MD
Maryland House Bill HB1393

Maryland 2024 Regular Session

Maryland House Bill HB1393 Compare Versions

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1- WES MOORE, Governor Ch. 540
21
3-– 1 –
4-Chapter 540
5-(House Bill 1393)
62
7-AN ACT concerning
3+EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
4+ [Brackets] indicate matter deleted from existing law.
5+ Underlining indicates amendments to bill.
6+ Strike out indicates matter stricken from the bill by amendment or deleted from the law by
7+amendment.
8+ Italics indicate opposite chamber/conference committee amendments.
9+ *hb1393*
810
9-Electric System Planning – Scope and Funding
11+HOUSE BILL 1393
12+C5, M5, K3 (4lr3220)
13+ENROLLED BILL
14+— Economic Matters/Education, Energy, and the Environment —
15+Introduced by Delegate Crosby
1016
11-FOR the purpose of altering the scope of certain policy goals with regard to energy systems;
12-requiring the Public Service Commission to report on certain projects relating to
13-certain goals; altering the scope of certain funds that may be used for certain projects
14-related to the electric system; requiring the Commission to adopt regulations or issue
15-rules to require pursuit of federal funds in a certain manner; requiring the
16-Commission to adopt regulations to require investment in certain demand–side
17-reliability and efficiency improvement methods; requiring that certain regulations
18-adopted and orders issued by the Commission be developed in a certain manner and
19-establish separate requirements for certain electric companies under certain
20-circumstances; altering the scope of projects to which certain labor standards apply;
21-and generally relating to public utilities and electric system projects.
17+Read and Examined by Proofreaders:
2218
23-BY repealing and reenacting, with amendments,
24- Article – Public Utilities
25-Section 7–801 through 7–804 to be under the amended subtitle “Subtitle 8. Electric
26-System Planning”
27- Annotated Code of Maryland
28- (2020 Replacement Volume and 2023 Supplement)
19+_______________________________________________
20+Proofreader.
21+_______________________________________________
22+Proofreader.
2923
30-BY repealing and reenacting, with amendments,
31- Article – Labor and Employment
32-Section 3–416
33- Annotated Code of Maryland
34- (2016 Replacement Volume and 2023 Supplement)
24+Sealed with the Great Seal and presented to the Governor, for his approval this
3525
36- SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND,
37-That the Laws of Maryland read as follows:
26+_______ day of _______________ at _ _______________________ o’clock, ________M.
3827
39-Article – Public Utilities
28+______________________________________________
29+Speaker.
4030
41-Subtitle 8. Electric [Distribution] System Planning.
31+CHAPTER ______
4232
43-7–801.
33+AN ACT concerning 1
4434
45- It is the goal of the State that the electric [distribution] system support, in a
46-cost–effective manner, the State’s policy goals with regard to:
35+Electric System Planning – Scope and Funding 2
4736
48- (1) greenhouse gas reduction; Ch. 540 2024 LAWS OF MARYLAND
37+FOR the purpose of altering the scope of certain policy goals with regard to energy systems; 3
38+requiring the Public Service Commission to report on certain projects relating to 4
39+certain goals; altering the scope of certain funds that may be used for certain projects 5
40+related to the electric system; requiring the Commission to adopt regulations or issue 6
41+rules to require pursuit of federal funds in a certain manner; requiring the 7
42+Commission to adopt regulations to require investment in certain demand–side 8
43+reliability and efficiency improvement methods; requiring that certain regulations 9
44+adopted and orders issued by the Commission be developed in a certain manner and 10
45+establish separate requirements for certain electric companies under certain 11
46+circumstances; altering the scope of projects to which certain labor standards apply; 12
47+and generally relating to public utilities and electric system projects. 13
4948
50-– 2 –
49+BY repealing and reenacting, with amendments, 14 2 HOUSE BILL 1393
5150
52- (2) renewable energy;
5351
54- (3) decreasing dependence on electricity imported from other states; and
52+ Article – Public Utilities 1
53+Section 7–801 through 7–804 to be under the amended subtitle “Subtitle 8. Electric 2
54+System Planning” 3
55+ Annotated Code of Maryland 4
56+ (2020 Replacement Volume and 2023 Supplement) 5
5557
56- (4) achieving energy [distribution] SYSTEM resiliency, efficiency, and
57-reliability.
58+BY repealing and reenacting, with amendments, 6
59+ Article – Labor and Employment 7
60+Section 3–416 8
61+ Annotated Code of Maryland 9
62+ (2016 Replacement Volume and 2023 Supplement) 10
5863
59-7–802.
64+ SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 11
65+That the Laws of Maryland read as follows: 12
6066
61- On or before December 1, 2024, and each December 1 thereafter, the Commission
62-shall submit a report, in accordance with § 2–1257 of the State Government Article, to the
63-General Assembly with information regarding the current status of [electric distribution
64-system evolution] PROJECTS DESIGNED TO PROMOTE THE GOALS ID ENTIFIED IN THIS
65-SECTION, including information on [electric distribution system] planning processes and
66-implementation that promote, as specific goals, the following:
67+Article – Public Utilities 13
6768
68- (1) measures to decrease greenhouse gas emissions incident to electric
69-distribution, including high levels of distributed energy resources and electric vehicles;
69+Subtitle 8. Electric [Distribution] System Planning. 14
7070
71- (2) giving priority to vulnerable communities in the development of
72-distributed energy resources and electric vehicle infrastructure;
71+7–801. 15
7372
74- (3) energy efficiency;
73+ It is the goal of the State that the electric [distribution] system support, in a 16
74+cost–effective manner, the State’s policy goals with regard to: 17
7575
76- (4) meeting anticipated increases in load;
76+ (1) greenhouse gas reduction; 18
7777
78- (5) incorporation of energy storage technology as appropriate and prudent
79-to:
78+ (2) renewable energy; 19
8079
81- (i) support efficiency and reliability of the electric [distribution]
82-system; and
80+ (3) decreasing dependence on electricity imported from other states; and 20
8381
84- (ii) provide additional capacity to accommodate increased
85-distributed renewable electricity generation in connection with electric TRANSMISSION
86-AND distribution system modernization;
82+ (4) achieving energy [distribution] SYSTEM resiliency, efficiency, and 21
83+reliability. 22
8784
88- (6) efficient management of load variability;
85+7–802. 23
8986
90- (7) electric [distribution] system resiliency and reliability;
87+ On or before December 1, 2024, and each December 1 thereafter, the Commission 24
88+shall submit a report, in accordance with § 2–1257 of the State Government Article, to the 25
89+General Assembly with information regarding the current status of [electric distribution 26
90+system evolution] PROJECTS DESIGNED TO PROMOTE THE GOALS ID ENTIFIED IN THIS 27
91+SECTION, including information on [electric distribution system] planning processes and 28
92+implementation that promote, as specific goals, the following: 29
9193
92- (8) bidirectional power flows;
94+ (1) measures to decrease greenhouse gas emissions incident to electric 30
95+distribution, including high levels of distributed energy resources and electric vehicles; 31
96+ HOUSE BILL 1393 3
9397
94- (9) demand response and other nonwire and noncapital alternatives;
95- WES MOORE, Governor Ch. 540
9698
97-– 3 –
98- (10) increased use of distributed energy resources, including electric
99-vehicles;
99+ (2) giving priority to vulnerable communities in the development of 1
100+distributed energy resources and electric vehicle infrastructure; 2
100101
101- (11) transparent stakeholder participation in ongoing electric [distribution]
102-system planning processes; and
102+ (3) energy efficiency; 3
103103
104- (12) any other issues the Commission considers appropriate.
104+ (4) meeting anticipated increases in load; 4
105105
106-7–803.
106+ (5) incorporation of energy storage technology as appropriate and prudent 5
107+to: 6
107108
108- (a) The General Assembly strongly encourages the electric companies of the State
109-to pursue diligently federal funds to meet the State’s policy goals for the electric
110-[distribution] system, including funds made available under [§§ 40101, 40103, and 40107
111-of] the federal Infrastructure Investment and Jobs Act OR THE FEDERAL INFLATION
112-REDUCTION ACT.
109+ (i) support efficiency and reliability of the electric [distribution] 7
110+system; and 8
113111
114- (b) The Commission and the Maryland Energy Administration shall provide
115-assistance and support to electric companies for applying for and obtaining access to federal
116-and other available funds to meet the State’s policy goals [for the electric distribution
117-system].
112+ (ii) provide additional capacity to accommodate increased 9
113+distributed renewable electricity generation in connection with electric TRANSMISSION 10
114+AND distribution system modernization; 11
118115
119- (c) The Maryland Energy Administration shall identify funding sources that may
120-be available to electric companies to implement the State’s policy goals under § 7–802 of
121-this subtitle, including funding for:
116+ (6) efficient management of load variability; 12
122117
123- (1) increasing the efficiency of electric [distribution] systems, including
124-through installation and integration of energy storage devices and operational changes and
125-upgrades;
118+ (7) electric [distribution] system resiliency and reliability; 13
126119
127- (2) grid–hardening activities to reduce the occurrence of or consequences
128-of events that disrupt operations of the electric [distribution] system due to extreme
129-weather or natural disasters;
120+ (8) bidirectional power flows; 14
130121
131- (3) other [distribution system–related upgrade] ELECTRIC SYSTEM
132-ENHANCEMENT activities available for funding under [§ 40101, § 40103, or § 40107 of] the
133-federal Infrastructure Investment and Jobs Act OR THE FEDERAL INFLATION
134-REDUCTION ACT; and
122+ (9) demand response and other nonwire and noncapital alternatives; 15
135123
136- (4) other specific activities that the Commission identifies.
124+ (10) increased use of distributed energy resources, including electric 16
125+vehicles; 17
137126
138- (d) As needed to promote the State’s policy goals under § 7–802 of this subtitle,
139-the Commission:
127+ (11) transparent stakeholder participation in ongoing electric [distribution] 18
128+system planning processes; and 19
140129
141- (1) shall require each electric company to report AT LEAST QUARTERLY
142-to the Commission and the Maryland Energy Administration on: Ch. 540 2024 LAWS OF MARYLAND
130+ (12) any other issues the Commission considers appropriate. 20
143131
144-– 4 –
132+7–803. 21
145133
146- (i) the funding for which the electric company has applied;
134+ (a) The General Assembly strongly encourages the electric companies of the State 22
135+to pursue diligently federal funds to meet the State’s policy goals for the electric 23
136+[distribution] system, including funds made available under [§§ 40101, 40103, and 40107 24
137+of] the federal Infrastructure Investment and Jobs Act OR THE FEDERAL INFLATION 25
138+REDUCTION ACT. 26
147139
148- (ii) the purposes for which the funding is intended to be used;
140+ (b) The Commission and the Maryland Energy Administration shall provide 27
141+assistance and support to electric companies for applying for and obtaining access to federal 28
142+and other available funds to meet the State’s policy goals [for the electric distribution 29
143+system]. 30
144+ 4 HOUSE BILL 1393
149145
150- (iii) the status of the funding applications; and
151146
152- (iv) conditions that must be met to obtain the funding; and
147+ (c) The Maryland Energy Administration shall identify funding sources that may 1
148+be available to electric companies to implement the State’s policy goals under § 7–802 of 2
149+this subtitle, including funding for: 3
153150
154- (2) [may] SHALL adopt regulations or issue orders:
151+ (1) increasing the efficiency of electric [distribution] systems, including 4
152+through installation and integration of energy storage devices and operational changes and 5
153+upgrades; 6
155154
156- (I) that require electric companies to apply for federal and other
157-available funds in a timely manner; AND
155+ (2) grid–hardening activities to reduce the occurrence of or consequences 7
156+of events that disrupt operations of the electric [distribution] system due to extreme 8
157+weather or natural disasters; 9
158158
159- (II) IN ORDER TO ENSURE T HAT LEAST–COST DEBT IS USED .
159+ (3) other [distribution system–related upgrade] ELECTRIC SYSTEM 10
160+ENHANCEMENT activities available for funding under [§ 40101, § 40103, or § 40107 of] the 11
161+federal Infrastructure Investment and Jobs Act OR THE FEDERAL INFLATION 12
162+REDUCTION ACT; and 13
160163
161-7–804.
164+ (4) other specific activities that the Commission identifies. 14
162165
163- (A) On ON or before July 1 DECEMBER 31, 2025, the Commission shall adopt
164-regulations or issue orders to:
166+ (d) As needed to promote the State’s policy goals under § 7–802 of this subtitle, 15
167+the Commission: 16
165168
166- (1) implement specific policies for electric [distribution] system planning;
169+ (1) shall require each electric company to report AT LEAST QUARTERLY 17
170+to the Commission and the Maryland Energy Administration on: 18
167171
168- (2) REQUIRE CONSIDERATION OF INVESTMENT IN , OR PROCUREMENT
169-OF, COST–EFFECTIVE DEMAND–SIDE METHODS AND TEC HNOLOGY TO IMPROVE
170-RELIABILITY AND EFFI CIENCY, INCLUDING VIRTUAL PO WER PLANTS; and
172+ (i) the funding for which the electric company has applied; 19
171173
172- (3) IMPLEMENT SPECIFIC P OLICIES FOR improvements in order to
173-promote the State’s policy goals under § 7–802 of this subtitle.
174+ (ii) the purposes for which the funding is intended to be used; 20
174175
175- (B) THE REGULATIONS ADOPT ED AND ORDERS ISSUED UNDER SUBSECT ION
176-(A) OF THIS SECTION SHAL L:
176+ (iii) the status of the funding applications; and 21
177177
178- (1) BE DEVELOPED WITH CO NSIDERATION GIVEN TO THE INHERENT
179-DIFFERENCES , INDIVIDUAL CIRCUMSTA NCES, AND AVAILABLE RESOUR CES AMONG
180-INVESTOR–OWNED ELECTRIC COMPA NIES, ELECTRIC COOPERATIVE S, AND
181-MUNICIPAL ELECTRIC UTILITIES ; AND
178+ (iv) conditions that must be met to obtain the funding; and 22
182179
183- (2) IF DETERMINED NECESS ARY BY THE COMMISSION, ESTABLISH
184-SEPARATE REQUIREMENT S FOR INVESTOR –OWNED ELECTRIC COMPA NIES,
185-ELECTRIC COOPERATIVE S, AND MUNICIPAL ELECTR IC UTILITIES.
180+ (2) [may] SHALL adopt regulations or issue orders: 23
186181
187-Article – Labor and Employment
188- WES MOORE, Governor Ch. 540
182+ (I) that require electric companies to apply for federal and other 24
183+available funds in a timely manner; AND 25
189184
190-– 5 –
191-3–416.
185+ (II) IN ORDER TO ENSURE T HAT LEAST–COST DEBT IS USED . 26
192186
193- (a) This section applies:
187+7–804. 27
194188
195- (1) to a project undertaken by an investor–owned electric company or gas
196-and electric company that:
189+ (A) On ON or before July 1 DECEMBER 31, 2025, the Commission shall adopt 28
190+regulations or issue orders to: 29
197191
198- (i) involves the construction, reconstruction, installation,
199-demolition, restoration, or alteration of any electric infrastructure of the company, and any
200-related traffic control activities; and
192+ (1) implement specific policies for electric [distribution] system planning; 30 HOUSE BILL 1393 5
201193
202- (ii) is funded by federal funds to meet the State’s policy goals for
203-[the] electric [distribution] system PLANNING under Title 7, Subtitle 8 of the Public
204-Utilities Article, including funds made available under [§ 40101, § 40103, or § 40107 of] the
205-federal Infrastructure Investment and Jobs Act OR THE FEDERAL INFLATION
206-REDUCTION ACT; and
207194
208- (2) only to the portion of the project supported by the federal funds.
209195
210- (b) An investor–owned electric company or gas and electric company shall require
211-a contractor or subcontractor on a project described in subsection (a) of this section to:
196+ (2) REQUIRE CONSIDERATION OF INVESTMENT IN , OR PROCUREMENT 1
197+OF, COST–EFFECTIVE DEMAND–SIDE METHODS AND TEC HNOLOGY TO IMPROVE 2
198+RELIABILITY AND EFFI CIENCY, INCLUDING VIRTUAL PO WER PLANTS; and 3
212199
213- (1) pay the area prevailing wage for each trade employed, including wages
214-and fringe benefits;
200+ (3) IMPLEMENT SPECIFIC P OLICIES FOR improvements in order to 4
201+promote the State’s policy goals under § 7–802 of this subtitle. 5
215202
216- (2) offer health care and retirement benefits to the employees working on
217-the project;
203+ (B) THE REGULATIONS ADOPTED AND O RDERS ISSUED UNDER S UBSECTION 6
204+(A) OF THIS SECTION SHAL L: 7
218205
219- (3) participate in an apprenticeship program registered with the State for
220-each trade employed on the project;
206+ (1) BE DEVELOPED WITH CO NSIDERATION GIVEN TO THE INHERENT 8
207+DIFFERENCES , INDIVIDUAL CIRCUMSTA NCES, AND AVAILABLE RESOUR CES AMONG 9
208+INVESTOR–OWNED ELECTRIC COMPA NIES, ELECTRIC COOPE RATIVES, AND 10
209+MUNICIPAL ELECTRIC U TILITIES; AND 11
221210
222- (4) establish and execute a plan for outreach, recruitment, and retention of
223-State residents to perform work on the project, with an aspirational goal of 25% of total
224-work hours performed by Maryland residents, including residents who are:
211+ (2) IF DETERMINED NECESS ARY BY THE COMMISSION, ESTABLISH 12
212+SEPARATE REQUIREMENT S FOR INVESTOR –OWNED ELECTRIC COMPA NIES, 13
213+ELECTRIC COOPERATIVE S, AND MUNICIPAL ELECTR IC UTILITIES. 14
225214
226- (i) returning citizens;
215+Article – Labor and Employmen t 15
227216
228- (ii) women;
217+3–416. 16
229218
230- (iii) minority individuals; or
219+ (a) This section applies: 17
231220
232- (iv) veterans;
221+ (1) to a project undertaken by an investor–owned electric company or gas 18
222+and electric company that: 19
233223
234- (5) have been in compliance with federal and State wage and hour laws for
235-the previous 3 years;
236- Ch. 540 2024 LAWS OF MARYLAND
224+ (i) involves the construction, reconstruction, installation, 20
225+demolition, restoration, or alteration of any electric infrastructure of the company, and any 21
226+related traffic control activities; and 22
237227
238-– 6 –
239- (6) be subject to all State reporting and compliance requirements; and
228+ (ii) is funded by federal funds to meet the State’s policy goals for 23
229+[the] electric [distribution] system PLANNING under Title 7, Subtitle 8 of the Public 24
230+Utilities Article, including funds made available under [§ 40101, § 40103, or § 40107 of] the 25
231+federal Infrastructure Investment and Jobs Act OR THE FEDERAL INFLATION 26
232+REDUCTION ACT; and 27
240233
241- (7) maintain all appropriate licenses in good standing.
234+ (2) only to the portion of the project supported by the federal funds. 28
242235
243- SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect
244-October 1, 2024.
236+ (b) An investor–owned electric company or gas and electric company shall require 29
237+a contractor or subcontractor on a project described in subsection (a) of this section to: 30
238+ 6 HOUSE BILL 1393
245239
246-Approved by the Governor, May 9, 2024.
240+
241+ (1) pay the area prevailing wage for each trade employed, including wages 1
242+and fringe benefits; 2
243+
244+ (2) offer health care and retirement benefits to the employees working on 3
245+the project; 4
246+
247+ (3) participate in an apprenticeship program registered with the State for 5
248+each trade employed on the project; 6
249+
250+ (4) establish and execute a plan for outreach, recruitment, and retention of 7
251+State residents to perform work on the project, with an aspirational goal of 25% of total 8
252+work hours performed by Maryland residents, including residents who are: 9
253+
254+ (i) returning citizens; 10
255+
256+ (ii) women; 11
257+
258+ (iii) minority individuals; or 12
259+
260+ (iv) veterans; 13
261+
262+ (5) have been in compliance with federal and State wage and hour laws for 14
263+the previous 3 years; 15
264+
265+ (6) be subject to all State reporting and compliance requirements; and 16
266+
267+ (7) maintain all appropriate licenses in good standing. 17
268+
269+ SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect 18
270+October 1, 2024. 19
271+
272+
273+
274+
275+Approved:
276+________________________________________________________________________________
277+ Governor.
278+________________________________________________________________________________
279+ Speaker of the House of Delegates.
280+________________________________________________________________________________
281+ President of the Senate.