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EXPLANATION: CAPITALS INDICATE MATTER ADDED TO EXISTING LAW.
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*hb1065*
HOUSE BILL 1065
M3, P2 6lr2008
By: Delegates Lehman, Kaufman, J. Long, Odom, Ruth, Taveras, and Terrasa
Introduced and read first time: February 9, 2026
Assigned to: Environment and Transportation
A BILL ENTITLED
AN ACT concerning 1
Coal Combustion By–Product Materials – Grant Program and Procurement 2
Preference 3
FOR the purpose of establishing the Coal Combustion By –Product Materials Grant 4
Program in the Department of the Environment to award grants to eligible 5
manufacturers of cement, concrete, or construction materials in the State that use 6
certain coal combustion by–products; requiring each unit of State government to give 7
preference to certain b ids that demonstrate the use of certain coal combustion 8
by–products when awarding procurement contracts; and generally relating to coal 9
combustion by–products. 10
BY repealing and reenacting, without amendments, 11
Article – Environment 12
Section 2–1205(a) and (g) 13
Annotated Code of Maryland 14
(2013 Replacement Volume and 2025 Supplement) 15
BY repealing and reenacting, without amendments, 16
Article – Environment 17
Section 9–289(a) 18
Annotated Code of Maryland 19
(2014 Replacement Volume and 2025 Supplement) 20
BY adding to 21
Article – Environment 22
Section 9–292 23
Annotated Code of Maryland 24
(2014 Replacement Volume and 2025 Supplement) 25
BY adding to 26
Article – State Finance and Procurement 27
2 HOUSE BILL 1065
Section 14–419 1
Annotated Code of Maryland 2
(2021 Replacement Volume and 2025 Supplement) 3
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 4
That the Laws of Maryland read as follows: 5
Article – Environment 6
2–1205. 7
(a) The State shall develop plans, adopt regulations, and implement programs 8
that reduce statewide greenhouse gas emissions in accordance with this subtitle. 9
(g) (1) Paragraphs (2) and (3) of this subsection apply only to persons who 10
engaged in manufacturing in 2023. 11
(2) (i) Unless required by federal law or regulations or existing State 12
law, regulations adopted by State agencies to implement a final plan may not: 13
1. Require any manufacturer to reduce greenhouse gas 14
emissions below the emissions levels for that manufacturer in 2023; 15
2. Cause an increase in costs to a manufacturer that are 16
significantly beyond the costs that were incurred by that manufacturer in 2023; or 17
3. Require any manufacturer that is engaged in the creation 18
of renewable energy components or technology aimed at greenhouse gas emissions 19
reductions to reduce greenhouse gas emissions. 20
(ii) Subparagraph (i) of this paragraph may not be construed to 21
exempt greenhouse gas emissions sources in the State’s manufacturing sector from the 22
obligation to comply with: 23
1. Greenhouse gas emissions monitoring, recordkeeping, and 24
reporting requirements for which the Department had existing authority under § 2–301(a) 25
of this title on or before October 1, 2009; or 26
2. Greenhouse gas emissions reductions required of the 27
manufacturing sector as a result of the State’s implementation of the Regional Greenhouse 28
Gas Initiative. 29
(3) A regulation adopted by a State agency for the purpose of reducing 30
greenhouse gas emissions in accordance with this section may not be construed to result in 31
a significant increase in costs to the S tate’s manufacturing sector unless the source would 32
not incur the cost increase but for the new regulation. 33
HOUSE BILL 1065 3
9–289. 1
(a) (1) In this part, “coal combustion by–product” means the residue generated 2
by or resulting from the burning of coal. 3
(2) “Coal combustion by–product” includes: 4
(i) Fly ash; 5
(ii) Bottom ash; 6
(iii) Boiler slag; 7
(iv) Pozzolan, as defined in § 15–407 of this article; and 8
(v) Solid residuals removed by air pollution control devices from the 9
flue gas and combustion chambers of coal–burning furnaces and boilers. 10
9–292. 11
(A) IN THIS SECTION, “GRANT PROGRAM” MEANS THE COAL COMBUSTION 12
BY–PRODUCT MATERIALS GRANT PROGRAM. 13
(B) THERE IS A COAL COMBUSTION BY–PRODUCT MATERIALS GRANT 14
PROGRAM IN THE DEPARTMENT. 15
(C) THE PURPOSE OF THE GRANT PROGRAM IS TO AWARD G RANTS TO 16
ELIGIBLE MANUFACTURE RS OF CEMENT , CONCRETE, OR CONSTRUCTION 17
MATERIALS IN THE STATE. 18
(D) THE DEPARTMENT SHALL: 19
(1) ADMINISTER THE GRANT PROGRAM; 20
(2) IDENTIFY AND APPLY FOR FUNDING FOR THE GRANT PROGRAM; 21
AND 22
(3) IN COORDINATION WITH THE MARYLAND ENERGY 23
ADMINISTRATION, AUDIT AND CERTIFY GR ANTS AWARDED UNDER T HE GRANT 24
PROGRAM. 25
(E) ELIGIBLE MANUFACTURER S OF CEMENT , CONCRETE, OR 26
CONSTRUCTION MATERIALS SHALL, TO THE SATISFACTION OF THE DEPARTMENT: 27
4 HOUSE BILL 1065
(1) (I) ACCEPT COAL COMBUSTION BY–PRODUCTS SOURCED FROM 1
THE STATE AS FEEDSTOCK FO R THE CEMENT , CONCRETE, OR CONSTRUCTION 2
MATERIALS; 3
(II) PROCESS THE COAL COMB USTION BY –PRODUCTS 4
APPROPRIATELY; AND 5
(III) PRODUCE THE FINISHED CEMENT, CONCRETE, OR 6
CONSTRUCTION MATERIALS USING THE STATE–SOURCED FEEDSTOCK; 7
(2) FOR PROJECTS IN AND N EAR COMMUNITIES IMPA CTED BY THE 8
GENERATION OF COAL COMBUSTION BY–PRODUCTS: 9
(I) CREATE JOBS LOCATED I N COMMUNITIES IMPACT ED BY 10
THE GENERATION OF COAL COMBUSTION BY–PRODUCTS THAT MEET: 11
1. PREVAILING WAGE STANDARDS; OR 12
2. STANDARDS SET BY AN A PPLICABLE COMMUNITY 13
BENEFITS AGREEMENT OR WORKFORCE PARTICIPATION PLAN; AND 14
(II) PRIORITIZE: 15
1. EMPLOYMENT OF LOCAL RESIDENTS; AND 16
2. THE USE OF INTERNSHIP S, APPRENTICESHIPS, AND 17
TRAINING PROGRAMS IN CONSTRUCTION AND COA L COMBUSTION BY –PRODUCT 18
REUSE; AND 19
(3) DEMONSTRATE MEASURABLE GREENHOUS E GAS EMISSIONS 20
REDUCTION BENEFITS T HROUGH THE USE OF TH E STATE–SOURCED FEEDSTOCK 21
COMPARED WITH CONVENTIONAL FEEDSTOCK. 22
(F) NOTWITHSTANDING § 2–1205(G) OF THIS ARTICLE , AN ELIGIBLE 23
MANUFACTURER OF CEME NT, CONCRETE, OR CONSTRUCTION MATE RIALS MAY BE 24
ELIGIBLE FOR GREENHOUSE GAS EMISSIONS RELIEF OR CREDIT RECOGNITION FOR 25
EMISSIONS LEVELS BELOW LEVELS FOR THAT MANUFACTURER IN 2023. 26
(G) (1) THE DEPARTMENT SHALL ADOPT REGULATIONS TO IMPLEMENT 27
THIS SECTION. 28
(2) REGULATIONS ADOPTED UNDER THIS SUBSECTION SHALL: 29
HOUSE BILL 1065 5
(I) INCLUDE THE METHOD BY WHICH A GRANT AMOUNT IS 1
DETERMINED BASED ON THE TONNAGE OF STATE–SOURCED COAL COMBUST ION 2
BY–PRODUCTS USED BY AN ELIGIBLE MANUFACTURER ABOVE A THRESHOLD 3
DETERMINED BY THE DEPARTMENT; 4
(II) ESTABLISH CRITERIA FO R STATE–SOURCED COAL 5
COMBUSTION BY–PRODUCTS THAT: 6
1. INCLUDE ENVIRONMENTAL REVIEW OF SOURCES AND 7
METHODS OF TRANSPORT IN ORDER TO ENSURE N O INCREASE IN RISK T O 8
GROUNDWATER OR AIR EMISSIONS; 9
2. ENSURE THAT REUSED CO AL COMBUSTION 10
BY–PRODUCTS MEET ENVIRONMENTAL SAFETY STANDARDS WITH RESPECT TO: 11
A. LEACHING; 12
B. QUALITY OF REUSE; AND 13
C. TRACEABILITY; AND 14
3. ACCOUNT FOR THE MONITORING AND REPORTING OF 15
APPLICABLE CONTAMINANTS IN THE REUSE OF COAL COMBUSTION BY–PRODUCTS. 16
(H) (1) ON OR BEFORE OCTOBER 1, 2027, AND EACH OCTOBER 1 17
THEREAFTER, ELIGIBLE MANUFACTURERS THAT RECEIVED A GRAN T UNDER THE 18
GRANT PROGRAM SHALL REPORT TO THE DEPARTMENT ON: 19
(I) TONNAGE OF COAL COMBUSTION BY–PRODUCTS USED; 20
(II) JOBS CREATED AND LOCA TIONS OF THE JOBS , WITH 21
EMPHASIS ON THE CREA TION OF JOBS IN COMM UNITIES IMPACTED BY THE 22
GENERATION OF COAL COMBUSTION BY–PRODUCTS; AND 23
(III) REDUCTIONS ACHIEVED W ITH RESPECT TO GREEN HOUSE 24
GAS EMISSIONS. 25
(2) ON OR BEFORE DECEMBER 1, 2027, AND EACH DECEMBER 1 26
THEREAFTER, THE DEPARTMENT SHALL REPO RT TO THE GOVERNOR AND, IN 27
ACCORDANCE WITH § 2–1257 OF THE STATE GOVERNMENT ARTICLE, THE GENERAL 28
ASSEMBLY THE FOLLOWING INFORMATION: 29
(I) WITH RESPECT TO THE GRANT PROGRAM: 30
6 HOUSE BILL 1065
1. TONNAGE OF STATE–SOURCED COAL COMBUST ION 1
BY–PRODUCTS USED; 2
2. GREENHOUSE GAS EMISSI ONS REDUCTIONS 3
ACHIEVED; 4
3. JOBS CREATED , DISAGGREGATED BY COM MUNITIES 5
IMPACTED BY THE GENERATION OF COAL COMBUSTION BY–PRODUCTS; 6
4. THE NUMBER OF GRANTS AWARDED; AND 7
5. ANY ENVIRONMENTAL OR PUBLIC HEALTH 8
INCIDENTS REPORTED W ITH RESPECT TO THE R EUSE OF COAL COMBUST ION 9
BY–PRODUCTS; AND 10
(II) THE NUMBER OF ELIGIBLE PROJECTS GIVEN PREFERENCE 11
IN ACCORDANCE WITH § 14–419 OF THE STATE FINANCE AND PROCUREMENT 12
ARTICLE. 13
(3) ON OR BEFORE DECEMBER 1, 2031, THE DEPARTMENT SHALL 14
REPORT TO THE GOVERNOR AND, IN ACCORDANCE WITH § 2–1257 OF THE STATE 15
GOVERNMENT ARTICLE, THE GENERAL ASSEMBLY: 16
(I) AN EVALUATION OF THE GRANT PROGRAM, INCLUDING 17
TOTAL JOBS CREATED AND ENVIRONMENTAL OUTCOMES; AND 18
(II) RECOMMENDED ADJUSTMENTS TO THE GRANT PROGRAM. 19
Article – State Finance and Procurement 20
14–419. 21
(A) (1) IN THIS SECTION THE F OLLOWING WORDS HAVE THE MEANINGS 22
INDICATED. 23
(2) “COAL COMBUSTION BY–PRODUCT” HAS THE MEANING STATED IN 24
§ 9–289 OF THE ENVIRONMENT ARTICLE. 25
(3) “ELIGIBLE PROJECT ” MEANS A PROJECT THAT RECEIVES 26
GREATER THAN 50% OF ITS PROJECT COSTS FROM THE STATE. 27
HOUSE BILL 1065 7
(B) TO THE EXTENT PRACTIC ABLE AND FOR ELIGIBLE PRO JECTS, EACH 1
UNIT OF THE STATE GOVERNMENT SHALL GIVE PREFERENCE TO BIDS THAT: 2
(1) USE CERTIFIED STATE–SOURCED COAL COMBUSTION 3
BY–PRODUCTS TO PRODUCE CEMENT, CONCRETE, OR CONSTRUCTION MATERIALS 4
IN ACCORDANCE WITH § 9–292 OF THE ENVIRONMENT ARTICLE; AND 5
(2) DEMONSTRATE A QUANTIFIED REDUCTI ON IN EMBODIED 6
GREENHOUSE GAS EMISSIONS BELOW A BASELINE CEMENT MIX, EVIDENCED BY AN 7
ENVIRONMENTAL PRODUCT DECLARATION OR LIFE–CYCLE ASSESSMENT. 8
SECTION 2. AND BE IT FURTHER ENACTED, That it is the intent of the General 9
Assembly that Section 1 of this Act be interpreted consistent with Chapters 201 and 202 of 10
the Acts of the General Assembly of 2023. 11
SECTION 3. AND BE IT FURTHER ENACTED, That this Act shall take effect 12
October 1, 2026. 13