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.
*hb0908*
HOUSE BILL 908
C5, M5 3lr0688
CF SB 613
By: Delegates Clippinger, Amprey, Boafo, Charkoudian, Cullison, Ebersole,
Feldmark, Fennell, Foley, Fraser –Hidalgo, Kaufman, Kerr, R. Lewis,
J. Long, Lopez, Pasteur, Qi, Queen, Ruth, Shetty, Smith, Stewart, Terrasa,
Valderrama, Vogel, Watson, and Woods
Introduced and read first time: February 9, 2023
Assigned to: Economic Matters
Committee Report: Favorable with amendments
House action: Adopted
Read second time: March 8, 2023
CHAPTER ______
AN ACT concerning 1
Electricity – Community Solar Energy Generating Systems Program and 2
Property Taxes 3
FOR the purpose of making permanent the Community Solar Energy Generating Systems 4
Pilot Program; requiring a community solar energy generating system under the 5
Program to serve a certain percentage of its kilowatt–hour output to low–income and 6
moderate–income subscribers under certain circumstances; authorizing a 7
subscription coordinator to act on behalf of a subscriber organization; altering 8
requirements related to the siting and size of certain community solar energy 9
generating systems projects; authorizing the use of consolidated billing for certain 10
subscription charges; requiring an electric company to provide certain data to a 11
subscriber organization or subscription coordinator; authorizing an electric company 12
to charge a certain fee for the use of consolidated billing; requiring a person 13
constructing or operating a community solar energy generating system to address 14
critical area, climate resilience, and forest conservation concerns in a certain 15
manner; requiring the Public Service Commission to establish a stakeholder 16
workgroup related to the development of certain regulations; requiring the 17
Commission to adopt certain regulations making the pilot program permanent, 18
allowing for the use of consolidated billing, and implementing the provisions of this 19
Act; requiring the Commission to consider and implement certain methodologies to 20
allow tenants of master–metered residential facilities to participate in the Program; 21
repealing provisions related to maintenance of subscriptions if a subscriber has a 22 2 HOUSE BILL 908
change of address; prohibiting certain subscription rates and charges from being set 1
at more than a certain amount; establishing certain prevailing wage or labor 2
requirements for developers of certain community solar energy generating system 3
projects; creating a full–time position within the Commission for a certain purpose; 4
altering the personal property tax exemption for certain community solar energy 5
generating systems; and generally relating to the Community Solar Energy 6
Generating Systems Program community solar energy generating systems. 7
BY repealing and reenacting, with amendments, 8
Article – Public Utilities 9
Section 7–306.2 10
Annotated Code of Maryland 11
(2020 Replacement Volume and 2022 Supplement) 12
BY repealing and reenacting, with amendments, 13
Article – Tax – Property 14
Section 7–237 15
Annotated Code of Maryland 16
(2019 Replacement Volume and 2022 Supplement) 17
(As enacted by Chapters 38, 415, 658, and 659 of 2022) 18
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 19
That the Laws of Maryland read as follows: 20
Article – Public Utilities 21
7–306.2. 22
(a) (1) In this section the following words have the meanings indicated. 23
(2) “AGRIVOLTAICS” MEANS THE SIMULTANEO US USE OF AREAS OF 24
LAND FOR BOTH SOLAR POWER GENERATION AND AGRICULTURE : 25
(I) RAISING GRAINS , FRUITS, HERBS, MELONS, MUSHROOMS , 26
NUTS, SEEDS, TOBACCO, OR VEGETABLES ; 27
(II) RAISING POULTRY , INCLUDING CHICKENS A ND TURKEYS , 28
FOR MEAT OR EGG PROD UCTION; 29
(III) DAIRY PRODUCTION , SUCH AS THE RAISING OF MILKING 30
COWS; 31
(IV) RAISING LIVESTOCK, INCLUDING CATTLE , SHEEP, GOATS, 32
OR PIGS; 33
(V) HORSE BOARDING , BREEDING, OR TRAINING; 34 HOUSE BILL 908 3
(VI) TURF FARMING ; 1
(VII) RAISING ORNAMENTAL S HRUBS, PLANTS, OR FLOWERS , 2
INCLUDING AQUATIC PL ANTS; 3
(VIII) AQUACULTURE ; 4
(IX) SILVICULTURE ; OR 5
(X) ANY OTHER ACTIVITY R ECOGNIZED BY THE DEPARTMENT 6
OF AGRICULTURE AS AN AGR ICULTURAL ACTIVITY . 7
(3) “Baseline annual usage” means: 8
(i) a subscriber’s accumulated electricity use in kilowatt–hours for 9
the 12 months before the subscriber’s most recent subscription; or 10
(ii) for a subscriber that does not have a record of 12 months of 11
electricity use at the time of the subscriber’s most recent subscription, an estimate of the 12
subscriber’s accumulated 12 months of electricity use in kilowatt–hours, determined in a 13
manner the Commission approves. 14
[(3)] (4) “Community solar energy generating system” means a solar 15
energy system that: 16
(i) is connected to the electric distribution grid serving the State; 17
(ii) is located in the same electric service territory as its subscribers; 18
(iii) is attached to the electric meter of a subscriber or is a separate 19
facility with its own electric meter; 20
(iv) credits its generated electricity, or the value of its generated 21
electricity, to the bills of the subscribers to that system through virtual net energy 22
metering; 23
(v) has at least two subscribers but no limit to the maximum number 24
of subscribers; 25
(vi) does not have subscriptions larger than 200 kilowatts 26
constituting more than 60% of its [subscriptions] KILOWATT–HOUR OUTPUT ; 27
(vii) has a generating capacity that does not exceed 5 megawatts as 28
measured by the alternating current rating of the system’s inverter; [and] 29
4 HOUSE BILL 908
(viii) may be owned by any person; AND 1
(IX) WITH RESPECT TO COMMUNITY SOLAR ENER GY 2
GENERATING SYSTEMS C ONSTRUCTED UNDER THE PROGRAM, SERVES AT LEAST 3
40% OF ITS KILOWATT –HOUR OUTPUT TO LMI SUBSCRIBERS UNLESS T HE SOLAR 4
ENERGY SYSTEM IS WHO LLY OWNED BY THE SUBSCRIBERS TO T HE SOLAR ENERGY 5
SYSTEM A NONPROFIT ORGANIZATION . 6
(5) “CONSOLIDATED BILLING ” MEANS A PAYMENT MECH ANISM THAT 7
REQUIRES AN ELECTRIC COMPANY TO , AT THE REQUEST OF A SUBSCRIBER 8
ORGANIZATION OR SUBS CRIPTION COORDINATOR : 9
(I) INCLUDE THE MONTHLY SUBSCRIPTION CHARGE OF A 10
SUBSCRIBER ORGANIZAT ION OR SUBSCRIPTION C OORDINATOR ON THE MO NTHLY 11
BILLS RENDERED BY TH E ELECTRIC COMPANY F OR ELECTRIC SERVICE AND SUPPLY 12
TO SUBSCRIBERS ; AND 13
(II) REMIT PAYMENT RECEIVED FOR THOSE CHARGES TO THE 14
SUBSCRIBER ORGANIZAT ION OR SUBSCRIPTION COORDINATOR . 15
(6) “CRITICAL AREA” HAS THE MEANING STAT ED IN § 8–1802 OF THE 16
NATURAL RESOURCES ARTICLE. 17
(7) “LMI SUBSCRIBER” MEANS A SUBSCRIBER T HAT: 18
(I) IS LOW–INCOME; 19
(II) IS MODERATE–INCOME; OR 20
(III) RESIDES IN A CENSUS TRACT THAT IS AN: 21
1. OVERBURDENED COMMUNITY ; AND 22
2. UNDERSERVED COMMUNIT Y. 23
(8) “LOW–INCOME” MEANS: 24
(I) HAVING AN ANNUAL HOU SEHOLD INCOME THAT I S AT OR 25
BELOW 200% OF THE FEDERAL POVER TY LEVEL; OR 26
(II) BEING CERTIFIED AS E LIGIBLE FOR ANY FEDE RAL, STATE, 27
OR LOCAL ASSISTANCE PROGRAM THAT LIMITS PARTICIPATION TO HOU SEHOLDS 28
WHOSE INCOME IS AT O R BELOW 200% OF THE FEDERAL POVER TY LEVEL. 29
HOUSE BILL 908 5
(9) “MODERATE–INCOME” MEANS HAVING AN ANNU AL HOUSEHOLD 1
INCOME THAT IS AT OR BELOW 80% OF THE MEDIAN INCOME FOR MARYLAND. 2
(10) “OVERBURDENE D COMMUNITY ” HAS THE MEANING STAT ED IN § 3
1–701 OF THE ENVIRONMENT ARTICLE. 4
(11) “PILOT PROGRAM ” MEANS THE PROGRAM ES TABLISHED UNDER 5
THIS SECTION BEFORE OCTOBER JULY 1, 2023, AND EFFECTIVE UNTIL THE START 6
OF THE PROGRAM ESTABLISHED U NDER SUBSECTION (D)(20) OF THIS SECTION. 7
[(4)] (12) “Program” means the Community Solar Energy Generating 8
Systems [Pilot] Program. 9
(13) “QUEUE” MEANS: 10
(I) THE PILOT PROGRAM QU EUE AN ELECTRIC COMP ANY IS 11
REQUIRED TO MAINTAIN UNDER COMAR 20.62.03.04; AND 12
(II) A QUEUE AN ELECTRIC CO MPANY MAY BE REQUIRE D TO 13
MAINTAIN UNDER THE PROGRAM. 14
[(5)] (14) “Subscriber” means a retail customer of an electric company that: 15
(i) holds a subscription to a community solar energy generating 16
system; and 17
(ii) has identified one or more individual meters or accounts to which 18
the subscription shall be attributed. 19
[(6)] (15) “Subscriber organization” means: 20
(i) a person that owns or operates a community solar energy 21
generating system; or 22
(ii) the collective group of subscribers of a community solar energy 23
generating system. 24
[(7)] (16) “Subscription” means the portion of the electricity generated by 25
a community solar energy generating system that is credited to a subscriber. 26
(17) “SUBSCRIPTION COORDINA TOR” MEANS A PERSON THAT : 27
(I) MARKETS COMMUNITY SO LAR ENERGY GENERATIN G 28
SYSTEMS OR OTHERWISE PROVIDES SERVICES RE LATED TO COMMUNITY S OLAR 29
ENERGY GENERATING SY STEMS UNDER ITS OWN BRAND NAME ; 30 6 HOUSE BILL 908
(II) PERFORMS ANY ADMINIS TRATIVE ACTION TO AL LOCATE 1
SUBSCRIPTIONS , CONNECT SUBSCRIBERS WI TH COMMUNITY SOLAR E NERGY 2
GENERATING SYSTEMS , OR ENROLL CUSTOMERS IN THE PROGRAM; OR 3
(III) MANAGES INTERACTIONS BETWEEN A SUBSCRIBER 4
ORGANIZATION AND AN ELECTRIC COMPANY OR ELECTRICITY SUPPLIER RELATING 5
TO SUBSCRIBERS . 6
(18) “UNDERSERVED COMMUNITY ” HAS THE MEANING STAT ED IN § 7
1–701 OF THE ENVIRONMENT ARTICLE. 8
[(8)] (19) “Unsubscribed energy” means any community solar energy 9
generating system output in kilowatt–hours that is not allocated to any subscriber. 10
[(9)] (20) “Virtual net energy metering” means measurement of the 11
difference between the kilowatt–hours or value of electricity that is supplied by an electric 12
company and the kilowatt–hours or value of electricity attributable to a subscription to a 13
community solar energy generating system and fed back to the electric grid over the 14
subscriber’s billing period, as calculated under the tariffs established under [subsection] 15
SUBSECTIONS (e)(2), (F)(2), AND (G)(2) of this section. 16
(b) The General Assembly finds that: 17
(1) community solar energy generating systems: 18
(i) provide residents and businesses, including those that lease 19
property, increased access to local solar electricity while encouraging private investment in 20
solar resources; 21
(ii) enhance continued diversification of the State’s energy resource 22
mix to achieve the State’s renewable energy portfolio standard and Greenhouse Gas 23
Emissions Reduction Act goals; and 24
(iii) provide electric companies and ratepayers the opportunity to 25
realize the many benefits associated with distributed energy; and 26
(2) it is in the public interest that the State enable the development and 27
deployment of energy generation from community solar energy generating systems in order 28
to: 29
(i) allow renters and low–income and moderate–income retail 30
electric customers to own an interest in a community solar energy generating system; 31
(ii) facilitate market entry for all potential subscribers while giving 32
priority to subscribers who are the most sensitive to market barriers; and 33 HOUSE BILL 908 7
(iii) encourage developers to promote participation by renters and 1
low–income and moderate–income retail electric customers. 2
(c) A community solar energy generating system, [including a] subscriber [or], 3
subscriber organization [associated with the community solar energy generating system], 4
OR SUBSCRIPTION COOR DINATOR is not: 5
(1) an electric company; 6
(2) an electricity supplier; or 7
(3) a generating station if the generating capacity of the community solar 8
energy generating system does not exceed 2 megawatts. 9
(d) (1) (i) The Commission shall establish [a pilot program for] AND 10
MAINTAIN a Community Solar Energy Generating [System] SYSTEMS Program. 11
(ii) The structure of the [pilot program] PROGRAM is as provided in 12
this subsection. 13
(2) All rate classes may participate in the [pilot program] PROGRAM. 14
(3) Subscribers served by electric standard offer service, community choice 15
aggregators, and electricity suppliers may hold subscriptions to the same community solar 16
energy generating system. 17
(4) A subscriber organization OR SUBSCRIPTION COOR DINATOR 18
ACTING ON BEHALF OF A SUBSCRIBER ORGANIZ ATION shall: 19
(i) determine how to allocate subscriptions to subscribers; and 20
(ii) notify an electric company and, if applicable, a relevant 21
electricity supplier about THE ALLOCATION OF SU BSCRIPTIONS IN ACCOR DANCE WITH 22
the regulations the Commission adopts under subsection (e) of this section. 23
(5) An electric company shall use the tariff structure under [subsection] 24
SUBSECTIONS (e)(2), (F)(2), AND (G)(2) of this section to provide each subscriber with the 25
credits. 26
(6) A subscriber may not receive credit for virtual net excess generation 27
that exceeds 200% of the subscriber’s baseline annual usage. 28
(7) Any unsubscribed energy generated by a community solar energy 29
generating system that is not owned by an electric company shall be purchased under the 30 8 HOUSE BILL 908
electric company’s process for purchasing the output from qualifying facilities at the 1
amount it would have cost the electric company to procure the energy. 2
(8) An electric company shall use energy generated from a community solar 3
energy generating system to offset purchases from wholesale electricity suppliers for 4
standard offer service. 5
(9) All costs associated with small generator interconnection standards 6
under COMAR 20.50.09 are the responsibility of the subscriber organization. 7
(10) A subscriber organization may petition an electric company to 8
coordinate the interconnection and commencement of operations of a community solar 9
energy generating system after the Commission adopts regulations required under 10
subsection (e) of this section. 11
(11) A subscriber organization may contract with a third party for the third 12
party to finance, build, own, or operate a community solar energy generating system. 13
(12) A municipal utility or cooperative utility may participate in the [pilot 14
program] PROGRAM. 15
(13) (I) [Equipment for] EXCEPT AS PROVIDED IN SUBPARAGRAPH 16
(II) OF THIS PARAGRAP H, a community solar energy generating system may not be [built] 17
LOCATED on [contiguous parcels of land unless the equipment is installed only on building 18
rooftops] THE SAME OR AN ADJAC ENT PARCEL OF LAND A S AN EXISTING OR 19
PROPOSED COMMUNITY S OLAR ENERGY GE NERATING SYSTEM IF T HE TOTAL 20
INSTALLED CAPACITY O F ALL COMMUNITY SOLAR ENER GY GENERATING SYSTEMS 21
ON THE SAME OR ADJAC ENT PARCEL WOULD EXC EED 5 MEGAWATTS . 22
(II) THE PROHIBITION UNDER SUBPARAGRAPH (I) OF THIS 23
PARAGRAPH DOES NOT A PPLY TO PROJECTS CONSTRUCTED : 24
1. ON THE ROOFTOPS OF B UILDINGS; 25
2. IN AREAS THAT ARE ZO NED FOR INDUSTRIAL U SE; 26
3. ON BROWNFIELDS LOCAT IONS AND CLEAN FILL SITES; 27
4. OVER PARKING LOTS OR ROADWAYS; 28
5. ON MULTILEVEL PARKIN G STRUCTURES ; 29
6. ON OR OVER TRANSPORT ATION OR PUBLIC 30
RIGHTS–OF–WAY; 31
HOUSE BILL 908 9
7. AT AIRPORTS; 1
8. ON LAND THAT: 2
A. WAS PREVIOUSLY ZONED FOR INDUSTRIAL USE O R IS 3
ECOLOGICALLY COMPROM ISED; AND 4
B. IS NOT TARGETED FOR MITIGATION OR 5
RESTORATION ; OR 6
9. IN ANY LOCATION IF: 7
A. THE COMBINED CAPACIT Y OF ALL COMMUNITY SOLAR 8
ENERGY GENERATING SYSTEMS O N THE SAME OR ADJACE NT PARCEL DOES NOT 9
EXCEED 10 MEGAWATTS ; AND: 10
B. A. AT LEAST 75% OF THE AGGREGATE CAP ACITY OF THE 11
CO–LOCATED COMMUNITY SO LAR ENERGY GENERATIN G SYSTEMS SERVES LMI 12
SUBSCRIBERS OR; 13
B. FOR A SITE WITHOUT A COMMUNITY SOLAR ENER GY 14
GENERATING SYSTEM IN STALLED BEFORE THE S TART OF THE PROGRAM UNDER 15
PARAGRAPH (20) OF THIS SUBSECTION , ALL OF THE COMMUNITY SOLAR ENERGY 16
GENERATING SYSTEMS I NSTALLED AFTER THE S TART OF THE PROGRAM ARE USED 17
FOR AGRIVOLTAICS ; OR 18
C. FOR A SITE WITH A CO MMUNITY SOLAR ENERGY 19
GENERATING SYSTEM IN STALLED BEFORE THE S TART OF THE PROGRAM UNDER 20
PARAGRAPH (20) OF THIS SUBSECTION , EACH NEW COMMUNITY S OLAR ENERGY 21
GENERATING SYSTEM IN STALLED AFTER THE ST ART OF THE PROGRAM IS USED FOR 22
AGRIVOLTAICS . 23
(14) A SUBSCRIBER ORGANIZAT ION OR SUBSCRIPTION COORDINATOR 24
MAY ELECT FOR A SUBS CRIBER OR A COMMUNITY SOLAR ENER GY GENERATING 25
SYSTEM REPRESENTED B Y THE SUBSCRIBER ORG ANIZATION OR SUBSCRI PTION 26
COORDINATOR TO PARTICIPATE IN CO NSOLIDATED BILLING . 27
(15) AN ELECTRIC COMPANY S HALL PROVIDE ACCESS TO CUSTOMER 28
BILLING AND USAGE DA TA TO A SUBSCRIBER O RGANIZATION OR SUBSCRI PTION 29
COORDINATOR IF THE C USTOMER PROVIDES TO THE ELECTRIC COMPANY 30
AFFIRMATIVE CONSENT THAT IS ACCOMPANIED BY A WRITTEN OR ELEC TRONIC 31
SIGNATURE. 32
10 HOUSE BILL 908
(16) (I) AN ELECTRIC COMPANY M AY REQUIRE A REASONABLE FEE 1
FOR SUBSCRIBER ORGAN IZATIONS OR SUBSCRIPTION COOR DINATORS THAT USE 2
CONSOLIDATED BILLING . IF THE FEE DOES 3
(II) THE FEE UNDER SUBPARA GRAPH (I) OF THIS PARAGRAPH 4
MAY NOT EXCEED 1% OF THE BILL CREDIT VALUE TO THE SUBSCRIBER UNLESS THE 5
COMMISSION DETERMINES A HIGHER FEE IS JUST AND REASONABLE BASED ON 6
SUBSTANTIAL EVIDENCE PRESENTED BY THE ELE CTRIC COMPANY . 7
(III) AN ELECTRIC COMPANY M AY ADJUST THE FEE UN DER 8
SUBPARAGRAPH (I) OF THIS PARAGRAPH NO T MORE THAN ONCE PER YEAR. 9
(IV) THE FEE FOR CONSOLIDA TED BILLING ASSESSED TO A 10
SUBSCRIBER ORGANIZATION O R SUBSCRIPTION COORD INATOR MAY NOT EXCEE D 11
THE FEE THAT WAS IN EFFECT WHEN THE SUBS CRIBER ORGANIZATION OR 12
SUBSCRIPTION COORDIN ATOR ELECTED FOR THE COMMUNITY SOLAR ENER GY 13
GENERATING SYSTEM RE PRESENTED BY THE SUB SCRIBER ORGANIZATION OR 14
SUBSCRIPTION COORDINATO R TO PARTICIPATE IN CONSOLIDATED BILLING . 15
(17) A SUBSCRIBER ORGANIZAT ION OR SUBSCRIPTION COORDINATOR 16
MAY NOT PROHIBIT A S UBSCRIBER FROM ENROL LING WITH AN ELECTRI CITY 17
SUPPLIER FOR ELECTRI C SERVICE OR SUPPLY . 18
(18) A COMMUNITY SOLAR ENER GY GENERATING SYSTEM ON AN 19
ELECTRIC COMPANY QUE UE UNDER THE PILOT P ROGRAM ON SEPTEMBER 30, 2023, 20
SHALL RETAIN THE QUE UE POSITION UNDER TH E PROGRAM. 21
(19) IN CONSTRUCTING OR OP ERATING A COMMUNITY SOLAR ENERGY 22
GENERATING SYSTEM , A PERSON SHALL ADDRESS CR ITICAL AREA, CLIMATE 23
RESILIENCE, AND FOREST CONSERVAT ION CONCERNS BY COMP LYING WITH THE 24
FOREST CONSERVATION ACT AND OTHER RELEVAN T STATE AND LOCAL 25
ENVIRONMENTAL LAWS A ND REGULATIONS PERTA INING TO THE CRITICA L AREA, 26
CLIMATE RESILIENCE , AND FOREST CONSERVATI ON. 27
[(14)] (20) The [pilot program] PROGRAM shall[: 28
(i)] begin on the earlier of: 29
[1.] (I) the date of submission of the first petition of a 30
subscriber organization under paragraph (10) of this subsection after the Commission 31
adopts the regulations required under subsection [(e)] (F) of this section; or 32
[2.] (II) 6 months after the Commission adopts those 33
regulations[; and 34 HOUSE BILL 908 11
(ii) end 7 years after the beginning date, but not sooner than 1
December 31, 2024. 2
(15) The Commission shall limit the pilot program in such a way that the 3
Commission may conduct a meaningful study of the pilot program and its results, including: 4
(i) the appropriate number of community solar energy generating 5
systems to be included in the pilot program; 6
(ii) the appropriate amount of generating capacity of the community 7
solar energy generating systems to be included in the pilot program and the annual capacity 8
limits for each program category, each of which should increase throughout the duration of 9
the pilot program; and 10
(iii) a variety of appropriate geographical areas in the State for 11
locating community solar energy generating systems to be included in the pilot program]. 12
(e) On or before May 15, 2016, the Commission shall adopt regulations to 13
implement this section, including regulations for: 14
(1) consumer protection; 15
(2) a tariff structure for an electric company to provide a subscriber with 16
the kilowatt–hours or value of the subscriber’s subscription, as the Commission determines; 17
(3) a calculation for virtual net energy metering as the Commission 18
determines; 19
(4) a protocol for electric companies, electricity suppliers, and subscriber 20
organizations to communicate the information necessary to calculate and provide the 21
monthly electric bill credits and yearly net excess generation payments required by this 22
section; and 23
(5) a protocol for a subscriber organization to coordinate with an electric 24
company for the interconnection and commencement of operations of a community solar 25
energy generating system. 26
(F) (1) SUBJECT TO SUBSECTION (H) OF THIS SECTION , TO IMPLEMENT 27
THE PROGRAM, THE COMMISSION SHALL , ON OR BEFORE OCTOBER 1, 2024 28
JANUARY 1, 2025, ADOPT REVISIONS TO T HE REGULATIONS ADOPT ED UNDER 29
SUBSECTION (E) OF THIS SECTION FOR THE PILOT PROGRAM, INCLUDING REVISIONS 30
THAT: 31
(I) REMOVE ALL PROGRAM CATEGORIES , PROJECT 32
GENERATING CAPACITY LIMITS, YEARLY PROGRAMMATIC AND ELECTRIC 33 12 HOUSE BILL 908
COMPANY–SPECIFIC CAPACITY LI MITS, AND SUNSET DATES SO THAT THE TOTAL 1
NUMBER AND CAPACITY OF COMMUNITY SOLAR ENER GY GENERATING SYSTEM S IS 2
SUBJECT ONLY TO THE OVERALL LIMITATION F OR ALL NET METERING PROJECTS 3
ESTABLISHED UNDER § 7–306(D) OF THIS SUBTITLE; 4
(II) AUTHORIZE ALL COMMUN ITY SOLAR ENERGY GEN ERATING 5
SYSTEMS, INCLUDING THOSE CONS TRUCTED D URING THE PILOT PROG RAM, TO 6
OPERATE AND GENERATE SUBSCRIPTION CREDITS UNTIL THE COMMUNITY SOLAR 7
ENERGY GENERATING SY STEM IS DECOMMISSION ED; 8
(III) ADJUST CO–LOCATION RESTRICTION S TO COMPLY WITH 9
SUBSECTION (D)(13) OF THIS SECTION; 10
(IV) ALLOW A CUSTOMER SUBSCRIBER ORGANIZAT ION OR 11
SUBSCRIPTION COORDIN ATOR TO VERIFY, WHEN SUBSCRIBING TO A COMMUNITY 12
SOLAR ENERGY GENERAT ING SYSTEM, THE INCOME OF A PROSPECTIVE SUB SCRIBER 13
FOR ELIGIBILITY AS A N LMI SUBSCRIBER UNDER THE PROGRAM BY USING ONE OF 14
THE FOLLOWING METHODS : 15
1. SELF–ATTESTATION BY THE PROSPECTIVE 16
SUBSCRIBER THAT DOES NOT NEED T O BE UNDER OATH OR P ENALTY OF PERJURY ; 17
2. PROVIDING REQUIRING THE PROSPE CTIVE 18
SUBSCRIBER TO PROVID E EVIDENCE OF ELIGIBIL ITY FOR OR ENROLLMEN T IN AT 19
LEAST ONE OF THE FOLLOWING GOV ERNMENT ASSISTANCE P ROGRAMS: 20
A. THE MARYLAND ENERGY ASSISTANCE PROGRAM; 21
B. THE SUPPLEMENTAL NUTRITION ASSISTANCE 22
PROGRAM; 23
C. MEDICAID; 24
D. HEAD START; 25
E. FREE AND REDUCED PRI CE SCHOOL MEALS ; 26
F. THE FEDERAL LOW INCOME HOME ENERGY 27
ASSISTANCE PROGRAM; 28
G. EMPOWER MARYLAND LOW – OR 29
MODERATE–INCOME INCENTIVES ; 30
H. TELEPHONE LIFELINE S ERVICE; 31 HOUSE BILL 908 13
I. THE FUEL FUND OF MARYLAND; OR 1
J. ANY ADDITIONAL FEDER AL, STATE, OR LOCAL 2
ASSISTANCE PROGRAM T HAT THE COMMISSION DETERMINES WILL FURTHER THE 3
PURPOSES OF THE PROGRAM; 4
3. PAY STUBS; 5
4. INCOME TAX DOCUMENTS ; 6
5. PROOF OF RESIDENCE I N AN AFFORDABLE HOUS ING 7
FACILITY; 8
6. PROOF OF RESIDENCE W ITHIN A CENSUS TRACT THAT 9
IS: 10
A. AN OVERBURDENED COMM UNITY; AND 11
B. AN UNDERSERVED COMMU NITY; 12
7. ANY VERIFICATION MET HOD THAT WAS AVAILAB LE 13
UNDER THE PILOT PROG RAM; OR 14
8. ANY ADDITIONAL METHO DS APPROVED BY THE 15
COMMISSION TO VERIFY INCOM E; 16
(V) REQUIRE ALL ELECTRIC COMPANIES TO USE : 17
1. BILL CREDITS APPLIED AS A REDUCTION IN ME TERED 18
KILOWATT–HOURS; OR 19
2. MONETARY BILL CREDITS THAT PROVIDE NOT LESS 20
THAN THE VALUE TO TH E SUBSCRIBER OF THE CREDIT HAD IT BEEN APPLIED TO THE 21
SUBSCRIBER’S BILL AS A REDUCTIO N IN METERED KILOWAT T–HOURS; AND 22
(VI) ESTABLISH PROCEDURES FOR THE COMMISSION TO : 23
1. COLLECT DATA FROM SU BSCRIBER ORGANIZATIO NS, 24
WHEN APPLYING TO THE COMMISSION FOR ADMISS ION TO THE PROGRAM, ON: 25
A. THE TYPE AND QUANTIT Y OF FOREST COVER ON THE 26
SITE OF A PROPOSED C OMMUNITY SOLAR ENERG Y GENERATING SYSTEM ; AND 27
14 HOUSE BILL 908
B. ANY ANTICIPATED IMPA CTS THAT THE 1
CONSTRUCTION OF THE PROPOSED COMMUNITY S OLAR ENERGY GENERATI NG 2
SYSTEM WILL HAVE ON TREES AND FOREST C OVER AT THE SITE OF THE PROPOSED 3
COMMUNITY SOLAR ENER GY GENERATING SYSTEM ; AND 4
2. MAKE THE DATA COLLEC TED UNDER ITEM 1 OF THIS 5
ITEM AVAILABLE TO TH E PUBLIC IN A FORMAT AGGREGATED BY COUNTY . 6
(2) ON OR BEFORE OCTOBER 1, 2024 JULY 1, 2025, THE COMMISSION 7
SHALL APPROVE ELECTR IC COMPANY TARIFF MO DIFICATIONS THAT ARE 8
CONSISTENT WITH THE REGULATIONS ADOPTED UNDER THIS SUBSECTIO N. 9
(G) (1) SUBJECT TO SUBSECTION (H) OF THIS SECTION , ON OR BEFORE 10
APRIL JULY 1, 2025, THE COMMISSION SHALL ADOP T REGULATIONS THAT : 11
(I) IMPLEMENT CONSOLIDAT ED BILLING BY ELECTR IC 12
COMPANIES THAT MUST BE IN EFFE CT BY JANUARY 1, 2026, INCLUDING PROTOCOLS 13
FOR PURCHASE OF RECEIVAB LES PROTOCOLS OR NET CREDITING ; 14
(II) REQUIRE ALL ELECTRIC COMPANIES TO REPORT BILLING 15
AND CREDITING ERRORS TO THE COMMISSION ON A REGUL AR SCHEDULE ; 16
(III) IMPOSE SPECIFIC TIMI NG REQUIREMENTS FOR 17
APPLICATION OF BILL CREDITS TO SUBSCRIBE R BILLS AND APPLICAT ION OF 18
ROLLOVER CREDITS ; 19
(IV) IMPLEMENT DATA EXCHA NGE PROTOCOLS FOR EL ECTRIC 20
COMPANIES, SUBSCRIBER ORGANIZAT IONS, AND SUBSCRIPTION COO RDINATORS, 21
INCLUDING REQUIRED D ATA FIELDS FOR ELECT RIC COMPANY ALLOCATI ON 22
REPORTS; 23
(V) FOR SUBSCRIBERS ENRO LLED IN BUDGET BILLI NG, 24
REQUIRE ELECTRIC COM PANIES TO APPLY COMM UNITY SOLAR CREDITS TO THE 25
MONTHLY AMOUNT DUE R ATHER THAN THE UNDER LYING BALANCE ; 26
(VI) REQUIRE ALL ELECTRIC COMPANIES TO SHOW AP PLIED AND 27
BANKED CREDITS ON EA CH BILL RENDERED TO A SUBSCRIBER; AND 28
(VII) IMPLEMENT ANY ADDITI ONAL CHANGES THE COMMISSION 29
DETERMINES WILL IMPR OVE BILLING AND CREDITIN G PROCESSES FOR 30
SUBSCRIBERS , SUBSCRIBER ORGANIZAT IONS, AND SUBSCRIPTION COO RDINATORS. 31
HOUSE BILL 908 15
(2) ON OR BEFORE APRIL 1, 2025 JANUARY 1, 2026, THE 1
COMMISSION SHALL APPR OVE ELECTRIC COMPANY TARIFF MODIFICATIONS THAT 2
ARE CONSISTENT WITH THE REGULATIONS ADOPTED UND ER THIS SUBSECTION . 3
(H) THE COMMISSION SHALL CONV ENE A STAKEHOLDER WO RKGROUP TO 4
PROVIDE RECOMMENDATI ONS REGARDING THE RE GULATIONS TO BE ADOP TED BY 5
THE COMMISSION UNDER SUBS ECTIONS (F) AND (G) OF THIS SECTION. 6
(I) THE COMMISSION SHALL CONS IDER AND IMPLEMENT M ETHODOLOGIES 7
TO ALLOW THE TENANTS OF MASTER –METERED RESIDENTIAL FACILITIES TO 8
PARTICIPATE IN THE PROGRAM AND BENEFIT D IRECTLY FROM ANY ASS OCIATED 9
ELECTRIC BILL SAVING S. 10
[(f)] (J) (1) Subject to regulations or orders of the Commission, a contract 11
relating to a community solar energy generating system [or], subscriber organization, OR 12
SUBSCRIPTION COORDIN ATOR that is entered into during the pilot program OR THE 13
PROGRAM shall remain in effect according to the terms of the contract, including after the 14
termination of the pilot program OR THE PROGRAM. 15
(2) [(i) This paragraph applies to electric companies, electric 16
cooperatives, and municipal utilities that participate in the Program. 17
(ii) A subscriber who has a change in the service address associated 18
with the subscriber’s subscription may maintain the subscription for the new address if the 19
new address is within the same electric territory as the old address. 20
(iii) An electric company or a subscriber organization may not 21
terminate a subscriber’s subscription due to a change of address for the service address 22
associated with the subscription if the requirements under subparagraph (ii) of this 23
paragraph are met. 24
(iv) An electric company shall make any changes necessary to 25
accommodate a subscriber’s change of address on notification by a subscriber organization. 26
(g) (3) After termination of the pilot program,] ON AND AFTER OCTOBER 1, 27
2023, in accordance with the operational and billing requirements in subsection (d) of this 28
section: 29
[(1)] (I) a subscriber organization may continue the operation of a 30
community solar energy generating system that began operation during the pilot program, 31
including the creation and trading of subscriptions; and 32
[(2)] (II) in accordance with the tariffs established under [subsection] 33
SUBSECTIONS (e)(2), (F)(2), AND (G)(2) of this section, an electric company shall continue 34 16 HOUSE BILL 908
to facilitate the operation of a community solar energy generating system that began 1
operation during the pilot program. 2
[(h)] (K) The cumulative installed nameplate capacity under the pilot program 3
AND THE PROGRAM shall count toward the overall limitation for all net metering projects 4
established under § 7–306(d) of this subtitle. 5
(L) (1) (I) A SUBSCRIBER ORGANIZAT ION OR SUBSCRIPTION 6
COORDINATOR MAY NOT REQUIRE AN LMI SUBSCRIBER TO UNDERG O A CREDIT 7
CHECK OR PAY A SIGN –UP FEE TO SUBSCRIBE TO A COMMUNITY SOLAR ENERGY 8
GENERATING SYSTEM . 9
(II) A SUBSCRIBER ORGANIZAT ION OR SUBSCRIPTION 10
COORDINAT OR SHALL: 11
1. VERIFY THE ELIGIBILI TY OF AN LMI SUBSCRIBER IN 12
ACCORDANCE WITH SUBS ECTION (F)(1)(IV) OF THIS SECTION; AND 13
2. RETAIN RECORDS OF EA CH DETERMINATION OF 14
ELIGIBILITY FOR AN LMI SUBSCRIBER TO BE MAD E AVAILABLE TO THE 15
COMMISSION ON REQUEST . 16
(2) A SUBSCRIBER WHO A SUB SCRIBER ORGANIZATION DETERMINED 17
WAS ELIGIBLE TO PART ICIPATE AS A LOW –INCOME OR MODERATE –INCOME 18
SUBSCRIBER UNDER THE PILOT PROGRAM SHALL REMAIN ELIGIBLE AS A N LMI 19
SUBSCRIBER UNDER THE PROGRAM. 20
(3) (I) A COMMUNITY SOLAR ENE RGY GENERATING SYSTE M 21
CONSTRUCTED UNDER TH E PILOT PROGRAM IN A CATEGORY REQUIRING T HAT AT 22
LEAST 30% OF ITS KILOWATT –HOUR OUTPUT SERVE LO W–INCOME OR 23
MODERATE–INCOME SUBSCRIBERS S HALL CONTINUE TO SER VE AT LEAST 30% OF 24
ITS KILOWATT –HOUR OUTPUT TO LOW –INCOME OR MODERATE –INCOME 25
SUBSCRIBERS . 26
(II) A COMMUNITY SOLAR ENER GY GENERATING SYSTEM 27
CONSTRUCTED UNDER TH E PILOT PROGRAM IN A CATEGORY REQUIRING T HAT AT 28
LEAST 51% OF ITS KILOWATT –HOUR OUTPUT SERVE LO W–INCOME OR 29
MODERATE–INCOME SUBSCRIBERS S HALL CONTINUE TO SERVE AT LEAST 51% OF 30
ITS KILOWATT –HOUR OUTPUT TO LOW –INCOME OR MODERATE –INCOME 31
SUBSCRIBERS . 32
(M) A SUBSCRIBER ORGANIZAT ION OR SUBSCRIPTION COORDINATOR MAY 33
NOT CHARGE A RESIDEN TIAL SUBSCRIBER WHO IS NOT PARTICIPATING IN 34
CONSOLIDATED BILLING A SUBSCRIPTIO N RATE THAT IS MORE THAN THE 35 HOUSE BILL 908 17
MONETARY VALUE OF TH E BILL CREDIT ON A B ILL ISSUED BY THE EL ECTRIC 1
COMPANY TO THE SUBSC RIBER FOR ELECTRIC S ERVICE. 2
(N) A SUBSCRIBER ORGANIZAT ION OR SUBSCRIPTION COORDINATOR THAT 3
ELECTS FOR A SUBSCRI BER TO PARTICIPATE I N CONSOLIDATED BILLING MAY NOT 4
SET A SUBSCRIPTION C HARGE THAT IS MORE T HAN THE MONETARY VAL UE OF THE 5
BILL CREDIT ON A BIL L ISSUED BY THE ELEC TRIC COMPANY TO THE SUBSCRIBER. 6
(O) THE DEVELOPER OF A CO MMUNITY SOLAR ENERGY GENERATING 7
SYSTEM WITH A GENERA TING CAPACI TY OVER 1 MEGAWATT , AS MEASURED IN 8
ALTERNATING CURRENT , SHALL ENSURE THAT WO RKERS ARE PAID NOT L ESS THAN 9
THE PREVAILING WAGE RATE DETERMINED UNDE R TITLE 17, SUBTITLE 2 OF THE 10
STATE FINANCE AND PROCUREMENT ARTICLE, UNLESS THE COMMUNITY SOLAR 11
ENERGY GENERATI NG SYSTEM IS SUBJECT TO A PROJECT LABOR A GREEMENT THAT : 12
(1) BINDS ALL CONTRACTOR S AND SUBCONTRACTORS ON THE 13
COMMUNITY SOLAR ENER GY GENERATING SYSTEM THROUGH THE INCLUSIO N OF 14
SPECIFICATIONS IN AL L RELEVANT SOLICITAT ION PROVISIONS AND C ONTRACT 15
DOCUMENTS ; 16
(2) ALLOWS ALL CONTRACTO RS AND SUBCONTRACTOR S TO COMPETE 17
FOR CONTRACTS AND SU BCONTRACTS ON THE PR OJECT WITHOUT REGARD TO 18
WHETHER THEY ARE OTH ERWISE PARTIES TO CO LLECTIVE BARGAINING 19
AGREEMENTS ; 20
(3) ESTABLISHES UNIFORM TERMS AND CONDITIONS OF 21
EMPLOYMENT FOR ALL C ONSTRUCTION LABOR EM PLOYED ON THE PROJEC TS; 22
(4) GUARANTEES AGAINST S TRIKES, LOCKOUTS, AND SIMILAR JOB 23
DISRUPTIONS; 24
(5) ESTABLISHES MUTUALLY BINDING PROCEDURES F OR RESOLVING 25
LABOR DISPUTES ; AND 26
(6) INCLUDES ANY OTHER P ROVISIONS NEGOTIATED BY THE PA RTIES 27
TO PROMOTE SUCCESSFU L DELIVERY OF THE CO MMUNITY SOLAR ENERGY 28
GENERATING SYSTEM . 29
Article – Tax – Property 30
7–237. 31
(a) Except as provided in subsection (b) of this section, personal property is 32
exempt from property tax if the property is machinery or equipment used to generate: 33
18 HOUSE BILL 908
(1) electricity or steam for sale; or 1
(2) hot or chilled water for sale that is used to heat or cool a building. 2
(b) Subject to § 7–514 of this title, and except as provided in subsection (c) of this 3
section, personal property that is machinery or equipment described in subsection (a) of 4
this section is subject to county or municipal corporation property tax on: 5
(1) 75% of its value for the taxable year beginning July 1, 2000; and 6
(2) 50% of its value for the taxable year beginning July 1, 2001 and each 7
subsequent taxable year. 8
(c) (1) (i) In this subsection the following words have the meanings 9
indicated. 10
(ii) “Agrivoltaics” means the simultaneous use of areas of land for 11
both solar power generation and agriculture. 12
(iii) “Brownfield” means: 13
1. a former industrial or commercial site identified by federal 14
or State laws or regulations as contaminated or polluted; or 15
2. a closed municipal or rubble landfill regulated under a 16
refuse disposal permit by the Department of the Environment. 17
(iv) “Community solar energy generating system” has the meaning 18
stated in § 7–306.2 of the Public Utilities Article. 19
(v) “Electric company” has the meaning stated in § 1–101 of the 20
Public Utilities Article. 21
(2) This subsection applies through the life cycle of a community solar 22
energy generating system that: 23
(i) is placed in service after June 30, 2022; and 24
(ii) has been approved on or before December 31, 2025, by the Public 25
Service Commission under § 7–306.2 of the Public Utilities Article. 26
(3) Personal property is exempt from county or municipal corporation 27
property tax if the property is machinery or equipment that is part of a community solar 28
energy generating system that: 29
(i) [as defined in regulation of the Public Service Commission, is 30
part of a community solar generating system that: 31 HOUSE BILL 908 19
1.] has a generating capacity that does not exceed 2 1
megawatts as measured by the alternating current rating of the system’s inverter; [and 2
2.] (II) provides at least 50% of the energy it produces to 3
low– or moderate–income customers at a cost that is at least 20% less than the amount 4
charged by the electric company that serves the area where the community solar energy 5
generating system is located; and 6
[(ii)] (III) 1. is used for agrivoltaics; or 7
2. is installed on a rooftop, brownfield, parking facility 8
canopy, landfill, or clean fill. 9
(4) [Personal property that receives an exemption under this subsection is 10
exempt from county or municipal corporation property tax for each taxable year in which 11
the property continues to meet the requirements for the exemption under paragraph (3) of 12
this subsection. 13
(5) The supervisor of a county or municipal corporation may not accept an 14
application from a property owner for the exemption under this subsection after December 15
31, 2024. 16
(6)] On or before October 1 each year, the Department shall report to the 17
Senate Budget and Taxation Committee and the House Ways and Means Committee, in 18
accordance with § 2–1257 of the State Government Article, on the number and location of 19
projects that, in the immediately preceding taxable year, have received the exemption 20
under this subsection. 21
SECTION 2. AND BE IT FURTHER ENACTED, That a Position Identification 22
Number shall be created in the Public Service Commission for a full–time position that will 23
focus only on implementing and administering the Community Solar Energy Generating 24
Systems Program under § 7–306.2 of the Public Utilities Article, as enacted under Section 25
1 of this Act. 26
SECTION 3. AND BE IT FURTHER ENACTED, That, notwithstanding any other 27
law, all regulations adopted under § 7–306.2(e) of the Public Utilities Article for the 28
operation of the Community Solar Energy Generating Systems Pilot Program before the 29
effective date of this Act shall continue in effect until amended or repealed. 30
SECTION 4. AND BE IT FURTHER ENACTED, That the prevailing wage and 31
project labor agreement required under § 7–306.2(o) of the Public Utilities Article, as 32
enacted by Section 1 of this Act, shall be construed to apply only prospectively and may not 33
be applied or interpreted to have any effect on or application to any community solar energy 34
generating system, as defined in § 7–306.2(a)(4) of the Public Utilities Article, as enacted 35
by Section 1 of this Act, that received a queue position in the Pilot Program, as defined in 36 20 HOUSE BILL 908
§ 7–306.2(a)(11) of the Public Utilities Article, as enacted by Section 1 of this Act, before 1
January 1, 2025. 2
SECTION 4. 5. AND BE IT FURTHER ENACTED, That this Act shall take effect 3
October July 1, 2023. 4
Approved:
________________________________________________________________________________
Governor.
________________________________________________________________________________
Speaker of the House of Delegates.
________________________________________________________________________________
President of the Senate.