AGENDA ITEM 16
February 11,2014
Public Hearing
MEMORANDUM
TO:
FROM:
Transportation, Infrastructure, Energy and Environment Committee
~~ichael
Faden, Senior Legislative Attorney
~manda
Mihill, Legislative
Attorney04~
Public Hearing:
Bill 5-14, Environmental Sustainability
Assessments
SUBJECT:
Social Cost of Carbon
Bill 5-14, Environmental Sustainability Social Cost of Carbon Assessments, sponsored
by Councilmembers Berliner, Floreen, Riemer, EIrich, Andrews, and Navarro, was introduced on
January 28, 2014. A Transportation, Infrastructure, Energy and Environment Committee
worksession is tentatively scheduled for February 26,2014 at 9:30 a.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
th~
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 13.
The Fiscal and Economic Impact statement for this Bill will be transmitted after March
17 (see ©4).
This packet contains:
Bill 5-14
Legislative Request Report
OMB and Finance Memo
Circle
#
1
3
4
F:\LAw\BILLS\1405 Social Cost OfCarbon\Public Hearing Memo.Doc
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Bill No.
5-14
Concerning: Environment Sustainability
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'-'-o::<!n.!.:::e:..--_ _ _ _ __
Ch. _ _, Laws of Mont. Co. _ __
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 unqffected by bill.
The County Council for Montgomery County, Maryland approves the following Act:
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BILL No. 5-14
1
2
Sec.
1.
Section 18A-16A is added as follows:
18A-16A.
Social cost of carbon assessment.
Definitions.
In this Section, the following words have the meanings
3
4
W
indicated:
Director
means the Director of the Office or the Director's designee.
Applicable capital project
means any proposed building project
5
6
7
8
9
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
10
11
12
.
damages avoided associated with the increase or reduction of one
metric ton of carbon dioxide emissions.
(hl
13
14
15
16
17
18
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.
!.£)
In performing its analysis, OMB must use the standard developed
.Qy
the United States Environmental Protection Agency or
Director finds equivalent.
~
standard the
19
20
21
22
@
In performing its analysis, OMB should consult the Department of
Environmental Protection and any other County department or agency
with expertise in environmental sustainability.
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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:
ECONOMIC
IMPACT:
EVALUATION:
EXPERIENCE
ELSEWHERE:
SOURCE OF
INFORMATION:
APPLICATION
WITHIN
MUNICIPALITIES:
PENALTIES:
Not applicable.
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ROCKVJl.LE,MARY1..AND
1v1 EMORAN DU M
February
5, 2014
TO:
FROM:
, 9JJtce of
Management
and Budget
epmtment of Finance
SUBJECTS:
8iIl2-14, Environmc1ltal Sustainability - Buildings"
Benchmarking
B·il! 3-14, Buildings .. Energy
Efliciency .....
Energy Standards
Bill 4-14. Street and Roads .... County Street
Lights
Bill 5-14, Environmental
Sustainability .....
Social
Cost
of Carbon Assessments
Bill 6-14, Environmental
SllstainabHity -
Office of
SustainabiJity -
Estahlished
Bill
7-14,
Contracts and
Procurement -
Certified Green
Business Program
Bill
8-14, Bllildings--County Buildings··Clean Energy
Renewable
Technology
Bill 9-14. Environmental Sustainability -- Renewable Energy - County
PUfchasl:)
BiU 10-14,
Buildings -
Solar
Pamit:>·-
Expedited
Review
Bill 11-14, Buildings .... Electric Vehicle Charging Station
Permits -
Expedited
Review
As
required by Section 2-8lA of the County Code, we arc infimning
that
transmittal
of
the
fiscal
and economic impact
statements for
the
above referenced
legislation
will
be delayed
because more time is needed to coordinate with the
affected
depar1rncnts,
collect ini'ormati,,)Il, and
complete
our
analysis of
the
tlscal and economic impacts, While we are not able to conduct the
required detailed analyses at this time,
it
is
clear that a number of these bills could have significant
fiscal impacts.
Due to this year's heavy workload on Executive branch
statr
in developing both a
fill)
capital
budget and an operating
budget
the fiscal and economic
statements
'will
be tran:;rnitted after
March
17,20]4.
JAH:fz
cc; Bonnie Kirkland, Assistant Chief Administrative Officer
Lisa Austin, Offices of the County Executive
Joy Nurmi,
Special
Assistant to the County
Executive
Patrick Lacefield, Direct.or, Public Information Office
Marc
P. Hansen, Office of the County Attorney
({obert Hagedoorn,
Department of Finance
David Platt. Department of
Finance
Alex Espinosa, Offic·e of l\-1anagemcnt and Budget
Mary Beck, Office of Management and Budget
NaeemMia,
Oftice of
Management
and Budget
Felicia Zhang,
Offk(~
of :Y1anagement and Budget