EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
[Brackets] indicate matter deleted from existing law.
*hb1417*
HOUSE BILL 1417
M5, P2 5lr1216
CF SB 480
By: Delegates Adams, Hornberger, Hutchinson, Pippy, and Sample –Hughes
Introduced and read first time: February 7, 2025
Assigned to: Economic Matters
A BILL ENTITLED
AN ACT concerning 1
Department of General Services – Clean Energy Procurement Program – 2
Establishment 3
FOR the purpose of requiring the Department of General Services, in consultation with the 4
Maryland Green Purchasing Committee, the University System of Maryland, and 5
the Maryland Clean Energy Center, to establish a Clean Energy Procurement 6
Program in the Department on or before a certain date; requiring the Department, 7
in consultation with the Maryland Green Purchasing Committee, the University 8
System of Maryland, and the Maryland Clean Energy Center, to issue a certain 9
solicitation for a biogas contract; authorizing the Department to enter into a contract 10
to procure biogas; requiring the Department to collect certain data and analyze 11
certain environmental and economic costs and benefits; requiring the University 12
System of Maryland to complete a certain lifecycle analysis; requiring the Power 13
Plant Research Program to reimburse the University System of Maryland for costs 14
incurred to complete the lifecycle analysis; and generally relating to the Clean 15
Energy Procurement Program. 16
BY repealing and reenacting, without amendments, 17
Article – Public Utilities 18
Section 7–704.4(a)(1) and (3) 19
Annotated Code of Maryland 20
(2020 Replacement Volume and 2024 Supplement) 21
BY adding to 22
Article – State Finance and Procurement 23
Section 4–325 and 4–326 to be under the new part “Part IV. State Purchase of 24
Energy” 25
Annotated Code of Maryland 26
(2021 Replacement Volume and 2024 Supplement) 27
2 HOUSE BILL 1417
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 1
That the Laws of Maryland read as follows: 2
Article – Public Utilities 3
7–704.4. 4
(a) (1) In this section the following words have the meanings indicated. 5
(3) “Social cost of greenhouse gases” means the most recent social cost of 6
greenhouse gases adopted by the U.S. Environmental Protection Agency. 7
Article – State Finance and Procurement 8
4–323. RESERVED. 9
4–324. RESERVED. 10
PART IV. STATE PURCHASE OF ENERGY. 11
4–325. 12
(A) IN THIS PART THE FOLL OWING WORDS HAVE THE MEANINGS 13
INDICATED. 14
(B) “COMMITTEE” MEANS THE MARYLAND GREEN PURCHASING 15
COMMITTEE ESTABLISHED UNDER § 14–410 OF THIS ARTICLE. 16
(C) “PROGRAM” MEANS THE CLEAN ENERGY PROCUREMENT PROGRAM. 17
(D) “SOCIAL COST OF GREENH OUSE GASES” HAS THE MEANING STAT ED IN § 18
7–704.4 OF THE PUBLIC UTILITIES ARTICLE. 19
4–326. 20
(A) ON OR BEFORE JANUARY 1, 2026, THE DEPARTMENT , IN 21
CONSULTATION WITH TH E COMMITTEE, THE UNIVERSITY SYSTEM OF MARYLAND, 22
AND THE MARYLAND CLEAN ENERGY CENTER, SHALL ESTABLISH A CLEAN ENERGY 23
PROCUREMENT PROGRAM IN THE DEPARTMENT . 24
(B) THE PURPOSE OF THE PROGRAM IS TO PROCURE BIOGAS FOR USE AS A 25
FUEL IN THE STATE’S TRANSPORTATION AND BUILDING SECTORS TO EVALUATE THE 26
ENVIRONMENTAL AND ECONOM IC BENEFITS AND COST S OF REPLACING FOSSI L 27
NATURAL GAS WITH BIOGAS, ON A SHORT –TERM AND LONG –TERM BASIS, IN 28 HOUSE BILL 1417 3
FURTHERANCE OF THE STATE’S NET–ZERO STATEWIDE GREEN HOUSE GAS 1
EMISSIONS REDUCTION GOALS. 2
(C) (1) UNDER THE PROGRAM, THE DEPARTMENT , IN CONSULTATION 3
WITH THE COMMITTEE, THE UNIVERSITY SYSTEM OF MARYLAND, AND THE 4
MARYLAND CLEAN ENERGY CENTER: 5
(I) SHALL ISSUE A COMPET ITIVE SEALED PROCURE MENT 6
SOLICITATION FOR BIOGAS; AND 7
(II) MAY ENTER INTO AT LE AST ONE CONTRACT TO PROCURE 8
BIOGAS. 9
(2) WHEN ISSUING THE INVI TATION FOR BIDS UNDE R THIS 10
SUBSECTION, THE DEPARTMENT SHALL TAKE INTO CONSIDERATION : 11
(I) THE COST–EFFECTIVENESS OF THE ADOPTION OF BIOGAS; 12
(II) THE SOCIAL COST OF G REENHOUSE GASES ; AND 13
(III) THE STATE’S CLIMATE COMMITMENTS UNDER § 2–1204.2 14
OF THE ENVIRONMENT ARTICLE. 15
(3) (I) EXCEPT AS PROVIDED IN SUBPARAGRAPH (II) OF THIS 16
PARAGRAPH , BIOGAS PROCURED THROUGH A C ONTRACT UNDER PARAGR APH (1) OF 17
THIS SUBSECTION SHAL L BE GENERATED IN TH E STATE. 18
(II) IF SUFFICIENT BIOGAS GENERATED IN THE STATE IS NOT 19
REASONABLY AVAILABLE FOR THE PROGRAM, THE STATE MAY PROCURE BIOGAS 20
FROM SOURCES OUTSIDE THE STATE. 21
(D) (1) THE DEPARTMENT SHALL : 22
(I) COLLECT DATA ON THE AVERAGE CONSU MPTION OF 23
NATURAL GAS IN THE STATE AND PROVIDE THE DATA TO THE UNIVERSITY SYSTEM 24
OF MARYLAND TO DETERMINE WHETHER BIOGAS MAY SUPPORT THE STATE’S 25
CLIMATE COMMITMENTS UNDER § 2–1204.2 OF THE ENVIRONMENT ARTICLE; AND 26
(II) ANALYZE THE ENVIRONM ENTAL AND ECONOMIC COSTS AND 27
BENEFITS OF EXPAND ING THE USE OF BIOGAS IN THE TRANSPORTATIO N AND 28
BUILDING SECTORS IN THE STATE. 29
4 HOUSE BILL 1417
(2) (I) THE UNIVERSITY SYSTEM OF MARYLAND SHALL 1
COMPLETE A CARBON LIFECYCLE ANA LYSIS OF BIOGAS AND PROVIDE THE RESU LTS 2
TO THE DEPARTMENT AND THE COMMITTEE. 3
(II) THE POWER PLANT RESEARCH PROGRAM ESTABLISHED 4
UNDER TITLE 3, SUBTITLE 3 OF THE NATURAL RESOURCES ARTICLE SHALL 5
REIMBURSE THE UNIVERSITY SYSTEM OF MARYLAND FOR COSTS IN CURRED TO 6
COMPLETE THE CARBON LIFECYCLE ANALYSIS R EQUIRED UNDER SUBPAR AGRAPH 7
(I) OF THIS PARAGRAPH . 8
(E) THE REQUIREMENTS OF T HIS SECTION APPLY ONLY IF: 9
(1) BIOGAS IS COMPETITIVE LY PRICED; 10
(2) THE QUALITY OF THE BIOGAS IS SATISFACTORY FOR THE 11
INTENDED PURPOSE ; AND 12
(3) BIOGAS IS READILY AVA ILABLE. 13
(F) THE PROGRAM SHALL TERMINA TE ON DECEMBER 31, 2028. 14
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect 15
October 1, 2025. It shall remain effective for a period of 3 years and 9 months and, at the 16
end of June 30, 2029, this Act, with no further action required by the General Assembly, 17
shall be abrogated and of no further force and effect. 18