Signed by Governor Martin O'Malley

Vote Smart's Synopsis:

Vote to concur with House amendments and pass a bill that establishes new limits on emissions for specific electricity generating facilities, and requires the Governor, no later than June 30, 2007, to include Maryland as a participant in the Regional Greenhouse Gas Initiative: a greenhouse gas emissions cap and trade program established for power plants located in Northeastern United States.

Highlights:

- Specifies that Maryland may withdraw from the Regional Greenhouse Gas Initiative at any time beginning January 1, 2009 (Sec. 1). - Limits the annual collective emissions of all affected electricity generating facilities to the following amounts (Sec. 1):

- 20,216 tons of oxides of nitrogen beginning January 1, 2009; - 48,618 tons of sulfur dioxide beginning January 1, 2010; - 16,667 tons of oxides of nitrogen beginning January 1, 2012; and - 37,235 tons of sulfur dioxide beginning January 1, 2013.

- Requires the Department of the Environment to set emissions budgets for each affected facility in order to implement the collective limitations on the emissions of all of the affected facilities (Sec. 1). - Requires affected facilities to annually achieve a minimum 80 percent capture of mercury beginning January 1, 2010, and a 90 percent capture beginning January 1, 2013 (Sec. 1). - Establishes the following penalties for failure to comply with emission limits (Sec. 1):

- Surrender of one oxide of nitrogen allowance for each ton of oxides of nitrogen emitted in excess of the limit between January 1, 2009 and December 31, 2011; - Surrender of one sulfur dioxide allowance for each ton of sulfur dioxide emitted in excess of the limit between January 1, 2010 and December 31, 2012; and - Surrender of oxide of nitrogen allowance for every 2 tons of sulfur dioxide emitted in excess of the limit between January 1, 2010 and December 31, 2012.

- Allows the Department of the Environment to reduce or waive penalties for violations of the emissions budget limits if it can be demonstrated with "clear and convincing evidence" that necessary pollution control equipment is unattainable due to lack of supply or high costs, or will result in significant increases in electricity rates. Any such decision to reduce or waive penalties is subject to judicial review (Sec. 1). - Specifies that the new emission caps apply to electricity generating units in the state that include a coal fired boiler or indirect heat exchanger, but not a facility that operates in combination with equipment used to recover useful thermal energy for industrial, commercial, heating, or cooling purposes through sequential use of energy or one that annually supplies less than one-half of the electricity generated by such unit to any utility power distribution system for sale. Such affected facilities include (Sec. 1):

- H.A. Wagner, Units 2 and 3; - R.P. Smith, Units 3 and 4; - Morgantown Generating Station, Units 1 and 2; - Dickerson, Units 1, 2, and 3; - C.P. Crane, Units 1 and 2; - Chalk Point Generating Station, Units 1 and 2; and - Brandon Shores, Units 1 and 2.

Full Bill Text

Vote Smart's Synopsis:

Vote to pass a bill that establishes new limits on emissions for specific electricity generating facilities, and requires the Governor, no later than June 30, 2007, to include Maryland as a participant in the Regional Greenhouse Gas Initiative: a greenhouse gas emissions cap and trade program established for power plants located in Northeastern United States.

Highlights:

- Specifies that Maryland may withdraw from the Regional Greenhouse Gas Initiative at any time beginning January 1, 2009 (Sec. 1). - Limits the annual collective emissions of all affected electricity generating facilities to the following amounts (Sec. 1):

- 20,216 tons of oxides of nitrogen beginning January 1, 2009; - 48,618 tons of sulfur dioxide beginning January 1, 2010; - 16,667 tons of oxides of nitrogen beginning January 1, 2012; and - 37,235 tons of sulfur dioxide beginning January 1, 2013.

- Requires the Department of the Environment to set emissions budgets for each affected facility in order to implement the collective limitations on the emissions of all of the affected facilities (Sec. 1). - Requires affected facilities to annually achieve a minimum 80 percent capture of mercury beginning January 1, 2010, and a 90 percent capture beginning January 1, 2013 (Sec. 1). - Establishes the following penalties for failure to comply with emission limits (Sec. 1):

- Surrender of one oxide of nitrogen allowance for each ton of oxides of nitrogen emitted in excess of the limit between January 1, 2009 and December 31, 2011; - Surrender of one sulfur dioxide allowance for each ton of sulfur dioxide emitted in excess of the limit between January 1, 2010 and December 31, 2012; and - Surrender of oxide of nitrogen allowance for every 2 tons of sulfur dioxide emitted in excess of the limit between January 1, 2010 and December 31, 2012.

- Allows the Department of the Environment to reduce or waive penalties for violations of the emissions budget limits if it can be demonstrated with "clear and convincing evidence" that necessary pollution control equipment is unattainable due to lack of supply or high costs, or will result in significant increases in electricity rates. Any such decision to reduce or waive penalties is subject to judicial review (Sec. 1). - Specifies that the new emission caps apply to electricity generating units in the state that include a coal fired boiler or indirect heat exchanger, but not a facility that operates in combination with equipment used to recover useful thermal energy for industrial, commercial, heating, or cooling purposes through sequential use of energy or one that annually supplies less than one-half of the electricity generated by such unit to any utility power distribution system for sale. Such affected facilities include (Sec. 1):

- H.A. Wagner, Units 2 and 3; - R.P. Smith, Units 3 and 4; - Morgantown Generating Station, Units 1 and 2; - Dickerson, Units 1, 2, and 3; - C.P. Crane, Units 1 and 2; - Chalk Point Generating Station, Units 1 and 2; and - Brandon Shores, Units 1 and 2.

Full Bill Text