MD
Maryland Senate Bill SB570

Maryland 2024 Regular Session

Maryland Senate Bill SB570 Compare Versions

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1- WES MOORE, Governor Ch. 563
21
3-– 1 –
4-Chapter 563
5-(Senate Bill 570)
62
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+ *sb0570*
89
9-Public Utilities – Thermal Energy Network Systems – Authorization and
10-Establishment
11-(Working for Accessible Renewable Maryland Thermal Heat (WARMTH) Act)
10+SENATE BILL 570
11+M5, C5, P2 4lr0763
12+ CF HB 397
13+By: Senator Hester
14+Introduced and read first time: January 25, 2024
15+Assigned to: Education, Energy, and the Environment
16+Committee Report: Favorable with amendments
17+Senate action: Adopted
18+Read second time: March 15, 2024
1219
13-FOR the purpose of requiring each certain gas company companies and authorizing certain
14-gas companies to develop a plan for a pilot thermal energy network system or
15-systems on or before a certain date; requiring each certain gas company companies
16-to submit a certain proposal or proposals to the Public Service Commission for
17-approval on or before a certain date; authorizing a municipal corporation, county, or
18-community organization to submit neighborhoods to gas companies for consideration
19-as part of a pilot system; establishing requirements and authorizations for the
20-development and implementation of a proposal and thermal energy network system;
21-requiring authorizing the Commission to approve, approve with modifications, or
22-reject each proposal on or before a certain date; requiring the Commission, in
23-consultation with the Maryland Energy Administration and, the Office of People’s
24-Counsel, a certain company, a certain certified representative, and certain
25-customers, to make a determination on whether to make a pilot system permanent
26-after the completion of the pilot system’s pilot period; establishing funding
27-requirements for the Administration to cover assist certain companies in covering
28-certain costs; providing for the payment and recovery of certain costs; requiring the
29-Administration to coordinate with the Department of Housing and Community
30-Development to provide certain services or funding; requiring the Maryland
31-Environmental Service to issue certain procurements for certain projects a gas
32-company to be responsible for certain costs associated with certain
33-behind–the–meter projects; establishing certain employment and wage
34-requirements for certain projects; and generally relating to thermal energy network
35-systems.
20+CHAPTER ______
3621
37-BY repealing and reenacting, without amendments,
38- Article – Public Utilities
39-Section 7–703(f)(1)
40- Annotated Code of Maryland
41- (2020 Replacement Volume and 2023 Supplement)
22+AN ACT concerning 1
4223
43-BY adding to
44- Article – Public Utilities
45-Section 7–1001 through 7–1006 to be under the new subtitle “Subtitle 10. Thermal
46-Energy Network Systems”
47- Annotated Code of Maryland
48- (2020 Replacement Volume and 2023 Supplement)
49- Ch. 563 2024 LAWS OF MARYLAND
24+Public Utilities – Thermal Energy Network Systems – Authorization and 2
25+Establishment 3
26+(Working for Accessible Renewable Maryland Thermal Heat (WARMTH) Act) 4
5027
51-– 2 –
52-BY repealing and reenacting, without amendments,
53- Article – Environnent Environment
54-Section 1–701(a)(1), (7), and (8)
55- Annotated Code of Maryland
56- (2013 Replacement Volume and 2023 Supplement)
28+FOR the purpose of requiring each certain gas company companies and authorizing certain 5
29+gas companies to develop a plan for a pilot thermal energy network system or 6
30+systems on or before a certain date; requiring each certain gas company companies 7
31+to submit a certain proposal or proposals to the Public Service Commission for 8
32+approval on or before a certain date; authorizing a municipal corporation, county, or 9
33+community organization to submit neighborhoods to gas companies for consideration 10
34+as part of a pilot system; establishing requirements and authorizations for the 11
35+development and implementation of a proposal and thermal energy network system; 12
36+requiring authorizing the Commission to approve, approve with modifications, or 13
37+reject each proposal on or before a certain date; requiring the Commission, in 14
38+consultation with the Maryland Energy Administration and, the Office of People’s 15
39+Counsel, a certain company, a certain certified representative, and certain 16
40+customers, to make a determination on whether to make a pilot system permanent 17
41+after the completion of the pilot system’s pilot period; establishing funding 18
42+requirements for the Administration to cover assist certain companies in covering 19
43+certain costs; providing for the payment and recovery of certain costs; requiring the 20
44+Administration to coordinate with the Department of Housing and Community 21
45+Development to provide certain services or funding; requiring the Maryland 22
46+Environmental Service to issue certain procurements for certain projects a gas 23
47+company to be responsible for certain costs associated with certain 24
48+behind–the–meter projects; establishing certain employment and wage 25 2 SENATE BILL 570
5749
58-BY repealing and reenacting, without amendments,
59- Article – Housing and Community Development
60-Section 4–1801(a) and (c)
61- Annotated Code of Maryland
62- (2019 Replacement Volume and 2023 Supplement)
6350
64- SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND,
65-That the Laws of Maryland read as follows:
51+requirements for certain projects; and generally relating to thermal energy network 1
52+systems. 2
6653
67-Article – Public Utilities
54+BY repealing and reenacting, without amendments, 3
55+ Article – Public Utilities 4
56+Section 7–703(f)(1) 5
57+ Annotated Code of Maryland 6
58+ (2020 Replacement Volume and 2023 Supplement) 7
6859
69-7–703.
60+BY adding to 8
61+ Article – Public Utilities 9
62+Section 7–1001 through 7–1006 to be under the new subtitle “Subtitle 10. Thermal 10
63+Energy Network Systems” 11
64+ Annotated Code of Maryland 12
65+ (2020 Replacement Volume and 2023 Supplement) 13
7066
71- (f) (1) (i) In this subsection the following words have the meanings
72-indicated.
67+BY repealing and reenacting, without amendments, 14
68+ Article – Environnent Environment 15
69+Section 1–701(a)(1), (7), and (8) 16
70+ Annotated Code of Maryland 17
71+ (2013 Replacement Volume and 2023 Supplement) 18
7372
74- (ii) “Area median income” has the meaning stated in § 4–1801 of the
75-Housing and Community Development Article.
73+BY repealing and reenacting, without amendments, 19
74+ Article – Housing and Community Development 20
75+Section 4–1801(a) and (c) 21
76+ Annotated Code of Maryland 22
77+ (2019 Replacement Volume and 2023 Supplement) 23
7678
77- (iii) “Low or moderate income housing” means housing that is
78-affordable for a household with an aggregate annual income that is below 120% of the area
79-median income.
79+ SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 24
80+That the Laws of Maryland read as follows: 25
8081
81-SUBTITLE 10. THERMAL ENERGY NETWORK SYSTEMS.
82+Article – Public Utilities 26
8283
83-7–1001.
84+7–703. 27
8485
85- (A) IN THIS SUBTITLE THE FOLLOWING WORDS HAVE THE MEANINGS
86-INDICATED.
86+ (f) (1) (i) In this subsection the following words have the meanings 28
87+indicated. 29
8788
88- (B) “ADMINISTRATION ” MEANS THE MARYLAND ENERGY
89-ADMINISTRATION .
89+ (ii) “Area median income” has the meaning stated in § 4–1801 of the 30
90+Housing and Community Development Article. 31
9091
91- (C) “BEHIND–THE–METER PROJECT ” MEANS A PROJECT T HAT INVOLVES A
92-PHYSICAL, OPERATIONAL , OR BEHAVIORAL MODIFI CATION ON THE CUSTOM ER SIDE
93-OF A UTILITY METER , INCLUDING REPLACEMEN T OF APPLIANCES , RETROFITS, AND
94-PANEL UPGRADES .
95- WES MOORE, Governor Ch. 563
92+ (iii) “Low or moderate income housing” means housing that is 32
93+affordable for a household with an aggregate annual income that is below 120% of the area 33
94+median income. 34
9695
97-– 3 –
98- (D) “COMMUNITY BENEFIT AGR EEMENT” MEANS AN AGREEMENT
99-APPLICABLE TO THE CO NSTRUCTION OF ANY THERMAL E NERGY NETWORK SYSTEM
100-AND ANY ACCOMPANYING RESIDENTIAL ELECTRIF ICATION THAT:
96+SUBTITLE 10. THERMAL ENERGY NETWORK SYSTEMS. 35
97+ SENATE BILL 570 3
10198
102- (1) PROMOTES INCREASED O PPORTUNITIES FOR LOC AL BUSINESSES
103-AND SMALL, MINORITY, WOMEN–OWNED, AND VETERAN –OWNED BUSINESSES IN THE
104-CLEAN ENERGY INDUSTR Y;
10599
106- (2) ENSURES THE TIMELY , SAFE, AND EFFICIENT COMPLE TION OF
107-THE PROJECT BY :
100+7–1001. 1
108101
109- (I) FACILITATING A STEAD Y SUPPLY OF HIGHLY S KILLED
110-CRAFT WORKERS WHO SH ALL BE PAID NOT LESS THAN THE PREVAILING WAGE RATE
111-DETERMINED BY THE COMMISSIONER OF LABOR AND INDUSTRY UNDER TITLE 17,
112-SUBTITLE 2 OF THE STATE FINANCE AND PROCUREMENT ARTICLE; AND
102+ (A) IN THIS SUBTITLE THE FOLLOWING WORDS HAVE THE MEANINGS 2
103+INDICATED. 3
113104
114- (II) GUARANTEEING THAT TH E CONSTRUCTION WORK
115-PERFORMED IN CONNECT ION WITH THE PROJECT WILL BE SUBJECT TO A N
116-AGREEMENT THAT :
105+ (B) “ADMINISTRATION ” MEANS THE MARYLAND ENERGY 4
106+ADMINISTRATION . 5
117107
118- 1. ESTABLISHES THE TERM S AND CONDITIONS OF
119-EMPLOYMEN T AT THE CONSTRUCTIO N SITE OF THE PROJEC T OR A PORTION OF TH E
120-PROJECT;
108+ (C) “BEHIND–THE–METER PROJECT ” MEANS A PROJECT THAT INVOLVES A 6
109+PHYSICAL, OPERATIONAL , OR BEHAVIORAL MODIFI CATION ON THE CUSTOM ER SIDE 7
110+OF A UTILITY METER , INCLUDING REPLACEMEN T OF APPLIANCES , RETROFITS, AND 8
111+PANEL UPGRADES . 9
121112
122- 2. GUARANTEES AGAINST S TRIKES, LOCKOUTS, AND
123-SIMILAR DISRUPTIONS ;
113+ (D) “COMMUNITY BENEFIT AGR EEMENT” MEANS AN AGREEMENT 10
114+APPLICABLE TO THE CO NSTRUCTION OF ANY TH ERMAL ENERGY NETWORK S YSTEM 11
115+AND ANY ACCOMPANYING RESIDENTIAL ELECTRIF ICATION THAT: 12
124116
125- 3. ENSURES THAT ALL WOR K ON THE PROJECT FUL LY
126-CONFORMS TO ALL RELE VANT STATE AND FEDERAL LAW S, RULES, AND
127-REGULATIONS , INCLUDING ALL REQUIR ED TRAINING FOR EMPL OYEES;
117+ (1) PROMOTES INCREASED O PPORTUNITIES FOR LOC AL BUSINESSES 13
118+AND SMALL, MINORITY, WOMEN–OWNED, AND VETERAN –OWNED BUSINESSES IN THE 14
119+CLEAN ENERGY INDUSTR Y; 15
128120
129- 4. CREATES MUTUALLY BIN DING PROCEDURES FOR
130-RESOLVING LABOR DISP UTES ARISING DURING THE TERM OF THE PROJ ECT;
121+ (2) ENSURES THE TI MELY, SAFE, AND EFFICIENT COMPLE TION OF 16
122+THE PROJECT BY : 17
131123
132- 5. SETS FORTH OTHER MEC HANISMS FOR
133-LABOR–MANAGEMENT COOPERATI ON ON MATTERS OF MUTUAL INTEREST AND
134-CONCERN, INCLUDING PRODUCTIVI TY, QUALITY OF WORK , SAFETY, AND HEALTH ;
135-AND
124+ (I) FACILITATING A STEAD Y SUPPLY OF HIGHLY S KILLED 18
125+CRAFT WORKERS WHO SH ALL BE PAID NOT LESS THAN THE PREVAILING WAGE RATE 19
126+DETERMINED BY THE COMMISSIONER OF LABOR AND INDUSTRY UNDER TITLE 17, 20
127+SUBTITLE 2 OF THE STATE FINANCE AND PROCUREMENT ARTICLE; AND 21
136128
137- 6. BINDS ALL CONTRACTOR S AND SUBCONTRACTORS TO
138-THE TERMS OF THE AGR EEMENT THROUGH THE I NCLUSION OF APPROPRI ATE
139-PROVISIONS IN ALL RE LEVANT SOLICITATION AND CONTRACT DOCUMENTS ;
140- Ch. 563 2024 LAWS OF MARYLAND
129+ (II) GUARANTEEING THAT TH E CONSTRUCTION WORK 22
130+PERFORMED IN CONNECT ION WITH THE PROJECT WILL BE SUBJECT TO A N 23
131+AGREEMENT THAT : 24
141132
142-– 4 –
143- (3) PROMOTES SAFE COMPLE TION OF THE PROJECT BY ENSURING
144-THAT AT LEAST 80% OF THE CRAFT WORKERS ON THE PROJECT HAVE COMPLETED
145-AN OCCUPATIONAL SAFETY AND HEALTH ADMINISTRATION 10–HOUR COURSE ;
133+ 1. ESTABLISHES THE TERM S AND CONDITIONS OF 25
134+EMPLOYMENT AT THE CO NSTRUCTION SITE OF THE P ROJECT OR A PORTION OF THE 26
135+PROJECT; 27
146136
147- (4) PROMOTES CAREER TRAI NING OPPORTUNITIE S IN THE
148-MANUFACTURING , MAINTENANCE , AND CONSTRUCTION IND USTRIES FOR LOCAL
149-RESIDENTS, VETERANS, WOMEN, MINORITIES, AND FORMERLY INCARCE RATED
150-INDIVIDUALS;
137+ 2. GUARANTEES AGAINST S TRIKES, LOCKOUTS, AND 28
138+SIMILAR DISRUPTIONS ; 29
151139
152- (5) INCLUDES PROVISIONS FOR LOCAL HIRING AND THE HIRING OF
153-HISTORICALLY DISADVA NTAGED GROUPS ;
140+ 3. ENSURES THAT ALL WOR K ON THE PROJECT FUL LY 30
141+CONFORMS TO ALL RELE VANT STATE AND FEDERAL LAW S, RULES, AND 31
142+REGULATIONS , INCLUDING ALL REQUIR ED TRAINING FOR EMPL OYEES; 32
143+ 4 SENATE BILL 570
154144
155- (6) REFLECTS A 21ST–CENTURY LABOR –MANAGEMENT APPROACH BY
156-DEVELOPERS AND SUPPL IERS BASED ON COOPER ATION, HARMONY, AND
157-PARTNERSHIP THAT PRO ACTIVELY SEEKS TO EN SURE THAT WORKERS CA N FREELY
158-CHOOSE TO BOTH ORGAN IZE AND COLLECTIVELY BARGAIN;
159145
160- (7) USES LOCALLY , SUSTAINABLY, AND DOMESTICALLY
161-MANUFACTURED CONSTRU CTION MATERIALS AND COMPONENTS TO THE EX TENT
162-PRACTICABLE ;
146+ 4. CREATES MUTUALLY BIN DING PROCEDURES FOR 1
147+RESOLVING LABOR DISP UTES ARISING DURING THE TERM OF THE PROJ ECT; 2
163148
164- (8) (7) PROMOTES THE USE OF SKILLED LOCAL LABOR ,
165-PARTICULARLY WITH RE GARD TO THE CONSTRUC TION AND MANUFACTURI NG
166-COMPONENTS OF THE PR OJECT, USING METHODS INCLUDING OU TREACH, HIRING,
167-OR REFERRAL METHODS THAT ARE AFFILIATED WITH REGISTERED
168-APPRENTICESHIP PROGR AMS UNDER TITLE 11, SUBTITLE 4 OF THE LABOR AND
169-EMPLOYMENT ARTICLE; AND
149+ 5. SETS FORTH OTHER MEC HANISMS FOR 3
150+LABOR–MANAGEMENT COOPERATI ON ON MATTERS OF MUT UAL INTER EST AND 4
151+CONCERN, INCLUDING PRODUCTIVI TY, QUALITY OF WORK , SAFETY, AND HEALTH ; 5
152+AND 6
170153
171- (9) (8) AUTHORIZES THE MARYLAND DEPARTMENT OF LABOR AND
172-THE COMMISSION TO CONSIDE R, REVIEW, AND ENFORCE A PUBLIC SERVICE
173-COMPANY’S COMPLIANCE WITH AN Y COMMUNITY BENEFIT AGREEMENT .
154+ 6. BINDS ALL CONTRACTOR S AND SUBCONTRACTORS TO 7
155+THE TERMS OF THE AGR EEMENT THROUGH THE I NCLUSION OF APPROPRI ATE 8
156+PROVISIONS IN ALL RE LEVANT SOLICITATION AND CONTRACT DOCUM ENTS; 9
174157
175- (E) “FINANCING PROGRAM” MEANS THE ENERGY INFRASTRUCTURE
176-REINVESTMENT CATEGORY OF THE TITLE 17 CLEAN ENERGY FINANCING
177-PROGRAM.
158+ (3) PROMOTES SAFE COMPLE TION OF THE PROJECT BY ENSURING 10
159+THAT AT LEAST 80% OF THE CRAFT WORKERS ON THE PROJECT HAVE COMPLETED 11
160+AN OCCUPATIONAL SAFETY AND HEALTH ADMINISTRATION 10–HOUR COURSE ; 12
178161
179- (E) (F) “FRONT–OF–METER PROJECT ” MEANS A PROJECT THAT IMPACTS
180-THE UTILITY SIDE OF A METER.
162+ (4) PROMOTES CAREER TRAI NING OPPORTUNITIES I N THE 13
163+MANUFACTURING, MAINTENANCE , AND CONSTRUCTION IND USTRIES FOR LOCAL 14
164+RESIDENTS, VETERANS, WOMEN, MINORITIES, AND FORMERLY INCARCE RATED 15
165+INDIVIDUALS; 16
181166
182- (F) (G) “GEOTHERMAL BOREHOLE ” MEANS A GEOTHERMAL S HAFT
183-DRILLED INTO THE EAR TH FOR USE IN A SYST EM THAT USES THE THE RMAL
184-PROPERTIES OF THE EA RTH OR GROUNDWATER T O HEAT OR COOL BUILDINGS .
185- WES MOORE, Governor Ch. 563
167+ (5) INCLUDES PROVISIONS FOR LOCAL HIRING AND THE HIRING OF 17
168+HISTORICALLY DISADVA NTAGED GROUPS ; 18
186169
187-– 5 –
188- (H) “GREENHOUSE GAS REDUCTION FUND” MEANS THE GREENHOUSE GAS
189-REDUCTION FUND UNDER THE FEDERA L INFLATION REDUCTION ACT OF 2022.
170+ (6) REFLECTS A 21ST–CENTURY LABOR –MANAGEMENT APPROACH BY 19
171+DEVELOPERS AND SUPPL IERS BASED ON COOPER ATION, HARMONY, AND 20
172+PARTNERSHIP THAT PRO ACTIVELY SEEKS TO EN SURE THAT WORKERS CA N FREELY 21
173+CHOOSE TO BOTH ORGAN IZE AND COLLECTIVELY BARGAIN; 22
190174
191- (G) (I) “LEARNING FROM THE GROUND UP” MEANS THE LEARNING
192-FROM THE GROUND UP RESEARCH TEAM FORM ED BY THE HOME ENERGY
193-EFFICIENCY TEAM.
175+ (7) USES LOCALLY , SUSTAINABLY, AND DOMESTICALLY 23
176+MANUFACTURED CONSTRU CTION MATERIALS AND COMPONENTS TO THE EX TENT 24
177+PRACTICABLE ; 25
194178
195- (H) (J) “LOW OR MODERATE INCOM E HOUSING” HAS THE MEANING
196-STATED IN § 7–703(F)(1)(III) OF THIS TITLE.
179+ (8) (7) PROMOTES THE USE OF SKILLED LOCAL LABOR , 26
180+PARTICULARLY WITH RE GARD TO THE CONSTRUC TION AND MANUFACTURI NG 27
181+COMPONENTS OF THE PR OJECT, USING METHODS INCLU DING OUTREACH , HIRING, 28
182+OR REFERRAL METHODS THAT ARE AFFILIATED WITH REGISTERED 29
183+APPRENTICESHIP PROGR AMS UNDER TITLE 11, SUBTITLE 4 OF THE LABOR AND 30
184+EMPLOYMENT ARTICLE; AND 31
197185
198- (I) (K) “PILOT SYSTEM” MEANS A PILOT THERMA L ENERGY NETWORK
199-SYSTEM DEVELOPED BY A GAS COMPANY TO REP LACE GAS INFRASTRUCT URE WITH
200-A THERMAL ENERGY NET WORK SYSTEM .
186+ (9) (8) AUTHORIZES THE MARYLAND DEPARTMENT OF LABOR AND 32
187+THE COMMISSION TO CONSIDE R, REVIEW, AND ENFORCE A PUBLIC SERVICE 33
188+COMPANY’S COMPLIANCE WITH AN Y COMMUNITY BENEFIT AGREEMENT . 34
189+ SENATE BILL 570 5
201190
202- (J) (L) “PJM CAPACITY MARKET ” MEANS THE CAPACITY M ARKET OF
203-PJM INTERCONNECTION , LLC OR ANY SUCCESSOR ORG ANIZATION THAT SERVI CES
204-THE PJM REGION.
205191
206- (K) (M) “THERMAL ENERGY NETWOR K SYSTEM” MEANS A SYSTEM :
192+ (E) “FINANCING PROGRAM” MEANS THE ENERGY INFRASTRUCTURE 1
193+REINVESTMENT CATEGORY OF THE TITLE 17 CLEAN ENERGY FINANCING 2
194+PROGRAM. 3
207195
208- (1) OF CLOSED LOOP UNDERGRO UND PIPING INFRASTRU CTURE,
209-INCLUDING GEOTHERMAL BOREHOLES , LEADING UP TO A UTIL ITY METER FOR THE
210-CONVEYANCE OR STORAG E OF RENEWABLE , NONGREENHOUSE GAS –EMITTING
211-THERMAL ENERGY ; AND
196+ (E) (F) “FRONT–OF–METER PRO JECT” MEANS A PROJECT THAT IMPACTS 4
197+THE UTILITY SIDE OF A METER. 5
212198
213- (2) THAT CREATES A NETWO RK OF CUSTOMERS WITH THERMAL
214-ENERGY FOR HEATING A ND COOLING THROUGH N ONCOMBUSTING ELECTRI C HEAT
215-PUMPS.
199+ (F) (G) “GEOTHERMAL BOREHOLE ” MEANS A GEOTHERMAL S HAFT 6
200+DRILLED INTO THE EAR TH FOR USE IN A SYST EM THAT USES THE THE RMAL 7
201+PROPERTIES OF THE EA RTH OR GROUNDWATER T O HEAT OR COOL BUILD INGS. 8
216202
217-7–1002.
203+ (H) “GREENHOUSE GAS REDUCTION FUND” MEANS THE GREENHOUSE GAS 9
204+REDUCTION FUND UNDER THE FEDERA L INFLATION REDUCTION ACT OF 2022. 10
218205
219- (A) (1) (I) ON OR BEFORE OCTOBER 1, 2024, EACH GAS COMPANY
220-THAT SERVES AT LEAST 75,000 CUSTOMERS IN ITS DIS TRIBUTION TERRITORY
221-SHALL:
206+ (G) (I) “LEARNING FROM THE GROUND UP” MEANS THE LEARNING 11
207+FROM THE GROUND UP RESEARCH TEAM FORM ED BY THE HOME ENERGY 12
208+EFFICIENCY TEAM. 13
222209
223- (I) 1. BEGIN TO DEVELOP A P LAN FOR A PILOT SYSTEM O R
224-SYSTEMS; AND
210+ (H) (J) “LOW OR MODERATE INCOM E HOUSING” HAS THE MEANING 14
211+STATED IN § 7–703(F)(1)(III) OF THIS TITLE. 15
225212
226- (II) 2. FILE NOTICE WITH THE COMMISSION THAT THE
227-COMPANY HAS BEGUN PL AN DEVELOPMENT .
213+ (I) (K) “PILOT SYSTEM” MEANS A PILOT THERMA L ENERGY NETWORK 16
214+SYSTEM DEVELOPED BY A GAS COMPANY TO REP LACE GAS INFRASTRUCT URE WITH 17
215+A THERMAL ENERG Y NETWORK SYSTEM . 18
228216
229- (II) ON OR BEFORE OCTOBER 1, 2024, A GAS COMPANY THAT
230-SERVES FEWER THAN 75,000 CUSTOMERS IN ITS DIS TRIBUTION TERRITORY MAY Ch. 563 2024 LAWS OF MARYLAND
217+ (J) (L) “PJM CAPACITY MARKET ” MEANS THE CAPACITY M ARKET OF 19
218+PJM INTERCONNECTION , LLC OR ANY SUCCESSOR ORG ANIZATION THAT SERVI CES 20
219+THE PJM REGION. 21
231220
232-– 6 –
233-DEVELOP A PLAN FOR A PILO T SYSTEM OR SYSTEMS IN ACCORDANCE WITH T HE
234-REQUIREMENTS OF THIS SECTION.
221+ (K) (M) “THERMAL ENERGY NETWOR K SYSTEM” MEANS A SYSTEM : 22
235222
236- (2) IN DEVELOPING A PLAN FOR A PILOT SYSTEM , A GAS COMPANY
237-SHALL COORDINATE WIT H COMMUNITY GROUPS , LOCAL GOVERNMENTS , ANY
238-CERTIFIED REPRESENTA TIVES OF THE EMPL OYEES OF THE GAS COM PANY, THE
239-COMMISSION, THE ADMINISTRATION , AND ANY OTHER GROUPS THE GAS COMPANY
240-CONSIDERS NECESSARY TO ALLOW FOR DIVERSE DESIGN AMONG PILOT S YSTEMS.
223+ (1) OF CLOSED LOOP UNDER GROUND PIPING INFRASTRUCTUR E, 23
224+INCLUDING GEOTHERMAL BOREHOLES , LEADING UP TO A UTIL ITY METER FOR THE 24
225+CONVEYANCE OR STORAG E OF RENEWABLE , NONGREENHOUSE GAS –EMITTING 25
226+THERMAL ENERGY ; AND 26
241227
242- (3) EACH GAS COMPANY SHAL L INCLUDE IN THE NOT ICE FILED
243-UNDER PARAGRAPH (1) OF THIS SUBSECTION:
228+ (2) THAT CREATES A NETWO RK OF CUSTOMERS WITH THERMAL 27
229+ENERGY FOR HEATING A ND COOLING THROUGH NONC OMBUSTING ELECTRIC H EAT 28
230+PUMPS. 29
244231
245- (I) DETAILS OF ANY COORD INATION WITH COMMUNI TY
246-GROUPS, LOCAL GOVERNMENTS , CERTIFIED REPRESENTA TIVES OF THE
247-EMPLOYEES OF THE GAS COMPANY, THE COMMISSION, THE ADMINISTRATION , AND
248-ANY OTHER GROUPS THE GAS COMPANY CONSIDER S NECESSARY TO ALLOW FOR
249-DIVERSE DESIGN AMONG PILOT SYSTEMS; AND
232+7–1002. 30
250233
251- (II) ANY LETTERS OF SUPPO RT FROM INTERESTED G ROUPS.
234+ (A) (1) (I) ON OR BEFORE OCTOBER 1, 2024, EACH GAS COMPANY 31
235+THAT SERVES AT LEAST 75,000 CUSTOMERS IN ITS DIS TRIBUTION TERRITORY 32 6 SENATE BILL 570
252236
253- (B) (1) (I) ON OR BEFORE JULY 1, 2025, EACH GAS COMPANY THAT
254-SERVES AT LEAST 75,000 CUSTOMERS IN ITS DIS TRIBUTION TERRITORY SHALL
255-SUBMIT EITHER ONE OR TWO PROPOSALS FOR A PILO T SYSTEM TO THE COMMISSION
256-FOR APPROVAL .
257237
258- (II) A GAS COMPANY THAT SER VES FEWER THAN 75,000
259-CUSTOMERS IN ITS DIS TRIBUTION TERRITORY MAY SUBMIT A PROPOSA L FOR A
260-PILOT SYSTEM TO THE COMMISSION AFTER PROV IDING AT LEAST 60 DAYS’ NOTICE
261-TO THE COMMISSION OF THE COM PANY’S INTENT TO FILE A P ROPOSAL.
238+SHALL: 1
262239
263- (2) A PROPOSAL FOR A PILOT SYSTEM SHALL ENSURE THAT AT LEAST
264-80% OF ITS CUSTOMERS ARE FROM LOW OR MODERATE INCOME HOUSING .
240+ (I) 1. BEGIN TO DEVELOP A P LAN FOR A PILOT SYST EM OR 2
241+SYSTEMS; AND 3
265242
266- (3) A CUSTOMER MAY CHOOSE TO OPT OUT OF A PILO T SYSTEM
267-BEFORE THE PROPOSAL FOR THE PIL OT SYSTEM IS SUBMITT ED.
243+ (II) 2. FILE NOTICE WITH THE COMMISSION THAT THE 4
244+COMPANY HAS BEGUN PL AN DEVELOPMENT . 5
268245
269- (4) EACH PROPOSAL FOR A P ILOT SYSTEM SHALL DE MONSTRATE
270-THAT THE GAS COMPANY HAS SOUGHT ACCESS TO OBTAINED, OR IS REASONABLY
271-CERTAIN TO OBTAIN , ANY AVAILABLE FEDERA L FUNDING IN THE FOR M OF A MATCH,
272-GRANT, LOAN, OR TAX CREDIT , INCLUDING THOSE ESTA BLISHED UNDER THE
273-ENERGY INFRASTRUCTURE REINVESTMENT CATEGORY OF THE TITLE 17 CLEAN
274-ENERGY FINANCING PROGRAM AND THE GREENHOUSE GAS REDUCTION FUND
275-UNDER THE FEDERAL INFLATION REDUCTION ACT OF 2022. WES MOORE, Governor Ch. 563
246+ (II) ON OR BEFORE OCTOBER 1, 2024, A GAS COMPANY THAT 6
247+SERVES FEWER THAN 75,000 CUSTOMERS IN ITS DIS TRIBUTION TERRITORY MAY 7
248+DEVELOP A PLAN FOR A PILOT SYSTEM OR SYSTEMS IN ACCORDANCE WITH THE 8
249+REQUIREMENTS OF THIS SECTION. 9
276250
277-– 7 –
251+ (2) IN DEVELOPING A PLAN FOR A PILOT SYSTEM , A GAS COMPANY 10
252+SHALL COORDINATE WIT H COMMUNITY GROUPS , LOCAL GOVERNMENTS , ANY 11
253+CERTIFIED REPRESENTA TIVES OF THE EMPLOYE ES OF THE GAS COMPA NY, THE 12
254+COMMISSION, THE ADMINISTRATION , AND ANY OTHER GROUPS THE GAS COMPANY 13
255+CONSIDERS NECESSARY TO ALLOW FOR DIVERSE DESIGN AMONG PILOT S YSTEMS. 14
278256
279- (5) EACH GAS COMPANY IS R ESPONSIBLE FOR ENSUR ING THAT EACH
280-PROPOSAL SUBMITTED B Y THE GAS COMPANY CO MPLIES WITH ALL APPL ICABLE
281-FEDERAL STATUTES , REGULATIONS , AND GUIDANCE RELATIN G TO ANY FEDERAL
282-FUNDING.
257+ (3) EACH GAS COMPANY SHAL L INCLUDE IN THE NOT ICE FILED 15
258+UNDER PARAGRAPH (1) OF THIS SUBSECTION : 16
283259
284- (6) EACH PROPOSAL SHALL A DDRESS:
260+ (I) DETAILS OF ANY COORDINAT ION WITH COMMUNITY 17
261+GROUPS, LOCAL GOVERNMENTS , CERTIFIED REPRESENTA TIVES OF THE 18
262+EMPLOYEES OF THE GAS COMPANY, THE COMMISSION, THE ADMINISTRATION , AND 19
263+ANY OTHER GROUPS THE GAS COMPANY CONSIDER S NECESSARY TO ALLOW FOR 20
264+DIVERSE DESIGN AMONG PILOT SYSTEMS; AND 21
285265
286- (I) HOW THE PILOT SYSTEM WILL DEVELOP USEFUL
287-INFORMATION FOR THE ADOPTION OF REGULATI ONS GOVERNING THERMA L
288-ENERGY NETWORK SYSTE MS;
266+ (II) ANY LETTERS OF SUPPO RT FROM INTERESTED G ROUPS. 22
289267
290- (II) HOW THE PILOT SYSTEM FURTHERS GREENHOUSE GAS
291-EMISSIONS REDUCTION GOALS;
268+ (B) (1) (I) ON OR BEFORE JULY 1, 2025, EACH GAS COMPANY THAT 23
269+SERVES AT LEAST 75,000 CUSTOMERS IN ITS DIS TRIBUTION TERRITORY SHALL 24
270+SUBMIT EITHER ONE OR TWO PROPOSALS FOR A PILOT SYSTEM TO THE COMMISSION 25
271+FOR APPROVAL . 26
292272
293- (III) HOW THE PILOT SYSTEM ADVANCES FINANCIAL A ND
294-TECHNICAL APPROACHES TO EQUITABLE AND AFF ORDABLE BUILDING
295-ELECTRIFICATION ;
273+ (II) A GAS COMPANY THAT SER VES FEWER THAN 75,000 27
274+CUSTOMERS IN ITS DIS TRIBUTION TERRITORY MAY SUBMIT A PROPOSA L FOR A 28
275+PILOT SYSTEM TO THE COMMISSION AFTER PROV IDING AT LEAST 60 DAYS’ NOTICE 29
276+TO THE COMMISSION OF THE COMPANY’S INTENT TO FILE A P ROPOSAL. 30
296277
297- (IV) HOW THE PILOT SYSTEM CREATES BENEFITS TO ITS
298-CUSTOMERS , EMPLOYEES, AND SOCIETY AT LARGE , INCLUDING PUBLIC HEA LTH
299-BENEFITS, QUALITY JOB RETENTION OR CREATION, RELIABILITY, AND INCREASED
300-AFFORDABILITY OF REN EWABLE THERMAL ENERG Y OPTIONS;
278+ (2) A PROPOSAL FOR A PILOT SYSTEM SHALL ENSURE THAT AT LEAST 31
279+80% OF ITS CUSTOMERS ARE FROM LOW OR MODERATE INCOME HOUSING . 32
280+ SENATE BILL 570 7
301281
302- (V) HOW THE PILOT SYSTEM CONTRIBUTES TO AVOID ING COSTS
303-TO ELECTRIC DISTRIBU TION AND TRANSMISSIO N SYSTEMS THAT WOULD
304-OTHERWISE BE REQUIRE D FOR ELECTRIFICATION BY CO MPARING THE PROPOSED
305-SYSTEM TO THE COST O F ELECTRIFICATION US ING THE MOST WIDELY
306-COMMERCIALLY AVAILAB LE AIR–SOURCE HEAT PUMPS ;
307282
308- (VI) HOW THE PILOT SYSTEM CONTRIBUTES TO AVOID ING COSTS
309-RELATED TO GAS PIPE REPLACEMENT ;
283+ (3) A CUSTOMER MAY CHOOSE TO OPT OUT OF A PILO T SYSTEM 1
284+BEFORE THE PROPOSAL FOR THE PILOT SYSTEM IS SUBMITTED . 2
310285
311- (VII) THE EXTENT TO WHICH THE PR OPOSAL GIVES PRIORIT Y TO
312-UNDERSERVED OR OVERB URDENED COMMUNITIES AS DEFINED IN § 1–701(A) OF
313-THE ENVIRONMENT ARTICLE;
286+ (4) EACH PROPOSAL FOR A P ILOT SYSTEM SHALL DE MONSTRATE 3
287+THAT THE GAS COMPANY HAS SOUGHT ACCESS TO OBTAINED, OR IS REASONABLY 4
288+CERTAIN TO OBTAIN , ANY AVAILABLE FEDERA L FUNDING IN THE FOR M OF A MATCH, 5
289+GRANT, LOAN, OR TAX CREDIT , INCLUDING THOSE ESTABLISHE D UNDER THE 6
290+ENERGY INFRASTRUCTURE REINVESTMENT CATEGORY OF THE TITLE 17 CLEAN 7
291+ENERGY FINANCING PROGRAM AND THE GREENHOUSE GAS REDUCTION FUND 8
292+UNDER THE FEDERAL INFLATION REDUCTION ACT OF 2022. 9
314293
315- (VIII) THE PILOT SYSTEM ’S ABILITY TO BID DEM AND REDUCTION
316-INTO THE PJM CAPACITY MARKET ;
294+ (5) EACH GAS COMPANY IS R ESPONSIBLE FOR E NSURING THAT EACH 10
295+PROPOSAL SUBMITTED B Y THE GAS COMPANY CO MPLIES WITH ALL APPL ICABLE 11
296+FEDERAL STATUTES , REGULATIONS , AND GUIDANCE RELATIN G TO ANY FEDERAL 12
297+FUNDING. 13
317298
318- (IX) NEIGHBORHOODS AT THE END POINT OF A G AS SYSTEM
319-WHERE A FULL TRANSIT ION FROM GAS SYSTEMS TO ELECTRIFICATION C OULD BE
320-FACILITATED WITHIN T HE PILOT PERIOD OR W ITHIN 5 YEARS AFTER THE PILO T
321-PERIOD CONCLUDES ; Ch. 563 2024 LAWS OF MARYLAND
299+ (6) EACH PROPOSAL SHALL A DDRESS: 14
322300
323-– 8 –
301+ (I) HOW THE PILOT SYSTEM WILL DEVELOP USEFUL 15
302+INFORMATION FOR THE ADOPTION OF REGULATI ONS GOVERNING THERMA L 16
303+ENERGY NETWORK SYSTE MS; 17
324304
325- (X) SAFETY;
305+ (II) HOW THE PILOT SYSTEM FURTHERS GREENHOUSE GAS 18
306+EMISSIONS REDUCTION GOALS; 19
326307
327- (XI) RELIABILITY;
308+ (III) HOW THE PILOT SYSTEM ADVANCES FINANCIAL A ND 20
309+TECHNICAL APPROACHES TO EQUITABLE AND AFFORDABLE BUILD ING 21
310+ELECTRIFICATION ; 22
328311
329- (XII) ENVIRONMENTAL ACCEPTABILITY OF THE FLUID
330-TECHNOLOGY EMPLOYED ;
312+ (IV) HOW THE PILOT SYSTEM CREATES BENEFITS TO ITS 23
313+CUSTOMERS , EMPLOYEES, AND SOCIETY AT LARGE , INCLUDING PUBLIC HEA LTH 24
314+BENEFITS, QUALITY JOB RETENTIO N OR CREATION , RELIABILITY, AND INCREASED 25
315+AFFORDABILITY OF REN EWABLE THERMAL ENERGY OPTIONS; 26
331316
332- (XIII) OPERATIONS;
317+ (V) HOW THE PILOT SYSTEM CONTRIBUTES TO AVOID ING COSTS 27
318+TO ELECTRIC DISTRIBU TION AND TRANSMISSIO N SYSTEMS THAT WOULD 28
319+OTHERWISE BE REQUIRE D FOR ELECTRIFICATIO N BY COMPARING THE P ROPOSED 29
320+SYSTEM TO THE COST O F ELECTRIFICATION USING THE MOST WIDEL Y 30
321+COMMERCIALLY AVAILAB LE AIR–SOURCE HEAT PUMPS ; 31
333322
334- (XIV) MAINTENANCE ;
323+ (VI) HOW THE PILOT SYSTEM CONTRIBUTES TO AVOID ING COSTS 32
324+RELATED TO GAS PIPE REPLACEMENT ; 33
325+ 8 SENATE BILL 570
335326
336- (XV) CUSTOMER COMPLAINT R ESOLUTION;
337327
338- (XVI) EMERGENCY RESPONSE ;
328+ (VII) THE EXTENT TO WHICH THE PROPOSAL GIVES P RIORITY TO 1
329+UNDERSERVED OR OVERB URDENED COMMUN ITIES AS DEFINED IN § 1–701(A) OF 2
330+THE ENVIRONMENT ARTICLE; 3
339331
340- (XVII) POINTS OF INTERCONNE CTION BETWEEN THE GA S
341-COMPANY AND HOMEOWNE R FOR ANY FLUID TRA NSFER;
332+ (VIII) THE PILOT SYSTEM ’S ABILITY TO BID DEM AND REDUCTION 4
333+INTO THE PJM CAPACITY MARKET ; 5
342334
343- (XVIII) TECHNOLOGY TO BE USE D TO SHUT OFF FLUID FLOW
344-TO CUSTOMERS ;
335+ (IX) NEIGHBORHOODS AT THE END POINT OF A GAS S YSTEM 6
336+WHERE A FULL TRANSIT ION FROM GAS SYSTEMS TO ELECTRIFICATION COULD BE 7
337+FACILITATED WITHIN T HE PILOT PERIOD OR W ITHIN 5 YEARS AFTER THE PILO T 8
338+PERIOD CONCLUDES ; 9
345339
346- (XIX) CUSTOMER SERVICE TER MINATION IN THE EVEN T OF BILL
347-NONPAYMENT ;
340+ (X) SAFETY; 10
348341
349- (XX) LIFE EXPECTANCY OF T HE GEOTHERMAL SYSTEM ; AND
342+ (XI) RELIABILITY; 11
350343
351- (XXI) THE EXTENT TO WHICH THE PROPOSAL IS COST–EFFECTIVE
352-FOR RATEPAYERS ; AND
344+ (XII) ENVIRONMENTAL ACCEPT ABILITY OF THE FLUID 12
345+TECHNOLOGY EMPLOYED ; 13
353346
354- (XXI) (XXII) ANY OTHER REQUIREMEN TS AS DETERMINED BY THE
355-COMMISSION.
347+ (XIII) OPERATIONS; 14
356348
357- (7) EACH PROPOSAL SHALL I NCLUDE:
349+ (XIV) MAINTENANCE; 15
358350
359- (I) A PROPOSED RATE STRU CTURE FOR THE PILOT SYSTEM
360-THAT ENSURES IS PROJECTED TO ENSU RE THAT ANY CUSTOMER PA RTICIPATING IN
361-THE PILOT SYSTEM DOE S NOT PAY MORE FOR U TILITIES THAN IF THE CUSTOMER
362-HAD NOT PARTICIPATED ; AND
351+ (XV) CUSTOMER COMPLAINT R ESOLUTION; 16
363352
364- (II) A PROPOSED SET OF ME ASUREMENTS OF ENERGY UNITS
365-AND ACCOUNTING STAND ARDS.
366- WES MOORE, Governor Ch. 563
353+ (XVI) EMERGENCY RESPONSE ; 17
367354
368-– 9 –
369- (8) (I) A MUNICIPAL CORPORATIO N, COUNTY, OR COMMUNITY
370-ORGANIZATION MAY SUB MIT NEIGHBORHOODS TO GAS COMPANIES FOR
371-CONSIDERATION AS PAR T OF A PILOT SYSTEM .
355+ (XVII) POINTS OF INTERCONNE CTION BETWEEN THE GA S 18
356+COMPANY AND HOMEOWNE R FOR ANY FLUID TRAN SFER; 19
372357
373- (II) A MUNICIPAL CORPORATIO N, COUNTY, OR COMMUNITY
374-ORGANIZATION THAT SU BMITS A NEIGHBORHOOD TO A GAS COMPANY FOR
375-CONSIDERATION AS PAR T OF A PILOT SYSTEM UNDER SUBPARAGRAPH (I) OF THIS
376-PARAGRAPH SHALL SUBM IT A COPY OF ITS PRO POSAL TO THE COMMISSION.
358+ (XVIII) TECHNOLOGY TO BE USE D TO SHUT OFF FLUID FLOW 20
359+TO CUSTOMERS ; 21
377360
378- (C) (1) ON OR BEFORE DECEMBER 31, 2025, THE COMMISSION MAY
379-APPROVE, APPROVE WITH MODIFIC ATIONS, OR REJECT A PROPOSAL .
361+ (XIX) CUSTOMER SERVICE TER MINATION IN THE EVEN T OF BILL 22
362+NONPAYMENT ; 23
380363
381- (2) SUBJECT TO PARAGRAPH (3) OF THIS SUBSECTION, IF THE
382-COMMISSION DETERMINES THAT A PROPOSAL IS I N THE PUBLIC INTERES T AND IS
383-COST–EFFECTIVE, THE COMMISSION SHALL MAY APPROVE, APPROVE WITH
384-MODIFICATIONS , OR REJECT THE PROPOSAL .
364+ (XX) LIFE EXPECTANCY OF T HE GEOTHERMAL SYSTEM ; AND 24
385365
386- (3) (I) IN DETERMINING WHETHE R TO APPROVE , APPROVE WITH
387-MODIFICATIONS, OR REJECT A PROPOSAL , THE COMMISSION SHALL :
366+ (XXI) THE EXTENT TO WHICH THE PROPOSAL IS COST –EFFECTIVE 25
367+FOR RATEPAYERS ; AND 26
388368
389- (I) 1. CONSIDER THE PROJECT ED COSTS AND BENEFIT S OF
390-THE PROJECTS PROPOSE D FOR INCLUSION IN T HE PILOT SYSTEM BY U SING A TEST
391-THAT INCLUDES :
369+ (XXI) (XXII) ANY OTHER REQUIREMEN TS AS DETERMINED BY THE 27
370+COMMISSION. 28
392371
393- 1. A. SOCIETAL COSTS AND B ENEFITS; AND
372+ (7) EACH PROPOSAL SHALL I NCLUDE: 29 SENATE BILL 570 9
394373
395- 2. B. AVOIDED ENERGY AND I NFRASTRUCTURE
396-INVESTMENTS ;
397374
398- (II) 2. DETERMINE WHETHER TH E PILOT SYSTEM IS IN THE
399-PUBLIC INTEREST AND IN THE INTEREST OF R ATEPAYERS;
400375
401- (III) 3. DETERMINE HOW EACH P ILOT SYSTEM ’S
402-PERFORMANCE WILL BE EVALUATED DURING THE PILOT SYSTEM’S DURATION; AND
376+ (I) A PROPOSED RATE STRU CTURE FOR THE PILOT SYSTEM 1
377+THAT ENSURES IS PROJECTED TO ENSU RE THAT ANY CUSTOMER PA RTICIPATING IN 2
378+THE PILOT SYSTEM DOE S NOT PAY MORE FOR U TILITIES THAN IF THE CUSTOMER 3
379+HAD NOT PARTICIPATED ; AND 4
403380
404- (IV) 4. ENSURE THAT EACH PIL OT SYSTEM:
381+ (II) A PROPOSED SET OF ME ASUREMENTS OF ENERGY UNITS 5
382+AND ACCOUNTING STAND ARDS. 6
405383
406- 1. A. HAS A PROVISION FOR CUSTOMERS WHO MAY WI SH TO
407-OPT OUT DURING THE C OURSE OF THE PILOT P ERIOD; AND
384+ (8) (I) A MUNICIPAL CORPORATIO N, COUNTY, OR COMMUNITY 7
385+ORGANIZATION MAY SUB MIT NEIGHBORHOODS TO GAS COMPANIES FOR 8
386+CONSIDERATION AS PAR T OF A PILOT SYSTEM. 9
408387
409- 2. B. DETAILS RATEPAYER IM PACTS FOR PILOT SYST EM
410-PARTICIPANTS AND ALL CUSTOMERS IN THE GAS COMPANY ’S SERVICE TERRITORY ;
411-AND
412- Ch. 563 2024 LAWS OF MARYLAND
388+ (II) A MUNICIPAL CORPORATIO N, COUNTY, OR COMMUNITY 10
389+ORGANIZATION THAT SU BMITS A NEIGHBORHOOD TO A GAS COMPANY FOR 11
390+CONSIDERATION AS PAR T OF A PILOT SYSTEM UNDER SUBPARAGRAPH (I) OF THIS 12
391+PARAGRAPH SHALL SUBM IT A COPY OF ITS PRO POSAL TO THE COMMISSION. 13
413392
414-– 10 –
415- 5. DETERMINE WHETHER TH E PROPOSAL IS
416-COST–EFFECTIVE IN ACCORDA NCE WITH SUBPARAGRAP H (II) OF THIS PARAGRAPH .
393+ (C) (1) ON OR BEFORE DECEMBER 31, 2025, THE COMMISSION MAY 14
394+APPROVE, APPROVE WITH MODIFIC ATIONS, OR REJECT A PROPOSAL . 15
417395
418- (II) A PROPOSAL UNDER THIS SECTION IS COST–EFFECTIVE IF
419-THE COMMISSION DETERMINES THAT:
396+ (2) SUBJECT TO PARAGRAPH (3) OF THIS SUBSECTION , IF THE 16
397+COMMISSION DETERMINES THAT A PROPOSAL IS I N THE PUBLIC INTERES T AND IS 17
398+COST–EFFECTIVE, THE COMMISSION SHALL MAY APPROVE, APPROVE WITH 18
399+MODIFICATIONS , OR REJECT THE PROPOSAL . 19
420400
421- 1. THE PROJECTED BENEFI TS ARE GREATER THAN THE
422-PROJECTED COSTS FOR ALL RATEPAYERS IN TH E GAS COMPANY ’S SERVICE
423-TERRITORY;
401+ (3) (I) IN DETERMINING WHETHE R TO APPROVE , APPROVE WITH 20
402+MODIFICATIONS , OR REJECT A PROPOSAL , THE COMMISSION SHALL : 21
424403
425- 2. THE GAS COMPANY HAS OBTAINED, OR IS
426-REASONABLY CERTAIN T O OBTAIN, FEDERAL FUNDING UNDE R THE FINANCING
427-PROGRAM OR THE GREENHOUSE GAS REDUCTION FUND TO SUPPORT THE C OSTS
428-OF A PILOT SYSTEM ; AND
404+ (I) 1. CONSIDER THE PROJECTED COSTS AND BENEFITS OF 22
405+THE PROJECTS PROPOSE D FOR INCLUSION IN T HE PILOT SYSTEM BY U SING A TEST 23
406+THAT INCLUDES : 24
429407
430- 3. THE FEDERAL FUNDING THAT THE GAS COMPANY HAS
431-OBTAINED, OR IS REASONABLY CERT AIN TO OBTAIN, TO SUPPORT THE COSTS OF A
432-PILOT SYSTEM WOULD N OT BE MORE COST –EFFECTIVE IN MEETING OTHER
433-GREENHOUSE GAS REDUC TION OR ELECTRIFICAT ION MEASURES IN THE STATE.
408+ 1. A. SOCIETAL COSTS AND B ENEFITS; AND 25
434409
435- (4) (I) EXCEPT AS PROVIDED IN SUBPARAGRAPH (II) OF THIS
436-PARAGRAPH, EACH GAS COMPANY SHA LL COMPLETE CONSTRUC TION OF A PILOT
437-SYSTEM WITHIN 1 YEAR AFTER THE COMMISSION APPROVES T HE SYSTEM.
410+ 2. B. AVOIDED ENERGY AND I NFRASTRUCTURE 26
411+INVESTMENTS ; 27
438412
439- (II) THE COMMISSION MAY EXTEND THE DEADLINE UNDER
440-SUBPARAGRAPH (I) OF THIS PARAGRAPH FO R GOOD CAUSE SHOWN .
413+ (II) 2. DETERMINE WHETHER TH E PILOT SYSTEM IS IN TH E 28
414+PUBLIC INTEREST AND IN THE INTEREST OF R ATEPAYERS; 29
441415
442- (5) IF THE COMMISSION APPROVES A PROPO SAL WITH
443-MODIFICATIONS , THE COMMISSION SHALL GIVE THE GAS COMPANY A RE ASONABLE
444-AMOUNT OF TIME TO MA KE THE NECESSARY MOD IFICATIONS.
416+ (III) 3. DETERMINE HOW EACH P ILOT SYSTEM ’S 30
417+PERFORMANCE WILL BE EVALUATED DURING THE PILOT SYSTEM’S DURATION; AND 31
418+ 10 SENATE BILL 570
445419
446- (6) ON COMPLETION OF A PI LOT SYSTEM, THE GAS COMPANY SHAL L
447-FILE WITH THE COMMISSION FOR EVALUA TION ANY INFORMATION RELEVANT TO
448-THE CRITERIA ESTABLI SHED UNDER PARAGRAPH (3) OF THIS SUBSECTION .
449420
450- (D) (1) EACH PILOT SYSTEM SHA LL MEET THE REQUIREM ENTS FOR
451-PILOT SYSTEMS UNDER THIS SUBTITLE FOR 2 YEARS AFTER THE PILO T SYSTEM IS
452-INITIATED AND OPERATIONAL .
421+ (IV) 4. ENSURE THAT EACH PIL OT SYSTEM: 1
453422
454- (2) (I) ONCE THE 2–YEAR PERIOD UNDER PA RAGRAPH (1) OF THIS
455-SUBSECTION HAS PASSE D, THE COMMISSION, IN CONSULTATION WITH THE
456-ADMINISTRATION , AND THE OFFICE OF PEOPLE’S COUNSEL, THE ELECTRIC , GAS,
457-OR WATER COMPANY THA T OWNS AND MANAGES T HE PILOT SYSTEM , A CERTIFIED WES MOORE, Governor Ch. 563
423+ 1. A. HAS A PROVISION FOR CUSTOM ERS WHO MAY WISH TO 2
424+OPT OUT DURING THE C OURSE OF THE PILOT P ERIOD; AND 3
458425
459-– 11 –
460-REPRESENTATIVE OF TH E EMPLOYEES OF THE E LECTRIC COMPANY , GAS COMPANY ,
461-OR WATER COMPANY THA T OWNS AND MANAGES T HE PILOT SYSTEM , AND
462-PARTICIPATING CUSTOM ERS, SHALL DETERMINE WHET HER TO MAKE THE PILO T
463-SYSTEM PERMANENT .
426+ 2. B. DETAILS RATEPAYER IM PACTS FOR PILOT SYST EM 4
427+PARTICIPANTS AND ALL CUSTOMERS IN THE GAS COMPANY’S SERVICE TERRITORY ; 5
428+AND 6
464429
465- (II) A PILOT SYSTEM MADE PE RMANENT UNDER
466-SUBPARAGRAPH (I) OF THIS PARAGRAPH SH ALL CONTINUE TO MEET THE
467-REQUIREMENTS PLACED ON PILOT SYSTEMS UND ER THIS SUBTITLE.
430+ 5. DETERMINE WHETHER TH E PROPOSAL IS 7
431+COST–EFFECTIVE IN ACCORDA NCE WITH SUBPARAGRAP H (II) OF THIS PARAGRAPH . 8
468432
469- (III) IF A DETERMINATION IS MADE THAT A PILOT SY STEM WILL
470-NOT BE MADE PERMANEN T UNDER SUBPARAGRAPH (I) OF THIS PARAGRAPH , THE
471-COMMISSION MAY APPROV E RECOVERY OF ALL PR UDENTLY INCURRED COS TS
472-NECESSARY FOR A GAS COMPANY TO COMPLY WI TH THE DETERMINATION .
433+ (II) A PROPOSAL UNDER THIS SECTION IS COST–EFFECTIVE IF 9
434+THE COMMISSION DETERMINES THAT: 10
473435
474- (3) THE COMMISSION SHALL ADOP T REGULATIONS ADDRES SING THE
475-DECOMMISSIONING OR D ISCONTINUANCE OF A P ILOT SYSTEM , INCLUDING
476-REGULATIONS ENSURING THAT THE CUSTOMERS W HO PARTICIPATED IN T HE PILOT
477-SYSTEM DO NOT INCUR ADDITIONAL EXPENSES FOR THE DECOMMISSION ING OR
478-INSTALLATION OF AN A PPLIANCE THAT IS USE D IN THE PILOT SYSTE M AND IS
479-DECOMMISSIONED BEFOR E THE END OF ITS USE FUL LIFE.
436+ 1. THE PROJECTED BENEFI TS ARE GREATER THAN THE 11
437+PROJECTED COSTS FOR ALL RA TEPAYERS IN THE GAS COMPANY’S SERVICE 12
438+TERRITORY; 13
480439
481- (E) (1) EACH GAS COMPANY IMPL EMENTING A PILOT SYS TEM SHALL
482-PARTICIPATE IN STAND ARDIZED DATA COLLECT ION COORDINATED BY T HE
483-COMMISSION.
440+ 2. THE GAS COMPANY HAS OBTAINED, OR IS 14
441+REASONABLY CERTAIN T O OBTAIN, FEDERAL FUNDING UNDE R THE FINANCING 15
442+PROGRAM OR THE GREENHOUSE GAS REDUCTION FUND TO SUPPORT THE C OSTS 16
443+OF A PILOT SYSTEM; AND 17
484444
485- (2) ANY STANDARDIZED DATA COLLECTED UNDER PARA GRAPH (1) OF
486-THIS SUBSECTION SHAL L:
445+ 3. THE FEDERAL FUNDING THAT THE GAS COMPANY HAS 18
446+OBTAINED, OR IS REASONABLY CER TAIN TO OBTAIN, TO SUPPORT THE COSTS OF A 19
447+PILOT SYSTEM WOULD N OT BE MORE COST –EFFECTIVE IN MEETING OTHER 20
448+GREENHOUSE GAS REDUC TION OR ELECTRIFICAT ION MEASURES IN THE STATE. 21
487449
488- (I) BE FILED WITH THE COMMISSION BY THE APPROPRIAT E
489-GAS COMPANY ; AND
450+ (4) (I) EXCEPT AS PROVIDED IN SUBPARAGRAPH (II) OF THIS 22
451+PARAGRAPH , EACH GAS COMPANY SHA LL COMPLETE CONSTRUC TION OF A PILOT 23
452+SYSTEM WITHIN 1 YEAR AFTER THE COMMISSION APPROVES T HE SYSTEM. 24
490453
491- (II) INCLUDE DATA FROM TH E LEARNING FROM THE GROUND
492-UP AND ANY OTHER NATI ONAL RESEARCH PROJEC T FOR THE DEVELOPMEN T OF
493-THERMAL ENERGY NETWO RK SYSTEMS THAT THE COMMISSION CONSIDERS
494-APPROPRIATE .
454+ (II) THE COMMISSION MAY EXTEND THE DEADLINE UNDER 25
455+SUBPARAGRAPH (I) OF THIS PARAGRAPH FO R GOOD CAUSE SHOWN . 26
495456
496- (F) (1) THE ADMINISTRATION SHALL PROVID E FUNDING IN THE FOR M OF
497-GRANTS TO COMMUNITY –BASED ORGANIZATIONS THAT PERFORM OUTREAC H IN
498-NEIGHBORHOODS TO INC REASE PARTICIPATION IN A PILOT SYSTEM AN D
499-COORDINATE THE IMPLE MENTATION OF AN APPR OVED PILOT SYSTEM .
457+ (5) IF THE COMMISSION APPROVES A PROPOSAL WITH 27
458+MODIFICATIONS , THE COMMISSION SHALL GIVE THE GAS COMPANY A RE ASONABLE 28
459+AMOUNT OF TIME TO MA KE THE NECESSARY MOD IFICATIONS. 29
500460
501- (2) THE ADMINISTRATION MAY PROVIDE UP TO $1,000,000 IN
502-FUNDING TO A COMMUNI TY–BASED ORGANIZATION U NDER PARAGRAPH (1) OF THIS
503-SUBSECTION. Ch. 563 2024 LAWS OF MARYLAND
461+ (6) ON COMPLETION OF A PILOT SYSTEM, THE GAS COMPANY SHAL L 30
462+FILE WITH THE COMMISSION FOR EVALUA TION ANY INFORMATION RELEVANT TO 31
463+THE CRITERIA ESTABLI SHED UNDER PARAGRAPH (3) OF THIS SUBSECTION . 32
464+ SENATE BILL 570 11
504465
505-– 12 –
506466
507- (3) FUNDING UNDER THIS SU BSECTION MAY BE PROV IDED ONLY
508-BEFORE OCTOBER 1, 2025.
467+ (D) (1) EACH PILOT SYSTEM SHA LL MEET THE REQUIREM ENTS FOR 1
468+PILOT SYSTEMS UNDER THIS SUBTITLE FOR 2 YEARS AFTER THE PILO T SYSTEM IS 2
469+INITIATED AND OPERATIONAL . 3
509470
510- (4) FUNDING UNDER THIS SU BSECTION MAY BE PROV IDED FROM THE
511-STRATEGIC ENERGY INVESTMENT FUND ESTABLISHED UNDE R § 9–20B–05 OF THE
512-STATE GOVERNMENT ARTICLE OR ANY OTHER SOURCE OF STATE OR FEDERAL
513-FUNDING.
471+ (2) (I) ONCE THE 2–YEAR PERIOD UNDER PA RAGRAPH (1) OF THIS 4
472+SUBSECTION HAS PASSE D, THE COMMISSION, IN CONSULTATION WITH THE 5
473+ADMINISTRATION , AND THE OFFICE OF PEOPLE’S COUNSEL, THE ELECTRIC, GAS, 6
474+OR WATER COMPANY THA T OWNS AND MANAGES T HE PILOT SYSTEM , A CERTIFIED 7
475+REPRESENTATIVE OF TH E EMPLOYEES OF THE E LECTRIC COMPANY , GAS COMPANY , 8
476+OR WATER COMPANY THA T OWNS AND MANAGES T HE PILOT SYSTEM , AND 9
477+PARTICIPATING CUSTOM ERS, SHALL DETERMINE WH ETHER TO MAKE THE PI LOT 10
478+SYSTEM PERMANENT . 11
514479
515- (G) (1) A GAS COMPANY MAY REQU EST APPROVAL FROM TH E
516-COMMISSION TO TRACK T HE COSTS OF DEVELOPI NG A PROPOSAL U NDER THIS
517-SECTION.
480+ (II) A PILOT SYSTEM MADE PE RMANENT UNDER 12
481+SUBPARAGRAPH (I) OF THIS PARAGRAPH SH ALL CONTINUE TO MEET THE 13
482+REQUIREMENTS PLACED ON PILOT SYSTEMS UND ER THIS SUBTITLE. 14
518483
519- (2) A REQUEST UNDER PARAGR APH (1) OF THIS SUBSECTION S HALL
520-INCLUDE A PROPOSED D EVELOPMENT PLAN AND BUDGET.
484+ (III) IF A DETERMINATION IS MADE THAT A PILOT SYSTEM WILL 15
485+NOT BE MADE PERMANEN T UNDER SUBPARAGRAPH (I) OF THIS PARAGRAPH , THE 16
486+COMMISSION MAY APPROV E RECOVERY OF ALL PR UDENTLY INCURRED COS TS 17
487+NECESSARY FOR A GAS COMPANY TO COMPLY WI TH THE DETERMINATION . 18
521488
522- (3) THE COMMISSION SHALL APPR OVE A REQUEST UNDER
523-PARAGRAPH (1) OF THIS SUBSECTION O N FINDING THAT THE P ROPOSED PLAN AND
524-COSTS ARE NECESSARY TO MEET TH E REQUIREMENTS UNDER THIS SECTION,
525-REASONABLE , AND IN THE PUBLIC INTEREST .
489+ (3) THE COMMISSION SHALL ADOP T REGULATIONS ADDRESSING THE 19
490+DECOMMISSIONING OR D ISCONTINUANCE OF A P ILOT SYSTEM , INCLUDING 20
491+REGULATIONS ENSURING THAT THE CUSTOMERS W HO PARTICIPATED IN T HE PILOT 21
492+SYSTEM DO NOT INCUR ADDITIONAL EXPENSES FOR THE DECOMMISSION ING OR 22
493+INSTALLATION OF AN A PPLIANCE THAT IS USE D IN THE PILOT SYSTEM AND IS 23
494+DECOMMISSIONED BEFOR E THE END OF ITS USE FUL LIFE. 24
526495
527- (4) AT A GAS COMPANY ’S NEXT RATE CASE PROCEEDING FOLL OWING
528-THE APPROVAL OF A RE QUEST UNDER THIS SUB SECTION, THE COMMISSION SHALL
529-MAY AUTHORIZE RECOVERY O F PRUDENTLY INCURRED COSTS ASSOCIATED WIT H
530-DEVELOPING THE PROPO SAL AND ANY CARRYING COSTS THAT THE COMMISSION
531-DETERMINES ARE APPRO PRIATE.
496+ (E) (1) EACH GAS COMPANY IMPL EMENTING A PILOT SYS TEM SHALL 25
497+PARTICIPATE IN STAND ARDIZED DATA COLLECT ION COORDINATED BY T HE 26
498+COMMISSION. 27
532499
533-7–1003.
500+ (2) ANY STANDARDIZED DATA COLLECTED UN DER PARAGRAPH (1) OF 28
501+THIS SUBSECTION SHAL L: 29
534502
535- (A) (1) (I) THE ADMINISTRATION SHALL COORDINATE FUNDING
536-SOURCES, INCLUDING ALL AVAILA BLE FEDERAL FUNDING , PHILANTHROPIC
537-FUNDING, FUNDING AVAILABLE UN DER THE EMPOWER MARYLAND PROGRAM,
538-AND STRATEGIC ENERGY INVESTMENT FUND FUNDING ALLOCATE D TO ENERGY
539-EFFICIENCY, TO COVER ASSIST AN ELECTRIC C OMPANY, A GAS COMPANY , OR A
540-WATER COMPANY IN COV ERING THE COSTS FOR ALL BE HIND–THE–METER
541-PROJECTS, INCLUDING FULL ELECT RIFICATION AND WEATHERIZATION ,
542-ASSOCIATED WITH A TH ERMAL ENERGY NETWORK SYSTEM SO THAT ANY A FFECTED
543-RESIDENTIAL CUSTOMERS ARE NOT RE QUIRED TO PAY FOR CO NNECTION TO THE
544-THERMAL ENERGY NETWO RK SYSTEM OR ANY APP LIANCE REPLACEMENTS
545-REQUIRED FOR ELECTRI FICATION.
503+ (I) BE FILED WITH THE COMMISSION BY THE APP ROPRIATE 30
504+GAS COMPANY ; AND 31
546505
547- (II) FUNDS FROM THE FEDERA L INFLATION REDUCTION ACT
548-MAY NOT EXCEED : WES MOORE, Governor Ch. 563
506+ (II) INCLUDE DATA FROM TH E LEARNING FROM THE GROUND 32
507+UP AND ANY OTHER NATI ONAL RESEARCH PROJEC T FOR THE DEVELOPMEN T OF 33
508+THERMAL ENERGY NE TWORK SYSTEMS THAT T HE COMMISSION CONSIDERS 34
509+APPROPRIATE . 35
510+ 12 SENATE BILL 570
549511
550-– 13 –
551512
552- 1. $14,000 PER RESIDENTIAL UNIT ; AND
513+ (F) (1) THE ADMINISTRATION SHALL PROVIDE FUNDING IN T HE FORM OF 1
514+GRANTS TO COMMUNITY –BASED ORGANIZATIONS THAT PERFORM OUTREAC H IN 2
515+NEIGHBORHOODS TO INC REASE PARTICIPATION IN A PILOT SYSTEM AN D 3
516+COORDINATE THE IMPLE MENTATION OF AN APPR OVED PILOT SYSTEM . 4
553517
554- 2. $9,000,000 IN TOTAL.
518+ (2) THE ADMINISTRATION MAY PR OVIDE UP TO $1,000,000 IN 5
519+FUNDING TO A COMMUNI TY–BASED ORGANIZATION U NDER PARAGRAPH (1) OF THIS 6
520+SUBSECTION. 7
555521
556- (2) (I) UNLESS PRECLUDED BY F EDERAL LAW , REGULATION , OR
557-PROGRAM REQUIREMENT GUIDELINES, THE ADMINISTRATION SHALL RESERVE
558-$12,000,000 $9,000,000 OF FEDERAL FUNDING F ROM THE U.S. DEPARTMENT OF
559-ENERGY TO ENSURE ADEQ UATE FUNDING FOR ANY APPL IANCES INSTALLED IN
560-CONNECTION WITH A PI LOT SYSTEM.
522+ (3) FUNDING UNDER THIS SU BSECTION MAY BE PROV IDED ONLY 8
523+BEFORE OCTOBER 1, 2025. 9
561524
562- (II) FUNDS RESERVED UNDER SUBPARAGRAPH (I) OF THIS
563-PARAGRAPH SHALL BE A LLOCATED NOT LATER T HAN JUNE 30, 2028, AND SPENT
564-NOT LATER THAN JUNE 30, 2030.
525+ (4) FUNDING UNDER THIS SU BSECTION MAY BE PROV IDED FROM THE 10
526+STRATEGIC ENERGY INVESTMENT FUND ESTABLISHED UNDE R § 9–20B–05 OF THE 11
527+STATE GOVERNMENT ARTICLE OR ANY OTHER SOURCE OF STATE OR FEDERAL 12
528+FUNDING. 13
565529
566- (3) THE ADMINISTRATION SHA LL COORDINATE WITH T HE
567-DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT TO PROVID E
568-SERVICES OR FUNDING FOR WEATHERIZATION F OR ALL LOW OR MODERA TE INCOME
569-HOUSING WITHIN THE P ILOT SYSTEM’S AREA.
530+ (G) (1) A GAS COMPANY MA Y REQUEST APPROVAL F ROM THE 14
531+COMMISSION TO TRACK T HE COSTS OF DEVELOPI NG A PROPOSAL UNDER THIS 15
532+SECTION. 16
570533
571- (4) IN PROVIDING FUNDING MADE AVAILABLE UNDER THE FEDERAL
572-INFLATION REDUCTION ACT OF 2022 FOR BEHIND–THE–METER PROJECTS , THE
573-ADMINISTRATION SHALL GIVE PRIORITY TO LOW AND MODERATE INCOME HOUSING.
534+ (2) A REQUEST UNDER PARAGR APH (1) OF THIS SUBSECTION S HALL 17
535+INCLUDE A PROPOSED D EVELOPMENT PLAN AND BUDGET. 18
574536
575- (B) THE MARYLAND ENVIRONMENTAL SERVICE A GAS COMPANY
576-IMPLEMENTING A PILOT SYSTEM SHALL :
537+ (3) THE COMMISSION SHALL APPR OVE A REQUE ST UNDER 19
538+PARAGRAPH (1) OF THIS SUBSECTION O N FINDING THAT THE P ROPOSED PLAN AND 20
539+COSTS ARE NECESSARY TO MEET TH E REQUIREMENTS UNDER THIS SECTION, 21
540+REASONABLE , AND IN THE PUBLIC INTEREST . 22
577541
578- (1) SHALL ISSUE PROCUREM ENTS BE RESPONSIBLE FOR
579-CONSTRUCTION , INCLUDING ANY NECESS ARY RENOVATIONS , FOR
580-BEHIND–THE–METER PROJECTS RELAT ING TO ANY APPLIANCE OR PANEL
581-REPLACEMENTS OR UPGR ADES NECESSARY TO CO NNECT TO A THERMAL E NERGY
582-NETWORK SYSTEM AND O PERATE WITHOUT GAS;
542+ (4) AT A GAS COMPANY ’S NEXT RATE CASE PRO CEEDING FOLLOWING 23
543+THE APPROVAL OF A RE QUEST UNDER THIS SUB SECTION, THE COMMISSION SHALL 24
544+MAY AUTHORIZE RECOVERY O F PRUDENTLY INCURRED COSTS ASSOCIATED WIT H 25
545+DEVELOPING THE PROPO SAL AND ANY CARRYING COSTS THAT THE COMMISSION 26
546+DETERMINES ARE APPRO PRIATE. 27
583547
584- (2) PURSUE ALL TAX CREDITS AND FEDERAL FUNDING AVAILABLE
585-FOR FRONT–OF–THE–METER AND BEHIND –THE–METER PROJECTS ; AND
548+7–1003. 28
586549
587- (3) COORDINATE WITH THE ADMINISTRATION TO ACC ESS FUNDS
588-AVAILABLE UNDER THE FEDERAL INFLATION REDUCTION ACT, REBATES AND
589-CREDITS AVAILABLE UN DER THE EMPOWER MARYLAND PROGRAM, AND ANY
590-OTHER AVAILABLE FUND S.
550+ (A) (1) (I) THE ADMINISTRATION SHALL COORDINATE FUNDING 29
551+SOURCES, INCLUDING ALL AVAILA BLE FEDERAL FUNDING , PHILANTHROPIC 30
552+FUNDING, FUNDING AVAILABLE UN DER THE EMPOWER MARYLAND PROGRAM, 31
553+AND STRATEGIC ENERGY INVESTMENT FUND FUNDING ALLOCATE D TO ENERGY 32
554+EFFICIENCY, TO COVER ASSIST AN ELECTRIC C OMPANY, A GAS COMPANY , OR A 33
555+WATER COMPANY IN COV ERING THE COSTS FOR ALL BE HIND–THE–METER 34
556+PROJECTS, INCLUDING FULL ELECT RIFICATION AND WEATHERIZATION , 35 SENATE BILL 570 13
591557
592- (C) (1) AN ELECTRIC COMPANY , A GAS COMPANY , OR A WATER COMPANY
593-THAT OWNS AND MANAGE S A PILOT SYSTEM SHA LL PAY FOR ANY COST NOT COVERED Ch. 563 2024 LAWS OF MARYLAND
594558
595-– 14 –
596-BY THE FUNDS AND TAX CREDITS SPECIFIED IN SUBSECTIONS (A) AND (B) OF THIS
597-SECTION.
559+ASSOCIATED WITH A TH ERMAL ENERG Y NETWORK SYSTEM SO THAT ANY AFFECTED 1
560+RESIDENTIAL CUSTOMER S ARE NOT REQUIRED T O PAY FOR CONNECTION TO THE 2
561+THERMAL ENERGY NETWO RK SYSTEM OR ANY APP LIANCE REPLACEMENTS 3
562+REQUIRED FOR ELECTRI FICATION. 4
598563
599- (2) SUBJECT TO SUBSECTION (D) OF THIS SECTION , ANY COSTS
600-INCURRED BY AN ELECT RIC COMPANY , A GAS COMPANY , OR A WATER COMPANY
601-AFTER ALL FUNDS AND TAX CREDITS SPECIFIE D UNDER SUBSECTIONS (A) AND (B)
602-OF THIS SECTION HAVE BEEN APPLIED MAY BE RECOV ERED WITHIN 1 YEAR OF
603-INCURRING THE COSTS THROUGH RATE ADJUSTM ENTS OR ANOTHER MECH ANISM
604-APPROVED BY THE COMMISSION.
564+ (II) FUNDS FROM THE FEDERA L INFLATION REDUCTION ACT 5
565+MAY NOT EXCEED: 6
605566
606- (D) IF AN ELECTRIC COMPAN Y, A GAS COMPANY , OR A WATER COMPANY I S
607-REQUIRED TO OWN BEHI ND–THE–METER INFRASTRUCTURE FOR A SPECIFIED
608-PERIOD OF TIME TO QU ALIFY FOR A FUNDING SOURCE SPECIFIED UND ER
609-SUBSECTION (A)(1)(I) OF THIS SECTION:
567+ 1. $14,000 PER RESIDENTIAL UNIT ; AND 7
610568
611- (1) THE COST ASSOCIATED WITH THE BEHIND –THE–METER
612-INFRASTRUCTURE SHALL BE RECOVERED WITHIN THE SPECIFIED OWNERS HIP
613-PERIOD REQUIRED FOR THE FUNDING;
569+ 2. $9,000,000 IN TOTAL. 8
614570
615- (2) THE ELECTRIC COMPANY , GAS COMPANY , OR WATER COMPANY
616-SHALL MAINTAIN THE B EHIND–THE–METER INFRASTRUCTURE DURING THE
617-SPECIFIED OWNERSHIP PERIOD REQUIRED FOR THE FUNDING; AND
571+ (2) (I) UNLESS PRECLUDED BY F EDERAL LAW , REGULATION , OR 9
572+PROGRAM REQUIREMENT GUIDELINES, THE ADMINISTRATION SHALL RESERVE 10
573+$12,000,000 $9,000,000 OF FEDERAL FUNDING F ROM THE U.S. DEPARTMENT OF 11
574+ENERGY TO ENSURE ADEQ UATE FUNDING FOR ANY APPLIANCES INSTALLED IN 12
575+CONNECTION WITH A PI LOT SYSTEM. 13
618576
619- (3) OWNERSHIP OF THE BEH IND–THE–METER INFRASTRUCTURE
620-SHALL TRANSFER TO THE ELECTRIC , GAS, OR WATER CUSTOMER WH O THE
621-INFRASTRUCTURE WAS I NSTALLED TO BENEFIT WHEN THE SPECIFIED O WNERSHIP
622-PERIOD REQUIRED FOR THE FUNDING LAPSES .
577+ (II) FUNDS RESERVED UNDER SUBPARAGRAPH (I) OF THIS 14
578+PARAGRAPH SHALL BE A LLOCATED NOT LATER T HAN JUNE 30, 2028, AND SPENT 15
579+NOT LATER THAN JUNE 30, 2030. 16
623580
624- (E) NOTHING IN THIS SECTI ON MAY BE CONSTRUED TO AUTHORIZE OR
625-PROHIBIT AN ELECTRIC COMPANY, A GAS COMPANY, OR A WATER COMPANY F ROM
626-RECOVERING COSTS OF BEHIND–THE–METER INFRASTRUCTURE THAT DOES NOT
627-MEET THE REQUIREMENT S OF THIS SUBTITLE.
581+ (3) THE ADMINISTRATION SHALL COORDINATE WITH THE 17
582+DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT TO PROVID E 18
583+SERVICES OR FUNDING FOR WEATHERIZATION F OR ALL LOW OR MODERA TE INCOME 19
584+HOUSING WITHIN THE P ILOT SYSTEM’S AREA. 20
628585
629- (2) SHALL PROVIDE A PROC UREMENT SUBMISSION W INDOW OF NOT
630-LESS THAN 90 DAYS;
586+ (4) IN PROVIDING FUNDING MADE A VAILABLE UNDER THE F EDERAL 21
587+INFLATION REDUCTION ACT OF 2022 FOR BEHIND–THE–METER PROJECTS , THE 22
588+ADMINISTRATION SHALL GIVE PRIORITY TO LOW AND MODERATE INCOME HOUSING. 23
631589
632- (3) SHALL AWARD CONTRACT S IN A TIMELY MANNER; AND
590+ (B) THE MARYLAND ENVIRONMENTAL SERVICE A GAS COMPANY 24
591+IMPLEMENTING A PILOT SYSTEM SHALL : 25
633592
634- (4) MAY ENTER INTO A CON TRACT OR CONTRACTS F OR THE
635-PROCUREMENT .
593+ (1) SHALL ISSUE PROCUREM ENTS BE RESPONSIBLE FOR 26
594+CONSTRUCTION , INCLUDING ANY NECESS ARY RENOVATIONS , FOR 27
595+BEHIND–THE–METER PROJECTS RELAT ING TO ANY APPLIANCE OR PANEL 28
596+REPLACEMENTS OR UPGR ADES NECESSARY TO CO NNECT TO A THERMAL E NERGY 29
597+NETWORK SYSTEM AND OPE RATE WITHOUT GAS; 30
636598
637- (C) THE ADMINISTRATION AND TH E MARYLAND ENVIRONMENTAL
638-SERVICE SHALL COORDIN ATE WITH GAS COMPANI ES TO ENSURE THAT WES MOORE, Governor Ch. 563
599+ (2) PURSUE ALL TAX CREDI TS AND FEDERAL FUNDI NG AVAILABLE 31
600+FOR FRONT–OF–THE–METER AND BEHIND –THE–METER PROJECTS ; AND 32
601+ 14 SENATE BILL 570
639602
640-– 15 –
641-BEHIND–THE–METER PROJECTS CONNE CT TO THERMAL ENERGY NETWORK
642-SYSTEMS THAT SERVE C USTOMERS.
643603
644-7–1004.
604+ (3) COORDINATE WITH THE ADMINISTRATION TO ACC ESS FUNDS 1
605+AVAILABLE UNDER THE FEDERAL INFLATION REDUCTION ACT, REBATES AND 2
606+CREDITS AVAILABLE UN DER THE EMPOWER MARYLAND PROGRAM, AND ANY 3
607+OTHER AVAILABLE FUND S. 4
645608
646- (A) FOR ANY FRONT –OF–METER OR BEHIND –THE–METER PROJECTS
647-RELATED TO THE CONST RUCTION OF ANY THERM AL ENERGY NETWORK SY STEM
648-UNDER THIS SUBTITLE , AN ELECTRIC COMPANY , A GAS COMPANY , OR A WATER
649-COMPANY SHALL :
609+ (C) (1) AN ELECTRIC COMPANY , A GAS COMPANY , OR A WATER COMPANY 5
610+THAT OWNS AND MANAGE S A PILOT SYSTEM SHA LL PAY FOR ANY COST NOT COVERED 6
611+BY THE FUND S AND TAX CREDITS SP ECIFIED IN SUBSECTIO NS (A) AND (B) OF THIS 7
612+SECTION. 8
650613
651- (1) WORK WITH EMPLOYEES ALREADY UNDER CONTRA CT WITH THE
652-COMPANY; OR
614+ (2) SUBJECT TO SUBSECTION (D) OF THIS SECTION , ANY COSTS 9
615+INCURRED BY AN ELECT RIC COMPANY , A GAS COMPANY , OR A WATER COMPANY 10
616+AFTER ALL FUNDS AND TAX CREDITS SPECIFIE D UNDER SUBSECTIO NS (A) AND (B) 11
617+OF THIS SECTION HAVE BEEN APPLIED MAY BE RECOVERED WITHIN 1 YEAR OF 12
618+INCURRING THE COSTS THROUGH RATE ADJUSTM ENTS OR ANOTHER MECH ANISM 13
619+APPROVED BY THE COMMISSION. 14
653620
654- (2) USE QUALIFIED CONTRA CTORS THAT ABIDE BY A COMMUNITY
655-BENEFIT AGREEMENT .
621+ (D) IF AN ELECTRIC COMPAN Y, A GAS COMPANY , OR A WATER COMPANY I S 15
622+REQUIRED TO OWN BEHIND –THE–METER INFRASTRUCTURE FOR A SPECIFIED 16
623+PERIOD OF TIME TO QU ALIFY FOR A FUNDING SOURCE SPECIFIED UND ER 17
624+SUBSECTION (A)(1)(I) OF THIS SECTION: 18
656625
657- (B) AN ELECTRIC COMPANY , A GAS COMPANY , OR A WATER COMPANY S HALL
658-GIVE ITS EMPLOYEE BA RGAINING UNIT AN OPP ORTUNITY TO WORK ON ANY
659-FRONT–OF–METER OR BEHIND –THE–METER PROJECTS RELATED TO THE
660-CONSTRUCTION OF ANY THERMAL ENERGY NETWO RK SYSTEM.
626+ (1) THE COST ASSOCIATED WITH THE BEHIND –THE–METER 19
627+INFRASTRUCTURE SHALL BE RECOVERED WITHIN THE SPECIFIED OWNERSHIP 20
628+PERIOD REQUIRED FOR THE FUNDING; 21
661629
662- (C) ANY RESIDENTIA L ELECTRIFICATION OR EFFICIENCY CONTRACTS
663-PROCURED BY THE MARYLAND ENVIRONMENTAL SERVICE SHALL BE SUBJ ECT TO A
664-COMMUNITY BENEFIT AG REEMENT.
630+ (2) THE ELECTRIC COMPANY , GAS COMPANY , OR WATER COMPANY 22
631+SHALL MAINTAIN THE B EHIND–THE–METER INFRASTRUCTURE DURING THE 23
632+SPECIFIED OWNERSHIP PERIOD REQUIRED FOR THE FUNDING; AND 24
665633
666- (D) (1) AN ELECTRIC COMPANY , A GAS COMPANY , OR A WATER COMPANY
667-OPERATING A THERMAL ENERGY NETWORK SYSTE M SHALL PROVIDE ITS EMPLOYEE
668-BARGAINING UNIT AN O PPORTUNITY TO PROVID E MAINTENANCE AND OP ERATIONS
669-FOR ANY THERMAL ENER GY NETWORK SYSTEM .
634+ (3) OWNERSHIP OF THE B EHIND–THE–METER INFRASTRUCTURE 25
635+SHALL TRANSFER TO TH E ELECTRIC, GAS, OR WATER CUSTOMER WH O THE 26
636+INFRASTRUCTURE WAS I NSTALLED TO BENEFIT WHEN THE SPECIFIED O WNERSHIP 27
637+PERIOD REQUIRED FOR THE FUNDING LAPSES . 28
670638
671- (2) (I) SUBJECT TO SUBPARAGRA PH (II) OF THIS PARAGRAPH , AN
672-ELECTRIC COMPANY , A GAS COMPANY , OR A WATER COMPANY M AY CONTRACT ANY
673-WORK UNDER THIS SUBT ITLE NOT CONDUCTED B Y THE COMPANY ’S EMPLOYEE
674-BARGAINING UNIT TO A QUALIFIED CONTRACTOR .
639+ (E) NOTHING IN THIS SECTI ON MAY BE CONSTRUED TO AUTHORIZE OR 29
640+PROHIBIT AN ELECTRIC COMPANY, A GAS COMPANY , OR A WATER COMPANY F ROM 30
641+RECOVERING COSTS OF BEHIND–THE–METER INFRASTRUCTURE THAT DOES NOT 31
642+MEET THE REQUIREMENT S OF THIS SUBTITLE. 32
675643
676- (II) AN ELECTRIC COMPANY , A GAS COMPANY , OR A WATER
677-COMPANY SHALL REQUIR E A CONTRACTOR OR SU BCONTRACTOR ON A PRO JECT
678-UNDER THIS SUBTITLE TO:
644+ (2) SHALL PROVIDE A PROC UREMENT SUBMISSION W INDOW OF NOT 33
645+LESS THAN 90 DAYS; 34
679646
680- 1. PAY THE AREA PREVAIL ING WAGE RATE DETERMINED
681-BY THE COMMISSIONER OF LABOR AND INDUSTRY, INCLUDING WAGES AND FRINGE
682-BENEFITS;
683- Ch. 563 2024 LAWS OF MARYLAND
647+ (3) SHALL AWARD CONTRACT S IN A TIMELY MANNER ; AND 35 SENATE BILL 570 15
684648
685-– 16 –
686- 2. OFFER HEALTH CARE AN D RETIREMENT BENEFIT S TO
687-THE EMPLOYEES WORKIN G ON THE PROJECT ;
688649
689- 3. PARTICIPATE IN AN AP PRENTICESHIP PROGRAM
690-REGISTERED WITH THE STATE OR THE U.S. DEPARTMENT OF LABOR;
691650
692- 4. ESTABLISH AND EXECUT E A PLAN FOR OUTREAC H,
693-RECRUITMENT , AND RETENTION OF STATE RESIDENTS TO PE RFORM WORK ON THE
694-PROJECT, WITH AN ASPIRATIONAL GOAL OF 25% OF TOTAL WORK HOU RS
695-PERFORMED BY MARYLAND RESIDENTS , INCLUDING RESIDENTS WHO ARE:
651+ (4) MAY ENTER INTO A CON TRACT OR CONTRACTS F OR THE 1
652+PROCUREMENT . 2
696653
697- A. RETURNING CITIZENS ;
654+ (C) THE ADMINISTRATION AND TH E MARYLAND ENVIRONMENTAL 3
655+SERVICE SHALL COORDIN ATE WITH GAS COMPANI ES TO ENSURE THAT 4
656+BEHIND–THE–METER PROJECTS CONNE CT TO THERMAL ENERGY NETWORK 5
657+SYSTEMS THAT SERVE C USTOMERS. 6
698658
699- B. WOMEN;
659+7–1004. 7
700660
701- C. MINORITY INDIVIDUALS ; OR
661+ (A) FOR ANY FRONT –OF–METER OR BEHIND –THE–METER PROJECTS 8
662+RELATED TO THE CONST RUCTION OF ANY THERM AL ENERGY NETWORK SY STEM 9
663+UNDER THIS SUBTITLE , AN ELECTRIC COMPANY , A GAS COMPANY , OR A WATER 10
664+COMPANY SHALL : 11
702665
703- D. VETERANS;
666+ (1) WORK WITH EMPLOYEES ALREADY UNDER CONTRA CT WITH THE 12
667+COMPANY; OR 13
704668
705- 5. HAVE BEEN IN COMPLIA NCE WITH FEDERAL , STATE,
706-AND LOCAL WAGE AND H OUR LAWS FOR THE PREVIOUS 3 YEARS;
669+ (2) USE QUALIFIED CONTRA CTORS THAT ABIDE BY A COMMUNITY 14
670+BENEFIT AGREEMENT . 15
707671
708- 6. BE SUBJECT TO ALL STATE REPORTING AND
709-COMPLIANCE REQUIREME NTS; AND
672+ (B) AN ELECTRIC COMPANY , A GAS COMPANY , OR A WATER COMPANY S HALL 16
673+GIVE ITS EMPLOYEE BA RGAINING UNIT AN OPP ORTUNITY TO WORK ON ANY 17
674+FRONT–OF–METER OR BEHIND –THE–METER PROJECTS RELATED TO THE 18
675+CONSTRUCTION OF ANY THERMAL ENERGY NETWO RK SYSTEM. 19
710676
711- 7. MAINTAIN ALL APPROPR IATE LICENSES IN GOO D
712-STANDING; AND
677+ (C) ANY RESIDENTIAL ELECT RIFICATION OR EFFICI ENCY CONTRACTS 20
678+PROCURED BY THE MARYLAND ENVIRONMENTAL SERVICE SHALL BE SUBJ ECT TO A 21
679+COMMUNITY BENEFIT AG REEMENT. 22
713680
714- 8. ESTABLISH AND EXECUT E A PLAN TO MEET OR
715-EXCEED THE MINORITY BUSINESS ENTERPRISE PARTICIPATION GOALS
716-ESTABLISHED UNDER SU BSECTION (D)(3) OF THIS SECTION.
681+ (D) (1) AN ELECTRIC COMPANY , A GAS COMPANY , OR A WATER COMPANY 23
682+OPERATING A THERMAL ENERGY NETWORK SYSTE M SHALL PROVIDE ITS EMPLOYEE 24
683+BARGAINING UNIT AN O PPORTUNITY TO PROVID E MAINTENANCE AND OPER ATIONS 25
684+FOR ANY THERMAL ENER GY NETWORK SYSTEM . 26
717685
718- (E) (D) (1) THE FINDINGS AND EVID ENCE RELIED ON BY TH E GENERAL
719-ASSEMBLY FOR THE CONT INUATION OF THE MINORITY BUSINESS ENTERPRISE
720-PROGRAM UNDER TITLE 14, SUBTITLE 3 OF THE STATE FINANCE AND
721-PROCUREMENT ARTICLE ARE INCORPORA TED IN THIS SUBSECTI ON.
686+ (2) (I) SUBJECT TO SUBPARAGRA PH (II) OF THIS PARAGRAPH , AN 27
687+ELECTRIC COMPANY , A GAS COMPANY , OR A WATER COMPANY M AY CONTRACT ANY 28
688+WORK UNDER THIS SUBT ITLE NOT CONDUCTED B Y THE COMPANY ’S EMPLOYEE 29
689+BARGAINING UNIT TO A QUALIFIED CONTRACTOR . 30
722690
723- (2) TO THE EXTENT PRACTIC ABLE AND AUTHORIZED BY THE U. S.
724-CONSTITUTION, AN APPROVED PILOT SY STEM APPLICANT AND T HE MARYLAND
725-ENVIRONMENTAL SERVICE SHALL COMPLY WITH THE STATE’S MINORITY BUSINESS
726-ENTERPRISE PROGRAM.
727- WES MOORE, Governor Ch. 563
691+ (II) AN ELECTRIC COMPANY , A GAS COMPANY , OR A WATER 31
692+COMPANY SHALL REQUIR E A CONTRACTOR OR SU BCONTRACTOR ON A PRO JECT 32
693+UNDER THIS SUBTITLE TO: 33 16 SENATE BILL 570
728694
729-– 17 –
730- (3) (I) WITHIN 6 MONTHS AFTER THE APP ROVAL OF A PILOT
731-SYSTEM UNDER § 7–1002(C) OF THIS SUBTITLE , THE GOVERNOR’S OFFICE OF
732-SMALL, MINORITY, AND WOMEN BUSINESS AFFAIRS, IN CONSULTATION WITH THE
733-OFFICE OF THE ATTORNEY GENERAL AND THE GAS COMPANY OPERATING THE
734-APPROVED PILOT SYSTE M, SHALL ESTABLISH A CL EAR PLAN FOR SETTING
735-REASONABLE AND APPRO PRIATE MINORITY BUSI NESS ENTERPRISE PART ICIPATION
736-GOALS AND PROCEDURES FOR THE PILOT SYSTEM .
737695
738- (II) TO THE EXTENT PRACTIC ABLE, THE GOALS AND
739-PROCEDURES SPECIFIED IN SUBPARAGRAPH (I) OF THIS PARAGRAPH SH ALL BE
740-BASED ON THE REQUIRE MENTS OF TITLE 14, SUBTITLE 7 OF THE STATE FINANCE
741-AND PROCUREMENT ARTICLE AND THE REGUL ATIONS IMPLEMENTING THAT
742-SUBTITLE.
743696
744- (4) (I) A GAS COMPANY OPERATIN G A PILOT SYSTEM AND THE
745-MARYLAND ENVIRONMENTAL SERVICE SHALL SUBMIT AN ANNUAL REPORT ON
746-MINORITY ENTERPRISE PARTICIPATION TO THE COMMISSION.
697+ 1. PAY THE AREA PREVAIL ING WAGE RATE DETERMINED 1
698+BY THE COMMISSIONER OF LABOR AND INDUSTRY, INCLUDING WAGES AND FRINGE 2
699+BENEFITS; 3
747700
748- (II) THE COMMISSION SHALL PROV IDE ANY REPORTS
749-RECEIVED UNDER SUBPA RAGRAPH (I) OF THIS PARAGRAPH TO THE GENERAL
750-ASSEMBLY, IN ACCORDANCE WITH § 2–1257 OF THE STATE GOVERNMENT ARTICLE.
701+ 2. OFFER HEALTH CARE AN D RETIREMENT BENEFIT S TO 4
702+THE EMPLOYEES WORKIN G ON THE PROJECT ; 5
751703
752-7–1005.
704+ 3. PARTICIPATE IN AN AP PRENTICESHIP PROGRAM 6
705+REGISTERED WITH THE STATE OR THE U.S. DEPARTMENT OF LABOR; 7
753706
754- (A) AN ELECTRIC COMPANY , A GAS COMPANY , OR A WATER COMPANY M AY
755-OWN, MANAGE, AND RECOVER COSTS AS SOCIATED WITH A THER MAL ENERGY
756-NETWORK SYSTEM SUBJE CT TO THE APPROVAL O F THE COMMISSION.
707+ 4. ESTABLISH AND EXECUT E A PLAN FOR OUTREAC H, 8
708+RECRUITMENT , AND RETENTION OF STATE RESIDENTS TO PE RFORM WORK ON THE 9
709+PROJECT, WITH AN ASPIRATIONAL GOAL OF 25% OF TOTAL WORK HOURS 10
710+PERFORMED BY MARYLAND RESIDENTS , INCLUDING RESIDENTS WHO ARE: 11
757711
758- (B) AN ELECTRIC COMPANY , A GAS COMPANY , OR A WATER COMPANY M AY
759-DRILL A GEOTHERMAL B OREHOLE IN A PUBLIC UTILITY RIGHT–OF–WAY WHERE
760-FEASIBLE TO MEET THE REQUIREMENTS OF THIS SUBTITLE.
712+ A. RETURNING CITIZENS ; 12
761713
762-7–1006.
714+ B. WOMEN; 13
763715
764- THE COMMISSION MAY RETAIN INDEPENDENT CONSULTA NTS AND EXPERTS
765-TO:
716+ C. MINORITY INDIVIDUALS ; OR 14
766717
767- (1) ASSIST THE COMMISSION WITH ITS E VALUATION OF PILOT
768-SYSTEM APPLICATIONS UNDER § 7–1002(C) OF THIS SUBTITLE; AND
718+ D. VETERANS; 15
769719
770- (2) SUPPORT THE COMMISSION IN THE COM PLETION OF ANY
771-REQUIREMENTS UNDER T HIS SUBTITLE.
720+ 5. HAVE BEEN IN COMPLIA NCE WITH FEDERAL , STATE, 16
721+AND LOCAL WAGE AND H OUR LAWS FOR THE PRE VIOUS 3 YEARS; 17
772722
773-Article – Environment Ch. 563 2024 LAWS OF MARYLAND
723+ 6. BE SUBJECT TO ALL STATE REPORTING AND 18
724+COMPLIANCE REQUIREMENTS ; AND 19
774725
775-– 18 –
726+ 7. MAINTAIN ALL APPROPR IATE LICENSES IN GOO D 20
727+STANDING; AND 21
776728
777-1–701.
729+ 8. ESTABLISH AND EXECUT E A PLAN TO MEET OR 22
730+EXCEED THE MINORITY BUSINESS ENTERPRISE PARTICIPATION GOALS 23
731+ESTABLISHED UNDER SU BSECTION (D)(3) OF THIS SECTION. 24
778732
779- (a) (1) In this section the following words have the meanings indicated.
733+ (E) (D) (1) THE FINDINGS AND EVID ENCE RELIED ON BY TH E GENERAL 25
734+ASSEMBLY FOR THE CONT INUATION OF THE MINORITY BUSINESS ENTERPRISE 26
735+PROGRAM UNDER TITLE 14, SUBTITLE 3 OF THE STATE FINANCE AND 27
736+PROCUREMENT ARTICLE ARE INCORPORA TED IN THIS SUBSECTI ON. 28
780737
781- (7) “Overburdened community” means any census tract for which three or
782-more of the following environmental health indicators are above the 75th percentile
783-statewide:
738+ (2) TO THE EXTENT PRACTICABLE A ND AUTHORIZED BY THE U. S. 29
739+CONSTITUTION, AN APPROVED PILOT SY STEM APPLICANT AND T HE MARYLAND 30 SENATE BILL 570 17
784740
785- (i) Particulate matter (PM) 2.5;
786741
787- (ii) Ozone;
742+ENVIRONMENTAL SERVICE SHALL COMPLY WITH THE STATE’S MINORITY BUSINESS 1
743+ENTERPRISE PROGRAM. 2
788744
789- (iii) National Air Toxics Assessment (NATA) diesel PM;
745+ (3) (I) WITHIN 6 MONTHS AFTER THE APP ROVAL OF A PI LOT 3
746+SYSTEM UNDER § 7–1002(C) OF THIS SUBTITLE , THE GOVERNOR’S OFFICE OF 4
747+SMALL, MINORITY, AND WOMEN BUSINESS AFFAIRS, IN CONSULTATION WITH THE 5
748+OFFICE OF THE ATTORNEY GENERAL AND THE GAS C OMPANY OPERATING THE 6
749+APPROVED PILOT SYSTE M, SHALL ESTABLISH A CL EAR PLAN FOR SETTING 7
750+REASONABLE AND APPRO PRIATE MINORITY BUSI NESS ENTERPRISE PART ICIPATION 8
751+GOALS AND PROCEDURES FOR THE PILOT SYSTEM . 9
790752
791- (iv) NATA cancer risk;
753+ (II) TO THE EXTENT PRACTIC ABLE, THE GOALS AND 10
754+PROCEDURES SPECIFIED IN SUBPARAGRAPH (I) OF THIS PARAGRAPH SH ALL BE 11
755+BASED ON THE REQUIREMENTS OF TITLE 14, SUBTITLE 7 OF THE STATE FINANCE 12
756+AND PROCUREMENT ARTICLE AND THE REGUL ATIONS IMPLEMENTING THAT 13
757+SUBTITLE. 14
792758
793- (v) NATA respiratory hazard index;
759+ (4) (I) A GAS COMPANY OPERATIN G A PILOT SYSTEM AND THE 15
760+MARYLAND ENVIRONMENTAL SERVICE SHALL SUBMIT AN ANNUAL REPORT ON 16
761+MINORITY ENTERPRISE PARTICIPATION TO THE COMMISSION. 17
794762
795- (vi) Traffic proximity;
763+ (II) THE COMMISSION SHALL PROV IDE ANY REPORTS 18
764+RECEIVED UNDER SUBPA RAGRAPH (I) OF THIS PARAGRAPH TO THE GENERAL 19
765+ASSEMBLY, IN ACCORDANCE WITH § 2–1257 OF THE STATE GOVERNMENT ARTICLE. 20
796766
797- (vii) Lead paint indicator;
767+7–1005. 21
798768
799- (viii) National Priorities List Superfund site proximity;
769+ (A) AN ELECTRIC COMPANY , A GAS COMPANY , OR A WATER COMPANY M AY 22
770+OWN, MANAGE, AND RECOVER COSTS AS SOCIATED WITH A THER MAL ENERGY 23
771+NETWORK SYSTEM SUBJE CT TO THE APPROVAL O F THE COMMISSION. 24
800772
801- (ix) Risk Management Plan facility proximity;
773+ (B) AN ELECTRIC COMPANY , A GAS COMPANY , OR A WATER COMPANY M AY 25
774+DRILL A GEOT HERMAL BOREHOLE IN A PUBLIC UTILITY RIGHT –OF–WAY WHERE 26
775+FEASIBLE TO MEET THE REQUIREMENTS OF THIS SUBTITLE. 27
802776
803- (x) Hazardous waste proximity;
777+7–1006. 28
804778
805- (xi) Wastewater discharge indicator;
779+ THE COMMISSION MAY RETAIN INDEPENDENT CONSULTA NTS AND EXPERTS 29
780+TO: 30
806781
807- (xii) Proximity to a Concentrated Animal Feeding Operation (CAFO);
782+ (1) ASSIST THE COMMISSION WITH ITS E VALUATION OF PILOT 31
783+SYSTEM APPLICA TIONS UNDER § 7–1002(C) OF THIS SUBTITLE; AND 32
784+ 18 SENATE BILL 570
808785
809- (xiii) Percent of the population lacking broadband coverage;
810786
811- (xiv) Asthma emergency room discharges;
787+ (2) SUPPORT THE COMMISSION IN THE COM PLETION OF ANY 1
788+REQUIREMENTS UNDER T HIS SUBTITLE. 2
812789
813- (xv) Myocardial infarction discharges;
790+Article – Environment 3
814791
815- (xvi) Low–birth–weight infants;
792+1–701. 4
816793
817- (xvii) Proximity to emitting power plants;
794+ (a) (1) In this section the following words have the meanings indicated. 5
818795
819- (xviii) Proximity to a Toxic Release Inventory (TRI) facility;
796+ (7) “Overburdened community” means any census tract for which three or 6
797+more of the following environmental health indicators are above the 75th percentile 7
798+statewide: 8
820799
821- (xix) Proximity to a brownfields site; WES MOORE, Governor Ch. 563
800+ (i) Particulate matter (PM) 2.5; 9
822801
823-– 19 –
802+ (ii) Ozone; 10
824803
825- (xx) Proximity to mining operations; and
804+ (iii) National Air Toxics Assessment (NATA) diesel PM; 11
826805
827- (xxi) Proximity to a hazardous waste landfill.
806+ (iv) NATA cancer risk; 12
828807
829- (8) “Underserved community” means any census tract in which, according
830-to the most recent U.S. Census Bureau Survey:
808+ (v) NATA respiratory hazard index; 13
831809
832- (i) At least 25% of the residents qualify as low–income;
810+ (vi) Traffic proximity; 14
833811
834- (ii) At least 50% of the residents identify as nonwhite; or
812+ (vii) Lead paint indicator; 15
835813
836- (iii) At least 15% of the residents have limited English proficiency.
814+ (viii) National Priorities List Superfund site proximity; 16
837815
838-Article – Housing and Community Developm ent
816+ (ix) Risk Management Plan facility proximity; 17
839817
840-4–1801.
818+ (x) Hazardous waste proximity; 18
841819
842- (a) In this subtitle the following words have the meanings indicated.
820+ (xi) Wastewater discharge indicator; 19
843821
844- (c) “Area median income” means the median household income for the area
845-adjusted for household size as published and annually updated by the United States
846-Department of Housing and Urban Development.
822+ (xii) Proximity to a Concentrated Animal Feeding Operation (CAFO); 20
847823
848- SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect July
849-1, 2024.
824+ (xiii) Percent of the population lacking broadband coverage; 21
850825
851-Approved by the Governor, May 9, 2024.
826+ (xiv) Asthma emergency room discharges; 22
827+
828+ (xv) Myocardial infarction discharges; 23
829+
830+ (xvi) Low–birth–weight infants; 24
831+
832+ (xvii) Proximity to emitting power plants; 25
833+ SENATE BILL 570 19
834+
835+
836+ (xviii) Proximity to a Toxic Release Inventory (TRI) facility; 1
837+
838+ (xix) Proximity to a brownfields site; 2
839+
840+ (xx) Proximity to mining operations; and 3
841+
842+ (xxi) Proximity to a hazardous waste landfill. 4
843+
844+ (8) “Underserved community” means any census tract in which, according 5
845+to the most recent U.S. Census Bureau Survey: 6
846+
847+ (i) At least 25% of the residents qualify as low–income; 7
848+
849+ (ii) At least 50% of the residents identify as nonwhite; or 8
850+
851+ (iii) At least 15% of the residents have limited English proficiency. 9
852+
853+Article – Housing and Community Development 10
854+
855+4–1801. 11
856+
857+ (a) In this subtitle the following words have the meanings indicated. 12
858+
859+ (c) “Area median income” means the median household income for the area 13
860+adjusted for household size as published and annually updated by the United States 14
861+Department of Housing and Urban Development. 15
862+
863+ SECTION 2. AND BE IT FURTHER ENACTED, Tha t this Act shall take effect July 16
864+1, 2024. 17
865+
866+
867+
868+
869+Approved:
870+________________________________________________________________________________
871+ Governor.
872+________________________________________________________________________________
873+ President of the Senate.
874+________________________________________________________________________________
875+ Speaker of the House of Delegates.