HOUSE BILL 379
C5, M5 1lr1102
(PRE–FILED) CF 1lr1762
By: Delegate Charkoudian
Requested: October 23, 2020
Introduced and read first time: January 13, 2021
Assigned to: Economic Matters
A BILL ENTITLED
1 AN ACT concerning
2 Public Utilities – Low–Income Housing – Energy Performance Targets
3 FOR the purpose of requiring the Public Service Commission to require the Department of
4 Housing and Community Development to procure or provide for electricity customers
5 certain programs and services designed to achieve a certain target starting in a
6 certain year and calculated in a certain manner under certain circumstances;
7 prohibiting certain programs and services from using thermal insulating materials
8 for building elements that contain certain substances under certain circumstances;
9 requiring the weather–normalized gross retail sales against which the savings are
10 measured to reflect certain sales and to be updated by the Commission for each of a
11 certain type of submitted plan; requiring the target annual incremental gross energy
12 savings to be achieved based on an average of Department plans; requiring the
13 Department, on or before a certain date, to submit a certain plan to the Commission;
14 providing for the contents of certain plans; requiring the Department to provide the
15 Commission with certain regular updates on plan implementation and progress
16 toward achieving certain electricity savings and a demand reduction target;
17 requiring the Commission to review a certain plan for adequacy; requiring the
18 Commission to work with the Department to establish certain procedures; requiring
19 the Department to develop a plan to coordinate and leverage funding sources to
20 support certain energy efficiency and other home upgrades; requiring the plan to
21 coordinate funding among certain sources; requiring the Department to collaborate
22 with the members of the Green and Healthy Task Force and other interested
23 stakeholders to develop the plan; requiring the Department to submit the plan to the
24 Governor and General Assembly on or before a certain date; establishing the Green
25 and Healthy Task Force; providing for the composition, chair, and staffing of the
26 Task Force; prohibiting a member of the Task Force from receiving certain
27 compensation, but authorizing the reimbursement of certain expenses; requiring the
28 Task Force to meet quarterly for a certain period of years; requiring the Task Force
29 to analyze and advance the coordination of resources to address the housing needs
30 of low–income communities; requiring the Task Force to engage with interested
EXPLANATION: CAPITALS INDICATE MATTER ADDED TO EXISTING LAW.
[Brackets] indicate matter deleted from existing law.
*hb0379*
2 HOUSE BILL 379
1 parties and experts in the field of healthy and energy–efficient housing; requiring
2 the Task Force to report its findings and recommendations to the Secretary of
3 Health, the Secretary of the Environment, the Public Service Commission, the
4 Governor, and the General Assembly on or before a certain date and each year
5 thereafter; requiring proceeds received by the Strategic Energy Investment Fund
6 from a certain merger to be used, beginning in a certain fiscal year, exclusively for a
7 certain purpose; defining certain terms; and generally relating to energy
8 performance targets for low–income housing.
9 BY adding to
10 Article – Public Utilities
11 Section 7–211.1 and 7–211.2
12 Annotated Code of Maryland
13 (2020 Replacement Volume and 2020 Supplement)
14 BY repealing and reenacting, with amendments,
15 Article – State Government
16 Section 9–20B–05
17 Annotated Code of Maryland
18 (2014 Replacement Volume and 2020 Supplement)
19 SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND,
20 That the Laws of Maryland read as follows:
21 Article – Public Utilities
22 7–211.1.
23 (A) (1) IN THIS SECTION THE FOLLOWING WORDS HAVE THE MEANINGS
24 INDICATED.
25 (2) “DEPARTMENT” MEANS THE DEPARTMENT OF HOUSING AND
26 COMMUNITY DEVELOPMENT.
27 (3)“LOW–INCOME PROGRAM” MEANS A PROGRAM THAT DELIVERS
28 ENERGY EFFICIENCY MEASURES TO BUILDING OWNERS, MANAGERS, AND TENANTS
29 IN HOUSING WITH RESIDENTS WHO HAVE AN INCOME BELOW 200% OF THE FEDERAL
30 POVERTY LEVEL, MULTIFAMILY RENTAL HOUSING WITH EXISTING INCOME OR RENT
31 RESTRICTIONS, OR MULTIFAMILY BUILDINGS WHERE MORE THAN 66% OF
32 HOUSEHOLDS HAVE AN INCOME LESS THAN 80% OF THE AREA MEDIAN INCOME,
33 INCLUDING THE FOLLOWING PROGRAMS OF THE DEPARTMENT:
34 (I) THE EMPOWER MARYLAND LOW INCOME ENERGY
35 EFFICIENCY PROGRAM;
HOUSE BILL 379 3
1 (II) THE MULTIFAMILY ENERGY EFFICIENCY AND HOUSING
2 AFFORDABILITY PROGRAM; AND
3 (III) THE WEATHERIZATION ASSISTANCE PROGRAM.
4 (4) “LOW–INCOME RESIDENTIAL” MEANS A HOUSEHOLD WITH
5 RESIDENTS WHO HAVE AN INCOME BELOW 200% OF THE FEDERAL POVERTY LEVEL.
6 (5) “TASK FORCE” MEANS THE GREEN AND HEALTHY TASK FORCE
7 ESTABLISHED UNDER § 7–211.2 OF THIS SUBTITLE.
8 (B) (1) FOR THE 2021–2023 PROGRAM CYCLE, BY REGULATION OR
9 ORDER, THE COMMISSION SHALL, TO THE EXTENT THAT THE COMMISSION
10 DETERMINES THAT LOW–INCOME PROGRAMS ARE AVAILABLE, REQUIRE THE
11 DEPARTMENT TO PROCURE OR PROVIDE FOR ELECTRICITY CUSTOMERS ENERGY
12 EFFICIENCY AND CONSERVATION PROGRAMS AND SERVICES.
13 (2) THE PROGRAMS AND SERVICES REQUIRED UNDER PARAGRAPH
14 (1) OF THIS SUBSECTION SHALL BE DESIGNED TO ACHIEVE A TARGET ANNUAL
15 INCREMENTAL GROSS ENERGY SAVINGS OF AT LEAST 1% PER YEAR STARTING IN
16 2022.
17 (3) THE ENERGY SAVINGS DESCRIBED IN PARAGRAPH (2) OF THIS
18 SUBSECTION SHALL BE CALCULATED AS A PERCENTAGE OF THE 2019
19 WEATHER–NORMALIZED GROSS LOW–INCOME RESIDENTIAL RETAIL SALES FOR ALL
20 ELECTRIC COMPANIES.
21 (4) (I)SUBJECT TO SUBPARAGRAPH (II) OF THIS PARAGRAPH, THE
22 PROGRAMS AND SERVICES PROVIDED UNDER PARAGRAPH (1) OF THIS SUBSECTION
23 MAY NOT USE THERMAL INSULATING MATERIALS FOR BUILDING ELEMENTS,
24 INCLUDING WALLS, FLOORS, CEILINGS, ATTICS, AND ROOF INSULATION, THAT
25 CONTAIN:
26 1. FORMALDEHYDE; OR
27 2. ANY SUBSTANCE THAT IS A CATEGORY 1
28 RESPIRATORY SENSITIZER AS DEFINED IN 29 C.F.R. PART 1910 (APPENDIX A).
29 (II) THERMAL
INSULATING MATERIALS FOR BUILDING
30 ELEMENTS MAY NOT CONTAIN A SUBSTANCE UNDER SUBPARAGRAPH (I) OF THIS
31 PARAGRAPH IF THE SUBSTANCE:
32 1. WAS INTENTIONALLY ADDED; OR
4 HOUSE BILL 379
1 2. IS PRESENT IN THE PRODUCT AT GREATER THAN 0.1%
2 BY WEIGHT.
3 (C) THE WEATHER–NORMALIZED GROSS RETAIL SALES AGAINST WHICH
4 THE SAVINGS ARE MEASURED SHALL:
5 (1)
REFLECT SALES ASSOCIATED WITH THE LOW–INCOME
6 RESIDENTIAL CUSTOMER CLASS SERVED BY PROGRAMS ADMINISTERED BY THE
7 DEPARTMENT; AND
8 (2)
BE UPDATED BY THE COMMISSION FOR EACH PLAN SUBMITTED
9 UNDER SUBSECTION (E) OF THIS SECTION.
10 (D) THE TARGET ANNUAL INCREMENTAL GROSS ENERGY SAVINGS SHALL BE
11 ACHIEVED BASED ON THE 3–YEAR AVERAGE OF DEPARTMENT PLANS SUBMITTED IN
12 ACCORDANCE WITH SUBSECTION (E) OF THIS SECTION.
13 (E) (1)
ON OR BEFORE SEPTEMBER 1, 2021, THE DEPARTMENT SHALL
14 SUBMIT A PLAN TO THE COMMISSION THAT DETAILS PROPOSALS FOR ACHIEVING
15 THE ELECTRICITY SAVINGS AND DEMAND REDUCTION TARGET UNDER SUBSECTION
16 (B) OF THIS SECTION FOR THE 3 SUBSEQUENT CALENDAR YEARS.
17 (2) THE PLANS SHALL INCLUDE:
18 (I)
A DESCRIPTION OF THE PROPOSED ENERGY EFFICIENCY
19 AND CONSERVATION PROGRAMS AND SERVICES;
20 (II)
A DESCRIPTION OF THE STEPS PROPOSED TO ENSURE
21 INSULATION MATERIALS MEET THE REQUIREMENTS UNDER SUBSECTION (B) OF
22 THIS SECTION;
23 (III) ANTICIPATED COSTS;
24 (IV) PROJECTED ELECTRICITY SAVINGS; AND
25 (V) ANY OTHER INFORMATION THAT THE COMMISSION
26 REQUESTS.
27 (3) THE DEPARTMENT SHALL PROVIDE THE COMMISSION WITH AN
28 UPDATE EVERY 6 MONTHS ON PLAN IMPLEMENTATION AND PROGRESS TOWARD
29 ACHIEVING THE ELECTRICITY SAVINGS AND DEMAND REDUCTION TARGET UNDER
30 SUBSECTION (B) OF THIS SECTION.
HOUSE BILL 379 5
1 (4) THE COMMISSION SHALL REVIEW A PLAN TO DETERMINE IF THE
2 PLAN IS ADEQUATE FOR ACHIEVING THE TARGET.
3 (F) THE COMMISSION SHALL WORK WITH THE DEPARTMENT TO ESTABLISH
4 ANY PROCEDURES NECESSARY TO DEVELOP AND IMPLEMENT A PLAN FOR
5 ACHIEVING THE ELECTRICITY SAVINGS AND DEMAND REDUCTION TARGET UNDER
6 SUBSECTION (B) OF THIS SECTION, INCLUDING SECURING COOPERATION FROM
7 ELECTRIC COMPANIES RELATED TO:
8 (1) FUNDING;
9 (2) COMMUNICATIONS;
10 (3) REFERRALS;
11 (4) DATA SHARING; AND
12 (5) ANY OTHER COOPERATION THAT THE COMMISSION DETERMINES
13 IS NECESSARY TO ACHIEVE THE ELECTRICITY SAVINGS UNDER SUBSECTION (B) OF
14 THIS SECTION.
15 (G) (1) THE DEPARTMENT SHALL DEVELOP A PLAN TO COORDINATE
16 FUNDING SOURCES AND LEVERAGE THE GREATEST FUNDING POSSIBLE TO
17 SUPPORT:
18 (I) HEALTH AND SAFETY UPGRADES;
19 (II) WEATHERIZATION;
20 (III) ENERGY EFFICIENCY; AND
21 (IV) OTHER GENERAL MAINTENANCE FOR LOW–INCOME
22 HOUSING.
23 (2) THE PLAN SHALL COORDINATE FUNDING AMONG:
24 (I) THE STRATEGIC ENERGY INVESTMENT FUND;
25 (II) FEDERAL WEATHERIZATION ASSISTANCE PROGRAMS;
26 (III) RATEPAYER CONTRIBUTIONS TO:
6 HOUSE BILL 379
1 1. THE EMPOWER MARYLAND LOW–INCOME ENERGY
2 EFFICIENCY PROGRAM; AND
3 2.
THE MULTIFAMILY ENERGY EFFICIENCY AND
4 HOUSING AFFORDABILITY PROGRAM;
5 (IV) THE MARYLAND AFFORDABLE HOUSING TRUST FUND;
6 (V)
U.S. DEPARTMENT OF HOUSING AND URBAN
7 DEVELOPMENT PROGRAMS, INCLUDING:
8 1. COMMUNITY DEVELOPMENT BLOCK GRANTS;
9 2. THE HOME INVESTMENT PARTNERSHIP GRANTS
10 PROGRAM; AND
11 3. LEAD HAZARD CONTROL AND HEALTHY HOMES
12 GRANTS;
13 (VI) U.S. DEPARTMENT OF AGRICULTURE PROGRAMS,
14 INCLUDING THE HOME REPAIR PROGRAM;
15 (VII) THE HEALTHY HOMES FOR HEALTHY KIDS PROGRAM;
16 (VIII) STATE APPROPRIATIONS; AND
17 (IX)
ANY OTHER SOURCE OF FUNDING THAT THE DEPARTMENT
18 OR THE TASK FORCE IDENTIFIES.
19 (3) THE DEPARTMENT SHALL COLLABORATE WITH THE MEMBERS OF
20 THE TASK FORCE AND IDENTIFY OTHER INTERESTED STAKEHOLDERS TO DEVELOP
21 THE PLAN.
22 (4) ON OR BEFORE DECEMBER 31, 2021, THE DEPARTMENT SHALL
23 SUBMIT THE PLAN TO THE GOVERNOR AND, IN ACCORDANCE WITH § 2–1257 OF THE
24 STATE GOVERNMENT ARTICLE, THE GENERAL ASSEMBLY.
25 7–211.2.
26 (A) THERE IS A GREEN AND HEALTHY TASK FORCE.
27 (B) THE TASK FORCE CONSISTS OF THE FOLLOWING MEMBERS:
HOUSE BILL 379 7
1 (1)TWO MEMBERS OF THE SENATE OF MARYLAND, APPOINTED BY
2 THE PRESIDENT OF THE SENATE;
3 (2)TWO MEMBERS OF THE HOUSE OF DELEGATES, APPOINTED BY
4 THE SPEAKER OF THE HOUSE;
5 (3) THE SECRETARY OF HOUSING AND COMMUNITY DEVELOPMENT,
6 OR THE SECRETARY’S DESIGNEE;
7 (4) THE SECRETARY OF HEALTH, OR THE SECRETARY’S DESIGNEE;
8 (5) THE SECRETARY OF HUMAN SERVICES, OR THE SECRETARY’S
9 DESIGNEE;
10 (6)
THE DIRECTOR OF THE MARYLAND ENERGY ADMINISTRATION,
11 OR THE DIRECTOR’S DESIGNEE; AND
12 (7) AS APPOINTED BY THE CHAIR OF THE TASK FORCE:
13 (I) ONE REPRESENTATIVE OF THE MARYLAND AFFORDABLE
14 HOUSING TRUST;
15 (II) ONE REPRESENTATIVE OF THE GREEN AND HEALTHY
16 HOMES INITIATIVE;
17 (III) ONE REPRESENTATIVE OF MARYLAND ENERGY
18 EFFICIENCY ADVOCATES;
19 (IV) ONE MEMBER WHO IS AN EXPERT IN PUBLIC HEALTH;
20 (V)
ONE MEMBER FROM A COMMUNITY CONCERNED WITH
21 ENVIRONMENTAL JUSTICE;
22 (VI)
ONE MEMBER WHO HAS RECEIVED ASSISTANCE FROM A
23 LOW–INCOME PROGRAM THAT DELIVERS ENERGY EFFICIENCY MEASURES; AND
24 (VII) OTHER MEMBERS AS DETERMINED BY THE CHAIR OF THE
25 TASK FORCE.
26 (C) THE SECRETARY OF HOUSING AND COMMUNITY DEVELOPMENT, OR
27 THE SECRETARY’S DESIGNEE, SHALL SERVE AS CHAIR OF THE TASK FORCE.
28 (D) THE DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT
8 HOUSE BILL 379
1 SHALL PROVIDE STAFF FOR THE TASK FORCE.
2 (E) A MEMBER OF THE TASK FORCE:
3 (1) MAY NOT RECEIVE COMPENSATION AS A MEMBER OF THE TASK
4 FORCE; BUT
5 (2) IS ENTITLED TO REIMBURSEMENT FOR EXPENSES UNDER THE
6 STANDARD STATE TRAVEL REGULATIONS, AS PROVIDED IN THE STATE BUDGET.
7 (F) THE TASK FORCE SHALL:
8 (1) BEGINNING JULY 1, 2021, MEET QUARTERLY FOR A PERIOD OF 3
9 YEARS;
10 (2)
ADVANCE THE ALIGNMENT, BRANDING, AND COORDINATION OF
11 RESOURCES TO MORE EFFECTIVELY DELIVER GREEN AND HEALTHY HOUSING FOR
12 LOW–INCOME HOUSEHOLDS IN THE STATE;
13 (3)
EXAMINE THE PUBLIC AND PRIVATE RESOURCES NEEDED TO
14 ADDRESS THE HOUSING NEEDS OF LOW–INCOME COMMUNITIES;
15 (4)
DEVELOP POLICY AND STATUTORY RECOMMENDATIONS TO
16 ELIMINATE BARRIERS FROM LOW–INCOME HOUSEHOLDS ACHIEVING HEALTHY,
17 ENERGY–EFFICIENT, AND AFFORDABLE HOUSING; AND
18 (5)ENGAGE WITH INTERESTED PARTIES AND COLLABORATE WITH
19 OTHER ENTITIES THAT CAN HELP ADVANCE THE GOALS OF THE TASK FORCE,
20 INCLUDING EXPERTS IN THE FIELD OF HEALTHY AND ENERGY–EFFICIENT HOUSING.
21 (G) ON OR BEFORE JULY 1, 2022, AND EACH JULY 1 THEREAFTER, THE
22 TASK FORCE SHALL REPORT ITS FINDINGS AND RECOMMENDATIONS TO THE
23 SECRETARY OF HEALTH, THE SECRETARY OF THE ENVIRONMENT, THE
24 COMMISSION, THE GOVERNOR, AND, IN ACCORDANCE WITH § 2–1257 OF THE STATE
25 GOVERNMENT ARTICLE, THE GENERAL ASSEMBLY.
26 Article – State Government
27 9–20B–05.
28 (a) There is a Maryland Strategic Energy Investment Fund.
29 (b) The purpose of the Fund is to implement the Strategic Energy Investment
30 Program.
HOUSE BILL 379 9
1 (c) The Administration shall administer the Fund.
2 (d) (1) The Fund is a special, nonlapsing fund that is not subject to § 7–302 of
3 the State Finance and Procurement Article.
4 (2) The Treasurer shall hold the Fund separately and the Comptroller shall
5 account for the Fund.
6 (e) The Fund consists of:
7 (1) all of the proceeds from the sale of allowances under § 2–1002(g) of the
8 Environment Article;
9 (2) money appropriated in the State budget to the Program;
10 (3) repayments and prepayments of principal and interest on loans made
11 from the Fund;
12 (4) interest and investment earnings on the Fund;
13 (5) compliance fees paid under § 7–705 of the Public Utilities Article;
14 (6) money received from any public or private source for the benefit of the
15 Fund; and
16 (7) money transferred from the Public Service Commission under §
17 7–207.2(c)(3) of the Public Utilities Article.
18 (f) The Administration shall use the Fund:
19 (1) to invest in the promotion, development, and implementation of:
20 (i) cost–effective energy efficiency and conservation programs,
21 projects, or activities, including measurement and verification of energy savings;
22 (ii) renewable and clean energy resources;
23 (iii) climate change programs directly related to reducing or
24 mitigating the effects of climate change; and
25 (iv) demand response programs that are designed to promote
26 changes in electric usage by customers in response to:
27 1. changes in the price of electricity over time; or