Maryland 2024 Regular Session

Maryland Senate Bill SB935 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1
2	2
3	3	EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
4	4	[Brackets] indicate matter deleted from existing law.
5	5	sb0935
6	6
7	7	SENATE BILL 935
8	8	M5, P2 4lr2906
9	9	CF 4lr2959
10	10	By: Senator Gallion
11	11	Introduced and read first time: February 2, 2024
12	12	Assigned to: Education, Energy, and the Environment
13	13
14	14	A BILL ENTITLED
15	15
16	16	AN ACT concerning 1
17	17
18	18	Department of General Services – Renewable Natural Gas Pilot Program – 2
19	19	Establishment 3
20	20
21	21	FOR the purpose of requiring the Department of General Services, in consultation with the 4
22	22	Public Service Commission, to establish a Renewable Natural Gas Pilot Program in 5
23	23	the Department on or before a certain date; requiring the Department, in 6
24	24	consultation with the Commission, to issue a certain solicitation for a renewable 7
25	25	natural gas contract; authorizing the Department to enter into a contract to procure 8
26	26	renewable natural gas; requiring the Department to collect certain data, require the 9
27	27	completion of certain lifecycle analyses, and analyze certain economic costs and 10
28	28	benefits; and generally relating to the Renewable Natural Gas Pilot Program. 11
29	29
30	30	BY repealing and reenacting, without amendments, 12
31	31	Article – Public Utilities 13
32	32	Section 7–704.4(a)(1) and (3) 14
33	33	Annotated Code of Maryland 15
34	34	(2020 Replacement Volume and 2023 Supplement) 16
35	35
36	36	BY adding to 17
37	37	Article – State Finance and Procurement 18
38	38	Section 4–325 and 4–326 to be under the new part “Part IV. State Purchase of 19
39	39	Energy” 20
40	40	Annotated Code of Maryland 21
41	41	(2021 Replacement Volume and 2023 Supplement) 22
42	42
43	43	SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 23
44	44	That the Laws of Maryland read as follows: 24
45	45
46	46	Article – Public Utilities 25
47	47
48	48	7–704.4. 26 2 SENATE BILL 935
49	49
50	50
51	51
52	52	(a) (1) In this section the following words have the meanings indicated. 1
53	53
54	54	(3) “Social cost of greenhouse gases” means the most recent social cost of 2
55	55	greenhouse gases adopted by the U.S. Environmental Protection Agency. 3
56	56
57	57	Article – State Finance and Procurement 4
58	58
59	59	4–323. RESERVED. 5
60	60
61	61	4–324. RESERVED. 6
62	62
63	63	PART IV. STATE PURCHASE OF ENERGY. 7
64	64
65	65	4–325. 8
66	66
67	67	(A) IN THIS PART THE FOLLOWING WORDS HAVE THE MEANINGS 9
68	68	INDICATED. 10
69	69
70	70	(B) “PROGRAM” MEANS THE RENEWABLE NATURAL GAS PILOT PROGRAM. 11
71	71
72	72	(C) “SOCIAL COST OF GREENH OUSE GASES” HAS THE MEANING STAT ED IN § 12
73	73	7–704.4 OF THE PUBLIC UTILITIES ARTICLE. 13
74	74
75	75	4–326. 14
76	76
77	77	(A) ON OR BEFORE JANUARY 1, 2025, THE DEPARTMENT , IN 15
78	78	CONSULTATION WITH TH E PUBLIC SERVICE COMMISSION, SHALL ESTABLISH A 16
79	79	RENEWABLE NATURAL GAS PILOT PROGRAM IN THE DEPARTMENT . 17
80	80
81	81	(B) THE PURPOSE OF THE PROGRAM IS TO PROCURE RENEWABLE NA TURAL 18
82	82	GAS FOR USE AS A FUE L IN THE STATE’S TRANSPORTATION AND B UILDING SECTORS 19
83	83	TO EVALUATE THE ECONOMI C BENEFITS AND COSTS OF REPLACING FOSSIL 20
84	84	NATURAL GAS WITH REN EWABLE NATURAL GAS , ON A SHORT –TERM AND 21
85	85	LONG–TERM BASIS, IN FURTHERANCE OF TH E STATE’S NET–ZERO STATEWIDE 22
86	86	GREENHOUSE GAS EMISS IONS REDUCTION GOALS. 23
87	87
88	88	(C) (1) UNDER THE PROGRAM, THE DEPARTMENT , IN CONSULTATION 24
89	89	WITH THE PUBLIC SERVICE COMMISSION: 25
90	90
91	91	(I) SHALL ISSUE A COMPETITIVE SEALED PROCUREMENT 26
92	92	SOLICITATION FOR RENEWABLE NATURA L GAS; AND 27
93	93	SENATE BILL 935 3
94	94
95	95
96	96	(II) MAY ENTER INTO AT LE AST ONE CONTRACT TO PROCURE 1
97	97	RENEWABLE NATURAL GA S. 2
98	98
99	99	(2) WHEN ISSUING THE INVIT ATION FOR BIDS UNDER THIS 3
100	100	SUBSECTION, THE DEPARTMENT SHALL TAKE INTO CONSIDERAT ION: 4
101	101
102	102	(I) THE COST –EFFECTIVENESS OF THE ADOPTION OF 5
103	103	RENEWABLE NATURAL GA S; 6
104	104
105	105	(II) THE SOCIAL COST OF GREENHOUSE GASES ; AND 7
106	106
107	107	(III) THE STATE’S CLIMATE COMMITMENT S UNDER § 2–1204.2 8
108	108	OF THE ENVIRONMENT ARTICLE. 9
109	109
110	110	(3) (I) EXCEPT AS PROVIDED IN SUBPARAGRAPH (II) OF THIS 10
111	111	PARAGRAPH , RENEWABLE NATURAL GA S PROCURED THROUGH A CONTRACT UNDER 11
112	112	PARAGRAPH (1) OF THIS SUBSECTION S HALL BE GENERATED IN THE STATE. 12
113	113
114	114	(II) IF SUFFICIENT RENEWABL E NATURAL GAS GENERA TED IN 13
115	115	THE STATE IS NOT REASONABLY AV AILABLE FOR THE PROGRAM, THE STATE MAY 14
116	116	PROCURE RENEWABLE NATURAL GAS FROM SOURCES OUTSIDE THE STATE. 15
117	117
118	118	(D) THE DEPARTMENT SHALL : 16
119	119
120	120	(1) COLLECT GREENHOUSE G AS EMISSIONS REDUCTI ON DATA THAT 17
121	121	DETERMINES WHETHER RENEWABLE NA TURAL GAS MAY SUPPOR T THE STATE’S 18
122	122	CLIMATE COMMITMENTS UNDER § 2–1204.2 OF THE ENVIRONMENT ARTICLE; 19
123	123
124	124	(2) REQUIRE THE GENERATOR OR OTH ER APPROPRIATE ENTIT Y OF 20
125	125	RENEWABLE NATURAL GA S PROCURED UNDER THE PROGRAM TO COMPLETE A 21
126	126	CARBON LIFECY CLE ANALYSIS THROUGH AN INDEPENDENT , THIRD–PARTY 22
127	127	CONTRACTOR ; AND 23
128	128
129	129	(3) ANALYZE THE ECONOMIC BENEFIT S AND COSTS OF EXPANDING 24
130	130	THE USE OF RENEWABLE NATURAL GAS IN THE TRANSPORTATION AND B UILDING 25
131	131	SECTORS IN THE STATE. 26
132	132
133	133	(E) THE PROGRAM SHALL TERMINA TE ON DECEMBER 31, 2027. 27
134	134
135	135	SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect 28
136	136	October 1, 2024. It shall remain effective for a period of 3 years and 9 months and, at the 29
137	137	end of June 30, 2028, this Act, with no further action required by the General Assembly, 30
138	138	shall be abrogated and of no further force and effect. 31