Md. Code art. Public Utilities, § 7-225Md. Code, Public Utilities § 7-225

Current with changes from the 2024 Legislative Session

Section 7-225 - Greenhouse gas emissions reduction targets

(a) As soon as possible in 2024, and at least 8 months before the filing deadline for plans after 2024, the Commission shall issue an order that determines the greenhouse gas emissions reduction targets required under § 7-223(b) of this subtitle and the greenhouse gas emissions reductions required under § 7-224(a)(2) of this subtitle.

(b)

(1)

(i) If directed by the Commission in 2024, and on or before July 1 every 3 years, starting in 2026, each electric company and each gas company subject to § 7-222(a) of this subtitle that submitted a plan for achieving electricity savings and demand reduction targets to the Commission before July 1, 2024, and the Department, shall consult with the technical staff of the Commission, the Office of People's Counsel, the Maryland Energy Administration, and the Department of the Environment regarding the design and adequacy of its plans for achieving the greenhouse gas emissions reduction targets established by the Commission under § 7-223(b) of this subtitle and specified in § 7-224(a)(2) of this subtitle.

(ii) On or before October 1, 2024, and on or before July 1 every 3 years, starting in 2026, each electric company and each gas company subject to § 7-222(a) of this subtitle that did not submit a plan for achieving electricity savings and demand reduction targets to the Commission before July 1, 2024, shall comply with the consulting requirements under subparagraph (i) of this paragraph.

(2) Each electric company and each gas company subject to § 7-222(a) of this subtitle shall provide the technical staff of the Commission, the Office of People's Counsel, the Maryland Energy Administration, and the Department of the Environment with any additional information regarding its plan, as requested.

(c)

(1)

(i) If directed by the Commission in 2024, and on or before September 1 every 3 years, starting in 2026, each electric company and each gas company subject to § 7-222(a) of this subtitle that submitted a plan for achieving electricity savings and demand reduction targets to the Commission before July 1, 2024, and the Department, shall submit its plan to the Commission.

(ii) On or before December 1, 2024, and on or before September 1 every 3 years, starting in 2026, each electric company and each gas company that did not submit a plan for achieving electricity savings and demand reduction targets to the Commission before July 1, 2024, shall submit its plan to the Commission.

(2) Each plan shall detail a proposal for achieving greenhouse gas emissions reduction targets for 3 subsequent calendar years.

(3)

(i) Each plan shall:

1. include:

A. a description of the proposed programs and services;

B. anticipated costs;

C. projected benefits, including greenhouse gas emissions reductions, electricity savings, and gas savings; and

D. any other information requested by the Commission; and

2. address residential, commercial, and industrial sectors as appropriate, including low-income communities.

(ii) A plan of the Department shall include:

1. a definition of "low-income individual" to be used in the procurement or provision of energy efficiency, conservation, and greenhouse gas emissions reduction programs and services;

2. a description of the steps proposed to ensure insulation materials meet the requirements under § 7-224 of this subtitle; and

3. a proposed average lifetime measure threshold that:

A. encourages the delivery of insulation and weatherization measures; and

B. is developed through a stakeholder engagement process.

(iii) A plan of an electric company shall include the provision or procurement of programs and services for residential beneficial electrification.

(d)

(1) The Commission shall review the plan of each electric company, each gas company, and the Department to determine whether the plan is adequate and cost-effective in achieving the greenhouse gas emissions reduction targets established by the Commission under §§ 7-223(B) and 7-224(a)(2) of this subtitle.

(2) The Commission shall consider any written findings provided by the Maryland Energy Administration, the Department of the Environment, and the Office of People's Counsel regarding the design and adequacy of the plan.

(3) Subject to paragraph (4) of this subsection, in approving, modifying, or denying the plan of an electric company or a gas company, the Commission shall consider:

(i) the cost-effectiveness of the residential, commercial, and industrial sector subportfolios by using:

1. the primary State jurisdiction-specific test, as developed, updated, or approved by the Commission, to determine the cost-effectiveness of a program or service prospectively, including consideration of:

A. participant nonenergy benefits;

B. utility nonenergy benefits; and

C. societal nonenergy benefits; and

2. a total resource cost test to compare the electricity savings and demand reduction targets of the program or service with the results of similar programs or services implemented in other jurisdictions, including:

A. participant nonenergy benefits; and

B. utility nonenergy benefits;

(ii) the impact on rates of each ratepayer class;

(iii) the impact on jobs;

(iv) the impact on the environment; and

(v) the impact on the greenhouse gas emissions reduction targets specified in Title 2, Subtitle 12 of the Environment Article, established by the Commission under §§ 7-223(b) and 7-224(a)(2) of this subtitle.

(4) Nonenergy benefits considered under paragraph (3) of this subsection shall be quantifiable and directly related to a program or service.

(5)

(i) In approving, modifying, or denying the plan of the Department, the Commission shall consider:

1. subject to subparagraph (ii) of this paragraph, the cost-effectiveness of the plan by using the primary State jurisdiction-specific test, as developed, updated, or approved by the Commission;

2. the impact on rates of each ratepayer class;

3. the impact on jobs;

4. the impact on the environment; and

5. the impact on the greenhouse gas emissions targets specified in Title 2, Subtitle 12 of the Environment Article, established by the Commission under § 7-223(b) of this subtitle, and specified in § 7-224(a)(2) of this subtitle.

(ii) The programs and services offered by the Department are not required to be cost-effective.

(e) The Department of the Environment shall prepare and submit to the Commission an analysis regarding the adequacy of the plan in supporting the State's greenhouse gas emissions reduction goals specified in Title 2, Subtitle 12 of the Environment Article, established by the Commission under § 7-223(b) of this subtitle, and required under § 7-224(a)(2) of this subtitle.

Md. Code art. Public Utilities, § 7-225Md. Code, Public Utilities § 7-225

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