EXPLANATION: CAPITALS INDICATE MATTER ADDE D TO EXISTING 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.
Italics indicate opposite chamber/conference committee amendments.
*hb0864*
HOUSE BILL 864
M5, C5 (4lr0448)
ENROLLED BILL
— Economic Matters/Education, Energy, and the Environment —
Introduced by Delegates Crosby and Qi
Read and Examined by Proofreaders:
_______________________________________________
Proofreader.
_______________________________________________
Proofreader.
Sealed with the Great Seal and presented to the Governor, for his approval this
_______ day of _______________ at ________________________ o’clock, ________M.
______________________________________________
Speaker.
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 certain electric cooperatives to include certain programs or services as part of 11
their service to their customers as directed by the Commission; requiring the 12
Commission to require certain electric companies and certain gas companies to 13
include a certain disclosure on customer bills; requiring the Commission to establish 14
and determine certain greenhouse gas emissions reduction targets; requiring certain 15 2 HOUSE BILL 864
contractors used for certain programs under this Act to meet certain job 1
requirements; requiring the Department of Housing and Community Development 2
to develop a plan to coordinate and leverage funding sources to support certain 3
energy efficiency and other home upgrades; requiring the Department of the 4
Environment to prepare and submit to the Commission a certain analysis; requiring 5
each electric company and each gas company to promote certain rebates, tax credits, 6
and incentives; requiring the certification agency designated by the Board of Public 7
Works and the Governor’s Office of Small, Minority, and Women Business Affairs, 8
in consultation with the Department of Housing and Community Development, the 9
Office of the Attorney General, and the General Assembly to study certain energy 10
efficiency and conservation services and submit its findings on or before a certain 11
date; requiring the Commission to establish a certain working group to study and 12
make recommendations on extending certain program assistance to certain 13
moderate–income households; and generally relating to the efficient use and 14
conservation of energy in support of greenhouse gas emissions reduction goals and 15
targets. 16
BY repealing 17
Article – Public Utilities 18
Section 7–211 and 7–211.1 19
Annotated Code of Maryland 20
(2020 Replacement Volume and 2023 Supplement) 21
BY renumbering 22
Article – Public Utilities 23
Section 7–211.2 24
to be Section 7–315 25
Annotated Code of Maryland 26
(2020 Replacement Volume and 2023 Supplement) 27
BY adding to 28
Article – Public Utilities 29
The new part designation “Part I. In General” to immediately precede Section 7–201; 30
and Section 7–220 through 7–228 to be under the new part “Part II. Energy 31
Efficiency and Conservation Plans” 32
Annotated Code of Maryland 33
(2020 Replacement Volume and 2023 Supplement) 34
BY repealing and reenacting, with amendments, 35
Article – Corporations and Associations 36
Section 5–637(b) 37
Annotated Code of Maryland 38
(2014 Replacement Volume and 2023 Supplement) 39
BY repealing and reenacting, with amendments, 40
Article – Public Utilities 41
Section 7–510.3(j)(2) 42 HOUSE BILL 864 3
Annotated Code of Maryland 1
(2020 Replacement Volume and 2023 Supplement) 2
BY repealing and reenacting, with amendments, 3
Article – State Government 4
Section 9–20B–05(f)(4) 5
Annotated Code of Maryland 6
(2021 Replacement Volume and 2023 Supplement) 7
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 8
That Section(s) 7–211 and 7–211.1 of Article – Public Utilities of the Annotated Code of 9
Maryland be repealed. 10
SECTION 2. AND BE IT FURTHER ENACTED, That Section(s) 7 –211.2 of Article 11
– Public Utilities of the Annotated Code of Maryland be renumbered to be Section(s) 7–315. 12
SECTION 3. AND BE IT FURTHER ENACTED, That the new part designation 13
“Part I. In General” be added to immediately precede Section 7–201 of Article – Public 14
Utilities of the Annotated Code of Maryland. 15
SECTION 4. AND BE IT FURTHER ENACTED, That the Laws of Maryland read 16
as follows: 17
Article – Corporations and Associations 18
5–637. 19
(b) A member–regulated cooperative is subject to the following provisions of the 20
Public Utilities Article: 21
(1) § 5–103; 22
(2) § 5–201; 23
(3) § 5–202; 24
(4) § 5–303; 25
(5) § 5–304; 26
(6) § 5–306; 27
(7) § 7–103; 28
(8) § 7–104; 29
(9) § 7–203; 30 4 HOUSE BILL 864
(10) § 7–207; 1
(11) TITLE 7, SUBTITLE 2, PART II; 2
(12) § 7–302; 3
[(12)] (13) Title 7, Subtitle 5, Part I and Part II; 4
[(13)] (14) Title 7, Subtitle 7; and 5
[(14)] (15) § 13–101. 6
Article – Public Utilities 7
7–218. RESERVED. 8
7–219. RESERVED. 9
PART II. ENERGY EFFICIENCY AND CONSERVATION PLANS. 10
7–220. 11
(A) IN THIS PART THE FOLL OWING WORDS HAVE THE MEANINGS 12
INDICATED. 13
(B) “BEHIND–THE–METER PROGRAM ” MEANS A PROGRAM THAT IMPACTS 14
THE CUSTOMER SIDE OF THE UTILITY METER . 15
(C) “BENEFICIAL ELECTRIFIC ATION” MEANS THE REPLACEMEN T OF THE 16
DIRECT USE OF FOSSIL FUELS IN BUIL DINGS WITH THE USE OF ELECTRICITY IN A 17
MANNER THAT: 18
(1) REDUCES OVERALL LIFE TIME GREENHOUSE GAS EMISSIONS; 19
(2) REDUCES CUSTOMERS ’ ENERGY COSTS ; OR 20
(3) ENABLES BETTER MANAG EMENT OF THE ELECTRI C 21
DISTRIBUTION SYSTEM . 22
(D) “CARBON DIOXIDE EQUIVA LENT” MEANS THE MEASUREMEN T OF A 23
GIVEN WEIGHT OF A GR EENHOUSE GAS THAT HA S THE SAME GLOBA L WARMING 24
POTENTIAL, MEASURED OVER A SPEC IFIC PERIOD OF TIME , AS 1 METRIC TON OF 25
CARBON DIOXIDE . 26
HOUSE BILL 864 5
(E) “DEMAND RESPONSE PROGR AM” MEANS A PROGRAM ESTA BLISHED BY 1
AN ELECTRIC COMPANY , AN ELECTRICITY SUPPL IER, OR A THIRD PARTY THA T 2
PROMOTES CHANGES IN ELECTRIC USAGE BY CUSTOMERS F ROM THEIR NORMAL 3
CONSUMPTION PATTERNS IN RESPONSE TO: 4
(1) CHANGES IN THE PRICE OF ELECTRICITY OVER TIME; OR 5
(2) INCENTIVES DESIGNED TO: 6
(I) INDUCE LOWER ELECTRI CITY USE AT TIMES OF HIGH 7
WHOLESALE MARKET PRI CES; OR 8
(II) ENSURE SYSTEM RELIABILITY . 9
(F) “DEPARTMENT ” MEANS THE DEPARTMENT OF HOUSING AND 10
COMMUNITY DEVELOPMENT . 11
(G) “ENERGY EFFICIENCY ” MEANS THE USE OF LES S ENERGY TO PERFORM 12
THE SAME TASK OR PRO DUCE THE SAME RESULT . 13
(H) “FRONT–OF–METER COMMUNITY PROG RAM” MEANS A PROGRAM THAT : 14
(1) IS SEPARATE FROM FRO NT–OF–METER UTILITY PROGRA MS; 15
(2) IMPACTS THE UTILITY SIDE OF THE METER ; AND 16
(3) DIRECTLY BENEFITS A SET OF CUSTOMERS . 17
(I) “FRONT–OF–METER UTILITY PROGRA M” MEANS A PROGRAM THAT 18
IMPACTS THE UTILITY SIDE OF A METER AND BENEFITS ALL UTILITY CUSTOMERS . 19
(J) “GREENHOUSE GAS ” INCLUDES: 20
(1) CARBON DIOXIDE ; 21
(2) METHANE; 22
(3) NITROUS OXIDE ; 23
(4) HYDROFLUOROCARBONS ; 24
(5) PERFLUOROCARBONS ; AND 25
(6) SULFUR HEXAF LUORIDE. 26
6 HOUSE BILL 864
(K) “GREENHOUSE GAS EMISSI ONS REDUCTION ” MEANS A REDUCTION IN 1
GREENHOUSE GAS EMISS IONS, MEASURED IN METRIC T ONS OF CARBON DIOXID E 2
EQUIVALENTS , INCLUDING: 3
(1) GREENHOUSE GAS EMISS IONS FROM THE GENERA TION OF 4
ELECTRICITY DELIVERE D TO AND CONSUMED IN THE STATE; AND 5
(2) LINE LOSSES FROM THE TRANSMISSION AND DIS TRIBUTION OF 6
ELECTRICITY, REGARDLESS OF WHETHE R THE ELECTRICITY IS GENERATED IN THE 7
STATE OR IMPORTED . 8
(L) “LOW–INCOME PROGRAM ” MEANS A PROGRAM THAT DELIVERS ENERGY 9
EFFICIENCY, CONSERVATION , AND GREENHOUSE GAS E MISSIONS REDUCTION 10
MEASURES TO REDUCE U TILITY EXPENSES FOR BUILDING OWNERS , MANAGERS, AND 11
TENANTS OF HOUSING W ITH RESIDENTS WHO QU ALIFY FOR THE DEPARTMENT ’S 12
LOW–INCOME ASSISTANCE PR OGRAMS, INCLUDING: 13
(1) THE EMPOWER MARYLAND LIMITED INCOME ENERGY 14
EFFICIENCY PROGRAM; 15
(2) THE MULTIFAMILY ENERGY EFFICIENCY AND HOUSING 16
AFFORDABILITY PROGRAM; AND 17
(3) THE WEATHERIZATION ASSISTANCE PROGRAM. 18
(M) “LOW–INCOME RESIDENTIAL ” MEANS A COMMUNITY , BUILDING, OR 19
HOUSEHOLD WITH RESI DENTS THAT: 20
(1) HAVE INCOMES BELOW 250% OF THE FEDERAL POVER TY LEVEL 21
AS DETERMINED BY THE FEDERAL CENSUS ; OR 22
(2) MEET THE ELIGIBILITY CRITERIA APPROVED BY THE 23
COMMISSION FOR LOW –INCOME PROGRAMS . 24
(N) “MIDSIZE ELECTRIC COOP ERATIVE” MEANS AN ELECTRIC 25
COOPERATIVE , INCLUDING A MEMBER –REGULATED COOPERATIV E, THAT: 26
(1) SERVES FEWER THAN 75,000 CUSTOMERS IN ITS DIS TRIBUTION 27
TERRITORY; BUT 28
(2) IS NOT A SMALL RURAL ELECTRIC COOPERATIVE . 29
HOUSE BILL 864 7
(N) (O) “NONENERGY PROGRAM ” MEANS A PROGRAM WITH GREENHOUSE 1
GAS EMISSIONS REDUCT ION BENEFITS THAT AR E PRIMARILY 2
NONENERGY –BASED. 3
(O) (P) “PLAN” MEANS ANY COMBINATIO N OF BEHIND –THE–METER 4
PROGRAMS, FRONT–OF–METER COMMUNITY PROG RAMS, FRONT–OF–METER 5
UTILITY PROGRAMS, OR NONENERGY PROGRAM S THAT: 6
(1) ACHIEVE GREENHOUSE G AS EMISSIONS REDUCTI ONS THROUGH 7
ENERGY EFFICIENCY , CONSERVATION , DEMAND RESPONSE , AND BENEFICIAL 8
ELECTRIFICATION ; AND 9
(2) INCLUDE A COST RECOV ERY PROPOSAL . 10
(P) (Q) “TASK FORCE” MEANS THE GREEN AND HEALTHY TASK FORCE 11
ESTABLISHED UNDER § 7–315 OF THIS TITLE. 12
7–221. 13
THE GENERAL ASSEMBLY FINDS AND DE CLARES THAT ENERGY E FFICIENCY 14
IS: 15
(1) AMONG THE LEAST EXPE NSIVE WAYS TO MEET T HE ENERGY 16
DEMANDS OF THE STATE; 17
(2) A MEANS OF AFFORDABL E, RELIABLE, AND CLEAN ENERGY FOR 18
CONSUMERS OF MARYLAND; AND 19
(3) ONE METHOD TO ACHIEV E MARYLAND’S CLIMATE COMMITMENT S 20
FOR REDUCING STATEWI DE GREENHOUSE GAS EM ISSIONS, INCLUDING THOSE 21
SPECIFIED IN REQUIRED UNDER TITLE 2, SUBTITLE 12 OF THE ENVIRONMENT 22
ARTICLE. 23
7–222. 24
(A) SUBJECT TO REVIEW AND APPROVAL BY THE COMMISSION, EACH 25
ELECTRIC COMPANY , EACH GAS COMPANY OTHER THAN A GAS COM PANY SUBJECT 26
TO § 4–207(A) OF THIS ARTICLE , AND THE DEPARTMENT , AND, IF REQUIRED IN 27
ACCORDANCE WITH SUBS ECTION (C) OF THIS SECT ION, EACH MIDSIZE ELECTRI C 28
COOPERATIVE SHALL DEVELOP AND IM PLEMENT PROGRAMS AND SERVICES IN 29
ACCORDANCE WITH §§ 7–223, 7–224, AND 7–225 OF THIS SUBTITLE TO ENCOURAGE 30
AND PROMOTE THE EFFI CIENT USE AND CONSER VATION OF ENERGY , DEMAND 31
RESPONSE, AND BENEFICIAL ELECTRIFICATION BY CONSUMERS , ELECTRIC 32
COMPANIES, GAS COMPANIES , AND THE DEPARTMENT IN SUPPORT OF THE 33 8 HOUSE BILL 864
GREENHOUSE GAS EMISS IONS REDUCTION GOALS AND TARGETS SPECIFIED IN 1
REQUIRED UNDER TITLE 2, SUBTITLE 12 OF THE ENVIRONMENT ARTICLE. 2
(B) AS DIRECTED BY THE COMMISSION, EACH GAS COMPANY SUB JECT TO § 3
4–207(A) OF THIS ARTICLE, EACH MUNICIPAL ELECT RIC OR GAS UTILITY, AND EACH 4
SMALL RURAL ELECTRIC COOPERATIVE , AND, IF REQUIRED IN ACCOR DANCE WITH 5
SUBSECTION (C) OF THIS SECTION , EACH MIDSIZE ELECTRI C COOPERATIVE SHALL 6
INCLUDE ENERGY EFFIC IENCY AND CONSERVATI ON, DEMAND RESPONSE , AND 7
BENEFICIAL ELECTRIFI CATION PROGRAMS OR SERVICES AS PART OF THEIR 8
SERVICE TO THEIR CUS TOMERS. 9
(C) (1) IN ACCORDANCE WITH TH IS SUBSECTION , EACH MIDSIZE 10
ELECTRIC COOPERATIVE SHALL BE SUBJECT TO EITHER SU BSECTION (A) OR 11
SUBSECTION (B) OF THIS SECTION. 12
(2) EACH MIDSIZE ELECTRIC COOPERATIVE SHALL OF FER PROGRAMS 13
AND SERVICES TO CUST OMERS IN ACCORDANCE WITH: 14
(I) SUBSECTION (B) OF THIS SECTION THRO UGH DECEMBER 31, 15
2026; AND 16
(II) ON OR AFTER JANUARY 1, 2027, AND AS THE COMMISSION 17
DIRECTS, EITHER SUBSECTION (A) OR SUBSECTION (B) OF THIS SECTION. 18
(3) NOT LATER THAN OCTOBER 1, 2025, THE COMMISSION SHALL 19
DETERMINE IF IT IS I N THE PUBLIC INTERES T FOR A MIDSIZE ELEC TRIC 20
COOPERATIVE TO OFFER PROGRAMS AND S ERVICES TO CUSTOMERS IN ACCORDANCE 21
WITH SUBSECTION (A) OR SUBSECTION (B) OF THIS SECTION STAR TING JANUARY 1, 22
2027, AND FOR ALL SUBSEQUE NT YEARS. 23
(4) EACH MIDSIZE ELECTRIC COOPERATIVE SHALL PR OVIDE THE 24
FOLLOWING INFORMATIO N TO THE COMMISSION TO ASSIST I N MAKING A 25
DETERMINATION UNDER PARAGRAPH (3) OF THIS SUBSECTION : 26
(I) ANTICIPATED COSTS AN D BILL IMPACTS; 27
(II) A DESCRIPTION OF THE ANTICIPATED PROGRAM 28
OFFERINGS; 29
(III) THE ANTICIPATED COST –EFFECTIVENESS OF THE 30
RESIDENTIAL, COMMERCIAL, AND INDUSTRIAL SECTO R SUBPORTFOLIOS BASE D ON 31
THE COST–EFFECTIVENESS TESTS IN § 7–225(D)(3)(I) OF THIS SUBTITLE; 32
HOUSE BILL 864 9
(IV) THE ANTICIPATED ELEC TRICITY SAVINGS AND 1
GREENHOUSE GAS EMISS IONS REDUCTIONS ; AND 2
(V) ANY OTHER INFORMATIO N THE COMMISSION REQUIRES. 3
(5) THE INFORMATION PROVI DED TO THE COMMISSION UNDER 4
PARAGRAPH (4) OF THIS SUBSECTION S HALL BE BASED ON A P LAN TO OFFER 5
PROGRAMS AND SERVICE S TO CUSTOMERS THAT COMPLIES WITH THE 6
REQUIREMENTS OF AN E LECTRIC COMPANY SUBJ ECT TO SUBSECTION (A) OF THIS 7
SECTION FOR THE 3–YEAR PROGRAM CYCLE S TARTING JANUARY 1, 2027. 8
(6) WHEN MAKING A PUBLIC INTEREST DETERMINATI ON UNDER 9
PARAGRAPH (3) OF THIS SUBSECTION T HE COMMISSION, AT A MINIMUM , SHALL 10
CONSIDER THE REQUIRE MENTS UNDER § 7–225(D)(3) OF THIS SUBTITLE THAT ARE 11
CONSIDERED WHEN APPR OVING A PLAN OF AN E LECTRIC COMPANY THAT IS SUBJECT 12
TO SUBSECTION (A) OF THIS SECTION. 13
(7) STARTING OCTOBER 1, 2025, IF THE COMMISSION DETERMINES 14
THAT IT IS IN THE PU BLIC INTEREST FOR A MIDSIZE ELECTRIC COO PERATIVE TO BE 15
SUBJECT TO SUBSECTIO N (A) OF THIS SECTION , THE MIDSIZE ELECTRIC 16
COOPERATIVE SHALL CO MPLY WITH ALL REQUIR EMENTS OF AN ELECTRI C COMPANY 17
SUBJECT TO SUBSECTIO N (A) OF THIS SECTION FOR PROGRAM CYCLES START ING ON 18
AND AFTER JANUARY 1, 2027. 19
(8) ON OR BEFORE MARCH 1 EACH YEAR, STARTING IN 2026, EACH 20
MIDSIZE ELECTRIC COO PERATIVE DIRECTED BY THE COMMISSION TO INCLUDE 21
PROGRAMS OR SERVICES UNDER SUBSECTION (B) OF THIS SECTION SHAL L SUBMIT 22
TO THE COMMISSION A REPORT Q UANTIFYING THE GAINS IN ENERGY EFFICIENCY 23
AND REDUCTIONS IN GREENHOU SE GAS EMISSIONS ACH IEVED DURING THE 24
PREVIOUS YEAR . 25
(C) (D) THE COMMISSION SHALL ENCO URAGE AND PROMOTE TH E 26
EFFICIENT USE AND CO NSERVATION OF ENERGY IN SUPPORT OF THE GR EENHOUSE 27
GAS EMISSIONS REDUCT ION GOALS AND TARGET S SPECIFIED IN REQUIRED UNDER 28
TITLE 2, SUBTITLE 12 OF THE ENVIRONMENT ARTICLE, ESTABLISHED BY THE 29
COMMISSION UNDER § 7–223(B) OF THIS SUBTITLE, AND SPECIFIED IN § 7–224(A)(2) 30
OF THIS SUBTITLE BY: 31
(1) REQUIRING EACH ELECT RIC COMPANY AND GAS COMPANY TO 32
ESTABLISH ANY PROGRAM OR SERVICE T HAT THE COMMISSION DETERMINES TO BE 33
APPROPRIATE AND COST –EFFECTIVE; 34
(2) ADOPTING RATE –MAKING POLICIES THAT PROVIDE, THROUGH A 35
SURCHARGE LINE ITEM ON CUSTOMER BILLS : 36 10 HOUSE BILL 864
(I) FULL COST RECOVERY OF REA SONABLY INCURRED COS TS 1
FOR PROGRAMS AND SERVICES ESTABLI SHED UNDER 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 ENERGY SAVINGS ; 9
(III) COMPENSATION FOR ANY UNPAID COSTS AND 10
UNAMORTIZED COST S UNDER 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 INCENTIV ES 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 GOALS AND TARG ETS. 19
(E) THE COMMISSION SHALL , BY REGULATION OR ORDER , REQUIRE EACH 20
ELECTRIC COMPANY AND EACH GAS COMPANY SUB JECT TO SUBSECTION (A) OF THIS 21
SECTION THAT HAS SUB MITTED TO THE COMMISSION, ON OR BEFORE JULY 1, 2024, 22
A PLAN FOR ACHIEVING ELECTRICITY OR GAS S AVINGS AND DEMAND RE DUCTION 23
TARGETS TO DISCLOSE THE FOLL OWING INFORMATION IN A FORM AND FORMAT 24
READILY UNDERSTANDAB LE TO THE AVERAGE CU STOMER: 25
(1) THAT THE SURCHARGE I MPOSED IN ACCORDANCE WITH 26
SUBSECTION (D) OF THIS SECTION INCL UDES THE COST OF PAY ING DOWN THE 27
UNPAID COSTS AND UNA MORTIZED COSTS THAT WERE ACCR UED OVER TIME BY 28
PROGRAMS AND SERVICE S REQUIRED BY THE COMMISSION DATING BAC K TO 2008; 29
AND 30
(2) THE PERIOD OF TIME T HAT THE SURCHARGE WI LL INCLUDE 31
EXCESS CHARGES TO PA Y DOWN THE UNPAID CO STS AND UNAMORTIZED COSTS. 32
HOUSE BILL 864 11
7–223. 1
(A) ON OR BEFORE JANUARY 1, 2025, AND ON OR BEFORE JANUARY 1 2
EVERY 3 YEARS, STARTING IN 2027, THE COMMISSION SHALL , BY REGULATION OR 3
ORDER, REQUIRE EACH ELECTRI C COMPANY AND EACH G AS COMPANY SUBJECT TO 4
§ 7–222(A) OF THIS SUBTITLE TO DEVELOP AND IMPLE MENT A PLAN THAT: 5
(1) COVERS EACH APPROPRIATE RATEPAYER CLASS CLASSES; 6
(2) STARTING IN 2027, COVERS A 3–YEAR PROGRAM CYCLE ; AND 7
(3) ACHIEVES THE GREENHO USE GAS EMISSIONS RE DUCTION 8
TARGET ESTABLISHED F OR THE ELECTRIC COMP ANY OR GAS COMPANY U NDER 9
SUBSECTION (B) OF THIS SECTION THRO UGH COST–EFFECTIVE ENERGY EFF ICIENCY 10
AND CONSERVATION PRO GRAMS AND SERVICES , DEMAND RESPONSE PROG RAMS 11
AND SERVICES, AND BENEFICIAL ELECT RIFICATION PROGRAMS AND SERVICES. 12
(B) (1) FOR 2025 AND 2026, AND FOR EACH 3–YEAR PROGRAM CYCLE 13
STARTING IN 2027, THE COMMISSION SHALL ESTA BLISH A GREENHOUSE G AS 14
EMISSIONS REDUCTION TARGET FOR EACH ELEC TRIC COMPANY AND EAC H GAS 15
COMPANY SUBJECT TO § 7–222(A) OF THIS SUBTITLE AS PROVIDED IN THIS 16
SUBSECTION. 17
(2) WHEN ESTABLISHING GRE ENHOUSE GAS EMISSIONS REDUCTION 18
TARGETS UNDER THIS S UBSECTION, THE COMMISSION SHALL MEAS URE THE 19
GREENHOUSE GAS EMISS IONS FROM ELECTRICIT Y AND GAS, AND THE INTENSITIES 20
OF THOSE EMISSIONS , USING CURRENT DATA OBTAINED FROM PJM 21
INTERCONNECTION ON MA RGINAL GREENHOUSE GA S EMISSIONS RATES FROM THE 22
PREVIOUS YEAR AND PROJECTIONS FROM THE DEPARTMENT OF THE 23
ENVIRONMENT . 24
(3) AS A BASELINE FOR DET ERMINING GREENHOUSE GAS EMISSIONS 25
REDUCTIONS UNDER THI S SUBSECTION , THE COMMISSION SHALL USE THE 26
GREENHOUSE GAS EMISS IONS RESULTING FROM THE DIRECT CONS UMPTION OF GAS 27
AND ELECTRICITY IN MARYLAND BUILDINGS IN 2020, AS DETERMINED BY THE 28
DEPARTMENT OF THE ENVIRONMENT . 29
(4) FOR THE PERIOD 2025–2033, THE COMMISSION SHALL 30
DETERMINE AN OVERALL STATEWIDE GREENHOUSE GAS EMISSIONS REDUCT ION 31
TARGET BASED ON AN AVE RAGE ANNUAL REDUCTIO N OF AT LEAST 1.8% OF THE 32
BASELINE DETERMINED UNDER PARAGRAPH (3) OF THIS SUBSECTION . 33
(3) THE GREENHOUSE GAS EM ISSIONS REDUCTION TA RGETS 34
ESTABLISHED UNDER TH IS SUBSECTION SHALL BE MEASURED : 35 12 HOUSE BILL 864
(I) IN METRIC TONS; AND 1
(II) RELATIVE TO THE GREE NHOUSE GAS EMISSIONS 2
ASSOCIATED WITH THE ELECTRIC COMPANY ’S OR GAS COMPANY ’S 3
WEATHER–NORMALIZED GROSS RET AIL SALES AND LOSSES IN A BASELINE YEAR , AS 4
DETERMINED BY THE COMMISSION. 5
(4) BY THE DATES SPECIFIE D IN § 7–225(A) OF THIS SUBTITLE , THE 6
COMMISSION SHALL ESTA BLISH GREENHOUSE GAS EMISSIONS REDUCTION 7
TARGETS FOR EACH ELE CTRIC COMPANY PLAN T HAT WILL ACHIEVE AT LEAST THE 8
GREENHOUSE GAS EMISS IONS REDUCTION EQUIV ALENT, MEASURED ON A 9
LIFECYCLE BASIS USIN G THE EMISSI ON INTENSITIES UNDER PARAGRAPH (2) OF 10
THIS SUBSECTION , OF THE FOLLOWING ANN UAL ELECTRICITY SAVI NGS 11
PERCENTAGES , CALCULATED AS A PERC ENTAGE OF THE ELECTR IC COMPANY’S 2016 12
WEATHER–NORMALIZED GROSS RET AIL SALES AND ELECTR ICITY LOSSES: 13
(I) 2.0% IN 2024; 14
(II) 2.25% EACH YEAR IN 2025 AND 2026; AND 15
(III) 2.5% EACH YEAR IN 2027 AND AFTER. 16
(5) ON OR BEFORE JANUARY 1, 2025, AND ON OR BEFORE JANUARY 17
1 EVERY 3 YEARS, STARTING IN 2027, THE COMMISSION SHALL ESTA BLISH 18
GREENHOUSE GAS EMISS IONS REDUCTION TAR GETS FOR EACH GAS CO MPANY PLAN 19
THAT WILL ACHIEVE AT LEAST THE GREENHOUSE GAS EMISSIONS REDUCT ION 20
EQUIVALENT, MEASURED ON A LIFECY CLE BASIS USING THE EMISSION INTENSITIES 21
UNDER PARAGRAPH (2) OF THIS SUBSECTION , OF THE GAS SAVINGS TARGETS 22
ESTABLISHED BY THE COMMISSION ACHIEVED BY THE GAS COMPANY FOR THE 23
2021–2023 PROGRAM CYCLE . 24
(6) THE COMMISSION SHALL TAKE INTO CONSIDERATION T HE MOST 25
RECENT FINAL PLAN AD OPTED UNDER § 2–1205 OF THE ENVIRONMENT ARTICLE 26
WHEN ESTABLISHING TH E GREENHOUSE GAS EMI SSIONS REDUCTION TARGETS 27
UNDER THIS SUBSECTIO N. 28
(7) FOR 2025 AND 2026: 29
(I) THE COMMISSION SHALL , AFTER MAKING APPROPR IATE 30
FINDINGS, DETERMINE WHETHER EX ISTING ELECTRIC COMP ANY AND GAS COMPANY 31
PLANS MUST BE MODIFI ED TO COMPLY WITH § 7–225(D) OF THIS SUBTITL E; AND 32
(II) ELECTRIC COMPANIES A ND GAS COMPANIES : 33 HOUSE BILL 864 13
1. SHALL PROVIDE INFORM ATION AS REQUIRED BY THE 1
COMMISSION TO ASSIST IN MAKING THE DETERM INATION UNDER ITEM (I) OF THIS 2
PARAGRAPH ; AND 3
2. ARE ONLY REQUIRED TO FILE NEW PLANS IN 4
ACCORDANCE WITH THIS SECTION IF DIRE CTED BY THE COMMISSION. 5
(C) THE COMMISSION MAY GIVE P RIORITY TO LONG –LIVED GREENHOUSE 6
GAS EMISSIONS REDUCT ION MEASURES IN THE PLANS BY ESTABLISHIN G A MINIMUM 7
WEIGHTED AVERAGE MEA SURE LIFE FOR THE PL AN OF EACH ELECTRIC COMPANY 8
AND GAS COMPANY . 9
(D) CONTRIBUTIONS TO GREE NHOUSE GAS EMISSIONS REDUCTION GOALS 10
AND TARGETS IN A PLA N OF AN ELECTRIC COM PANY OR A GAS COMPAN Y: 11
(1) MAY, NOTWITHSTANDING § 7–222(C)(2) § 7–222(D)(2) OF THIS 12
SUBTITLE, INCLUDE RECOVERY OF THE REASONABLE AND P RUDENT COSTS FROM 13
PROGRAMS THAT ARE NO T BEHIND–THE–METER PROGRAMS IN A BASE RATE 14
PROCEEDING , SUBJECT TO COMMISSION APPROVAL ; AND 15
(2) MAY NOT INCLUDE THE INCREASED ADOPTION O F ELECTRIC 16
VEHICLES. 17
(E) BEGINNING JANUARY 1, 2025, AT LEAST 80% OF THE GREENHOUSE GAS 18
EMISSIONS REDUCTIONS COUNTED TOWARD EACH ELECTRIC COMPANY ’S AND EACH 19
GAS COMPANY ’S GREENHOUSE GAS EMI SSIONS REDUCTION TAR GETS ESTABLISHED 20
UNDER THIS SECTION S HALL COME FROM BEHIN D–THE–METER PROGRAMS , WHICH 21
MAY INCLUDE DEPLOYME NT OF ENERGY ST ORAGE FACILITIES . 22
7–224. 23
(A) (1) BEGINNING JANUARY 1, 2025, AND ON OR BEFORE JANUARY 1 24
EVERY 3 YEARS THEREAFTER , STARTING IN 2027, THE DEPARTMENT SHALL 25
PROCURE OR PROVIDE T O LOW– AND MODERATE –INCOME LOW–INCOME 26
INDIVIDUALS ENERGY E FFICIENCY AND CONSERVATION PROGRAM S AND SERVICES, 27
DEMAND RESPONSE PROG RAMS AND SERVICES , AND BENEFICIAL ELECT RIFICATION 28
PROGRAMS AND SERVICE S THAT ACHIEVE THE GREENHOUSE GAS EMISS IONS 29
REDUCTION TARGETS ES TABLISHED FOR THE DEPARTMENT UNDER PARA GRAPH (2) 30
OF THIS SUBSECTIO N. 31
(2) FOR THE PERIOD 2025–2033, THE PROGRAMS AND SER VICES 32
REQUIRED UNDER PARAG RAPH (1) OF THIS SUBSECTION S HALL BE ON A 33 14 HOUSE BILL 864
TRAJECTORY TO ACHIEV E GREENHOUSE GAS RED UCTIONS AFTER 2027 OF AT LEAST 1
0.9% OF THE BASELINE DETE RMINED UNDER SUBSECT ION (B) OF THIS SECTION. 2
(3) (I) WHEN ESTABLISHING GRE ENHOUSE GAS EMISSION S 3
REDUCTION TARGETS UN DER THIS SUBSECTION , THE COMMISSION SHALL MEAS URE 4
THE GREENHOUSE GAS E MISSIONS FROM ELECTR ICITY USING CURRENT DATA AND 5
PROJECTIONS FROM THE DEPARTMENT OF THE ENVIRONMENT . 6
(II) THE GREENHOUSE GAS EM ISSIONS REDUCTION TA RGETS 7
ESTABLISHED UNDER TH IS SUBSECTION SHALL BE MEASURED IN METRI C TONS. 8
(3) (4) THE GREENHOUSE GAS RE DUCTIONS ACHIEVED TO MEET 9
THE TARGETS ESTABLIS HED UNDER PARAGRAPH (2) OF THIS SUBSECTION S HALL 10
COUNT TOWARD THE ACHIEVEME NT OF THE GREENHOUSE GAS REDUCTION TARGET 11
ESTABLISHED UNDER § 7–223(B) OF THIS SUBTITLE . 12
(5) THE TARGET GREENHOUSE GAS SAVINGS SHALL BE ACHIEVED 13
BASED ON THE 3–YEAR AVERAGE OF THE DEPARTMENT ’S PLAN SUBMITTED IN 14
ACCORDANCE WITH SUBS ECTION (D) OF THIS SECTION. 15
(6) FOR 2025 AND 2026: 16
(I) THE COMMISSION SHALL , AFTER MAKING APPROPR IATE 17
FINDINGS, DETERMINE WHETHER TH E DEPARTMENT ’S EXISTING 2024–2026 PLAN 18
MUST BE MODIFIED TO COMPLY WITH : 19
1. THE TARGETS ESTABLIS HED IN THIS SUBSECT ION; 20
AND 21
2. § 7–225(D) OF THIS SUBTITLE; AND 22
(II) THE DEPARTMENT : 23
1. SHALL PROVIDE INFORM ATION AS REQUIRED BY THE 24
COMMISSION TO ASSIST IN MAKING THE DETERM INATION IN ITEM (I) OF THIS 25
PARAGRAPH ; AND 26
2. IS ONLY REQUIRED TO FILE NEW PLANS IN 27
ACCORDANCE WITH SUBS ECTION (D) OF THIS SECTION AND § 7–225 OF THIS 28
SUBTITLE IF DIRECTED BY THE COMMISSION. 29
(B) AS A BASELINE FOR DET ERMINING GREENHOUSE GAS EMISSIONS 30
REDUCTION TARGETS UN DER THIS SECTION , THE COMMISSION SHALL USE THE 31
GREENHOUSE GAS EMISSIONS RESULTING FROM THE DIRECT CONS UMPTION OF GAS 32 HOUSE BILL 864 15
AND ELECTRICITY BY LOW– AND MODERATE –INCOME LOW–INCOME RESIDENTIAL 1
HOUSEHOLDS IN 2020 2016, AS DETERMINED BY THE DEPARTMENT OF THE 2
ENVIRONMENT . 3
(C) (1) THE DEPARTMENT MAY PROCUR E OR PROVIDE SAVINGS THAT 4
ARE ACHIEVED THROUGH FUNDING SOURCES THAT MEET THE STANDARDS O F 5
PROGRAM FUNDING THRO UGH UTILITY RATES OR THE U.S. DEPARTMENT OF 6
ENERGY. 7
(2) THE DEPARTMENT MAY USE TH E SAVINGS ACHIEVED T HROUGH 8
ALL FUNDING SOURCES TOWARD CALCULATING T HE TARGETED GREEN HOUSE GAS 9
REDUCTIONS IF THE FU NDING SOURCES MEET T HE STANDARDS OF PROG RAMS 10
FUNDED THROUGH : 11
(I) A SURCHARGE UNDER § 7–222 OF THIS SUBTITLE; OR 12
(II) THE U.S. DEPARTMENT OF ENERGY. 13
(D) ON OR BEFORE SEPTEMBER 1 IF DIRECTED BY THE COMMISSION IN 14
2024, AND ON OR BEFORE SEPTEMBER 1 EVERY 3 YEARS, BEGINNING STARTING IN 15
2024 2026, THE DEPARTMENT SHALL SUBM IT ITS PLANS FOR ANY PROGRAMS OR 16
SERVICES PROCURED OR PROVIDED UNDER SUBSE CTION (A) OF THIS SECTION TO 17
THE COMMISSION FOR REVIEW AND APPROVAL UNDER § 7–225 OF THIS SUBTITLE. 18
(E) FOR WEATHERIZATION OF LEASED OR RENTED RES IDENCES, THE 19
DEPARTMENT SHALL ADOP T REGULATIONS TO ENS URE THAT: 20
(1) THE BENEFITS OF WEAT HERIZATION ASSISTANC E, INCLUDING 21
UTILITY BILL REDUCTI ON AND PRESERVATION OF AFFORDABLE HOUSIN G STOCK, 22
ACCRUE PRIMARILY TO LOW–INCOME TENANTS OCCUP YING A LEASED OR REN TED 23
RESIDENCE; AND 24
(2) THE RENT ON THE RESI DENCE IS NOT INCREAS ED AND THE 25
TENANT IS NOT EVICTE D AS A RESULT OF WEA THERIZATION PROVIDED UNDER THIS 26
SECTION. 27
(F) THE PROGRAMS AND SE RVICES PROVIDED UNDE R SUBSECTION (A) OF 28
THIS SECTION MAY NOT USE THERMAL INSULATI NG MATERIALS FOR BUI LDING 29
ELEMENTS, INCLUDING WALLS , FLOORS, CEILINGS, ATTICS, AND ROOF INSULATION , 30
THAT CONTAIN FORMALD EHYDE IF THE FORMALD EHYDE: 31
(1) WAS INTENTIONALLY AD DED; OR 32
(2) IS PRESENT IN THE PR ODUCT AT GREATER THA N 0.1% BY WEIGHT. 33 16 HOUSE BILL 864
(G) THE DEPARTMENT ’S APPROVED CONTRACTO RS USED FOR THE 1
PROGRAMS UNDER THIS SECTION SHALL MEET T HE FOLLOWING JOB 2
REQUIREMENTS : 3
(1) PAY AT LEAST 150% OF THE STATE MINIMUM WAGE ; 4
(2) PROVIDE CAREER ADVAN CEMENT TRAINING ; 5
(3) AFFORD EMPLOYEES THE RIGHT TO BARGAIN COL LECTIVELY FOR 6
WAGES AND BENEFITS ; 7
(4) PROVIDE PAID LEAVE ; 8
(5) BE CONSIDERED COVERE D EMPLOYMENT FOR PUR POSES OF 9
UNEMPLOYMENT INSURAN CE BENEFITS IN ACCOR DANCE WITH TITLE 8 OF THE 10
LABOR AND EMPLOYMENT ARTICLE; 11
(6) ENTITLE THE EMPLOYEE TO WORKERS’ COMPENSATION BENEFIT S 12
IN ACCORDANCE WITH TITLE 9 OF THE LABOR AND EMPLOYMENT ARTICLE; 13
(7) BE COMPLIANT WITH FE DERAL AND STATE WAGE AND HOUR L AWS 14
FOR THE PREVIOUS 3 YEARS; 15
(8) OFFER EMPLOYER –PROVIDED HEALTH INSU RANCE BENEFITS 16
WITH MONTHLY PREMIUM S THAT DO NOT EXCEED 8.5% OF THE EMPLOYEE ’S NET 17
MONTHLY EARNINGS ; AND 18
(9) OFFER RETIREMENT BEN EFITS. 19
(H) (1) THE DEPARTMENT SHALL DEVE LOP A PLAN TO COORDI NATE 20
FUNDING SOU RCES AND LEVERAGE TH E GREATEST FUNDING P OSSIBLE TO SUPPORT 21
A WHOLE HOME APPROAC H BY ADDRESSING : 22
(I) HEALTH AND SAFETY UP GRADES; 23
(II) WEATHERIZATION ; 24
(III) ENERGY EFFICIENCY ; AND 25
(IV) OTHER GENERAL MAINTE NANCE FOR LOW –INCOME 26
HOUSING. 27
(2) THE PLAN SHALL COORDI NATE FUNDING AMONG : 28 HOUSE BILL 864 17
(I) THE STRATEGIC ENERGY INVESTMENT FUND; 1
(II) FEDERAL WEATHERIZATI ON ASSISTANCE PROGRA MS; 2
(III) RATEPAYER CONTRIBUTI ONS TO: 3
1. THE EMPOWER MARYLAND LIMITED INCOME 4
ENERGY EFFICIENCY PROGRAM; AND 5
2. THE MULTIFAMILY ENERGY EFFICIENCY AND 6
HOUSING AFFORDABILITY PROGRAM; 7
(IV) THE MARYLAND AFFORDABLE HOUSING TRUST FUND; 8
(V) U.S. DEPARTMENT OF HOUSING AND URBAN 9
DEVELOPMENT PROGRAMS , INCLUDING: 10
1. COMMUNITY DEVELOPMENT BLOCK GRANTS; 11
2. THE HOME INVESTMENT PARTNERSHIP GRANTS 12
PROGRAM; AND 13
3. LEAD HAZARD CONTROL AND HEALTHY HOMES 14
GRANTS; 15
(VI) U.S. DEPARTMENT OF AGRICULTURE PROGRAMS , 16
INCLUDING THE HOME REPAIR PROGRAM; 17
(VII) THE HEALTHY HOMES FOR HEALTHY KIDS PROGRAM; 18
(VIII) THE ENERGY EFFICIENCY AND CONSERVATION BLOCK 19
GRANT PROGRAM ; 20
(IX) STATE APPROPRIATIONS ; 21
(X) FUNDS FROM THE FEDER AL INFLATION REDUCTION ACT OF 22
2022; AND 23
(XI) ANY OTHER SOURCE OF FUNDING THAT THE DEPARTMENT 24
OR THE TASK FORCE IDENTIFIES . 25
18 HOUSE BILL 864
(3) THE DEPARTMENT SHALL ENSU RE, FOR ANY WHOLE HOME 1
RETROFITS ASSOCIATED WITH WEATHERIZATION PROVIDED OR DEVELOPE D UNDER 2
THE PLAN, THAT: 3
(I) THERE IS A SINGLE PO INT OF CONTACT FOR LOW– AND 4
MODERATE–INCOME LOW–INCOME RESIDENTIAL HOUSEHOL DS; AND 5
(II) SERVICES ARE OFFERED IN ANY LANGUAGE NEED ED BY THE 6
LOW– AND MODERATE –INCOME LOW–INCOME RESIDENTIAL HOUSEHOL DS. 7
(4) THE DEPARTMENT SHALL COLL ABORATE WITH THE MEM BERS OF 8
THE TASK FORCE AND IDENTIFY OT HER INTERESTED PARTI ES TO DEVELOP THE 9
PLAN. 10
(5) ON OR BEFORE DECEMBER 31, 2024, THE DEPARTMENT SHALL 11
SUBMIT THE PLAN TO T HE GOVERNOR AND , IN ACCORDANCE WITH § 2–1257 OF THE 12
STATE GOVERNMENT ARTICLE, THE GENERAL ASSEMBLY. 13
(I) THE DEPARTMENT , THE MARYLAND ENERGY ADMINISTRATION , AND 14
OTHER STATE UNITS SHALL A PPLY FOR ALL FEDERAL FUNDING THAT MAY BEC OME 15
AVAILABLE TO CARRY O UT THIS SECTION. 16
(J) (1) THE DEPARTMENT SHALL COLL ABORATE WITH THE MEM BERS OF 17
THE TASK FORCE TO DEVELOP A PL AN, INCLUDING A BUDGET , A TIMELINE, AND 18
POTENTIAL FUNDING SO URCES, TO PROVIDE ENERGY EFFICIENCY RE TROFITS TO 19
ALL LOW–INCOME HOUSEHOLDS BY 2032. 20
(2) ON OR BEFORE DECEMBER 1, 2024, THE DEPARTMENT , IN 21
COLLABORATION WITH T HE TASK FORCE, SHALL SUBMIT THE PLA N TO THE 22
GENERAL ASSEMBLY, IN ACCORDANCE WITH § 2–1257 OF THE STATE GOVERNMENT 23
ARTICLE. 24
7–225. 25
(A) AS SOON AS POSSIBLE I N 2024, AND AT LEAST 8 MONTHS BEFORE THE 26
FILING DEADLINE FOR PLANS AFTER 2024, THE COMMISSION SHALL ISSU E AN 27
ORDER THAT FULLY ALLOCATES AMON G ELECTRIC COMPANIES , GAS COMPANIES , 28
AND THE DEPARTMENT THE TOTAL AMOUNT OF THE OVERALL STA TEWIDE 29
DETERMINES THE GREENHOUSE GAS EMISS IONS REDUCTION TARGET DETERMINED 30
TARGETS REQUIRED UNDER § 7–223(B) OF THIS SUBTITLE AND THE GREENHOUSE 31
GAS EMISSIONS REDUCT IONS SPECIFIED IN REQUIRED UNDER § 7–224(A)(2) OF THIS 32
SUBTITLE. 33
HOUSE BILL 864 19
(B) (1) (I) ON OR BEFORE JULY 1 IF DIRECTED BY THE COMMISSION 1
IN 2024, AND ON OR BEFORE JULY 1 EVERY 3 YEARS, BEGINNING STARTING IN 2024 2
2026, EACH ELECTRIC COMPAN Y AND EACH GAS COMPA NY SUBJECT TO § 7–222(A) 3
OF THIS SUBTITLE THAT SUBMITTED A PLA N FOR ACHIEVING ELECTRICITY SAVINGS 4
AND DEMAND REDUCTION TARGETS TO THE COMMISSION BEFORE JULY 1, 2024, 5
AND THE DEPARTMENT , SHALL CONSULT WITH T HE TECHNICAL STAFF O F THE 6
COMMISSION, THE OFFICE OF PEOPLE’S COUNSEL, THE MARYLAND ENERGY 7
ADMINISTRATION , AND THE DEPARTMENT OF THE ENVIRONMENT REGARDING THE 8
DESIGN AND ADEQUACY OF ITS PLANS FOR ACH IEVING THE GREENHOUS E GAS 9
EMISSIONS REDUCTION TARGETS ESTABLISHED BY THE COMMISSION UNDER § 10
7–223(A) § 7–223(B) OF THIS SUBTITLE AND SPECIFIED IN § 7–224(A)(2) OF THIS 11
SUBTITLE. 12
(II) ON OR BEFORE OCTOBER 1, 2024, AND ON OR BEFORE JULY 13
1 EVERY 3 YEARS, BEGINNING STARTING IN 2027 2026, EACH ELECTRIC COMPAN Y 14
AND EACH GAS COMPANY SUBJECT TO § 7–222(A) OF THIS SUBTITLE THAT DID NOT 15
SUBMIT A PLAN FOR AC HIEVING ELECTRICITY SAVINGS AND DEMA ND REDUCTION 16
TARGETS TO THE COMMISSION BEFORE JULY 1, 2024, SHALL COMPLY WITH TH E 17
CONSULTING REQUIREME NTS UNDER SUBPARAGRA PH (I) OF THIS PARAGRAPH . 18
(2) EACH ELECTRIC COMPANY , AND EACH GAS COMPANY , AND THE 19
DEPARTMENT SUBJECT TO § 7–222(A) OF THIS SUBTITLE SHALL PROVIDE THE 20
TECHNICAL STAFF OF T HE COMMISSION, THE OFFICE OF PEOPLE’S COUNSEL, THE 21
MARYLAND ENERGY ADMINISTRATION , AND THE DEPARTMENT OF THE 22
ENVIRONMENT WITH ANY ADDITIONAL INFORMATI ON REGARDING ITS PLA N, AS 23
REQUESTED . 24
(C) (1) (I) ON OR BE FORE SEPTEMBER 1 IF DIRECTED BY THE 25
COMMISSION IN 2024, AND ON OR BEFORE SEPTEMBER 1 EVERY 3 YEARS, 26
BEGINNING STARTING IN 2024 2026, EACH ELECTRIC COMPAN Y AND EACH GAS 27
COMPANY SUBJECT TO § 7–222(A) OF THIS SUBTITLE THAT SUBMITTED A PLA N FOR 28
ACHIEVING ELECT RICITY SAVINGS AND D EMAND REDUCTION TARG ETS TO THE 29
COMMISSION BEFORE JULY 1, 2024, AND THE DEPARTMENT , SHALL SUBMIT ITS 30
PLAN TO THE COMMISSION. 31
(II) ON OR BEFORE DECEMBER 1, 2024, AND ON OR BEFORE 32
SEPTEMBER 1 EVERY 3 YEARS, BEGINNING STARTING IN 2027 2026, EACH ELECTRIC 33
COMPANY AND EACH GAS COMPANY THAT DID NOT SUBMIT A PLAN FOR AC HIEVING 34
ELECTRICITY SAVINGS AND DEMAND R EDUCTION TARGETS TO THE COMMISSION 35
BEFORE JULY 1, 2024, SHALL SUBMIT ITS PLA N TO THE COMMISSION. 36
20 HOUSE BILL 864
(2) EACH PLAN SHALL DETAI L A PROPO SAL FOR ACHIEVING 1
GREENHOUSE GAS EMISS IONS REDUCTION TARGE TS FOR 3 SUBSEQUENT CALENDAR 2
YEARS. 3
(3) (I) EACH PLAN SHALL : 4
1. INCLUDE: 5
A. A DESCRIPTION OF THE PROPOSED PROGRAMS AN D 6
SERVICES; 7
B. ANTICIPATED COSTS ; 8
C. PROJECTED BENEFITS , INCLUDING GREENHOUSE 9
GAS EMISSIONS REDUCT IONS, ELECTRICITY SAVINGS , AND GAS SAVINGS ; AND 10
D. ANY OTHER INFORMATIO N REQUESTED BY THE 11
COMMISSION; AND 12
2. ADDRESS RESIDENTIAL , COMMERCIAL , AND 13
INDUSTRIAL SECTORS A S APPROPRIATE , INCLUDING LOW –INCOME COMMUNITIES 14
AND LOW– TO MODERATE –INCOME COMMUNITIES . 15
(II) A PLAN OF THE DEPARTMENT SHALL INCL UDE: 16
1. A DEFINITION OF “LOW– OR MODERATE –INCOME 17
LOW–INCOME INDIVIDUAL” TO BE USED IN THE PR OCUREMENT OR PROVISI ON OF 18
ENERGY EFFICIENCY , CONSERVATION , AND GREENHOUSE GAS E MISSIONS 19
REDUCTION PROGRAMS A ND SERVICES; 20
2. A DESCRIPTION OF THE STEPS PROPOSED TO EN SURE 21
INSULATION MATERIALS MEET THE REQUIREMENT S UNDER § 7–224 OF THIS 22
SUBTITLE; AND 23
3. A PROPOSED AVERAGE L IFETIME MEASURE 24
THRESHOLD THAT : 25
A. ENCOURAGES THE DELIV ERY OF INSULATION AN D 26
WEATHERIZATION MEASU RES; AND 27
B. IS DEVELOPED THROUGH A STAKEHOLDER 28
ENGAGEMENT PROCESS . 29
HOUSE BILL 864 21
(III) A PLAN OF AN ELECTRIC COMPANY SHALL INCLUD E THE 1
PROVISION OR PROCURE MENT OF PROGRAMS AND SERVICES FOR RESIDENTIAL 2
BENEFICIAL ELECTRIFI CATION. 3
(D) (1) THE COMMISSION SHALL REVI EW THE PLAN OF EACH ELECTRIC 4
COMPANY, EACH GAS COMPANY , AND THE DEPARTMENT TO DETERMI NE WHETHER 5
THE PLAN IS ADEQUATE AND COST–EFFECTIVE IN ACHIEVI NG THE GREENHOUSE 6
GAS EMISSIONS RED UCTION TARGETS ESTAB LISHED BY THE COMMISSION UNDER § 7
7–223(B) OF THIS SUBTITLE AND SPECIFIED IN § 7–224(A)(2) §§ 7–223(B) AND 8
7–224(A)(2) OF THIS SUBTITLE. 9
(2) THE COMMISSION SHALL CONS IDER ANY WRITTEN FIN DINGS 10
PROVIDED BY THE MARYLAND ENERGY ADMINISTRATION, THE DEPARTMENT OF 11
THE ENVIRONMENT , AND THE OFFICE OF PEOPLE’S COUNSEL REGARDING THE 12
DESIGN AND ADEQUACY OF THE PLAN. 13
(3) SUBJECT TO PARAGRAPH (4) OF THIS SUBSECTION , IN 14
APPROVING, MODIFYING, OR DENYING THE PLAN OF AN ELECTRIC COMPA NY OR A 15
GAS COMPANY, THE COMMISSION SHALL CONS IDER: 16
(I) THE COST –EFFECTIVENESS OF THE RESIDENTIAL, 17
COMMERCIAL , AND INDUSTRIAL SECTO R SUBPORTFOLIOS BY U SING: 18
1. THE PRIMARY STATE JURISDICTION –SPECIFIC TEST, 19
AS DEVELOPED , UPDATED, OR APPROVED BY THE COMMISSION, TO DETERMINE THE 20
COST–EFFECTIVENESS OF A P ROGRAM OR SERVICE PR OSPECTIVELY, INCLUDING 21
CONSIDERATION OF : 22
A. PARTICIPANT NONENERG Y BENEFITS; 23
B. UTILITY NONENERGY BE NEFITS; AND 24
C. SOCIETAL NONENERGY B ENEFITS; AND 25
2. A TOTAL RESOURCE COS T TEST TO COMPARE THE 26
ELECTRICITY SAVINGS AND DEMAND REDUCTION TARGETS OF THE PROGR AM OR 27
SERVICE WITH THE RES ULTS OF SIMILAR PROG RAMS OR SERVICES IMP LEMENTED 28
IN OTHER JURISDICTIO NS, INCLUDING: 29
A. PARTICIPANT NONENERG Y BENEFITS; AND 30
B. UTILITY NONENERGY BENEFITS; 31
(II) THE IMPACT ON RATES OF EACH RATEPAYER CL ASS; 32 22 HOUSE BILL 864
(III) THE IMPACT ON JOBS ; 1
(IV) THE IMPACT ON THE EN VIRONMENT; AND 2
(V) THE IMPACT ON THE GR EENHOUSE GAS EMISSIO NS 3
REDUCTION TARGETS SP ECIFIED IN TITLE 2, SUBTITLE 12 OF THE ENVIRONMENT 4
ARTICLE, ESTABLISHED BY THE COMMISSION UNDER § 7–223(B) OF THIS SUBTITLE, 5
AND SPECIFIED IN § 7–224(A)(2) §§ 7–223(B) AND 7–224(A)(2) OF THIS SUBTITLE. 6
(4) NONENERGY BENEFITS CO NSIDERED UNDER PARAG RAPH (3) OF 7
THIS SUBSECTION SHAL L BE QUANTIFIABLE AND DIRECTLY RELATED TO A 8
PROGRAM OR SERVICE . 9
(5) (I) IN APPROVING, MODIFYING, OR DENYING THE PLAN OF THE 10
DEPARTMENT , THE COMMISSION SHALL CONS IDER: 11
1. SUBJECT TO SUBPARAGR APH (II) OF THIS 12
PARAGRAPH , THE COST–EFFECTIVENESS OF THE PLAN BY USING THE PRIMARY 13
STATE JURISDICTION –SPECIFIC TEST, AS DEVELOPED , UPDATED, OR APPROVED BY 14
THE COMMISSION; 15
2. THE IMPACT ON RATES OF EACH RATEPAYER CL ASS; 16
3. THE IMPACT ON JOBS ; 17
4. THE IMPACT ON THE EN VIRONMENT; AND 18
5. THE IMPACT ON THE GR EENHOUSE GAS EMISSIONS 19
TARGETS SPECIFIED IN TITLE 2, SUBTITLE 12 OF THE ENVIRONMENT ARTICLE, 20
ESTABLISHED BY THE COMMISSION UNDER § 7–223(B) OF THIS SUBTITLE , AND 21
SPECIFIED IN § 7–224(A)(2) OF THIS SUBTITLE. 22
(II) THE PROGRAMS AND SERV ICES OFFERED BY THE 23
DEPARTMENT ARE NOT REQUIRED TO BE COST–EFFECTIVE. 24
(E) THE DEPARTMENT OF THE ENVIRONMENT SHALL PRE PARE AND 25
SUBMIT TO THE COMMISSION AN ANALYSI S REGARDING THE ADEQ UACY OF THE 26
PLAN IN SUPPORTING T HE STATE’S GREENHOUSE GAS EMI SSIONS REDUCTION 27
GOALS SPECIFIED IN TITLE 2, SUBTITLE 12 OF THE ENVIRONMENT ARTICLE, 28
ESTABLISHED BY THE COMMISSION UNDER § 7–223(B) OF THIS SUBTITLE , AND 29
SPECIFIED IN REQUIRED UNDER § 7–224(A)(2) OF THIS SUBTITLE. 30
7–226. 31 HOUSE BILL 864 23
(A) (1) EACH ELECTRIC COMPANY , EACH GAS COMPANY , AND THE 1
DEPARTMENT SHALL PROV IDE TO THE COMMISSION EVERY 6 MONTHS AN UPDATE 2
ON PLAN IMPLEMENTATI ON AND PROGRESS MADE TOWARD ACHIEVING THE 3
GREENHOUSE GAS EMISS IONS REDUCTION TARGE TS ESTABLISHED BY TH E 4
COMMISSION UNDE R § 7–223(B) OF THIS SUBTITLE AND SPECIFIED IN REQUIRED 5
UNDER § 7–224(A)(2) OF THIS SUBTITLE. 6
(2) THE COMMISSION SHALL MONI TOR AND ANALYZE THE IMPACT OF 7
EACH PROGRAM AND SER VICE TO ENSURE THAT THE OUTCOME OF EACH PROGRAM 8
AND SERVICE PROVIDES THE BEST POSSIBLE RESULTS . 9
(3) IN MONITORING AND ANA LYZING THE IMPACT OF A PROGRAM OR 10
SERVICE UNDER PARAGR APH (2) OF THIS SUBSECTION , IF THE COMMISSION FINDS 11
THAT THE OUTCOME OF THE PROGRAM OR SERVI CE MAY NOT BE PROVID ING THE 12
BEST POSSIBLE RESULT S, THE COMMISSION SHALL DIRECT THE ELE CTRIC 13
COMPANY, THE GAS COMPANY , OR THE DEPARTMENT TO INCLUDE IN ITS NEXT 14
UPDATE UNDER PARAGRA PH (1) OF THIS SUBSECTION S PECIFIC MEASURES TO 15
ADDRESS THE FINDINGS . 16
(B) (1) AT LEAST ONCE EACH YE AR, EACH ELECTRIC COMPAN Y AND EACH 17
GAS COMPANY SHALL NOTIFY AFF ECTED CUSTOMERS OF T HE ENERGY EFFICIENCY 18
AND CONSERVATION AND GREENHOUSE GAS REDUC TION CHARGES IMPOSED AND 19
BENEFITS CONFERRED . 20
(2) THE NOTICE SHALL BE P ROVIDED BY PUBLICATI ON ON THE 21
COMPANY’S WEBSITE AND INCLUS ION WITH BILLING INF ORMATION SUCH AS A BILL 22
INSERT OR BILL MESSA GE. 23
(C) ON OR BEFORE MAY 1 EACH YEAR, THE COMMISSION SHALL REPO RT, 24
IN ACCORDANCE WITH § 2–1257 OF THE STATE GOVERNMENT ARTICLE, TO THE 25
GENERAL ASSEMBLY ON: 26
(1) THE STATUS OF PROGRA MS AND SERVICES APPR OVED UNDER 27
THIS SUBTITLE, INCLUDING AN EVALUAT ION OF THE IMPACT OF THE PROGRAMS 28
AND SERVICES THAT AR E DIRECTED TO LOW –INCOME COMMUNITIES , LOW– TO 29
MODERATE–INCOME COMMUNITIES T O THE EXTENT POSSIBL E, AND OTHER 30
PARTICULAR CLASSES O F RATEPAYERS ; 31
(2) A RECOMMENDATION FOR THE APPROPRIATE FUNDING LEVEL TO 32
ADEQUATELY FUND THES E PROGRAMS AND SERVI CES; 33
(3) THE PER CAPITA ELECT RICITY CONSUMPTION A ND THE WINTER 34
AND SUMMER PEAK DEMA ND FOR THE PREVIOUS CALENDAR YEAR ; AND 35 24 HOUSE BILL 864
(4) BEGINNING IN 2026, PROGRESS MADE TOWARD REDUCING 1
GREENHOUSE GAS EMISS IONS IN ACCORDANCE W ITH §§ 7–223 AND 7–224 OF THIS 2
SUBTITLE. 3
7–227. 4
(A) NOTWITHSTANDING ANY O THER LAW, THE COMMISSION MAY NOT 5
REQUIRE OR ALLOW AN ELECTRIC COMPANY OR A GAS COMPANY TO REQ UIRE A 6
CUSTOMER TO AUTHORIZ E THE ELECTRIC CO MPANY OR GAS COMPANY TO CONTROL 7
THE AMOUNT OF THE CU STOMER’S ELECTRICITY USAGE OR GAS USAGE. 8
(B) A CUSTOMER MAY PROVIDE CONSENT TO PARTICIPA TE IN A PROGRAM 9
OF AN ELECTRIC COMPA NY OR A GAS COMPANY THAT PROVIDES DIRECT LOAD 10
CONTROL OR OTHER UTI LITY MANIPUL ATION OF A CUSTOMER ’S ELECTRICITY OR 11
GAS USAGE. 12
7–228. 13
(A) EACH ELECTRIC COMPANY AND EACH GAS COMPANY SHALL PROMOTE 14
THE AVAILABILITY OF FEDERAL AND STATE REBATES , TAX CREDITS , AND 15
INCENTIVES THAT CAN BE USED TO SUPPORT E NERGY EFFICIENCY INV ESTMENTS, 16
ENERGY EFFICIENT AND NO N–FOSSIL–FUEL–POWERED APPLIANCES A ND COOKING 17
EQUIPMENT, BREAKER BOX UPGRADES , AND PORTABLE HEATING AND COOLING 18
EQUIPMENT. 19
(B) THE COMMISSION SHALL ADOP T REGULATIONS TO CAR RY OUT THIS 20
SECTION. 21
7–510.3. 22
(j) (2) A community choice agg regator, in consultation with all 23
investor–owned electric companies whose service territories include all or part of the county 24
and the Department of Housing and Community Development, may promote energy 25
efficiency programs that are: 26
(i) offered by the investor–owned electric companies; or 27
(ii) filed by the investor–owned electric companies with the 28
Commission for its approval in accordance with [§ 7–211] SUBTITLE 2, PART II of this 29
title. 30
Article – State Government 31
9–20B–05. 32 HOUSE BILL 864 25
(f) The Administration shall use the Fund: 1
(4) to provide rate relief by offsetting electricity rates of residential 2
customers, including an offset of surcharges imposed on ratepayers under [§ 7–211] TITLE 3
7, SUBTITLE 2, PART II of the Public Utilities Article; 4
SECTION 5. AND BE IT FURTHER ENACTED, That: 5
(a) The certification agency designated by the Board of Public Works under § 6
14–303(b) of the State Finance and Procurement Article and the Governor’s Office of Small, 7
Minority, and Women Business Affairs, in consultation with the Department of Housing 8
and Community Development, the Office of the Attorney General, and the General 9
Assembly, shall initiate a study regarding the energy efficiency and conservation services 10
used by the Department of Housing and Community Development to evaluate whether the 11
enactment of remedial measures to assist minority and women–owned businesses in the 12
energy efficiency and conservation services industry and market would comply with the 13
U.S. Supreme Court decision in City of Richmond v. J. A. Croson Co., 488 U.S. 469 (1989), 14
and any subsequent federal or constitutional requirements. 15
(b) The certification agency and the Governor’s Office of Small, Minority, and 16
Women Business Affairs shall submit the findings of the study required under subsection 17
(a) of this section to the Legislative Policy Committee, in accordance with § 2–1257 of the 18
State Government Article, on or before December 31, 2026, so that the General Assembly 19
may review the findings before the 2027 legislative session. 20
SECTION 6. AND BE IT FURTHER ENACTED, That: 21
(a) The Public Service Commission shall establish a working group on the 22
EmPOWER Maryland Program and moderate –income households. 23
(b) The purpose of the working group is to study and make recommendations to 24
the Public Service Commission and the General Assembly on coordination of activities and 25
benefits under the EmPOWER Maryland Program between utility companies subject to 26
this Act and the Department of Housing and Community Development so that 27
moderate–income households may obtain the most efficient and cost–effective assistance 28
under the Program. 29
(c) The study and recommendations shall include: 30
(1) development of a practical definition of “moderate–income” for use in 31
assessing the scope of available activities, potentially beneficial extensions of activities, and 32
associated costs under the EmPOWER Maryland Program; 33
(2) an assessment of existing utility–based activities funded by the 34
Program and available to moderate–income households; 35
26 HOUSE BILL 864
(3) proposals for extending utility–based activities and coordinating those 1
activities with corresponding activities of the Department of Housing and Community 2
Development with respect to low–income households under the Program; 3
(4) an assessment of benefits and costs associated with extending and 4
expanding activities under item (3) of this subsection; 5
(5) identification of areas of potential overlap between utility–based and 6
Department–based activities that may be harmonized to avoid duplicating efforts and 7
promote more efficient means to provide assistance to moderate–income households; and 8
(6) identification and development of regulatory and legislative changes 9
needed to implement recommended coordination, extension, and expansion of Program 10
activities to benefit moderate–income households. 11
(d) On or before July 1, 2025, the Commission shall report to the Governor and, 12
in accordance with § 2–1257 of the State Government Article, the General Assembly on the 13
results of the working group study and recommendations. 14
SECTION 6. 7. AND BE IT FURTHER ENACTED, That the publisher of the 15
Annotated Code of Maryland, in consultation with and subject to the approval of the 16
Department of Legislative Services, shall correct, with no further action required by the 17
General Assembly, cross–references and terminology rendered incorrect by this Act. The 18
publisher shall adequately describe any correction that is made in an editor’s note following 19
the section affected. 20
SECTION 7. 8. AND BE IT FURTHER ENACTED, That this Act shall take effect 21
July 1, 2024. 22
Approved:
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Governor.
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Speaker of the House of Delegates.
________________________________________________________________________________
President of the Senate.