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EXPLANATION: CAPITALS INDICATE MATTER ADDED TO EXISTING LAW.
[Brackets] indicate matter deleted from existing law.
*hb0066*
HOUSE BILL 66
M3, M5 6lr1459
(PRE–FILED)
By: Delegate Chisholm
Requested: October 30, 2025
Introduced and read first time: January 14, 2026
Assigned to: Environment and Transportation
A BILL ENTITLED
AN ACT concerning 1
Environment – Regional Greenhouse Gas Initiative – Withdrawal 2
(Restoring Energy Freedom Act) 3
FOR the purpose of requiring the Governor to withdraw the State from participation in the 4
Regional Greenhouse Gas Initiative ; and generally relating to withdrawal from 5
participation in the Regional Greenhouse Gas Initiative. 6
BY repealing and reenacting, with amendments, 7
Article – Economic Development 8
Section 10–802(a)(2) 9
Annotated Code of Maryland 10
(2024 Replacement Volume and 2025 Supplement) 11
BY repealing 12
Article – Environment 13
Section 2–1002(g) 14
Annotated Code of Maryland 15
(2013 Replacement Volume and 2025 Supplement) 16
BY repealing and reenacting, with amendments, 17
Article – Environment 18
Section 2–1205(g)(2) 19
Annotated Code of Maryland 20
(2013 Replacement Volume and 2025 Supplement) 21
BY repealing and reenacting, without amendments, 22
Article – Natural Resources 23
Section 5–307(a) 24
Annotated Code of Maryland 25
(2023 Replacement Volume and 2025 Supplement) 26
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BY repealing and reenacting, with amendments, 1
Article – Natural Resources 2
Section 5–307(g)(7) 3
Annotated Code of Maryland 4
(2023 Replacement Volume and 2025 Supplement) 5
BY repealing and reenacting, with amendments, 6
Article – State Government 7
Section 9–20B–05 8
Annotated Code of Maryland 9
(2021 Replacement Volume and 2025 Supplement) 10
BY renumbering 11
Article – Environment 12
Section 2–1002(h) through (j) 13
to be Section 2–1002(g) through (i), respectively 14
Annotated Code of Maryland 15
(2013 Replacement Volume and 2025 Supplement) 16
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 17
That the Laws of Maryland read as follows: 18
Article – Economic Development 19
10–802. 20
(a) The General Assembly finds that: 21
(2) continued exclusive reliance on traditional forms of electricity supply 22
entrenches the State’s dependence on fossil fuels, working against the State’s policy of 23
decreasing greenhouse gas production [, as evidenced by the State’s accession to the 24
Regional Greenhouse Gas Initiative]; 25
Article – Environment 26
2–1002. 27
[(g) (1) In this subsection, “allowance” means one ton of carbon dioxide that 28
may be bought, sold, traded, or banked for use under the Regional Greenhouse Gas 29
Initiative. 30
(2) Not later than June 30, 2007, the Governor shall include the State as a 31
full participant in the Regional Greenhouse Gas Initiative among Mid –Atlantic and 32
Northeast states. 33
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(3) The State may withdraw from the Initiative, as provided in the 1
December 20, 2005 memorandum of understand ing of the Initiative, at any time after 2
January 1, 2009, if the General Assembly enacts a law to approve the withdrawal. 3
(4) If the Regional Greenhouse Gas Initiative expires and there is a 4
successor organization with the same purposes and goals, the G overnor is encouraged to 5
join the State in the successor organization. 6
(5) Notwithstanding § 2–107 of this title, all of the proceeds from the sale 7
of Maryland allowances under the Regional Greenhouse Gas Initiative shall be deposited 8
in the Maryland St rategic Energy Investment Fund under § 9 –20B–05 of the State 9
Government Article. 10
(6) If the State’s participation in the Regional Greenhouse Gas Initiative 11
ceases for any reason, the Governor shall report to the General Assembly, in accordance 12
with § 2–1257 of the State Government Article, regarding: 13
(i) Why participation ceased; and 14
(ii) A plan to reduce carbon dioxide emissions from power plants in 15
the State that considers the use of Maryland grown, native, warm season grasses as a 16
possible method of reducing carbon emissions.] 17
2–1205. 18
(g) (2) (i) Unless required by federal law or regulations or existing State 19
law, regulations adopted by State agencies to implement a final plan may not: 20
1. Require any manufacturer to reduce greenhouse gas 21
emissions below the emissions levels for that manufacturer in 2023; 22
2. Cause an increase in costs to a manufacturer that are 23
significantly beyond the costs that were incurred by that manufacturer in 2023; or 24
3. Require any manufacturer that is engaged in the creation 25
of renewable energy components or technology aimed at greenhouse gas emissions 26
reductions to reduce greenhouse gas emissions. 27
(ii) Subparagraph (i) of this paragraph may not be construed to 28
exempt greenhouse gas emissions sour ces in the State’s manufacturing sector from the 29
obligation to comply with[: 30
1. Greenhouse] GREENHOUSE gas emissions monitoring, 31
recordkeeping, and reporting requirements for which the Department had existing 32
authority under § 2–301(a) of this title on or before October 1, 2009[; or 33
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2. Greenhouse gas emissions reductions required of the 1
manufacturing sector as a result of the State’s implementation of the Regional Greenhouse 2
Gas Initiative]. 3
Article – Natural Resources 4
5–307. 5
(a) In this section, “Fund” means the Mel Noland Woodland Incentives and 6
Fellowship Fund. 7
(g) The Department shall use the Fund: 8
(7) To provide financial assistance, as provided in the State budget, for the 9
administration of an urban and community forestry program established under § 5–426 of 10
this title, including: 11
(i) Increasing the number of communities with tree canopy goals; 12
(ii) Facilitating compliance with the Chesapeake Bay Program’s 13
forestry targets; AND 14
(iii) Supporting the use of urban tree canopy expansion for air quality 15
improvement purposes; [and 16
(iv) Helping achieve implementation of Regional Greenhouse Gas 17
Initiative offset opportunities in urban areas;] 18
Article – State Government 19
9–20B–05. 20
(a) There is a Maryland Strategic Energy Investment Fund. 21
(b) The purpose of the Fund is to implement the Strategic Energy Investment 22
Program. 23
(c) The Administration shall administer the Fund. 24
(d) (1) The Fund is a special, nonlapsing fund that is not subject to § 7–302 of 25
the State Finance and Procurement Article. 26
(2) The Treasurer shall hold the Fund separately and the Comptroller shall 27
account for the Fund. 28
(e) The Fund consists of: 29
HOUSE BILL 66 5
(1) [all of the proceeds from the sale of allowances under § 2–1002(g) of the 1
Environment Article; 2
(2)] money appropriated in the State budget to the Program; 3
[(3)] (2) repayments and prepayments of principal and interest on loans 4
made from the Fund; 5
[(4)] (3) compliance fees paid under § 7–705 of the Public Utilities Article; 6
[(5)] (4) money received from any public or private source for the benefit 7
of the Fund; 8
[(6)] (5) money transferred from the Public Service Commission under § 9
7–207.2(d)(3) of the Public Utilities Article; and 10
[(7)] (6) money distributed under § 2–614.1 of the Tax – General Article. 11
(f) The Administration shall use the Fund: 12
(1) to invest in the promotion, development, and implementation of: 13
(i) cost–effective energy efficiency and conservation programs, 14
projects, or activities, including measurement and verification of energy savings; 15
(ii) renewable and clean energy resources; 16
(iii) climate change programs directly related to reducing or 17
mitigating the effects of climate change; and 18
(iv) demand respons e programs that are designed to promote 19
changes in electric usage by customers in response to: 20
1. changes in the price of electricity over time; or 21
2. incentives designed to induce lower electricity use at times 22
of high wholesale market prices or when system reliability is jeopardized; 23
(2) to provide targeted programs, projects, activities, and investments to 24
reduce electricity consumption by customers in the low –income and moderate –income 25
residential sectors; 26
(3) to provide supplemental funds for low –income energy assistance 27
through the Electric Universal Service Program established under § 7 –512.1 of the Public 28
Utilities Article and other electric assistance programs in the Department of Human 29
Services; 30
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(4) to provide rate relief by o ffsetting electricity rates of residential 1
customers, including an offset of surcharges imposed on ratepayers under Title 7, Subtitle 2
2, Part II of the Public Utilities Article; 3
(5) to provide grants, loans, and other assistance and investment as 4
necessary and appropriate to implement the purposes of the Program as set forth in § 5
9–20B–03 of this subtitle; 6
(6) to implement energy–related public education and outreach initiatives 7
regarding reducing energy consumption and greenhouse gas emissions; 8
(7) to provide rebates under the Electric Vehicle Recharging Equipment 9
Rebate Program established under § 9–2009 of this title; 10
(8) to provide grants to encourage combined heat and power projects at 11
industrial facilities; 12
(9) to provide at least $1,20 0,000 in each fiscal year for fiscal year 2025 13
through fiscal year 2028 to the Climate Technology Founder’s Fund established under § 14
10–858 of the Economic Development Article; 15
(10) subject to subsection (f–2) of this section, to provide at least $2,100,000 16
in funding each fiscal year to the Maryland Energy Innovation Fund established under § 17
10–835 of the Economic Development Article; 18
(11) to provide at least $500,000 each year to the Resiliency Hub Grant 19
Program Fund under § 9–2011 of this title; 20
(12) to provide grants through the Customer –Sited Solar Program under § 21
9–2016 of this title; 22
(13) [notwithstanding subsection (g) of this section,] to pay costs associated 23
with the Air and Radiation Administration within the Department of the Environment; and 24
(14) to pay the expenses of the Program. 25
(f–1) (1) Any funding provided under subsection (f)(9) of this section that is not 26
spent in a given fiscal year shall revert to the Fund in the following fiscal year. 27
(2) The Administration may provide additional funding for the purposes 28
stated in subsection (f)(9) of this section. 29
(f–2) Of the funds transferred to the Maryland Energy Innovation Fund under 30
subsection (f)(10) of this section: 31
HOUSE BILL 66 7
(1) at least $1,200,000 may be used to fund the Maryland Clean Energy 1
Center established under § 10–806 of the Economic Development Article; and 2
(2) at least $900,000 may be used to fund the Maryland Energy Innovation 3
Institute established under § 10–829 of the Economic Development Article. 4
[(g) Proceeds received by the Fund from the sale of allowances under § 2 –1002(g) 5
of the Environment Article shall be allocated as follows: 6
(1) at least 50% shall be credited to an energy assistance account to be used 7
for the Electric Universal Service Program and other electricity assistance programs in the 8
Department of Human Services; 9
(2) at least 20% shall be credited to a low and moderate income efficiency 10
and conservation programs account and to a general efficiency and conservation programs 11
account for energy efficiency and conservation programs, projects, or activities and demand 12
response programs, of which at least one –half shall be targeted to the low an d moderate 13
income efficiency and conservation programs account for: 14
(i) the low–income residential sector at no cost to the participants 15
of the programs, projects, or activities; and 16
(ii) the moderate–income residential sector; 17
(3) at least 20% shall be credited to a renewable and clean energy programs 18
account for: 19
(i) renewable and clean energy programs and initiatives; 20
(ii) energy–related public education and outreach; and 21
(iii) climate change and resiliency programs; and 22
(4) up to 10%, but not more than $7,500,000, shall be credited to an 23
administrative expense account for costs related to the administration of the Fund, 24
including the review of electric company plans for achieving electricity savings and demand 25
reductions that th e electric companies are required under law to submit to the 26
Administration.] 27
[(g–1)] (G) Proceeds received by the Fund from compliance fees under § 28
7–705(b)(2)(i)2 of the Public Utilities Article shall be allocated as follows: 29
(1) beginning in fiscal year 2025, at least 20% of the proceeds shall be used 30
to provide grants to support the installation of new solar energy generating systems under 31
the Customer–Sited Solar Program; 32
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(2) up to 10% of the proceeds shall be credited to an administrative expense 1
account for costs related to the administration of the Fund; 2
(3) proceeds collected but unused from a previous year shall be used before 3
proceeds allocated for the current year; and 4
(4) the Administration shall reallocate to other authorize d uses any 5
proceeds that are not used within 3 fiscal years after collection. 6
[(h) (1) Energy efficiency and conservation programs under subsection (g)(2) of 7
this section include: 8
(i) low–income energy efficiency programs; 9
(ii) residential and small business energy efficiency programs; 10
(iii) commercial and industrial energy efficiency programs; 11
(iv) State and local energy efficiency programs; 12
(v) demand response programs; 13
(vi) loan programs and alternative financing mechanisms; and 14
(vii) grants to training funds and other organizations supporting job 15
training for deployment of energy efficiency and energy conservation technology and 16
equipment. 17
(2) Energy–related public education and outreach and renewable and clean 18
energy programs and initiatives under subsection (g)(3)(i) and (ii) of this section include: 19
(i) production incentives for specified renewable energy sources; 20
(ii) expansion of existing grant programs for solar, geothermal, and 21
wind programs; 22
(iii) loan programs and alternative financing mechanisms; and 23
(iv) consumer education and outreach programs that are designed to 24
reach low–income communities.] 25
[(i)] (H) (1) Except as provided in paragraphs (2), (3), and (4) of this 26
subsection, compliance fe es paid under § 7 –705(b) of the Public Utilities Article may be 27
used only to make loans and grants to support the creation of new Tier 1 renewable energy 28
sources in the State that are owned by or directly benefit: 29
HOUSE BILL 66 9
(i) low– to moderate–income communities located in a census tract 1
with an average median income at or below 80% of the average median income for the State; 2
or 3
(ii) overburdened or underserved communities, as defined in § 1–701 4
of the Environment Article. 5
(2) Compliance fees paid under § 7–705(b)(2)(i)2 of the Public Utilities 6
Article shall be accounted for separately within the Fund and may be used only to make 7
loans and grants to support the creation of new solar energy sources in the State that are 8
owned by or directly benefit: 9
(i) low– to moderate–income communities located in a census tract 10
with an average median income at or below 80% of the average median income for the State; 11
(ii) overburdened or underserved communities, as defined in § 1–701 12
of the Environment Article; or 13
(iii) households with low to moderate income, as defined in § 9–2016 14
of this title. 15
(3) For fiscal year 2026 only, up to $100,000,000 of compliance fees paid 16
under §§ 7–705(b) and 7–705(b)(2)(i)2 of the Public Utilities Article shall be accounted fo r 17
separately within the Fund and may be used for solar development on State government 18
property and local government clean energy projects. 19
(4) (i) Subject to subparagraphs (ii), (iii), and (iv) of this paragraph, 20
compliance fees paid under § 7 –705 of the Public Utilities Article may be used to provide 21
grants to electric companies to be refunded or credited to each residential distribution 22
customer based on the customer’s consumption of electricity supply that is subject to the 23
renewable energy portfolio standard. 24
(ii) The refunding or crediting of amounts to residential distribution 25
customers shall be identified on the customer’s bill as a line item identified as a “legislative 26
energy relief refund”. 27
(iii) An electric company awarded a grant under this paragraph: 28
1. may not retain any of the grant funds to cover overhead 29
expenses; and 30
2. shall provide all of the grant funds to residential 31
distribution customers. 32
(iv) The process under subparagraphs (i) and (ii) of this paragraph 33
related to the refunding or crediting of amounts to residential distribution customers shall 34
be directed and overseen by the Commission. 35
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[(i–1)] (I) (1) (i) In this subsection the following words have the meanings 1
indicated. 2
(ii) “Area median income” has the meaning stated in § 4–1801 of the 3
Housing and Community Development Article. 4
(iii) “Low and moderate income” means having an annual household 5
income that is at or below 120% of the area median income. 6
(2) Compliance fees paid under § 7–705(b–1) of the Public Utilities Article 7
shall be accounted for separately within the Fund and may be used only to make loans and 8
grants to promote increased opportunities for the growth and development of small, 9
minority, women –owned, and veteran –owned busine sses in the State that install 10
geothermal systems in the State. 11
(j) (1) The Treasurer shall invest the money of the Fund in the same manner 12
as other State money may be invested. 13
(2) Any investment earnings of the Fund shall be paid into the Fund. 14
(3) Any repayment of principal and interest on loans made from the Fund 15
shall be paid into the Fund. 16
(4) Balances in the Fund shall be held for the benefit of the Program, shall 17
be expended solely for the purposes of the Program, and may not be used for the general 18
obligations of government. 19
(k) Expenditures from the Fund shall be made by: 20
(1) an appropriation in the annual State budget; or 21
(2) a budget amendment in accordance with § 7 –209 of the State Finance 22
and Procurement Article. 23
(l) An expenditure by budget amendment may be made under subsection (k) of 24
this section only after: 25
(1) the Administration has submitted the proposed budget amendment and 26
supporting documentation to the Senate Budget and Taxation Committee, Senate 27
Education, Energy, and the Environment Committee, House Appropriations Committee, 28
and House Economic Matters Committee; and 29
(2) the committees have had 45 days for review and comment. 30
HOUSE BILL 66 11
(m) (1) A loan or grant made available from the Fund to a unit of State or local 1
government shall comply with §§ 14–416 and 17–303 of the State Finance and Procurement 2
Article. 3
(2) At least 80% of workers participating in a project or program that 4
receives money from the Fund must reside within 50 miles of the project or program, or 5
another distance defined by the local jurisdiction where the project or program is located. 6
SECTION 2. AND BE IT FURTHER ENACTED, That Section(s) 2–1002(h) through 7
(j) of Article – Environment of the Annotated Code of Maryland be renumbered to be 8
Section(s) 2–1002(g) through (i), respectively. 9
SECTION 3. AND BE IT FURTHER ENACTED, That: 10
(a) The Governor shall immediately begin the process of withdrawing the State 11
from participation in the Regional Greenhouse Gas Initiative. 12
(b) Within 30 days after receiving notice that the Stat e is withdrawn from 13
participation in the Regional Greenhouse Gas Initiative, the Governor shall report to the 14
General Assembly in accordance with § 2–1002(g)(6) of the Environment Article. 15
SECTION 4. AND BE IT FURTHER ENACTED, That: 16
(a) Sections 1, 2, and 5 of this Act shall take effect contingent on: 17
(1) the State’s withdrawal from participation in the Regional Greenhouse 18
Gas Initiative; and 19
(2) the receipt by the General Assembly of the report required under § 20
2–1002(g)(6) of the Environment Article. 21
(b) Within 5 days after the report required under § 2 –1002(g)(6) of the 22
Environment Article is received, the General Assembly shall notify the Department of 23
Legislative Services. 24
(c) If notice of the receipt of the report is received by the Department of 25
Legislative Services on or before June 1, 2031, Section s 1, 2, and 5 of this Act shall take 26
effect on the date the notice is received by the Department of Legislative Services in 27
accordance with subsection (b) of this section. 28
(d) If notice of the receipt of the report is not received by the Department of 29
Legislative Services on or before June 1, 2031, Sections 1, 2, and 5 of this Act, with no 30
further action required by the General Assembly, shall be null and void. 31
SECTION 5. AND BE IT FURTHER ENACTED, That the publisher of the 32
Annotated Code of Maryland, in consultation with and subject to the approval of the 33
Department of Legislative Services, shall correct, with no further action required by the 34
12 HOUSE BILL 66
General Assembly, cross–references and terminology rendered incorrect by this Act. The 1
publisher shall adequately describe any correction that is made in an editor’s note following 2
the section affected. 3
SECTION 6. AND BE IT FURTHER ENACTED, That , subject to Sect ion 4 of this 4
Act, this Act shall take effect June 1, 2026. 5