Maryland 2024 Regular Session

Maryland House Bill HB397 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1		-	WES MOORE, Governor Ch. 564
2	1
3		-	– 1 –
4		-	Chapter 564
5		-	(House Bill 397)
6	2
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	+	hb0397
8	10
9		-	Public Utilities – Thermal Energy Network Systems – Authorization and
10		-	Establishment
11		-	(Working for Accessible Renewable Maryland Thermal Heat (WARMTH) Act)
	11	+	HOUSE BILL 397
	12	+	M5, C5, P2 (4lr0652)
	13	+	ENROLLED BILL
	14	+	— Economic Matters/Education, Energy, and the Environment —
	15	+	Introduced by Delegate Charkoudian
12	16
13		-	FOR the purpose of requiring each certain gas company companies and authorizing certain
14		-	gas companies to develop a plan for a pilot thermal energy network system or
15		-	systems on or before a certain date; requiring each certain gas company companies
16		-	to submit a certain proposal or proposals to the Public Service Commission for
17		-	approval on or before a certain date; authorizing a municipal corporation, county, or
18		-	community organization to submit neighborhoods to gas companies for consideration
19		-	as part of a pilot system; establishing requirements and authorizations for the
20		-	development and implementation of a proposal and thermal energy network system;
21		-	requiring authorizing the Commission to approve, approve with modifications, or
22		-	reject each proposal on or before a certain date; requiring the Commission, in
23		-	consultation with the Maryland Energy Administration and, the Office of People’s
24		-	Counsel, a certain company, a certain certified representative, and certain
25		-	customers, to make a determination on whether to make a pilot system permanent
26		-	after the completion of the pilot system’s pilot period; establishing funding
27		-	requirements for the Administration to cover assist certain companies in covering
28		-	certain costs; providing for the payment and recovery of certain costs; requiring the
29		-	Administration to coordinate with the Department of Housing and Community
30		-	Development to provide certain services or funding; requiring the Maryland
31		-	Environmental Service to issue certain procurements for certain projects a gas
32		-	company to be responsible for certain costs associated with certain
33		-	behind–the–meter projects; establishing certain employment and wage
34		-	requirements for certain projects; and generally relating to thermal energy network
35		-	systems.
	17	+	Read and Examined by Proofreaders:
36	18
37		-	BY repealing and reenacting, without amendments,
38		-	Article – Public Utilities
39		-	Section 7–703(f)(1)
40		-	Annotated Code of Maryland
41		-	(2020 Replacement Volume and 2023 Supplement)
	19	+	_______________________________________________
	20	+	Proofreader.
	21	+	_______________________________________________
	22	+	Proofreader.
42	23
43		-	BY adding to
44		-	Article – Public Utilities
45		-	Section 7–1001 through 7–1006 to be under the new subtitle “Subtitle 10. Thermal
46		-	Energy Network Systems”
47		-	Annotated Code of Maryland
48		-	(2020 Replacement Volume and 2023 Supplement)
49		-	Ch. 564 2024 LAWS OF MARYLAND
	24	+	Sealed with the Great Seal and presented to the Governor, for his approval this
50	25
51		-	– 2 –
52		-	BY repealing and reenacting, without amendments,
53		-	Article – Environnent Environment
54		-	Section 1–701(a)(1), (7), and (8)
55		-	Annotated Code of Maryland
56		-	(2013 Replacement Volume and 2023 Supplement)
	26	+	_______ day of _______________ at ________________________ o’clock, ________M.
57	27
58		-	BY repealing and reenacting, without amendments,
59		-	Article – Housing and Community Development
60		-	Section 4–1801(a) and (c)
61		-	Annotated Code of Maryland
62		-	(2019 Replacement Volume and 2023 Supplement)
	28	+	______________________________________________
	29	+	Speaker.
63	30
64		-	SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND,
65		-	That the Laws of Maryland read as follows:
	31	+	CHAPTER ______
66	32
67		-	~~Article – Public Utilities~~
	33	+	AN ACT concerning 1
68	34
69		-	7–703.
	35	+	Public Utilities – Thermal Energy Network Systems – Authorization and 2
	36	+	Establishment 3
	37	+	(Working for Accessible Renewable Maryland Thermal Heat (WARMTH) Act) 4
70	38
71		-	(f) (1) (i) In this subsection the following words have the meanings
72		-	indicated.
	39	+	FOR the purpose of requiring each certain gas company companies and authorizing certain 5
	40	+	gas companies to develop a plan for a pilot thermal energy network system or 6
	41	+	systems on or before a certain date; requiring each certain gas company companies 7
	42	+	to submit a certain proposal or proposals to the Public Service Commission for 8
	43	+	approval on or before a certain date; authorizing a municipal corporation, county, or 9
	44	+	community organization to submit neighborhoods to gas companies for consideration 10
	45	+	as part of a pilot system; establishing requirements and authorizations for the 11
	46	+	development and implementation of a proposal and thermal energy network system; 12
	47	+	requiring authorizing the Commission to approve, approve with modifications, or 13
	48	+	reject each proposal on or before a certain date; requiring the Commission, in 14
	49	+	consultation with the Maryland Energy Administration and, the Office of People’s 15 2 HOUSE BILL 397
73	50
74		-	(ii) “Area median income” has the meaning stated in § 4–1801 of the
75		-	Housing and Community Development Article.
76	51
77		-	(iii) “Low or moderate income housing” means housing that is
78		-	affordable for a household with an aggregate annual income that is below 120% of the area
79		-	median income.
	52	+	Counsel, a certain company, a certain certified representative, and certain 1
	53	+	customers, to make a determination on whether to make a pilot system permanent 2
	54	+	after the completion of the pilot system’s pilot period; establishing funding 3
	55	+	requirements for the Administration to cover assist certain companies in covering 4
	56	+	certain costs; providing for the payment and recovery of certain costs; requiring the 5
	57	+	Administration to coordinate with the Department of Housing and Community 6
	58	+	Development to provide certain services or funding; requiring the Maryland 7
	59	+	Environmental Service to issue certain procurements for certain projects a gas 8
	60	+	company to be responsible for certain costs associated with certain 9
	61	+	behind–the–meter projects; establishing certain employment and wage 10
	62	+	requirements for certain projects; and generally relating to thermal energy network 11
	63	+	systems. 12
80	64
81		-	SUBTITLE 10. THERMAL ENERGY NETWORK SYSTEMS.
	65	+	BY repealing and reenacting, without amendments, 13
	66	+	Article – Public Utilities 14
	67	+	Section 7–703(f)(1) 15
	68	+	Annotated Code of Maryland 16
	69	+	(2020 Replacement Volume and 2023 Supplement) 17
82	70
83		-	7–1001.
	71	+	BY adding to 18
	72	+	Article – Public Utilities 19
	73	+	Section 7–1001 through 7–1006 to be under the new subtitle “Subtitle 10. Thermal 20
	74	+	Energy Network Systems” 21
	75	+	Annotated Code of Maryland 22
	76	+	(2020 Replacement Volume and 2023 Supplement) 23
84	77
85		-	(A) IN THIS SUBTITLE THE FOLLOWING WORDS HAVE THE MEANINGS
86		-	INDICATED.
	78	+	BY repealing and reenacting, without amendments, 24
	79	+	Article – Environnent Environment 25
	80	+	Section 1–701(a)(1), (7), and (8) 26
	81	+	Annotated Code of Maryland 27
	82	+	(2013 Replacement Volume and 2023 Supplement) 28
87	83
88		-	(B) “ADMINISTRATION ” MEANS THE MARYLAND ENERGY
89		-	ADMINISTRATION .
	84	+	BY repealing and reenacting, without amendments, 29
	85	+	Article – Housing and Community Development 30
	86	+	Section 4–1801(a) and (c) 31
	87	+	Annotated Code of Maryland 32
	88	+	(2019 Replacement Volume and 2023 Supplement) 33
90	89
91		-	(C) “BEHIND–THE–METER PROJECT ” MEANS A PROJECT THAT INVOLVES A
92		-	PHYSICAL, OPERATIONAL , OR BEHAVIORAL MODIFI CATION ON THE CUSTOM ER SIDE
93		-	OF A UTILITY METER , INCLUDING REPLACEMEN T OF APPLIANCES , RETROFITS, AND
94		-	PANEL UPGRADES .
95		-	WES MOORE, Governor Ch. 564
	90	+	SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 34
	91	+	That the Laws of Maryland read as follows: 35
96	92
97		-	– 3 –
98		-	(D) “COMMUNITY BENEFIT AGR EEMENT” MEANS AN AGREEMENT
99		-	APPLICABLE TO THE CO NSTRUCTION OF ANY THERMAL ENERGY NETWORK SYSTE M
100		-	AND ANY ACCOMPANYING RESIDENTIAL ELECTRIF ICATION THAT:
	93	+	Article – Public Utilities 36
101	94
102		-	(1) PROMOTES INCREASED O PPORTUNITIES FOR LOC AL BUSINESSES
103		-	AND SMALL, MINORITY, WOMEN–OWNED, AND VETERAN –OWNED BUSINESSES IN THE
104		-	CLEAN ENERGY INDUSTR Y;
	95	+	7–703. 37
105	96
106		-	(2) ~~ENSURES~~ THE ~~TIMELY , SAFE,~~ ~~AND EFFICIENT COMPLE TION OF~~
107		-	~~THE PROJECT BY :~~
	97	+	(f) (1) (i) In this subsection the following words have the meanings 38
	98	+	indicated. 39 HOUSE BILL 397 3
108	99
109		-	(I) FACILITATING A STEAD Y SUPPLY OF HIGHLY S KILLED
110		-	CRAFT WORKERS WHO SH ALL BE PAID NOT LESS THAN THE PREVAILING WAGE RATE
111		-	DETERMINED BY THE COMMISSIONER OF LABOR AND INDUSTRY UNDER TITLE 17,
112		-	SUBTITLE 2 OF THE STATE FINANCE AND PROCUREMENT ARTICLE; AND
113	100
114		-	(II) GUARANTEEING THAT TH E CONSTRUCTION WORK
115		-	PERFORMED IN CONNECT ION WITH THE PROJECT WILL BE SUBJECT TO A N
116		-	AGREEMENT THAT :
117	101
118		-	1. ESTABLISHES THE TERM S AND CONDITIONS OF
119		-	EMPLOYME NT AT THE CONSTRUCTI ON SITE OF THE PROJE CT OR A PORTION OF T HE
120		-	PROJECT;
	102	+	(ii) “Area median income” has the meaning stated in § 4–1801 of the 1
	103	+	Housing and Community Development Article. 2
121	104
122		-	2. GUARANTEES AGAINST S TRIKES, LOCKOUTS, AND
123		-	SIMILAR DISRUPTIONS ;
	105	+	(iii) “Low or moderate income housing” means housing that is 3
	106	+	affordable for a household with an aggregate annual income that is below 120% of the area 4
	107	+	median income. 5
124	108
125		-	3. ENSURES THAT ALL WOR K ON THE PROJECT FUL LY
126		-	CONFORMS TO ALL RELE VANT STATE AND FEDERAL LAW S, RULES, AND
127		-	REGULATIONS, INCLUDING ALL REQUIR ED TRAINING FOR EMPL OYEES;
	109	+	SUBTITLE 10. THERMAL ENERGY NETWORK SYSTEMS. 6
128	110
129		-	4. CREATES MUTUALLY BIN DING PROCEDURES FOR
130		-	RESOLVING LABOR DISP UTES ARISING DURING THE TERM OF THE PROJ ECT;
	111	+	7–1001. 7
131	112
132		-	5. SETS FORTH OTHER MEC HANISMS FOR
133		-	LABOR–MANAGEMENT COOPERATI ON ON MATTERS OF M UTUAL INTEREST AND
134		-	CONCERN, INCLUDING PRODUCTIVI TY, QUALITY OF WORK , SAFETY, AND HEALTH ;
135		-	AND
	113	+	(A) IN THIS SUBTITLE THE FOLLOWING WORDS HAVE THE MEANINGS 8
	114	+	INDICATED. 9
136	115
137		-	6. BINDS ALL CONTRACTOR S AND SUBCONTRACTORS TO
138		-	THE TERMS OF THE AGR EEMENT THROUGH THE I NCLUSION OF APPROPRI ATE
139		-	PROVISIONS IN ALL RE LEVANT SOLICITATION AND CONTRACT DOCUMENTS ;
140		-	Ch. 564 2024 LAWS OF MARYLAND
	116	+	(B) “ADMINISTRATION ” MEANS THE MARYLAND ENERGY 10
	117	+	ADMINISTRATION . 11
141	118
142		-	– ~~4 –~~
143		-	~~(3) PROMOTES SAFE COMPLE TION OF~~ THE ~~PROJECT BY ENSURING~~
144		-	~~THAT AT LEAST 80%~~ OF ~~THE CRAFT WORKERS ON THE PROJECT HAVE COMPLETED~~
145		-	~~AN OCCUPATIONAL SAFETY AND HEALTH ADMINISTRATION 10–HOUR COURSE ;~~
	119	+	(C) “BEHIND–THE–METER PROJECT ” MEANS A PROJECT THAT INVOLVES A 12
	120	+	PHYSICAL, OPERATIONAL , OR BEHAVIORAL MODIFI CATION ON THE CUSTOM ER SIDE 13
	121	+	OF A UTILITY METER , INCLUDING REPLA CEMENT OF APPLIANCES , RETROFITS, AND 14
	122	+	PANEL UPGRADES . 15
146	123
147		-	(4) PROMOTES CAREER TRAI NING OPPORTUNITI ES IN THE
148		-	MANUFACTURING , MAINTENANCE , AND CONSTRUCTION IND USTRIES FOR LOCAL
149		-	RESIDENTS, VETERANS, WOMEN, MINORITIES, AND FORMERLY INCARCE RATED
150		-	INDIVIDUALS;
	124	+	(D) “COMMUNITY BENEFIT AGR EEMENT” MEANS AN AGREEMENT 16
	125	+	APPLICABLE TO THE CO NSTRUCTION OF ANY TH ERMAL ENERGY NETWORK SYSTEM 17
	126	+	AND ANY ACCOMPANYING RESIDENTIAL ELECTRIF ICATION THAT: 18
151	127
152		-	(5) INCLUDES PROVISIONS FOR LOCAL HIRING AND THE HIRING OF
153		-	HISTORICALLY DISADVA NTAGED GROUPS ;
	128	+	(1) PROMOTES INCREASED OPPORTUNITIES FOR LO CAL BUSINESSES 19
	129	+	AND SMALL, MINORITY, WOMEN–OWNED, AND VETERAN –OWNED BUSINESSES IN THE 20
	130	+	CLEAN ENERGY INDUSTR Y; 21
154	131
155		-	(6) REFLECTS A 21ST–CENTURY LABOR –MANAGEMENT APPROACH BY
156		-	DEVELOPERS AND SUPPL IERS BASED ON COOPER ATION, HARMONY, AND
157		-	PARTNERSHIP THAT PRO ACTIVELY SEEKS TO EN SURE THAT WORKERS CA N FREELY
158		-	CHOOSE TO BOTH ORGAN IZE AND COLLECTIVELY BARGAIN;
	132	+	(2) ENSURES THE TIMELY , SAFE, AND EFFICIENT COMPLE TION OF 22
	133	+	THE PROJECT BY : 23
159	134
160		-	(7) USES LOCALLY , SUSTAINABLY, AND DOMESTICALLY
161		-	MANUFACTURED CONSTRU CTION MATERIALS AND COMPONENTS TO THE EX TENT
162		-	PRACTICABLE ;
	135	+	(I) FACILITATING A STEAD Y SUPPLY OF HIGHLY S KILLED 24
	136	+	CRAFT WORKERS WHO SH ALL BE PAID NOT LESS THAN THE PREVAILING WAGE RATE 25
	137	+	DETERMINED BY THE COMMISSIONER OF LABOR AND INDUSTRY UNDER TITLE 17, 26
	138	+	SUBTITLE 2 OF THE STATE FINANCE AND PROCUREMENT ARTICLE; AND 27
163	139
164		-	(8) (7) PROMOTES THE USE OF SKILLED LOCAL LABOR ,
165		-	PARTICULARLY WITH RE GARD TO THE CONSTRUC TION AND MANUFACTURI NG
166		-	COMPONENTS OF THE PR OJECT, USING METHODS INCLUDING OU TREACH, HIRING,
167		-	OR REFERRAL METHODS THAT ARE AFFILIATED WITH REGISTERED
168		-	APPRENTICESHIP PROGR AMS UNDER TITLE 11, SUBTITLE 4 OF THE LABOR AND
169		-	EMPLOYMENT ARTICLE; AND
	140	+	(II) GUARANTEEING THAT TH E CONSTRUCTION WORK 28
	141	+	PERFORMED IN CONNECTI ON WITH THE PROJECT WILL BE SUBJECT TO A N 29
	142	+	AGREEMENT THAT : 30
	143	+	4 HOUSE BILL 397
170	144
171		-	(9) (8) AUTHORIZES THE MARYLAND DEPARTMENT OF LABOR AND
172		-	THE COMMISSION TO CONSIDE R, REVIEW, AND ENFORCE A PUBLIC SERVICE
173		-	COMPANY’S COMPLIANCE WITH AN Y COMMUNITY BENEFIT AGREEMENT .
174	145
175		-	(E) “FINANCING PROGRAM” MEANS THE ENERGY INFRASTRUCTURE
176		-	REINVESTMENT CATEGORY OF THE TITLE 17 CLEAN ENERGY FINANCING PROGRAM.
	146	+	1. ESTABLISHES THE TERM S AND CONDITIONS OF 1
	147	+	EMPLOYMENT AT THE CO NSTRUCTION SITE OF T HE PROJECT OR A PORT ION OF THE 2
	148	+	PROJECT; 3
177	149
178		-	~~(E) (F) “FRONT–OF–METER PROJECT ” MEANS A PROJECT THAT IMPACTS~~
179		-	~~THE UTILITY SIDE OF A METER.~~
	150	+	2. GUARANTEES AGAINST S TRIKES, LOCKOUTS, AND 4
	151	+	SIMILAR DISRUPTIONS ; 5
180	152
181		-	(F) (G) “GEOTHERMAL BOREHOLE ” MEANS A GEOTHERMAL S HAFT
182		-	DRILLED INTO THE EAR TH FOR USE IN A SYST EM THAT USES THE THE RMAL
183		-	PROPERTIES OF THE EA RTH OR GROUNDWATER T O HEAT OR COOL BUILDINGS .
184		-	WES MOORE, Governor Ch. 564
	153	+	3. ENSURES THAT ALL WOR K ON THE PROJECT FUL LY 6
	154	+	CONFORMS TO ALL RELE VANT STATE AND FEDERAL LAW S, RULES, AND 7
	155	+	REGULATIONS , INCLUDING ALL REQUIR ED TRAINING FOR EMPL OYEES; 8
185	156
186		-	– 5 –
187		-	(H) “GREENHOUSE GAS REDUCTION FUND” MEANS THE GREENHOUSE GAS
188		-	REDUCTION FUND UNDER THE FEDERA L INFLATION REDUCTION ACT OF 2022.
	157	+	4. CREATES MUTUALLY BIN DING PROCEDURES FOR 9
	158	+	RESOLVING LABOR DISPUTES ARISING DUR ING THE TERM OF THE PROJECT; 10
189	159
190		-	(G) (I) “LEARNING FROM THE GROUND UP” MEANS THE LEARNING
191		-	FROM THE GROUND UP RESEARCH TEAM FORM ED BY THE HOME ENERGY
192		-	EFFICIENCY TEAM.
	160	+	5. SETS FORTH OTHER MEC HANISMS FOR 11
	161	+	LABOR–MANAGEMENT COOPERATI ON ON MATTERS OF MUT UAL INTEREST AND 12
	162	+	CONCERN, INCLUDING PRODUCTIVI TY, QUALITY OF WORK , SAFETY, AND HEALTH ; 13
	163	+	AND 14
193	164
194		-	(H) (J) “LOW OR MODERATE INCOM E HOUSING” HAS THE MEANING
195		-	STATED IN § 7–703(F)(1)(III) OF THIS TITLE.
	165	+	6. BINDS ALL CONTRACTOR S AND SUBCONTRACTORS T O 15
	166	+	THE TERMS OF THE AGR EEMENT THROUGH THE I NCLUSION OF APPROPRI ATE 16
	167	+	PROVISIONS IN ALL RE LEVANT SOLICITATION AND CONTRACT DOCUMEN TS; 17
196	168
197		-	(I) ~~(K) “PILOT~~ ~~SYSTEM” MEANS A PILOT THERMA L ENERGY NETWORK~~
198		-	~~SYSTEM DEVELOPED BY A GAS COMPANY TO REP LACE GAS INFRASTRUCTURE WITH~~
199		-	~~A THERMAL ENERGY NET WORK SYSTEM .~~
	169	+	(3) PROMOTES SAFE COMPLE TION OF THE PROJECT BY ENSURING 18
	170	+	THAT AT LEAST 80% OF THE CRAFT WORKERS ON THE PROJECT HAVE COMPLET ED 19
	171	+	AN OCCUPATIONAL SAFETY AND HEALTH ADMINISTRATION 10–HOUR COURSE ; 20
200	172
201		-	(J) (L) “PJM CAPACITY MARKET ” MEANS THE CAPACITY M ARKET OF
202		-	PJM INTERCONNECTION , LLC OR ANY SUCCESSOR ORG ANIZATION THAT SERVI CES
203		-	THE PJM REGION.
	173	+	(4) PROMOTES CAREER TRAI NING OPPORTUNITIES I N THE 21
	174	+	MANUFACTURING , MAINTENANCE , AND CONSTRUCTION IND USTRIES FOR LOCAL 22
	175	+	RESIDENTS, VETERANS, WOMEN, MINORITIES, AND FORME RLY INCARCERATED 23
	176	+	INDIVIDUALS; 24
204	177
205		-	(K) (M) “THERMAL ENERGY NETWOR K SYSTEM” MEANS A SYSTEM :
	178	+	(5) INCLUDES PROVISIONS FOR LOCAL HIRING AND THE HIRING OF 25
	179	+	HISTORICALLY DISADVA NTAGED GROUPS ; 26
206	180
207		-	(1) ~~OF CLOSED LOOP UNDER GROUND PIPING INFRAS TRUCTURE,~~
208		-	~~INCLUDING GEOTHERMAL BOREHOLES~~ , ~~LEADING UP TO A UTIL ITY METER FOR THE~~
209		-	~~CONVEYANCE OR STORAG E OF RENEWABLE , NONGREENHOUSE GAS –EMITTING~~
210		-	~~THERMAL ENERGY ;~~ AND
	181	+	(6) REFLECTS A 21ST–CENTURY LABOR –MANAGEMENT APPROACH BY 27
	182	+	DEVELOPERS AND SUPPL IERS BASED ON COOPER ATION, HARMONY, AND 28
	183	+	PARTNERSH IP THAT PROACTIVELY SEEKS TO ENSURE THAT WORKERS CAN FREELY 29
	184	+	CHOOSE TO BOTH ORGAN IZE AND COLLECTIVELY BARGAIN; 30
211	185
212		-	(2) THAT CREATES A NETWO RK OF CUSTOMERS WITH THERMAL
213		-	ENERGY FOR HEATING A ND COOLING THROUGH N ONCOMBUSTING ELECTRI C HEAT
214		-	PUMPS.
	186	+	(7) USES LOCALLY , SUSTAINABLY, AND DOMESTICALLY 31
	187	+	MANUFACTURED CONSTRU CTION MATERIALS AND COMPONENTS TO THE EX TENT 32
	188	+	PRACTICABLE ; 33
	189	+	HOUSE BILL 397 5
215	190
216		-	7–1002.
217	191
218		-	(A) (1) (I) ON OR BEFORE OCTOBER 1, 2024, EACH GAS COMPANY
219		-	THAT SERVES AT LEAST 75,000 CUSTOMERS IN ITS DIS TRIBUTION TERRITORY
220		-	SHALL:
	192	+	(8) (7) PROMOTES THE USE OF SKILLED LOCAL LABOR , 1
	193	+	PARTICULARLY WITH RE GARD TO THE CONSTRUC TION AND MANUFACTURI NG 2
	194	+	COMPONENTS OF THE PR OJECT, USING METHODS INCLUD ING OUTREACH , HIRING, 3
	195	+	OR REFERRAL METHODS THAT ARE AFFILIATED WITH REGISTERED 4
	196	+	APPRENTICESHIP PROGR AMS UNDER TITLE 11, SUBTITLE 4 OF THE LABOR AND 5
	197	+	EMPLOYMENT ARTICLE; AND 6
221	198
222		-	(I) 1. BEGIN TO DEVELOP A PLAN FOR A PILOT SYSTEM OR
223		-	SYSTEMS; AND
	199	+	(9) (8) AUTHORIZES THE MARYLAND DEPARTMENT OF LABOR AND 7
	200	+	THE COMMISSION TO CONSIDE R, REVIEW, AND ENFORCE A PUBLIC SERVICE 8
	201	+	COMPANY’S COMPLIANCE WITH AN Y COMMUNITY BENEFIT AGREEMENT . 9
224	202
225		-	(II) ~~2. FILE NOTICE WITH~~ THE ~~COMMISSION THAT THE~~
226		-	~~COMPANY HAS BEGUN PL AN DEVELOPMENT~~ .
	203	+	(E) “FINANCING PROGRAM” MEANS THE ENERGY INFRASTRUCTURE 10
	204	+	REINVESTMENT CATEGORY OF THE TITLE 17 CLEAN ENERGY FINANCING PROGRAM. 11
227	205
228		-	(II) ~~ON OR BEFORE OCTOBER 1, 2024,~~ A ~~GAS COMPANY~~ THAT
229		-	~~SERVES FEWER THAN 75,000 CUSTOMERS IN ITS DIS TRIBUTION TERR ITORY MAY Ch. 564 2024 LAWS~~ OF ~~MARYLAND~~
	206	+	(E) (F) “FRONT–OF–METER PROJECT ” MEANS A PROJECT THAT IMPACTS 12
	207	+	THE UTILITY SIDE OF A METER. 13
230	208
231		-	~~– 6 –~~
232		-	~~DEVELOP~~ A ~~PLAN FOR A PILOT SYSTEM OR~~ SYST ~~EMS IN ACCORDANCE WI TH~~ THE
233		-	~~REQUIREMENTS~~ OF ~~THIS SECTION~~.
	209	+	(F) (G) “GEOTHERMAL BOREHOLE ” MEANS A GEOTHERMAL SHAFT 14
	210	+	DRILLED INTO THE EAR TH FOR USE IN A SYST EM THAT USES THE THE RMAL 15
	211	+	PROPERTIES OF THE EA RTH OR GROUNDWATER T O HEAT OR COOL BUILD INGS. 16
234	212
235		-	(2) IN DEVELOPING A PLAN FOR A PILOT SYSTEM , A GAS COMPANY
236		-	SHALL COORDINATE WIT H COMMUNITY GROUPS , LOCAL GOVERNMENTS , ANY
237		-	CERTIFIED REPRESENTATIVES OF T HE EMPLOYEES OF THE GAS COMPANY , THE
238		-	COMMISSION, THE ADMINISTRATION , AND ANY OTHER GROUPS THE GAS COMPANY
239		-	CONSIDERS NECESSARY TO ALLOW FOR DIVERSE DESIGN AMONG PILOT S YSTEMS.
	213	+	(H) “GREENHOUSE GAS REDUCTION FUND” MEANS THE GREENHOUSE GAS 17
	214	+	REDUCTION FUND UNDER THE FEDERA L INFLATION REDUCTION ACT OF 2022. 18
240	215
241		-	(3) EACH GAS COMPANY SHAL L INCLUDE IN THE NOT ICE FILED
242		-	UNDER PARAGRAPH (1) OF THIS SUBSECTION :
	216	+	(G) (I) “LEARNING FROM THE GROUND UP” MEANS THE LEARNING 19
	217	+	FROM THE GROUND UP RESEARCH TEAM FORM ED BY THE HOME ENERGY 20
	218	+	EFFICIENCY TEAM. 21
243	219
244		-	(I) DETAILS OF ANY COORD INATION WITH COMMUNI TY
245		-	GROUPS, LOCAL GOVERNMENTS , CERTIFIED REPRESENTA TIVES OF THE
246		-	EMPLOYEES OF THE GAS COMPANY, THE COMMISSION, THE ADMINISTRATION , AND
247		-	ANY OTHER GROUPS THE GAS COMPANY CONSI DERS NECESSARY TO AL LOW FOR
248		-	DIVERSE DESIGN AMONG PILOT SYSTEMS; AND
	220	+	(H) (J) “LOW OR MODERATE INCOM E HOUSING” HAS THE MEANING 22
	221	+	STATED IN § 7–703(F)(1)(III) OF THIS TITLE. 23
249	222
250		-	(II) ANY LETTERS OF SUPPO RT FROM INTERESTED G ROUPS.
	223	+	(I) (K) “PILOT SYSTEM” MEANS A PILOT THERMA L ENERGY NETWORK 24
	224	+	SYSTEM DEVELOPED BY A GAS COMPANY TO REP LACE GAS INFRASTRUCT URE WITH 25
	225	+	A THERMAL ENERGY NET WORK SYSTEM . 26
251	226
252		-	(B) (1) (I) ON OR BEFORE JULY 1, 2025, EACH GAS COMPANY THAT
253		-	SERVES AT LEAST 75,000 CUSTOMERS IN ITS DIS TRIBUTION TERRITORY SHALL
254		-	SUBMIT EITHER ONE OR TWO PROPOSALS FOR A PILOT SYSTEM TO THE COMMISSION
255		-	FOR APPROVAL .
	227	+	(J) (L) “PJM CAPACITY MARKET ” MEANS THE CAPACITY M ARKET OF 27
	228	+	PJM INTERCONNECTION , LLC OR ANY SUCCESSOR ORG ANIZATION THAT SERVI CES 28
	229	+	THE PJM REGION. 29
256	230
257		-	(II) A GAS COMPANY THAT SER VES FEWER THAN 75,000
258		-	CUSTOMERS IN ITS DIS TRIBUTION TERRITORY MAY SUBMIT A PROPOSA L FOR A
259		-	PILOT SYSTEM TO THE COMMISSION AFTER PROV IDING AT LEAST 60 DAYS’ NOTICE
260		-	TO THE COMMISSION OF THE COM PANY’S INTENT TO FILE A P ROPOSAL.
	231	+	(K) (M) “THERMAL ENERGY NETWOR K SYSTEM” MEANS A SYSTEM : 30
261	232
262		-	(2) ~~A PROPOSAL FOR A PILOT SYSTEM SHALL ENSURE THAT AT LEAST~~
263		-	~~80% OF ITS CUSTOMERS ARE FROM LOW OR MODERATE INCOME HOUSING .~~
	233	+	(1) OF CLOSED LOOP UNDER GROUND PIPING INFRAS TRUCTURE, 31
	234	+	INCLUDING GEOTHERMAL BOREHOLES , LEADING UP TO A UTIL ITY METER FOR THE 32 6 HOUSE BILL 397
264	235
265		-	(3) A CUSTOMER MAY CHOOSE TO OPT OUT OF A PILOT SYSTEM
266		-	BEFORE THE PROPOSAL FOR THE PILOT SYSTEM IS SUBMITTED.
267	236
268		-	(4) EACH PROPOSAL FOR A P ILOT SYSTEM SHALL DE MONSTRATE
269		-	THAT THE GAS COMPANY HAS SOUGHT ACCESS TO OBTAINED, OR IS REASONABLY
270		-	CERTAIN TO OBTAIN , ANY AVAILABLE FEDERA L FUNDING IN THE FOR M OF A MATCH,
271		-	GRANT, LOAN, OR TAX CREDIT , INCLUDING THOSE ESTA BLISHED UNDER THE
272		-	ENERGY INFRASTRUCTURE REINVESTMENT CATEGORY OF THE TITLE 17 CLEAN
273		-	ENERGY FINANCING PROGRAM AND THE GREENHOUSE GAS REDUCTION FUND
274		-	UNDER THE FEDERAL INFLATION REDUCTION ACT OF 2022. WES MOORE, Governor Ch. 564
	237	+	CONVEYANCE OR STORAG E OF RENEWABLE , NONGREENHOUSE GAS –EMITTING 1
	238	+	THERMAL ENERGY ; AND 2
275	239
276		-	– 7 –
	240	+	(2) THAT CREATES A NETWO RK OF CUSTOMERS WITH THERMAL 3
	241	+	ENERGY FOR HEATING A ND COOLING THROUGH N ONCOMBUSTING ELECTRI C HEAT 4
	242	+	PUMPS. 5
277	243
278		-	(5) EACH GAS COMPANY IS R ESPONSIBLE FOR ENSUR ING THAT EACH
279		-	PROPOSAL SUBMITTED B Y THE GAS COMPANY CO MPLIES WITH ALL APPL ICABLE
280		-	FEDERAL STATUTES , REGULATIONS , AND GUIDANCE RELATIN G TO ANY FEDERAL
281		-	FUNDING.
	244	+	7–1002. 6
282	245
283		-	(6) EACH PROPOSAL SHALL A DDRESS:
	246	+	(A) (1) (I) ON OR BEFORE OCTOBER 1, 2024, EACH GAS COMPANY 7
	247	+	THAT SERVES AT LEAST 75,000 CUSTOMERS IN ITS DIS TRIBUTION TERRITORY 8
	248	+	SHALL: 9
284	249
285		-	(I) HOW THE PILOT SYSTEM WILL DEVELOP USEFUL
286		-	INFORMATION FOR THE ADOPTION OF REGULATI ONS GOVERNING THERMA L
287		-	ENERGY NETWORK SYSTE MS;
	250	+	(I) 1. BEGIN TO DEVELOP A P LAN FOR A PILOT SYST EM OR 10
	251	+	SYSTEMS; AND 11
288	252
289		-	(II) ~~HOW~~ THE ~~PILOT SYSTEM FURTHERS GREENHOUSE GAS~~
290		-	~~EMISSIONS REDUCTION GOALS;~~
	253	+	(II) 2. FILE NOTICE WITH THE COMMISSION THAT THE 12
	254	+	COMPANY HAS BEGUN PL AN DEVELOPM ENT. 13
291	255
292		-	(III) HOW THE PILOT SYSTEM ADVANCES FINANCIAL A ND
293		-	TECHNICAL APPROACHES TO EQUITABLE AND AFF ORDABLE BUILDING
294		-	ELECTRIFICATION ;
	256	+	(II) ON OR BEFORE OCTOBER 1, 2024, A GAS COMPANY THAT 14
	257	+	SERVES FEWER THAN 75,000 CUSTOMERS IN ITS DIS TRIBUTION TERRITORY MAY 15
	258	+	DEVELOP A PLAN FOR A PILOT SYSTEM OR SYST EMS IN ACCORDANCE WI TH THE 16
	259	+	REQUIREMENTS OF THIS SECTION. 17
295	260
296		-	(IV) HOW THE PILOT SYSTEM CREATES BENEFITS TO ITS
297		-	CUSTOMERS , EMPLOYEES, AND SOCIETY AT LARGE , INCLUDING PUBLIC HEA LTH
298		-	BENEFITS, QUALITY JOB RETENTION OR CREATION, RELIABILITY, AND INCREASED
299		-	AFFORDABILITY OF REN EWABLE THERMAL ENERG Y OPTIONS;
	261	+	(2) IN DEVELOPING A PLAN FOR A PILOT SYS TEM, A GAS COMPANY 18
	262	+	SHALL COORDINATE WIT H COMMUNITY GROUPS , LOCAL GOVERNMENTS , ANY 19
	263	+	CERTIFIED REPRESENTA TIVES OF THE EMPLOYE ES OF THE GAS COMPAN Y, THE 20
	264	+	COMMISSION, THE ADMINISTRATION , AND ANY OTHER GROUPS THE GAS COMPANY 21
	265	+	CONSIDERS NECESSAR Y TO ALLOW FOR DIVER SE DESIGN AMONG PILO T SYSTEMS. 22
300	266
301		-	(V) HOW THE PILOT SYSTEM CONTRIBUTES TO AVOID ING COSTS
302		-	TO ELECTRIC DISTRIBU TION AND TRANSMISSIO N SYSTEMS THAT WOULD
303		-	OTHERWISE BE REQUIRE D FOR ELECTRIFICATION BY COM PARING THE PROPOSED
304		-	SYSTEM TO THE COST O F ELECTRIFICATION US ING THE MOST WIDELY
305		-	COMMERCIALLY AVAILAB LE AIR–SOURCE HEAT PUMPS ;
	267	+	(3) EACH GAS COMPANY SHAL L INCLUDE IN THE NOT ICE FILED 23
	268	+	UNDER PARAGRAPH (1) OF THIS SUBSECTION : 24
306	269
307		-	(VI) HOW THE PILOT SYSTEM CONTRIBUTES TO AVOID ING COSTS
308		-	RELATED TO GAS PIPE REPLACEMENT ;
	270	+	(I) DETAILS OF ANY COORD INATION WITH COMMUNI TY 25
	271	+	GROUPS, LOCAL GOVERNMENTS , CERTIFIED REPRESENTA TIVES OF THE 26
	272	+	EMPLOYEES OF THE GAS COMPANY, THE COMMISSION, THE ADMINISTRATION , AND 27
	273	+	ANY OTHER GROUPS THE GAS COMPANY CONSIDER S NECESSARY TO ALLOW FOR 28
	274	+	DIVERSE DESIGN AMONG PILOT SYSTEMS; AND 29
309	275
310		-	(VII) THE EXTENT TO WHICH THE PRO POSAL GIVES PRIORITY TO
311		-	UNDERSERVED OR OVERB URDENED COMMUNITIES AS DEFINED IN § 1–701(A) OF
312		-	THE ENVIRONMENT ARTICLE;
	276	+	(II) ANY LETTERS OF SUPPO RT FROM INTERESTED G ROUPS. 30
313	277
314		-	(~~VIII~~) ~~THE PILOT SYSTEM ’S~~ ~~ABILITY TO BID DEM AND REDUCTION~~
315		-	~~INTO THE PJM CAPACITY MARKET ;~~
	278	+	(B) (1) (I) ON OR BEFORE JULY 1, 2025, EACH GAS COMPANY THAT 31
	279	+	SERVES AT LEAST 75,000 CUSTOMERS IN ITS DIS TRIBUTION TERRITORY SHALL 32 HOUSE BILL 397 7
316	280
317		-	(IX) NEIGHBORHOODS AT T HE END POINT OF A GA S SYSTEM
318		-	WHERE A FULL TRANSIT ION FROM GAS SYSTEMS TO ELECTRIFICATION C OULD BE
319		-	FACILITATED WITHIN T HE PILOT PERIOD OR W ITHIN 5 YEARS AFTER THE PILO T
320		-	PERIOD CONCLUDES ; Ch. 564 2024 LAWS OF MARYLAND
321	281
322		-	– 8 –
	282	+	SUBMIT EITHER ONE OR TWO PROPOSALS FOR A PILOT SYSTEM TO THE COMMISSION 1
	283	+	FOR APPROVAL . 2
323	284
324		-	(X) SAFETY;
	285	+	(II) A GAS COMPANY THAT SER VES FEWER THAN 75,000 3
	286	+	CUSTOMERS IN ITS DISTRIBU TION TERRITORY MAY S UBMIT A PROPOSAL FOR A 4
	287	+	PILOT SYSTEM TO THE COMMISSION AFTER PROV IDING AT LEAST 60 DAYS’ NOTICE 5
	288	+	TO THE COMMISSION OF THE COM PANY’S INTENT TO FILE A P ROPOSAL. 6
325	289
326		-	(XI) RELIABILITY;
	290	+	(2) A PROPOSAL FOR A PILOT SYSTEM SHALL ENSURE THAT AT LEAST 7
	291	+	80% OF ITS CUSTOMERS ARE FROM LOW OR MODERATE INCOME HOUSING . 8
327	292
328		-	(~~XII~~) ~~ENVIRONMENTAL ACCEPT ABILITY~~ OF ~~THE FLUID~~
329		-	~~TECHNOLOGY EMPLOYED ;~~
	293	+	(3) A CUSTOMER MAY CHOOSE TO OPT OUT OF A PILO T SYSTEM 9
	294	+	BEFORE THE PROPOSAL FOR THE PILOT SYSTEM IS SUBMITTED. 10
330	295
331		-	(XIII) OPERATIONS;
	296	+	(4) EACH PROPOSAL FOR A P ILOT SYSTEM SHALL DE MONSTRATE 11
	297	+	THAT THE GAS COMP ANY HAS SOUGHT ACCESS TO OBTAINED, OR IS REASONABLY 12
	298	+	CERTAIN TO OBTAIN , ANY AVAILABLE FEDERA L FUNDING IN THE FOR M OF A MATCH, 13
	299	+	GRANT, LOAN, OR TAX CREDIT , INCLUDING THOSE ESTA BLISHED UNDER THE 14
	300	+	ENERGY INFRASTRUCTURE REINVESTMENT CATEGORY OF THE TITLE 17 CLEAN 15
	301	+	ENERGY FINANCING PROGRAM AND THE GREENHOUSE GAS REDUCTION FUND 16
	302	+	UNDER THE FEDERAL INFLATION REDUCTION ACT OF 2022. 17
332	303
333		-	(XIV) MAINTENANCE ;
	304	+	(5) EACH GAS COMPANY IS R ESPONSIBLE FOR ENSUR ING THAT EACH 18
	305	+	PROPOSAL SUBMITTED B Y THE GAS COMPANY CO MPLIES WITH ALL APPL ICABLE 19
	306	+	FEDERAL STAT UTES, REGULATIONS , AND GUIDANCE RELATIN G TO ANY FEDERAL 20
	307	+	FUNDING. 21
334	308
335		-	(XV) ~~CUSTOMER COMPLAINT R ESOLUTION;~~
	309	+	(6) EACH PROPOSAL SHALL A DDRESS: 22
336	310
337		-	(XVI) EMERGENCY RESPONSE ;
	311	+	(I) HOW THE PILOT SYSTEM WILL DEVELOP USEFUL 23
	312	+	INFORMATION FOR THE ADOPTION OF REGULATI ONS GOVERNING THERMA L 24
	313	+	ENERGY NETWORK SYSTE MS; 25
338	314
339		-	(~~XVII~~) ~~POINTS OF INTERCONNE CTION BETWEEN~~ THE GA S
340		-	~~COMPANY AND HOMEOWNE R FOR ANY FLUID TRAN SFER~~;
	315	+	(II) HOW THE PIL OT SYSTEM FURTHERS G REENHOUSE GAS 26
	316	+	EMISSIONS REDUCTION GOALS; 27
341	317
342		-	(XVIII) TECHNOLOGY TO BE USE D TO SHUT OFF FLUID FLOW
343		-	TO CUSTOMERS ;
	318	+	(III) HOW THE PILOT SYSTEM ADVANCES FINANCIAL A ND 28
	319	+	TECHNICAL APPROACHES TO EQUITABLE AND AFF ORDABLE BUILDING 29
	320	+	ELECTRIFICATION ; 30
344	321
345		-	(XIX) CUSTOMER SERVICE TER MINATION IN THE EVEN T OF BILL
346		-	NONPAYMENT ;
	322	+	(IV) HOW THE PILOT SYSTEM CREATES BENEFITS TO ITS 31
	323	+	CUSTOMERS , EMPLOYEES, AND SOCIETY AT LARGE , INCLUDING PUBLIC HEA LTH 32
	324	+	BENEFITS, QUALITY JOB RETENTIO N OR CREATION , RELIABILITY, AND INCREASED 33
	325	+	AFFORDABILITY OF REN EWABLE THERMAL ENERG Y OPTIONS; 34 8 HOUSE BILL 397
347	326
348		-	(XX) LIFE EXPECTANCY OF T HE GEOTHERMAL SYSTEM ; AND
349	327
350		-	(XXI) THE EXTENT TO WHICH THE PROPOSAL IS COST–EFFECTIVE
351		-	FOR RATEPAYERS ; AND
352	328
353		-	(XXI) (XXII) ANY OTHER REQUIREMEN TS AS DETERMINED BY THE
354		-	COMMISSION.
	329	+	(V) HOW THE PILOT SYSTEM CONTRIBUTES TO AVOID ING COSTS 1
	330	+	TO ELECTRIC DISTR IBUTION AND TRANSMIS SION SYSTEMS THAT WO ULD 2
	331	+	OTHERWISE BE REQUIRE D FOR ELECTRIFICATIO N BY COMPARING THE P ROPOSED 3
	332	+	SYSTEM TO THE COST O F ELECTRIFICATION US ING THE MOST WIDELY 4
	333	+	COMMERCIALLY AVAILAB LE AIR–SOURCE HEAT PUMPS ; 5
355	334
356		-	(7) EACH PROPOSAL SHALL I NCLUDE:
	335	+	(VI) HOW THE PILOT SYSTEM CONTRIBU TES TO AVOIDING COST S 6
	336	+	RELATED TO GAS PIPE REPLACEMENT ; 7
357	337
358		-	(I) A PROPOSED RATE STRU CTURE FOR THE PILOT SYSTEM
359		-	THAT ENSURES IS PROJECTED TO ENSU RE THAT ANY CUSTOMER PARTICIPATING IN
360		-	THE PILOT SYSTEM DOE S NOT PAY MORE FOR U TILITIES THAN IF THE CUSTOMER
361		-	HAD NOT PARTICIPATED ; AND
	338	+	(VII) THE EXTENT TO WHICH THE PROPOSAL GIVES P RIORITY TO 8
	339	+	UNDERSERVED OR OVERB URDENED COMMUNITIES AS DEFINED IN § 1–701(A) OF 9
	340	+	THE ENVIRONMENT ARTICLE; 10
362	341
363		-	(II) A PROPOSED SET OF ME ASUREMENTS OF ENERGY UNITS
364		-	AND ACCOUNTING STAND ARDS.
365		-	WES MOORE, Governor Ch. 564
	342	+	(VIII) THE PILOT SYSTEM ’S ABILITY TO BID DE MAND REDUCTION 11
	343	+	INTO THE PJM CAPACITY MARKET ; 12
366	344
367		-	~~– 9 –~~
368		-	~~(8) (I)~~ A ~~MUNICIPAL CORPORATIO N,~~ ~~COUNTY, OR COMMUNITY~~
369		-	~~ORGANIZATION MAY SUB MIT NEIGHBORHOODS TO GAS COMPANIES FOR~~
370		-	~~CONSIDERATION AS PAR T OF A PILOT SYSTEM .~~
	345	+	(IX) NEIGHBORHOODS AT THE END POINT OF A GAS S YSTEM 13
	346	+	WHERE A FULL TRANSIT ION FROM GAS SYSTEMS TO ELECTRIFICATION C OULD BE 14
	347	+	FACILITATED WITHIN T HE PILOT PERIOD OR W ITHIN 5 YEARS AFTER THE PILO T 15
	348	+	PERIOD CONCLUDES ; 16
371	349
372		-	(II) A MUNICIPAL CORPORATIO N, COUNTY, OR COMMUNITY
373		-	ORGANIZATION THAT SU BMITS A NEIGHBORHOOD TO A GAS COMPANY FOR
374		-	CONSIDERATION AS PAR T OF A PILOT SYSTEM UNDER SUBPARAGRAPH (I) OF THIS
375		-	PARAGRAPH SHALL SUBM IT A COPY OF ITS PRO POSAL TO THE COMMISSION.
	350	+	(X) SAFETY; 17
376	351
377		-	(C) (1) ON OR BEFORE DECEMBER 31, 2025, THE COMMISSION MAY
378		-	SHALL MAY APPROVE, APPROVE WITH MODIFIC ATIONS, OR REJECT A PROPOSAL .
	352	+	(XI) RELIABILITY; 18
379	353
380		-	(2) SUBJECT TO PARAGRAPH (3) OF THIS SUBSECTION , IF THE
381		-	COMMISSION DETERMINES THAT A PROPOSAL IS I N THE PUBLIC INTERES T AND IS
382		-	COST–EFFECTIVE, THE COMMISSION SHALL MAY APPROVE, APPROVE WITH
383		-	MODIFICATIONS , OR REJECT THE PROPOSAL .
	354	+	(XII) ENVIRONMENTAL ACCEPT ABILITY OF THE FLUID 19
	355	+	TECHNOLOGY EMPLOYED ; 20
384	356
385		-	(3) (I) IN DETERMINING WHETHE R TO APPROVE , APPROVE WITH
386		-	MODIFICATIONS , OR REJECT A PROPOSAL , THE COMMISSION SHALL :
	357	+	(XIII) OPERATIONS; 21
387	358
388		-	(I) 1. CONSIDER THE PROJECT ED COSTS AND BENEFIT S OF
389		-	THE PROJECTS PROPOSE D FOR INCLUSION IN T HE PILOT SYSTEM BY U SING A TEST
390		-	THAT INCLUDES :
	359	+	(XIV) MAINTENANCE ; 22
391	360
392		-	~~1. A.~~ ~~SOCIETAL COSTS AND B ENEFITS~~; ~~AND~~
	361	+	(XV) CUSTOMER COMPLAINT R ESOLUTION; 23
393	362
394		-	2. B. AVOIDED ENERGY AND I NFRASTRUCTURE
395		-	INVESTMENTS ;
	363	+	(XVI) EMERGENCY RESPONSE ; 24
396	364
397		-	(II) ~~2. DETERMINE WHETHER TH E PILOT SYSTEM IS IN~~ THE
398		-	~~PUBLIC INTEREST~~ AND ~~IN THE INTEREST OF~~ R ~~ATEPAYERS~~;
	365	+	(XVII) POINTS OF INTERCONNECTION BETW EEN THE GAS 25
	366	+	COMPANY AND HOMEOWNE R FOR ANY FLUID TRAN SFER; 26
399	367
400		-	(III) 3. DETERMINE HOW EACH P ILOT SYSTEM ’S
401		-	PERFORMANCE WILL BE EVALUATED DURING THE PILOT SYSTEM’S DURATION; AND
	368	+	(XVIII) TECHNOLOGY TO BE USE D TO SHUT OFF FLUID FLOW 27
	369	+	TO CUSTOMERS ; 28
	370	+	HOUSE BILL 397 9
402	371
403		-	(IV) 4. ENSURE THAT EACH PIL OT SYSTEM:
404	372
405		-	1~~. A. HAS A PROVISION FOR CUSTOMERS WHO MAY WI SH TO~~
406		-	~~OPT OUT DURING THE C OURSE OF THE PILOT P ERIOD~~; ~~AND~~
	373	+	(XIX) CUSTOMER SERVICE TER MINATION IN THE EVEN T OF BILL 1
	374	+	NONPAYMENT ; 2
407	375
408		-	2. B. DETAILS RATEPAYER IM PACTS FOR PILOT SYST EM
409		-	PARTICIPANTS AND ALL CUSTOMERS IN THE GAS COMPANY’S SERVICE TERRITORY ;
410		-	AND
411		-	Ch. 564 2024 LAWS OF MARYLAND
	376	+	(XX) LIFE EXPECTANCY OF T HE GEOTHERMAL SYSTEM ; AND 3
412	377
413		-	– 10 –
414		-	5. DETERMINE WHETHER TH E PROPOSAL IS
415		-	COST–EFFECTIVE IN ACCORDA NCE WITH SUBPARAGRAP H (II) OF THIS PARAGRAPH .
	378	+	(XXI) THE EXTENT TO WHICH THE PROPOSAL IS COST –EFFECTIVE 4
	379	+	FOR RATEPAYERS ; AND 5
416	380
417		-	(II) ~~A PROPOSAL UNDER THIS SECTION IS COST –EFFECTIVE~~ IF
418		-	~~THE COMMISSION DETERMINES THAT:~~
	381	+	(XXI) (XXII) ANY OTHER REQUIREMEN TS AS DETERMINED BY THE 6
	382	+	COMMISSION. 7
419	383
420		-	1. THE PROJECTED BENEFI TS ARE GREATER THAN THE
421		-	PROJECTED COSTS FOR ALL RATEPAYERS IN TH E GAS COMPANY ’S SERVICE
422		-	TERRITORY;
	384	+	(7) EACH PROPOSAL SHALL I NCLUDE: 8
423	385
424		-	2. THE ~~GAS COMPANY HAS OBTAINED, OR IS~~
425		-	~~REASONABLY CERTAIN T O OBTAIN,~~ ~~FEDERAL FUNDING UNDE R THE FINANCING~~
426		-	~~PROGRAM OR~~ THE ~~GREENHOUSE GAS REDUCTION FUND TO SUPPORT THE C OSTS~~
427		-	~~OF A PILOT SYSTEM~~ ; AND
	386	+	(I) A PROPOSED RATE STRU CTURE FOR THE PILOT SYSTEM 9
	387	+	THAT ENSURES IS PROJECTED TO ENSU RE THAT ANY CUSTOMER PA RTICIPATING IN 10
	388	+	THE PILOT SYSTEM DOE S NOT PAY MORE FOR U TILITIES THAN IF THE CUSTOMER 11
	389	+	HAD NOT PARTICIPATED ; AND 12
428	390
429		-	3. THE FEDERAL FUNDING THAT THE GAS COMPANY HAS
430		-	OBTAINED, OR IS REASONABLY CERT AIN TO OBTAIN, TO SUPPORT THE COSTS OF A
431		-	PILOT SYSTEM WOULD N OT BE MORE COST –EFFECTIVE IN MEETING OTHER
432		-	GREENHOUSE GAS REDUC TION OR ELECTRIFICAT ION MEASURES IN THE STATE.
	391	+	(II) A PROPOSED SET OF ME ASUREMENTS OF ENERGY UNITS 13
	392	+	AND ACCOUNTING STAND ARDS. 14
433	393
434		-	(4) (I) ~~EXCEPT AS PROVIDED IN SUBPARAGRAPH (II) OF THIS~~
435		-	~~PARAGRAPH, EACH~~ GAS ~~COMPANY SHA LL COMPLETE CONSTRUC TION OF A PILOT~~
436		-	~~SYSTEM WITHIN 1 YEAR AFTER THE COMMISSION APPROVES~~ T HE SYSTEM.
	394	+	(8) (I) A MUNICIPAL CORPORATIO N, COUNTY, OR COMMUNITY 15
	395	+	ORGANIZATION MAY SUB MIT NEIGHBORHOODS TO GAS COMPANIES FOR 16
	396	+	CONSIDERATION AS PAR T OF A PILOT SYSTEM . 17
437	397
438		-	(II) THE COMMISSION MAY EXTEND THE DEADLINE UNDER
439		-	SUBPARAGRAPH (I) OF THIS PARAGRAPH FO R GOOD CAUSE SHOWN .
	398	+	(II) A MUNICIPAL CORPORATIO N, COUNTY, OR COMMUNITY 18
	399	+	ORGANIZATION THAT SU BMITS A NEIGHBORHOOD TO A GAS COMPANY FOR 19
	400	+	CONSIDERATION AS PAR T OF A PILOT SYSTEM UNDER SUBPARAGRAPH (I) OF THIS 20
	401	+	PARAGRAPH SHALL SUBM IT A COPY OF ITS PRO POSAL TO THE COMMISSION. 21
440	402
441		-	(5) IF THE COMMISSION APPROVES A PROPO SAL WITH
442		-	MODIFICATIONS , THE COMMISSION SHALL GIVE THE GAS COMPANY A RE ASONABLE
443		-	AMOUNT OF TIME TO MA KE THE NECESSARY MOD IFICATIONS.
	403	+	(C) (1) ON OR BEFORE DECEMBER 31, 2025, THE COMMISSION MAY 22
	404	+	SHALL MAY APPROVE, APPROVE WITH MODIFIC ATIONS, OR REJECT A PROPOSAL . 23
444	405
445		-	(6) ON COMPLETION OF A PI LOT SYSTEM, THE GAS COMPANY SHAL L
446		-	FILE WITH THE COMMISSION FOR EVALUA TION ANY INFORMATION RELEVANT TO
447		-	THE CRITERIA ESTABLI SHED UNDER PARAGRAPH (3) OF THIS SUBSECTION .
	406	+	(2) SUBJECT TO PARAGRAPH (3) OF THIS SUBSECTION , IF THE 24
	407	+	COMMISSION DETERMINES THAT A PROPOSAL IS I N THE PUBLIC INTERES T AND IS 25
	408	+	COST–EFFECTIVE, THE COMMISSION SHALL MAY APPROVE, APPROVE WITH 26
	409	+	MODIFICATIONS , OR REJECT THE PROPOSAL . 27
448	410
449		-	(D) (1) EACH PILOT SYSTEM SHA LL MEET THE REQUIREM ENTS FOR
450		-	PILOT SYSTEMS UNDER THIS SUBTITLE FOR 2 YEARS AFTER THE PILO T SYSTEM IS
451		-	INITIATED AND OPERATIONAL .
	411	+	(3) (I) IN DETERMINING WHETHE R TO APPROVE , APPROVE WITH 28
	412	+	MODIFICATIONS , OR REJECT A PROPOSAL , THE COMMISSION SHALL : 29
452	413
453		-	(2) (I) ONCE THE 2–YEAR PERIOD UNDER PA RAGRAPH (1) OF THIS
454		-	SUBSECTION HAS PASSE D, THE COMMISSION, IN CONSULTATION WITH THE
455		-	ADMINISTRATION , AND THE OFFICE OF PEOPLE’S COUNSEL, THE ELECTRIC , GAS,
456		-	OR WATER COMPANY THA T OWNS AND MANAGES T HE PILOT SYSTEM , A CERTIFIED WES MOORE, Governor Ch. 564
	414	+	(I) 1. CONSIDER THE PROJECT ED COSTS AND BENEFIT S OF 30
	415	+	THE PROJECTS PROPOSE D FOR INCLUSION IN THE PIL OT SYSTEM BY USING A TEST 31
	416	+	THAT INCLUDES : 32 10 HOUSE BILL 397
457	417
458		-	– 11 –
459		-	REPRESENTATIVE OF TH E EMPLOYEES OF THE E LECTRIC COMPANY , GAS COMPANY ,
460		-	OR WATER COMPANY THA T OWNS AND MANAGES T HE PILOT SYSTEM , AND
461		-	PARTICIPATING CUSTOM ERS, SHALL DETERMINE WHET HER TO MAKE THE PILO T
462		-	SYSTEM PERMANENT .
463	418
464		-	(II) A PILOT SYSTEM MADE PE RMANENT UNDER
465		-	SUBPARAGRAPH (I) OF THIS PARAGRAPH SH ALL CONTINUE TO MEET THE
466		-	REQUIREMENTS PLACED ON PILOT SYSTEMS UND ER THIS SUBTITLE.
467	419
468		-	(III) IF A DETERMINATION IS MADE THAT A PILOT SY STEM WILL
469		-	NOT BE MADE PERMANEN T UNDER SUBPARAGRAPH (I) OF THIS PARAGRAPH , THE
470		-	COMMISSION SHALL MAY APPROVE RECOVERY OF ALL PRUDENTLY INCURRED
471		-	COSTS NECESSARY FOR A GAS COMPANY TO COM PLY WITH THE DETERMI NATION.
	420	+	1. A. SOCIETAL COSTS AND B ENEFITS; AND 1
472	421
473		-	(3) THE COMMISSION SHALL ADOP T REGULATIONS ADDRES SING THE
474		-	DECOMMISSIONING OR D ISCONTINUANCE OF A P ILOT SYSTEM , INCLUDING
475		-	REGULATIONS ENSURING THAT THE CUSTOMERS W HO PARTICIPATED IN T HE PILOT
476		-	SYSTEM DO NOT INCUR ADDITIONAL EXPENSES FOR THE DECOMMISSION ING OR
477		-	INSTALLATION OF AN A PPLIANCE THAT IS USE D IN THE PILOT SYSTE M AND IS
478		-	DECOMMISSIONED BEFOR E THE END OF ITS USE FUL LIFE.
	422	+	2. B. AVOIDED ENERGY AND I NFRASTRUCTURE 2
	423	+	INVESTMENTS ; 3
479	424
480		-	(E) (1) EACH GAS COMPANY IMPL EMENTING A PILOT SYS TEM SHALL
481		-	PARTICIPATE IN STAND ARDIZED DATA COLLECT ION COORDINATED BY T HE
482		-	COMMISSION.
	425	+	(II) 2. DETERMINE WHETHER TH E PILOT SYSTEM IS IN THE 4
	426	+	PUBLIC INTEREST AND IN THE INTEREST OF RATEPAYERS ; 5
483	427
484		-	(2) ~~ANY STANDARDIZED DATA COLLECTED UNDER PARA GRAPH (1) OF~~
485		-	~~THIS SUBSECTION SHAL L:~~
	428	+	(III) 3. DETERMINE HOW EACH P ILOT SYSTEM ’S 6
	429	+	PERFORMANCE WILL BE EVALUATED DURING THE PILOT SYSTEM’S DURATION; AND 7
486	430
487		-	(I) BE FILED WITH THE COMMISSION BY THE APP ROPRIATE
488		-	GAS COMPANY ; AND
	431	+	(IV) 4. ENSURE THAT EACH PIL OT SYSTEM: 8
489	432
490		-	(II) INCLUDE DATA FROM TH E LEARNING FROM THE GROUND
491		-	UP AND ANY OTHER NATI ONAL RESEARCH PROJEC T FOR THE DEVELOPMEN T OF
492		-	THERMAL ENERGY NETWO RK SYSTEMS THAT THE COMMISSION CONSIDERS
493		-	APPROPRIATE .
	433	+	1. A. HAS A PROVISION FOR CUSTOMERS WHO MAY WI SH TO 9
	434	+	OPT OUT DURING THE C OURSE OF THE PILOT PERIO D; AND 10
494	435
495		-	(F) (1) THE ADMINISTRATION SHALL PROVIDE FUNDING IN T HE FORM OF
496		-	GRANTS TO COMMUNITY –BASED ORGANIZATIONS THAT PERFORM OUTREAC H IN
497		-	NEIGHBORHOODS TO INC REASE PARTICIPATION IN A PILOT SYSTEM AN D
498		-	COORDINATE THE IMPLE MENTATION OF AN APPR OVED PILOT SYSTEM .
	436	+	2. B. DETAILS RATEPAYER IM PACTS FOR PILOT SYST EM 11
	437	+	PARTICIPANTS AND ALL CUSTOMERS IN THE GAS COMPANY’S SERVICE TERRITORY ; 12
	438	+	AND 13
499	439
500		-	(2) THE ADMINISTRATION MAY PRO VIDE UP TO $1,000,000 IN
501		-	FUNDING TO A COMMUNI TY–BASED ORGANIZATION U NDER PARAGRAPH (1) OF THIS
502		-	SUBSECTION. Ch. 564 2024 LAWS OF MARYLAND
	440	+	5. DETERMINE WHETHER TH E PROPOSAL IS 14
	441	+	COST–EFFECTIVE IN ACCORDA NCE WITH SUBPARAGRAP H (II) OF THIS PARAGRAPH . 15
503	442
504		-	– 12 –
	443	+	(II) A PROPOSAL UNDER THIS SECTION IS COST –EFFECTIVE IF 16
	444	+	THE COMMISSION DETERMINES THAT: 17
505	445
506		-	(3) FUNDING UNDER THIS SU BSECTION MAY BE PROV IDED ONLY
507		-	BEFORE OCTOBER 1, 2025.
	446	+	1. THE PROJECTED BENEFI TS ARE GREATER THAN THE 18
	447	+	PROJECTED COSTS FOR ALL RATEPAYERS IN TH E GAS COMPANY ’S SERVICE 19
	448	+	TERRITORY; 20
508	449
509		-	~~(4) FUNDING UNDER THIS SU BSECTION MAY BE PRO VIDED FROM~~ THE
510		-	~~STRATEGIC ENERGY INVESTMENT FUND ESTABLISHED~~ UNDE R ~~§ 9–20B–05 OF~~ THE
511		-	~~STATE GOVERNMENT ARTICLE~~ OR ~~ANY OTHER SOURCE OF STATE OR FEDERAL~~
512		-	~~FUNDING.~~
	450	+	2. THE GAS COMPANY HAS OBTAINED, OR IS 21
	451	+	REASONABLY CERTAIN T O OBTAIN, FEDERAL FUNDING UNDE R THE FINANCING 22
	452	+	PROGRAM OR THE GREENHOUSE GAS REDUCTION FUND TO SUPPORT THE C OSTS 23
	453	+	OF A PILOT SYSTEM ; AND 24
513	454
514		-	(G) (1) A GAS COMPANY MAY REQU EST APPROVAL FROM TH E
515		-	COMMISSION TO TRACK T HE COSTS OF DEVELOPI NG A PROPOSAL UNDER THI S
516		-	SECTION.
	455	+	3. THE FEDERAL FUNDING THAT THE GAS COMPANY HAS 25
	456	+	OBTAINED, OR IS REASONABLY CERT AIN TO OBTAIN, TO SUPPORT THE COSTS OF A 26
	457	+	PILOT SYSTEM WOULD N OT BE MORE COST –EFFECTIVE IN MEETING OTHER 27
	458	+	GREENHOUSE GAS REDUC TION OR ELECTRIFICAT ION MEASURES IN THE STATE. 28
517	459
518		-	(2) A REQUEST UNDER PARAGR APH (1) OF THIS SUBSECTION S HALL
519		-	INCLUDE A PROPOSED D EVELOPMENT PLAN AND BUDGET.
	460	+	(4) (I) EXCEPT AS PROVIDED IN SUBPARAGRAPH (II) OF THIS 29
	461	+	PARAGRAPH , EACH GAS COMPANY SHA LL COMPLETE CONSTRUC TION OF A PILOT 30
	462	+	SYSTEM WITHIN 1 YEAR AFTER THE COMMISSION APPROVES T HE SYSTEM. 31 HOUSE BILL 397 11
520	463
521		-	(3) THE COMMISSION SHALL APPR OVE A REQUEST UNDER
522		-	PARAGRAPH (1) OF THIS SUBSECTION O N FINDING THAT THE P ROPOSED P LAN AND
523		-	COSTS ARE NECESSARY TO MEET TH E REQUIREMENTS UNDER THIS SECTION,
524		-	REASONABLE , AND IN THE PUBLIC INTEREST .
525	464
526		-	(4) AT A GAS COMPANY ’S NEXT RATE CASE PRO CEEDING FOLLOWING
527		-	THE APPROVAL OF A RE QUEST UNDER THIS SUB SECTION, THE COMMISSION SHALL
528		-	MAY AUTHORIZE RECOVERY O F PRUDENTLY INCURRED COSTS ASSOCIATED WIT H
529		-	DEVELOPING THE PROPO SAL AND ANY CARRYING COSTS THAT THE COMMISSION
530		-	DETERMINES ARE APPRO PRIATE.
531	465
532		-	7–1003.
	466	+	(II) THE COMMISSION MAY EXTEND THE DEADLINE UNDER 1
	467	+	SUBPARAGRAPH (I) OF THIS PARAGRAPH FO R GOOD CAUSE SHOWN . 2
533	468
534		-	(A) (1) (I) THE ADMINISTRATION SHALL COORDINATE FUNDING
535		-	SOURCES, INCLUDING ALL AVAILA BLE FEDERAL FUNDING , PHILANTHROPIC
536		-	FUNDING, FUNDING AVAILABLE UN DER THE EMPOWER MARYLAND PROGRAM,
537		-	AND STRATEGIC ENERGY INVESTMENT FUND FUNDING ALLOCATE D TO ENERGY
538		-	EFFICIENCY, TO COVER ASSIST AN ELECTRIC C OMPANY, A GAS COMPANY , OR A
539		-	WATER COMPANY IN COV ERING THE COSTS FOR ALL BE HIND–THE–METER
540		-	PROJECTS, INCLUDING FULL ELECT RIFICATION AND WEATHERIZATION ,
541		-	ASSOCIATED WITH A TH ERMAL ENERGY NETWORK SYSTEM SO THAT ANY A FFECTED
542		-	RESIDENTIAL CUSTOMER S ARE NOT REQUIRED T O PAY FOR CONNECTION TO THE
543		-	THERMAL ENERGY NETWO RK SYSTEM OR ANY APPLIA NCE REPLACEMENTS
544		-	REQUIRED FOR ELECTRI FICATION.
	469	+	(5) IF THE COMMISSION APPROVES A PROPOSAL WITH 3
	470	+	MODIFICATIONS , THE COMMISSION SHALL GIVE THE GAS COMPANY A RE ASONABLE 4
	471	+	AMOUNT OF TIME TO MA KE THE NECESSARY MOD IFICATIONS. 5
545	472
546		-	(II) FUNDS FROM THE FEDERA L INFLATION REDUCTION ACT
547		-	MAY NOT EXCEED : WES MOORE, Governor Ch. 564
	473	+	(6) ON COMPLETION OF A PI LOT SYSTEM, THE GAS COMPANY SHAL L 6
	474	+	FILE WITH THE COMMISSION FOR EVALUATION ANY INFOR MATION RELEVANT TO 7
	475	+	THE CRITERIA ESTABLI SHED UNDER PARAGRAPH (3) OF THIS SUBSECTION . 8
548	476
549		-	– 13 –
	477	+	(D) (1) EACH PILOT SYSTEM SHA LL MEET THE REQUIREM ENTS FOR 9
	478	+	PILOT SYSTEMS UNDER THIS SUBTITLE FOR 2 YEARS AFTER THE PILO T SYSTEM IS 10
	479	+	INITIATED AND OPERAT IONAL. 11
550	480
551		-	1. $14,000 PER RESIDENTIAL UNIT ; AND
	481	+	(2) (I) ONCE THE 2–YEAR PERIOD UNDER PA RAGRAPH (1) OF THIS 12
	482	+	SUBSECTION HAS PASSE D, THE COMMISSION, IN CONSULTATION WITH THE 13
	483	+	ADMINISTRATION , AND THE OFFICE OF PEOPLE’S COUNSEL, THE ELECTRIC , GAS, 14
	484	+	OR WATER COMPANY THA T OWNS AND MANAGES T HE PILOT SYSTEM, A CERTIFIED 15
	485	+	REPRESENTATIVE OF TH E EMPLOYEES OF THE E LECTRIC COMPANY , GAS COMPANY , 16
	486	+	OR WATER COMPANY THA T OWNS AND MANAGES T HE PILOT SYSTEM , AND 17
	487	+	PARTICIPATING CUSTOM ERS, SHALL DETERMINE WHET HER TO MAKE THE PILO T 18
	488	+	SYSTEM PERMANENT . 19
552	489
553		-	2. $9,000,000 IN TOTAL.
	490	+	(II) A PILOT SYSTEM MADE PERMANENT UNDER 20
	491	+	SUBPARAGRAPH (I) OF THIS PARAGRAPH SH ALL CONTINUE TO MEET THE 21
	492	+	REQUIREMENTS PLACED ON PILOT SYSTEMS UND ER THIS SUBTITLE. 22
554	493
555		-	(2) (I) UNLESS PRECLUDED BY F EDERAL LAW , REGULATION , OR
556		-	PROGRAM REQUIREMENT GUIDELINES, THE ADMINISTRATION SHALL RESERVE
557		-	$12,000,000 $9,000,000 OF FEDERAL FUNDING F ROM THE U.S. DEPARTMENT OF
558		-	ENERGY TO ENSURE ADEQ UATE FUNDING FOR ANY APPLIANCES INSTALLED IN
559		-	CONNECTION WITH A PI LOT SYSTEM.
	494	+	(III) IF A DETERMINATION IS MADE THAT A PILOT SY STEM WILL 23
	495	+	NOT BE MADE PERMANEN T UNDER SUBPARAGRAPH (I) OF THIS PARAGRAPH , THE 24
	496	+	COMMISSION SHALL MAY APPROVE RECOVERY OF ALL PRUDENTLY INCURRED 25
	497	+	COSTS NECESSARY FOR A GAS COMPANY TO COM PLY WITH THE DETERMI NATION. 26
560	498
561		-	(II) FUNDS RESERVED UNDER SUBPARAGRAPH (I) OF THIS
562		-	PARAGRAPH SHALL BE A LLOCATED NOT LATER T HAN DECEMBER 31, 2029 JUNE 30,
563		-	2028, AND SPENT NOT LATER THAN DECEMBER 31, 2031 JUNE 30, 2030.
	499	+	(3) THE COMMISSION SHALL ADOP T REGULATIONS ADDRES SING THE 27
	500	+	DECOMMISSIONING OR D ISCONTINUANCE OF A P ILOT SYSTEM, INCLUDING 28
	501	+	REGULATIONS ENSURING THAT THE CUSTOMERS W HO PARTICIPATED IN T HE PILOT 29
	502	+	SYSTEM DO NOT INCUR ADDITIONAL EXPENSES FOR THE DECOMMISSION ING OR 30
	503	+	INSTALLATION OF AN A PPLIANCE THAT IS USE D IN THE PILOT SYSTE M AND IS 31
	504	+	DECOMMISSIONED BEFOR E THE END OF ITS USEFUL LIFE. 32
564	505
565		-	(3) THE ADMINISTRATION SHALL COORDINATE WITH THE
566		-	DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT TO PROVID E
567		-	SERVICES OR FUNDING FOR WEATHERIZATION F OR ALL LOW OR MODERA TE INCOME
568		-	HOUSING WITHIN THE P ILOT SYSTEM’S AREA.
	506	+	(E) (1) EACH GAS COMPANY IMPL EMENTING A PILOT SYS TEM SHALL 33
	507	+	PARTICIPATE IN STAND ARDIZED DATA COLLECT ION COORDINATED BY T HE 34
	508	+	COMMISSION. 35 12 HOUSE BILL 397
569	509
570		-	(4) IN PROVIDING FUNDING MADE AVAILABLE UNDER THE FEDERAL
571		-	INFLATION REDUCTION ACT OF 2022 FOR BEHIND–THE–METER PROJECTS , THE
572		-	ADMINISTRATION SHALL GIVE PRIORITY TO LOW AND MODERATE INCOME HOUSING.
573	510
574		-	(B) THE MARYLAND ENVIRONMENTAL SERVICE A GAS COMPANY
575		-	IMPLEMENTING A PILOT SYSTEM SHALL :
576	511
577		-	(1) SHALL ISSUE PROCUREM ENTS BE RESPONSIBLE FOR
578		-	CONSTRUCTION , INCLUDING ANY NECESS ARY RENOVATIONS , FOR
579		-	BEHIND–THE–METER PROJECTS RELAT ING TO ANY APPLIANCE OR PANEL
580		-	REPLACEMENTS OR UPGR ADES NECESSARY TO CO NNECT TO A THERMAL E NERGY
581		-	NETWORK SYSTEM AND O PERATE WITHOUT GAS;
	512	+	(2) ANY STANDARDIZED DATA COLLECTED UNDER PARA GRAPH (1) OF 1
	513	+	THIS SUBSECTION SHAL L: 2
582	514
583		-	(2) ~~PURSUE ALL TAX CREDI TS AND FEDERAL FUNDI NG AVAILABLE~~
584		-	~~FOR FRONT–OF–METER AND BEHIND –THE–METER PROJECTS~~ ; AND
	515	+	(I) BE FILED WITH THE COMMISSION BY THE APP ROPRIATE 3
	516	+	GAS COMPANY ; AND 4
585	517
586		-	(3) ~~COORDINATE WITH~~ THE ~~ADMINISTRATION TO ACC ESS FUNDS~~
587		-	~~AVAILABLE UNDER~~ THE ~~FEDERAL INFLATION REDUCTION ACT,~~ ~~REBATES AND~~
588		-	~~CREDITS AVAILABLE UN DER~~ THE ~~EMPOWER MARYLAND PROGRAM,~~ ~~AND ANY~~
589		-	~~OTHER AVAILABLE FUNDS~~ .
	518	+	(II) INCLUDE DATA FROM TH E LEARNING FROM THE GROUND 5
	519	+	UP AND ANY OTHER NATI ONAL RESEARCH PROJEC T FOR THE DEVELOPMEN T OF 6
	520	+	THERMAL ENERGY NETWO RK SYSTEMS THAT THE COMMISSION CONSIDERS 7
	521	+	APPROPRIATE . 8
590	522
591		-	(C) (1) AN ELECTRIC COMPANY , A GAS COMPANY , OR A WATER COMPANY
592		-	THAT OWNS AND MANAGE S A PILOT SYSTEM SHA LL PAY FOR ANY COST NOT COVERED Ch. 564 2024 LAWS OF MARYLAND
	523	+	(F) (1) THE ADMINISTRATION SHALL PROVIDE FUNDING IN T HE FORM OF 9
	524	+	GRANTS TO COMMUNITY –BASED ORGANIZATIONS THAT PERFORM OUTREAC H IN 10
	525	+	NEIGHBORHOODS TO INC REASE PARTICIPATION IN A PILOT SYSTEM AN D 11
	526	+	COORDINATE THE IMPLE MENTATION OF AN APPR OVED PILOT SYSTEM . 12
593	527
594		-	~~– 14 –~~
595		-	~~BY THE FUNDS AND TAX CREDITS SPECIFIED IN SUBSECTIONS~~ (~~A) AND (B~~) OF THIS
596		-	~~SECTION~~.
	528	+	(2) THE ADMINISTRATION MAY PR OVIDE UP TO $1,000,000 IN 13
	529	+	FUNDING TO A COMMUNI TY–BASED ORGANIZATION U NDER PARAGRAPH (1) OF THIS 14
	530	+	SUBSECTION. 15
597	531
598		-	(2) SUBJECT TO SUBSECTION (D) OF THIS SECTION , ANY COSTS
599		-	INCURRED BY AN ELECT RIC COMPANY , A GAS COMPANY , OR A WATER COMPANY
600		-	AFTER ALL FUNDS AND TAX CREDITS SPECIFIE D UNDER SUBSECTIONS (A) AND (B)
601		-	OF THIS SECTION HAVE BEEN APPLIED MAY BE RECOVERED WITHIN 1 YEAR OF
602		-	INCURRING THE COSTS THROUG H RATE ADJUSTMENTS O R ANOTHER MECHANISM
603		-	APPROVED BY THE COMMISSION.
	532	+	(3) FUNDING UNDER THIS SU BSECTION MAY BE PROV IDED ONLY 16
	533	+	BEFORE OCTOBER 1, 2025. 17
604	534
605		-	(D) ~~IF AN ELECTRIC COMPAN Y,~~ ~~A GAS COMPANY , OR A WATER COMPANY I S~~
606		-	~~REQUIRED TO OWN BEHI ND~~–THE~~–METER INFRASTRUCTURE FOR A SPECIFIED~~
607		-	~~PERIOD~~ OF ~~TIME TO QU ALIFY FOR A FUNDI NG SOURCE SPECIFIED UNDER~~
608		-	~~SUBSECTION (A)(1)(I) OF THIS SECTION:~~
	535	+	(4) FUNDING UNDER THIS SU BSECTION MAY BE PROVIDED FROM THE 18
	536	+	STRATEGIC ENERGY INVESTMENT FUND ESTABLISHED UNDE R § 9–20B–05 OF THE 19
	537	+	STATE GOVERNMENT ARTICLE OR ANY OTHER SOURCE OF STATE OR FEDERAL 20
	538	+	FUNDING. 21
609	539
610		-	(1) ~~THE COST ASSOCIATED WITH THE BEHIND –THE–METER~~
611		-	~~INFRASTRUCTURE SHALL BE RECOVERED WITHIN THE SPECIFIED OWNERS HIP~~
612		-	~~PERIOD REQUIRED FOR THE FUNDING;~~
	540	+	(G) (1) A GAS COMPANY MAY REQU EST APPROVAL FROM TH E 22
	541	+	COMMISSION TO TRACK T HE COSTS OF DEVE LOPING A PROPOSAL UN DER THIS 23
	542	+	SECTION. 24
613	543
614		-	(2) THE ELECTRIC COMPANY , GAS COMPANY , OR WATER COMPANY
615		-	SHALL MAINTAIN THE B EHIND–THE–METER INFRASTRUCTURE DURING THE
616		-	SPECIFIED OWNERSHIP PERIOD REQUIRED FOR THE FUNDING; AND
	544	+	(2) A REQUEST UNDER PARAGR APH (1) OF THIS SUBSECTION S HALL 25
	545	+	INCLUDE A PROPOSED D EVELOPMENT PLAN AND BUDGET. 26
617	546
618		-	(3) ~~OWNERSHIP OF~~ THE ~~BEH IND–THE–METER INFRASTRUCTURE~~
619		-	~~SHALL TRANSFER TO TH E ELECTRIC, GAS, OR WATER CUSTOMER WH~~ O THE
620		-	~~INFRASTRUCTURE WAS I NSTALLED~~ TO ~~BENEFIT WHEN THE SPECIFIED O WNERSHIP~~
621		-	~~PERIOD REQUIRED FOR~~ THE ~~FUNDING LAPSES~~ .
	547	+	(3) THE COMMISSION SHALL APPR OVE A REQUEST UNDER 27
	548	+	PARAGRAPH (1) OF THIS SUBSECTION O N FINDING THAT THE P ROPOSED PLAN AND 28
	549	+	COSTS ARE NECESSARY TO MEET TH E REQUIREMENTS UNDER THIS SECTION, 29
	550	+	REASONABLE , AND IN THE PUBLIC INTEREST . 30
622	551
623		-	(E) NOTHING IN THIS SECTI ON MAY BE CONSTRUED TO AUTHORIZE OR
624		-	PROHIBIT AN ELECTRIC COMPANY, A GAS COMPANY , OR A WATER COMPANY F ROM
625		-	RECOVERING COST S OF BEHIND–THE–METER INFRASTRUCTURE THAT DOES NOT
626		-	MEET THE REQUIREMENT S OF THIS SUBTITLE.
	552	+	(4) AT A GAS COMPANY ’S NEXT RATE CASE PRO CEEDING FOLLOWING 31
	553	+	THE APPROVAL OF A RE QUEST UNDER THIS SUB SECTION, THE COMMISSION SHALL 32
	554	+	MAY AUTHORIZE RECOVERY O F PRUDENTLY INCURRED COSTS ASSOCIATED WIT H 33 HOUSE BILL 397 13
627	555
628		-	(2) SHALL PROVIDE A PROC UREMENT SUBMISSION W INDOW OF NOT
629		-	LESS THAN 90 DAYS;
630	556
631		-	(3) SHALL AWARD CONTRACT S IN A TIMELY MANNER ; AND
	557	+	DEVELOPING THE PROPO SAL AND ANY CARRYING COSTS THAT THE COMMISSION 1
	558	+	DETERMINES ARE APPRO PRIATE. 2
632	559
633		-	(4) MAY ENTER INTO A CON TRACT OR CONTRACTS FOR THE
634		-	PROCUREMENT .
	560	+	7–1003. 3
635	561
636		-	(C) THE ADMINISTRATION AND TH E MARYLAND ENVIRONMENTAL
637		-	SERVICE SHALL COORDIN ATE WITH GAS COMPANI ES TO ENSURE THAT WES MOORE, Governor Ch. 564
	562	+	(A) (1) (I) THE ADMINISTRATION SHALL COORDINATE FUNDING 4
	563	+	SOURCES, INCLUDING ALL AVAILA BLE FEDERAL FUNDING , PHILANTHROPIC 5
	564	+	FUNDING, FUNDING AVAILABLE UN DER THE EMPOWER MARYLAND PROGRAM, 6
	565	+	AND STRATEGIC ENERGY INVESTMENT FUND FUNDING ALLOCATE D TO ENERGY 7
	566	+	EFFICIENCY, TO COVER ASSIST AN ELECTRIC C OMPANY, A GAS COMPANY , OR A 8
	567	+	WATER COMPANY IN COV ERING THE COSTS FOR ALL BE HIND–THE–METER 9
	568	+	PROJECTS, INCLUDING FULL ELECT RIFICATION AND WEATHERIZATION , 10
	569	+	ASSOCIATED WITH A TH ERMAL ENERGY NETWORK SYSTEM SO THAT ANY A FFECTED 11
	570	+	RESIDENTIAL CUSTOMER S ARE NOT REQUIRED T O PAY FOR CONNECTION TO THE 12
	571	+	THERMAL ENERGY NETWO RK SYSTEM OR ANY APPLIA NCE REPLACEMENTS 13
	572	+	REQUIRED FOR ELECTRI FICATION. 14
638	573
639		-	– 15 –
640		-	BEHIND–THE–METER PROJECTS CONNE CT TO THERMAL ENERGY NETWORK
641		-	SYSTEMS THAT SERVE C USTOMERS.
	574	+	(II) FUNDS FROM THE FEDERA L INFLATION REDUCTION ACT 15
	575	+	MAY NOT EXCEED : 16
642	576
643		-	~~7–1004~~.
	577	+	1. $14,000 PER RESIDENTIAL UNIT ; AND 17
644	578
645		-	(A) FOR ANY FRONT –OF–METER OR BEHIND –THE–METER PROJECTS
646		-	RELATED TO THE CONST RUCTION OF ANY THERM AL ENERGY NETWORK SY STEM
647		-	UNDER THIS SUBTITLE , AN ELECTRIC COMPANY , A GAS COMPANY , OR A WATER
648		-	COMPANY SHALL :
	579	+	2. $9,000,000 IN TOTAL. 18
649	580
650		-	(1) WORK WITH EMPLOYEES ALREADY UNDER CONTRA CT WITH THE
651		-	COMPANY; OR
	581	+	(2) (I) UNLESS PRECLUDED BY F EDERAL LAW , REGULATION , OR 19
	582	+	PROGRAM REQUIREMENT GUIDELINES, THE ADMINISTRATION SHALL RESERVE 20
	583	+	$12,000,000 $9,000,000 OF FEDERAL FUNDING F ROM THE U.S. DEPARTMENT OF 21
	584	+	ENERGY TO ENSURE ADEQ UATE FUNDING FOR ANY APPLIANCES INSTALLED IN 22
	585	+	CONNECTION WITH A PI LOT SYSTEM. 23
652	586
653		-	(2) USE QUALIFIED CONTRA CTORS THAT ABIDE BY A COMMUNITY
654		-	BENEFIT AGREEMENT .
	587	+	(II) FUNDS RESERVED UNDER SUBPARAGRAPH (I) OF THIS 24
	588	+	PARAGRAPH SHALL BE A LLOCATED NOT LATER T HAN DECEMBER 31, 2029 JUNE 30, 25
	589	+	2028, AND SPENT NOT LATER THAN DECEMBER 31, 2031 JUNE 30, 2030. 26
655	590
656		-	(B) ~~AN ELECTRIC COMPANY , A GAS COMPANY , OR A WATER COMPANY S HALL~~
657		-	~~GIVE ITS EMPLOYEE BA RGAINING UNIT AN OPP ORTUNITY~~ TO ~~WORK ON ANY~~
658		-	~~FRONT–OF–METER~~ OR ~~BEHIND –THE–METER PROJECTS RELATED TO THE~~
659		-	~~CONSTRUCTION OF ANY THERMAL ENERGY NETWO RK~~ SYSTEM.
	591	+	(3) THE ADMINISTRATION SHALL COORDINATE WITH THE 27
	592	+	DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT TO PROVID E 28
	593	+	SERVICES OR FUNDING FOR WEATHERIZATION F OR ALL LOW OR MODERA TE INCOME 29
	594	+	HOUSING WITHIN THE P ILOT SYSTEM’S AREA. 30
660	595
661		-	(C) ANY RESIDENTIAL ELECT RIFICATION OR EFFICI ENCY CONTRACTS
662		-	PROCURED BY THE MARYLAND ENVIRONMENTAL SERVICE SHALL BE SUBJ ECT TO A
663		-	COMMUNITY BENEFIT AG REEMENT.
	596	+	(4) IN PROVIDING FUNDING MADE AVAILABLE UNDER THE FEDERAL 31
	597	+	INFLATION REDUCTION ACT OF 2022 FOR BEHIND–THE–METER PROJECTS , THE 32
	598	+	ADMINISTRATION SHALL GIVE PRIORITY TO LOW AND MODERATE INCOME HOUSING. 33
	599	+	14 HOUSE BILL 397
664	600
665		-	(D) (1) AN ELECTRIC COMPANY , A GAS COMPANY , OR A WATER COMPANY
666		-	OPERATING A THERMAL ENERGY NETWORK SYSTE M SHALL PROVIDE ITS EMPLOYEE
667		-	BARGAINING UNIT AN O PPORTUNITY TO PROVID E MAINTENANCE AND OP ERATIONS
668		-	FOR ANY THERMAL ENER GY NETWORK SYSTEM .
669	601
670		-	(2) (I) SUBJECT TO SUBPA RAGRAPH (II) OF THIS PARAGRAPH , AN
671		-	ELECTRIC COMPANY , A GAS COMPANY , OR A WATER COMPANY M AY CONTRACT ANY
672		-	WORK UNDER THIS SUBT ITLE NOT CONDUCTED B Y THE COMPANY ’S EMPLOYEE
673		-	BARGAINING UNIT TO A QUALIFIED CONTRACTOR .
	602	+	(B) THE MARYLAND ENVIRONMENTAL SERVICE A GAS COMPANY 1
	603	+	IMPLEMENTING A PILOT SYSTEM SHALL : 2
674	604
675		-	(II) AN ELECTRIC COMPANY , A GAS COMPANY , OR A WATER
676		-	COMPANY SHALL REQUIR E A CONTRACTOR OR SU BCONTRACTOR ON A PRO JECT
677		-	UNDER THIS SUBTITLE TO:
	605	+	(1) SHALL ISSUE PROCUREM ENTS BE RESPONSIBLE FOR 3
	606	+	CONSTRUCTION , INCLUDING ANY NECESS ARY RENOVATIONS , FOR 4
	607	+	BEHIND–THE–METER PROJECTS RELAT ING TO ANY APPLIANCE OR PANEL 5
	608	+	REPLACEMENTS OR UPGR ADES NECESSARY TO CO NNECT TO A THERMAL E NERGY 6
	609	+	NETWORK SYSTEM AND O PERATE WITHOUT GAS; 7
678	610
679		-	1. PAY THE AREA PREVAIL ING WAGE RATE DETERMINED
680		-	BY THE COMMISSIONER OF LABOR AND INDUSTRY, INCLUDING WAGES AND FRINGE
681		-	BENEFITS;
682		-	Ch. 564 2024 LAWS OF MARYLAND
	611	+	(2) PURSUE ALL TAX CREDI TS AND FEDERAL FUNDI NG AVAILABLE 8
	612	+	FOR FRONT–OF–METER AND BEHIND –THE–METER PROJECTS ; AND 9
683	613
684		-	– 16 –
685		-	2. OFFER HEALTH C ARE AND RETIREMENT B ENEFITS TO
686		-	THE EMPLOYEES WORKIN G ON THE PROJECT ;
	614	+	(3) COORDINATE WITH THE ADMINISTRATION TO ACC ESS FUNDS 10
	615	+	AVAILABLE UNDER THE FEDERAL INFLATION REDUCTION ACT, REBATES AND 11
	616	+	CREDITS AVAILABLE UN DER THE EMPOWER MARYLAND PROGRAM, AND ANY 12
	617	+	OTHER AVAILABLE FUNDS . 13
687	618
688		-	3. PARTICIPATE IN AN AP PRENTICESHIP PROGRAM
689		-	REGISTERED WITH THE STATE OR THE U.S. DEPARTMENT OF LABOR;
	619	+	(C) (1) AN ELECTRIC COMPANY , A GAS COMPANY , OR A WATER COMPANY 14
	620	+	THAT OWNS AND MANAGE S A PILOT SYSTEM SHA LL PAY FOR ANY COST NOT COVERED 15
	621	+	BY THE FUNDS AND TAX CREDITS SPECIFIED IN SUBSECTIONS (A) AND (B) OF THIS 16
	622	+	SECTION. 17
690	623
691		-	4. ESTABLISH AND EXECUT E A PLAN FOR OUTREAC H,
692		-	RECRUITMENT , AND RETENTION O F STATE RESIDENTS TO PE RFORM WORK ON THE
693		-	PROJECT, WITH AN ASPIRATIONAL GOAL OF 25% OF TOTAL WORK HOURS
694		-	PERFORMED BY MARYLAND RESIDENTS , INCLUDING RESIDENTS WHO ARE:
	624	+	(2) SUBJECT TO SUBSECTION (D) OF THIS SECTION , ANY COSTS 18
	625	+	INCURRED BY AN ELECT RIC COMPANY , A GAS COMPANY , OR A WATER COMPANY 19
	626	+	AFTER ALL FUNDS AND TAX CREDITS SPECIFIE D UNDER SUBSECTIONS (A) AND (B) 20
	627	+	OF THIS SECTION HAVE BEEN APPLIED MAY BE RECOVERED WITHIN 1 YEAR OF 21
	628	+	INCURRING THE COSTS THROUG H RATE ADJUSTMENTS O R ANOTHER MECHANISM 22
	629	+	APPROVED BY THE COMMISSION. 23
695	630
696		-	A. RETURNING CITIZENS ;
	631	+	(D) IF AN ELECTRIC COMPAN Y, A GAS COMPANY , OR A WATER COMPANY I S 24
	632	+	REQUIRED TO OWN BEHI ND–THE–METER INFRASTRUCTURE FOR A SPECIFIED 25
	633	+	PERIOD OF TIME TO QU ALIFY FOR A FUNDI NG SOURCE SPECIFIED UNDER 26
	634	+	SUBSECTION (A)(1)(I) OF THIS SECTION: 27
697	635
698		-	B. WOMEN;
	636	+	(1) THE COST ASSOCIATED WITH THE BEHIND –THE–METER 28
	637	+	INFRASTRUCTURE SHALL BE RECOVERED WITHIN THE SPECIFIED OWNERS HIP 29
	638	+	PERIOD REQUIRED FOR THE FUNDING; 30
699	639
700		-	C. MINORITY INDIVIDUALS ; OR
	640	+	(2) THE ELECTRIC COMPANY , GAS COMPANY , OR WATER COMPANY 31
	641	+	SHALL MAINTAIN THE B EHIND–THE–METER INFRASTRUCTURE DURING THE 32
	642	+	SPECIFIED OWNERSHIP PERIOD REQUIRED FOR THE FUNDING; AND 33
701	643
702		-	D. VETERANS;
	644	+	(3) OWNERSHIP OF THE BEH IND–THE–METER INFRASTRUCTURE 34
	645	+	SHALL TRANSFER TO TH E ELECTRIC, GAS, OR WATER CUSTOMER WH O THE 35 HOUSE BILL 397 15
703	646
704		-	5. HAVE BEEN IN COMPLIA NCE WITH FEDERAL , STATE,
705		-	AND LOCAL WAGE AND H OUR LAWS FOR THE PRE VIOUS 3 YEARS;
706	647
707		-	6. ~~BE SUBJECT~~ TO ~~ALL STATE REPORTING AND~~
708		-	~~COMPLIANCE REQUIREME NTS;~~ ~~AND~~
	648	+	INFRASTRUCTURE WAS I NSTALLED TO BENEFIT WHEN THE SPECIFIED O WNERSHIP 1
	649	+	PERIOD REQUIRED FOR THE FUNDING LAPSES . 2
709	650
710		-	7. MAINTAIN ALL APPROPR IATE LICENSES IN GOO D
711		-	STANDING; AND
	651	+	(E) NOTHING IN THIS SECTI ON MAY BE CONSTRUED TO AUTHORIZE OR 3
	652	+	PROHIBIT AN ELECTRIC COMPANY, A GAS COMPANY , OR A WATER COMPANY F ROM 4
	653	+	RECOVERING COSTS OF BEHIND –THE–METER INFRASTRUCTURE THAT DOES NOT 5
	654	+	MEET THE REQUIREMENT S OF THIS SUBTITLE. 6
712	655
713		-	8. ESTABLISH AND EXECUT E A PLAN TO MEET OR
714		-	EXCEED THE MINORITY BUSINESS ENTERPRISE PARTICIPATION GOALS
715		-	ESTABLISHED UNDER SU BSECTION (D)(3) OF THIS SECTION.
	656	+	(2) SHALL PROVIDE A PROC UREMENT SUBMISSION W INDOW OF NOT 7
	657	+	LESS THAN 90 DAYS; 8
716	658
717		-	(E) (D) (1) THE FINDINGS AND EVID ENCE RELIED ON BY TH E GENERAL
718		-	ASSEMBLY FOR THE CONT INUATION OF TH E MINORITY BUSINESS ENTERPRISE
719		-	PROGRAM UNDER TITLE 14, SUBTITLE 3 OF THE STATE FINANCE AND
720		-	PROCUREMENT ARTICLE ARE INCORPORA TED IN THIS SUBSECTI ON.
	659	+	(3) SHALL AWARD CONTRACT S IN A TIMELY MANNER ; AND 9
721	660
722		-	(2) TO THE EXTENT PRACTIC ABLE AND AUTHORIZED BY THE U. S.
723		-	CONSTITUTION, AN APPROVED PILOT SY STEM APPLICAN T AND THE MARYLAND
724		-	ENVIRONMENTAL SERVICE SHALL COMPLY WITH THE STATE’S MINORITY BUSINESS
725		-	ENTERPRISE PROGRAM.
726		-	WES MOORE, Governor Ch. 564
	661	+	(4) MAY ENTER INTO A CON TRACT OR CONTRACTS FO R THE 10
	662	+	PROCUREMENT . 11
727	663
728		-	– 17 –
729		-	(3) (I) WITHIN 6 MONTHS AFTER THE APP ROVAL OF A PILOT
730		-	SYSTEM UNDER § 7–1002(C) OF THIS SUBTITLE , THE GOVERNOR’S OFFICE OF
731		-	SMALL, MINORITY, AND WOMEN BUSINESS AFFAIRS, IN CONSULTATION WITH THE
732		-	OFFICE OF THE ATTORNEY GENERAL AND THE GAS C OMPANY OPERATING THE
733		-	APPROVED PILOT SYSTE M, SHALL ESTABLISH A CL EAR PLAN FOR SETTING
734		-	REASONABLE AND APPRO PRIATE MINORITY BUSI NESS ENTERPRISE PART ICIPATION
735		-	GOALS AND PROCEDURES FOR THE P ILOT SYSTEM.
	664	+	(C) THE ADMINISTRATION AND TH E MARYLAND ENVIRONMENTAL 12
	665	+	SERVICE SHALL COORDIN ATE WITH GAS COMPANI ES TO ENSURE THAT 13
	666	+	BEHIND–THE–METER PROJECTS CONNE CT TO THERMAL ENERGY NETWORK 14
	667	+	SYSTEMS THAT SERVE C USTOMERS. 15
736	668
737		-	(II) TO THE EXTENT PRACTIC ABLE, THE GOALS AND
738		-	PROCEDURES SPECIFIED IN SUBPARAGRAPH (I) OF THIS PARAGRAPH SH ALL BE
739		-	BASED ON THE REQUIRE MENTS OF TITLE 14, SUBTITLE 7 OF THE STATE FINANCE
740		-	AND PROCUREMENT ARTICLE AND THE R EGULATIONS IMPLEMENT ING THAT
741		-	SUBTITLE.
	669	+	7–1004. 16
742	670
743		-	(4) (I) A GAS COMPANY OPERATIN G A PILOT SYSTEM AND THE
744		-	MARYLAND ENVIRONMENTAL SERVICE SHALL SUBMIT AN ANNUAL REPORT ON
745		-	MINORITY ENTERPRISE PARTICIPATION TO THE COMMISSION.
	671	+	(A) FOR ANY FRONT –OF–METER OR BEHIND –THE–METER PROJECTS 17
	672	+	RELATED TO THE CONST RUCTION OF ANY THERM AL ENERGY NETWORK SY STEM 18
	673	+	UNDER THIS SUBTITLE , AN ELECTRIC COMPANY , A GAS COMPANY , OR A WATER 19
	674	+	COMPANY SHALL : 20
746	675
747		-	(II) THE COMMISSION SHALL PROV IDE ANY REPORTS
748		-	RECEIVED UNDER SUBPA RAGRAPH (I) OF THIS PARAGRAPH TO THE GENERAL
749		-	ASSEMBLY, IN ACCORDANCE WITH § 2–1257 OF THE STATE GOVERNMENT ARTICLE.
	676	+	(1) WORK WITH EMPLOYEES ALREADY UNDER CONTRA CT WITH THE 21
	677	+	COMPANY; OR 22
750	678
751		-	7–1005.
	679	+	(2) USE QUALIFIED CONTRA CTORS THAT ABIDE BY A COMMUNITY 23
	680	+	BENEFIT AGREEMENT . 24
752	681
753		-	(A) AN ELECTRIC COMPANY , A GAS COMPANY , OR A WATER COMPANY M AY
754		-	OWN, MANAGE, AND RECOVER COSTS AS SOCIATED WITH A THERMAL E NERGY
755		-	NETWORK SYSTEM SUBJE CT TO THE APPROVAL O F THE COMMISSION.
	682	+	(B) AN ELECTRIC COMPANY , A GAS COMPANY , OR A WATER COMPANY S HALL 25
	683	+	GIVE ITS EMPLOYEE BA RGAINING UNIT AN OPP ORTUNITY TO WORK ON ANY 26
	684	+	FRONT–OF–METER OR BEHIND –THE–METER PROJECTS RELATED TO THE 27
	685	+	CONSTRUCTION OF ANY THERMAL ENERGY NETWO RK SYSTEM. 28
756	686
757		-	(B) AN ELECTRIC COMPANY , A GAS COMPANY , OR A WATER COMPANY M AY
758		-	DRILL A GEOTHERMAL B OREHOLE IN A PUBLIC UTILITY RIGHT–OF–WAY WHERE
759		-	FEASIBLE TO MEET THE REQUIREMENTS OF THI S SUBTITLE.
	687	+	(C) ANY RESIDENTIAL ELECT RIFICATION OR EFFICI ENCY CONTRACTS 29
	688	+	PROCURED BY THE MARYLAND ENVIRONMENTAL SERVICE SHALL BE SUBJ ECT TO A 30
	689	+	COMMUNITY BENEFIT AG REEMENT. 31
	690	+	16 HOUSE BILL 397
760	691
761		-	7–1006.
762	692
763		-	THE COMMISSION MAY RETAIN INDEPENDENT CONSULTA NTS AND EXPERTS
764		-	TO:
	693	+	(D) (1) AN ELECTRIC COMPANY , A GAS COMPANY , OR A WATER COMPANY 1
	694	+	OPERATING A THERMAL ENERGY NETWORK SYSTE M SHALL PROVIDE ITS EMPLOYEE 2
	695	+	BARGAINING UNIT AN O PPORTUNITY TO PROVID E MAINTENANCE AND OP ERATIONS 3
	696	+	FOR ANY THERMAL ENER GY NETWORK SYSTEM . 4
765	697
766		-	(1) ASSIST THE COMMISSION WITH ITS E VALUATION OF PILOT
767		-	SYSTEM APPLICATIONS UNDER § 7–1002(C) OF THIS SUBTITLE; AND
	698	+	(2) (I) SUBJECT TO SUBPA RAGRAPH (II) OF THIS PARAGRAPH , AN 5
	699	+	ELECTRIC COMPANY , A GAS COMPANY , OR A WATER COMPANY M AY CONTRACT ANY 6
	700	+	WORK UNDER THIS SUBT ITLE NOT CONDUCTED B Y THE COMPANY ’S EMPLOYEE 7
	701	+	BARGAINING UNIT TO A QUALIFIED CONTRACTOR . 8
768	702
769		-	(2) SUPPORT THE COMMISSION IN THE COM PLETION OF ANY
770		-	REQUIREMENTS UNDER T HIS SUBTITLE.
	703	+	(II) AN ELECTRIC COMPANY , A GAS COMPANY , OR A WATER 9
	704	+	COMPANY SHALL REQUIR E A CONTRACTOR OR SU BCONTRACTOR ON A PRO JECT 10
	705	+	UNDER THIS SUBTITLE TO: 11
771	706
772		-	Article – Environment Ch. 564 2024 LAWS OF MARYLAND
	707	+	1. PAY THE AREA PREVAIL ING WAGE RATE DETERMINED 12
	708	+	BY THE COMMISSIONER OF LABOR AND INDUSTRY, INCLUDING WAGES AND FRINGE 13
	709	+	BENEFITS; 14
773	710
774		-	– 18 –
	711	+	2. OFFER HEALTH CARE AND RETIREMENT BENEFITS TO 15
	712	+	THE EMPLOYEES WORKIN G ON THE PROJECT ; 16
775	713
776		-	1–701.
	714	+	3. PARTICIPATE IN AN AP PRENTICESHIP PROGRAM 17
	715	+	REGISTERED WITH THE STATE OR THE U.S. DEPARTMENT OF LABOR; 18
777	716
778		-	(a) (1) In this section the following words have the meanings indicated.
	717	+	4. ESTABLISH AND EXECUT E A PLAN FOR OUTREAC H, 19
	718	+	RECRUITMENT , AND RETENTION OF STATE RESIDENTS TO PE RFORM WORK ON THE 20
	719	+	PROJECT, WITH AN ASPIRATIONAL GOAL OF 25% OF TOTAL WORK HOURS 21
	720	+	PERFORMED BY MARYLAND RESIDENTS , INCLUDING RESIDENTS WHO ARE: 22
779	721
780		-	(7) “Overburdened community” means any census tract for which three or
781		-	more of the following environmental health indicators are above the 75th percentile
782		-	statewide:
	722	+	A. RETURNING CITIZENS ; 23
783	723
784		-	~~(i) Particulate matter (PM) 2.5~~;
	724	+	B. WOMEN; 24
785	725
786		-	~~(ii) Ozone~~;
	726	+	C. MINORITY INDIVIDUALS ; OR 25
787	727
788		-	~~(iii) National Air Toxics Assessment (NATA) diesel PM~~;
	728	+	D. VETERANS; 26
789	729
790		-	(iv) NATA cancer risk;
	730	+	5. HAVE BEEN IN COMPLIA NCE WITH FEDERAL , STATE, 27
	731	+	AND LOCAL WAGE AND H OUR LAWS FOR THE PRE VIOUS 3 YEARS; 28
791	732
792		-	(v) NATA respiratory hazard index;
	733	+	6. BE SUBJECT TO ALL STATE REPORTING AND 29
	734	+	COMPLIANCE REQUIREME NTS; AND 30
	735	+	HOUSE BILL 397 17
793	736
794		-	(vi) Traffic proximity;
795	737
796		-	(vii) Lead paint indicator;
	738	+	7. MAINTAIN ALL APPROPR IATE LICENSES IN GOO D 1
	739	+	STANDING; AND 2
797	740
798		-	(viii) National Priorities List Superfund site proximity;
	741	+	8. ESTABLISH AND EXECUT E A PLAN TO MEET OR 3
	742	+	EXCEED THE MINORITY BUSINESS ENTERPRISE PARTICIPATION GOALS 4
	743	+	ESTABLISHED UNDER SU BSECTION (D)(3) OF THIS SECTION. 5
799	744
800		-	(ix) Risk Management Plan facility proximity;
	745	+	(E) (D) (1) THE FINDINGS AND EVID ENCE RELIED ON BY TH E GENERAL 6
	746	+	ASSEMBLY FOR THE CONT INUATION OF TH E MINORITY BUSINESS ENTERPRISE 7
	747	+	PROGRAM UNDER TITLE 14, SUBTITLE 3 OF THE STATE FINANCE AND 8
	748	+	PROCUREMENT ARTICLE ARE INCORPORA TED IN THIS SUBSECTI ON. 9
801	749
802		-	(x) Hazardous waste proximity;
	750	+	(2) TO THE EXTENT PRACTIC ABLE AND AUTHORIZED BY THE U. S. 10
	751	+	CONSTITUTION, AN APPROVED PILOT SY STEM APPLICANT AND THE MARYLAND 11
	752	+	ENVIRONMENTAL SERVICE SHALL COMPLY WITH THE STATE’S MINORITY BUSINESS 12
	753	+	ENTERPRISE PROGRAM. 13
803	754
804		-	(xi) Wastewater discharge indicator;
	755	+	(3) (I) WITHIN 6 MONTHS AFTER THE APP ROVAL OF A PILOT 14
	756	+	SYSTEM UNDER § 7–1002(C) OF THIS SUBTITLE , THE GOVERNOR’S OFFICE OF 15
	757	+	SMALL, MINORITY, AND WOMEN BUSINESS AFFAIRS, IN CONSULTATION WITH THE 16
	758	+	OFFICE OF THE ATTORNEY GENERAL AND THE GAS C OMPANY OPERATING THE 17
	759	+	APPROVED PILOT SYSTE M, SHALL ESTABLISH A CL EAR PLAN FOR SETTING 18
	760	+	REASONABLE AND APPRO PRIATE MINORITY BUSI NESS ENTERPRISE PART ICIPATION 19
	761	+	GOALS AND PROCEDURES FOR THE PILOT SYSTEM . 20
805	762
806		-	(xii) Proximity to a Concentrated Animal Feeding Operation (CAFO);
	763	+	(II) TO THE EXTENT PRACTIC ABLE, THE GOALS AND 21
	764	+	PROCEDURES SPECIFIED IN SUBPARAGRAPH (I) OF THIS PARAGRAPH SH ALL BE 22
	765	+	BASED ON THE REQUIRE MENTS OF TITLE 14, SUBTITLE 7 OF THE STATE FINANCE 23
	766	+	AND PROCUREMENT ARTICLE AND THE REGULATIONS I MPLEMENTING THAT 24
	767	+	SUBTITLE. 25
807	768
808		-	(xiii) Percent of the population lacking broadband coverage;
	769	+	(4) (I) A GAS COMPANY OPERATIN G A PILOT SYSTEM AND THE 26
	770	+	MARYLAND ENVIRONMENTAL SERVICE SHALL SUBMIT AN ANNUAL REPORT ON 27
	771	+	MINORITY ENTERPRISE PARTICIPATION TO THE COMMISSION. 28
809	772
810		-	(xiv) Asthma emergency room discharges;
	773	+	(II) THE COMMISSION SHALL PROVIDE ANY REPORTS 29
	774	+	RECEIVED UNDER SUBPA RAGRAPH (I) OF THIS PARAGRAPH TO THE GENERAL 30
	775	+	ASSEMBLY, IN ACCORDANCE WITH § 2–1257 OF THE STATE GOVERNMENT ARTICLE. 31
811	776
812		-	~~(xv) Myocardial infarction discharges;~~
	777	+	7–1005. 32
813	778
814		-	(xvi) Low–birth–weight infants;
	779	+	(A) AN ELECTRIC COMPANY , A GAS COMPANY , OR A WATER COMPANY M AY 33
	780	+	OWN, MANAGE, AND RECOVER C OSTS ASSOCIATED WITH A THERMAL ENERGY 34
	781	+	NETWORK SYSTEM SUBJE CT TO THE APPROVAL O F THE COMMISSION. 35 18 HOUSE BILL 397
815	782
816		-	(xvii) Proximity to emitting power plants;
817	783
818		-	(xviii) Proximity to a Toxic Release Inventory (TRI) facility;
819	784
820		-	(xix) Proximity to a brownfields site; WES MOORE, Governor Ch. 564
	785	+	(B) AN ELECTRIC COMPANY , A GAS COMPANY , OR A WATER COMPANY M AY 1
	786	+	DRILL A GEOTHERMAL B OREHOLE IN A PUBLIC UTILITY RIGHT–OF–WAY WHERE 2
	787	+	FEASIBLE TO MEET THE REQUIREMENTS OF THIS SUBTIT LE. 3
821	788
822		-	– ~~19 –~~
	789	+	7–1006. 4
823	790
824		-	(xx) Proximity to mining operations; and
	791	+	THE COMMISSION MAY RETAIN INDEPENDENT CONSULTA NTS AND EXPERTS 5
	792	+	TO: 6
825	793
826		-	(xxi) Proximity to a hazardous waste landfill.
	794	+	(1) ASSIST THE COMMISSION WITH ITS E VALUATION OF PILOT 7
	795	+	SYSTEM APPLICATIONS UNDER § 7–1002(C) OF THIS SUBTITLE; AND 8
827	796
828		-	(8) ~~“Underserved community”~~ ~~means~~ any ~~census tract in which, according~~
829		-	~~to the most recent U.S~~. ~~Census Bureau Survey:~~
	797	+	(2) SUPPORT THE COMMISSION IN THE COMPLETION OF ANY 9
	798	+	REQUIREMENTS UNDER T HIS SUBTITLE. 10
830	799
831		-	~~(i) At least 25% of the residents qualify as low–income;~~
	800	+	Article – Environment 11
832	801
833		-	~~(ii) At least 50% of the residents identify as nonwhite; or~~
	802	+	1–701. 12
834	803
835		-	(~~iii~~) ~~At least 15%~~ of the ~~residents~~ have ~~limited English proficiency~~.
	804	+	(a) (1) In this section the following words have the meanings indicated. 13
836	805
837		-	Article – Housing and Community Development
	806	+	(7) “Overburdened community” means any census tract for which three or 14
	807	+	more of the following environmental health indicators are above the 75th percentile 15
	808	+	statewide: 16
838	809
839		-	~~4–1801~~.
	810	+	(i) Particulate matter (PM) 2.5; 17
840	811
841		-	(a) ~~In this subtitle the following words have the meanings indicated.~~
	812	+	(ii) Ozone; 18
842	813
843		-	(c) “Area median income” means the median household income for the area
844		-	adjusted for household size as published and annually updated by the United States
845		-	Department of Housing and Urban Development.
	814	+	(iii) National Air Toxics Assessment (NATA) diesel PM; 19
846	815
847		-	SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect July
848		-	1, 2024.
	816	+	(iv) NATA cancer risk; 20
849	817
850		-	Approved by the Governor, May 9, 2024.
	818	+	(v) NATA respiratory hazard index; 21
	819	+
	820	+	(vi) Traffic proximity; 22
	821	+
	822	+	(vii) Lead paint indicator; 23
	823	+
	824	+	(viii) National Priorities List Superfund site proximity; 24
	825	+
	826	+	(ix) Risk Management Plan facility proximity; 25
	827	+
	828	+	(x) Hazardous waste proximity; 26
	829	+	HOUSE BILL 397 19
	830	+
	831	+
	832	+	(xi) Wastewater discharge indicator; 1
	833	+
	834	+	(xii) Proximity to a Concentrated Animal Feeding Operation (CAFO); 2
	835	+
	836	+	(xiii) Percent of the population lacking broadband coverage; 3
	837	+
	838	+	(xiv) Asthma emergency room discharges; 4
	839	+
	840	+	(xv) Myocardial infarction discharges; 5
	841	+
	842	+	(xvi) Low–birth–weight infants; 6
	843	+
	844	+	(xvii) Proximity to emitting power plants; 7
	845	+
	846	+	(xviii) Proximity to a Toxic Release Inventory (TRI) facility; 8
	847	+
	848	+	(xix) Proximity to a brownfields site; 9
	849	+
	850	+	(xx) Proximity to mining operations; and 10
	851	+
	852	+	(xxi) Proximity to a hazardous waste landfill. 11
	853	+
	854	+	(8) “Underserved community” means any census tract in which, according 12
	855	+	to the most recent U.S. Census Bureau Survey: 13
	856	+
	857	+	(i) At least 25% of the residents qualify as low–income; 14
	858	+
	859	+	(ii) At least 50% of the residents identify as nonwhite; or 15
	860	+
	861	+	(iii) At least 15% of the residents have limited English proficiency. 16
	862	+
	863	+	Article – Housing and Community Development 17
	864	+
	865	+	4–1801. 18
	866	+
	867	+	(a) In this subtitle the following words have the meanings indicated. 19
	868	+
	869	+	(c) “Area median income” means the median household income for the area 20
	870	+	adjusted for household size as published and annually updated by the United States 21
	871	+	Department of Housing and Urban Development. 22
	872	+
	873	+	SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect July 23
	874	+	1, 2024. 24