ROBERT L. EHRLICH, JR., Governor                             Ch. 181

BY repealing and reenacting, with amendments,
Article - Natural Resources
Section 3-302

Annotated Code of Maryland
(2000 Replacement Volume and 2003 Supplement)

BY repealing and reenacting, with amendments,
Article - Public Utility Companies
Section 7-203

Annotated Code of Maryland
(1998 Replacement Volume and 2003 Supplement)

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF
MARYLAND, That the Laws of Maryland read as follows:

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 electricity distributed to retail electric
customers within the State, an environmental surcharge per kilowatt hour of electric
energy distributed in the State to be paid by any electric company as defined in §
1-101 of the Public Utility Companies Article. The Public Service Commission shall
impose the surcharge per kilowatt hour of electric energy 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 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 mill per kilowatt hour or $1,000 per month and the surcharge may not
continue beyond fiscal year [2005] 2010.

(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

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