Md. Code art. Public Utilities, § 7-223Md. Code, Public Utilities § 7-223

Current with changes from the 2024 Legislative Session

Section 7-223 - Greenhouse gas emissions reduction target

(a) On or before January 1, 2025, and on or before January 1 every 3 years, starting in 2027, the Commission shall, by regulation or order, require each electric company and each gas company subject to § 7-222(a) of this subtitle to develop and implement a plan that:

(1) covers appropriate ratepayer classes;

(2) starting in 2027, covers a 3-year program cycle; and

(3) achieves the greenhouse gas emissions reduction target established for the electric company or gas company under subsection (b) of this section through cost-effective energy efficiency and conservation programs and services, demand response programs and services, and beneficial electrification programs and services.

(b)

(1) For 2025 and 2026, and for each 3-year program cycle starting in 2027, the Commission shall establish a greenhouse gas emissions reduction target for each electric company and each gas company subject to § 7-222(a) of this subtitle as provided in this subsection.

(2) When establishing greenhouse gas emissions reduction targets under this subsection, the Commission shall measure the greenhouse gas emissions from electricity and gas, and the intensities of those emissions, using current data and projections from the Department of the Environment.

(3) The greenhouse gas emissions reduction targets established under this subsection shall be measured:

(i) in metric tons; and

(ii) relative to the greenhouse gas emissions associated with the electric company's or gas company's weather-normalized gross retail sales and losses in a baseline year, as determined by the Commission.

(4) By the dates specified in § 7-225(a) of this subtitle, the Commission shall establish greenhouse gas emissions reduction targets for each electric company plan that will achieve at least the greenhouse gas emissions reduction equivalent, measured on a lifecycle basis using the emission intensities under paragraph (2) of this subsection, of the following annual electricity savings percentages, calculated as a percentage of the electric company's 2016 weather-normalized gross retail sales and electricity losses:

(i) 2.0% in 2024;

(ii) 2.25% each year in 2025 and 2026; and

(iii) 2.5% each year in 2027 and after.

(5) On or before January 1, 2025, and on or before January 1 every 3 years, starting in 2027, the Commission shall establish greenhouse gas emissions reduction targets for each gas company plan that will achieve at least the greenhouse gas emissions reduction equivalent, measured on a lifecycle basis using the emission intensities under paragraph (2) of this subsection, of the gas savings achieved by the gas company for the 2021-2023 program cycle.

(6) The Commission shall take into consideration the most recent final plan adopted under § 2-1205 of the Environment Article when establishing the greenhouse gas emissions reduction targets under this subsection.

(7) For 2025 and 2026:

(i) the Commission shall, after making appropriate findings, determine whether existing electric company and gas company plans must be modified to comply with § 7-225(d) of this subtitle; and

(ii) electric companies and gas companies:

1. shall provide information as required by the Commission to assist in making the determination under item (i) of this paragraph; and

2. are only required to file new plans in accordance with this section if directed by the Commission.

(c) The Commission may give priority to long-lived greenhouse gas emissions reduction measures in the plans by establishing a minimum weighted average measure life for the plan of each electric company and gas company.

(d) Contributions to greenhouse gas emissions reduction goals and targets in a plan of an electric company or a gas company:

(1) may, notwithstanding § 7-222(d)(2) of this subtitle, include recovery of the reasonable and prudent costs from programs that are not behind-the-meter programs in a base rate proceeding, subject to Commission approval; and

(2) may not include the increased adoption of electric vehicles.

(e) Beginning January 1, 2025, at least 80% of the greenhouse gas emissions reductions counted toward each electric company's and each gas company's greenhouse gas emissions reduction targets established under this section shall come from behind-the-meter programs, which may include deployment of energy storage facilities.

Md. Code art. Public Utilities, § 7-223Md. Code, Public Utilities § 7-223

Added by 2024 Md. Laws, Ch. 539,Sec. 4, eff. 7/1/2024.