Maryland 2024 Regular Session

Maryland House Bill HB1379 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1
2	2
3	3	EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
4	4	[Brackets] indicate matter deleted from existing law.
5	5	hb1379
6	6
7	7	HOUSE BILL 1379
8	8	M5, P2 4lr2959
9	9	CF SB 935
10	10	By: Delegates Adams and Arentz
11	11	Introduced and read first time: February 9, 2024
12	12	Assigned to: Economic Matters
13	13
14	14	A BILL ENTITLED
15	15
16	16	AN ACT concerning 1
17	17
18	18	Department of General Services – Renewable Natural Gas Pilot Program – 2
19	19	Establishment 3
20	20
21	21	FOR the purpose of requiring the Department of General Services, in consultation with the 4
22	22	University System of Maryland and the Department of the Environment, to establish 5
23	23	a Renewable Natural Gas Pilot Program in the Department on or before a certain 6
24	24	date; requiring the Department, in consultation with the Commission, to issue a 7
25	25	certain solicitation for a renewable natural gas contract; authorizing the Department 8
26	26	to enter into a contract to procure renewable natural gas; requiring the Department 9
27	27	to collect certain data, require the completion of certain lifecycle analyses, and 10
28	28	analyze certain environmental and economic costs and benefits; and generally 11
29	29	relating to the Renewable Natural Gas Pilot Program. 12
30	30
31	31	BY repealing and reenacting, without amendments, 13
32	32	Article – Public Utilities 14
33	33	Section 7–704.4(a)(1) and (3) 15
34	34	Annotated Code of Maryland 16
35	35	(2020 Replacement Volume and 2023 Supplement) 17
36	36
37	37	BY adding to 18
38	38	Article – State Finance and Procurement 19
39	39	Section 4–325 and 4–326 to be under the new part “Part IV. State Purchase of 20
40	40	Energy” 21
41	41	Annotated Code of Maryland 22
42	42	(2021 Replacement Volume and 2023 Supplement) 23
43	43
44	44	SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 24
45	45	That the Laws of Maryland read as follows: 25
46	46
47	47	Article – Public Utilities 26
48	48	2 HOUSE BILL 1379
49	49
50	50
51	51	7–704.4. 1
52	52
53	53	(a) (1) In this section the following words have the meanings indicated. 2
54	54
55	55	(3) “Social cost of greenhouse gases” means the most recent social cost of 3
56	56	greenhouse gases adopted by the U.S. Environmental Protection Agency. 4
57	57
58	58	Article – State Finance and Procurement 5
59	59
60	60	4–323. RESERVED. 6
61	61
62	62	4–324. RESERVED. 7
63	63
64	64	PART IV. STATE PURCHASE OF ENERGY. 8
65	65
66	66	4–325. 9
67	67
68	68	(A) IN THIS PART THE FOLL OWING WORDS HAVE THE MEANINGS 10
69	69	INDICATED. 11
70	70
71	71	(B) “PROGRAM” MEANS THE RENEWABLE NATURAL GAS PILOT PROGRAM. 12
72	72
73	73	(C) “SOCIAL COST OF GREENH OUSE GASES” HAS THE MEANING STAT ED IN § 13
74	74	7–704.4 OF THE PUBLIC UTILITIES ARTICLE. 14
75	75
76	76	4–326. 15
77	77
78	78	(A) ON OR BEFORE JANUARY 1, 2025, THE DEPARTMENT , IN 16
79	79	CONSULTATI ON WITH THE UNIVERSITY SYSTEM OF MARYLAND AND THE 17
80	80	DEPARTMENT OF THE ENVIRONMENT , SHALL ESTABLISH A RENEWABLE NATURAL 18
81	81	GAS PILOT PROGRAM IN THE DEPARTMENT . 19
82	82
83	83	(B) THE PURPOSE OF THE PROGRAM IS TO PROCURE RENEWABLE NATURAL 20
84	84	GAS FOR USE AS A FUE L IN THE STATE’S TRANSPORTATION AND B UILDING SECTORS 21
85	85	TO EVALUATE THE ENVIRONMENTAL AND ECONOMIC BENEFITS AN D COSTS OF 22
86	86	REPLACING FOSSIL NAT URAL GAS WITH RENEWA BLE NATURAL GAS , ON A 23
87	87	SHORT–TERM AND LONG –TERM BASIS, IN FURTHERANCE OF TH E STATE’S NET–ZERO 24
88	88	STATEWIDE GREENHOUSE GAS EMISSIONS REDUCT ION GOALS. 25
89	89
90	90	(C) (1) UNDER THE PROGRAM, THE DEPARTMENT , IN CONSULTATION 26
91	91	WITH THE UNIVERSITY SYSTEM OF MARYLAND AND THE DEPARTMENT OF THE 27
92	92	ENVIRONMENT : 28
93	93	HOUSE BILL 1379 3
94	94
95	95
96	96	(I) SHALL ISSUE A COMPET ITIVE SEALED PROCURE MENT 1
97	97	SOLICITATION FOR REN EWABLE NATUR AL GAS; AND 2
98	98
99	99	(II) MAY ENTER INTO AT LE AST ONE CONTRACT TO PROCURE 3
100	100	RENEWABLE NATURAL GA S. 4
101	101
102	102	(2) WHEN ISSUING THE INVI TATION FOR BIDS UNDE R THIS 5
103	103	SUBSECTION, THE DEPARTMENT SHALL TAKE INTO CONSIDERATION : 6
104	104
105	105	(I) THE COST –EFFECTIVENESS OF THE ADOPTION OF 7
106	106	RENEWABLE NATURAL GA S; 8
107	107
108	108	(II) THE SOCIAL COST OF G REENHOUSE GASES ; AND 9
109	109
110	110	(III) THE STATE’S CLIMATE COMMITMENT S UNDER § 2–1204.2 10
111	111	OF THE ENVIRONMENT ARTICLE. 11
112	112
113	113	(3) (I) EXCEPT AS PROVIDED IN SUBPARAGRAPH (II) OF THIS 12
114	114	PARAGRAPH , RENEWABLE NATURAL GA S PROCURED THROUGH A CONTR ACT UNDER 13
115	115	PARAGRAPH (1) OF THIS SUBSECTION S HALL BE GENERATED IN THE STATE. 14
116	116
117	117	(II) IF SUFFICIENT RENEWAB LE NATURAL GAS GENER ATED IN 15
118	118	THE STATE IS NOT REASONAB LY AVAILABLE FOR THE PROGRAM, THE STATE MAY 16
119	119	PROCURE RENEWABLE NA TURAL GAS FRO M SOURCES OUTSIDE TH E STATE. 17
120	120
121	121	(D) THE DEPARTMENT SHALL : 18
122	122
123	123	(1) COLLECT GREENHOUSE G AS EMISSIONS REDUCTI ON DATA THAT 19
124	124	DETERMINES WHETHER R ENEWABLE NATURAL GAS MAY SUPPORT THE STATE’S 20
125	125	CLIMATE COMMITMENTS UNDER § 2–1204.2 OF THE ENVIRONMENT ARTICLE; 21
126	126
127	127	(2) REQUIRE THE GENERATOR OR OTHER APPROPRIATE ENTITY OF 22
128	128	RENEWABLE NATURAL GA S PROCURED UNDER THE PROGRAM TO COMPLETE A 23
129	129	CARBON LIFECYCLE ANA LYSIS THROUGH AN IND EPENDENT, THIRD–PARTY 24
130	130	CONTRACTOR ; AND 25
131	131
132	132	(3) ANALYZE THE ENVIRONMENTAL AND ECONOMIC BENEFITS AN D 26
133	133	COSTS OF EXPANDING THE USE OF RENEWABLE NATURAL GAS IN THE 27
134	134	TRANSPORTATION AND B UILDING SECTORS IN T HE STATE. 28
135	135
136	136	(E) THE PROGRAM SHALL TERMINA TE ON DECEMBER 31, 2027. 29
137	137
138	138	SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect 30
139	139	October 1, 2024. It shall remain effective for a period of 3 years and 9 months and, at the 31 4 HOUSE BILL 1379
140	140
141	141
142	142	end of June 30, 2028, this Act, with no further action required by the General Assembly, 1
143	143	shall be abrogated and of no further force and effect. 2