Bill
HB 1417
Maryland DGS must pilot a biogas procurement program to replace natural gas in state operations, assess environmental/economic impacts, and sunset the program in 2028 if conditions
Note: multiple different bills labeled “HB 1417” were included in the materials. This summary covers the Maryland version titled “Department of General Services – Clean Energy Procurement Program – Establishment” (the version with the Department of General Services fiscal note and statutory text). If you meant a different HB 1417 (from another state or on another topic), tell me which one and I’ll summarize that instead.
Summary — Maryland HB 1417 (Clean Energy Procurement Program)
Purpose
- Requires the Maryland Department of General Services (DGS) to establish a short-term Clean Energy Procurement Program to procure biogas for use in the State’s transportation and building sectors. The program’s aim is to evaluate the environmental and economic benefits and costs of replacing fossil natural gas with biogas in support of Maryland’s statewide greenhouse‑gas (GHG) reduction goals.
Key provisions and requirements
- Establishment deadline: DGS must establish the program on or before January 1, 2026.
- Consultation: DGS must consult with the Maryland Green Purchasing Committee (MGPC), the University System of Maryland (USM), and the Maryland Clean Energy Center (MCEC).
- Competitive procurement: DGS must issue a competitive sealed solicitation for biogas and may enter into at least one contract to procure biogas.
- In‑state preference: Procured biogas must be generated in Maryland unless sufficient in‑state biogas is not reasonably available.
- Decision factors for bidding/procurement: solicitations must consider (a) cost‑effectiveness of adopting biogas, (b) the social cost of GHGs (as defined by federal EPA values), and (c) the State’s climate commitments.
- Data collection and analysis:
- DGS must collect data on average natural‑gas consumption in the State and provide it to USM.
- DGS must analyze environmental and economic costs/benefits of expanding biogas use in transportation and buildings.
- USM must complete a carbon lifecycle analysis of biogas and provide results to DGS and MGPC; the Power Plant Research Program (PPRP) will reimburse USM for analysis costs.
- Applicability condition: the procurement program and its requirements apply only if (1) biogas is competitively priced, (2) its quality is satisfactory for the intended purpose, and (3) biogas is readily available.
- Sunset: The program terminates December 31, 2028; the act itself is set to terminate (be abrogated) June 30, 2029. (Bill text lists an effective date of October 1, 2025.)
Who is affected
- State agencies and units that purchase or consume natural gas (via DGS procurement decisions).
- Maryland biogas producers (potential new public off‑takers and market stimulus) and, if needed, out‑of‑state biogas suppliers when in‑state supply is insufficient.
- University System of Maryland (responsible for lifecycle analysis).
- Maryland Clean Energy Center, MGPC, and PPRP (participating/assisting agencies).
- Small businesses: fiscal note indicates minimal direct effect.
Fiscal and timeline highlights (from fiscal note)
- Start‑up and operating expenditures increase: General Fund expenditures of about $73,700 in FY 2026 (annualization and inflation increase to ~$92,100 by FY 2029); additional general/special fund spending of at least $200,000 in FY 2026 only (to cover one‑time costs such as procurement solicitations and contracted analyses). Total state expenditures increase through FY 2029; no impact on revenues. Local governments: none.
Potential impacts and considerations
- Policy evaluation focused: the program is structured as a pilot/evaluation to inform whether biogas can substitute natural gas for GHG reductions consistent with the Climate Solutions Now Act targets.
- Market signal: state procurement could create demand for Maryland‑generated biogas but only if price/quality/availability tests are met.
- Analysis requirements (USM lifecycle carbon study, DGS consumption data) produce decision‑grade information to assess longer‑term adoption costs/benefits.
- Limited scope and sunset: the statutory program is temporary (ends 12/31/2028), meaning longer‑term policy or market changes would require subsequent legislation or rulemaking.
If you want, I can:
- Draft a one‑page pros/cons impact brief for stakeholders (state agencies, biogas producers, utilities).
- Extract the exact statutory text and timeline points into a checklist for implementation planning.
Compiled from official sources — confirm details with the bill’s official record.
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