1 | 1 | | |
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2 | 2 | | |
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3 | 3 | | EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW. |
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4 | 4 | | [Brackets] indicate matter deleted from existing law. |
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5 | 5 | | *sb0936* |
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6 | 6 | | |
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7 | 7 | | SENATE BILL 936 |
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8 | 8 | | C5, M5 2lr2903 |
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9 | 9 | | |
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10 | 10 | | By: Senator Gallion |
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11 | 11 | | Introduced and read first time: February 13, 2022 |
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12 | 12 | | Assigned to: Rules |
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13 | 13 | | |
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14 | 14 | | A BILL ENTITLED |
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15 | 15 | | |
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16 | 16 | | AN ACT concerning 1 |
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17 | 17 | | |
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18 | 18 | | Public Utilities – Net Energy Metering – Eligibility Requirements 2 |
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19 | 19 | | |
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20 | 20 | | FOR the purpose of prohibiting the Public Service Commission from setting eligibility 3 |
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21 | 21 | | requirements for an electric generating system used by an eligible 4 |
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22 | 22 | | customer–generator that are based on the eligible customer–generator’s baseline 5 |
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23 | 23 | | annual usage; and generally relating to net energy metering. 6 |
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24 | 24 | | |
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25 | 25 | | BY repealing and reenacting, without amendments, 7 |
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26 | 26 | | Article – Public Utilities 8 |
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27 | 27 | | Section 7–306(a) 9 |
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28 | 28 | | Annotated Code of Maryland 10 |
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29 | 29 | | (2020 Replacement Volume and 2021 Supplement) 11 |
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30 | 30 | | |
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31 | 31 | | BY repealing and reenacting, with amendments, 12 |
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32 | 32 | | Article – Public Utilities 13 |
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33 | 33 | | Section 7–306(g) 14 |
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34 | 34 | | Annotated Code of Maryland 15 |
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35 | 35 | | (2020 Replacement Volume and 2021 Supplement) 16 |
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36 | 36 | | |
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37 | 37 | | BY adding to 17 |
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38 | 38 | | Article – Public Utilities 18 |
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39 | 39 | | Section 7–306(j) 19 |
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40 | 40 | | Annotated Code of Maryland 20 |
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41 | 41 | | (2020 Replacement Volume and 2021 Supplement) 21 |
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42 | 42 | | |
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43 | 43 | | SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 22 |
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44 | 44 | | That the Laws of Maryland read as follows: 23 |
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45 | 45 | | |
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46 | 46 | | Article – Public Utilities 24 |
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47 | 47 | | |
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48 | 48 | | 7–306. 25 2 SENATE BILL 936 |
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49 | 49 | | |
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50 | 50 | | |
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51 | 51 | | |
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52 | 52 | | (a) (1) In this section the following words have the meanings indicated. 1 |
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53 | 53 | | |
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54 | 54 | | (2) “Biomass” means “qualified biomass” as defined in § 7–701 of this title. 2 |
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55 | 55 | | |
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56 | 56 | | (3) “Closed conduit hydro” means a hydroelectric generating facility that: 3 |
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57 | 57 | | |
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58 | 58 | | (i) generates electricity within existing piping or limited adjacent 4 |
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59 | 59 | | piping of a potable water supply system; 5 |
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60 | 60 | | |
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61 | 61 | | (ii) is owned or operated by a municipal corporation or public water 6 |
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62 | 62 | | authority; and 7 |
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63 | 63 | | |
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64 | 64 | | (iii) is designed to produce less energy than is consumed to operate 8 |
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65 | 65 | | the water supply system. 9 |
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66 | 66 | | |
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67 | 67 | | (4) “Eligible customer–generator” means a customer that owns and 10 |
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68 | 68 | | operates, leases and operates, or contracts with a third party that owns and operates a 11 |
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69 | 69 | | biomass, micro combined heat and power, solar, fuel cell, wind, or closed conduit hydro 12 |
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70 | 70 | | electric generating facility that: 13 |
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71 | 71 | | |
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72 | 72 | | (i) is located on the customer’s premises or contiguous property; 14 |
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73 | 73 | | |
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74 | 74 | | (ii) is interconnected and operated in parallel with an electric 15 |
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75 | 75 | | company’s transmission and distribution facilities; and 16 |
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76 | 76 | | |
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77 | 77 | | (iii) is intended primarily to offset all or part of the customer’s own 17 |
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78 | 78 | | electricity requirements. 18 |
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79 | 79 | | |
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80 | 80 | | (5) “Fuel cell” means an electric generating facility that: 19 |
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81 | 81 | | |
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82 | 82 | | (i) includes integrated power plant systems containing a stack, 20 |
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83 | 83 | | tubular array, or other functionally similar configuration used to electrochemically convert 21 |
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84 | 84 | | fuel to electric energy; and 22 |
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85 | 85 | | |
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86 | 86 | | (ii) may include: 23 |
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87 | 87 | | |
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88 | 88 | | 1. an inverter and fuel processing system; and 24 |
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89 | 89 | | |
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90 | 90 | | 2. other plant equipment to support the plant’s operation or 25 |
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91 | 91 | | its energy conversion, including heat recovery equipment. 26 |
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92 | 92 | | |
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93 | 93 | | (6) “Micro combined heat and power” means the simultaneous or 27 |
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94 | 94 | | sequential production of useful thermal energy and electrical or mechanical power not 28 |
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95 | 95 | | exceeding 30 kilowatts. 29 |
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96 | 96 | | SENATE BILL 936 3 |
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97 | 97 | | |
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98 | 98 | | |
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99 | 99 | | (7) “Net energy metering” means measurement of the difference between 1 |
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100 | 100 | | the electricity that is supplied by an electric company and the electricity that is generated 2 |
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101 | 101 | | by an eligible customer–generator and fed back to the electric grid over the eligible 3 |
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102 | 102 | | customer–generator’s billing period. 4 |
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103 | 103 | | |
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104 | 104 | | (8) “Net excess generation” means the amount of the electricity generated 5 |
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105 | 105 | | by an eligible customer–generator that is in excess of the electricity consumed by the 6 |
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106 | 106 | | eligible customer–generator and that results in a negative kilowatt–hour reading at the 7 |
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107 | 107 | | end of the eligible customer–generator’s billing cycle. 8 |
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108 | 108 | | |
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109 | 109 | | (g) (1) Except as provided in paragraph (6) of this subsection, the generating 9 |
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110 | 110 | | capacity of an electric generating system used by an eligible customer–generator for net 10 |
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111 | 111 | | metering may not exceed 2 megawatts. 11 |
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112 | 112 | | |
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113 | 113 | | (2) An electric generating system used by an eligible customer–generator 12 |
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114 | 114 | | for net metering shall meet all applicable safety and performance standards established by 13 |
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115 | 115 | | the National Electrical Code, the Institute of Electrical and Electronics Engineers, and 14 |
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116 | 116 | | Underwriters Laboratories. 15 |
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117 | 117 | | |
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118 | 118 | | (3) (I) THE COMMISSION MAY NOT SE T ELIGIBILITY 16 |
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119 | 119 | | REQUIREMENTS FOR A N ELECTRIC GENERATIN G SYSTEM USED BY A N ELIGIBLE 17 |
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120 | 120 | | CUSTOMER–GENERATOR THAT ARE B ASED ON THE ELIGIBLE 18 |
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121 | 121 | | CUSTOMER–GENERATOR ’S BASELINE ANNUAL US AGE. 19 |
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122 | 122 | | |
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123 | 123 | | (II) The Commission may adopt by regulation additional control and 20 |
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124 | 124 | | testing requirements for eligible customer–generators that the Commission determines are 21 |
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125 | 125 | | necessary to protect public safety and system reliability. 22 |
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126 | 126 | | |
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127 | 127 | | (4) An electric company may not require an eligible customer–generator 23 |
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128 | 128 | | whose electric generating system meets the standards of paragraphs (2) and (3) of this 24 |
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129 | 129 | | subsection to: 25 |
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130 | 130 | | |
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131 | 131 | | (i) install additional controls; 26 |
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132 | 132 | | |
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133 | 133 | | (ii) perform or pay for additional tests; or 27 |
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134 | 134 | | |
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135 | 135 | | (iii) purchase additional liability insurance. 28 |
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136 | 136 | | |
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137 | 137 | | (5) An eligible customer–generator or the eligible customer–generator’s 29 |
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138 | 138 | | assignee shall own and have title to all renewable energy attributes or renewable energy 30 |
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139 | 139 | | credits associated with any electricity produced by its electric generating system. 31 |
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140 | 140 | | |
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141 | 141 | | (6) The Commission may not prohibit the construction or operation of 32 |
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142 | 142 | | multiple net metered solar energy generating facilities located on separate contiguous lots 33 |
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143 | 143 | | that are owned by a local government solely because the capacity of the combined net 34 |
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144 | 144 | | metering systems exceeds the limit established under paragraph (1) of this subsection, if: 35 4 SENATE BILL 936 |
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145 | 145 | | |
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146 | 146 | | |
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147 | 147 | | |
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148 | 148 | | (i) the net metered solar energy generating facilities are intended to 1 |
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149 | 149 | | be used solely for the benefit of the local government; 2 |
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150 | 150 | | |
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151 | 151 | | (ii) the total capacity of the net metered solar energy generating 3 |
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152 | 152 | | facilities on the contiguous lots does not exceed 5 megawatts; 4 |
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153 | 153 | | |
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154 | 154 | | (iii) the contiguous lots were not subdivided for the purpose of 5 |
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155 | 155 | | circumventing the limit established under paragraph (1) of this subsection; and 6 |
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156 | 156 | | |
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157 | 157 | | (iv) the utility serving the net metered solar energy generating 7 |
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158 | 158 | | facilities is not an electric cooperative or municipal electric utility. 8 |
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159 | 159 | | |
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160 | 160 | | (J) THE COMMISSION MAY ADOPT REGULATIONS TO CARRY OUT THIS 9 |
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161 | 161 | | SECTION. 10 |
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162 | 162 | | |
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163 | 163 | | SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect 11 |
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164 | 164 | | October 1, 2022. 12 |
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