EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
[Brackets] indicate matter deleted from existing law.
*hb0516*
HOUSE BILL 516
M3, M5 4lr2785
HB 171/22 – ECM & ENT CF 4lr1057
By: Delegates Fennell, Charkoudian, Harris, Martinez, Patterson, and Turner
Introduced and read first time: January 24, 2024
Assigned to: Economic Matters and Environment and Transportation
A BILL ENTITLED
AN ACT concerning 1
Climate Crisis and Environmental Justice Act of 2024 2
FOR the purpose of establishing the Climate Crisis Initiative in the Department of the 3
Environment to provide for the assessment of greenhouse gas pollution fees, the 4
provision of certain benefits to households and employers, and the funding of certain 5
climate–related activities; providing for the collection and use of certain greenhouse 6
gas pollution fees; establishing the Household and Employer Benefit Fund and the 7
Climate Crisis Infrastructure Fund as special, nonlapsing funds; requiring interest 8
earnings of the funds to be credited to the funds; requiring the Secretary of the 9
Environment, in consultation with certain units of State government, to identify 10
certain measures and programs related to the provision of low–income energy 11
assistance and improvements in the energy efficiency of certain renter–occupied 12
dwellings; and generally relating to the establishment of the Climate Crisis 13
Initiative and the collection and use of greenhouse gas pollution fees. 14
BY adding to 15
Article – Environment 16
New part designation “Part I. Statewide Inventory and Emissions Reduction Plan” 17
to immediately precede Section 2–1201; and Section 2–1215 through 2–1224 18
to be under the new part “Part II. Climate Crisis Initiative” 19
Annotated Code of Maryland 20
(2013 Replacement Volume and 2023 Supplement) 21
BY repealing and reenacting, without amendments, 22
Article – Environment 23
Section 2–1201 24
Annotated Code of Maryland 25
(2013 Replacement Volume and 2023 Supplement) 26
BY repealing and reenacting, without amendments, 27
Article – State Finance and Procurement 28 2 HOUSE BILL 516
Section 6–226(a)(2)(i) 1
Annotated Code of Maryland 2
(2021 Replacement Volume and 2023 Supplement) 3
BY repealing and reenacting, with amendments, 4
Article – State Finance and Procurement 5
Section 6–226(a)(2)(ii)189. and 190. 6
Annotated Code of Maryland 7
(2021 Replacement Volume and 2023 Supplement) 8
BY adding to 9
Article – State Finance and Procurement 10
Section 6–226(a)(2)(ii)191. and 192. 11
Annotated Code of Maryland 12
(2021 Replacement Volume and 2023 Supplement) 13
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 14
That the Laws of Maryland read as follows: 15
Article – Environment 16
PART I. STATEWIDE INVENTORY AND EMISSIONS REDUCTION PLAN. 17
2–1201. 18
The General Assembly finds that: 19
(1) Greenhouse gases are air pollutants that threaten to endanger the 20
public health and welfare of the people of Maryland; 21
(2) Global warming poses a serious threat to the State’s future health, 22
well–being, and prosperity; 23
(3) With 3,100 miles of tidally influenced shoreline, Maryland is vulnerable 24
to the threat posed by global warming and susceptible to rising sea levels and flooding, 25
which would have detrimental and costly effects; 26
(4) The State has the ingenuity to reduce the threat of global warming and 27
make greenhouse gas reductions a part of the State’s future by achieving a 25% reduction 28
in greenhouse gas emissions from 2006 levels by 2020 and by preparing a plan to meet a 29
longer–term goal of achieving net–zero statewide greenhouse gas emissions by 2045 in a 30
manner that promotes new “green” jobs, and protects existing jobs and the State’s economic 31
well–being; 32
(5) Studies have shown that energy efficiency programs and technological 33
initiatives consistent with the goal of reducing greenhouse gas emissions can result in a net 34
economic benefit to the State; 35 HOUSE BILL 516 3
(6) In addition to achieving the reduction established under this subtitle, 1
it is in the best interest of the State to act early and aggressively to achieve the Maryland 2
Commission on Climate Change’s recommended go als of reducing greenhouse gas 3
emissions by 10% from 2006 levels by 2012 and by 15% from 2006 levels by 2015; 4
(7) While reductions of harmful greenhouse gas emissions are one part of 5
the solution, the State should focus on developing and utilizing clean energies that provide 6
greater energy efficiency and conservation, such as renewable energy from wind, solar, 7
geothermal, and bioenergy sources; 8
(8) It is necessary to protect the public health, economic well–being, and 9
natural treasures of the State by reducing harmful air pollutants such as greenhouse gas 10
emissions by using practical solutions that are already at the State’s disposal; 11
(9) Cap and trade regulation of greenhouse gas emissions is most effective 12
when implemented on a federal level; 13
(10) Because of the need to remain competitive with manufacturers located 14
in other states or countries and to preserve existing manufacturing jobs in the State, 15
greenhouse gas emissions from the manufacturing sector are most effectively regulated on 16
a national and international level; and 17
(11) Because of the need to remain competitive with other states, 18
greenhouse gas emissions from certain other commercial and service sectors, including 19
freight carriers and generators of electricity, are most effectively regulated on a national 20
level. 21
2–1213. RESERVED. 22
2–1214. RESERVED. 23
PART II. CLIMATE CRISIS INITIATIVE. 24
2–1215. 25
(A) IN THIS PART THE FOLL OWING WORDS HAVE THE MEANINGS 26
INDICATED. 27
(B) “ADMINISTRATION ” MEANS THE MARYLAND ENERGY 28
ADMINISTRATION . 29
(C) “ADULT RESIDENT ” MEANS A RESIDENT OF THE STATE WHO IS AT LEAST 30
18 YEARS OLD. 31
4 HOUSE BILL 516
(D) “BENEFIT FUND” MEANS THE HOUSEHOLD AND EMPLOYER BENEFIT 1
FUND ESTABLISHED UNDE R § 2–1220 OF THIS SUBTITLE. 2
(E) “DISPROPORTIONATELY AF FECTED COMMUNITY ” MEANS A 3
COMMUNITY DIS PROPORTIONATELY AFFE CTED BY CLIMATE IMPA CTS, AS 4
IDENTIFIED BY THE ME THODOLOGY RECOMMENDE D BY THE COMMISSION ON 5
ENVIRONMENTAL JUSTICE AND SUSTAINABLE COMMUNITIES UNDER § 1–702 OF 6
THIS ARTICLE. 7
(F) “EMPLOYER” MEANS A PERSON , A GOVERNMENTAL UNIT , OR ANY 8
OTHER ENTITY THAT HAS EMPLOYEES WORKING IN THE STATE. 9
(G) “FOSSIL FUEL” MEANS: 10
(1) NATURAL GAS; 11
(2) PETROLEUM; 12
(3) COAL; AND 13
(4) ANY SOLID, LIQUID, OR GASEOUS FUEL DERI VED FROM ITEM (1), 14
(2), OR (3) OF THIS SUBSECTION . 15
(H) “FUGITIVE EMISSIONS” MEANS EMISSIONS OF G REENHOUSE GASES 16
FROM EQUIPMENT , INCLUDING PIPELINES , DUE TO LEAKS OR OTHE R UNINTENDED 17
OR IRREGULAR RELEASE S. 18
(I) “GREENHOUSE GAS POLLUT ION FEE” OR “FEE” MEANS A FEE IMPOSED 19
ON EACH CARBON DIOXI DE EQUIVALENT UNDER THIS PART. 20
(J) “INFRASTRUCTURE FUND” MEANS THE CLIMATE CRISIS 21
INFRASTRUCTURE FUND ESTABLISHED UNDE R § 2–1221 OF THIS SUBTITLE. 22
(K) “INITIATIVE” MEANS THE CLIMATE CRISIS INITIATIVE ESTABLISHE D 23
UNDER THIS PART . 24
(L) (1) “LIFE–CYCLE EMISSIONS ” MEANS GREENHOUSE GAS EMISSIONS 25
THAT ARE RELEASED DU RING PHASES OF A FUE L’S OR OTHER PRODUCT ’S LIFE. 26
(2) “LIFE–CYCLE EMISSIONS ” INCLUDES GREENHOUSE GAS 27
EMISSIONS RELEASED D URING EXTRACTION , PROCESSING, TRANSPORTATION , AND 28
DISPOSAL ACTIVITIES . 29
HOUSE BILL 516 5
(M) “MINOR RESIDENT ” MEANS A RESIDENT OF THE STATE WHO IS UNDER 1
THE AGE OF 18 YEARS. 2
(N) “QUINTILE 1” MEANS THE 20% OF HOUSEHOLDS WITH P RE–TAX 3
INCOMES THROUGH THE
20TH
PERCENTILE OF ALL HO USEHOLDS IN THE STATE. 4
(O) “QUINTILE 2” MEANS THE 20% OF HOUSEHOLDS WITH P RE–TAX 5
INCOMES ABOV E THE
20TH PERCENTILE THROUG H THE
40TH PERCENTILE OF ALL 6
HOUSEHOLDS IN THE STATE. 7
(P) “QUINTILE 3” MEANS THE 20% OF HOUSEHOLDS WITH P RE–TAX 8
INCOMES ABOVE THE
40TH PERCENTILE THROUG H THE
60TH PERCENTILE OF ALL 9
HOUSEHOLDS IN THE STATE. 10
(Q) “QUINTILE 4” MEANS THE 20% OF HOUSEHOLDS WITH P RE–TAX 11
INCOMES ABOVE THE
60TH PERCENTILE THROUG H THE
80TH PERCENTILE OF ALL 12
HOUSEHOLDS IN THE STATE. 13
(R) “QUINTILE 5” MEANS THE 20% OF HOUSEHOLDS WITH P RE–TAX 14
INCOMES ABOVE THE
80TH PERCENTILE OF ALL HOUSEHOLDS IN THE STATE. 15
2–1216. 16
(A) THERE IS A CLIMATE CRISIS INITIATIVE IN THE DEPARTMENT . 17
(B) THE PURPOSE OF THE INITIATIVE IS TO PROV IDE FOR: 18
(1) THE ASSESSMENT OF GRE ENHOUSE GAS POLLUTIO N FEES; 19
(2) THE PROVISION OF BENE FITS TO HOUSEHOLDS A ND EMPLOYERS 20
IN THE STATE TO MITIGATE THE IMPACT OF FEES UNDER THE INITIATIVE; AND 21
(3) THE FUNDING OF ACTIVI TIES FOR GREENHOUSE GAS EMISSIONS 22
REDUCTION AND SEQUES TRATION, IMPROVEMENTS IN RESI LIENCY, AND THE 23
PROMOTION OF A JUST ECONOMIC TRANSITION IN THE STATE. 24
2–1217. 25
(A) THE SECRETARY SHALL ADMIN ISTER THE SCHEDULES OF GREENHOUSE 26
GAS POLLUTION FEES U NDER THIS PART . 27
(B) THE SECRETARY MAY DELEGAT E ANY APPROPRIATE FU NCTIONS TO 28
THE COMPTROLLER UNDER THI S PART, SUCH AS THE COLLECTI ON OF GREENHOUSE 29 6 HOUSE BILL 516
GAS POLLUTION CHARGE S AND THE DISTRIBUTION OF BENEFITS. 1
(C) THE COMPTROLLER SHALL CAR RY OUT ALL FUNCTIONS THE 2
SECRETARY DELEGATES T O THE COMPTROLLER UNDER THI S PART. 3
2–1218. 4
(A) (1) EXCEPT AS PROVIDED IN PARAGRAPH (2) OF THIS SUBSECTION , A 5
GREENHOUSE GAS POLLU TION FEE SHALL BE COLLECTED ON ALL FOS SIL FUELS 6
BROUGHT INTO THE STATE FOR COMBUSTION IN THE STATE. 7
(2) NOTWITHSTANDING ANY O THER LAW , A GREENHOUSE GAS 8
POLLUTION FEE MAY NO T BE IMPOSED ON ANY GREENHOUSE –GAS–PRODUCING 9
SUBSTANCE: 10
(I) THAT WILL BE USED TO GENERATE ELE CTRICITY; OR 11
(II) IF THE IMPOSITION IS SUPERSEDED BY FEDERA L LAW OR 12
REGULATION . 13
(B) SUBJECT TO SUBSECTION (C) OF THIS SECTION, THE FEE ASSESSED PER 14
TON OF CARBON DIOXID E EQUIVALENT ON : 15
(1) NONTRANSPORTATION FUE LS SHALL: 16
(I) BE $25 IN 2025; 17
(II) INCREASE BY $5 EACH YEAR THEREAFTER THROUGH 2034; 18
AND 19
(III) BE $75 IN 2035 AND EACH YEAR THEREA FTER; AND 20
(2) TRANSPORTATION FUELS SHALL: 21
(I) BE $25 IN 2025; 22
(II) INCREASE BY $3 EACH YEAR THEREAFTER THROUGH 2034; 23
AND 24
(III) BE $52 IN 2035 AND EACH YEAR THEREA FTER. 25
(C) IF THE FEES AND BENEF ITS UNDER THIS PART TAKE EFFECT IN A 26
CALENDAR YEAR LATER THAN 2025, THE SECRETARY SHALL DELAY THE SCHEDULE 27 HOUSE BILL 516 7
OF FEES UNDER SUBSEC TION (B) OF THIS SECTION BY T HE SAME NUMBER OF YE ARS. 1
(D) (1) THE FEE ON FOSSIL FUELS T O BE COMBUSTED IN TH E STATE 2
SHALL BE: 3
(I) COLLECTED AT THE FOSS IL FUEL’S FIRST POINT OF SAL E IN 4
THE STATE; AND 5
(II) PAID BY THE ENTITY TR ANSPORTING THE FOSSI L FUEL 6
INTO THE STATE. 7
(2) (I) SUBJECT TO SUBPARAGRA PH (II) OF THIS PARAGRAPH , THE 8
ANNUAL TOTAL OF FEES PAID BY AN ENTITY TR ANSPORTING PETROLEUM 9
PRODUCTS INTO THE STATE UNDER PARAGRAPH (1) OF THIS SUBSECTION S HALL BE 10
REDUCED BY AN AMOUNT EQUAL TO THE ANNUAL TOTAL OF EMISSIONS 11
COMPLIANCE COST OBLI GATIONS THE PETROLEU M PRODUCT IS SUBJECT TO UN DER 12
REGIONAL INITIATIVES , INCLUDING THE TRANSPORTATION AND CLIMATE 13
INITIATIVE, FOR THE SAME YEAR . 14
(II) THE AMOUNT DEDUCTED U NDER SUBPARAGRAPH (I) OF 15
THIS PARAGRAPH MAY N OT EXCEED THE TOTAL AMOUNT OF THE FEE CA LCULATED 16
UNDER SUBSECTI ON (B) OF THIS SECTION. 17
(3) (I) SUBJECT TO SUBPARAGRA PH (II) OF THIS PARAGRAPH , A 18
FEE COLLECTED UNDER THIS SECTION MAY NOT BE PASSED THROUGH AS A DIRECT 19
COST TO: 20
1. AN END USER OF A FOSS IL FUEL; OR 21
2. A CUSTOMER OF A GAS CO MPANY. 22
(II) THIS PARAGRAPH DOES NOT P ROHIBIT THE PASSING 23
THROUGH TO A CUSTOME R OF A FEE COLLECTED UNDER THIS SECTION O N NATURAL 24
GAS DISTRIBUTED BY A GAS COMPANY ONLY TO THE EXTENT THAT THE PUBLIC 25
SERVICE COMMISSION APPROVES T HE FEE AS A PRUDENTL Y INCURRED COST OF 26
DISTRIBUTION. 27
(E) (1) A LOCAL DISTRIBUTION C OMPANY FOR NATURAL G AS SHALL PAY 28
THE FEE FOR ALL NATU RAL GAS THAT THE COM PANY DISTRIBUTES FOR 29
COMBUSTION IN THE STATE. 30
(2) THE FEE UNDER THIS SU BSECTION SHALL BE CA LCULATED BY 31
MULTIPLYING THE NUMB ER OF CUBIC FEET OF NATURAL GAS USED BY EACH 32 8 HOUSE BILL 516
CUSTOMER BY THE AMOU NT OF CARBON DIOXIDE EQUIVALENTS RELEASED BY 1
BURNING 1 CUBIC FOOT OF NATURA L GAS, AS THAT VALUE IS DET ERMINED BY THE 2
U.S. ENERGY INFORMATION ADMINISTRATION . 3
(F) SUBJECT TO § 2–1223 OF THIS SUBTITLE , THE SECRETARY SHALL 4
DETERMINE THE AMOUNT OF EMISSIONS, AS CARBON DIOXIDE EQ UIVALENTS, FROM 5
ESCAPED OR INTENTION ALLY RELEASED METHAN E DUE TO THE EXTRACT ION, 6
PROCESSING, TRANSPORT, OR DISTRIBUTION OF N ATURAL GAS BEFORE TH E POINT 7
OF COMBUSTION IN THE STATE, AND MAY AD D AN ADDITIONAL FEE FOR THESE 8
EMISSIONS. 9
(G) (1) UNITS OF GOVERNMENT W HOSE PRIMARY PURPOSE IS TO 10
PROVIDE PUBLIC TRANS PORTATION BY BUS , VAN, RAIL, OR OTHER MEANS THAT 11
REDUCE THE AMOUNT OF DRIVING BY PRIVATE M OTOR VEHICLES SHALL BE EXEMPT 12
FROM GREENHOUSE G AS POLLUTION FEES UN DER THIS PART. 13
(2) IF AN EXEMPTION FOR A UNIT UNDER PARAGRAPH (1) OF THIS 14
SUBSECTION IS NOT FE ASIBLE, THE UNIT SHALL BE FU LLY REIMBURSED FOR I TS 15
INCREASED COSTS UNDE R THIS PART FROM THE BENEFIT FUND. 16
(H) SUBJECT TO SUBSECTION (C) OF THIS SECTION, THE COLLECTION OF 17
THE FEE UNDER THIS S ECTION SHALL BEGIN O N THE ADOPTION OF AL L NECESSARY 18
RULES FOR ITS COLLEC TION, BUT NOT LATER THAN JANUARY 1, 2026. 19
(I) THE FEES COLLECTED UN DER THIS SECTION SHA LL BE PAID INTO THE 20
INFRASTRUCTURE FUND AND THE BENEFIT FUND IN ACCORDANCE WI TH THIS 21
PART. 22
(J) (1) USING THE BEST INFORM ATION AND SCIENCE RE ASONABLY 23
AVAILABLE, THE SECRETARY SHALL DETER MINE WHETHER TO IDEN TIFY ANY 24
GREENHOUSE GAS –EMITTING SUBSTANCE O R SOURCE, IN ADDITION TO NATUR AL 25
GAS, PETROLEUM , COAL, AND THEIR DERIVATIVE S, AS BEING A FOSSIL FU EL 26
SUBJECT TO THE FEE U NDER THIS PART . 27
(2) EMISSIONS FROM FARM A NIMALS AND CROPS MAY NOT BE 28
DESIGNATED AS SUBJEC T TO THE FEE UNDER T HIS PART. 29
2–1219. 30
(A) REVENUES FROM GREENHO USE GAS POLLUTION FEES COLLE CTED 31
UNDER THIS PART SHAL L BE DISTRIBUTED TO THE BENEFIT FUND AND THE 32
INFRASTRUCTURE FUND IN ACCORDANCE WI TH THIS SECTION. 33
HOUSE BILL 516 9
(B) OF THE REVENUES GENER ATED BY THE FEE : 1
(1) 50% SHALL BE DISTRIBUTED EACH YEAR TO THE BENEFIT FUND; 2
AND 3
(2) 50% SHALL BE DISTRIBUTED EACH YEAR TO THE 4
INFRASTRUCTURE FUND. 5
2–1220. 6
(A) THERE IS A HOUSEHOLD AND EMPLOYER BENEFIT FUND. 7
(B) THE PURPOSES OF THE BENEFIT FUND ARE TO: 8
(1) PROVIDE A HIGH DEGREE OF PROTECTION FOR LO W– AND 9
MODERATE–INCOME HOUSE HOLDS IN THE STATE; AND 10
(2) PROTECT ENERGY –INTENSIVE, TRADE–EXPOSED EMPLOYERS IN 11
THE STATE. 12
(C) THE SECRETARY SHALL ADMIN ISTER THE BENEFIT FUND. 13
(D) (1) THE BENEFIT FUND IS A SPECIAL , NONLAPSING FUND THAT IS 14
NOT SUBJECT TO § 7–302 OF THE STATE FINANCE AND PROCUREMENT ARTICLE. 15
(2) THE STATE TREASURER SHALL HOLD THE BENEFIT FUND 16
SEPARATELY, AND THE COMPTROLLER SHALL ACC OUNT FOR THE BENEFIT FUND. 17
(E) THE BENEFIT FUND CONSISTS OF : 18
(1) PROCEEDS OF FEES DIST RIBUTED TO THE BENEFIT FUND UNDER 19
§ 2–1219(B) OF THIS SUBTITLE; 20
(2) MONEY APPROPRIATED IN THE STATE BUDGET TO THE BENEFIT 21
FUND; AND 22
(3) ANY OTHER MONEY FROM ANY OTHER SOURCE ACC EPTED FOR 23
THE BENEFIT OF THE BENEFIT FUND. 24
(F) THE BENEFIT FUND MAY BE USED ONLY FOR: 25
(1) PAYMENT OF BEN EFITS UNDER THIS SEC TION; AND 26
10 HOUSE BILL 516
(2) ADMINISTRATION OF THE BENEFIT FUND, NOT TO EXCEED 5% OF 1
THE MONEY IN THE BENEFIT FUND. 2
(G) (1) THE STATE TREASURER SHALL INVES T THE MONEY OF THE 3
BENEFIT FUND IN THE SAME MANN ER AS OTHER STATE MONEY MAY BE IN VESTED. 4
(2) ANY INTEREST EARNINGS OF THE BENEFIT FUND SHALL BE 5
CREDITED TO THE BENEFIT FUND. 6
(H) IN THE BENEFIT FUND THERE ARE THE FO LLOWING SEPARATE 7
ACCOUNTS: 8
(1) THE HOUSEHOLD BENEFIT ACCOUNT, WHICH CONSISTS OF 80% 9
OF THE MONEY IN THE BENEFIT FUND; AND 10
(2) THE EMPLOYER BENEFIT ACCOUNT, WHICH CONSISTS OF 20% OF 11
THE MONEY IN THE BENEFIT FUND. 12
(I) (1) (I) MONEY IN THE HOUSEHOLD BENEFIT ACCOUNT SHALL BE 13
DISTRIBUTED AS BENEF ITS IN ACCORDANCE WI TH THIS SUBSECTION . 14
(II) 1. ONE–HALF SHALL BE DISTRI BUTED TO HOUSEHOLDS 15
IN QUINTILE 1. 16
2. ONE–THIRD SHALL BE DISTR IBUTED TO 17
HOUSEHOLDS IN QUINTI LE 2. 18
3. ONE–SIXTH SHALL BE DISTR IBUTED TO HOUSEHOLDS 19
IN QUINTILE 3. 20
(III) 1. IF THE QUINTILE 1 DISTRIBUTION IS NOT SUFFICIENT 21
TO ENSURE THAT NO QU INTILE 1 HOUSEHOLD PAYS MORE IN FEES THAN IT 22
RECEIVES IN BENEFITS , THE QUINTILE 1 DISTRIBUTION SHALL B E INCREASED TO 23
ENSURE THAT THIS REQ UIREMENT IS MET . 24
2. IF THE DISTRIBUTION T O QUINTILE 1 IS GREATER 25
THAN ONE–HALF, TWO–THIRDS OF THE FEES R EMAINING IN THE HOUSEHOLD 26
BENEFIT ACCOUNT AFTER DISTRIB UTION TO QUINTILE 1 SHALL BE DISTRIBUTED 27
TO QUINTILE 2 AND ONE–THIRD TO QUINTILE 3. 28
(2) (I) EACH QUINTILE’S TOTAL DISTRIBUTION AMOUNT SHALL BE 29
DIVIDED BY THE SUM O F THE ADULT RESIDENT S IN THAT QUINTILE P LUS ONE–HALF 30
OF THE MINOR RESIDENTS IN THAT QUINTILE TO PRODUCE THAT QUINTIL E’S 31 HOUSE BILL 516 11
INITIAL BENEFIT. 1
(II) EACH HOUSEHOLD IN A Q UINTILE SHALL RECEIV E A 2
BENEFIT EQUAL TO THA T QUINTILE’S INITIAL BENEFIT TI MES THE SUM OF THE 3
NUMBER OF ADULT RESI DENTS IN THE HOUSEHO LD AND ONE–HALF OF THE NUMBER 4
OF MINOR RESIDENTS I N THE HOUSEHOLD . 5
(3) ANY MONEY REMAINING I N THE HOUSEHOLD BENEFIT ACCOUNT 6
AFTER THE DISTRIBUTI ON OF MONEY IN ACCOR DANCE WITH PARAGRAPH (1) OF 7
THIS SUBSECTION SHAL L BE DEPOSITED IN TH E INFRASTRUCTURE FUND. 8
(4) IN PROVIDING BENEFITS F ROM FEE PROCEEDS FRO M THE 9
HOUSEHOLD BENEFIT ACCOUNT, THE SECRETARY SHALL COORD INATE WITH THE 10
COMPTROLLER , THE DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT , 11
THE DEPARTMENT OF HUMAN SERVICES, AND OTHER UNITS IN M AKING ALL 12
REASONABLE E FFORTS TO IDENTIFY T HE NAMES AND ADDRESS ES OF ALL 13
RESIDENTS, WITH SPECIAL ATTENTI ON TO THE NAMES AND ADDRESSES OF 14
LOW–INCOME RESIDENTS , SO THAT THEY CAN REC EIVE BENEFITS EXPEDI TIOUSLY. 15
(5) MONEY DISTRIBUTED FRO M THE HOUSEHOLD BENEFIT 16
ACCOUNT: 17
(I) MAY NOT BE INCLUDED I N TAXABLE INCOME FOR 18
PURPOSES OF ANY STATE OR LOCAL INCOME TAX; AND 19
(II) SHALL, TO THE EXTENT FEASIB LE, BE EXCLUDED FROM 20
HOUSEHOLD INCOME FOR PURPOSES OF DETERMIN ING ELIGIBILITY FOR , OR THE 21
LEVEL OF, ANY FORM OF PUBLIC A SSISTANCE. 22
(J) (1) MONEY IN THE EMPLOYER BENEFIT ACCOUNT SHALL BE 23
DISTRIBUTED IN ACCOR DANCE WITH THIS SUBS ECTION. 24
(2) THE SECRETARY SHALL USE T HE MONEY IN THE EMPLOYER 25
BENEFIT ACCOUNT TO PROVIDE BE NEFITS TO EMPLOYERS . 26
(3) (I) THE SECRETARY, IN CONSULTATION WIT H THE SECRETARY 27
OF COMMERCE, THE SECRETARY OF LABOR, AND THE SECRETARY OF HOUSING AND 28
COMMUNITY DEVELOPMENT , SHALL, WITH SPECIAL ATTENTI ON TO 29
MANUFACTURING AND AG RICULTURE, IDENTIFY ECONOMIC SE CTORS OR ECONOMIC 30
SUBSECTORS THAT ARE ENERGY–INTENSIVE AND TRAD E–EXPOSED. 31
(II) THE SECRETARY SHALL , AS MITIGATION, CALCULATE THE 32
TOTAL PROCEEDS COLLE CTED FROM THE SECTOR S OR SUBSECTORS IDEN TIFIED IN 33 12 HOUSE BILL 516
SUBPARAGRAPH (I) OF THIS PARAGRAPH AN D MAY APPORTION PART OR ALL OF THE 1
PROCEEDS TO THE AFFE CTED SECTOR OR SUBSE CTOR. 2
(4) MONEY REMAINING IN TH E EMPLOYER BENEFIT ACCOUNT 3
AFTER DISTRIBUTIONS UNDER PARAGRAPH (3) OF THIS SUBSECTION A RE 4
CALCULATED SHALL BE DEPOSITED IN THE INFRASTRUCTURE FUND. 5
(K) (1) THE SECRETARY SHALL CONSI DER ALTERNATIVE CALE NDAR 6
SCHEDULES FOR DISTRIBUTION OF THE BENEFITS AUTHORIZED UNDER THIS 7
SECTION, INCLUDING PARTIAL OR WHOLE DISTRIBUTIONS EARLY IN THE RELEVAN T 8
REVENUE CYCLE AND ON A REGULAR BASIS THRO UGHOUT THE REVENUE C YCLE. 9
(2) THE METHOD AND SCHEDU LE OF DISTRIBUTION O F BENEFITS 10
SHALL TAKE INTO ACCOUNT : 11
(I) THE NEEDS OF RESIDENT S AND EMPLOYERS , 12
PARTICULARLY LOW –INCOME HOUSEHOLDS , TO OBTAIN BENEFITS 13
CORRESPONDING TO THE TIME SCHEDULE WHEN T HEY WILL BE PAYING 14
GREENHOUSE GAS POLLU TION FEES; 15
(II) THE NEED TO MAKE CLEA R TO RESIDENTS AND EMPLOYERS 16
THAT THEY ARE RECEIV ING A BENEFIT OF GRE ENHOUSE GAS POLLUTIO N FEES THAT 17
IS SEPARATE FROM OTH ER TRANSACTIONS THEY MAY HAVE WITH THE STATE; AND 18
(III) THE NEED TO MINIMIZE THE ADMINISTRATIVE C OSTS OF 19
THE INITIATIVE. 20
(L) HOUSEHOLDS AND EMPL OYERS MAY OPT TO REC EIVE A PORTION OR 21
ALL OF THEIR BENEFIT S ON THEIR UTILITY B ILLS. 22
(M) THE SECRETARY MAY ISSUE A DDITIONAL BENEFITS O R DECLARE 23
EXEMPTIONS FROM FEES IN INSTANCES WHERE F EES HAVE BEEN PAID B UT NO 24
EMISSIONS HAVE OCCUR RED OR ARE ANTICIPAT ED TO OCCUR. 25
2–1221. 26
(A) THERE IS A CLIMATE CRISIS INFRASTRUCTURE FUND. 27
(B) THE PURPOSE OF THE INFRASTRUCTURE FUND IS TO INVEST IN 28
INITIATIVES THAT IMP ROVE THE HEALTH AND WELFARE OF THE CITIZ ENS OF THE 29
STATE BY: 30
(1) EXPANDING THE USE OF CLEAN ENERGY SOURCES AND ENERGY 31 HOUSE BILL 516 13
EFFICIENCY IN THE EL ECTRICITY AND OTHER ENERGY–CONSUMING SECTORS ; 1
(2) CREATING A CLEANER , MORE JUST , AND MORE EFFICIENT 2
TRANSPORTATION SECTO R THROUGHOUT THE STATE; 3
(3) PROVIDING FUNDING FOR RESILIENCY AGAINST C LIMATE 4
CHANGE AND WEA THER EVENTS THAT HAV E AN IMPACT ON THE L IVES OF THE 5
CITIZENS OF THE STATE AND ITS ECONOMY ; 6
(4) SEQUESTERING CARBON I N FORESTS, SOILS, AND WETLANDS ; AND 7
(5) PROMOTING A JUST TRAN SITION TO CLEAN ENER GY. 8
(C) (1) THE DEPARTMENT , IN CONSULTATION WITH THE COMMISSION 9
ON ENVIRONMENTAL JUSTICE AND SUSTAINABLE COMMUNITIES AND THE 10
MARYLAND COMMISSION ON CLIMATE CHANGE, SHALL ADMINISTER THE 11
INFRASTRUCTURE FUND. 12
(2) THE DEPARTMENT MAY DELEGA TE ADMINISTRATION OF ANY 13
PROGRAMS DEVELOPED U NDER THE INFRASTRUCTURE FUND TO STATE AGENCIES , 14
REGIONAL AUTHORITIES , MUNICIPAL GOVERNMENT S, AND OTHER PUBLIC 15
INSTITUTIONS. 16
(D) (1) THE INFRASTRUCTURE FUND IS A SPECIAL , NONLAPSING FUND 17
THAT IS NOT SUBJECT TO § 7–302 OF THE STATE FINANCE AND PROCUREMENT 18
ARTICLE. 19
(2) THE STATE TREASURER SHALL HOLD THE INFRASTRUCTURE 20
FUND SEPARATELY , AND THE COMPTROLLER SHALL ACC OUNT FOR THE 21
INFRASTRUCTURE FUND. 22
(E) THE INFRASTRUCTURE FUND CONSISTS OF : 23
(1) PROCEEDS OF FEES DIST RIBUTED TO THE INFRASTRUCTURE 24
FUND UNDER § 2–1219(B) OF THIS SUBTITLE; 25
(2) ANY EXCESS OF UNSPENT BENEFITS RECEIVED FR OM THE 26
BENEFIT FUND UNDER § 2–1220(I)(3) AND (J)(4) OF THIS SUBTITLE; 27
(3) MONEY APPROPRIATED IN THE STATE BUDGET TO THE 28
INFRASTRUCTURE FUND; AND 29
(4) ANY OTHER MONEY FROM ANY OTHER SOURCE ACCEPTED FOR 30 14 HOUSE BILL 516
THE BENEFIT OF THE INFRASTRUCTURE FUND. 1
(F) (1) THE INFRASTRUCTURE FUND MAY BE USED ONLY FOR: 2
(I) THE PURPOSES AUTHORIZ ED UNDER THIS SECTIO N; AND 3
(II) ADMINISTRATION OF THE INFRASTRUCTURE FUND, NOT TO 4
EXCEED 5% OF THE MONEY IN THE INFRASTRUCTURE FUND. 5
(2) WHEN FEASIBLE, INVESTMENTS UNDER TH IS SECTION SHALL BE 6
DESIGNED TO CREATE L OCAL ECONOMIC DEVELO PMENT AND EMPLOYMENT IN THE 7
STATE. 8
(G) UP TO 50% OF THE MONEY IN THE INFRASTRUCTURE FUND MAY BE 9
DISBURSED TO COUNTY AND MUNICIPAL GOV ERNMENTS FOR PROJECT S THAT MEET 10
THE REQUIREMENTS OF THIS SUBTITLE. 11
(H) (1) THE SECRETARY MAY USE UP TO 5% OF THE MONEY IN THE 12
INFRASTRUCTURE FUND TO PROVIDE TECHN ICAL ASSISTANCE , CAPACITY, AND 13
PLANNING TOOLS TO CO UNTY AND MUNICIPAL G OVERNMENTS FOR THE 14
DEVELOPMENT OF LOCAL C LIMATE PLANS AND INV ESTMENT PROPOSALS . 15
(2) IN USING THE MONEY IN THE INFRASTRUCTURE FUND UNDER 16
PARAGRAPH (1) OF THIS SUBSECTION , THE SECRETARY SHALL GIVE DUE 17
CONSIDERATION TO COU NTIES AND MUNICIPALI TIES WITH DISPROPORT IONATELY 18
AFFECTED COMMUNITIES . 19
(I) (1) AT LEAST 50% OF THE MONEY IN THE INFRASTRUCTURE FUND 20
SHALL BE INVESTED IN PROJECTS THAT ARE LO CATED WITHIN AND PRO VIDE 21
MEANINGFUL BENEFITS TO DISPROPORTIONATEL Y AFFECTED COMMUNITI ES. 22
(2) ON OR BEFORE JANUARY 1, 2025, THE SECRETARY, IN 23
CONSULTATION WITH TH E COMMISSION ON ENVIRONMENTAL JUSTICE AND 24
SUSTAINABLE COMMUNITIES SHALL : 25
(I) DEFINE “MEANINGFUL BENEFITS ” THAT A PROJECT MAY 26
PROVIDE TO A DISPROP ORTIONATELY AFFECTED COMMUNITY ; 27
(II) DEVELOP A METHOD FOR DETERMINING WHAT PORTION OF 28
A PROJECT’S EXPENDITURES ARE D IRECTLY LOCATED WITH IN, AND PROVIDE 29
DIRECT MEANINGFUL BE NEFITS TO , A DISPROPORTIONATELY AFFECTED 30
COMMUNITY ; 31
HOUSE BILL 516 15
(III) DEVELOP MEASURABLE CR ITERIA THAT A PROJEC T 1
RECEIVING FUNDING UN DER THIS SUBSECTION MUST MEET TO BE CONSIDERED 2
DIRECTLY LOCATED WIT HIN, AND PROVIDING MEANIN GFUL BENEFITS TO , A 3
DISPROPORTIONATELY A FFECTED COMMUNITY ; 4
(IV) DEVELOP ANY PROCEDURE S THE COMMISSION 5
DETERMINES ARE NECES SARY TO DEMONSTRATE LOCAL SUPPORT OF AND CONSENT 6
TO A PROJECT THAT WILL BE LOCATED WITH IN AND PROVIDE MEANI NGFUL 7
BENEFITS TO THE DISP ROPORTIONATELY AFFEC TED COMMUNITY ; AND 8
(V) ESTABLISH A PROCESS F OR RECIPIENTS OF FUN DING 9
UNDER THIS SUBSECTIO N TO REPORT THE INFO RMATION UNDER ITEMS (II) AND (III) 10
OF THIS PARAGRAPH TO THE SECRETARY. 11
(3) A RECIPIENT OF FUNDING UNDER THIS SUBSECTIO N SHALL 12
REPORT ANNUALLY TO T HE SECRETARY ON THE INFO RMATION UNDER PARAGR APH 13
(2) OF THIS SUBSECTION . 14
(J) (1) THE STATE TREASURER SHALL INVES T THE MONEY OF THE 15
INFRASTRUCTURE FUND IN THE SAM E MANNER AS OTHER STATE MONEY MAY BE 16
INVESTED. 17
(2) ANY INTEREST EARNINGS OF THE INFRASTRUCTURE FUND SHALL 18
BE CREDITED TO THE INFRASTRUCTURE FUND. 19
(K) ON OR BEFORE JANUARY 1, 2025, AND EACH YEAR THEREA FTER, THE 20
SECRETARY SHALL SUBMI T A REPORT TO THE GENERAL ASSEMBLY, IN 21
ACCORDANCE WITH § 2–1257 OF THE STATE GOVERNMENT ARTICLE, ON THE 22
STATUS OF THE INFRASTRUCTURE FUND, INCLUDING INFORMATIO N REPORTED BY 23
RECIPIENTS OF FUNDIN G UNDER SUBSECTION (I) OF THIS SECTION. 24
2–1222. 25
EACH YEAR, THE SECRETARY, IN CONSULTATION WITH THE PUBLIC SERVICE 26
COMMISSION, THE SECRETARY OF HOUSING AND COMMUNITY DEVELOPMENT , AND 27
THE SECRETARY OF HUMAN SERVICES, SHALL IDENTIFY MEASU RES AND 28
PROGRAMS BEST CALCUL ATED TO ENSURE THE P ROVISION OF LOW –INCOME 29
ENERGY ASSISTANCE AN D IMPROVEMENTS IN TH E ENERGY EFFICIENCY OF 30
RENTER–OCCUPIED DWELLINGS I N THE STATE. 31
2–1223. 32
(A) ON OR BEFORE JUNE 30, 2027, AND EVERY 2 YEARS THEREAFTER , THE 33 16 HOUSE BILL 516
SECRETARY, IN CONSULTATION WITH THE COMMISSION ON ENVIRONMENTAL 1
JUSTICE AND SUSTAINABLE COMMUNITIES , SHALL SUBMIT A REPOR T ON THE 2
IMPLEMENTATION OF TH IS PART TO THE GOVERNOR AND , IN ACCORDANCE WITH § 3
2–1257 OF THE STATE GOVERNMENT ARTICLE, THE GENERAL ASSEMBLY. 4
(B) THE REPORT SHALL INCL UDE: 5
(1) POLICIES TO MITIGATE INEQUITIES THAT COULD ARISE FROM 6
THE IMPLEMENTATION O F THE INITIATIVE; 7
(2) RECOMMENDATIONS ON AD DITIONAL EMISSIONS S OURCES TO 8
WHICH GREENHOUSE GAS POLLUTION FEES SHOUL D APPLY IN ORDER TO MEET 9
GREENHOUSE GAS EMISS IONS REDUCTION TARGE TS ESTABLISHED UNDER § 10
2–1204.1 OF THIS SUBTITLE , INCLUDING INDUSTRIAL PROCESS EMISSIONS AN D 11
EMISSIONS ASSOCIATED WITH THE GENERATION AND DISTRIBUTION OF ENERGY; 12
AND 13
(3) A STUDY ON THE FEASIBI LITY OF IMPOSING AND COLLECTING 14
ADDITIONAL GREENHOUS E GAS EMISSIONS FEES ON FUGITIVE EMISSIONS AND 15
INTENTIONAL RELEASES OF METHANE FROM NATU RAL GAS INFRASTRUCTU RE, 16
INCLUDING AN ANALYSI S OF THE FEASIBILITY AND COST OF: 17
(I) CALCULATING A REASONA BLY ACCURATE CURRENT 18
STATISTICAL BASELINE , SPECIFIC TO THE STATE, OF FUGITIVE EMISSION S AND 19
INTENTIONAL RELEASES ; AND 20
(II) DEVELOPING AND DEPLOY ING A MEANS OF CALCU LATING 21
REASONABLY ACCURATE UPDATES ON THE PROGR ESS OR LACK OF PROGR ESS IN 22
REDUCING FUGITIVE EM ISSIONS AND INTENTIO NAL RELEASES . 23
(C) THE REPORT MAY INCLUD E RECOMMENDATIONS FO R: 24
(1) INCREASES OR DECREASE S TO GREENHOUSE GAS POLLUTION 25
FEES THAT THE DEPARTMENT CONSIDERS PRUDENT TO: 26
(I) ACCOUNT FOR INFLATION ; 27
(II) ADDRESS LIFE –CYCLE EMISSIONS AND FUGITIVE 28
EMISSIONS ISSUES ; 29
(III) ENSURE PROGRESS TOWAR D REACHING EMISSIONS LIMITS 30
ESTABLISHED UNDER SUBTITLE 10 OF THIS TITLE AND GR EENHOUSE GAS 31
EMISSIONS REDUCTION TARGETS ESTABLISHED UNDER § 2–1204.1 OF THIS 32 HOUSE BILL 516 17
SUBTITLE; OR 1
(IV) MITIGATE SERIOUS HARM TO ECONOMIC SECTORS , 2
ECONOMIC SUBSECTORS , OR INDIVIDUAL ENERGY –INTENSIVE, TRADE–EXPOSED 3
EMPLOYERS IN THE STATE CAUSED BY THE C OLLECTION OF GREENHO USE GAS 4
POLLUTION FEES ; OR 5
(2) AMENDMENTS TO THE BENEFIT FUND OR INFRASTRUCTURE 6
FUND, PROVIDED THAT THE PR OPOSED AMENDMENTS : 7
(I) OFFER REASONABLE PROT ECTION FROM FINANCIA L HARM 8
FOR LOW– AND MODERATE –INCOME HOUSEHOLDS AN D ENERGY –INTENSIVE, 9
TRADE–EXPOSED EMPLOYERS ; AND 10
(II) DO NOT DIMINISH THE E FFECTIVENESS OF THE FEES, THE 11
BENEFIT FUND, OR THE INFRASTRUCTURE FUND AT REDUCING EMIS SIONS. 12
(D) IN DEVELOPING THE REP ORT AND ANY AMENDME NTS TO THE REPORT , 13
THE SECRETARY SHALL : 14
(1) HOLD PERIODIC MEETING S AT CONVENIENT LOCA TIONS AND 15
TIMES FOR PUBLIC PAR TICIPATION; AND 16
(2) PROVIDE A REASONABLE AMOUNT OF TIME AT EA CH MEETING 17
FOR COMMENTS BY THE PUBLIC. 18
(E) THE SECRETARY SHALL VERIF Y THROUGH MODELING EXE RCISES THAT 19
POLICIES AND RECOMME NDATIONS INCLUDED IN THE REPORT WILL : 20
(1) MEET THE OBJECTIVES O F THE INITIATIVE, AS ESTABLISHED 21
UNDER § 2–1216 OF THIS SUBTITLE; AND 22
(2) RESULT IN EQUITABLE O UTCOMES. 23
2–1224. 24
THE SECRETARY SHALL ADOPT REGULATIONS TO CARRY OUT THIS PART . 25
Article – State Finance and Procurement 26
6–226. 27
(a) (2) (i) Notwithstanding any other provision of law, and unless 28
inconsistent with a federal law, grant agreement, or other federal requirement or with the 29 18 HOUSE BILL 516
terms of a gift or settlement agreement, net interest on all State money allocated by the 1
State Treasurer under this section to special funds or accounts, and otherwise entitled to 2
receive interest earnings, as accounted for by the Comptroller, shall accrue to the General 3
Fund of the State. 4
(ii) The provisions of subparagraph (i) of this paragraph do not apply 5
to the following funds: 6
189. the Teacher Retention and Development Fund; [and] 7
190. the Protecting Against Hate Crimes Grant Fund; 8
191. THE CLIMATE CRISIS INFRASTRUCTURE FUND; AND 9
192. THE HOUSEHOLD AND EMPLOYER BENEFIT FUND. 10
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect July 11
1, 2024. 12