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EXPLANATION: CAPITALS INDICATE MATTER ADDED TO EXISTING LAW.
[Brackets] indicate matter deleted from existing law.
*hb0702*
HOUSE BILL 702
C5, M5 6lr1982
CF SB 434
By: Delegates Korman, Wolek, and Woorman
Introduced and read first time: February 2, 2026
Assigned to: Environment and Transportation
A BILL ENTITLED
AN ACT concerning 1
Maryland Strategic Energy Investment Fund – Uses – Cooperative Housing 2
Corporations and Condominiums 3
(Co–Op and Condo Energy Refund Equity Act) 4
FOR the purpose of altering the authorized uses of certain compliance fee revenue paid into 5
the Maryland Strategic Energy I nvestment Fund; requiring certain funds in the 6
Fund be used in a certain manner in a certain fiscal year ; and generally relating to 7
the Maryland Strategic Energy Investment Fund. 8
BY repealing and reenacting, with amendments, 9
Article – State Government 10
Section 9–20B–05(i)(4) 11
Annotated Code of Maryland 12
(2021 Replacement Volume and 2025 Supplement) 13
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 14
That the Laws of Maryland read as follows: 15
Article – State Government 16
9–20B–05. 17
(i) (4) (i) 1. IN THIS PARAGRAPH THE FOLLOWING WORDS HAVE 18
THE MEANINGS INDICATED. 19
2. “CONDOMINIUM” HAS THE MEANING STAT ED IN § 20
11–101 OF THE REAL PROPERTY ARTICLE. 21
2 HOUSE BILL 702
3. “COOPERATIVE HOUSING C ORPORATION” HAS THE 1
MEANING STATED IN § 5–6B–01 OF THE CORPORATIONS AND ASSOCIATIONS 2
ARTICLE. 3
4. “RESIDENTIAL DISTRIBUTION CUSTOMER” INCLUDES 4
A MEMBER OF A COOPERATIVE HOUSING CORPORATION AND AN OWNER OF A 5
CONDOMINIUM UNIT. 6
(II) Subject to subparagraphs [(ii), (iii), and (iv)] (III) THROUGH (VI) 7
of this paragraph, compliance fees paid under § 7–705 of the Public Utilities Article may be 8
used to provide grants to electric companies to be refunded or cred ited to each residential 9
distribution customer based on the customer’s consumption of electricity supply that is 10
subject to the renewable energy portfolio standard. 11
[(ii)] (III) [The] FOR A RESIDENTIAL DISTRIBUTION CUSTOMER 12
OTHER THAN A MEMBER OF A COOPER ATIVE HOUSING CORPOR ATION OR A UNIT 13
OWNER OF A CONDOMINIUM, THE refunding or crediting of amounts to residential 14
distribution customers shall be identified on the customer’s bill as a line item identified as 15
a “legislative energy relief refund”. 16
(IV) FOR A MEMBER OF A COOPERATIVE HOUSING 17
CORPORATION OR A UNIT OWNER OF A CONDOMINIUM: 18
1. THE ELECTRIC COMPANY SHALL ISSUE A REFUND OR 19
CREDIT TO THE GOVERN ING BODY OF THE COOPERATIVE HOUSING CORPORATION 20
OR THE BOARD OF DIRECTORS OF THE CONDOMINIUM; AND 21
2. THE GOVERNING BODY O F THE COOPERATIVE 22
HOUSING CORPORATION OR THE BOARD OF DIRE CTORS OF THE CONDOMI NIUM 23
SHALL DISTRIBUTE THE REFUND OR CREDIT TO THE MEMBERS OF THE 24
COOPERATIVE HOUSING CORPORATION OR UNIT OWNERS OF THE CONDOMINIUM. 25
[(iii)] (V) An electric company awarded a grant under this 26
paragraph: 27
1. may not retain any of the grant funds to cover overhead 28
expenses; and 29
2. shall provide all of the grant funds to residential 30
distribution customers. 31
[(iv)] (VI) The process under subparagraphs [(i) and] (II), (III), AND 32
(IV) of this paragraph related to the refunding or crediting of amounts to residential 33
distribution customers shall be directed and overseen by the Commission. 34
HOUSE BILL 702 3
SECTION 2. AND BE IT FURTHER ENACTED, That: 1
(a) (1) Notwithstanding any other provision of law, from the alternative 2
compliance fees paid into the Maryland Strategic Energy Investment Fund in accordance 3
with § 7–705 of the Public Utilities Article, a portion shall be used to provide grant awards 4
to electric companies, including electric cooperatives and municipal electric utilities, to be 5
refunded or credited to residential distribution customers for electric service in fiscal year 6
2027 in accordance with subsection (b) of this section if the customers: 7
(i) are members of cooperative housing corporations or unit owners 8
of condominiums; and 9
(ii) did not receive the refund or credit required under Section 11 of 10
Chapters 625 and 626 of the Acts of the General Assembly of 2025. 11
(2) The Governor may transfer by budget amendment the funds described 12
in paragraph (1) of this subsection to the Public Service Commission to be awarded to 13
electric companies, including electric cooperatives and municipal electric utilities. 14
(3) Refunds or cred its made under this section shall be in addition to 15
refunds or credits made to members of cooperative housing corporations or unit owners of 16
condominiums in fiscal year 2027 under § 9–20B–05(i)(4) of the State Government Article, 17
as enacted by Section 1 of this Act. 18
(b) The funds described in subsection (a)(1) of this section shall be distributed: 19
(1) in accordance with § 9 –20B–05(i)(4) of the State Government Article , 20
as enacted by Section 1 of this Act; 21
(2) in amounts per residential distribution customer calculated in the same 22
manner as a distribution would have been calculated in fiscal year 2026; and 23
(3) to distribution customers that are members of cooperative housing 24
corporations or unit owners of condominiums as follows: 25
(i) half of the amount granted under subsection (a)(1) of this section 26
to be refunded or credited during a peak summer month; and 27
(ii) half of the amount granted under subsection (a)(1) of this section 28
to be refunded or credited during a peak winter month. 29
SECTION 3. AND BE IT FURTHER ENACTED, That this Act shall take effect July 30
1, 2026. 31