EXPLANATION: CAPITALS INDICATE MATTER ADDE D TO EXISTING LAW .
[Brackets] indicate matter deleted from existing law.
*sb0570*
SENATE BILL 570
M5, C5, P2 4lr0763
CF HB 397
By: Senator Hester
Introduced and read first time: January 25, 2024
Assigned to: Education, Energy, and the Environment
A BILL ENTITLED
AN ACT concerning 1
Public Utilities – Thermal Energy Network Systems – Authorization and 2
Establishment 3
(Working for Accessible Renewable Maryland Thermal Heat (WARMTH) Act) 4
FOR the purpose of requiring each gas company to develop a plan for a pilot thermal energy 5
network system or systems on or before a certain date; requiring each gas company 6
to submit a certain proposal or proposals to the Public Service Commission for 7
approval on or before a certain date; authorizing a municipal corporation, county, or 8
community organization to submit neighborhoods to gas companies for consideration 9
as part of a pilot system; establishing requirements and authorizations for the 10
development and implementation of a proposal and thermal energy network system; 11
requiring the Commission to approve, approve with modifications, or reject each 12
proposal on or before a certain date; requiring the Commission, in consultation with 13
the Maryland Energy Administration and the Office of People’s Counsel, to make a 14
determination on whether to make a pilot system permanent after the completion of 15
the pilot system’s pilot period; establishing funding requirements for the 16
Administration to cover certain costs; requiring the Administration to coordinate 17
with the Department of Housing and Community Development to provide certain 18
services or funding; requiring the Maryland Environmental Service to issue certain 19
procurements for certain projects; establishing certain employment requirements for 20
certain projects; and generally relating to thermal energy network systems. 21
BY repealing and reenacting, without amendments, 22
Article – Public Utilities 23
Section 7–703(f)(1) 24
Annotated Code of Maryland 25
(2020 Replacement Volume and 2023 Supplement) 26
BY adding to 27
Article – Public Utilities 28
Section 7–1001 through 7–1006 to be under the new subtitle “Subtitle 10. Thermal 29 2 SENATE BILL 570
Energy Network Systems” 1
Annotated Code of Maryland 2
(2020 Replacement Volume and 2023 Supplement) 3
BY repealing and reenacting, without amendments, 4
Article – Environnent 5
Section 1–701(a)(1), (7), and (8) 6
Annotated Code of Maryland 7
(2013 Replacement Volume and 2023 Supplement) 8
BY repealing and reenacting, without amendments, 9
Article – Housing and Community Development 10
Section 4–1801(a) and (c) 11
Annotated Code of Maryland 12
(2019 Replacement Volume and 2023 Supplement) 13
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 14
That the Laws of Maryland read as follows: 15
Article – Public Utilities 16
7–703. 17
(f) (1) (i) In this subsection the following words have the meanings 18
indicated. 19
(ii) “Area median income” has the meaning stated in § 4–1801 of the 20
Housing and Community Development Article. 21
(iii) “Low or moderate income housing” means housing that is 22
affordable for a household with an aggregate annual income that is below 120% of the area 23
median income. 24
SUBTITLE 10. THERMAL ENERGY NETWORK SYSTEMS. 25
7–1001. 26
(A) IN THIS SUBTITLE THE FOLLOWING WORDS HAVE THE MEANINGS 27
INDICATED. 28
(B) “ADMINISTRATION ” MEANS THE MARYLAND ENERGY 29
ADMINISTRATION . 30
(C) “BEHIND–THE–METER PROJECT ” MEANS A PROJECT THAT INVOLVES A 31
PHYSICAL, OPERATIONAL , OR BEHAVIORAL MODIFI CATION ON THE CUSTOM ER SIDE 32
OF A UTILITY METER , INCLUDING REPLACEMEN T OF APPLIANCES , RETROFITS, AND 33 SENATE BILL 570 3
PANEL UPGRADES . 1
(D) “COMMUNITY BENEFIT AGR EEMENT” MEANS AN AGREEMENT 2
APPLICABLE TO THE CO NSTRUCTION OF ANY TH ERMAL ENERGY NETWORK SYSTEM 3
AND ANY ACCOMPANYING RESIDENTIAL ELECTRIF ICATION THAT: 4
(1) PROMOTES INCREASED O PPORTUNITIES FOR LOC AL BUSINESSES 5
AND SMALL, MINORITY, WOMEN–OWNED, AND VETERAN –OWNED BUSINESSES IN THE 6
CLEAN ENERGY INDUSTR Y; 7
(2) ENSURES THE TIMELY , SAFE, AND EFFICIENT COMPLE TION OF 8
THE PROJECT BY : 9
(I) FACILITATING A STEAD Y SUPPLY OF HIGHLY S KILLED 10
CRAFT WORKERS WHO SH ALL BE PAID NOT LESS THAN THE PREVAILING WAGE RATE 11
DETERMINED BY THE COMMISSIONER OF LABOR AND INDUSTRY UNDER TITLE 17, 12
SUBTITLE 2 OF THE STATE FINANCE AND PROCUREMENT ARTICLE; AND 13
(II) GUARANTEEING THAT TH E CONSTRUCTION WORK 14
PERFORMED IN CONNECT ION WITH THE PROJECT WILL BE SUBJECT TO A N 15
AGREEMENT THAT : 16
1. ESTABLISHES THE TERM S AND CONDITIONS OF 17
EMPLOYMENT AT THE CO NSTRUCTION SITE OF T HE PROJECT OR A PORT ION OF THE 18
PROJECT; 19
2. GUARANTEES AGAINST S TRIKES, LOCKOUTS, AND 20
SIMILAR DISRUPTIONS ; 21
3. ENSURES THAT ALL WOR K ON THE PROJECT FUL LY 22
CONFORMS TO ALL RELEVANT STATE AND FEDERAL LAW S, RULES, AND 23
REGULATIONS ; 24
4. CREATES MUTUALLY BIN DING PROCEDURES FOR 25
RESOLVING LABOR DISP UTES ARISING DURING THE TERM OF THE PROJ ECT; 26
5. SETS FORTH OTHER MEC HANISMS FOR 27
LABOR–MANAGEMENT COOPERATI ON ON M ATTERS OF MUTUAL INT EREST AND 28
CONCERN, INCLUDING PRODUCTIVI TY, QUALITY OF WORK , SAFETY, AND HEALTH ; 29
AND 30
6. BINDS ALL CONTRACTOR S AND SUBCONTRACTORS TO 31
THE TERMS OF THE AGR EEMENT THROUGH THE I NCLUSION OF APPROPRI ATE 32 4 SENATE BILL 570
PROVISIONS IN ALL RE LEVANT SOLICITAT ION AND CONTRACT DOC UMENTS; 1
(3) PROMOTES SAFE COMPLE TION OF THE PROJECT BY ENSURING 2
THAT AT LEAST 80% OF THE CRAFT WORKERS ON THE PROJECT HAVE COMPLETED 3
AN OCCUPATIONAL SAFETY AND HEALTH ADMINISTRATION 10–HOUR COURSE ; 4
(4) PROMOTES CAREER TRAI NING OPP ORTUNITIES IN THE 5
MANUFACTURING , MAINTENANCE , AND CONSTRUCTION IND USTRIES FOR LOCAL 6
RESIDENTS, VETERANS, WOMEN, MINORITIES, AND FORMERLY INCARCE RATED 7
INDIVIDUALS; 8
(5) INCLUDES PROVISIONS FOR LOCAL HIRING AND THE HIRING OF 9
HISTORICALLY DISADVA NTAGED GROU PS; 10
(6) REFLECTS A 21ST–CENTURY LABOR –MANAGEMENT APPROACH BY 11
DEVELOPERS AND SUPPL IERS BASED ON COOPER ATION, HARMONY, AND 12
PARTNERSHIP THAT PRO ACTIVELY SEEKS TO EN SURE THAT WORKERS CA N FREELY 13
CHOOSE TO BOTH ORGAN IZE AND COLLECTIVELY BARGAIN; 14
(7) USES L OCALLY, SUSTAINABLY, AND DOMESTICALLY 15
MANUFACTURED CONSTRU CTION MATERIALS AND COMPONENTS TO THE EX TENT 16
PRACTICABLE ; 17
(8) PROMOTES THE USE OF SKILLED LOCAL LABOR , PARTICULARLY 18
WITH REGARD TO THE C ONSTRUCTION AND MANU FACTURING COMPONENTS OF THE 19
PROJECT, USING METHODS INCLUDIN G OUTREACH , HIRING, OR REFERRAL 20
METHODS THAT ARE AFF ILIATED WITH REGISTE RED APPRENTICESHIP P ROGRAMS 21
UNDER TITLE 11, SUBTITLE 4 OF THE LABOR AND EMPLOYMENT ARTICLE; AND 22
(9) AUTHORIZES THE MARYLAND DEPARTMENT OF LABOR AND THE 23
COMMISSION TO CONSIDE R, REVIEW, AND ENFORCE A PUBLIC SERVICE COMPANY ’S 24
COMPLIANCE WITH ANY COMMUNITY BENEFIT AG REEMENT. 25
(E) “FRONT–OF–METER PROJECT ” MEANS A PROJECT THAT IMPACTS THE 26
UTILITY SIDE OF A ME TER. 27
(F) “GEOTHERMAL BOREHOLE ” MEANS A GEOTHERMAL SHAFT DRILLED 28
INTO THE EARTH FOR U SE IN A SYSTEM THAT USES THE THERMAL PRO PERTIES OF 29
THE EARTH OR GROUNDW ATER TO HEAT OR COOL BUILDINGS. 30
(G) “LEARNING FROM THE GROUND UP” MEANS THE LEARNING FROM THE 31
GROUND UP RESEARCH TEAM FORM ED BY THE HOME ENERGY EFFICIENCY TEAM. 32
SENATE BILL 570 5
(H) “LOW OR MODERATE INCOM E HOUSING” HAS THE MEANING STAT ED IN 1
§ 7–703(F)(1)(III) OF THIS TITLE. 2
(I) “PILOT SYSTEM” MEANS A PILOT THERMA L ENERGY NETWORK SYS TEM 3
DEVELOPED BY A GAS C OMPANY TO REPLACE GA S INFRASTRUCTURE WIT H A 4
THERMAL ENERGY N ETWORK SYSTEM . 5
(J) “PJM CAPACITY MARKET ” MEANS THE CAPACITY M ARKET OF PJM 6
INTERCONNECTION , LLC OR ANY SUCCESSOR ORG ANIZATION THAT SERVI CES THE 7
PJM REGION. 8
(K) “THERMAL ENERGY NETWOR K SYSTEM” MEANS A SYSTEM : 9
(1) OF CLOSED LOOP UNDER GROUND PIPING INFR ASTRUCTURE , 10
INCLUDING GEOTHERMAL BOREHOLES , LEADING UP TO A UTIL ITY METER FOR THE 11
CONVEYANCE OR STORAG E OF RENEWABLE , NONGREENHOUSE GAS –EMITTING 12
THERMAL ENERGY ; AND 13
(2) THAT CREATES A NETWO RK OF CUSTOMERS WITH THERMAL 14
ENERGY FOR HEATING A ND COOLING THRO UGH NONCOMBUSTING EL ECTRIC HEAT 15
PUMPS. 16
7–1002. 17
(A) (1) ON OR BEFORE OCTOBER 1, 2024, EACH GAS COMPANY SHA LL: 18
(I) BEGIN TO DEVELOP A P LAN FOR A PILOT SYST EM OR 19
SYSTEMS; AND 20
(II) FILE NOTICE WITH THE COMMISSION THAT THE C OMPANY 21
HAS BEGUN PLAN DEVELOPMENT . 22
(2) IN DEVELOPING A PLAN FOR A PILOT SYSTEM , A GAS COMPANY 23
SHALL COORDINATE WIT H COMMUNITY GROUPS , LOCAL GOVERNMENTS , ANY 24
CERTIFIED REPRESENTA TIVES OF THE EMPLOYE ES OF THE GAS COMPAN Y, THE 25
COMMISSION, THE ADMINISTRATION , AND ANY OTHER GROUP S THE GAS COMPANY 26
CONSIDERS NECESSARY TO ALLOW FOR DIVERSE DESIGN AMONG PILOT S YSTEMS. 27
(3) EACH GAS COMPANY SHAL L INCLUDE IN THE NOT ICE FILED 28
UNDER PARAGRAPH (1) OF THIS SUBSECTION : 29
(I) DETAILS OF ANY COORD INATION WITH COMMUNI TY 30
GROUPS, LOCAL GOVERNMENTS , CERTIFIED REPRESENTA TIVES OF THE 31 6 SENATE BILL 570
EMPLOYEES OF THE GAS COMPANY, THE COMMISSION, THE ADMINISTRATION , AND 1
ANY OTHER GROUPS THE GAS COMPANY CONSIDER S NECESSARY TO ALLOW FOR 2
DIVERSE DESIGN AMONG PILOT SYSTEMS; AND 3
(II) ANY LETTERS OF SUPPO RT FROM INTERESTED GROUPS . 4
(B) (1) ON OR BEFORE JULY 1, 2025, EACH GAS COMPANY SHA LL SUBMIT 5
EITHER ONE OR TWO PR OPOSALS FOR A PILOT SYSTEM TO THE COMMISSION FOR 6
APPROVAL. 7
(2) A PROPOSAL FOR A PILOT SYSTEM SHALL ENSURE THAT AT LEAST 8
80% OF ITS CUSTOMERS ARE FROM LOW OR MODERATE INCOME HOUSING . 9
(3) A CUSTOMER MAY CHOOSE TO OPT OUT OF A PILO T SYSTEM 10
BEFORE THE PROPOSAL FOR THE PILOT SYSTEM IS SUBMITTED. 11
(4) EACH PROPOSAL FOR A P ILOT SYSTEM SHALL DE MONSTRATE 12
THAT THE GAS COMPANY HAS SOUGHT ACCESS TO ANY AVAILABLE FEDERAL 13
FUNDING IN THE FORM OF A MATCH, GRANT, LOAN, OR TAX CREDIT , INCLUDING 14
THOSE ESTABLISHED UN DER THE ENERGY INFRASTRUCTURE REINVESTMENT 15
CATEGORY OF THE TITLE 17 CLEAN ENERGY FINANCING PROGRAM AND THE 16
GREENHOUSE GAS REDUCTION FUND UNDER THE FE DERAL INFLATION 17
REDUCTION ACT OF 2022. 18
(5) EACH GAS COMPANY IS R ESPONSIBLE FOR ENSUR ING THAT EACH 19
PROPOSAL SUBMITTED B Y THE GAS COMPANY CO MPLIES WITH ALL APPL ICABLE 20
FEDERAL STATUTES , REGULATIONS , AND GUIDANCE RELATIN G TO ANY FEDERAL 21
FUNDING. 22
(6) EACH PROPOSAL SHALL ADDRE SS: 23
(I) HOW THE PILOT SYSTEM WILL DEVELOP USEFUL 24
INFORMATION FOR THE ADOPTION OF REGULATI ONS GOVERNING THERMA L 25
ENERGY NETWORK SYSTE MS; 26
(II) HOW THE PILOT SYSTEM FURTHERS GREENHOUSE GAS 27
EMISSIONS REDUCTION GOALS; 28
(III) HOW THE PILOT SYSTEM ADVA NCES FINANCIAL AND 29
TECHNICAL APPROACHES TO EQUITABLE AND AFF ORDABLE BUILDING 30
ELECTRIFICATION ; 31
(IV) HOW THE PILOT SYSTEM CREATES BENEFITS TO ITS 32 SENATE BILL 570 7
CUSTOMERS , EMPLOYEES, AND SOCIETY AT LARGE , INCLUDING PUBLIC HEA LTH 1
BENEFITS, QUALITY JOB RETENTION OR CRE ATION, RELIABILITY, AND INCREASED 2
AFFORDABILITY OF REN EWABLE THERMAL ENERG Y OPTIONS; 3
(V) HOW THE PILOT SYSTEM CONTRIBUTES TO AVOID ING COSTS 4
TO ELECTRIC DISTRIBU TION AND TRANSMISSIO N SYSTEMS THAT WOULD 5
OTHERWISE BE REQUIRE D FOR ELECT RIFICATION BY COMPAR ING THE PROPOSED 6
SYSTEM TO THE COST O F ELECTRIFICATION US ING THE MOST WIDELY 7
COMMERCIALLY AVAILAB LE AIR–SOURCE HEAT PUMPS ; 8
(VI) HOW THE PILOT SYSTEM CONTRIBUTES TO AVOID ING COSTS 9
RELATED TO GAS PIPE REPLACEMENT ; 10
(VII) THE EXTENT TO WHICH THE PROPOSA L GIVES PRIORITY TO 11
UNDERSERVED OR OVERB URDENED COMMUNITIES AS DEFINED IN § 1–701(A) OF 12
THE ENVIRONMENT ARTICLE; 13
(VIII) THE PILOT SYSTEM ’S ABILITY TO BID DEM AND REDUCTION 14
INTO THE PJM CAPACITY MARKET ; 15
(IX) NEIGHBORHOODS AT THE END POINT OF A GAS S YSTEM 16
WHERE A FULL TRANSIT ION FROM GAS SYSTEMS TO ELECTRIFICATION C OULD BE 17
FACILITATED WITHIN T HE PILOT PERIOD OR W ITHIN 5 YEARS AFTER THE PILO T 18
PERIOD CONCLUDES ; 19
(X) SAFETY; 20
(XI) RELIABILITY; 21
(XII) ENVIRONMENTAL ACCEPT ABILITY OF THE FLUID 22
TECHNOLOGY EMPLOYED ; 23
(XIII) OPERATIONS; 24
(XIV) MAINTENANCE ; 25
(XV) CUSTOMER COMPLAINT R ESOLUTION; 26
(XVI) EMERGENCY RESPONSE ; 27
(XVII) POINTS OF INTERCONNE CTION BETWEEN THE GA S 28
COMPANY AND HOMEOWNE R FOR ANY FLUID TRAN SFER; 29
8 SENATE BILL 570
(XVIII) TECHNOLOGY TO BE USE D TO SHUT OFF FLUID FLOW TO 1
CUSTOMERS ; 2
(XIX) CUSTOMER SERVICE TER MINATION IN THE EVEN T OF BILL 3
NONPAYMENT ; 4
(XX) LIFE EXPECTANCY OF T HE GEOTHERMAL SYSTEM ; AND 5
(XXI) ANY OTHER REQUIREMEN TS AS DETERMINED BY THE 6
COMMISSION. 7
(7) EACH PROPOSAL SHALL I NCLUDE: 8
(I) A PROPOSED RATE STRU CTURE FOR THE PILOT SYSTEM 9
THAT ENSURES THAT AN Y CUSTOMER PARTICIPA TING IN THE PILOT SY STEM DOES 10
NOT PAY MORE FOR UTI LITIES THAN IF THE C USTOMER HAD NOT PART ICIPATED; 11
AND 12
(II) A PROPOSED SET OF MEASUREMEN TS OF ENERGY UNITS 13
AND ACCOUNTING STAND ARDS. 14
(8) (I) A MUNICIPAL CORPORATIO N, COUNTY, OR COMMUNITY 15
ORGANIZATION MAY SUB MIT NEIGHBORHOODS TO GAS COMPANIES FOR 16
CONSIDERATION AS PAR T OF A PILOT SYSTEM . 17
(II) A MUNICIPAL CORPORATIO N, COUNTY, OR COMMUNITY 18
ORGANIZATION THAT SU BMITS A NEIGHBORHOOD TO A GAS COMPANY FOR 19
CONSIDERATION AS PAR T OF A PILOT SYSTEM UNDER SUBPARAGRAPH (I) OF THIS 20
PARAGRAPH SHALL SUBM IT A COPY OF ITS PRO POSAL TO THE COMMISSION. 21
(C) (1) ON OR BEFORE DECEMBER 31, 2025, THE COMMISSION MAY 22
APPROVE, APPROVE WITH MODIFIC ATIONS, OR REJECT A PROPOSAL . 23
(2) SUBJECT TO PARAGRAPH (3) OF THIS SUBSECTION , IF THE 24
COMMISSION DETERMINES THAT A PROPOSAL IS I N THE PUBLIC INTERES T, THE 25
COMMISSION SHALL APPR OVE THE PROPOSAL . 26
(3) IN DETERMINING WHETHE R TO APPROVE , APPROVE WITH 27
MODIFICATIONS , OR REJECT A PROPOSAL , THE COMMISSION SHALL : 28
(I) CONSIDER THE PROJECT ED COSTS AND BENEFIT S OF THE 29
PROJECTS PROPOSED FO R INCLUSION IN THE P ILOT SYSTEM BY USING A TEST THAT 30
INCLUDES: 31 SENATE BILL 570 9
1. SOCIETAL COSTS AND B ENEFITS; AND 1
2. AVOIDED ENERGY AND I NFRASTRUCTURE 2
INVESTMENTS ; 3
(II) DETERMINE WHETHER TH E PILOT SYSTEM IS IN THE PUBLIC 4
INTEREST AND IN THE INTEREST OF RATEPAYE RS; 5
(III) DETERMINE HOW EACH P ILOT SYSTEM’S PERFORMANCE 6
WILL BE EVALUATED DURING THE PILOT SYSTEM’S DURATION; AND 7
(IV) ENSURE THAT EACH PIL OT SYSTEM: 8
1. HAS A PROVISION FOR CUSTOMERS WHO MAY WI SH TO 9
OPT OUT DURING THE C OURSE OF THE PILOT P ERIOD; AND 10
2. DETAILS RATEPAYER IM PACTS FOR PILOT SYST EM 11
PARTICIPANTS AND ALL CUSTOMERS IN THE GAS COMPANY’S SERVICE TERRITORY . 12
(4) (I) EXCEPT AS PROVIDED IN SUBPARAGRAPH (II) OF THIS 13
PARAGRAPH , EACH GAS COMPANY SHA LL COMPLETE CONSTRUC TION OF A PILOT 14
SYSTEM WITHIN 1 YEAR AFTER THE COMMISSION APPROVES T HE SYSTEM. 15
(II) THE COMMISSION MAY EXTEND THE DEADLINE UNDER 16
SUBPARAGRAPH (I) OF THIS PARAGRAPH FO R GOOD CAUSE SHOWN . 17
(5) IF THE COMMISSION APPROVES A PROPOSAL WITH 18
MODIFICATIONS , THE COMMISSION SHALL GIVE THE GAS COMPANY A RE ASONABLE 19
AMOUNT OF TIME TO MA KE THE NECESSARY MODI FICATIONS. 20
(6) ON COMPLETION OF A PI LOT SYSTEM, THE GAS COMPANY SHAL L 21
FILE WITH THE COMMISSION FOR EVALUA TION ANY INFORMATION RELEVANT TO 22
THE CRITERIA ESTABLI SHED UNDER PARAGRAPH (3) OF THIS SUBSECTION . 23
(D) (1) EACH PILOT SYSTEM SHALL MEET THE REQUI REMENTS FOR 24
PILOT SYSTEMS UNDER THIS SUBTITLE FOR 2 YEARS AFTER THE PILO T SYSTEM IS 25
INITIATED. 26
(2) (I) ONCE THE 2–YEAR PERIOD UNDER PA RAGRAPH (1) OF THIS 27
SUBSECTION HAS PASSE D, THE COMMISSION, IN CONSULTATION WITH THE 28
ADMINISTRATION AND THE OFFICE OF PEOPLE’S COUNSEL, SHALL DETERMINE 29
WHETHER TO MAKE THE PILOT SYSTEM PERMANE NT. 30 10 SENATE BILL 570
(II) A PILOT SYSTEM MADE PE RMANENT UNDER 1
SUBPARAGRAPH (I) OF THIS PARAGRAPH SH ALL CONTINUE TO MEET THE 2
REQUIREMENTS PLACED ON PILOT SYSTEMS UND ER THIS SUBTITLE. 3
(E) (1) EACH GAS COMPANY IMPL EMENTING A PILOT SYS TEM SHALL 4
PARTICIPATE IN STAND ARDIZED DATA COLLECT ION COORDINATED BY T HE 5
COMMISSION. 6
(2) ANY STANDARDIZED DATA COLLECTED UNDER PARA GRAPH (1) OF 7
THIS SUBSECTION SHAL L: 8
(I) BE FILED WITH THE COMMISSION BY THE APPROP RIATE 9
GAS COMPANY ; AND 10
(II) INCLUDE DATA FROM TH E LEARNING FROM THE GROUND 11
UP AND ANY OTHER NATI ONAL RESEARCH PROJEC T FOR THE DEVELOPMEN T OF 12
THERMAL ENERGY NETWO RK SYSTEMS THAT THE COMMISSION CONSIDERS 13
APPROPRIATE . 14
(F) (1) THE ADMINISTRATION SHALL PR OVIDE FUNDING IN THE FORM OF 15
GRANTS TO COMMUNITY –BASED ORGANIZATIONS THAT PERFORM OUTREAC H IN 16
NEIGHBORHOODS TO INC REASE PARTICIPATION IN A PILOT SYSTEM AN D 17
COORDINATE THE IMPLE MENTATION OF AN APPR OVED PILOT SYSTEM . 18
(2) THE ADMINISTRATION MAY PROVIDE UP TO $1,000,000 IN 19
FUNDING TO A COMMUNI TY–BASED ORGANIZATION U NDER PARAGRAPH (1) OF THIS 20
SUBSECTION. 21
(3) FUNDING UNDER THIS SU BSECTION MAY BE PROV IDED ONLY 22
BEFORE OCTOBER 1, 2025. 23
(4) FUNDING UNDER THIS SU BSECTION MAY BE PROV IDED FROM THE 24
STRATEGIC ENERGY INVESTMENT FUND ESTABLISHED UNDE R § 9–20B–05 OF THE 25
STATE GOVERNMENT ARTICLE. 26
(G) (1) A GAS COMPANY MAY REQU EST APPROVAL FROM TH E 27
COMMISSION TO TRACK T HE COSTS OF DEVELOPI NG A PROPOSAL UNDER THIS 28
SECTION. 29
(2) A REQUEST UNDER PA RAGRAPH (1) OF THIS SUBSECTION S HALL 30
INCLUDE A PROPOSED D EVELOPMENT PLAN AND BUDGET. 31
SENATE BILL 570 11
(3) THE COMMISSION SHALL APPR OVE A REQUEST UNDER 1
PARAGRAPH (1) OF THIS SUBSECTION O N FINDING THAT THE P ROPOSED PLAN AND 2
COSTS ARE REASONABLE AND IN THE PUBLIC IN TEREST. 3
(4) AT A GAS COMPANY ’S NEXT RATE CASE PRO CEEDING FOLLOWING 4
THE APPROVAL OF A RE QUEST UNDER THIS SUB SECTION, THE COMMISSION SHALL 5
AUTHORIZE RECOVERY O F PRUDENTLY INCURRED COSTS ASSOCIATED WIT H 6
DEVELOPING THE PROPO SAL AND ANY CARRYING COSTS THAT THE COMMISSION 7
DETERMINES ARE APPRO PRIATE. 8
7–1003. 9
(A) (1) THE ADMINISTRATION SHALL COORDINATE FUNDING S OURCES, 10
INCLUDING ALL AVAILA BLE FEDERAL FUNDING , PHILANTHROPIC FUNDIN G, 11
FUNDING AVAILABLE UN DER THE EMPOWER MARYLAND PROGRAM, AND 12
STRATEGIC ENERGY INVESTMENT FUND FUNDING ALLOCATE D TO ENERGY 13
EFFICIENCY, TO COVER THE COSTS F OR ALL BEHIND –THE–METER PROJECTS , 14
INCLUDING FULL ELECT RIFICATION AND WEATH ERIZATION, ASSOCIATED WITH A 15
THERMAL ENERGY NETWO RK SYSTEM SO THAT AN Y AFFECTED RESIDENTI AL 16
CUSTOMERS ARE NOT RE QUIRED TO PAY FOR CO NNECTION TO THE THER MAL 17
ENERGY NETWORK SYSTE M OR ANY APPLIANCE R EPLACEMENTS REQUIRED FOR 18
ELECTRIFICATION . 19
(2) UNLESS PRECLUDED BY F EDERAL LAW , REGULATION , OR 20
PROGRAM REQUIREMENT GUIDELINES, THE ADMINISTRATION SHALL RESERVE 21
$12,000,000 OF FEDERAL FUNDING F ROM THE U.S. DEPARTMENT OF ENERGY TO 22
ENSURE ADEQUATE FUND ING FOR ANY APPLIANC ES INSTALLED IN CONN ECTION 23
WITH A PILOT SYSTEM . 24
(3) THE ADMINISTRATION SHALL COORDINATE WITH THE 25
DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT TO PROVID E 26
SERVICES OR FUNDING FOR WEATHERIZATION F OR ALL LOW OR MODERA TE INCOME 27
HOUSING WITHIN THE P ILOT SYSTEM’S AREA. 28
(4) IN PROVIDING FUNDING MADE AVAILABLE UNDER THE FEDERAL 29
INFLATION REDUCTION ACT OF 2022 FOR BEHIND–THE–METER PROJECTS , THE 30
ADMINISTRATION S HALL GIVE PRIORITY T O LOW AND MODERATE I NCOME HOUSING . 31
(B) THE MARYLAND ENVIRONMENTAL SERVICE: 32
(1) SHALL ISSUE PROCUREM ENTS FOR BEHIND –THE–METER 33
PROJECTS RELATING TO ANY APPLIANCE OR PAN EL REPLACEMENTS OR U PGRADES 34
NECESSARY TO CONNECT TO A THERMAL ENE RGY NETWORK SYSTEM A ND OPERATE 35 12 SENATE BILL 570
WITHOUT GAS; 1
(2) SHALL PROVIDE A PROC UREMENT SUBMISSION W INDOW OF NOT 2
LESS THAN 90 DAYS; 3
(3) SHALL AWARD CONTRACT S IN A TIMELY MANNER ; AND 4
(4) MAY ENTER INTO A CON TRACT OR CONTRACTS F OR THE 5
PROCUREMENT . 6
(C) THE ADMINISTRATION AND THE MARYLAND ENVIRONMENTAL 7
SERVICE SHALL COORDIN ATE WITH GAS COMPANI ES TO ENSURE THAT 8
BEHIND–THE–METER PROJECTS CONNE CT TO THERMAL ENERGY NETWORK 9
SYSTEMS THAT SERVE C USTOMERS. 10
7–1004. 11
(A) FOR ANY FRONT –OF–METER PROJECTS RELAT ED TO THE 12
CONSTRUCTION OF ANY THERMAL ENERGY NETWO RK SYSTEM UNDER THIS 13
SUBTITLE, AN ELECTRIC COMPANY , A GAS COMPANY , OR A WATER COMPANY S HALL: 14
(1) WORK WITH EMPLOYEES ALREADY UNDER CONTRA CT WITH THE 15
COMPANY; OR 16
(2) USE QUALIFIED CONTRA CTORS THAT ABIDE BY A COMMUNITY 17
BENEFIT AGREEMENT . 18
(B) AN ELECTRIC COMPANY , A GAS COMPANY , OR A WATER COMPANY S HALL 19
GIVE ITS EMPLOYEE BA RGAINING UNIT AN OPP ORTUNITY TO WORK ON ANY 20
FRONT–OF–METER PROJECTS RELAT ED TO THE CONSTRUCTI ON OF ANY THERMAL 21
ENERGY NETWORK SYSTE M. 22
(C) ANY RESIDENTIAL ELECTR IFICATION OR EFFICIE NCY CONTRACTS 23
PROCURED BY THE MARYLAND ENVIRONMENTAL SERVICE SHALL BE SUBJ ECT TO A 24
COMMUNITY BENEFIT AG REEMENT. 25
(D) (1) AN ELECTRIC COMPANY , A GAS COMPANY , OR A WATER COMPANY 26
OPERATING A THERMAL ENERGY NETWORK SYST EM SHALL PROVIDE ITS EMPLOYEE 27
BARGAINING UNIT AN O PPORTUNITY TO PROVID E MAINTENANCE AND OP ERATIONS 28
FOR ANY THERMAL ENER GY NETWORK SYSTEM . 29
(2) (I) SUBJECT TO SUBPARAGRA PH (II) OF THIS PARAGRAPH , AN 30
ELECTRIC COMPANY , A GAS COMPANY , OR A WATER COMPANY M AY CONTRACT ANY 31 SENATE BILL 570 13
WORK UNDER THIS SUBT ITLE NOT CONDUCTED B Y THE COMPANY ’S EMPLOYEE 1
BARGAINING UNIT TO A QUALIFIED CONTRACTOR . 2
(II) AN ELECTRIC COMPANY , A GAS COMPANY , OR A WATER 3
COMPANY SHALL REQUIR E A CONTRACTOR OR SU BCONTRACTOR ON A PRO JECT 4
UNDER THIS SUB TITLE TO: 5
1. PAY THE AREA PREVAIL ING WAGE, INCLUDING WAGES 6
AND FRINGE BENEFITS ; 7
2. OFFER HEALTH CARE AN D RETIREMENT BENEFIT S TO 8
THE EMPLOYEES WORKIN G ON THE PROJECT ; 9
3. PARTICIPATE IN AN AP PRENTICESHIP PROGRAM 10
REGISTERED WITH THE STATE OR THE U.S. DEPARTMENT OF LABOR; 11
4. ESTABLISH AND EXECUT E A PLAN FOR OUTREAC H, 12
RECRUITMENT , AND RETENTION OF STATE RESIDENTS TO PE RFORM WORK ON THE 13
PROJECT, WITH AN ASPIRATIONAL GOAL OF 25% OF TOTAL WORK HOURS 14
PERFORMED BY MARYLAND RESIDENTS , INCLUDING R ESIDENTS WHO ARE : 15
A. RETURNING CITIZENS ; 16
B. WOMEN; 17
C. MINORITY INDIVIDUALS ; OR 18
D. VETERANS; 19
5. HAVE BEEN IN COMPLIA NCE WITH FEDERAL , STATE, 20
AND LOCAL WAGE AND H OUR LAWS FOR THE PRE VIOUS 3 YEARS; 21
6. BE SUBJECT TO ALL STATE REPORTING AND 22
COMPLIANCE REQUIREME NTS; AND 23
7. MAINTAIN ALL APPROPR IATE LICENSES IN GOO D 24
STANDING. 25
(E) (1) THE FINDINGS AND EVID ENCE RELIED ON BY TH E GENERAL 26
ASSEMBLY FOR THE CONT INUATION OF THE MINORITY BUSINESS ENTERPRISE 27
PROGRAM UNDER TITLE 14, SUBTITLE 3 OF THE STATE FINANCE AND 28
PROCUREMENT ARTICLE ARE INCORPORA TED IN THIS SUBSECTI ON. 29
14 SENATE BILL 570
(2) TO THE EXTENT PRACTIC ABLE AND AUTHORIZED BY THE U. S. 1
CONSTITUTION, AN APPROVED PILOT SY STEM APPLICANT AND T HE MARYLAND 2
ENVIRONMENTAL SERVICE SHALL COMPLY WITH THE STATE’S MINORITY BUSINESS 3
ENTERPRISE PROGRAM. 4
(3) (I) WITHIN 6 MONTHS AFTER THE APP ROVAL OF A PILOT 5
SYSTEM UNDER § 7–1002(C) OF THIS SUBTITLE , THE GOVERNOR’S OFFICE OF 6
SMALL, MINORITY, AND WOMEN BUSINESS AFFAIRS, IN CONSULTATION WITH THE 7
OFFICE OF THE ATTORNEY GENERAL AND THE GAS C OMPANY OPERATING THE 8
APPROVED PILOT SYSTE M, SHALL ESTABLISH A CL EAR PLAN FOR SETTING 9
REASONABLE AND APPRO PRIATE MINORITY BUSI NESS ENTERPRISE PART ICIPATION 10
GOALS AND PROCEDURES FOR THE PILOT SYSTEM . 11
(II) TO THE EXTENT PRACTICABLE , THE GOALS AND 12
PROCEDURES SPECIFIED IN SUBPARAGRAPH (I) OF THIS PARAGRAPH SH ALL BE 13
BASED ON THE REQUIRE MENTS OF TITLE 14, SUBTITLE 7 OF THE STATE FINANCE 14
AND PROCUREMENT ARTICLE AND THE REGUL ATIONS IMPLEMENTING THAT 15
SUBTITLE. 16
(4) (I) A GAS COMPANY OPERATING A P ILOT SYSTEM AND THE 17
MARYLAND ENVIRONMENTAL SERVICE SHALL SUBMIT AN ANNUAL REPORT ON 18
MINORITY ENTERPRISE PARTICIPATION TO THE COMMISSION. 19
(II) THE COMMISSION SHALL PROV IDE ANY REPORTS 20
RECEIVED UNDER SUBPA RAGRAPH (I) OF THIS PARAGRAPH TO THE GENERAL 21
ASSEMBLY, IN ACCORDANCE WITH § 2–1257 OF THE STATE GOVERNMENT ARTICLE. 22
7–1005. 23
(A) AN ELECTRIC COMPANY , A GAS COMPANY , OR A WATER COMPANY M AY 24
OWN, MANAGE, AND RECOVER COSTS AS SOCIATED WITH A THER MAL ENERGY 25
NETWORK SYSTEM SUBJE CT TO THE APPROVAL OF THE COMMISSION. 26
(B) AN ELECTRIC COMPANY , A GAS COMPANY , OR A WATER COMPANY M AY 27
DRILL A GEOTHERMAL B OREHOLE IN A PUBLIC UTILITY RIGHT–OF–WAY WHERE 28
FEASIBLE TO MEET THE REQUIREMENTS OF THIS SUBTITLE. 29
7–1006. 30
THE COMMISSION MAY RETAIN INDEPENDENT CONSULTA NTS AND EXPERTS 31
TO: 32
(1) ASSIST THE COMMISSION WITH ITS E VALUATION OF PILOT 33 SENATE BILL 570 15
SYSTEM APPLICATIONS UNDER § 7–1002(C) OF THIS SUBTITLE; AND 1
(2) SUPPORT THE COMMISSION IN THE COM PLETION OF ANY 2
REQUIREMENTS UNDER T HIS SUBTITLE. 3
Article – Environment 4
1–701. 5
(a) (1) In this section the following words have the meanings indicated. 6
(7) “Overburdened community” means any census tract for which three or 7
more of the following environmental health indicators are above the 75th percentile 8
statewide: 9
(i) Particulate matter (PM) 2.5; 10
(ii) Ozone; 11
(iii) National Air Toxics Assessment (NATA) diesel PM; 12
(iv) NATA cancer risk; 13
(v) NATA respiratory hazard index; 14
(vi) Traffic proximity; 15
(vii) Lead paint indicator; 16
(viii) National Priorities List Superfund site proximity; 17
(ix) Risk Management Plan facility proximity; 18
(x) Hazardous waste proximity; 19
(xi) Wastewater discharge indicator; 20
(xii) Proximity to a Concentrated Animal Feeding Operation (CAFO); 21
(xiii) Percent of the population lacking broadband coverage; 22
(xiv) Asthma emergency room discharges; 23
(xv) Myocardial infarction discharges; 24
(xvi) Low–birth–weight infants; 25
16 SENATE BILL 570
(xvii) Proximity to emitting power plants; 1
(xviii) Proximity to a Toxic Release Inventory (TRI) facility; 2
(xix) Proximity to a brownfields site; 3
(xx) Proximity to mining operations; and 4
(xxi) Proximity to a hazardous waste landfill. 5
(8) “Underserved community” means any census tract in which, according 6
to the most recent U.S. Census Bureau Survey: 7
(i) At least 25% of the residents qualify as low–income; 8
(ii) At least 50% of the residents identify as nonwhite; or 9
(iii) At least 15% of the residents have limited English proficiency. 10
Article – Housing and Community Development 11
4–1801. 12
(a) In this subtitle the following words have the meanings indicated. 13
(c) “Area median income” means the median household income for the area 14
adjusted for household size as published and annually updated by the United States 15
Department of Housing and Urban Development. 16
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect July 17
1, 2024. 18