EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
[Brackets] indicate matter deleted from existing law.
Underlining indicates amendments to bill.
Strike out indicates matter stricken from the bill by amendment or deleted from the law by
amendment.
*hb0990*
HOUSE BILL 990
M3 4lr2726
CF 4lr3164
By: Delegate Stein
Introduced and read first time: February 5, 2024
Assigned to: Environment and Transportation and Economic Matters
Committee Report: Favorable with amendments
House action: Adopted
Read second time: March 9, 2024
CHAPTER ______
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; requiring the Department of the Environment to make 9
certain considerations and consult with certain stakeholders related to the 10
regulation of the production of cement; and generally relating to greenhouse gas 11
emissions reductions and manufacturers. 12
BY repealing and reenacting, without amendments, 13
Article – Environment 14
Section 2–1202(a) and 2–1205(a) 15
Annotated Code of Maryland 16
(2013 Replacement Volume and 2023 Supplement) 17
BY repealing and reenacting, with amendments, 18
Article – Environment 19
Section 2–1202(h) and 2–1205(g) and (h) 20
Annotated Code of Maryland 21
(2013 Replacement Volume and 2023 Supplement) 22
2 HOUSE BILL 990
BY adding to 1
Article – Environment 2
Section 2–1205(h) 3
Annotated Code of Maryland 4
(2013 Replacement Volume and 2023 Supplement) 5
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 6
That the Laws of Maryland read as follows: 7
Article – Environment 8
2–1202. 9
(a) In this subtitle the following words have the meanings indicated. 10
(h) (1) “Manufacturing” means the process of substantially transforming, or a 11
substantial step in the process of substantially transforming, tangible personal property 12
into a new and different article of tangible personal property by the use of labor or 13
machinery. 14
(2) “Manufacturing”, when performed by companies primarily engaged in 15
the activities described in paragraph (1) of this subsection, includes: 16
(i) The operation of saw mills, grain mills, or feed mills; 17
(ii) The operation of machinery and equipment used to extract and 18
process minerals, metals, or earthen materials or by–products that result from the 19
extracting or processing; and 20
(iii) Research and development activities. 21
(3) “Manufacturing” does not include: 22
(i) Activities that are primarily a service; 23
(ii) Activities that are intellectual, artistic, or clerical in nature; 24
(iii) Public utility services, including gas, electric, water, and steam 25
production services; [or] 26
(iv) THE PRODUCTION OF CEM ENT; OR 27
(V) Any other activity that would not commonly be considered as 28
manufacturing. 29
2–1205. 30
HOUSE BILL 990 3
(a) The State shall develop plans, adopt regulations, and implement programs 1
that reduce statewide greenhouse gas emissions in accordance with this subtitle. 2
(g) (1) PARAGRAPHS (2) AND (3) OF THIS SUBSECTION A PPLY ONLY TO 3
PERSONS WHO ENGAGED IN MANUFACTURING IN 2023. 4
(2) (I) Unless required by federal law or regulations or existing State 5
law, regulations adopted by State agencies to implement a final plan may not: 6
[(i)] 1. Require ANY MANUFACTURER TO REDUCE greenhouse 7
gas emissions [reductions from the State’s manufacturing sector] BELOW THE EMISSIONS 8
LEVELS FOR THAT MANU FACTURER IN 2023; or 9
[(ii)] 2. Cause [a significant] AN increase in costs to [the State’s 10
manufacturing sector] A MANUFACTURER THAT ARE SIGNIFICANT LY BEYOND THE 11
COSTS THAT WERE INCU RRED BY THAT MANUFAC TURER IN 2023. 12
[(2)] (II) [Paragraph (1)] SUBPARAGRAPH (I) of this [subsection] 13
PARAGRAPH may not be construed to exempt greenhouse gas emissions sources in the 14
State’s manufacturing sector from the obligation to comply with: 15
[(i)] 1. Greenhouse gas emissions monitoring, recordkeeping, and 16
reporting requirements for which the Department had existing authority under § 2–301(a) 17
of this title on or before October 1, 2009; or 18
[(ii)] 2. Greenhouse gas emissions reductions required of the 19
manufacturing sector as a result of the State’s implementation of the Regional Greenhouse 20
Gas Initiative. 21
[(h)] (3) A regulation adopted by a State agency for the purpose of reducing 22
greenhouse gas emissions in accordance with this section may not be construed to result in 23
a significant increase in costs to the State’s manufacturing sector unless the source would 24
not incur the cost increase but for the new regulation. 25
(H) (1) AS PART OF THE CONSID ERATION OF ANY R EGULATION OF THE 26
PRODUCTION OF CEMENT UNDER THIS SECTION , THE DEPARTMENT SHALL 27
CONSIDER: 28
(I) THE EXTENT TO WHICH C EMENT MANUFACTURING IS AN 29
ENERGY INTENSIVE AND TRADE EXPOSED INDUST RY; 30
(II) CREDIT FOR EARLY ACTI ON INVESTMENTS MADE BY 31
CEMENT PRODUCE RS TO REDUCE EMISSIO NS; 32
4 HOUSE BILL 990
(III) THE ADOPTION OF POLIC IES THAT ENCOURAGE , 1
FACILITATE, AND OFFER FINANCIAL INCENTIVES FOR THE U SE OF ALTERNATIVE 2
FUEL SOURCES ; 3
(IV) THE AVAILABILITY AND COST OF MATURE GREEN HOUSE 4
GAS ABATEMENT TECHNO LOGIES; AND 5
(V) ADVANCING POLICIES TH AT PROVIDE FINANCIAL 6
INCENTIVES TO OFFSET THE COSTS OF INSTALL ING AND TRANSITIONIN G TO 7
GREENHOUSE GAS EMISS IONS ABATEMENT TECHN OLOGIES. 8
(2) IN CONSIDERING THE FE ASIBILITY OF REGULAT ION AND THE 9
ITEMS UNDER PARAGRAP H (1) OF THIS SUBSEC TION, THE DEPARTMENT SHALL 10
CONSULT WITH IMPACTE D CEMENT PRODUCERS A ND OTHER STAKEHOLDER S. 11
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect 12
October 1, 2024. 13
Approved:
________________________________________________________________________________
Governor.
________________________________________________________________________________
Speaker of the House of Delegates.
________________________________________________________________________________
President of the Senate.