EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTING LAW.
[Brackets] indicate matter deleted from existing law.
*sb0526*
SENATE BILL 526
C5, M5 2lr1728
CF 2lr1749
By: Senator Feldman
Introduced and read first time: January 28, 2022
Assigned to: Finance
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
2 SENATE BILL 526
(g) “Offshore wind renewable energy credit” or “OREC” means a renewable 1
energy credit equal to the generation attributes of 1 megawatt–hour of electricity that is 2
derived from offshore wind energy. 3
7–704.2. 4
(c) (1) Each [electricity supplier] ELECTRIC COMPANY shall [purchase from 5
the escrow account established under this section the number of ORECs required] ACT AS 6
AN AGENT ON BEHALF OF E LECTRICITY SUPPLIERS TO FACILITATE THE TRANSFER 7
OF OREC FUNDING PAYMENTS FRO M RATEPAYERS TO OFFS HORE WIND 8
DEVELOPERS to satisfy the offshore wind energy component of the renewable energy 9
portfolio standard under § 7–703(b)(12) through (25) of this subtitle. 10
(2) (i) Subject to any escrow account reserve requirement the 11
Commission establishes, if there are insufficient ORECs available to satisfy the suppliers’ 12
OREC obligation, the overpayment shall be distributed to electric companies to be refunded 13
or credited to each ratepayer based on the ratepayer’s consumption of electricity supply 14
that is subject to the renewable energy portfolio standard. 15
(ii) Subject to any escrow account reserve requirement the 16
Commission establishes, the calculation of an electricity supplier’s OREC purchase 17
obligation shall be based on final electricity sales data as reported by the PJM 18
Interconnection as measured at the customer meter. 19
(3) For each OREC for which a qualified offshore wind project receives 20
payment, a qualified offshore wind project shall: 21
(i) sell all energy, capacity, and ancillary services associated with 22
the creation of ORECs into the markets operated by PJM Interconnection; and 23
(ii) distribute the proceeds received from the sales to PJM 24
Interconnection markets, under item (i) of this paragraph to electric companies to be 25
refunded or credited to each ratepayer based on the ratepayer’s consumption of electricity 26
supply that is subject to the renewable energy portfolio standard. 27
(4) THE COMMISSION SHALL ADOPT REGULATI ONS TO ESTABLISH A 28
COST RECOVERY MECHAN ISM THAT ALLOWS EACH ELECTRIC COMPANY TO ACT AS 29
AN AGENT ON BEHALF OF ELECTRI CITY SUPPLIERS FOR OREC FUNDING PAYMENTS 30
FROM RATEPAYERS . 31
[(4)] (5) Notwithstanding § 7–709 of this subtitle, the Commission shall 32
adopt regulations regarding the transfer and expiration of ORECs created by a qualified 33
offshore wind project in excess of the OREC pricing schedule. 34
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect 35
October 1, 2022. 36