WES MOORE, Governor Ch. 460
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Chapter 460
(House Bill 1188)
AN ACT concerning
Public Utilities – Certificate of Public Convenience and Necessity – Solar
Photovoltaic Systems and Meter Aggregation
FOR the purpose of defining “generating station” as it relates to the requirement to obtain
a certificate of public convenience and necessity or approval from the Public Service
Commission for a person who constructs a generating station that has the capacity
to produce a certain amount of electricity from a solar photovoltaic system; requiring
an electric company to provide meter aggregation for certain eligible
customer–generators under certain circumstances; and generally relating to the
requirement to obtain a certificate certificates of public convenience and necessity
and meter aggregation.
BY repealing and reenacting, with amendments,
Article – Public Utilities
Section 7–207(a), 7–207.1, and 7–207.2
Annotated Code of Maryland
(2020 Replacement Volume and 2022 Supplement)
BY adding to
Article – Public Utilities
Section 7–306.3
Annotated Code of Maryland
(2020 Replacement Volume and 2022 Supplement)
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND,
That the Laws of Maryland read as follows:
Article – Public Utilities
7–207.
(a) (1) In this section the following words have the meanings indicated.
(2) “Brownfields site” means:
(i) a former industrial or commercial site identified by federal or
State laws or regulation as contaminated or polluted;
(ii) a closed landfill regulated by the Department of the
Environment; or
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(iii) mined land.
(3) (i) “Construction” means:
1. any physical change at a site, including fabrication,
erection, installation, or demolition; or
2. the entry into a binding agreement or contractual
obligation to purchase equipment exclusively for use in construction in the State or to
undertake a program of actual construction in the State which cannot be canceled or
modified without substantial loss to the owner or operator of the proposed generating
station.
(ii) “Construction” does not include a change that is needed for the
temporary use of a site or route for nonutility purposes or for use in securing geological
data, including any boring that is necessary to ascertain foundation conditions.
(4) “GENERATING STATION ” DOES NOT INCLUDE :
(I) A GENERATING UNIT OR FACILITY THAT:
1. IS USED FOR THE PROD UCTION OF ELECTRICIT Y;
2. HAS THE CAPACITY TO PRODUCE NOT MORE THA N 2
MEGAWATTS OF ALTERNA TING CURRENT ; AND
3. IS INSTALLED WITH EQ UIPMENT THAT PREVENT S THE
FLOW OF ELECTRICITY TO THE ELECTRIC GRID DURING TIME PERIODS WHEN THE
ELECTRIC GRID IS OUT OF SERVICE; OR
(II) A COMBINATION OF TWO OR MORE GENERATING UNIT S OR
FACILITIES THAT:
1. ARE USED FOR THE PRO DUCTION OF ELECTRICI TY
FROM A SOLAR PHOTOVO LTAIC SYSTEM OR AN E LIGIBLE CUSTOMER –GENERATOR
THAT IS SUBJECT TO T HE PROVISIONS OF § 7–306 OF THIS TITLE;
2. ARE LOCATED ON THE SAME PR OPERTY OR ADJACENT
PROPERTIES;
3. HAVE THE CAPACITY TO PRODUCE, WHEN
CALCULATED CUMULATIV ELY FOR ALL GENERATI NG UNITS OR FACILITI ES ON THE
PROPERTY OR ADJACENT PROPERTY, MORE THAN 2 MEGAWATTS BUT NOT MORE
THAN 14 MEGAWATTS OF ALTERNATING CURRENT ; AND WES MOORE, Governor Ch. 460
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4. FOR EACH INDIVIDUAL GENERATING UNIT OR
FACILITY:
A. HAS THE CAPACITY TO PRODUCE NOT MORE THA N 2
MEGAWATTS OF ALTERNA TING CURRENT ;
B. IS SEPARATELY METERE D BY THE ELECTRIC
COMPANY; AND
C. DOES NOT EXPORT ELECTRICITY FOR SALE ON THE
WHOLESALE MARKET UND ER AN AGREEMENT WITH PJM INTERCONNECTION , LLC.
[(4)] (5) (i) “Mined land” means the surface or subsurface of an area
in which surface mining operations will be, are being, or have been conducted.
(ii) “Mined land” includes:
1. private ways and roads used for mining appurtenant to
any surface mining area;
2. land excavations;
3. workings; and
4. overburden.
[(5)] (6) “Qualified generator lead line” means an overhead transmission
line that is designed to carry a voltage in excess of 69,000 volts and would allow an
out–of–state Tier 1 or Tier 2 renewable source to interconnect with a portion of the electric
system in Maryland that is owned by an electric company.
7–207.1.
(A) IN THIS SECTION, “GENERATING STATION ” DOES NOT INCLUDE :
(1) A GENERATING UNIT OR FACILITY THAT:
(I) IS USED FOR THE PROD UCTION OF ELECTRICIT Y;
(II) HAS THE CAPACITY TO PRODUCE NOT MORE THA N 2
MEGAWATTS OF ALTERNA TING CURRENT ; AND
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(III) IS INSTALLED WITH EQUIP MENT THAT PREVENTS T HE FLOW
OF ELECTRICITY TO TH E ELECTRIC GRID DURI NG TIME PERIODS WHEN THE
ELECTRIC GRID IS OUT OF SERVICE; OR
(2) A COMBINATION OF TWO OR MORE GENERATING U NITS OR
FACILITIES THAT:
(I) ARE USED FOR THE PRO DUCTION OF ELECTRICITY FROM A
SOLAR PHOTOVOLTAIC S YSTEM OR AN ELIGIBLE CUSTOMER–GENERATOR THAT IS
SUBJECT TO THE PROVI SIONS OF § 7–306 OF THIS TITLE;
(II) ARE LOCATED ON THE S AME PROPERTY OR ADJA CENT
PROPERTIES;
(III) HAVE THE CAPACITY TO PRODUCE, WHEN CALCULATED
CUMULATIVELY FOR ALL GENERATING UNITS OR FACILITIES ON THE PR OPERTY OR
ADJACENT PROPERTY , MORE THAN 2 MEGAWATTS BUT NOT MORE THAN 14
MEGAWATTS OF ALTERNATING CURRE NT; AND
(IV) FOR EACH INDIVIDUAL GENERATIN G UNIT OR FACILITY:
1. HAS THE CAPACITY TO PRODUCE NOT MORE THA N 2
MEGAWATTS OF ALTERNA TING CURRENT ;
2. IS SEPARATELY METERE D BY THE ELECTRIC
COMPANY; AND
3. DOES NOT EXPORT ELEC TRICITY FOR SALE ON THE
WHOLESALE MARKET UND ER AN AGREEMENT WIT H PJM INTERCONNECTION , LLC.
[(a)] (B) This section applies to a person who:
(1) constructs a generating station:
(i) designed to provide on–site generated electricity if:
1. the capacity of the generating station does not exceed 70
megawatts; and
2. the electricity that may be exported for sale from the
generating station to the electric system is sold only on the wholesale market pursuant to
an interconnection, operation, and maintenance agreement with the local electric company;
or
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(ii) that produces electricity from wind if:
1. the generating station is land–based;
2. the capacity of the generating station does not exceed 70
megawatts;
3. the electricity that may be exported for sale from the
generating station to the electric system is sold only on the wholesale market pursuant to
an interconnection, operation, and maintenance agreement with the local electric company;
4. the Commission provides an opportunity for public
comment at a public hearing as provided in subsection [(f)] (G) of this section; and
5. the generating station’s wind turbines are not located
within a distance from the Patuxent River Naval Air Station that is determined by
regulations adopted by the Commission in coordination with the Commander, Naval Air
Warfare Center Aircraft Division, provided that the distance requirement under the
regulation is:
A. not greater than is necessary to encompass an area in
which utility scale wind turbines could create Doppler radar interference for missions at
the Patuxent River Naval Air Station;
B. not greater than 46 miles, measured from location
38.29667N, 76.37668W; and
C. subject to modification if necessary to reflect changes in
missions or technology at the Patuxent River Naval Air Station or changes in wind energy
technology; or
(2) constructs a generating station if:
(i) the capacity of the generating station does not exceed 25
megawatts;
(ii) the electricity that may be exported for sale from the generating
station to the electric system is sold only on the wholesale market pursuant to an
interconnection, operation, and maintenance agreement with the local electric company;
and
(iii) at least 10% of the electricity generated at the generating station
each year is consumed on–site.
[(b)] (C) (1) The Commission shall require a person that is exempted from
the requirement to obtain a certificate of public convenience and necessity to obtain Ch. 460 2023 LAWS OF MARYLAND
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approval from the Commission under this section before the person may construct a
generating station described in subsection [(a)] (B) of this section.
(2) An application for approval under this section shall:
(i) be made to the Commission in writing on a form adopted by the
Commission;
(ii) be verified by oath or affirmation; and
(iii) contain information that the Commission requires, including:
1. proof of compliance with all applicable requirements of the
independent system operator; and
2. a copy of an interconnection, operation, and maintenance
agreement between the generating station and the local electric company.
[(c)] (D) On receipt of an application for approval under this section, the
Commission shall provide notice immediately or require the applicant to provide notice
immediately of the application to:
(1) the governing body of each county or municipal corporation in which
any portion of the generating station is proposed to be constructed;
(2) the governing body of each county or municipal corporation within 1
mile of the proposed location of the generating station;
(3) each member of the General Assembly representing any part of a county
in which any portion of the generating station is proposed to be constructed; and
(4) each member of the General Assembly representing any part of each
county within 1 mile of the proposed location of the generating station.
[(d)] (E) When reviewing an application for approval under this section, the
Commission shall:
(1) ensure the safety and reliability of the electric system;
(2) require the person constructing the generating station to notify the
Commission 2 weeks before the first export of electricity from a generating station approved
under this section; and
(3) conduct its review and approval in an expeditious manner.
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[(e)] (F) Except for the notice required under subsection [(c)] (D) of this section,
the Commission may waive an element of the approval process under this section if the
Commission determines that the waiver is in the public interest.
[(f)] (G) (1) The Commission shall provide an opportunity for public
comment and hold a public hearing as provided under this subsection on an application for
approval made under subsection [(a)(1)(ii)] (B)(1)(II) of this section in each county and
municipal corporation in which any portion of the construction of a generating station is
proposed to be located.
(2) Upon the request of the governing body of a county or municipal
corporation in which any portion of the construction of a generating station is proposed to
be located, the Commission shall hold the public hearing jointly with the governing body.
(3) Once in each of 2 successive weeks immediately before the hearing date,
the Commission, at the expense of the applicant, shall provide weekly notice of the public
hearing and opportunity for public comment by advertisement in a newspaper of general
circulation in the county or municipal corporation affected by the application.
7–207.2.
(A) IN THIS SECTION, “GENERATING STATION ” DOES NOT INCLUDE :
(1) A GENERATING UNIT OR FACILITY THAT:
(I) IS USED FOR THE PROD UCTION OF ELECTRICIT Y;
(II) HAS THE CAPACITY TO PRODUCE NOT MORE THA N 2
MEGAWATTS OF ALTERNA TING CURRENT ; AND
(III) IS INSTALLED WITH EQ UIPMENT THAT PREVENT S THE FLOW
OF ELECTRICITY TO TH E ELECTRIC GRID DURING TIME PERIODS WHEN THE
ELECTRIC GRID IS OUT OF SERVICE; OR
(2) A COMBINATION OF TWO OR MORE GENERATING U NITS OR
FACILITIES THAT:
(I) ARE USED FOR THE PRO DUCTION OF ELECTRICI TY FROM A
SOLAR PHOTOVOLTAIC S YSTEM OR AN ELIGIBLE CUSTOMER–GENERATOR THAT IS
SUBJECT TO THE PROVI SIONS OF § 7–306 OF THIS TITLE;
(II) ARE LOCATED ON THE S AME PROPERTY OR ADJA CENT
PROPERTIES;
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(III) HAVE THE CAPACITY TO PRODUCE, WHEN CALCULATED
CUMULATIVELY FOR ALL GENERATING UNITS OR FACILITIES ON THE PR OPERTY OR
ADJACENT PROPERTY , MORE THAN 2 MEGAWATTS BUT NOT MORE THAN 14
MEGAWATTS OF ALTERNATING CURRE NT; AND
(IV) FOR EACH INDIVIDUAL GENERATING UNIT OR F ACILITY:
1. HAS THE CAPACITY TO PRODUCE NOT MORE THA N 2
MEGAWATTS OF ALTERNA TING CURRENT ;
2. IS SEPARATELY METERED BY THE ELECTRIC
COMPANY; AND
3. DOES NOT EXPORT ELEC TRICITY FOR SALE ON THE
WHOLESALE MARKET UND ER AN AGREEMENT WITH PJM INTERCONNECTION , LLC.
[(a)] (B) This section applies to a person who constructs a generating station
that:
(1) has the capacity to produce [at least] MORE THAN 2 megawatts of
electricity, AS MEASURED BY THE A LTERNATING CURRENT R ATING OF THE SYSTEM ’S
INVERTER, from a solar photovoltaic system; and
(2) is exempted under § 7–207.1 of this subtitle from the requirement to
obtain a certificate of public convenience and necessity.
[(b)] (C) (1) A person shall file an application for approval to construct a
generating station under § 7–207.1 of this subtitle at least 6 months before construction
commences.
(2) The Commission shall require a person who files an application for
approval to construct a generating station to pay a deposit of 1% of total installed costs.
[(c)] (D) (1) The Commission shall place any deposits collected under
subsection [(b)] (C) of this section into an escrow account.
(2) If a person demonstrates to the Commission that the person is fully
authorized to commence construction within 18 months after filing an application for
approval, the Commission shall refund the deposit, less reasonable administrative costs.
(3) (i) Subject to subparagraph (ii) of this paragraph, if a person does
not commence construction within 18 months after filing an application for approval, the
money held in the escrow account shall be:
1. deemed to be abandoned; and WES MOORE, Governor Ch. 460
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2. transferred to the Maryland Strategic Energy Investment
Fund under § 9–20B–05 of the State Government Article, less reasonable administrative
costs.
(ii) 1. A person may request an extension for a project that does
not commence construction within 18 months after the filing of an application for approval.
2. The Commission may grant the request based on factors
the Commission considers compelling, including the occurrence of events outside the
person’s control.
7–306.3.
(A) IN THIS SECTION , “ELIGIBLE CUSTOMER –GENERATOR ” HAS THE
MEANING STATED IN § 7–306 OF THIS SUBTITLE.
(B) AN ELECTRIC COMPANY S HALL PROVIDE METER A GGREGATION FOR AN
ELIGIBLE CUSTOMER –GENERATOR THAT :
(1) SUBMITS A REQUEST , IN WRITING, TO THE ELECTRIC COMPANY
FOR THE PROVISION OF METER AGGREGATION ; AND
(2) (I) USES ELECTRICAL SERV ICE FOR AGRICULTURE ;
(II) IS A NONPROFIT ORGAN IZATION;
(III) IS A MUNICIPAL OR CO UNTY GOVERNMENT , OR AN
ORGANIZATION AFFILIA TED WITH THE MUNICIP AL OR COUNTY GOVERNMENT ;
(IV) IS A UNIT OF STATE GOVERNMENT ; OR
(V) IS A PUBLIC SENIOR H IGHER EDUCATION INST ITUTION, AS
DEFINED IN § 10–101 OF THE EDUCATION ARTICLE.
(C) AN ELECTRIC COMPANY S HALL REQUIRE AN ELIG IBLE
CUSTOMER–GENERATOR THAT REQUE STS METER AGG REGATION UNDER THIS
SECTION TO PROVIDE W RITTEN ALLOCATION IN STRUCTIONS DESCRIBIN G HOW TO
DISTRIBUTE THE ELIGI BLE CUSTOMER –GENERATOR ’S EXCESS GENERATION
CREDITS TO EACH ACCO UNT BEFORE THE COMME NCEMENT OF ANY METER
AGGREGATION .
SECTION 2. AND BE IT FURTHE R ENACTED, That it is the intent of the General
Assembly that this Act apply only to solar energy generating facilities and eligible Ch. 460 2023 LAWS OF MARYLAND
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customer–generators authorized by an electric company to engage in net energy metering
under § 7–306 of the Public Utilities Article and COMAR 20.50.10.07.
SECTION 3. AND BE IT FURTHER ENACTED, That this Act shall take effect
October 1, 2023.
Approved by the Governor, May 8, 2023.