EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
[Brackets] indicate matter deleted from existing law.
Underlining indicates amendments to bill.
Strike out indicates matter stricken from the bill by amendment or deleted from the law by
amendment.
*hb1188*
HOUSE BILL 1188
C5 3lr1429
CF SB 931
By: Delegate Atterbeary
Introduced and read first time: February 10, 2023
Assigned to: Economic Matters
Committee Report: Favorable
House action: Adopted
Read second time: March 8, 2023
CHAPTER ______
AN ACT concerning 1
Public Utilities – Certificate of Public Convenience and Necessity – Solar 2
Photovoltaic Systems 3
FOR the purpose of defining “generating station” as it relates to the requirement to obtain 4
a certificate of public convenience and necessity or approval from the Public Service 5
Commission for a person who constructs a generating station that has the capacity 6
to produce a certain amount of electricity from a solar photovoltaic system; and 7
generally relating to the requirement to obtain a certificate of public convenience 8
and necessity. 9
BY repealing and reenacting, with amendments, 10
Article – Public Utilities 11
Section 7–207(a), 7–207.1, and 7–207.2 12
Annotated Code of Maryland 13
(2020 Replacement Volume and 2022 Supplement) 14
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 15
That the Laws of Maryland read as follows: 16
Article – Public Utilities 17
7–207. 18
(a) (1) In this section the following words have the meanings indicated. 19
2 HOUSE BILL 1188
(2) “Brownfields site” means: 1
(i) a former industrial or commercial site identified by federal or 2
State laws or regulation as contaminated or polluted; 3
(ii) a closed landfill regulated by the Department of the 4
Environment; or 5
(iii) mined land. 6
(3) (i) “Construction” means: 7
1. any physical change at a site, including fabrication, 8
erection, installation, or demolition; or 9
2. the entry into a binding agreement or contractual 10
obligation to purchase equipment exclusively for use in construction in the State or to 11
undertake a program of actual construction in the State which cannot be canceled or 12
modified without substantial loss to the owner or operator of the proposed generating 13
station. 14
(ii) “Construction” does not include a change that is needed for the 15
temporary use of a site or route for nonutility purposes or for use in securing geological 16
data, including any boring that is necessary to ascertain foundation conditions. 17
(4) “GENERATING STATION ” DOES NOT INCLUDE : 18
(I) A GENERATING UNIT OR FACILITY THAT: 19
1. IS USED FOR THE PROD UCTION OF ELECTRICIT Y; 20
2. HAS THE CAPACITY TO PRODUCE NOT MORE THA N 2 21
MEGAWATTS OF ALTERNA TING CURRENT ; AND 22
3. IS INSTALLED WITH EQUIP MENT THAT PREVENTS T HE 23
FLOW OF ELECTRICITY TO THE ELECTRIC GRID DURING TIME PERIODS WHEN THE 24
ELECTRIC GRID IS OUT OF SERVICE; OR 25
(II) A COMBINATION OF TWO OR MORE GENERATING U NITS OR 26
FACILITIES THAT: 27
1. ARE USED FOR THE PRO DUCTION OF ELECTRICI TY; 28
2. ARE LOCATED ON THE S AME PROPERTY OR ADJA CENT 29
PROPERTIES; 30 HOUSE BILL 1188 3
3. HAVE THE CAPACITY TO PRODUCE, WHEN 1
CALCULATED CUMULATIV ELY FOR ALL GENERATI NG UNITS OR FACILITI ES ON THE 2
PROPERTY OR ADJACENT PROPERTY, MORE THAN 2 MEGAWATTS OF ALTERNA TING 3
CURRENT; AND 4
4. FOR EACH INDIVIDUAL GENERATING UNIT OR 5
FACILITY: 6
A. HAS THE CAPACITY TO PRODUCE NOT MORE THA N 2 7
MEGAWATTS OF ALTERNA TING CURRENT ; 8
B. IS SEPARATELY METERE D BY THE ELECTRIC 9
COMPANY; AND 10
C. DOES NOT EXPORT ELEC TRICITY FOR SALE ON THE 11
WHOLESALE MARKET UND ER AN AGREEMENT WITH PJM INTERCONNECTION , LLC. 12
[(4)] (5) (i) “Mined land” means the surface or subsurface of an area 13
in which surface mining operations will be, are being, or have been conducted. 14
(ii) “Mined land” includes: 15
1. private ways and roads used for mining appurtenant to 16
any surface mining area; 17
2. land excavations; 18
3. workings; and 19
4. overburden. 20
[(5)] (6) “Qualified generator lead line” means an overhead transmission 21
line that is designed to carry a voltage in excess of 69,000 volts and would allow an 22
out–of–state Tier 1 or Tier 2 renewable source to interconnect with a portion of the electric 23
system in Maryland that is owned by an electric company. 24
7–207.1. 25
(A) IN THIS SECTION, “GENERATING STATION ” DOES NOT INCLUDE : 26
(1) A GENERATING UNIT OR FACILITY THAT: 27
(I) IS USED FOR THE PROD UCTION OF ELECTRICIT Y; 28
4 HOUSE BILL 1188
(II) HAS THE CAPACITY TO PRODUCE NOT MO RE THAN 2 1
MEGAWATTS OF ALTERNA TING CURRENT ; AND 2
(III) IS INSTALLED WITH EQ UIPMENT THAT PREVENT S THE FLOW 3
OF ELECTRICITY TO TH E ELECTRIC GRID DURI NG TIME PERIODS WHEN THE 4
ELECTRIC GRID IS OUT OF SERVICE; OR 5
(2) A COMBINATION OF TWO OR MORE GENERATIN G UNITS OR 6
FACILITIES THAT: 7
(I) ARE USED FOR THE PRO DUCTION OF ELECTRICI TY; 8
(II) ARE LOCATED ON THE S AME PROPERTY OR ADJA CENT 9
PROPERTIES; 10
(III) HAVE THE CAPACITY TO PRODUCE, WHEN CALCULATED 11
CUMULATIVELY FOR ALL GENERATING UNITS OR FACILITIES ON THE PROPERTY OR 12
ADJACENT PROPERTY , MORE THAN 2 MEGAWATTS OF ALTERNA TING CURRENT ; AND 13
(IV) FOR EACH INDIVIDUAL GENERATING UNIT OR F ACILITY: 14
1. HAS THE CAPACITY TO PRODUCE NOT MORE THA N 2 15
MEGAWATTS OF ALTERNA TING CURRENT ; 16
2. IS SEPARATELY M ETERED BY THE ELECTR IC 17
COMPANY; AND 18
3. DOES NOT EXPORT ELEC TRICITY FOR SALE ON THE 19
WHOLESALE MARKET UND ER AN AGREEMENT WITH PJM INTERCONNECTION , LLC. 20
[(a)] (B) This section applies to a person who: 21
(1) constructs a generating station: 22
(i) designed to provide on–site generated electricity if: 23
1. the capacity of the generating station does not exceed 70 24
megawatts; and 25
2. the electricity that may be exported for sale from the 26
generating station to the electric system is sold only on the wholesale market pursuant to 27
an interconnection, operation, and maintenance agreement with the local electric company; 28
or 29
HOUSE BILL 1188 5
(ii) that produces electricity from wind if: 1
1. the generating station is land–based; 2
2. the capacity of the generating station does not exceed 70 3
megawatts; 4
3. the electricity that may be exported for sale from the 5
generating station to the electric system is sold only on the wholesale market pursuant to 6
an interconnection, operation, and maintenance agreement with the local electric company; 7
4. the Commission provides an opportunity for public 8
comment at a public hearing as provided in subsection [(f)] (G) of this section; and 9
5. the generating station’s wind turbines are not located 10
within a distance from the Patuxent River Naval Air Station that is determined by 11
regulations adopted by the Commission in coordination with the Commander, Naval Air 12
Warfare Center Aircraft Division, provided that the distance requirement under the 13
regulation is: 14
A. not greater than is necessary to encompass an area in 15
which utility scale wind turbines could create Doppler radar interference for missions at 16
the Patuxent River Naval Air Station; 17
B. not greater than 46 miles, measured from location 18
38.29667N, 76.37668W; and 19
C. subject to modification if necessary to reflect changes in 20
missions or technology at the Patuxent River Naval Air Station or changes in wind energy 21
technology; or 22
(2) constructs a generating station if: 23
(i) the capacity of the generating station does not exceed 25 24
megawatts; 25
(ii) the electricity that may be exported for sale from the generating 26
station to the electric system is sold only on the wholesale market pursuant to an 27
interconnection, operation, and maintenance agreement with the local electric company; 28
and 29
(iii) at least 10% of the electricity generated at the generating station 30
each year is consumed on–site. 31
[(b)] (C) (1) The Commission shall require a person that is exempted from 32
the requirement to obtain a certificate of public convenience and necessity to obtain 33 6 HOUSE BILL 1188
approval from the Commission under this section before the person may construct a 1
generating station described in subsection [(a)] (B) of this section. 2
(2) An application for approval under this section shall: 3
(i) be made to the Commission in writing on a form adopted by the 4
Commission; 5
(ii) be verified by oath or affirmation; and 6
(iii) contain information that the Commission requires, including: 7
1. proof of compliance with all applicable requirements of the 8
independent system operator; and 9
2. a copy of an interconnection, operation, and maintenance 10
agreement between the generating station and the local electric company. 11
[(c)] (D) On receipt of an application for approval under this section, the 12
Commission shall provide notice immediately or require the applicant to provide notice 13
immediately of the application to: 14
(1) the governing body of each county or municipal corporation in which 15
any portion of the generating station is proposed to be constructed; 16
(2) the governing body of each county or municipal corporation within 1 17
mile of the proposed location of the generating station; 18
(3) each member of the General Assembly representing any part of a county 19
in which any portion of the generating station is proposed to be constructed; and 20
(4) each member of the General Assembly representing any part of each 21
county within 1 mile of the proposed location of the generating station. 22
[(d)] (E) When reviewing an application for approval under this section, the 23
Commission shall: 24
(1) ensure the safety and reliability of the electric system; 25
(2) require the person constructing the generating station to notify the 26
Commission 2 weeks before the first export of electricity from a generating station approved 27
under this section; and 28
(3) conduct its review and approval in an expeditious manner. 29
HOUSE BILL 1188 7
[(e)] (F) Except for the notice required under subsection [(c)] (D) of this section, 1
the Commission may waive an element of the approval process under this section if the 2
Commission determines that the waiver is in the public interest. 3
[(f)] (G) (1) The Commission shall provide an opportunity fo r public 4
comment and hold a public hearing as provided under this subsection on an application for 5
approval made under subsection [(a)(1)(ii)] (B)(1)(II) of this section in each county and 6
municipal corporation in which any portion of the construction of a generating station is 7
proposed to be located. 8
(2) Upon the request of the governing body of a county or municipal 9
corporation in which any portion of the construction of a generating station is proposed to 10
be located, the Commission shall hold the public hearing jointly with the governing body. 11
(3) Once in each of 2 successive weeks immediately before the hearing date, 12
the Commission, at the expense of the applicant, shall provide weekly notice of the public 13
hearing and opportunity for public comment by advertisement in a newspaper of general 14
circulation in the county or municipal corporation affected by the application. 15
7–207.2. 16
(A) IN THIS SECTION, “GENERATING STATION ” DOES NOT INCLUDE: 17
(1) A GENERATING UNIT OR FACILITY THAT: 18
(I) IS USED FOR THE PRODUCTION O F ELECTRICITY; 19
(II) HAS THE CAPACITY TO PRODUCE NOT MORE THAN 2 20
MEGAWATTS OF ALTERNATING CURRENT ; AND 21
(III) IS INSTALLED WITH EQ UIPMENT THAT PREVENT S THE FLOW 22
OF ELECTRICITY TO TH E ELECTRIC GRID DURING TIME PERIODS WHEN THE 23
ELECTRIC GRID IS OUT OF SERVICE; OR 24
(2) A COMBINATION OF TWO OR MORE GENERATING UNIT S OR 25
FACILITIES THAT: 26
(I) ARE USED FOR THE PRODUCTION O F ELECTRICITY; 27
(II) ARE LOCATED ON THE S AME PROPERTY OR ADJA CENT 28
PROPERTIES; 29
(III) HAVE THE CAPACITY TO PRODUCE , WHEN CALCULATED 30
CUMULATIVELY FOR ALL GENERATING U NITS OR FACILITIES O N THE PROPERTY OR 31
ADJACENT PROPERTY , MORE THAN 2 MEGAWATTS OF ALTERNATING CURRE NT; AND 32 8 HOUSE BILL 1188
(IV) FOR EACH INDIVIDUAL GENERATING UNIT OR FACILITY: 1
1. HAS THE CAPACITY TO PRODUCE NOT MORE THAN 2 2
MEGAWATTS OF ALTERNATING CURRENT ; 3
2. IS SEPARATELY METERE D BY THE ELECTRIC 4
COMPANY; AND 5
3. DOES NOT EXPORT ELEC TRICITY FOR SALE ON THE 6
WHOLESALE MARKET UND ER AN AGREEMENT WITH PJM INTERCONNECTION , LLC. 7
[(a)] (B) This section applies to a person who constructs a generating station 8
that: 9
(1) has the capacity to produce [at least] MORE THAN 2 megawatts of 10
electricity, AS MEASURED BY THE A LTERNATING CURRENT R ATING OF THE SYSTEM ’S 11
INVERTER, from a solar photovoltaic system; and 12
(2) is exempted under § 7–207.1 of this subtitle from the requirement to 13
obtain a certificate of public convenience and necessity. 14
[(b)] (C) (1) A person shall file an application for approval to construct a 15
generating station under § 7–207.1 of this subtitle at least 6 months before construction 16
commences. 17
(2) The Commission shall require a person who files an application for 18
approval to construct a generating station to pay a deposit of 1% of total installed costs. 19
[(c)] (D) (1) The Commission shall place any deposits collected under 20
subsection [(b)] (C) of this section into an escrow account. 21
(2) If a person demonstrates to the Commission that the person is fully 22
authorized to commence construction within 18 months after filing an application for 23
approval, the Commission shall refund the deposit, less reasonable administrative costs. 24
(3) (i) Subject to subparagraph (ii) of this paragraph, if a person does 25
not commence construction within 18 months after filing an application for approval, the 26
money held in the escrow account shall be: 27
1. deemed to be abandoned; and 28
2. transferred to the Maryland Strategic Energy Investment 29
Fund under § 9–20B–05 of the State Government Article, less reasonable administrative 30
costs. 31 HOUSE BILL 1188 9
(ii) 1. A person may request an extension for a project that does 1
not commence construction within 18 months after the filing of an application for approval. 2
2. The Commission may grant the request based on factors 3
the Commission considers compelling, including the occurrence of events outside the 4
person’s control. 5
SECTION 2. AND BE IT FURTHER ENACTED, That it is the intent of the General 6
Assembly that this Act apply to solar energy generating facilities and eligible 7
customer–generators authorized by an electric company to engage in net energy metering 8
under § 7–306 of the Public Utilities Article and COMAR 20.50.10.07. 9
SECTION 3. AND BE IT FURTHER ENACTED, That this Act shall take effect 10
October 1, 2023. 11
Approved:
________________________________________________________________________________
Governor.
________________________________________________________________________________
Speaker of the House of Delegates.
________________________________________________________________________________
President of the Senate.