WES MOORE, Governor Ch. 500
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Chapter 500
(House Bill 990)
AN ACT concerning
Environment – Greenhouse Gas Emissions Reductions – Manufacturers
FOR the purpose of altering the definition of “manufacturing” for purposes of certain
greenhouse gas emissions reduction requirements to exclude the production of
cement; altering the application of certain provisions of law regarding the reduction
of greenhouse gas emissions from the manufacturing sector to apply only to persons
that engaged in manufacturing in a certain year; altering certain prohibitions that
apply to a State agency’s implementation of a final plan to reduce statewide
greenhouse gas emissions; requiring the Department of the Environment to make
certain considerations and consult with certain stakeholders related to the
regulation of the production of cement; and generally relating to greenhouse gas
emissions reductions and manufacturers.
BY repealing and reenacting, without amendments,
Article – Environment
Section 2–1202(a) and 2–1205(a)
Annotated Code of Maryland
(2013 Replacement Volume and 2023 Supplement)
BY repealing and reenacting, with amendments,
Article – Environment
Section 2–1202(h) and 2–1205(g) and (h)
Annotated Code of Maryland
(2013 Replacement Volume and 2023 Supplement)
BY adding to
Article – Environment
Section 2–1205(h)
Annotated Code of Maryland
(2013 Replacement Volume and 2023 Supplement)
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND,
That the Laws of Maryland read as follows:
Article – Environment
2–1202.
(a) In this subtitle the following words have the meanings indicated.
Ch. 500 2024 LAWS OF MARYLAND
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(h) (1) “Manufacturing” means the process of substantially transforming, or a
substantial step in the process of substantially transforming, tangible personal property
into a new and different article of tangible personal property by the use of labor or
machinery.
(2) “Manufacturing”, when performed by companies primarily engaged in
the activities described in paragraph (1) of this subsection, includes:
(i) The operation of saw mills, grain mills, or feed mills;
(ii) The operation of machinery and equipment used to extract and
process minerals, metals, or earthen materials or by–products that result from the
extracting or processing; and
(iii) Research and development activities.
(3) “Manufacturing” does not include:
(i) Activities that are primarily a service;
(ii) Activities that are intellectual, artistic, or clerical in nature;
(iii) Public utility services, including gas, electric, water, and steam
production services; [or]
(iv) THE PRODUCTION OF CEM ENT; OR
(V) Any other activity that would not commonly be considered as
manufacturing.
2–1205.
(a) The State shall develop plans, adopt regulations, and implement programs
that reduce statewide greenhouse gas emissions in accordance with this subtitle.
(g) (1) PARAGRAPHS (2) AND (3) OF THIS SUBSECTION A PPLY ONLY TO
PERSONS WHO ENGAGED IN MANUFACTURING IN 2023.
(2) (I) Unless required by federal law or regulations or existing State
law, regulations adopted by State agencies to implement a final plan may not:
[(i)] 1. Require ANY MANUFACTURER TO REDUCE greenhouse
gas emissions [reductions from the State’s manufacturing sector] BELOW THE EMISSIONS
LEVELS FOR THAT MANU FACTURER IN 2023; or
WES MOORE, Governor Ch. 500
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[(ii)] 2. Cause [a significant] AN increase in costs to [the State’s
manufacturing sector] A MANUFACTURER THAT ARE SIGNIFICANTLY BE YOND THE
COSTS THAT WERE INCU RRED BY THAT MANUFAC TURER IN 2023; OR
3. REQUIRE ANY MANUFACTU RER THAT IS ENGAGED IN
THE CREATION OF RENE WABLE ENERGY COMPONE NTS OR TECHNOLOGY AI MED AT
GREENHOUSE GAS EMISS IONS REDU CTIONS TO REDUCE GRE ENHOUSE GAS
EMISSIONS.
[(2)] (II) [Paragraph (1)] SUBPARAGRAPH (I) of this [subsection]
PARAGRAPH may not be construed to exempt greenhouse gas emissions sources in the
State’s manufacturing sector from the obligation to comply with:
[(i)] 1. Greenhouse gas emissions monitoring, recordkeeping, and
reporting requirements for which the Department had existing authority under § 2–301(a)
of this title on or before October 1, 2009; or
[(ii)] 2. Greenhouse gas emissions reductions required of the
manufacturing sector as a result of the State’s implementation of the Regional Greenhouse
Gas Initiative.
[(h)] (3) A regulation adopted by a State agency for the purpose of reducing
greenhouse gas emissions in accordance with this section may not be construed to result in
a significant increase in costs to the State’s manufacturing sector unless the source would
not incur the cost increase but for the new regulation.
(H) (1) AS PART OF THE CONSID ERATION OF ANY REGUL ATION OF THE
PRODUCTIO N OF CEMENT UNDER TH IS SECTION, THE DEPARTMENT SHALL
CONSIDER:
(I) THE EXTENT TO WHICH C EMENT MANUFACTURING IS AN
ENERGY INTENSIVE AND TRADE EXPOSED INDUST RY;
(II) CREDIT FOR EARLY ACTI ON INVESTMENTS MADE BY
CEMENT PRODUCERS TO REDUCE EMISSIONS OR FOR THE MANUFACTURIN G OF
ALTERNATIVE MATERIAL S THAT RESULT IN GRE ENHOUSE GAS EMISSION S
REDUCTIONS ;
(III) THE ADOPTION OF POLIC IES THAT ENCOURAGE ,
FACILITATE, AND OFFER FINANCIAL INCENTIVES FOR THE U SE OF ALTERNATIVE
FUEL SOURCES ;
(IV) THE AVAILABIL ITY AND COST OF MATU RE GREENHOUSE
GAS ABATEMENT TECHNO LOGIES; AND Ch. 500 2024 LAWS OF MARYLAND
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(V) ADVANCING POLICIES TH AT PROVIDE FINANCIAL
INCENTIVES TO OFFSET THE COSTS OF INSTALL ING AND TRANSITIONIN G TO
GREENHOUSE GAS EMISS IONS ABATEMENT TECHN OLOGIES, INCLUDING THE
MANUFACTURING OF MAT ERIALS AND TECHNOLOG Y THAT RESULTS IN GR EENHOUSE
GAS EMISSIONS REDUCT IONS.
(2) IN CONSIDERING THE FE ASIBILITY OF REGULAT ION AND THE
ITEMS UNDER PARAGRAP H (1) OF THIS SUBSECTION , THE DEPARTMENT SHALL
CONSULT WITH IMPACTE D CEMENT PRODU CERS AND OTHER STAKE HOLDERS.
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect
October 1, 2024.
Approved by the Governor, May 9, 2024.