# Environment (GEN)

## Title 2. Ambient Air Quality Control

### Subtitle 1. Definitions; General Provisions

#### Section 2-101

(a) In this title the following words have the meanings indicated.

(b) "Air pollution" means the presence in the outdoor atmosphere of any substance that is present in such quantities and is of such duration that it:

  (1) May be predicted with reasonable certainty to be injurious to property or to human, plant, or animal life; or

  (2) Unreasonably interferes with the proper enjoyment of the property of others because of the emission of odors, solids, vapors, liquids, or gases.

(c) "Council" means the Air Quality Control Advisory Council.

(d) "Emergency" means:

  (1) A condition of such public gravity and urgency that it requires immediate response; or

  (2) A condition that is predicted to a reasonable degree of certainty to require immediate action to carry out the provisions of this title.

(e)

  (1) "Emission standard" means a requirement that limits the quantity, quality, rate, or concentration of emissions from a source.

  (2) "Emission standard" includes any requirement that relates to the operation or maintenance of a source to assure continuous emission reduction.

(f) "Person" includes any public or municipal corporation and any agency, bureau, department, or instrumentality of federal, State, or local government.

(g) "Political subdivision" means a county or municipal corporation of this State.

(h) "Regulated emissions" means the actual rate of emissions, in tons per year, of any registered pollutant emitted by a source, to be calculated using criteria consistent with 40 C.F.R. Part 70 (Operating Permit Program).

(i) "Source" means any person or property that contributes to air pollution.

#### Section 2-102

It is the policy of this State to maintain the degree of purity of the air necessary to protect the health, the general welfare, and property of the people of this State.

#### Section 2-103

(a) In addition to the powers set forth elsewhere in this title, the Department may obtain any federal or other funds that are available to this State for purposes that are within the scope of this title.

(b) In addition to the duties set forth elsewhere in this title, the Department:

  (1) Has jurisdiction over emissions into the air and ambient air quality in this State;

  (2) Is responsible for monitoring ambient air quality in this State; and

  (3) Shall coordinate all State agency programs on ambient air quality control.

(c) The Department may contract for or otherwise arrange for the use of the facilities and services of appropriate agencies of political subdivisions in carrying out the Department's monitoring duties under this title.

#### Section 2-103.1

Subject to Sec. 2-1257 of the State Government Article, the Secretary, in conjunction with the Secretary of Transportation, shall furnish a joint report, within 30 days after the date Congress modifies the provisions of the federal Clean Air Act, to the Legislative Policy Committee, the Senate Judicial Proceedings Committee, and the House Environment and Transportation Committee outlining the status of changes in the federal Clean Air Act as of that date and all other related and pertinent information.

#### Section 2-103.2

(a) In this section, "ambient air monitoring data" means measured concentrations of air pollutants, including air pollutants for which there are no established ambient air quality standards or emission standards, obtained from an ambient air monitor established by the Department.

(b) On or before January 1, 2000, and each year thereafter, the Department shall provide public access to all air monitoring data in the State through the Internet.

(c) Ambient air monitoring data provided under this section:

  (1) May be in summary form; and

  (2) Shall include all validated ambient air monitoring data for the 2 most recent calendar years for which data are available.

#### Section 2-104

(a)

  (1) Except as provided in this section, this title does not limit the power of a political subdivision to adopt ordinances, rules, or regulations that set emission standards or ambient air quality standards.

  (2) A political subdivision may not adopt any ordinance, rule, or regulation that sets an emission standard or ambient air quality standard less stringent than the standards set by the Department under this title.

(b) The governing body of any political subdivision may ask the Department to adopt rules and regulations that set more restrictive emission standards or ambient air quality standards in that political subdivision.

#### Section 2-105

(a)

  (1) In accordance with the rules and regulations adopted by the Department, the Secretary shall advise the Governor when an air pollution emergency exists or is reasonably certain to occur.

  (2) When so advised, the Governor may issue an executive order that:

    (i) Proclaims an air pollution emergency; and

    (ii) Requires the immediate elimination of specifically identifiable sources of air pollution.

(b) If a person violates an executive order issued under this section, the Attorney General may sue in a court of appropriate jurisdiction to enforce compliance with the order.

#### Section 2-106

(a) A determination by the Department that air pollution exists or that a rule or regulation has been disregarded or violated does not create any presumption of law or finding of fact for the benefit of any person other than this State.

(b) Any proceedings under this title shall be brought by the Department for the benefit of the people of this State.

(c) No person other than this State acquires actionable rights by virtue of this title.

#### Section 2-107

(a) There is a Maryland Clean Air Fund.

(b) Except as provided in Sec. 2-1002(g) of this title, all application fees, permit fees, renewal fees, and funds collected by the Department under this title, Title 6, Subtitle 4 of this article, or received from the Maryland Strategic Energy Investment Fund under Sec. 9-20B-05(g)(3)(iii) of the State Government Article, including any civil or administrative penalty or any fine imposed by a court under these provisions, shall be paid into the Maryland Clean Air Fund.

(c)

  (1) Subject to the appropriation process in the annual operating budget, the Department shall use the Maryland Clean Air Fund for:

    (i) Activities conducted under this title that are related to identifying, mitigating, monitoring, reducing, and regulating air pollution in the State, including program development of these activities as provided in the State budget; and

    (ii) Providing grants to local governments to supplement funding for programs conducted by local governments that are consistent with this title and the State program.

  (2) Subject to Title 10, Subtitle 1 of the State Government Article (Administrative Procedure Act - Regulations), the Department shall adopt rules and regulations for the management and use of the money in the Fund.

  (3) At the end of the fiscal year, the Department shall:

    (i) Prepare an annual report on:

      (1) The Maryland Clean Air Fund that includes an accounting of all financial receipts and expenditures to and from the Fund; and

      (2) Any relevant information regarding the federal approval process, the effectiveness of the permitting program, and any other issues related to the operation of the permitting program established under Sec. 2-401 of this title;

    (ii) Provide a copy of the report to the General Assembly, as provided under Sec. 2-1257 of the State Government Article; and

    (iii) Upon request, make the report available to permit holders under this title.

  (4) Money deposited into the Fund is not subject to Sec. 7-302 of the State Finance and Procurement Article and may not revert to the General Fund of the State.

### Subtitle 2. Air Quality Control Advisory Council

#### Section 2-201

There is an Air Quality Control Advisory Council in the Department.

#### Section 2-202

(a)

  (1) The Council consists of not more than 15 members appointed by the Secretary.

  (2) Of the Council members:

    (i) 1 shall be appointed from a list of 3 qualified individuals who are professional engineers licensed in this State, submitted to the Secretary by the Baltimore section of the American Society of Mechanical Engineers;

    (ii) 1 shall be appointed from a list of 3 qualified individuals submitted to the Secretary by the Maryland section of the American Institute of Chemical Engineers;

    (iii) 2 shall be individuals who are employed in a manufacturing or public utility business in this State, each appointed from a separate list of 3 qualified individuals submitted to the Secretary by the Maryland Chamber of Commerce;

    (iv) 1 shall be a physician;

    (v) 1 shall be a member of the Regional Planning Council who is recommended to the Secretary by the Regional Planning Council;

    (vi) 1 shall be appointed from a list of 3 qualified individuals submitted to the Secretary by the Maryland Association of Counties;

    (vii) 4 shall be appointed, 1 from each list, from lists of 3 qualified individuals submitted to the Secretary by:

      (1) The Chairman of the Board of Directors of the Council of Governments of Metropolitan Washington;

      (2) The President of the Johns Hopkins University;

      (3) The President of the Maryland State-D.C. AFL-CIO; and

      (4) The Chancellor of the University System of Maryland;

    (viii) 2 shall be public members who represent the community at large; and

    (ix) 1 shall be a member of the Children's Environmental Health and Protection Advisory Council who has expertise in pediatric environmental health.

  (3) In making appointments to the Council, the Secretary shall:

    (i) Consider giving appropriate representation to the various geographical areas of this State; and

    (ii) Appoint at least 1 member who is engaged actively in farming and knowledgeable in farm and rural pollutant problems.

(b)

  (1) The term of a member is 5 years.

  (2) The terms of the members are staggered as required by the terms provided for members of the Council on July 1, 1986.

  (3) The member who represents the Regional Planning Council serves only so long as the member remains on the Regional Planning Council.

  (4) At the end of a term, a member continues to serve until a successor is appointed and qualifies.

  (5) A member who is appointed after a term has begun serves only for the rest of the term and until a successor is appointed and qualifies.

#### Section 2-203

From among the Council members, the Secretary shall appoint a chairman and a vice chairman.

#### Section 2-204

(a) The Secretary of the Environment shall appoint a secretary of the Council.

(b) The secretary of the Council need not be a member of the Council.

#### Section 2-205

(a) The Council shall meet at the times and places that the Secretary of the Environment or the chairman determines.

(b) Each member of the Council and the secretary of the Council:

  (1) May not receive compensation; but

  (2) Are entitled to reimbursement for expenses under the Standard State Travel Regulations, as provided in the State budget.

#### Section 2-206

(a) Before the Department adopts any rule or regulation under this title, the Department shall submit the proposed rule or regulation to the Council for advice.

(b) Within 30 days after receiving a proposed rule or regulation from the Department, the Council shall give the Department its advice on the proposal by recommending:

  (1) Adoption;

  (2) Rejection; or

  (3) Modification.

### Subtitle 3. Rulemaking

#### Section 2-301

(a) The Department:

  (1) May adopt rules and regulations for the control of air pollution in this State, including testing, monitoring, record keeping, and reporting requirements; and

  (2) Shall adopt rules and regulations that establish standards and procedures to be followed whenever pollution of the air reaches an emergency condition.

(b) In adopting any rule or regulation under this title, the Department shall consider, among other things:

  (1) The residential, commercial, or industrial nature of the area affected;

  (2) Zoning;

  (3) The nature and source of various kinds of air pollution;

  (4) The problems of any commercial or industrial establishment that may be affected by the rule or regulation; and

  (5) The environmental conditions, population density, and topography of any area that may be affected by the rule or regulation.

(c) Any rule or regulation adopted under this title that relates to grain drying operations shall be adopted with the advice and consent of the State Department of Agriculture.

#### Section 2-302

(a) The Department shall determine and may alter air quality control areas into which this State is divided.

(b) The Department shall adopt rules and regulations that set emission standards and ambient air quality standards for each of the air quality control areas in this State.

(c)

  (1) Unless a political subdivision requests a more restrictive standard under Sec. 2-104 of this title, the Department shall set ambient air quality standards for pollutants that are identical to the standards for pollutants for which national primary or secondary ambient air quality standards have been set by the federal government.

  (2) To protect the public health, the general welfare, and property of the people of this State, the Department may set State ambient air quality standards for substances for which national ambient air quality standards have not been set by the federal government.

  (3) If the Secretary finds that transportation through the air is a significant factor in the buildup of a pollutant in a substance other than air and that monitoring the substance facilitates control of the pollutant, a State ambient air quality standard may establish a maximum concentration of the pollutant in that substance.

(d)

  (1) Except as provided in paragraph (2) of this subsection, if national ambient air quality standards are attained in an air quality control area, the Department shall set emission standards for that area based on the goal of achieving emission levels that are not more restrictive than necessary to attain and maintain the ambient air quality standards in that area.

  (2) The limitations of paragraph (1) of this subsection do not apply to the extent that:

    (i) A political subdivision requests a more restrictive standard under Sec. 2-104 of this title; or

    (ii) New source performance standards, national prevention of significant deterioration requirements, national emission standards for hazardous pollutants, or any other requirements of the federal Clean Air Act apply.

  (3) For those emissions for which no national ambient air quality standards have been set, the Secretary may set emission standards and requirements for various classes of sources.

#### Section 2-303

(a) The Department may not adopt any rule or regulation under this title unless the requirements of this section and the Administrative Procedure Act are met.

(b)

  (1) Before adopting any rule or regulation under this title, the Department shall announce and hold a public hearing on the subject.

  (2) A public hearing required under this subtitle may be held using teleconference or Internet-based conferencing technology.

(c)

  (1) At least 30 days before the public hearing, the Department shall publish notice of the hearing in a newspaper of general circulation in the area concerned or on the Department's website.

  (2) The notice required under paragraph (1) of this subsection shall state:

    (i) The date, time, and place of the hearing; and

    (ii) The purpose of the hearing.

(d) The Department shall publish annually a notice in a newspaper of general circulation to inform the public of:

  (1) The types of public notices required under this title that are available on the Department's website; and

  (2) A phone number or electronic mail address at the Department that a person can contact to arrange for the receipt of future public notices required under this title by first-class mail or electronic mail.

(e) After the public hearing, the Department may adopt the rule or regulation with or without modification.

#### Section 2-303.1

The Department may not adopt regulations to implement Stage II of the Program for Volatile Organic Emissions Control from gasoline retailing operations unless:

(1) The Department is mandated by the United States Environmental Protection Agency;

(2) The Department is unable to find other control strategies; and

(3) The Environmental Protection Agency publishes notice in the Federal Register that the State of Maryland is not in compliance with the provisions of the Clean Air Act (42 U.S.C. Sec.Sec. 7401 through 7602).

#### Section 2-303.2

In any program implementing the reduction of vehicle miles traveled as a part of the State's compliance with the federal Clean Air Act the Department shall include provisions to allow, both within Maryland and among Maryland and adjoining states:

(1) The averaging of reductions in vehicle miles traveled between different worksites of the same employer;

(2) The averaging of reductions in vehicle miles traveled between worksites of different employers;

(3) The sale between worksites and employers of credits for reduced vehicle miles traveled; and

(4) The greatest degree of flexibility in implementation, giving full consideration to the geographic differences among affected areas, in order to promote the economic and environmental interests of the areas affected.

#### Section 2-303.3

The Department shall conduct inspections as provided in a memorandum of understanding on behalf of and in coordination with other agencies when administering the inspection of gasoline retailing operations under this subtitle.

#### Section 2-304

Each State agency shall consult with the Department before adopting any rule or regulation that relates to ambient air quality control.

### Subtitle 4. Permits and Registration

#### Section 2-401

Except as provided in Sec. 2-402 of this subtitle, the Department may adopt regulations that require a permit or registration before a person constructs, modifies, operates, or uses a source that may cause or control emissions into the air.

#### Section 2-402

The Department may not require a permit or registration for:

(1) Any machinery or equipment that normally is used in a mobile manner;

(2) Any boiler used exclusively to operate steam engines for farm and domestic use;

(3) The construction of a generating station constructed by a person that is required to obtain a certificate of public convenience and necessity under Sec.Sec. 7-207 and 7-208 of the Public Utilities Article and regulations adopted by the Public Service Commission;

(4) Actual construction of buildings, apart from any possible emission producing machinery housed in the buildings;

(5) Any parking garage; or

(6) Any parking lot.

#### Section 2-403

(a)

  (1) The Department, by regulation, shall require and collect a fee for each permit issued under Sec. 2-401 of this subtitle.

  (2) In adopting the regulations under this section, the Department shall consult with industry to determine that the permit fee is reasonable and directly related to the actual cost of the permitting and regulatory activity, and does not exceed a certain dollar amount.

(b)

  (1) The amount of the fees shall cover:

    (i) The reasonable cost of reviewing and acting on the application for the permits;

    (ii) The reasonable costs incurred in implementing and enforcing the terms and conditions of the permits, exclusive of any court costs or other costs associated with any enforcement actions; and

    (iii) The costs identified in Sec. 502(b)(3) of the Clean Air Act Amendments of 1990.

  (2) Fees assessed and collected under this section shall be used exclusively for the development and administration of the permit program under this subtitle.

(c)

  (1) The fee established under this section may not exceed $200 per ton of regulated emissions.

  (2) For purposes of calculating fees under this section, carbon dioxide emissions shall be excluded.

  (3) The fee established under this section may be adjusted to reflect changes in the Consumer Price Index.

#### Section 2-404

(a) This section applies to the following activities:

  (1) Construction of a new source;

  (2) Replacement of components of an existing permitted source, if the fixed capital cost of the replacement components exceeds one-half of the fixed capital cost that would be required to construct a new source comparable in process to the existing source; and

  (3) Modification of an existing permitted source by making a physical or operational change to the source that will result in a significant net increase in emissions of any pollutant from that source.

(b)

  (1) Before accepting an application for a permit subject to subsection (c) of this section, the Department shall require the applicant to submit documentation:

    (i) That demonstrates that the proposal has been approved by the local jurisdiction for all zoning and land use requirements; or

    (ii) That the source meets all applicable zoning and land use requirements.

  (2) Paragraph (1) of this subsection does not apply to any application for a permit to construct at an existing source unless the existing source is a nonconforming use.

(c) The Department shall comply with the provisions in subsection (d) of this section before issuing a permit for the activities listed in subsection (a) of this section at:

  (1) Any source which is required to obtain a permit to operate under regulations adopted under this subtitle;

  (2) Any source which is subject to federal standards under 40 C.F.R. Part 61 (National Emission Standards for Hazardous Air Pollutants) or 40 C.F.R. 52.21 (Prevention of Significant Deterioration); or

  (3) Any source that will, after control, discharge 25 tons or more per year of a pollutant regulated under this title in the areas of Baltimore City designated by the United States Post Office as zip code numbers 21225, 21226, and 21230.

(d)

  (1) On receipt of an application for a permit subject to subsection (c) of this section, the Department shall give notice immediately or require the applicant to give notice immediately of the application to:

    (i) The governing body of each county or municipal corporation in which any portion of the source is located or is proposed to be located;

    (ii) The governing body of each county or municipal corporation within one mile of the property line of the source or the proposed location of the source;

    (iii) Each member of the General Assembly representing any part of a county in which any portion of the source is located or proposed to be located; and

    (iv) Each member of the General Assembly representing any part of each county within one mile of the property line of the source or the proposed location of the source.

  (2) In addition to the requirements under paragraph (1) of this subsection, before issuing a permit subject to subsection (c) of this section, the Department shall:

    (i) Comply with the provisions of Title 1, Subtitle 6 of this article; and

    (ii) Conduct any public hearing required by Title 1, Subtitle 6 of this article.

  (3) In addition to the requirements under paragraphs (1) and (2) of this subsection, before issuing a permit to construct a source described in subsection (c)(3) of this section, the Department shall require at the expense of the applicant the preparation of an ambient air quality impact analysis regarding the proposed construction.

(e) Before issuing a permit for the activities listed in subsection (a) of this section at any source which is subject to federal standards under 40 C.F.R. Part 60 (New Source Performance Standards), the Department shall:

  (1) Comply with the provisions of subsection (d) of this section; or

  (2)

    (i) Electronically post a notice of an application for the permit on the Department's website in accordance with Sec. 1-602(b)(1) of this article;

    (ii) Give notice to the chief executive of any county or municipal corporation in which any portion of the source is located or is proposed to be located; and

    (iii) Receive comments from the public on the permit application.

(f) The provisions of this section do not apply to any permit to construct control equipment on an existing source or to any permit to operate.

#### Section 2-404.1

(a) Except for an applicant who elects to proceed under subsection (d) of this section, a final decision by the Department on the issuance, renewal, or revision of an operating permit issued pursuant to Title V of the federal Clean Air Act Amendments of 1990 is subject to judicial review by any person who:

  (1) Meets the threshold standing requirements under federal constitutional law; and

  (2) Participated in a public participation process through the submission of written or oral comments, unless an opportunity for public participation was not required by statute or regulation.

(b) Judicial review shall be on the administrative record before the Department and limited to objections raised during the public comment period, unless the petitioner demonstrates:

  (1) That the objections were not reasonably ascertainable during the comment period; or

  (2) That grounds for the objections arose after the comment period.

(c) Unless otherwise required by statute, a petition for judicial review by a person who meets the requirements of subsection (a) of this section shall be filed with the circuit court for the county in which any party resides or has a principal place of business.

(d)

  (1) An applicant for an air quality operating permit may seek judicial review in accordance with Title 10, Subtitle 2 of the State Government Article.

  (2) Except for an applicant as described in paragraph (1) of this subsection, a person is not entitled to a contested case hearing regarding Title V operating permits.

#### Section 2-405

(a)

  (1)

    (i) Whenever the Public Service Commission notifies the Secretary of an application for a certificate of public convenience and necessity under Sec. 7-207 of the Public Utilities Article, the Secretary shall prepare a recommendation in connection with the permit or registration required by this subtitle and the issues the Public Service Commission must consider under Sec. 7-207 of the Public Utilities Article relating to climate change.

    (ii) The recommendation shall be presented at the hearing required by Sec. 7-207 of the Public Utilities Article.

  (2) The recommendation shall identify the requirements of all applicable federal and State environmental laws and standards and shall recommend and evaluate various methods and conditions for compliance.

  (3) If a person files an application for an operating permit under this subtitle simultaneously with an application for a certificate, the Department shall consolidate its procedures for the issuance of the operating permit with the Public Service Commission's proceedings for issuance of the certificate and shall issue the operating permit simultaneously with the certificate unless consolidation would be inconsistent with the procedures set forth in the federal Clean Air Act.

  (4) The Department shall incorporate into the initial operating permit the conditions of the certificate which relate to air quality control.

(b) Subject to judicial review as provided under Title 3, Subtitle 2 of the Public Utilities Article, the decision of the Public Service Commission in connection with a certificate of public convenience and necessity or a filing under Sec. 7-206 of the Public Utilities Article is binding on the Secretary.

(c) When a person that is required to obtain a certificate of public convenience and necessity applies for an operating permit for a generating station under this subtitle, the person shall send a copy of the application, at the time of filing, to the Public Service Commission.

(d) The Department shall consolidate procedures for the issuance of the operating permit with procedures of the Public Service Commission for the approval of the installation of pollution control equipment or a change in the method of operation unless consolidation would be inconsistent with the procedures set forth in the federal Clean Air Act.

(e)

  (1) Before issuing an operating permit which requires the installation of pollution control equipment or a change in the method of operation of the generating station or unit to any person required to obtain a certificate of public convenience and necessity, the Secretary shall notify the applicant and the Public Service Commission and request that the Public Service Commission institute a hearing as required by Sec. 7-206 of the Public Utilities Article.

  (2) In addition to the notification, the Secretary shall file the record of the operating permit proceeding and the Department's reasons for requiring the installation of pollution control equipment or change in method of operation.

(f)

  (1) The Commission shall conduct the hearing required by subsection (e) of this section in the manner set forth in Sec.Sec. 7-205 and 7-207 of the Public Utilities Article.

  (2) The Department shall incorporate the Commission's order rendered in accordance with Sec. 7-206 of the Public Utilities Article.

(g) Except as provided in subsection (h) of this section, the Secretary shall consult with the Public Service Commission concerning the impact of any operating permit, order or injunction on the supply and cost of electricity in this State before issuing any operating permit, issuing any order, or seeking any injunction under this subtitle that:

  (1) Significantly impacts the supply of electricity from a generating station owned or operated by any person required to obtain a certificate of public convenience and necessity; or

  (2) Significantly affects the cost of electricity provided by any person that is required to obtain a certificate of public convenience and necessity.

(h)

  (1) The Secretary need not consult with the Commission before issuing an order or seeking an injunction if the Secretary concludes that the delay during consultation could harm public health or the environment.

  (2) If the Secretary does not consult with the Commission before the issuance of the order or of the seeking of an injunction, the Secretary shall consult with the Commission as soon thereafter as practicable.

(i) The failure of the Department or the Public Service Commission to comply with this section is not a defense to an action against a person to enforce, to obtain, or to punish for noncompliance with any permit, certificate, order, or injunction.

(j) The Secretary may adopt regulations to carry out the provisions of this section. The Secretary may not require a permit nor require the payment of a permit fee in violation of the federal Clean Air Act.

#### Section 2-406

(a) Except as provided in Sec.Sec. 10-14A-03 and 10-14B-03 of the State Government Article, the owner of an incinerator for the disposal of solid waste as defined in Sec. 7-201 or Sec. 9-101 of this article may not operate or cause the incinerator to be operated unless the owner certifies to the Department that any person operating the incinerator has completed a course of instruction, approved by the Department, in the proper and safe operation of the incinerator.

(b) An operator of an incinerator who meets the requirements of subsection (a) of this section shall be present at all times the incinerator is in operation.

(c) The Department shall adopt regulations to implement the provisions of this section.

(d) The Department shall, at a minimum, conduct quarterly inspections of an incinerator that accepts more than 50 tons per day of special medical waste, as defined in Title 26, Subtitle 13, Chapter 11 of the Code of Maryland Regulations, and may undertake other activities as necessary to determine whether the operation of the incinerator meets the requirements of the air quality permit issued under this title.

(e) The Department shall, at a minimum, require the holder of a permit to incinerate special medical waste that accepts more than 50 tons of special medical waste per day to:

  (1) Sample stack emissions under normal operating conditions at least one time per year for dioxin and heavy metals, including barium, cadmium, chromium, lead, nickel, mercury, zinc, arsenic, selenium, and vanadium; and

  (2) Provide the test report to the Department.

(f) The holder of the permit shall pay the Department for the cost of the inspection and any other activity conducted under subsection (d) of this section.

### Subtitle 5. Temporary Fuel Variances

#### Section 2-501

On a case-by-case basis, the Department may grant a temporary fuel variance to any person who is unable to obtain the type of fuel required to comply with any rule, regulation, or order adopted or issued under this title.

#### Section 2-502

(a) A petition for a temporary fuel variance shall be filed with the Department in the form the Department requires.

(b) The petition shall contain:

  (1) The name, address, and telephone number of the petitioner and any other person who is authorized to receive notices on behalf of the petitioner;

  (2) The type and location of the operations for which the temporary fuel variance is sought;

  (3) An explanation of why the petitioner is unable to obtain the necessary required fuel; and

  (4) A description of:

    (i) The process that is causing emissions and the quantity and nature of existing emissions;

    (ii) The specific variance sought, including:

      (1) The starting and ending dates of the requested variance; and

      (2) The type, sulphur content, and quantity of the fuel that the petitioner proposes to use; and

    (iii) The amount and type of:

      (1) The current fuel inventory of the petitioner; and

      (2) Any fuel reserves at any facility that is owned or operated by the petitioner.

(c) The petitioner shall verify the information in the petition.

#### Section 2-503

(a) If a petition for a temporary fuel variance is filed in accordance with Sec. 2-502 of this subtitle, the Department shall schedule a public hearing on the petition to be held as soon as possible but no earlier than 10 days after publication of the notice required by this section.

(b) The petitioner shall publish a prominent notice of the hearing in a newspaper of general circulation in the county where the source for which the temporary fuel variance is sought is located.

(c) Except as otherwise provided by the Department, the notice shall contain:

  (1) The name and address of the petitioner;

  (2) The location and a description of the operations for which the temporary fuel variance is sought;

  (3) A reference to the specific rule, regulation, or order from which the temporary fuel variance is sought;

  (4) A brief statement explaining why the temporary fuel variance is sought;

  (5) A statement that any person may oppose the petition at a public hearing on a specific date and at a specific time and location; and

  (6) Any additional information that the Department requires.

(d)

  (1) The Department may grant an emergency temporary fuel variance before the public hearing if:

    (i) The petitioner shows to the Department an immediate need for the temporary fuel variance; and

    (ii) The Air Management Administration recommends that the Department grant the temporary fuel variance before the hearing.

  (2) If the Department grants an emergency temporary fuel variance before the public hearing:

    (i) The notice of the hearing shall state that an emergency temporary fuel variance has been granted and will be reviewed at the hearing; and

    (ii) The hearing shall be held by the Department within 30 days after the petition is filed.

(e) After the hearing and if the Air Management Administration so recommends, the Department may:

  (1) If a temporary fuel variance has not been previously granted:

    (i) Grant a temporary fuel variance, subject to federal requirements, for a period of not more than 120 days; or

    (ii) Refuse to grant a temporary fuel variance; and

  (2) If an emergency temporary fuel variance has been granted previously:

    (i) Terminate the emergency temporary fuel variance; or

    (ii) Extend the emergency temporary fuel variance, subject to federal regulations, for a period of not more than 120 days from the date the variance was first granted.

#### Section 2-504

The Department may grant an extension of a temporary fuel variance for an additional period of not more than 60 days, if the petitioner gives the Department additional information that justifies the extension.

#### Section 2-505

Except to the extent necessary to give effect to the temporary fuel variance, a petitioner who is granted a temporary fuel variance shall comply with any applicable law, rule, or regulation, and with any order, permit, or other temporary fuel variance previously issued or granted under this title.

### Subtitle 6. Enforcement; Penalties

#### Section 2-601

To the maximum extent possible, the Department shall use the facilities and services of appropriate agencies of political subdivisions to enforce the standards set under this title.

#### Section 2-602

(a) The Department may issue a show-cause order or a corrective order under this section if the Department has reasonable grounds to believe that the person to whom the order is directed has violated:

  (1) This title;

  (2) Any rule or regulation adopted under this title;

  (3) Any plan for compliance issued under this title; or

  (4) Any permit or registration issued under Sec. 2-401 of this title.

(b) The Department is not required to issue a show-cause order or a corrective order before enforcing this title by injunction or civil penalty under this subtitle.

#### Section 2-603

(a) A show-cause order issued under this subtitle shall:

  (1) Specify the provision that allegedly has been violated;

  (2) Describe the nature and extent of the alleged violation;

  (3) Require the person charged to appear at a hearing and show cause why an order requiring corrective action should not be issued; and

  (4) State the date, time, and place of the hearing.

(b) Each show-cause order issued under this subtitle shall be in writing and shall be served:

  (1) Not less than 20 days before the time set for the hearing; and

  (2) As a summons is served under the Maryland Rules or by certified mail.

#### Section 2-604

(a) A corrective order issued under this subtitle shall:

  (1) Specify the provision that allegedly has been violated;

  (2) Describe the nature and extent of the alleged violation;

  (3) Require corrective action within a time specified in the order; and

  (4) State that the person charged will receive a hearing if the person requests the hearing within 10 days after service.

(b) Each corrective order issued under this subtitle shall be in writing and shall be served:

  (1) As a summons is served under the Maryland Rules; or

  (2) By certified mail.

(c) Unless the person charged with a corrective order requests a hearing within 10 days after service, the corrective order becomes a final order.

(d) If the person charged with a corrective order makes a timely request for a hearing under subsection (c) of this section, the Secretary shall:

  (1) Hold a hearing within 20 days after the request is made; and

  (2) Give the person written notice of the date, time, and place of the hearing, at least 10 days before the hearing date.

#### Section 2-605

(a) The Department shall give notice of and hold any hearing held under Sec. 2-603 or Sec. 2-604 of this subtitle in accordance with the Administrative Procedure Act and the requirements of this section.

(b) Before the hearing, the person charged, on request, shall be given an opportunity to examine all information and reports that relate to the alleged offense.

(c) The person charged may be represented at the hearing by counsel.

(d) A person may withhold information about secret processes or methods of manufacture or production from any public hearing under this subtitle, and the Department and its personnel shall keep confidential any such information that it requires, ascertains, or discovers.

(e) Testimony taken at the hearing shall be under oath and recorded.

(f) Copies of the transcript and of any other record of the hearing shall be provided to the person charged at that person's request and expense.

(g)

  (1) The Secretary or a designee of the Secretary may issue subpoenas for any person or evidence and administer oaths in connection with any proceeding under this section.

  (2) At the request and the expense of the person charged, the Secretary or a designee of the Secretary shall subpoena any person or evidence on behalf of the person charged.

  (3) If a person fails to comply with a notice of hearing or a subpoena issued under this section, the circuit court for the county where the person charged resides, on petition of the Secretary, may:

    (i) Compel obedience to the notice or subpoena; or

    (ii) Compel testimony or the production of evidence.

#### Section 2-606

On the basis of the evidence produced at a hearing, the Secretary or the designated hearing officer may issue a corrective or other final order:

(1) Granting an exception from a rule or regulation adopted under this title on such conditions as the Secretary may determine; or

(2) Directing the person charged to comply, within a specified time, with any rule or regulation that the person is found to be violating.

#### Section 2-607

(a)

  (1) Any person aggrieved by a final decision of the Secretary or the designated hearing officer in connection with a show-cause order, a corrective order, or any other final order issued under this subtitle may take a direct judicial appeal.

  (2) The appeal shall be made as provided for judicial review of final decisions in the Administrative Procedure Act.

(b) An appeal under this section does not stay automatically the order from which the appeal is taken.

#### Section 2-608

(a) Within 1 year after the Department issues a show-cause order or a corrective order, the Department shall take final action and attempt to secure compliance with any final order. If the Department has not secured compliance within this period, the Department shall take immediate steps to seek enforcement under Sec. 2-609 of this subtitle.

(b) Nothing in this section prohibits the Department from bringing an action under Sec. 2-609 of this subtitle within 1 year after the Department issues a show-cause order or a corrective order under this subtitle.

#### Section 2-609

(a) The Department may bring:

  (1) An action to enjoin any conduct that violates any provision of this title or any rule, regulation, or order adopted or issued under this title; or

  (2) A civil action to collect a civil penalty under Sec. 2-610 of this subtitle.

(b) The right to bring an action under subsection (a) of this section is in addition to and not instead of the right to bring any other action under that subsection.

(c) For good cause shown, the court that hears a proceeding to enforce an order issued under this subtitle may grant, without further penalty to the violator, a reasonable extension of time to abate the violation.

#### Section 2-609.1

(a) In this section, "approval" means approval for prevention of significant deterioration or approval of new sources in nonattainment areas.

(b)

  (1)

    (i) A person may not knowingly act or fail to act in violation of a condition or requirement imposed on the person by a permit or approval issued under this title.

    (ii) A person may not knowingly fail to obtain a permit or approval that the person knows or should have known is required under this title.

    (iii) A person may not violate a duty imposed on the person by a rule, regulation, order, or approved plan for compliance adopted or issued under this title with knowledge that the person's conduct constitutes a violation of the duty.

  (2) A person who violates a provision of this subsection is guilty of a misdemeanor and on conviction is subject to:

    (i) For a first offense, a fine not exceeding $25,000 or imprisonment not exceeding 1 year or both; or

    (ii) For a violation committed after a first conviction under this section, a fine not exceeding $50,000 or imprisonment not exceeding 2 years or both.

  (3) Each day on which violations occur is a separate violation under this subsection.

  (4) This subsection does not apply to violations enumerated in subsection (c) of this section.

(c) A person is guilty of a misdemeanor and on conviction is subject to a fine not exceeding $10,000 for each day of violation or imprisonment not exceeding 6 months or both if the person:

  (1) Knowingly makes any false statement, representation, or certification in any application, record, report, plan, or other document filed or required to be maintained under this title or any rule, regulation, order, approved plan for compliance, approval, or permit adopted or issued under this title; or

  (2) Knowingly falsifies, tampers with, or renders inaccurate any monitoring device or methods required to be maintained under this title or any rule, regulation, order, approved plan for compliance, approval, or permit adopted or issued under this title.

#### Section 2-610

(a) A person who violates any provision of this title or any rule, regulation, or order adopted or issued under this title is liable for a civil penalty not exceeding $25,000, to be collected in a civil action in the circuit court for any county. Each day a violation continues is a separate violation under this section.

(b) If the Attorney General concurs, the Secretary may compromise and settle any claim for a civil penalty under this section.

(c) If, within 36 months after a civil penalty is compromised and settled under subsection (b) of this section, the person against whom the penalty is imposed satisfies the Secretary that the violation has been eliminated or the order has been satisfied, the Secretary, with the concurrence of the Attorney General, may return to the person not more than 75 percent of the amount of the penalty paid.

#### Section 2-610.1

(a) In addition to any other remedies available at law or in equity and after an opportunity for a hearing which may be waived in writing by the person accused of a violation, the Department may impose a penalty for violation of any provision of this title, Subtitle 4 of Title 6 of this article, or any rule, regulation, order, plan for compliance, registration, or permit adopted or issued under those provisions.

(b) Before taking any action under this section, the Department shall provide the alleged violator with written notice of the proposed action and an opportunity for an informal meeting.

(c)

  (1) The penalty imposed on a person under this section shall be:

    (i) Up to $2,500 for each violation;

    (ii) Not more than $50,000 total for any single administrative hearing; and

    (iii) Assessed with consideration given to:

      (1) The willfulness of the violation, the extent to which the existence of the violation was known to the violator but uncorrected by the violator, and the extent to which the violator exercised reasonable care;

      (2) Any actual harm to human health or to the environment, including injury to or impairment of the air quality or the natural resources of this State;

      (3) The cost of control;

      (4) The nature and degree of injury to or interference with general welfare, health, and property;

      (5) The extent to which the location of the violation, including location near areas of human population, creates the potential for harm to the environment or to human health or safety;

      (6) The available technology and economic reasonableness of controlling, reducing, or eliminating the emissions that caused the violation; and

      (7) The extent to which the current violation is part of a recurrent pattern of the same or similar type of violation committed by the violator.

  (2) Each day a violation occurs is a separate violation under this section.

  (3) Any penalty imposed under this section is payable to this State and collectible in any manner provided at law for the collection of debts.

  (4) If any person who is liable to pay a penalty imposed under this section fails to pay it after demand, the amount, together with interest and any costs that may accrue, shall be:

    (i) A lien in favor of this State on any property, real or personal, of the person; and

    (ii) Recorded in the office of the clerk of court for the county in which the property is located.

#### Section 2-611

(a) A person is not subject to action for a violation of this title or any rule or regulation adopted under this title so long as the person acts in accordance with a plan for compliance that:

  (1) The person has submitted to the Secretary; and

  (2) The Secretary has approved, with or without amendments, on the recommendation of the Air Management Administration.

(b) The Secretary shall act on any plan for compliance within 90 days after the plan for compliance is submitted to the Secretary.

#### Section 2-612

(a) The Secretary may adopt rules and regulations that:

  (1) Are patterned after Sec. 120 of the federal Clean Air Act and the federal regulations adopted under Sec. 120 of the federal Clean Air Act; and

  (2) Specify:

    (i) The circumstances under which a person who violates this title is subject to a noncompliance penalty equal to the economic benefit that accrues to the person because of noncompliance;

    (ii) The method of calculating the noncompliance penalty;

    (iii) The manner of payment of the noncompliance penalty; and

    (iv) The circumstances under which a noncompliance penalty collected under this section is subject to rebate.

(b)

  (1) If a person fails to pay a noncompliance penalty in a timely manner, the Secretary may require the person to pay an additional nonpayment penalty for each quarter that the noncompliance penalty remains unpaid.

  (2) The nonpayment penalty shall equal 20 percent of the total of the person's noncompliance penalties and nonpayment penalties that remain unpaid at the beginning of the quarter.

(c) If a person fails to pay a noncompliance penalty or nonpayment penalty imposed under this section, the Department may bring an action to collect the penalty in the same manner as a civil penalty is collected under Sec. 2-610 of this subtitle.

(d) An action under this section to collect a noncompliance penalty is in addition to and not instead of:

  (1) An action under Sec. 2-609 of this subtitle; or

  (2) Any other relief under this subtitle.

#### Section 2-613

A condition that is caused by an act of God, a strike, a riot, a catastrophe, or a cause over which an alleged violator has no control is not a violation of this title or any standard set or rule or regulation adopted under this title.

#### Section 2-614

The Attorney General shall take charge of, prosecute, and defend on behalf of this State every case arising under the provisions of this subtitle, including the recovery of penalties.

### Subtitle 9. Tax Credits for Employer-Provided Commuter Benefits

#### Section 2-901

(a)

  (1) In this section the following words have the meanings indicated.

  (2)

    (i) "Active transportation" means any self-propelled mode of transportation such as walking, bicycling, or scootering.

    (ii) "Active transportation" includes:

      (1) Bicycling on a bicycle with an electric component; and

      (2) Operating a scooter with an electric component.

  (3) "Active transportation subsidy" means the amount paid by an employer to an employee on a regular basis to cover the costs associated with active transportation, including the costs associated with:

    (i) Bicycle maintenance;

    (ii) Shared bicycle and scooter memberships;

    (iii) Bicycling gear such as helmets, hydration packs, bottles with cages, spare tubes, patch kits, pumps, tire levers, cycling multitools, bike shoes and gloves, saddle bags, reflective accessories, and locks; and

    (iv) Walking gear such as reflective accessories and walking or running shoes.

  (4) "Business entity" means:

    (i) A person conducting or operating a trade or business in Maryland; or

    (ii) An organization operating in Maryland that is exempt from taxation under Sec. 501(c)(3) or (4) of the Internal Revenue Code.

  (5) "Carpool" means using a privately owned or employer-owned vehicle to share a commute with two or more individuals.

  (6)

    (i) "Carpool subsidy" means the amount paid by an employer to an employee on a regular basis to cover the costs of normally operating a vehicle used for carpooling, including employer payment or reimbursement of:

      (1) E-ZPass and toll fees;

      (2) Parking fees; and

      (3) Other costs associated with carpooling, as appropriate.

    (ii) "Carpool subsidy" does not include payment or reimbursement of the cost of maintaining or purchasing a vehicle used for carpooling.

  (7) "Cash in lieu of parking program" means an employer-funded program under which an employer offers to provide a cash allowance to an employee in an amount equal to the parking subsidy that the employer would otherwise pay or incur to provide the employee a parking space.

  (8) "Guaranteed ride home" means immediate transportation provided by a business entity for an employee who:

    (i) Receives any of the commuter benefits described in subsection (b)(1) or (2) of this section or commutes by way of a nonmotorized method of transportation; and

    (ii) Is required to leave work early for illness or other verifiable reason.

  (9) "Instrument" means a pass, token, fare card, voucher, or similar item.

  (10) "Parking subsidy" means:

    (i) The difference between the out-of-pocket amount paid by an employer on a regular basis to secure the availability of an employee parking space not owned by the employer and the price charged to the employee for use of that space; or

    (ii) For parking owned or leased by the employer as an integral part of a larger facility, the fair market value of a parking space provided by the employer for parking commuter vehicles, as determined:

      (1) By considering typical costs paid or incurred by users of nearby equivalent paid parking spaces, by evaluating the annual amortized cost of constructing and operating the parking space divided by the number of workdays per year the space is ordinarily used; or

      (2) By other reasonable and justifiable means.

  (11) "Telework" means a flexible work arrangement under which an employee performs the duties and responsibilities of the employee's position, including other employer-authorized activities, from an approved worksite different from the location at which the employee would otherwise work.

  (12) "Telework subsidy" means the amount paid by an employer to an employee on a regular basis to cover the costs associated with teleworking, including employer payment or reimbursement of:

    (i) Prorated Internet service costs;

    (ii) Prorated computer equipment costs;

    (iii) Prorated telephone equipment costs;

    (iv) Prorated software and supply costs for software and supplies not provided by the employer but necessary for the employee to perform the employee's job responsibilities; and

    (v) Membership costs for co-working space and telework centers.

(b) A business entity may claim a tax credit in an amount equal to 50% of the cost of providing the following commuter benefits to the business entity's employees:

  (1) If provided for the purpose of travel between the employee's residence and place of employment, any portion of the cost of transportation to or from a location in the State in a vehicle or an instrument that is used to offset any portion of the cost of transportation to or from a location in the State in a vehicle:

    (i) With a seating capacity of at least six adult individuals; and

    (ii) At least 80% of the annual mileage of which is incurred:

      (1) For the purpose of transporting individuals between their residences and their places of employment; and

      (2) On trips where the number of employees transported together is at least one-half of that vehicle's adult seating capacity;

  (2) An instrument that:

    (i) Entitles an individual, at no additional cost or at a reduced fare, to transportation to or from a location in the State on a publicly or privately owned mass transit system other than a taxi service; or

    (ii) Is redeemable at a transit pass sales outlet for the purpose stated in item (i) of this item;

  (3) For an employee who resides or works in the State:

    (i) A cash in lieu of parking program; or

    (ii) A guaranteed ride home;

  (4) An employer-funded carpool program under which an employer provides a carpool subsidy to an employee who meets the following requirements:

    (i) The purpose of travel is to travel to and from work, traveling between either an employee's residence and place of employment or a designated meeting place, such as a park and ride lot, and the employee's place of employment;

    (ii) At least two people are traveling together for more than 80% of the trip;

    (iii) Each individual participating in the carpool program is registered with the Commuter Connections program; and

    (iv) The carpooling takes place on a weekday between the hours of 5:00 a.m. and 7:00 p.m.;

  (5) An employer-funded telework program under which an employer provides a telework subsidy to an employee whose teleworking takes place on a weekday between the hours of 5:00 a.m. and 7:00 p.m.;

  (6) An employer-funded active transportation program under which an employer provides an active transportation subsidy to an employee who uses active transportation to or from work on a weekday between the hours of 5:00 a.m. and 7:00 p.m.; or

  (7) An employer-funded multimodal commuter program under which an employer provides a combination of subsidies, payments, or reimbursements under items (1) through (6) of this subsection to an employee who:

    (i) Uses multiple modes of transportation to or from work on a weekday between the hours of 5:00 a.m. and 7:00 p.m.; and

    (ii) If necessary, uses a ride hail service for up to 5 miles of a multimodal commuter trip to connect a commuter to transit, carpool, or vanpool for travel to or from work in the State.

(c) The credit allowed under this section may not exceed $100 per individual employee per month.

(d)

  (1) The credit allowed under this section may not exceed the total tax otherwise payable by the business entity for that taxable year, determined before the application of the credit under this section but after the application of any other credit.

  (2) The unused amount of the credit under this section for any taxable year may not be carried over to any other taxable year.

(e)

  (1) On application by a business entity, the Department of Transportation shall issue a tax credit certificate in the amount allowed under subsection (b) of this section.

  (2) For any fiscal year, the total amount of tax credit certificates issued by the Department of Transportation for the credit allowed under this section may not exceed $1,000,000.

  (3) The Department of Transportation shall approve all applications that qualify for a tax credit certificate under this subsection on a first-come, first-served basis.

  (4) The Department of Transportation shall adopt regulations to establish an application process for the tax credit allowed under this section.

### Subtitle 10. Healthy Air Act

#### Section 2-1001

(a) In this subtitle the following words have the meanings indicated.

(b)

  (1) "Affected facility" means an electricity generating unit in the State that includes a coal fired boiler or indirect heat exchanger that was exempted from the Prevention of Significant Deterioration review under Title 1 of the 1977 federal Clean Air Act.

  (2) "Affected facility" includes:

    (i)

      (H)

        (A) Wagner, units 2 and 3;

    (ii) Subject to Sec. 2-1003(c) of this subtitle, R.P. Smith, units 3 and 4;

    (iii) Morgantown Generating Station, units 1 and 2;

    (iv) Dickerson, units 1, 2, and 3;

    (v)

      (C)

        (P) Crane, units 1 and 2;

    (vi) Chalk Point Generating Station, units 1 and 2; and

    (vii) Brandon Shores, units 1 and 2.

  (3) "Affected facility" does not include any electricity generating unit:

    (i) That operates in combination with equipment used to recover useful thermal energy for industrial, commercial, heating, or cooling purposes through sequential use of energy; or

    (ii) That supplies in any calendar year less than one-half of the electricity generated by such unit to any utility power distribution system for sale.

(c) "Allowance" means:

  (1) One ton of sulfur dioxide that may be bought, sold, traded, or banked for use under the Acid Rain Program in the U.S. Environmental Protection Agency; or

  (2) One ton of oxides of nitrogen that may be bought, sold, traded, or banked for use under the Nitrogen Oxides Budget Trading Program in the U.S. Environmental Protection Agency.

(d) "PJM Region" has the meaning stated under Sec. 7-701 of the Public Utilities Article.

#### Section 2-1002

(a) On or after January 1, 2009, affected facilities collectively may not emit more than 20,216 tons of oxides of nitrogen per year.

(b)

  (1) On or after January 1, 2010, affected facilities collectively may not emit more than 48,618 tons of sulfur dioxide per year.

  (2) The Department may set an interim stage reduction for sulfur dioxide.

(c) On or after January 1, 2012, affected facilities collectively may not emit more than 16,667 tons of oxides of nitrogen per year.

(d) On or after January 1, 2013, affected facilities collectively may not emit more than 37,235 tons of sulfur dioxide per year.

(e)

  (1) The Department shall set emissions budgets for each affected facility to implement the emissions limitations in subsections (a), (b), (c), and (d) of this section.

  (2)

    (i) This paragraph applies to an affected facility that is owned, leased, operated, or controlled by a person that owns, leases, operates, or controls more than one affected facility.

    (ii) An affected facility may emit more than the emissions budget set for the facility under paragraph (1) of this subsection as long as the person owning, leasing, operating, or controlling the affected facility does not exceed the cumulative emissions budget for all of the affected facilities that the person owns, leases, operates, or controls.

  (3) If an affected facility permanently ceases operation, the Department:

    (i) Shall subtract the emissions budget for that affected facility from the emissions limitations established in subsections (a), (b), (c), and (d) of this section; and

    (ii) May not increase existing emissions budgets for all other affected facilities.

(f)

  (1) On or after January 1, 2010, a person that owns, leases, operates, or controls an affected facility shall achieve a minimum 80% capture of mercury for each affected facility, calculated as a rolling 12-month average.

  (2) On or after January 1, 2013, a person that owns, leases, operates, or controls an affected facility shall achieve a minimum 90% capture of mercury for each affected facility, calculated as a rolling 12-month average.

  (3) A person that owns, leases, operates, or controls an affected facility shall demonstrate compliance with this subsection through the direct monitoring of mercury emissions on a continuous basis, according to the requirements of 40 C.F.R. Part 60, Subpart UUUUU.

  (4) The Department shall adopt regulations that establish a procedure to be used to determine a baseline amount of mercury at each affected facility for purposes of calculating the capture rate required under this subsection.

(g)

  (1) In this subsection, "allowance" means one ton of carbon dioxide that may be bought, sold, traded, or banked for use under the Regional Greenhouse Gas Initiative.

  (2) Not later than June 30, 2007, the Governor shall include the State as a full participant in the Regional Greenhouse Gas Initiative among Mid-Atlantic and Northeast states.

  (3) The State may withdraw from the Initiative, as provided in the December 20, 2005 memorandum of understanding of the Initiative, at any time after January 1, 2009, if the General Assembly enacts a law to approve the withdrawal.

  (4) If the Regional Greenhouse Gas Initiative expires and there is a successor organization with the same purposes and goals, the Governor is encouraged to join the State in the successor organization.

  (5) Notwithstanding Sec. 2-107 of this title, all of the proceeds from the sale of Maryland allowances under the Regional Greenhouse Gas Initiative shall be deposited in the Maryland Strategic Energy Investment Fund under Sec. 9-20B-05 of the State Government Article.

  (6) If the State's participation in the Regional Greenhouse Gas Initiative ceases for any reason, the Governor shall report to the General Assembly, in accordance with Sec. 2-1257 of the State Government Article, regarding:

    (i) Why participation ceased; and

    (ii) A plan to reduce carbon dioxide emissions from power plants in the State that considers the use of Maryland grown, native, warm season grasses as a possible method of reducing carbon emissions.

(h) The provisions of this section may not be construed to affect existing or future emissions requirements, standards, or limitations imposed on electricity generators by any other existing or future provision of law that would result in emissions reductions in addition to those required under this section.

(i)

  (1) A person that owns, leases, operates, or controls an affected facility that is subject to the requirements of this section may determine how best to achieve the collective emissions requirements under subsections (a), (b), (c), and (d) of this section.

  (2)

    (i) If a person that owns, leases, operates, or controls an affected facility can demonstrate, with clear and convincing evidence, that the pollution control equipment that is necessary to achieve compliance with the requirements of this section is unattainable, due to a lack of available supply, the Department may reduce or waive any penalty due to the failure to attain compliance until the pollution control equipment becomes attainable.

    (ii) If a person that owns, leases, operates, or controls an affected facility can demonstrate, with clear and convincing evidence, that the pollution control equipment that is necessary to achieve compliance with the requirements of this section has significantly increased in cost due to the limited amount of supply and, as a result, may significantly increase electric rates, the Department may reduce or waive any penalty due to the failure to attain compliance until the supply of pollution control equipment becomes available so as to reasonably lower the cost of the pollution control equipment.

    (iii) In determining whether to reduce or waive any penalty under this paragraph, the Department shall consult with the Public Service Commission as to the availability and cost of the pollution control equipment.

  (3)

    (i) A decision by the Department to reduce or waive any penalty under paragraph (2) of this subsection shall be subject to judicial review by any person who meets the threshold standing requirements under federal constitutional law.

    (ii) Any action to reduce or waive any penalty under paragraph (2) of this subsection shall remain in effect until judicial review is final.

(j)

  (1) If the U.S. Environmental Protection Agency allocates emission allowances for mercury, sulfur dioxide, or oxides of nitrogen to the State, the allowances shall be treated as provided in this subsection.

  (2) The Department:

    (i) May not allow the application of allowances to the compliance of any affected facility with the emissions limitations established under subsections (a) through (d) of this section; but

    (ii) May allow the allowances to be sold or traded to facilities outside the State in accordance with allowance trading programs of the U.S. Environmental Protection Agency.

#### Section 2-1003

(a) Beginning December 1, 2007, and each year thereafter, a person that owns, leases, operates, or controls an affected facility shall submit to the Department, the Department of Natural Resources, and the Public Service Commission, a report that includes:

  (1) Emissions performance results related to compliance with the emissions requirements under Sec. 2-1002 of this subtitle;

  (2) The number of pounds of oxides of nitrogen, sulfur dioxide, mercury, and carbon dioxide emitted during the previous calendar year from the affected facility;

  (3) A current compliance plan; and

  (4) Any other information requested by the Department.

(b) The Department shall review the information submitted under this section to determine whether the actual and proposed modifications and permit and construction schedules are adequate to achieve the emissions requirements under this subtitle and shall make these determinations publicly available on an annual basis.

(c)

  (1) Notwithstanding any other provision of law and subject to paragraph (2) of this subsection, the Department shall allow the R.P. Smith facility, units 3 and 4, to operate without complying with the emissions requirements under this subtitle if PJM Interconnection, Inc. determines that the termination of operation of the facility will adversely affect the reliability of electrical service in the PJM region.

  (2) If the Department allows the R.P. Smith facility, units 3 and 4, to operate without complying with the emissions requirements under this subtitle in accordance with this subsection:

    (i) The facility may not operate at emissions levels greater than the highest level measured at the facility during the calendar years 2000 through 2004; and

    (ii) The Department shall review the operations of the facility and adopt regulations to establish an alternative emissions requirement for the facility.

#### Section 2-1004

By June 30, 2007, the Department shall adopt regulations to implement the provisions of this subtitle.

#### Section 2-1005

(a)

  (1) The allowance penalty provisions of this section are in addition to the administrative and civil penalty provisions provided under Sec.Sec. 2-604, 2-609, 2-610, and 2-610.1 of this title.

  (2) Each one-half ounce of mercury and each ton of sulfur dioxide or nitrogen oxides emitted in excess of the limitations set forth or imposed in accordance with Sec. 2-1002 of this subtitle shall be a separate violation under Sec.Sec. 2-610 and 2-610.1 of this title.

(b) If, in any calendar year during the period from January 1, 2010 through December 31, 2012, a person fails to achieve and maintain full compliance with the emissions limitations established by the Department under Sec. 2-1002(e) of this subtitle, the person shall surrender:

  (1) One sulfur dioxide allowance for each ton of sulfur dioxide emitted in excess of the emission rate limitation; and

  (2) One oxide of nitrogen allowance for every 2 tons of sulfur dioxide emitted in excess of the emission rate limitation.

(c) If, in any calendar year, during the period from January 1, 2009 through December 31, 2011, a person fails to achieve full compliance with the oxides of nitrogen emission limitations in Sec. 2-1002(e) of this subtitle, the person shall surrender one oxide of nitrogen allowance for each ton of oxides of nitrogen emitted in excess of the required emission rate limitation.

(d) A person that surrenders allowances in accordance with subsection (b) or (c) of this section shall surrender the allowances to the Department's surrender account by March 1 of the year following the year in which the person failed to achieve and maintain compliance with the applicable emission limitation.

### Subtitle 11. Low Emissions Vehicle Program

#### Section 2-1101

(a) In this subtitle the following words have the meanings indicated.

(b) "Administration" means the Motor Vehicle Administration.

(c) "Program" means the low emissions vehicle program established under this subtitle.

(d) "Transfer" includes acquire, purchase, sell, and lease.

#### Section 2-1102

(a) In consultation with the Administration and as provided under this subtitle, the Department shall establish by regulation and maintain a low emissions vehicle program that:

  (1) Is authorized by Sec. 177 of the federal Clean Air Act; and

  (2) Is applicable to vehicles of the 2011 model year and each model year thereafter.

(b) As part of the program, the Department shall establish new motor vehicle emissions standards and compliance requirements for each model year included in the program as authorized by Sec. 177 of the federal Clean Air Act.

(c) As part of the compliance requirements established under this subtitle, the Department may adopt by regulation motor vehicle emissions inspection, recall, and warranty requirements.

(d) The Department or any other State agency may not adopt a regulation under this subtitle or any other provision of law that requires the sale or use of California reformulated gasoline in the State.

#### Section 2-1103

To minimize the administrative impact of the program and to minimize the impact of motor vehicle emissions generated out of state on the air quality of this State, the Department:

(1) May adopt California regulations, procedures, and certification data by reference; and

(2) May work in cooperation with, and enter into contracts or agreements with, California, other states, and the District of Columbia to administer certification, in-use compliance, inspection, recall, and warranty requirements for the program.

#### Section 2-1103.1

(a)

  (1) In this section the following words have the meanings indicated.

  (2) "Heavy-duty vehicle" means a vehicle with a gross vehicle weight rating equal to or greater than 14,001 pounds.

  (3) "Medium-duty vehicle" means a vehicle with a gross vehicle weight rating of not less than 8,501 pounds and not more than 14,000 pounds.

(b)

  (1) On or before December 1, 2023, the Department shall adopt regulations establishing requirements for the sale of new zero-emission medium- and heavy-duty vehicles in the State.

  (2) The regulations adopted under paragraph (1) of this subsection shall:

    (i) Update existing regulations;

    (ii) Incorporate by reference the California Air Resources Board's Advanced Clean Trucks regulations, as revised and updated; and

    (iii) Subject to subsection (d) of this section, take effect starting with model year 2027.

(c)

  (1) The Department, in consultation with the Department of Transportation, the Department of General Services, the Maryland Energy Administration, and the Public Service Commission, shall prepare a needs assessment and deployment plan relating to the successful implementation of regulations adopted under this section.

  (2) The needs assessment and deployment plan shall assess and plan for:

    (i) The additional electrical capacity, transmission, distribution demands, and hydrogen fueling demands that will result from implementation of the regulations, and the ability of the State's electric utilities, grid, and hydrogen infrastructure to meet those demands, based on publicly available information and existing analyses;

    (ii) The number of zero-emission medium- and heavy-duty vehicle recharging and refueling stations recommended for implementation of the regulations, and the costs, permitting processes, and timelines for installing those stations;

    (iii) The purchase incentives and other mechanisms recommended for successful implementation of the regulations, including incentives for recharging and refueling stations and related infrastructure, and the existing and potential sources of funding for those incentives and mechanisms; and

    (iv) The timeline, economic feasibility, and models available for transitioning medium- and heavy-duty vehicles in the State vehicle fleet, including State-contracted medium- and heavy-duty vehicles, to zero-emission vehicles.

  (3) On or before December 1, 2024, the Department shall submit the needs assessment and deployment plan to the General Assembly in accordance with Sec. 2-1257 of the State Government Article.

(d) The Department may delay implementation of the regulations authorized under this section by one or more model years if, after consulting with the Department of Transportation, the Department of General Services, the Maryland Energy Administration, and the Public Service Commission, the Department determines, based on criteria identified through the needs assessment and deployment plan, that implementation of the regulations is not yet feasible.

#### Section 2-1104

(a) Except as otherwise provided in this subtitle, the Administration may not title or register, under Title 13 of the Transportation Article, a new motor vehicle that is subject to the provisions of this subtitle if the motor vehicle does not comply with the provisions of this subtitle or any regulation adopted under this subtitle.

(b) Except as otherwise provided in this subtitle, a person may not transfer or attempt to transfer a motor vehicle or motor vehicle engine that is subject to the provisions of this subtitle if the vehicle or engine does not comply with the program.

(c) A person may not procure or attempt to procure, through fraud or misrepresentation, the title or registration of a motor vehicle that is subject to the provisions of this subtitle if the vehicle does not comply with the program.

(d) The Department, in consultation with the Administration, may adopt regulations to prohibit the transfer of new motor vehicles or motor vehicle engines that are not in compliance with the provisions of this subtitle.

#### Section 2-1105

(a) The Department shall, in consultation with the Administration, adopt regulations to exempt motor vehicles from the program.

(b) Exemptions established under subsection (a) of this section shall be limited to:

  (1) Motor vehicles sold for registration out of the State;

  (2) Motor vehicles sold from a licensed dealer to another licensed dealer; and

  (3) Motor vehicles that would be exempted from the low emissions vehicle program established under California law.

(c) For any motor vehicle exempted under subsection (a) of this section, the Administration shall note the exemption on the title of the motor vehicle.

#### Section 2-1106

(a) The enforcement and penalty provisions of Subtitle 6 of this title shall apply to a violation of this subtitle.

(b) Each transfer or attempted transfer of a motor vehicle or motor vehicle engine in violation of Sec. 2-1104(b) of this subtitle shall constitute a separate violation of the provisions of this subtitle.

### Subtitle 12. Greenhouse Gas Emissions Reductions

#### Section 2-1201

The General Assembly finds that:

(1) Greenhouse gases are air pollutants that threaten to endanger the public health and welfare of the people of Maryland;

(2) Global warming poses a serious threat to the State's future health, well-being, and prosperity;

(3) With 3,100 miles of tidally influenced shoreline, Maryland is vulnerable to the threat posed by global warming and susceptible to rising sea levels and flooding, which would have detrimental and costly effects;

(4) The State has the ingenuity to reduce the threat of global warming and make greenhouse gas reductions a part of the State's future by achieving a 25% reduction in greenhouse gas emissions from 2006 levels by 2020 and by preparing a plan to meet a longer-term goal of achieving net-zero statewide greenhouse gas emissions by 2045 in a manner that promotes new "green" jobs, and protects existing jobs and the State's economic well-being;

(5) Studies have shown that energy efficiency programs and technological initiatives consistent with the goal of reducing greenhouse gas emissions can result in a net economic benefit to the State;

(6) In addition to achieving the reduction established under this subtitle, it is in the best interest of the State to act early and aggressively to achieve the Maryland Commission on Climate Change's recommended goals of reducing greenhouse gas emissions by 10% from 2006 levels by 2012 and by 15% from 2006 levels by 2015;

(7) While reductions of harmful greenhouse gas emissions are one part of the solution, the State should focus on developing and utilizing clean energies that provide greater energy efficiency and conservation, such as renewable energy from wind, solar, geothermal, and bioenergy sources;

(8) It is necessary to protect the public health, economic well-being, and natural treasures of the State by reducing harmful air pollutants such as greenhouse gas emissions by using practical solutions that are already at the State's disposal;

(9) Cap and trade regulation of greenhouse gas emissions is most effective when implemented on a federal level;

(10) Because of the need to remain competitive with manufacturers located in other states or countries and to preserve existing manufacturing jobs in the State, greenhouse gas emissions from the manufacturing sector are most effectively regulated on a national and international level; and

(11) Because of the need to remain competitive with other states, greenhouse gas emissions from certain other commercial and service sectors, including freight carriers and generators of electricity, are most effectively regulated on a national level.

#### Section 2-1202

(a) In this subtitle the following words have the meanings indicated.

(b) "Alternative compliance mechanism" means an action authorized by regulations adopted by the Department that achieves the equivalent reduction of greenhouse gas emissions over the same period as a direct emissions reduction.

(c) "Carbon dioxide equivalent" means the measurement of a given weight of a greenhouse gas that has the same global warming potential, measured over a specified period of time, as one metric ton of carbon dioxide.

(d) "Direct emissions reduction" means a reduction of greenhouse gas emissions from a greenhouse gas emissions source.

(e) "Greenhouse gas" includes carbon dioxide, methane, nitrous oxide, hydrofluorocarbons, perfluorocarbons, and sulfur hexafluoride.

(f) "Greenhouse gas emissions source" means a source or category of sources of greenhouse gas emissions that have emissions of greenhouse gases that are subject to reporting requirements or other provisions of this subtitle, as determined by the Department.

(g) "Leakage" means a reduction in greenhouse gas emissions within the State that is offset by a corresponding increase in greenhouse gas emissions from a greenhouse gas emissions source located outside the State that is not subject to a similar state, interstate, or regional greenhouse gas emissions cap or limitation.

(h)

  (1) "Manufacturing" means the process of substantially transforming, or a substantial step in the process of substantially transforming, tangible personal property into a new and different article of tangible personal property by the use of labor or machinery.

  (2) "Manufacturing", when performed by companies primarily engaged in the activities described in paragraph (1) of this subsection, includes:

    (i) The operation of saw mills, grain mills, or feed mills;

    (ii) The operation of machinery and equipment used to extract and process minerals, metals, or earthen materials or by-products that result from the extracting or processing; and

    (iii) Research and development activities.

  (3) "Manufacturing" does not include:

    (i) Activities that are primarily a service;

    (ii) Activities that are intellectual, artistic, or clerical in nature;

    (iii) Public utility services, including gas, electric, water, and steam production services;

    (iv) The production of cement; or

    (v) Any other activity that would not commonly be considered as manufacturing.

(i) "Statewide greenhouse gas emissions" means the total annual emissions of greenhouse gases in the State, measured in metric tons of carbon dioxide equivalents, including all emissions of greenhouse gases from the generation of electricity delivered to and consumed in the State, and line losses from the transmission and distribution of electricity, whether the electricity is generated in-State or imported.

#### Section 2-1203

(a) On or before June 1, 2011, the Department shall publish:

  (1) An inventory of statewide greenhouse gas emissions for calendar year 2006; and

  (2) Based on existing greenhouse gas emissions control measures, a projected "business as usual" inventory for calendar year 2020.

(b) The Department shall review and publish an updated statewide greenhouse gas emissions inventory for calendar year 2011 and for every third calendar year thereafter.

#### Section 2-1204

The State shall reduce statewide greenhouse gas emissions by 25% from 2006 levels by 2020.

#### Section 2-1204.2

The State shall achieve net-zero statewide greenhouse gas emissions by 2045.

#### Section 2-1204.3

(a) The Governor may include the State as a full participant in any regional governmental initiative, agreement, or compact that limits or reduces greenhouse gas emissions from the transportation sector.

(b) On or before November 1, 2019, and each year thereafter for the next 3 years, the Department and the Department of Transportation shall report to the General Assembly, in accordance with Sec. 2-1257 of the State Government Article, on the status of a regional governmental initiative, agreement, or compact that limits or reduces greenhouse gas emissions from the transportation sector, including:

  (1) Whether a regional governmental initiative, agreement, or compact that limits greenhouse gas emissions from the transportation sector exists;

  (2) Whether the Governor has included the State as a full participant in such an initiative, agreement, or compact; and

  (3) Any other information the Department or the Department of Transportation considers relevant.

(c) The State may withdraw from a regional governmental initiative, agreement, or compact entered into under this section if the General Assembly enacts a law to approve the withdrawal.

#### Section 2-1205

(a) The State shall develop plans, adopt regulations, and implement programs that reduce statewide greenhouse gas emissions in accordance with this subtitle.

(b) On or before June 30, 2023, the Department shall:

  (1) Submit a proposed plan that reduces statewide greenhouse gas emissions by 60% from 2006 levels by  2031 to the Governor and General Assembly;

  (2) Make the proposed plan available to the public; and

  (3) Convene a series of public workshops to provide interested parties with an opportunity to comment on the proposed plan.

(c)

  (1) The Department shall, on or before December 31, 2012, adopt a final plan that reduces statewide greenhouse gas emissions by 25% from 2006 levels by 2020.

  (2) The Department shall, on or before December 31, 2023, adopt a final plan that:

    (i) Reduces statewide greenhouse gas emissions by 60% from 2006 levels by  2031; and

    (ii) Sets the State on a path toward achieving net-zero statewide greenhouse gas emissions by 2045.

  (3) The Department shall:

    (i) On or before December 31, 2030, adopt a final plan that achieves net-zero statewide greenhouse gas emissions by 2045; and

    (ii) On or before December 31, 2035, review and, as necessary, revise the final plan to achieve net-zero statewide gas emissions by 2045.

(d) The final plans required under subsection (c) of this section shall include:

  (1) Adopted regulations that implement all plan measures for which State agencies have existing statutory authority; and

  (2) A summary of any new legislative authority needed to fully implement the plans and a timeline for seeking legislative authority.

(e) A final plan developed under this section:

  (1) May not include highway widening or additional road construction as a greenhouse gas emission reduction measure;

  (2) May include the use of carbon capture, electric distribution and transmission infrastructure improvements, and storage technology as a greenhouse gas emission reduction measure only if the technology has been scientifically proven to achieve verifiable carbon reductions;

  (3) Shall use the global warming potential for methane over a 20-year time horizon, as accepted in the most recent assessment of the Intergovernmental Panel on Climate Change, in estimating the State's greenhouse gas emissions reductions;

  (4) Shall include policy recommendations to ensure the continued operation of Maryland's existing zero carbon emission electric generators through current operating licenses;

  (5) Shall include specific estimates of the greenhouse gas emissions reductions that could be achieved through the expansion of mass transit options; and

  (6) Shall include specific estimates of the reductions expected from each greenhouse gas emissions reduction measure included in the plan.

(f) In developing and adopting a final plan to reduce statewide greenhouse gas emissions, the Department shall consult with State and local agencies as appropriate.

(g)

  (1) Paragraphs (2) and (3) of this subsection apply only to persons who engaged in manufacturing in 2023.

  (2)

    (i) Unless required by federal law or regulations or existing State law, regulations adopted by State agencies to implement a final plan may not:

      (1) Require any manufacturer to reduce greenhouse gas emissions below the emissions levels for that manufacturer in 2023;

      (2) Cause an increase in costs to a manufacturer that are significantly beyond the costs that were incurred by that manufacturer in 2023; or

      (3) Require any manufacturer that is engaged in the creation of renewable energy components or technology aimed at greenhouse gas emissions reductions to reduce greenhouse gas emissions.

    (ii) Subparagraph (i) of this paragraph may not be construed to exempt greenhouse gas emissions sources in the State's manufacturing sector from the obligation to comply with:

      (1) Greenhouse gas emissions monitoring, recordkeeping, and reporting requirements for which the Department had existing authority under Sec. 2-301(a) of this title on or before October 1, 2009; or

      (2) Greenhouse gas emissions reductions required of the manufacturing sector as a result of the State's implementation of the Regional Greenhouse Gas Initiative.

  (3) A regulation adopted by a State agency for the purpose of reducing greenhouse gas emissions in accordance with this section may not be construed to result in a significant increase in costs to the State's manufacturing sector unless the source would not incur the cost increase but for the new regulation.

(h)

  (1) As part of the consideration of any regulation of the production of cement under this section, the Department shall consider:

    (i) The extent to which cement manufacturing is an energy intensive and trade exposed industry;

    (ii) Credit for early action investments made by cement producers to reduce emissions or for the manufacturing of alternative materials that result in greenhouse gas emissions reductions;

    (iii) The adoption of policies that encourage, facilitate, and offer financial incentives for the use of alternative fuel sources;

    (iv) The availability and cost of mature greenhouse gas abatement technologies; and

    (v) Advancing policies that provide financial incentives to offset the costs of installing and transitioning to greenhouse gas emissions abatement technologies, including the manufacturing of materials and technology that results in greenhouse gas emissions reductions.

  (2) In considering the feasibility of regulation and the items under paragraph (1) of this subsection, the Department shall consult with impacted cement producers and other stakeholders.

#### Section 2-1206

In developing and implementing the plans required by Sec. 2-1205 of this subtitle, the Department shall:

(1) Analyze the feasibility of measures to comply with the greenhouse gas emissions reductions required by this subtitle;

(2) Consider the impact on rural communities of any transportation related measures proposed in the plans;

(3) Provide that a greenhouse gas emissions source that voluntarily reduces its greenhouse gas emissions before the implementation of this subtitle shall receive appropriate credit for its early voluntary actions;

(4) Provide for the use of offset credits generated by alternative compliance mechanisms executed within the State, including carbon sequestration projects, to achieve compliance with greenhouse gas emissions reductions required by this subtitle;

(5) Ensure that the plans do not decrease the likelihood of reliable and affordable electrical service and statewide fuel supplies;

(6) Consider whether the measures would result in an increase in electricity costs to consumers in the State;

(7) Consider the impact of the plans on the ability of the State to:

  (i) Attract, expand, and retain commercial aviation services; and

  (ii) Conserve, protect, and retain agriculture;

(8) Ensure that the greenhouse gas emissions reduction measures implemented in accordance with the plans:

  (i) Are implemented in an efficient and cost-effective manner;

  (ii) Do not disproportionately impact rural or low-income, low- to moderate-income, or minority communities or any other particular class of electricity ratepayers;

  (iii) Minimize leakage;

  (iv) Are quantifiable, verifiable, and enforceable;

  (v) Directly cause no loss of existing jobs in the manufacturing sector;

  (vi) Produce a net economic benefit to the State's economy and a net increase in jobs in the State, as compared with a no-action scenario; and

  (vii) Encourage new employment opportunities in the State related to energy conservation, alternative energy supply, and greenhouse gas emissions reduction technologies, particularly in areas of the State experiencing  a combination of urban heat and climate   impacts;

(9) Incorporate top-down methane emissions data acquired through aircraft observations; and

(10) Use the best available scientific information, as included in the most recent assessments and reports of the Intergovernmental Panel on Climate Change.

#### Section 2-1207

(a)

  (1) An institution of higher education in the State shall conduct an independent study of the economic impact of requiring greenhouse gas emissions reductions from the State's manufacturing sector.

  (2) The Maryland Commission on Climate Change shall oversee the independent study required by this section.

(b) On or before October 1, 2022, the institution of higher education responsible for the independent study shall complete and submit the study to the Governor and, in accordance with Sec. 2-1257 of the State Government Article, the General Assembly.

#### Section 2-1208

(a) A greenhouse gas emissions source in the State's manufacturing sector that implements a voluntary greenhouse gas emissions reduction plan that is approved by the Department on or before January 1, 2012, may be eligible to receive voluntary early action credits under any future State law requiring greenhouse gas emissions reductions from the manufacturing sector.

(b) A voluntary greenhouse gas emissions reduction plan may include measures to:

  (1) Reduce energy use and increase process efficiency; and

  (2) Facilitate industry-wide research and development directed toward future measures to reduce greenhouse gas emissions.

#### Section 2-1209

(a) The Department shall prepare an annual report on the greenhouse gas emissions reductions achieved as a result of the adoption of electric vehicles in the State.

(b) On or before December 31, 2027, and each December 31 thereafter, the Department shall submit the report required under subsection (a) of this section, in accordance with Sec. 2-1257 of the State Government Article, to the Senate Committee on Education, Energy, and the Environment and the House Environment and Transportation Committee.

#### Section 2-1210

On review of the study required under Sec. 2-1207 of this subtitle, and the reports required under Sec. 2-1211 of this subtitle, the General Assembly:

(1) May act to maintain, revise, or eliminate the greenhouse gas emissions reductions required under Sec.Sec. 2-1204.1 and 2-1204.2 of this subtitle; and

(2) Shall consider whether to continue the special manufacturing provisions in Sec. 2-1205(f)(1) of this subtitle.

#### Section 2-1211

The Department shall monitor implementation of the plans required under Sec. 2-1205 of this subtitle and shall submit a report, on or before October 1, 2022, and every 5 years thereafter, to the Governor and, in accordance with Sec. 2-1257 of the State Government Article, the General Assembly that describes the State's progress toward achieving:

(1) The reductions in greenhouse gas emissions required under this subtitle, or any revisions conducted in accordance with Sec. 2-1210 of this subtitle; and

(2) The greenhouse gas emissions reductions needed by 2050 in order to avoid dangerous anthropogenic changes to the Earth's climate system, based on the predominant view of the scientific community at the time of the latest report.

#### Section 2-1212

(a)

  (1) It is the policy of the State to support and encourage public and private tree-planting efforts, with a goal of planting and helping to maintain in the State 5,000,000 sustainable trees of species native to the State by the end of calendar year 2031.

  (2) This goal:

    (i) Is in addition to any trees projected to be planted under programs described in the 2019 Draft Greenhouse Gas Emissions Reduction Plan; and

    (ii) Includes native tree plantings accomplished through State programs and through the efforts of nonprofit and private organizations.

  (3) It is the intent of the General Assembly that at least 500,000 of the 5,000,000 trees called for by this subsection should be planted in an "underserved area", as defined in Sec. 8-1911 of the Natural Resources Article.

(b)

  (1) The Department:

    (i) Is responsible for tracking the State's progress toward meeting the goals established under subsection (a) of this section; and

    (ii) Shall serve as the lead agency to receive data from:

      (1) The Maryland Department of Agriculture regarding tree plantings accomplished through the Conservation Reserve Enhancement Program and other agricultural initiatives;

      (2) The Department of Natural Resources regarding tree plantings accomplished through the Chesapeake and Atlantic Coastal Bays 2010 Trust Fund, the Mel Noland Woodland Incentives Fund, and other forestry initiatives; and

      (3) The Chesapeake Bay Trust regarding tree plantings accomplished through the Urban Trees Program.

  (2)

    (i) There is a 5 Million Tree Program Coordinator within the Department.

    (ii) The primary responsibility of the Program Coordinator is to promote, facilitate, and align the State's efforts to achieve the goals established under subsection (a)(1) of this section.

    (iii) On or before December 1 each year, the Program Coordinator shall:

      (1) Consolidate data on tree plantings from multiple sources; and

      (2) Report, in accordance with Sec. 2-1257 of the State Government Article, to the Senate Education, Health, and Environmental Affairs Committee and the House Environment and Transportation Committee on the State's progress toward meeting the goals established under subsection (a) of this section.

(c) The Governor shall formally pledge the State's commitment to achieving the goals established under subsection (a) of this section through the U.S. Chapter of the World Economic Forum's One Trillion Trees Initiative.

#### Section 2-1213

(a) On or before July 1, 2026, and every 6 months thereafter, the Department shall report to the General Assembly, in accordance with Sec. 2-1257 of the State Government Article, on:

  (1) Any changes in federal environmental policy that have been deemed legally valid by a final decision of a federal court, including any change that:

    (i) Rescinds a finding that the greenhouse gas emissions from new motor vehicles and engines cause air pollution that may endanger public health or welfare;

    (ii) Repeals greenhouse gas emissions standards for motor vehicles and engines;

    (iii) Repeals greenhouse gas emissions standards for stationary sources; or

    (iv) Impacts the Department's administration of any federally delegated authority; and

  (2) If there has been a change in federal environmental policy that is required to be reported under paragraph (1) of this section, the steps the State is taking in response to the change.

(b)

  (1) The initial report submitted under subsection (a) of this section shall describe any changes in federal environmental policy that have occurred since January 1, 2024.

  (2) Each report submitted after the initial report shall describe any changes in federal environmental policy that have occurred during the immediately preceding 6 month period.

### Subtitle 13. Maryland Commission on Climate Change

#### Section 2-1301

(a) There is a Commission on Climate Change in the Department to advise the Governor and General Assembly on ways to mitigate the causes of, prepare for, and adapt to the consequences of climate change.

(b) The Department and the Department of Natural Resources shall jointly staff the Commission.

#### Section 2-1302

(a) The Commission's membership shall consist of the following members:

  (1) One member of the House of Delegates, appointed by the Speaker of the House;

  (2) One member of the Senate, appointed by the President of the Senate;

  (3) The Comptroller, or the Comptroller's designee;

  (4) The Secretary of the Environment, or the Secretary's designee;

  (5) The Secretary of Agriculture, or the Secretary's designee;

  (6) The Secretary of Natural Resources, or the Secretary's designee;

  (7) The Secretary of Planning, or the Secretary's designee;

  (8) The State Superintendent of Schools, or the State Superintendent's designee;

  (9) The Secretary of Transportation, or the Secretary's designee;

  (10) The Secretary of General Services, or the Secretary's designee;

  (11) The Secretary of Emergency Management, or the Secretary's designee;

  (12) The Director of the Maryland Energy Administration, or the Director's designee;

  (13) The People's Counsel, or the People's Counsel's designee;

  (14) The President of the University of Maryland Center for Environmental Science, or the President's designee;

  (15) The Chair of the Critical Area Commission for the Chesapeake and Atlantic Coastal Bays, or the Chair's designee;

  (16) The Chair of the Public Service Commission, or the Chair's designee;

  (17) One member appointed by the Farm Bureau representing the agriculture community;

  (18) One member appointed by the Maryland Association of Counties and one member appointed by the Maryland Municipal League to represent local governments;

  (19) One member appointed by the President of the Senate and one member appointed by the Speaker of the House of Delegates to represent the business community;

  (20) One member appointed by the President of the Senate and one member appointed by the Speaker of the House of Delegates to represent environmental nonprofit organizations;

  (21) One member appointed by the President of the Senate and one member appointed by the Speaker of the House to represent organized labor, one of whom shall represent the building or construction trades and one of whom shall represent the manufacturing industry;

  (22) One member appointed by the President of the Senate and one member appointed by the Speaker of the House to represent philanthropic organizations;

  (23) One climate change expert appointed by the Governor representing a university located in Maryland; and

  (24) One public health expert appointed by the Governor representing a university located in Maryland.

(b) The Secretary of the Environment or the Secretary's designee shall chair the Commission.

(c)

  (1) Subject to paragraph (2) of this subsection, the term of  an appointed member  is 2 years.

  (2) The Governor, President of the Senate, and Speaker of the House of Delegates shall stagger the terms of the initial appointed members.

  (3) At the end of a term, a member continues to serve until a successor is appointed and qualifies.

  (4) A member who is appointed after a term has begun serves only for the remainder of that term and until a successor is appointed and qualifies.

  (5) The Governor may remove an appointed member for incompetence, misconduct, or failure to perform the duties of the position.

(d) A member of the Commission may not receive compensation, but is entitled to reimbursement for expenses under the Standard State Travel Regulations, as provided in the State budget.

#### Section 2-1303

(a) The Commission shall establish:

  (1) A Scientific and Technical Working Group;

  (2) A Greenhouse Gas Mitigation Working Group;

  (3) An Adaptation and Response Working Group;

  (4) An Education, Communication, and Outreach Working Group;

  (5) Subject to Sec. 2-1303.1 of this subtitle, a Just Transition Employment and Retraining Working Group;

  (6) Subject to Sec. 2-1303.2 of this subtitle, an Energy Industry Revitalization Working Group;

  (7) Subject to Sec. 2-1303.3 of this subtitle, an Energy Resilience and Efficiency Working Group; and

  (8) Subject to Sec. 2-1303.4 of this subtitle, a Solar Photovoltaic Systems Recovery, Reuse, and Recycling Working Group.

(b) The Commission may establish other working groups as needed.

(c) The Chair of the Commission shall appoint working group members who represent both public and private interests in climate change, including representatives of:

  (1) Academic institutions;

  (2) Renewable and traditional energy providers;

  (3) Environmental organizations;

  (4) Government agencies;

  (5) Labor organizations; and

  (6) Business interests, including the insurance and real estate industries.

(d) The Commission shall prioritize working group actions, including:

  (1) Strengthening and maintaining existing State climate action plans;

  (2) Developing broad public and private partnerships with local, State, and federal agencies;

  (3) Communicating with and educating citizens about the urgency of acting to reduce the impacts of climate change;

  (4) Maintaining an inventory of Maryland's greenhouse gas emissions sources and carbon sinks;

  (5) Addressing any disproportionate impacts of climate change on low-income and vulnerable communities;

  (6) Assessing the impacts that climate change may have on the State's economy, revenues, and investment decisions;

  (7) Assessing the needs for utilities and other public and private service providers throughout the State to adjust their operating practices and investment strategies to mitigate the impacts of climate change on their customers and the public;

  (8) Assessing the impacts that climate change may have on agriculture in the State;

  (9) Recommending short- and long-term strategies and initiatives to better mitigate, prepare for, and adapt to the consequences of climate change;

  (10) Assisting local governments in supporting community-scale climate vulnerability assessments and the development and integration of specific strategies into local plans and ordinances;

  (11) Establishing comprehensive and accountable annual working group work plans that set annual goals and performance benchmarks and prioritize new and existing climate change mitigation and preparedness actions and initiatives;

  (12) Maintaining a comprehensive action plan, with 5-year benchmarks, to achieve science-based reductions in Maryland's greenhouse gas emissions;

  (13) Convening regular working group and full Commission meetings to ensure that sufficient progress is being made across all sectors and communities in Maryland; and

  (14) Considering other related matters as the Commission determines to be necessary.

#### Section 2-1303.1

(a) In this section, "Working Group" means the Just Transition Employment and Retraining Working Group of the Commission.

(b) The Commission shall establish a Just Transition Employment and Retraining Working Group.

(c) The Working Group shall include:

  (1) Two members of the Senate of Maryland, appointed by the President of the Senate;

  (2) Two members of the House of Delegates, appointed by the Speaker of the House;

  (3) The Secretary, or the Secretary's designee;

  (4) The Secretary of Labor, or the Secretary's designee;

  (5) The Secretary of Transportation, or the Secretary's designee;

  (6) One electrical worker, selected by the International Brotherhood of Electrical Workers;

  (7) One construction laborer, selected by the Baltimore Washington Laborers' District Council;

  (8) Two representatives of the building and construction trade industry, selected by the Baltimore-DC Metro Building and Construction Trades Council;

  (9) Four labor representatives, three selected by the Maryland State AFL-CIO and one selected by the Mid-Atlantic Pipe Trades Association;

  (10) One representative of the energy efficiency industry, selected by the Secretary;

  (11) Two representatives of environmental organizations, selected by the Governor;

  (12) One representative of the solar energy industry, selected by the Chesapeake Solar and Storage Association;

  (13) One representative of the wind energy industry, selected by the American Clean Power Association;

  (14) One representative of the geothermal energy industry selected by the Maryland Geothermal Association;

  (15) Two representatives of registered apprenticeship sponsors, one selected by the Maryland Chapters of the Associated Builders and Contractors and one selected by the Baltimore-DC Metro Building and Construction Trades Council;

  (16) One community college representative, selected by the Maryland Association of Community Colleges;

  (17) One representative who is a veteran, selected by the Maryland Military Coalition;

  (18) One representative who is a formerly incarcerated individual, selected by the Legal Action Center National H.I.R.E. Networks;

  (19) Two at-large representatives who are women in affected industries, selected by the Governor;

  (20) Two representatives selected by the Maryland State Chapter of the NAACP;

  (21) One heating oil or propane distributor in the State, selected by the Secretary;

  (22) One representative of municipal electric utilities, selected by the Public Service Commission; and

  (23) One representative of investor-owned utilities, selected by the Public Service Commission.

(d) The Secretary shall designate the chair of the Working Group.

(e) The Department shall provide staff for the Working Group.

(f) A member of the Working Group:

  (1) May not receive compensation as a member of the Working Group; but

  (2) Is entitled to reimbursement for expenses under the Standard State Travel Regulations, as provided in the State budget.

(g) The Working Group shall:

  (1) Advise the Commission on issues and opportunities for workforce development and training related to energy efficiency measures, renewable energy, and other clean energy technologies, with specific focus on training and workforce opportunities for:

    (i) Segments of the population that may be underrepresented in the clean energy workforce, such as veterans, women, and formerly incarcerated individuals; and

    (ii) Dislocated workers affected by the downsizing of fossil fuel industries;

  (2) Identify:

    (i) Energy-intensive industries and related trades;

    (ii) Sites of electric generating facilities that may be closed as a result of a transition to renewable energy sources;

    (iii) Sector-specific impacts of the State's greenhouse gas emissions reduction plan on the State's current workforce;

    (iv) Avenues to maximize the skills and expertise of Maryland workers in the new energy economy;

    (v) Challenges and opportunities related to minimizing adverse employment and financial impacts on displaced workers and their communities through environmental policies conditioned on the fair distribution of costs and benefits; and

    (vi) Resources necessary to protect workers from economic insecurity, including options for maintaining or supplementing retirement and health care benefits for dislocated workers affected by the downsizing of fossil fuel industries;

  (3) Advise the Commission on the potential impacts of carbon leakage risks on Maryland industries and local host communities, including the impact of any potential greenhouse gas emissions reduction measures on the competitiveness of Maryland businesses and industry; and

  (4) Conduct a study of:

    (i) The number of jobs created to counter climate impacts, including in the energy sector, building sector, transportation sector, and working lands sector;

    (ii) The projected inventory of jobs needed and skills and training required to meet future demand for jobs to counter climate impacts;

    (iii) Workforce disruption due to community changes caused by the transition to a low-carbon economy; and

    (iv) Strategies for targeting workforce development and job creation in fenceline communities that have historically borne the brunt of hosting carbon polluters.

(h) On or before December 31, 2023, the Working Group shall report to the Commission and, in accordance with Sec. 2-1257 of the State Government Article, the General Assembly on the findings of the study required under subsection (g)(4) of this section.

#### Section 2-1303.2

(a) In this section, "Working Group" means the Energy Industry Revitalization Working Group of the Commission.

(b) The Commission shall establish an Energy Industry Revitalization Working Group.

(c) The Working Group shall include:

  (1) One member of the Senate of Maryland, appointed by the President of the Senate;

  (2) One member of the House of Delegates, appointed by the Speaker of the House;

  (3) The Secretary, or the Secretary's designee;

  (4) The Secretary of Commerce, or the Secretary's designee;

  (5) One representative of the National Federation of Independent Business, selected by the State director of the National Federation of Independent Business;

  (6) One representative of the Maryland Chamber of Commerce, selected by the President and CEO of the Maryland Chamber of Commerce;

  (7) One representative of the Maryland Small Business Development Center, selected by the regional directors of the Maryland Small Business Development Center; and

  (8) Six representatives of the energy industry, including:

    (i) Two representatives selected by the Secretary;

    (ii) Two representatives selected by the Public Service Commission; and

    (iii) Two representatives selected by the Director of the Maryland Energy Administration.

(d) The Secretary shall designate the chair of the Working Group.

(e) The Department shall provide staff for the Working Group.

(f) A member of the Working Group:

  (1) May not receive compensation as a member of the Working Group; but

  (2) Is entitled to reimbursement for expenses under the Standard State Travel Regulations, as provided in the State budget.

(g) The Working Group shall:

  (1) Advise the Commission on issues and opportunities related to small business revitalization and the transition to renewable energy's effects on small businesses;

  (2) Conduct a study of the impacts of transitioning to renewable energy; and

  (3) Include in the study:

    (i) The number of small businesses impacted by the transition to renewable energy;

    (ii) The projected cost of transitioning existing small businesses to renewable energy;

    (iii) The economic impact of the transition to renewable energy and new energy sources, including supply chain impacts;

    (iv) An analysis that identifies energy generating facilities that may close as a result of a transition to renewable energy, including issues and opportunities related to repurposing the sites; and

    (v) An analysis that identifies or estimates, to the extent practicable:

      (1) The timing and location of facility closures and layoffs in nonrenewable energy industries;

      (2) The impact of facility closures and layoffs on affected workers, businesses, and communities; and

      (3) How the Commission can most effectively respond to the impact of facility closures and layoffs, including the potential to:

      (A) Compensate businesses that closed due to the effects of the transition to renewable energy; and

      (B) Incentivize businesses to transition to renewable energy through subsidies.

(h) On or before December 31, 2023, the Working Group shall report to the Commission and, in accordance with Sec. 2-1257 of the State Government Article, the General Assembly on the findings of the study required under subsection (g) of this section.

#### Section 2-1303.3

(a) In this section, "Working Group" means the Energy Resilience and Efficiency Working Group of the Commission.

(b) The Commission shall establish an Energy Resilience and Efficiency Working Group.

(c) The Working Group shall include:

  (1) One member of the Senate of Maryland, appointed by the President of the Senate;

  (2) One member of the House of Delegates, appointed by the Speaker of the House;

  (3) The Secretary, or the Secretary's designee;

  (4) The Director of the Maryland Energy Administration;

  (5) Three representatives of the nuclear energy industry, selected by the Director of the Maryland Energy Administration;

  (6) Three representatives of the energy transmission infrastructure industry, selected by the Public Service Commission; and

  (7) Three representatives of the energy storage and backup industry, selected by the Secretary.

(d) The Secretary shall designate the chair of the Working Group.

(e) The Department shall provide staff for the Working Group.

(f) A member of the Working Group:

  (1) May not receive compensation as a member of the Working Group; but

  (2) Is entitled to reimbursement for expenses under the Standard State Travel Regulations, as provided in the State budget.

(g) The Working Group shall:

  (1) Advise the Commission on issues and opportunities related to energy infrastructure improvements, transmission efficiency improvements, and battery backup viability; and

  (2) Conduct a study of:

    (i) Methods for the State to encourage electricity storage technology research;

    (ii) Methods of increasing the security of the electricity grid by supporting distributed renewable energy projects and energy storage with the potential to supply electric energy to critical facilities during a widespread power outage;

    (iii) Potential electric grid distribution transformation projects;

    (iv) The potential to develop clean energy resources on previously developed project sites; and

    (v) The lifespan and viability of energy facilities in the State that do not emit greenhouse gas, including:

      (1) Solar energy generating facilities;

      (2) Nuclear energy generating facilities;

      (3) Wind energy generating facilities;

      (4) Geothermal energy generating facilities;

      (5) Hydroelectric energy generating facilities; and

      (6) Biofuel energy generating facilities.

(h) On or before December 31, 2023, the Working Group shall report to the Commission and, in accordance with Sec. 2-1257 of the State Government Article, the General Assembly on the findings of the study required under subsection (g)(2) of this section.

#### Section 2-1303.4

(a) In this section, "Working Group" means the Solar Photovoltaic Systems Recovery, Reuse, and Recycling Working Group of the Commission.

(b) The Commission shall establish a Solar Photovoltaic Systems Recovery, Reuse, and Recycling Working Group.

(c) The Working Group shall include:

  (1) One member of the Senate of Maryland, appointed by the President of the Senate;

  (2) One member of the House of Delegates, appointed by the Speaker of the House;

  (3) The Secretary, or the Secretary's designee;

  (4) The Director of the Maryland Energy Administration, or the Director's designee;

  (5) The Secretary of Natural Resources, or the Secretary's designee;

  (6) One representative of the Public Service Commission, selected by the Chair of the Commission;

  (7) One representative of the Chesapeake Climate Action Network, selected by the Chesapeake Climate Action Network;

  (8) The following members, appointed by the Governor:

    (i) One representative of an investor-owned electric company with customers in the State;

    (ii) One representative of the utility-scale solar industry;

    (iii) One representative of the community solar energy industry;

    (iv) One representative of the distributed generation solar industry;

    (v) One representative with expertise in solar photovoltaic systems recovery, reuse, and recycling; and

    (vi) One individual with expertise in decommissioning energy-related projects; and

  (9) Any other individual identified by the Commission.

(d) The Secretary shall designate the chair of the Working Group.

(e) The Department shall provide staff for the Working Group.

(f) A member of the Working Group:

  (1) May not receive compensation as a member of the Working Group; but

  (2) Is entitled to reimbursement for expenses under the Standard State Travel Regulations, as provided in the State budget.

(g) The Working Group shall:

  (1) Review solar photovoltaic systems currently used in the State, including:

    (i) Examining the expected economically productive life cycle of the systems;

    (ii) Reviewing the materials that are used, have been used, or may be used in solar photovoltaic systems sold in the State, including identifying materials that can be recycled or that exhibit any characteristics of hazardous waste under State or federal law; and

    (iii) Identifying the number of solar photovoltaic systems in use and estimating the potential impacts on the State's landfill capacity of disposing the systems in the State's landfills;

  (2) Review other programs on solar photovoltaic systems recycling, disposal, and decommissioning;

  (3) Identify ongoing and recent studies related to solar photovoltaic systems recycling, life-cycle analysis, and end-of-life programs;

  (4) Review industry-approved best practices for managing end-of-life solar photovoltaic systems and their components, including the extent to which the systems and components may be:

    (i) If not damaged or in need of repair, reused for a similar purpose;

    (ii) If not substantially damaged, refurbished and reused for a similar purpose;

    (iii) Recycled and the components recovered for reuse;

    (iv) For components that do not exhibit any characteristics of hazardous waste under State or federal law, safely disposed of in a construction and demolition or municipal solid waste landfill; and

    (v) For components that exhibit any characteristics of hazardous waste under State or federal law, safely disposed of in accordance with State and federal requirements;

  (5) Perform an economic analysis to determine the potential impact of solar photovoltaic systems recovery, reuse, and recycling on ratepayers, including a comparison to the economic impact on ratepayers of decommissioning, storing waste, and other costs associated with the end of life of other forms of energy generation;

  (6) Perform an impact assessment to examine the environmental impacts of various solar photovoltaic systems' end-of-life scenarios, including the scenarios specified under item (4) of this subsection, compared to the life-cycle environmental impacts of nonsolar energy generation sources in the State, including the environmental impacts of decommissioning, disposal, and long-term waste storage;

  (7) Perform an impact assessment to examine the environmental and economic benefits of generating energy from solar photovoltaic systems, including a comparison to the environmental and economic benefits of nonsolar energy generation sources in the State;

  (8) Examine and recommend infrastructure needed to develop a practical, effective, and cost-efficient method for collecting and transporting end-of-life solar photovoltaic modules for reuse, refurbishment, recycling, or disposal;

  (9) Analyze whether financing mechanisms, including advance recovery fees, recycling and disposal fees, and product stewardship programs, are necessary to ensure proper end-of-life management of solar photovoltaic systems; and

  (10) Recommend financing mechanisms analyzed under item (9) of this subsection that best support a circular economy approach.

(h) On or before December 31, 2023, the Working Group shall report its findings and recommendations to the Commission and, in accordance with Sec. 2-1257 of the State Government Article, the General Assembly.

#### Section 2-1304

(a) On or before December 15 of each year, the Commission shall report to the Governor and General Assembly, in accordance with Sec. 2-1257 of the State Government Article, on the status of the State's efforts to mitigate the causes of, prepare for, and adapt to the consequences of climate change, including future plans and recommendations for legislation, if any, to be considered by the General Assembly.

(b) The report due on or before December 15, 2023, and each subsequent report shall include an analysis, prepared by the Department, of:

  (1) The total amount of State money spent on measures to reduce greenhouse gases and, to the extent practicable, co-pollutants, during the immediately preceding fiscal year; and

  (2) The percentage of that funding that benefited disproportionately affected communities identified according to the methodology adopted by the Department under Sec. 1-702 of this article.

#### Section 2-1305

(a)

  (1) Each State agency shall review its planning, regulatory, and fiscal programs to identify and recommend actions to more fully integrate the consideration of Maryland's greenhouse gas reduction goal and the impacts of climate change.

  (2) The review shall include the consideration of:

    (i) Sea level rise;

    (ii) Storm surges and flooding;

    (iii) Increased precipitation and temperature; and

    (iv) Extreme weather events.

(b) Each State agency shall identify and recommend specific policy, planning, regulatory, and fiscal changes to existing programs that do not currently support the State's greenhouse gas reduction efforts or address climate change.

(c)

  (1) The following State agencies shall report annually on the status of programs that support the State's greenhouse gas reduction efforts or address climate change, in accordance with Sec. 2-1257 of the State Government Article, to the Commission and the Governor:

    (i) The Department;

    (ii) The Department of Agriculture;

    (iii) The Department of General Services;

    (iv) The Department of Housing and Community Development;

    (v) The Department of Natural Resources;

    (vi) The Department of Planning;

    (vii) The Department of Transportation;

    (viii) The Maryland Energy Administration;

    (ix) The Maryland Insurance Administration;

    (x) The Public Service Commission; and

    (xi) The University of Maryland Center for Environmental Science.

  (2) The report required in paragraph (1) of this subsection shall include:

    (i) Program descriptions and objectives;

    (ii) Implementation milestones, whether or not they have been met;

    (iii) Enhancement opportunities;

    (iv) Funding;

    (v) Challenges;

    (vi) Estimated greenhouse gas emissions reductions, by program, for the prior calendar year; and

    (vii) Any other information that the agency considers relevant.

(d) Each State agency, when conducting long-term planning, developing policy, and drafting regulations, shall take into  consideration:

  (1) The likely climate impact of the agency's decisions relative to Maryland's greenhouse gas emissions reduction goals; and

  (2) The likely impact of the agency's decisions on disproportionately affected communities identified according to the methodology adopted by the Department under Sec. 1-702 of this article.

#### Section 2-1306

(a) The University of Maryland Center for Environmental Science shall establish science-based sea level rise projections for Maryland's coastal areas and update them at least every 5 years.

(b) The science-based sea level rise projections shall include maps that indicate the areas of the State that may be most affected by storm surges, flooding, and extreme weather events.

(c) The science-based sea level rise projections required under this section shall be made publicly available on the Internet.

### Subtitle 14. U.S. Climate Alliance

#### Section 2-1401

(a)

  (1) On or before July 1, 2018, the Governor shall include the State as a member of the U.S. Climate Alliance.

  (2) The Governor may withdraw the State from the U.S. Climate Alliance only if the General Assembly enacts a law to approve the withdrawal.

(b) On or before December 1, 2018, and on or before December 1 each year thereafter, the Governor shall report to the Senate Education, Health, and Environmental Affairs Committee and the House Environment and Transportation Committee, in accordance with Sec. 2-1257 of the State Government Article, on the State's participation in the U.S. Climate Alliance, including:

  (1) Any collaborations or partnerships among the Alliance members or external stakeholders; and

  (2) Any policies or programs that the Alliance has endorsed, undertaken, or considered.

### Subtitle 15. Zero-emission Vehicle School Buses

#### Section 2-1501

(a) In this subtitle the following words have the meanings indicated.

(b) "Fund" means the Zero-Emission Vehicle School Bus Transition Fund.

(c) "Program" means the Zero-Emission Vehicle School Bus Transition Grant Program.

(d) "Zero-emission vehicle" has the meaning stated in Sec. 23-206.4 of the Transportation Article.

#### Section 2-1502

The Department and the Department of Transportation jointly shall provide technical assistance to county boards of education and entities that contract with county boards to provide transportation services for transitioning to the use of school buses that are zero-emission vehicles throughout the State.

#### Section 2-1503

(a) There is a Zero-Emission Vehicle School Bus Transition Grant Program in the State.

(b) The purpose of the Program is to provide grants to county boards of education and entities that contract with county boards to provide transportation services to:

  (1) Purchase school buses that are zero-emission vehicles;

  (2) Install electric vehicle infrastructure for charging school buses that are zero-emission vehicles;

  (3) Engage in planning for a transition to using school buses that are zero-emission vehicles; and

  (4) Fund pilot programs to experiment with a transition to school buses that are zero-emission vehicles.

(c) The Department, in consultation with the State Department of Education, shall implement and administer the Program.

(d)

  (1) If the Department receives any funds as a result of a legal settlement that are earmarked for the purpose of transitioning to school buses that are zero-emission vehicles, the funds shall be made available to award grants in accordance with this section.

  (2) In addition to any funding provided under paragraph (1) of this subsection, funding for the Program consists of:

    (i) Money appropriated in the State budget for the Program; and

    (ii) Any additional money made available to the Program from any private or public sources.

(e) The Department may adopt regulations to implement this section.

#### Section 2-1504

(a) There is a Zero-Emission Vehicle School Bus Transition Fund.

(b) The purpose of the Fund is to provide funding for the Program.

(c) The Department, in consultation with the State Department of Education, shall administer the Fund.

(d)

  (1) The Fund is a special, nonlapsing fund that is not subject to Sec. 7-302 of the State Finance and Procurement Article.

  (2) The State Treasurer shall hold the Fund separately, and the Comptroller shall account for the Fund.

(e) The Fund consists of:

  (1) Money appropriated in the State budget to the Fund;

  (2) Interest earnings of the Fund;

  (3) Donations;

  (4) Money derived from legal settlements earmarked for the purpose of transitioning to school buses that are zero-emission vehicles; and

  (5) Any other money from any other source accepted for the benefit of the Fund.

(f) The Fund may be used only for the Program.

(g)

  (1) The State Treasurer shall invest the money of the Fund in the same manner as other State money may be invested.

  (2) Any interest earnings of the Fund shall be credited to the Fund.

(h) Expenditures from the Fund may be made only in accordance with the State budget.

(i) Money expended from the Fund for the Program is supplemental to and is not intended to take the place of funding that otherwise would be appropriated for the Program.

#### Section 2-1505

(a) In this section, "incremental costs" means:

  (1) In the case of a contract for the purchase of school buses, the cost difference between purchasing and operating school buses that are zero-emission vehicles and school buses that are diesel-powered vehicles; and

  (2) In the case of a contract for the use of school buses, the cost difference between contracting for the use of school buses that are zero-emission vehicles and school buses that are diesel-powered vehicles.

(b) Except as provided in subsection (c) of this section, beginning in fiscal year  2025, a county board of education may not enter into a new contract  for:

  (1) The purchase  of any school bus that is not a zero-emission vehicle; or

  (2) The use of any school bus that is not a zero-emission vehicle, unless the school bus has an in-service date of July 1, 2024, or before.

(c) The requirements of subsection (b) of this section do not apply if:

  (1) The Department determines that no available zero-emission vehicle meets the performance requirements for the county board's use; or

  (2) The county board is unable to obtain federal, State, or private funding sufficient to cover the incremental costs associated with contracting for the purchase or use of school buses that are zero-emission vehicles.

(d) A county board may enter into an agreement with an electric company to obtain monetary incentives in exchange for allowing the electric company to use the storage batteries of zero-emission buses owned or operated by the county board to access the stored electricity through vehicle-to-grid technology.

(e) The Department, in consultation with other appropriate State agencies, shall work with the county boards and private school bus contractors to develop electric vehicle infrastructure sufficient to support school buses that are zero-emission vehicles.

(f) The Department shall prioritize the use of available federal funding to carry out this section.

### Subtitle 16. Building Energy Performance Standards

#### Section 2-1601

(a) In this subtitle the following words have the meanings indicated.

(b)

  (1) "Agricultural building" means a structure that is used primarily to cultivate, manufacture, process, or produce agricultural crops, raw materials, products, or commodities.

  (2) "Agricultural building" includes a greenhouse.

(c) "Building" has the meaning stated in the International Building Code.

(d) "Commercial building" means a building that is subject to the commercial provisions of the International Energy Conservation Code.

(e)

  (1) "Covered building" means a building that:

    (i)

      (1) Is a commercial or multifamily residential building in the State; or

      (2) Is owned by the State; and

    (ii) Has a gross floor area of  35,000 square feet or more, excluding the parking garage area.

  (2) "Covered building" does not include:

    (i) A building designated as a historic property under federal, State, or local law;

    (ii) A public or nonpublic elementary or secondary school building;

    (iii) A hospital;

    (iv) A manufacturing building; or

    (v) An agricultural building.

(f) "Critical infrastructure" has the meaning stated in Sec. 1-101 of the Public Utilities Article.

(g) "Direct greenhouse gas emissions" means greenhouse gas emissions produced on-site by  covered buildings.

(h) "District energy" means thermal energy generated at one or more central facilities that produce hot water, steam, or chilled water that then flows through a network of insulated underground pipes to provide hot water, space heating, air conditioning, or chilled water to nearby buildings..

(i) "Manufacturing building" means a facility in which manufacturing, as defined in Sec. 2-1202 of this article, takes place.

#### Section 2-1602

(a) The Department shall develop building energy performance standards for covered buildings that achieve:

  (1) A 20% reduction in net direct greenhouse gas emissions on or before January 1, 2030, as compared with 2025 levels for average buildings of similar construction; and

  (2) Net-zero direct greenhouse gas emissions on or before January 1, 2040.

(b) To facilitate the development of building energy performance standards under this section, the Department shall require the owners of covered buildings to measure and report direct emissions data to the Department annually beginning in 2025.

(c)

  (1) On or before June 1, 2023, the Department shall adopt regulations to implement this section.

  (2) Regulations adopted under this section shall:

    (i) Subject to items (ii), (iii), (iv), and (v) of this paragraph, include energy use intensity targets by building type;

    (ii) As necessary, include special provisions or exceptions to account for:

      (1) Building age;

      (2) Regional differences;

      (3) The unique needs of particular building or occupancy types, including health care facilities, laboratories, assisted living and nursing facilities, military buildings, critical infrastructure, and buildings used in life sciences as defined in Sec. 3-201 of the Economic Development Article;

      (4) The use of district energy systems and biofuels by covered buildings;

      (5) Crediting the generation of on-site renewable energy by covered buildings toward their energy use intensity targets;

      (6) Crediting the greenhouse gas reduction impact of the on-site use of biomethane;

      (7) Excluding the energy use and greenhouse gas emissions related to the production of steam for sterilization in a health care facility, laboratory, assisted living and nursing facility, military building, or building used in life sciences; and

      (8) Excluding the energy use and greenhouse gas emissions related to the generation of emergency backup power at a health care facility, laboratory, assisted living and nursing facility, military building, critical infrastructure, or building used in life sciences;

    (iii) Consider the needs of the owners of covered buildings who:

      (1) Are not responsible for the design, modification, fixtures, or equipment of commercial tenants;

      (2) Do not have access to or control over building energy systems that are used or controlled by commercial tenants; or

      (3) Own buildings occupied by commercial tenants who are responsible for all maintenance of and repairs to the buildings;

    (iv) Subject to paragraph (3) of this subsection, exempt from energy use intensity targets a covered building that contains an area designed, built, and operated as a permanent sensitive compartmented information facility and is operated by an agency or contractor of:

      (1) The U.S. General Services Administration;

      (2)

        (A) The U.S. Department of Defense;

      (B) The National Security Agency;

      (C) The U.S. Department of Homeland Security; or

      (D) Any other U.S. intelligence agency; or

      (3) The State;

    (v) Exempt an owner of a covered building from energy use intensity reporting requirements if:

      (1) The covered building meets the criteria under item (iv) of this paragraph; and

      (2) In circumstances where tenant authorization is required, the tenant or occupant does not provide energy use information to the owner of the covered building due to concerns about the confidentiality of the building's secure area;

    (vi) Provide maximum flexibility to the owners of covered buildings to comply with building energy performance standards;

    (vii) Subject to paragraph (3) of this subsection, include an alternative compliance pathway allowing the owner of a covered building to pay a fee for greenhouse gas emissions attributable to the building's failure to meet direct greenhouse gas emissions reduction targets;

    (viii) To the extent authorized by law, include financial incentives recommended by the Building Energy Transition Implementation Task Force; and

    (ix) Include an annual reporting fee of $100 per covered building, adjusted for inflation, to cover the administrative costs of the program.

  (3) The Department may not set an alternative compliance fee that is less than the social cost of greenhouse gases adopted by the Department or the U.S. Environmental Protection Agency.

  (4)

    (i) Subject to subparagraph (ii) of this paragraph, the Department shall certify a building energy performance standards program adopted by a county administering a building energy performance standards program on or before March 1, 2025, and waive the requirement for covered buildings in the county to comply with the statewide program adopted under this section.

    (ii) A county administering a building energy performance standards program certified by the Department under subparagraph (i) of this paragraph may take appropriate actions to enforce the standards, including:

      (1) Establishing alternative compliance pathways for complying with energy use intensity and direct greenhouse gas emissions requirements established in the standards;

      (2) Imposing and collecting alternative compliance fees up to the same amount and in the same manner allowed by the Department under this section; and

      (3) Imposing and collecting penalties up to the same amount and in the same manner allowed by the Department under Sec. 2-610 of this title.

  (5) Nothing in this section shall preclude a county administering a building energy performance standards program certified by the Department under paragraph (4)(i) of this subsection from:

    (i) Adopting building energy performance standards for buildings that are not covered buildings under the statewide program adopted under this section; or

    (ii) Modifying an adopted building performance standards program.

(d) Electric companies and gas companies shall provide energy data, including whole-building and aggregate data, to the owners of covered buildings for benchmarking purposes.

(e) In calculating the statewide standards developed by the Department under this section, an owner of a covered building may not consider greenhouse gas emissions or energy use by a commercial tenant of the covered building that:

  (1) Is a food service facility as defined in COMAR 10.15.03.02; and

  (2) Engages in commercial cooking and water heating.

#### Section 2-1603

(a) Beginning July 1, 2026, within 10 business days after a county or municipality accepts a permit application for a new building that has a proposed gross floor area of 35,000 square feet or more, excluding the parking garage area, the county or municipality shall provide notice of the permit application to the Department.

(b) The notice required under subsection (a) of this section shall include:

  (1) The address of the proposed building;

  (2) The building permit application number;

  (3) The total square footage of the proposed building;

  (4) The proposed building type;

  (5) The energy sources planned for use in the proposed building; and

  (6) The contact information for the owner of the proposed building.

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Md. Code Ann., Envir. (as displayed at mgaleg.maryland.gov, October 16, 2026)