Published by www.BNA.com  (Bureau of National Affairs)
Feb 2008

SUMMARY of the MD Global Warming Solution Act of 2008

ANNAPOLIS, Md Legislation that would mandate some of
the most stringent greenhouse gas reductions in the
nation got a boost Feb. 19 2008 when Maryland Gov. Martin
O'Malley (D) announced support for the Global Warming
Solutions Act (S.B. 309/H.B. 712) pending before the
General Assembly.

If enacted, the legislation would require the adoption
of regulations to reduce greenhouse gas emissions in
Maryland 25 percent below 2006 levels by 2020 and 90
percent below 2006 levels by 2050.

The targets mirror those recommended recently in an
interim report of the Maryland Climate Change
Commission, which O'Malley had established by
executive order.

Bill to Require Cap-and-Trade System

S.B. 309/H.B. 712 would create an Office of Climate
Change within the Maryland Department of the
Environment to adopt regulations and implement the
legislation's provisions, which would include a
cap-and-trade system for trading of emissions
allowances among generators.

The measure would require that the regulatory program
be implemented with auction proceeds from the Regional
Greenhouse Gas Initiative, which Maryland joined in
April 2007.

If those proceeds proved inadequate to fund the
administrative and technical costs of implementing the
program, the bill would authorize MDE to establish a
greenhouse gas emissions fee of up to 4 cents per ton
of carbon dioxide-equivalent emitted.

The legislation also would dictate various
considerations the agency would have to take into
account when adopting regulations, including
cost-effectiveness.

S.B. 309/H.B. 712 would direct MDE to establish an
emissions threshold below which the requirements would
not apply. The measure also would authorize, but not
require, the agency to establish offset allowances
through alternative compliance mechanisms.

Rise in Sea Level Cited

In endorsing the climate change legislation, O'Malley
cited scientific estimates "that if greenhouse gas
emissions continue to increase at the present rate,
sea level will rise by over two feet along Maryland's
7,000 miles of shoreline during this century when the
rate of regional land subsidence is taken into
account."

Emphasizing that "the climate crisis is real,"
O'Malley said, "I believe if we act responsibly we can
help reduce the effects of global warming, but also
create thousands of green jobs for Maryland's
economy."

The legislation's potential effect on Maryland's
economy is likely to be a key focus of the debate,
coming on the heels of a $1.3 billion tax increase
approved by lawmakers during a special legislative
session in late 2007 to close a budget gap. Many
Marylanders also have faced dramatic increases in
electricity rates stemming from previously adopted
deregulation policies.

Debate over S.B. 309/H.B. 712 also follows the
adoption of other pollution-reducing bills enacted in
prior sessions, including the Healthy Air Act of 2006,
which restricts air emissions from coal-fired power
plants, and the Clean Cars Act of 2007, which requires
Maryland to implement California's restrictions on
vehicle emissions, beginning with the 2011 model year.

Bills similar to this year's Global Warming Solutions
Act were introduced during the 2007 regular
legislative session, but never moved out of committee.

By Kathy Lundy Springuel