EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
[Brackets] indicate matter deleted from existing law.
Underlining indicates amendments to bill.
Strike out indicates matter stricken from the bill by amendment or deleted from the law by
amendment.
*hb0864*
HOUSE BILL 864
M5, C5 4lr0448
By: Delegates Crosby and Qi
Introduced and read first time: February 2, 2024
Assigned to: Economic Matters
Committee Report: Favorable with amendments
House action: Adopted
Read second time: March 2, 2024
CHAPTER ______
AN ACT concerning 1
Energy Efficiency and Conservation Plans 2
FOR the purpose of requiring each electric company, each gas company, and the 3
Department of Housing and Community Development to develop a certain plan for 4
achieving certain energy efficiency, conservation, and greenhouse gas emissions 5
reduction targets through certain programs and services and superseding certain 6
existing energy efficiency and conservation goals; requiring the Public Service 7
Commission to encourage and promote the efficient use and conservation of energy 8
in support of certain greenhouse gas emissions reduction goals and targets in a 9
certain manner, including by requiring municipal electric or gas utilities and small 10
rural electric cooperatives to include certain programs or services as part of their 11
service to their customers as directed by the Commission; requiring the Commission 12
to establish and determine certain greenhouse gas emissions reduction targets; 13
requiring certain contractors used for certain programs under this Act to meet 14
certain job requirements; requiring the Department of Housing and Community 15
Development to develop a plan to coordinate and leverage funding sources to support 16
certain energy efficiency and other home upgrades; requiring the Department of the 17
Environment to prepare and submit to the Commission a certain analysis; requiring 18
each electric company and each gas company to promote certain rebates, tax credits, 19
and incentives; requiring the certification agency designated by the Board of Public 20
Works and the Governor’s Office of Small, Minority, and Women Business Affairs, 21
in consultation with the Department of Housing and Community Development, the 22
Office of the Attorney General, and the General Assembly to study certain energy 23
efficiency and conservation services and submit its findings on or before a certain 24
date; requiring the Commission to establish a certain working group to study and 25 2 HOUSE BILL 864
make recommendations on extending certain program assistance to certain 1
moderate–income households; and generally relating to the efficient use and 2
conservation of energy in support of greenhouse gas emissions reduction goals and 3
targets. 4
BY repealing 5
Article – Public Utilities 6
Section 7–211 and 7–211.1 7
Annotated Code of Maryland 8
(2020 Replacement Volume and 2023 Supplement) 9
BY renumbering 10
Article – Public Utilities 11
Section 7–211.2 12
to be Section 7–315 13
Annotated Code of Maryland 14
(2020 Replacement Volume and 2023 Supplement) 15
BY adding to 16
Article – Public Utilities 17
The new part designation “Part I. In General” to immediately precede Section 7–201; 18
and Section 7–220 through 7–228 to be under the new part “Part II. Energy 19
Efficiency and Conservation Plans” 20
Annotated Code of Maryland 21
(2020 Replacement Volume and 2023 Supplement) 22
BY repealing and reenacting, with amendments, 23
Article – Corporations and Associations 24
Section 5–637(b) 25
Annotated Code of Maryland 26
(2014 Replacement Volume and 2023 Supplement) 27
BY repealing and reenacting, with amendments, 28
Article – Public Utilities 29
Section 7–510.3(j)(2) 30
Annotated Code of Maryland 31
(2020 Replacement Volume and 2023 Supplement) 32
BY repealing and reenacting, with amendments, 33
Article – State Government 34
Section 9–20B–05(f)(4) 35
Annotated Code of Maryland 36
(2021 Replacement Volume and 2023 Supplement) 37
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 38
That Section(s) 7–211 and 7–211.1 of Article – Public Utilities of the Annotated Code of 39
Maryland be repealed. 40 HOUSE BILL 864 3
SECTION 2. AND BE IT FURTHER ENACTED, That Section(s) 7 –211.2 of Article 1
– Public Utilities of the Annotated Code of Maryland be renumbered to be Section(s) 7–315. 2
SECTION 3. AND BE IT FURTHER ENACTED, That the new part designation 3
“Part I. In General” be added to immediately precede Section 7–201 of Article – Public 4
Utilities of the Annotated Code of Maryland. 5
SECTION 4. AND BE IT FURTHER ENACTED, That the Laws of Maryland read 6
as follows: 7
Article – Corporations and Associations 8
5–637. 9
(b) A member–regulated cooperative is subject to the following provisions of the 10
Public Utilities Article: 11
(1) § 5–103; 12
(2) § 5–201; 13
(3) § 5–202; 14
(4) § 5–303; 15
(5) § 5–304; 16
(6) § 5–306; 17
(7) § 7–103; 18
(8) § 7–104; 19
(9) § 7–203; 20
(10) § 7–207; 21
(11) TITLE 7, SUBTITLE 2, PART II; 22
(12) § 7–302; 23
[(12)] (13) Title 7, Subtitle 5, Part I and Part II; 24
[(13)] (14) Title 7, Subtitle 7; and 25
[(14)] (15) § 13–101. 26 4 HOUSE BILL 864
Article – Public Utilities 1
7–218. RESERVED. 2
7–219. RESERVED. 3
PART II. ENERGY EFFICIENCY AND CONSERVATION PLANS. 4
7–220. 5
(A) IN THIS PART THE FOLL OWING WORDS HAVE THE MEANINGS 6
INDICATED. 7
(B) “BEHIND–THE–METER PROGRAM ” MEANS A PROGRAM THAT IMPACTS 8
THE CUSTOMER SIDE OF THE UTILITY METER . 9
(C) “BENEFICIAL ELECTRIFIC ATION” MEANS THE REPLACEMEN T OF THE 10
DIRECT USE OF FOSSIL FUELS IN BUIL DINGS WITH THE USE OF ELECTRICITY IN A 11
MANNER THAT: 12
(1) REDUCES OVERALL LIFE TIME GREENHOUSE GAS EMISSIONS; 13
(2) REDUCES CUSTOMERS ’ ENERGY COSTS ; OR 14
(3) ENABLES BETTER MANAG EMENT OF THE ELECTRI C 15
DISTRIBUTION SYSTEM . 16
(D) “CARBON DIOXIDE EQUIVA LENT” MEANS THE MEASUREMEN T OF A 17
GIVEN WEIGHT OF A GR EENHOUSE GAS THAT HA S THE SAME GLOBA L WARMING 18
POTENTIAL, MEASURED OVER A SPEC IFIC PERIOD OF TIME , AS 1 METRIC TON OF 19
CARBON DIOXIDE . 20
(E) “DEMAND RESPONSE PROGR AM” MEANS A PROGRAM ESTA BLISHED BY 21
AN ELECTRIC COMPANY , AN ELECTRICITY SUPPL IER, OR A THIRD PARTY THA T 22
PROMOTES CHANGES IN ELECTRIC USAGE BY CUSTOMERS F ROM THEIR NORMAL 23
CONSUMPTION PATTERNS IN RESPONSE TO: 24
(1) CHANGES IN THE PRICE OF ELECTRICITY OVER TIME; OR 25
(2) INCENTIVES DESIGNED TO: 26
(I) INDUCE LOWER ELECTRI CITY USE AT TIMES OF HIGH 27
WHOLESALE MARKET PRI CES; OR 28
HOUSE BILL 864 5
(II) ENSURE SYSTEM RELIABILITY . 1
(F) “DEPARTMENT ” MEANS THE DEPARTMENT OF HOUSING AND 2
COMMUNITY DEVELOPMENT . 3
(G) “ENERGY EFFICIENCY ” MEANS THE USE OF LES S ENERGY TO PERFORM 4
THE SAME TASK OR PRO DUCE THE SAME RESULT . 5
(H) “FRONT–OF–METER COMMUNITY PROG RAM” MEANS A PROGRAM THAT : 6
(1) IS SEPARATE FROM FRO NT–OF–METER UTILITY PROGRA MS; 7
(2) IMPACTS THE UTILITY SIDE OF THE METER ; AND 8
(3) DIRECTLY BENEFITS A SET OF CUSTOMERS . 9
(I) “FRONT–OF–METER UTILITY PROGRA M” MEANS A PROGRAM THAT 10
IMPACTS THE UTILITY SIDE OF A METER AND BENEFITS ALL UTILITY CUSTOMERS . 11
(J) “GREENHOUSE GAS ” INCLUDES: 12
(1) CARBON DIOXIDE ; 13
(2) METHANE; 14
(3) NITROUS OXIDE ; 15
(4) HYDROFLUOROCARBONS ; 16
(5) PERFLUOROCARBONS ; AND 17
(6) SULFUR HEXAF LUORIDE. 18
(K) “GREENHOUSE GAS EMISSI ONS REDUCTION ” MEANS A REDUCTION IN 19
GREENHOUSE GAS EMISS IONS, MEASURED IN METRIC T ONS OF CARBON DIOXID E 20
EQUIVALENTS , INCLUDING: 21
(1) GREENHOUSE GAS EMISS IONS FROM THE GENERA TION OF 22
ELECTRICITY DELIVERE D TO AND CONSUMED IN THE STATE; AND 23
(2) LINE LOSSES FROM THE TRANSMISSION AND DIS TRIBUTION OF 24
ELECTRICITY, REGARDLESS OF WHETHE R THE ELECTRICITY IS GENERATED IN THE 25
STATE OR IMPORTED . 26
6 HOUSE BILL 864
(L) “LOW–INCOME PROGRAM ” MEANS A PROGRAM THAT DELIVERS ENERGY 1
EFFICIENCY, CONSERVATION , AND GREENHOUSE GAS E MISSIONS REDUCTION 2
MEASURES TO REDUCE U TILITY EXPENSES FOR BUILDING OWNERS , MANAGERS, AND 3
TENANTS OF HOUSING W ITH RESIDENTS WHO QU ALIFY FOR THE DEPARTMENT ’S 4
LOW–INCOME ASSISTANCE PR OGRAMS, INCLUDING: 5
(1) THE EMPOWER MARYLAND LIMITED INCOME ENERGY 6
EFFICIENCY PROGRAM; 7
(2) THE MULTIFAMILY ENERGY EFFICIENCY AND HOUSING 8
AFFORDABILITY PROGRAM; AND 9
(3) THE WEATHERIZATION ASSISTANCE PROGRAM. 10
(M) “LOW–INCOME RESIDENTIAL ” MEANS A COMMUNITY , BUILDING, OR 11
HOUSEHOLD WITH RESI DENTS THAT: 12
(1) HAVE INCOMES BELOW 250% OF THE FEDERAL POVER TY LEVEL 13
AS DETERMINED BY THE FEDERAL CENSUS ; OR 14
(2) MEET THE ELIGIBILITY CRITERIA APPROVED BY THE 15
COMMISSION FOR LOW –INCOME PROGRAMS . 16
(N) “NONENERGY PROGRAM ” MEANS A PROGRAM WITH GREENHOU SE GAS 17
EMISSIONS REDUCTION BENEFITS THAT ARE PR IMARILY 18
NONENERGY –BASED. 19
(O) “PLAN” MEANS ANY COMBINATIO N OF BEHIND–THE–METER PROGRAMS , 20
FRONT–OF–METER COMMUNITY PROG RAMS, FRONT–OF–METER UTILITY 21
PROGRAMS, OR NONENERGY PROGRAM S THAT: 22
(1) ACHIEVE GREENHO USE GAS EMISSIONS RE DUCTIONS THROUGH 23
ENERGY EFFICIENCY , CONSERVATION , DEMAND RESPONSE , AND BENEFICIAL 24
ELECTRIFICATION ; AND 25
(2) INCLUDE A COST RECOV ERY PROPOSAL . 26
(P) “TASK FORCE” MEANS THE GREEN AND HEALTHY TASK FORCE 27
ESTABLISHED UNDER § 7–315 OF THIS TITLE. 28
7–221. 29
THE GENERAL ASSEMBLY FINDS AND DE CLARES THAT ENERGY E FFICIENCY 30
IS: 31 HOUSE BILL 864 7
(1) AMONG THE LEAST EXPE NSIVE WAYS TO MEET T HE ENERGY 1
DEMANDS OF THE STATE; 2
(2) A MEANS OF AFFORDABL E, RELIABLE, AND CLEAN ENERGY FOR 3
CONSUMERS OF MARYLAND; AND 4
(3) ONE METHOD TO ACHIEV E MARYLAND’S CLIMATE COMMITMENT S 5
FOR REDUCING STATEWI DE GREENHOUSE GAS EM ISSIONS, INCLUDING THOSE 6
SPECIFIED IN REQUIRED UNDER TITLE 2, SUBTITLE 12 OF THE ENVIRONMENT 7
ARTICLE. 8
7–222. 9
(A) SUBJECT TO REVIEW AND APPROVAL BY THE COMMISSION, EACH 10
ELECTRIC COMPANY , EACH GAS COMPANY OTHER THAN A GAS COM PANY SUBJECT 11
TO § 4–207(A) OF THIS ARTICLE , AND THE DEPARTMENT SHALL DEVE LOP AND 12
IMPLEMENT PROGRAMS A ND SERVICES IN ACCOR DANCE WITH §§ 13
7–223, 7–224, AND 7–225 OF THIS SUBTITLE TO ENCOURAGE AND PROMOTE THE 14
EFFICIENT USE AND CO NSERVATION OF ENERGY , DEMAND RESPONSE , AND 15
BENEFICIAL ELECTRIFI CATION BY CONSUMERS , ELECTRIC COMPANIES , GAS 16
COMPANIES, AND THE DEPARTMENT IN SUPPORT OF THE GR EENHOUSE GAS 17
EMISSIONS REDUCTION GOALS AND TARGETS SPECIFIED IN REQUIRED UNDER 18
TITLE 2, SUBTITLE 12 OF THE ENVIRONMENT ARTICLE. 19
(B) AS DIRECTED BY THE COMMISSION, EACH GAS COMPANY SUB JECT TO § 20
4–207(A) OF THIS ARTICLE, EACH MUNICIPAL ELECT RIC OR GAS UTILITY, AND EACH 21
SMALL RURAL ELECTRIC COOPERATIVE SHALL IN CLUDE ENERGY EFFICIENCY AN D 22
CONSERVATION , DEMAND RESPONSE , AND BENEFICIAL ELECT RIFICATION 23
PROGRAMS OR SERVICES AS PART OF THEIR SER VICE TO THEIR CUSTOM ERS. 24
(C) THE COMMISSION SHALL ENCO URAGE AND PROMOTE TH E EFFICIENT 25
USE AND CONSERVATION OF ENERGY IN SUPPORT OF THE GREENHOUSE GAS 26
EMISSIONS REDUCTION GOALS AND TARGETS SPECIFIED IN REQUIRED UNDER 27
TITLE 2, SUBTITLE 12 OF THE ENVIRONMENT ARTICLE, ESTABLISHED BY THE 28
COMMISSION UNDER § 7–223(B) OF THIS SUBTITLE, AND SPECIFIED IN § 7–224(A)(2) 29
OF THIS SUBTITLE BY: 30
(1) REQUIRING EACH ELECT RIC COMPANY AND GAS COMPANY TO 31
ESTABLISH ANY PROGRA M OR SERVICE THAT TH E COMMISSION DETERMINES TO BE 32
APPROPRIATE AND COST –EFFECTIVE; 33
(2) ADOPTING RATE –MAKING POLICIES THAT PROVIDE, THROUGH A 34
SURCHARGE LINE ITEM ON CUSTOMER BILLS : 35 8 HOUSE BILL 864
(I) FULL COST RECOVERY OF REA SONABLY INCURRED COS TS 1
FOR PROGRAMS AND SER VICES ESTABLISHED UN DER ITEM (1) OF THIS SUBSECTION , 2
INCLUDING FULL RECOV ERY ON A CURRENT BAS IS ON OR BEFORE JANUARY 1, 2028; 3
(II) ON OR BEFORE DECEMBER 31, 2032, THE ELIMINATION OF 4
ANY UNPAID COSTS AND UNAMORTIZED COSTS TH AT: 5
1. A. EXISTED ON DECEMBER 31, 2024; OR 6
B. WERE INCURRED BEFORE JANUARY 1, 2028; AND 7
2. WERE ACCRUED FOR THE PURPOSE OF ACHIEVING 8
STATUTORY TARGETS FO R ANNUAL INCREMENTAL GROSS ENER GY SAVINGS; 9
(III) COMPENSATION FOR ANY UNPAID COSTS AND 10
UNAMORTIZED COSTS UN DER ITEM (II) OF THIS ITEM AT NOT MORE THAN EACH 11
ELECTRIC COMPANY ’S AND EACH GAS COMPA NY’S AVERAGE COST OF OU TSTANDING 12
DEBT; AND 13
(IV) REASONABLE FINANCIAL PERFORMANCE INCE NTIVES AND 14
PENALTIES FOR INVEST OR–OWNED ELECTRIC COMPA NIES AND GAS COMPANI ES, AS 15
APPROPRIATE ; AND 16
(3) ENSURING THAT ADOPTI ON OF ELECTRIC CUSTO MER CHOICE 17
UNDER SUBTITLE 5 OF THIS TITLE AND GA S CUSTOMER CHOICE UN DER SUBTITLE 6 18
OF THIS TITLE DOES N OT ADVERSELY IMPACT THESE GO ALS AND TARGETS . 19
7–223. 20
(A) ON OR BEFORE JANUARY 1, 2025, AND ON OR BEFORE JANUARY 1 21
EVERY 3 YEARS, STARTING IN 2027, THE COMMISSION SHALL , BY REGULATION OR 22
ORDER, REQUIRE EACH ELECTRI C COMPANY AND EACH G AS COMPANY SUBJECT TO 23
§ 7–222(A) OF THIS SUBTITLE TO DEVELOP AND IMPLE MENT A PLAN THAT : 24
(1) COVERS EACH RATEPAYE R CLASS; 25
(2) STARTING IN 2027, COVERS A 3–YEAR PROGRAM CYCLE ; AND 26
(3) ACHIEVES THE GREENHO USE GAS EMISSIONS RE DUCTION 27
TARGET ESTABLISHED F OR THE ELECTRIC COMP ANY OR GAS COMPANY UN DER 28
SUBSECTION (B) OF THIS SECTION THRO UGH COST–EFFECTIVE ENERGY EFF ICIENCY 29
AND CONSERVATION PRO GRAMS AND SERVICES , DEMAND RESPONSE PROG RAMS 30
AND SERVICES, AND BENEFICIAL ELECT RIFICATION PROGRAMS AND SERVICES. 31 HOUSE BILL 864 9
(B) (1) FOR 2025 AND 2026, AND FOR EACH 3–YEAR PROGRAM CYCLE 1
STARTING IN 2027, THE COMMISSION SHALL ESTA BLISH A GREENHOUSE G AS 2
EMISSIONS REDUCTION TARGET FOR EACH ELEC TRIC COMPANY AND EAC H GAS 3
COMPANY SUBJECT TO § 7–222(A) OF THIS SUBTITLE AS PROVIDED IN THIS 4
SUBSECTION. 5
(2) WHEN ESTABLISHING GRE ENHOUSE GAS EMISSION S REDUCTION 6
TARGETS UNDER THIS S UBSECTION, THE COMMISSION SHALL MEAS URE THE 7
GREENHOUSE GAS EMISS IONS FROM ELECTRICIT Y AND GAS, AND THE INTENSITIES 8
OF THOSE EMISSIONS , USING CURRENT DATA OBTAINED FROM PJM 9
INTERCONNECTION ON MA RGINAL GREENHOUSE GA S EMISSIONS RATES FR OM THE 10
PREVIOUS YEAR AND PROJECTIONS FROM THE DEPARTMENT OF THE 11
ENVIRONMENT . 12
(3) AS A BASELINE FOR DET ERMINING GREENHOUSE GAS EMISSIONS 13
REDUCTIONS UNDER THI S SUBSECTION , THE COMMISSION SHALL U SE THE 14
GREENHOUSE GAS EMISS IONS RESULTING FROM THE DIRECT CONSUMPTI ON OF GAS 15
AND ELECTRICITY IN MARYLAND BUILDINGS IN 2020, AS DETERMINED BY THE 16
DEPARTMENT OF THE ENVIRONMENT . 17
(4) FOR THE PERIOD 2025–2033, THE COMMISSION SHALL 18
DETERMINE AN OVERALL STATEWIDE GREENHOUSE GAS EMISSIONS REDUCTION 19
TARGET BASED ON AN A VERAGE ANNUAL REDUCT ION OF AT LEAST 1.8% OF THE 20
BASELINE DETERMINED UNDER PARAGRAPH (3) OF THIS SUBSECTION . 21
(3) THE GREENHOUSE GAS EM ISSIONS REDUCTION TA RGETS 22
ESTABLISHED UNDER TH IS SUBSECTION SHALL BE MEASURED : 23
(I) IN METRIC TONS; AND 24
(II) RELATIVE TO THE GREE NHOUSE GAS EMISSIONS 25
ASSOCIATED WITH THE ELECTRIC COMPANY ’S OR GAS COMPANY ’S 26
WEATHER–NORMALIZED GROSS RET AIL SALES AND LOSSES IN A BASELINE YEAR , AS 27
DETERMINED BY THE COMMISSION. 28
(4) BY THE DATES SPECIFIE D IN § 7–225(A) OF THIS SUBTITLE , THE 29
COMMISSION SHALL ESTA BLISH GREENHOUSE GAS EMISSIONS REDUCTION 30
TARGETS FOR EACH ELE CTRIC COMPANY PLAN T HAT WILL ACHIEVE AT LEAST THE 31
GREENHOUSE GAS EMISS IONS REDUCTION EQUIV ALENT, MEASURED ON A 32
LIFECYCLE BASIS USIN G THE EMISSION INTEN SITIES UNDER PARAGRA PH (2) OF 33
THIS SUBSECTION , OF THE FOLLOWING ANN UAL ELECTRICITY SAVI NGS 34
PERCENTAGES , CALCULATED AS A PERC ENTAGE OF THE ELECTR IC COMPANY’S 2016 35
WEATHER–NORMALIZED GROSS RET AIL SALES AND ELECTR ICITY LOSSES: 36 10 HOUSE BILL 864
(I) 2.0% IN 2024; 1
(II) 2.25% EACH YEAR IN 2025 AND 2026; AND 2
(III) 2.5% EACH YEAR IN 2027 AND AFTER. 3
(5) ON OR BEFORE JANUARY 1, 2025, AND ON OR BEFORE JANUARY 4
1 EVERY 3 YEARS, STARTING IN 2027, THE COMMISSION SHALL ESTA BLISH 5
GREENHOUSE GAS EMISSION S REDUCTION TARGETS FOR EACH GAS COMPANY PLAN 6
THAT WILL ACHIEVE AT LEAST THE GREENHOUSE GAS EMISSIONS REDUCT ION 7
EQUIVALENT, MEASURED ON A LIFECY CLE BASIS USING THE EMISSION INTENSITIES 8
UNDER PARAGRAPH (2) OF THIS SUBSECTION , OF THE GAS SAVINGS TARGETS 9
ESTABLISHED BY THE COMMISSION FOR THE 2021–2023 PROGRAM CYCLE . 10
(6) THE COMMISSION SHALL TAKE INTO CONSIDERATION T HE MOST 11
RECENT FINAL PLAN AD OPTED UNDER § 2–1205 OF THE ENVIRONMENT ARTICLE 12
WHEN ESTABLISHING TH E GREENHOUSE GAS EMI SSIONS REDUCTION TARGETS 13
UNDER THIS SUBSECTIO N. 14
(7) FOR 2025 AND 2026: 15
(I) THE COMMISSION SHALL , AFTER MAKING APPROPR IATE 16
FINDINGS, DETERMINE WHETHER EX ISTING ELECTRIC COMP ANY AND GAS COMPANY 17
PLANS MUST BE MODIFI ED TO COMPLY WITH § 7–225(D) OF THIS SUBTITLE; AND 18
(II) ELECTRIC COMPANIES A ND GAS COMPANIES : 19
1. SHALL PROVIDE INFORM ATION AS REQUIRED BY THE 20
COMMISSION TO ASSIST IN MAKING THE DETERM INATION UNDER ITEM (I) OF THIS 21
PARAGRAPH ; AND 22
2. ARE ONLY REQUIRED TO FILE NEW PLANS IN 23
ACCORDANCE WITH THIS SECTION IF DIRE CTED BY THE COMMISSION. 24
(C) THE COMMISSION MAY GIVE P RIORITY TO LONG –LIVED GREENHOUSE 25
GAS EMISSIONS REDUCT ION MEASURES IN THE PLANS BY ESTABLISHIN G A MINIMUM 26
WEIGHTED AVERAGE MEA SURE LIFE FOR THE PL AN OF EACH ELECTRIC COMPANY 27
AND GAS COMPANY. 28
(D) CONTRIBUTIONS TO GREE NHOUSE GAS EMISSIONS REDUCTION GOALS 29
AND TARGETS IN A PLA N OF AN ELECTRIC COM PANY OR A GAS COMPAN Y: 30
HOUSE BILL 864 11
(1) MAY, NOTWITHSTANDING § 7–222(C)(2) OF THIS SUBTITLE , 1
INCLUDE RECOVERY OF THE REASONABLE AND P RUDENT COSTS FROM P ROGRAMS 2
THAT ARE NOT BEHIND –THE–METER PROGRAMS IN A BASE RATE PROCE EDING, 3
SUBJECT TO COMMISSION APPROVAL ; AND 4
(2) MAY NOT INCLUDE THE INCREASED ADOPTION O F ELECTRIC 5
VEHICLES. 6
(E) BEGINNING JANUARY 1, 2025, AT LEAST 80% OF THE GREENHOUSE GA S 7
EMISSIONS REDUCTIONS COUNTED T OWARD EACH ELECTRIC COMPANY’S AND EACH 8
GAS COMPANY ’S GREENHOUSE GAS EMI SSIONS REDUCTION TAR GETS ESTABLISHED 9
UNDER THIS SECTION S HALL COME FROM BEHIN D–THE–METER PROGRAMS , WHICH 10
MAY INCLUDE DEPLOYME NT OF ENERGY STORAGE FACILITIES. 11
7–224. 12
(A) (1) BEGINNING JANUARY 1, 2025, AND ON OR BEFORE JANUARY 1 13
EVERY 3 YEARS THEREAFTER , STARTING IN 2027, THE DEPARTMENT SHALL 14
PROCURE OR PROVIDE T O LOW– AND MODERATE –INCOME LOW–INCOME 15
INDIVIDUALS ENERGY E FFICIENCY AND CONSERVATION PROGRAM S AND SERVICES, 16
DEMAND RESPONSE PROG RAMS AND SERVICES , AND BENEFICIAL ELECT RIFICATION 17
PROGRAMS AND SERVICE S THAT ACHIEVE THE GREENHOUSE GAS EMISS IONS 18
REDUCTION TARGETS ES TABLISHED FOR THE DEPARTMENT UNDER PARA GRAPH (2) 19
OF THIS SUBSECTION . 20
(2) FOR THE PERIOD 2025–2033, THE PROGRAMS AND SER VICES 21
REQUIRED UNDER PARAG RAPH (1) OF THIS SUBSECTION S HALL BE ON A 22
TRAJECTORY TO ACHIEV E GREENHOUSE GAS RED UCTIONS AFTER 2027 OF AT LEAST 23
0.9% OF THE BASELINE DETE RMINED UNDER SUBSECT ION (B) OF THIS SECTION. 24
(3) (I) WHEN ESTABLISH ING GREENHOUSE GAS E MISSIONS 25
REDUCTION TARGETS UN DER THIS SUBSECTION , THE COMMISSION SHALL MEAS URE 26
THE GREENHOUSE GAS E MISSIONS FROM ELECTR ICITY USING CURRENT DATA AND 27
PROJECTIONS FROM THE DEPARTMENT OF THE ENVIRONMENT . 28
(II) THE GREENHOUSE GAS EM ISSIONS REDUCTION TARGETS 29
ESTABLISHED UNDER TH IS SUBSECTION SHALL BE MEASURED IN METRI C TONS. 30
(3) (4) THE GREENHOUSE GAS RE DUCTIONS ACHIEVED TO MEET 31
THE TARGETS ESTABLIS HED UNDER PARAGRAPH (2) OF THIS SUBSECTION S HALL 32
COUNT TOWARD THE ACH IEVEMENT OF THE GREENHOUSE GAS REDUC TION TARGET 33
ESTABLISHED UNDER § 7–223(B) OF THIS SUBTITLE . 34
12 HOUSE BILL 864
(5) THE TARGET GREENHOUSE GAS SAVINGS SHALL BE ACHIEVED 1
BASED ON THE 3–YEAR AVERAGE OF THE DEPARTMENT ’S PLAN SUBMITTED IN 2
ACCORDANCE WITH SUBS ECTION (D) OF THIS SECTION. 3
(6) FOR 2025 AND 2026: 4
(I) THE COMMISSION SHALL , AFTER MAKING APPROPR IATE 5
FINDINGS, DETERMINE WHETHER TH E DEPARTMENT ’S EXISTING 2024–2026 PLAN 6
MUST BE MODIFIED TO COMPLY WITH : 7
1. THE TARGETS ESTABLIS HED IN THIS SUBSECTI ON; 8
AND 9
2. § 7–225(D) OF THIS SUBTITLE; AND 10
(II) THE DEPARTMENT : 11
1. SHALL PROVIDE INFORM ATION AS REQUIRED BY THE 12
COMMISSION TO ASSIST IN MAKING THE DETERM INATION IN ITEM (I) OF THIS 13
PARAGRAPH ; AND 14
2. IS ONLY REQUIRED TO FILE NEW PLANS IN 15
ACCORDANCE WITH SUBS ECTION (D) OF THIS SECTION AND § 7–225 OF THIS 16
SUBTITLE IF DIRECTED BY THE COMMISSION. 17
(B) AS A BASELINE FOR DET ERMINING GREENHOUSE GAS EMISSIONS 18
REDUCTION TARGETS UN DER THIS SECTION , THE COMMISSION SHALL USE THE 19
GREENHOUSE GAS EMISSIONS RESULTING FROM THE DIRE CT CONSUMPTION OF GA S 20
AND ELECTRICITY BY LOW– AND MODERATE –INCOME LOW–INCOME RESIDENTIAL 21
HOUSEHOLDS IN 2020 2016, AS DETERMINED BY THE DEPARTMENT OF THE 22
ENVIRONMENT . 23
(C) (1) THE DEPARTMENT MAY PROCUR E OR PROVIDE SAVINGS THAT 24
ARE ACHIEVED THROUGH FUNDING SOURCES THAT MEET TH E STANDARDS OF 25
PROGRAM FUNDING THRO UGH UTILITY RATES OR THE U.S. DEPARTMENT OF 26
ENERGY. 27
(2) THE DEPARTMENT MAY USE TH E SAVINGS ACHIEVED T HROUGH 28
ALL FUNDING SOURCES TOWARD CALCULATING T HE TARGETED GREENHOU SE GAS 29
REDUCTIONS IF THE FU NDING SOURCES MEET THE STANDARDS OF PROGRAM S 30
FUNDED THROUGH : 31
(I) A SURCHARGE UNDER § 7–222 OF THIS SUBTITLE; OR 32
HOUSE BILL 864 13
(II) THE U.S. DEPARTMENT OF ENERGY. 1
(D) ON OR BEFORE SEPTEMBER 1 IF DIRECTED BY THE COMMISSION IN 2
2024, AND ON OR BEFORE SEPTEMBER 1 EVERY 3 YEARS, BEGINNING STARTING IN 3
2024 2026, THE DEPARTMENT SHALL SUBM IT ITS PLANS FOR ANY PROGRAMS OR 4
SERVICES PROCURED OR PROVIDED UNDER SUBSE CTION (A) OF THIS SECTION TO 5
THE COMMISSION FOR REVIEW AND APPROVAL UNDER § 7–225 OF THIS SUBTITLE. 6
(E) FOR WEATHERIZATION OF LE ASED OR RENTED RESID ENCES, THE 7
DEPARTMENT SHALL ADOP T REGULATIONS TO ENS URE THAT: 8
(1) THE BENEFITS OF WEAT HERIZATION ASSISTANC E, INCLUDING 9
UTILITY BILL REDUCTI ON AND PRESERVATION OF AFFORDABLE HOUSIN G STOCK, 10
ACCRUE PRIMARILY TO LOW–INCOME TENANTS OCCUP YING A LEASED OR REN TED 11
RESIDENCE; AND 12
(2) THE RENT ON THE RESI DENCE IS NOT INCREAS ED AND THE 13
TENANT IS NOT EVICTE D AS A RESULT OF WEA THERIZATION PROVIDED UNDER THIS 14
SECTION. 15
(F) THE PROGRAMS AND SERV ICES PROVIDED UNDER SUBSECTION (A) OF 16
THIS SECTION MAY NOT USE THERMAL INSULATI NG MATERIALS FOR BUI LDING 17
ELEMENTS, INCLUDING WALLS , FLOORS, CEILINGS, ATTICS, AND ROOF INSULATION , 18
THAT CONTAIN FORMALD EHYDE IF THE FORMALD EHYDE: 19
(1) WAS INTENTIONALLY AD DED; OR 20
(2) IS PRESENT IN THE PRODUCT AT GREATE R THAN 0.1% BY WEIGHT. 21
(G) THE DEPARTMENT ’S APPROVED CONTRACTO RS USED FOR THE 22
PROGRAMS UNDER THIS SECTION SHALL MEET T HE FOLLOWING JOB 23
REQUIREMENTS : 24
(1) PAY AT LEAST 150% OF THE STATE MINIMUM WAGE ; 25
(2) PROVIDE CAREER ADVAN CEMENT TRAINING; 26
(3) AFFORD EMPLOYEES THE RIGHT TO BARGAIN COL LECTIVELY FOR 27
WAGES AND BENEFITS ; 28
(4) PROVIDE PAID LEAVE ; 29
14 HOUSE BILL 864
(5) BE CONSIDERED COVERE D EMPLOYMENT FOR PUR POSES OF 1
UNEMPLOYMENT INSURAN CE BENEFITS IN ACCOR DANCE WITH TITLE 8 OF THE 2
LABOR AND EMPLOYMENT ARTICLE; 3
(6) ENTITLE THE EMPLOYEE TO WORKERS’ COMPENSATION BENEFIT S 4
IN ACCORDANCE WITH TITLE 9 OF THE LABOR AND EMPLOYMENT ARTICLE; 5
(7) BE COMPLIANT WITH FE DERAL AND STATE WAGE AND HOUR L AWS 6
FOR THE PREVIOUS 3 YEARS; 7
(8) OFFER EMPLOYER–PROVIDED HEALTH INSU RANCE BENEFITS 8
WITH MONTHLY PREMIUM S THAT DO NOT EXCEED 8.5% OF THE EMPLOYEE ’S NET 9
MONTHLY EARNINGS ; AND 10
(9) OFFER RETIREMENT BEN EFITS. 11
(H) (1) THE DEPARTMENT SHALL DEVE LOP A PLAN TO COORDI NATE 12
FUNDING SOURCES AND LEVERAGE THE GREATEST FUNDING POSSIBLE TO SUPPORT 13
A WHOLE HOME APPROAC H BY ADDRESSING : 14
(I) HEALTH AND SAFETY UP GRADES; 15
(II) WEATHERIZATION ; 16
(III) ENERGY EFFICIENCY ; AND 17
(IV) OTHER GENERAL MAINTE NANCE FOR LOW –INCOME 18
HOUSING. 19
(2) THE PLAN SHALL COORDINATE FUNDING A MONG: 20
(I) THE STRATEGIC ENERGY INVESTMENT FUND; 21
(II) FEDERAL WEATHERIZATI ON ASSISTANCE PROGRA MS; 22
(III) RATEPAYER CONTRIBUTI ONS TO: 23
1. THE EMPOWER MARYLAND LIMITED INCOME 24
ENERGY EFFICIENCY PROGRAM; AND 25
2. THE MULTIFAMILY ENERGY EFFICIENCY AND 26
HOUSING AFFORDABILITY PROGRAM; 27
(IV) THE MARYLAND AFFORDABLE HOUSING TRUST FUND; 28
HOUSE BILL 864 15
(V) U.S. DEPARTMENT OF HOUSING AND URBAN 1
DEVELOPMENT PROGRAMS , INCLUDING: 2
1. COMMUNITY DEVELOPMENT BLOCK GRANTS; 3
2. THE HOME INVESTMENT PARTNERSHIP GRANTS 4
PROGRAM; AND 5
3. LEAD HAZARD CONTROL AND HEALTHY HOMES 6
GRANTS; 7
(VI) U.S. DEPARTMENT OF AGRICULTURE PROGRAMS , 8
INCLUDING THE HOME REPAIR PROGRAM; 9
(VII) THE HEALTHY HOMES FOR HEALTHY KIDS PROGRAM; 10
(VIII) THE ENERGY EFFICIENCY AND CONSERVATION BLOCK 11
GRANT PROGRAM ; 12
(IX) STATE APPROPRIATIONS ; 13
(X) FUNDS FROM THE FEDER AL INFLATION REDUCTION ACT OF 14
2022; AND 15
(XI) ANY OTHER SOURCE OF FUNDING THAT THE DEPARTMENT 16
OR THE TASK FORCE IDENTIFIES . 17
(3) THE DEPARTMENT SHALL ENSURE , FOR ANY WHOLE HOME 18
RETROFITS ASSOCIATED WITH WEATHERIZATION PROVIDED OR DEVELOPE D UNDER 19
THE PLAN, THAT: 20
(I) THERE IS A SINGLE PO INT OF CONTACT FOR LOW– AND 21
MODERATE–INCOME LOW–INCOME RESIDENTIAL HOUSEHOL DS; AND 22
(II) SERVICES ARE OFFERED IN ANY LANGUAGE NEED ED BY THE 23
LOW– AND MODERATE –INCOME LOW–INCOME RESIDENTIAL HOUSEHOL DS. 24
(4) THE DEPARTMENT SHALL COLL ABORATE WITH THE MEM BERS OF 25
THE TASK FORCE AND IDENTIFY OT HER INTERESTED PARTI ES TO DEVELOP THE 26
PLAN. 27
(5) ON OR BEFORE DECEMBER 31, 2024, THE DEPARTMENT SHALL 28
SUBMIT THE PLAN TO T HE GOVERNOR AND , IN ACCORDANCE WITH § 2–1257 OF THE 29
STATE GOVERNMENT ARTICLE, THE GENERAL ASSEMBLY. 30 16 HOUSE BILL 864
(I) THE DEPARTMENT , THE MARYLAND ENERGY ADMINISTRATION , AND 1
OTHER STATE UNITS SHALL APPLY FOR ALL FEDERA L FUNDING THAT MAY B ECOME 2
AVAILABLE TO CARRY O UT THIS SECTION. 3
(J) (1) THE DEPARTMENT SHALL COLL ABORATE WITH THE MEM BERS OF 4
THE TASK FORCE TO DEVELOP A PL AN, INCLUDING A BUDGET , A TIMELINE, AND 5
POTENTIAL FUNDING SO URCES, TO PROVIDE EN ERGY EFFICIENCY RETR OFITS TO 6
ALL LOW–INCOME HOUSEHOLDS BY 2032. 7
(2) ON OR BEFORE DECEMBER 1, 2024, THE DEPARTMENT , IN 8
COLLABORATION WITH T HE TASK FORCE, SHALL SUBMIT THE PLA N TO THE 9
GENERAL ASSEMBLY, IN ACCORDANCE WITH § 2–1257 OF THE STATE GOVERNMENT 10
ARTICLE. 11
7–225. 12
(A) AS SOON AS POSSIBLE I N 2024, AND AT LEAST 8 MONTHS BEFORE THE 13
FILING DEADLINE FOR PLANS AFTER 2024, THE COMMISSION SHALL ISSU E AN 14
ORDER THAT FULLY ALLOCATES AMON G ELECTRIC COMPANIES , GAS COMPANIES , 15
AND THE DEPARTMENT THE TOTAL AMOUNT OF THE OVERALL STATE WIDE 16
DETERMINES THE GREENHOUSE GAS EMISS IONS REDUCTION TARGET DETERMINED 17
TARGETS REQUIRED UNDER § 7–223(B) OF THIS SUBTITLE AND THE GREENHOUSE 18
GAS EMISSIONS REDUCT IONS SPECIFIED IN REQUIRED UNDER § 7–224(A)(2) OF THIS 19
SUBTITLE. 20
(B) (1) (I) ON OR BEFORE JULY 1 IF DIRECTED BY THE COMMISSION 21
IN 2024, AND ON OR BEFORE JULY 1 EVERY 3 YEARS, BEGINNING STARTING IN 2024 22
2026, EACH ELECTRIC COMPAN Y AND EACH GAS COMPA NY SUBJECT TO § 7–222(A) 23
OF THIS SUBTITLE THAT SUBMITTED A PLA N FOR ACHIEVING ELECTRICITY SAVINGS 24
AND DEMAND REDUCTION TARGETS TO THE COMMISSION BEFORE JULY 1, 2024, 25
AND THE DEPARTMENT , SHALL CONSULT WITH T HE TECHNICAL STAFF O F THE 26
COMMISSION, THE OFFICE OF PEOPLE’S COUNSEL, THE MARYLAND ENERGY 27
ADMINISTRATION , AND THE DEPARTMENT OF THE ENVIRONMENT REGARDING THE 28
DESIGN AND ADEQUACY OF ITS PLANS FOR ACH IEVING THE GREENHOUS E GAS 29
EMISSIONS REDUCTION TARGETS ESTABLISHED BY THE COMMISSION UNDER § 30
7–223(A) § 7–223(B) OF THIS SUBTITLE AND SPECIFIED IN § 7–224(A)(2) OF THIS 31
SUBTITLE. 32
(II) ON OR BEFORE OCTOBER 1, 2024, AND ON OR BEFORE JULY 33
1 EVERY 3 YEARS, BEGINNING STARTING IN 2027 2026, EACH ELECTRIC COMPAN Y 34
AND EACH GAS COMPANY SUBJECT TO § 7–222(A) OF THIS SUBTITLE THAT DID NOT 35
SUBMIT A PLAN FOR AC HIEVING ELECTRICITY SAVINGS AND DEMA ND REDUCTION 36 HOUSE BILL 864 17
TARGETS TO THE COMMISSION BEFORE JULY 1, 2024, SHALL COMPLY WITH TH E 1
CONSULTING REQUIREME NTS UNDER SUBPARAGRA PH (I) OF THIS PARAGRAPH . 2
(2) EACH ELECTRIC COMPANY , AND EACH GAS COMPANY , AND THE 3
DEPARTMENT SUBJECT TO § 7–222(A) OF THIS SUBTITLE SHALL PROVIDE THE 4
TECHNICAL STAFF OF T HE COMMISSION, THE OFFICE OF PEOPLE’S COUNSEL, THE 5
MARYLAND ENERGY ADMINISTRATION , AND THE DEPARTMENT OF THE 6
ENVIRONMENT WITH ANY ADDITIONAL INFORMATI ON REGARDING ITS PLA N, AS 7
REQUESTED . 8
(C) (1) (I) ON OR BE FORE SEPTEMBER 1 IF DIRECTED BY THE 9
COMMISSION IN 2024, AND ON OR BEFORE SEPTEMBER 1 EVERY 3 YEARS, 10
BEGINNING STARTING IN 2024 2026, EACH ELECTRIC COMPAN Y AND EACH GAS 11
COMPANY SUBJECT TO § 7–222(A) OF THIS SUBTITLE THAT SUBMITTED A PLA N FOR 12
ACHIEVING ELECT RICITY SAVINGS AND D EMAND REDUCTION TARG ETS TO THE 13
COMMISSION BEFORE JULY 1, 2024, AND THE DEPARTMENT , SHALL SUBMIT ITS 14
PLAN TO THE COMMISSION. 15
(II) ON OR BEFORE DECEMBER 1, 2024, AND ON OR BEFORE 16
SEPTEMBER 1 EVERY 3 YEARS, BEGINNING STARTING IN 2027 2026, EACH ELECTRIC 17
COMPANY AND EACH GAS COMPANY THAT DID NOT SUBMIT A PLAN FOR AC HIEVING 18
ELECTRICITY SAVINGS AND DEMAND R EDUCTION TARGETS TO THE COMMISSION 19
BEFORE JULY 1, 2024, SHALL SUBMIT ITS PLA N TO THE COMMISSION. 20
(2) EACH PLAN SHALL DETAI L A PROPOSAL FOR ACHIEVI NG 21
GREENHOUSE GAS EMISS IONS REDUCTION TARGE TS FOR 3 SUBSEQUENT CALENDAR 22
YEARS. 23
(3) (I) EACH PLAN SHALL : 24
1. INCLUDE: 25
A. A DESCRIPTION OF THE PROPOSED PROGRAMS AN D 26
SERVICES; 27
B. ANTICIPATED COSTS ; 28
C. PROJECTED BENEFI TS, INCLUDING GREENHOUSE 29
GAS EMISSIONS REDUCT IONS, ELECTRICITY SAVINGS , AND GAS SAVINGS ; AND 30
D. ANY OTHER INFORMATIO N REQUESTED BY THE 31
COMMISSION; AND 32
18 HOUSE BILL 864
2. ADDRESS RESIDENTIAL , COMMERCIAL , AND 1
INDUSTRIAL SECTORS A S APPROPRIATE , INCLUDING LOW –INCOME COMMUNITIES 2
AND LOW– TO MODERATE –INCOME COMMUNITIES . 3
(II) A PLAN OF THE DEPARTMENT SHALL INCL UDE: 4
1. A DEFINITION OF “LOW– OR MODERATE –INCOME 5
LOW–INCOME INDIVIDUAL” TO BE USED IN THE PR OCUREMENT OR PROVISI ON OF 6
ENERGY EFFICIENCY , CONSERVATION , AND GREENHOUSE GAS E MISSIONS 7
REDUCTION PROGRAMS A ND SERVICES; 8
2. A DESCRIPTION OF THE STEPS PROPOSED TO EN SURE 9
INSULATION MATERIALS MEET THE REQUIREMENT S UNDER § 7–224 OF THIS 10
SUBTITLE; AND 11
3. A PROPOSED AVERAGE L IFETIME MEASURE 12
THRESHOLD THAT : 13
A. ENCOURAGES THE DELIV ERY OF INSULATION AN D 14
WEATHERIZATION MEASU RES; AND 15
B. IS DEVELOPED THROUGH A STAKEHOLDER 16
ENGAGEMENT PROCESS . 17
(III) A PLAN OF AN ELECTRIC COMPANY SHALL INCLUD E THE 18
PROVISION OR PROCURE MENT OF PROGRAMS AND SERVICES FOR RESIDENTIAL 19
BENEFICIAL ELECTRIFI CATION. 20
(D) (1) THE COMMISSION SHALL REVI EW THE PLAN OF EACH ELECTRIC 21
COMPANY, EACH GAS COMPANY , AND THE DEPARTMENT TO DETERMI NE WHETHER 22
THE PLAN IS ADEQUATE AND COST–EFFECTIVE IN ACHIEVI NG THE GREENHOUSE 23
GAS EMISSIONS REDUCT ION TARGETS ESTABLIS HED BY THE COMMISSION UNDER § 24
7–223(B) OF THIS SUBTITLE AND SPECIFIED IN § 7–224(A)(2) §§ 7–223(B) AND 25
7–224(A)(2) OF THIS SUBTITLE. 26
(2) THE COMMISSION SHALL CONS IDER ANY WRITTEN FIN DINGS 27
PROVIDED BY THE MARYLAND ENERGY ADMINISTRATION , THE DEPARTMENT OF 28
THE ENVIRONMENT , AND THE OFFICE OF PEOPLE’S COUNSEL REGARDING THE 29
DESIGN AND ADEQUACY OF THE PLAN. 30
(3) SUBJECT TO PARAGRAPH (4) OF THIS SUBSECTION , IN 31
APPROVING, MODIFYING, OR DENYING THE PLAN OF AN ELECTRIC COMPA NY OR A 32
GAS COMPANY , THE COMMISSION SHALL CONS IDER: 33
HOUSE BILL 864 19
(I) THE C OST–EFFECTIVENESS OF THE RESIDENTIAL, 1
COMMERCIAL , AND INDUSTRIAL SECTO R SUBPORTFOLIOS BY U SING: 2
1. THE PRIMARY STATE JURISDICTION –SPECIFIC TEST, 3
AS DEVELOPED , UPDATED, OR APPROVED BY THE COMMISSION, TO DETERMINE THE 4
COST–EFFECTIVENESS OF A P ROGRAM OR SERVICE PROSPECTIVEL Y, INCLUDING 5
CONSIDERATION OF : 6
A. PARTICIPANT NONENERG Y BENEFITS; 7
B. UTILITY NONENERGY BE NEFITS; AND 8
C. SOCIETAL NONENERGY B ENEFITS; AND 9
2. A TOTAL RESOURCE COS T TEST TO COMPARE TH E 10
ELECTRICITY SAVINGS AND DEMAND RED UCTION TARGETS OF TH E PROGRAM OR 11
SERVICE WITH THE RES ULTS OF SIMILAR PROG RAMS OR SERVICES IMP LEMENTED 12
IN OTHER JURISDICTIO NS, INCLUDING: 13
A. PARTICIPANT NONENERG Y BENEFITS; AND 14
B. UTILITY NONENERGY BE NEFITS; 15
(II) THE IMPACT ON RATES OF EACH RATEPAYER CLASS ; 16
(III) THE IMPACT ON JOBS ; 17
(IV) THE IMPACT ON THE EN VIRONMENT; AND 18
(V) THE IMPACT ON THE GR EENHOUSE GAS EMISSIO NS 19
REDUCTION TARGETS SP ECIFIED IN TITLE 2, SUBTITLE 12 OF THE ENVIRONMENT 20
ARTICLE, ESTABLISHED BY THE COMMISSION UNDER § 7–223(B) OF THIS SUBTITLE, 21
AND SPECIFIED IN § 7–224(A)(2) §§ 7–223(B) AND 7–224(A)(2) OF THIS SUBTITLE. 22
(4) NONENERGY BENEFITS CO NSIDERED UNDER PARAG RAPH (3) OF 23
THIS SUBSECTION SHAL L BE QUANTIFIABLE AN D DIRECTLY RELATED T O A 24
PROGRAM OR SERVICE . 25
(5) (I) IN APPROVING, MODIFYING, OR DENYING THE PLAN OF THE 26
DEPARTMENT , THE COMMISSION SHALL CONS IDER: 27
1. SUBJECT TO SUBPARAGR APH (II) OF THIS 28
PARAGRAPH , THE COST–EFFECTIVENESS OF THE PLAN BY USING THE PR IMARY 29 20 HOUSE BILL 864
STATE JURISDICTION –SPECIFIC TEST, AS DEVELOPED , UPDATED, OR APPROVED BY 1
THE COMMISSION; 2
2. THE IMPACT ON RATES OF EACH RATEPAYER CL ASS; 3
3. THE IMPACT ON JOBS ; 4
4. THE IMPACT ON THE EN VIRONMENT; AND 5
5. THE IMPACT ON THE GR EENHOUSE GAS EMISSIO NS 6
TARGETS SPECIFIED IN TITLE 2, SUBTITLE 12 OF THE ENVIRONMENT ARTICLE, 7
ESTABLISHED BY THE COMMISSION UNDER § 7–223(B) OF THIS SUBTITLE , AND 8
SPECIFIED IN § 7–224(A)(2) OF THIS SUBTITLE. 9
(II) THE PROGRAMS AND SERV ICES OFFERED BY THE 10
DEPARTMENT ARE NOT RE QUIRED TO BE COST –EFFECTIVE. 11
(E) THE DEPARTMENT OF THE ENVIRONMENT SHALL PRE PARE AND 12
SUBMIT TO THE COMMISSION AN ANALYSI S REGARDING T HE ADEQUACY OF THE 13
PLAN IN SUPPORTING T HE STATE’S GREENHOUSE GAS EMI SSIONS REDUCTION 14
GOALS SPECIFIED IN TITLE 2, SUBTITLE 12 OF THE ENVIRONMENT ARTICLE, 15
ESTABLISHED BY THE COMMISSION UNDER § 7–223(B) OF THIS SUBTITLE , AND 16
SPECIFIED IN REQUIRED UNDER § 7–224(A)(2) OF THIS SUBTITLE. 17
7–226. 18
(A) (1) EACH ELECTRIC COMPANY , EACH GAS COMPANY , AND THE 19
DEPARTMENT SHALL PROV IDE TO THE COMMISSION EVERY 6 MONTHS AN UPDATE 20
ON PLAN IMPLEMENTATI ON AND PROGRESS MADE TOWARD ACHIEVING THE 21
GREENHOUSE GAS EMISS IONS REDUCTION TARGE TS ESTABLISHED BY TH E 22
COMMISSION UNDE R § 7–223(B) OF THIS SUBTITLE AND SPECIFIED IN REQUIRED 23
UNDER § 7–224(A)(2) OF THIS SUBTITLE. 24
(2) THE COMMISSION SHALL MONI TOR AND ANALYZE THE IMPACT OF 25
EACH PROGRAM AND SER VICE TO ENSURE THAT THE OUTCOME OF EACH PROGRAM 26
AND SERVICE PROVIDES THE BEST POSSIBLE RESULTS . 27
(3) IN MONITORING AND ANA LYZING THE IMPACT OF A PROGRAM OR 28
SERVICE UNDER PARAGR APH (2) OF THIS SUBSECTION , IF THE COMMISSION FINDS 29
THAT THE OUTCOME OF THE PROGRAM OR SERVI CE MAY NOT BE PROVID ING THE 30
BEST POSSIBLE RESULT S, THE COMMISSION SHALL DIRECT THE ELE CTRIC 31
COMPANY, THE GAS COMPANY , OR THE DEPARTMENT TO INCLUDE IN ITS NEXT 32
UPDATE UNDER PARAGRA PH (1) OF THIS SUBSECTION S PECIFIC MEASURES TO 33
ADDRESS THE FINDINGS . 34 HOUSE BILL 864 21
(B) (1) AT LEAST ONCE EACH YE AR, EACH ELECTRIC COMPAN Y AND EACH 1
GAS COMPANY SHALL NOTIFY AFF ECTED CUSTOMERS OF T HE ENERGY EFFICIENCY 2
AND CONSERVATION AND GREENHOUSE GAS REDUC TION CHARGES IMPOSED AND 3
BENEFITS CONFERRED . 4
(2) THE NOTICE SHALL BE P ROVIDED BY PUBLICATI ON ON THE 5
COMPANY’S WEBSITE AND INCLUS ION WITH BILLING INF ORMATION SUCH AS A BILL 6
INSERT OR BILL MESSA GE. 7
(C) ON OR BEFORE MAY 1 EACH YEAR, THE COMMISSION SHALL REPO RT, 8
IN ACCORDANCE WITH § 2–1257 OF THE STATE GOVERNMENT ARTICLE, TO THE 9
GENERAL ASSEMBLY ON: 10
(1) THE STATUS OF PROGRA MS AND SERVICES APPR OVED UNDER 11
THIS SUBTITLE, INCLUDING AN EVALUAT ION OF THE IMPACT OF THE PROGRAMS 12
AND SERVICES THAT AR E DIRECTED TO LOW –INCOME COMMUNITIES , LOW– TO 13
MODERATE–INCOME COMMUNITIES T O THE EXTENT POSSIBL E, AND OTHER 14
PARTICULAR CLASSES O F RATEPAYERS ; 15
(2) A RECOMMENDATION FOR THE APPROPRIATE FUNDING LEVEL TO 16
ADEQUATELY FUND THES E PROGRAMS AND SERVI CES; 17
(3) THE PER CAPITA ELECT RICITY CONSUMPTION A ND THE WINTER 18
AND SUMMER PEAK DEMA ND FOR THE PREVIOUS CALENDAR YEAR ; AND 19
(4) BEGINNING IN 2026, PROGRESS MADE TOWARD REDUCING 20
GREENHOUSE GAS EMISS IONS IN ACCORDANCE W ITH §§ 7–223 AND 7–224 OF THIS 21
SUBTITLE. 22
7–227. 23
(A) NOTWITHSTANDING ANY O THER LAW, THE COMMISSION MAY NOT 24
REQUIRE OR ALLOW AN ELECTRIC COMPANY OR A GAS COMPANY TO REQ UIRE A 25
CUSTOMER TO AUTHORIZ E THE ELECTRIC CO MPANY OR GAS COMPANY TO CONTROL 26
THE AMOUNT OF THE CU STOMER’S ELECTRICITY USAGE OR GAS USAGE. 27
(B) A CUSTOMER MAY PROVIDE CONSENT TO PARTICIPA TE IN A PROGRAM 28
OF AN ELECTRIC COMPA NY OR A GAS COMPANY THAT PROVIDES DIRECT LOAD 29
CONTROL OR OTHER UTI LITY MANIPUL ATION OF A CUSTOMER ’S ELECTRICITY OR 30
GAS USAGE. 31
7–228. 32
22 HOUSE BILL 864
(A) EACH ELECTRIC COMPANY AND EACH GAS COMPANY SHALL PROMOTE 1
THE AVAILABILITY OF FEDERAL AND STATE REBATES , TAX CREDITS , AND 2
INCENTIVES THAT CAN BE USED TO SUPPORT E NERGY EFFICIENCY INV ESTMENTS, 3
ENERGY EFFICIENT AND NON–FOSSIL–FUEL–POWERED APPLIANCES A ND COOKING 4
EQUIPMENT, BREAKER BOX UPGRADES , AND PORTABLE HEATING AND COOLING 5
EQUIPMENT. 6
(B) THE COMMISSION SHALL ADOP T REGULATIONS TO CAR RY OUT THIS 7
SECTION. 8
7–510.3. 9
(j) (2) A community choice aggregator, in consultation with all 10
investor–owned electric companies whose service territories include all or part of the county 11
and the Department of Housing and Community Development, may promote energy 12
efficiency programs that are: 13
(i) offered by the investor–owned electric companies; or 14
(ii) filed by the investor–owned electric companies with the 15
Commission for its approval in accordance with [§ 7–211] SUBTITLE 2, PART II of this 16
title. 17
Article – State Government 18
9–20B–05. 19
(f) The Administration shall use the Fund: 20
(4) to provide rate relief by offsetting electricity rates of residential 21
customers, including an offset of surcharges imposed on ratepayers under [§ 7–211] TITLE 22
7, SUBTITLE 2, PART II of the Public Utilities Article; 23
SECTION 5. AND BE IT FURTHER ENACTED, That: 24
(a) The certification agency designated by the Board of Public Works under § 25
14–303(b) of the State Finance and Procurement Article and the Governor’s Office of Small, 26
Minority, and Women Business Affairs, in consultation with the Department of Housing 27
and Community Development, the Office of the Attorney General, and the General 28
Assembly, shall initiate a study regarding the energy efficiency and conservation services 29
used by the Department of Housing and Community Development to evaluate whether the 30
enactment of remedial measures to assist minority and women–owned businesses in the 31
energy efficiency and conservation services industry and market would comply with the 32
U.S. Supreme Court decision in City of Richmond v. J. A. Croson Co., 488 U.S. 469 (1989), 33
and any subsequent federal or constitutional requirements. 34
HOUSE BILL 864 23
(b) The certification agency and the Governor’s Office of Small, Minority, and 1
Women Business Affairs shall submit the findings of the study required under subsection 2
(a) of this section to the Legislative Policy Committee, in accordance with § 2–1257 of the 3
State Government Article, on or before December 31, 2026, so that the General Assembly 4
may review the findings before the 2027 legislative session. 5
SECTION 6. AND BE IT FURTHER ENACTED, That: 6
(a) The Public Service Commission shall establish a working group on the 7
EmPOWER Maryland Program and moderate –income households. 8
(b) The purpose of the working group is to study and make recommendations to 9
the Public Service Commission and the General Assembly on coordination of activities and 10
benefits under the EmPOWER Maryland Program between utility companies subject to 11
this Act and the Department of Housing and Community Development so that 12
moderate–income households may obtain the most efficient and cost–effective assistance 13
under the Program. 14
(c) The study and recommendations shall include: 15
(1) development of a practical definition of “moderate–income” for use in 16
assessing the scope of available activities, potentially beneficial extensions of activities, and 17
associated costs under the EmPOWER Maryland Program; 18
(2) an assessment of existing utility–based activities funded by the 19
Program and available to moderate–income households; 20
(3) proposals for extending utility–based activities and coordinating those 21
activities with corresponding activities of the Department of Housing and Community 22
Development with respect to low–income households under the Program; 23
(4) an assessment of benefits and costs associated with extending and 24
expanding activities under item (3) of this subsection; 25
(5) identification of areas of potential overlap between utility–based and 26
Department–based activities that may be harmonized to avoid duplicating efforts and 27
promote more efficient means to provide assistance to moderate–income households; and 28
(6) identification and development of regulatory and legislative changes 29
needed to implement recommended coordination, extension, and expansion of Program 30
activities to benefit moderate–income households. 31
(d) On or before July 1, 2025, the Commission shall report to the Governor and, 32
in accordance with § 2–1257 of the State Government Article, the General Assembly on the 33
results of the working group study and recommendations. 34
24 HOUSE BILL 864
SECTION 6. 7. AND BE IT FURTHER ENACTED, That the publisher of the 1
Annotated Code of Maryland, in consultation with and subject to the approval of the 2
Department of Legislative Services, shall correct, with no further action required by the 3
General Assembly, cross–references and terminology rendered incorrect by this Act. The 4
publisher shall adequately describe any correction that is made in an editor’s note following 5
the section affected. 6
SECTION 7. 8. AND BE IT FURTHER ENACTED, That this Act shall take effect 7
July 1, 2024. 8
Approved:
________________________________________________________________________________
Governor.
________________________________________________________________________________
Speaker of the House of Delegates.
________________________________________________________________________________
President of the Senate.