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.
*sb0149*
SENATE BILL 149
M3, M1, C2 5lr1522
SB 958/24 – EEE & FIN (PRE–FILED) CF HB 128
By: Senator Hester
Requested: October 30, 2024
Introduced and read first time: January 8, 2025
Assigned to: Education, Energy, and the Environment and Finance
Committee Report: Favorable with amendments
Senate action: Adopted with floor amendments
Read second time: February 27, 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
University of Maryland Center for Global Sustainability Comptroller, in 14
coordination with the Department of the Environment and the Department of 15
Commerce, to conduct a study to assess the total cost of greenhouse gas emissions in 16
the State and report certain findings on or before a certain date; requiring the 17
Department of the Environment and the Comptroller to report to certain committees 18
on or before a certain dates date on the total assessed cost of greenhouse gas 19
emissions in the State based on the findings of a certain study; authorizing the 20
Comptroller to hire a consultant to conduct the study; requiring the reports report to 21
include certain information and calculations; and generally relating to the Climate 22
Change Adaptation and Mitigation Payment Program greenhouse gas emissions in 23
the State. 24 2 SENATE BILL 149
BY repealing and reenacting, without amendments, 1
Article – Environment 2
Section 2–1504(a) 3
Annotated Code of Maryland 4
(2013 Replacement Volume and 2024 Supplement) 5
BY repealing and reenacting, with amendments, 6
Article – Environment 7
Section 2–1504(e) 8
Annotated Code of Maryland 9
(2013 Replacement Volume and 2024 Supplement) 10
BY adding to 11
Article – Environment 12
Section 2–1701 through 2–1708 to be under the new subtitle “Subtitle 17. Climate 13
Change Adaptation and Mitigation Payment Program” 14
Annotated Code of Maryland 15
(2013 Replacement Volume and 2024 Supplement) 16
BY repealing and reenacting, without amendments, 17
Article – Natural Resources 18
Section 5–222(a) and (b) and 8–2B–03(a) 19
Annotated Code of Maryland 20
(2023 Replacement Volume and 2024 Supplement) 21
BY repealing and reenacting, with amendments, 22
Article – Natural Resources 23
Section 5–222(f) and 8–2B–03(e) 24
Annotated Code of Maryland 25
(2023 Replacement Volume and 2024 Supplement) 26
BY repealing and reenacting, without amendments, 27
Article – Public Safety 28
Section 14–110.4(b) and 14–110.5(b) 29
Annotated Code of Maryland 30
(2022 Replacement Volume and 2024 Supplement) 31
BY repealing and reenacting, with amendments, 32
Article – Public Safety 33
Section 14–110.4(h) and 14–110.5(f) 34
Annotated Code of Maryland 35
(2022 Replacement Volume and 2024 Supplement) 36
BY repealing and reenacting, without amendments, 37
Article – State Government 38
Section 9–2012(b) and (i)(1), 9–2015(b), and 9–20B–05(a) 39 SENATE BILL 149 3
Annotated Code of Maryland 1
(2021 Replacement Volume and 2024 Supplement) 2
BY repealing and reenacting, with amendments, 3
Article – State Government 4
Section 9–2012(i)(4), 9–2015(f), and 9–20B–05(e) 5
Annotated Code of Maryland 6
(2021 Replacement Volume and 2024 Supplement) 7
BY adding to 8
Article – State Government 9
Section 9–20B–05(i–2) 10
Annotated Code of Maryland 11
(2021 Replacement Volume and 2024 Supplement) 12
BY repealing and reenacting, without amendments, 13
Article – Transportation 14
Section 7–1202(a) and 7–1203(a) 15
Annotated Code of Maryland 16
(2020 Replacement Volume and 2024 Supplement) 17
BY repealing and reenacting, with amendments, 18
Article – Transportation 19
Section 7–1203(c) 20
Annotated Code of Maryland 21
(2020 Replacement Volume and 2024 Supplement) 22
Preamble 23
WHEREAS, Climate change, resulting primarily from the combustion of fossil fuels, 24
is an immediate, grave threat to the State’s communities, environment, and economy; and 25
WHEREAS, In addition to mitigating the further buildup of greenhouse gases, the 26
State must take action to adapt to certain consequences of climate change that are 27
irreversible, including rising sea levels, increasing temperatures, extreme weather events, 28
flooding, heat waves, toxic algae blooms, and other threats; and 29
WHEREAS, Meeting the challenge of adapting to and mitigating the effects of 30
climate change will require a shared commitment of purpose and huge investments in new 31
or upgraded infrastructure; and 32
WHEREAS, The State has previously adopted programs, such as the Cigarette 33
Restitution Fund Program, to require industries that have profited by harming the public 34
welfare to shoulder their share of the burden in redressing that harm; and 35
WHEREAS, Based on decades of research, it is now possible to determine with great 36
accuracy the share of greenhouse gases released into the atmosphere by specific fossil fuel 37 4 SENATE BILL 149
companies over the last 70 years or more, making it possible to assign liability and require 1
compensation from companies commensurate with their emissions during a given time 2
period; now, therefore, 3
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 4
That the Laws of Maryland read as follows: 5
Article – Environment 6
2–1504. 7
(a) There is a Zero–Emission Vehicle School Bus Transition Fund. 8
(e) The Fund consists of: 9
(1) Money appropriated in the State budget to the Fund; 10
(2) Interest earnings of the Fund; 11
(3) Donations; 12
(4) Money derived from legal settlements earmarked for the purpose of 13
transitioning to school buses that are zero–emission vehicles; [and] 14
(5) MONEY RECEIVED FROM T HE CLIMATE CHANGE ADAPTATION 15
AND MITIGATION FUND IN ACCORDANCE WI TH § 2–1705 OF THIS TITLE; AND 16
(6) Any other money from any other source accepted for the benefit of the 17
Fund. 18
SUBTITLE 17. CLIMATE CHANGE ADAPTATION AND MITIGATION PAYMENT 19
PROGRAM. 20
2–1701. 21
(A) IN THIS SUBTITLE THE FOLLOWING WORDS HAVE T HE MEANINGS 22
INDICATED. 23
(B) (1) “CLIMATE CHANGE ADAPTI VE OR MITIGATION INF RASTRUCTURE 24
PROJECT” MEANS AN INFRASTRUCT URE PROJECT DESIGNED TO AVOID, MODERATE, 25
OR REPAIR DAMAGE CAU SED BY CLIMATE CHANG E. 26
(2) “CLIMATE CHANGE ADAPTI VE OR MITIGATION INFRASTRU CTURE 27
PROJECT” INCLUDES PROJECTS TO : 28
SENATE BILL 149 5
(I) CONSTRUCT SEAWALLS OR OTHER COASTAL DEFENS E 1
STRUCTURES ; 2
(II) UPGRADE STORMWATER OR SEWER SYSTEMS ; 3
(III) MAKE DEFENSIVE UPGRAD ES TO ROADS , BRIDGES, RAIL 4
INFRASTRUCTURE , OR OTHER TRANSIT SYSTEMS ; 5
(IV) PREPARE FOR AND RECOV ER FROM HURRICANES A ND 6
OTHER EXTREME WEATHE R EVENTS; 7
(V) RELOCATE, ELEVATE, OR RETROFIT WASTEWAT ER 8
TREATMENT PLANTS THA T ARE VULNERABLE TO FLOODING; 9
(VI) INSTALL HEAT PUMPS AN D OTHER CLEAN ENERGY 10
RETROFITS IN PUBLIC AND P RIVATE BUILDINGS , INCLUDING SCHOOL BUI LDINGS; 11
AND 12
(VII) RESPOND TO TOXIC ALGA E BLOOMS , THE LOSS OF 13
AGRICULTURAL TOPSOIL , AND OTHER CLIMATE –DRIVEN ECOSYSTEM THR EATS TO 14
FORESTS, FARMS, AND FISHERIES. 15
(C) “COAL” INCLUDES: 16
(1) BITUMINOUS COAL; 17
(2) ANTHRACITE COAL ; AND 18
(3) LIGNITE. 19
(D) “COMMUNITY DISPROPORTI ONATELY AFFECTED BY CLIMATE IMPACTS ” 20
MEANS A COMMUNITY ID ENTIFIED IN ACCORDAN CE WITH § 1–702 OF THIS ARTICLE. 21
(E) “CONTROLLED GROUP ” MEANS TWO OR MORE EN TITIES TREATED AS A 22
SINGLE EMPLOYER UNDE R: 23
(1) § 52(A) OR (B) OF THE INTERNAL REVENUE CODE, WITHOUT 24
REGARD TO § 1563(B)(2)(C) OF THE INTERNAL REVENUE CODE; OR 25
(2) § 414(M) OR (O) OF THE INTERNAL REVENUE CODE. 26
(F) “COST RECOVERY DEMAND ” MEANS A CHARGE ASSER TED AGAINST A 27
RESPONSIBLE PARTY FO R COST RECOVERY PAYM ENTS UNDER THE PROGRAM. 28
6 SENATE BILL 149
(G) “COVERED GREENHOUSE GA S EMISSIONS ” MEANS THE TOTAL 1
QUANTITY OF GREENHOU SE GASES RELEASED IN TO THE ATMOSPHERE DU RING THE 2
COVERED PERIOD , EXPRESSED IN METRIC TONS OF CARBON DIOXI DE EQUIVALENT, 3
RESULTING FROM THE U SE OF FOSSIL FUELS O R PETROLEUM PRODUCTS 4
EXTRACTED, PRODUCED, REFINED, OR SOLD BY AN ENTITY . 5
(H) “COVERED PERIOD ” MEANS MARCH 21, 1994, THROUGH DECEMBER 31, 6
2023, BOTH INCLUSIVE . 7
(I) (1) “CRUDE OIL” MEANS OIL OR PETROLEUM OF ANY KIN D AND IN 8
ANY FORM. 9
(2) “CRUDE OIL” INCLUDES: 10
(I) BITUMEN; 11
(II) OIL SANDS; 12
(III) HEAVY OIL; 13
(IV) CONVENTIONAL AND UNCO NVENTIONAL OIL ; 14
(V) SHALE OIL; 15
(VI) NATURAL GAS LIQUIDS ; 16
(VII) CONDENSATES ; AND 17
(VIII) RELATED FOSSIL FUELS . 18
(J) “ENTITY” MEANS ANY INDIVIDUAL , TRUSTEE, AGENT, PARTNERSHIP , 19
ASSOCIATION, CORPORATION , COMPANY, MUNICIPAL CORPORATIO N, POLITICAL 20
SUBDIVISION, OR OTHER PERSON , INCLUDING A FOREIGN NATION, THAT HOLDS OR 21
HELD AN OWNERSHIP IN TEREST IN A FOSSIL FU EL BUSINESS DURING T HE COVERED 22
PERIOD. 23
(K) “FOSSIL FUEL” MEANS COAL , PETROLEUM PRODUCTS , AND FUEL 24
GASES. 25
(L) “FOSSIL FUEL BUSINESS ” MEANS A BUSINESS ENG AGING IN THE 26
EXTRACTION OF FOSSIL FUELS OR THE REFININ G OF PETROLEUM PRODU CTS. 27
(M) “FUEL GAS” INCLUDES: 28
(1) METHANE; 29 SENATE BILL 149 7
(2) NATURAL GAS; 1
(3) LIQUEFIED NATURAL GAS ; AND 2
(4) MANUFACTURED FUEL GAS ES. 3
(N) “FUND” MEANS THE CLIMATE CHANGE ADAPTATION AND MITIGATION 4
FUND ESTABLISHED UNDE R § 2–1705 OF THIS SUBTITLE. 5
(O) “GREENHOUSE GAS ” HAS THE MEANING STAT ED IN § 2–1202 OF THIS 6
TITLE. 7
(P) “NOTICE OF COST RECOVE RY DEMAND ” MEANS A WRITTEN 8
COMMUNICATION INFORM ING A RESPONSIBLE PA RTY OF THE AMOUNT OF THE COST 9
RECOVERY DEMAND PAYA BLE TO THE DEPARTMENT UNDER THIS SUBTITLE. 10
(Q) “PETROLEUM PRODUCT ” MEANS ANY PRODUCT RE FINED OR 11
RE–REFINED FROM : 12
(1) SYNTHETIC OR CRUDE OI L; OR 13
(2) CRUDE OIL EXTRACTED F ROM NATURAL GAS LIQU IDS OR OTHER 14
SOURCES. 15
(R) “PROGRAM” MEANS THE CLIMATE CHANGE ADAPTATION AND 16
MITIGATION PAYMENT PROGRAM ESTABLISHED UNDER § 2–1703 OF THIS 17
SUBTITLE. 18
(S) (1) “QUALIFYING EXPENDITUR E” MEANS AN AUTHORIZED PAYMENT 19
FROM THE FUND IN SUPPORT OF A CLIMATE CHANGE ADAPT IVE OR MITIGATION 20
INFRASTRUCTURE PROJE CT. 21
(2) “QUALIFYING EXPENDITUR E” INCLUDES, TO THE EXTENT 22
AUTHORIZED IN DEPARTMENT REGULATION S, A PAYMENT TOWARD THE OPERATION 23
AND MAINTENANCE OF A CLIMATE CHANGE ADAPT IVE OR MITIGATION 24
INFRASTRUCTURE PROJE CT. 25
(T) (1) “RESPONSIBLE PARTY ” MEANS AN ENTITY , OR A SUCCESSOR IN 26
INTEREST TO AN ENTIT Y, THAT: 27
(I) DURING ANY PART OF TH E COVERED PERIOD , WAS 28
ENGAGED IN THE TRADE OR BUSINESS OF EXTRA CTING FOSSIL FUEL OR REFINING 29
CRUDE OIL; AND 30 8 SENATE BILL 149
(II) IS DETERMINED BY THE DEPARTMENT TO BE RESP ONSIBLE 1
FOR MORE THAN 1,000,000,000 TONS OF COVERED GREE NHOUSE GAS EMIS SIONS. 2
(2) “RESPONSIBLE PARTY ” DOES NOT INCLUDE ANY PERSON THAT 3
LACKS SUFFICIENT CON NECTION WITH THE STATE TO SATISFY THE NEXUS 4
REQUIREMENTS OF THE UNITED STATES CONSTITUTION. 5
(U) “TOTAL ASSESSED COST O F GREENHOUSE GAS EMI SSIONS” MEANS THE 6
TOTAL ASSESSED COST TO THE STATE AND ITS RESIDEN TS OF COVERED 7
GREENHOUSE GAS EMISS IONS DURING THE COVE RED PERIOD, AS DETERMINED BY 8
THE STATE TREASURER IN ACCORDAN CE WITH § 2–1704(C) OF THIS SUBTITLE. 9
2–1702. 10
(A) THIS SUBTITLE MAY NOT BE CONSTRUED TO : 11
(1) RELIEVE THE LIABILITY OF AN ENTITY FOR DAM AGES RESULTING 12
FROM CLIMATE CHANGE , AS PROVIDED BY LAW ; 13
(2) PREEMPT, DISPLACE, OR RESTRICT ANY RIGH T OR REMEDY OF A 14
PERSON OR UNIT OF STATE OR LOCAL GOVERN MENT UNDER THE LAW R ELATING TO 15
A PAST, PRESENT, OR FUTURE ALLEGATION OF : 16
(I) DECEPTION CONCERNING THE EFFECTS OF FOSSI L FUELS 17
ON CLIMATE CHANGE ; 18
(II) DAMAGE OR INJURY RESU LTING FROM THE ROLE OF FOSSIL 19
FUELS IN CONTRIBUTIN G TO CLIMATE CHANGE ; OR 20
(III) FAILURE TO AVOID DAMA GE OR INJURY RELATIN G TO 21
CLIMATE CHANGE , INCLUDING CLAIMS FOR : 22
1. NUISANCE; 23
2. TRESPASS; 24
3. DESIGN DEFECT; 25
4. NEGLIGENCE; 26
5. FAILURE TO WARN ; 27
6. DECEPTIVE OR UNFAIR P RACTICES; OR 28
SENATE BILL 149 9
7. INJUNCTIVE, DECLARATORY , MONETARY, OR OTHER 1
FORM OF RELIEF ; OR 2
(3) PREEMPT, SUPERSEDE, OR DISPLACE ANY STATE OR LOCAL LAW , 3
REGULATION , POLICY, OR PROGRAM THAT : 4
(I) LIMITS, SETS, OR ENFORCES STANDARD S FOR 5
GREENHOUSE GAS EMISS IONS; 6
(II) MONITORS, REPORTS, OR KEEPS RECORDS OF 7
GREENHOUSE GAS EMISS IONS; 8
(III) COLLECTS REVENUE THRO UGH FEES OR TAXES ; OR 9
(IV) CONDUCTS OR SUPPORTS INVESTIGATIONS . 10
(B) (1) EVERY CASE FILED IN A COURT OF THE STATE UNDER STATE LAW 11
MAY NOT BE EXPRESSLY OR IMPLIEDLY PREEMPT ED, DISPLACED, MOOTED, OR 12
DISMISSED ON ANY OTH ER PRUDENTI AL CONSIDERATION ARI SING FROM THIS 13
SUBTITLE. 14
(2) TO THE EXTENT THAT AN Y ASPECT OF EVERY CA SE FILED IN A 15
COURT OF THE STATE IS REVIEWED FOR THE APPLICATION OF T HIS SUBTITLE, THE 16
APPLICATION OF THIS SUBTITLE IS SEVERABL E IN EACH OF ITS APP LICATIONS TO 17
EVERY PERSON AND CIRCUM STANCE. 18
2–1703. 19
(A) THERE IS A CLIMATE CHANGE ADAPTATION AND MITIGATION 20
PAYMENT PROGRAM IN THE DEPARTMENT . 21
(B) THE PURPOSE OF THE PROGRAM IS TO: 22
(1) SECURE COMPENSATORY P AYMENTS FROM FOSSIL FUEL 23
BUSINESSES BASED ON A STANDARD OF STRICT LIABILITY IN ORDER TO PROVIDE A 24
SOURCE OF REVENUE FO R STATE EFFORTS TO : 25
(I) ADAPT TO AND MITIGATE THE EFFECTS OF CLIMA TE 26
CHANGE, INCLUDING THROUGH TH E IMPLEMENTATION OF CLIMATE CHANGE 27
ADAPTIVE OR MITIGATI ON INFRASTRUCTURE PR OJECTS; AND 28
(II) ADDRESS THE HEALTH IM PACTS OF CLIMATE CHA NGE ON 29
VULNERABLE POPULATIO NS; 30
10 SENATE BILL 149
(2) DETERMINE THE PROPORT IONAL LIABILITY OF R ESPONSIBLE 1
PARTIES IN ACCORDANC E WITH § 2–1704 OF THIS SUBTITLE; 2
(3) IMPOSE COST RECOVERY DEMANDS ON RESPONSIB LE PARTIES 3
AND ISSUE NOTICES OF COST RECOV ERY DEMANDS ; 4
(4) ACCEPT AND COLLECT CO ST RECOVERY PAYMENTS FROM 5
RESPONSIBLE PARTIES ; 6
(5) IDENTIFY CLIMATE CHAN GE ADAPTIVE OR MITIG ATION 7
INFRASTRUCTURE PROJE CTS WITHIN THE STATE; 8
(6) DISBURSE FUNDS IN ACC ORDANCE WITH THIS SUBTITLE; AND 9
(7) ENSURE THAT AT LEAST 40% OF THE QUALIFIED EXP ENDITURES 10
FROM THE PROGRAM GO TO CLIMATE CHANGE ADAPTIVE OR M ITIGATION 11
INFRASTRUCTURE PROJE CTS THAT DIRECTLY BE NEFIT COMMUNITIES 12
DISPROPORTIONATELY A FFECTED BY CLIMATE I MPACTS. 13
2–1704. 14
(A) THE STATE MAY IMPOSE COST RECOVERY DEMANDS ON A RESPONSIBLE 15
PARTY IF, AT ANY TIME DURING T HE COVERED PERIOD , THE RESPONSIBLE PART Y: 16
(1) DID BUSINESS IN THE STATE; 17
(2) WAS REGISTERED TO DO BUSINESS IN THE STATE; 18
(3) WAS APPOINTED AS AN A GENT OF THE STATE; OR 19
(4) OTHERWISE HAD SUFFICI ENT CONTACTS WITH TH E STATE TO 20
GIVE THE STATE JURISDICTION OV ER THE RESPONSIBLE P ARTY IN ACCORDANCE 21
WITH STATE LAW. 22
(B) (1) A RESPONSIBLE PARTY IS STRICTLY LIABLE , WITHOUT REGARD 23
TO FAULT, FOR A SHARE OF THE C OSTS OF CLIMATE CHAN GE ADAPTIVE OR 24
MITIGATION INFRASTRU CTURE PROJECTS , INCLUDING OPERATING AND 25
MAINTENANCE COSTS , SUPPORTED BY THE FUND. 26
(2) FOR PURPOSES OF THIS SECTION, ENTITIES IN A CONTRO LLED 27
GROUP: 28
(I) SHALL BE TREATED BY T HE DEPARTMENT AS A SINGLE 29
ENTITY FOR THE PURPO SE OF IDENTIFYING RE SPONSIBLE PARTIES ; AND 30 SENATE BILL 149 11
(II) ARE JOINTLY AND SEVER ALLY LIABLE FOR PAYM ENT OF 1
ANY COST RECOVERY DE MAND OWED BY ANY ENT ITY IN THE CONTROLLE D GROUP. 2
(C) (1) WITH RESPECT TO EACH RESPONSIBLE PARTY , THE COST 3
RECOVERY DEMAND SHAL L BE EQUAL TO AN AMO UNT THAT BEARS THE S AME RATIO 4
TO THE TOTAL ASSESSE D COST OF GREENHOUSE GAS EMISSIONS AS THE 5
RESPONSIBLE PARTY ’S APPLICABLE SHARE O F COVERED GREENHOUSE GAS 6
EMISSIONS BEARS TO T HE AGGREGATE APPLICA BLE SHARES OF ALL RE SPONSIBLE 7
PARTIES’ COVERED GREENHOUSE G AS EMISSIONS. 8
(2) (I) ON OR BEFORE DECEMBER 1, 2026, THE STATE 9
TREASURER, IN CONSULTATION WITH THE COMPTROLLER , THE DEPARTMENT , AND 10
ANY OTHER ENTITY AS DETERMINED BY THE STATE TREASURER, SHALL REPORT TO 11
THE SENATE BUDGET AND TAXATION COMMITTEE, THE SENATE EDUCATION, 12
ENERGY, AND ENVIRONMENT COMMITTEE, THE SENATE JUDICIAL PROCEEDINGS 13
COMMITTEE, THE HOUSE APPROPRIATIONS COMMITTEE, THE HOUSE 14
ENVIRONMENT AND TRANSPORTATION COMMITTEE, AND THE HOUSE JUDICIARY 15
COMMITTEE, IN ACCORDANCE WITH § 2–1257 OF THE STATE GOVERNMENT 16
ARTICLE, ON THE TOTAL ASSESSE D COST OF GREENHOUSE GAS EMISSIONS. 17
(II) THE REPORT REQUIRED U NDER SUBPARAGRAPH (I) OF 18
THIS PARAGRAPH SHALL INCLUDE: 19
1. A SUMMARY OF THE VARIO US COST–DRIVING 20
EFFECTS OF COVERED GREENHOUSE G AS EMISSIONS ON THE STATE, INCLUDING 21
EFFECTS ON PUBLIC HE ALTH, NATURAL RESOURCES , BIODIVERSITY, AGRICULTURE , 22
ECONOMIC DEVELOPMENT , FLOOD PREPAREDNESS A ND SAFETY, AND HOUSING , 23
AND ANY OTHER EFFECT THAT THE STATE TREASURER, IN CONSULTATIO N WITH 24
THE COMPTROLLER AND THE DEPARTMENT , DETERMINES TO BE REL EVANT; 25
2. A CATEGORIZED CALCULAT ION OF THE COSTS THA T 26
HAVE BEEN INCURRED A ND COSTS THAT ARE PR OJECTED TO BE INCURR ED BY THE 27
STATE AND ITS RESIDEN TS FOR EACH EFFECT I DENTIFIED UNDER ITEM 1 OF THIS 28
SUBPARAGRAPH ; AND 29
3. A CATEGORIZED CALCULAT ION OF THE COSTS THA T 30
HAVE BEEN INCURRED A ND COSTS THAT ARE PR OJECTED TO BE INCURR ED BY THE 31
STATE AND ITS RESIDEN TS TO MITIGATE THE E FFECTS OF COVERED GR EENHOUSE 32
GAS EMISSIONS DURING THE COVERED PERIO D. 33
(D) (1) EXCEPT AS PROVIDED IN PARAGRAPH (2) OF THIS SUBSECTION , A 34
RESPONSIBLE PARTY ’S APPLICABLE SHARE O F GREENHOUSE GAS EMI SSIONS SHALL 35 12 SENATE BILL 149
BE THE AMOUNT BY WHI CH THE COVERED GREEN HOUSE GAS EMISSIONS 1
ATTRIBUTABLE TO THE RESPONSIBLE PARTY EX CEEDS 1,000,000,000 METRIC TONS. 2
(2) IF A RESPONSIBLE PART Y OWNS A MINORITY IN TEREST OF 10% OR 3
MORE IN ANOTHER ENTI TY, THE RESPONSIBLE PART Y’S APPLICABLE SHARE O F 4
GREENHOUSE GAS EMISS IONS SHALL BE CALCUL ATED AS THE APPLICAB LE SHARE 5
OF GREENHOUSE GAS EM ISSIONS FOR THE ENTITY IN WH ICH THE RESPONSIBLE 6
PARTY HOLDS A MINORI TY INTEREST, AS CALCULATED UNDER PARAGRAPH (1) OF 7
THIS SUBSECTION , MULTIPLIED BY THE PE RCENTAGE OF THE MINO RITY INTEREST 8
HELD BY THE RESPONSI BLE PARTY. 9
(3) IN DETERMINING THE AM OUNT OF GREENHO USE GAS EMISSIONS 10
ATTRIBUTABLE TO AN E NTITY, THE DEPARTMENT SHALL ASSU ME THAT: 11
(I) 942.5 METRIC TONS OF CARBO N DIOXIDE EQUIVALENT IS 12
RELEASED FOR EVERY 1,000,000 POUNDS OF COAL ATTRI BUTABLE TO THE ENTIT Y; 13
(II) 432,180 METRIC TONS OF CARBO N DIOXIDE EQUIVALENT IS 14
RELEASED FOR EVERY 1,000,000 BARRELS OF CRUDE OIL ATTRIBUTABLE TO THE 15
ENTITY; AND 16
(III) 53,440 METRIC TONS OF CARBO N DIOXIDE EQUIVALENT IS 17
RELEASED FOR EVERY 1,000,000 CUBIC FEET OF FUEL G ASES ATTRIBUTABLE TO 18
THE ENTITY. 19
(E) THE DEPARTMENT MAY ADJUST THE COST RECOVERY DE MAND 20
AMOUNT OF A RESPONSI BLE PARTY THAT REFIN ES PETROLEUM PRODUCT S OR THAT 21
IS A SUCCESSOR IN IN TEREST TO AN ENTITY THAT REFINES PETROLE UM PRODUCTS , 22
IF THE RESPONSIBLE P ARTY ESTABLISHES TO THE SATISFACTION OF THE 23
DEPARTMENT THAT : 24
(1) A PORTION OF THE COST RECOVERY DEMAND AMOU NT WAS 25
ATTRIBUTABLE TO THE REFINING OF CRUDE OI L EXTRACTED BY ANOTH ER ENTITY; 26
AND 27
(2) THE CRUDE OIL EXTRACT ED BY THE OTHER ENTI TY WAS 28
ACCOUNTED FOR WHEN T HE DEPARTMENT DETERMINED THE COST RECOVERY 29
DEMAND AMOUNT FOR TH E OTHER ENTITY OR A SUCCESSOR IN INTERES T OF THE 30
OTHER ENTITY . 31
(F) (1) EXCEPT AS PROVIDED IN PARAGRAPH (2) OF THIS SUBSECTION , A 32
RESPONSIBLE PARTY SH ALL PAY THE COST REC OVERY DEMAND AMOUNT IN FULL 33
ON OR BEFORE OCTOBER 1, 2027. 34
SENATE BILL 149 13
(2) (I) A RESPONSIBLE PARTY MA Y ELECT TO PAY THE C OST 1
RECOVERY DEMAND AMOU NT IN NINE ANNUAL IN STALLMENTS IN ACCORD ANCE 2
WITH THIS PARAGRAPH . 3
(II) THE FIRST INSTALLMENT SHALL BE PAID ON OR BEFORE 4
OCTOBER 1, 2027, AND SHALL BE EQUAL T O 20% OF THE TOTAL COST RECOVERY 5
DEMAND AMOUNT . 6
(III) EACH SUBSEQUENT INSTA LLMENT SHALL BE PAID ON OR 7
BEFORE SEPTEMBER 30 EACH SUBSEQUENT YEAR AND SHALL BE EQUAL T O 10% OF 8
THE TOTAL COST RECOV ERY DEMAND AMOUNT . 9
(IV) 1. THE UNPAID BALANCE OF ALL REMAINING 10
INSTALLMENTS SHALL BECOME DUE IMMEDIATELY IF : 11
A. THE RESPONSIBLE PARTY FAILS TO PAY ANY 12
INSTALLMENT IN A TIM ELY MANNER, AS SPECIFIED IN DEPARTMENT REGULATION S; 13
B. EXCEPT AS PROVIDED IN SUBSUBPARAGRAPH 2 OF 14
THIS SUBPARAGRAPH , THERE IS A LIQUIDATI ON OR SALE OF SUBSTANTIALLY ALL 15
THE ASSETS OF THE RE SPONSIBLE PARTY , INCLUDING IN A BANKR UPTCY 16
PROCEEDING ; OR 17
C. THE RESPONSIBLE PARTY CEASES TO DO BUSINES S. 18
2. IN THE CASE OF A SALE OF SUBSTANTIALLY ALL THE 19
ASSETS OF A RESPONSI BLE PARTY, THE REMAINING INSTALLMENTS SHALL N OT 20
BECOME DUE IMMEDIATE LY IF THE BUYER ENTE RS INTO AN AGREEMENT WITH THE 21
DEPARTMENT UNDER WHIC H THE BUYER ASSUMES LIABILITY FOR THE RE MAINING 22
INSTALLMENTS DUE UND ER THIS SUBPARAGRAPH IN THE SAME MANNER A S IF THE 23
BUYER WERE THE RESPONSIBLE PARTY . 24
(G) THE DEPARTMENT SHALL DEPO SIT COST RECOVERY PA YMENTS 25
COLLECTED UNDER THIS SECTION TO THE CLIMATE CHANGE ADAPTATION AND 26
MITIGATION FUND ESTABLISHED UNDE R § 2–1705 OF THIS SUBTITLE. 27
(H) A RESPONSIBLE PARTY MA Y REQUEST A HEARING UNDER TITLE 10, 28
SUBTITLE 2 OF THE STATE GOVERNMENT ARTICLE (ADMINISTRATIVE PROCEDURE 29
ACT – CONTESTED CASES) TO CONTEST A COST RE COVERY DEMAND MADE B Y THE 30
DEPARTMENT UNDER THIS SECTION. 31
(I) (1) THE REMEDIES PROVIDED IN THIS SECTION ARE IN ADDITION TO 32
ANY OTHER REMEDY PROVIDED BY LAW. 33
14 SENATE BILL 149
(2) THIS SECTION MAY NOT BE CONSTRUED TO PREV ENT A PERSON 1
FROM PURSUING A CIVI L ACTION OR ANY OTHE R REMEDY PROVIDED BY LAW. 2
2–1705. 3
(A) THERE IS A CLIMATE CHANGE ADAPTATION AND MITIGATION FUND. 4
(B) THE PURPOSE OF THE FUND IS TO PROVIDE FUNDIN G FOR STATE 5
EFFORTS TO ADAPT TO AND MITIGATE THE EFF ECTS OF CLIMATE CHAN GE. 6
(C) THE DEPARTMENT SHALL ADMI NISTER THE FUND. 7
(D) (1) THE FUND IS A SPECIAL , NONLAPSING FUND THAT IS NOT 8
SUBJECT TO § 7–302 OF THE STATE FINANCE AND PROCUREMENT ARTICLE. 9
(2) THE STATE TREASURER SHALL HOLD THE FUND SEPARATELY , 10
AND THE COMPTROLLER SHALL ACC OUNT FOR THE FUND. 11
(E) THE FUND CONSISTS OF : 12
(1) COST RECOVERY PAYMENT S DISTRIBUTED TO THE FUND UNDER 13
§ 2–1704 OF THIS SUBTITLE; 14
(2) MONEY APPROPRIATED IN THE STATE BUDGET TO THE FUND; 15
AND 16
(3) ANY OTHER MONEY FROM ANY OTHER SOURCE ACC EPTED FOR 17
THE BENEFIT OF THE FUND. 18
(F) THE FUND MAY BE USED ONLY : 19
(1) TO PAY: 20
(I) QUALIFIED EXPENDITURE S FOR CLIMATE CHANGE 21
ADAPTIVE OR MITIGATI ON INFRASTRUCTURE PROJE CTS IDENTIFIED BY TH E 22
DEPARTMENT IN ACCORDA NCE WITH REGULATIONS ADOPTED UNDER § 2–1707 OF 23
THIS SUBTITLE; AND 24
(II) REASONABLE ADMINISTRA TIVE COSTS OF THE PROGRAM; 25
(2) TO PROVIDE GRANTS TO LOCAL JURISDICTIONS IN ACCORDANCE 26
WITH § 2–1706 OF THIS SUBTITLE; 27
(3) FOR THE DEPARTMENT ’S COMPREHENSIVE FLOOD 28
MANAGEMENT GRANT PROGRAM UNDER § 5–803 OF THIS ARTICLE TO I MPLEMENT : 29 SENATE BILL 149 15
(I) CAPITAL PROJECTS UNDE RTAKEN AS PART OF 1
COMPREHENSIVE FLOOD MANAGEMENT PLANS ; AND 2
(II) INFRASTRUCTURE R EPAIRS, WATERSHED RESTORATIO N, 3
AND EMERGENCY PROTEC TION WORK ASSOCIATED WITH FLOOD EVENTS ; AND 4
(4) TO SUPPORT THE FOLLOW ING: 5
(I) THE STATE DISASTER RECOVERY FUND UNDER § 6
14–110.5 OF THE PUBLIC SAFETY ARTICLE FOR DISASTER RECOVERY ASSISTANCE ; 7
(II) THE MARYLAND DEPARTMENT OF HEALTH’S OFFICE OF 8
MINORITY HEALTH AND HEALTH DISPARITIES IN ADDRES SING THE HEALTH 9
IMPACTS OF CLIMATE C HANGE ON MINORITY AD ULTS, CHILDREN, AND INFANTS; 10
(III) THE MARYLAND DEPARTMENT OF HEALTH’S COMMUNITY 11
HEALTH RESOURCES COMMISSION FOR THE HEALTH EQUITY RESOURCE 12
COMMUNITIES PROGRAM ; 13
(IV) THE MARYLAND DEPARTMENT OF HEALTH’S MEDICAID 14
ADMINISTRATION TO USE FOR THE STATE MEDICAID PROGRAM ; 15
(V) THE DEPARTMENT OF NATURAL RESOURCES TO 16
INCORPORATE CLIMATE AND EQUITY PROVI SIONS IN LOCAL CRITICAL AREA 17
PROGRAM GRANTS ; 18
(VI) THE GREAT MARYLAND OUTDOORS FUND UNDER § 5–222 19
OF THE NATURAL RESOURCES ARTICLE TO SUPPORT CL IMATE EDUCATION AND 20
ADAPTATION ON PARK L ANDS; 21
(VII) THE WHOLE WATERSHED FUND UNDER § 8–2B–03 OF THE 22
NATURAL RESOURCES ARTICLE TO SUPPORT WA TERSHED AND COMMUNIT Y 23
RESILIENCE; 24
(VIII) THE DEPARTMENT OF NATURAL RESOURCES IN MANAGING 25
FLOODING THROUGH THE IMPLEMENTATION OF ST REAM RESTORATION AND 26
NATURAL FILTRATION P ROJECTS; 27
(IX) THE DEPARTMENT OF NATURAL RESOURCES IN 28
PROVIDING PLANNING G RANTS TO LOCAL GOVER NMENTS TO PREPARE FO R 29
EXTREME FLOODING ; 30
16 SENATE BILL 149
(X) THE MARYLAND STRATEGIC ENERGY INVESTMENT FUND 1
UNDER § 9–20B–05 OF THE STATE GOVERNMENT ARTICLE FOR: 2
1. ENERGY EFFICIENCY PRO GRAMS BENEFITING 3
LOW–INCOME AND MODERATE –INCOME HOUSEHOLDS ; AND 4
2. OTHER CLEAN ENERGY IN VESTMENTS; 5
(XI) THE RESILIENCY HUB GRANT PROGRAM FUND UNDER § 6
9–2015 OF THE STATE GOVERNMENT ARTICLE IN DEVELOPING RESILIENCY HUBS 7
SERVING LOW–INCOME AND MODERATE –INCOME HOUSEHOLDS ; 8
(XII) THE MARYLAND DEPARTMENT OF EMERGENCY 9
MANAGEMENT IN SUPPLEM ENTING PRE –DISASTER MITIGATION FUNDING 10
PROVIDED UNDER THE F EDERAL BUILDING RESILIENT INFRASTRUCTURE AND 11
COMMUNITIES (BRIC) GRANT PROGRAM ; 12
(XIII) THE RESILIENT MARYLAND REVOLVING LOAN FUND 13
UNDER § 14–110.4 OF THE PUBLIC SAFETY ARTICLE; 14
(XIV) THE CLIMATE CATALYTIC CAPITAL FUND UNDER § 10–855 15
OF THE ECONOMIC DEVELOPMENT ARTICLE; 16
(XV) THE DEPARTMENT OF HOUSING AND COMMUNITY 17
DEVELOPMENT IN PROVID ING GRANTS AND LOANS UNDER THE MARYLAND 18
WHOLEHOME PROGRAM; 19
(XVI) THE MARYLAND ENERGY ADMINISTRATION IN PRO VIDING 20
FINANCIAL ASSISTANCE TO LOW–INCOME AND MODERATE –INCOME HOUSEHOLDS 21
TO TRANSITION THEIR HOMES OFF FOSSIL FUE LS; 22
(XVII) THE ENERGY STORAGE SYSTEM GRANT FUND UNDER § 23
9–2012 OF THE STATE GOVERNMENT ARTICLE; 24
(XVIII) THE DEPARTMENT OF COMMERCE IN ATTRACTIN G 25
CLEANTECH AND RENEWA BLE ENERGY BUSINESSE S TO THE STATE; 26
(XIX) THE DEPARTMENT ’S DAM SAFETY PROGRAM UNDER TITLE 27
5, SUBTITLE 5 OF THIS ARTICLE; 28
(XX) THE DEPARTMENT IN SUPPLEMENTING FUNDIN G FOR THE 29
COMMISSION ON ENVIRONMENTAL JUSTICE AND SUSTAINABLE COMMUNITIES 30
UNDER TITLE 1, SUBTITLE 7 OF THIS ARTICLE; 31
SENATE BILL 149 17
(XXI) THE DEPARTMENT OF TRANSPORTATION FOR TH E 1
STATEWIDE TRANSIT INNOVATION GRANT PROGRAM; 2
(XXII) THE ZERO–EMISSION VEHICLE SCHOOL BUS TRANSITION 3
FUND UNDER § 2–1504 OF THIS TITLE; 4
(XXIII) THE MARYLAND ENERGY ADMINISTRATION FOR TH E 5
MEDIUM–DUTY AND HEAVY–DUTY ZERO–EMISSION VEHICLE GRANT PROGRAM 6
UNDER § 9–2011 OF THE STATE GOVERNMENT ARTICLE; 7
(XXIV) THE MARYLAND ENERGY ADMINISTRATION FOR TH E 8
ELECTRIC VEHICLE RECHARGING EQUIPMENT REBATE PROGRAM UNDER § 9–2009 9
OF THE STATE GOVERNMENT ARTICLE; 10
(XXV) THE DEPARTMENT OF TRANSPORTATION FOR TH E KIM 11
LAMPHIER BIKEWAYS NETWORK PROGRAM UNDER § 2–608 OF THE 12
TRANSPORTAT ION ARTICLE; 13
(XXVI) THE TRANSIT–ORIENTED DEVELOPMENT CAPITAL 14
GRANT AND REVOLVING LOAN FUND UNDER TITLE 7, SUBTITLE 12 OF THE 15
TRANSPORTATION ARTICLE; 16
(XXVII) THE DEPARTMENT IN HIRING ADDITIONAL STAFF IN 17
THE DEPARTMENT TO WORK ON INITIATIVES TO PROTECT OVERBURDENED AND 18
UNDERSERVED COMMUNIT IES, AS DEFINED IN § 1–701 OF THIS ARTICLE, FROM THE 19
EFFECTS OF CLIMATE C HANGE THROUGH IMPROV EMENTS TO PERMITTING 20
PROCESSES, COMMUNITY OUTREACH E FFORTS, AND OTHER INITIATIVE S; 21
(XXVIII) THE DEPARTMENT IN HIRI NG ADDITIONAL STAFF TO 22
SUPPORT THE DEPARTMENT ’S CLIMATE CHANGE PROGRAM; 23
(XXIX) THE PUBLIC SERVICE COMMISSION IN HIRING 24
ADDITIONAL STAFF TO SUPPORT IMPLEMENTATI ON OF THE EMPOWER MARYLAND 25
PROGRAM; AND 26
(XXX) THE MARYLAND DEPARTMENT OF EMERGENCY 27
MANAGEMENT IN HIRING ENGIN EERING STAFF FOR THE OFFICE OF RESILIENCY TO 28
WORK ON FLOOD –RELATED ISSUES . 29
(G) (1) THE STATE TREASURER SHALL INVES T THE MONEY OF THE FUND 30
IN THE SAME MANNER A S OTHER STATE MONEY MAY BE IN VESTED. 31
(2) ANY INTEREST EARNINGS OF THE FUND SHALL BE CREDITED TO 32
THE GENERAL FUND OF THE STATE. 33 18 SENATE BILL 149
(H) EXPENDITURES FROM THE FUND MAY BE MADE ONLY IN ACCORDANCE 1
WITH THE STATE BUDGET . 2
(I) FOR EACH FISCAL YEAR , AT LEAST 40% OF FUNDING PROVIDED UNDER 3
THE FUND SHALL BE USED FO R PROJECTS THAT DIRECTLY BENEFIT COM MUNITIES 4
DISPROPORTIONATELY A FFECTED BY CLIMATE I MPACTS. 5
2–1706. 6
(A) THE DEPARTMENT SHALL ESTA BLISH AND ADMINISTER A GRANT 7
PROGRAM FOR THE DIST RIBUTION OF FUNDS RE CEIVED UNDER § 2–1705(F)(2) OF 8
THIS SUBTITLE TO LOC AL JURISDICTIONS FO R THE PURPOSE OF ASS ISTING LOCAL 9
EFFORTS TO ADAPT TO AND MITIGATE THE EFF ECTS OF CLIMATE CHAN GE. 10
(B) THE DEPARTMENT SHALL ESTA BLISH: 11
(1) APPLICATION PROCEDURE S FOR THE GRANT PROG RAM; 12
(2) CRITERIA FOR PRIORITI ZING APPLICATIONS UN DER THE GRANT 13
PROGRAM; 14
(3) PROCEDURES FOR AWARDI NG GRANTS UNDER THE GRANT 15
PROGRAM; AND 16
(4) ANY OTHER PROCEDURES OR CRITERIA NECESSAR Y TO CARRY 17
OUT THIS SECTION . 18
2–1707. 19
(A) ON OR BEFORE OCTOBER 1, 2026, THE DEPARTMENT SHALL ADOP T 20
REGULATIONS NECESSAR Y TO CARRY OUT THE PROGRAM. 21
(B) THE REGULATIONS SHALL INCLUDE: 22
(1) METHODOLOGIES USING T HE BEST AVAILABLE SC IENCE TO 23
IDENTIFY RESPONSIBLE PARTIES AND DETERMIN E RESPONSIBLE PARTIE S’ 24
APPLICABLE SHARES OF GREENHOUSE GAS EMISS IONS; 25
(2) RULES RELATING TO : 26
(I) REGISTERING ENTITIES DETERMINED TO BE RES PONSIBLE 27
PARTIES UNDER THE PROGRAM; 28
SENATE BILL 149 19
(II) ISSUING NOTICES OF CO ST RECOVERY DEMANDS THAT 1
SHALL INCLUDE : 2
1. THE COST RECOVERY DEM AND AMOUNT ; 3
2. THE TIME AND MANNER I N WHICH COST RECOVER Y 4
PAYMENTS MUST BE MADE; 5
3. THE CONSEQUENCES OF N ONPAYMENT OR LATE 6
PAYMENT; AND 7
4. INFORMATION REGARDING THE RIGHT TO REQUEST A 8
CONTESTED CASE HEARI NG; AND 9
(III) ACCEPTING PAYMENTS FR OM, PURSUING COLLECTION 10
EFFORTS AGAINST , AND NEGOTIATING SETT LEMENT AGREEMENTS WITH 11
RESPONSIBLE PARTIES ; AND 12
(3) SUBJECT TO SUBSECTION (C) OF THIS SECTION , PROCEDURES 13
FOR IDENTIFYING CLIM ATE CHANGE ADAPTIVE OR MITIGATION INFRAS TRUCTURE 14
PROJECTS ELIGIBLE TO RECEIVE QUALIFYING E XPENDITURES FROM THE FUND. 15
(C) (1) THE DEPARTMENT MA Y BY REGULATION PROV IDE FOR CLIMATE 16
CHANGE ADAPTIVE OR M ITIGATION INFRASTRUC TURE PROJECTS TO BE IDENTIFIED 17
FOR FUNDING THROUGH : 18
(I) LEGISLATIVE BUDGET AP PROPRIATIONS ; 19
(II) THE ISSUANCE OF REQUE STS FOR PROPOSALS FR OM LOCAL 20
GOVERNMENTS , NONPROFIT ORGANIZATIONS , OR COMMUNITY GROUPS ; OR 21
(III) ANY OTHER METHOD THE DEPARTMENT DEEMS 22
APPROPRIATE . 23
(2) THE DEPARTMENT SHALL ENSU RE THAT AT LEAST 40% OF THE 24
QUALIFIED EXPENDITUR ES FROM THE PROGRAM GO TO CLIMATE CHANGE 25
ADAPTIVE OR MITIGATI ON INFRASTRUCTU RE PROJECTS THAT DIR ECTLY BENEFIT 26
COMMUNITIES DISPROPO RTIONATELY AFFECTED BY CLIMATE IMPACTS . 27
2–1708. 28
(A) ON OR BEFORE OCTOBER 1, 2028, AND EACH OCTOBER 1 THEREAFTER , 29
THE DEPARTMENT SHALL REPO RT TO THE GOVERNOR AND , IN ACCORDANCE WITH 30
§ 2–1257 OF THE STATE GOVERNMENT ARTICLE, THE GENERAL ASSEMBLY ON: 31 20 SENATE BILL 149
(1) THE COST RECOVERY PAY MENTS RECEIVED AND T HE FUNDING 1
DISBURSED FROM THE FUND DURING THE PRECE DING FISCAL YEAR ; 2
(2) THE STATUS OF CLIMATE CHANGE ADAPTIVE OR M ITIGATION 3
INFRASTRUCTURE PROJE CTS FUNDED UNDER THE PROGRAM; 4
(3) THE PERCENTAGE OF QUA LIFIED EXPENDITURES MADE DURING 5
THE PRECEDING FISCAL YEAR THAT FUNDED CLI MATE CHANGE ADAPTIVE OR 6
MITIGATION INFRASTRU CTURE PROJECTS THAT DIRECTLY BENEFITED 7
COMMUNITIES DISPROPO RTIONATELY AFFECTED BY CLIMATE IMPACTS; AND 8
(4) THE EFFECTIVENESS OF THE PROGRAM IN ACHIEVING THE 9
PURPOSES OF THIS SUB TITLE. 10
(B) (1) THE LEGISLATIVE AUDITOR MAY CONDUCT P OST AUDITS OF A 11
FISCAL AND COMPLIANC E NATURE OF THE FUND AND OF THE APPRO PRIATIONS AND 12
EXPENDITURES MADE FO R THE PURPOSES OF THIS SUB TITLE. 13
(2) THE COST OF THE FISCA L PORTION OF AN AUDI T SHALL BE PAID 14
FROM THE FUND AS AN ADMINISTRA TIVE COST. 15
Article – Natural Resources 16
5–222. 17
(a) In this section, “Fund” means the Great Maryland Outdoors Fund. 18
(b) There is a Great Maryland Outdoors Fund in the Department. 19
(f) The Fund consists of: 20
(1) Money appropriated in the State budget to the Fund in accordance with 21
subsection (j) of this section; 22
(2) Interest earnings of the Fund; [and] 23
(3) MONEY RECEIVED FROM THE CLIMATE CHANGE ADAPTATION 24
AND MITIGATION FUND IN ACCORDANCE WI TH § 2–1705 OF THE ENVIRONMENT 25
ARTICLE; AND 26
(4) Any other money from any other source accepted for the benefit of the 27
Fund. 28
8–2B–03. 29 SENATE BILL 149 21
(a) There is a Whole Watershed Fund. 1
(e) The Fund consists of: 2
(1) Revenue distributed to the Fund from: 3
(i) The Chesapeake and Atlantic Coastal Bays 2010 Trust Fund 4
established under § 8–2A–02 of this title; 5
(ii) The Bay Restoration Fund established under § 9–1605.2 of the 6
Environment Article; 7
(iii) The Clean Water Commerce Account established under § 8
9–1605.4 of the Environment Article; 9
(iv) The Maryland Agricultural Land Preservation Fund established 10
under § 2–505 of the Agriculture Article; 11
(v) The cost–sharing program established under § 8–702 of the 12
Agriculture Article; and 13
(vi) The Waterway Improvement Fund established under § 8–707 of 14
this title; 15
(2) MONEY RECEIVED FROM T HE CLIMATE CHANGE ADAPTATION 16
AND MITIGATION FUND IN ACCORDANCE WI TH § 2–1705 OF THE ENVIRONMENT 17
ARTICLE; 18
(3) Money appropriated in the State budget to the Fund; 19
[(3)] (4) Interest earnings; and 20
[(4)] (5) Any other money from any other source accepted for the benefit 21
of the Fund. 22
Article – Public Safety 23
14–110.4. 24
(b) There is a Resilient Maryland Revolving Loan Fund. 25
(h) The Fund consists of: 26
(1) money appropriated in the State budget to the Fund; 27
22 SENATE BILL 149
(2) investment and interest earnings of the Fund; 1
(3) repayments of principal and interest from loans made from the Fund; 2
(4) money received from the Federal Emergency Management Agency; 3
[and] 4
(5) MONEY RECEIVED FROM THE CLIMATE CHANGE ADAPTATION 5
AND MITIGATION FUND IN ACCORDANCE WI TH § 2–1705 OF THE ENVIRONMENT 6
ARTICLE; AND 7
(6) any other money from any other source accepted for the benefit of the 8
Fund. 9
14–110.5. 10
(b) There is a State Disaster Recovery Fund. 11
(f) (1) The Governor may include in the annual budget bill an appropriation 12
to the Fund. 13
(2) The Fund [shall consist] CONSISTS of: 14
(i) money appropriated in the State budget to the Fund; 15
(ii) repayments of principal and interest from loans made from the 16
Fund; 17
(iii) reimbursements from the federal government or other legal 18
entities for disaster recovery assistance expenditures made from the Fund; 19
(iv) FUNDS RECEIVED FROM THE CLIMATE CHANGE 20
ADAPTATION AND MITIGATION FUND IN ACCORDANCE WI TH § 2–1705 OF THE 21
ENVIRONMENT ARTICLE; 22
(V) interest earnings of the Fund; and 23
[(v)] (VI) any other money from any other source accepted for the 24
benefit of the Fund. 25
Article – State Government 26
9–2012. 27
(b) There is an Energy Storage System Grant Program in the Administration. 28
SENATE BILL 149 23
(i) (1) There is an Energy Storage System Grant Fund. 1
(4) The Fund consists of: 2
(i) money appropriated in the State budget to the Fund; [and] 3
(ii) MONEY RECEIVED FROM THE CLIMATE CHANGE 4
ADAPTATION AND MITIGATION FUND IN ACCORDANCE WI TH § 2–1705 OF THE 5
ENVIRONMENT ARTICLE; AND 6
(III) any other money from any other source accepted for the benefit 7
of the Fund. 8
9–2015. 9
(b) There is a Resiliency Hub Grant Program Fund. 10
(f) The Fund consists of: 11
(1) grant funding obtained under subsection (k) of this section; 12
(2) funds distributed to the Fund under § 9–20B–05 of this title and §§ 13
2–110.1 and 13–201 of the Public Utilities Article; 14
(3) money appropriated in the State budget to the Fund; 15
(4) MONEY RECEIVED FROM THE CLIMATE CHANGE ADAPTATION 16
AND MITIGATION FUND IN ACCORDANCE WI TH § 2–1705 OF THE ENVIRONMENT 17
ARTICLE; 18
(5) interest earnings; and 19
[(5)] (6) any other money from any other source accepted for the benefit 20
of the Fund. 21
9–20B–05. 22
(a) There is a Maryland Strategic Energy Investment Fund. 23
(e) The Fund consists of: 24
(1) all of the proceeds from the sale of allowances under § 2–1002(g) of the 25
Environment Article; 26
(2) money appropriated in the State budget to the Program; 27
24 SENATE BILL 149
(3) repayments and prepayments of principal and interest on loans made 1
from the Fund; 2
(4) interest and investment earnings on the Fund; 3
(5) compliance fees paid under § 7–705 of the Public Utilities Article; 4
(6) money received from any public or private source for the benefit of the 5
Fund; 6
(7) money transferred from the Public Service Commission under § 7
7–207.2(c)(3) of the Public Utilities Article; [and] 8
(8) money distributed under § 2–614.1 of the Tax – General Article; AND 9
(9) MONEY RECEIVED FROM THE CLIMATE CHANGE ADAPTATION 10
AND MITIGATION FUND IN ACCORDANCE WI TH § 2–1705 OF THE ENVIRONMENT 11
ARTICLE. 12
(I–2) MONEY RECEIVED FROM T HE CLIMATE CHANGE ADAPTATION AND 13
MITIGATION FUND IN ACCORDANCE WI TH § 2–1705 OF THE ENVIRONMENT ARTICLE 14
SHALL BE ACCOUNTED F OR SEPARATELY WITHIN THE FUND AND MAY BE USED FOR: 15
(1) ENERGY EFFICIENCY PR OGRAMS BENEFITIN G LOW–INCOME AND 16
MODERATE–INCOME HOUSEHOLDS ; AND 17
(2) OTHER CLEAN ENERGY I NVESTMENTS . 18
Article – Transportation 19
7–1202. 20
(a) There is a Transit–Oriented Development Capital Grant and Revolving Loan 21
Fund. 22
7–1203. 23
(a) The purpose of the Fund is to promote the equitable and inclusive 24
development of transit–oriented developments throughout the State. 25
(c) (1) The Fund consists of: 26
(i) Money appropriated in the State budget to the Fund; 27
SENATE BILL 149 25
(ii) Money made available for qualifying uses by the Fund from other 1
governmental sources, including eligible federal funding and the Transportation Trust 2
Fund; 3
(iii) MONEY RECEIVED FROM T HE CLIMATE CHANGE 4
ADAPTATION AND MITIGATION FUND IN ACCORDANCE WI TH § 2–1705 OF THE 5
ENVIRONMENT ARTICLE; 6
(IV) Ground rents or land sale proceeds in accordance with § 7
10–306(c)(2) of the State Finance and Procurement Article; 8
[(iv)] (V) Payments of principal of and interest on loans made under 9
this title; 10
[(v)] (VI) Investment earnings of the Fund; and 11
[(vi)] (VII) Any other money from any other source, public or private, 12
accepted for the benefit of the Fund. 13
(2) Contributions to the Fund under paragraph [(1)(iii)] (1)(IV) of this 14
subsection shall: 15
(i) Be separately accounted for in the Fund; and 16
(ii) Be used only for the benefit of transit–oriented developments in 17
the same county where the real property subject to the ground rent or land sale is located. 18
(a) (1) The University of Maryland Center for Global Sustainability 19
Comptroller, in coordination with the Comptroller Department of Commerce, and the 20
Department of the Environment, shall conduct a study to assess the total cost of greenhouse 21
gas emissions in the State. 22
(2) The Comptroller may hire a consultant to conduct the study. 23
(2) On or before November 1, 2026, the University of Maryland Center for 24
Global Sustainability shall report to the Comptroller and the Department of the 25
Environment on the findings of the study required under paragraph (1) of this subsection. 26
(b) On or before December 1, 2026, the Comptroller, the Department of 27
Commerce, and the Department of the Environment shall report to the Senate Budget and 28
Taxation Committee, the Senate Committee on Education, Energy, and the Environment, 29
the Senate Judicial Proceedings Committee, the House Appropriations Committee, the 30
House Environment and Transportation Committee, and the House Judiciary Committee, 31
in accordance with § 2–1257 of the State Government Article, on the total assessed cost of 32
greenhouse gas emissions in the State based on the findings of the study conducted by the 33 26 SENATE BILL 149
University of Maryland Center for Global Sustainability under subsection (a) of this 1
section. 2
(c) The report required under subsection (b) of this section shall include: 3
(1) a summary of the various cost–driving effects of covered greenhouse gas 4
emissions on the State, including effects on public health, natural resources, biodiversity, 5
agriculture, economic development, flood preparedness and safety, and housing, and any 6
other effect that the Comptroller and the Department of the Environment determine to be 7
relevant; 8
(2) a categorized calculation of the costs that have been incurred and costs 9
that are projected to be incurred by the State and its residents for each effect identified 10
under item (1) of this subsection; and 11
(3) a categorized calculation of the costs that have been incurred and costs 12
that are projected to be incurred by the State and its residents to mitigate adapt to the 13
effects of covered greenhouse gas emissions during the covered period; and 14
(4) an economic analysis to determine whether there would be a cost passed 15
on to taxpayers as a result of requiring each fossil fuel company that has a sufficient nexus 16
to the State and emitted more than 1,000,000,000 tons of greenhouse gas emissions globally 17
between 1995 and 2024 to compensate the State for climate change. 18
(d) On or before July 1, 2026, the Department of the Environment shall provide a 19
status report, including preliminary findings, to the Senate Budget and Taxation 20
Committee, the Senate Committee on Education, Energy, and the Environment, the Senate 21
Judicial Proceedings Committee, the House Appropriations Committee, the House 22
Environment and Transportation Committee, and the House Judiciary Committee, in 23
accordance with § 2–1257 of the State Government Article. 24
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect 25
October July 1, 2025. 26
Approved:
________________________________________________________________________________
Governor.
________________________________________________________________________________
President of the Senate.
________________________________________________________________________________
Speaker of the House of Delegates.