EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
[Brackets] indicate matter deleted from existing law.
*sb0935*
SENATE BILL 935
M5, P2 4lr2906
CF 4lr2959
By: Senator Gallion
Introduced and read first time: February 2, 2024
Assigned to: Education, Energy, and the Environment
A BILL ENTITLED
AN ACT concerning 1
Department of General Services – Renewable Natural Gas Pilot Program – 2
Establishment 3
FOR the purpose of requiring the Department of General Services, in consultation with the 4
Public Service Commission, to establish a Renewable Natural Gas Pilot Program in 5
the Department on or before a certain date; requiring the Department, in 6
consultation with the Commission, to issue a certain solicitation for a renewable 7
natural gas contract; authorizing the Department to enter into a contract to procure 8
renewable natural gas; requiring the Department to collect certain data, require the 9
completion of certain lifecycle analyses, and analyze certain economic costs and 10
benefits; and generally relating to the Renewable Natural Gas Pilot Program. 11
BY repealing and reenacting, without amendments, 12
Article – Public Utilities 13
Section 7–704.4(a)(1) and (3) 14
Annotated Code of Maryland 15
(2020 Replacement Volume and 2023 Supplement) 16
BY adding to 17
Article – State Finance and Procurement 18
Section 4–325 and 4–326 to be under the new part “Part IV. State Purchase of 19
Energy” 20
Annotated Code of Maryland 21
(2021 Replacement Volume and 2023 Supplement) 22
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 23
That the Laws of Maryland read as follows: 24
Article – Public Utilities 25
7–704.4. 26 2 SENATE BILL 935
(a) (1) In this section the following words have the meanings indicated. 1
(3) “Social cost of greenhouse gases” means the most recent social cost of 2
greenhouse gases adopted by the U.S. Environmental Protection Agency. 3
Article – State Finance and Procurement 4
4–323. RESERVED. 5
4–324. RESERVED. 6
PART IV. STATE PURCHASE OF ENERGY. 7
4–325. 8
(A) IN THIS PART THE FOLLOWING WORDS HAVE THE MEANINGS 9
INDICATED. 10
(B) “PROGRAM” MEANS THE RENEWABLE NATURAL GAS PILOT PROGRAM. 11
(C) “SOCIAL COST OF GREENH OUSE GASES” HAS THE MEANING STAT ED IN § 12
7–704.4 OF THE PUBLIC UTILITIES ARTICLE. 13
4–326. 14
(A) ON OR BEFORE JANUARY 1, 2025, THE DEPARTMENT , IN 15
CONSULTATION WITH TH E PUBLIC SERVICE COMMISSION, SHALL ESTABLISH A 16
RENEWABLE NATURAL GAS PILOT PROGRAM IN THE DEPARTMENT . 17
(B) THE PURPOSE OF THE PROGRAM IS TO PROCURE RENEWABLE NA TURAL 18
GAS FOR USE AS A FUE L IN THE STATE’S TRANSPORTATION AND B UILDING SECTORS 19
TO EVALUATE THE ECONOMI C BENEFITS AND COSTS OF REPLACING FOSSIL 20
NATURAL GAS WITH REN EWABLE NATURAL GAS , ON A SHORT –TERM AND 21
LONG–TERM BASIS, IN FURTHERANCE OF TH E STATE’S NET–ZERO STATEWIDE 22
GREENHOUSE GAS EMISS IONS REDUCTION GOALS. 23
(C) (1) UNDER THE PROGRAM, THE DEPARTMENT , IN CONSULTATION 24
WITH THE PUBLIC SERVICE COMMISSION: 25
(I) SHALL ISSUE A COMPETITIVE SEALED PROCUREMENT 26
SOLICITATION FOR RENEWABLE NATURA L GAS; AND 27
SENATE BILL 935 3
(II) MAY ENTER INTO AT LE AST ONE CONTRACT TO PROCURE 1
RENEWABLE NATURAL GA S. 2
(2) WHEN ISSUING THE INVIT ATION FOR BIDS UNDER THIS 3
SUBSECTION, THE DEPARTMENT SHALL TAKE INTO CONSIDERAT ION: 4
(I) THE COST –EFFECTIVENESS OF THE ADOPTION OF 5
RENEWABLE NATURAL GA S; 6
(II) THE SOCIAL COST OF GREENHOUSE GASES ; AND 7
(III) THE STATE’S CLIMATE COMMITMENT S UNDER § 2–1204.2 8
OF THE ENVIRONMENT ARTICLE. 9
(3) (I) EXCEPT AS PROVIDED IN SUBPARAGRAPH (II) OF THIS 10
PARAGRAPH , RENEWABLE NATURAL GA S PROCURED THROUGH A CONTRACT UNDER 11
PARAGRAPH (1) OF THIS SUBSECTION S HALL BE GENERATED IN THE STATE. 12
(II) IF SUFFICIENT RENEWABL E NATURAL GAS GENERA TED IN 13
THE STATE IS NOT REASONABLY AV AILABLE FOR THE PROGRAM, THE STATE MAY 14
PROCURE RENEWABLE NATURAL GAS FROM SOURCES OUTSIDE THE STATE. 15
(D) THE DEPARTMENT SHALL : 16
(1) COLLECT GREENHOUSE G AS EMISSIONS REDUCTI ON DATA THAT 17
DETERMINES WHETHER RENEWABLE NA TURAL GAS MAY SUPPOR T THE STATE’S 18
CLIMATE COMMITMENTS UNDER § 2–1204.2 OF THE ENVIRONMENT ARTICLE; 19
(2) REQUIRE THE GENERATOR OR OTH ER APPROPRIATE ENTIT Y OF 20
RENEWABLE NATURAL GA S PROCURED UNDER THE PROGRAM TO COMPLETE A 21
CARBON LIFECY CLE ANALYSIS THROUGH AN INDEPENDENT , THIRD–PARTY 22
CONTRACTOR ; AND 23
(3) ANALYZE THE ECONOMIC BENEFIT S AND COSTS OF EXPANDING 24
THE USE OF RENEWABLE NATURAL GAS IN THE TRANSPORTATION AND B UILDING 25
SECTORS IN THE STATE. 26
(E) THE PROGRAM SHALL TERMINA TE ON DECEMBER 31, 2027. 27
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect 28
October 1, 2024. It shall remain effective for a period of 3 years and 9 months and, at the 29
end of June 30, 2028, this Act, with no further action required by the General Assembly, 30
shall be abrogated and of no further force and effect. 31