During the 2011 session of the Maryland General Assembly, legislators introduced 2,353 bills and by midnight on sine die, April 11, the legislature had passed 707 of those bills. This was not a very green year. Only a very modest number of those bills advance green building or sustainable business.

Despite only nascent interest by state elected leaders in embracing any of the environmental issues of the day, savvy businesses will find opportunities to lead and profit in matters of green building and sustainable business, including opportunities advantaged by these newly enacted laws.

This compilation is a bill by bill review of green building legislation passed by the state legislature in 2011. The determination of what is a green building bill is, admittedly, subjective and for the purposes of this exercise a wide net was cast.

Limitations of time and space do not permit this compilation to consider the bills that did not pass. From off shore wind turbines to natural gas drilling in the Marcellus Shale and from posting Energy Star ratings of state buildings to limiting new septic systems, there was much environmental legislation that was not enacted; not to mention the non environmental hot button issues of same sex marriage and direct shipment of wine from retailers that consumed much of the public debate but also failed to muster enough votes to pass.

Under the Maryland Constitution, the Governor has the option of signing, vetoing, or letting legislation become law without his signature. Governor Martin O’Malley has already signed 160 bills into law. Additional bill signings are scheduled after this article is published on April 25, May 10 and May 19.

Green Building

HB 972 authorizes the Department of Housing and Community Development (DHCD) to adopt by regulation the International Green Construction Code and authorizes local jurisdictions to adopt and make local amendments to the IGCC, as an overlay to and voluntary alternative to existing construction codes.

HB 630 requires the DHCD to encourage the construction of new “high-performance homes.” The bill defines a high-performance home as a new residential structure that meets or exceeds the current version of either the Silver rating of the International Code Council’s 700 National Green Building Standards, or the Silver rating of the U.S. Green Building Council’s LEED for Homes Rating System.

HB 643 prohibits State funds from being used to install or replace a permanent outdoor luminaire on the grounds of any building or facility owned or leased by the State unless the fixture meets specified criteria regarding energy efficiency and light emission. Luminaires installed or replaced with State funds must maximize energy conservation and minimize light pollution, glare, and light trespass, provide the minimum illumination necessary for the intended purpose of the lighting, and be a restricted uplight luminaire if it has an output of more than 1,800 lumens.

Electric Vehicles

HB 163 allows a State income tax credit for 20% of the cost of qualified electric vehicle recharging equipment placed in service in tax years 2011, 2012, and 2013, limited to $400 for each system. The credit is limited to 1 recharging system per individual and 30 recharging systems per business entity. A taxpayer can claim the credit only if the electric vehicle recharging equipment qualifies under Section 30C of the Internal Revenue Code. Taxpayers seeking the credit must first apply for an initial credit certificate from the Maryland Energy Administration.

SB 179/ HB 164 require the Public Service Commission to establish by June 30, 2013, a pilot program for electric customers to charge electric vehicles during off-peak hours and to report the results by February 1, 2015. The pilot program must include incentives for residential, commercial, and governmental customers to recharge electric vehicles. The law allows the Commission to approve additional electric vehicle recharging pilot programs if it chooses to do so.

SB 176/ HB 167 establish the Maryland Electric Vehicle Infrastructure Council to develop a plan for integrating electric vehicles into the State’s transportation network. By December 1, 2012, the Council is to report to the Governor and the General Assembly on recommendations for public charging stations, incentives to support electric vehicle ownership, and ways to display pricing information at public charging stations.

Alternative Energy

SB 380/ HB 860 alter the net energy metering program by changing the way an eligible customer electric generator may accrue credits from excess generation from a dollar basis to a kilowatt-hour (kWh) basis. Net energy metering is the measurement of the difference between the electricity that is supplied by an electric company and the electricity that is generated by an eligible customer generator and fed back to the electric company over the eligible customer generator’s billing period. Eligible customer generators may accrue net excess generation for a 12 month accrual period and electric companies must carry forward net excess generation until the customer’s electricity consumption eliminates the net excess generation or the 12 month accrual period expires. The bill repeals existing provisions that govern payment for excess generation and establishes new rates and payment conditions for a customer’s net excess generation at the end of the 12 month accrual period. The bill also repeals the authority of the Public Service Commission (PSC) to require the use of a dual meter for certain customer-generators and related provisions, alters a reporting deadline for PSC, and establishes a monthly payment option for customers of certain electric cooperatives.

HB 502/ SB 398 exempts the sale of electricity generated by solar energy equipment or residential wind energy equipment for use in residential property owned by an eligible customer generator from the State sales and use tax. For some installations of solar panels on residential structures, rather than selling these panels to customers due to the potentially high material and installation costs, the company installing the panels and the customer enter into an agreement whereby the customer purchases the electricity generated from the solar panels, rather than purchasing the solar equipment. It is unclear whether the sale of electricity under this type of arrangement would be subject to or exempt from the State sales and use tax. The bill is intended to provide the same sales tax exemption for the purchase of electricity as if it were provided to them under a rate schedule on file with PSC.

SB 690 alters the renewable energy portfolio standard to include waste to energy as a Tier 1 renewable resource rather than a Tier 2 renewable resource. There are three major solid waste incinerator sites in Maryland that are today certified as Tier 2 renewable facilities and art least two more are planned.

SB 717/ HB 933 establish solar water heating systems as a Tier 1 renewable source eligible to meet the Tier 1 solar requirements of Maryland’s renewable energy performance standards.

HB 306 reestablishes the Task Force on Solar Hot Water Systems in Prince George’s County. The task force must develop a business plan to achieve substantial use of solar hot water systems over a relatively short period of time in a way that saves money for Prince George’s County residents and businesses and that reduces carbon emissions.

SB 271/ HB 275 expand the sources of generation that are eligible for net energy metering to include a closed conduit hydroelectric generating facility. A closed conduit hydroelectric facility must generate electricity within existing piping or limited adjacent piping of a potable water supply system, be owned by a municipality or public water authority and be designed to produce less energy than is consumed to operate the water supply system (e.g., the City of Frostburg).

Government Incentives

HB 877 repeals obsolete references to a “designated neighborhood” and replaces them with “sustainable community” and repeals designated neighborhoods from inclusion within the definition of a Priority Funding Area (PFA), as consistent with the Sustainable Communities Act of 2010. The Sustainable Communities Act of 2010 reestablished the Heritage Structure Rehabilitation Tax Credit Program as the Sustainable Communities Tax Credit Program, included certain enhanced tax credits for LEED Gold certified projects, and extended the program’s termination date through fiscal 2014. This bill also clarifies that any designated neighborhood existing before January 1, 2010, continues to qualify as a PFA.

HB 601 allows an applicant that has proceeded with a substantial portion of a commercial rehabilitation to apply for the Sustainable Communities Act tax credit if the rehabilitation work has been approved under the federal historic tax credit.

Recycling

HB 602 requires the Maryland Transit Administration and the Maryland Department of Transportation, in consultation with the Washington Metropolitan Area Transit Authority, to jointly study and make recommendations relating to the establishment of a program to place collection bins for recycling adjacent to collection bins for garbage at transit stations in Maryland. The recommendations must identify transit stations where recycling would be the most practicable and economically feasible. A report of the recommendations must be submitted by December 1, 2011.

HB 817 According to EPA, yard trimmings and food residuals together constitute 26% of the U.S. municipal solid waste stream. This bill requires MDE to educate the public about composting and to promote waste diversion.

Chemical Releases

SB 487/ HB 573 make various changes to State law primarily related to the nitrogen and phosphorus content of specialty fertilizers labeled for use on turf, labeling of specialty fertilizers used on turf, and nonagricultural application of commercial and specialty fertilizer. In addition to establishing fertilizer content, labeling requirements (i.e., “Do not apply near water, storm drains or drainage ditches. Do not apply if heavy rain is expected. Apply this product only to your lawn, and sweep any product that lands on the driveway, sidewalk, or street back onto your lawn.”), the bill also requires the Maryland Department of Agriculture, in consultation with the University of Maryland, to establish a certification program for professional fertilizer applicators as well as a public education program.

SB 320 extends the date after which detergents used in commercial dishwashers may not contain more than 0.5% phosphorus from July 1, 2010, to July 1, 2013. By reducing the level of phosphorus in wastewater influent, the bill will likely cause owners of wastewater treatment plants, most of which are local governments, to reduce operating costs.

Benefit LLCs

SB 595/ HB 1151 authorize a Maryland limited liability company (LLC) to elect to be a “benefit LLC.” The bills are similar to the law enacted in 2010 which established “benefit corporations” as a new form of business entity in Maryland. Like a benefit corporation, a benefit LLC must deliver to each member an annual benefit report, which must include an assessment of the societal and environmental performance of the benefit LLC prepared in accordance with a third party standard.

If we can assist you in finding opportunities to lead and profit in green building and sustainable business, including pursuing opportunities advantaged by these newly enacted laws, do not hesitate to give me a call or send an email.