Maryland 2023 Regular Session

Maryland Senate Bill SB357 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1
2	2
3	3	EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
4	4	[Brackets] indicate matter deleted from existing law.
5	5	sb0357
6	6
7	7	SENATE BILL 357
8	8	C5, M5 3lr1651
9	9	CF 3lr1652
10	10	By: Senator Klausmeier
11	11	Introduced and read first time: January 30, 2023
12	12	Assigned to: Education, Energy, and the Environment
13	13
14	14	A BILL ENTITLED
15	15
16	16	AN ACT concerning 1
17	17
18	18	Renewable Energy Portfolio Standard – Solar Energy – Compliance Fees 2
19	19
20	20	FOR the purpose of altering the compliance fee for a shortfall from the required percentage 3
21	21	of energy from Tier 1 renewable sources to be derived from solar energy for the 4
22	22	renewable energy portfolio standard in certain years; and generally relating to the 5
23	23	renewable energy portfolio standard and compliance fees. 6
24	24
25	25	BY repealing and reenacting, without amendments, 7
26	26	Article – Public Utilities 8
27	27	Section 7–703(b)(25) 9
28	28	Annotated Code of Maryland 10
29	29	(2020 Replacement Volume and 2022 Supplement) 11
30	30
31	31	BY repealing and reenacting, with amendments, 12
32	32	Article – Public Utilities 13
33	33	Section 7–705(b) 14
34	34	Annotated Code of Maryland 15
35	35	(2020 Replacement Volume and 2022 Supplement) 16
36	36
37	37	SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 17
38	38	That the Laws of Maryland read as follows: 18
39	39
40	40	Article – Public Utilities 19
41	41
42	42	7–703. 20
43	43
44	44	(b) Except as provided in subsections (e) and (f) of this section, the renewable 21
45	45	energy portfolio standard shall be as follows: 22
46	46
47	47	(25) in 2030 and later: 23
48	48	2 SENATE BILL 357
49	49
50	50
51	51	(i) 50% from Tier 1 renewable sources, including: 1
52	52
53	53	1. at least 14.5% derived from solar energy; 2
54	54
55	55	2. an amount set by the Commission under § 7–704.2(a) of 3
56	56	this subtitle derived from offshore wind energy, including at least 1,200 megawatts of 4
57	57	Round 2 offshore wind projects; and 5
58	58
59	59	3. at least 1% derived from post–2022 geothermal systems; 6
60	60	and 7
61	61
62	62	(ii) 2.5% from Tier 2 renewable sources. 8
63	63
64	64	7–705. 9
65	65
66	66	(b) (1) This subsection does not apply to a shortfall from the required Tier 1 10
67	67	renewable sources that is to be derived from post–2022 geothermal systems. 11
68	68
69	69	(2) If an electricity supplier fails to comply with the renewable energy 12
70	70	portfolio standard for the applicable year, the electricity supplier shall pay into the 13
71	71	Maryland Strategic Energy Investment Fund established under § 9–20B–05 of the State 14
72	72	Government Article: 15
73	73
74	74	(i) except as provided in item (ii) of this paragraph, a compliance fee 16
75	75	of: 17
76	76
77	77	1. the following amounts for each kilowatt–hour of shortfall 18
78	78	from required Tier 1 renewable sources other than the shortfall from the required Tier 1 19
79	79	renewable sources that is to be derived from solar energy: 20
80	80
81	81	A. 4 cents through 2016; 21
82	82
83	83	B. 3.75 cents in 2017 and 2018; 22
84	84
85	85	C. 3 cents in 2019 through 2023; 23
86	86
87	87	D. 2.75 cents in 2024; 24
88	88
89	89	E. 2.5 cents in 2025; 25
90	90
91	91	F. 2.475 cents in 2026; 26
92	92
93	93	G. 2.45 cents in 2027; 27
94	94
95	95	H. 2.25 cents in 2028 and 2029; and 28
96	96
97	97	I. 2.235 cents in 2030 and later; 29 SENATE BILL 357 3
98	98
99	99
100	100
101	101	2. the following amounts for each kilowatt–hour of shortfall 1
102	102	from required Tier 1 renewable sources that is to be derived from solar energy: 2
103	103
104	104	A. 45 cents in 2008; 3
105	105
106	106	B. 40 cents in 2009 through 2014; 4
107	107
108	108	C. 35 cents in 2015 and 2016; 5
109	109
110	110	D. 19.5 cents in 2017; 6
111	111
112	112	E. 17.5 cents in 2018; 7
113	113
114	114	F. 10 cents in 2019; 8
115	115
116	116	G. 10 cents in 2020; 9
117	117
118	118	H. 8 cents in 2021; 10
119	119
120	120	I. 6 cents in 2022; 11
121	121
122	122	J. 6 cents in 2023; AND 12
123	123
124	124	K. 6 cents in 2024 AND LATER; 13
125	125
126	126	[L. 5.5 cents in 2025; 14
127	127
128	128	M. 4.5 cents in 2026; 15
129	129
130	130	N. 3.5 cents in 2027; 16
131	131
132	132	O. 3.25 cents in 2028; 17
133	133
134	134	P. 2.5 cents in 2029; and 18
135	135
136	136	Q. 2.25 cents in 2030 and later;] and 19
137	137
138	138	3. 1.5 cents for each kilowatt–hour of shortfall from required 20
139	139	Tier 2 renewable sources; or 21
140	140
141	141	(ii) for industrial process load: 22
142	142
143	143	1. for each kilowatt–hour of shortfall from required Tier 1 23
144	144	renewable sources, a compliance fee of: 24
145	145
146	146	A. 0.8 cents in 2006, 2007, and 2008; 25 4 SENATE BILL 357
147	147
148	148
149	149
150	150	B. 0.5 cents in 2009 and 2010; 1
151	151
152	152	C. 0.4 cents in 2011 and 2012; 2
153	153
154	154	D. 0.3 cents in 2013 and 2014; 3
155	155
156	156	E. 0.25 cents in 2015 and 2016; and 4
157	157
158	158	F. except as provided in paragraph (3) of this subsection, 0.2 5
159	159	cents in 2017 and later; and 6
160	160
161	161	2. nothing for any shortfall from required Tier 2 renewable 7
162	162	sources. 8
163	163
164	164	(3) For industrial process load, the compliance fee for each kilowatt–hour 9
165	165	of shortfall from required Tier 1 renewable sources is nothing for the year following any 10
166	166	year during which, after final calculations, the net rate impact per megawatt–hour from 11
167	167	Round 1 offshore wind projects exceeded $1.65 in 2012 dollars. 12
168	168
169	169	SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect 13
170	170	October 1, 2023. 14