EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
[Brackets] indicate matter deleted from existing law.
*sb0936*
SENATE BILL 936
C5, M5 2lr2903
By: Senator Gallion
Introduced and read first time: February 13, 2022
Assigned to: Rules
A BILL ENTITLED
AN ACT concerning 1
Public Utilities – Net Energy Metering – Eligibility Requirements 2
FOR the purpose of prohibiting the Public Service Commission from setting eligibility 3
requirements for an electric generating system used by an eligible 4
customer–generator that are based on the eligible customer–generator’s baseline 5
annual usage; and generally relating to net energy metering. 6
BY repealing and reenacting, without amendments, 7
Article – Public Utilities 8
Section 7–306(a) 9
Annotated Code of Maryland 10
(2020 Replacement Volume and 2021 Supplement) 11
BY repealing and reenacting, with amendments, 12
Article – Public Utilities 13
Section 7–306(g) 14
Annotated Code of Maryland 15
(2020 Replacement Volume and 2021 Supplement) 16
BY adding to 17
Article – Public Utilities 18
Section 7–306(j) 19
Annotated Code of Maryland 20
(2020 Replacement Volume and 2021 Supplement) 21
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 22
That the Laws of Maryland read as follows: 23
Article – Public Utilities 24
7–306. 25 2 SENATE BILL 936
(a) (1) In this section the following words have the meanings indicated. 1
(2) “Biomass” means “qualified biomass” as defined in § 7–701 of this title. 2
(3) “Closed conduit hydro” means a hydroelectric generating facility that: 3
(i) generates electricity within existing piping or limited adjacent 4
piping of a potable water supply system; 5
(ii) is owned or operated by a municipal corporation or public water 6
authority; and 7
(iii) is designed to produce less energy than is consumed to operate 8
the water supply system. 9
(4) “Eligible customer–generator” means a customer that owns and 10
operates, leases and operates, or contracts with a third party that owns and operates a 11
biomass, micro combined heat and power, solar, fuel cell, wind, or closed conduit hydro 12
electric generating facility that: 13
(i) is located on the customer’s premises or contiguous property; 14
(ii) is interconnected and operated in parallel with an electric 15
company’s transmission and distribution facilities; and 16
(iii) is intended primarily to offset all or part of the customer’s own 17
electricity requirements. 18
(5) “Fuel cell” means an electric generating facility that: 19
(i) includes integrated power plant systems containing a stack, 20
tubular array, or other functionally similar configuration used to electrochemically convert 21
fuel to electric energy; and 22
(ii) may include: 23
1. an inverter and fuel processing system; and 24
2. other plant equipment to support the plant’s operation or 25
its energy conversion, including heat recovery equipment. 26
(6) “Micro combined heat and power” means the simultaneous or 27
sequential production of useful thermal energy and electrical or mechanical power not 28
exceeding 30 kilowatts. 29
SENATE BILL 936 3
(7) “Net energy metering” means measurement of the difference between 1
the electricity that is supplied by an electric company and the electricity that is generated 2
by an eligible customer–generator and fed back to the electric grid over the eligible 3
customer–generator’s billing period. 4
(8) “Net excess generation” means the amount of the electricity generated 5
by an eligible customer–generator that is in excess of the electricity consumed by the 6
eligible customer–generator and that results in a negative kilowatt–hour reading at the 7
end of the eligible customer–generator’s billing cycle. 8
(g) (1) Except as provided in paragraph (6) of this subsection, the generating 9
capacity of an electric generating system used by an eligible customer–generator for net 10
metering may not exceed 2 megawatts. 11
(2) An electric generating system used by an eligible customer–generator 12
for net metering shall meet all applicable safety and performance standards established by 13
the National Electrical Code, the Institute of Electrical and Electronics Engineers, and 14
Underwriters Laboratories. 15
(3) (I) THE COMMISSION MAY NOT SE T ELIGIBILITY 16
REQUIREMENTS FOR A N ELECTRIC GENERATIN G SYSTEM USED BY A N ELIGIBLE 17
CUSTOMER–GENERATOR THAT ARE B ASED ON THE ELIGIBLE 18
CUSTOMER–GENERATOR ’S BASELINE ANNUAL US AGE. 19
(II) The Commission may adopt by regulation additional control and 20
testing requirements for eligible customer–generators that the Commission determines are 21
necessary to protect public safety and system reliability. 22
(4) An electric company may not require an eligible customer–generator 23
whose electric generating system meets the standards of paragraphs (2) and (3) of this 24
subsection to: 25
(i) install additional controls; 26
(ii) perform or pay for additional tests; or 27
(iii) purchase additional liability insurance. 28
(5) An eligible customer–generator or the eligible customer–generator’s 29
assignee shall own and have title to all renewable energy attributes or renewable energy 30
credits associated with any electricity produced by its electric generating system. 31
(6) The Commission may not prohibit the construction or operation of 32
multiple net metered solar energy generating facilities located on separate contiguous lots 33
that are owned by a local government solely because the capacity of the combined net 34
metering systems exceeds the limit established under paragraph (1) of this subsection, if: 35 4 SENATE BILL 936
(i) the net metered solar energy generating facilities are intended to 1
be used solely for the benefit of the local government; 2
(ii) the total capacity of the net metered solar energy generating 3
facilities on the contiguous lots does not exceed 5 megawatts; 4
(iii) the contiguous lots were not subdivided for the purpose of 5
circumventing the limit established under paragraph (1) of this subsection; and 6
(iv) the utility serving the net metered solar energy generating 7
facilities is not an electric cooperative or municipal electric utility. 8
(J) THE COMMISSION MAY ADOPT REGULATIONS TO CARRY OUT THIS 9
SECTION. 10
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect 11
October 1, 2022. 12