WES MOORE, Governor Ch. 539
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Chapter 539
(House Bill 864)
AN ACT concerning
Energy Efficiency and Conservation Plans
FOR the purpose of requiring each electric company, each gas company, and the
Department of Housing and Community Development to develop a certain plan for
achieving certain energy efficiency, conservation, and greenhouse gas emissions
reduction targets through certain programs and services and superseding certain
existing energy efficiency and conservation goals; requiring the Public Service
Commission to encourage and promote the efficient use and conservation of energy
in support of certain greenhouse gas emissions reduction goals and targets in a
certain manner, including by requiring municipal electric or gas utilities and small
rural certain electric cooperatives to include certain programs or services as part of
their service to their customers as directed by the Commission; requiring the
Commission to require certain electric companies and certain gas companies to
include a certain disclosure on customer bills; requiring the Commission to establish
and determine certain greenhouse gas emissions reduction targets; requiring certain
contractors used for certain programs under this Act to meet certain job
requirements; requiring the Department of Housing and Community Development
to develop a plan to coordinate and leverage funding sources to support certain
energy efficiency and other home upgrades; requiring the Department of the
Environment to prepare and submit to the Commission a certain analysis; requiring
each electric company and each gas company to promote certain rebates, tax credits,
and incentives; requiring the certification agency designated by the Board of Public
Works and the Governor’s Office of Small, Minority, and Women Business Affairs,
in consultation with the Department of Housing and Community Development, the
Office of the Attorney General, and the General Assembly to study certain energy
efficiency and conservation services and submit its findings on or before a certain
date; requiring the Commission to establish a certain working group to study and
make recommendations on extending certain program assistance to certain
moderate–income households; and generally relating to the efficient use and
conservation of energy in support of greenhouse gas emissions reduction goals and
targets.
BY repealing
Article – Public Utilities
Section 7–211 and 7–211.1
Annotated Code of Maryland
(2020 Replacement Volume and 2023 Supplement)
BY renumbering
Article – Public Utilities
Section 7–211.2 Ch. 539 2024 LAWS OF MARYLAND
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to be Section 7–315
Annotated Code of Maryland
(2020 Replacement Volume and 2023 Supplement)
BY adding to
Article – Public Utilities
The new part designation “Part I. In General” to immediately precede Section 7–201;
and Section 7–220 through 7–228 to be under the new part “Part II. Energy
Efficiency and Conservation Plans”
Annotated Code of Maryland
(2020 Replacement Volume and 2023 Supplement)
BY repealing and reenacting, with amendments,
Article – Corporations and Associations
Section 5–637(b)
Annotated Code of Maryland
(2014 Replacement Volume and 2023 Supplement)
BY repealing and reenacting, with amendments,
Article – Public Utilities
Section 7–510.3(j)(2)
Annotated Code of Maryland
(2020 Replacement Volume and 2023 Supplement)
BY repealing and reenacting, with amendments,
Article – State Government
Section 9–20B–05(f)(4)
Annotated Code of Maryland
(2021 Replacement Volume and 2023 Supplement)
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND,
That Section(s) 7–211 and 7–211.1 of Article – Public Utilities of the Annotated Code of
Maryland be repealed.
SECTION 2. AND BE IT FURTHER ENACTED, That Section(s) 7 –211.2 of Article
– Public Utilities of the Annotated Code of Maryland be renumbered to be Section(s) 7–315.
SECTION 3. AND BE IT FURTHER ENACTED, That the new part designation
“Part I. In General” be added to immediately precede Section 7–201 of Article – Public
Utilities of the Annotated Code of Maryland.
SECTION 4. AND BE IT FURTHER ENACTED, That the Laws of Maryland read
as follows:
Article – Corporations and Associations
WES MOORE, Governor Ch. 539
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5–637.
(b) A member–regulated cooperative is subject to the following provisions of the
Public Utilities Article:
(1) § 5–103;
(2) § 5–201;
(3) § 5–202;
(4) § 5–303;
(5) § 5–304;
(6) § 5–306;
(7) § 7–103;
(8) § 7–104;
(9) § 7–203;
(10) § 7–207;
(11) TITLE 7, SUBTITLE 2, PART II;
(12) § 7–302;
[(12)] (13) Title 7, Subtitle 5, Part I and Part II;
[(13)] (14) Title 7, Subtitle 7; and
[(14)] (15) § 13–101.
Article – Public Utilities
7–218. RESERVED.
7–219. RESERVED.
PART II. ENERGY EFFICIENCY AND CONSERVATION PLANS.
7–220.
Ch. 539 2024 LAWS OF MARYLAND
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(A) IN THIS PART THE FOLL OWING WORDS HAVE THE MEANINGS
INDICATED.
(B) “BEHIND–THE–METER PROGRAM ” MEANS A PROGRAM THAT I MPACTS
THE CUSTOMER SIDE OF THE UTILITY METER .
(C) “BENEFICIAL ELECTRIFIC ATION” MEANS THE REPLACEMEN T OF THE
DIRECT USE OF FOSSIL FUELS IN BUIL DINGS WITH THE USE OF ELECTRICITY IN A
MANNER THAT:
(1) REDUCES OVERALL LIFE TIME GREENHO USE GAS EMISSIONS;
(2) REDUCES CUSTOMERS ’ ENERGY COSTS ; OR
(3) ENABLES BETTER MANAG EMENT OF THE ELECTRI C
DISTRIBUTION SYSTEM .
(D) “CARBON DIOXIDE EQUIVA LENT” MEANS THE MEASUREMEN T OF A
GIVEN WEIGHT OF A GR EENHOUSE GAS THAT HA S THE SAME GLOBAL WARMING
POTENTIAL, MEASURED OVER A SPEC IFIC PERIOD OF TIME , AS 1 METRIC TON OF
CARBON DIOXIDE .
(E) “DEMAND RESPONSE PROGR AM” MEANS A PROGRAM ESTA BLISHED BY
AN ELECTRIC COMPANY , AN ELECTRICITY SUPPL IER, OR A THIRD PARTY THA T
PROMOTES CHANGES IN ELECTRIC U SAGE BY CUSTOMERS FR OM THEIR NORMAL
CONSUMPTION PATTERNS IN RESPONSE TO:
(1) CHANGES IN THE PRICE OF ELECTRICITY OVER TIME; OR
(2) INCENTIVES DESIGNED TO:
(I) INDUCE LOWER ELECTRI CITY USE AT TIMES OF HIGH
WHOLESALE MARKET PRI CES; OR
(II) ENSURE SYSTEM RELIABILITY .
(F) “DEPARTMENT ” MEANS THE DEPARTMENT OF HOUSING AND
COMMUNITY DEVELOPMENT .
(G) “ENERGY EFFICIENCY ” MEANS THE USE OF LES S ENERGY TO PERFORM
THE SAME TASK OR PRO DUCE THE SAME RESULT .
(H) “FRONT–OF–METER COMMUNITY PROG RAM” MEANS A PROGRAM THAT :
WES MOORE, Governor Ch. 539
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(1) IS SEPARATE FROM FRO NT–OF–METER UTILITY PROGRA MS;
(2) IMPACTS THE UTILITY SIDE OF THE METER ; AND
(3) DIRECTLY BENEFITS A SET OF CUSTOMERS .
(I) “FRONT–OF–METER UTILITY PROGRA M” MEANS A PROGRAM THAT
IMPACTS THE UTILITY SIDE OF A METER AND BENEF ITS ALL UTILITY CUST OMERS.
(J) “GREENHOUSE GAS ” INCLUDES:
(1) CARBON DIOXIDE ;
(2) METHANE;
(3) NITROUS OXIDE ;
(4) HYDROFLUOROCARBONS ;
(5) PERFLUOROCARBONS ; AND
(6) SULFUR HEXAFLUORIDE .
(K) “GREENHOUSE GAS EMISSIONS REDUCTION ” MEANS A REDUCTION IN
GREENHOUSE GAS EMISS IONS, MEASURED IN METRIC T ONS OF CARBON DIOXID E
EQUIVALENTS , INCLUDING:
(1) GREENHOUSE GAS EMISS IONS FROM THE GENERA TION OF
ELECTRICITY DELIVERE D TO AND CONSUMED IN THE STATE; AND
(2) LINE LOSSES FROM THE TRAN SMISSION AND DISTRIB UTION OF
ELECTRICITY, REGARDLESS OF WHETHE R THE ELECTRICITY IS GENERATED IN THE
STATE OR IMPORTED .
(L) “LOW–INCOME PROGRAM ” MEANS A PROGRAM THAT DELIVERS ENERGY
EFFICIENCY, CONSERVATION , AND GREENHOUSE GAS E MISSIONS REDUCTION
MEASURES TO REDUCE U TILITY EXPENSES FOR BUILDING OWNERS , MANAGERS, AND
TENANTS OF HOUSING W ITH RESIDENTS WHO QU ALIFY FOR THE DEPARTMENT ’S
LOW–INCOME ASSISTANCE PR OGRAMS, INCLUDING:
(1) THE EMPOWER MARYLAND LIMITED INCOME ENERGY
EFFICIENCY PROGRAM;
Ch. 539 2024 LAWS OF MARYLAND
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(2) THE MULTIFAMILY ENERGY EFFICIENCY AND HOUSING
AFFORDABILITY PROGRAM; AND
(3) THE WEATHERIZATION ASSISTANCE PROGRAM.
(M) “LOW–INCOME RESIDENTIAL ” MEANS A COMMUNITY , BUILDING, OR
HOUSEHOLD WITH RESID ENTS THAT:
(1) HAVE INCOMES BELOW 250% OF THE FEDERAL POVER TY LEVEL
AS DETERMINED BY THE FEDERAL CENSUS ; OR
(2) MEET THE ELIGIBILITY CRITERIA APPROVED BY THE
COMMISSION FOR LOW –INCOME PROGRAMS .
(N) “MIDSIZE ELECTRIC COOP ERATIVE” MEANS AN ELECTRIC
COOPERATIVE , INCLUDING A MEMBER –REGULATED COOPERATIVE , THAT:
(1) SERVES FEWER THAN 75,000 CUSTOMERS IN ITS DIS TRIBUTION
TERRITORY; BUT
(2) IS NOT A SMALL RURAL ELECTRIC COOPERATIVE .
(N) (O) “NONENERGY PROGRAM ” MEANS A PROGRAM WITH GREENHOUSE
GAS EMISSIONS REDUCT ION BENEFITS THAT AR E PRIMARILY
NONENERGY –BASED.
(O) (P) “PLAN” MEANS ANY COMBINATIO N OF BEHIND –THE–METER
PROGRAMS, FRONT–OF–METER COMMUNITY PROG RAMS, FRONT–OF–METER
UTILITY PROGRAM S, OR NONENERGY PROGRAM S THAT:
(1) ACHIEVE GREENHOUSE G AS EMISSIONS REDUCTI ONS THROUGH
ENERGY EFFICIENCY , CONSERVATION , DEMAND RESPONSE , AND BENEFICIAL
ELECTRIFICATION ; AND
(2) INCLUDE A COST RECOV ERY PROPOSAL .
(P) (Q) “TASK FORCE” MEANS THE GREEN AND HEALTHY TASK FORCE
ESTABLISHED UNDER § 7–315 OF THIS TITLE.
7–221.
THE GENERAL ASSEMBLY FINDS AND DE CLARES THAT ENERGY E FFICIENCY
IS:
WES MOORE, Governor Ch. 539
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(1) AMONG THE LEAST EXPE NSIVE WAYS TO MEET T HE ENERGY
DEMANDS OF THE STATE;
(2) A MEANS OF AFFORDABL E, RELIABLE, AND CLEAN ENERGY FOR
CONSUMERS OF MARYLAND; AND
(3) ONE METHOD TO ACHIEV E MARYLAND’S CLIMATE COMMITMENT S
FOR REDUCING STATEWI DE GREENHOUSE GAS EM ISSIONS, INCLUDING THOSE
SPECIFIED IN REQUIRED UNDER TITLE 2, SUBTITLE 12 OF THE ENVIRONMENT
ARTICLE.
7–222.
(A) SUBJECT TO REVIEW AND APPROVAL BY THE COMMISSION, EACH
ELECTRIC COMPANY , EACH GAS COMPANY OTHER THAN A GAS COM PANY SUBJECT
TO § 4–207(A) OF THIS ARTICLE , AND THE DEPARTMENT , AND, IF REQUIRED IN
ACCORDANCE WITH SUBS ECTION (C) OF THIS SECTION, EACH MIDSIZE ELECTRI C
COOPERATIVE SHALL DEVELOP AND IM PLEMENT PROGRAMS AND SERVICES IN
ACCORDANCE WITH §§ 7–223, 7–224, AND 7–225 OF THIS SUBTITLE TO ENCOURAGE
AND PROMOTE THE EFFI CIENT USE AND CONSER VATION OF ENERGY , DEMAND
RESPONSE, AND BENEFICI AL ELECTRIFICATION BY CONSUMERS , ELECTRIC
COMPANIES, GAS COMPANIES , AND THE DEPARTMENT IN SUPPORT OF THE
GREENHOUSE GAS EMISS IONS REDUCTION GOALS AND TARGETS SPECIFIED IN
REQUIRED UNDER TITLE 2, SUBTITLE 12 OF THE ENVIRONMENT ARTICLE.
(B) AS DIRECTED BY THE COMMISSION, EACH GAS COMPANY SUB JECT TO §
4–207(A) OF THIS ARTICLE, EACH MUNICIPAL ELECT RIC OR GAS UTILITY, AND EACH
SMALL RURAL ELECTRIC COOPERATIVE , AND, IF REQUIRED IN ACCOR DANCE WITH
SUBSECTION (C) OF THIS SECTION , EACH MIDSIZE ELECT RIC COOPERATIVE SHALL
INCLUDE ENERGY EFFIC IENCY AND CONSERVATI ON, DEMAND RESPONSE , AND
BENEFICIAL ELECTRIFI CATION PROGRAMS OR SERVICES AS PART OF THEIR
SERVICE TO THEIR CUS TOMERS.
(C) (1) IN ACCORDANCE WITH TH IS SUBSECTION , EACH MIDSIZE
ELECTRIC COOPERAT IVE SHALL BE SUBJECT TO EITHER SUBSECTION (A) OR
SUBSECTION (B) OF THIS SECTION.
(2) EACH MIDSIZE ELECTRIC COOPERATIVE SHALL OF FER PROGRAMS
AND SERVICES TO CUST OMERS IN ACCORDANCE WITH:
(I) SUBSECTION (B) OF THIS SECTION THRO UGH DECEMBER 31,
2026; AND
Ch. 539 2024 LAWS OF MARYLAND
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(II) ON OR AFTER JANUARY 1, 2027, AND AS THE COMMISSION
DIRECTS, EITHER SUBSECTION (A) OR SUBSECTION (B) OF THIS SECTION.
(3) NOT LATER THAN OCTOBER 1, 2025, THE COMMISSION SHALL
DETERMINE IF IT IS I N THE PUBLIC INTERES T FOR A MIDSIZE ELEC TRIC
COOPERATIVE TO OFFER PROGRAMS AND SERVICE S TO CUSTOMERS IN AC CORDANCE
WITH SUBSECTION (A) OR SUBSECTION (B) OF THIS SECTION STAR TING JANUARY 1,
2027, AND FOR ALL SUBSEQUE NT YEARS.
(4) EACH MIDSIZE ELECTRIC COOPERATIVE SHALL PR OVIDE THE
FOLLOWING INFORMAT ION TO THE COMMISSION TO ASSIST IN MAKING A
DETERMINATION UNDER PARAGRAPH (3) OF THIS SUBSECTION :
(I) ANTICIPATED COSTS AN D BILL IMPACTS;
(II) A DESCRIPTION OF THE ANTICIPATED PROGRAM
OFFERINGS;
(III) THE ANTICIPATED COST –EFFECTIVENESS OF THE
RESIDENTIAL, COMMERCIAL , AND INDUSTRIAL SECTO R SUBPORTFOLIOS BASE D ON
THE COST–EFFECTIVENESS TESTS IN § 7–225(D)(3)(I) OF THIS SUBTITLE;
(IV) THE ANTICIPATED ELEC TRICITY SAVINGS AND
GREENHOUSE GAS EMISS IONS REDUCTIONS ; AND
(V) ANY OTHER INFORMATIO N THE COMMISSION REQUIRES .
(5) THE INFORMATION PROVI DED TO THE COMMISSION UNDER
PARAGRAPH (4) OF THIS SUBSECTION S HALL BE BASED ON A P LAN TO OFFER
PROGRAMS AND SERVICE S TO CUSTOMERS THAT COMPLIES WITH THE
REQUIREMENTS OF AN E LECTRIC COMPANY SUBJ ECT TO SUBSECTION (A) OF THIS
SECTION FOR THE 3–YEAR PROGRAM CYCLE S TARTING JANUARY 1, 2027.
(6) WHEN MAKING A PUBLIC INTEREST DETERMINATI ON UNDER
PARAGRAPH (3) OF THIS SUBSECTION T HE COMMISSION, AT A MINIMUM , SHALL
CONSIDER THE REQUIRE MENTS UNDER § 7–225(D)(3) OF THIS SUBTITLE THA T ARE
CONSIDERED WHEN APPR OVING A PLAN OF AN E LECTRIC COMPANY THAT IS SUBJECT
TO SUBSECTION (A) OF THIS SECTION.
(7) STARTING OCTOBER 1, 2025, IF THE COMMISSION DETERMINES
THAT IT IS IN THE PU BLIC INTEREST FOR A MIDSIZE ELECTRIC COO PERATIVE TO BE
SUBJECT TO SUBSECTIO N (A) OF THIS SECTION , THE MIDSIZE ELECTRIC
COOPERATIVE SHALL CO MPLY WITH ALL REQUIR EMENTS OF AN ELECTRI C COMPANY WES MOORE, Governor Ch. 539
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SUBJECT TO SUBSECTIO N (A) OF THIS SECTION FOR PROGRAM CYCLES START ING ON
AND AFTER JANUARY 1, 2027.
(8) ON OR BEFORE MARCH 1 EACH YEAR, STARTING IN 2026, EACH
MIDSIZE ELECTRIC COO PERATIVE DIRECTED BY THE COMMISSION TO INCLUDE
PROGRAMS OR SERVICES UNDER SUBSECTION (B) OF THIS SECTION SHAL L SUBMIT
TO THE COMMISSION A REPORT Q UANTIFYING THE GAINS IN ENERGY EFFIC IENCY
AND REDUCTIONS IN GR EENHOUSE GAS EMISSIO NS ACHIEVED DURING T HE
PREVIOUS YEAR .
(C) (D) THE COMMISSION SHALL ENCO URAGE AND PROMOTE TH E
EFFICIENT USE AND CO NSERVATION OF ENERGY IN SUPPORT OF THE GR EENHOUSE
GAS EMISSIONS REDUCT ION GOALS AND TARGET S SPECIFIED IN REQUIRED UNDER
TITLE 2, SUBTITLE 12 OF THE ENVIRONMENT ARTICLE, ESTABLISHED BY THE
COMMISSION UNDER § 7–223(B) OF THIS SUBTITLE, AND SPECIFIED IN § 7–224(A)(2)
OF THIS SUBTITLE BY:
(1) REQUIRING EACH ELECT RIC COMPANY AND GAS COMPANY TO
ESTABLISH ANY PROGRA M OR SERVICE THAT TH E COMMISSION DETERMINES TO BE
APPROPRIATE AND COST –EFFECTIVE;
(2) ADOPTING RATE –MAKING POLICIES THAT PROVIDE, THROUGH A
SURCHARGE LINE ITEM ON CUSTOMER BILLS :
(I) FULL COST RECOVERY OF REA SONABLY INCURRED COS TS
FOR PROGRAMS AND SER VICES ESTABLISHED UN DER ITEM (1) OF THIS SUBSECTION ,
INCLUDING FULL RECOV ERY ON A CURRENT BAS IS ON OR BEFORE JANUARY 1, 2028;
(II) ON OR BEFORE DECEMBER 31, 2032, THE ELIMINATION OF
ANY UNPAID COSTS AND UNAMORTIZED COSTS TH AT:
1. A. EXISTED ON DECEMBER 31, 2024; OR
B. WERE INCURRED BEFORE JANUARY 1, 2028; AND
2. WERE ACCRUED FOR THE PURPOSE OF ACHIEVING
STATUTORY TARGETS FO R ANNUAL INCREMENTAL GROSS ENERGY SAVINGS ;
(III) COMPENSATION FOR ANY UNPAID COSTS AND
UNAMORTIZED COSTS UN DER ITEM (II) OF THIS ITEM AT NOT MORE THAN EACH
ELECTRIC COMPANY ’S AND EACH GAS COMPA NY’S AVERAGE COST OF OU TSTANDING
DEBT; AND
Ch. 539 2024 LAWS OF MARYLAND
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(IV) REASONABLE FINANCIAL PERFORMANCE INCENTIV ES AND
PENALTIES FOR INVEST OR–OWNED ELECTRIC COMPA NIES AND GAS COMPANIES , AS
APPROPRIATE ; AND
(3) ENSURING THAT ADOPTI ON OF ELECTRIC CUSTO MER CHOICE
UNDER SUBTITLE 5 OF THIS TITLE AND GA S CUSTOMER CHOICE UN DER SUBTITLE 6
OF THIS TITLE DOES N OT ADVERSELY IMPACT THESE GOALS AND TARG ETS.
(E) THE COMMISSION SHALL, BY REGULATION OR ORD ER, REQUIRE EACH
ELECTRIC COMPANY AND EACH GAS COMPANY SUB JECT TO SUBSECTION (A) OF THIS
SECTION THAT HAS SUB MITTED TO THE COMMISSION, ON OR BEFORE JULY 1, 2024,
A PLAN FOR ACHIEVING ELECTRICITY OR GAS S AVINGS AND DEMAND RE DUCTION
TARGETS TO DISCLOSE THE FOLLOWING INFORM ATION IN A FORM AND FORMAT
READILY UNDERSTANDAB LE TO THE AVERAGE CU STOMER:
(1) THAT THE SURCHARGE I MPOSED IN ACCORDANCE WITH
SUBSECTION (D) OF THIS SECTION INCL UDES THE COST OF PAY ING DOWN THE
UNPAID COSTS AND U NAMORTIZED COSTS THA T WERE ACCRUED OVER TIME BY
PROGRAMS AND SERVICE S REQUIRED BY THE COMMISSION DATING BAC K TO 2008;
AND
(2) THE PERIOD OF TIME T HAT THE SURCHARGE WI LL INCLUDE
EXCESS CHARGES TO PA Y DOWN THE UNPAID CO STS AND UNAMORTIZED COSTS.
7–223.
(A) ON OR BEFORE JANUARY 1, 2025, AND ON OR BEFORE JANUARY 1
EVERY 3 YEARS, STARTING IN 2027, THE COMMISSION SHALL , BY REGULATION OR
ORDER, REQUIRE EACH ELECTRI C COMPANY AND EACH G AS COMPANY SUBJECT TO
§ 7–222(A) OF THIS SUBTITLE TO DEVELOP AND IMPLE MENT A PLAN THAT:
(1) COVERS EACH APPROPRIATE RATEPAYER CLASS CLASSES;
(2) STARTING IN 2027, COVERS A 3–YEAR PROGRAM CYCLE ; AND
(3) ACHIEVES THE GREENHO USE GAS EMISSIONS RE DUCTION
TARGET ESTABLISHED F OR THE ELECTRIC COMP ANY OR GAS COMPANY U NDER
SUBSECTION (B) OF THIS SECTION THRO UGH COST–EFFECTIVE ENERGY EFF ICIENCY
AND CONSERVATION PRO GRAMS AND SERVICES , DEMAND RESPONSE PROG RAMS
AND SERVICES, AND BENEFICIAL ELECT RIFICATION PROGRAMS AND SERVICES.
(B) (1) FOR 2025 AND 2026, AND FOR EACH 3–YEAR PROGRAM CYCLE
STARTING IN 2027, THE COMMISSION SHALL ESTA BLISH A GREENHOUSE G AS WES MOORE, Governor Ch. 539
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EMISSIONS REDUCTION TARGET FOR EACH ELEC TRIC COMPANY AND EAC H GAS
COMPANY SUBJECT TO § 7–222(A) OF THIS SUBTITLE AS PROVIDED IN THIS
SUBSECTION.
(2) WHEN ESTABLISHING GRE ENHOUSE GAS EMISSION S REDUCTION
TARGETS UNDER THIS S UBSECTION, THE COMMISSION SHALL MEAS URE THE
GREENHOUSE GAS EMISS IONS FROM ELECTRICIT Y AND GAS, AND THE INTENSITIES
OF THOSE EMISSIONS , USING CURRENT DATA OBTAINED FROM PJM
INTERCONNEC TION ON MARGINAL GRE ENHOUSE GAS EMISSION S RATES FROM THE
PREVIOUS YEAR AND PROJECTIONS FROM THE DEPARTMENT OF THE
ENVIRONMENT .
(3) AS A BASELINE FOR DET ERMINING GREENHOUSE GAS EMISSIONS
REDUCTIONS UNDER THI S SUBSECTION , THE COMMISSION SHALL USE THE
GREENHOUSE GAS EMISSIONS RESULTING FROM THE D IRECT CONSUMPTION OF GAS
AND ELECTRICITY IN MARYLAND BUILDINGS IN 2020, AS DETERMINED BY THE
DEPARTMENT OF THE ENVIRONMENT .
(4) FOR THE PERIOD 2025–2033, THE COMMISSION SHALL
DETERMINE AN OVERALL STATEWIDE GREENHOUSE GAS EMISS IONS REDUCTION
TARGET BASED ON AN A VERAGE ANNUAL REDUCT ION OF AT LEAST 1.8% OF THE
BASELINE DETERMINED UNDER PARAGRAPH (3) OF THIS SUBSECTION .
(3) THE GREENHOUSE GAS EM ISSIONS REDUCTION TA RGETS
ESTABLISHED UNDER TH IS SUBSECTION SHALL BE MEASURED :
(I) IN METRIC TONS; AND
(II) RELATIVE TO THE GREE NHOUSE GAS EMISSIONS
ASSOCIATED WITH THE ELECTRIC COMPANY ’S OR GAS COMPANY ’S
WEATHER–NORMALIZED GROSS RET AIL SALES AND LOSSES IN A BASELINE YEAR , AS
DETERMINED BY THE COMMISSION.
(4) BY THE DATES SPECIFIE D IN § 7–225(A) OF THIS SUBTITLE , THE
COMMISSION SHALL ESTA BLISH GREENHOUSE GAS EMISSIONS REDUCTION
TARGETS FOR EACH ELE CTRIC COMPANY PLAN T HAT WILL ACHIEVE AT LEAST THE
GREENHOUSE GAS EMISS IONS REDUCTION EQUIV ALENT, MEASURED ON A
LIFECYCLE BASIS USING THE EMISSION INTENSI TIES UNDER PARAGRAPH (2) OF
THIS SUBSECTION , OF THE FOLLOWING ANN UAL ELECTRICITY SAVI NGS
PERCENTAGES , CALCULATED AS A PERC ENTAGE OF THE ELECTR IC COMPANY’S 2016
WEATHER–NORMALIZED GROSS RET AIL SALES AND ELECTR ICITY LOSSES:
(I) 2.0% IN 2024;
Ch. 539 2024 LAWS OF MARYLAND
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(II) 2.25% EACH YEAR IN 2025 AND 2026; AND
(III) 2.5% EACH YEAR IN 2027 AND AFTER.
(5) ON OR BEFORE JANUARY 1, 2025, AND ON OR BEFORE JANUARY
1 EVERY 3 YEARS, STARTING IN 2027, THE COMMISSION SHALL ESTA BLISH
GREENHOU SE GAS EMISSIONS RED UCTION TARGETS FOR E ACH GAS COMPANY PLAN
THAT WILL ACHIEVE AT LEAST THE GREENHOUSE GAS EMISSIONS REDUCT ION
EQUIVALENT, MEASURED ON A LIFECY CLE BASIS USING THE EMISSION INTENSITIES
UNDER PARAGRAPH (2) OF THIS SUBSECTION , OF THE GAS SAVIN GS TARGETS
ESTABLISHED BY THE COMMISSION ACHIEVED BY THE GAS COMPANY FOR THE
2021–2023 PROGRAM CYCLE .
(6) THE COMMISSION SHALL TAKE INTO CONSIDERATION T HE MOST
RECENT FINAL PLAN AD OPTED UNDER § 2–1205 OF THE ENVIRONMENT ARTICLE
WHEN ESTABLISHING TH E GREENHOUSE GAS EMISS IONS REDUCTION TARGE TS
UNDER THIS SUBSECTIO N.
(7) FOR 2025 AND 2026:
(I) THE COMMISSION SHALL , AFTER MAKING APPROPR IATE
FINDINGS, DETERMINE WHETHER EX ISTING ELECTRIC COMP ANY AND GAS COMPANY
PLANS MUST BE MODIFI ED TO COMPLY WITH § 7–225(D) OF THIS SUBTITLE; AND
(II) ELECTRIC COMPANIES A ND GAS COMPANIES :
1. SHALL PROVIDE INFORM ATION AS REQUIRED BY THE
COMMISSION TO ASSIST IN MAKING THE DETERM INATION UNDER ITEM (I) OF THIS
PARAGRAPH ; AND
2. ARE ONLY REQUIRED TO FILE NEW PLANS IN
ACCORDANCE WITH THIS SECTION IF DIRECTED BY THE COMMISSION.
(C) THE COMMISSION MAY GIVE P RIORITY TO LONG –LIVED GREENHOUSE
GAS EMISSIONS REDUCT ION MEASURES IN THE PLANS BY ESTABLISHIN G A MINIMUM
WEIGHTED AVERAGE MEA SURE LIFE FOR THE PL AN OF EACH ELECTRIC COMPAN Y
AND GAS COMPANY .
(D) CONTRIBUTIONS TO GREE NHOUSE GAS EMISSIONS REDUCTION GOALS
AND TARGETS IN A PLA N OF AN ELECTRIC COM PANY OR A GAS COMPAN Y:
(1) MAY, NOTWITHSTANDING § 7–222(C)(2) § 7–222(D)(2) OF THIS
SUBTITLE, INCLUDE RECOVERY OF THE REASONABLE AN D PRUDENT COSTS FROM WES MOORE, Governor Ch. 539
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PROGRAMS THAT ARE NO T BEHIND–THE–METER PROGRAMS IN A BASE RATE
PROCEEDING , SUBJECT TO COMMISSION APPROVAL ; AND
(2) MAY NOT INCLUDE THE INCREASED ADOPTION O F ELECTRIC
VEHICLES.
(E) BEGINNING JANUARY 1, 2025, AT LEAST 80% OF THE GREENHOUSE GA S
EMISSIONS REDUCTIONS COUNTED TOWARD EACH ELECTRIC COMPANY ’S AND EACH
GAS COMPANY ’S GREENHOUSE GAS EMI SSIONS REDUCTION TAR GETS ESTABLISHED
UNDER THIS SECTION S HALL COME FROM BEHIN D–THE–METER PROGRAMS , WHICH
MAY INCLUDE DEPLO YMENT OF ENERGY STOR AGE FACILITIES.
7–224.
(A) (1) BEGINNING JANUARY 1, 2025, AND ON OR BEFORE JANUARY 1
EVERY 3 YEARS THEREAFTER , STARTING IN 2027, THE DEPARTMENT SHALL
PROCURE OR PROVIDE T O LOW– AND MODERATE –INCOME LOW–INCOME
INDIVIDUALS ENERGY EFFICIENCY AND CONSERVATION PROGRAM S AND SERVICES,
DEMAND RESPONSE PROG RAMS AND SERVICES , AND BENEFICIAL ELECT RIFICATION
PROGRAMS AND SERVICE S THAT ACHIEVE THE GREENHOUSE GAS EMISS IONS
REDUCTION TARGETS ES TABLISHED FOR THE DEPARTMENT UNDER PARA GRAPH (2)
OF THIS SUBSECTION .
(2) FOR THE PERIOD 2025–2033, THE PROGRAMS AND SER VICES
REQUIRED UNDER PARAG RAPH (1) OF THIS SUBSECTION S HALL BE ON A
TRAJECTORY TO ACHIEV E GREENHOUSE GAS RED UCTIONS AFTER 2027 OF AT LEAST
0.9% OF THE BASELINE DETE RMINED UNDER SUBSECT ION (B) OF THIS SECTION.
(3) (I) WHEN ESTABLISHING GRE ENHOUSE GAS EMISSION S
REDUCTION TARGETS UN DER THIS SUBSECTION , THE COMMISSION SHALL MEAS URE
THE GREENHOUSE GAS E MISSIONS FROM ELECTR ICITY USING CURRENT DATA AND
PROJECTIONS FROM THE DEPARTMENT OF THE ENVIRONMENT .
(II) THE GREENHOUSE GAS EM ISSIONS REDUCTION TA RGETS
ESTABLISHED UNDER TH IS SUBSECTION SHALL BE MEASURED IN METRI C TONS.
(3) (4) THE GREENHOUSE GAS RE DUCTIONS ACHIEVED TO MEET
THE TARGETS ESTABLIS HED UNDER PARAGRAPH (2) OF THIS SUBSECTION SHALL
COUNT TOWARD THE ACH IEVEMENT OF THE GREE NHOUSE GAS REDUCTION TARGET
ESTABLISHED UNDER § 7–223(B) OF THIS SUBTITLE .
(5) THE TARGET GREENHOUSE GAS SAVINGS SHALL BE ACHIEVED
BASED ON THE 3–YEAR AVERAGE OF THE DEPARTMENT ’S PLAN SUBMITTED IN
ACCORDANCE WITH SUBS ECTION (D) OF THIS SECTION. Ch. 539 2024 LAWS OF MARYLAND
– 14 –
(6) FOR 2025 AND 2026:
(I) THE COMMISSION SHALL , AFTER MAKING APPROPR IATE
FINDINGS, DETERMINE WHETHER TH E DEPARTMENT ’S EXISTING 2024–2026 PLAN
MUST BE MODIFIED TO COMPLY WITH :
1. THE TARGETS ESTA BLISHED IN THIS SUBS ECTION;
AND
2. § 7–225(D) OF THIS SUBTITLE; AND
(II) THE DEPARTMENT :
1. SHALL PROVIDE INFORM ATION AS REQUIRED BY THE
COMMISSION TO ASSIST IN MAKING THE DETERM INATION IN ITEM (I) OF THIS
PARAGRAPH ; AND
2. IS ONLY REQUI RED TO FILE NEW PLAN S IN
ACCORDANCE WITH SUBS ECTION (D) OF THIS SECTION AND § 7–225 OF THIS
SUBTITLE IF DIRECTED BY THE COMMISSION.
(B) AS A BASELINE FOR DET ERMINING GREENHOUSE GAS EMISSIONS
REDUCTION TARGETS UN DER THIS SECTION , THE COMMISSION SHALL USE THE
GREENHOUSE GAS EMISSIONS RESULTING FROM THE DIRECT CONS UMPTION OF GAS
AND ELECTRICITY BY LOW– AND MODERATE –INCOME LOW–INCOME RESIDENTIAL
HOUSEHOLDS IN 2020 2016, AS DETERMINED BY THE DEPARTMENT OF THE
ENVIRONMENT .
(C) (1) THE DEPARTMENT MAY PROCUR E OR PROVIDE SAVINGS T HAT
ARE ACHIEVED THROUGH FUNDING SOURCES THAT MEET THE STANDARDS O F
PROGRAM FUNDING THRO UGH UTILITY RATES OR THE U.S. DEPARTMENT OF
ENERGY.
(2) THE DEPARTMENT MAY USE TH E SAVINGS ACHIEVED T HROUGH
ALL FUNDING SOURCES TOWARD CALCULATIN G THE TARGETED GREEN HOUSE GAS
REDUCTIONS IF THE FU NDING SOURCES MEET T HE STANDARDS OF PROG RAMS
FUNDED THROUGH :
(I) A SURCHARGE UNDER § 7–222 OF THIS SUBTITLE; OR
(II) THE U.S. DEPARTMENT OF ENERGY.
WES MOORE, Governor Ch. 539
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(D) ON OR BEFORE SEPTEMBER 1 IF DIRECTED BY THE COMMISSION IN
2024, AND ON OR BEFORE SEPTEMBER 1 EVERY 3 YEARS, BEGINNING STARTING IN
2024 2026, THE DEPARTMENT SHALL SUBM IT ITS PLANS FOR ANY PROGRAMS OR
SERVICES PROCURED OR PROVIDED UNDER SUBSE CTION (A) OF THIS SECTION TO
THE COMMISSION FOR REVIEW AND APPROVAL UNDER § 7–225 OF THIS SUBTITLE.
(E) FOR WEATHERIZATION OF LEASED OR RENTED RES IDENCES, THE
DEPARTMENT SHALL ADOP T REGULATIONS TO ENS URE THAT:
(1) THE BENEFITS OF WEAT HERIZATION ASSISTANC E, INCLUDING
UTILITY BILL REDUCTI ON AND PRESERVATION OF AFFORDABLE HOUSING S TOCK,
ACCRUE PRIMARILY TO LOW–INCOME TENANTS OCCUP YING A LEASED OR REN TED
RESIDENCE; AND
(2) THE RENT ON THE RESI DENCE IS NOT INCREAS ED AND THE
TENANT IS NOT EVICTE D AS A RESULT OF WEA THERIZATION PROVIDED UNDER THIS
SECTION.
(F) THE PROGRAMS AND SERVI CES PROVIDED UNDER S UBSECTION (A) OF
THIS SECTION MAY NOT USE THERMAL INSULATI NG MATERIALS FOR BUI LDING
ELEMENTS, INCLUDING WALLS , FLOORS, CEILINGS, ATTICS, AND ROOF INSULATION ,
THAT CONTAIN FORMALD EHYDE IF THE FORMALD EHYDE:
(1) WAS INTENTIONALLY ADDED ; OR
(2) IS PRESENT IN THE PR ODUCT AT GREATER THA N 0.1% BY WEIGHT.
(G) THE DEPARTMENT ’S APPROVED CONTRACTO RS USED FOR THE
PROGRAMS UNDER THIS SECTION SHALL MEET T HE FOLLOWING JOB
REQUIREMENTS :
(1) PAY AT LEAST 150% OF THE STATE MINIMUM WAGE ;
(2) PROVIDE CAREER ADVAN CEMENT TRAINING ;
(3) AFFORD EMPLOYEES THE RIGHT TO BARGAIN COL LECTIVELY FOR
WAGES AND BENEFITS ;
(4) PROVIDE PAID LEAVE ;
(5) BE CONSIDERED COVERE D EMPLOYMENT FOR PUR POSES OF
UNEMPLOYMENT INSURAN CE BENEFITS IN ACCORDANCE WITH TITLE 8 OF THE
LABOR AND EMPLOYMENT ARTICLE;
Ch. 539 2024 LAWS OF MARYLAND
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(6) ENTITLE THE EMPLOYEE TO WORKERS’ COMPENSATION BENEFIT S
IN ACCORDANCE WITH TITLE 9 OF THE LABOR AND EMPLOYMENT ARTICLE;
(7) BE COMPLIANT WITH FE DERAL AND STATE WAGE AND HOUR L AWS
FOR THE PREVIOUS 3 YEARS;
(8) OFFER EMPLOYER –PROVIDED HEALTH INSU RANCE BENEFITS
WITH MONTHLY PREMIUM S THAT DO NOT EXCEED 8.5% OF THE EMPLOYEE ’S NET
MONTHLY EARNINGS ; AND
(9) OFFER RETIREMENT BEN EFITS.
(H) (1) THE DEPARTMENT SHALL DEVE LOP A PLAN TO COOR DINATE
FUNDING SOURCES AND LEVERAGE THE GREATES T FUNDING POSSIBLE T O SUPPORT
A WHOLE HOME APPROAC H BY ADDRESSING :
(I) HEALTH AND SAFETY UP GRADES;
(II) WEATHERIZATION ;
(III) ENERGY EFFICIENCY ; AND
(IV) OTHER GENERAL MAINTE NANCE FOR LOW –INCOME
HOUSING.
(2) THE PLAN SHALL COORDI NATE FUNDING AMONG :
(I) THE STRATEGIC ENERGY INVESTMENT FUND;
(II) FEDERAL WEATHERIZATI ON ASSISTANCE PROGRA MS;
(III) RATEPAYER CONTRIBUTI ONS TO:
1. THE EMPOWER MARYLAND LIMITED INCOME
ENERGY EFFICIENCY PROGRAM; AND
2. THE MULTIFAMILY ENERGY EFFICIENCY AND
HOUSING AFFORDABILITY PROGRAM;
(IV) THE MARYLAND AFFORDABLE HOUSING TRUST FUND;
(V) U.S. DEPARTMENT OF HOUSING AND URBAN
DEVELOPMENT PROGRAMS , INCLUDING:
WES MOORE, Governor Ch. 539
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1. COMMUNITY DEVELOPMENT BLOCK GRANTS;
2. THE HOME INVESTMENT PARTNERSHIP GRANTS
PROGRAM; AND
3. LEAD HAZARD CONTROL AND HEALTHY HOMES
GRANTS;
(VI) U.S. DEPARTMENT OF AGRICULTURE PROGRAMS ,
INCLUDING THE HOME REPAIR PROGRAM;
(VII) THE HEALTHY HOMES FOR HEALTHY KIDS PROGRAM;
(VIII) THE ENERGY EFFICIENCY AND CONSERVATION BLOCK
GRANT PROGRAM ;
(IX) STATE APPROPRIATIONS ;
(X) FUNDS FROM THE FEDER AL INFLATION REDUCTION ACT OF
2022; AND
(XI) ANY OTHER SOURCE OF FUNDING THAT THE DEPARTMENT
OR THE TASK FORCE IDENTIFIES .
(3) THE DEPARTMENT SHALL ENSU RE, FOR ANY WHOLE HOME
RETROFITS ASSOCIATED WITH WEATHERIZATION PROVIDED OR DEVELOPE D UNDER
THE PLAN, THAT:
(I) THERE IS A SINGLE PO INT OF CONTACT FOR LOW– AND
MODERATE–INCOME LOW–INCOME RESIDENTIAL HOUSEHOL DS; AND
(II) SERVICES ARE OFFERED IN ANY LANGUAGE NEED ED BY THE
LOW– AND MODERATE –INCOME LOW–INCOME RESIDENTIAL HOUSEHOL DS.
(4) THE DEPARTMENT SHALL COLL ABORATE WITH THE MEM BERS OF
THE TASK FORCE AND IDENTIFY OT HER INTERESTED PAR TIES TO DEVELOP THE
PLAN.
(5) ON OR BEFORE DECEMBER 31, 2024, THE DEPARTMENT SHALL
SUBMIT THE PLAN TO T HE GOVERNOR AND , IN ACCORDANCE WITH § 2–1257 OF THE
STATE GOVERNMENT ARTICLE, THE GENERAL ASSEMBLY.
Ch. 539 2024 LAWS OF MARYLAND
– 18 –
(I) THE DEPARTMENT , THE MARYLAND ENERGY ADMINISTRATION, AND
OTHER STATE UNITS SHALL APP LY FOR ALL FEDERAL F UNDING THAT MAY BECO ME
AVAILABLE TO CARRY O UT THIS SECTION.
(J) (1) THE DEPARTMENT SHALL COLL ABORATE WITH THE MEM BERS OF
THE TASK FORCE TO DEVELOP A PL AN, INCLUDING A BUDGET , A TIMELINE, AND
POTENTIAL FUNDING SO URCES, TO PROVIDE ENERGY EF FICIENCY RETROFITS T O
ALL LOW–INCOME HOUSEHOLDS BY 2032.
(2) ON OR BEFORE DECEMBER 1, 2024, THE DEPARTMENT , IN
COLLABORATION WITH T HE TASK FORCE, SHALL SUBMIT THE PLA N TO THE
GENERAL ASSEMBLY, IN ACCORDANCE WITH § 2–1257 OF THE STATE GOVERNMENT
ARTICLE.
7–225.
(A) AS SOON AS POSSIBLE I N 2024, AND AT LEAST 8 MONTHS BEFORE THE
FILING DEADLINE FOR PLANS AFTER 2024, THE COMMISSION SHALL ISSU E AN
ORDER THAT FULLY ALLOCATES AMON G ELECTRIC COMPANIES , GAS COMPANI ES,
AND THE DEPARTMENT THE TOTAL AMOUNT OF THE OVERAL L STATEWIDE
DETERMINES THE GREENHOUSE GAS EMISS IONS REDUCTION TARGET DETERMINED
TARGETS REQUIRED UNDER § 7–223(B) OF THIS SUBTITLE AND THE GREENHOUSE
GAS EMISSIONS REDUCT IONS SPECIFIED IN REQUIRED UNDER § 7–224(A)(2) OF THIS
SUBTITLE.
(B) (1) (I) ON OR BEFORE JULY 1 IF DIRECTED BY THE COMMISSION
IN 2024, AND ON OR BEFORE JULY 1 EVERY 3 YEARS, BEGINNING STARTING IN 2024
2026, EACH ELECTRIC COMPAN Y AND EACH GAS COMPA NY SUBJECT TO § 7–222(A)
OF THIS SUBTITLE THAT SUBMITTED A PLA N FOR ACHIEVING ELEC TRICITY SAVINGS
AND DEMAND REDUCTION TARGETS TO THE COMMISSION BEFORE JULY 1, 2024,
AND THE DEPARTMENT , SHALL CONSULT WITH T HE TECHNICAL STAFF O F THE
COMMISSION, THE OFFICE OF PEOPLE’S COUNSEL, THE MARYLAND ENERGY
ADMINISTRATION , AND THE DEPARTMENT OF THE ENVIRONMENT REGARDING THE
DESIGN AND ADEQUACY OF ITS PLANS FOR ACH IEVING THE GREENHOUS E GAS
EMISSIONS REDUCTION TARGETS ESTABLISHED BY THE COMMISSION UNDER §
7–223(A) § 7–223(B) OF THIS SUBTITLE AND SPECIFIED IN § 7–224(A)(2) OF THIS
SUBTITLE.
(II) ON OR BEFORE OCTOBER 1, 2024, AND ON OR BEFORE JULY
1 EVERY 3 YEARS, BEGINNING STARTING IN 2027 2026, EACH ELECTRIC COMPAN Y
AND EACH GAS COMPANY SUBJECT TO § 7–222(A) OF THIS SUBTITLE THAT DID NOT
SUBMIT A PLAN FOR ACHIEVING ELECTRICIT Y SAVINGS AND DEMAND REDUCTION WES MOORE, Governor Ch. 539
– 19 –
TARGETS TO THE COMMISSION BEFORE JULY 1, 2024, SHALL COMPLY WITH TH E
CONSULTING REQUIREME NTS UNDER SUBPARAGRA PH (I) OF THIS PARAGRAPH .
(2) EACH ELECTRIC COMPANY , AND EACH GAS COMPANY , AND THE
DEPARTMENT SUBJECT TO § 7–222(A) OF THIS SUBTITLE SHALL PROVIDE THE
TECHNICAL STAFF OF T HE COMMISSION, THE OFFICE OF PEOPLE’S COUNSEL, THE
MARYLAND ENERGY ADMINISTRATION , AND THE DEPARTMENT OF THE
ENVIRONMENT WITH ANY ADDITIONAL INFORMATI ON REGARDING ITS P LAN, AS
REQUESTED .
(C) (1) (I) ON OR BEFORE SEPTEMBER 1 IF DIRECTED BY THE
COMMISSION IN 2024, AND ON OR BEFORE SEPTEMBER 1 EVERY 3 YEARS,
BEGINNING STARTING IN 2024 2026, EACH ELECTRIC COMPAN Y AND EACH GAS
COMPANY SUBJECT TO § 7–222(A) OF THIS SUBTITLE THAT SUBMITTED A PLA N FOR
ACHIEVING ELECTRICIT Y SAVINGS AND DEMAND REDUCTION TARGETS TO THE
COMMISSION BEFORE JULY 1, 2024, AND THE DEPARTMENT , SHALL SUBMIT ITS
PLAN TO THE COMMISSION.
(II) ON OR BEFORE DECEMBER 1, 2024, AND ON OR BEFORE
SEPTEMBER 1 EVERY 3 YEARS, BEGINNING STARTING IN 2027 2026, EACH ELECTRIC
COMPANY AND EACH GAS COMPANY THAT DID NOT SUBMIT A PLAN FOR AC HIEVING
ELECTRICITY SAVINGS AND DEMAND R EDUCTION TARGETS TO THE COMMISSION
BEFORE JULY 1, 2024, SHALL SUBMIT ITS PLA N TO THE COMMISSION.
(2) EACH PLAN SHALL DETAI L A PROPOSAL FOR ACH IEVING
GREENHOUSE GAS EMISS IONS REDUCTION TARGE TS FOR 3 SUBSEQUENT CALENDAR
YEARS.
(3) (I) EACH PLAN SHALL :
1. INCLUDE:
A. A DESCRIPTION OF THE PROPOSED PROGRAMS AN D
SERVICES;
B. ANTICIPATED COSTS ;
C. PROJECTED BENEFITS , INCLUDING GREENHOUSE
GAS EMISSIONS REDUCT IONS, ELECTRICITY SAVINGS , AND GAS SAVINGS ; AND
D. ANY OTHER INFORMATIO N REQUESTED BY THE
COMMISSION; AND
Ch. 539 2024 LAWS OF MARYLAND
– 20 –
2. ADDRESS RESIDENTIAL , COMMERCIAL , AND
INDUSTRIAL SECTORS AS APPROPRIA TE, INCLUDING LOW –INCOME COMMUNITIES
AND LOW– TO MODERATE –INCOME COMMUNITIES .
(II) A PLAN OF THE DEPARTMENT SHALL INCL UDE:
1. A DEFINITION OF “LOW– OR MODERATE –INCOME
LOW–INCOME INDIVIDUAL” TO BE USED IN THE PR OCUREMENT OR PROVISION OF
ENERGY EFFICIENCY , CONSERVATION , AND GREENHOUSE GAS E MISSIONS
REDUCTION PROGRAMS A ND SERVICES;
2. A DESCRIPTION OF THE STEPS PROPOSED TO EN SURE
INSULATION MATERIALS MEET THE REQUIREMENT S UNDER § 7–224 OF THIS
SUBTITLE; AND
3. A PROPO SED AVERAGE LIFETIME MEASURE
THRESHOLD THAT :
A. ENCOURAGES THE DELIV ERY OF INSULATION AN D
WEATHERIZATION MEASU RES; AND
B. IS DEVELOPED THROUGH A STAKEHOLDER
ENGAGEMENT PROCESS .
(III) A PLAN OF AN ELECTRIC COMPANY SHALL INCLUD E THE
PROVISION OR PROCUREMENT OF PR OGRAMS AND SERVICES FOR RESIDENTIAL
BENEFICIAL ELECTRIFI CATION.
(D) (1) THE COMMISSION SHALL REVI EW THE PLAN OF EACH ELECTRIC
COMPANY, EACH GAS COMPANY , AND THE DEPARTMENT TO DETERMI NE WHETHER
THE PLAN IS ADEQUATE AND COST–EFFECTIVE IN ACHIEVING THE GREE NHOUSE
GAS EMISSIONS REDUCT ION TARGETS ESTABLIS HED BY THE COMMISSION UNDER §
7–223(B) OF THIS SUBTITLE AND SPECIFIED IN § 7–224(A)(2) §§ 7–223(B) AND
7–224(A)(2) OF THIS SUBTITLE.
(2) THE COMMISSION SHALL CONS IDER ANY WRITTEN FIN DINGS
PROVIDED BY THE MARYLAND ENERGY ADMINISTRATION , THE DEPARTMENT OF
THE ENVIRONMENT , AND THE OFFICE OF PEOPLE’S COUNSEL REGARDING THE
DESIGN AND ADEQUACY OF THE PLAN.
(3) SUBJECT TO PARAGRAPH (4) OF THIS SUBSECTION , IN
APPROVING, MODIFYING, OR DENYING THE PLAN OF AN ELECT RIC COMPANY OR A
GAS COMPANY , THE COMMISSION SHALL CONS IDER: WES MOORE, Governor Ch. 539
– 21 –
(I) THE COST –EFFECTIVENESS OF THE RESIDENTIAL,
COMMERCIAL , AND INDUSTRIAL SECTO R SUBPORTFOLIOS BY U SING:
1. THE PRIMARY STATE JURISDICTION –SPECIFIC TEST,
AS DEVELOPED , UPDATED, OR APPROVED BY THE COMMISSION, TO DETERMINE THE
COST–EFFECTIVENESS OF A P ROGRAM OR SERVICE PR OSPECTIVELY, INCLUDING
CONSIDERATION OF :
A. PARTICIPANT NONENERG Y BENEFITS;
B. UTILITY NONENERGY BE NEFITS; AND
C. SOCIETAL NONEN ERGY BENEFITS ; AND
2. A TOTAL RESOURCE COS T TEST TO COMPARE TH E
ELECTRICITY SAVINGS AND DEMAND REDUCTION TARGETS OF THE PROGR AM OR
SERVICE WITH THE RES ULTS OF SIMILAR PROG RAMS OR SERVICES IMP LEMENTED
IN OTHER JURISDICTIO NS, INCLUDING:
A. PARTICIPANT NONENERGY BENEFI TS; AND
B. UTILITY NONENERGY BE NEFITS;
(II) THE IMPACT ON RATES OF EACH RATEPAYER CL ASS;
(III) THE IMPACT ON JOBS ;
(IV) THE IMPACT ON THE EN VIRONMENT; AND
(V) THE IMPACT ON THE GR EENHOUSE GAS EMISSIO NS
REDUCTION TARGETS SP ECIFIED IN TITLE 2, SUBTITLE 12 OF THE ENVIRONMENT
ARTICLE, ESTABLISHED BY THE COMMISSION UNDER § 7–223(B) OF THIS SUBTITLE,
AND SPECIFIED IN § 7–224(A)(2) §§ 7–223(B) AND 7–224(A)(2) OF THIS SUBTITLE.
(4) NONENERGY BENEFITS CO NSIDERED UNDER PARAG RAPH (3) OF
THIS SUBSECTION SHAL L BE QUANTIFIABLE AN D DIRECTLY RELATED T O A
PROGRAM OR SERVICE .
(5) (I) IN APPROVING, MODIFYING, OR DENYING THE PLAN OF THE
DEPARTMENT , THE COMMISSION SHALL CONS IDER:
1. SUBJECT TO SUBPARAGR APH (II) OF THIS
PARAGRAPH , THE COST–EFFECTIVENESS OF THE PLAN BY USING THE PR IMARY Ch. 539 2024 LAWS OF MARYLAND
– 22 –
STATE JURISDICTION –SPECIFIC TEST, AS DEVELOPED , UPDATED, OR APPROVED BY
THE COMMISSION;
2. THE IMPACT ON RATES OF EACH RATEPAYER CL ASS;
3. THE IMPACT ON JOBS ;
4. THE IMPACT ON THE EN VIRONMENT; AND
5. THE IMPACT ON THE GR EENHOUSE GAS EMISSIO NS
TARGETS SPECIFIED IN TITLE 2, SUBTITLE 12 OF THE ENVIRONMENT ARTICLE,
ESTABLISHED BY THE COMMISSION UNDER § 7–223(B) OF THIS SUBTITLE , AND
SPECIFIED IN § 7–224(A)(2) OF THIS SUBTITLE.
(II) THE PROGRAMS AND SERV ICES OFFERED BY THE
DEPARTMENT ARE NOT RE QUIRED TO BE COST –EFFECTIVE.
(E) THE DEPARTMENT OF THE ENVIRONMENT SHALL PRE PARE AND
SUBMIT TO THE COMMISSION AN ANALYSI S REGARDING THE ADEQUACY OF THE
PLAN IN SUPPORTING T HE STATE’S GREENHOUSE GAS EMI SSIONS REDUCTION
GOALS SPECIFIED IN TITLE 2, SUBTITLE 12 OF THE ENVIRONMENT ARTICLE,
ESTABLISHED BY THE COMMISSION UNDER § 7–223(B) OF THIS SUBTITLE , AND
SPECIFIED IN REQUIRED UNDER § 7–224(A)(2) OF THIS SUBTITLE.
7–226.
(A) (1) EACH ELECTRIC COMPANY , EACH GAS COMPANY , AND THE
DEPARTMENT SHALL PROV IDE TO THE COMMISSION EVERY 6 MONTHS AN UPDATE
ON PLAN IMPLEMENTATI ON AND PROGRESS MADE TOWARD ACHIEVING THE
GREENHOUSE GAS EMISS IONS REDUCTION TARGE TS ESTABLISHED BY TH E
COMMISSION UNDE R § 7–223(B) OF THIS SUBTITLE AND SPECIFIED IN REQUIRED
UNDER § 7–224(A)(2) OF THIS SUBTITLE.
(2) THE COMMISSION SHALL MONI TOR AND ANALYZE THE IMPACT OF
EACH PROGRAM AND SER VICE TO ENSURE THAT THE OUTCOME OF EACH PROGRAM
AND SERVICE PROVIDES THE BEST POSSIBLE RESULTS .
(3) IN MONITORING AND ANA LYZING THE IMPACT OF A PROGRAM OR
SERVICE UNDER PARAGR APH (2) OF THIS SUBSECTION , IF THE COMMISSION FINDS
THAT THE OUTCOME OF THE PROGRAM OR SERVI CE MAY NOT BE PROVID ING THE
BEST POSSIBLE RESULT S, THE COMMISSION SHALL DIRECT THE ELE CTRIC
COMPANY, THE GAS COMPANY , OR THE DEPARTMENT TO INCLUDE IN ITS NEXT WES MOORE, Governor Ch. 539
– 23 –
UPDATE UNDER PARAGRA PH (1) OF THIS SUBSECTION S PECIFIC MEASURES TO
ADDRESS THE FINDINGS .
(B) (1) AT LEAST ONCE EACH YE AR, EACH ELECTRIC COMPAN Y AND EACH
GAS COMPANY SHALL NOTIFY AFF ECTED CUSTOMERS OF T HE ENERGY EFFICIENCY
AND CONSERVATION AND GREENHOUSE GAS REDUC TION CHARGES IMPOSED AND
BENEFITS CONFERRED .
(2) THE NOTICE SHALL BE P ROVIDED BY PUBLICATI ON ON THE
COMPANY’S WEBSITE AND INCLUS ION WITH BILLING INF ORMATION SUCH AS A BILL
INSERT OR BILL MESSA GE.
(C) ON OR BEFORE MAY 1 EACH YEAR, THE COMMISSION SHALL REPO RT,
IN ACCORDANCE WITH § 2–1257 OF THE STATE GOVERNMENT ARTICLE, TO THE
GENERAL ASSEMBLY ON:
(1) THE STATUS OF PROGRA MS AND SERVICES APPR OVED UNDER
THIS SUBTITLE, INCLUDING AN EVALUAT ION OF THE IMPACT OF THE PROGRAMS
AND SERVICES THAT AR E DIRECTED TO LOW –INCOME COMMUNITIES , LOW– TO
MODERATE–INCOME COMMUNITIES T O THE EXTENT POSSIBL E, AND OTHER
PARTICULAR CLASSES O F RATEPAYERS ;
(2) A RECOMMENDATION FOR THE APPROPRIATE FUNDING LEVEL TO
ADEQUATELY FUND THES E PROGRAMS AND SERVI CES;
(3) THE PER CAPITA ELECT RICITY CONSUMPTION A ND THE WINTER
AND SUMMER PEAK DEMA ND FOR THE PREVIOUS CALENDAR YEAR ; AND
(4) BEGINNING IN 2026, PROGRESS MADE TOWARD REDUCING
GREENHOUSE GAS EMISS IONS IN ACCORDANCE W ITH §§ 7–223 AND 7–224 OF THIS
SUBTITLE.
7–227.
(A) NOTWITHSTANDING ANY O THER LAW, THE COMMISSION MAY NOT
REQUIRE OR ALLOW AN ELECTRIC COMPANY OR A GAS COMPANY TO REQ UIRE A
CUSTOMER TO AUTHORIZ E THE ELECTRIC CO MPANY OR GAS COMPANY TO CONTROL
THE AMOUNT OF THE CU STOMER’S ELECTRICITY USAGE OR GAS USAGE.
(B) A CUSTOMER MAY PROVIDE CONSENT TO PARTICIPA TE IN A PROGRAM
OF AN ELECTRIC COMPA NY OR A GAS COMPANY THAT PROVIDES DIRECT LOAD
CONTROL OR OTHER UTI LITY MANIPUL ATION OF A CUSTOMER ’S ELECTRICITY OR
GAS USAGE.
Ch. 539 2024 LAWS OF MARYLAND
– 24 –
7–228.
(A) EACH ELECTRIC COMPANY AND EACH GAS COMPANY SHALL PROMOTE
THE AVAILABILITY OF FEDERAL AND STATE REBATES , TAX CREDITS , AND
INCENTIVES THAT CAN BE USED TO SUPPORT E NERGY EFFICIENCY INV ESTMENTS,
ENERGY EFFICIENT AND NON–FOSSIL–FUEL–POWERED APPLIANCES A ND COOKING
EQUIPMENT, BREAKER BOX UPGRADES , AND PORTABLE HEATING AND COOLING
EQUIPMENT.
(B) THE COMMISSION SHALL ADOP T REGULATIONS TO CAR RY OUT THIS
SECTION.
7–510.3.
(j) (2) A community choice aggregator, in consultation with all
investor–owned electric companies whose service territories include all or part of the county
and the Department of Housing and Community Development, may promote energy
efficiency programs that are:
(i) offered by the investor–owned electric companies; or
(ii) filed by the investor–owned electric companies with the
Commission for its approval in accordance with [§ 7–211] SUBTITLE 2, PART II of this
title.
Article – State Government
9–20B–05.
(f) The Administration shall use the Fund:
(4) to provide rate relief by offsetting electricity rates of residential
customers, including an offset of surcharges imposed on ratepayers under [§ 7–211] TITLE
7, SUBTITLE 2, PART II of the Public Utilities Article;
SECTION 5. AND BE IT FURTHER ENACTED, That:
(a) The certification agency designated by the Board of Public Works under §
14–303(b) of the State Finance and Procurement Article and the Governor’s Office of Small,
Minority, and Women Business Affairs, in consultation with the Department of Housing
and Community Development, the Office of the Attorney General, and the General
Assembly, shall initiate a study regarding the energy efficiency and conservation services
used by the Department of Housing and Community Development to evaluate whether the
enactment of remedial measures to assist minority and women–owned businesses in the
energy efficiency and conservation services industry and market would comply with the WES MOORE, Governor Ch. 539
– 25 –
U.S. Supreme Court decision in City of Richmond v. J. A. Croson Co., 488 U.S. 469 (1989),
and any subsequent federal or constitutional requirements.
(b) The certification agency and the Governor’s Office of Small, Minority, and
Women Business Affairs shall submit the findings of the study required under subsection
(a) of this section to the Legislative Policy Committee, in accordance with § 2–1257 of the
State Government Article, on or before December 31, 2026, so that the General Assembly
may review the findings before the 2027 legislative session.
SECTION 6. AND BE IT FURTHER ENACTED, That:
(a) The Public Service Commission shall establish a working group on the
EmPOWER Maryland Program and moderate –income households.
(b) The purpose of the working group is to study and make recommendations to
the Public Service Commission and the General Assembly on coordination of activities and
benefits under the EmPOWER Maryland Program between utility companies subject to
this Act and the Department of Housing and Community Development so that
moderate–income households may obtain the most efficient and cost–effective assistance
under the Program.
(c) The study and recommendations shall include:
(1) development of a practical definition of “moderate–income” for use in
assessing the scope of available activities, potentially beneficial extensions of activities, and
associated costs under the EmPOWER Maryland Program;
(2) an assessment of existing utility–based activities funded by the
Program and available to moderate–income households;
(3) proposals for extending utility–based activities and coordinating those
activities with corresponding activities of the Department of Housing and Community
Development with respect to low–income households under the Program;
(4) an assessment of benefits and costs associated with extending and
expanding activities under item (3) of this subsection;
(5) identification of areas of potential overlap between utility–based and
Department–based activities that may be harmonized to avoid duplicating efforts and
promote more efficient means to provide assistance to moderate–income households; and
(6) identification and development of regulatory and legislative changes
needed to implement recommended coordination, extension, and expansion of Program
activities to benefit moderate–income households.
Ch. 539 2024 LAWS OF MARYLAND
– 26 –
(d) On or before July 1, 2025, the Commission shall report to the Governor and,
in accordance with § 2–1257 of the State Government Article, the General Assembly on the
results of the working group study and recommendations.
SECTION 6. 7. AND BE IT FURTHER ENACTED, That the publisher of the
Annotated Code of Maryland, in consultation with and subject to the approval of the
Department of Legislative Services, shall correct, with no further action required by the
General Assembly, cross–references and terminology rendered incorrect by this Act. The
publisher shall adequately describe any correction that is made in an editor’s note following
the section affected.
SECTION 7. 8. AND BE IT FURTHER ENACTED, That this Act shall take effect
July 1, 2024.
Approved by the Governor, May 9, 2024.