3lr2182
99 CF HB 904
1010 By: Senator Lewis Young
1111 Introduced and read first time: February 6, 2023
1212 Assigned to: Education, Energy, and the Environment
1313
1414 A BILL ENTITLED
1515
1616 AN ACT concerning 1
1717
1818 Public Utilities – Energy Efficiency and Greenhouse Gas Emissions Reductions 2
1919 – Alterations and Requirements 3
2020
2121 FOR the purpose of altering the goals and requirements of certain energy efficiency 4
2222 programs to include certain greenhouse gas emissions reductions from electric 5
2323 companies and gas companies beginning on a certain date; requiring the EmPOWER 6
2424 Maryland Program to provide consumer rebates, and promote the use of certain 7
2525 federal rebates, for certain technologies; requiring the Department of Housing and 8
2626 Community Development and electric utilities to promote fuel switching from gas to 9
2727 electricity; eliminating EmPOWER Maryland Program incentives for certain 10
2828 fossil–fuel–powered products beginning on or before a certain date; requiring home 11
2929 energy audits and home energy checkups to include a certain evaluation beginning 12
3030 on or before a certain date; requiring the Department to establish a program for 13
3131 issuing certain rebates; requiring the Department to contract with navigators to 14
3232 facilitate whole–home retrofits; requiring a certain percentage of EmPOWER 15
3333 Maryland Program energy savings to come from behind–the–meter programs; and 16
3434 generally relating to energy efficiency and greenhouse gas emissions reductions in 17
3535 the State. 18
3636
3737 BY repealing and reenacting, with amendments, 19
3838 Article – Public Utilities 20
3939 Section 7–211(d), (g), (h), (i), and (k) 21
4040 Annotated Code of Maryland 22
4141 (2020 Replacement Volume and 2022 Supplement) 23
4242
4343 BY repealing and reenacting, without amendments, 24
4444 Article – Public Utilities 25
4545 Section 7–211(e) and (f) 26
4646 Annotated Code of Maryland 27
4747 (2020 Replacement Volume and 2022 Supplement) 28
4848 2 SENATE BILL 689
4949
5050
5151 BY adding to 1
5252 Article – Public Utilities 2
5353 Section 7–211.1 3
5454 Annotated Code of Maryland 4
5555 (2020 Replacement Volume and 2022 Supplement) 5
5656
5757 SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 6
5858 That the Laws of Maryland read as follows: 7
5959
6060 Article – Public Utilities 8
6161
6262 7–211. 9
6363
6464 (d) Subject to review and approval by the Commission, each gas company and 10
6565 electric company shall develop and implement programs and services to encourage and 11
6666 promote: 12
6767
6868 (1) the efficient use and conservation of energy by consumers, gas 13
6969 companies, and electric companies; AND 14
7070
7171 (2) THE REDUCTION OF GRE ENHOUSE GAS EMISSION S TO SUPPORT 15
7272 THE REQUIREMENTS OF § 2–1204.1 OF THE ENVIRONMENT ARTICLE. 16
7373
7474 (e) As directed by the Commission, each municipal electric utility and each 17
7575 electric cooperative that serves a population of less than 250,000 in its distribution territory 18
7676 shall include energy efficiency and conservation programs or services as part of their 19
7777 service to their customers. 20
7878
7979 (f) The Commission shall: 21
8080
8181 (1) require each gas company and electric company to establish any 22
8282 program or service that the Commission deems appropriate and cost effective to encourage 23
8383 and promote the efficient use and conservation of energy; 24
8484
8585 (2) adopt rate–making policies that provide cost recovery and, in 25
8686 appropriate circumstances, reasonable financial incentives for gas companies and electric 26
8787 companies to establish programs and services that encourage and promote the efficient use 27
8888 and conservation of energy; and 28
8989
9090 (3) ensure that adoption of electric customer choice under Subtitle 5 of this 29
9191 title does not adversely impact the continuation of cost–effective energy efficiency and 30
9292 conservation programs. 31
9393
9494 (g) (1) Except as provided in subsection (e) of this section, on or before 32
9595 December 31, 2008, by regulation or order, the Commission shall: 33
9696 SENATE BILL 689 3
9797
9898
9999 (i) to the extent that the Commission determines that cost–effective 1
100100 energy efficiency and conservation programs and services are available, for each affected 2
101101 class, require each electric company to procure or provide for its electricity customers 3
102102 cost–effective energy efficiency and conservation programs and services with projected and 4
103103 verifiable electricity savings that are designed to achieve a targeted reduction of at least 5
104104 5% by the end of 2011 and 10% by the end of 2015 of per capita electricity consumed in the 6
105105 electric company’s service territory during 2007; and 7
106106
107107 (ii) require each electric company to implement a cost–effective 8
108108 demand response program in the electric company’s service territory that is designed to 9
109109 achieve a targeted reduction of at least 5% by the end of 2011, 10% by the end of 2013, and 10
110110 15% by the end of 2015, in per capita peak demand of electricity consumed in the electric 11
111111 company’s service territory during 2007. 12
112112
113113 (2) (i) Except as provided in subsection (e) of this section, for the 13
114114 duration of the 2021–2023 [and 2024–2026] program [cycles,] CYCLE, by regulation or 14
115115 order, the Commission shall, to the extent that the Commission determines that 15
116116 cost–effective energy efficiency and conservation programs and services are available, for 16
117117 each affected class, require each electric company to procure or provide for its electricity 17
118118 customers cost–effective energy efficiency and conservation programs and services with 18
119119 projected and verifiable electricity savings that are designed on a trajectory to achieve a 19
120120 targeted annual incremental gross energy savings of at least [the following annual 20
121121 percentages,] 2.0% PER YEAR THROUGH 2023, calculated as a percentage of the electric 21
122122 company’s 2016 weather–normalized gross retail sales and electricity losses[: 22
123123
124124 1. 2.0% per year in 2022 through 2024; 23
125125
126126 2. 2.25% per year in 2025 and 2026; and 24
127127
128128 3. 2.5% per year in 2027 and thereafter]. 25
129129
130130 (ii) [The savings trajectory shall use the approved 2016 plans 26
131131 submitted under subsection (h)(2) of this section as a baseline for an incremental increase 27
132132 of a rate of .20% per year until the minimum savings rate specified in subparagraph (i) of 28
133133 this paragraph is achieved. 29
134134
135135 (iii)] The gross retail sales against which the savings are measured 30
136136 shall: 31
137137
138138 1. reflect sales associated with customer classes served by 32
139139 utility–administered programs only; and 33
140140
141141 2. be updated by the Commission for each plan submitted 34
142142 under subsection (h)(2) of this section. 35
143143 4 SENATE BILL 689
144144
145145
146146 [(iv)] (III) The targeted annual incremental gross energy savings 1
147147 shall be achieved based on the 3–year average of an electric company’s plan submitted 2
148148 under subsection (h)(2) of this section. 3
149149
150150 [(v) For 2025 and thereafter, the core objective of the targeted 4
151151 reductions under this section shall include development and implementation of a portfolio 5
152152 of mutually reinforcing goals, including greenhouse gas emissions reduction, energy 6
153153 savings, net customer benefits, and reaching underserved customers.] 7
154154
155155 (3) (I) EXCEPT AS PROVIDED IN SUBSECTION (E) OF THIS SECTION, 8
156156 BEGINNING JANUARY 1, 2024, BY REGULATION OR ORD ER, THE COMMISSION SHALL 9
157157 REQUIRE EACH ELECTRI C COMPANY AND GAS CO MPANY TO REDUCE GREE NHOUSE 10
158158 GAS EMISSIONS FROM E ACH RATEPAYER CLASS RESULTING FROM THE D IRECT 11
159159 CONSUMPTION OF ELECT RICITY AND NATURAL G AS BY AT LEAST 2% BELOW THE 12
160160 2016 LEVEL EACH YEAR , WITH A CUMULATIVE IM PACT OF AT LEAST 14% BY 2031, 13
161161 TO SUPPORT THE REQUI REMENTS OF § 2–1204.1 OF THE ENVIRONMENT ARTICLE. 14
162162
163163 (II) 1. EACH GAS COMPANY SHAL L ACHIEVE THE 15
164164 GREENHOUSE GAS EMISS IONS REDUCTION TARGE TS REQUIRED UNDER 16
165165 SUBPARAGRAPH (I) OF THIS PARAGRAPH TH ROUGH BUILDING SHELL 17
166166 IMPROVEMENTS AND FUE L SWITCHING ONLY . 18
167167
168168 2. A GAS COMPANY MAY NOT USE THE REPLACEMENT OF 19
169169 GAS APPLIANCES TO AC HIEVE THE GREENHOUSE GAS EMISSIONS REDUCT ION 20
170170 TARGETS REQUIRED UND ER SUBPARAGRAPH (I) OF THIS PARAGRAPH . 21
171171
172172 (h) (1) (i) On or before July 1, 2008, and every 3 years thereafter, each 22
173173 electric company shall consult with the Maryland Energy Administration regarding the 23
174174 design and adequacy of the electric company’s plan to achieve the [electricity savings and 24
175175 demand reduction] targets specified in subsection (g) of this section. 25
176176
177177 (ii) An electric company shall provide the Maryland Energy 26
178178 Administration with any additional information regarding the plan, as requested. 27
179179
180180 (2) On or before September 1, 2008, and every 3 years thereafter, an 28
181181 electric company shall submit its plan to the Commission that details the electric company’s 29
182182 proposals for achieving the [electricity savings and demand reduction] targets specified in 30
183183 subsection (g) of this section for the 3 subsequent calendar years. 31
184184
185185 (3) The Commission shall consider any written findings provided by the 32
186186 Maryland Energy Administration regarding the design and adequacy of the plan. 33
187187
188188 (4) Each electric company shall provide annual updates to the Commission 34
189189 and the Maryland Energy Administration on plan implementation and progress towards 35 SENATE BILL 689 5
190190
191191
192192 achieving the [electricity savings and demand reduction] targets specified in subsection (g) 1
193193 of this section. 2
194194
195195 (5) (i) The plan shall include a description of the proposed [energy 3
196196 efficiency and conservation] programs and services [and the proposed demand response 4
197197 program, anticipated costs], projected electricity savings, and any other information 5
198198 requested by the Commission. 6
199199
200200 (ii) The plan shall address residential, commercial, and industrial 7
201201 sectors as appropriate, including low–income communities and low– to moderate–income 8
202202 communities. 9
203203
204204 (iii) 1. If, in connection with a program or service, the electric 10
205205 company proposes to provide heating, ventilation, air conditioning, or refrigeration services 11
206206 for its customers, the plan shall include procedures for the competitive selection of heating, 12
207207 ventilation, air conditioning, or refrigeration service providers. 13
208208
209209 2. On request by the electric company and for good cause 14
210210 shown, the Commission may waive the requirement that the electric company 15
211211 competitively select heating, ventilation, air conditioning, or refrigeration providers under 16
212212 subsubparagraph 1 of this subparagraph. 17
213213
214214 (6) The plan and any updates shall include a certification or recertification 18
215215 by the electric company that, if an affiliate of the electric company provides heating, 19
216216 ventilation, air conditioning, or refrigeration services through any existing contract or 20
217217 obligation in connection with a program or service, the customers of the electric company’s 21
218218 regulated services will not subsidize the operations of the affiliate. 22
219219
220220 (7) The Commission shall review each electric company’s plan to determine 23
221221 if the plan is adequate and cost–effective in achieving the [electricity savings and demand 24
222222 reduction] targets specified in subsection (g) of this section. 25
223223
224224 (i) (1) In determining whether a program or service encourages and promotes 26
225225 the efficient use and conservation of energy, OR PROMOTES A REDUCT ION IN 27
226226 GREENHOUSE GAS EMISS IONS, the Commission shall consider the: 28
227227
228228 (i) cost–effectiveness of the residential sector subportfolio and the 29
229229 commercial and industrial sector subportfolio by utilizing: 30
230230
231231 1. the total resource cost test in order to compare the 31
232232 electricity savings and demand reduction targets of the program or service with the results 32
233233 of similar programs or services implemented in other jurisdictions, including: 33
234234
235235 A. participant nonenergy benefits; and 34
236236
237237 B. utility nonenergy benefits; and 35 6 SENATE BILL 689
238238
239239
240240
241241 2. the societal cost test in order to determine whether 1
242242 cost–effectiveness requirements will be met prospectively, including: 2
243243
244244 A. participant nonenergy benefits; 3
245245
246246 B. utility nonenergy benefits; and 4
247247
248248 C. societal nonenergy benefits; 5
249249
250250 (ii) impact on rates of each ratepayer class; 6
251251
252252 (iii) impact on jobs; and 7
253253
254254 (iv) impact on the environment. 8
255255
256256 (2) Nonenergy benefits considered under paragraph (1) of this subsection 9
257257 shall be quantifiable and directly related to a program or service. 10
258258
259259 (3) The Commission shall monitor and analyze the impact of each program 11
260260 and service to ensure that the outcome of each program and service provides the best 12
261261 possible results. 13
262262
263263 (4) In monitoring and analyzing the impact of a program or service under 14
264264 paragraph (3) of this subsection, if the Commission finds that the outcome of the program 15
265265 or services may not be providing the best possible results, the Commission shall direct the 16
266266 electric company to include in its annual update under subsection (h)(4) of this section 17
267267 specific measures to address the findings. 18
268268
269269 (5) An electric company that enters into a contract or obligation with an 19
270270 affiliate of the electric company to provide heating, ventilation, air conditioning, or 20
271271 refrigeration services in connection with a program or service shall notify the Commission 21
272272 within 30 days after entering into the contract or obligation that the electric company: 22
273273
274274 (i) has entered into a contract or obligation with an affiliate of the 23
275275 electric company; and 24
276276
277277 (ii) certifies that the customers of the electric company’s regulated 25
278278 services will not subsidize the operations of the affiliate. 26
279279
280280 (k) On or before May 1 of each year, the Commission, in consultation with the 27
281281 Maryland Energy Administration, shall report, subject to § 2–1257 of the State Government 28
282282 Article, to the General Assembly on: 29
283283
284284 (1) the status of programs and services to encourage and promote the 30
285285 efficient use and conservation of energy, including an evaluation of the impact of the 31
286286 programs and services that are directed to low –income communities, low– to 32 SENATE BILL 689 7
287287
288288
289289 moderate–income communities to the extent possible, and other particular classes of 1
290290 ratepayers; 2
291291
292292 (2) a recommendation for the appropriate funding level to adequately fund 3
293293 these programs and services; [and] 4
294294
295295 (3) in accordance with subsection (c) of this section, the per capita 5
296296 electricity consumption and the peak demand for the previous calendar year; AND 6
297297
298298 (4) BEGINNING MAY 1, 2025, PROGRESS MADE TOWARD S REDUCING 7
299299 GREENHOUSE GAS EMISS IONS IN ACCORDANCE W ITH SUBSECTION (G)(3) OF THIS 8
300300 SECTION. 9
301301
302302 7–211.1. 10
303303
304304 (A) (1) IN THIS SECTION THE F OLLOWING WORDS HAVE THE MEANINGS 11
305305 INDICATED. 12
306306
307307 (2) (I) “BEHIND–THE–METER PROGRAMS ” MEANS PROGRAMS 13
308308 THAT IMPACT THE CUST OMER SIDE OF THE UTI LITY METER. 14
309309
310310 (II) “BEHIND–THE–METER PROGRAMS ” INCLUDE: 15
311311
312312 1. ENERGY EFFICIENCY PR OGRAMS; 16
313313
314314 2. BENEFICIAL ELECTRIFI CATION PROGRAMS ; 17
315315
316316 3. PASSIVE DEMAND REDUC TION PROGRAMS ; AND 18
317317
318318 4. ACTIVE DEMAND REDUCT ION PROGRAMS . 19
319319
320320 (3) “DEPARTMENT ” MEANS THE DEPARTMENT OF HOUSING AND 20
321321 COMMUNITY DEVELOPMENT . 21
322322
323323 (4) “LOW–INCOME RESIDENTIAL C USTOMERS” MEANS CUSTOMERS 22
324324 WHO QUALIFY FOR THE DEPARTMENT ’S LOW–INCOME ASSISTANCE PR OGRAMS, 23
325325 INCLUDING: 24
326326
327327 (I) THE EMPOWER MARYLAND PROGRAM; 25
328328
329329 (II) THE MULTIFAMILY ENERGY EFFICIENCY AND HOUSING 26
330330 AFFORDABILITY PROGRAM; AND 27
331331
332332 (III) THE WEATHERIZATION ASSISTANCE PROGRAM. 28 8 SENATE BILL 689
333333
334334
335335
336336 (5) “NAVIGATOR” MEANS A PERSON THAT SERVES AS A PROGRAM 1
337337 DELIVERY HUB . 2
338338
339339 (B) (1) ON OR BEFORE JANUARY 1, 2024, THE EMPOWER MARYLAND 3
340340 PROGRAM SHALL PROVIDE CONSUMER REBATES FOR , AND PROMOTE THE USE OF, 4
341341 ANY AVAILABLE FEDERA L REBATES AVAILABLE FOR THE ADOPTION OF THE 5
342342 FOLLOWING TECHNOLOGI ES TO REPLACE FOSSIL –FUEL–POWERED EQUIPMENT AN D 6
343343 ELECTRIC RESISTANCE HEAT : 7
344344
345345 (I) HIGH–EFFICIENCY: 8
346346
347347 1. ELECTRIC HEATING ; 9
348348
349349 2. COOKING APPLIANCES ; 10
350350
351351 3. DRYERS; AND 11
352352
353353 4. HOT WATER HEATING ; AND 12
354354
355355 (II) ELECTRIFIED COMMERCI AL COOKING EQUIPMENT . 13
356356
357357 (2) PORTABLE HEAT PUMPS A ND ELECTRIC STOVES S HALL QUALIFY 14
358358 FOR REBATES UNDER TH IS SUBSECTION. 15
359359
360360 (C) (1) THE DEPARTMENT AND ELECTR IC COMPANIES SHALL P ROMOTE 16
361361 FUEL SWITCHING FROM GAS TO ELECTRICITY . 17
362362
363363 (2) ELECTRIC COMPANIES SH ALL PROMOTE THE AVAI LABILITY OF 18
364364 FEDERAL REBATES THAT CAN BE USED TO SUPPO RT FUEL SWITCHING THROUGH A 19
365365 PUBLIC SERVICE ANNOU NCEMENTS PROGRAM . 20
366366
367367 (D) BEGINNING ON OR BEFOR E JANUARY 1, 2024, EMPOWER MARYLAND 21
368368 PROGRAM INCENTIVES FO R GAS , PROPANE, OIL, AND OTHER 22
369369 GREENHOUSE –GAS–EMITTING APPLIANCES SHALL BE ELIMINATED . 23
370370
371371 (E) (1) BEGINNING ON OR BEFOR E JANUARY 1, 2024, ALL EMPOWER 24
372372 MARYLAND PROGRAM HOME ENERGY A UDITS AND HOME ENERG Y CHECKUPS SHALL 25
373373 INCLUDE AN EVALUATIO N OF THE READINESS O F A HOME FOR ELECTRI FICATION, 26
374374 INCLUDING: 27
375375
376376 (I) THE CAPABILITY OF BR EAKER BOXES AND WIRI NG TO 28
377377 ACCOMMODATE HOME ELEC TRIFICATION; AND 29 SENATE BILL 689 9
378378
379379
380380
381381 (II) ANY OTHER MEASURES T HAT ARE NECESSARY FO R HOME 1
382382 ELECTRIFICATION . 2
383383
384384 (2) (I) SUBJECT TO SUBPARAGRA PH (II) OF THIS PARAGRAPH , THE 3
385385 DEPARTMENT SHALL ESTA BLISH A PROGRAM FOR STATE–ISSUED REBATES OF UP 4
386386 TO $2,000 PER RESIDENCE FOR BREAKE R PANEL AND WIRING R EPAIRS, 5
387387 REPLACEMENTS , AND UPGRADES TO SUPP ORT HOME ELECTRIFICA TION. 6
388388
389389 (II) THE DEPARTMENT SHALL DEDU CT THE VALUE OF ANY 7
390390 AVAILABLE FEDERAL RE BATES FROM THE REBAT E AMOUNT OFFERED UND ER 8
391391 SUBPARAGRAPH (I) OF THIS PARAGRAPH. 9
392392
393393 (F) (1) ON OR BEFORE JANUARY 1, 2024, THE DEPARTMENT SHALL 10
394394 CONTRACT WITH NAVIGA TORS TO FACILITATE W HOLE–HOME RETROFITS , 11
395395 INCLUDING WEATHERIZA TION, ELECTRIFICATION , LEAD REMOVAL , MOLD 12
396396 REMEDIATION , ASBESTOS REMEDIATION , AND BUILDING SHELL I MPROVEMENT S. 13
397397
398398 (2) A NAVIGATOR FACILITATI NG WHOLE–HOME RETROFITS MUST : 14
399399
400400 (I) PROVIDE A SINGLE POI NT OF CONTACT FOR LO W–INCOME 15
401401 RESIDENTIAL CUSTOMER S, CONTRACTORS , AND MULTIFAMILY PROP ERTY OWNERS 16
402402 WHO RENT TO LOW –INCOME RESIDENTIAL C USTOMERS; AND 17
403403
404404 (II) OFFER SE RVICES IN ANY LANGUA GE NEEDED BY 18
405405 LOW–INCOME RESIDENTIAL C USTOMERS IN THE AREA SERVED BY THE NAVIGA TOR. 19
406406
407407 (G) BEGINNING JANUARY 1, 2025, AT LEAST 85% OF EMPOWER 20
408408 MARYLAND PROGRAM ENERGY SAVING S SHALL COME FROM BE HIND–THE–METER 21
409409 PROGRAMS THAT ARE US ED IN A CUSTOMER ’S RESIDENCE OR BUSIN ESS. 22
410410
411411 (H) PROGRAMS OPERATED BY THE DEPARTMENT FOR LOW –INCOME 23
412412 RESIDENTIAL CUSTOMER S ARE NOT REQUIRED T O MEET THE EVALUATIO N, 24
413413 MEASUREMENT , AND VERIFICATION REQ UIREMENT IN § 7–211(I) OF THIS SUBTITLE. 25
414414
415415 (I) THE DEPARTMENT SHALL ADOP T REGULATIONS TO CAR RY OUT THIS 26
416416 SECTION. 27
417417
418418 SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect 28
419419 October 1, 2023. 29
420420