H.B. 811                                                 VETOES

In accordance with Article II, Section 17 of the Maryland Constitution, today I have
vetoed House Bill 811 - Procurement - Percentage Price Preference - Environmentally
Preferable Products or Equipment.

This bill requires the Secretary of General Services, the Secretary of Transportation,
and the Chancellor of the University System of Maryland to establish a price
preference for the purchase of environmentally preferable products and equipment
(EPPs). The bill directs the Board of Public Works to adopt specified regulations and
requires units of State government to review specifications for the procurement of
goods and services currently in place and adjust those specifications to the maximum
degree possible to increase the purchases of EPPs.

Under current law, the Secretary of General Services, the Secretary of
Transportation, and the Chancellor of the University System of Maryland are
required to establish a percentage price preference, not to exceed five percent for the
purchase of products made from recycled materials. Recycled materials include
post-consumer material, industrial scrap material, compost, and obsolete inventories.

If implemented, House Bill 811 would increase the cost of commodities and equipment
procured by the State. The procurement of environmentally preferable products and
equipment would require a significantly greater devotion of procurement resources
than the present method. Costs associated with such an undertaking would include
initial analysis, increased cost to purchase of products, maintenance, and disposal.

During the past 15 months, my Administration has doubled the prior
Administration's Green Energy Procurement goals. The Department of General
Services conducted a reverse energy auction for the procurement of electricity. As a
result of that procurement, approximately 13 percent of the electricity supplied to
State Executive departments and agencies will be environmentally friendly "green
power," which consists of electricity produced with renewable resources. This more
than doubles the goal set by Executive Order 01.01.2001.02 - Sustaining Maryland's
Future with Clean Power, Green Buildings and Energy Efficiency. That executive
order calls for the procurement of electricity for use within State-owned facilities
with a goal of only six percent to be generated from "green energy".

Maryland receives a large amount of federal funding for construction projects.
Additional costs for environmentally preferable products and equipment may not be
covered by federal standards. As a result, the State would face additional costs that
would otherwise be absorbed by federal funding. Maryland is clearly ahead on the
issue of "green energy", as I have stated above. House Bill 811 presents additional
expenditures that the State is not currently in a position to undertake and cannot
afford.

For the above stated reasons, I have vetoed House Bill 811.

Very truly yours,
Robert L. Ehrlich, Jr.
Governor

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