EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW. [Brackets] indicate matter deleted from existing law. *hb0842* HOUSE BILL 842 M3, C8 4lr0465 By: Delegates Taveras, Holmes, and Kaufman Introduced and read first time: January 31, 2024 Assigned to: Appropriations and Environment and Transportation A BILL ENTITLED AN ACT concerning 1 Environmental Justice – Investment in Infrastructure Construction Projects 2 FOR the purpose of requiring a State agency, in administering certain federal funds, to 3 allocate a certain percentage of those funds to certain infrastructure construction 4 projects in overburdened communities, underserved communities, communities of 5 color, and communities with a high percentage of low– to moderate–income 6 households in the State; requiring a State agency, in coordination with the Justice40 7 Committee established under this Act, to identify overburdened communities, 8 underserved communities, communities of color, and communities with a high 9 percentage of low– to moderate–income households in the State and conduct 10 listening sessions in certain areas of the State for certain purposes; restricting, under 11 certain conditions, the allocation or use of certain federal funds for an infrastructure 12 construction project that will cost in excess of a certain amount; and generally 13 relating to the investment in infrastructure construction projects in overburdened 14 communities, underserved communities, communities of color, and communities 15 with a high percentage of low– to moderate–income households. 16 BY repealing and reenacting, without amendments, 17 Article – Environment 18 Section 1–701(a)(1), (4), (5), (7), and (8) 19 Annotated Code of Maryland 20 (2013 Replacement Volume and 2023 Supplement) 21 BY adding to 22 Article – Environment 23 Section 1–703 24 Annotated Code of Maryland 25 (2013 Replacement Volume and 2023 Supplement) 26 SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 27 That the Laws of Maryland read as follows: 28 2 HOUSE BILL 842 Article – Environment 1 1–701. 2 (a) (1) In this section the following words have the meanings indicated. 3 (4) “Community listening session” means a public convening to gather 4 information and input from community members. 5 (5) “Environmental justice” means equal protection from environmental 6 and public health hazards for all people regardless of race, income, culture, and social 7 status. 8 (7) “Overburdened community” means any census tract for which three or 9 more of the following environmental health indicators are above the 75th percentile 10 statewide: 11 (i) Particulate matter (PM) 2.5; 12 (ii) Ozone; 13 (iii) National Air Toxics Assessment (NATA) diesel PM; 14 (iv) NATA cancer risk; 15 (v) NATA respiratory hazard index; 16 (vi) Traffic proximity; 17 (vii) Lead paint indicator; 18 (viii) National Priorities List Superfund site proximity; 19 (ix) Risk Management Plan facility proximity; 20 (x) Hazardous waste proximity; 21 (xi) Wastewater discharge indicator; 22 (xii) Proximity to a Concentrated Animal Feeding Operation (CAFO); 23 (xiii) Percent of the population lacking broadband coverage; 24 (xiv) Asthma emergency room discharges; 25 (xv) Myocardial infarction discharges; 26 HOUSE BILL 842 3 (xvi) Low–birth–weight infants; 1 (xvii) Proximity to emitting power plants; 2 (xviii) Proximity to a Toxic Release Inventory (TRI) facility; 3 (xix) Proximity to a brownfields site; 4 (xx) Proximity to mining operations; and 5 (xxi) Proximity to a hazardous waste landfill. 6 (8) “Underserved community” means any census tract in which, according 7 to the most recent U.S. Census Bureau Survey: 8 (i) At least 25% of the residents qualify as low–income; 9 (ii) At least 50% of the residents identify as nonwhite; or 10 (iii) At least 15% of the residents have limited English proficiency. 11 1–703. 12 (A) (1) IN THIS SECTION THE FOLLOWING WORDS HAVE THE MEANINGS 13 INDICATED. 14 (2) “COMMITTEE” MEANS THE JUSTICE40 COMMITTEE ESTABLISHED 15 UNDER SUBSECTION (F) OF THIS SECTION. 16 (3) “COMMUNITY LISTENING S ESSION” HAS THE MEANING STAT ED IN 17 § 1–701 OF THIS SUBTITLE . 18 (4) “COVERED PROGRAM ” MEANS A FEDERAL PROGRAM, AS 19 OUTLINED IN THE INTERIM IMPLEMENTATION GUIDANCE FOR THE JUSTICE40 20 INITIATIVE RELEASED BY THE FEDERAL OFFICE OF MANAGEMENT AND BUDGET, 21 THAT MAKES INVESTMEN TS IN ONE OR MORE OF TH E FOLLOWING AREAS : 22 (I) AFFORDABLE AND SUSTAI NABLE HOUSING ; 23 (II) CLIMATE CHANGE ; 24 (III) CLEAN ENERGY AND ENERGY EFFICIENC Y; 25 (IV) CLEAN TRANSPORTATION ; 26 4 HOUSE BILL 842 (V) CLEAN WATER AND WASTE WATER INFRASTRUCTURE ; 1 (VI) REMEDIATION AND REDUC TION OF LEGACY POLLUTION; OR 2 (VII) TRAINING AND WORKFORC E DEVELOPMENT RELATE D TO: 3 1. AFFORDABLE AND SUSTAI NABLE HOUSING ; 4 2. CLEAN ENERGY ; 5 3. CLEAN TRANSPORTATION ; 6 4. CLEAN WATER AND WASTE WATER INFRASTRUCTURE ; 7 5. CLIMATE CHANGE ; 8 6. THE ENVIRONMENT ; 9 7. NATURAL DISASTERS ; OR 10 8. REMEDIATION AND REDUC TION OF LEGACY 11 POLLUTION. 12 (5) “ENVIRONMENTAL JUSTICE ” HAS THE MEANING STAT ED IN § 13 1–701 OF THIS SUBTITLE . 14 (6) “FEDERAL ACT” MEANS THE INFRASTRUCTURE INVESTMENT 15 AND JOBS ACT OF 2021. 16 (7) “FEDERAL FUNDS” MEANS: 17 (I) MONEY RECEIVED BY A STATE AGENCY UNDER THE 18 FEDERAL ACT FOR ANY PROGRAM ; AND 19 (II) ANY OTHER FEDERAL MONEY RECEIVED BY A STATE 20 AGENCY FOR A COVERED PROGRAM . 21 (8) “INFRASTRUCTURE CONSTRUCTION PROJECT ” MEANS THE 22 CONSTRUCTION , RECONSTRUCTION , REHABILITATION , MODERNIZATION , 23 ALTERATION, REPAIR, OR IMPROVEMENT OF BUILDINGS, STRUCTURES , OR 24 PROPERTY WITHIN THE FOLLOWING SECTOR S SPECIFIED IN THE FEDERAL ACT: 25 HOUSE BILL 842 5 (I) TRANSPORTATION ; 1 (II) WATER; 2 (III) ENERGY; 3 (IV) BROADBAND; AND 4 (V) NATURAL RESOURCES . 5 (9) “LOW– TO MODERATE –INCOME HOUSEHOLD ” MEANS A 6 HOUSEHOLD LOCATED IN A CENSUS TRACT WITH AN AVERAGE MEDIAN IN COME AT 7 OR BELOW 80% OF THE AVERAGE MEDIA N INCOME FOR THE STATE. 8 (10) “OVERBURDENED COMMUNITY ” HAS THE MEANING STAT ED IN § 9 1–701 OF THIS SUBTITLE . 10 (11) “PROJECT LABOR AGREEME NT” MEANS PRE–HIRE COLLECTIVE 11 BARGAINING AGREEMENT S NEGOTIATED BETWEEN CONSTRUCTION UNIONS AND 12 CONSTRUCTION CONTRAC TORS THAT ESTABLISH THE TERMS AND CONDIT IONS OF 13 EMPLOYMENT FOR CONST RUCTION PROJECTS . 14 (12) “STATE AGENCY ” MEANS ANY AGENCY , BOARD, COMMISSION, 15 DEPARTMENT , OR POLITICAL SUBDIVI SION OF THE STATE. 16 (13) “UNDERSERVED COMMUNITY ” HAS THE MEANING STAT ED IN § 17 1–701 OF THIS SUBTITLE . 18 (B) IT IS THE INTENT OF THE GENERAL ASSEMBLY THAT EACH STATE 19 AGENCY RECEIVING FED ERAL FUNDS SHALL , TO THE EXTENT PRACTI CABLE AND 20 NOT IN CONFLICT WITH FEDERAL LAW OR FUNDI NG GUIDELINES , ENSURE THAT ANY 21 FEDERAL FUNDS ADMINI STERED BY THAT STATE AGENCY AVOID SU BSTANTIAL 22 BURDENS T O OVERBURDENED COMMU NITIES, UNDERSERVED COMMUNIT IES, 23 COMMUNITIES OF COLOR , AND COMMUNITIES WITH A HIGH PERCENTAGE OF 24 LOW– TO MODERATE –INCOME HOUSEHOLDS , INCLUDING: 25 (1) PHYSICAL OR ECONOMIC DISPLACEMENT OF HOUS EHOLDS AND 26 SMALL BUSINESSES ; 27 (2) INCREASED EXPOSURE TO TOXI NS; AND 28 (3) OTHER SUBSTANTIAL ECO NOMIC, ENVIRONMENTAL , OR PUBLIC 29 HEALTH BURDENS . 30 6 HOUSE BILL 842 (C) IN ADMINISTERING FEDERAL FUNDS, EACH STATE AGENCY SHALL , TO 1 THE EXTENT PRACTICABLE AND NOT IN CONFLICT WITH FEDERAL LAW AND 2 FUNDING GUIDELINES , ALLOCATE A MINIMUM O F: 3 (1) 40% OF THOSE FUNDS TO INFRASTRUCTURE CONST RUCTION 4 PROJECTS IN OVERBURDENED AND UNDERSERVED COMMUNITIES IN THE STATE; 5 AND 6 (2) AN ADDITIONAL 40% OF THOSE FUNDS TO INFRASTRUCTURE 7 CONSTRUCTION PROJECT S IN COMMUNITIES OF COLOR AND COMMUNITIES WITH A 8 HIGH PERCENTAGE OF LOW– TO MODERATE –INCOME HOUSEHOLDS IN THE STATE. 9 (D) (1) TO ACHIEVE THE INVEST MENT REQUIRED UNDER THIS SECTION, 10 A STATE AGENCY SHALL, IN COORDINATION WITH THE COMMITTEE: 11 (I) IDENTIFY OVERBURDENED COMMUNI TIES, UNDERSERVED 12 COMMUNITIES , COMMUNITIES OF COLOR , AND COMMUNITIES WITH A HIGH 13 PERCENTAGE OF LOW – TO MODERATE –INCOME HOUSEHOLDS IN THE STATE; AND 14 (II) CONDUCT COMMUNITY LIS TENING SESSIONS IN D IFFERENT 15 AREAS OF THE STATE, INCLUDING URBAN AND RURAL AREAS , TO SOLICIT INPUT 16 FROM OVERBURDENED COMMUNI TIES, UNDERSERVED COMMUNIT IES, 17 COMMUNITIES OF COLOR , AND COMMUNITIES WITH A HIGH PERCENTAGE OF 18 LOW– TO MODERATE –INCOME HOUSEHOLDS . 19 (2) AFTER THE COMMUNITY LISTENING SESSIONS UNDER 20 PARAGRAPH (1) OF THIS SUBSECTION ARE COMPLETED , A STATE AGENCY SHALL 21 WORK WITH THE COMMITTEE TO IDENTIFY AND PROVIDE ASSISTANCE TO 22 INFRASTRUCTURE CONST RUCTION PROJECTS IN OVERBURDENED COMMUNITIES , 23 UNDERSERVED COMMUNIT IES, COMMUNITIES OF COLOR , AND COMMUNITIES WITH 24 A HIGH PERCENTAGE OF LOW– TO MODERATE –INCOME HOUSEHOLDS . 25 (3) INFRASTRUCTURE CONSTR UCTION PROJECTS IDENTIFIED 26 UNDER PARAGRAPH (2) OF THIS SUBSECTION S HALL BE PRIORITIZED BASED ON 27 WHETHER THE INFRASTR UCTURE CONSTRUCTION PROJECT: 28 (I) ADVANCES ENVIRONMENTAL JUSTIC E; 29 (II) INCORPORATES LABOR AN D WORKFORCE STANDARD S, 30 INCLUDING: 31 1. PROJECT LABOR AGREEME NTS; 32 HOUSE BILL 842 7 2. TARGETED HIRE PROVISI ONS FOR WORKERS 1 RESIDING IN OVERBURD ENED AND UNDERSERVED COMMUNITIES ; OR 2 3. WAGE STANDARDS ; 3 (III) PROMOTES APPRENTICESH IP PROGRAMS; 4 (IV) PROMOTES THE ADAPTATI ON OF INFRASTRUCTURE TO 5 CLIMATE CHANGE ; OR 6 (V) REDUCES GREENHOUSE GAS EMISSIONS . 7 (4) TO THE EXTENT AUTHORIZED BY FEDERAL LAW , FEDERAL FUNDS 8 MAY BE ALLOCATED OR USED TO SUPPORT A N INFRASTRUCTURE CONSTRUCTION 9 PROJECT THAT WILL CO ST IN EXCESS OF $5,000,000 ONLY IF THE CONSTRUC TION 10 WORK WILL BE PERFORM ED IN ACCORDANCE WITH A PROJECT LABOR AGRE EMENT 11 THAT INCLUDES PROVIS IONS TO ENCOURAGE AP PRENTICESHIP TRAININ G AND THE 12 HIRING OF WORKERS WH O RESIDE IN OVERBURD ENED AND UNDERSERVED 13 COMMUNITIES . 14 (E) (1) ON OR BEFORE DECEMBER 1, 2024, AND EACH DECEMBER 1 15 THEREAFTE R, EACH STATE AGENCY ADMINISTERING FEDERAL FUNDS SHALL 16 SUBMIT A REPORT TO T HE GENERAL ASSEMBLY, IN ACCORDANCE WITH § 2–1257 OF 17 THE STATE GOVERNMENT ARTICLE, ON: 18 (I) HOW, IN COORDINATION WITH THE COMMITTEE, A STATE 19 AGENCY IDENTIFIED OVERBURDENED COMMUNITIES , UNDERSERVED 20 COMMUNITIES , COMMUNITIES OF COLOR , AND COMMUNITIES WITH A HIGH 21 PERCENTAGE OF LOW – TO MODERATE –INCOME HOUSEHOLDS IN THE STATE; 22 (II) HOW, IN COORDINATION WITH THE COMMITTEE, A STATE 23 AGENCY IDENTIFIED AND PROVI DED ASSISTANCE TO INFRASTRUCTURE 24 CONSTRUCTION PROJECT S IN OVERBURDENED CO MMUNITIES, UNDERSERVED 25 COMMUNITIES , COMMUNITIES OF COLOR , AND COMMUNITIES WITH A HIGH 26 PERCENTAGE OF LOW – TO MODERATE –INCOME HOUSEHOLDS IN THE STATE; 27 (III) THE ENTITIES OR INFRA STRUCTURE CONSTRUCTI ON 28 PROJECTS THAT RECEIV ED ASSISTANCE; AND 29 (IV) THE SPENDING OF FUNDS FOR INFRASTRUCTURE 30 CONSTRUCTION PROJECT S THAT BENEFITED OVERBURDENED COMMUNI TIES, 31 UNDERSERVED COMMUNIT IES, COMMUNITIES OF COLOR , AND COMMUNITIES WITH 32 8 HOUSE BILL 842 A HIGH PERCENTAGE OF LOW– TO MODERATE–INCOME HOUSEHOLDS TO ACHIEVE 1 THE INVESTMENT REQUI RED UNDER THIS SECTI ON DURING THE PRIOR FIS CAL 2 YEAR. 3 (2) EACH STATE AGENCY REQUIRED TO SUBMIT A REPORT UNDER 4 PARAGRAPH (1) OF THIS SUBSECTION SHALL MAKE THE REPORT AVAILABLE ON ITS 5 WEBSITE IMMEDIATELY AFTER SUBMISSION TO THE GENERAL ASSEMBLY. 6 (F) (1) THERE IS A JUSTICE40 COMMITTEE. 7 (2) THE COMMITTEE SHALL: 8 (I) IDENTIFY INFRASTRUCTU RE DEFICIENCIES IN 9 OVERBURDENED COMMUNI TIES, UNDERSERVED COMMUNIT IES, COMMUNITIES OF 10 COLOR, AND COMMUNITIES WITH A HIGH PERCENTAGE OF LOW– TO 11 MODERATE–INCOME HOUSEHOLDS IN THE STATE; 12 (II) RECOMMEND INFRASTRUCTURE CONST RUCTION 13 PROJECTS UNDER ANY C OVERED PROGRAM FOR F EDERAL FUNDING ; AND 14 (III) RECOMMEND GUIDELINES FOR HOW A STATE AGENC Y CAN 15 USE FEDERAL FUNDS TO PROVIDE ASSISTANCE F OR INFRASTRUCTURE 16 CONSTRUCTION PROJECT S IN OVERBURDENED COMM UNITIES, UNDERSERVED 17 COMMUNITIES , COMMUNITIES OF COLOR , AND COMMUNITIES WITH A HIGH 18 PERCENTAGE OF LOW – TO MODERATE –INCOME HOUSEHOLDS TO ACHIEVE BETTER 19 CLIMATE, LABOR, AND EQUITY OUTCOMES . 20 (3) THE COMMITTEE CONSIST S OF THE FOLLOWING MEMBER S: 21 (I) THE SECRETARY O F THE ENVIRONMENT , OR THE 22 SECRETARY’S DESIGNEE; AND 23 (II) THE FOLLOWING MEMBERS APPOINTED BY THE 24 SECRETARY: 25 1. A REPRESENTATIVE FROM AN ORGANIZATION THAT 26 WORKS ON ENVIRONMENT AL ISSUES AFFECTING OVERBURDENED COMMUNI TIES, 27 UNDERSERVED COMMUNIT IES, COMMUNITIES OF COLOR , AND COMMUNITIES WITH 28 A HIGH PERCENTAGE OF LOW– TO MODERATE –INCOME HOUSEHOLDS IN THE STATE; 29 2. A REPRESENTATIVE FROM AN ORGANIZATION THAT 30 WORKS ON TRANSPORTAT ION EQUITY IN THE STATE; 31 HOUSE BILL 842 9 3. A REPRESENTATIVE OF AN ENVIRONMENTAL JUSTIC E 1 ORGANIZATION IN THE STATE; 2 4. A REPRESENTATIVE OF AN EQUITY OR RACIAL 3 JUSTICE ORGANIZATION THAT WO RKS WITH OVERBURDENED COMMUNITIES , 4 UNDERSERVED COMMUNIT IES, COMMUNITIES OF COLOR , AND COMMUNITIES WITH 5 A HIGH PERCENTAGE OF LOW– TO MODERATE –INCOME HOUSEHOLDS IN THE STATE; 6 5. A REPRESENTATIVE OF A PUBLIC SECTOR LABOR 7 UNION IN THE STATE; AND 8 6. A REPRESENTATIVE FROM A LABOR UNION THAT 9 REPRESENTS BUILDING AND CONSTRUCTION TRA DES IN THE STATE. 10 (4) THE SECRETARY SHALL DESIGNATE THE CHAIR OF THE 11 COMMITTEE. 12 (5) THE DEPARTMENT SHALL PROVIDE STAFF FOR THE COMMITTEE. 13 (6) A MEMBER OF THE COMMITTEE: 14 (I) MAY NOT RECEIVE COMPE NSATION AS A MEMBER OF THE 15 COMMITTEE; BUT 16 (II) IS ENTITLED TO REIMBU RSEMENT FOR EXPENSES UNDER 17 THE STANDARD STATE TRAVEL REGULATIONS, AS PROVIDED IN THE STATE 18 BUDGET. 19 (7) A STATE AGENCY ADMINIST ERING FEDERAL FUNDS SHALL 20 COORDINATE WITH THE COMMITTEE TO ASSIST COMMUNITIE S IN APPLYING FOR , 21 AND ACCESSING , FEDERAL FUNDS FOR IN FRASTRUCTURE CONSTRUCTION 22 PROJECTS. 23 (8) ON OR BEFORE DECEMBER 31, 2024, AND EACH DECEMBER 31 24 THEREAFTER , THE COMMITTEE SHALL SUBMIT A REPOR T TO THE GENERAL 25 ASSEMBLY, IN ACCORDANCE WITH § 2–1257 OF THE STATE GOVERNMENT ARTICLE, 26 THAT: 27 (I) LISTS ANY RECOMMENDATION S THE COMMITTEE HAS 28 DEVELOPED IN IDENTIFYING AND P ROVIDING ASSISTANCE TO INFRASTRUCTURE 29 CONSTRUCTION PROJECT S IN OVERBURDENED COMMUNI TIES, UNDERSERVED 30 COMMUNITIES , COMMUNITIES OF COLOR , AND COMMUNITIES WITH A HIGH 31 PERCENTAGE OF LOW – TO MODERATE –INCOME HOUSEHOLDS IN THE STATE; 32 10 HOUSE BILL 842 (II) EVALUATES THE SPENDING OF FUND S FOR 1 INFRASTRUCTURE CONST RUCTION PROJECTS THA T BENEFITED OVERBURDENE D 2 COMMUNITIES , UNDERSERVED COMMUNIT IES, COMMUNITIES OF COLOR , AND 3 COMMUNITIES WITH A H IGH PERCENTAGE OF LO W– TO MODERATE –INCOME 4 HOUSEHOLDS DURING TH E PRIOR FISCAL YEAR ; AND 5 (III) EVALUATES THE SUCCESS OF STATE AGENCIES IN MEETING 6 THE INVESTMENT REQUI RED UNDER THIS SECTI ON DURING THE PRIOR FISCAL 7 YEAR. 8 SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect July 9 1, 2024. 10