MD
Maryland House Bill HB440

Maryland 2022 Regular Session

Maryland House Bill HB440 Compare Versions

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1- LAWRENCE J. HOGAN, JR., Governor Ch. 581
21
3-– 1 –
4-Chapter 581
5-(House Bill 440)
62
7-AN ACT concerning
3+EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
4+ [Brackets] indicate matter deleted from existing law.
5+ Underlining indicates amendments to bill.
6+ Strike out indicates matter stricken from the bill by amendment or deleted from the law by
7+amendment.
8+ *hb0440*
89
9-Electricity – Community Solar Energy Generating Systems – Net Energy
10-Metering and Generating Capacity
10+HOUSE BILL 440
11+C5, M5 2lr0750
12+ CF SB 110
13+By: Delegate Clippinger
14+Introduced and read first time: January 20, 2022
15+Assigned to: Economic Matters
16+Committee Report: Favorable with amendments
17+House action: Adopted
18+Read second time: March 12, 2022
1119
12-FOR the purpose of altering the maximum generating capacity of a community solar energy
13-generating system for purposes of net energy metering; altering the maximum
14-generating capacity of a community solar energy generating system; specifying that
15-a community solar energy generating system is not a generating station if the
16-generating capacity of the community solar energy generating system does not
17-exceed a certain wattage; and generally relating to community solar energy
18-generating systems.
20+CHAPTER ______
1921
20-BY repealing and reenacting, without amendments,
21- Article – Public Utilities
22-Section 7–306(a)(1), (4), and (7) and 7–306.2(a)(1)
23- Annotated Code of Maryland
24- (2020 Replacement Volume and 2021 Supplement)
22+AN ACT concerning 1
2523
26-BY repealing and reenacting, with amendments,
27- Article – Public Utilities
28-Section 7–306(g) and 7–306.2(a)(3) and (c)
29- Annotated Code of Maryland
30- (2020 Replacement Volume and 2021 Supplement)
24+Electricity – Community Solar Energy Generating Systems – Net Energy 2
25+Metering and Generating Capacity 3
3126
32- SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND,
33-That the Laws of Maryland read as follows:
27+FOR the purpose of altering the maximum generating capacity of a community solar energy 4
28+generating system for purposes of net energy metering; altering the maximum 5
29+generating capacity of a community solar energy generating system; specifying that 6
30+a community solar energy generating system is not a generating station if the 7
31+generating capacity of the community solar energy generating system does not 8
32+exceed a certain wattage; and generally relating to community solar energy 9
33+generating systems. 10
3434
35-Article – Public Utilities
35+BY repealing and reenacting, without amendments, 11
36+ Article – Public Utilities 12
37+Section 7–306(a)(1), (4), and (7) and 7–306.2(a)(1) 13
38+ Annotated Code of Maryland 14
39+ (2020 Replacement Volume and 2021 Supplement) 15
3640
37-7–306.
41+BY repealing and reenacting, with amendments, 16
42+ Article – Public Utilities 17
43+Section 7–306(g) and 7–306.2(a)(3) and (c) 18
44+ Annotated Code of Maryland 19
45+ (2020 Replacement Volume and 2021 Supplement) 20
3846
39- (a) (1) In this section the following words have the meanings indicated.
47+ SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 21
48+That the Laws of Maryland read as follows: 22 2 HOUSE BILL 440
4049
41- (4) “Eligible customer–generator” means a customer that owns and
42-operates, leases and operates, or contracts with a third party that owns and operates a
43-biomass, micro combined heat and power, solar, fuel cell, wind, or closed conduit hydro
44-electric generating facility that:
4550
46- (i) is located on the customer’s premises or contiguous property;
4751
48- (ii) is interconnected and operated in parallel with an electric
49-company’s transmission and distribution facilities; and Ch. 581 2022 LAWS OF MARYLAND
52+Article – Public Utilities 1
5053
51-– 2 –
54+7–306. 2
5255
53- (iii) is intended primarily to offset all or part of the customer’s own
54-electricity requirements.
56+ (a) (1) In this section the following words have the meanings indicated. 3
5557
56- (7) “Net energy metering” means measurement of the difference between
57-the electricity that is supplied by an electric company and the electricity that is generated
58-by an eligible customer–generator and fed back to the electric grid over the eligible
59-customer–generator’s billing period.
58+ (4) “Eligible customer–generator” means a customer that owns and 4
59+operates, leases and operates, or contracts with a third party that owns and operates a 5
60+biomass, micro combined heat and power, solar, fuel cell, wind, or closed conduit hydro 6
61+electric generating facility that: 7
6062
61- (g) (1) Except as provided in [paragraph] PARAGRAPHS (6) AND (7) of this
62-subsection, the generating capacity of an electric generating system used by an eligible
63-customer–generator for net metering may not exceed 2 megawatts.
63+ (i) is located on the customer’s premises or contiguous property; 8
6464
65- (2) An electric generating system used by an eligible customer–generator
66-for net metering shall meet all applicable safety and performance standards established by
67-the National Electrical Code, the Institute of Electrical and Electronics Engineers, and
68-Underwriters Laboratories.
65+ (ii) is interconnected and operated in parallel with an electric 9
66+company’s transmission and distribution facilities; and 10
6967
70- (3) The Commission may adopt by regulation additional control and testing
71-requirements for eligible customer–generators that the Commission determines are
72-necessary to protect public safety and system reliability.
68+ (iii) is intended primarily to offset all or part of the customer’s own 11
69+electricity requirements. 12
7370
74- (4) An electric company may not require an eligible customer–generator
75-whose electric generating system meets the standards of paragraphs (2) and (3) of this
76-subsection to:
71+ (7) “Net energy metering” means measurement of the difference between 13
72+the electricity that is supplied by an electric company and the electricity that is generated 14
73+by an eligible customer–generator and fed back to the electric grid over the eligible 15
74+customer–generator’s billing period. 16
7775
78- (i) install additional controls;
76+ (g) (1) Except as provided in [paragraph] PARAGRAPHS (6) AND (7) of this 17
77+subsection, the generating capacity of an electric generating system used by an eligible 18
78+customer–generator for net metering may not exceed 2 megawatts. 19
7979
80- (ii) perform or pay for additional tests; or
80+ (2) An electric generating system used by an eligible customer–generator 20
81+for net metering shall meet all applicable safety and performance standards established by 21
82+the National Electrical Code, the Institute of Electrical and Electronics Engineers, and 22
83+Underwriters Laboratories. 23
8184
82- (iii) purchase additional liability insurance.
85+ (3) The Commission may adopt by regulation additional control and testing 24
86+requirements for eligible customer–generators that the Commission determines are 25
87+necessary to protect public safety and system reliability. 26
8388
84- (5) An eligible customer–generator or the eligible customer–generator’s
85-assignee shall own and have title to all renewable energy attributes or renewable energy
86-credits associated with any electricity produced by its electric generating system.
89+ (4) An electric company may not require an eligible customer–generator 27
90+whose electric generating system meets the standards of paragraphs (2) and (3) of this 28
91+subsection to: 29
8792
88- (6) The Commission may not prohibit the construction or operation of
89-multiple net metered solar energy generating facilities located on separate contiguous lots
90-that are owned by a local government solely because the capacity of the combined net
91-metering systems exceeds the limit established under paragraph (1) of this subsection, if:
93+ (i) install additional controls; 30
9294
93- (i) the net metered solar energy generating facilities are intended to
94-be used solely for the benefit of the local government;
95+ (ii) perform or pay for additional tests; or 31
9596
96- (ii) the total capacity of the net metered solar energy generating
97-facilities on the contiguous lots does not exceed 5 megawatts; LAWRENCE J. HOGAN, JR., Governor Ch. 581
97+ (iii) purchase additional liability insurance. 32 HOUSE BILL 440 3
9898
99-– 3 –
10099
101- (iii) the contiguous lots were not subdivided for the purpose of
102-circumventing the limit established under paragraph (1) of this subsection; and
103100
104- (iv) the utility serving the net metered solar energy generating
105-facilities is not an electric cooperative or municipal electric utility.
101+ (5) An eligible customer–generator or the eligible customer–generator’s 1
102+assignee shall own and have title to all renewable energy attributes or renewable energy 2
103+credits associated with any electricity produced by its electric generating system. 3
106104
107- (7) THE GENERATING CAPACI TY OF A COMMUNITY SO LAR ENERGY
108-GENERATING SYSTEM ES TABLISHED UNDER § 7–306.2 OF THIS SUBTITLE THAT I S
109-USED FOR NET METERIN G MAY NOT EXCEED 5 MEGAWATTS .
105+ (6) The Commission may not prohibit the construction or operation of 4
106+multiple net metered solar energy generating facilities located on separate contiguous lots 5
107+that are owned by a local government solely because the capacity of the combined net 6
108+metering systems exceeds the limit established under paragraph (1) of this subsection, if: 7
110109
111-7–306.2.
110+ (i) the net metered solar energy generating facilities are intended to 8
111+be used solely for the benefit of the local government; 9
112112
113- (a) (1) In this section the following words have the meanings indicated.
113+ (ii) the total capacity of the net metered solar energy generating 10
114+facilities on the contiguous lots does not exceed 5 megawatts; 11
114115
115- (3) “Community solar energy generating system” means a solar energy
116-system that:
116+ (iii) the contiguous lots were not subdivided for the purpose of 12
117+circumventing the limit established under paragraph (1) of this subsection; and 13
117118
118- (i) is connected to the electric distribution grid serving the State;
119+ (iv) the utility serving the net metered solar energy generating 14
120+facilities is not an electric cooperative or municipal electric utility. 15
119121
120- (ii) is located in the same electric service territory as its subscribers;
122+ (7) THE GENERATING CAPACI TY OF A COMMUNITY SO LAR ENERGY 16
123+GENERATING SYSTEM ES TABLISHED UNDER § 7–306.2 OF THIS SUBTITLE THAT IS 17
124+USED FOR NET METERIN G MAY NOT EXCEED 5 MEGAWATTS . 18
121125
122- (iii) is attached to the electric meter of a subscriber or is a separate
123-facility with its own electric meter;
126+7–306.2. 19
124127
125- (iv) credits its generated electricity, or the value of its generated
126-electricity, to the bills of the subscribers to that system through virtual net energy
127-metering;
128+ (a) (1) In this section the following words have the meanings indicated. 20
128129
129- (v) has at least two subscribers but no limit to the maximum number
130-of subscribers;
130+ (3) “Community solar energy generating system” means a solar energy 21
131+system that: 22
131132
132- (vi) does not have subscriptions larger than 200 kilowatts
133-constituting more than 60% of its subscriptions;
133+ (i) is connected to the electric distribution grid serving the State; 23
134134
135- (vii) has a generating capacity that does not exceed [2] 5 megawatts
136-as measured by the alternating current rating of the system’s inverter; and
135+ (ii) is located in the same electric service territory as its subscribers; 24
137136
138- (viii) may be owned by any person.
137+ (iii) is attached to the electric meter of a subscriber or is a separate 25
138+facility with its own electric meter; 26
139139
140- (c) A community solar energy generating system, including a subscriber or
141-subscriber organization associated with the community solar energy generating system, is
142-not:
140+ (iv) credits its generated electricity, or the value of its generated 27
141+electricity, to the bills of the subscribers to that system through virtual net energy 28
142+metering; 29
143143
144- (1) an electric company;
145- Ch. 581 2022 LAWS OF MARYLAND
144+ (v) has at least two subscribers but no limit to the maximum number 30
145+of subscribers; 31
146+ 4 HOUSE BILL 440
146147
147-– 4 –
148- (2) an electricity supplier; or
149148
150- (3) a generating station IF THE GENERATING CA PACITY OF THE
151-COMMUNITY SOLAR ENER GY GENERATING SYSTEM DOES NOT EXCEED 2
152-MEGAWATTS .
149+ (vi) does not have subscriptions larger than 200 kilowatts 1
150+constituting more than 60% of its subscriptions; 2
153151
154- SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect
155-October 1, 2022.
152+ (vii) has a generating capacity that does not exceed [2] 5 megawatts 3
153+as measured by the alternating current rating of the system’s inverter; and 4
156154
157-Enacted under Article II, § 17(c) of the Maryland Constitution, May 29, 2022.
155+ (viii) may be owned by any person. 5
156+
157+ (c) A community solar energy generating system, including a subscriber or 6
158+subscriber organization associated with the community solar energy generating system, is 7
159+not: 8
160+
161+ (1) an electric company; 9
162+
163+ (2) an electricity supplier; or 10
164+
165+ (3) a generating station IF THE GENERATING CA PACITY OF THE 11
166+COMMUNITY SOLAR ENER GY GENERATING SYSTEM DOES NOT EXCEED 2 12
167+MEGAWATTS . 13
168+
169+ SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect 14
170+October 1, 2022. 15
171+
172+
173+
174+
175+Approved:
176+________________________________________________________________________________
177+ Governor.
178+________________________________________________________________________________
179+ Speaker of the House of Delegates.
180+________________________________________________________________________________
181+ President of the Senate.