1 | 1 | | |
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2 | 2 | | |
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3 | 3 | | EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW. |
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4 | 4 | | [Brackets] indicate matter deleted from existing law. |
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5 | 5 | | *hb1417* |
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6 | 6 | | |
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7 | 7 | | HOUSE BILL 1417 |
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8 | 8 | | M5, P2 5lr1216 |
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9 | 9 | | CF SB 480 |
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10 | 10 | | By: Delegates Adams, Hornberger, Hutchinson, Pippy, and Sample –Hughes |
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11 | 11 | | Introduced and read first time: February 7, 2025 |
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12 | 12 | | Assigned to: Economic Matters |
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13 | 13 | | |
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14 | 14 | | A BILL ENTITLED |
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15 | 15 | | |
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16 | 16 | | AN ACT concerning 1 |
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17 | 17 | | |
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18 | 18 | | Department of General Services – Clean Energy Procurement Program – 2 |
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19 | 19 | | Establishment 3 |
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20 | 20 | | |
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21 | 21 | | FOR the purpose of requiring the Department of General Services, in consultation with the 4 |
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22 | 22 | | Maryland Green Purchasing Committee, the University System of Maryland, and 5 |
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23 | 23 | | the Maryland Clean Energy Center, to establish a Clean Energy Procurement 6 |
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24 | 24 | | Program in the Department on or before a certain date; requiring the Department, 7 |
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25 | 25 | | in consultation with the Maryland Green Purchasing Committee, the University 8 |
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26 | 26 | | System of Maryland, and the Maryland Clean Energy Center, to issue a certain 9 |
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27 | 27 | | solicitation for a biogas contract; authorizing the Department to enter into a contract 10 |
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28 | 28 | | to procure biogas; requiring the Department to collect certain data and analyze 11 |
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29 | 29 | | certain environmental and economic costs and benefits; requiring the University 12 |
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30 | 30 | | System of Maryland to complete a certain lifecycle analysis; requiring the Power 13 |
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31 | 31 | | Plant Research Program to reimburse the University System of Maryland for costs 14 |
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32 | 32 | | incurred to complete the lifecycle analysis; and generally relating to the Clean 15 |
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33 | 33 | | Energy Procurement Program. 16 |
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34 | 34 | | |
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35 | 35 | | BY repealing and reenacting, without amendments, 17 |
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36 | 36 | | Article – Public Utilities 18 |
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37 | 37 | | Section 7–704.4(a)(1) and (3) 19 |
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38 | 38 | | Annotated Code of Maryland 20 |
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39 | 39 | | (2020 Replacement Volume and 2024 Supplement) 21 |
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40 | 40 | | |
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41 | 41 | | BY adding to 22 |
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42 | 42 | | Article – State Finance and Procurement 23 |
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43 | 43 | | Section 4–325 and 4–326 to be under the new part “Part IV. State Purchase of 24 |
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44 | 44 | | Energy” 25 |
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45 | 45 | | Annotated Code of Maryland 26 |
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46 | 46 | | (2021 Replacement Volume and 2024 Supplement) 27 |
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47 | 47 | | 2 HOUSE BILL 1417 |
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48 | 48 | | |
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49 | 49 | | |
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50 | 50 | | SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 1 |
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51 | 51 | | That the Laws of Maryland read as follows: 2 |
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52 | 52 | | |
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53 | 53 | | Article – Public Utilities 3 |
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54 | 54 | | |
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55 | 55 | | 7–704.4. 4 |
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56 | 56 | | |
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57 | 57 | | (a) (1) In this section the following words have the meanings indicated. 5 |
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58 | 58 | | |
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59 | 59 | | (3) “Social cost of greenhouse gases” means the most recent social cost of 6 |
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60 | 60 | | greenhouse gases adopted by the U.S. Environmental Protection Agency. 7 |
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61 | 61 | | |
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62 | 62 | | Article – State Finance and Procurement 8 |
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63 | 63 | | |
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64 | 64 | | 4–323. RESERVED. 9 |
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65 | 65 | | |
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66 | 66 | | 4–324. RESERVED. 10 |
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67 | 67 | | |
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68 | 68 | | PART IV. STATE PURCHASE OF ENERGY. 11 |
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69 | 69 | | |
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70 | 70 | | 4–325. 12 |
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71 | 71 | | |
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72 | 72 | | (A) IN THIS PART THE FOLL OWING WORDS HAVE THE MEANINGS 13 |
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73 | 73 | | INDICATED. 14 |
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74 | 74 | | |
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75 | 75 | | (B) “COMMITTEE” MEANS THE MARYLAND GREEN PURCHASING 15 |
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76 | 76 | | COMMITTEE ESTABLISHED UNDER § 14–410 OF THIS ARTICLE. 16 |
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77 | 77 | | |
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78 | 78 | | (C) “PROGRAM” MEANS THE CLEAN ENERGY PROCUREMENT PROGRAM. 17 |
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79 | 79 | | |
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80 | 80 | | (D) “SOCIAL COST OF GREENH OUSE GASES” HAS THE MEANING STAT ED IN § 18 |
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81 | 81 | | 7–704.4 OF THE PUBLIC UTILITIES ARTICLE. 19 |
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82 | 82 | | |
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83 | 83 | | 4–326. 20 |
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84 | 84 | | |
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85 | 85 | | (A) ON OR BEFORE JANUARY 1, 2026, THE DEPARTMENT , IN 21 |
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86 | 86 | | CONSULTATION WITH TH E COMMITTEE, THE UNIVERSITY SYSTEM OF MARYLAND, 22 |
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87 | 87 | | AND THE MARYLAND CLEAN ENERGY CENTER, SHALL ESTABLISH A CLEAN ENERGY 23 |
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88 | 88 | | PROCUREMENT PROGRAM IN THE DEPARTMENT . 24 |
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89 | 89 | | |
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90 | 90 | | (B) THE PURPOSE OF THE PROGRAM IS TO PROCURE BIOGAS FOR USE AS A 25 |
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91 | 91 | | FUEL IN THE STATE’S TRANSPORTATION AND BUILDING SECTORS TO EVALUATE THE 26 |
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92 | 92 | | ENVIRONMENTAL AND ECONOM IC BENEFITS AND COST S OF REPLACING FOSSI L 27 |
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93 | 93 | | NATURAL GAS WITH BIOGAS, ON A SHORT –TERM AND LONG –TERM BASIS, IN 28 HOUSE BILL 1417 3 |
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94 | 94 | | |
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95 | 95 | | |
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96 | 96 | | FURTHERANCE OF THE STATE’S NET–ZERO STATEWIDE GREEN HOUSE GAS 1 |
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97 | 97 | | EMISSIONS REDUCTION GOALS. 2 |
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98 | 98 | | |
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99 | 99 | | (C) (1) UNDER THE PROGRAM, THE DEPARTMENT , IN CONSULTATION 3 |
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100 | 100 | | WITH THE COMMITTEE, THE UNIVERSITY SYSTEM OF MARYLAND, AND THE 4 |
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101 | 101 | | MARYLAND CLEAN ENERGY CENTER: 5 |
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102 | 102 | | |
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103 | 103 | | (I) SHALL ISSUE A COMPET ITIVE SEALED PROCURE MENT 6 |
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104 | 104 | | SOLICITATION FOR BIOGAS; AND 7 |
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105 | 105 | | |
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106 | 106 | | (II) MAY ENTER INTO AT LE AST ONE CONTRACT TO PROCURE 8 |
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107 | 107 | | BIOGAS. 9 |
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108 | 108 | | |
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109 | 109 | | (2) WHEN ISSUING THE INVI TATION FOR BIDS UNDE R THIS 10 |
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110 | 110 | | SUBSECTION, THE DEPARTMENT SHALL TAKE INTO CONSIDERATION : 11 |
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111 | 111 | | |
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112 | 112 | | (I) THE COST–EFFECTIVENESS OF THE ADOPTION OF BIOGAS; 12 |
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113 | 113 | | |
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114 | 114 | | (II) THE SOCIAL COST OF G REENHOUSE GASES ; AND 13 |
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115 | 115 | | |
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116 | 116 | | (III) THE STATE’S CLIMATE COMMITMENTS UNDER § 2–1204.2 14 |
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117 | 117 | | OF THE ENVIRONMENT ARTICLE. 15 |
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118 | 118 | | |
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119 | 119 | | (3) (I) EXCEPT AS PROVIDED IN SUBPARAGRAPH (II) OF THIS 16 |
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120 | 120 | | PARAGRAPH , BIOGAS PROCURED THROUGH A C ONTRACT UNDER PARAGR APH (1) OF 17 |
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121 | 121 | | THIS SUBSECTION SHAL L BE GENERATED IN TH E STATE. 18 |
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122 | 122 | | |
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123 | 123 | | (II) IF SUFFICIENT BIOGAS GENERATED IN THE STATE IS NOT 19 |
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124 | 124 | | REASONABLY AVAILABLE FOR THE PROGRAM, THE STATE MAY PROCURE BIOGAS 20 |
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125 | 125 | | FROM SOURCES OUTSIDE THE STATE. 21 |
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126 | 126 | | |
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127 | 127 | | (D) (1) THE DEPARTMENT SHALL : 22 |
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128 | 128 | | |
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129 | 129 | | (I) COLLECT DATA ON THE AVERAGE CONSU MPTION OF 23 |
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130 | 130 | | NATURAL GAS IN THE STATE AND PROVIDE THE DATA TO THE UNIVERSITY SYSTEM 24 |
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131 | 131 | | OF MARYLAND TO DETERMINE WHETHER BIOGAS MAY SUPPORT THE STATE’S 25 |
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132 | 132 | | CLIMATE COMMITMENTS UNDER § 2–1204.2 OF THE ENVIRONMENT ARTICLE; AND 26 |
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133 | 133 | | |
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134 | 134 | | (II) ANALYZE THE ENVIRONM ENTAL AND ECONOMIC COSTS AND 27 |
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135 | 135 | | BENEFITS OF EXPAND ING THE USE OF BIOGAS IN THE TRANSPORTATIO N AND 28 |
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136 | 136 | | BUILDING SECTORS IN THE STATE. 29 |
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137 | 137 | | 4 HOUSE BILL 1417 |
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138 | 138 | | |
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139 | 139 | | |
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140 | 140 | | (2) (I) THE UNIVERSITY SYSTEM OF MARYLAND SHALL 1 |
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141 | 141 | | COMPLETE A CARBON LIFECYCLE ANA LYSIS OF BIOGAS AND PROVIDE THE RESU LTS 2 |
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142 | 142 | | TO THE DEPARTMENT AND THE COMMITTEE. 3 |
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143 | 143 | | |
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144 | 144 | | (II) THE POWER PLANT RESEARCH PROGRAM ESTABLISHED 4 |
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145 | 145 | | UNDER TITLE 3, SUBTITLE 3 OF THE NATURAL RESOURCES ARTICLE SHALL 5 |
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146 | 146 | | REIMBURSE THE UNIVERSITY SYSTEM OF MARYLAND FOR COSTS IN CURRED TO 6 |
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147 | 147 | | COMPLETE THE CARBON LIFECYCLE ANALYSIS R EQUIRED UNDER SUBPAR AGRAPH 7 |
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148 | 148 | | (I) OF THIS PARAGRAPH . 8 |
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149 | 149 | | |
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150 | 150 | | (E) THE REQUIREMENTS OF T HIS SECTION APPLY ONLY IF: 9 |
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151 | 151 | | |
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152 | 152 | | (1) BIOGAS IS COMPETITIVE LY PRICED; 10 |
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153 | 153 | | |
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154 | 154 | | (2) THE QUALITY OF THE BIOGAS IS SATISFACTORY FOR THE 11 |
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155 | 155 | | INTENDED PURPOSE ; AND 12 |
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156 | 156 | | |
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157 | 157 | | (3) BIOGAS IS READILY AVA ILABLE. 13 |
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158 | 158 | | |
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159 | 159 | | (F) THE PROGRAM SHALL TERMINA TE ON DECEMBER 31, 2028. 14 |
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160 | 160 | | |
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161 | 161 | | SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect 15 |
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162 | 162 | | October 1, 2025. It shall remain effective for a period of 3 years and 9 months and, at the 16 |
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163 | 163 | | end of June 30, 2029, this Act, with no further action required by the General Assembly, 17 |
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164 | 164 | | shall be abrogated and of no further force and effect. 18 |
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165 | 165 | | |
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