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