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.
*hb0128*
HOUSE BILL 128
M3, M1, C2 5lr1518
HB 1438/24 – ECM & ENT (PRE–FILED) CF SB 149
By: Delegate Fraser–Hidalgo
Requested: October 30, 2024
Introduced and read first time: January 8, 2025
Assigned to: Economic Matters and Environment and Transportation
Committee Report: Favorable with amendments
House action: Adopted
Read second time: March 7, 2025
CHAPTER ______
AN ACT concerning 1
Responding to Emergency Needs From Extreme Weather (RENEW) Act of 2025 2
Climate Change Adaptation and Mitigation – Total Assessed Cost of Greenhouse 3
Gas Emissions – Study and Reports 4
FOR the purpose of establishing the Climate Change Adaptation and Mitigation Payment 5
Program in the Department of the Environment to secure payments from certain 6
businesses that extract fossil fuels or refine petroleum products in order to provide 7
a source of revenue for State efforts to adapt to or mitigate the effects of climate 8
change and to address the health impacts of climate change on vulnerable 9
populations; establishing the Climate Change Adaptation and Mitigation Fund as a 10
special, nonlapsing fund; authorizing the Legislative Auditor to conduct certain 11
audits of the Fund and of the appropriations and expenditures made for the purposes 12
of the Climate Change Adaptation and Mitigation Payment Program; requiring the 13
Comptroller, in coordination with the Department of the Environment and the 14
Department of Commerce, to report to certain committees on or before a certain date 15
on the total assessed cost of greenhouse gas emissions in the State based on the 16
findings of a certain study; authorizing the Comptroller to hire a consultant to 17
conduct the study; requiring the report to include certain information and 18
calculations; and generally relating to the Climate Change Adaptation and 19
Mitigation Payment Program greenhouse gas emissions in the State. 20
BY repealing and reenacting, without amendments, 21
Article – Environment 22
Section 2–1504(a) 23 2 HOUSE BILL 128
Annotated Code of Maryland 1
(2013 Replacement Volume and 2024 Supplement) 2
BY repealing and reenacting, with amendments, 3
Article – Environment 4
Section 2–1504(e) 5
Annotated Code of Maryland 6
(2013 Replacement Volume and 2024 Supplement) 7
BY adding to 8
Article – Environment 9
Section 2–1701 through 2–1708 to be under the new subtitle “Subtitle 17. Climate 10
Change Adaptation and Mitigation Payment Program” 11
Annotated Code of Maryland 12
(2013 Replacement Volume and 2024 Supplement) 13
BY repealing and reenacting, without amendments, 14
Article – Natural Resources 15
Section 5–222(a) and (b) and 8–2B–03(a) 16
Annotated Code of Maryland 17
(2023 Replacement Volume and 2024 Supplement) 18
BY repealing and reenacting, with amendments, 19
Article – Natural Resources 20
Section 5–222(f) and 8–2B–03(e) 21
Annotated Code of Maryland 22
(2023 Replacement Volume and 2024 Supplement) 23
BY repealing and reenacting, without amendments, 24
Article – Public Safety 25
Section 14–110.4(b) and 14–110.5(b) 26
Annotated Code of Maryland 27
(2022 Replacement Volume and 2024 Supplement) 28
BY repealing and reenacting, with amendments, 29
Article – Public Safety 30
Section 14–110.4(h) and 14–110.5(f) 31
Annotated Code of Maryland 32
(2022 Replacement Volume and 2024 Supplement) 33
BY repealing and reenacting, without amendments, 34
Article – State Government 35
Section 9–2012(b) and (i)(1), 9–2015(b), and 9–20B–05(a) 36
Annotated Code of Maryland 37
(2021 Replacement Volume and 2024 Supplement) 38
BY repealing and reenacting, with amendments, 39 HOUSE BILL 128 3
Article – State Government 1
Section 9–2012(i)(4), 9–2015(f), and 9–20B–05(e) 2
Annotated Code of Maryland 3
(2021 Replacement Volume and 2024 Supplement) 4
BY adding to 5
Article – State Government 6
Section 9–20B–05(i–2) 7
Annotated Code of Maryland 8
(2021 Replacement Volume and 2024 Supplement) 9
BY repealing and reenacting, without amendments, 10
Article – Transportation 11
Section 7–1202(a) and 7–1203(a) 12
Annotated Code of Maryland 13
(2020 Replacement Volume and 2024 Supplement) 14
BY repealing and reenacting, with amendments, 15
Article – Transportation 16
Section 7–1203(c) 17
Annotated Code of Maryland 18
(2020 Replacement Volume and 2024 Supplement) 19
Preamble 20
WHEREAS, Climate change, resulting primarily from the combustion of fossil fuels, 21
is an immediate, grave threat to the State’s communities, environment, and economy; and 22
WHEREAS, In addition to mitigating the further buildup of greenhouse gases, the 23
State must take action to adapt to certain consequences of climate change that are 24
irreversible, including rising sea levels, increasing temperatures, extreme weather events, 25
flooding, heat waves, toxic algae blooms, and other threats; and 26
WHEREAS, Meeting the challenge of adapting to and mitigating the effects of 27
climate change will require a shared commitment of purpose and huge investments in new 28
or upgraded infrastructure; and 29
WHEREAS, The State has previously adopted programs, such as the Cigarette 30
Restitution Fund Program, to require industries that have profited by harming the public 31
welfare to shoulder their share of the burden in redressing that harm; and 32
WHEREAS, Based on decades of research, it is now possible to determine with great 33
accuracy the share of greenhouse gases released into the atmosphere by specific fossil fuel 34
companies over the last 70 years or more, making it possible to assign liability and require 35
compensation from companies commensurate with their emissions during a given time 36
period; now, therefore, 37
4 HOUSE BILL 128
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 1
That the Laws of Maryland read as follows: 2
Article – Environment 3
2–1504. 4
(a) There is a Zero–Emission Vehicle School Bus Transition Fund. 5
(e) The Fund consists of: 6
(1) Money appropriated in the State budget to the Fund; 7
(2) Interest earnings of the Fund; 8
(3) Donations; 9
(4) Money derived from legal settlements earmarked for the purpose of 10
transitioning to school buses that are zero–emission vehicles; [and] 11
(5) MONEY RECEIVED FROM T HE CLIMATE CHANGE ADAPTATION 12
AND MITIGATION FUND IN ACCORDANCE WI TH § 2–1705 OF THIS TITLE; AND 13
(6) Any other money from any other source accepted for the benefit of the 14
Fund. 15
SUBTITLE 17. CLIMATE CHANGE ADAPTATION AND MITIGATION PAYMENT 16
PROGRAM. 17
2–1701. 18
(A) IN THIS SUBTITLE THE FOLLOWING WORDS HAVE THE MEANINGS 19
INDICATED. 20
(B) (1) “CLIMATE CHANGE ADAPTI VE OR MITIGATION INF RASTRUCTURE 21
PROJECT” MEANS AN INFRASTRUCT URE PROJECT DESIGNED TO AVOID, MODERATE, 22
OR REPAIR DAMAGE CAU SED BY CLIMATE CHANG E. 23
(2) “CLIMATE CHANGE ADAPTI VE OR MITIGATION INF RASTRUCTURE 24
PROJECT” INCLUDES PROJECTS T O: 25
(I) CONSTRUCT SEAWALLS OR OTHER COASTAL DEFENS E 26
STRUCTURES ; 27
(II) UPGRADE STORMWATER OR SEWER SYSTEMS ; 28
HOUSE BILL 128 5
(III) MAKE DEFENSIVE UPGRAD ES TO ROADS , BRIDGES, RAIL 1
INFRASTRUCTURE , OR OTHER TRANSIT SYS TEMS; 2
(IV) PREPARE FOR AND RECOV ER FROM HURRI CANES AND 3
OTHER EXTREME WEATHE R EVENTS; 4
(V) RELOCATE, ELEVATE, OR RETROFIT WASTEWAT ER 5
TREATMENT PLANTS THA T ARE VULNERABLE TO FLOODING; 6
(VI) INSTALL HEAT PUMPS AN D OTHER CLEAN ENERGY 7
RETROFITS IN PUBLIC AND PRIVATE BUILDING S, INCLUDING SCHOOL BUILDINGS; 8
AND 9
(VII) RESPOND TO TOXIC ALGA E BLOOMS , THE LOSS OF 10
AGRICULTURAL TOPSOIL , AND OTHER CLIMATE –DRIVEN ECOSYSTEM THR EATS TO 11
FORESTS, FARMS, AND FISHERIES. 12
(C) “COAL” INCLUDES: 13
(1) BITUMINOUS COAL ; 14
(2) ANTHRACITE COAL ; AND 15
(3) LIGNITE. 16
(D) “COMMUNITY DISPROPORTI ONATELY AFFECTED BY CLIMATE IMPACTS ” 17
MEANS A COMMUNITY ID ENTIFIED IN ACCORDAN CE WITH § 1–702 OF THIS ARTICLE. 18
(E) “CONTROLLED GROUP ” MEANS TWO OR MORE EN TITIES TREATED AS A 19
SINGLE EMPLOYER UNDE R: 20
(1) § 52(A) OR (B) OF THE INTERNAL REVENUE CODE, WITHOUT 21
REGARD TO § 1563(B)(2)(C) OF THE INTERNAL REVENUE CODE; OR 22
(2) § 414(M) OR (O) OF THE INTERNAL REVENUE CODE. 23
(F) “COST RECOVERY DEMAND ” MEANS A CHARGE ASSER TED AGAINST A 24
RESPONSIBLE PARTY FO R COST RECOVERY PAYM ENTS UNDER THE PROGRAM. 25
(G) “COVERED GREENHOUSE GA S EMISSIONS ” MEANS THE TOTAL 26
QUANTITY OF GREENHOU SE GASES RELEASED IN TO THE ATMOSPHERE DU RING THE 27
COVERED PERIOD , EXPRESSED IN METRIC TONS OF CARBON DIOXI DE EQUIVALENT , 28
RESULTING FROM THE U SE OF FOSSIL FUELS O R PETROLEUM PRODUCTS 29
EXTRACTED, PRODUCED, REFINED, OR SOLD BY AN ENTITY . 30 6 HOUSE BILL 128
(H) “COVERED PERIOD ” MEANS MARCH 21, 1994, THROUGH DECEMBER 31, 1
2023, BOTH INCLUSIVE . 2
(I) (1) “CRUDE OIL” MEANS OIL OR PETROLE UM OF ANY KIND AND I N 3
ANY FORM. 4
(2) “CRUDE OIL” INCLUDES: 5
(I) BITUMEN; 6
(II) OIL SANDS; 7
(III) HEAVY OIL; 8
(IV) CONVENTIONAL AND UNCO NVENTIONAL OIL ; 9
(V) SHALE OIL; 10
(VI) NATURAL GAS LIQUIDS ; 11
(VII) CONDENSATES ; AND 12
(VIII) RELATED FOSSIL FUELS . 13
(J) “ENTITY” MEANS ANY INDIVIDUAL, TRUSTEE, AGENT, PARTNERSHIP , 14
ASSOCIATION, CORPORATION , COMPANY, MUNICIPAL CORPORATIO N, POLITICAL 15
SUBDIVISION, OR OTHER PERSON , INCLUDING A FOREIGN NATION, THAT HOLDS OR 16
HELD AN OWNERSHIP IN TEREST IN A FOSSIL F UEL BUSINESS DURING THE COVERED 17
PERIOD. 18
(K) “FOSSIL FUEL” MEANS COAL , PETROLEUM PRODUCTS , AND FUEL 19
GASES. 20
(L) “FOSSIL FUEL BUSINESS ” MEANS A BUSINESS ENG AGING IN THE 21
EXTRACTION OF FOSSIL FUELS OR THE REFININ G OF PETROLEUM PRODU CTS. 22
(M) “FUEL GAS” INCLUDES: 23
(1) METHANE; 24
(2) NATURAL GAS; 25
(3) LIQUEFIED NATURAL GAS ; AND 26
HOUSE BILL 128 7
(4) MANUFACTURED FUEL GAS ES. 1
(N) “FUND” MEANS THE CLIMATE CHANGE ADAPTATION AND MITIGATION 2
FUND ESTABLISHED UNDE R § 2–1705 OF THIS SUBTITLE. 3
(O) “GREENHOUSE GAS ” HAS THE MEANING STAT ED IN § 2–1202 OF THIS 4
TITLE. 5
(P) “NOTICE OF COST RECOVE RY DEMAND ” MEANS A WRITTEN 6
COMMUNICATION INFORM ING A RESPONSIBLE PA RTY OF THE AMOUNT OF THE COST 7
RECOVERY DEMAND PAYA BLE TO THE DEPARTMENT UNDER THIS SUBTITLE. 8
(Q) “PETROLEUM PRODUCT ” MEANS ANY PRODUCT RE FINED OR 9
RE–REFINED FROM : 10
(1) SYNTHETIC OR CRUDE OI L; OR 11
(2) CRUDE OIL EXTRACTED F ROM NATURAL GAS LIQU IDS OR OTHER 12
SOURCES. 13
(R) “PROGRAM” MEANS THE CLIMATE CHANGE ADAPTATION AND 14
MITIGATION PAYMENT PROGRAM ESTABLISHED U NDER § 2–1703 OF THIS 15
SUBTITLE. 16
(S) (1) “QUALIFYING EXPENDITUR E” MEANS AN AUTHORIZED PAYMENT 17
FROM THE FUND IN SUPPORT OF A CLIMATE CHANGE ADAPT IVE OR MITIGATION 18
INFRASTRUCTURE PROJE CT. 19
(2) “QUALIFYING EXPENDITUR E” INCLUDES, TO THE EXTENT 20
AUTHORIZED IN DEPARTMENT REGULATION S, A PAYMENT TOWA RD THE OPERATION 21
AND MAINTENANCE OF A CLIMATE CHANGE ADAPT IVE OR MITIGATION 22
INFRASTRUCTURE PROJE CT. 23
(T) (1) “RESPONSIBLE PARTY ” MEANS AN ENTITY , OR A SUCCESSOR IN 24
INTEREST TO AN ENTIT Y, THAT: 25
(I) DURING ANY PART OF TH E COVERED PERIOD , WAS 26
ENGAGED IN THE TRADE OR BUSINES S OF EXTRACTING FOSS IL FUEL OR REFINING 27
CRUDE OIL; AND 28
(II) IS DETERMINED BY THE DEPARTMENT TO BE RESP ONSIBLE 29
FOR MORE THAN 1,000,000,000 TONS OF COVERED GREE NHOUSE GAS EMISSIONS . 30
8 HOUSE BILL 128
(2) “RESPONSIBLE PARTY ” DOES NOT INCLUDE ANY PERSON THAT 1
LACKS SUFFICIENT CON NECTION WITH THE STATE TO SATISFY THE NEXUS 2
REQUIREMENTS OF THE UNITED STATES CONSTITUTION. 3
(U) “TOTAL ASSESSED COST O F GREENHOUSE GAS EMI SSIONS” MEANS THE 4
TOTAL ASSESSED COST TO THE STATE AND ITS RESIDEN TS OF COVERED 5
GREENHOU SE GAS EMISSIONS DUR ING THE COVERED PERI OD, AS DETERMINED BY 6
THE STATE TREASURER IN ACCORDAN CE WITH § 2–1704(C) OF THIS SUBTITLE. 7
2–1702. 8
(A) THIS SUBTITLE MAY NOT BE CONSTRUED TO : 9
(1) RELIEVE THE LIABILITY OF AN ENTITY FOR DAM AGES RESULTING 10
FROM CLIMATE CHANGE , AS PROVIDED BY LAW ; 11
(2) PREEMPT, DISPLACE, OR RESTRICT ANY RIGH T OR REMEDY OF A 12
PERSON OR UNIT OF STATE OR LOCAL GOVERN MENT UNDER THE LAW R ELATING TO 13
A PAST, PRESENT, OR FUTURE ALLEGATION OF: 14
(I) DECEPTION CONCERNING THE EFFECTS OF FOSSIL FU ELS 15
ON CLIMATE CHANGE ; 16
(II) DAMAGE OR INJURY RESU LTING FROM THE ROLE OF FOSSIL 17
FUELS IN CONTRIBUTIN G TO CLIMATE CHANGE ; OR 18
(III) FAILURE TO AVOID DAMA GE OR INJURY RELATIN G TO 19
CLIMATE CHANGE , INCLUDING CLAIMS FOR : 20
1. NUISANCE; 21
2. TRESPASS; 22
3. DESIGN DEFECT; 23
4. NEGLIGENCE; 24
5. FAILURE TO WARN ; 25
6. DECEPTIVE OR UNFAIR P RACTICES; OR 26
7. INJUNCTIVE, DECLARATORY , MONETARY, OR OTHER 27
FORM OF RELIEF ; OR 28
HOUSE BILL 128 9
(3) PREEMPT, SUPERSEDE, OR DISPLACE ANY STATE OR LOCAL LAW, 1
REGULATION , POLICY, OR PROGRAM THAT : 2
(I) LIMITS, SETS, OR ENFORCES STANDARD S FOR 3
GREENHOUSE GAS EMISS IONS; 4
(II) MONITORS, REPORTS, OR KEEPS RECORDS OF 5
GREENHOUSE GAS EMISS IONS; 6
(III) COLLECTS REVENUE THRO UGH FEES OR TAXES ; OR 7
(IV) CONDUCTS OR SUPPORTS INVESTIGATIONS . 8
(B) (1) EVERY CASE FILED IN A COURT OF THE STATE UNDER STATE LAW 9
MAY NOT BE EXPRESSLY OR IMPLIEDLY PREEMPT ED, DISPLACED, MOOTED, OR 10
DISMISSED ON ANY OTH ER PRUDENTIAL CONSID ERATION ARISING FROM THIS 11
SUBTITLE. 12
(2) TO THE EXTENT THAT AN Y ASPECT OF EVERY CA SE FILED IN A 13
COURT OF THE STATE IS REVIEWED FOR THE APPLICATION OF T HIS SUBTITLE, THE 14
APPLICATION OF THIS SUBTITLE IS SEVERABL E IN EACH OF ITS APP LICATIONS TO 15
EVERY PERSON AND CIR CUMSTANCE . 16
2–1703. 17
(A) THERE IS A CLIMATE CHANGE ADAPTATION AND MITIGATION 18
PAYMENT PROGRAM IN THE DEPARTMENT . 19
(B) THE PURPOSE OF THE PROGRAM IS TO: 20
(1) SECURE COMPENSATORY P AYMENTS FROM FOSSIL FUEL 21
BUSINESSES BASED ON A STANDARD OF STRICT LIABILITY IN ORDER T O PROVIDE A 22
SOURCE OF REVENUE FOR STATE EFFORTS TO : 23
(I) ADAPT TO AND MITIGATE THE EFFECTS OF CLIMA TE 24
CHANGE, INCLUDING THROUGH TH E IMPLEMENTATION OF CLIMATE CHANGE 25
ADAPTIVE OR MITIGATI ON INFRASTRUCTURE PR OJECTS; AND 26
(II) ADDRESS THE HEALTH IM PACTS OF CLIMATE CHA NGE ON 27
VULNERABLE POPULATIO NS; 28
(2) DETERMINE THE PROPORT IONAL LIABILITY OF R ESPONSIBLE 29
PARTIES IN ACCORDANC E WITH § 2–1704 OF THIS SUBTITLE; 30
10 HOUSE BILL 128
(3) IMPOSE COST RECOVERY DEMANDS ON RESPONSIB LE PARTIES 1
AND ISSUE NOTICES OF COST RECOVERY DEMAND S; 2
(4) ACCEPT AND COLLECT COST REC OVERY PAYMENTS FROM 3
RESPONSIBLE PARTIES ; 4
(5) IDENTIFY CLIMATE CHAN GE ADAPTIVE OR MITIG ATION 5
INFRASTRUCTURE PROJE CTS WITHIN THE STATE; 6
(6) DISBURSE FUNDS IN ACC ORDANCE WITH THIS SU BTITLE; AND 7
(7) ENSURE THAT AT LEAST 40% OF THE QUALIFIED EXPENDITUR ES 8
FROM THE PROGRAM GO TO CLIMATE CHANGE ADAPTIVE OR M ITIGATION 9
INFRASTRUCTURE PROJE CTS THAT DIRECTLY BE NEFIT COMMUNITIES 10
DISPROPORTIONATELY A FFECTED BY CLIMATE I MPACTS. 11
2–1704. 12
(A) THE STATE MAY IMPOSE COST RECOVERY DEMANDS ON A RESPONSIBLE 13
PARTY IF, AT ANY TIME DURING T HE COVERED PERIOD , THE RESPONSIBLE PART Y: 14
(1) DID BUSINESS IN THE STATE; 15
(2) WAS REGISTERED TO DO BUSINESS IN THE STATE; 16
(3) WAS APPOINTED AS AN A GENT OF THE STATE; OR 17
(4) OTHERWISE HAD SUFFICI ENT CONTACTS WITH THE STATE TO 18
GIVE THE STATE JURISDICTION OV ER THE RESPONSIBLE P ARTY IN ACCORDANCE 19
WITH STATE LAW. 20
(B) (1) A RESPONSIBLE PARTY IS STRICTLY LIABLE , WITHOUT REGARD 21
TO FAULT, FOR A SHARE OF THE C OSTS OF CLIMATE CHAN GE ADAPTIVE OR 22
MITIGATION IN FRASTRUCTURE PROJECT S, INCLUDING OPERATING AND 23
MAINTENANCE COSTS , SUPPORTED BY THE FUND. 24
(2) FOR PURPOSES OF THIS SECTION, ENTITIES IN A CONTRO LLED 25
GROUP: 26
(I) SHALL BE TREATED BY T HE DEPARTMENT AS A SINGL E 27
ENTITY FOR THE PURPO SE OF IDENTIFYING RE SPONSIBLE PARTIES; AND 28
(II) ARE JOINTLY AND SEVER ALLY LIABLE FOR PAYM ENT OF 29
ANY COST RECOVERY DE MAND OWED BY ANY ENT ITY IN THE CONTROLLE D GROUP. 30 HOUSE BILL 128 11
(C) (1) WITH RESPECT TO EACH RESPONSIBLE PARTY , THE COST 1
RECOVERY DEMAND SHAL L BE EQUAL TO AN AMO UNT THAT BEARS THE SAME RATIO 2
TO THE TOTAL ASSESSE D COST OF GREENHOUSE GAS EMISSIONS AS THE 3
RESPONSIBLE PARTY ’S APPLICABLE SHARE O F COVERED GREENHOUSE GAS 4
EMISSIONS BEARS TO T HE AGGREGATE APPLICA BLE SHARES OF ALL RE SPONSIBLE 5
PARTIES’ COVERED GREENHOUSE G AS EMISSIONS. 6
(2) (I) ON OR BEFORE DECEMBER 1, 2026, THE STATE 7
TREASURER, IN CONSULTATION WITH THE COMPTROLLER , THE DEPARTMENT , AND 8
ANY OTHER ENTITY AS DETERMINED BY THE STATE TREASURER, SHALL REPORT TO 9
THE SENATE BUDGET AND TAXATION COMMITTEE, THE SENATE EDUCATION, 10
ENERGY, AND ENVIRONMENT COMMITTEE, THE SENATE JUDICIAL PROCEEDINGS 11
COMMITTEE, THE HOUSE APPROPRIATIONS COMMITTEE, THE HOUSE 12
ENVIRONMENT AND TRANSPORTATION COMMITTEE, AND THE HOUSE JUDICIARY 13
COMMITTEE, IN ACCORDANCE WITH § 2–1257 OF THE STATE GOVERNMENT 14
ARTICLE, ON THE TOTAL ASSESSE D COST OF GREENHOUSE GAS EMISSIONS. 15
(II) THE REPORT REQUIRED U NDER SUBPARAGRAPH (I) OF 16
THIS PARAGRAPH SHALL INCLUDE: 17
1. A SUMMARY OF THE VARIO US COST–DRIVING 18
EFFECTS OF COVERED G REENHOUSE GAS EMISSI ONS ON THE STATE, INCLUDING 19
EFFECTS ON PUBLIC HE ALTH, NATURAL RESOURCES , BIODIVERSITY, AGRICULTURE , 20
ECONOMIC DEVELOPMENT , FLOOD PREPAREDNESS A ND SAFETY, AND HOUSING , 21
AND ANY OTHER EFFECT THAT THE STATE TREASURER, IN CONSULTATION WITH 22
THE COMPTROLLER AND THE DEPARTMENT , DETERMINES TO BE REL EVANT; 23
2. A CATEGORIZED CALCULAT ION OF THE COSTS THA T 24
HAVE BEEN INCURRED A ND COSTS THAT ARE PR OJECTED TO BE INCURR ED BY THE 25
STATE AND ITS RESIDEN TS FOR EACH EFFECT I DENTIFIED UNDER ITEM 1 OF THIS 26
SUBPARAGRAPH ; AND 27
3. A CATEGORIZED CALCULATION OF THE COSTS THAT 28
HAVE BEEN INCURRED A ND COSTS THAT ARE PR OJECTED TO BE INCURR ED BY THE 29
STATE AND ITS RESIDEN TS TO MITIGATE THE E FFECTS OF COVERED GR EENHOUSE 30
GAS EMISSIONS DURING THE COVERED PERIOD . 31
(D) (1) EXCEPT AS PROVIDED IN PARAGRAP H (2) OF THIS SUBSECTION , A 32
RESPONSIBLE PARTY ’S APPLICABLE SHARE O F GREENHOUSE GAS EMI SSIONS SHALL 33
BE THE AMOUNT BY WHI CH THE COVERED GREEN HOUSE GAS EMISSIONS 34
ATTRIBUTABLE TO THE RESPONSIBLE PARTY EX CEEDS 1,000,000,000 METRIC TONS. 35
12 HOUSE BILL 128
(2) IF A RESPONSIBLE PARTY OWNS A MINORIT Y INTEREST OF 10% OR 1
MORE IN ANOTHER ENTI TY, THE RESPONSIBLE PART Y’S APPLICABLE SHARE O F 2
GREENHOUSE GAS EMISS IONS SHALL BE CALCUL ATED AS THE APPLICAB LE SHARE 3
OF GREENHOUSE GAS EM ISSIONS FOR THE ENTI TY IN WHICH THE RESP ONSIBLE 4
PARTY HOLD S A MINORITY INTERES T, AS CALCULATED UNDER PARAGRAPH (1) OF 5
THIS SUBSECTION , MULTIPLIED BY THE PE RCENTAGE OF THE MINO RITY INTEREST 6
HELD BY THE RESPONSI BLE PARTY. 7
(3) IN DETERMINING THE AM OUNT OF GREENHOUSE G AS EMISSIONS 8
ATTRIBUTABLE TO AN E NTITY, THE DEPARTMENT SHALL ASSU ME THAT: 9
(I) 942.5 METRIC TONS OF CARBO N DIOXIDE EQUIVALENT IS 10
RELEASED FOR EVERY 1,000,000 POUNDS OF COAL ATTRI BUTABLE TO THE ENTIT Y; 11
(II) 432,180 METRIC TONS OF CARBO N DIOXIDE EQUIVALENT IS 12
RELEASED FOR EVERY 1,000,000 BARRELS OF CRUDE OIL ATTRI BUTABLE TO THE 13
ENTITY; AND 14
(III) 53,440 METRIC TONS OF CARBO N DIOXIDE EQUIVALENT IS 15
RELEASED FOR EVERY 1,000,000 CUBIC FEET OF FUEL G ASES ATTRIBUTABLE TO 16
THE ENTITY. 17
(E) THE DEPARTMENT MAY ADJUST THE COST RECOVERY DE MAND 18
AMOUNT OF A RESPONSIBLE PARTY THAT REFINES PETROLE UM PRODUCTS OR THAT 19
IS A SUCCESSOR IN IN TEREST TO AN ENTITY THAT REFINES PETROLE UM PRODUCTS , 20
IF THE RESPONSIBLE P ARTY ESTABLISHES TO THE SATISFACTION OF THE 21
DEPARTMENT THAT : 22
(1) A PORTION OF THE COST RECOVERY DEMAND AMOUNT WAS 23
ATTRIBUTABLE TO THE REFINING OF CRUDE OI L EXTRACTED BY ANOTH ER ENTITY; 24
AND 25
(2) THE CRUDE OIL EXTRACT ED BY THE OTHER ENTI TY WAS 26
ACCOUNTED FOR WHEN T HE DEPARTMENT DETERMINED THE COST RECOVERY 27
DEMAND AMOUNT FOR TH E OTHER ENTITY OR A SUCCESSOR IN INTERES T OF THE 28
OTHER ENTITY . 29
(F) (1) EXCEPT AS PROVIDED IN PARAGRAPH (2) OF THIS SUBSECTION , A 30
RESPONSIBLE PARTY SH ALL PAY THE COST REC OVERY DEMAND AMOUNT IN FULL 31
ON OR BEFORE OCTOBER 1, 2027. 32
(2) (I) A RESPONSIBLE PARTY MA Y ELECT TO PAY THE COST 33
RECOVERY DEMAND AMOU NT IN NINE ANNUAL IN STALLMENTS IN ACCORD ANCE 34
WITH THIS PARAGRAPH . 35 HOUSE BILL 128 13
(II) THE FIRST INSTALLMENT SHALL BE PAID ON OR BEFORE 1
OCTOBER 1, 2027, AND SHALL BE EQUAL T O 20% OF THE TOTAL COST RE COVERY 2
DEMAND AMOUNT . 3
(III) EACH SUBSEQUENT INSTALLMENT SHALL BE PAID ON OR 4
BEFORE SEPTEMBER 30 EACH SUBSEQUENT YEAR AND SHALL BE EQUAL T O 10% OF 5
THE TOTAL COST RECOV ERY DEMAND AMOUNT . 6
(IV) 1. THE UNPAID BALANCE OF ALL REMAINING 7
INSTALLMENTS SHALL B ECOME DUE IMMEDIATEL Y IF: 8
A. THE RESPONSIBLE PARTY FA ILS TO PAY ANY 9
INSTALLMENT IN A TIM ELY MANNER, AS SPECIFIED IN DEPARTMENT REGULATION S; 10
B. EXCEPT AS PROVIDED IN SUBSUBPARAGRAPH 2 OF 11
THIS SUBPARAGRAPH , THERE IS A LIQUIDATI ON OR SALE OF SUBSTA NTIALLY ALL 12
THE ASSETS OF THE RE SPONSIBLE PARTY, INCLUDING IN A BANKR UPTCY 13
PROCEEDING ; OR 14
C. THE RESPONSIBLE PARTY CEASES TO DO BUSINES S. 15
2. IN THE CASE OF A SALE OF SUBSTANTIALLY ALL THE 16
ASSETS OF A RESPONSI BLE PARTY, THE REMAINING INSTAL LMENTS SHALL NOT 17
BECOME DUE IMMEDIATE LY IF THE BUYER ENTERS INTO AN AGREEMENT WITH THE 18
DEPARTMENT UNDER WHIC H THE BUYER ASSUMES LIABILITY FOR THE RE MAINING 19
INSTALLMENTS DUE UND ER THIS SUBPARAGRAPH IN THE SAME MANNER A S IF THE 20
BUYER WERE THE RESPO NSIBLE PARTY. 21
(G) THE DEPARTMENT SHALL DEPO SIT COST RE COVERY PAYMENTS 22
COLLECTED UNDER THIS SECTION TO THE CLIMATE CHANGE ADAPTATION AND 23
MITIGATION FUND ESTABLISHED UNDE R § 2–1705 OF THIS SUBTITLE. 24
(H) A RESPONSIBLE PARTY MA Y REQUEST A HEARING UNDER TITLE 10, 25
SUBTITLE 2 OF THE STATE GOVERNMENT ARTICLE (ADMINISTRATIVE PROCEDURE 26
ACT – CONTESTED CASES) TO CONTEST A COST RE COVERY DEMAND MADE B Y THE 27
DEPARTMENT UNDER THIS SECTION. 28
(I) (1) THE REMEDIES PROVIDED IN THIS SECTION ARE IN ADDITION TO 29
ANY OTHER REMEDY PRO VIDED BY LAW. 30
(2) THIS SECTION MAY NOT BE CONSTRUED TO PREVENT A PERSON 31
FROM PURSUING A CIVI L ACTION OR ANY OTHE R REMEDY PROVIDED BY LAW. 32
14 HOUSE BILL 128
2–1705. 1
(A) THERE IS A CLIMATE CHANGE ADAPTATION AND MITIGATION FUND. 2
(B) THE PURPOSE OF THE FUND IS TO PROVIDE FU NDING FOR STATE 3
EFFORTS TO ADAPT TO AND MITIGATE THE EFFECTS OF CLIMATE CHANGE . 4
(C) THE DEPARTMENT SHALL ADMI NISTER THE FUND. 5
(D) (1) THE FUND IS A SPECIAL , NONLAPSING FUND THAT IS NOT 6
SUBJECT TO § 7–302 OF THE STATE FINANCE AND PROCUREMENT ARTICLE. 7
(2) THE STATE TREASURER SHALL HOLD THE FUND SEPARATELY , 8
AND THE COMPTROLLER SHALL ACC OUNT FOR THE FUND. 9
(E) THE FUND CONSISTS OF : 10
(1) COST RECOVERY PAYMENT S DISTRIBUTED TO THE FUND UNDER 11
§ 2–1704 OF THIS SUBTITLE; 12
(2) MONEY APPROPRIATED IN THE STATE BUDGET TO THE FUND; 13
AND 14
(3) ANY OTHER MONEY FROM ANY OTHER SOURCE ACCEPTE D FOR 15
THE BENEFIT OF THE FUND. 16
(F) THE FUND MAY BE USED ONLY : 17
(1) TO PAY: 18
(I) QUALIFIED EXPENDITURE S FOR CLIMATE CHANGE 19
ADAPTIVE OR MITIGATI ON INFRASTRUCTURE PR OJECTS IDENTIFIED BY THE 20
DEPARTMENT IN ACCORDANCE WITH REGU LATIONS ADOPTED UNDE R § 2–1707 OF 21
THIS SUBTITLE; AND 22
(II) REASONABLE ADMINISTRA TIVE COSTS OF THE PROGRAM; 23
(2) TO PROVIDE GRANTS TO LOCAL JURISDICTIONS IN ACCORDANCE 24
WITH § 2–1706 OF THIS SUBTITLE; 25
(3) FOR THE DEPARTMENT ’S COMPREHENSIVE FLOOD 26
MANAGEMENT GRANT PROGRAM UNDER § 5–803 OF THIS ARTICLE TO I MPLEMENT : 27
(I) CAPITAL PROJECTS UNDE RTAKEN AS PART OF 28
COMPREHENSIVE FLOOD MANAGEMENT PLANS ; AND 29 HOUSE BILL 128 15
(II) INFRASTRUCTURE REPAIR S, WATERSHED RESTORATIO N, 1
AND EMERGENCY PROTEC TION WORK ASSOCIATED W ITH FLOOD EVENTS ; AND 2
(4) TO SUPPORT THE FOLLOW ING: 3
(I) THE STATE DISASTER RECOVERY FUND UNDER § 4
14–110.5 OF THE PUBLIC SAFETY ARTICLE FOR DISASTER RECOVERY ASSISTANCE ; 5
(II) THE MARYLAND DEPARTMENT OF HEALTH’S OFFICE OF 6
MINORITY HEALTH AND HEALTH DISPARITIES IN ADDRES SING THE HEALTH 7
IMPACTS OF CLIMATE C HANGE ON MINORITY AD ULTS, CHILDREN, AND INFANTS; 8
(III) THE MARYLAND DEPARTMENT OF HEALTH’S COMMUNITY 9
HEALTH RESOURCES COMMISSION FOR THE HEALTH EQUITY RESOURCE 10
COMMUNITIES PROGRAM; 11
(IV) THE MARYLAND DEPARTMENT OF HEALTH’S MEDICAID 12
ADMINISTRATION TO USE FOR THE STATE MEDICAID PROGRAM ; 13
(V) THE DEPARTMENT OF NATURAL RESOURCES TO 14
INCORPORATE CLIMATE AND EQUITY PROVISION S IN LOCAL CRITICAL AREA 15
PROGRAM GRANTS ; 16
(VI) THE GREAT MARYLAND OUTDOORS FUND UNDER § 5–222 17
OF THE NATURAL RESOURCES ARTICLE TO SUPPORT CL IMATE EDUCATION AND 18
ADAPTATION ON PARK L ANDS; 19
(VII) THE WHOLE WATERSHED FUND UNDER § 8–2B–03 OF THE 20
NATURAL RESOURCES ARTICLE TO SUPPORT WA TERSHED AND COMMUNI TY 21
RESILIENCE; 22
(VIII) THE DEPARTMENT OF NATURAL RESOURCES IN MANAGING 23
FLOODING THROUGH THE IMPLEMENTATION OF ST REAM RESTORATION AND 24
NATURAL FILTRATION P ROJECTS; 25
(IX) THE DEPARTMENT OF NATURAL RESOURCES IN 26
PROVIDING PLANNING G RANTS TO LOCAL GOVERNMENTS TO PREPA RE FOR 27
EXTREME FLOODING ; 28
(X) THE MARYLAND STRATEGIC ENERGY INVESTMENT FUND 29
UNDER § 9–20B–05 OF THE STATE GOVERNMENT ARTICLE FOR: 30
16 HOUSE BILL 128
1. ENERGY EFFICIENCY PRO GRAMS BENEFITING 1
LOW–INCOME AND MODERATE –INCOME HOUSEHOLDS ; AND 2
2. OTHER CLEAN ENERGY IN VESTMENTS; 3
(XI) THE RESILIENCY HUB GRANT PROGRAM FUND UNDER § 4
9–2015 OF THE STATE GOVERNMENT ARTICLE IN DEVELOPING RESILIENCY HUBS 5
SERVING LOW–INCOME AND MODERATE –INCOME HOUSEHOLDS ; 6
(XII) THE MARYLAND DEPARTMENT OF EMERGENCY 7
MANAGEMENT IN SUPPLEM ENTING PRE –DISASTER MITIGATION FUNDING 8
PROVIDED UNDER THE F EDERAL BUILDING RESILIENT INFRASTRUCTURE AND 9
COMMUNITIES (BRIC) GRANT PROGRAM ; 10
(XIII) THE RESILIENT MARYLAND REVOLVING LOAN FUND 11
UNDER § 14–110.4 OF THE PUBLIC SAFETY ARTICLE; 12
(XIV) THE CLIMATE CATALYTIC CAPITAL FUND UNDER § 10–855 13
OF THE ECONOMIC DEVELOPMENT ARTICLE; 14
(XV) THE DEPARTMENT OF HOUSING AND COMMUNITY 15
DEVELOPMENT IN PROVID ING GRANTS AND LOANS UNDER THE MARYLAND 16
WHOLEHOME PROGRAM; 17
(XVI) THE MARYLAND ENERGY ADMINISTRATION IN PRO VIDING 18
FINANCIAL ASSISTANCE TO LOW–INCOME AND MODERATE –INCOME HOUSEHOLDS 19
TO TRANSITION THEIR HOMES OFF FOSSIL FUE LS; 20
(XVII) THE ENERGY STORAGE SYSTEM GRANT FUND UNDER § 21
9–2012 OF THE STATE GOVERNMENT ARTICLE; 22
(XVIII) THE DEPARTMENT OF COMMERCE IN ATTRACTIN G 23
CLEANTECH AND RENEWA BLE ENERGY BUSINESSE S TO THE STATE; 24
(XIX) THE DEPARTMENT ’S DAM SAFETY PROGRAM UNDER TITLE 25
5, SUBTITLE 5 OF THIS ARTICLE; 26
(XX) THE DEPARTMENT IN SUPPLEM ENTING FUNDING FOR T HE 27
COMMISSION ON ENVIRONMENTAL JUSTICE AND SUSTAINABLE COMMUNITIES 28
UNDER TITLE 1, SUBTITLE 7 OF THIS ARTICLE; 29
(XXI) THE DEPARTMENT OF TRANSPORTATION FOR TH E 30
STATEWIDE TRANSIT INNOVATION GRANT PROGRAM; 31
HOUSE BILL 128 17
(XXII) THE ZERO–EMISSION VEHICLE SCHOOL BUS TRANSITION 1
FUND UNDE R § 2–1504 OF THIS TITLE; 2
(XXIII) THE MARYLAND ENERGY ADMINISTRATION FOR TH E 3
MEDIUM–DUTY AND HEAVY–DUTY ZERO–EMISSION VEHICLE GRANT PROGRAM 4
UNDER § 9–2011 OF THE STATE GOVERNMENT ARTICLE; 5
(XXIV) THE MARYLAND ENERGY ADMINISTRATION FOR TH E 6
ELECTRIC VEHICLE RECHARGING EQUIPMENT REBATE PROGRAM UNDER § 9–2009 7
OF THE STATE GOVERNMENT ARTICLE; 8
(XXV) THE DEPARTMENT OF TRANSPORTATION FOR TH E KIM 9
LAMPHIER BIKEWAYS NETWORK PROGRAM UNDER § 2–608 OF THE 10
TRANSPORTATION ARTICLE; 11
(XXVI) THE TRANSIT–ORIENTED DEVELOPMENT CAPITAL 12
GRANT AND REVOLVING LOAN FUND UNDER TITLE 7, SUBTITLE 12 OF THE 13
TRANSPORTATION ARTICLE; 14
(XXVII) THE DEPARTMENT IN HIRING ADDITIONAL STAFF IN 15
THE DEPARTMENT TO WORK ON INITIATIVES TO PROTE CT OVERBURDENED AND 16
UNDERSERVED COMMUNIT IES, AS DEFINED IN § 1–701 OF THIS ARTICLE, FROM THE 17
EFFECTS OF CLIMATE C HANGE THROUGH IMPROV EMENTS TO PERMITTING 18
PROCESSES, COMMUNITY OUTREACH E FFORTS, AND OTHER INITIATIVE S; 19
(XXVIII) THE DEPARTMENT IN HIRING ADDITIONAL STAFF TO 20
SUPPORT THE DEPARTMENT ’S CLIMATE CHANGE PROGRAM; 21
(XXIX) THE PUBLIC SERVICE COMMISSION IN HIRING 22
ADDITIONAL STAFF TO SUPPORT IMPLEMENTATI ON OF THE EMPOWER MARYLAND 23
PROGRAM; AND 24
(XXX) THE MARYLAND DEPARTMENT OF EMERGENCY 25
MANAGEMENT IN HIRING ENGINEERING STAFF FO R THE OFFICE OF RESILIENCY TO 26
WORK ON FLOOD –RELATED ISSUES . 27
(G) (1) THE STATE TREASURER SHALL INVES T THE MONEY OF THE FUND 28
IN THE SAME MANNER A S OTHER STATE MONEY MAY BE IN VESTED. 29
(2) ANY INTEREST EARNINGS OF THE FUND SHALL BE CREDITE D TO 30
THE GENERAL FUND OF THE STATE. 31
(H) EXPENDITURES FROM THE FUND MAY BE MADE ONLY IN ACCORDANCE 32
WITH THE STATE BUDGET . 33 18 HOUSE BILL 128
(I) FOR EACH FISCAL YEAR , AT LEAST 40% OF FUNDING PROVIDED UNDER 1
THE FUND SHALL BE USED FO R PROJECTS THAT DIRE CTLY BENEFIT COMMUNI TIES 2
DISPROPORTIONATELY AFFECTED BY CLIMATE IMPACTS. 3
2–1706. 4
(A) THE DEPARTMENT SHALL ESTA BLISH AND ADMINISTER A GRANT 5
PROGRAM FOR THE DIST RIBUTION OF FUNDS RE CEIVED UNDER § 2–1705(F)(2) OF 6
THIS SUBTITLE TO LOC AL JURISDICTIONS FOR THE PURPOSE OF ASSIS TING LOCAL 7
EFFORTS TO ADAPT TO AND MITIGAT E THE EFFECTS OF CLI MATE CHANGE . 8
(B) THE DEPARTMENT SHALL ESTA BLISH: 9
(1) APPLICATION PROCEDURE S FOR THE GRANT PROG RAM; 10
(2) CRITERIA FOR PRIORITI ZING APPLICATIONS UN DER THE GRANT 11
PROGRAM; 12
(3) PROCEDURES FOR AWARDI NG GRANTS UND ER THE GRANT 13
PROGRAM; AND 14
(4) ANY OTHER PROCEDURES OR CRITERIA NECESSAR Y TO CARRY 15
OUT THIS SECTION . 16
2–1707. 17
(A) ON OR BEFORE OCTOBER 1, 2026, THE DEPARTMENT SHALL ADOP T 18
REGULATIONS NECESSAR Y TO CARRY OUT THE PROGRAM. 19
(B) THE REGULATIONS SHALL INCLUDE: 20
(1) METHODOLOGIES USING T HE BEST AVAILABLE SC IENCE TO 21
IDENTIFY RESPONSIBLE PARTIES AND DETERMIN E RESPONSIBLE PARTIE S’ 22
APPLICABLE SHARES OF GREENHOUSE GAS EMISS IONS; 23
(2) RULES RELATING TO : 24
(I) REGISTERING ENTITIES DETERMINED TO BE RES PONSIBLE 25
PARTIES UNDER THE PROGRAM; 26
(II) ISSUING NOTICES OF CO ST RECOVERY DEMANDS THAT 27
SHALL INCLUDE : 28
1. THE COST RECOVERY DEM AND AMOUNT ; 29 HOUSE BILL 128 19
2. THE TIME AND MANNER I N WHICH COST RECOVER Y 1
PAYMENTS MUST BE MAD E; 2
3. THE CONSEQUENCES OF N ONPAYMENT OR LA TE 3
PAYMENT; AND 4
4. INFORMATION REGARDING THE RIGHT TO REQUEST A 5
CONTESTED CASE HEARI NG; AND 6
(III) ACCEPTING PAYMENTS FR OM, PURSUING COLLECTION 7
EFFORTS AGAINST , AND NEGOTIATING SETT LEMENT AGREEMENTS WI TH 8
RESPONSIBLE PARTIES ; AND 9
(3) SUBJECT TO SUBSECTION (C) OF THIS SECTION , PROCEDURES 10
FOR IDENTIFYING CLIM ATE CHANGE ADAPTIVE OR MITIGATION INFRAS TRUCTURE 11
PROJECTS ELIGIBLE TO RECEIVE QUALIFYING E XPENDITURES FROM THE FUND. 12
(C) (1) THE DEPARTMENT MAY BY REG ULATION PROVIDE FOR CLIMATE 13
CHANGE ADAPTI VE OR MITIGATION INF RASTRUCTURE PROJECTS TO BE IDENTIFIED 14
FOR FUNDING THROUGH : 15
(I) LEGISLATIVE BUDGET AP PROPRIATIONS ; 16
(II) THE ISSUANCE OF REQUE STS FOR PROPOSALS FR OM LOCAL 17
GOVERNMENTS , NONPROFIT ORGANIZATI ONS, OR COMMUNITY GROUPS ; OR 18
(III) ANY OTHER METHOD THE DEPARTMENT DEEMS 19
APPROPRIATE . 20
(2) THE DEPARTMENT SHALL ENSU RE THAT AT LEAST 40% OF THE 21
QUALIFIED EXPENDITUR ES FROM THE PROGRAM GO TO CLIMATE CHANGE 22
ADAPTIVE OR MITIGATI ON INFRASTRUCTURE PR OJECTS THAT DIRECTLY BENEFIT 23
COMMUNITIES DISPRO PORTIONATELY AFFECTE D BY CLIMATE IMPACTS . 24
2–1708. 25
(A) ON OR BEFORE OCTOBER 1, 2028, AND EACH OCTOBER 1 THEREAFTER , 26
THE DEPARTMENT SHALL REPO RT TO THE GOVERNOR AND , IN ACCORDANCE WITH 27
§ 2–1257 OF THE STATE GOVERNMENT ARTICLE, THE GENERAL ASSEMBLY ON: 28
(1) THE COST RECOVERY PAY MENTS RECEIVED AND T HE FUNDING 29
DISBURSED FROM THE FUND DURING THE PRECE DING FISCAL YEAR ; 30
20 HOUSE BILL 128
(2) THE STATUS OF CLIMATE CHANGE ADAPTIVE OR M ITIGATION 1
INFRASTRUCTURE PROJE CTS FUNDED UNDER THE PROGRAM; 2
(3) THE PERCENTAGE OF QUA LIFIED EXPENDITURES MADE DURING 3
THE PRECEDING FISCAL YEAR THAT FUNDED CLI MATE CHANGE ADAPTIVE OR 4
MITIGATION INFRASTRU CTURE PROJECTS THAT DIRECTLY BENEFITED 5
COMMUNITIES DISPROPO RTIONATELY AFFECTED BY CLIMATE IMPACTS ; AND 6
(4) THE EFFECTIVENESS OF THE PROGRAM I N ACHIEVING THE 7
PURPOSES OF THIS SUB TITLE. 8
(B) (1) THE LEGISLATIVE AUDITOR MAY CONDUCT P OST AUDITS OF A 9
FISCAL AND COMPLIANC E NATURE OF THE FUND AND OF THE APPRO PRIATIONS AND 10
EXPENDITURES MADE FO R THE PURPOSES OF TH IS SUBTITLE. 11
(2) THE COST OF THE FISCAL PORTION OF AN AUDIT SHALL BE PAID 12
FROM THE FUND AS AN ADMINISTRA TIVE COST. 13
Article – Natural Resources 14
5–222. 15
(a) In this section, “Fund” means the Great Maryland Outdoors Fund. 16
(b) There is a Great Maryland Outdoors Fund in the Department. 17
(f) The Fund consists of: 18
(1) Money appropriated in the State budget to the Fund in accordance with 19
subsection (j) of this section; 20
(2) Interest earnings of the Fund; [and] 21
(3) MONEY RECEIVED FROM T HE CLIMATE CHANGE ADAPTATION 22
AND MITIGATION FUND IN ACCORDANCE WITH § 2–1705 OF THE ENVIRONMENT 23
ARTICLE; AND 24
(4) Any other money from any other source accepted for the benefit of the 25
Fund. 26
8–2B–03. 27
(a) There is a Whole Watershed Fund. 28
(e) The Fund consists of: 29 HOUSE BILL 128 21
(1) Revenue distributed to the Fund from: 1
(i) The Chesapeake and Atlantic Coastal Bays 2010 Trust Fund 2
established under § 8–2A–02 of this title; 3
(ii) The Bay Restoration Fund established under § 9–1605.2 of the 4
Environment Article; 5
(iii) The Clean Water Commerce Account estab lished under § 6
9–1605.4 of the Environment Article; 7
(iv) The Maryland Agricultural Land Preservation Fund established 8
under § 2–505 of the Agriculture Article; 9
(v) The cost–sharing program established under § 8–702 of the 10
Agriculture Article; and 11
(vi) The Waterway Improvement Fund established under § 8–707 of 12
this title; 13
(2) MONEY RECEIVED FROM T HE CLIMATE CHANGE ADAPTATION 14
AND MITIGATION FUND IN ACCORDANCE WI TH § 2–1705 OF THE ENVIRONMENT 15
ARTICLE; 16
(3) Money appropriated in the State budget to the Fund; 17
[(3)] (4) Interest earnings; and 18
[(4)] (5) Any other money from any other source accepted for the benefit 19
of the Fund. 20
Article – Public Safety 21
14–110.4. 22
(b) There is a Resilient Maryland Revolving Loan Fund. 23
(h) The Fund consists of: 24
(1) money appropriated in the State budget to the Fund; 25
(2) investment and interest earnings of the Fund; 26
(3) repayments of principal and interest from loans made from the Fund; 27
22 HOUSE BILL 128
(4) money received from the Federal Emergency Management Agency; 1
[and] 2
(5) MONEY RECEIVED FROM THE CLIMATE CHANGE ADAPTATION 3
AND MITIGATION FUND IN ACCORDANCE WI TH § 2–1705 OF THE ENVIRONMENT 4
ARTICLE; AND 5
(6) any other money from any other source accepted for the benefit of the 6
Fund. 7
14–110.5. 8
(b) There is a State Disaster Recovery Fund. 9
(f) (1) The Governor may include in the annual budget bill an appropriation 10
to the Fund. 11
(2) The Fund [shall consist] CONSISTS of: 12
(i) money appropriated in the State budget to the Fund; 13
(ii) repayments of principal and interest from loans made from the 14
Fund; 15
(iii) reimbursements from the federal government or other legal 16
entities for disaster recovery assistance expenditures made from the Fund; 17
(iv) FUNDS RECEIVED FROM THE CLIMATE CHANGE 18
ADAPTATION AND MITIGATION FUND IN ACCORDANCE WI TH § 2–1705 OF THE 19
ENVIRONMENT ARTICLE; 20
(V) interest earnings of the Fund; and 21
[(v)] (VI) any other money from any other source accepted for the 22
benefit of the Fund. 23
Article – State Government 24
9–2012. 25
(b) There is an Energy Storage System Grant Program in the Administration. 26
(i) (1) There is an Energy Storage System Grant Fund. 27
(4) The Fund consists of: 28
HOUSE BILL 128 23
(i) money appropriated in the State budget to the Fund; [and] 1
(ii) MONEY RECEIVED FROM THE CLIMATE CHANGE 2
ADAPTATION AND MITIGATION FUND IN ACCORDANCE WI TH § 2–1705 OF THE 3
ENVIRONMENT ARTICLE; AND 4
(III) any other money from any other source accepted for the benefit 5
of the Fund. 6
9–2015. 7
(b) There is a Resiliency Hub Grant Program Fund. 8
(f) The Fund consists of: 9
(1) grant funding obtained under subsection (k) of this section; 10
(2) funds distributed to the Fund under § 9–20B–05 of this title and §§ 11
2–110.1 and 13–201 of the Public Utilities Article; 12
(3) money appropriated in the State budget to the Fund; 13
(4) MONEY RECEIVED FROM THE CLIMATE CHANGE ADAPTATION 14
AND MITIGATION FUND IN ACCORDANCE WITH § 2–1705 OF THE ENVIRONMENT 15
ARTICLE; 16
(5) interest earnings; and 17
[(5)] (6) any other money from any other source accepted for the benefit 18
of the Fund. 19
9–20B–05. 20
(a) There is a Maryland Strategic Energy Investment Fund. 21
(e) The Fund consists of: 22
(1) all of the proceeds from the sale of allowances under § 2–1002(g) of the 23
Environment Article; 24
(2) money appropriated in the State budget to the Program; 25
(3) repayments and prepayments of principal and interest on loans made 26
from the Fund; 27
(4) interest and investment earnings on the Fund; 28 24 HOUSE BILL 128
(5) compliance fees paid under § 7–705 of the Public Utilities Article; 1
(6) money received from any public or private source for the benefit of the 2
Fund; 3
(7) money transferred from the Public Service Commission under § 4
7–207.2(c)(3) of the Public Utilities Article; [and] 5
(8) money distributed under § 2–614.1 of the Tax – General Article; AND 6
(9) MONEY RECEIVED FROM THE CLIMATE CHANGE ADAPTATION 7
AND MITIGATION FUND IN ACCORDANCE WITH § 2–1705 OF THE ENVIRONMENT 8
ARTICLE. 9
(I–2) MONEY RECEIVED FROM T HE CLIMATE CHANGE ADAPTATION AND 10
MITIGATION FUND IN ACCORDANCE WI TH § 2–1705 OF THE ENVIRONMENT ARTICLE 11
SHALL BE ACCOUNTED F OR SEPARATELY WITHIN THE FUND AND MAY BE USED FOR: 12
(1) ENERGY EFFICIENCY PR OGRAMS BENEFITING LO W–INCOME AND 13
MODERATE–INCOME HOUSEHOLDS ; AND 14
(2) OTHER CLEAN ENERGY I NVESTMENTS . 15
Article – Transportation 16
7–1202. 17
(a) There is a Transit–Oriented Development Capital Grant and Revolving Loan 18
Fund. 19
7–1203. 20
(a) The purpose of the Fund is to promote the equitable and inclusive 21
development of transit–oriented developments throughout the State. 22
(c) (1) The Fund consists of: 23
(i) Money appropriated in the State budget to the Fund; 24
(ii) Money made available for qualifying uses by the Fund from other 25
governmental sources, including eligible federal funding and the Transportation Trust 26
Fund; 27
HOUSE BILL 128 25
(iii) MONEY RECEIVED FROM T HE CLIMATE CHANGE 1
ADAPTATION AND MITIGATION FUND IN ACCORDANCE WI TH § 2–1705 OF THE 2
ENVIRONMENT ARTICLE; 3
(IV) Ground rents or land sale proceeds in accordance with § 4
10–306(c)(2) of the State Finance and Procurement Article; 5
[(iv)] (V) Payments of principal of and interest on loans made under 6
this title; 7
[(v)] (VI) Investment earnings of the Fund; and 8
[(vi)] (VII) Any other money from any other source, public or private, 9
accepted for the benefit of the Fund. 10
(2) Contributions to the Fund under paragraph [(1)(iii)] (1)(IV) of this 11
subsection shall: 12
(i) Be separately accounted for in the Fund; and 13
(ii) Be used only for the benefit of transit–oriented developments in 14
the same county where the real property subject to the ground rent or land sale is located. 15
(a) (1) The Comptroller, in coordination with the Department of the 16
Environment and the Department of Commerce, shall conduct a study to assess the total 17
cost of greenhouse gas emissions in the State. 18
(2) The Comptroller may hire a consultant to conduct the study. 19
(b) On or before December 1, 2026, the Comptroller, the Department of the 20
Environment, and the Department of Commerce shall report to the Senate Budget and 21
Taxation Committee, the Senate Committee on Education, Energy, and the Environment, 22
the Senate Judicial Proceedings Committee, the House Appropriations Committee, the 23
House Environment and Transportation Committee, and the House Judiciary Committee, 24
in accordance with § 2–1257 of the State Government Article, on the total assessed cost of 25
greenhouse gas emissions in the State based on the findings of the study conducted under 26
subsection (a) of this section. 27
(c) The report required under subsection (b) of this section shall include: 28
(1) a summary of the various cost–driving effects of covered greenhouse gas 29
emissions on the State, including effects on public health, natural resources, biodiversity, 30
agriculture, economic development, flood preparedness and safety, and housing, and any 31
other effect that the Comptroller and the Department of the Environment determine to be 32
relevant; 33
26 HOUSE BILL 128
(2) a categorized calculation of the costs that have been incurred and costs 1
that are projected to be incurred by the State and its residents for each effect identified 2
under item (1) of this subsection; 3
(3) a categorized calculation of the costs that have been incurred and costs 4
that are projected to be incurred by the State and its residents to mitigate the effects of 5
covered greenhouse gas emissions during the covered period; and 6
(4) an economic analysis to determine whether there would be a cost passed 7
on to taxpayers as a result of requiring each fossil fuel company that has a sufficient nexus 8
to the State and emitted more than 1,000,000,000 tons of greenhouse gas emissions globally 9
between 1995 and 2024 to compensate the State for climate change. 10
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect 11
October 1, 2025. 12
Approved:
________________________________________________________________________________
Governor.
________________________________________________________________________________
Speaker of the House of Delegates.
________________________________________________________________________________
President of the Senate.