WES MOORE, Governor Ch. 652
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Chapter 652
(House Bill 908)
AN ACT concerning
Electricity – Community Solar Energy Generating Systems Program and
Property Taxes
FOR the purpose of making permanent the Community Solar Energy Generating Systems
Pilot Program; requiring a community solar energy generating system under the
Program to serve a certain percentage of its kilowatt–hour output to low–income and
moderate–income subscribers under certain circumstances; authorizing a
subscription coordinator to act on behalf of a subscriber organization; altering
requirements related to the siting and size of certain community solar energy
generating systems projects; authorizing the use of consolidated billing for certain
subscription charges; prohibiting a subscriber organization or subscription
coordinator from charging an LMI subscriber a certain subscription rate; requiring
an electric company to provide certain data to a subscriber organization or
subscription coordinator; authorizing an electric company to charge a certain fee for
the use of consolidated billing; requiring a person constructing or operating a
community solar energy generating system to address critical area, climate
resilience, and forest conservation concerns in a certain manner; requiring the Public
Service Commission to establish a stakeholder workgroup related to the
development of certain regulations; requiring the Commission to adopt certain
regulations making the pilot program permanent, allowing for the use of
consolidated billing, and implementing the provisions of this Act; requiring the
Commission to consider and implement certain methodologies to allow tenants of
master–metered residential facilities to participate in the Program; repealing
provisions related to maintenance of subscriptions if a subscriber has a change of
address; prohibiting certain subscription rates and charges from being set at more
than a certain amount; establishing certain prevailing wage or labor requirements
for developers of certain community solar energy generating system projects;
creating a full–time position within the Commission for a certain purpose; altering
the personal property tax exemption for certain community solar energy generating
systems; and generally relating to the Community Solar Energy Generating Systems
Program community solar energy generating systems.
BY repealing and reenacting, with amendments,
Article – Public Utilities
Section 7–306.2
Annotated Code of Maryland
(2020 Replacement Volume and 2022 Supplement)
BY repealing and reenacting, with amendments,
Article – Tax – Property
Section 7–237 Ch. 652 2023 LAWS OF MARYLAND
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Annotated Code of Maryland
(2019 Replacement Volume and 2022 Supplement)
(As enacted by Chapters 38, 415, 658, and 659 of 2022)
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND,
That the Laws of Maryland read as follows:
Article – Public Utilities
7–306.2.
(a) (1) In this section the following words have the meanings indicated.
(2) “AGRIVOLTAICS” MEANS THE SIMULTANEO US USE OF AREAS OF
LAND FOR BOTH SOLAR POWER GENERATION AND AGRICULTURE :
(I) RAISING GRAINS , FRUITS, HERBS, MELONS, MUSHROOMS ,
NUTS, SEEDS, TOBACCO, OR VEGETABLES ;
(II) RAISING POULTRY , INCLUDING CHICKENS A ND TURKEYS ,
FOR MEAT OR EGG PROD UCTION;
(III) DAIRY PRODUCTION , SUCH AS THE RAISING OF MILKING
COWS;
(IV) RAISING LIVESTOCK , INCLUDING CATTLE , SHEEP, GOATS,
OR PIGS;
(V) HORSE BOARDING, BREEDING, OR TRAINING;
(VI) TURF FARMING ;
(VII) RAISING ORNAMENTAL S HRUBS, PLANTS, OR FLOWERS ,
INCLUDING AQUATIC PL ANTS;
(VIII) AQUACULTURE ;
(IX) SILVICULTURE ; OR
(X) ANY OTHER ACTIVITY R ECOGNIZED BY THE DEPARTMENT
OF AGRICULTURE AS AN AGR ICULTURAL ACTIVITY .
(3) “Baseline annual usage” means:
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(i) a subscriber’s accumulated electricity use in kilowatt–hours for
the 12 months before the subscriber’s most recent subscription; or
(ii) for a subscriber that does not have a record of 12 months of
electricity use at the time of the subscriber’s most recent subscription, an estimate of the
subscriber’s accumulated 12 months of electricity use in kilowatt–hours, determined in a
manner the Commission approves.
[(3)] (4) “Community solar energy generating system” means a solar
energy system that:
(i) is connected to the electric distribution grid serving the State;
(ii) is located in the same electric service territory as its subscribers;
(iii) is attached to the electric meter of a subscriber or is a separate
facility with its own electric meter;
(iv) credits its generated electricity, or the value of its generated
electricity, to the bills of the subscribers to that system through virtual net energy
metering;
(v) has at least two subscribers but no limit to the maximum number
of subscribers;
(vi) does not have subscriptions larger than 200 kilowatts
constituting more than 60% of its [subscriptions] KILOWATT–HOUR OUTPUT ;
(vii) has a generating capacity that does not exceed 5 megawatts as
measured by the alternating current rating of the system’s inverter; [and]
(viii) may be owned by any person; AND
(IX) WITH RESPECT TO COMMUNITY SOLAR ENER GY
GENERATING SYSTEMS C ONSTRUCTED UNDER THE PROGRAM, SERVES AT LEAST
40% OF ITS KILOWATT –HOUR OUTPUT TO LMI SUBSCRIBERS UNLESS T HE SOLAR
ENERGY SYSTEM IS WHO LLY OWNED BY THE SUBSCRIBERS TO T HE SOLAR ENERGY
SYSTEM A NONPROFIT ORGANIZA TION THE SUBSCRIBERS TO T HE SOLAR ENERGY
SYSTEM.
(5) “CONSOLIDATED BILLING ” MEANS A PAYMENT MECH ANISM THAT
REQUIRES AN ELECTRIC COMPANY TO , AT THE REQUEST OF A SUBSCRIBER
ORGANIZATION OR SUBS CRIPTION COORDINATOR :
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(I) INCLUDE THE MONTHLY SUBSCRIPTION CHARGE OF A
SUBSCRIBER ORGANIZAT ION OR SUBSCRIPTION COORDINATOR ON THE MON THLY
BILLS RENDERED BY TH E ELECTRIC COMPANY F OR ELECTRIC SERVICE AND SUPPLY
TO SUBSCRIBERS ; AND
(II) REMIT PAYMENT RECEIVED FOR THOSE CHARGES TO THE
SUBSCRIBER ORGANIZAT ION OR SUBSCRIPTION COORDINATOR .
(6) “CRITICAL AREA” HAS THE MEANING STATED IN § 8–1802 OF THE
NATURAL RESOURCES ARTICLE.
(7) “LMI SUBSCRIBER” MEANS A SUBSCRIBER T HAT:
(I) IS LOW–INCOME;
(II) IS MODERATE–INCOME; OR
(III) RESIDES IN A CENSUS TRACT THAT IS AN:
1. OVERBURDENED COMMUNI TY; AND
2. UNDERSERVED COMMUNIT Y.
(8) “LOW–INCOME” MEANS:
(I) HAVING AN ANNUAL HOU SEHOLD INCOME THAT I S AT OR
BELOW 200% OF THE FEDERAL POVER TY LEVEL; OR
(II) BEING CERTIFIED AS E LIGIBLE FOR ANY FEDE RAL, STATE,
OR LOCAL ASSISTANCE PROGRAM THAT LIMITS PARTICIPATION TO HOU SEHOLDS
WHOSE INCOME IS AT O R BELOW 200% OF THE FEDERAL POVER TY LEVEL.
(9) “MODERATE–INCOME” MEANS HAVING AN ANNU AL HOUSEHOLD
INCOME THAT IS AT OR BELOW 80% OF THE MEDIAN INCOME FOR MARYLAND.
(10) “OVERBURDENED COMMUNIT Y” HAS THE MEANING STATED IN §
1–701 OF THE ENVIRONMENT ARTICLE.
(11) “PILOT PROGRAM ” MEANS THE PROGRAM ES TABLISHED UNDER
THIS SECTION BEFORE OCTOBER JULY 1, 2023, AND EFFECTIVE UNTIL THE START
OF THE PROGRAM ESTABLISHED U NDER SUBSECTION (D)(20) OF THIS SECTION.
[(4)] (12) “Program” means the Community Solar Energy Generating
Systems [Pilot] Program. WES MOORE, Governor Ch. 652
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(13) “QUEUE” MEANS:
(I) THE PILOT PROGRAM QU EUE AN ELECTRIC COMP ANY IS
REQUIRED TO MAINTAIN UNDER COMAR 20.62.03.04; AND
(II) A QUEUE AN ELECTRIC COMPANY MAY BE REQUI RED TO
MAINTAIN UNDER THE PROGRAM.
[(5)] (14) “Subscriber” means a retail customer of an electric company that:
(i) holds a subscription to a community solar energy generating
system; and
(ii) has identified one or more individual meters or accounts to which
the subscription shall be attributed.
[(6)] (15) “Subscriber organization” means:
(i) a person that owns or operates a community solar energy
generating system; or
(ii) the collective group of subscribers of a community solar energy
generating system.
[(7)] (16) “Subscription” means the portion of the electricity generated by
a community solar energy generating system that is credited to a subscriber.
(17) “SUBSCRIPTION COORDINA TOR” MEANS A PERSON THAT :
(I) MARKETS COMMUNITY SO LAR ENERGY GENERATIN G
SYSTEMS OR OTHERWISE PROVIDES SERVICES RE LATED TO COMMUNITY S OLAR
ENERGY GENERATING SY STEMS UNDER ITS OWN BRAND NAME ;
(II) PERFORMS ANY ADMINIS TRATIVE ACTION TO AL LOCATE
SUBSCRIPTIONS , CONNECT SUBSCRIBERS WITH COMMUNITY SOLAR ENERGY
GENERATING SYSTEMS , OR ENROLL CUSTOMERS IN THE PROGRAM; OR
(III) MANAGES INTERACTIONS BETWEEN A SUBSCRIBER
ORGANIZATION AND AN ELECTRIC COMPANY OR ELECTRICITY SUPPLIER RELATING
TO SUBSCRIBERS .
(18) “UNDERSERVED COMMUNITY ” HAS THE MEANING STAT ED IN §
1–701 OF THE ENVIRONMENT ARTICLE.
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[(8)] (19) “Unsubscribed energy” means any community solar energy
generating system output in kilowatt–hours that is not allocated to any subscriber.
[(9)] (20) “Virtual net energy metering” means measurement of the
difference between the kilowatt–hours or value of electricity that is supplied by an electric
company and the kilowatt–hours or value of electricity attributable to a subscription to a
community solar energy generating system and fed back to the electric grid over the
subscriber’s billing period, as calculated under the tariffs established under [subsection]
SUBSECTIONS (e)(2), (F)(2), AND (G)(2) of this section.
(b) The General Assembly finds that:
(1) community solar energy generating systems:
(i) provide residents and businesses, including those that lease
property, increased access to local solar electricity while encouraging private investment in
solar resources;
(ii) enhance continued diversification of the State’s energy resource
mix to achieve the State’s renewable energy portfolio standard and Greenhouse Gas
Emissions Reduction Act goals; and
(iii) provide electric companies and ratepayers the opportunity to
realize the many benefits associated with distributed energy; and
(2) it is in the public interest that the State enable the development and
deployment of energy generation from community solar energy generating systems in order
to:
(i) allow renters and low–income and moderate–income retail
electric customers to own an interest in a community solar energy generating system;
(ii) facilitate market entry for all potential subscribers while giving
priority to subscribers who are the most sensitive to market barriers; and
(iii) encourage developers to promote participation by renters and
low–income and moderate–income retail electric customers.
(c) A community solar energy generating system, [including a] subscriber [or],
subscriber organization [associated with the community solar energy generating system],
OR SUBSCRIPTION COOR DINATOR is not:
(1) an electric company;
(2) an electricity supplier; or WES MOORE, Governor Ch. 652
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(3) a generating station if the generating capacity of the community solar
energy generating system does not exceed 2 megawatts.
(d) (1) (i) The Commission shall establish [a pilot program for] AND
MAINTAIN a Community Solar Energy Generating [System] SYSTEMS Program.
(ii) The structure of the [pilot program] PROGRAM is as provided in
this subsection.
(2) All rate classes may participate in the [pilot program] PROGRAM.
(3) Subscribers served by electric standard offer service, community choice
aggregators, and electricity suppliers may hold subscriptions to the same community solar
energy generating system.
(4) A subscriber organization OR SUBSCRIPTION COOR DINATOR
ACTING ON BEHALF OF A SUBSCRIBER ORGANIZ ATION shall:
(i) determine how to allocate subscriptions to subscribers; and
(ii) notify an electric company and, if applicable, a relevant
electricity supplier about THE ALLOCATION OF SU BSCRIPTIONS IN ACCOR DANCE WITH
the regulations the Commission adopts under subsection (e) of this section.
(5) An electric company shall use the tariff structure under [subsection]
SUBSECTIONS (e)(2), (F)(2), AND (G)(2) of this section to provide each subscriber with the
credits.
(6) A subscriber may not receive credit for virtual net excess generation
that exceeds 200% of the subscriber’s baseline annual usage.
(7) Any unsubscribed energy generated by a community solar energy
generating system that is not owned by an electric company shall be purchased under the
electric company’s process for purchasing the output from qualifying facilities at the
amount it would have cost the electric company to procure the energy.
(8) An electric company shall use energy generated from a community solar
energy generating system to offset purchases from wholesale electricity suppliers for
standard offer service.
(9) All costs associated with small generator interconnection standards
under COMAR 20.50.09 are the responsibility of the subscriber organization.
(10) A subscriber organization may petition an electric company to
coordinate the interconnection and commencement of operations of a community solar Ch. 652 2023 LAWS OF MARYLAND
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energy generating system after the Commission adopts regulations required under
subsection (e) of this section.
(11) A subscriber organization may contract with a third party for the third
party to finance, build, own, or operate a community solar energy generating system.
(12) A municipal utility or cooperative utility may participate in the [pilot
program] PROGRAM.
(13) (I) [Equipment for] EXCEPT AS PROVIDED IN SUBPARAGRAPH
(II) OF THIS PARAGRAPH , a community solar energy generating system may not be [built]
LOCATED on [contiguous parcels of land unless the equipment is installed only on building
rooftops] THE SAME OR AN ADJAC ENT PARCEL OF LAND A S AN EXISTING OR
PROPOSED COMMUNITY S OLAR ENERGY GENERATI NG SYSTEM IF THE TOT AL
INSTALLED CAPACITY O F ALL COMMUNITY SOLAR ENER GY GENERATING SYSTEMS
ON THE SAME OR ADJAC ENT PARCEL WOULD EXC EED 5 MEGAWATTS .
(II) THE PROHIBITION UNDER SUBPARAGRAPH (I) OF THIS
PARAGRAPH DOES NOT A PPLY TO PROJECTS CON STRUCTED:
1. ON THE ROOFTOPS OF B UILDINGS;
2. IN AREAS THAT ARE ZONED FOR INDUSTRIAL USE ;
3. ON BROWNFIELDS LOCAT IONS AND CLEAN FILL SITES;
4. OVER PARKING LOTS OR ROADWAYS;
5. ON MULTILEVEL PARKIN G STRUCTURES ;
6. ON OR OVER TRANSPORT ATION OR PUBLIC
RIGHTS–OF–WAY;
7. AT AIRPORTS;
8. ON LAND THAT:
A. WAS PREVIOUSLY ZONED FOR INDUSTRIAL USE O R IS
ECOLOGICALLY COMPROM ISED; AND
B. IS NOT TARGETED FOR MITIGATION OR
RESTORATION ; OR
9. IN ANY LOCATION IF : WES MOORE, Governor Ch. 652
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A. THE COMBINED CAPACIT Y OF ALL COMMUNITY SOLAR
ENERGY GENERATING SYSTEMS O N THE SAME OR ADJACE NT PARCEL DOES NOT
EXCEED 10 MEGAWATTS ; AND:
B. A. AT LEAST 75% OF THE AGGREGATE CAP ACITY OF THE
CO–LOCATED COMMUNITY SO LAR ENERGY GENERATIN G SYSTEMS SERVES LMI
SUBSCRIBERS OR;
B. FOR A SITE WITHOUT A COMMUNITY SOLAR EN ERGY
GENERATING SYSTEM IN STALLED BEFORE THE S TART OF THE PROGRAM UNDER
PARAGRAPH (20) OF THIS SUBSECTION , ALL OF THE COMMUNITY SOLAR ENERGY
GENERATING SYSTEMS I NSTALLED AFTER THE S TART OF THE PROGRAM ARE USED
FOR AGRIVOLTAICS ; OR
C. FOR A SITE WITH A CO MMUNITY SOLAR ENERGY
GENERATING SYSTEM IN STALLED BEFORE THE S TART OF THE PROGRAM UNDER
PARAGRAPH (20) OF THIS SUBSECTION , EACH NEW COMMUNITY S OLAR ENERGY
GENERATING SYSTEM IN STALLED AFTER THE ST ART OF THE PROGRAM IS USED FOR
AGRIVOLTAICS.
(14) A SUBSCRIBER ORGANIZAT ION OR SUBSCRIPTION COORDINATOR
MAY ELECT FOR A SUBS CRIBER OR A COMMUNITY SOLAR ENERGY GENERATING
SYSTEM REPRESENTED B Y THE SUBSCRIBER ORG ANIZATION OR SUBSCRI PTION
COORDINATOR TO PARTICIPATE IN CO NSOLIDATED BILLING .
(15) AN ELECTRIC COMPANY S HALL PROVIDE ACCESS TO CUSTOMER
BILLING AND USAGE DA TA TO A SUBSCRIBER O RGANIZATION OR SUBSC RIPTION
COORDINATOR IF THE C USTOMER PROVIDES TO THE ELECTRIC COMPANY
AFFIRMATIVE CONSENT THAT IS ACCOMPANIED BY A WRITTEN OR ELEC TRONIC
SIGNATURE.
(16) (I) AN ELECTRIC COMPANY M AY REQUIRE A REASONABLE FEE
FOR SUBSCRIBER ORGAN IZATIONS OR SUBSCRIP TION COORDINATORS TH AT USE
CONSOLIDATED BILLING . IF THE FEE DOES
(II) THE FEE UNDER SUBPARA GRAPH (I) OF THIS PARAGRAPH
MAY NOT EXCEED 1% OF THE BILL CREDIT VALUE TO THE SUBSCRIBER UNLESS THE
COMMISSION DETERMINES A HIGHER FEE IS JUST AND REASONABLE BASED ON
SUBSTANTIAL EVIDENCE PRESENTED BY THE ELE CTRIC COMPANY .
(III) AN ELECTRIC COMPANY M AY ADJUST THE FEE UN DER
SUBPARAGRA PH (I) OF THIS PARAGRAPH NO T MORE THAN ONCE PER YEAR.
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(IV) THE FEE FOR CONSOLIDA TED BILLING ASSESSED TO A
SUBSCRIBER ORGANIZAT ION OR SUBSCRIPTION COORDINATOR MAY NOT EXCEED
THE FEE THAT WAS IN EFFECT WHEN THE SUBS CRIBER ORGANIZATION OR
SUBSCRIPTION COO RDINATOR ELECTED FOR THE COMMUNITY SOLAR ENERGY
GENERATING SYSTEM RE PRESENTED BY THE SUB SCRIBER ORGANIZATION OR
SUBSCRIPTION COORDIN ATOR TO PARTICIPATE IN CONSOLIDATED BILL ING.
(17) A SUBSCRIBER ORGANIZAT ION OR SUBSCRIPTION COORDINATOR
MAY NOT PROHIBIT A SUBSCRIBER FROM EN ROLLING WITH AN ELEC TRICITY
SUPPLIER FOR ELECTRI C SERVICE OR SUPPLY .
(18) A COMMUNITY SOLAR ENER GY GENERATING SYSTEM ON AN
ELECTRIC COMPANY QUE UE UNDER THE PILOT P ROGRAM ON SEPTEMBER 30, 2023,
SHALL RETAIN THE QUE UE POSITION UNDER THE PROGRAM.
(19) IN CONSTRUCTING OR OP ERATING A COMMUNITY SOLAR ENERGY
GENERATING SYSTEM , A PERSON SHALL ADDRE SS CRITICAL AREA , CLIMATE
RESILIENCE, AND FOREST CONSERVAT ION CONCERNS BY COMP LYING WITH THE
FOREST CONSERVATION ACT AND OTHER RELEVAN T STATE AND LOCAL
ENVIRONMENT AL LAWS AND REGULATI ONS PERTAINING TO TH E CRITICAL AREA ,
CLIMATE RESILIENCE , AND FOREST CONSERVAT ION.
[(14)] (20) The [pilot program] PROGRAM shall[:
(i)] begin on the earlier of:
[1.] (I) the date of submission of the first petition of a
subscriber organization under paragraph (10) of this subsection after the Commission
adopts the regulations required under subsection [(e)] (F) of this section; or
[2.] (II) 6 months after the Commission adopts those
regulations[; and
(ii) end 7 years after the beginning date, but not sooner than
December 31, 2024.
(15) The Commission shall limit the pilot program in such a way that the
Commission may conduct a meaningful study of the pilot program and its results, including:
(i) the appropriate number of community solar energy generating
systems to be included in the pilot program;
(ii) the appropriate amount of generating capacity of the community
solar energy generating systems to be included in the pilot program and the annual capacity WES MOORE, Governor Ch. 652
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limits for each program category, each of which should increase throughout the duration of
the pilot program; and
(iii) a variety of appropriate geographical areas in the State for
locating community solar energy generating systems to be included in the pilot program].
(e) On or before May 15, 2016, the Commission shall adopt regulations to
implement this section, including regulations for:
(1) consumer protection;
(2) a tariff structure for an electric company to provide a subscriber with
the kilowatt–hours or value of the subscriber’s subscription, as the Commission determines;
(3) a calculation for virtual net energy metering as the Commission
determines;
(4) a protocol for electric companies, electricity suppliers, and subscriber
organizations to communicate the information necessary to calculate and provide the
monthly electric bill credits and yearly net excess generation payments required by this
section; and
(5) a protocol for a subscriber organization to coordinate with an electric
company for the interconnection and commencement of operations of a community solar
energy generating system.
(F) (1) SUBJECT TO SUBSECTION (H) OF THIS SECTION , TO IMPLEMENT
THE PROGRAM, THE COMMISSION SHALL , ON OR BEFORE OCTOBER 1, 2024
JANUARY 1, 2025, ADOPT REVISIONS TO T HE REGULATIONS ADOPT ED UNDER
SUBSECTION (E) OF THIS SECTION FOR THE PILOT PROGRAM , INCLUDING REVISIONS
THAT:
(I) REMOVE ALL PROGRAM CATEGORIES , PROJECT
GENERATING CAPACITY LIMITS, YEARLY PROGRAMMATIC AND ELECTRIC
COMPANY–SPECIFIC CAPACITY LI MITS, AND SUNSET DATES SO THAT THE TOTAL
NUMBER AND CAPACITY OF COMMUNITY SOLAR E NERGY GENERATING SYS TEMS IS
SUBJECT ONLY TO THE OVERALL LIMITATION F OR ALL NET METERING PROJECTS
ESTABLISHED UNDER § 7–306(D) OF THIS SUBTITLE;
(II) AUTHORIZE ALL COMMUNIT Y SOLAR ENERGY GENER ATING
SYSTEMS, INCLUDING THOSE CONS TRUCTED DURING THE P ILOT PROGRAM , TO
OPERATE AND GENERATE SUBSCRIPTION CREDITS UNTIL THE COMMUNITY SOLAR
ENERGY GENERATING SY STEM IS DECOMMISSION ED;
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(III) ADJUST CO–LOCATION RESTRICTION S TO COMPLY WITH
SUBSECTION (D)(13) OF THIS SECTION;
(IV) ALLOW A CUSTOMER SUBSCRIBER ORGANIZAT ION OR
SUBSCRIPTION COORDIN ATOR TO VERIFY, WHEN SUBSCRIBING TO A COMMUNITY
SOLAR ENERGY GENERAT ING SYSTEM, THE INCOME OF A PROSPECTIVE SUBSCRIBER
FOR ELIGIBILITY AS A N LMI SUBSCRIBER UNDER THE PROGRAM BY USING ONE OF
THE FOLLOWING METHOD S:
1. SELF–ATTESTATION BY THE PROSPECTIVE
SUBSCRIBER THAT DOES NOT NEED T O BE UNDER OATH OR P ENALTY OF PERJURY ;
2. PROVIDING REQUIRING THE PROSPECTIVE
SUBSCRIBER TO PROVID E EVIDENCE OF ELIGIBIL ITY FOR OR ENROLLMEN T IN AT
LEAST ONE OF THE FOL LOWING GOVERNMENT AS SISTANCE PROGRAMS :
A. THE MARYLAND ENERGY ASSISTANCE PROGRAM;
B. THE SUPPLEMENTAL NUTRITION ASSISTANCE
PROGRAM;
C. MEDICAID;
D. HEAD START;
E. FREE AND REDUCED PRI CE SCHOOL MEALS ;
F. THE FEDERAL LOW INCOME HOME ENERGY
ASSISTANCE PROGRAM;
G. EMPOWER MARYLAND LOW – OR
MODERATE–INCOME INCENTIVES ;
H. TELEPHONE LIFELINE S ERVICE;
I. THE FUEL FUND OF MARYLAND; OR
J. ANY ADDITIONAL FEDER AL, STATE, OR LOCAL
ASSISTANCE PROGRAM T HAT THE COMMISSION DETERMINES WILL FURTHER THE
PURPOSES OF THE PROGRAM;
3. PAY STUBS;
4. INCOME TAX DOCUMENTS ; WES MOORE, Governor Ch. 652
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5. PROOF OF RESIDENCE I N AN AFFORDABLE H OUSING
FACILITY;
6. PROOF OF RESIDENCE W ITHIN A CENSUS TRACT THAT
IS:
A. AN OVERBURDENED COMM UNITY; AND
B. AN UNDERSERVED COMMU NITY;
7. ANY VERIFICATION MET HOD THAT WAS AVAILAB LE
UNDER THE PILOT PROG RAM; OR
8. ANY ADDITIONAL METHO DS APPROVED BY THE
COMMISSION TO VERIFY INCOME;
(V) REQUIRE ALL ELECTRIC COMPANIES TO USE :
1. BILL CREDITS APPLIED AS A REDUCTION IN ME TERED
KILOWATT–HOURS; OR
2. MONETARY BILL CREDITS THAT PROVIDE NOT LESS
THAN THE VALUE TO THE SUBSCRIBER OF THE CREDIT HAD IT BE EN APPLIED TO THE
SUBSCRIBER’S BILL AS A REDUCTIO N IN METERED KILOWAT T–HOURS; AND
(VI) ESTABLISH PROCEDURES FOR THE COMMISSION TO :
1. COLLECT DATA FROM SU BSCRIBER ORGANIZATIO NS,
WHEN APPLYING TO THE COMMISSION FOR ADMISSION T O THE PROGRAM, ON:
A. THE TYPE AND QUANTIT Y OF FOREST COVER ON THE
SITE OF A PROPOSED C OMMUNITY SOLAR ENERG Y GENERATING SYSTEM ; AND
B. ANY ANTICIPATED IMPA CTS THAT THE
CONSTRUCTION OF THE PROPOSED COMMUNITY S OLAR ENERGY GENE RATING
SYSTEM WILL HAVE ON TREES AND FOREST COV ER AT THE SITE OF TH E PROPOSED
COMMUNITY SOLAR ENER GY GENERATING SYSTEM ; AND
2. MAKE THE DATA COLLEC TED UNDER ITEM 1 OF THIS
ITEM AVAILABLE TO TH E PUBLIC IN A FORMAT AGGREGATED BY COUNTY .
Ch. 652 2023 LAWS OF MARYLAND
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(2) ON OR BEFORE OCTOBER 1, 2024 JULY 1, 2025, THE COMMISSION
SHALL APPROVE ELECTR IC COMPANY TARIFF MO DIFICATIONS THAT ARE
CONSISTENT WITH THE REGULATIONS ADOPTED UNDER THIS SUBSECTIO N.
(G) (1) SUBJECT TO SUBSECTION (H) OF THIS SECTION , ON OR BEFORE
APRIL JULY 1, 2025, THE COMMISSION SHALL ADOP T REGULATIONS THAT :
(I) IMPLEMENT CONSOLIDAT ED BILLING BY ELECTR IC
COMPANIES THAT MUST BE IN EFFE CT BY JANUARY 1, 2026, INCLUDING PROTOCOLS
FOR PURCHASE OF RECEIVAB LES PROTOCOLS OR NET CREDITING ;
(II) REQUIRE ALL ELECTRIC COMPANI ES TO REPORT BILLING
AND CREDITING ERRORS TO THE COMMISSION ON A REGUL AR SCHEDULE ;
(III) IMPOSE SPECIFIC TIMI NG REQUIREMENTS FOR
APPLICATION OF BILL CREDITS TO SUBSCRIBE R BILLS AND APPLICAT ION OF
ROLLOVER CREDITS ;
(IV) IMPLEMENT DATA EXCHANGE PROTOC OLS FOR ELECTRIC
COMPANIES, SUBSCRIBER ORGANIZAT IONS, AND SUBSCRIPTION COO RDINATORS,
INCLUDING REQUIRED D ATA FIELDS FOR ELECT RIC COMPANY ALLOCATI ON
REPORTS;
(V) FOR SUBSCRIBERS ENRO LLED IN BUDGET BILLI NG,
REQUIRE ELECTRIC COM PANIES TO APPLY COMMUNITY S OLAR CREDITS TO THE
MONTHLY AMOUNT DUE R ATHER THAN THE UNDER LYING BALANCE ;
(VI) REQUIRE ALL ELECTRIC COMPANIES TO SHOW AP PLIED AND
BANKED CREDITS ON EA CH BILL RENDERED TO A SUBSCRIBER; AND
(VII) IMPLEMENT ANY ADDITI ONAL CHANGES THE COMMISSION
DETERMINES WILL IMPR OVE BILLING AND CRED ITING PROCESSES FOR
SUBSCRIBERS , SUBSCRIBER ORGANIZAT IONS, AND SUBSCRIPTION COO RDINATORS.
(2) ON OR BEFORE APRIL 1, 2025 JANUARY 1, 2026, THE
COMMISSION SHALL APPR OVE ELECTRIC COMPANY TARIFF MODIFI CATIONS THAT
ARE CONSISTENT WITH THE REGULATIONS ADOP TED UNDER THIS SUBSE CTION.
(H) THE COMMISSION SHALL CONV ENE A STAKEHOLDER WO RKGROUP TO
PROVIDE RECOMMENDATI ONS REGARDING THE RE GULATIONS TO BE ADOP TED BY
THE COMMISSION UNDER SUBS ECTIONS (F) AND (G) OF THIS SECTION.
WES MOORE, Governor Ch. 652
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(I) THE COMMISSION SHALL CONS IDER AND IMPLEMENT M ETHODOLOGIES
TO ALLOW THE TENANTS OF MASTER –METERED RESIDENTIAL FACILITIES TO
PARTICIPATE IN THE PROGRAM AND BENEFIT D IRECTLY FROM ANY ASS OCIATED
ELECTRIC BILL SAVING S.
[(f)] (J) (1) Subject to regulations or orders of the Commission, a contract
relating to a community solar energy generating system [or], subscriber organization, OR
SUBSCRIPTION COORDIN ATOR that is entered into during the pilot program OR THE
PROGRAM shall remain in effect according to the terms of the contract, including after the
termination of the pilot program OR THE PROGRAM.
(2) [(i) This paragraph applies to electric companies, electric
cooperatives, and municipal utilities that participate in the Program.
(ii) A subscriber who has a change in the service address associated
with the subscriber’s subscription may maintain the subscription for the new address if the
new address is within the same electric territory as the old address.
(iii) An electric company or a subscriber organization may not
terminate a subscriber’s subscription due to a change of address for the service address
associated with the subscription if the requirements under subparagraph (ii) of this
paragraph are met.
(iv) An electric company shall make any changes necessary to
accommodate a subscriber’s change of address on notification by a subscriber organization.
(g) (3) After termination of the pilot program,] ON AND AFTER OCTOBER 1,
2023, in accordance with the operational and billing requirements in subsection (d) of this
section:
[(1)] (I) a subscriber organization may continue the operation of a
community solar energy generating system that began operation during the pilot program,
including the creation and trading of subscriptions; and
[(2)] (II) in accordance with the tariffs established under [subsection]
SUBSECTIONS (e)(2), (F)(2), AND (G)(2) of this section, an electric company shall continue
to facilitate the operation of a community solar energy generating system that began
operation during the pilot program.
[(h)] (K) The cumulative installed nameplate capacity under the pilot program
AND THE PROGRAM shall count toward the overall limitation for all net metering projects
established under § 7–306(d) of this subtitle.
(L) (1) (I) A SUBSCRIBER ORGANIZAT ION OR SUBSCRIPTION
COORDINATOR MAY NOT REQUIRE AN LMI SUBSCRIBER TO UNDERG O A CREDIT Ch. 652 2023 LAWS OF MARYLAND
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CHECK OR PAY A SIGN –UP FEE TO SUBSCRIBE TO A COMMUNITY SOLAR ENERGY
GENERATING SYSTEM .
(II) A SUBSCRIBER ORGANIZATION OR SUBS CRIPTION
COORDINATOR SHALL :
1. VERIFY THE ELIGIBILI TY OF AN LMI SUBSCRIBER IN
ACCORDANCE WITH SUBS ECTION (F)(1)(IV) OF THIS SECTION; AND
2. RETAIN RECORDS OF EA CH DETERMINATION OF
ELIGIBILITY FOR AN LMI SUBSCRIBER TO BE MAD E AVAILABLE TO THE
COMMISSION ON REQUEST .
(2) A SUBSCRIBER WHO A SUB SCRIBER ORGANIZATION DETERMINED
WAS ELIGIBLE TO PART ICIPATE AS A LOW –INCOME OR MODERATE –INCOME
SUBSCRIBER UNDER THE PILOT PROGRAM SHALL REMAIN ELIGIBLE AS A N LMI
SUBSCRIBER UNDER THE PROGRAM.
(3) (I) A COMMUNITY SOLAR ENER GY GENERATING SYSTEM
CONSTRUCTED UNDER TH E PILOT PROGRAM IN A CATEGORY REQUIRING T HAT AT
LEAST 30% OF ITS KILOWATT –HOUR OUTPUT SERVE LO W–INCOME OR
MODERATE–INCOME SUBSCRIBERS S HALL CONTINUE TO SER VE AT LEAST 30% OF
ITS KILOWATT –HOUR OUTPUT TO LOW –INCOME OR MODERATE –INCOME
SUBSCRIBERS .
(II) A COMMUNITY SOLAR ENER GY GENERATING SYSTEM
CONSTRUCTED UNDER TH E PILOT PROGRAM IN A CATEGORY REQUIRING T HAT AT
LEAST 51% OF ITS KILOWATT –HOUR OUTPUT SERVE LO W–INCOME OR
MODERATE–INCOME SUBSCRIBERS S HALL CONTINUE TO SER VE AT LEAST 51% OF
ITS KILOWATT –HOUR OUTPUT TO LOW –INCOME OR MODERATE –INCOME
SUBSCRIBERS .
(M) (1) A SUBSCRIBER ORGANIZAT ION OR SUBSCRIPTION COORDINATOR
MAY NOT CHARGE :
(I) A RESIDENTIAL SUBSCR IBER WHO IS NOT PARTICIPATING IN
CONSOLIDATED BILLING A SUBSCRIPTION RATE THAT IS MORE THAN TH E
MONETARY VALUE OF TH E BILL CREDIT ON A B ILL ISSUED BY THE EL ECTRIC
COMPANY TO THE SUBSC RIBER FOR ELECTRIC S ERVICE; OR
(II) AN LMI SUBSCRIBER A SUBSCRI PTION RATE THAT IS M ORE
THAN 90% OF THE MONETARY VALU E OF THE BILL CREDIT ON A BILL ISSUED BY THE
ELECTRIC COMPANY TO THE SUBSCRIBER FOR E LECTRIC SERVICE . WES MOORE, Governor Ch. 652
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(N) (2) A SUBSCRIBER ORGANIZAT ION OR SUBSCRIPTION COORDINATOR
THAT ELECTS FOR A SU BSCRIBER TO PARTICIP ATE IN CONSOLIDATED BILLING MAY
NOT SET A SUBSCRIPTI ON CHARGE THAT IS MO RE THAN THE MONETARY VALUE OF
THE BILL CREDIT ON A BILL ISSUED BY THE E LECTRIC COMPANY TO T HE
SUBSCRIBER.
(O) (N) THE DEVELOPER OF A CO MMUNITY SOLAR ENERGY GENERATING
SYSTEM WITH A GENERATING CAPACITY OVER 1 MEGAWATT , AS MEASURED IN
ALTERNATING CURRENT , SHALL ENSURE THAT WO RKERS ARE PAID NOT L ESS THAN
THE PREVAILING WAGE RATE DETERMINED UNDE R TITLE 17, SUBTITLE 2 OF THE
STATE FINANCE AND PROCUREMENT ARTICLE, UNLESS THE COMMUNITY SOLAR
ENERGY GENERATING SY STEM IS SUBJECT TO A PROJECT LABOR AGREEM ENT THAT:
(1) BINDS ALL CONTRACTOR S AND SUBCONTRACTORS ON THE
COMMUNITY SOLAR ENER GY GENERATING SYSTEM THROUGH THE INCLUSIO N OF
SPECIFICATIONS IN AL L RELEVANT SOLICITAT ION PROVISIONS AND C ONTRACT
DOCUMENTS ;
(2) ALLOWS ALL CONTRACTO RS AND SUBCONTRACTOR S TO COMPETE
FOR CONTRACTS AND SU BCONTRACTS ON THE PR OJECT WITHOUT REGARD TO
WHETHER THEY ARE OTH ERWISE PARTIES TO CO LLECTIVE BARGAINING
AGREEMENTS ;
(3) ESTABLISHES UNIFORM TERMS AND CONDIT IONS OF
EMPLOYMENT FOR ALL C ONSTRUCTION LABOR EM PLOYED ON THE PROJEC TS;
(4) GUARANTEES AGAINST S TRIKES, LOCKOUTS, AND SIMILAR JOB
DISRUPTIONS;
(5) ESTABLISHES MUTUALLY BINDING PROCEDURES F OR RESOLVING
LABOR DISPUTES ; AND
(6) INCLUDES ANY OTHER P ROVISIONS NEGOTIATED B Y THE PARTIES
TO PROMOTE SUCCESSFU L DELIVERY OF THE CO MMUNITY SOLAR ENERGY
GENERATING SYSTEM .
Article – Tax – Property
7–237.
(a) Except as provided in subsection (b) of this section, personal property is
exempt from property tax if the property is machinery or equipment used to generate:
Ch. 652 2023 LAWS OF MARYLAND
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(1) electricity or steam for sale; or
(2) hot or chilled water for sale that is used to heat or cool a building.
(b) Subject to § 7–514 of this title, and except as provided in subsection (c) of this
section, personal property that is machinery or equipment described in subsection (a) of
this section is subject to county or municipal corporation property tax on:
(1) 75% of its value for the taxable year beginning July 1, 2000; and
(2) 50% of its value for the taxable year beginning July 1, 2001 and each
subsequent taxable year.
(c) (1) (i) In this subsection the following words have the meanings
indicated.
(ii) “Agrivoltaics” means the simultaneous use of areas of land for
both solar power generation and agriculture.
(iii) “Brownfield” means:
1. a former industrial or commercial site identified by federal
or State laws or regulations as contaminated or polluted; or
2. a closed municipal or rubble landfill regulated under a
refuse disposal permit by the Department of the Environment.
(iv) “Community solar energy generating system” has the meaning
stated in § 7–306.2 of the Public Utilities Article.
(v) “Electric company” has the meaning stated in § 1–101 of the
Public Utilities Article.
(2) This subsection applies through the life cycle of a community solar
energy generating system that:
(i) is placed in service after June 30, 2022; and
(ii) has been approved on or before December 31, 2025, by the Public
Service Commission under § 7–306.2 of the Public Utilities Article.
(3) Personal property is exempt from county or municipal corporation
property tax if the property is machinery or equipment that is part of a community solar
energy generating system that:
WES MOORE, Governor Ch. 652
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(i) [as defined in regulation of the Public Service Commission, is
part of a community solar generating system that:
1.] has a generating capacity that does not exceed 2
megawatts as measured by the alternating current rating of the system’s inverter; [and
2.] (II) provides at least 50% of the energy it produces to
low– or moderate–income customers at a cost that is at least 20% less than the amount
charged by the electric company that serves the area where the community solar energy
generating system is located; and
[(ii)] (III) 1. is used for agrivoltaics; or
2. is installed on a rooftop, brownfield, parking facility
canopy, landfill, or clean fill.
(4) [Personal property that receives an exemption under this subsection is
exempt from county or municipal corporation property tax for each taxable year in which
the property continues to meet the requirements for the exemption under paragraph (3) of
this subsection.
(5) The supervisor of a county or municipal corporation may not accept an
application from a property owner for the exemption under this subsection after December
31, 2024.
(6)] On or before October 1 each year, the Department shall report to the
Senate Budget and Taxation Committee and the House Ways and Means Committee, in
accordance with § 2–1257 of the State Government Article, on the number and location of
projects that, in the immediately preceding taxable year, have received the exemption
under this subsection.
SECTION 2. AND BE IT FURTHER ENACTED, That a Position Identification
Number shall be created in the Public Service Commission for a full–time position that will
focus only on implementing and administering the Community Solar Energy Generating
Systems Program under § 7–306.2 of the Public Utilities Article, as enacted under Section
1 of this Act.
SECTION 3. AND BE IT FURTHER ENACTED, That, notwithstanding any other
law, all regulations adopted under § 7–306.2(e) of the Public Utilities Article for the
operation of the Community Solar Energy Generating Systems Pilot Program before the
effective date of this Act shall continue in effect until amended or repealed.
SECTION 4. AND BE IT FURTHER ENACTED, That the prevailing wage and
project labor agreement required under § 7–306.2(o) § 7–306.2(n) of the Public Utilities
Article, as enacted by Section 1 of this Act, shall be construed to apply only prospectively
and may not be applied or interpreted to have any effect on or application to any community Ch. 652 2023 LAWS OF MARYLAND
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solar energy generating system, as defined in § 7–306.2(a)(4) of the Public Utilities Article,
as enacted by Section 1 of this Act, that received a queue position in the Pilot Program, as
defined in § 7–306.2(a)(11) of the Public Utilities Article, as enacted by Section 1 of this Act,
before January 1, 2025.
SECTION 4. 5. AND BE IT FURTHER ENACTED, That this Act shall take effect
October July 1, 2023.
Approved by the Governor, May 16, 2023.