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