Maryland 2023 Regular Session

Maryland Senate Bill SB781 Compare Versions

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1- WES MOORE, Governor Ch. 95
21
3-– 1 –
4-Chapter 95
5-(Senate Bill 781)
62
7-AN ACT concerning
3+EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
4+ [Brackets] indicate matter deleted from existing law.
5+ Underlining indicates amendments to bill.
6+ Strike out indicates matter stricken from the bill by amendment or deleted from the law by
7+amendment.
8+ Italics indicate opposite chamber/conference committee amendments.
9+ *sb0781*
810
9-Offshore Wind Energy – State Goals and Procurement
10-(Promoting Offshore Wind Energy Resources Act)
11+SENATE BILL 781
12+M5, C5, P2 (3lr1939)
13+ENROLLED BILL
14+— Education, Energy, and the Environment/Economic Matters —
15+Introduced by Senators Hester, Feldman, and Brooks
1116
12-FOR the purpose of requiring an application for any new qualified offshore wind project
13-and a certain proposal for an offshore wind transmission facility to be subject to a
14-certain community benefit agreement; altering the requirements for a certain report
15-on offshore wind projects; authorizing certain offshore wind project developers to
16-apply for an exemption from certain requirements; requiring the Public Service
17-Commission to request that PJM Interconnection conduct a certain analysis of
18-transmission system upgrade and expansion options; requiring the Commission to
19-take certain actions regarding the transmission system and the analysis of
20-transmission system expansion options; requiring and authorizing the Commission
21-to issue a certain number of competitive solicitations for, or PJM Interconnection at
22-the request of the Commission, to take certain actions on proposals for certain
23-offshore wind transmission facilities and transmission upgrades and expansions;
24-requiring the Commission to develop certain criteria for selecting a proposal and
25-include certain specifications in the solicitation; exempting certain proposals from
26-the requirement to obtain a certificate of public convenience and necessity;
27-establishing that procurement of certain proposals may not impact the
28-interconnection plans of certain earlier offshore wind projects; requiring the
29-Department of General Services, in consultation with the Commission, to issue an
30-invitation for bids a certain solicitation for a certain power purchase agreement
31-within a certain time frame; requiring the Department to identify the amount of
32-energy necessary to meet the State’s energy needs; requiring the State to use certain
33-energy and associated renewable energy credits in a certain manner, offer for sale
34-certain energy or associated renewable energy credits, issue a certain procurement
35-on or before a certain date, and enter into a contract or contracts for that
36-procurement on or before a certain date; establishing that the State be exempted
37-from the renewable energy portfolio standard requirements under certain
38-circumstances; requiring certain contractors to submit a certain attestation within a
39-certain number of days after the operational commencement date of a certain power
40-purchase agreement; requiring the Commission to submit, on or before a certain date
41-each year, a report to the General Assembly on certain information collected under
42-the Commission’s Supplier Diversity Program; requiring a certain certification
43-agency to initiate a certain study regarding clean energy and offshore wind industries
44-and certain remedial measures; and generally relating to the development of
45-renewable energy.
17+Read and Examined by Proofreaders:
4618
47-BY repealing and reenacting, without amendments,
48- Article – Public Utilities
49-Section 7–701(a) Ch. 95 2023 LAWS OF MARYLAND
19+_______________________________________________
20+Proofreader.
21+_______________________________________________
22+Proofreader.
5023
51-– 2 –
52- Annotated Code of Maryland
53- (2020 Replacement Volume and 2022 Supplement)
24+Sealed with the Great Seal and presented to the Governor, for his approval this
5425
55-BY adding to
56- Article – Public Utilities
57-Section 7–701(g–1) and (h–1), 7–704.3, and 7–704.4, and 7–704.5
58- Annotated Code of Maryland
59- (2020 Replacement Volume and 2022 Supplement)
26+_______ day of _______________ at ________________________ o’clock, ________M.
6027
61-BY repealing and reenacting, with amendments,
62- Article – Public Utilities
63-Section 7–701(k) and 7–704.1
64- Annotated Code of Maryland
65- (2020 Replacement Volume and 2022 Supplement)
28+______________________________________________
29+President.
6630
67- SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLA ND,
68-That the Laws of Maryland read as follows:
31+CHAPTER ______
6932
70-Article – Public Utilities
33+AN ACT concerning 1
7134
72-7–701.
35+Offshore Wind Energy – State Goals and Procurement 2
36+(Promoting Offshore Wind Energy Resources Act) 3
7337
74- (a) In this subtitle the following words have the meanings indicated.
38+FOR the purpose of requiring an application for any new qualified offshore wind project 4
39+and a certain proposal for an offshore wind transmission facility to be subject to a 5
40+certain community benefit agreement; altering the requirements for a certain report 6
41+on offshore wind projects; authorizing certain offshore wind project developers to 7
42+apply for an exemption from certain requirements; requiring the Public Service 8
43+Commission to request that PJM Interconnection conduct a certain analysis of 9
44+transmission system upgrade and expansion options; requiring the Commission to 10
45+take certain actions regarding the transmission system and the analysis of 11
46+transmission system expansion options; requiring and authorizing the Commission 12
47+to issue a certain number of competitive solicitations for, or PJM Interconnection at 13
48+the request of the Commission, to take certain actions on proposals for certain 14
49+offshore wind transmission facilities and transmission upgrades and expansions; 15 2 SENATE BILL 781
7550
76- (G–1) “OFFSHORE WIND TRANSMI SSION PROJECT ” MEANS AN ELECTRIC
77-TRANSMISSION PROJECT SELECTED BY THE COMMISSION UNDER § 7–704.4 7–704.3
78-OF THIS SUBTITLE TO INTERCONNECT DIRECTL Y OR INDIRECTLY WITH ONE OR
79-MORE QUALIFIED OFFSH ORE WIND PROJECTS .
8051
81- (H–1) “PJM INTERCONNECTION ” MEANS PJM INTERCONNECTION , LLC OR
82-ANY SUCCESSOR ORGANI ZATION THAT SERVICES THE PJM REGION.
52+requiring the Commission to develop certain criteria for selecting a proposal and 1
53+include certain specifications in the solicitation; exempting certain proposals from 2
54+the requirement to obtain a certificate of public convenience and necessity; 3
55+establishing that procurement of certain proposals may not impact the 4
56+interconnection plans of certain earlier offshore wind projects; requiring the 5
57+Department of General Services, in consultation with the Commission, to issue an 6
58+invitation for bids a certain solicitation for a certain power purchase agreement 7
59+within a certain time frame; requiring the Department to identify the amount of 8
60+energy necessary to meet the State’s energy needs; requiring the State to use certain 9
61+energy and associated renewable energy credits in a certain manner, offer for sale 10
62+certain energy or associated renewable energy credits, issue a certain procurement 11
63+on or before a certain date, and enter into a contract or contracts for that 12
64+procurement on or before a certain date; establishing that the State be exempted 13
65+from the renewable energy portfolio standard requirements under certain 14
66+circumstances; requiring certain contractors to submit a certain attestation within a 15
67+certain number of days after the operational commencement date of a certain power 16
68+purchase agreement; requiring the Commission to submit, on or before a certain date 17
69+each year, a report to the General Assembly on certain information collected under 18
70+the Commission’s Supplier Diversity Program; requiring a certain certification 19
71+agency to initiate a certain study regarding clean energy and offshore wind industries 20
72+and certain remedial measures; and generally relating to the development of 21
73+renewable energy. 22
8374
84- (k) “Qualified offshore wind project” means a wind turbine electricity generation
85-facility, including the associated transmission–related interconnection facilities and
86-equipment, that:
75+BY repealing and reenacting, without amendments, 23
76+ Article – Public Utilities 24
77+Section 7–701(a) 25
78+ Annotated Code of Maryland 26
79+ (2020 Replacement Volume and 2022 Supplement) 27
8780
88- (1) is located:
81+BY adding to 28
82+ Article – Public Utilities 29
83+Section 7–701(g–1) and (h–1), 7–704.3, and 7–704.4, and 7–704.5 30
84+ Annotated Code of Maryland 31
85+ (2020 Replacement Volume and 2022 Supplement) 32
8986
90- (I) on the outer continental shelf of the Atlantic Ocean in an area
91-that the United States Department of the Interior designates for leasing [after coordination
92-and consultation with the State in accordance with § 388(a) of the Energy Policy Act of
93-2005]; AND
94- WES MOORE, Governor Ch. 95
87+BY repealing and reenacting, with amendments, 33
88+ Article – Public Utilities 34
89+Section 7–701(k) and 7–704.1 35
90+ Annotated Code of Maryland 36
91+ (2020 Replacement Volume and 2022 Supplement) 37
9592
96-– 3 –
97- (II) MORE THAN 10 MILES OFF THE COAST OF THE STATE FOR A
98-PROJECT SELECTED UND ER § 7–704.4 OF THIS SUBTITLE OR APPROVED UNDER §
99-7–704.1 OF THIS SUBTITLE AFT ER JUNE 1, 2023; and
93+ SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLA ND, 38
94+That the Laws of Maryland read as follows: 39
10095
101- (2) interconnects to the PJM Interconnection grid:
96+Article – Public Utilities 40
10297
103- (I) at a point located on the Delmarva Peninsula; OR
98+7–701. 41 SENATE BILL 781 3
10499
105- (II) THROUGH AN OFFSHORE WIND TRANSMISSION PR OJECT
106-SELECTED UNDER § 7–704.3 OF THIS SUBTITLE .
107100
108-7–704.1.
109101
110- (a) (1) The General Assembly finds and declares that:
102+ (a) In this subtitle the following words have the meanings indicated. 1
111103
112- (I) THE STATE HAS A GOAL OF R EACHING 8,500 MEGAWATTS OF
113-OFFSHORE WIND ENERGY CAPACITY BY 2031, INCLUDING ROUND 1 OFFSHORE WIND
114-PROJECTS, ROUND 2 OFFSHORE WIND PROJEC TS, AND ANY OTHER PROCUR EMENT
115-EFFORTS;
104+ (G–1) “OFFSHORE WIND TRANSMI SSION PROJECT ” MEANS AN ELECTRIC 2
105+TRANSMISSION PROJECT SELECTED BY THE COMMISSION UNDER § 7–704.4 7–704.3 3
106+OF THIS SUBTITLE TO INTERCONNECT DIRECTL Y OR INDIRECTLY WITH ONE OR 4
107+MORE QUALIFIED OFFSH ORE WIND PROJECTS . 5
116108
117- (II) THE GENERAL ASSEMBLY ANT ICIPATES THE ISSUANC E OF
118-SUFFICIENT WIND ENER GY LEASES IN THE CEN TRAL ATLANTIC REGION TO SA TISFY
119-THE GOAL STATED IN I TEM (I) OF THIS PARAGRAPH ;
109+ (H–1) “PJM INTERCONNECTION ” MEANS PJM INTERCONNECTION , LLC OR 6
110+ANY SUCCESSOR ORGANI ZATION THAT SERVICES THE PJM REGION. 7
120111
121- [(i)] (III) the development of offshore wind energy is important to
122-the economic well–being of the State and the nation; [and]
112+ (k) “Qualified offshore wind project” means a wind turbine electricity generation 8
113+facility, including the associated transmission–related interconnection facilities and 9
114+equipment, that: 10
123115
124- (IV) OFFSHORE WIND CAN PR OVIDE CLEAN ENERGY A T THE
125-SCALE NEEDED TO HELP ACHIEVE THE STATE’S ECONOMY –WIDE NET–ZERO
126-GREENHOUSE GAS EMISS IONS REDUCTION TARGETS ESTABLISHED IN CHAPTER 38
127-OF THE ACTS OF THE GENERAL ASSEMBLY OF 2022; AND
116+ (1) is located: 11
128117
129- [(ii)] (V) it is in the public interest of the State to facilitate the
130-construction of at least 1,200 megawatts of Round 2 offshore wind projects in order to:
118+ (I) on the outer continental shelf of the Atlantic Ocean in an area 12
119+that the United States Department of the Interior designates for leasing [after coordination 13
120+and consultation with the State in accordance with § 388(a) of the Energy Policy Act of 14
121+2005]; AND 15
131122
132- 1. position the State to take advantage of the economic
133-development benefits of the emerging offshore wind industry;
123+ (II) MORE THAN 10 MILES OFF THE COAST OF THE STATE FOR A 16
124+PROJECT SELECTED UND ER § 7–704.4 OF THIS SUBTITLE OR APPROVED UNDER § 17
125+7–704.1 OF THIS SUBTITLE AFT ER JUNE 1, 2023; and 18
134126
135- 2. promote the development of renewable energy sources
136-that increase the nation’s independence from foreign sources of fossil fuels;
127+ (2) interconnects to the PJM Interconnection grid: 19
137128
138- 3. reduce the adverse environmental and health impacts of
139-traditional fossil fuel energy sources; and
140- Ch. 95 2023 LAWS OF MARYLAND
129+ (I) at a point located on the Delmarva Peninsula; OR 20
141130
142-– 4 –
143- 4. provide a long–term hedge against volatile prices of fossil
144-fuels; AND
131+ (II) THROUGH AN OFFSHORE WIND TRANSMISSION PR OJECT 21
132+SELECTED UNDER § 7–704.3 OF THIS SUBTITLE . 22
145133
146- (VI) IT IS IN THE PUBLIC INTEREST OF THE STATE TO MAXIMIZE
147-THE OPPORTUNITIES FO R OBTAINING AND USIN G FEDERAL FUNDS FOR OFFSHORE
148-WIND AND RELATED TRA NSMISSION PROJECTS T HROUGH THE INCLUSION OF
149-SPECIFIED LABOR STAN DARDS AND GOALS , DOMESTIC CONTENT REQ UIREMENTS,
150-AND OTHER PROVISIONS TO ALIGN STATE LAW WITH PROVIS IONS OF THE FEDERAL
151-INFRASTRUCTURE INVESTMENT AND JOBS ACT OF 2021 AND THE FEDERAL
152-INFLATION REDUCTION ACT OF 2022.
134+7–704.1. 23
153135
154- (2) After the effective date of Commission regulations implementing this
155-section and § 7–704.2 of this subtitle, and before June 30, 2017, a person may submit an
156-application to the Commission for approval of a proposed Round 1 offshore wind project.
136+ (a) (1) The General Assembly finds and declares that: 24
157137
158- (3) (i) On receipt of the application for approval of a Round 1 offshore
159-wind project, the Commission shall:
138+ (I) THE STATE HAS A GOAL OF R EACHING 8,500 MEGAWA TTS OF 25
139+OFFSHORE WIND ENERGY CAPACITY BY 2031, INCLUDING ROUND 1 OFFSHORE WIND 26
140+PROJECTS, ROUND 2 OFFSHORE WIND PROJEC TS, AND ANY OTHER PROCUR EMENT 27
141+EFFORTS; 28
160142
161- 1. open an application period when other interested persons
162-may submit applications for approval of Round 1 offshore wind projects; and
143+ (II) THE GENERAL ASSEMBLY ANTICIPATES THE ISSUANCE OF 29
144+SUFFICIENT WIND ENER GY LEASES IN THE CEN TRAL ATLANTIC REGION TO SA TISFY 30
145+THE GOAL STATED IN I TEM (I) OF THIS PARAGRAPH ; 31 4 SENATE BILL 781
163146
164- 2. provide notice that the Commission is accepting
165-applications for approval of Round 1 offshore wind projects.
166147
167- (ii) The Commission shall set the closing date for the application
168-period to be no sooner than 90 days after the notice provided under subparagraph (i) of this
169-paragraph.
170148
171- (4) The Commission shall provide additional application periods
172-beginning, respectively:
149+ [(i)] (III) the development of offshore wind energy is important to 1
150+the economic well–being of the State and the nation; [and] 2
173151
174- (i) January 1, 2020, for consideration of Round 2 offshore wind
175-projects to begin creating ORECs not later than 2026;
152+ (IV) OFFSHORE WIND CAN PR OVIDE CLEAN ENERGY A T THE 3
153+SCALE NEEDED TO HELP ACHIEVE THE STATE’S ECONOMY –WIDE NET–ZERO 4
154+GREENHOUSE GAS EMISS IONS REDUCTION TARGE TS ESTABLISHED IN CHAPTER 38 5
155+OF THE ACTS OF THE GENERAL ASSEMBLY OF 2022; AND 6
176156
177- (ii) January 1, 2021, for consideration of Round 2 offshore wind
178-projects to begin creating ORECs not later than 2028; and
157+ [(ii)] (V) it is in the public interest of the State to facilitate the 7
158+construction of at least 1,200 megawatts of Round 2 offshore wind projects in order to: 8
179159
180- (iii) January 1, 2022, for consideration of Round 2 offshore wind
181-projects to begin creating ORECs not later than 2030.
160+ 1. position the State to take advantage of the economic 9
161+development benefits of the emerging offshore wind industry; 10
182162
183- (5) In its discretion, the Commission may provide for additional application
184-periods THAT MEET THE REQUIR EMENTS OF THIS SECTI ON.
185- WES MOORE, Governor Ch. 95
163+ 2. promote the development of renewable energy sources 11
164+that increase the nation’s independence from foreign sources of fossil fuels; 12
186165
187-– 5 –
188- (b) Unless extended by mutual consent of the parties, the Commission shall
189-approve, conditionally approve, or deny an application within 180 days after the close of
190-the application period.
166+ 3. reduce the adverse environmental and health impacts of 13
167+traditional fossil fuel energy sources; and 14
191168
192- (c) An application shall include:
169+ 4. provide a long–term hedge against volatile prices of fossil 15
170+fuels; AND 16
193171
194- (1) a detailed description and financial analysis of the offshore wind
195-project;
172+ (VI) IT IS IN THE PUBLIC INTEREST OF THE STATE TO MAXIMIZE 17
173+THE OPPORTUNITIES FO R OBTAINING AND USIN G FEDERAL FUNDS FOR OFFSHORE 18
174+WIND AND RELATED TRA NSMISSION PROJECTS T HROUGH THE INCLUSION OF 19
175+SPECIFIED LABOR STAN DARDS AND GOALS , DOMESTIC CONTENT REQ UIREMENTS, 20
176+AND OTHER PROVISIONS TO ALIGN STATE LAW WITH PROVIS IONS OF THE FEDERAL 21
177+INFRASTRUCTURE INVESTMENT AND JOBS ACT OF 2021 AND THE FEDERAL 22
178+INFLATION REDUCTION ACT OF 2022. 23
196179
197- (2) the proposed method of financing the offshore wind project, including
198-documentation demonstrating that the applicant has applied for all current eligible State
199-and federal grants, rebates, tax credits, loan guarantees, or other programs available to
200-offset the cost of the project or provide tax advantages;
180+ (2) After the effective date of Commission regulations implementing this 24
181+section and § 7–704.2 of this subtitle, and before June 30, 2017, a person may submit an 25
182+application to the Commission for approval of a proposed Round 1 offshore wind project. 26
201183
202- (3) a cost–benefit analysis that shall include at a minimum:
184+ (3) (i) On receipt of the application for approval of a Round 1 offshore 27
185+wind project, the Commission shall: 28
203186
204- (i) a detailed input–output analysis of the impact of the offshore
205-wind project on income, employment, wages, and taxes in the State with particular
206-emphasis on in–State manufacturing employment;
187+ 1. open an application period when other interested persons 29
188+may submit applications for approval of Round 1 offshore wind projects; and 30
207189
208- (ii) detailed information concerning assumed employment impacts
209-in the State, including the expected duration of employment opportunities, the salary of
210-each position, and other supporting evidence of employment impacts;
190+ 2. provide notice that the Commission is accepting 31
191+applications for approval of Round 1 offshore wind projects. 32
192+ SENATE BILL 781 5
211193
212- (iii) an analysis of the anticipated environmental benefits, health
213-benefits, and environmental impacts of the offshore wind project to the citizens of the State;
214194
215- (iv) an analysis of any impact on residential, commercial, and
216-industrial ratepayers over the life of the offshore wind project;
195+ (ii) The Commission shall set the closing date for the application 1
196+period to be no sooner than 90 days after the notice provided under subparagraph (i) of this 2
197+paragraph. 3
217198
218- (v) an analysis of any long–term effect on energy and capacity
219-markets as a result of the proposed offshore wind project;
199+ (4) The Commission shall provide additional application periods 4
200+beginning, respectively: 5
220201
221- (vi) an analysis of any impact on businesses in the State; and
202+ (i) January 1, 2020, for consideration of Round 2 offshore wind 6
203+projects to begin creating ORECs not later than 2026; 7
222204
223- (vii) other benefits, such as increased in–State construction,
224-operations, maintenance, and equipment purchase;
205+ (ii) January 1, 2021, for consideration of Round 2 offshore wind 8
206+projects to begin creating ORECs not later than 2028; and 9
225207
226- (4) a proposed OREC pricing schedule for the offshore wind project that
227-shall specify a price for the generation attributes, including the energy, capacity, ancillary
228-services, and environmental attributes;
208+ (iii) January 1, 2022, for consideration of Round 2 offshore wind 10
209+projects to begin creating ORECs not later than 2030. 11
229210
230- (5) a decommissioning plan for the project, including provisions for
231-decommissioning as required by the United States Department of the Interior;
211+ (5) In its discretion, the Commission may provide for additional application 12
212+periods THAT MEET THE REQUIR EMENTS OF THIS SECTI ON. 13
232213
233- (6) a commitment to: Ch. 95 2023 LAWS OF MARYLAND
214+ (b) Unless extended by mutual consent of the parties, the Commission shall 14
215+approve, conditionally approve, or deny an application within 180 days after the close of 15
216+the application period. 16
234217
235-– 6 –
218+ (c) An application shall include: 17
236219
237- (i) abide by the requirements set forth in subsection [(e)] (F) of this
238-section; and
220+ (1) a detailed description and financial analysis of the offshore wind 18
221+project; 19
239222
240- (ii) deposit at least $6,000,000, in the manner required under
241-subsection [(g)] (H) of this section, into the Maryland Offshore Wind Business Development
242-Fund established under § 9–20C–03 of the State Government Article;
223+ (2) the proposed method of financing the offshore wind project, including 20
224+documentation demonstrating that the applicant has applied for all current eligible State 21
225+and federal grants, rebates, tax credits, loan guarantees, or other programs available to 22
226+offset the cost of the project or provide tax advantages; 23
243227
244- (7) a description of the applicant’s plan for engaging small businesses, as
245-defined in § 14–501 of the State Finance and Procurement Article;
228+ (3) a cost–benefit analysis that shall include at a minimum: 24
246229
247- (8) a commitment that the applicant will:
230+ (i) a detailed input–output analysis of the impact of the offshore 25
231+wind project on income, employment, wages, and taxes in the State with particular 26
232+emphasis on in–State manufacturing employment; 27
248233
249- (i) use best efforts to apply for all eligible State and federal grants,
250-rebates, tax credits, loan guarantees, or other similar benefits as those benefits become
251-available; and
234+ (ii) detailed information concerning assumed employment impacts 28
235+in the State, including the expected duration of employment opportunities, the salary of 29
236+each position, and other supporting evidence of employment impacts; 30
252237
253- (ii) SUBJECT TO SUBSECTIO N (K) OF THIS SECTION, pass along to
254-ratepayers, without the need for any subsequent Commission approval, 80% of the value of
255-any [state] STATE or federal grants, rebates, tax credits, loan guarantees, or other similar
256-benefits received by the project and not included in the application; and
238+ (iii) an analysis of the anticipated environmental benefits, health 31
239+benefits, and environmental impacts of the offshore wind project to the citizens of the State; 32
240+ 6 SENATE BILL 781
257241
258- (9) any other information the Commission requires.
259242
260- (D) THE FOLLOWING ARE SUB JECT TO A COMMUNITY BENEFIT AGREEMENT
261-UNDER SUBSECTION (F) OF THIS SECTION:
243+ (iv) an analysis of any impact on residential, commercial, and 1
244+industrial ratepayers over the life of the offshore wind project; 2
262245
263- (1) AN APPLICATION FOR A NY NEW QUALIFIED OFF SHORE WIND
264-PROJECT; AND
246+ (v) an analysis of any long–term effect on energy and capacity 3
247+markets as a result of the proposed offshore wind project; 4
265248
266- (2) A PROPOSAL FILED AND APPROVED I N ACCORDANCE WITH
267-SELECTED BY THE COMMISSION UNDER § 7–704.3 OF THIS SUBTITLE FOR AN
268-OFFSHORE WIND TRANSM ISSION PROJECT.
249+ (vi) an analysis of any impact on businesses in the State; and 5
269250
270- [(d)] (E) (1) The Commission shall use the following criteria to evaluate and
271-compare proposed offshore wind projects submitted during an application period:
251+ (vii) other benefits, such as increased in–State construction, 6
252+operations, maintenance, and equipment purchase; 7
272253
273- (i) lowest cost impact on ratepayers of the price set under a proposed
274-OREC pricing schedule;
254+ (4) a proposed OREC pricing schedule for the offshore wind project that 8
255+shall specify a price for the generation attributes, including the energy, capacity, ancillary 9
256+services, and environmental attributes; 10
275257
276- (ii) potential reductions in transmission congestion prices within the
277-State;
258+ (5) a decommissioning plan for the project, including provisions for 11
259+decommissioning as required by the United States Department of the Interior; 12
278260
279- (iii) potential changes in capacity prices within the State;
280- WES MOORE, Governor Ch. 95
261+ (6) a commitment to: 13
281262
282-– 7 –
283- (iv) potential reductions in locational marginal pricing;
263+ (i) abide by the requirements set forth in subsection [(e)] (F) of this 14
264+section; and 15
284265
285- (v) potential long–term changes in capacity prices within the State
286-from the offshore wind project as it compares to conventional energy sources;
266+ (ii) deposit at least $6,000,000, in the manner required under 16
267+subsection [(g)] (H) of this section, into the Maryland Offshore Wind Business Development 17
268+Fund established under § 9–20C–03 of the State Government Article; 18
287269
288- (vi) the extent to which the cost–benefit analysis submitted under
289-subsection (c)(3) of this section demonstrates positive net economic, environmental, and
290-health benefits to the State;
270+ (7) a description of the applicant’s plan for engaging small businesses, as 19
271+defined in § 14–501 of the State Finance and Procurement Article; 20
291272
292- (vii) the extent to which an applicant’s plan for engaging small
293-businesses meets the goals specified in Title 14, Subtitle 5 of the State Finance and
294-Procurement Article;
273+ (8) a commitment that the applicant will: 21
295274
296- (viii) the extent to which an applicant’s plan provides for the use of
297-skilled labor, particularly with regard to the construction and manufacturing components
298-of the project, through outreach, hiring, or referral systems that are affiliated with
299-registered apprenticeship programs under Title 11, Subtitle 4 of the Labor and
300-Employment Article;
275+ (i) use best efforts to apply for all eligible State and federal grants, 22
276+rebates, tax credits, loan guarantees, or other similar benefits as those benefits become 23
277+available; and 24
301278
302- (ix) the extent to which an applicant’s plan provides for the use of an
303-agreement designed to ensure the use of skilled labor and to promote the prompt, efficient,
304-and safe completion of the project, particularly with regard to the construction,
305-manufacturing, and maintenance of the project;
279+ (ii) SUBJECT TO SUBSECTIO N (K) OF THIS SECTION, pass along to 25
280+ratepayers, without the need for any subsequent Commission approval, 80% of the value of 26
281+any [state] STATE or federal grants, rebates, tax credits, loan guarantees, or other similar 27
282+benefits received by the project and not included in the application; and 28
306283
307- (x) the extent to which an applicant’s plan provides for
308-compensation to its employees and subcontractors consistent with wages outlined under §§
309-17–201 through 17–228 of the State Finance and Procurement Article;
284+ (9) any other information the Commission requires. 29
310285
311- (xi) siting and project feasibility;
286+ (D) THE FOLLOWING ARE SUB JECT TO A COMMUNITY BENEFIT AGREEMENT 30
287+UNDER SUBSECTION (F) OF THIS SECTION: 31
288+ SENATE BILL 781 7
312289
313- (xii) the extent to which the proposed offshore wind project would
314-require transmission or distribution infrastructure improvements in the State;
315290
316- (xiii) estimated ability to assist in meeting the renewable energy
317-portfolio standard under § 7–703 of this subtitle; and
291+ (1) AN APPLICATION FOR A NY NEW QUALIFIED OFF SHORE WIND 1
292+PROJECT; AND 2
318293
319- (xiv) any other criteria that the Commission determines to be
320-appropriate.
294+ (2) A PROPOSAL FILED AND APPROVED I N ACCORDANCE WITH 3
295+SELECTED BY THE COMMISSION UNDER § 7–704.3 OF THIS SUBTITLE FOR AN 4
296+OFFSHORE WI ND TRANSMISSION PROJ ECT. 5
321297
322- (2) In evaluating and comparing an applicant’s proposed offshore wind
323-project under paragraph (1) of this subsection, the Commission shall contract for the
324-services of independent consultants and experts.
298+ [(d)] (E) (1) The Commission shall use the following criteria to evaluate and 6
299+compare proposed offshore wind projects submitted during an application period: 7
325300
326- (3) The Commission shall verify that representatives of the United States
327-Department of Defense and the maritime industry have had the opportunity, through the
328-federal leasing process, to express concerns regarding project siting. Ch. 95 2023 LAWS OF MARYLAND
301+ (i) lowest cost impact on ratepayers of the price set under a proposed 8
302+OREC pricing schedule; 9
329303
330-– 8 –
304+ (ii) potential reductions in transmission congestion prices within the 10
305+State; 11
331306
332- (4) (i) In this paragraph, “minority” means an individual who is a
333-member of any of the groups listed in § 14–301(k)(1)(i) of the State Finance and
334-Procurement Article.
307+ (iii) potential changes in capacity prices within the State; 12
335308
336- (ii) If an applicant is seeking investors in a proposed offshore wind
337-project, it shall take the following steps before the Commission may approve the proposed
338-project:
309+ (iv) potential reductions in locational marginal pricing; 13
339310
340- 1. make serious, good–faith efforts to solicit and interview a
341-reasonable number of minority investors;
311+ (v) potential long–term changes in capacity prices within the State 14
312+from the offshore wind project as it compares to conventional energy sources; 15
342313
343- 2. as part of the application, submit a statement to the
344-Commission that lists the names and addresses of all minority investors interviewed and
345-whether or not any of those investors have purchased an equity share in the entity
346-submitting an application;
314+ (vi) the extent to which the cost–benefit analysis submitted under 16
315+subsection (c)(3) of this section demonstrates positive net economic, environmental, and 17
316+health benefits to the State; 18
347317
348- 3. as a condition to the Commission’s approval of the offshore
349-wind project, sign a memorandum of understanding with the Commission that requires the
350-applicant to again make serious, good–faith efforts to interview minority investors in any
351-future attempts to raise venture capital or attract new investors to the offshore wind
352-project; and
318+ (vii) the extent to which an applicant’s plan for engaging small 19
319+businesses meets the goals specified in Title 14, Subtitle 5 of the State Finance and 20
320+Procurement Article; 21
353321
354- 4. as a condition to the Commission’s approval of the offshore
355-wind project, sign a memorandum of understanding with the Commission that requires the
356-applicant to use best efforts and effective outreach to obtain, as a goal, contractors and
357-subcontractors for the project that are minority business enterprises, to the extent
358-practicable, as supported by a disparity study.
322+ (viii) the extent to which an applicant’s plan provides for the use of 22
323+skilled labor, particularly with regard to the construction and manufacturing components 23
324+of the project, through outreach, hiring, or referral systems that are affiliated with 24
325+registered apprenticeship programs under Title 11, Subtitle 4 of the Labor and 25
326+Employment Article; 26
359327
360- (iii) The Governor’s Office of Small, Minority, and Women Business
361-Affairs, in consultation with the Office of the Attorney General, shall provide assistance to
362-all potential applicants and potential minority investors to satisfy the requirements under
363-subparagraph (ii)1 and 3 of this paragraph.
328+ (ix) the extent to which an applicant’s plan provides for the use of an 27
329+agreement designed to ensure the use of skilled labor and to promote the prompt, efficient, 28
330+and safe completion of the project, particularly with regard to the construction, 29
331+manufacturing, and maintenance of the project; 30
364332
365- (5) As a condition of the Commission’s approval of the offshore wind
366-project, the applicant shall sign a memorandum of understanding with the Commission
367-and skilled labor organizations that requires the applicant to follow the portions of the
368-applicant’s plan that relate to the criteria set forth in paragraph (1)(viii) and (ix) of this
369-subsection.
333+ (x) the extent to which an applicant’s plan provides for 31
334+compensation to its employees and subcontractors consistent with wages outlined under §§ 32
335+17–201 through 17–228 of the State Finance and Procurement Article; 33
336+ 8 SENATE BILL 781
370337
371- [(e)] (F) (1) (i) In this paragraph, “community benefit agreement” means
372-an agreement applicable to the development of any qualified offshore wind project OR
373-OFFSHORE WIND TRANSM ISSION FACILITY that:
374338
375- 1. promotes increased opportunities for local businesses and
376-small, minority, women–owned, and veteran–owned businesses in the clean energy WES MOORE, Governor Ch. 95
339+ (xi) siting and project feasibility; 1
377340
378-– 9 –
379-industry, INCLUDING THE USE OF A PREFERENCE GIVEN T O BUSINESSES TH AT ARE
380-CERTIFIED UNDER THE FEDERAL DISADVANTAGED BUSINESS ENTERPRISE
381-PROGRAM;
341+ (xii) the extent to which the proposed offshore wind project would 2
342+require transmission or distribution infrastructure improvements in the State; 3
382343
383- 2. ensures the timely, safe, and efficient completion of the
384-project by:
344+ (xiii) estimated ability to assist in meeting the renewable energy 4
345+portfolio standard under § 7–703 of this subtitle; and 5
385346
386- A. facilitating a steady supply of highly skilled craft workers
387-who shall be paid not less than the prevailing wage rate determined by the Commissioner
388-of Labor and Industry under Title 17, Subtitle 2 of the State Finance and Procurement
389-Article; AND
347+ (xiv) any other criteria that the Commission determines to be 6
348+appropriate. 7
390349
391- B. GUARANTEEING THAT TH E CONSTRUCTION WORK
392-PERFORMED IN CONNECT ION WITH THE PROJECT WILL BE SUB JECT TO AN
393-AGREEMENT THAT :
350+ (2) In evaluating and comparing an applicant’s proposed offshore wind 8
351+project under paragraph (1) of this subsection, the Commission shall contract for the 9
352+services of independent consultants and experts. 10
394353
395- I. IS WITH ONE OR MORE LABOR ORGANIZATIONS ; AND
354+ (3) The Commission shall verify that representatives of the United States 11
355+Department of Defense and the maritime industry have had the opportunity, through the 12
356+federal leasing process, to express concerns regarding project siting. 13
396357
397- II. ESTABLISHES, IN ACCORDANCE WITH P ARAGRAPH (3)
398-OF THIS SUBSECTION , THE TERMS AND CONDIT IONS OF EMPLOYMENT A T THE
399-CONSTRUCTION SITE OF THE PROJECT OR A POR TION OF THE PR OJECT;
358+ (4) (i) In this paragraph, “minority” means an individual who is a 14
359+member of any of the groups listed in § 14–301(k)(1)(i) of the State Finance and 15
360+Procurement Article. 16
400361
401- 3. promotes safe completion of the project by ensuring that
402-at least 80% of the craft workers on the project have completed an Occupational Safety and
403-Health Administration 10–hour or 30–hour course;
362+ (ii) If an applicant is seeking investors in a proposed offshore wind 17
363+project, it shall take the following steps before the Commission may approve the proposed 18
364+project: 19
404365
405- 4. promotes career training opportuniti es in the
406-MANUFACTURING , MAINTENANCE , AND construction [industry] INDUSTRIES for local
407-residents, veterans, women, and minorities;
366+ 1. make serious, good–faith efforts to solicit and interview a 20
367+reasonable number of minority investors; 21
408368
409- 5. provides for best efforts and effective outreach to obtain,
410-as a goal, the use of a workforce including minorities, to the extent practicable; [and]
369+ 2. as part of the application, submit a statement to the 22
370+Commission that lists the names and addresses of all minority investors interviewed and 23
371+whether or not any of those investors have purchased an equity share in the entity 24
372+submitting an application; 25
411373
412- 6. reflects a 21st–century labor–management approach BY
413-DEVELOPERS AND SUPPL IERS based on cooperation, harmony, and partnership THAT
414-PROACTIVELY SEEKS TO ENSURE THAT WORKERS CAN FREELY CHOOSE TO BOTH
415-ORGANIZE AND COLLEC TIVELY BARGAIN ;
374+ 3. as a condition to the Commission’s approval of the offshore 26
375+wind project, sign a memorandum of understanding with the Commission that requires the 27
376+applicant to again make serious, good–faith efforts to interview minority investors in any 28
377+future attempts to raise venture capital or attract new investors to the offshore wind 29
378+project; and 30
416379
417- 7. PROVIDES PLANS TO US E DOMESTIC IRON , STEEL,
418-AND MANUFACTURED GOO DS TO THE GREATEST E XTENT PRACTICABLE BY
419-DISCLOSING CONTRACTE D SUPPLIERS;
380+ 4. as a condition to the Commission’s approval of the offshore 31
381+wind project, sign a memorandum of understanding with the Commission that requires the 32
382+applicant to use best efforts and effective outreach to obtain, as a goal, contractors and 33
383+subcontractors for the project that are minority business enterprises, to the extent 34
384+practicable, as supported by a disparity study. 35
385+ SENATE BILL 781 9
420386
421- 8. USES LOCALLY AND DOM ESTICALLY MANUFACTUR ED
422-CONSTRUCTION MATERIA LS AND COMPONENTS ; AND Ch. 95 2023 LAWS OF MARYLAND
423387
424-– 10 –
388+ (iii) The Governor’s Office of Small, Minority, and Women Business 1
389+Affairs, in consultation with the Office of the Attorney General, shall provide assistance to 2
390+all potential applicants and potential minority investors to satisfy the requirements under 3
391+subparagraph (ii)1 and 3 of this paragraph. 4
425392
426- 9. MAXIMIZES THE USE OF SKILLED LOCAL LABOR ,
427-PARTICULARLY WITH RE GARD TO THE CONSTRUC TION AND MANUFACTURI NG
428-COMPONENTS OF THE PR OJECT, USING METHODS INCLUD ING OUTREACH , HIRING,
429-OR REFERRAL METHODS THAT ARE AFFILIATED WITH REGISTERED
430-APPRENTICESHIP PROGRAMS UNDER TITLE 11, SUBTITLE 4 OF THE LABOR AND
431-EMPLOYMENT ARTICLE.
393+ (5) As a condition of the Commission’s approval of the offshore wind 5
394+project, the applicant shall sign a memorandum of understanding with the Commission 6
395+and skilled labor organizations that requires the applicant to follow the portions of the 7
396+applicant’s plan that relate to the criteria set forth in paragraph (1)(viii) and (ix) of this 8
397+subsection. 9
432398
433- (ii) If the Commission receives reasonable proposals that
434-demonstrate positive net economic, environmental, and health benefits to the State, based
435-on the criteria specified in subsection (c)(3) of this section, and subject to subparagraph (iii)
436-of this paragraph, the Commission shall approve orders to facilitate the financing of
437-qualified offshore wind projects, including at least 1,200 megawatts of Round 2 offshore
438-wind projects.
399+ [(e)] (F) (1) (i) In this paragraph, “community benefit agreement” means 10
400+an agreement applicable to the development of any qualified offshore wind project OR 11
401+OFFSHORE WIND TRANSM ISSION FACILITY that: 12
439402
440- (iii) The Commission may not approve an applicant’s proposed
441-offshore wind project unless:
403+ 1. promotes increased opportunities for local businesses and 13
404+small, minority, women–owned, and veteran–owned businesses in the clean energy 14
405+industry, INCLUDING THE USE OF A PREFERENCE GIVEN T O BUSINESSES THAT AR E 15
406+CERTIFIED UNDER THE FEDERAL DISADVANTAGED BUSINESS ENTERPRISE 16
407+PROGRAM; 17
442408
443- 1. for a Round 1 offshore wind project application:
409+ 2. ensures the timely, safe, and efficient completion of the 18
410+project by: 19
444411
445- A. the projected net rate impact for an average residential
446-customer, based on annual consumption of 12,000 kilowatt–hours, combined with the
447-projected net rate impact of other Round 1 offshore wind projects, does not exceed $1.50 per
448-month in 2012 dollars, over the duration of the proposed OREC pricing schedule;
412+ A. facilitating a steady supply of highly skilled craft workers 20
413+who shall be paid not less than the prevailing wage rate determined by the Commissioner 21
414+of Labor and Industry under Title 17, Subtitle 2 of the State Finance and Procurement 22
415+Article; AND 23
449416
450- B. the projected net rate impact for all nonresidential
451-customers considered as a blended average, combined with the projected net rate impact of
452-other Round 1 offshore wind projects, does not exceed 1.5% of nonresidential customers’
453-total annual electric bills, over the duration of the proposed OREC pricing schedule; and
417+ B. GUARANTEEING THAT TH E CONSTRUCTION WORK 24
418+PERFORMED IN CONNECT ION WITH THE PROJECT WILL BE SUBJECT TO A N 25
419+AGREEMENT THAT : 26
454420
455- C. the price specified in the proposed OREC price schedule
456-does not exceed $190 per megawatt–hour in 2012 dollars; and
421+ I. IS WITH ONE OR MORE LABOR ORGANIZATIONS ; AND 27
457422
458- 2. for a Round 2 offshore wind project application:
423+ II. ESTABLISHES, IN ACCORDANCE WITH P ARAGRAPH (3) 28
424+OF THIS SUBSECTION, THE TERMS AND CONDIT IONS OF EMPLOYMENT A T THE 29
425+CONSTRUCTION SITE OF THE PROJECT OR A POR TION OF THE PROJECT ; 30
459426
460- A. the projected incremental net rate impact for an average
461-residential customer, based on annual consumption of 12 megawatt–hours, combined with
462-the projected incremental net rate impact of other Round 2 offshore wind projects, does not
463-exceed 88 cents per month in 2018 dollars, over the duration of the proposed OREC pricing
464-schedule;
427+ 3. promotes safe completion of the project by ensuring that 31
428+at least 80% of the craft workers on the project have completed an Occupational Safety and 32
429+Health Administration 10–hour or 30–hour course; 33
430+ 10 SENATE BILL 781
465431
466- B. the projected incremental net rate impact for all
467-nonresidential customers considered as a blended average, combined with the projected net
468-rate impact of other Round 2 offshore wind projects, does not exceed 0.9% of nonresidential
469-customers’ total annual electric bills during any year of the proposed OREC pricing
470-schedule; and WES MOORE, Governor Ch. 95
471432
472-– 11 –
433+ 4. promotes career training opportunities in the 1
434+MANUFACTURING , MAINTENANCE , AND construction [industry] INDUSTRIES for local 2
435+residents, veterans, women, and minorities; 3
473436
474- C. the project is subject to a community benefit agreement.
437+ 5. provides for best efforts and effective outreach to obtain, 4
438+as a goal, the use of a workforce including minorities, to the extent practicable; [and] 5
475439
476- (2) (i) When calculating the net benefits to the State under paragraph
477-(1)(ii) of this subsection, the Commission shall contract for the services of independent
478-consultants and experts.
440+ 6. reflects a 21st–century labor–management approach BY 6
441+DEVELOPERS AND SUPPL IERS based on cooperation, harmony, and partnership THAT 7
442+PROACTIVELY SEEKS TO ENSURE THAT WORKERS CAN FREELY CHOOSE TO BOTH 8
443+ORGANIZE AND COLLECT IVELY BARGAIN; 9
479444
480- (ii) When calculating the projected net average rate impacts for
481-Round 1 offshore wind projects under paragraph (1)(iii)1A and B of this subsection and for
482-Round 2 offshore wind projects under paragraph (1)(iii)2A and B of this subsection, the
483-Commission shall apply the same net OREC cost per megawatt–hour to residential and
484-nonresidential customers.
445+ 7. PROVIDES PLANS TO US E DOMESTIC IRON , STEEL, 10
446+AND MANUFACTURED GOO DS TO THE GREATEST E XTENT PRACTICABLE BY 11
447+DISCLOSING CON TRACTED SUPPLIERS ; 12
485448
486- (3) AN AGREEMENT REQUIRED UNDER PARAGRAPH (1)(I)2B OF THIS
487-SUBSECTION SHALL :
449+ 8. USES LOCALLY AND DOM ESTICALLY MANUFACTUR ED 13
450+CONSTRUCTION MATERIA LS AND COMPONENTS ; AND 14
488451
489- (I) GUARANTEE AGAINST ST RIKES, LOCKOUTS, AND SIMILAR
490-DISRUPTIONS;
452+ 9. MAXIMIZES THE USE OF SKILLED LOCAL LABOR , 15
453+PARTICULARLY WITH RE GARD TO THE CONSTRUC TION AND MANUFACTURI NG 16
454+COMPONENTS OF THE PR OJECT, USING METHODS INCLUD ING OUTREACH , HIRING, 17
455+OR REFERRAL METHODS THAT ARE AFFILIATED WITH REGISTERED 18
456+APPRENTICESHIP PROGR AMS UNDER TITLE 11, SUBTITLE 4 OF THE LABOR AND 19
457+EMPLOYMENT ARTICLE. 20
491458
492- (II) ENSURE THAT ALL WORK ON THE PROJECT FULLY
493-CONFORMS TO ALL RELE VANT STATE AND FEDERAL LAW S, RULES, AND
494-REGULATIONS ;
459+ (ii) If the Commission receives reasonable proposals that 21
460+demonstrate positive net economic, environmental, and health benefits to the State, based 22
461+on the criteria specified in subsection (c)(3) of this section, and subject to subparagraph (iii) 23
462+of this paragraph, the Commission shall approve orders to facilitate the financing of 24
463+qualified offshore wind projects, including at least 1,200 megawatts of Round 2 offshore 25
464+wind projects. 26
495465
496- (III) CREATE MUTUALLY BIND ING PROCEDURES FOR R ESOLVING
497-LABOR DISPUTES ARISI NG DURING THE TERM O F THE PROJECT;
466+ (iii) The Commission may not approve an applicant’s proposed 27
467+offshore wind project unless: 28
498468
499- (IV) SET FORTH OTHER MECH ANISMS FOR
500-LABOR–MANAGEMENT COOPERATI ON ON MATTERS OF MUT UAL INTEREST AND
501-CONCERN, INCLUDING PRODUCTIVI TY, QUALITY OF WORK, SAFETY, AND HEALTH ;
502-AND
469+ 1. for a Round 1 offshore wind project application: 29
503470
504- (V) BIND ALL CONTRACTORS AND SUBCONTRACTORS T O THE
505-TERMS OF THE AGREEME NT THROUGH THE INCLU SION OF APPROPRIATE
506-PROVISIONS IN ALL RE LEVANT SOLICITATION AND CONTRACT DOCUMEN TS.
471+ A. the projected net rate impact for an average residential 30
472+customer, based on annual consumption of 12,000 kilowatt–hours, combined with the 31
473+projected net rate impact of other Round 1 offshore wind projects, does not exceed $1.50 per 32
474+month in 2012 dollars, over the duration of the proposed OREC pricing schedule; 33
507475
508- [(f)] (G) (1) An order the Commission issues approving a proposed offshore
509-wind project shall:
476+ B. the projected net rate impact for all nonresidential 34
477+customers considered as a blended average, combined with the projected net rate impact of 35 SENATE BILL 781 11
510478
511- (i) specify the OREC price schedule, which may not authorize an
512-OREC price greater than, for a Round 1 offshore wind project, $190 per megawatt–hour in
513-2012 dollars;
514479
515- (ii) specify the duration of the OREC pricing schedule, not to exceed
516-20 years;
517- Ch. 95 2023 LAWS OF MARYLAND
480+other Round 1 offshore wind projects, does not exceed 1.5% of nonresidential customers’ 1
481+total annual electric bills, over the duration of the proposed OREC pricing schedule; and 2
518482
519-– 12 –
520- (iii) specify the number of ORECs the offshore wind project may sell
521-each year;
483+ C. the price specified in the proposed OREC price schedule 3
484+does not exceed $190 per megawatt–hour in 2012 dollars; and 4
522485
523- (iv) provide that:
486+ 2. for a Round 2 offshore wind project application: 5
524487
525- 1. a payment may not be made for an OREC until electricity
526-supply is generated by the offshore wind project; and
488+ A. the projected incremental net rate impact for an average 6
489+residential customer, based on annual consumption of 12 megawatt–hours, combined with 7
490+the projected incremental net rate impact of other Round 2 offshore wind projects, does not 8
491+exceed 88 cents per month in 2018 dollars, over the duration of the proposed OREC pricing 9
492+schedule; 10
527493
528- 2. ratepayers, purchasers of ORECs, and the State shall be
529-held harmless for any cost overruns associated with the offshore wind project; and
494+ B. the projected incremental net rate impact for all 11
495+nonresidential customers considered as a blended average, combined with the projected net 12
496+rate impact of other Round 2 offshore wind projects, does not exceed 0.9% of nonresidential 13
497+customers’ total annual electric bills during any year of the proposed OREC pricing 14
498+schedule; and 15
530499
531- (v) require that any debt instrument issued in connection with a
532-qualified offshore wind project include language specifying that the debt instrument does
533-not establish a debt, obligation, or liability of the State.
500+ C. the project is subject to a community benefit agreement. 16
534501
535- (2) An order approving a proposed offshore wind project vests the owner of
536-the qualified offshore wind project with the right to receive payments for ORECs according
537-to the terms in the order.
502+ (2) (i) When calculating the net benefits to the State under paragraph 17
503+(1)(ii) of this subsection, the Commission shall contract for the services of independent 18
504+consultants and experts. 19
538505
539- (3) On or before March 1 each year, the Commission shall report to the
540-Governor and, in accordance with § 2–1257 of the State Government Article, to the Senate
541-Finance Committee ON EDUCATION, ENERGY, AND THE ENVIRONMENT and the House
542-Economic Matters Committee on:
506+ (ii) When calculating the projected net average rate impacts for 20
507+Round 1 offshore wind projects under paragraph (1)(iii)1A and B of this subsection and for 21
508+Round 2 offshore wind projects under paragraph (1)(iii)2A and B of this subsection, the 22
509+Commission shall apply the same net OREC cost per megawatt–hour to residential and 23
510+nonresidential customers. 24
543511
544- (i) compliance by applicants with the minority business enterprise
545-participation goals under subsection [(d)(4)] (E)(4) of this section; and
512+ (3) AN AGREEMENT REQUIRED UNDER PARAGRAPH (1)(I)2B OF THIS 25
513+SUBSECTION SHALL : 26
546514
547- (ii) with respect to the community benefit agreement under
548-subsection [(e)(1)] (F)(1) of this section:
515+ (I) GUARANTEE AGAINST ST RIKES, LOCKOUTS, AND SIMILAR 27
516+DISRUPTIONS; 28
549517
550- 1. the availability and use of opportunities for local
551-businesses and small, minority, women–owned, and veteran–owned businesses;
518+ (II) ENSURE THA T ALL WORK ON THE PR OJECT FULLY 29
519+CONFORMS TO ALL RELE VANT STATE AND FEDERAL LAW S, RULES, AND 30
520+REGULATIONS ; 31
552521
553- 2. the success of efforts to promote career training
554-opportunities in the MANUFACTURING , MAINTENANCE , AND construction [industry]
555-INDUSTRIES for local residents, veterans, women, and minorities; and
522+ (III) CREATE MUTUALLY BIND ING PROCEDURES FOR R ESOLVING 32
523+LABOR DISPUTES ARISI NG DURING THE TERM O F THE PROJECT; 33
524+ 12 SENATE BILL 781
556525
557- 3. compliance with the minority workforce goal under
558-subsection [(e)(1)(i)5] (F)(1)(I)5 of this section.
559526
560- [(g)] (H) For Round 2 offshore wind project applications, the Commission shall
561-approve OREC orders representing a minimum of 400 megawatts of nameplate capacity
562-proposed during each application period unless:
563- WES MOORE, Governor Ch. 95
527+ (IV) SET FORTH OTHER MECH ANISMS F OR 1
528+LABOR–MANAGEMENT COOPERATI ON ON MATTERS OF MUT UAL INTEREST AND 2
529+CONCERN, INCLUDING PRODUCTIVI TY, QUALITY OF WORK , SAFETY, AND HEALTH ; 3
530+AND 4
564531
565-– 13 –
566- (1) not enough Round 2 offshore wind project applications are submitted to
567-meet the net benefit test under subsection (c)(3) of this section; or
532+ (V) BIND ALL CONTRACTORS AND SUBCONTRACTORS T O THE 5
533+TERMS OF THE AGREEME NT THROUGH THE INCLU SION OF APPROPRIATE 6
534+PROVISIONS IN ALL RE LEVANT SOLICITATION AND CONTRACT DOCUMEN TS. 7
568535
569- (2) the cumulative net ratepayer impact exceeds the maximums provided
570-in subsection [(e)(1)(ii)2] (F)(1)(II)2 of this section.
536+ [(f)] (G) (1) An order the Commission issues approving a proposed offshore 8
537+wind project shall: 9
571538
572- [(h)] (I) (1) Within 60 days after the Commission approves the application of
573-a proposed offshore wind project, the qualified offshore wind project shall deposit
574-$2,000,000 into the Maryland Offshore Wind Business Development Fund established
575-under § 9–20C–03 of the State Government Article.
539+ (i) specify the OREC price schedule, which may not authorize an 10
540+OREC price greater than, for a Round 1 offshore wind project, $190 per megawatt–hour in 11
541+2012 dollars; 12
576542
577- (2) Within 1 year after the initial deposit under paragraph (1) of this
578-subsection, the qualified offshore wind project shall deposit an additional $2,000,000 into
579-the Maryland Offshore Wind Business Development Fund.
543+ (ii) specify the duration of the OREC pricing schedule, not to exceed 13
544+20 years; 14
580545
581- (3) Within 2 years after the initial deposit under paragraph (1) of this
582-subsection, the qualified offshore wind project shall deposit an additional $2,000,000 into
583-the Maryland Offshore Wind Business Development Fund.
546+ (iii) specify the number of ORECs the offshore wind project may sell 15
547+each year; 16
584548
585- [(i)] (J) (1) The findings and evidence relied on by the General Assembly for
586-the continuation of the Minority Business Enterprise Program under Title 14, Subtitle 3 of
587-the State Finance and Procurement Article are incorporated in this subsection.
549+ (iv) provide that: 17
588550
589- (2) To the extent practicable and authorized by the United States
590-Constitution, approved applicants for a proposed offshore wind project shall comply with
591-the State’s Minority Business Enterprise Program.
551+ 1. a payment may not be made for an OREC until electricity 18
552+supply is generated by the offshore wind project; and 19
592553
593- (3) (i) On or before 6 months after the issuance of an order approving
594-an OREC application, the Governor’s Office of Small, Minority, and Women Business
595-Affairs, in consultation with the Office of the Attorney General and an approved applicant,
596-shall establish a clear plan for setting reasonable and appropriate minority business
597-enterprise participation goals and procedures for each phase of the qualified offshore wind
598-project.
554+ 2. ratepayers, purchasers of ORECs, and the State shall be 20
555+held harmless for any cost overruns associated with the offshore wind project; and 21
599556
600- (ii) To the extent practicable, the goals and procedures specified in
601-subparagraph (i) of this paragraph shall be based on the requirements of Title 14, Subtitle
602-3 of the State Finance and Procurement Article and the regulations implementing that
603-subtitle.
557+ (v) require that any debt instrument issued in connection with a 22
558+qualified offshore wind project include language specifying that the debt instrument does 23
559+not establish a debt, obligation, or liability of the State. 24
604560
605- (iii) Every 6 months following the issuance of an order approving an
606-OREC application, an approved applicant shall submit a report on its progress establishing
607-and implementing minority business enterprise goals and procedures to the Commission.
561+ (2) An order approving a proposed offshore wind project vests the owner of 25
562+the qualified offshore wind project with the right to receive payments for ORECs according 26
563+to the terms in the order. 27
608564
609- (4) On and after July 1, 2023, the provisions of this subsection and any
610-regulations adopted in accordance with this subsection shall be of no effect and may not be
611-enforced. Ch. 95 2023 LAWS OF MARYLAND
565+ (3) On or before March 1 each year, the Commission shall report to the 28
566+Governor and, in accordance with § 2–1257 of the State Government Article, to the Senate 29
567+Finance Committee ON EDUCATION, ENERGY, AND THE ENVIRONMENT and the House 30
568+Economic Matters Committee on: 31
612569
613-– 14 –
570+ (i) compliance by applicants with the minority business enterprise 32
571+participation goals under subsection [(d)(4)] (E)(4) of this section; and 33
572+ SENATE BILL 781 13
614573
615- (K) (1) A DEVELOPER OF A ROUND 1 OFFSHORE WIND PROJEC T OR
616-ROUND 2 OFFSHORE WIND PROJEC T APPROVED UNDER THI S SECTION MAY APPLY
617-TO THE COMMISSION FOR AN A FULL OR PARTIAL EXEMPTION FROM THE
618-REQUIREMENTS IN SUBS ECTION (C)(8)(II) OF THIS SECTION FOR ANY FEDERAL
619-INFLATION REDUCTION ACT OF 2022 GRANTS, REBATES, TAX CREDITS, OR LOAN
620-GUARANTEES RECEIVED BY THE PROJECT IF AT LEAST 15% OF THE TOTAL LABOR
621-HOURS OF CONSTRUCTIO N, ALTERATION, OR REPAIR WORK FOR T HE PROJECT ,
622-INCLUDING ANY CONSTRUCTION , ALTERATION, OR REPAIR WORK PERFO RMED BY A
623-CONTRACTOR OR SUBCON TRACTOR, IS PERFORMED BY QUAL IFIED APPRENTICES
624-CONSISTENT WITH FEDE RAL LAW.
625574
626- (2) A DEVELOPER SEEKING AN EXEMPTION UNDER PARA GRAPH (1)
627-OF THIS SUBSECTION S HALL CERTIFY THAT TH E EXEMPTION IS REQUIRED TO
628-FULFILL THE DEVELOPE R’S OBLIGATIONS UNDER AN APPROVED OREC ORDER.
575+ (ii) with respect to the community benefit agreement under 1
576+subsection [(e)(1)] (F)(1) of this section: 2
629577
630- (3) THE COMMISSION SHALL :
578+ 1. the availability and use of opportunities for local 3
579+businesses and small, minority, women–owned, and veteran–owned businesses; 4
631580
632- (I) ESTABLISH AN APPLICA TION PROCESS FOR A D EVELOPER
633-TO APPLY FOR AN EXEM PTION UNDER PARAGRAP H (1) OF THIS SUBSECTION ;
581+ 2. the success of efforts to promote career training 5
582+opportunities in the MANUFACTURING , MAINTENANCE , AND construction [industry] 6
583+INDUSTRIES for local residents, veterans, women, and minorities; and 7
634584
635- (II) SUBJECT TO PARAGRAPH (4) OF THIS SUBSECTION ,
636-APPROVE, DENY, OR REQUEST ADDITIONA L INFORMATION REGARD ING AN
637-APPLICATION SUBMITTE D UNDER THIS SUBSECT ION WITHIN 45 60 DAYS AFTER
638-RECEIPT OF THE APPLI CATION;
585+ 3. compliance with the minority workforce goal under 8
586+subsection [(e)(1)(i)5] (F)(1)(I)5 of this section. 9
639587
640- (III) IN EVALUATING AN APP LICATION SUBMITTED U NDER THIS
641-SUBSECTION, TAKE INTO CONSIDERAT ION THE POTENTIAL BE NEFITS AND IMPACTS
642-OF APPROVING THE APP LICATION, INCLUDING:
588+ [(g)] (H) For Round 2 offshore wind project applications, the Commission shall 10
589+approve OREC orders representing a minimum of 400 megawatts of nameplate capacity 11
590+proposed during each application period unless: 12
643591
644- 1. THE STATE’S GOALS FOR DEVELOPI NG OFFSHORE
645-WIND ENERGY ;
592+ (1) not enough Round 2 offshore wind project applications are submitted to 13
593+meet the net benefit test under subsection (c)(3) of this section; or 14
646594
647- 2. WORKFORCE AND SUPPLY CHAIN IMPACTS ; AND
595+ (2) the cumulative net ratepayer impact exceeds the maximums provided 15
596+in subsection [(e)(1)(ii)2] (F)(1)(II)2 of this section. 16
648597
649- 3. THE RISK THAT PRICE INFLATION MAY HAVE O N
650-ACHIEVING THE STATE’S OFFSHORE WIND ENER GY GOALS; AND
598+ [(h)] (I) (1) Within 60 days after the Commission approves the application of 17
599+a proposed offshore wind project, the qualified offshore wind project shall deposit 18
600+$2,000,000 into the Maryland Offshore Wind Business Development Fund established 19
601+under § 9–20C–03 of the State Government Article. 20
651602
652- (IV) KEEP ANY PROPRIETARY INFORMATION SUBMITTE D BY AN
653-APPLICANT CONFIDENTI AL.
603+ (2) Within 1 year after the initial deposit under paragraph (1) of this 21
604+subsection, the qualified offshore wind project shall deposit an additional $2,000,000 into 22
605+the Maryland Offshore Wind Business Development Fund. 23
654606
655- (4) A REQUEST MADE BY THE COMMISSION FOR ADDITI ONAL
656-INFORMATION UNDER PA RAGRAPH (3)(II) OF THIS SUBSECTION SHALL RES TART A WES MOORE, Governor Ch. 95
607+ (3) Within 2 years after the initial deposit under paragraph (1) of this 24
608+subsection, the qualified offshore wind project shall deposit an additional $2,000,000 into 25
609+the Maryland Offshore Wind Business Development Fund. 26
657610
658-– 15 –
659-NEW 45–DAY PERIOD OF REVIEW IF THE COMMISSION APPROVES A PARTIAL
660-EXEMPTION UNDER PARA GRAPH (1) OF THIS SUBSECTION , THE NONEXEMPT VALUE
661-OF ANY FEDERAL INFLATION REDUCTION ACT OF 2022 GRANTS, REBATES, TAX
662-CREDITS, OR LOAN GUARANTE ES RECEIVED BY THE P ROJECT SHALL BE PASS ED
663-ALONG TO RATEPAYERS .
611+ [(i)] (J) (1) The findings and evidence relied on by the General Assembly for 27
612+the continuation of the Minority Business Enterprise Program under Title 14, Subtitle 3 of 28
613+the State Finance and Procurement Article are incorporated in this subsection. 29
664614
665-7–704.3.
615+ (2) To the extent practicable and authorized by the United States 30
616+Constitution, approved applicants for a proposed offshore wind project shall comply with 31
617+the State’s Minority Business Enterprise Program. 32
666618
667- (A) THE GENERAL ASSEMBLY FINDS AND DE CLARES THAT IT IS IN THE
668-PUBLIC INTEREST TO U PGRADE AND EXPAND TH E TRANSMISSION SYSTE M TO
669-ACCOMMODATE THE BUIL DOUT OF AT LEAST 8,500 MEGAWATTS OF OFFSHORE WIND
670-ENERGY FROM QUALIFIE D OFFSHORE WIND PROJ ECTS SERVING THE STATE BY
671-2031.
619+ (3) (i) On or before 6 months after the issuance of an order approving 33
620+an OREC application, the Governor’s Office of Small, Minority, and Women Business 34 14 SENATE BILL 781
672621
673- (B) (1) (I) TO MEET THE GOAL GOALS ESTABLISHED UNDER § 7–703 OF
674-THIS SUBTITLE AND SUBSECTION (A) OF THIS SECTION , THE COMMISSION, IN
675-CONSULTATION WITH TH E MARYLAND ENERGY ADMINISTRATION AND PJM
676-INTERCONNECTION , SHALL REQUEST THAT PJM INTERCONNECTION CONDUCT AN
677-ANALYSIS OF TRANSMIS SION SYSTEM UPGRADE AND EXPANSION OPTIONS THAT
678-TAKE INTO CONSIDERAT ION BOTH ONSHORE AND OFFSHORE INFRASTRUCT URE.
679622
680- (II) IN CONDUCTING THE ANALYSIS REQUIRED UN DER
681-SUBPARAGRAPH (I) OF THIS PARAGRAPH , THE
623+Affairs, in consultation with the Office of the Attorney General and an approved applicant, 1
624+shall establish a clear plan for setting reasonable and appropriate minority business 2
625+enterprise participation goals and procedures for each phase of the qualified offshore wind 3
626+project. 4
682627
683- (2) THE COMMISSION:
628+ (ii) To the extent practicable, the goals and procedures specified in 5
629+subparagraph (i) of this paragraph shall be based on the requirements of Title 14, Subtitle 6
630+3 of the State Finance and Procurement Article and the regulations implementing that 7
631+subtitle. 8
684632
685- (I) SHALL CONSULT WITH O THER STATES SERVED B Y PJM
686-INTERCONNECTION TO EV ALUATE REGIONAL TRAN SMISSION COOPERATION THAT
687-COULD HELP ACHIEVE T HE STATE’S RENEWABLE ENERGY AND OFFSHORE WIND
688-ENERGY GOALS WITH GR EATER EFFICIENCY ;
633+ (iii) Every 6 months following the issuance of an order approving an 9
634+OREC application, an approved applicant shall submit a report on its progress establishing 10
635+and implementing minority business enterprise goals and procedures to the Commission. 11
689636
690- (II) SHALL WORK WITH PJM INTERCONNECTION TO EN SURE
691-THAT THE ANALYSIS RE QUESTED UNDER PARAGR APH (1) OF THIS SUBSECTION
692-INCLUDES AN ANALYSIS OF SOLUTIONS THAT :
637+ (4) On and after July 1, 2023, the provisions of this subsection and any 12
638+regulations adopted in accordance with this subsection shall be of no effect and may not be 13
639+enforced. 14
693640
694- 1. USE AN OPEN –ACCESS COLLECTOR TRANSMISSI ON
695-SYSTEM TO ALLOW FOR THE INTERCONNECTION OF MULTIPLE QUALIFIE D
696-OFFSHORE WIND PROJEC TS AT A SINGLE SUBST ATION;
641+ (K) (1) A DEVELOPER OF A ROUND 1 OFFSHORE WIND PROJEC T OR 15
642+ROUND 2 OFFSHORE WIND PROJEC T APPROVED UNDER THIS SE CTION MAY APPLY 16
643+TO THE COMMISSION FOR AN A FULL OR PARTIAL EXEMPTION FROM THE 17
644+REQUIREMENTS IN SUBS ECTION (C)(8)(II) OF THIS SECTION FOR ANY FEDERAL 18
645+INFLATION REDUCTION ACT OF 2022 GRANTS, REBATES, TAX CREDITS, OR LOAN 19
646+GUARANTEES RECEIVE D BY THE PROJECT IF AT LEAST 15% OF THE TOTAL LABOR 20
647+HOURS OF CONSTRUCTIO N, ALTERATION, OR REPAIR WORK FOR T HE PROJECT , 21
648+INCLUDING ANY CONSTR UCTION, ALTERATION, OR REPAIR WORK PERFO RMED BY A 22
649+CONTRACTOR OR SUBCON TRACTOR, IS PERFORMED BY QUAL IFIED APPRENTICES 23
650+CONSISTENT WITH FEDE RAL LAW. 24
697651
698- 2. AVOID A SIGNIFICANT OUTAGE, OR SINGLE
699-CONTINGENCY , OF ANY PART OF THE T RANSMISSION SYSTEM ;
652+ (2) A DEVELOPER SEEKING AN EXEMPTION UNDER PARA GRAPH (1) 25
653+OF THIS SUBSECTION S HALL CERTIFY THAT TH E EXEMPTION IS REQUI RED TO 26
654+FULFILL THE DEVELOPE R’S OBLIGATIONS UNDER AN APPROVED OREC ORDER. 27
700655
701- 3. REDUCE PERMITTING RISKS, IMPACTS ON
702-COMMUNITIES , AND UNNECESSARY HIGH COSTS; Ch. 95 2023 LAWS OF MARYLAND
656+ (3) THE COMMISSION SHALL : 28
703657
704-– 16 –
658+ (I) ESTABLISH AN APPLICA TION PROCESS FOR A D EVELOPER 29
659+TO APPLY FOR AN EXEM PTION UNDER PARAGRAP H (1) OF THIS SUBSECTION ; 30
705660
706- 4. LEVERAGE EXISTING IN FRASTRUCTURE ;
661+ (II) SUBJECT TO PARAGRAPH (4) OF THIS SUBSECTION , 31
662+APPROVE, DENY, OR REQUEST ADDITIONA L INFORMATION REGARD ING AN 32
663+APPLICATION SUBMITTE D UNDER THIS SUBSECT ION WITHIN 45 60 DAYS AFTER 33
664+RECEIPT OF THE APPLI CATION; 34
665+ SENATE BILL 781 15
707666
708- 5. OFFER BENEFITS THAT ADDRESS ADDITIONAL G RID
709-CHALLENGES ; AND
710667
711- 6. ADDRESS ANY OTHER IS SUES THAT THE COMMISSION
712-IDENTIFIES; AND
668+ (III) IN EVALUATING AN APP LICATION SUBMITTED U NDER THIS 1
669+SUBSECTION, TAKE INTO CONSIDERAT ION THE POTENTIAL BE NEFITS AND IMPACTS 2
670+OF APPROVING THE APP LICATION, INCLUDING: 3
713671
714- (III) MAY ALSO CONSULT WITH OWNERS OF TRANSMISSION
715-FACILITIES IN THE STATE TO GATHER RELEVANT T ECHNICAL INFORMATION .
672+ 1. THE STATE’S GOALS FOR DEVELOPI NG OFFSHORE 4
673+WIND ENERGY ; 5
716674
717- (2) (3) THE COMMISSION MAY ENTER INTO ANY NECESSARY
718-AGREEMENTS WITH PJM INTERCONNECTION FOR T RANSMISSION PLANNING TO:
675+ 2. WORKFORCE AND SUPPLY CHAIN IMPACTS ; AND 6
719676
720- (I) FURTHER THE COMMISSION’S INITIATE PJM
721-INTERCONNECTION ’S ANALYSIS; OR
677+ 3. THE RISK THAT PRICE INFLATION MAY HAVE O N 7
678+ACHIEVING THE STATE’S OFFSHORE WIND ENER GY GOALS; AND 8
722679
723- (II) ASSIST WITH THE SOLI CITATION OF PROPOSAL S FOR
724-OFFSHORE WIND TRANSM ISSION PROJECTS .
680+ (IV) KEEP ANY PROPRIETARY INFORMATION SUBMITT ED BY AN 9
681+APPLICANT CONFIDENTI AL. 10
725682
726- (3) (4) ON OR BEFORE JULY 1, 2024, THE COMMISSION SHALL
727-SUBMIT ITS COMPLETED A STATUS UPDATE ON T HE ANALYSIS REQUESTED UNDER
728-PARAGRAPH (1) OF THIS SUBSECTION TO THE GENERAL ASSEMBLY, IN
729-ACCORDANCE WITH § 2–1257 OF THE STATE GOVERNMENT ARTICLE.
683+ (4) A REQUEST MADE BY THE COMMISSION FOR ADDITI ONAL 11
684+INFORMATION UNDER PA RAGRAPH (3)(II) OF THIS SUBSECTION S HALL RESTART A 12
685+NEW 45–DAY PERIOD OF REVIEW IF THE COMMISSION APPROVES A PARTIAL 13
686+EXEMPTION UNDER PARA GRAPH (1) OF THIS SUBSECTION , THE NONEXEMPT VALUE 14
687+OF ANY FEDERAL INFLATION REDUCTION ACT OF 2022 GRANTS, REBATES, TAX 15
688+CREDITS, OR LOAN GUARANTEES R ECEIVED BY THE PROJE CT SHALL BE PASSED 16
689+ALONG TO RATEPAYERS . 17
730690
731- (C) (1) ON OR BEFORE DECEMBER 1, 2024 JULY 1, 2025, THE
732-COMMISSION SHALL ISSU E, OR REQUEST THAT PJM INTERCONNECTIO N ISSUE, ONE
733-OR MORE COMPETITIVE SOLICITATIONS FOR PR OPOSALS FOR OPEN ACC ESS
734-OFFSHORE WIND TRANSM ISSION FACILITIES AN D NECESSARY COMPLEMENTARY
735-ONSHORE TRANSMISSION UPGRADES AND EXPANSI ONS.
691+7–704.3. 18
736692
737- (2) THE COMMISSION MAY ISSUE , OR REQUEST THAT PJM
738-INTERCONNECTION ISSUE , FURTHER SOLICITATION S FOR PROPOSALS AFTE R THIS
739-DATE IF DETERMINED N ECESSARY BY THE COMMISSION.
693+ (A) THE GENERAL ASSEMBLY FINDS AND DE CLARES THAT IT IS IN THE 19
694+PUBLIC INTEREST TO U PGRADE AND EXPAND TH E TRANSMISSION SYSTE M TO 20
695+ACCOMMODATE THE BUIL DOUT OF AT LEAST 8,500 MEGAWATTS OF OFFSHOR E WIND 21
696+ENERGY FROM QUALIFIE D OFFSHORE WIND PROJ ECTS SERVING THE STATE BY 22
697+2031. 23
740698
741- (D) IN DEVELOPING CRITERI A FOR SELECTING A PR OPOSAL UNDER THIS
742-SECTION, THE COMMISSION:
699+ (B) (1) (I) TO MEET THE GOAL GOALS ESTABLISHED UNDER § 7–703 OF 24
700+THIS SUBTITLE AND SUBSECTION (A) OF THIS SECTION , THE COMMISSION, IN 25
701+CONSULTATION WITH TH E MARYLAND ENERGY ADMINISTRATION AND PJM 26
702+INTERCONNECTION , SHALL REQUEST THAT PJM INTERCONNECTION CONDUCT AN 27
703+ANALYSIS OF TRANSMIS SION SYSTEM UPGRADE AND EXPANSION OPTIONS THAT 28
704+TAKE INTO CONSIDERAT ION BOTH ONSHORE AND OFFSHORE INFRASTRUCT URE. 29
743705
744- (1) SHALL CONSIDER THE A NALYSIS REQUIRED UND ER SUBSECTION
745-(B) OF THIS SECTION , INCLUDING A CONSIDER ATION OF POTENTIAL
746-INTERCONNECTION POIN TS AND CABLE ROUTES ;
747- WES MOORE, Governor Ch. 95
706+ (II) IN CONDUCTING THE ANA LYSIS REQUIRED UNDER 30
707+SUBPARAGRAPH (I) OF THIS PARAGRAPH , THE 31
748708
749-– 17 –
750- (2) SHALL EVALUATE THE P OTENTIAL FOR COOPERA TING WITH
751-OTHER STATES IN THE PJM REGION TO MAXIMIZE C ONSUMER BENEFITS THA T WILL
752-BEST ACHIEVE T HE STATE’S RENEWABLE ENERGY AND OFFSHORE WIND ENERGY
753-GOALS; AND
709+ (2) THE COMMISSION: 32
710+ 16 SENATE BILL 781
754711
755- (3) MAY CONSULT WITH THE ADMINISTRATION , ELECTRIC
756-COMPANIES, TRANSMISSION FACILIT Y OWNERS, AND OTHER STATES OR ENTITIES
757-DESIGNATED BY THOSE STATES IN DEVELOPING OR COORDINATING EQUI VALENT
758-STANDARDS FOR THE APP ROVAL OF TRANSMISSIO N PROJECTS UNDER THI S
759-SECTION THAT WILL FA CILITATE THE INTEGRA TION OF MULTIPLE OFF SHORE WIND
760-ENERGY PROJECTS AND POTENTIAL MULTISTATE OFFSHORE WIND TRANSM ISSION
761-PROJECTS.
762712
763- (E) (1) THE COMMISSION SHALL INCL UDE, OR WORK WITH PJM
764-INTERCONNECTION TO IN CLUDE, SPECIFICATIONS IN TH E SOLICITATION THAT
765-REQUIRE PROPOSALS TO :
713+ (I) SHALL CONSULT WITH O THER STATES SERVED BY PJM 1
714+INTERCONNECTION TO EV ALUATE REGIONAL TRAN SMISSION COOPERATION THAT 2
715+COULD HELP ACHIEVE T HE STATE’S RENEWABLE ENERGY A ND OFFSHORE WIND 3
716+ENERGY GOALS WITH GR EATER EFFICIENCY ; 4
766717
767- (I) ALLOW FUTURE TRANSMI SSION LINES TO CONNE CT IN A
768-MESHED MANNER AND SH ARE LANDING POINTS ;
718+ (II) SHALL WORK WITH PJM INTERCONNECTION TO EN SURE 5
719+THAT THE ANALYSIS REQUESTED U NDER PARAGRAPH (1) OF THIS SUBSECTION 6
720+INCLUDES AN ANALYSIS OF SOLUTIONS THAT : 7
769721
770- (II) CONSIDER OTHER ONSHO RE AND OFFSHORE CLEA N
771-ENERGY GENERATION AN D STORAGE FACILITIES ; AND
722+ 1. USE AN OPEN –ACCESS COLLECTOR TRA NSMISSION 8
723+SYSTEM TO ALLOW FOR THE INTERCONNECTION OF MULTIPLE QUALIFIE D 9
724+OFFSHORE WIND PROJEC TS AT A SINGLE SUBSTATION; 10
772725
773- (III) INCORPORATE COMMUNIT Y BENEFIT AGREEMENTS IN
774-ACCORDANCE WITH § 7–704.1 OF THIS SUBTITLE;
726+ 2. AVOID A SIGNIFICANT OUTAGE, OR SINGLE 11
727+CONTINGENCY , OF ANY PART OF THE T RANSMISSION SYSTEM ; 12
775728
776- (IV) ADDRESS THE SITING , ENVIRONMENTAL , AND
777-SOCIOECONOMIC INFORM ATION REQUIRED TO BE C ONSIDERED BY THE
778-COMMISSION UNDER § 7–207 OF THIS TITLE FOR AN APPLICATION FOR A
779-CERTIFICATE OF PUBLI C CONVENIENCE AND NE CESSITY, INCLUDING
780-OPPORTUNITIES FOR PU BLIC ENGAGEMENT AND COMMENT WITH UNITS O F STATE
781-AND LOCAL GOVERNMENT AND THE GENERAL PUBLIC ;
729+ 3. REDUCE PERMITTING RI SKS, IMPACTS ON 13
730+COMMUNITIES , AND UNNECESSARY HIGH COSTS; 14
782731
783- (V) DEMONSTRATE NET BENE FITS TO RATEPAYERS I N THE
784-STATE WHEN COMPARED W ITH AN ALTERNATIVE B ASELINE SCENARIO UND ER WHICH
785-8,500 MEGAWATTS OF OFFSHOR E WIND ENERGY CAPACI TY IS CONNECTED TO PJM
786-INTERCONNECTION INDEP ENDENT OF AN OFFSHOR E WIND TRANSMISSION PR OJECT
787-TO ACHIEVE THE GOAL ESTABLISHED UNDER § 7–704.1(A)(1)(I) OF THIS SUBTITLE ;
788-AND
732+ 4. LEVERAGE EXISTING IN FRASTRUCTURE ; 15
789733
790- (V) (VI) ENSURE A COMPETITIVE BIDDING PROCESS BY
791-REDACTING PROPRIETAR Y INFORMATION PROVID ED TO THE COMMISSION OR TO
792-PJM INTERCONNECTION .
793- Ch. 95 2023 LAWS OF MARYLAND
734+ 5. OFFER BENE FITS THAT ADDRESS AD DITIONAL GRID 16
735+CHALLENGES ; AND 17
794736
795-– 18 –
796- (2) THE COMMISSION MAY CONSIDER EVALUATE, OR REQUEST THAT
797-PJM INTERCONNECTION ASSIS T WITH THE EVALUATIO N OF, PROPOSALS THAT
798-INCLUDE:
737+ 6. ADDRESS ANY OTHER IS SUES THAT THE COMMISSION 18
738+IDENTIFIES; AND 19
799739
800- (I) UPGRADING THE EXISTI NG TRANSMISSION GRID ;
740+ (III) MAY ALSO CONSULT WITH OWNERS OF TRANSMISSION 20
741+FACILITIES IN THE STATE TO GATHER RELEVANT T ECHNICAL INFORMATION . 21
801742
802- (II) EXTENDING THE EXISTI NG TRANSMISSION GRID ONSHORE
803-AND OFFSHORE TO BE CLOSER TO OFFSHORE W IND ENERGY LOCATIONS ;
743+ (2) (3) THE COMMISSION MAY ENTER INTO ANY NECESSARY 22
744+AGREEMENTS WITH PJM INTERCONNECTION FOR T RANSMISSION PLANNING TO: 23
804745
805- (III) INTERCONNECTING BETW EEN OFFSHORE SUBSTAT IONS;
746+ (I) FURTHER THE COMMISSION’S INITIATE PJM 24
747+INTERCONNECTION ’S ANALYSIS; OR 25
806748
807- (IV) ADDING ENERGY STORAG E; AND
749+ (II) ASSIST WITH THE SOLI CITATION OF PROPOSAL S FOR 26
750+OFFSHORE WIND TRANSMISSION PROJECT S. 27
808751
809- (V) THE USE OF HVDC CONVERTER TECHNOLOGY TO SUPPORT
810-POTENTIAL WEAKNESSES IN THE TRANSMISSION GRID.
752+ (3) (4) ON OR BEFORE JULY 1, 2024, THE COMMISSION SHALL 28
753+SUBMIT ITS COMPLETED A STATUS UPDATE ON T HE ANALYSIS REQUESTED UNDER 29
754+PARAGRAPH (1) OF THIS SUBSECTION TO THE GENERAL ASSEMBLY, IN 30
755+ACCORDANCE WITH § 2–1257 OF THE STATE GOVERNMENT ARTICLE. 31
756+ SENATE BILL 781 17
811757
812- (3) THE COMMISSION MAY SELECT A PROP OSAL OR PROPOSALS TH AT
813-INCLUDE:
814758
815- (I) FEDERAL FUNDING IN T HE FORM OF A MATCH , GRANT,
816-LOAN, OR OWNERSHIP AND OPE RATION BY THE UNITED STATES GOVERNMENT ;
759+ (C) (1) ON OR BEFORE DECEMBER 1, 2024 JULY 1, 2025, THE 1
760+COMMISSION SHALL ISSU E, OR REQUEST THAT PJM INTERCONNECTION ISSUE , ONE 2
761+OR MORE COMPETITIVE SOLICITATIONS FOR PR OPOSALS FOR OPEN ACC ESS 3
762+OFFSHORE WIND TRANSM ISSION FACILITIES AN D NECESSARY COMPLEMENTARY 4
763+ONSHORE TRANSMISSION UPGRADES AND EXPANSI ONS. 5
817764
818- (II) COST SHARING AMONG S TATES OR RECOVERY OF
819-TRANSMISSION COSTS T HROUGH FEDERAL TRANSMISSION RATES, CONSISTENT
820-WITH THE POLICIES AN D TARIFFS OF THE FEDERAL ENERGY REGULATORY
821-COMMISSION;
765+ (2) THE COMMISSION MAY ISSUE , OR REQUEST THAT PJM 6
766+INTERCONNECTION ISSUE , FURTHER SOLICITATION S FOR PROPOSALS AFTE R THIS 7
767+DATE IF DETERMINED N ECESSARY BY THE COMMISSION. 8
822768
823- (III) A COMBINATION OF THE FUNDING METHODS OUTL INED IN
824-ITEMS (I) AND (II) OF THIS PARAGRAPH ; OR
769+ (D) IN DEVELOPING CRITERIA FOR SE LECTING A PROPOSAL U NDER THIS 9
770+SECTION, THE COMMISSION: 10
825771
826- (IV) ANY OTHER AVAILABLE FUNDING MECHANISMS .
772+ (1) SHALL CONSIDER THE A NALYSIS REQUIRED UND ER SUBSECTION 11
773+(B) OF THIS SECTION , INCLUDING A CONSIDER ATION OF POTENTIAL 12
774+INTERCONNECTION POIN TS AND CABLE ROUTES ; 13
827775
828- (4) EACH PROPOSAL SHOULD MAXIMIZE ACCESS TO A ND BE
829-CONSISTENT WITH THE TERMS OF THE U.S. DEPARTMENT OF ENERGY FUNDING
830-PROGRAMS, INCLUDING THOSE ESTA BLISHED:
776+ (2) SHALL EVALUA TE THE POTENTIAL FOR COOPERATING WITH 14
777+OTHER STATES IN THE PJM REGION TO MAXIMIZE C ONSUMER BENEFITS THA T WILL 15
778+BEST ACHIEVE THE STATE’S RENEWABLE ENERGY AND OFFSHORE WIND ENERGY 16
779+GOALS; AND 17
831780
832- (I) UNDER THE FEDERAL INFRASTRUCTURE INVESTMENT AND
833-JOBS ACT;
781+ (3) MAY CONSULT WITH THE ADMINISTRATION , ELECTRIC 18
782+COMPANIES, TRANSMISSION FACILITY OWN ERS, AND OTHER STATES OR ENTITIES 19
783+DESIGNATED BY THOSE STATES IN DEVELOPING OR COORDINATING EQUI VALENT 20
784+STANDARDS FOR THE AP PROVAL OF TRANSMISSI ON PROJECTS UNDER TH IS 21
785+SECTION THAT WILL FA CILITATE THE INTEGRA TION OF MULTIPLE OFF SHORE WIND 22
786+ENERGY PROJECTS AND POTENTIAL MULTISTATE OFFSHORE WIND TRANSM ISSION 23
787+PROJECTS. 24
834788
835- (II) UNDER THE FEDERAL INFLATION REDUCTION ACT OF
836-2022;
789+ (E) (1) THE COMMISSION SHALL INCL UDE, OR WORK WITH PJM 25
790+INTERCONNECTION TO IN CLUDE, SPECIFICATIONS IN TH E SOLICITATION THAT 26
791+REQUIRE PROPOSALS TO : 27
837792
838- (III) THROUGH THE U.S. DEPARTMENT OF ENERGY
839-TRANSMISSION FACILITATION PROGRAM; AND WES MOORE, Governor Ch. 95
793+ (I) ALLOW FUTURE TRANSMISSION LINES T O CONNECT IN A 28
794+MESHED MANNER AND SH ARE LANDING POINTS ; 29
840795
841-– 19 –
796+ (II) CONSIDER OTHER ONSHO RE AND OFFSHORE CLEA N 30
797+ENERGY GENERATION AN D STORAGE FACILITIES ; AND 31
842798
843- (IV) THROUGH ANY LOAN PRO GRAMS, OFFICE PROGRAMS , OR
844-RESILIENCY FUNDING .
799+ (III) INCORPORATE COMMUNIT Y BENEFIT AGREEMENTS IN 32
800+ACCORDANCE WITH § 7–704.1 OF THIS SUBTITLE; 33
801+ 18 SENATE BILL 781
845802
846- (5) (I) EACH PROPOSAL SHALL I NCLUDE A COST –BENEFIT
847-ANALYSIS TO DEMONSTR ATE THE OVERALL BENE FITS OF THE PROPOSAL TO THE
848-STATE AND TO RATEPAYE RS.
849803
850- (II) THE COST –BENEFIT ANALYSIS REQ UIRED UNDER
851-SUBPARAGRAPH (I) OF THIS PARAGRAPH SH ALL INCLUDE AN ASSES SMENT OF
852-POTENTIAL COST ALLOC ATION BETWEEN STATES .
804+ (IV) ADDRESS THE SITING , ENVIRONMENTAL , AND 1
805+SOCIOECONOMIC INFORM ATION REQUIRED TO BE CONSIDERED BY THE 2
806+COMMISSION UNDER § 7–207 OF THIS TITLE FOR AN APPLICATION FOR A 3
807+CERTIFICATE OF PUBLI C CONVENIENCE AND NE CESSITY, INCLUDING 4
808+OPPORTUNITIE S FOR PUBLIC ENGAGEM ENT AND COMMENT WITH UNITS OF STATE 5
809+AND LOCAL GOVERNMENT AND THE GENERAL PUBL IC; 6
853810
854- (F) THE SOLICITATION PROC ESS SHALL:
811+ (V) DEMONSTRATE NET BENE FITS TO RATEPAYERS I N THE 7
812+STATE WHEN COMPARED W ITH AN ALTERNATIVE B ASELINE SCENARIO UND ER WHICH 8
813+8,500 MEGAWATTS OF OFFSHOR E WIND ENERGY CAPACITY IS CONNECTED TO PJM 9
814+INTERCONNECTION INDEP ENDENT OF AN OFFSHOR E WIND TRANSMISSION PROJECT 10
815+TO ACHIEVE THE GOAL ESTABLISHED UNDER § 7–704.1(A)(1)(I) OF THIS SUBTITLE ; 11
816+AND 12
855817
856- (1) INCLUDE A PREQUALIFI CATION PROCESS TO EN SURE THE
857-FINANCIAL AND TECHNI CAL COMPETENCE AND C APABILITIES OF THE E NTITIES
858-RESPONDING TO THE SO LICITATION FOR PROPO SALS;
818+ (V) (VI) ENSURE A COMPETITIVE BIDDING PROCESS BY 13
819+REDACTING PROP RIETARY INFORMATION PROVIDED TO THE COMMISSION OR TO 14
820+PJM INTERCONNECTION . 15
859821
860- (2) PROVIDE FOR RIGOROUS SEPARATION BETWEEN INDIVIDUALS OR
861-FIRMS PARTICIPATING IN THE REVIEW , ANALYSIS, AND SELECTION OF THE
862-PROPOSALS BY OR ON B EHALF OF THE COMMISSION AND THOSE PARTICIPATING IN
863-THE DEVELOPMENT OR M ANAGEMENT OF PROPOSA LS; AND
822+ (2) THE COMMISSION MAY CONSIDER EVALUATE, OR REQUEST THAT 16
823+PJM INTERCONNECTION ASSIS T WITH THE EVALUATIO N OF, PROPOSALS THAT 17
824+INCLUDE: 18
864825
865- (3) PROMOTE RIGOROUS COM PETITION AMONG PREQU ALIFIED
866-ENTITIES IN THE PREPA RATION AND SUBMISSIO N OF THEIR PROPOSALS .
826+ (I) UPGRADING THE EXISTI NG TRANSMISSION GRID; 19
867827
868- (G) THE COMMISSION MAY MODIFY , OR REQUEST THAT PJM
869-INTERCONNECTION MODIF Y, A SOLICITATION FOR P ROPOSALS AT ANY TIME IN
870-ORDER TO SATISFY ELI GIBILITY CRITERIA FO R U.S. DEPARTMENT OF ENERGY
871-FUNDING PROGRAMS .
828+ (II) EXTENDING THE EXISTI NG TRANSMISSION GRID ONSHORE 20
829+AND OFFSHORE TO BE CLOSER TO OFFS HORE WIND ENERGY LOC ATIONS; 21
872830
873- (H) IN SELECTING A PROPOS AL UNDER THIS SECTIO N, THE COMMISSION
874-SHALL TAKE INTO CONS IDERATION THE TOTAL AMOUNT OF NEW TRANSM ISSION
875-INFRASTRUCTURE NEEDE D TO:
831+ (III) INTERCONNECTING BETW EEN OFFSHORE SUBSTAT IONS; 22
876832
877- (1) MAINTAIN ELECTRIC SY STEM RELIABILITY ;
833+ (IV) ADDING ENERGY STORAG E; AND 23
878834
879- (2) AVOID UNNECESSARY UP GRADE COSTS T O THE EXISTING
880-TRANSMISSION GRID ;
835+ (V) THE USE OF HVDC CONVERTER TECHN OLOGY TO SUPPORT 24
836+POTENTIAL WEAKNESSES IN THE TRANSMISSION GRID. 25
881837
882- (3) ACHIEVE THE STATE’S OFFSHORE WIND , RENEWABLE ENERGY ,
883-AND DECARBONIZATION GOALS;
884- Ch. 95 2023 LAWS OF MARYLAND
838+ (3) THE COMMISSION MAY SELECT A PROPOSAL OR PROPOS ALS THAT 26
839+INCLUDE: 27
885840
886-– 20 –
887- (4) (3) OBTAIN DEMONSTRABLE BENEFITS TO THE CONS UMER AND
888-ENVIRONMENT ; AND
841+ (I) FEDERAL FUNDING IN T HE FORM OF A MATCH , GRANT, 28
842+LOAN, OR OWNERSHIP AND OPE RATION BY THE UNITED STATES GOVERNMENT ; 29
889843
890- (5) (4) FOSTER ECONOMIC DEVE LOPMENT AND JOB CREA TION IN
891-THE STATE.
844+ (II) COST SHARING AMONG S TATES OR RECOVERY OF 30
845+TRANSMISSION COSTS T HROUGH FEDERAL TRANS MISSION RATES , CONSISTENT 31
846+WITH THE POLICIES AN D TARIFFS OF THE FEDERAL ENERGY REGULATORY 32
847+COMMISSION; 33 SENATE BILL 781 19
892848
893- (I) THE COMMISSION SHALL :
894849
895- (1) EVALUATE REQUEST THAT PJM INTERCONNECTION ASSIS T WITH
896-THE EVALUATION OF EACH PROPOSAL SUBMIT TED IN ACCORDANCE WI TH THIS
897-SECTION; AND
898850
899- (2) AFTER NOTICE , ONE OR MORE HEARINGS TO RECEIVE PUBLIC
900-COMMENT, AND AN EVIDENTIARY H EARING, AND SUBJECT TO SUBSE CTION (J) OF
901-THIS SECTION, ON OR BEFORE JULY DECEMBER 1, 2026 2027, BY ORDER, SELECT A
902-PROPOSAL OR PROPOSAL S FOR DEVELOPMENT :
851+ (III) A COMBINATION OF THE FUNDING METHODS OUTL INED IN 1
852+ITEMS (I) AND (II) OF THIS PARAGRAPH ; OR 2
903853
904- (I) USING A FUNDING MECH ANISM OR COMBINATION OF
905-FUNDING MECHANISMS I DENTIFIED IN SUBSECTION (E)(3) OF THIS SECTION; AND
854+ (IV) ANY OTHER AVAILABLE FUNDING MECHANISMS . 3
906855
907- (II) THAT DEMONSTRATE NET BENEFITS TO RATEPAYE RS IN THE
908-STATE WHEN COMPARED W ITH AN ALTERNATIVE B ASELINE SCENARIO UND ER
909-SUBSECTION (E)(1)(V) OF THIS SECTION.
856+ (4) EACH PROPOSAL SHOULD MAXIMIZE ACCESS TO A ND BE 4
857+CONSISTENT WITH THE TERMS OF THE U.S. DEPARTMENT OF ENERGY FUNDING 5
858+PROGRAMS, INCLUDING THOSE ESTA BLISHED: 6
910859
911- (J) IF THE COMMISSION FINDS THAT NONE OF THE PROPOSAL S ARE
912-BENEFICIALLY COST –EFFECTIVE OR ADEQUATELY SUPPORT T HE GOALS
913-ESTABLISHED UNDER TH IS SECTION OR DEMONSTRATE NET B ENEFITS TO
914-RATEPAYERS IN THE STATE WHEN COMPARED W ITH AN ALTERNATIVE B ASELINE
915-SCENARIO UNDER SUBSECTION (E)(1)(V) OF THIS SECTION, THEN THE COMMISSION
916-MAY END THE SOLICITA TION PROCESS WITHOUT SELECTING A PROPOSAL .
860+ (I) UNDER THE FEDERAL INFRASTRUCTURE INVESTMENT AND 7
861+JOBS ACT; 8
917862
918- (K) (1) THE COMMISSION MAY , FOR A PROPOSAL SELEC TED UNDER
919-SUBSECTION (I) OF THIS SECTION:
863+ (II) UNDER THE FEDERAL INFLATION REDUCTION ACT OF 9
864+2022; 10
920865
921- (I) ADOPT CONDITIONS FOR THE CO NSTRUCTION AND
922-OPERATION OF FACILIT IES INCLUDED IN THE PROPOSAL; AND
866+ (III) THROUGH THE U.S. DEPARTMENT OF ENERGY 11
867+TRANSMISSION FACILITATION PROGRAM; AND 12
923868
924- (II) CONSIDER ANY CONDITI ONS PROPOSED BY THE POWER
925-PLANT RESEARCH PROGRAM.
869+ (IV) THROUGH ANY LOAN PRO GRAMS, OFFICE PROGRAMS , OR 13
870+RESILIENCY FUNDING . 14
926871
927- (2) THE REQUIREMENT TO OB TAIN A CERTIFICATE O F PUBLIC
928-CONVENIENCE AND NECE SSITY UNDER § 7–207 OR § 7–208 OF THIS TITLE DOES N OT
929-APPLY TO A PROPOSAL SELECTED UNDER SUBSE CTION (I) OF THIS SECTION. WES MOORE, Governor Ch. 95
872+ (5) (I) EACH PROPOSAL SHALL I NCLUDE A COST –BENEFIT 15
873+ANALYSIS TO DEMONSTR ATE THE OVERALL BENE FITS OF THE PROPOSAL TO THE 16
874+STATE AND TO RATEPAYE RS. 17
930875
931-– 21 –
876+ (II) THE COST –BENEFIT ANALYSIS REQ UIRED UNDER 18
877+SUBPARAGRAPH (I) OF THIS PARAGRAPH SHALL INCLUDE AN ASS ESSMENT OF 19
878+POTENTIAL COST ALLOC ATION BETWEEN STATES . 20
932879
933- (3) AN ORDER SELECTING A PROPOSAL UNDER SUBSE CTION (I) OF
934-THIS SECTION CONSTIT UTES AUTHORIZATION B Y THE COMMISSION TO CONSTRU CT
935-AND OPERATE FACILITI ES THAT WOULD OTHERWISE REQUIRE A CERTIFICATE OF
936-PUBLIC CONVENIENCE A ND NECESSITY UNDER § 7–207 OR § 7–208 OF THIS TITLE.
880+ (F) THE SOLICITATION PROC ESS SHALL: 21
937881
938- (L) EXCEPT AS PROVIDED IN SUBSECTION (K) OF THIS SECTION , A A
939-PROPOSAL APPROVED SELECTED UNDER THIS SECTION I S SUBJECT TO ALL OTH ER
940-RELEVANT REQU IREMENTS FOR THE SIT ING AND CONSTRUCTION OF TRANSMISSION
941-LINES, INCLUDING ANY REQUIR EMENT TO OBTAIN A CE RTIFICATE OF PUBLIC
942-CONVENIENCE AND NECE SSITY.
882+ (1) INCLUDE A PREQUALIFI CATION PROCESS TO EN SURE THE 22
883+FINANCIAL AND TECHNI CAL COMPETENCE AND C APABILITIES OF THE E NTITIES 23
884+RESPONDING TO THE SOLICITATION FOR PRO POSALS; 24
943885
944- (L) (M) SELECTION OF COORDINA TED TRANSMISSION PRO POSALS MAY
945-NOT IMPACT THE INTER CONNECTION PLANS OF EARLIER OFFSHORE WIN D
946-PROJECTS, INCLUDING OCS–A 0490 (US WIND) AND OCS–A 0519 (SKIPJACK),
947-UNLESS THE LEASEHOLD ERS FOR THESE PROJEC TS OPT TO PARTICIPAT E IN THE
948-PROPOSAL BY NOTIFYIN G THE COMMISSION BY MAIL OR E–MAIL BEFORE THE
949-COMPLETION OF THE AN ALYSIS OF TRANSMISSION SYSTEM E XPANSION OPTIONS
950-UNDER SUBSECTION (B) OF THIS SECTION.
886+ (2) PROVIDE FOR RIGOROUS SEPARATION BETWEEN I NDIVIDUALS OR 25
887+FIRMS PARTICIPATING IN THE REVIEW , ANALYSIS, AND SELECTION OF THE 26
888+PROPOSALS BY OR ON B EHALF OF THE COMMISSION AND THOSE PARTICIPATING IN 27
889+THE DEVELOPMENT OR M ANAGEMENT OF PROPOSALS ; AND 28
951890
952- (M) (N) IF NO PROPOSAL HAS BE EN APPROVED SELECTED UNDER THIS
953-SECTION BY JULY DECEMBER 1, 2026 2027, THE COMMISSION SHALL SUBM IT A
954-STATEMENT OF DETERMI NATION TO THE GOVERNOR AND GENERAL ASSEMBLY
955-THAT:
891+ (3) PROMOTE RIGOROUS COM PETITION AMONG PREQU ALIFIED 29
892+ENTITIES IN THE PREP ARATION AND SUBMISSI ON OF THEIR PROPOSAL S. 30
893+ 20 SENATE BILL 781
956894
957- (1) PROVIDES A COMPREHEN SIVE EXPLANATION OF THE
958-COMMISSION’S DECISION DETERMINATION ; AND
959895
960- (2) RECOMMENDS A PATH FO RWARD TO ACHIEVE THE STATE’S GOAL
961-UNDER SUBSECTION (A) OF THIS SECTION.
896+ (G) THE COMMISSION MAY MODIFY , OR REQUEST THAT PJM 1
897+INTERCONNECTION MODIF Y, A SOLICITATION FOR P ROPOSALS AT ANY TIME IN 2
898+ORDER TO SATISFY ELI GIBILITY CRITERIA FO R U.S. DEPARTMENT OF ENERGY 3
899+FUNDING PROGRAMS . 4
962900
963- (N) (O) AFTER THE COMMISSION SELECTS A PROPOSAL OR PROPOSAL S,
964-THE COMMISSION SHALL WORK WITH THE MARYLAND ENERGY ADMINISTRATION ,
965-TRANSMISSION DEVELOP ER OR DEVELOPERS , TRANSMISSION FACILIT Y OWNERS,
966-PJM INTERCONNECTION , THE FEDERAL ENERGY REGULATORY COMMISSION, AND
967-ANY OTHER STATES THA T VOLUNTARI LY PARTICIPATE , TO FACILITATE THE
968-DEVELOPMENT OF THE P ROPOSAL OR PROPOSALS AND THE CONSTRUCTION OF THE
969-PROPOSED OFFSHORE WI ND PROJECT OR PROJEC TS.
901+ (H) IN SELECTING A PROPOS AL UNDER THIS SECTIO N, THE COMMISSION 5
902+SHALL TAKE INTO CONS IDERATION THE TOTAL AMOUNT OF NEW TRANSM ISSION 6
903+INFRASTRUCTURE NEEDE D TO: 7
970904
971- (O) (P) THE COMMISSION:
905+ (1) MAINTAIN ELECTRIC SYSTE M RELIABILITY; 8
972906
973- (1) SHALL CARRY OUT THE PROVISIONS OF THIS S ECTION BY
974-OBTAINING INFORMATIO N THROUGH REQUEST , COOPERATION , SUBPOENA, OR ANY Ch. 95 2023 LAWS OF MARYLAND
907+ (2) AVOID UNNECESSARY UP GRADE COSTS TO THE E XISTING 9
908+TRANSMISSION GRID ; 10
975909
976-– 22 –
977-OTHER LEGAL METHOD F ROM TRANSMISSION OWN ERS, PJM INTERCONNECTION ,
978-OR ANY OTHER ENTITY ; AND
910+ (3) ACHIEVE THE STATE’S OFFSHORE WIND , RENEWABLE ENERGY , 11
911+AND DECARBONIZATION GOALS; 12
979912
980- (2) MAY RETAIN CONSULTAN TS.
913+ (4) (3) OBTAIN DEMONSTRABLE BENEFITS TO THE CONS UMER AND 13
914+ENVIRONMENT ; AND 14
981915
982-7–704.4.
916+ (5) (4) FOSTER ECONOMIC DEVE LOPMENT AND JOB CREA TION IN 15
917+THE STATE. 16
983918
984- (A) (1) IN THIS SECTION THE F OLLOWING WORDS HAVE THE MEANINGS
985-INDICATED.
919+ (I) THE COMMISSION SHALL : 17
986920
987- (2) “COMMUNITY BENEFIT AGR EEMENT” HAS THE MEANING STAT ED
988-IN § 7–704.1(E) OF THIS SUBTITLE.
921+ (1) EVALUATE REQUEST THAT PJM INTERCONNECTION ASSIS T WITH 18
922+THE EVALUATION OF EACH PROPOSAL SUBMIT TED IN ACCORDANCE WI TH THIS 19
923+SECTION; AND 20
989924
990- (3) “SOCIAL COST OF GREENH OUSE GASES ” MEANS THE MOST
991-RECENT SOCIAL COST O F GREENHOUSE GAS ES ADOPTED BY THE U.S.
992-ENVIRONMENTAL PROTECTION AGENCY.
925+ (2) AFTER NOTICE , ONE OR MORE HEARINGS TO RECEIVE PUBLIC 21
926+COMMENT, AND AN EVIDENTIARY H EARING, AND SUBJECT TO SUBSE CTION (J) OF 22
927+THIS SECTION, ON OR BEFORE JULY DECEMBER 1, 2026 2027, BY ORDER, SELECT A 23
928+PROPOSAL OR PROPOSAL S FOR DEVELOPMENT : 24
993929
994- (B) (1) BETWEEN JULY 31, 2024, AND APRIL 30, 2025, THE THE
995-DEPARTMENT OF GENERAL SERVICES, IN CONSULTATION WITH THE PUBLIC
996-SERVICE COMMISSION, SHALL ISSUE AN INVITATION FOR BIDS A COMPETITIVE
997-SEALED PROCUREMENT SOLICITA TION AND MAY ENTER INTO A T LEAST ONE
998-CONTRACT FOR A POWER PURCHASE AGREEMENT T O PROCURE BETWEEN 1,000,000
999-AND 8,000,000 UP TO 5,000,000 MEGAWATT –HOURS ANNUALLY OF OF FSHORE WIND
1000-ENERGY AND ASSOCIATE D RENEWABLE ENERGY C REDITS FROM ONE OR MORE
1001-QUALIFIED OFFSHORE W IND PROJECTS.
930+ (I) USING A FUNDING MECHANISM OR COMBINATION OF 25
931+FUNDING MECHANISMS I DENTIFIED IN SUBSECT ION (E)(3) OF THIS SECTION; AND 26
1002932
1003- (2) EACH AGREEMENT ENTERE D INTO UNDER PARAGRA PH (1) OF
1004-THIS SUBSECTION SHAL L HAVE A TERM OF NOT LESS THAN 20 YEARS.
933+ (II) THAT DEMONSTRATE NET BENEFITS TO RATEPAYE RS IN THE 27
934+STATE WHEN COMPARED W ITH AN ALTERNATIVE B ASELINE SCENARIO UND ER 28
935+SUBSECTION (E)(1)(V) OF THIS SECTION. 29
1005936
1006- (3) WHEN ISSUING THE INVI TATION FOR BIDS UNDE R THIS
1007-SUBSECTION, THE DEPARTMENT SHALL TAKE INTO CONSIDERATION :
937+ (J) IF THE COMMISSION FINDS THAT NONE OF THE PROPOSAL S ARE 30
938+BENEFICIALLY COST –EFFECTIVE OR ADEQUATELY SUPPORT T HE GOALS 31
939+ESTABLISHED UNDER TH IS SECTION OR DEMONSTRATE NET B ENEFITS TO 32 SENATE BILL 781 21
1008940
1009- (I) THE SOCIAL COST OF G REENHOUSE GAS EMISSI ONS;
1010941
1011- (II) THE STATE’S CLIMATE COMMITMENT S; AND
942+RATEPAYERS IN THE STATE WHEN COMPARED W ITH AN ALTERNATIVE BASELINE 1
943+SCENARIO UNDER SUBSE CTION (E)(1)(V) OF THIS SECTION, THEN THE COMMISSION 2
944+MAY END THE SOLICITA TION PROCESS WITHOUT SELECTING A PROPOSAL . 3
1012945
1013- (III) THE STATE’S COMMITMENTS UNDER § 7–704.1(A) OF THIS
1014-SUBTITLE.
946+ (K) (1) THE COMMISSION MAY , FOR A PROPOSAL SELEC TED UNDER 4
947+SUBSECTION (I) OF THIS SECTION: 5
1015948
1016- (4) THE EVALUATION CRITER IA FOR BIDS SHALL IN CLUDE:
949+ (I) ADOPT CONDITIONS FOR THE CONSTRUCTION AND 6
950+OPERATION OF FACILIT IES INCLUDED IN THE PROPOSAL; AND 7
1017951
1018- (I) COMPARING THE SOCIAL COST O F GREENHOUSE GAS
1019-EMISSIONS FOR OFFSHO RE WIND WITH THE SOC IAL COST OF GREENHOU SE GAS WES MOORE, Governor Ch. 95
952+ (II) CONSIDER ANY CONDITI ONS PROPOSED BY THE POWER 8
953+PLANT RESEARCH PROGRAM. 9
1020954
1021-– 23 –
1022-EMISSIONS FOR NONREN EWABLE POWER PURCHAS ED FROM WHOLESALE EL ECTRIC
1023-MARKETS ADMINISTERED BY PJM INTERCONNECTION ; AND
955+ (2) THE REQUIREMENT TO OB TAIN A CERTIFICATE O F PUBLIC 10
956+CONVENIENCE AND NECESSITY UNDER § 7–207 OR § 7–208 OF THIS TITLE DOES N OT 11
957+APPLY TO A PROPOSAL SELECTED UNDER SUBSE CTION (I) OF THIS SECTION. 12
1024958
1025- (II) THE EXTENT TO WHICH AN APPLICANT’S PROPOSAL
1026-PROVIDES FOR FINANCI AL AND TECHNICAL ASS ISTANCE TO SUPPORT M ONITORING
1027-AND MITIGATION OF WI LDLIFE AND HABITAT I MPACTS ASSOCIATED WI TH THE
1028-PROPOSED OFFSHORE WI ND PROJECT.
959+ (3) AN ORDER SELECTING A PROPOSAL UNDER SUBSE CTION (I) OF 13
960+THIS SECTION CONSTIT UTES AUTHORIZATION B Y THE COMMISSION TO CONSTRU CT 14
961+AND OPERATE FACILITI ES THAT WOULD OTHERW ISE REQUIRE A CERTIF ICATE OF 15
962+PUBLIC CONVENIENCE A ND NECESSITY UNDER § 7–207 OR § 7–208 OF THIS TITLE. 16
1029963
1030- (5) EACH AGREEMENT ENTERE D INTO UNDER PARAGRA PH (1) OF
1031-THIS SUBSECTION SHALL INC LUDE:
964+ (L) EXCEPT AS PROVIDED IN SUBSECTION (K) OF THIS SECTION , A A 17
965+PROPOSAL APPROVED SELECTED UNDER THIS SECTION I S SUBJECT TO ALL OTHER 18
966+RELEVANT REQUIREMENT S FOR THE SITING AND CONSTRUCTION OF TRAN SMISSION 19
967+LINES, INCLUDING ANY REQUIR EMENT TO OBTAIN A CE RTIFICATE OF PUBLIC 20
968+CONVENIENCE AND NECE SSITY. 21
1032969
1033- (I) A COMMUNITY BENEFIT AGREEMENT AND DOMEST IC
1034-CONTENT PREFERENCES ; AND
970+ (L) (M) SELECTION OF COORDINA TED TRANSMISSION PRO POSALS MAY 22
971+NOT IMPACT THE INTERCONN ECTION PLANS OF EARL IER OFFSHORE WIND 23
972+PROJECTS, INCLUDING OCS–A 0490 (US WIND) AND OCS–A 0519 (SKIPJACK), 24
973+UNLESS THE LEASEHOLD ERS FOR THESE PROJEC TS OPT TO PARTICIPAT E IN THE 25
974+PROPOSAL BY NOTIFYIN G THE COMMISSION BY MAIL OR E–MAIL BEFORE THE 26
975+COMPLETION OF THE AN ALYSIS OF TRANSMISSI ON SYSTEM EXPANSION OPTIONS 27
976+UNDER SUBSECTION (B) OF THIS SECTION. 28
1035977
1036- (II) A DESCRIPTION OF :
978+ (M) (N) IF NO PROPOSAL HAS BE EN APPROVED SELECTED UNDER THIS 29
979+SECTION BY JULY DECEMBER 1, 2026 2027, THE COMMISSION SHALL SUBM IT A 30
980+STATEMENT OF DETERMINATION TO THE GOVERNOR AND GENERAL ASSEMBLY 31
981+THAT: 32
1037982
1038- 1. INITIAL PLANS FOR MI TIGATING THE IMPACTS OF THE
1039-CONSTRUCTION AND OPE RATION OF THE PROPOS ED OFFSHORE WIND PRO JECT ON
1040-FISHERIES AND THE ENVIR ONMENT; AND
983+ (1) PROVIDES A COMPREHEN SIVE EXPLANATION OF THE 33
984+COMMISSION’S DECISION DETERMINATION ; AND 34
985+ 22 SENATE BILL 781
1041986
1042- 2. THE EXTENT TO WHICH AN APPLICANT WILL PR OVIDE
1043-FOR FINANCIAL AND TE CHNICAL ASSISTANCE T O SUPPORT THE MONITO RING AND
1044-MITIGATION OF WILDLI FE AND HABITAT IMPAC TS ASSOCIATED WITH T HE PROJECT.
1045987
1046- (C) (1) THE DEPARTMENT OF GENERAL SERVICES SHALL IDENTI FY THE
1047-AMOUNT OF ENERGY NEC ESSARY TO MEET THE STATE’S ENERGY NEEDS .
988+ (2) RECOMMENDS A PATH FO RWARD TO ACHIEVE THE STATE’S GOAL 1
989+UNDER SUBSECTION (A) OF THIS SECTION. 2
1048990
1049- (2) (I) THE STATE SHALL USE THE E NERGY PROCURED UNDER
1050-SUBSECTION (B) OF THIS SECTION TO M EET THE STATE’S ENERGY NEEDS AND
1051-RETIRE THE ASSOCIATE D RENEWABLE ENE RGY CREDITS TO MEET ITS OBLIGATIONS
1052-UNDER THE RENEWABLE ENERGY PORTFOLIO STA NDARD AND CHAPTER 38 OF THE
1053-ACTS OF THE GENERAL ASSEMBLY OF 2022.
991+ (N) (O) AFTER THE COMMISSION SELECTS A PROPOSAL OR PROPOSAL S, 3
992+THE COMMISSION SHALL WORK WITH THE MARYLAND ENERGY ADMINISTRATION , 4
993+TRANSMISSION DEVELOP ER OR DEVELOPERS , TRANSMISSION FACILIT Y OWNERS, 5
994+PJM INTERCONNECTION , THE FEDERAL ENERGY REGULATORY COMMISSION, AND 6
995+ANY OTHER STATES THA T VOLUNTARILY PARTIC IPATE, TO FACILITATE THE 7
996+DEVELOPMENT OF THE P ROPOSAL OR PROPOSALS AND THE CONSTRUCTION OF THE 8
997+PROPOSED OFFSHORE WI ND PROJECT OR PROJEC TS. 9
1054998
1055- (II) THE STATE SHALL BE EXEMPT ED FROM THE RENEWABL E
1056-ENERGY PORTFOLIO STA NDARD REQUIREMENTS U NDER § 7–703 OF THIS SUBTITLE
1057-IF THE DEPARTMENT OF GENERAL SERVICES PROCURES 100% OF THE STATE’S
1058-ENERGY NEEDS FROM TH E POWER PURCHASE AGR EEMENT REQUIRED UNDE R
1059-SUBSECTION (B) OF THIS SECTION.
999+ (O) (P) THE COMMISSION: 10
10601000
1061- (3) THE STATE SHALL OFFER FOR SALE ANY ENERGY OR R ENEWABLE
1062-ENERGY CREDITS REM AINING AFTER THE REQ UIREMENTS UNDER PARA GRAPH (2)
1063-OF THIS SUBSECTION H AVE BEEN MET ON THE COMPETITIVE WHOLESAL E POWER
1064-MARKET OPERATED BY PJM INTERCONNECTION , THROUGH BILATERAL SA LES TO Ch. 95 2023 LAWS OF MARYLAND
1001+ (1) SHALL CARRY OUT THE PROVISIONS OF THIS S ECTION BY 11
1002+OBTAINING INFORMATIO N THROUGH REQUEST , COOPERATION , SUBPOENA, OR ANY 12
1003+OTHER LEGAL METHOD F ROM TRANSMISSION OWN ERS, PJM INTERCONNECTION , 13
1004+OR ANY OTHER ENTITY ; AND 14
10651005
1066-– 24 –
1067-CREDIT–WORTHY COUNTERPARTIE S, OR INTO RENEWABLE EN ERGY CREDIT
1068-MARKETS.
1006+ (2) MAY RETAIN CONSULTAN TS. 15
10691007
1070- (D) THE STATE SHALL:
1008+7–704.4. 16
10711009
1072- (1) ISSUE A PROCUREMENT FOR OFFSHORE WIND EN ERGY ON OR
1073-BEFORE JULY 31, 2024;
1010+ (A) (1) IN THIS SECTION THE F OLLOWING WORDS HAVE THE MEANINGS 17
1011+INDICATED. 18
10741012
1075- (2) PROVIDE A BIDDING PROCUREMENT SUBMISSI ON PROCESS
1076-WINDOW OF NOT LESS T HAN 180 DAYS; AND
1013+ (2) “COMMUNITY BENEFIT AGR EEMENT” HAS THE MEANING STAT ED 19
1014+IN § 7–704.1(E) OF THIS SUBTITLE. 20
10771015
1078- (3) AWARD CONTRACTS IN A TIMELY MANNER ; AND
1016+ (3) “SOCIAL COST OF GREENH OUSE GASES ” MEANS THE MOST 21
1017+RECENT SOCIAL COST O F GREENHOUSE GASES A DOPTED BY THE U.S. 22
1018+ENVIRONMENTAL PROTECTION AGENCY. 23
10791019
1080- (4) ENTER INTO A CONTRAC T OR CONTRACTS FOR T HE
1081-PROCUREMENT ON OR BE FORE APRIL 30, 2025.
1020+ (B) (1) BETWEEN JULY 31, 2024, AND APRIL 30, 2025, THE THE 24
1021+DEPARTMENT OF GENERAL SERVICES, IN CONSULTATION WITH THE PUBLIC 25
1022+SERVICE COMMISSION, SHALL ISSUE AN INVITATION FOR BIDS A COMPETITIVE 26
1023+SEALED PROCUREMENT S OLICITATION AND MAY ENT ER INTO AT LEAST ONE 27
1024+CONTRACT FOR A POWER PURCHASE AGREEMENT T O PROCURE BETWEEN 1,000,000 28
1025+AND 8,000,000 UP TO 5,000,000 MEGAWATT –HOURS ANNUALLY OF OF FSHORE WIND 29
1026+ENERGY AND ASSOCIATE D RENEWABLE ENERGY C REDITS FROM ONE OR M ORE 30
1027+QUALIFIED OFFSHORE W IND PROJECTS. 31
10821028
1083- (E) (1) SUBJECT TO PARAGRAPH (2) OF THIS SUBSECTION , THE STATE
1084-MAY ENTER INTO A CON TRACT OR CONTRACTS F OR THE PROCUREMENT O N OR
1085-BEFORE SEPTEMBER 1, 2025.
1029+ (2) EACH AGREEMENT ENTERE D INTO UNDER PARAGRA PH (1) OF 32
1030+THIS SUBSECTION SHAL L HAVE A TERM OF NOT LESS THAN 20 YEARS. 33
1031+ SENATE BILL 781 23
10861032
1087- (2) THE STATE MAY MODIFY THE DATE ESTABLISHED IN PARAG RAPH
1088-(1) OF THIS SUBSECTION I F AN UNFORESEEN CIRC UMSTANCE ADVERSELY A FFECTS
1089-THE PROCUREMENT SUBM ISSION PROCESS.
10901033
1091- (F) (1) WITHIN 90 DAYS AFTER THE OPERA TIONAL COMMENCEMENT
1092-DATE OF THE POWER PU RCHASE AGREEMENT , ANY CONTRACTOR PROVIDING
1093-OPERATIONS AND MAINT ENANCE SERVICES UNDE R AN AGREEMENT WITH THE
1094-DEPARTMENT OF GENERAL SERVICES SHALL SUBMIT TO THE DEPARTMENT
1095-ATTESTATION THAT THE CONTRACTOR HAS ENTER ED INTO A LABOR PEAC E
1096-AGREEMENT WITH EACH LABOR ORGANIZATION T HAT IS ACTIVELY ENGAGED IN
1097-REPRESENTING OR ATTE MPTING TO REPRESENT EMPLOYEES PERFORMING
1098-OPERATIONS AND MAINT ENANCE WORK ON THE P ROJECTS THAT :
1034+ (3) WHEN ISSUING THE INVI TATION FOR BIDS UNDE R THIS 1
1035+SUBSECTION, THE DEPARTMENT SHALL TAKE INTO CONSIDERATION : 2
10991036
1100- (I) PROHIBITS STRIKES , LOCKOUTS, OR ANY OTHER ECONOMI C
1101-INTERFERENCE WITH TH E CONTRACTED PROJECT ;
1037+ (I) THE SOCIAL COST OF GREENHO USE GAS EMISSIONS ; 3
11021038
1103- (II) DESCRIBES T HE CLASS OR CLASSES OF COVERED
1104-EMPLOYEES TO WHOM TH E LABOR PEACE AGREEM ENT APPLIES;
1039+ (II) THE STATE’S CLIMATE COMMITMENT S; AND 4
11051040
1106- (III) DESCRIBES ANY CLASS OR CLASSES OF EMPLOY EES NOT
1107-CURRENTLY REPRESENTE D BY A LABOR ORGANIZ ATION;
1108- WES MOORE, Governor Ch. 95
1041+ (III) THE STATE’S COMMITMENTS UNDER § 7–704.1(A) OF THIS 5
1042+SUBTITLE. 6
11091043
1110-– 25 –
1111- (IV) DESCRIBES THE CLASSE S OF COVERED EMPLOYE ES FOR
1112-WHICH LABOR PEACE AGREEMENT NEGO TIATIONS HAVE NOT YE T CONCLUDED ; AND
1044+ (4) THE EVALUATION CRITER IA FOR BIDS SHALL IN CLUDE: 7
11131045
1114- (V) FOR CLASSES OF EMPLO YEES THAT ARE NOT CO VERED BY A
1115-LABOR PEACE AGREEMEN T, PROVIDES AN ATTESTAT ION THAT NO LABOR
1116-ORGANIZATION HAS SOU GHT TO NEGOTIATE SUC H AN AGREEMENT .
1046+ (I) COMPARING THE SOCIAL COST OF GREENHOU SE GAS 8
1047+EMISSIONS FOR OFFSHO RE WIND WITH THE SOC IAL COST OF GREENHOU SE GAS 9
1048+EMISSIONS FOR NONREN EWABLE POWER PURCHAS ED FROM WHOLESALE EL ECTRIC 10
1049+MARKETS ADMINISTERED BY PJM INTERCONNECTION ; AND 11
11171050
1118- (2) A LABOR PEACE AGREEMEN T REQUIRED UNDER PAR AGRAPH (1)
1119-OF THIS SUBSECTION S HALL BE:
1051+ (II) THE EXTENT TO WHICH AN APPLICANT ’S PROPOSAL 12
1052+PROVIDES FOR FINANCIAL AND TECHNI CAL ASSISTANCE TO SU PPORT MONITORING 13
1053+AND MITIGATION OF WI LDLIFE AND HABITAT I MPACTS ASSOCIATED WI TH THE 14
1054+PROPOSED OFFSHORE WI ND PROJECT. 15
11201055
1121- (I) VALID AND ENFORCEABL E UNDER 29 U.S.C. § 158; AND
1056+ (5) EACH AGREEMENT ENTERE D INTO UNDER PARAGRA PH (1) OF 16
1057+THIS SUBSECTION SHAL L INCLUDE: 17
11221058
1123- (II) MAINTAINED AS AN ONG OING MATERIAL CONDIT ION OF ANY
1124-CONTINUATION OF PAYM ENTS UNDER ANY AGREE MENT REQUIRED BY THIS
1125-SUBSECTION.
1059+ (I) A COMMUNITY BENEFIT AG REEMENT AND DOMESTIC 18
1060+CONTENT PREFERENCES ; AND 19
11261061
1127- (G) NOTHING IN THIS SECTI ON MAY BE CONSTRUED TO PREVENT THE
1128-PROCUREMENT OF NEW O FFSHORE WIND ENERGY GENERATION IN ACCORD ANCE
1129-WITH THE CURRENT OR ANY FUTURE SOLICITAT ION SCHEDULE .
1062+ (II) A DESCRIPTION OF : 20
11301063
1131-7–704.5.
1064+ 1. INITIAL PLANS FOR MI TIGATING THE IMPACTS OF THE 21
1065+CONSTRUCTION AND OPE RATION OF THE PROPOS ED OFFSHORE WIND PRO JECT ON 22
1066+FISHERIES AND THE EN VIRONMENT; AND 23
11321067
1133- (A) ON OR BEFORE DECEMBER 31, 2024, AND ON OR BEFORE EACH
1134-DECEMBER 31 THEREAFTER , THE COMMISSION SHALL SUBM IT A REPORT TO THE
1135-GENERAL ASSEMBLY, IN ACCORDANCE WITH § 2–1257 OF THE STATE GOVERNMENT
1136-ARTICLE, ON THE INFORMATION C OLLECTED UNDER THE COMMISSION’S SUPPLIER
1137-DIVERSITY PROGRAM REGARDING OFF SHORE WIND DEVELOPERS .
1068+ 2. THE EXTENT TO WHICH AN APPLICANT WILL PR OVIDE 24
1069+FOR FINANCIAL AND TE CHNICAL ASSISTANCE T O SUPPORT THE MONITO RING AND 25
1070+MITIGATION OF WILDLI FE AND HABITAT IMPAC TS ASSOCIATED WITH T HE PROJECT. 26
11381071
1139- (B) THE REPORT REQUIRED U NDER SUBSECTION (A) OF THIS SECTION
1140-SHALL INCLUDE :
1072+ (C) (1) THE DEPARTMENT OF GENERAL SERVICES SHALL IDENTI FY THE 27
1073+AMOUNT OF ENERGY NECE SSARY TO MEET THE STATE’S ENERGY NEEDS . 28
11411074
1142- (1) EFFORTS TO PROMOTE O PPORTUNITIES FOR SMA LL, MINORITY,
1143-WOMEN–OWNED, AND VETERAN –OWNED BUSINESSES ;
1075+ (2) (I) THE STATE SHALL USE THE E NERGY PROCURED UNDER 29
1076+SUBSECTION (B) OF THIS SECTION TO M EET THE STATE’S ENERGY NEEDS AND 30
1077+RETIRE THE ASSOCIATE D RENEWABLE ENERGY C REDITS TO MEET ITS O BLIGATIONS 31 24 SENATE BILL 781
11441078
1145- (2) INFORMATION ON PARTI CIPATING OFFSHORE WI ND DEVELOPERS ;
11461079
1147- (3) PARTICIPATION OF SMA LL, MINORITY, WOMEN–OWNED, AND
1148-VETERAN–OWNED BUSINESSES AND BUSINESSES CERTI FIED UNDER THE FEDER AL
1149-DISADVANTAGED BUSINESS ENTERPRISE PROGRAM IN OFFSHORE WIND PRO JECTS,
1150-INCLUDING:
1080+UNDER THE RENEWABLE ENERGY PORTFOLIO STA NDARD AND CHAPTER 38 OF THE 1
1081+ACTS OF THE GENERAL ASSEMBLY OF 2022. 2
11511082
1152- (I) THE NUMBER OF SMALL , MINORITY, WOMEN–OWNED, AND
1153-VETERAN–OWNED BUSINESSES AND BUSINESSES CERTI FIED UNDER THE FEDER AL Ch. 95 2023 LAWS OF MARYLAND
1083+ (II) THE STATE SHALL BE EXEMPT ED FROM THE RENEWABL E 3
1084+ENERGY PORTFOLIO STA NDARD REQUIREMENTS U NDER § 7–703 OF THIS SUBTITLE 4
1085+IF THE DEPARTMENT OF GENERAL SERVICES PROCURES 100% OF THE STATE’S 5
1086+ENERGY NEEDS FROM TH E POWER PURCHASE AGR EEMENT REQUIRED UNDE R 6
1087+SUBSECTION (B) OF THIS SECTION. 7
11541088
1155-– 26 –
1156-DISADVANTAGED BUSINESS ENTERPRISE PROGRAM THAT RECEIVE CONTRAC TS OR
1157-SUBCONTRACTS FOR OFF SHORE WIND PROJECTS ; AND
1089+ (3) THE STATE SHALL OFFER FOR SALE ANY ENERGY OR R ENEWABLE 8
1090+ENERGY CREDITS REMAI NING AFTER THE REQUI REMENTS UNDER PARAGRAPH (2) 9
1091+OF THIS SUBSECTION H AVE BEEN MET ON THE COMPETITIVE WHOLESAL E POWER 10
1092+MARKET OPERATED BY PJM INTERCONNECTION , THROUGH BILATERAL SA LES TO 11
1093+CREDIT–WORTHY COUNTERPARTIE S, OR INTO RENEWABLE EN ERGY CREDIT 12
1094+MARKETS. 13
11581095
1159- (II) THE PERCENTAGE OF CO NTRACTORS AND
1160-SUBCONTRACTORS ON OFFSHORE WIND PRO JECTS THAT ARE SMALL , MINORITY,
1161-WOMEN–OWNED, OR VETERAN –OWNED BUSINESSES AND BUSINESSES CERTI FIED
1162-UNDER THE FEDERAL DISADVANTAGED BUSINESS ENTERPRISE PROGRAM; AND
1096+ (D) THE STATE SHALL: 14
11631097
1164- (4) PLANS TO INCREASE FU TURE PARTICIPATION O F SMALL,
1165-MINORITY, WOMEN–OWNED, AND VETERAN –OWNED BUSINESSES AND BUSINESSES
1166-CERTIFIED UNDER THE FEDERAL DISADVANTAGED BUSINESS ENTERPRISE
1167-PROGRAM IN OFFSHORE WIND PRO JECTS.
1098+ (1) ISSUE A PROCUREMENT FOR OFFSHORE WIND ENERGY ON OR 15
1099+BEFORE JULY 31, 2024; 16
11681100
1169- SECTION 2. AND BE IT FURTHER ENACTED, That it is the intent of the General
1170-Assembly that:
1101+ (2) PROVIDE A BIDDING PROCUREMENT SUBMISSI ON PROCESS 17
1102+WINDOW OF NOT LESS T HAN 180 DAYS; AND 18
11711103
1172- (1) four Position Identification Numbers (PINs) be created in the Public
1173-Service Commission for full–time positions that will focus only on implementing the
1174-provisions of § 7–704.3 of the Public Utilities Article, as enacted by Section 1 of this Act;
1175-and
1104+ (3) AWARD CONTRACTS IN A TIMELY MANNER ; AND 19
11761105
1177- (2) notwithstanding any other provision of law, for fiscal year 2025, the
1178-Governor may include in the annual budget bill an appropriation of not less than
1179-$3,500,000 of additional funding to the budget of the Public Service Commission for the
1180-studies and analyses required under § 7–704.3 of the Public Utilities Article, as enacted by
1181-Section 1 of this Act.
1106+ (4) ENTER INTO A CONTRAC T OR CONTRACTS FO R THE 20
1107+PROCUREMENT ON OR BE FORE APRIL 30, 2025. 21
11821108
1183- SECTION 3. AND BE IT FURTHER ENACTED, That:
1109+ (E) (1) SUBJECT TO PARAGRAPH (2) OF THIS SUBSECTION , THE STATE 22
1110+MAY ENTER INTO A CON TRACT OR CONTRACTS F OR THE PROCUREMENT O N OR 23
1111+BEFORE SEPTEMBER 1, 2025. 24
11841112
1185- (a) The certification agency designated by the Board of Public Works under §
1186-14–303(b) of the State Finance and Procurement Article and the Governor’s Office of Small,
1187-Minority, and Women Business Affairs, in consultation with the Public Service Commission,
1188-the Maryland Department of Labor, the Office of the Attorney General, and the General
1189-Assembly, shall initiate a study regarding the participation of small, minority,
1190-women–owned, and veteran–owned businesses and businesses certified under the federal
1191-Disadvantaged Business Enterprise Program that receive contracts or subcontracts for
1192-offshore wind projects under this Act to evaluate whether the enactment of remedial
1193-measures to assist minority and women–owned businesses in the clean energy and offshore
1194-wind industries would comply with the U.S. Supreme Court decision in City of Richmond
1195-v. J. A. Croson Co., 488 U.S. 469, and any subsequent federal or constitutional requirements.
1113+ (2) THE STATE MAY MODIFY THE DATE ESTABLISHED IN PARAGRAPH 25
1114+(1) OF THIS SUBSECTION I F AN UNFORESEEN CIRC UMSTANCE ADVERSELY A FFECTS 26
1115+THE PROCUREMENT SUBM ISSION PROCESS. 27
11961116
1197- (b) The certification agency and the Governor’s Office of Small, Minority, and
1198-Women Business Affairs shall submit the findings of the study required under subsection
1199-(a) of this section to the Legislative Policy Committee, in accordance with § 2–1257 of the WES MOORE, Governor Ch. 95
1117+ (F) (1) WITHIN 90 DAYS AFTER THE OPERA TIONAL COMMENCEMENT 28
1118+DATE OF THE POWER PU RCHASE AGREEMENT , ANY CONTRACTOR PROVI DING 29
1119+OPERATIONS AND M AINTENANCE SERVICES UNDER AN AGREEMENT W ITH THE 30
1120+DEPARTMENT OF GENERAL SERVICES SHALL SUBMIT TO THE DEPARTMENT 31
1121+ATTESTATION THAT THE CONTRACTOR HAS ENTER ED INTO A LABOR PEAC E 32
1122+AGREEMENT WITH EACH LABOR ORGANIZATION T HAT IS ACTIVELY ENGA GED IN 33 SENATE BILL 781 25
12001123
1201-– 27 –
1202-State Government Article, on or before December 31, 2025, so that the General Assembly may
1203-review the findings before the 2026 session.
12041124
1205- SECTION 3. AND BE IT FURTHER ENACTED, That this Act shall take effect June
1206-1, 2023.
1125+REPRESENTING OR ATTEMPTING TO REPRES ENT EMPLOYEES PERFOR MING 1
1126+OPERATIONS AND MAINT ENANCE WORK ON THE P ROJECTS THAT : 2
12071127
1208-Approved by the Governor, April 21, 2023.
1128+ (I) PROHIBITS STRIKES , LOCKOUTS, OR ANY OTHER ECONOMI C 3
1129+INTERFERENCE WITH TH E CONTRACTED PROJECT ; 4
1130+
1131+ (II) DESCRIBES THE CLASS OR CLASSES OF COVERE D 5
1132+EMPLOYEES TO WHOM TH E LABOR PEACE AGREEM ENT APPLIES; 6
1133+
1134+ (III) DESCRIBES ANY CLASS OR CLASSES OF EMPLOY EES NOT 7
1135+CURRENTLY REPRESENTE D BY A LABOR ORGANIZ ATION; 8
1136+
1137+ (IV) DESCRIBES THE CLASSE S OF COVERED EMPLOYE ES FOR 9
1138+WHICH LABOR PEACE AG REEMENT NEGOTIATIONS HAVE NOT YET CONCLUDE D; AND 10
1139+
1140+ (V) FOR CLASSES OF EMPLO YEES THAT ARE NOT CO VERED BY A 11
1141+LABOR PEACE AGREEMEN T, PROVIDES AN ATTESTAT ION THAT NO LABOR 12
1142+ORGANIZATION HAS SOU GHT TO NEGOTIATE SUC H AN AGREEMENT . 13
1143+
1144+ (2) A LABOR PEACE AGREEMEN T REQUIRED UNDER PAR AGRAPH (1) 14
1145+OF THIS SUBSECTION S HALL BE: 15
1146+
1147+ (I) VALID AND ENFORCEABL E UNDER 29 U.S.C. § 158; AND 16
1148+
1149+ (II) MAINTAINED AS AN ONG OING MATERIAL CONDIT ION OF ANY 17
1150+CONTINUATION OF PAYM ENTS UNDER ANY AGREE MENT REQUIRED BY THIS 18
1151+SUBSECTION. 19
1152+
1153+ (G) NOTHING IN THIS SECTI ON MAY BE CONSTRUED TO PREVENT THE 20
1154+PROCUREMENT OF NEW O FFSHORE WIND ENERGY GENERATION IN ACCORD ANCE 21
1155+WITH THE CURRENT OR ANY FUTURE SOLICITAT ION SCHEDULE . 22
1156+
1157+7–704.5. 23
1158+
1159+ (A) ON OR BEFORE DECEMBER 31, 2024, AND ON OR BEFORE EACH 24
1160+DECEMBER 31 THEREAFTER , THE COMMISSION SHALL SUBM IT A REPORT TO THE 25
1161+GENERAL ASSEMBLY, IN ACCORDANCE WITH § 2–1257 OF THE STATE GOVERNMENT 26
1162+ARTICLE, ON THE INFORMATION C OLLECTED UNDER THE COMMISSION’S SUPPLIER 27
1163+DIVERSITY PROGRAM REGARDING OFF SHORE WIND DEVELOPERS . 28
1164+
1165+ (B) THE REPORT REQUIRED U NDER SUBSECTION (A) OF THIS SECTION 29
1166+SHALL INCLUDE : 30
1167+ 26 SENATE BILL 781
1168+
1169+
1170+ (1) EFFORTS TO PROMOTE O PPORTUNITIES FOR SMA LL, MINORITY, 1
1171+WOMEN–OWNED, AND VETERAN –OWNED BUSINESSES ; 2
1172+
1173+ (2) INFORMATION ON PARTI CIPATING OFFSHORE WI ND DEVELOPERS ; 3
1174+
1175+ (3) PARTICIPATION OF SMA LL, MINORITY, WOMEN–OWNED, AND 4
1176+VETERAN–OWNED BUSINESSES AND BUSINESSES CERTI FIED UNDER THE FEDER AL 5
1177+DISADVANTAGED BUSINESS ENTERPRISE PROGRAM IN OFFSHORE WIND PRO JECTS, 6
1178+INCLUDING: 7
1179+
1180+ (I) THE NUMBER OF SMALL , MINORITY, WOMEN–OWNED, AND 8
1181+VETERAN–OWNED BUSINESSES AND BUSINESSES CERTI FIED UNDER THE FEDER AL 9
1182+DISADVANTAGED BUSINESS ENTERPRISE PROGRAM THAT RECEIVE CONTRAC TS OR 10
1183+SUBCONTRACTS FOR OFF SHORE WIND PROJECTS ; AND 11
1184+
1185+ (II) THE PERCENTAGE OF CO NTRACTORS AND 12
1186+SUBCONTRACTORS ON OFFSHORE WIND PRO JECTS THAT ARE SMALL , MINORITY, 13
1187+WOMEN–OWNED, OR VETERAN –OWNED BUSINESSES AND BUSINESSES CERTI FIED 14
1188+UNDER THE FEDERAL DISADVANTAGED BUSINESS ENTERPRISE PROGRAM; AND 15
1189+
1190+ (4) PLANS TO INCREASE FU TURE PARTICIPATION O F SMALL, 16
1191+MINORITY, WOMEN–OWNED, AND VETERAN –OWNED BUSINESSES AND BUSINESSES 17
1192+CERTIFIED UNDER THE FEDERAL DISADVANTAGED BUSINESS ENTERPRISE 18
1193+PROGRAM IN OFFSHORE WIND PRO JECTS. 19
1194+
1195+ SECTION 2. AND BE IT FURTHER ENACTED, That it is the intent of the General 20
1196+Assembly that: 21
1197+
1198+ (1) four Position Identification Numbers (PINs) be created in the Public 22
1199+Service Commission for full–time positions that will focus only on implementing the 23
1200+provisions of § 7–704.3 of the Public Utilities Article, as enacted by Section 1 of this Act; 24
1201+and 25
1202+
1203+ (2) notwithstanding any other provision of law, for fiscal year 2025, the 26
1204+Governor may include in the annual budget bill an appropriation of not less than 27
1205+$3,500,000 of additional funding to the budget of the Public Service Commission for the 28
1206+studies and analyses required under § 7–704.3 of the Public Utilities Article, as enacted by 29
1207+Section 1 of this Act. 30
1208+
1209+ SECTION 3. AND BE IT FURTHER ENACTED, That: 31
1210+
1211+ (a) The certification agency designated by the Board of Public Works under § 32
1212+14–303(b) of the State Finance and Procurement Article and the Governor’s Office of Small, 33
1213+Minority, and Women Business Affairs, in consultation with the Public Service Commission, 34
1214+the Maryland Department of Labor, the Office of the Attorney General, and the General 35 SENATE BILL 781 27
1215+
1216+
1217+Assembly, shall initiate a study regarding the participation of small, minority, 1
1218+women–owned, and veteran–owned businesses and businesses certified under the federal 2
1219+Disadvantaged Business Enterprise Program that receive contracts or subcontracts for 3
1220+offshore wind projects under this Act to evaluate whether the enactment of remedial 4
1221+measures to assist minority and women–owned businesses in the clean energy and offshore 5
1222+wind industries would comply with the U.S. Supreme Court decision in City of Richmond 6
1223+v. J. A. Croson Co., 488 U.S. 469, and any subsequent federal or constitutional requirements. 7
1224+
1225+ (b) The certification agency and the Governor’s Office of Small, Minority, and 8
1226+Women Business Affairs shall submit the findings of the study required under subsection 9
1227+(a) of this section to the Legislative Policy Committee, in accordance with § 2–1257 of the 10
1228+State Government Article, on or before December 31, 2025, so that the General Assembly may 11
1229+review the findings before the 2026 session. 12
1230+
1231+ SECTION 3. AND BE IT FURTHER ENACTED, Th at this Act shall take effect June 13
1232+1, 2023. 14
1233+
1234+
1235+
1236+
1237+Approved:
1238+________________________________________________________________________________
1239+ Governor.
1240+________________________________________________________________________________
1241+ President of the Senate.
1242+________________________________________________________________________________
1243+ Speaker of the House of Delegates.