EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
[Brackets] indicate matter deleted from existing law.
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HOUSE BILL 990
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CF 4lr3164
By: Delegate Stein
Introduced and read first time: February 5, 2024
Assigned to: Environment and Transportation and Economic Matters
A BILL ENTITLED
AN ACT concerning 1
Environment – Greenhouse Gas Emissions Reductions – Manufacturers 2
FOR the purpose of altering the definition of “manufacturing” for purposes of certain 3
greenhouse gas emissions reduction requirements to exclude the production of 4
cement; altering the application of certain provisions of law regarding the reduction 5
of greenhouse gas emissions from the manufacturing sector to apply only to persons 6
that engaged in manufacturing in a certain year; altering certain prohibitions that 7
apply to a State agency’s implementation of a final plan to reduce statewide 8
greenhouse gas emissions; and generally relating to greenhouse gas emissions 9
reductions and manufacturers. 10
BY repealing and reenacting, without amendments, 11
Article – Environment 12
Section 2–1202(a) and 2–1205(a) 13
Annotated Code of Maryland 14
(2013 Replacement Volume and 2023 Supplement) 15
BY repealing and reenacting, with amendments, 16
Article – Environment 17
Section 2–1202(h) and 2–1205(g) and (h) 18
Annotated Code of Maryland 19
(2013 Replacement Volume and 2023 Supplement) 20
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 21
That the Laws of Maryland read as follows: 22
Article – Environment 23
2–1202. 24
(a) In this subtitle the following words have the meanings indicated. 25 2 HOUSE BILL 990
(h) (1) “Manufacturing” means the process of substantially transforming, or a 1
substantial step in the process of substantially transforming, tangible personal property 2
into a new and different article of tangible personal property by the use of labor or 3
machinery. 4
(2) “Manufacturing”, when performed by companies primarily engaged in 5
the activities described in paragraph (1) of this subsection, includes: 6
(i) The operation of saw mills, grain mills, or feed mills; 7
(ii) The operation of machinery and equipment used to extract and 8
process minerals, metals, or earthen materials or by–products that result from the 9
extracting or processing; and 10
(iii) Research and development activities. 11
(3) “Manufacturing” does not include: 12
(i) Activities that are primarily a service; 13
(ii) Activities that are intellectual, artistic, or clerical in nature; 14
(iii) Public utility services, including gas, electric, water, and steam 15
production services; [or] 16
(iv) THE PRODUCTION OF CEM ENT; OR 17
(V) Any other activity that would not commonly be considered as 18
manufacturing. 19
2–1205. 20
(a) The State shall develop plans, adopt regulations, and implement programs 21
that reduce statewide greenhouse gas emissions in accordance with this subtitle. 22
(g) (1) PARAGRAPHS (2) AND (3) OF THIS SUBSECTION APPLY ONLY T O 23
PERSONS WHO ENGAGED IN MANUFACTURING IN 2023. 24
(2) (I) Unless required by federal law or regulations or existing State 25
law, regulations adopted by State agencies to implement a final plan may not: 26
[(i)] 1. Require ANY MANUFACTURER TO REDUCE greenhouse 27
gas emissions [reductions from the State’s manufacturing sector] BELOW THE EMISSIONS 28
LEVELS FOR THAT MANUFACTURER IN 2023; or 29
HOUSE BILL 990 3
[(ii)] 2. Cause [a significant] AN increase in costs to [the State’s 1
manufacturing sector] A MANUFACTURER THAT ARE SIGNIFICANT LY BEYOND THE 2
COSTS THAT WERE INCU RRED BY THAT MANUFAC TURER IN 2023. 3
[(2)] (II) [Paragraph (1)] SUBPARAGRAPH (I) of this [subsection] 4
PARAGRAPH may not be construed to exempt greenhouse gas emissions sources in the 5
State’s manufacturing sector from the obligation to comply with: 6
[(i)] 1. Greenhouse gas emissions monitoring, recordkeeping, and 7
reporting requirements for which the Department had existing authority under § 2–301(a) 8
of this title on or before October 1, 2009; or 9
[(ii)] 2. Greenhouse gas emissions reductions required of the 10
manufacturing sector as a result of the State’s implementation of the Regional Greenhouse 11
Gas Initiative. 12
[(h)] (3) A regulation adopted by a State agency for the purpose of reducing 13
greenhouse gas emissions in accordance with this section may not be construed to result in 14
a significant increase in costs to the State’s manufacturing sector unless the source would 15
not incur the cost increase but for the new regulation. 16
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect 17
October 1, 2024. 18