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