The General Assembly finds that:
Greenhouse gases are air pollutants that threaten to endanger the public health and welfare of the people of Maryland;
Global warming poses a serious threat to the State’s future health, well–being, and prosperity;
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;
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;
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;
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;
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;
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;
Cap and trade regulation of greenhouse gas emissions is most effective when implemented on a federal level;
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
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.
In this subtitle the following words have the meanings indicated.
“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.
“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.
“Direct emissions reduction” means a reduction of greenhouse gas emissions from a greenhouse gas emissions source.
“Greenhouse gas” includes carbon dioxide, methane, nitrous oxide, hydrofluorocarbons, perfluorocarbons, and sulfur hexafluoride.
“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.
“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.
“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.
“Manufacturing”, when performed by companies primarily engaged in the activities described in paragraph (1) of this subsection, includes:
The operation of saw mills, grain mills, or feed mills;
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
Research and development activities.
“Manufacturing” does not include:
Activities that are primarily a service;
Activities that are intellectual, artistic, or clerical in nature;
Public utility services, including gas, electric, water, and steam production services;
The production of cement; or
Any other activity that would not commonly be considered as manufacturing.
“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.
On or before June 1, 2011, the Department shall publish:
An inventory of statewide greenhouse gas emissions for calendar year 2006; and
Based on existing greenhouse gas emissions control measures, a projected “business as usual” inventory for calendar year 2020.
The Department shall review and publish an updated statewide greenhouse gas emissions inventory for calendar year 2011 and for every third calendar year thereafter.
The State shall reduce statewide greenhouse gas emissions by 25% from 2006 levels by 2020.
The State shall achieve net–zero statewide greenhouse gas emissions by 2045.
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.
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 § 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:
Whether a regional governmental initiative, agreement, or compact that limits greenhouse gas emissions from the transportation sector exists;
Whether the Governor has included the State as a full participant in such an initiative, agreement, or compact; and
Any other information the Department or the Department of Transportation considers relevant.
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.
The State shall develop plans, adopt regulations, and implement programs that reduce statewide greenhouse gas emissions in accordance with this subtitle.
On or before June 30, 2023, the Department shall:
Submit a proposed plan that reduces statewide greenhouse gas emissions by 60% from 2006 levels by 2031 to the Governor and General Assembly;
Make the proposed plan available to the public; and
Convene a series of public workshops to provide interested parties with an opportunity to comment on the proposed plan.
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.
The Department shall, on or before December 31, 2023, adopt a final plan that:
Reduces statewide greenhouse gas emissions by 60% from 2006 levels by 2031; and
Sets the State on a path toward achieving net–zero statewide greenhouse gas emissions by 2045.
The Department shall:
On or before December 31, 2030, adopt a final plan that achieves net–zero statewide greenhouse gas emissions by 2045; and
On or before December 31, 2035, review and, as necessary, revise the final plan to achieve net–zero statewide gas emissions by 2045.
The final plans required under subsection (c) of this section shall include:
Adopted regulations that implement all plan measures for which State agencies have existing statutory authority; and
A summary of any new legislative authority needed to fully implement the plans and a timeline for seeking legislative authority.
A final plan developed under this section:
May not include highway widening or additional road construction as a greenhouse gas emission reduction measure;
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;
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;
Shall include policy recommendations to ensure the continued operation of Maryland’s existing zero carbon emission electric generators through current operating licenses;
Shall include specific estimates of the greenhouse gas emissions reductions that could be achieved through the expansion of mass transit options; and
Shall include specific estimates of the reductions expected from each greenhouse gas emissions reduction measure included in the plan.
In developing and adopting a final plan to reduce statewide greenhouse gas emissions, the Department shall consult with State and local agencies as appropriate.
Paragraphs (2) and (3) of this subsection apply only to persons who engaged in manufacturing in 2023.
Unless required by federal law or regulations or existing State law, regulations adopted by State agencies to implement a final plan may not:
Require any manufacturer to reduce greenhouse gas emissions below the emissions levels for that manufacturer in 2023;
Cause an increase in costs to a manufacturer that are significantly beyond the costs that were incurred by that manufacturer in 2023; or
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.
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:
Greenhouse gas emissions monitoring, recordkeeping, and reporting requirements for which the Department had existing authority under § 2–301(a) of this title on or before October 1, 2009; or
Greenhouse gas emissions reductions required of the manufacturing sector as a result of the State’s implementation of the Regional Greenhouse Gas Initiative.
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.
As part of the consideration of any regulation of the production of cement under this section, the Department shall consider:
The extent to which cement manufacturing is an energy intensive and trade exposed industry;
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;
The adoption of policies that encourage, facilitate, and offer financial incentives for the use of alternative fuel sources;
The availability and cost of mature greenhouse gas abatement technologies; and
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.
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.
In developing and implementing the plans required by § 2–1205 of this subtitle, the Department shall:
Analyze the feasibility of measures to comply with the greenhouse gas emissions reductions required by this subtitle;
Consider the impact on rural communities of any transportation related measures proposed in the plans;
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;
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;
Ensure that the plans do not decrease the likelihood of reliable and affordable electrical service and statewide fuel supplies;
Consider whether the measures would result in an increase in electricity costs to consumers in the State;
Consider the impact of the plans on the ability of the State to:
Attract, expand, and retain commercial aviation services; and
Conserve, protect, and retain agriculture;
Ensure that the greenhouse gas emissions reduction measures implemented in accordance with the plans:
Are implemented in an efficient and cost–effective manner;
Do not disproportionately impact rural or low–income, low– to moderate–income, or minority communities or any other particular class of electricity ratepayers;
Minimize leakage;
Are quantifiable, verifiable, and enforceable;
Directly cause no loss of existing jobs in the manufacturing sector;
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
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;
Incorporate top–down methane emissions data acquired through aircraft observations; and
Use the best available scientific information, as included in the most recent assessments and reports of the Intergovernmental Panel on Climate Change.
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.
The Maryland Commission on Climate Change shall oversee the independent study required by this section.
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 § 2–1257 of the State Government Article, the General Assembly.
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.
A voluntary greenhouse gas emissions reduction plan may include measures to:
Reduce energy use and increase process efficiency; and
Facilitate industry–wide research and development directed toward future measures to reduce greenhouse gas emissions.
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.
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 § 2–1257 of the State Government Article, to the Senate Committee on Education, Energy, and the Environment and the House Environment and Transportation Committee.
On review of the study required under § 2–1207 of this subtitle, and the reports required under § 2–1211 of this subtitle, the General Assembly:
May act to maintain, revise, or eliminate the greenhouse gas emissions reductions required under §§ 2–1204.1 and 2–1204.2 of this subtitle; and
Shall consider whether to continue the special manufacturing provisions in § 2–1205(f)(1) of this subtitle.
The Department shall monitor implementation of the plans required under § 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 § 2–1257 of the State Government Article, the General Assembly that describes the State’s progress toward achieving:
The reductions in greenhouse gas emissions required under this subtitle, or any revisions conducted in accordance with § 2–1210 of this subtitle; and
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.
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.
This goal:
Is in addition to any trees projected to be planted under programs described in the 2019 Draft Greenhouse Gas Emissions Reduction Plan; and
Includes native tree plantings accomplished through State programs and through the efforts of nonprofit and private organizations.
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 § 8–1911 of the Natural Resources Article.
The Department:
Is responsible for tracking the State’s progress toward meeting the goals established under subsection (a) of this section; and
Shall serve as the lead agency to receive data from:
The Maryland Department of Agriculture regarding tree plantings accomplished through the Conservation Reserve Enhancement Program and other agricultural initiatives;
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
The Chesapeake Bay Trust regarding tree plantings accomplished through the Urban Trees Program.
There is a 5 Million Tree Program Coordinator within the Department.
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.
On or before December 1 each year, the Program Coordinator shall:
Consolidate data on tree plantings from multiple sources; and
Report, in accordance with § 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.
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.
On or before July 1, 2026, and every 6 months thereafter, the Department shall report to the General Assembly, in accordance with § 2–1257 of the State Government Article, on:
Any changes in federal environmental policy that have been deemed legally valid by a final decision of a federal court, including any change that:
Rescinds a finding that the greenhouse gas emissions from new motor vehicles and engines cause air pollution that may endanger public health or welfare;
Repeals greenhouse gas emissions standards for motor vehicles and engines;
Repeals greenhouse gas emissions standards for stationary sources; or
Impacts the Department’s administration of any federally delegated authority; and
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.
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.
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.