EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
[Brackets] indicate matter deleted from existing law.
Underlining indicates amendments to bill.
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amendment.
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*hb0990*
HOUSE BILL 990
M3 (4lr2726)
ENROLLED BILL
— Environment and Transportation and Economic Matters/Education, Energy, and
the Environment —
Introduced by Delegate Stein
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
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 2 HOUSE BILL 990
Article – Environment 1
Section 2–1202(a) and 2–1205(a) 2
Annotated Code of Maryland 3
(2013 Replacement Volume and 2023 Supplement) 4
BY repealing and reenacting, with amendments, 5
Article – Environment 6
Section 2–1202(h) and 2–1205(g) and (h) 7
Annotated Code of Maryland 8
(2013 Replacement Volume and 2023 Supplement) 9
BY adding to 10
Article – Environment 11
Section 2–1205(h) 12
Annotated Code of Maryland 13
(2013 Replacement Volume and 2023 Supplement) 14
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 15
That the Laws of Maryland read as follows: 16
Article – Environment 17
2–1202. 18
(a) In this subtitle the following words have the meanings indicated. 19
(h) (1) “Manufacturing” means the process of substantially transforming, or a 20
substantial step in the process of substantially transforming, tangible personal property 21
into a new and different article of tangible personal property by the use of labor or 22
machinery. 23
(2) “Manufacturing”, when performed by companies primarily engaged in 24
the activities described in paragraph (1) of this subsection, includes: 25
(i) The operation of saw mills, grain mills, or feed mills; 26
(ii) The operation of machinery and equipment used to extract and 27
process minerals, metals, or earthen materials or by–products that result from the 28
extracting or processing; and 29
(iii) Research and development activities. 30
(3) “Manufacturing” does not include: 31
(i) Activities that are primarily a service; 32
(ii) Activities that are intellectual, artistic, or clerical in nature; 33 HOUSE BILL 990 3
(iii) Public utility services, including gas, electric, water, and steam 1
production services; [or] 2
(iv) THE PRODUCTION OF CEM ENT; OR 3
(V) Any other activity that would not commonly be considered as 4
manufacturing. 5
2–1205. 6
(a) The State shall develop plans, adopt regulations, and implement programs 7
that reduce statewide greenhouse gas emissions in accordance with this subtitle. 8
(g) (1) PARAGRAPHS (2) AND (3) OF THIS SUBSECTION A PPLY ONLY TO 9
PERSONS WHO ENGAGED IN MAN UFACTURING IN 2023. 10
(2) (I) Unless required by federal law or regulations or existing State 11
law, regulations adopted by State agencies to implement a final plan may not: 12
[(i)] 1. Require ANY MANUFACTURER TO REDUCE greenhouse 13
gas emissions [reductions from the State’s manufacturing sector] BELOW THE EMISSIONS 14
LEVELS FOR THAT MANU FACTURER IN 2023; or 15
[(ii)] 2. Cause [a significant] AN increase in costs to [the State’s 16
manufacturing sector] A MANUFACTURER THAT ARE SIGNIFICANTLY BE YOND THE 17
COSTS THAT WERE INCU RRED BY THAT MANUFAC TURER IN 2023; OR 18
3. REQUIRE ANY MANUFACTU RER THAT IS ENGAGED IN 19
THE CREATION OF RENE WABLE ENERGY COMPONE NTS OR TECHNOLOGY AI MED AT 20
GREENHOUSE GAS EMISS IONS REDU CTIONS TO REDUCE GRE ENHOUSE GAS 21
EMISSIONS. 22
[(2)] (II) [Paragraph (1)] SUBPARAGRAPH (I) of this [subsection] 23
PARAGRAPH may not be construed to exempt greenhouse gas emissions sources in the 24
State’s manufacturing sector from the obligation to comply with: 25
[(i)] 1. Greenhouse gas emissions monitoring, recordkeeping, and 26
reporting requirements for which the Department had existing authority under § 2–301(a) 27
of this title on or before October 1, 2009; or 28
[(ii)] 2. Greenhouse gas emissions reductions required of the 29
manufacturing sector as a result of the State’s implementation of the Regional Greenhouse 30
Gas Initiative. 31
4 HOUSE BILL 990
[(h)] (3) A regulation adopted by a State agency for the purpose of reducing 1
greenhouse gas emissions in accordance with this section may not be construed to result in 2
a significant increase in costs to the State’s manufacturing sector unless the source would 3
not incur the cost increase but for the new regulation. 4
(H) (1) AS PART OF THE CONSID ERATION OF ANY REGUL ATION OF THE 5
PRODUCTION OF CEMENT UNDER T HIS SECTION, THE DEPARTMENT SHALL 6
CONSIDER: 7
(I) THE EXTENT TO WHICH C EMENT MANUFACTURING IS AN 8
ENERGY INTENSIVE AND TRADE EXPOSED INDUST RY; 9
(II) CREDIT FOR EARLY ACTI ON INVESTMENTS MADE BY 10
CEMENT PRODUCERS TO REDUCE EMISSIONS OR FOR THE MANUFACTURIN G OF 11
ALTERNATIVE MATERIAL S THAT RESULT IN GRE ENHOUSE GAS EMISSION S 12
REDUCTIONS ; 13
(III) THE ADOPTION OF POLIC IES THAT ENCOURAGE , 14
FACILITATE, AND OFFER FINANCIAL INCENTIVES FOR THE U SE OF ALTERNATIVE 15
FUEL SOURCES ; 16
(IV) THE AVAILABI LITY AND COST OF MAT URE GREENHOUSE 17
GAS ABATEMENT TECHNO LOGIES; AND 18
(V) ADVANCING POLICIES TH AT PROVIDE FINANCIAL 19
INCENTIVES TO OFFSET THE COSTS OF INSTALL ING AND TRANSITIONIN G TO 20
GREENHOUSE GAS EMISS IONS ABATEMENT TECHN OLOGIES, INCLUDING THE 21
MANUFACTUR ING OF MATERIALS AND TECHNOLOGY THAT RESU LTS IN GREENHOUSE 22
GAS EMISSIONS REDUCT IONS. 23
(2) IN CONSIDERING THE FE ASIBILITY OF REGULAT ION AND THE 24
ITEMS UNDER PARAGRAP H (1) OF THIS SUBSECTION , THE DEPARTMENT SHALL 25
CONSULT WITH IMPACTE D CEMENT PRODUCERS A ND OTHER STAKEHOLDERS . 26
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect 27
October 1, 2024. 28