Bill No.                5-14                          

Concerning: Environment Sustainability – Social Cost of Carbon Assessments                 

Revised:    3/31/2014        Draft No.   2  

Introduced:      January 28, 2014            

Enacted:         April 22, 2014                

Executive:       May 1, 2014                   

Effective:        July 31, 2014                 

Sunset Date:  None                             

Ch.   8      , Laws of Mont. Co.    2014    


County Council

For Montgomery County, Maryland


By: Councilmembers Berliner, Floreen, Riemer, Elrich, Andrews, and Navarro


AN ACT to:

(1)        require the [[Office of Management and Budget to submit an analysis of the social cost of carbon with certain capital projects in the Capital Improvements Program]] Department of General Services to include the social cost of carbon as a factor in determining the return on investment of certain energy efficiency improvements; and

(2)        generally amend County law regarding the analysis of capital projects and environmental sustainability.


By adding

            Montgomery County Code

            Chapter 18A, Environment Sustainability

Section 18A-16A


Boldface                                             Heading or defined term.

Underlining                                          Added to existing law by original bill.

[Single boldface brackets]                  Deleted from existing law by original bill.

Double underlining                              Added by amendment.

[[Double boldface brackets]]              Deleted from existing law or the bill by amendment.

*   *   *                                                  Existing law unaffected by bill.












The County Council for Montgomery County, Maryland approves the following Act:


            Sec. 1. Section 18A-16A is added as follows:

18A-16A.   Social cost of carbon assessment.

          (a)     Definitions. In this Section, the following words have the meanings indicated:

          Department means the Department of General Services.

          Director means the Director of the [[Office]] Department or the Director’s designee.

Energy Project means an energy efficiency or renewable energy improvement to a building or facility that is expected to reduce the onsite  consumption of electricity, natural gas, or other fuels.

          [[Applicable capital project means any proposed building project administered by the Department of General Services or the Parking Management Division of the Department of Transportation.]]

          [[Office means the Office of Management and Budget.]]

Return on Investment means a performance measure used to evaluate the financial return of an energy project, including reasonable forecasts of energy costs and other factors.

Social cost of carbon means an estimate of the economic damages or damages avoided associated with the increase or reduction of one metric ton of carbon dioxide emissions.

(b)     [[For each applicable capital project in the Capital Improvements Program during facility planning, the Office of Management and Budget must include in, or transmit with, the CIP an analysis of the social cost of carbon from that project]] When evaluating a building to determine whether to improve the building’s energy efficiency, the Department must include the social cost of carbon as a factor in determining the return on investment of the proposed energy efficiency improvements.

(c)      In performing its analysis, [[OMB]] the Department must use the standard developed by the United States Environmental Protection Agency or a standard the Director finds equivalent.

(d)     In performing its analysis, [[OMB]] the Department should consult the Department of Environmental Protection and any other County department or agency with expertise in environmental sustainability.