WES MOORE, Governor Ch. 540
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Chapter 540
(House Bill 1393)
AN ACT concerning
Electric System Planning – Scope and Funding
FOR the purpose of altering the scope of certain policy goals with regard to energy systems;
requiring the Public Service Commission to report on certain projects relating to
certain goals; altering the scope of certain funds that may be used for certain projects
related to the electric system; requiring the Commission to adopt regulations or issue
rules to require pursuit of federal funds in a certain manner; requiring the
Commission to adopt regulations to require investment in certain demand–side
reliability and efficiency improvement methods; requiring that certain regulations
adopted and orders issued by the Commission be developed in a certain manner and
establish separate requirements for certain electric companies under certain
circumstances; altering the scope of projects to which certain labor standards apply;
and generally relating to public utilities and electric system projects.
BY repealing and reenacting, with amendments,
Article – Public Utilities
Section 7–801 through 7–804 to be under the amended subtitle “Subtitle 8. Electric
System Planning”
Annotated Code of Maryland
(2020 Replacement Volume and 2023 Supplement)
BY repealing and reenacting, with amendments,
Article – Labor and Employment
Section 3–416
Annotated Code of Maryland
(2016 Replacement Volume and 2023 Supplement)
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND,
That the Laws of Maryland read as follows:
Article – Public Utilities
Subtitle 8. Electric [Distribution] System Planning.
7–801.
It is the goal of the State that the electric [distribution] system support, in a
cost–effective manner, the State’s policy goals with regard to:
(1) greenhouse gas reduction; Ch. 540 2024 LAWS OF MARYLAND
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(2) renewable energy;
(3) decreasing dependence on electricity imported from other states; and
(4) achieving energy [distribution] SYSTEM resiliency, efficiency, and
reliability.
7–802.
On or before December 1, 2024, and each December 1 thereafter, the Commission
shall submit a report, in accordance with § 2–1257 of the State Government Article, to the
General Assembly with information regarding the current status of [electric distribution
system evolution] PROJECTS DESIGNED TO PROMOTE THE GOALS ID ENTIFIED IN THIS
SECTION, including information on [electric distribution system] planning processes and
implementation that promote, as specific goals, the following:
(1) measures to decrease greenhouse gas emissions incident to electric
distribution, including high levels of distributed energy resources and electric vehicles;
(2) giving priority to vulnerable communities in the development of
distributed energy resources and electric vehicle infrastructure;
(3) energy efficiency;
(4) meeting anticipated increases in load;
(5) incorporation of energy storage technology as appropriate and prudent
to:
(i) support efficiency and reliability of the electric [distribution]
system; and
(ii) provide additional capacity to accommodate increased
distributed renewable electricity generation in connection with electric TRANSMISSION
AND distribution system modernization;
(6) efficient management of load variability;
(7) electric [distribution] system resiliency and reliability;
(8) bidirectional power flows;
(9) demand response and other nonwire and noncapital alternatives;
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(10) increased use of distributed energy resources, including electric
vehicles;
(11) transparent stakeholder participation in ongoing electric [distribution]
system planning processes; and
(12) any other issues the Commission considers appropriate.
7–803.
(a) The General Assembly strongly encourages the electric companies of the State
to pursue diligently federal funds to meet the State’s policy goals for the electric
[distribution] system, including funds made available under [§§ 40101, 40103, and 40107
of] the federal Infrastructure Investment and Jobs Act OR THE FEDERAL INFLATION
REDUCTION ACT.
(b) The Commission and the Maryland Energy Administration shall provide
assistance and support to electric companies for applying for and obtaining access to federal
and other available funds to meet the State’s policy goals [for the electric distribution
system].
(c) The Maryland Energy Administration shall identify funding sources that may
be available to electric companies to implement the State’s policy goals under § 7–802 of
this subtitle, including funding for:
(1) increasing the efficiency of electric [distribution] systems, including
through installation and integration of energy storage devices and operational changes and
upgrades;
(2) grid–hardening activities to reduce the occurrence of or consequences
of events that disrupt operations of the electric [distribution] system due to extreme
weather or natural disasters;
(3) other [distribution system–related upgrade] ELECTRIC SYSTEM
ENHANCEMENT activities available for funding under [§ 40101, § 40103, or § 40107 of] the
federal Infrastructure Investment and Jobs Act OR THE FEDERAL INFLATION
REDUCTION ACT; and
(4) other specific activities that the Commission identifies.
(d) As needed to promote the State’s policy goals under § 7–802 of this subtitle,
the Commission:
(1) shall require each electric company to report AT LEAST QUARTERLY
to the Commission and the Maryland Energy Administration on: Ch. 540 2024 LAWS OF MARYLAND
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(i) the funding for which the electric company has applied;
(ii) the purposes for which the funding is intended to be used;
(iii) the status of the funding applications; and
(iv) conditions that must be met to obtain the funding; and
(2) [may] SHALL adopt regulations or issue orders:
(I) that require electric companies to apply for federal and other
available funds in a timely manner; AND
(II) IN ORDER TO ENSURE T HAT LEAST–COST DEBT IS USED .
7–804.
(A) On ON or before July 1 DECEMBER 31, 2025, the Commission shall adopt
regulations or issue orders to:
(1) implement specific policies for electric [distribution] system planning;
(2) REQUIRE CONSIDERATION OF INVESTMENT IN , OR PROCUREMENT
OF, COST–EFFECTIVE DEMAND–SIDE METHODS AND TEC HNOLOGY TO IMPROVE
RELIABILITY AND EFFI CIENCY, INCLUDING VIRTUAL PO WER PLANTS; and
(3) IMPLEMENT SPECIFIC P OLICIES FOR improvements in order to
promote the State’s policy goals under § 7–802 of this subtitle.
(B) THE REGULATIONS ADOPT ED AND ORDERS ISSUED UNDER SUBSECT ION
(A) OF THIS SECTION SHAL L:
(1) BE DEVELOPED WITH CO NSIDERATION GIVEN TO THE INHERENT
DIFFERENCES , INDIVIDUAL CIRCUMSTA NCES, AND AVAILABLE RESOUR CES AMONG
INVESTOR–OWNED ELECTRIC COMPA NIES, ELECTRIC COOPERATIVE S, AND
MUNICIPAL ELECTRIC UTILITIES ; AND
(2) IF DETERMINED NECESS ARY BY THE COMMISSION, ESTABLISH
SEPARATE REQUIREMENT S FOR INVESTOR –OWNED ELECTRIC COMPA NIES,
ELECTRIC COOPERATIVE S, AND MUNICIPAL ELECTR IC UTILITIES.
Article – Labor and Employment
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3–416.
(a) This section applies:
(1) to a project undertaken by an investor–owned electric company or gas
and electric company that:
(i) involves the construction, reconstruction, installation,
demolition, restoration, or alteration of any electric infrastructure of the company, and any
related traffic control activities; and
(ii) is funded by federal funds to meet the State’s policy goals for
[the] electric [distribution] system PLANNING under Title 7, Subtitle 8 of the Public
Utilities Article, including funds made available under [§ 40101, § 40103, or § 40107 of] the
federal Infrastructure Investment and Jobs Act OR THE FEDERAL INFLATION
REDUCTION ACT; and
(2) only to the portion of the project supported by the federal funds.
(b) An investor–owned electric company or gas and electric company shall require
a contractor or subcontractor on a project described in subsection (a) of this section to:
(1) pay the area prevailing wage for each trade employed, including wages
and fringe benefits;
(2) offer health care and retirement benefits to the employees working on
the project;
(3) participate in an apprenticeship program registered with the State for
each trade employed on the project;
(4) establish and execute a plan for outreach, recruitment, and retention of
State residents to perform work on the project, with an aspirational goal of 25% of total
work hours performed by Maryland residents, including residents who are:
(i) returning citizens;
(ii) women;
(iii) minority individuals; or
(iv) veterans;
(5) have been in compliance with federal and State wage and hour laws for
the previous 3 years;
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(6) be subject to all State reporting and compliance requirements; and
(7) maintain all appropriate licenses in good standing.
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect
October 1, 2024.
Approved by the Governor, May 9, 2024.