AGENDA ITEM #5D
January 28, 2014
Introduction
MEMORANDUM
TO:
FROM:
County Council
iAmanda Mihill, Legislative
Attorney~itf
~'Michael
Faden, Senior Legislative Attorney
SUBJECT:
Introduction:
Bill 5-14, Environmental Sustainability - Social Cost of Carbon
Assessments
Bill 5-14, Environmental Sustainability Social Cost of Carbon Assessments, sponsored
by Councilmembers Berliner, Floreen, Riemer, EIrich, Andrews, and Navarro, is scheduled to be
introduced on January 28, 2014. A public hearing is tentatively scheduled for February 11,2014
at 7:30 p.m.
Bill 5-14 would 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. The
use of conventional fuels, particularly coal, extracts a cost on society that is not reflected in its
price.
These "external" costs should be factored into the cost/benefit calculations that the
County uses when it assesses the potential for energy efficiency improvements.
Councilmember Berliner explained the purpose of this Bill in his January 14
memorandum describing his proposed energy/environmental package. See ©20 of Bill 2-14,
Agenda Item SA.
This packet contains:
Bill 5-14
Legislative Request Report
Circle #
1
3
F:\LA W\BILLS\ 1405 Social Cost OfCarbon\Intro Memo.Doc
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Bill No.
5-14
Concerning: Environment Sustain ability
Social
Cost
of
Carbon
Assessments
Revised: 12/20/2013
Draft No. 1
Introduced:
January 28, 2014
Expires:
July 28, 2015
Enacted: _ _ _ _ _ _ _ _ __
Executive: _ _ _ _ _ _ _ _ __
Effective: _ _ _ _ _ _ _ _ __
Sunset Date: ---!..!,N:::!,!on.!!:e'--_ _ _ _ __
Ch. _ _ Laws of Mont. Co. _ _ __
I
COUNTY COUNCIL
FOR MONTGOMERY COUNTY, MARYLAND
By: Councilmembers Berliner, Floreen, Riemer, EIrich, Andrews, and Navarro
AN
ACT to:
(1)
(2)
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;
and
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
Underlining
[Single boldface brackets]
Double underlining
[[Double boldface brackets]]
* * *
Heading or defined term.
Added to existing law
by
original
bill.
Deletedfrom existing law
by
original
bill.
Added
by
amendment.
Deletedfrom existing law or the
bill by
amendment.
Existing law unaffected
by bill.
The County Council for Montgomery County, Maryland approves the following Act:
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BILL
No. 5-14
1
Sec. 1. Section 18A·16A is added as follows:
18A-16A.
Social cost of carbon assessment.
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3
4
5
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7
ill
Definitions.
In this Section, the following words have the meanings
indicated:
Director
means the Director of the Office or the Director's designee.
Applicable capital project
means any proposed building project
administered
Qy
the Department of General Services or the Parking
Management Division of the Department of Transportation.
Office
means the Office of Management and Budget.
Social cost gf carbon
means an estimate of the economic damages or
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9
10
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12
damages avoided associated with the increase or reduction of one
metric ton of carbon dioxide emissions.
(hl
13
For each applicable capital project in the Capital Improvements
Program during facility planning, the Office of Management and
Budget must include
i.!:h
or transmit with, the CIP an analysis of the
social cost of carbon from that project.
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15
16
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18
f£)
In performing its analysis, OMB must use the standard developed
Qy
the United States Environmental Protection Agency or
f!
standard the
Director finds equivalent.
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@
In performing its analysis, OMB should consult the Department of
Environmental Protection and any other County department or agency
with expertise in environmental sustainability.
22
F:\LAw\BILLS\ 1405 Social Cost Of Carbon\Bill I.Doc
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LEGISLATIVE REQUEST REPORT
Bill 5-14
Environmental Sustainability
-
Social cost ofCarbon Assessments
DESCRIPTION:
Would 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.
The use of conventional fuels, particularly coal, extracts a cost on
society that is not reflected in its price. These "external" costs should
be factored into the costlbenefit calculations that the County uses
when it assesses the potential for energy efficiency improvements.
To require the County to use EPA's "social cost of carbon"
calculation or a comparable methodology for Capital Improvements
Program purposes.
Office of Management and Budget, Department of General Services
To be requested.
To be requested.
To be requested.
To be researched.
Michael Faden, Senior Legislative Attorney, 240-777-7905
To be researched.
PROBLEM:
GOALS AND
OBJECTIVES:
COORDINATION:
FISCAL IMPACT:
ECONOlVIIC
IMPACT:
EVALUATION:
EXPERIENCE
ELSEWHERE:
SOURCE OF
INFORMATION:
APPLICATION
WITHIN
MUNICIPALITIES:
PENAL TIES:
Not applicable.
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