EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
[Brackets] indicate matter deleted from existing law.
*hb1393*
HOUSE BILL 1393
C5, M5, K3 4lr3220
By: Delegate Crosby
Introduced and read first time: February 9, 2024
Assigned to: Economic Matters
A BILL ENTITLED
AN ACT concerning 1
Electric System Planning – Scope and Funding 2
FOR the purpose of altering the scope of certain policy goals with regard to energy systems; 3
requiring the Public Service Commission to report on certain projects relating to 4
certain goals; altering the scope of certain funds that may be used for certain projects 5
related to the electric system; requiring the Commission to adopt regulations or issue 6
rules to require pursuit of federal funds in a certain manner; requiring the 7
Commission to adopt regulations to require investment in certain demand–side 8
reliability and efficiency improvement methods; altering the scope of projects to 9
which certain labor standards apply; and generally relating to public utilities and 10
electric system projects. 11
BY repealing and reenacting, with amendments, 12
Article – Public Utilities 13
Section 7–801 through 7–804 to be under the amended subtitle “Subtitle 8. Electric 14
System Planning” 15
Annotated Code of Maryland 16
(2020 Replacement Volume and 2023 Supplement) 17
BY repealing and reenacting, with amendments, 18
Article – Labor and Employment 19
Section 3–416 20
Annotated Code of Maryland 21
(2016 Replacement Volume and 2023 Supplement) 22
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 23
That the Laws of Maryland read as follows: 24
Article – Public Utilities 25
2 HOUSE BILL 1393
Subtitle 8. Electric [Distribution] System Planning. 1
7–801. 2
It is the goal of the State that the electric [distribution] system support, in a 3
cost–effective manner, the State’s policy goals with regard to: 4
(1) greenhouse gas reduction; 5
(2) renewable energy; 6
(3) decreasing dependence on electricity imported from other states; and 7
(4) achieving energy [distribution] SYSTEM resiliency, efficiency, and 8
reliability. 9
7–802. 10
On or before December 1, 2024, and each December 1 thereafter, the Commission 11
shall submit a report, in accordance with § 2–1257 of the State Government Article, to the 12
General Assembly with information regarding the current status of [electric distribution 13
system evolution] PROJECTS DESIGNED TO PROMOTE THE GOALS IDENTIFIED IN THIS 14
SECTION, including information on [electric distribution system] planning processes and 15
implementation that promote, as specific goals, the following: 16
(1) measures to decrease greenhouse gas emissions incident to electric 17
distribution, including high levels of distributed energy resources and electric vehicles; 18
(2) giving priority to vulnerable communities in the development of 19
distributed energy resources and electric vehicle infrastructure; 20
(3) energy efficiency; 21
(4) meeting anticipated increases in load; 22
(5) incorporation of energy storage technology as appropriate and prudent 23
to: 24
(i) support efficiency and reliability of the electric [distribution] 25
system; and 26
(ii) provide additional capacity to accommodate increased 27
distributed renewable electricity generation in connection with electric TRANSMISSION 28
AND distribution system modernization; 29
(6) efficient management of load variability; 30 HOUSE BILL 1393 3
(7) electric [distribution] system resiliency and reliability; 1
(8) bidirectional power flows; 2
(9) demand response and other nonwire and noncapital alternatives; 3
(10) increased use of distributed energy resources, including electric 4
vehicles; 5
(11) transparent stakeholder participation in ongoing electric [distribution] 6
system planning processes; and 7
(12) any other issues the Commission considers appropriate. 8
7–803. 9
(a) The General Assembly strongly encourages the electric companies of the State 10
to pursue diligently federal funds to meet the State’s policy goals for the electric 11
[distribution] system, including funds made available under [§§ 40101, 40103, and 40107 12
of] the federal Infrastructure Investment and Jobs Act OR THE FEDERAL INFLATION 13
REDUCTION ACT. 14
(b) The Commission and the Maryland Energy Administration shall provide 15
assistance and support to electric companies for applying for and obtaining access to federal 16
and other available funds to meet the State’s policy goals [for the electric distribution 17
system]. 18
(c) The Maryland Energy Administration shall identify funding sources that may 19
be available to electric companies to implement the State’s policy goals under § 7–802 of 20
this subtitle, including funding for: 21
(1) increasing the efficiency of electric [distribution] systems, including 22
through installation and integration of energy storage devices and operational changes and 23
upgrades; 24
(2) grid–hardening activities to reduce the occurrence of or consequences 25
of events that disrupt operations of the electric [distribution] system due to extreme 26
weather or natural disasters; 27
(3) other [distribution system–related upgrade] ELECTRIC SYSTEM 28
ENHANCEMENT activities available for funding under [§ 40101, § 40103, or § 40107 of] the 29
federal Infrastructure Investment and Jobs Act OR THE FEDERAL INFLATION 30
REDUCTION ACT; and 31
(4) other specific activities that the Commission identifies. 32 4 HOUSE BILL 1393
(d) As needed to promote the State’s policy goals under § 7–802 of this subtitle, 1
the Commission: 2
(1) shall require each electric company to report AT LEAST QUARTERLY 3
to the Commission and the Maryland Energy Administration on: 4
(i) the funding for which the electric company has applied; 5
(ii) the purposes for which the funding is intended to be used; 6
(iii) the status of the funding applications; and 7
(iv) conditions that must be met to obtain the funding; and 8
(2) [may] SHALL adopt regulations or issue orders: 9
(I) that require electric companies to apply for federal and other 10
available funds in a timely manner; AND 11
(II) IN ORDER TO ENSURE T HAT LEAST–COST DEBT IS USED. 12
7–804. 13
On or before July 1, 2025, the Commission shall adopt regulations or issue orders to: 14
(1) implement specific policies for electric [distribution] system planning; 15
(2) REQUIRE INVESTMENT I N DEMAND –SIDE METHODS AND 16
TECHNOLOGY TO IMPROV E RELIABILITY AND EF FICIENCY, INCLUDING VIRTUAL 17
POWER PLANTS ; and 18
(3) IMPLEMENT SPECIFIC P OLICIES FOR improvements in order to 19
promote the State’s policy goals under § 7–802 of this subtitle. 20
Article – Labor and Employment 21
3–416. 22
(a) This section applies: 23
(1) to a project undertaken by an investor–owned electric company or gas 24
and electric company that: 25
HOUSE BILL 1393 5
(i) involves the construction, reconstruction, installation, 1
demolition, restoration, or alteration of any electric infrastructure of the company, and any 2
related traffic control activities; and 3
(ii) is funded by federal funds to meet the State’s policy goals for 4
[the] electric [distribution] system PLANNING under Title 7, Subtitle 8 of the Public 5
Utilities Article, including funds made available under [§ 40101, § 40103, or § 40107 of] the 6
federal Infrastructure Investment and Jobs Act OR THE FEDERAL INFLATION 7
REDUCTION ACT; and 8
(2) only to the portion of the project supported by the federal funds. 9
(b) An investor–owned electric company or gas and electric company shall require 10
a contractor or subcontractor on a project described in subsection (a) of this section to: 11
(1) pay the area prevailing wage for each trade employed, including wages 12
and fringe benefits; 13
(2) offer health care and retirement benefits to the employees working on 14
the project; 15
(3) participate in an apprenticeship program registered with the State for 16
each trade employed on the project; 17
(4) establish and execute a plan for outreach, recruitment, and retention of 18
State residents to perform work on the project, with an aspirational goal of 25% of total 19
work hours performed by Maryland residents, including residents who are: 20
(i) returning citizens; 21
(ii) women; 22
(iii) minority individuals; or 23
(iv) veterans; 24
(5) have been in compliance with federal and State wage and hour laws for 25
the previous 3 years; 26
(6) be subject to all State reporting and compliance requirements; and 27
(7) maintain all appropriate licenses in good standing. 28
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect 29
October 1, 2024. 30