Birmingham, Alabama (Platts)--19Feb2008

Maryland Governor Martin O'Malley is expected Tuesday to endorse a bill
that would reduce greenhouse gas emissions in the state at least 25% by 2020
and 90% by 2050, his office said.

The reductions would be based on 2006 emission levels and would give
sources that meet the requirements earlier "appropriate credit" for the
voluntary reductions.

The bill (SB 309) also would establish a cap-and-trade system for sources
that emit GHG and require Maryland to work with other states to develop a
regional cap-and-trade system. In addition, it would create the Office of
Climate Change in the Department of the Environment.

The bill suggests, but does not mandate, that companies act aggressively
to achieve intermediate GHG reductions of 10% by 2012 and 15% by 2015. It also
said the state should focus on developing and using clean energy sources.

The Senate Education, Health and Environmental Affairs Committee is
holding a hearing on the measure Tuesday afternoon. The bill has 19 sponsors.

A second energy initiative (SB 278), the Maryland Energy Independence
Act, will be the subject of a Senate Finance Committee hearing Tuesday. That
bill requires electric companies to operate their own peak load or other
generation plants for standard-offer service.

It would require 100% of the power for SOS customers to be generated
within the state by 2018. It would require 10% of the power to be generated in
the state by 2009 and the amount increased 10% each year after that.