Maryland 2024 2024 Regular Session

Maryland Senate Bill SB570 Engrossed / Bill

Filed 04/01/2024

                     
 
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. 
          *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 
Committee Report: Favorable with amendments 
Senate action: Adopted 
Read second time: March 15, 2024 
 
CHAPTER ______ 
 
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 certain gas company companies and authorizing certain 5 
gas companies to develop a plan for a pilot thermal energy network system or 6 
systems on or before a certain date; requiring each certain gas company companies 7 
to submit a certain proposal or proposals to the Public Service Commission for 8 
approval on or before a certain date; authorizing a municipal corporation, county, or 9 
community organization to submit neighborhoods to gas companies for consideration 10 
as part of a pilot system; establishing requirements and authorizations for the 11 
development and implementation of a proposal and thermal energy network system; 12 
requiring authorizing the Commission to approve, approve with modifications, or 13 
reject each proposal on or before a certain date; requiring the Commission, in 14 
consultation with the Maryland Energy Administration and, the Office of People’s 15 
Counsel, a certain company, a certain certified representative, and certain 16 
customers, to make a determination on whether to make a pilot system permanent 17 
after the completion of the pilot system’s pilot period; establishing funding 18 
requirements for the Administration to cover assist certain companies in covering 19 
certain costs; providing for the payment and recovery of certain costs; requiring the 20 
Administration to coordinate with the Department of Housing and Community 21 
Development to provide certain services or funding; requiring the Maryland 22 
Environmental Service to issue certain procurements for certain projects a gas 23 
company to be responsible for certain costs associated with certain 24 
behind–the–meter projects; establishing certain employment and wage 25  2 	SENATE BILL 570  
 
 
requirements for certain projects; and generally relating to thermal energy network 1 
systems. 2 
 
BY repealing and reenacting, without amendments, 3 
 Article – Public Utilities 4 
Section 7–703(f)(1) 5 
 Annotated Code of Maryland 6 
 (2020 Replacement Volume and 2023 Supplement) 7 
 
BY adding to 8 
 Article – Public Utilities 9 
Section 7–1001 through 7–1006 to be under the new subtitle “Subtitle 10. Thermal 10 
Energy Network Systems” 11 
 Annotated Code of Maryland 12 
 (2020 Replacement Volume and 2023 Supplement) 13 
 
BY repealing and reenacting, without amendments, 14 
 Article – Environnent Environment 15 
Section 1–701(a)(1), (7), and (8) 16 
 Annotated Code of Maryland 17 
 (2013 Replacement Volume and 2023 Supplement) 18 
 
BY repealing and reenacting, without amendments, 19 
 Article – Housing and Community Development 20 
Section 4–1801(a) and (c) 21 
 Annotated Code of Maryland 22 
 (2019 Replacement Volume and 2023 Supplement) 23 
 
 SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 24 
That the Laws of Maryland read as follows: 25 
 
Article – Public Utilities 26 
 
7–703. 27 
 
 (f) (1) (i) In this subsection the following words have the meanings 28 
indicated. 29 
 
 (ii) “Area median income” has the meaning stated in § 4–1801 of the 30 
Housing and Community Development Article. 31 
 
 (iii) “Low or moderate income housing” means housing that is 32 
affordable for a household with an aggregate annual income that is below 120% of the area 33 
median income. 34 
 
SUBTITLE 10. THERMAL ENERGY NETWORK SYSTEMS. 35 
   	SENATE BILL 570 	3 
 
 
7–1001. 1 
 
 (A) IN THIS SUBTITLE THE FOLLOWING WORDS HAVE THE MEANINGS 2 
INDICATED. 3 
 
 (B) “ADMINISTRATION ” MEANS THE MARYLAND ENERGY 4 
ADMINISTRATION . 5 
 
 (C) “BEHIND–THE–METER PROJECT ” MEANS A PROJECT THAT INVOLVES A 6 
PHYSICAL, OPERATIONAL , OR BEHAVIORAL MODIFI CATION ON THE CUSTOM ER SIDE 7 
OF A UTILITY METER , INCLUDING REPLACEMEN T OF APPLIANCES , RETROFITS, AND 8 
PANEL UPGRADES . 9 
 
 (D) “COMMUNITY BENEFIT AGR EEMENT” MEANS AN AGREEMENT 10 
APPLICABLE TO THE CO NSTRUCTION OF ANY TH ERMAL ENERGY NETWORK S YSTEM 11 
AND ANY ACCOMPANYING RESIDENTIAL ELECTRIF ICATION THAT: 12 
 
 (1) PROMOTES INCREASED O PPORTUNITIES FOR LOC AL BUSINESSES 13 
AND SMALL, MINORITY, WOMEN–OWNED, AND VETERAN –OWNED BUSINESSES IN THE 14 
CLEAN ENERGY INDUSTR Y; 15 
 
 (2) ENSURES THE TI MELY, SAFE, AND EFFICIENT COMPLE TION OF 16 
THE PROJECT BY : 17 
 
 (I) FACILITATING A STEAD Y SUPPLY OF HIGHLY S KILLED 18 
CRAFT WORKERS WHO SH ALL BE PAID NOT LESS THAN THE PREVAILING WAGE RATE 19 
DETERMINED BY THE COMMISSIONER OF LABOR AND INDUSTRY UNDER TITLE 17, 20 
SUBTITLE 2 OF THE STATE FINANCE AND PROCUREMENT ARTICLE; AND 21 
 
 (II) GUARANTEEING THAT TH	E CONSTRUCTION WORK 22 
PERFORMED IN CONNECT ION WITH THE PROJECT WILL BE SUBJECT TO A N 23 
AGREEMENT THAT : 24 
 
 1. ESTABLISHES THE TERM S AND CONDITIONS OF 25 
EMPLOYMENT AT THE CO NSTRUCTION SITE OF THE P ROJECT OR A PORTION OF THE 26 
PROJECT; 27 
 
 2. GUARANTEES AGAINST S TRIKES, LOCKOUTS, AND 28 
SIMILAR DISRUPTIONS ; 29 
 
 3. ENSURES THAT ALL WOR K ON THE PROJECT FUL LY 30 
CONFORMS TO ALL RELE VANT STATE AND FEDERAL LAW S, RULES, AND 31 
REGULATIONS , INCLUDING ALL REQUIR ED TRAINING FOR EMPL OYEES; 32 
  4 	SENATE BILL 570  
 
 
 4. CREATES MUTUALLY BIN DING PROCEDURES FOR 1 
RESOLVING LABOR DISP UTES ARISING DURING THE TERM OF THE PROJ ECT; 2 
 
 5. SETS FORTH OTHER MEC	HANISMS FOR 3 
LABOR–MANAGEMENT COOPERATI ON ON MATTERS OF MUT UAL INTER EST AND 4 
CONCERN, INCLUDING PRODUCTIVI TY, QUALITY OF WORK , SAFETY, AND HEALTH ; 5 
AND 6 
 
 6. BINDS ALL CONTRACTOR S AND SUBCONTRACTORS TO 7 
THE TERMS OF THE AGR EEMENT THROUGH THE I NCLUSION OF APPROPRI ATE 8 
PROVISIONS IN ALL RE LEVANT SOLICITATION AND CONTRACT DOCUM ENTS; 9 
 
 (3) PROMOTES SAFE COMPLE TION OF THE PROJECT BY ENSURING 10 
THAT AT LEAST 80% OF THE CRAFT WORKERS ON THE PROJECT HAVE COMPLETED 11 
AN OCCUPATIONAL SAFETY AND HEALTH ADMINISTRATION 10–HOUR COURSE ; 12 
 
 (4) PROMOTES CAREER TRAI NING OPPORTUNITIES I N THE 13 
MANUFACTURING, MAINTENANCE , AND CONSTRUCTION IND USTRIES FOR LOCAL 14 
RESIDENTS, VETERANS, WOMEN, MINORITIES, AND FORMERLY INCARCE RATED 15 
INDIVIDUALS; 16 
 
 (5) INCLUDES PROVISIONS FOR LOCAL HIRING AND THE HIRING OF 17 
HISTORICALLY DISADVA NTAGED GROUPS ; 18 
 
 (6) REFLECTS A 21ST–CENTURY LABOR –MANAGEMENT APPROACH BY 19 
DEVELOPERS AND SUPPL IERS BASED ON COOPER ATION, HARMONY, AND 20 
PARTNERSHIP THAT PRO ACTIVELY SEEKS TO EN SURE THAT WORKERS CA N FREELY 21 
CHOOSE TO BOTH ORGAN IZE AND COLLECTIVELY BARGAIN; 22 
 
 (7) USES LOCALLY , SUSTAINABLY, AND DOMESTICALLY 23 
MANUFACTURED CONSTRU CTION MATERIALS AND COMPONENTS TO THE EX TENT 24 
PRACTICABLE ; 25 
 
 (8) (7) PROMOTES THE USE OF 	SKILLED LOCAL LABOR , 26 
PARTICULARLY WITH RE GARD TO THE CONSTRUC TION AND MANUFACTURI NG 27 
COMPONENTS OF THE PR OJECT, USING METHODS INCLU DING OUTREACH , HIRING, 28 
OR REFERRAL METHODS 	THAT ARE AFFILIATED 	WITH REGISTERED 29 
APPRENTICESHIP PROGR AMS UNDER TITLE 11, SUBTITLE 4 OF THE LABOR AND 30 
EMPLOYMENT ARTICLE; AND 31 
 
 (9) (8) AUTHORIZES THE MARYLAND DEPARTMENT OF LABOR AND 32 
THE COMMISSION TO CONSIDE R, REVIEW, AND ENFORCE A PUBLIC SERVICE 33 
COMPANY’S COMPLIANCE WITH AN Y COMMUNITY BENEFIT AGREEMENT . 34 
   	SENATE BILL 570 	5 
 
 
 (E) “FINANCING PROGRAM” MEANS THE ENERGY INFRASTRUCTURE 1 
REINVESTMENT CATEGORY OF THE TITLE 17 CLEAN ENERGY FINANCING 2 
PROGRAM.  3 
 
 (E) (F) “FRONT–OF–METER PRO JECT” MEANS A PROJECT THAT IMPACTS 4 
THE UTILITY SIDE OF A METER. 5 
 
 (F) (G) “GEOTHERMAL BOREHOLE ” MEANS A GEOTHERMAL S HAFT 6 
DRILLED INTO THE EAR TH FOR USE IN A SYST EM THAT USES THE THE RMAL 7 
PROPERTIES OF THE EA RTH OR GROUNDWATER T O HEAT OR COOL BUILD INGS. 8 
 
 (H) “GREENHOUSE GAS REDUCTION FUND” MEANS THE GREENHOUSE GAS 9 
REDUCTION FUND UNDER THE FEDERA L INFLATION REDUCTION ACT OF 2022.  10 
 
 (G) (I) “LEARNING FROM THE GROUND UP” MEANS THE LEARNING 11 
FROM THE GROUND UP RESEARCH TEAM FORM ED BY THE HOME ENERGY 12 
EFFICIENCY TEAM. 13 
 
 (H) (J) “LOW OR MODERATE INCOM E HOUSING” HAS THE MEANING 14 
STATED IN § 7–703(F)(1)(III) OF THIS TITLE. 15 
 
 (I) (K) “PILOT SYSTEM” MEANS A PILOT THERMA L ENERGY NETWORK 16 
SYSTEM DEVELOPED BY A GAS COMPANY TO REP LACE GAS INFRASTRUCT URE WITH 17 
A THERMAL ENERG Y NETWORK SYSTEM . 18 
 
 (J) (L) “PJM CAPACITY MARKET ” MEANS THE CAPACITY M ARKET OF 19 
PJM INTERCONNECTION , LLC OR ANY SUCCESSOR ORG ANIZATION THAT SERVI CES 20 
THE PJM REGION. 21 
 
 (K) (M) “THERMAL ENERGY NETWOR K SYSTEM” MEANS A SYSTEM : 22 
 
 (1) OF CLOSED LOOP UNDER GROUND PIPING INFRASTRUCTUR E, 23 
INCLUDING GEOTHERMAL BOREHOLES , LEADING UP TO A UTIL ITY METER FOR THE 24 
CONVEYANCE OR STORAG E OF RENEWABLE , NONGREENHOUSE GAS –EMITTING 25 
THERMAL ENERGY ; AND 26 
 
 (2) THAT CREATES A NETWO RK OF CUSTOMERS WITH THERMAL 27 
ENERGY FOR HEATING A ND COOLING THROUGH NONC OMBUSTING ELECTRIC H EAT 28 
PUMPS. 29 
 
7–1002. 30 
 
 (A) (1) (I) ON OR BEFORE OCTOBER 1, 2024, EACH GAS COMPANY 31 
THAT SERVES AT LEAST 75,000 CUSTOMERS IN ITS DIS TRIBUTION TERRITORY 32  6 	SENATE BILL 570  
 
 
SHALL: 1 
 
 (I) 1. BEGIN TO DEVELOP A P LAN FOR A PILOT SYST EM OR 2 
SYSTEMS; AND 3 
 
 (II) 2. FILE NOTICE WITH THE COMMISSION THAT THE 4 
COMPANY HAS BEGUN PL AN DEVELOPMENT . 5 
 
 (II) ON OR BEFORE OCTOBER 1, 2024, A GAS COMPANY THAT 6 
SERVES FEWER THAN 75,000 CUSTOMERS IN ITS DIS TRIBUTION TERRITORY MAY 7 
DEVELOP A PLAN FOR A PILOT SYSTEM OR SYSTEMS IN ACCORDANCE WITH THE 8 
REQUIREMENTS OF THIS SECTION.  9 
 
 (2) IN DEVELOPING A PLAN FOR A PILOT SYSTEM , A GAS COMPANY 10 
SHALL COORDINATE WIT H COMMUNITY GROUPS , LOCAL GOVERNMENTS , ANY 11 
CERTIFIED REPRESENTA TIVES OF THE EMPLOYE ES OF THE GAS COMPA NY, THE 12 
COMMISSION, THE ADMINISTRATION , AND ANY OTHER GROUPS THE GAS COMPANY 13 
CONSIDERS NECESSARY TO ALLOW FOR DIVERSE DESIGN AMONG PILOT S YSTEMS. 14 
 
 (3) EACH GAS COMPANY SHAL L INCLUDE IN THE NOT ICE FILED 15 
UNDER PARAGRAPH (1) OF THIS SUBSECTION : 16 
 
 (I) DETAILS OF ANY COORDINAT ION WITH COMMUNITY 17 
GROUPS, LOCAL GOVERNMENTS , CERTIFIED REPRESENTA TIVES OF THE 18 
EMPLOYEES OF THE GAS COMPANY, THE COMMISSION, THE ADMINISTRATION , AND 19 
ANY OTHER GROUPS THE GAS COMPANY CONSIDER S NECESSARY TO ALLOW FOR 20 
DIVERSE DESIGN AMONG PILOT SYSTEMS; AND 21 
 
 (II) ANY LETTERS OF SUPPO RT FROM INTERESTED G ROUPS. 22 
 
 (B) (1) (I) ON OR BEFORE JULY 1, 2025, EACH GAS COMPANY THAT 23 
SERVES AT LEAST 75,000 CUSTOMERS IN ITS DIS TRIBUTION TERRITORY SHALL 24 
SUBMIT EITHER ONE OR TWO PROPOSALS FOR A PILOT SYSTEM TO THE COMMISSION 25 
FOR APPROVAL . 26 
 
 (II) A GAS COMPANY THAT SER VES FEWER THAN 75,000 27 
CUSTOMERS IN ITS DIS TRIBUTION TERRITORY MAY SUBMIT A PROPOSA L FOR A 28 
PILOT SYSTEM TO THE COMMISSION AFTER PROV IDING AT LEAST 60 DAYS’ NOTICE 29 
TO THE COMMISSION OF THE COMPANY’S INTENT TO FILE A P ROPOSAL.  30 
 
 (2) A PROPOSAL FOR A PILOT SYSTEM SHALL ENSURE THAT AT LEAST 31 
80% OF ITS CUSTOMERS ARE FROM LOW OR MODERATE INCOME HOUSING . 32 
   	SENATE BILL 570 	7 
 
 
 (3) A CUSTOMER MAY CHOOSE TO OPT OUT OF A PILO T SYSTEM 1 
BEFORE THE PROPOSAL FOR THE PILOT SYSTEM IS SUBMITTED . 2 
 
 (4) EACH PROPOSAL FOR A P ILOT SYSTEM SHALL DE MONSTRATE 3 
THAT THE GAS COMPANY HAS SOUGHT ACCESS TO OBTAINED, OR IS REASONABLY 4 
CERTAIN TO OBTAIN , ANY AVAILABLE FEDERA L FUNDING IN THE FOR M OF A MATCH, 5 
GRANT, LOAN, OR TAX CREDIT , INCLUDING THOSE ESTABLISHE D UNDER THE 6 
ENERGY INFRASTRUCTURE REINVESTMENT CATEGORY OF THE TITLE 17 CLEAN 7 
ENERGY FINANCING PROGRAM AND THE GREENHOUSE GAS REDUCTION FUND 8 
UNDER THE FEDERAL INFLATION REDUCTION ACT OF 2022. 9 
 
 (5) EACH GAS COMPANY IS R ESPONSIBLE FOR E NSURING THAT EACH 10 
PROPOSAL SUBMITTED B Y THE GAS COMPANY CO MPLIES WITH ALL APPL ICABLE 11 
FEDERAL STATUTES , REGULATIONS , AND GUIDANCE RELATIN G TO ANY FEDERAL 12 
FUNDING. 13 
 
 (6) EACH PROPOSAL SHALL A DDRESS: 14 
 
 (I) HOW THE PILOT SYSTEM WILL DEVELOP USEFUL 15 
INFORMATION FOR THE ADOPTION OF REGULATI ONS GOVERNING THERMA L 16 
ENERGY NETWORK SYSTE MS; 17 
 
 (II) HOW THE PILOT SYSTEM FURTHERS GREENHOUSE GAS 18 
EMISSIONS REDUCTION GOALS; 19 
 
 (III) HOW THE PILOT SYSTEM ADVANCES FINANCIAL A ND 20 
TECHNICAL APPROACHES TO EQUITABLE AND AFFORDABLE BUILD ING 21 
ELECTRIFICATION ; 22 
 
 (IV) HOW THE PILOT SYSTEM CREATES BENEFITS TO ITS 23 
CUSTOMERS , EMPLOYEES, AND SOCIETY AT LARGE , INCLUDING PUBLIC HEA LTH 24 
BENEFITS, QUALITY JOB RETENTIO N OR CREATION , RELIABILITY, AND INCREASED 25 
AFFORDABILITY OF REN EWABLE THERMAL ENERGY OPTIONS; 26 
 
 (V) HOW THE PILOT SYSTEM CONTRIBUTES TO AVOID ING COSTS 27 
TO ELECTRIC DISTRIBU TION AND TRANSMISSIO N SYSTEMS THAT WOULD 28 
OTHERWISE BE REQUIRE D FOR ELECTRIFICATIO N BY COMPARING THE P ROPOSED 29 
SYSTEM TO THE COST O F ELECTRIFICATION USING THE MOST WIDEL Y 30 
COMMERCIALLY AVAILAB LE AIR–SOURCE HEAT PUMPS ; 31 
 
 (VI) HOW THE PILOT SYSTEM CONTRIBUTES TO AVOID ING COSTS 32 
RELATED TO GAS PIPE REPLACEMENT ; 33 
  8 	SENATE BILL 570  
 
 
 (VII) THE EXTENT TO WHICH THE PROPOSAL GIVES P RIORITY TO 1 
UNDERSERVED OR OVERB URDENED COMMUN ITIES AS DEFINED IN § 1–701(A) OF 2 
THE ENVIRONMENT ARTICLE; 3 
 
 (VIII) THE PILOT SYSTEM ’S ABILITY TO BID DEM AND REDUCTION 4 
INTO THE PJM CAPACITY MARKET ; 5 
 
 (IX) NEIGHBORHOODS AT THE END POINT OF A GAS S YSTEM 6 
WHERE A FULL TRANSIT ION FROM GAS SYSTEMS TO ELECTRIFICATION COULD BE 7 
FACILITATED WITHIN T HE PILOT PERIOD OR W ITHIN 5 YEARS AFTER THE PILO T 8 
PERIOD CONCLUDES ; 9 
 
 (X) SAFETY; 10 
 
 (XI) RELIABILITY; 11 
 
 (XII) ENVIRONMENTAL ACCEPT ABILITY OF THE FLUID 12 
TECHNOLOGY EMPLOYED ; 13 
 
 (XIII) OPERATIONS; 14 
 
 (XIV) MAINTENANCE; 15 
 
 (XV) CUSTOMER COMPLAINT R ESOLUTION; 16 
 
 (XVI) EMERGENCY RESPONSE ; 17 
 
 (XVII) POINTS OF INTERCONNE CTION BETWEEN THE GA	S 18 
COMPANY AND HOMEOWNE R FOR ANY FLUID TRAN SFER; 19 
 
 (XVIII) TECHNOLOGY TO BE USE D TO SHUT OFF FLUID FLOW 20 
TO CUSTOMERS ; 21 
 
 (XIX) CUSTOMER SERVICE TER MINATION IN THE EVEN T OF BILL 22 
NONPAYMENT ; 23 
 
 (XX) LIFE EXPECTANCY OF T HE GEOTHERMAL SYSTEM ; AND  24 
 
 (XXI) THE EXTENT TO WHICH THE PROPOSAL IS COST –EFFECTIVE 25 
FOR RATEPAYERS ; AND  26 
 
 (XXI) (XXII) ANY OTHER REQUIREMEN TS AS DETERMINED BY THE 27 
COMMISSION. 28 
 
 (7) EACH PROPOSAL SHALL I NCLUDE: 29   	SENATE BILL 570 	9 
 
 
 
 (I) A PROPOSED RATE STRU CTURE FOR THE PILOT SYSTEM 1 
THAT ENSURES IS PROJECTED TO ENSU RE THAT ANY CUSTOMER PA RTICIPATING IN 2 
THE PILOT SYSTEM DOE S NOT PAY MORE FOR U TILITIES THAN IF THE CUSTOMER 3 
HAD NOT PARTICIPATED ; AND 4 
 
 (II) A PROPOSED SET OF ME ASUREMENTS OF ENERGY UNITS 5 
AND ACCOUNTING STAND ARDS. 6 
 
 (8) (I) A MUNICIPAL CORPORATIO N, COUNTY, OR COMMUNITY 7 
ORGANIZATION MAY SUB MIT NEIGHBORHOODS TO GAS COMPANIES FOR 8 
CONSIDERATION AS PAR T OF A PILOT SYSTEM. 9 
 
 (II) A MUNICIPAL CORPORATIO N, COUNTY, OR COMMUNITY 10 
ORGANIZATION THAT SU BMITS A NEIGHBORHOOD TO A GAS COMPANY FOR 11 
CONSIDERATION AS PAR T OF A PILOT SYSTEM UNDER SUBPARAGRAPH (I) OF THIS 12 
PARAGRAPH SHALL SUBM IT A COPY OF ITS PRO POSAL TO THE COMMISSION. 13 
 
 (C) (1) ON OR BEFORE DECEMBER 31, 2025, THE COMMISSION MAY 14 
APPROVE, APPROVE WITH MODIFIC ATIONS, OR REJECT A PROPOSAL . 15 
 
 (2) SUBJECT TO PARAGRAPH (3) OF THIS SUBSECTION , IF THE 16 
COMMISSION DETERMINES THAT A PROPOSAL IS I N THE PUBLIC INTERES T AND IS 17 
COST–EFFECTIVE, THE COMMISSION SHALL MAY APPROVE, APPROVE WITH 18 
MODIFICATIONS , OR REJECT THE PROPOSAL . 19 
 
 (3) (I) IN DETERMINING WHETHE R TO APPROVE , APPROVE WITH 20 
MODIFICATIONS , OR REJECT A PROPOSAL , THE COMMISSION SHALL : 21 
 
 (I) 1. CONSIDER THE PROJECTED COSTS AND BENEFITS OF 22 
THE PROJECTS PROPOSE D FOR INCLUSION IN T HE PILOT SYSTEM BY U SING A TEST 23 
THAT INCLUDES : 24 
 
 1. A. SOCIETAL COSTS AND B ENEFITS; AND 25 
 
 2. B. AVOIDED ENERGY AND I	NFRASTRUCTURE 26 
INVESTMENTS ; 27 
 
 (II) 2. DETERMINE WHETHER TH E PILOT SYSTEM IS IN TH E 28 
PUBLIC INTEREST AND IN THE INTEREST OF R ATEPAYERS; 29 
 
 (III) 3. DETERMINE HOW EACH P	ILOT SYSTEM ’S 30 
PERFORMANCE WILL BE EVALUATED DURING THE PILOT SYSTEM’S DURATION; AND 31 
  10 	SENATE BILL 570  
 
 
 (IV) 4. ENSURE THAT EACH PIL OT SYSTEM: 1 
 
 1. A. HAS A PROVISION FOR CUSTOM ERS WHO MAY WISH TO 2 
OPT OUT DURING THE C OURSE OF THE PILOT P ERIOD; AND 3 
 
 2. B. DETAILS RATEPAYER IM PACTS FOR PILOT SYST EM 4 
PARTICIPANTS AND ALL CUSTOMERS IN THE GAS COMPANY’S SERVICE TERRITORY ; 5 
AND  6 
 
 5. DETERMINE WHETHER TH	E PROPOSAL IS 7 
COST–EFFECTIVE IN ACCORDA NCE WITH SUBPARAGRAP H (II) OF THIS PARAGRAPH . 8 
 
 (II) A PROPOSAL UNDER THIS SECTION IS COST–EFFECTIVE IF 9 
THE COMMISSION DETERMINES THAT: 10 
 
 1. THE PROJECTED BENEFI TS ARE GREATER THAN THE 11 
PROJECTED COSTS FOR ALL RA TEPAYERS IN THE GAS COMPANY’S SERVICE 12 
TERRITORY; 13 
 
 2. THE GAS COMPANY HAS 	OBTAINED, OR IS 14 
REASONABLY CERTAIN T O OBTAIN, FEDERAL FUNDING UNDE R THE FINANCING 15 
PROGRAM OR THE GREENHOUSE GAS REDUCTION FUND TO SUPPORT THE C OSTS 16 
OF A PILOT SYSTEM; AND  17 
 
 3. THE FEDERAL FUNDING THAT THE GAS COMPANY HAS 18 
OBTAINED, OR IS REASONABLY CER TAIN TO OBTAIN, TO SUPPORT THE COSTS OF A 19 
PILOT SYSTEM WOULD N OT BE MORE COST –EFFECTIVE IN MEETING OTHER 20 
GREENHOUSE GAS REDUC TION OR ELECTRIFICAT ION MEASURES IN THE STATE. 21 
 
 (4) (I) EXCEPT AS PROVIDED IN SUBPARAGRAPH (II) OF THIS 22 
PARAGRAPH , EACH GAS COMPANY SHA LL COMPLETE CONSTRUC TION OF A PILOT 23 
SYSTEM WITHIN 1 YEAR AFTER THE COMMISSION APPROVES T HE SYSTEM. 24 
 
 (II) THE COMMISSION MAY EXTEND THE DEADLINE UNDER 25 
SUBPARAGRAPH (I) OF THIS PARAGRAPH FO R GOOD CAUSE SHOWN . 26 
 
 (5) IF THE COMMISSION APPROVES A PROPOSAL WITH 27 
MODIFICATIONS , THE COMMISSION SHALL GIVE THE GAS COMPANY A RE ASONABLE 28 
AMOUNT OF TIME TO MA KE THE NECESSARY MOD IFICATIONS. 29 
 
 (6) ON COMPLETION OF A PILOT SYSTEM, THE GAS COMPANY SHAL L 30 
FILE WITH THE COMMISSION FOR EVALUA TION ANY INFORMATION RELEVANT TO 31 
THE CRITERIA ESTABLI SHED UNDER PARAGRAPH (3) OF THIS SUBSECTION . 32 
   	SENATE BILL 570 	11 
 
 
 (D) (1) EACH PILOT SYSTEM SHA LL MEET THE REQUIREM ENTS FOR 1 
PILOT SYSTEMS UNDER THIS SUBTITLE FOR 2 YEARS AFTER THE PILO T SYSTEM IS 2 
INITIATED AND OPERATIONAL . 3 
 
 (2) (I) ONCE THE 2–YEAR PERIOD UNDER PA RAGRAPH (1) OF THIS 4 
SUBSECTION HAS PASSE D, THE COMMISSION, IN CONSULTATION WITH THE 5 
ADMINISTRATION , AND THE OFFICE OF PEOPLE’S COUNSEL, THE ELECTRIC, GAS, 6 
OR WATER COMPANY THA T OWNS AND MANAGES T HE PILOT SYSTEM , A CERTIFIED 7 
REPRESENTATIVE OF TH E EMPLOYEES OF THE E LECTRIC COMPANY , GAS COMPANY , 8 
OR WATER COMPANY THA T OWNS AND MANAGES T HE PILOT SYSTEM , AND 9 
PARTICIPATING CUSTOM ERS, SHALL DETERMINE WH ETHER TO MAKE THE PI LOT 10 
SYSTEM PERMANENT . 11 
 
 (II) A PILOT SYSTEM MADE PE	RMANENT UNDER 12 
SUBPARAGRAPH (I) OF THIS PARAGRAPH SH ALL CONTINUE TO MEET THE 13 
REQUIREMENTS PLACED ON PILOT SYSTEMS UND ER THIS SUBTITLE. 14 
 
 (III) IF A DETERMINATION IS MADE THAT A PILOT SYSTEM WILL 15 
NOT BE MADE PERMANEN T UNDER SUBPARAGRAPH (I) OF THIS PARAGRAPH , THE 16 
COMMISSION MAY APPROV E RECOVERY OF ALL PR UDENTLY INCURRED COS TS 17 
NECESSARY FOR A GAS COMPANY TO COMPLY WI TH THE DETERMINATION . 18 
 
 (3) THE COMMISSION SHALL ADOP T REGULATIONS ADDRESSING THE 19 
DECOMMISSIONING OR D ISCONTINUANCE OF A P ILOT SYSTEM , INCLUDING 20 
REGULATIONS ENSURING THAT THE CUSTOMERS W HO PARTICIPATED IN T HE PILOT 21 
SYSTEM DO NOT INCUR ADDITIONAL EXPENSES FOR THE DECOMMISSION ING OR 22 
INSTALLATION OF AN A PPLIANCE THAT IS USE D IN THE PILOT SYSTEM AND IS 23 
DECOMMISSIONED BEFOR E THE END OF ITS USE FUL LIFE.  24 
 
 (E) (1) EACH GAS COMPANY IMPL EMENTING A PILOT SYS TEM SHALL 25 
PARTICIPATE IN STAND ARDIZED DATA COLLECT ION COORDINATED BY T HE 26 
COMMISSION. 27 
 
 (2) ANY STANDARDIZED DATA COLLECTED UN DER PARAGRAPH (1) OF 28 
THIS SUBSECTION SHAL L: 29 
 
 (I) BE FILED WITH THE COMMISSION BY THE APP ROPRIATE 30 
GAS COMPANY ; AND 31 
 
 (II) INCLUDE DATA FROM TH E LEARNING FROM THE GROUND 32 
UP AND ANY OTHER NATI ONAL RESEARCH PROJEC T FOR THE DEVELOPMEN T OF 33 
THERMAL ENERGY NE TWORK SYSTEMS THAT T HE COMMISSION CONSIDERS 34 
APPROPRIATE . 35 
  12 	SENATE BILL 570  
 
 
 (F) (1) THE ADMINISTRATION SHALL PROVIDE FUNDING IN T HE FORM OF 1 
GRANTS TO COMMUNITY –BASED ORGANIZATIONS THAT PERFORM OUTREAC H IN 2 
NEIGHBORHOODS TO INC REASE PARTICIPATION IN A PILOT SYSTEM AN D 3 
COORDINATE THE IMPLE MENTATION OF AN APPR OVED PILOT SYSTEM . 4 
 
 (2) THE ADMINISTRATION MAY PR OVIDE UP TO $1,000,000 IN 5 
FUNDING TO A COMMUNI TY–BASED ORGANIZATION U NDER PARAGRAPH (1) OF THIS 6 
SUBSECTION. 7 
 
 (3) FUNDING UNDER THIS SU BSECTION MAY BE PROV IDED ONLY 8 
BEFORE OCTOBER 1, 2025. 9 
 
 (4) FUNDING UNDER THIS SU BSECTION MAY BE PROV IDED FROM THE 10 
STRATEGIC ENERGY INVESTMENT FUND ESTABLISHED UNDE R § 9–20B–05 OF THE 11 
STATE GOVERNMENT ARTICLE OR ANY OTHER SOURCE OF STATE OR FEDERAL 12 
FUNDING. 13 
 
 (G) (1) A GAS COMPANY MA Y REQUEST APPROVAL F ROM THE 14 
COMMISSION TO TRACK T HE COSTS OF DEVELOPI NG A PROPOSAL UNDER THIS 15 
SECTION. 16 
 
 (2) A REQUEST UNDER PARAGR APH (1) OF THIS SUBSECTION S HALL 17 
INCLUDE A PROPOSED D EVELOPMENT PLAN AND BUDGET. 18 
 
 (3) THE COMMISSION SHALL APPR OVE A REQUE ST UNDER 19 
PARAGRAPH (1) OF THIS SUBSECTION O N FINDING THAT THE P ROPOSED PLAN AND 20 
COSTS ARE NECESSARY TO MEET TH E REQUIREMENTS UNDER THIS SECTION, 21 
REASONABLE , AND IN THE PUBLIC INTEREST . 22 
 
 (4) AT A GAS COMPANY ’S NEXT RATE CASE PRO CEEDING FOLLOWING 23 
THE APPROVAL OF A RE QUEST UNDER THIS SUB SECTION, THE COMMISSION SHALL 24 
MAY AUTHORIZE RECOVERY O F PRUDENTLY INCURRED COSTS ASSOCIATED WIT H 25 
DEVELOPING THE PROPO SAL AND ANY CARRYING COSTS THAT THE COMMISSION 26 
DETERMINES ARE APPRO PRIATE. 27 
 
7–1003. 28 
 
 (A) (1) (I) THE ADMINISTRATION SHALL COORDINATE FUNDING 29 
SOURCES, INCLUDING ALL AVAILA BLE FEDERAL FUNDING , PHILANTHROPIC 30 
FUNDING, FUNDING AVAILABLE UN DER THE EMPOWER MARYLAND PROGRAM, 31 
AND STRATEGIC ENERGY INVESTMENT FUND FUNDING ALLOCATE D TO ENERGY 32 
EFFICIENCY, TO COVER ASSIST AN ELECTRIC C OMPANY, A GAS COMPANY , OR A 33 
WATER COMPANY IN COV ERING THE COSTS FOR ALL BE HIND–THE–METER 34 
PROJECTS, INCLUDING FULL ELECT RIFICATION AND WEATHERIZATION , 35   	SENATE BILL 570 	13 
 
 
ASSOCIATED WITH A TH ERMAL ENERG Y NETWORK SYSTEM SO THAT ANY AFFECTED 1 
RESIDENTIAL CUSTOMER S ARE NOT REQUIRED T O PAY FOR CONNECTION TO THE 2 
THERMAL ENERGY NETWO RK SYSTEM OR ANY APP LIANCE REPLACEMENTS 3 
REQUIRED FOR ELECTRI FICATION. 4 
 
 (II) FUNDS FROM THE FEDERA L INFLATION REDUCTION ACT 5 
MAY NOT EXCEED:  6 
 
 1. $14,000 PER RESIDENTIAL UNIT ; AND  7 
 
 2. $9,000,000 IN TOTAL.  8 
 
 (2) (I) UNLESS PRECLUDED BY F EDERAL LAW , REGULATION , OR 9 
PROGRAM REQUIREMENT GUIDELINES, THE ADMINISTRATION SHALL RESERVE 10 
$12,000,000 $9,000,000 OF FEDERAL FUNDING F ROM THE U.S. DEPARTMENT OF 11 
ENERGY TO ENSURE ADEQ UATE FUNDING FOR ANY APPLIANCES INSTALLED IN 12 
CONNECTION WITH A PI LOT SYSTEM. 13 
 
 (II) FUNDS RESERVED UNDER SUBPARAGRAPH (I) OF THIS 14 
PARAGRAPH SHALL BE A LLOCATED NOT LATER T HAN JUNE 30, 2028, AND SPENT 15 
NOT LATER THAN JUNE 30, 2030.  16 
 
 (3) THE ADMINISTRATION SHALL COORDINATE WITH THE 17 
DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT TO PROVID E 18 
SERVICES OR FUNDING FOR WEATHERIZATION F OR ALL LOW OR MODERA TE INCOME 19 
HOUSING WITHIN THE P ILOT SYSTEM’S AREA. 20 
 
 (4) IN PROVIDING FUNDING MADE A VAILABLE UNDER THE F EDERAL 21 
INFLATION REDUCTION ACT OF 2022 FOR BEHIND–THE–METER PROJECTS , THE 22 
ADMINISTRATION SHALL GIVE PRIORITY TO LOW AND MODERATE INCOME HOUSING. 23 
 
 (B) THE MARYLAND ENVIRONMENTAL SERVICE A GAS COMPANY 24 
IMPLEMENTING A PILOT SYSTEM SHALL : 25 
 
 (1) SHALL ISSUE PROCUREM	ENTS BE RESPONSIBLE FOR 26 
CONSTRUCTION , INCLUDING ANY NECESS	ARY RENOVATIONS , FOR  27 
BEHIND–THE–METER PROJECTS RELAT ING TO ANY APPLIANCE OR PANEL 28 
REPLACEMENTS OR UPGR ADES NECESSARY TO CO NNECT TO A THERMAL E NERGY 29 
NETWORK SYSTEM AND OPE RATE WITHOUT GAS; 30 
 
 (2) PURSUE ALL TAX CREDI TS AND FEDERAL FUNDI NG AVAILABLE 31 
FOR FRONT–OF–THE–METER AND BEHIND –THE–METER PROJECTS ; AND 32 
  14 	SENATE BILL 570  
 
 
 (3) COORDINATE WITH THE ADMINISTRATION TO ACC ESS FUNDS 1 
AVAILABLE UNDER THE FEDERAL INFLATION REDUCTION ACT, REBATES AND 2 
CREDITS AVAILABLE UN DER THE EMPOWER MARYLAND PROGRAM, AND ANY 3 
OTHER AVAILABLE FUND S. 4 
 
 (C) (1) AN ELECTRIC COMPANY , A GAS COMPANY , OR A WATER COMPANY 5 
THAT OWNS AND MANAGE S A PILOT SYSTEM SHA LL PAY FOR ANY COST NOT COVERED 6 
BY THE FUND S AND TAX CREDITS SP ECIFIED IN SUBSECTIO NS (A) AND (B) OF THIS 7 
SECTION. 8 
 
 (2) SUBJECT TO SUBSECTION (D) OF THIS SECTION , ANY COSTS 9 
INCURRED BY AN ELECT RIC COMPANY , A GAS COMPANY , OR A WATER COMPANY 10 
AFTER ALL FUNDS AND TAX CREDITS SPECIFIE D UNDER SUBSECTIO NS (A) AND (B) 11 
OF THIS SECTION HAVE BEEN APPLIED MAY BE RECOVERED WITHIN 1 YEAR OF 12 
INCURRING THE COSTS THROUGH RATE ADJUSTM ENTS OR ANOTHER MECH ANISM 13 
APPROVED BY THE COMMISSION. 14 
 
 (D) IF AN ELECTRIC COMPAN Y, A GAS COMPANY , OR A WATER COMPANY I S 15 
REQUIRED TO OWN BEHIND –THE–METER INFRASTRUCTURE FOR A SPECIFIED 16 
PERIOD OF TIME TO QU ALIFY FOR A FUNDING SOURCE SPECIFIED UND ER 17 
SUBSECTION (A)(1)(I) OF THIS SECTION: 18 
 
 (1) THE COST ASSOCIATED WITH THE BEHIND –THE–METER 19 
INFRASTRUCTURE SHALL BE RECOVERED WITHIN THE SPECIFIED OWNERSHIP 20 
PERIOD REQUIRED FOR THE FUNDING; 21 
 
 (2) THE ELECTRIC COMPANY , GAS COMPANY , OR WATER COMPANY 22 
SHALL MAINTAIN THE B EHIND–THE–METER INFRASTRUCTURE DURING THE 23 
SPECIFIED OWNERSHIP PERIOD REQUIRED FOR THE FUNDING; AND 24 
 
 (3) OWNERSHIP OF THE B EHIND–THE–METER INFRASTRUCTURE 25 
SHALL TRANSFER TO TH E ELECTRIC, GAS, OR WATER CUSTOMER WH O THE 26 
INFRASTRUCTURE WAS I NSTALLED TO BENEFIT WHEN THE SPECIFIED O WNERSHIP 27 
PERIOD REQUIRED FOR THE FUNDING LAPSES . 28 
 
 (E) NOTHING IN THIS SECTI ON MAY BE CONSTRUED TO AUTHORIZE OR 29 
PROHIBIT AN ELECTRIC COMPANY, A GAS COMPANY , OR A WATER COMPANY F ROM 30 
RECOVERING COSTS OF BEHIND–THE–METER INFRASTRUCTURE THAT DOES NOT 31 
MEET THE REQUIREMENT S OF THIS SUBTITLE.  32 
 
 (2) SHALL PROVIDE A PROC UREMENT SUBMISSION W INDOW OF NOT 33 
LESS THAN 90 DAYS; 34 
 
 (3) SHALL AWARD CONTRACT S IN A TIMELY MANNER ; AND 35   	SENATE BILL 570 	15 
 
 
 
 (4) MAY ENTER INTO A CON TRACT OR CONTRACTS F OR THE 1 
PROCUREMENT . 2 
 
 (C) THE ADMINISTRATION AND TH E MARYLAND ENVIRONMENTAL 3 
SERVICE SHALL COORDIN ATE WITH GAS COMPANI ES TO ENSURE THAT 4 
BEHIND–THE–METER PROJECTS CONNE CT TO THERMAL ENERGY NETWORK 5 
SYSTEMS THAT SERVE C USTOMERS. 6 
 
7–1004. 7 
 
 (A) FOR ANY FRONT –OF–METER OR BEHIND –THE–METER PROJECTS 8 
RELATED TO THE CONST RUCTION OF ANY THERM AL ENERGY NETWORK SY STEM 9 
UNDER THIS SUBTITLE , AN ELECTRIC COMPANY , A GAS COMPANY , OR A WATER 10 
COMPANY SHALL : 11 
 
 (1) WORK WITH EMPLOYEES ALREADY UNDER CONTRA CT WITH THE 12 
COMPANY; OR 13 
 
 (2) USE QUALIFIED CONTRA CTORS THAT ABIDE BY A COMMUNITY 14 
BENEFIT AGREEMENT . 15 
 
 (B) AN ELECTRIC COMPANY , A GAS COMPANY , OR A WATER COMPANY S HALL 16 
GIVE ITS EMPLOYEE BA RGAINING UNIT AN OPP ORTUNITY TO WORK ON ANY  17 
FRONT–OF–METER OR BEHIND –THE–METER PROJECTS RELATED TO THE 18 
CONSTRUCTION OF ANY THERMAL ENERGY NETWO RK SYSTEM. 19 
 
 (C) ANY RESIDENTIAL ELECT RIFICATION OR EFFICI ENCY CONTRACTS 20 
PROCURED BY THE MARYLAND ENVIRONMENTAL SERVICE SHALL BE SUBJ ECT TO A 21 
COMMUNITY BENEFIT AG REEMENT. 22 
 
 (D) (1) AN ELECTRIC COMPANY , A GAS COMPANY , OR A WATER COMPANY 23 
OPERATING A THERMAL ENERGY NETWORK SYSTE M SHALL PROVIDE ITS EMPLOYEE 24 
BARGAINING UNIT AN O PPORTUNITY TO PROVID E MAINTENANCE AND OPER ATIONS 25 
FOR ANY THERMAL ENER GY NETWORK SYSTEM . 26 
 
 (2) (I) SUBJECT TO SUBPARAGRA PH (II) OF THIS PARAGRAPH , AN 27 
ELECTRIC COMPANY , A GAS COMPANY , OR A WATER COMPANY M AY CONTRACT ANY 28 
WORK UNDER THIS SUBT ITLE NOT CONDUCTED B Y THE COMPANY ’S EMPLOYEE 29 
BARGAINING UNIT TO A QUALIFIED CONTRACTOR . 30 
 
 (II) AN ELECTRIC COMPANY , A GAS COMPANY , OR A WATER 31 
COMPANY SHALL REQUIR E A CONTRACTOR OR SU BCONTRACTOR ON A PRO JECT 32 
UNDER THIS SUBTITLE TO: 33  16 	SENATE BILL 570  
 
 
 
 1. PAY THE AREA PREVAIL ING WAGE RATE DETERMINED 1 
BY THE COMMISSIONER OF LABOR AND INDUSTRY, INCLUDING WAGES AND FRINGE 2 
BENEFITS; 3 
 
 2. OFFER HEALTH CARE AN D RETIREMENT BENEFIT S TO 4 
THE EMPLOYEES WORKIN G ON THE PROJECT ; 5 
 
 3. PARTICIPATE IN AN AP PRENTICESHIP PROGRAM 6 
REGISTERED WITH THE STATE OR THE U.S. DEPARTMENT OF LABOR; 7 
 
 4. ESTABLISH AND EXECUT E A PLAN FOR OUTREAC H, 8 
RECRUITMENT , AND RETENTION OF STATE RESIDENTS TO PE RFORM WORK ON THE 9 
PROJECT, WITH AN ASPIRATIONAL GOAL OF 25% OF TOTAL WORK HOURS 10 
PERFORMED BY MARYLAND RESIDENTS , INCLUDING RESIDENTS WHO ARE: 11 
 
 A. RETURNING CITIZENS ; 12 
 
 B. WOMEN; 13 
 
 C. MINORITY INDIVIDUALS ; OR 14 
 
 D. VETERANS; 15 
 
 5. HAVE BEEN IN COMPLIA NCE WITH FEDERAL , STATE, 16 
AND LOCAL WAGE AND H OUR LAWS FOR THE PRE VIOUS 3 YEARS; 17 
 
 6. BE SUBJECT TO ALL STATE REPORTING AND 18 
COMPLIANCE REQUIREMENTS ; AND 19 
 
 7. MAINTAIN ALL APPROPR IATE LICENSES IN GOO D 20 
STANDING; AND 21 
 
 8. ESTABLISH AND EXECUT E A PLAN TO MEET OR 22 
EXCEED THE MINORITY 	BUSINESS ENTERPRISE PARTICIPATION GOALS 23 
ESTABLISHED UNDER SU BSECTION (D)(3) OF THIS SECTION. 24 
 
 (E) (D) (1) THE FINDINGS AND EVID ENCE RELIED ON BY TH E GENERAL 25 
ASSEMBLY FOR THE CONT INUATION OF THE MINORITY BUSINESS ENTERPRISE 26 
PROGRAM UNDER TITLE 14, SUBTITLE 3 OF THE STATE FINANCE AND 27 
PROCUREMENT ARTICLE ARE INCORPORA TED IN THIS SUBSECTI ON. 28 
 
 (2) TO THE EXTENT PRACTICABLE A ND AUTHORIZED BY THE U. S. 29 
CONSTITUTION, AN APPROVED PILOT SY STEM APPLICANT AND T HE MARYLAND 30   	SENATE BILL 570 	17 
 
 
ENVIRONMENTAL SERVICE SHALL COMPLY WITH THE STATE’S MINORITY BUSINESS 1 
ENTERPRISE PROGRAM. 2 
 
 (3) (I) WITHIN 6 MONTHS AFTER THE APP ROVAL OF A PI LOT 3 
SYSTEM UNDER § 7–1002(C) OF THIS SUBTITLE , THE GOVERNOR’S OFFICE OF 4 
SMALL, MINORITY, AND WOMEN BUSINESS AFFAIRS, IN CONSULTATION WITH THE 5 
OFFICE OF THE ATTORNEY GENERAL AND THE GAS C OMPANY OPERATING THE 6 
APPROVED PILOT SYSTE M, SHALL ESTABLISH A CL EAR PLAN FOR SETTING 7 
REASONABLE AND APPRO PRIATE MINORITY BUSI NESS ENTERPRISE PART ICIPATION 8 
GOALS AND PROCEDURES FOR THE PILOT SYSTEM . 9 
 
 (II) TO THE EXTENT PRACTIC ABLE, THE GOALS AND 10 
PROCEDURES SPECIFIED IN SUBPARAGRAPH (I) OF THIS PARAGRAPH SH ALL BE 11 
BASED ON THE REQUIREMENTS OF TITLE 14, SUBTITLE 7 OF THE STATE FINANCE 12 
AND PROCUREMENT ARTICLE AND THE REGUL ATIONS IMPLEMENTING THAT 13 
SUBTITLE. 14 
 
 (4) (I) A GAS COMPANY OPERATIN G A PILOT SYSTEM AND THE 15 
MARYLAND ENVIRONMENTAL SERVICE SHALL SUBMIT AN ANNUAL REPORT ON 16 
MINORITY ENTERPRISE PARTICIPATION TO THE COMMISSION. 17 
 
 (II) THE COMMISSION SHALL PROV IDE ANY REPORTS 18 
RECEIVED UNDER SUBPA RAGRAPH (I) OF THIS PARAGRAPH TO THE GENERAL 19 
ASSEMBLY, IN ACCORDANCE WITH § 2–1257 OF THE STATE GOVERNMENT ARTICLE. 20 
 
7–1005. 21 
 
 (A) AN ELECTRIC COMPANY , A GAS COMPANY , OR A WATER COMPANY M AY 22 
OWN, MANAGE, AND RECOVER COSTS AS SOCIATED WITH A THER MAL ENERGY 23 
NETWORK SYSTEM SUBJE CT TO THE APPROVAL O F THE COMMISSION. 24 
 
 (B) AN ELECTRIC COMPANY , A GAS COMPANY , OR A WATER COMPANY M AY 25 
DRILL A GEOT HERMAL BOREHOLE IN A PUBLIC UTILITY RIGHT –OF–WAY WHERE 26 
FEASIBLE TO MEET THE REQUIREMENTS OF THIS SUBTITLE. 27 
 
7–1006. 28 
 
 THE COMMISSION MAY RETAIN INDEPENDENT CONSULTA NTS AND EXPERTS 29 
TO: 30 
 
 (1) ASSIST THE COMMISSION WITH ITS E VALUATION OF PILOT 31 
SYSTEM APPLICA TIONS UNDER § 7–1002(C) OF THIS SUBTITLE; AND 32 
  18 	SENATE BILL 570  
 
 
 (2) SUPPORT THE COMMISSION IN THE COM PLETION OF ANY 1 
REQUIREMENTS UNDER T HIS SUBTITLE. 2 
 
Article – Environment 3 
 
1–701. 4 
 
 (a) (1) In this section the following words have the meanings indicated. 5 
 
 (7) “Overburdened community” means any census tract for which three or 6 
more of the following environmental health indicators are above the 75th percentile 7 
statewide: 8 
 
 (i) Particulate matter (PM) 2.5; 9 
 
 (ii) Ozone; 10 
 
 (iii) National Air Toxics Assessment (NATA) diesel PM; 11 
 
 (iv) NATA cancer risk; 12 
 
 (v) NATA respiratory hazard index; 13 
 
 (vi) Traffic proximity; 14 
 
 (vii) Lead paint indicator; 15 
 
 (viii) National Priorities List Superfund site proximity; 16 
 
 (ix) Risk Management Plan facility proximity; 17 
 
 (x) Hazardous waste proximity; 18 
 
 (xi) Wastewater discharge indicator; 19 
 
 (xii) Proximity to a Concentrated Animal Feeding Operation (CAFO); 20 
 
 (xiii) Percent of the population lacking broadband coverage; 21 
 
 (xiv) Asthma emergency room discharges; 22 
 
 (xv) Myocardial infarction discharges; 23 
 
 (xvi) Low–birth–weight infants; 24 
 
 (xvii) Proximity to emitting power plants; 25 
   	SENATE BILL 570 	19 
 
 
 (xviii) Proximity to a Toxic Release Inventory (TRI) facility; 1 
 
 (xix) Proximity to a brownfields site; 2 
 
 (xx) Proximity to mining operations; and 3 
 
 (xxi) Proximity to a hazardous waste landfill. 4 
 
 (8) “Underserved community” means any census tract in which, according 5 
to the most recent U.S. Census Bureau Survey: 6 
 
 (i) At least 25% of the residents qualify as low–income; 7 
 
 (ii) At least 50% of the residents identify as nonwhite; or 8 
 
 (iii) At least 15% of the residents have limited English proficiency. 9 
 
Article – Housing and Community Development 10 
 
4–1801. 11 
 
 (a) In this subtitle the following words have the meanings indicated. 12 
 
 (c) “Area median income” means the median household income for the area 13 
adjusted for household size as published and annually updated by the United States 14 
Department of Housing and Urban Development. 15 
 
 SECTION 2. AND BE IT FURTHER ENACTED, Tha t this Act shall take effect July 16 
1, 2024.  17 
 
 
 
 
Approved: 
________________________________________________________________________________  
 Governor. 
________________________________________________________________________________  
         President of the Senate. 
________________________________________________________________________________  
  Speaker of the House of Delegates.