Article - Natural Resources

3-302.

(a) There is an Environmental Trust Fund. For the purpose of this subtitle,
there is established as an added cost of [generation] ELECTRICITY DISTRIBUTED TO
RETAIL ELECTRIC CUSTOMERS WITHIN THE STATE, an environmental surcharge per
kilowatt hour of electric energy [generated] DISTRIBUTED in the State to be paid by
any electric company as defined in § 1-101 of the Public Utility Companies Article.
[This surcharge initially shall be assessed at 0.1 mill per kilowatt hour as of January
1, 1972.] The Public Service Commission shall impose the surcharge per kilowatt hour
of electric energy [generated] DISTRIBUTED TO RETAIL ELECTRIC CUSTOMERS
within the State and shall authorize the electric companies to add the full amount of
the surcharge to RETAIL ELECTRIC customers' bills. To the extent that the surcharge is
not collected from RETAIL ELECTRIC customers, the surcharge shall be deemed a cost
of [generation] DISTRIBUTION and shall be allowed and computed as such, together
with other allowable expenses, for rate-making purposes. Revenues from the surcharge
shall be collected by the Comptroller and placed in the Fund.

(b) (1) The Secretary, in consultation with the Director of the Maryland
Energy Administration, annually shall coordinate the preparation of a budget
required to carry out the provisions of this subtitle. Upon approval of the budget by the
General Assembly, the Public Service Commission shall establish the amount of the
surcharge per kilowatt hour for the fiscal year beginning July 1, 1972, and for each
subsequent fiscal year.

(2) Notwithstanding any other provisions of this subtitle, the amount of
the surcharge for each account FOR EACH RETAIL ELECTRIC CUSTOMER may not
exceed the lesser of 0.15 [mil] MILL per kilowatt hour or $1,000 per month and the
surcharge may not continue beyond Fiscal Year [2000] 2005.

(3) The Comptroller shall maintain the method of collection of the
surcharge from the companies and the collections shall accrue to the Fund. The
Department shall credit against the amount required to be paid into the
Environmental Trust Fund by each electric company an amount equal to 1 1/2% of the
total surcharge attributed to each company on the basis of the electricity [generated]
DISTRIBUTED within Maryland.

(c) The Secretary shall administer the Fund. The Fund is subject to the
provisions for financial management and budgeting established by the Department of
Budget and Management. The moneys in the Fund shall be used to carry out the
provisions of this subtitle as provided for in the budget, except that 10% of all moneys
accruing to the Fund from July 1, 1978 through June 30, 1983 shall be used to
supplement funds necessary to carry out the duties of the People's Counsel of the Public
Service Commission. The People's Counsel shall submit an annual budget of necessary
supplemental funds to the Department to be incorporated in the Department's budget.
For the purposes of this subtitle, the Secretary, in consultation with the Director of the
Maryland Energy Administration, may execute appropriate contracts with any State
or federal agency, research organization, industry, or academic institution to conduct
the necessary research, construct or acquire, or both, real property including physical