Md. Code art. Public Utilities, § 7-224Md. Code, Public Utilities § 7-224

Current with changes from the 2024 Legislative Session

Section 7-224 - Energy efficiency and conservation programs and services provided to low-income individuals

(a)

(1) Beginning January 1, 2025, and on or before January 1 every 3 years, starting in 2027, the Department shall procure or provide to low-income individuals energy efficiency and conservation programs and services, demand response programs and services, and beneficial electrification programs and services that achieve the greenhouse gas emissions reduction targets established for the Department under paragraph (2) of this subsection.

(2) For the period 2025-2033, the programs and services required under paragraph (1) of this subsection shall be on a trajectory to achieve greenhouse gas reductions after 2027 of at least 0.9% of the baseline determined under subsection (b) of this section.

(3)

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

(ii) The greenhouse gas emissions reduction targets established under this subsection shall be measured in metric tons.

(4) The greenhouse gas reductions achieved to meet the targets established under paragraph (2) of this subsection shall count toward the achievement of the greenhouse gas reduction target established under § 7-223(b) of this subtitle.

(5) The target greenhouse gas savings shall be achieved based on the 3-year average of the Department's plan submitted in accordance with subsection (d) of this section.

(6) For 2025 and 2026:

(i) the Commission shall, after making appropriate findings, determine whether the Department's existing 2024-2026 plan must be modified to comply with:

1. the targets established in this subsection; and

2. § 7-225(d) of this subtitle; and

(ii) the Department:

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

2. is only required to file new plans in accordance with subsection (d) of this section and § 7-225 of this subtitle if directed by the Commission.

(b) As a baseline for determining greenhouse gas emissions reduction targets under this section, the Commission shall use the greenhouse gas emissions resulting from the direct consumption of gas and electricity by low-income residential households in 2016, as determined by the Department of the Environment.

(c)

(1) The Department may procure or provide savings that are achieved through funding sources that meet the standards of program funding through utility rates or the U.S. Department of Energy.

(2) The Department may use the savings achieved through all funding sources toward calculating the targeted greenhouse gas reductions if the funding sources meet the standards of programs funded through:

(i) a surcharge under § 7-222 of this subtitle; or

(ii) the U.S. Department of Energy.

(d) If directed by the Commission in 2024, and on or before September 1 every 3 years, starting in 2026, the Department shall submit its plans for any programs or services procured or provided under subsection (a) of this section to the Commission for review and approval under § 7-225 of this subtitle.

(e) For weatherization of leased or rented residences, the Department shall adopt regulations to ensure that:

(1) the benefits of weatherization assistance, including utility bill reduction and preservation of affordable housing stock, accrue primarily to low-income tenants occupying a leased or rented residence; and

(2) the rent on the residence is not increased and the tenant is not evicted as a result of weatherization provided under this section.

(f) The programs and services provided under subsection (a) of this section may not use thermal insulating materials for building elements, including walls, floors, ceilings, attics, and roof insulation, that contain formaldehyde if the formaldehyde:

(1) was intentionally added; or

(2) is present in the product at greater than 0.1% by weight.

(g) The Department's approved contractors used for the programs under this section shall meet the following job requirements:

(1) pay at least 150% of the State minimum wage;

(2) provide career advancement training;

(3) afford employees the right to bargain collectively for wages and benefits;

(4) provide paid leave;

(5) be considered covered employment for purposes of unemployment insurance benefits in accordance with Title 8 of the Labor and Employment Article;

(6) entitle the employee to workers' compensation benefits in accordance with Title 9 of the Labor and Employment Article;

(7) be compliant with federal and State wage and hour laws for the previous 3 years;

(8) offer employer-provided health insurance benefits with monthly premiums that do not exceed 8.5% of the employee's net monthly earnings; and

(9) offer retirement benefits.

(h)

(1) The Department shall develop a plan to coordinate funding sources and leverage the greatest funding possible to support a whole home approach by addressing:

(i) health and safety upgrades;

(ii) weatherization;

(iii) energy efficiency; and

(iv) other general maintenance for low-income housing.

(2) The plan shall coordinate funding among:

(i) the Strategic Energy Investment Fund;

(ii) federal weatherization assistance programs;

(iii) ratepayer contributions to:

1. the EmPOWER Maryland Limited Income Energy Efficiency Program; and

2. the Multifamily Energy Efficiency and Housing Affordability Program;

(iv) the Maryland Affordable Housing Trust Fund;

(v) U.S. Department of Housing and Urban Development programs, including:

1. Community Development Block Grants;

2. the Home Investment Partnership Grants Program; and

3. Lead Hazard Control and Healthy Homes Grants;

(vi) U.S. Department of Agriculture programs, including the Home Repair Program;

(vii) the Healthy Homes for Healthy Kids Program;

(viii) the Energy Efficiency and Conservation Block Grant program;

(ix) State appropriations;

(x) funds from the federal Inflation Reduction Act of 2022; and

(xi) any other source of funding that the Department or the Task Force identifies.

(3) The Department shall ensure, for any whole home retrofits associated with weatherization provided or developed under the plan, that:

(i) there is a single point of contact for low-income residential households; and

(ii) services are offered in any language needed by the low-income residential households.

(4) The Department shall collaborate with the members of the Task Force and identify other interested parties to develop the plan.

(5) On or before December 31, 2024, the Department shall submit the plan to the Governor and, in accordance with § 2-1257 of the State Government Article, the General Assembly.

(i) The Department, the Maryland Energy Administration, and other State units shall apply for all federal funding that may become available to carry out this section.

(j)

(1) The Department shall collaborate with the members of the Task Force to develop a plan, including a budget, a timeline, and potential funding sources, to provide energy efficiency retrofits to all low-income households by 2032.

(2) On or before December 1, 2024, the Department, in collaboration with the Task Force, shall submit the plan to the General Assembly, in accordance with § 2-1257 of the State Government Article.

Md. Code art. Public Utilities, § 7-224Md. Code, Public Utilities § 7-224

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