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. *hb0155* HOUSE BILL 155 C9 5lr0160 (PRE–FILED) CF SB 247 By: Chair, Environment and Transportation Committee (By Request – Departmental – Housing and Community Development) Requested: October 16, 2024 Introduced and read first time: January 8, 2025 Assigned to: Environment and Transportation Committee Report: Favorable with amendments House action: Adopted Read second time: March 1, 2025 CHAPTER ______ AN ACT concerning 1 Housing and Community Development – Greenhouse Gas Emissions Reductions 2 – Issuance of Loans and Achievement of Targets 3 FOR the purpose of authorizing the Department of Housing and Community Development 4 to issue loans, in addition to grants, for certain purposes relating to reducing direct 5 greenhouse gas emissions from certain multifamily residential buildings; expanding 6 the sources of savings that the Department may include procure and provide when 7 calculating the achievement of certain greenhouse gas emissions reduction targets; 8 and generally relating to greenhouse gas emissions reductions. 9 BY repealing and reenacting, with amendments, 10 Article – Housing and Community Development 11 Section 4–211(d) 12 Annotated Code of Maryland 13 (2019 Replacement Volume and 2024 Supplement) 14 BY repealing and reenacting, without amendments, 15 Article – Public Utilities 16 Section 7–224(a) and (b) 17 Annotated Code of Maryland 18 (2020 Replacement Volume and 2024 Supplement) 19 BY repealing and reenacting, with amendments, 20 2 HOUSE BILL 155 Article – Public Utilities 1 Section 7–224(c) 2 Annotated Code of Maryland 3 (2020 Replacement Volume and 2024 Supplement) 4 SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 5 That the Laws of Maryland read as follows: 6 Article – Housing and Community Development 7 4–211. 8 (d) (1) (i) In this subsection the following words have the meanings 9 indicated. 10 (ii) “Covered building” has the meaning stated in § 2–1601 of the 11 Environment Article. 12 (iii) “Energy conservation project” means a project that qualifies 13 under § 4–218 of this subtitle. 14 (2) For the purpose of reducing direct greenhouse gas emissions from 15 multifamily residential buildings in accordance with the standards adopted under § 2–1602 16 of the Environment Article, the Administration shall develop and implement a program to 17 provide grants AND LOANS for energy conservation projects and projects to install 18 renewable energy generating systems in covered buildings that house primarily low– to 19 moderate–income households. 20 (3) Grants AND LOANS provided under this subsection may not be used for 21 a project to install new equipment that uses fossil fuels or improve the efficiency of existing 22 equipment that uses fossil fuels. 23 (4) In each of fiscal years 2024 through 2026, the Governor shall include in 24 the annual budget bill an appropriation of $5,000,000 to the Department for the purpose of 25 providing grants AND LOANS under this subsection. 26 (5) On or before December 1, 2023, and each December 1 thereafter, the 27 Administration shall report to the Governor and, in accordance with § 2–1257 of the State 28 Government Article, the General Assembly on the projects funded under this subsection. 29 Article – Public Utilities 30 7–224. 31 (a) (1) Beginning January 1, 2025, and on or before January 1 every 3 years, 32 starting in 2027, the Department shall procure or provide to low–income individuals energy 33 efficiency and conservation programs and services, demand response programs and 34 HOUSE BILL 155 3 services, and beneficial electrification programs and services that achieve the greenhouse 1 gas emissions reduction targets established for the Department under paragraph (2) of this 2 subsection. 3 (2) For the period 2025–2033, the programs and services required under 4 paragraph (1) of this subsection shall be on a trajectory to achieve greenhouse gas 5 reductions after 2027 of at least 0.9% of the baseline determined under subsection (b) of 6 this section. 7 (3) (i) When establishing greenhouse gas emissions reduction targets 8 under this subsection, the Commission shall measure the greenhouse gas emissions from 9 electricity using current data and projections from the Department of the Environment. 10 (ii) The greenhouse gas emissions reduction targets established 11 under this subsection shall be measured in metric tons. 12 (4) The greenhouse gas reductions achieved to meet the targets established 13 under paragraph (2) of this subsection shall count toward the achievement of the 14 greenhouse gas reduction target established under § 7–223(b) of this subtitle. 15 (5) The target greenhouse gas savings shall be achieved based on the 16 3–year average of the Department’s plan submitted in accordance with subsection (d) of 17 this section. 18 (6) For 2025 and 2026: 19 (i) the Commission shall, after making appropriate findings, 20 determine whether the Department’s existing 2024–2026 plan must be modified to comply 21 with: 22 1. the targets established in this subsection; and 23 2. § 7–225(d) of this subtitle; and 24 (ii) the Department: 25 1. shall provide information as required by the Commission 26 to assist in making the determination in item (i) of this paragraph; and 27 2. is only required to file new plans in accordance with 28 subsection (d) of this section and § 7–225 of this subtitle if directed by the Commission. 29 (b) As a baseline for determining greenhouse gas emissions reduction targets 30 under this section, the Commission shall use the greenhouse gas emissions resulting from 31 the direct consumption of gas and electricity by low–income residential households in 2016, 32 as determined by the Department of the Environment. 33 4 HOUSE BILL 155 (c) [(1) The] WHEN CALCULATING THE ACHIEVEMENT OF GREEN HOUSE 1 GAS EMISSIONS REDUCT ION TARGETS UNDER TH IS SECTION, THE Department may 2 [procure or provide] INCLUDE savings that are achieved through [funding sources that 3 meet the standards of program funding through utility rates or the U.S. Department of 4 Energy] ALL FUNDING SOURCES , TO THE EXTENT THAT T HE SAVINGS FROM THOS E 5 FUNDING SOURCES ARE ACHIEVED: 6 (1) IN A MANNER CONSI STENT WITH REQUIREME NTS OF THE U.S. 7 DEPARTMENT OF ENERGY; OR 8 (2) IN A MANNER OTHERWIS E CONSISTENT WITH TH E ENERGY 9 SAVINGS REQUIREMENTS APPLICABLE TO THOSE FUNDING SOURCES . 10 [(2) The Department may use the savings achieved through all funding 11 sources toward calculating the targeted greenhouse gas reductions if the funding sources 12 meet the standards of programs funded through: 13 (i) a surcharge under § 7–222 of this subtitle; or 14 (ii) the U.S. Department of Energy.] 15 SECTION 2. AND BE IT FURTHER EN ACTED, That this Act shall take effect July 16 1, 2025. 17 Approved: ________________________________________________________________________________ Governor. ________________________________________________________________________________ Speaker of the House of Delegates. ________________________________________________________________________________ President of the Senate.