EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
[Brackets] indicate matter deleted from existing law.
*hb1379*
HOUSE BILL 1379
M5, P2 4lr2959
CF SB 935
By: Delegates Adams and Arentz
Introduced and read first time: February 9, 2024
Assigned to: Economic Matters
A BILL ENTITLED
AN ACT concerning 1
Department of General Services – Renewable Natural Gas Pilot Program – 2
Establishment 3
FOR the purpose of requiring the Department of General Services, in consultation with the 4
University System of Maryland and the Department of the Environment, to establish 5
a Renewable Natural Gas Pilot Program in the Department on or before a certain 6
date; requiring the Department, in consultation with the Commission, to issue a 7
certain solicitation for a renewable natural gas contract; authorizing the Department 8
to enter into a contract to procure renewable natural gas; requiring the Department 9
to collect certain data, require the completion of certain lifecycle analyses, and 10
analyze certain environmental and economic costs and benefits; and generally 11
relating to the Renewable Natural Gas Pilot Program. 12
BY repealing and reenacting, without amendments, 13
Article – Public Utilities 14
Section 7–704.4(a)(1) and (3) 15
Annotated Code of Maryland 16
(2020 Replacement Volume and 2023 Supplement) 17
BY adding to 18
Article – State Finance and Procurement 19
Section 4–325 and 4–326 to be under the new part “Part IV. State Purchase of 20
Energy” 21
Annotated Code of Maryland 22
(2021 Replacement Volume and 2023 Supplement) 23
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 24
That the Laws of Maryland read as follows: 25
Article – Public Utilities 26
2 HOUSE BILL 1379
7–704.4. 1
(a) (1) In this section the following words have the meanings indicated. 2
(3) “Social cost of greenhouse gases” means the most recent social cost of 3
greenhouse gases adopted by the U.S. Environmental Protection Agency. 4
Article – State Finance and Procurement 5
4–323. RESERVED. 6
4–324. RESERVED. 7
PART IV. STATE PURCHASE OF ENERGY. 8
4–325. 9
(A) IN THIS PART THE FOLL OWING WORDS HAVE THE MEANINGS 10
INDICATED. 11
(B) “PROGRAM” MEANS THE RENEWABLE NATURAL GAS PILOT PROGRAM. 12
(C) “SOCIAL COST OF GREENH OUSE GASES” HAS THE MEANING STAT ED IN § 13
7–704.4 OF THE PUBLIC UTILITIES ARTICLE. 14
4–326. 15
(A) ON OR BEFORE JANUARY 1, 2025, THE DEPARTMENT , IN 16
CONSULTATI ON WITH THE UNIVERSITY SYSTEM OF MARYLAND AND THE 17
DEPARTMENT OF THE ENVIRONMENT , SHALL ESTABLISH A RENEWABLE NATURAL 18
GAS PILOT PROGRAM IN THE DEPARTMENT . 19
(B) THE PURPOSE OF THE PROGRAM IS TO PROCURE RENEWABLE NATURAL 20
GAS FOR USE AS A FUE L IN THE STATE’S TRANSPORTATION AND B UILDING SECTORS 21
TO EVALUATE THE ENVIRONMENTAL AND ECONOMIC BENEFITS AN D COSTS OF 22
REPLACING FOSSIL NAT URAL GAS WITH RENEWA BLE NATURAL GAS , ON A 23
SHORT–TERM AND LONG –TERM BASIS, IN FURTHERANCE OF TH E STATE’S NET–ZERO 24
STATEWIDE GREENHOUSE GAS EMISSIONS REDUCT ION GOALS. 25
(C) (1) UNDER THE PROGRAM, THE DEPARTMENT , IN CONSULTATION 26
WITH THE UNIVERSITY SYSTEM OF MARYLAND AND THE DEPARTMENT OF THE 27
ENVIRONMENT : 28
HOUSE BILL 1379 3
(I) SHALL ISSUE A COMPET ITIVE SEALED PROCURE MENT 1
SOLICITATION FOR REN EWABLE NATUR AL GAS; AND 2
(II) MAY ENTER INTO AT LE AST ONE CONTRACT TO PROCURE 3
RENEWABLE NATURAL GA S. 4
(2) WHEN ISSUING THE INVI TATION FOR BIDS UNDE R THIS 5
SUBSECTION, THE DEPARTMENT SHALL TAKE INTO CONSIDERATION : 6
(I) THE COST –EFFECTIVENESS OF THE ADOPTION OF 7
RENEWABLE NATURAL GA S; 8
(II) THE SOCIAL COST OF G REENHOUSE GASES ; AND 9
(III) THE STATE’S CLIMATE COMMITMENT S UNDER § 2–1204.2 10
OF THE ENVIRONMENT ARTICLE. 11
(3) (I) EXCEPT AS PROVIDED IN SUBPARAGRAPH (II) OF THIS 12
PARAGRAPH , RENEWABLE NATURAL GA S PROCURED THROUGH A CONTR ACT UNDER 13
PARAGRAPH (1) OF THIS SUBSECTION S HALL BE GENERATED IN THE STATE. 14
(II) IF SUFFICIENT RENEWAB LE NATURAL GAS GENER ATED IN 15
THE STATE IS NOT REASONAB LY AVAILABLE FOR THE PROGRAM, THE STATE MAY 16
PROCURE RENEWABLE NA TURAL GAS FRO M SOURCES OUTSIDE TH E STATE. 17
(D) THE DEPARTMENT SHALL : 18
(1) COLLECT GREENHOUSE G AS EMISSIONS REDUCTI ON DATA THAT 19
DETERMINES WHETHER R ENEWABLE NATURAL GAS MAY SUPPORT THE STATE’S 20
CLIMATE COMMITMENTS UNDER § 2–1204.2 OF THE ENVIRONMENT ARTICLE; 21
(2) REQUIRE THE GENERATOR OR OTHER APPROPRIATE ENTITY OF 22
RENEWABLE NATURAL GA S PROCURED UNDER THE PROGRAM TO COMPLETE A 23
CARBON LIFECYCLE ANA LYSIS THROUGH AN IND EPENDENT, THIRD–PARTY 24
CONTRACTOR ; AND 25
(3) ANALYZE THE ENVIRONMENTAL AND ECONOMIC BENEFITS AN D 26
COSTS OF EXPANDING THE USE OF RENEWABLE NATURAL GAS IN THE 27
TRANSPORTATION AND B UILDING SECTORS IN T HE STATE. 28
(E) THE PROGRAM SHALL TERMINA TE ON DECEMBER 31, 2027. 29
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect 30
October 1, 2024. It shall remain effective for a period of 3 years and 9 months and, at the 31 4 HOUSE BILL 1379
end of June 30, 2028, this Act, with no further action required by the General Assembly, 1
shall be abrogated and of no further force and effect. 2