EXPLANATION: CAPITALS INDICATE MATTER ADDED TO EXIS TING LAW.
[Brackets] indicate matter deleted from existing law.
*hb0622*
HOUSE BILL 622
C5, M5 2lr1749
CF SB 526
By: Delegate Brooks
Introduced and read first time: January 31, 2022
Assigned to: Economic Matters
A BILL ENTITLED
AN ACT concerning 1
Electricity – Offshore Wind Renewable Energy Credits 2
FOR the purpose of altering the process for purchasing offshore wind renewable energy 3
credits to satisfy the offshore wind energy component of the renewable energy 4
portfolio standard; requiring the Public Service Commission to adopt regulations 5
establishing a certain cost recovery mechanism; and generally relating to offshore 6
wind and the renewable energy portfolio standard. 7
BY repealing and reenacting, without amendments, 8
Article – Public Utilities 9
Section 7–701(a) and (g) 10
Annotated Code of Maryland 11
(2020 Replacement Volume and 2021 Supplement) 12
BY repealing and reenacting, with amendments, 13
Article – Public Utilities 14
Section 7–704.2(c) 15
Annotated Code of Maryland 16
(2020 Replacement Volume and 2021 Supplement) 17
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 18
That the Laws of Maryland read as follows: 19
Article – Public Utilities 20
7–701. 21
(a) In this subtitle the following words have the meanings indicated. 22
(g) “Offshore wind renewable energy credit” or “OREC” means a renewable 23
energy credit equal to the generation attributes of 1 megawatt–hour of electricity that is 24 2 HOUSE BILL 622
derived from offshore wind energy. 1
7–704.2. 2
(c) (1) Each [electricity supplier] ELECTRIC COMPANY shall [purchase from 3
the escrow account established under this section the number of ORECs required] ACT AS 4
AN AGENT ON BEHALF O F ELECTRICITY SUPPLI ERS TO FACILITATE TH E TRANSFER 5
OF OREC FUNDING PAYMENTS FRO M RATEPAYERS TO OFFS HORE WIND 6
DEVELOPERS to satisfy the offshore wind energy component of the renewable energy 7
portfolio standard under § 7–703(b)(12) through (25) of this subtitle. 8
(2) (i) Subject to any escrow account reserve requirement the 9
Commission establishes, if there are insufficient ORECs available to satisfy the suppliers’ 10
OREC obligation, the overpayment shall be distributed to electric companies to be refunded 11
or credited to each ratepayer based on the ratepayer’s consumption of electricity supply 12
that is subject to the renewable energy portfolio standard. 13
(ii) Subject to any escrow account reserve requirement the 14
Commission establishes, the calculation of an electricity supplier’s OREC purchase 15
obligation shall be based on final electricity sales data as reported by the PJM 16
Interconnection as measured at the customer meter. 17
(3) For each OREC for which a qualified offshore wind project receives 18
payment, a qualified offshore wind project shall: 19
(i) sell all energy, capacity, and ancillary services associated with 20
the creation of ORECs into the markets operated by PJM Interconnection; and 21
(ii) distribute the proceeds received from the sales to PJM 22
Interconnection markets, under item (i) of this paragraph to electric companies to be 23
refunded or credited to each ratepayer based on the ratepayer’s consumption of electricity 24
supply that is subject to the renewable energy portfolio standard. 25
(4) THE COMMISSION SHALL ADOP T REGULATIONS TO EST ABLISH A 26
COST RECOVERY MECHAN ISM THAT ALLOWS EACH ELECTRIC COMPANY TO ACT AS 27
AN AGENT ON BEHALF O F ELECTRICITY SUPPLI ERS FOR OREC FUNDING PAYMENTS 28
FROM RATEPAYERS . 29
[(4)] (5) Notwithstanding § 7–709 of this subtitle, the Commission shall 30
adopt regulations regarding the transfer and expiration of ORECs created by a qualified 31
offshore wind project in excess of the OREC pricing schedule. 32
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect 33
October 1, 2022. 34