Maryland 2024 Regular Session

Maryland House Bill HB990 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1		-	WES MOORE, Governor Ch. 500
2	1
3		-	– 1 –
4		-	Chapter 500
5		-	(House Bill 990)
6	2
7		-	AN ACT concerning
	3	+	EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
	4	+	[Brackets] indicate matter deleted from existing law.
	5	+	Underlining indicates amendments to bill.
	6	+	Strike out indicates matter stricken from the bill by amendment or deleted from the law by
	7	+	amendment.
	8	+	Italics indicate opposite chamber/conference committee amendments.
	9	+	hb0990
8	10
9		-	Environment – Greenhouse Gas Emissions Reductions – Manufacturers
	11	+	HOUSE BILL 990
	12	+	M3 (4lr2726)
	13	+	ENROLLED BILL
	14	+	— Environment and Transportation and Economic Matters/Education, Energy, and
	15	+	the Environment —
	16	+	Introduced by Delegate Stein
10	17
11		-	FOR the purpose of altering the definition of “manufacturing” for purposes of certain
12		-	greenhouse gas emissions reduction requirements to exclude the production of
13		-	cement; altering the application of certain provisions of law regarding the reduction
14		-	of greenhouse gas emissions from the manufacturing sector to apply only to persons
15		-	that engaged in manufacturing in a certain year; altering certain prohibitions that
16		-	apply to a State agency’s implementation of a final plan to reduce statewide
17		-	greenhouse gas emissions; requiring the Department of the Environment to make
18		-	certain considerations and consult with certain stakeholders related to the
19		-	regulation of the production of cement; and generally relating to greenhouse gas
20		-	emissions reductions and manufacturers.
	18	+	Read and Examined by Proofreaders:
21	19
22		-	BY repealing and reenacting, without amendments,
23		-	Article – Environment
24		-	Section 2–1202(a) and 2–1205(a)
25		-	Annotated Code of Maryland
26		-	(2013 Replacement Volume and 2023 Supplement)
	20	+	_______________________________________________
	21	+	Proofreader.
	22	+	_______________________________________________
	23	+	Proofreader.
27	24
28		-	BY repealing and reenacting, with amendments,
29		-	Article – Environment
30		-	Section 2–1202(h) and 2–1205(g) and (h)
31		-	Annotated Code of Maryland
32		-	(2013 Replacement Volume and 2023 Supplement)
	25	+	Sealed with the Great Seal and presented to the Governor, for his approval this
33	26
34		-	BY adding to
35		-	Article – Environment
36		-	Section 2–1205(h)
37		-	Annotated Code of Maryland
38		-	(2013 Replacement Volume and 2023 Supplement)
	27	+	_______ day of _______________ at ________________________ o’clock, ________M.
39	28
40		-	~~SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND,~~
41		-	~~That the Laws of Maryland read as follows:~~
	29	+	______________________________________________
	30	+	Speaker.
42	31
43		-	~~Article – Environment~~
	32	+	CHAPTER ______
44	33
45		-	~~2–1202.~~
	34	+	AN ACT concerning 1
46	35
47		-	(a) In this subtitle the following words have the meanings indicated.
48		-	Ch. 500 2024 LAWS OF MARYLAND
	36	+	Environment – Greenhouse Gas Emissions Reductions – Manufacturers 2
49	37
50		-	– 2 –
51		-	(h) (1) “Manufacturing” means the process of substantially transforming, or a
52		-	substantial step in the process of substantially transforming, tangible personal property
53		-	into a new and different article of tangible personal property by the use of labor or
54		-	machinery.
	38	+	FOR the purpose of altering the definition of “manufacturing” for purposes of certain 3
	39	+	greenhouse gas emissions reduction requirements to exclude the production of 4
	40	+	cement; altering the application of certain provisions of law regarding the reduction 5
	41	+	of greenhouse gas emissions from the manufacturing sector to apply only to persons 6
	42	+	that engaged in manufacturing in a certain year; altering certain prohibitions that 7
	43	+	apply to a State agency’s implementation of a final plan to reduce statewide 8
	44	+	greenhouse gas emissions; requiring the Department of the Environment to make 9
	45	+	certain considerations and consult with certain stakeholders related to the 10
	46	+	regulation of the production of cement; and generally relating to greenhouse gas 11
	47	+	emissions reductions and manufacturers. 12
55	48
56		-	(2) “Manufacturing”, when performed by companies primarily engaged in
57		-	the activities described in paragraph (1) of this subsection, includes:
	49	+	BY repealing and reenacting, without amendments, 13 2 HOUSE BILL 990
58	50
59		-	(i) The operation of saw mills, grain mills, or feed mills;
60	51
61		-	(ii) The operation of machinery and equipment used to extract and
62		-	process minerals, metals, or earthen materials or by–products that result from the
63		-	extracting or processing; and
	52	+	Article – Environment 1
	53	+	Section 2–1202(a) and 2–1205(a) 2
	54	+	Annotated Code of Maryland 3
	55	+	(2013 Replacement Volume and 2023 Supplement) 4
64	56
65		-	(iii) Research and development activities.
	57	+	BY repealing and reenacting, with amendments, 5
	58	+	Article – Environment 6
	59	+	Section 2–1202(h) and 2–1205(g) and (h) 7
	60	+	Annotated Code of Maryland 8
	61	+	(2013 Replacement Volume and 2023 Supplement) 9
66	62
67		-	(3) “Manufacturing” does not include:
	63	+	BY adding to 10
	64	+	Article – Environment 11
	65	+	Section 2–1205(h) 12
	66	+	Annotated Code of Maryland 13
	67	+	(2013 Replacement Volume and 2023 Supplement) 14
68	68
69		-	(i) Activities that are primarily a service;
	69	+	SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 15
	70	+	That the Laws of Maryland read as follows: 16
70	71
71		-	~~(ii) Activities that are intellectual, artistic, or clerical in nature;~~
	72	+	Article – Environment 17
72	73
73		-	(iii) Public utility services, including gas, electric, water, and steam
74		-	production services; [or]
	74	+	2–1202. 18
75	75
76		-	(iv) THE ~~PRODUCTION OF CEM ENT;~~ OR
	76	+	(a) In this subtitle the following words have the meanings indicated. 19
77	77
78		-	(V) Any other activity that would not commonly be considered as
79		-	manufacturing.
	78	+	(h) (1) “Manufacturing” means the process of substantially transforming, or a 20
	79	+	substantial step in the process of substantially transforming, tangible personal property 21
	80	+	into a new and different article of tangible personal property by the use of labor or 22
	81	+	machinery. 23
80	82
81		-	2–1205.
	83	+	(2) “Manufacturing”, when performed by companies primarily engaged in 24
	84	+	the activities described in paragraph (1) of this subsection, includes: 25
82	85
83		-	(a) The State shall develop plans, adopt regulations, and implement programs
84		-	that reduce statewide greenhouse gas emissions in accordance with this subtitle.
	86	+	(i) The operation of saw mills, grain mills, or feed mills; 26
85	87
86		-	(g) (1) PARAGRAPHS (2) AND (3) OF THIS SUBSECTION A PPLY ONLY TO
87		-	PERSONS WHO ENGAGED IN MANUFACTURING IN 2023.
	88	+	(ii) The operation of machinery and equipment used to extract and 27
	89	+	process minerals, metals, or earthen materials or by–products that result from the 28
	90	+	extracting or processing; and 29
88	91
89		-	(2) (I) Unless required by federal law or regulations or existing State
90		-	law, regulations adopted by State agencies to implement a final plan may not:
	92	+	(iii) Research and development activities. 30
91	93
92		-	[(i)] 1. Require ANY MANUFACTURER TO REDUCE greenhouse
93		-	gas emissions [reductions from the State’s manufacturing sector] BELOW THE EMISSIONS
94		-	LEVELS FOR THAT MANU FACTURER IN 2023; or
95		-	WES MOORE, Governor Ch. 500
	94	+	(3) “Manufacturing” does not include: 31
96	95
97		-	– 3 –
98		-	[(ii)] 2. Cause [a significant] AN increase in costs to [the State’s
99		-	manufacturing sector] A MANUFACTURER THAT ARE SIGNIFICANTLY BE YOND THE
100		-	COSTS THAT WERE INCU RRED BY THAT MANUFAC TURER IN 2023; OR
	96	+	(i) Activities that are primarily a service; 32
101	97
102		-	3. REQUIRE ANY MANUFACTU RER THAT IS ENGAGED IN
103		-	THE CREATION OF RENE WABLE ENERGY COMPONE NTS OR TECHNOLOGY AI MED AT
104		-	GREENHOUSE GAS EMISS IONS REDU CTIONS TO REDUCE GRE ENHOUSE GAS
105		-	EMISSIONS.
	98	+	(ii) Activities that are intellectual, artistic, or clerical in nature; 33 HOUSE BILL 990 3
106	99
107		-	[(2)] (II) [Paragraph (1)] SUBPARAGRAPH (I) of this [subsection]
108		-	PARAGRAPH may not be construed to exempt greenhouse gas emissions sources in the
109		-	State’s manufacturing sector from the obligation to comply with:
110	100
111		-	[(i)] 1. Greenhouse gas emissions monitoring, recordkeeping, and
112		-	reporting requirements for which the Department had existing authority under § 2–301(a)
113		-	of this title on or before October 1, 2009; or
114	101
115		-	[(ii)] 2. Greenhouse gas emissions reductions required of the
116		-	manufacturing sector as a result of the State’s implementation of the Regional Greenhouse
117		-	Gas Initiative.
	102	+	(iii) Public utility services, including gas, electric, water, and steam 1
	103	+	production services; [or] 2
118	104
119		-	[(h)] (3) A regulation adopted by a State agency for the purpose of reducing
120		-	greenhouse gas emissions in accordance with this section may not be construed to result in
121		-	a significant increase in costs to the State’s manufacturing sector unless the source would
122		-	not incur the cost increase but for the new regulation.
	105	+	(iv) THE PRODUCTION OF CEM ENT; OR 3
123	106
124		-	(H) (1) AS PART OF THE CONSID ERATION OF ANY REGUL ATION OF THE
125		-	PRODUCTIO N OF CEMENT UNDER TH IS SECTION, THE DEPARTMENT SHALL
126		-	CONSIDER:
	107	+	(V) Any other activity that would not commonly be considered as 4
	108	+	manufacturing. 5
127	109
128		-	(I) THE EXTENT TO WHICH C EMENT MANUFACTURING IS AN
129		-	ENERGY INTENSIVE AND TRADE EXPOSED INDUST RY;
	110	+	2–1205. 6
130	111
131		-	(II) CREDIT FOR EARLY ACTI ON INVESTMENTS MADE BY
132		-	CEMENT PRODUCERS TO REDUCE EMISSIONS OR FOR THE MANUFACTURIN G OF
133		-	ALTERNATIVE MATERIAL S THAT RESULT IN GRE ENHOUSE GAS EMISSION S
134		-	REDUCTIONS ;
	112	+	(a) The State shall develop plans, adopt regulations, and implement programs 7
	113	+	that reduce statewide greenhouse gas emissions in accordance with this subtitle. 8
135	114
136		-	(III) THE ADOPTION OF POLIC IES THAT ENCOURAGE ,
137		-	FACILITATE, AND OFFER FINANCIAL INCENTIVES FOR THE U SE OF ALTERNATIVE
138		-	FUEL SOURCES ;
	115	+	(g) (1) PARAGRAPHS (2) AND (3) OF THIS SUBSECTION A PPLY ONLY TO 9
	116	+	PERSONS WHO ENGAGED IN MAN UFACTURING IN 2023. 10
139	117
140		-	(IV) ~~THE AVAILABIL ITY AND COST OF MATU RE GREENHOUSE~~
141		-	~~GAS ABATEMENT TECHNO LOGIES;~~ ~~AND Ch.~~ ~~500~~ ~~2024 LAWS OF MARYLAND~~
	118	+	(2) (I) Unless required by federal law or regulations or existing State 11
	119	+	law, regulations adopted by State agencies to implement a final plan may not: 12
142	120
143		-	– 4 –
	121	+	[(i)] 1. Require ANY MANUFACTURER TO REDUCE greenhouse 13
	122	+	gas emissions [reductions from the State’s manufacturing sector] BELOW THE EMISSIONS 14
	123	+	LEVELS FOR THAT MANU FACTURER IN 2023; or 15
144	124
145		-	(V) ADVANCING POLICIES TH AT PROVIDE FINANCIAL
146		-	INCENTIVES TO OFFSET THE COSTS OF INSTALL ING AND TRANSITIONIN G TO
147		-	GREENHOUSE GAS EMISS IONS ABATEMENT TECHN OLOGIES, INCLUDING THE
148		-	MANUFACTURING OF MAT ERIALS AND TECHNOLOG Y THAT RESULTS IN GR EENHOUSE
149		-	GAS EMISSIONS REDUCT IONS.
	125	+	[(ii)] 2. Cause [a significant] AN increase in costs to [the State’s 16
	126	+	manufacturing sector] A MANUFACTURER THAT ARE SIGNIFICANTLY BE YOND THE 17
	127	+	COSTS THAT WERE INCU RRED BY THAT MANUFAC TURER IN 2023; OR 18
150	128
151		-	(2) IN CONSIDERING THE FE ASIBILITY OF REGULAT ION AND THE
152		-	ITEMS UNDER PARAGRAP H (1) OF THIS SUBSECTION , THE DEPARTMENT SHALL
153		-	CONSULT WITH IMPACTE D CEMENT PRODU CERS AND OTHER STAKE HOLDERS.
	129	+	3. REQUIRE ANY MANUFACTU RER THAT IS ENGAGED IN 19
	130	+	THE CREATION OF RENE WABLE ENERGY COMPONE NTS OR TECHNOLOGY AI MED AT 20
	131	+	GREENHOUSE GAS EMISS IONS REDU CTIONS TO REDUCE GRE ENHOUSE GAS 21
	132	+	EMISSIONS. 22
154	133
155		-	SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect
156		-	October 1, 2024.
	134	+	[(2)] (II) [Paragraph (1)] SUBPARAGRAPH (I) of this [subsection] 23
	135	+	PARAGRAPH may not be construed to exempt greenhouse gas emissions sources in the 24
	136	+	State’s manufacturing sector from the obligation to comply with: 25
157	137
158		-	Approved by the Governor, May 9, 2024.
	138	+	[(i)] 1. Greenhouse gas emissions monitoring, recordkeeping, and 26
	139	+	reporting requirements for which the Department had existing authority under § 2–301(a) 27
	140	+	of this title on or before October 1, 2009; or 28
	141	+
	142	+	[(ii)] 2. Greenhouse gas emissions reductions required of the 29
	143	+	manufacturing sector as a result of the State’s implementation of the Regional Greenhouse 30
	144	+	Gas Initiative. 31
	145	+	4 HOUSE BILL 990
	146	+
	147	+
	148	+	[(h)] (3) A regulation adopted by a State agency for the purpose of reducing 1
	149	+	greenhouse gas emissions in accordance with this section may not be construed to result in 2
	150	+	a significant increase in costs to the State’s manufacturing sector unless the source would 3
	151	+	not incur the cost increase but for the new regulation. 4
	152	+
	153	+	(H) (1) AS PART OF THE CONSID ERATION OF ANY REGUL ATION OF THE 5
	154	+	PRODUCTION OF CEMENT UNDER T HIS SECTION, THE DEPARTMENT SHALL 6
	155	+	CONSIDER: 7
	156	+
	157	+	(I) THE EXTENT TO WHICH C EMENT MANUFACTURING IS AN 8
	158	+	ENERGY INTENSIVE AND TRADE EXPOSED INDUST RY; 9
	159	+
	160	+	(II) CREDIT FOR EARLY ACTI ON INVESTMENTS MADE BY 10
	161	+	CEMENT PRODUCERS TO REDUCE EMISSIONS OR FOR THE MANUFACTURIN G OF 11
	162	+	ALTERNATIVE MATERIAL S THAT RESULT IN GRE ENHOUSE GAS EMISSION S 12
	163	+	REDUCTIONS ; 13
	164	+
	165	+	(III) THE ADOPTION OF POLIC IES THAT ENCOURAGE , 14
	166	+	FACILITATE, AND OFFER FINANCIAL INCENTIVES FOR THE U SE OF ALTERNATIVE 15
	167	+	FUEL SOURCES ; 16
	168	+
	169	+	(IV) THE AVAILABI LITY AND COST OF MAT URE GREENHOUSE 17
	170	+	GAS ABATEMENT TECHNO LOGIES; AND 18
	171	+
	172	+	(V) ADVANCING POLICIES TH AT PROVIDE FINANCIAL 19
	173	+	INCENTIVES TO OFFSET THE COSTS OF INSTALL ING AND TRANSITIONIN G TO 20
	174	+	GREENHOUSE GAS EMISS IONS ABATEMENT TECHN OLOGIES, INCLUDING THE 21
	175	+	MANUFACTUR ING OF MATERIALS AND TECHNOLOGY THAT RESU LTS IN GREENHOUSE 22
	176	+	GAS EMISSIONS REDUCT IONS. 23
	177	+
	178	+	(2) IN CONSIDERING THE FE ASIBILITY OF REGULAT ION AND THE 24
	179	+	ITEMS UNDER PARAGRAP H (1) OF THIS SUBSECTION , THE DEPARTMENT SHALL 25
	180	+	CONSULT WITH IMPACTE D CEMENT PRODUCERS A ND OTHER STAKEHOLDERS . 26
	181	+
	182	+	SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect 27
	183	+	October 1, 2024. 28
	184	+
	185	+
	186	+