EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
[Brackets] indicate matter deleted from existing law.
*hb1261*
HOUSE BILL 1261
C5, M5 2lr1454
CF SB 733
By: Delegate Queen
Introduced and read first time: February 11, 2022
Assigned to: Economic Matters
A BILL ENTITLED
AN ACT concerning 1
Community Solar Energy Generating Systems Pilot Program – Alterations 2
FOR the purpose of repealing the requirement that a community solar energy generating 3
system be located in the same electric service territory as a subscriber for the 4
subscriber to receive monthly electric bill credits; requiring the Public Service 5
Commission to require an electric company to file a revised tariff and protocol related 6
to the application of bill credits by a certain date; and generally relating to the 7
Community Solar Energy Generating Systems Pilot Program. 8
BY renumbering 9
Article – Public Utilities 10
Section 7–306.2(f) and (g), respectively 11
to be Section 7–306.2(g) and (h), respectively 12
Annotated Code of Maryland 13
(2020 Replacement Volume and 2021 Supplement) 14
BY repealing and reenacting, with amendments, 15
Article – Public Utilities 16
Section 7–306.2(a) 17
Annotated Code of Maryland 18
(2020 Replacement Volume and 2021 Supplement) 19
BY repealing and reenacting, without amendments, 20
Article – Public Utilities 21
Section 7–306.2(b) and (d)(1), (5), and (6) 22
Annotated Code of Maryland 23
(2020 Replacement Volume and 2021 Supplement) 24
BY adding to 25
Article – Public Utilities 26
Section 7–306.2(f) 27 2 HOUSE BILL 1261
Annotated Code of Maryland 1
(2020 Replacement Volume and 2021 Supplement) 2
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 3
That Section(s) 7–306.2(f) and (g), respectively, of Article – Public Utilities of the Annotated 4
Code of Maryland be renumbered to be Section(s) 7–306.2(g) and (h), respectively. 5
SECTION 2. AND BE IT FURTHER ENACTED, That the Laws of Maryland read 6
as follows: 7
Article – Public Utilities 8
7–306.2. 9
(a) (1) In this section the following words have the meanings indicated. 10
(2) “Baseline annual usage” means: 11
(i) a subscriber’s accumulated electricity use in kilowatt–hours for 12
the 12 months before the subscriber’s most recent subscription; or 13
(ii) for a subscriber that does not have a record of 12 months of 14
electricity use at the time of the subscriber’s most recent subscription, an estimate of the 15
subscriber’s accumulated 12 months of electricity use in kilowatt–hours, determined in a 16
manner the Commission approves. 17
(3) “Community solar energy generating system” means a solar energy 18
system that: 19
(i) is connected to the electric distribution grid serving the State; 20
(ii) [is located in the same electric service territory as its subscribers; 21
(iii)] is attached to the electric meter of a subscriber or is a separate 22
facility with its own electric meter; 23
[(iv)] (III) credits its generated electricity, or the value of its 24
generated electricity, to the bills of the subscribers to that system through virtual net 25
energy metering; 26
[(v)] (IV) has at least two subscribers but no limit to the maximum 27
number of subscribers; 28
[(vi)] (V) does not have subscriptions larger than 200 kilowatts 29
constituting more than 60% of its subscriptions; 30
HOUSE BILL 1261 3
[(vii)] (VI) has a generating capacity that does not exceed 2 1
megawatts as measured by the alternating current rating of the system’s inverter; and 2
[(viii)] (VII) may be owned by any person. 3
(4) “Program” means the Community Solar Energy Generating Systems 4
Pilot Program. 5
(5) “Subscriber” means a retail customer of an electric company that: 6
(i) holds a subscription to a community solar energy generating 7
system; and 8
(ii) has identified one or more individual meters or accounts to which 9
the subscription shall be attributed. 10
(6) “Subscriber organization” means: 11
(i) a person that owns or operates a communi ty solar energy 12
generating system; or 13
(ii) the collective group of subscribers of a community solar energy 14
generating system. 15
(7) “Subscription” means the portion of the electricity generated by a 16
community solar energy generating system that is credited to a subscriber. 17
(8) “Unsubscribed energy” means any community solar energy generating 18
system output in kilowatt–hours that is not allocated to any subscriber. 19
(9) “Virtual net energy metering” means measurement of the difference 20
between the kilowatt–hours or value of electricity that is supplied by an electric company 21
and the kilowatt–hours or value of electricity attributable to a subscription to a community 22
solar energy generating system and fed back to the electric grid over the subscriber’s billing 23
period, as calculated under the tariffs established under subsection (e)(2) of this section. 24
(b) The General Assembly finds that: 25
(1) community solar energy generating systems: 26
(i) provide residents and businesses, including those that lease 27
property, increased access to local solar electricity while encouraging private investment in 28
solar resources; 29
(ii) enhance continued diversification of the State’s energy resource 30
mix to achieve the State’s renewable energy portfolio standard and Greenhouse Gas 31
Emissions Reduction Act goals; and 32 4 HOUSE BILL 1261
(iii) provide electric companies and ratepayers the opportunity to 1
realize the many benefits associated with distributed energy; and 2
(2) it is in the public interest that the State enable the development and 3
deployment of energy generation from community solar energy generating systems in order 4
to: 5
(i) allow renters and low–income and moderate–income retail 6
electric customers to own an interest in a community solar energy generating system; 7
(ii) facilitate market entry for all potential subscribers while giving 8
priority to subscribers who are the most sensitive to market barriers; and 9
(iii) encourage developers to promote participation by renters and 10
low–income and moderate–income retail electric customers. 11
(d) (1) (i) The Commission shall establish a pilot program for a Community 12
Solar Energy Generating System Program. 13
(ii) The structure of the pilot program is as provided in this 14
subsection. 15
(5) An electric company shall use the tariff structure under subsection 16
(e)(2) of this section to provide each subscriber with the credits. 17
(6) A subscriber may not receive credit for virtual net excess generation 18
that exceeds 200% of the subscriber’s baseline annual usage. 19
(F) (1) ON OR BEFORE NOVEMBER 1, 2022, THE COMMISSION SHALL 20
DIRECT AN ELECTRIC C OMPANY PARTICIPATING IN THE PROGRAM TO FILE A 21
REVISED TARIFF AND P ROTOCOL PROVIDING FO R THE APPLICATION OF MONTHLY 22
ELECTRIC BILL CREDIT S TO THE BILL OF A SUBSCRIBER REGARDLESS OF WHETHER 23
THE COMMUNITY SOLAR EN ERGY GENERATING SYST EM IS LOCATED IN THE SAME 24
ELECTRIC SERVICE TER RITORY AS THE SUBSCR IBER. 25
(2) ON OR BEFORE JANUARY 31, 2023, THE COMMISSION SHALL 26
APPROVE OR AMEND AND APPROVE THE TARIFFS AND PROTOCOLS REQUIR ED 27
UNDER PARAGRAPH (1) OF THIS SUBSECTION . 28
SECTION 3. AND BE IT FURTHER ENACTED, That this Act shall take effect 29
October 1, 2022. 30