SECTION 3. AND BE IT FURTHER ENACTED. That the Laws of Maryland
read as follows;

Article - Public Utility Companies

7-203.

(a) (1) The Commission shall:

(i) impose an environmental surcharge per kilowatt hour of
electricity [generated] DISTRIBUTED TO RETAIL ELECTRIC CUSTOMERS within the
State; and

(ii) authorize each electric company to add the full amount of the
surcharge to its customers' bills.

(2) To the extent that an electric company fails to collect the surcharge
from its customers, the amount uncollected shall be deemed a cost of power
[generation] DISTRIBUTION and allowed and computed as such together with other
allowable expenses for purposes of rate-making:

(b) (1) The Comptroller shall collect the revenue from the surcharge imposed
under subsection (a) of this section and place the revenue into a special fund, the
Environmental Trust Fund.

(2) The Comptroller shall maintain the method of collection of the
surcharge from each electric company, and the money collected shall accrue to the
Fund.

(c) (1) Each fiscal year, the Secretary of Natural Resources shall coordinate
the preparation of the annual budget required to carry out the provisions of the Power
Plant Research Program under Title 3, Subtitle 3 of the Natural Resources Article.

(2) Each fiscal year, on approval of the annual budget by the General
Assembly for the Power Plant Research Program, the Commission shall establish the
amount of the environmental surcharge per kilowatt hour of electric energy
[generated] DISTRIBUTED in the State that is to be imposed on each electric company
in accordance with subsection (a) of this section.

(d) (1) Notwithstanding any other provision of this subtitle, the amount of
the surcharge for each account OF EACH RETAIL ELECTRIC CUSTOMER may not exceed
the lesser of 0.15 mill per kilowatt hour or $1,000 per month.

(2) The Department of Natural Resources shall credit against the amount
the Commission requires each electric company to pay into the Environmental Trust
Fund 1.5% of the total surcharge amount attributed to the electric company on the
basis of the amount of the electricity [generated] DISTRIBUTED in the State.

(e) The surcharge imposed under this subtitle shall terminate on June 30,
[2000] 2005.