EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
[Brackets] indicate matter deleted from existing law.
*sb0931*
SENATE BILL 931
C5 3lr3073
CF HB 1188
By: Senator Hester
Introduced and read first time: February 16, 2023
Assigned to: Rules
A BILL ENTITLED
AN ACT concerning 1
Public Utilities – Certificate of Public Convenience and Necessity – Solar 2
Photovoltaic Systems 3
FOR the purpose of defining “generating station” as it relates to the requirement to obtain 4
a certificate of public convenience and necessity or approval from the Public Service 5
Commission for a person who constructs a generating station that has the capacity 6
to produce a certain amount of electricity from a solar photovoltaic system; and 7
generally relating to the requirement to obtain a certificate of public convenience 8
and necessity. 9
BY repealing and reenacting, with amendments, 10
Article – Public Utilities 11
Section 7–207(a), 7–207.1, and 7–207.2 12
Annotated Code of Maryland 13
(2020 Replacement Volume and 2022 Supplement) 14
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 15
That the Laws of Maryland read as follows: 16
Article – Public Utilities 17
7–207. 18
(a) (1) In this section the following words have the meanings indicated. 19
(2) “Brownfields site” means: 20
(i) a former industrial or commercial site identified by federal or 21
State laws or regulation as contaminated or polluted; 22
2 SENATE BILL 931
(ii) a closed landfill regulated by the Department of the 1
Environment; or 2
(iii) mined land. 3
(3) (i) “Construction” means: 4
1. any physical change at a site, including fabrication, 5
erection, installation, or demolition; or 6
2. the entry into a binding agreement or contractual 7
obligation to purchase equipment exclusively for use in construction in the State or to 8
undertake a program of actual construction in the State which cannot be canceled or 9
modified without substantial loss to the owner or operator of the proposed generating 10
station. 11
(ii) “Construction” does not include a change that is needed for the 12
temporary use of a site or route for nonutility purposes or for use in securing geological 13
data, including any boring that is necessary to ascertain foundation conditions. 14
(4) “GENERATING STATION ” DOES NOT INCLUDE : 15
(I) A GENERATING UNIT OR FACILITY THAT: 16
1. IS USED FOR THE PROD UCTION OF ELECTRICIT Y; 17
2. HAS THE CAPACITY TO PRODUCE NOT MORE THA N 2 18
MEGAWATTS OF ALTERNA TING CURRENT ; AND 19
3. IS INSTALLED WITH EQ UIPMENT THAT PREVENT S THE 20
FLOW OF ELECTRICITY TO THE ELECTRIC GRID DURING TIME PERIODS WHEN THE 21
ELECTRIC GRID IS OUT OF SERVICE; OR 22
(II) A COMBINATION OF TWO OR MORE GENERATING U NITS OR 23
FACILITIES THAT: 24
1. ARE USED FOR THE PRO DUCTION OF ELECTRICI TY; 25
2. ARE LOCATED ON THE S AME PROPERTY OR ADJA CENT 26
PROPERTIES; 27
3. HAVE THE CAPACITY TO PRODUCE, WHEN 28
CALCULATED CUMULATIV ELY FOR ALL GENERATI NG UNITS OR FACILITI ES ON THE 29
PROPERTY OR ADJACENT PROPERTY, MORE THAN 2 MEGAWATTS OF ALTERNA TING 30
CURRENT; AND 31 SENATE BILL 931 3
4. FOR EACH INDIVIDUAL GENERATING UNIT OR 1
FACILITY: 2
A. HAS THE CAPACITY TO PRODUCE NOT MORE THAN 2 3
MEGAWATTS OF ALTERNATIN G CURRENT; 4
B. IS SEPARATELY METERE D BY THE ELECTRIC 5
COMPANY; AND 6
C. DOES NOT E XPORT ELECTRICITY FOR SALE ON THE 7
WHOLESALE MARKET UND ER AN AGREEMENT WITH PJM INTERCONNECTION , LLC. 8
[(4)] (5) (i) “Mined land” means the surface or subsurface of an area 9
in which surface mining operations will be, are being, or have been conducted. 10
(ii) “Mined land” includes: 11
1. private ways and roads used for mining appurtenant to 12
any surface mining area; 13
2. land excavations; 14
3. workings; and 15
4. overburden. 16
[(5)] (6) “Qualified generator lead line” means an overhead transmission 17
line that is designed to carry a voltage in excess of 69,000 volts and would allow an 18
out–of–state Tier 1 or Tier 2 renewable source to interconnect with a portion of the electric 19
system in Maryland that is owned by an electric company. 20
7–207.1. 21
(A) IN THIS SECTION, “GENERATING STATION ” DOES NOT INCLUDE : 22
(1) A GENERATING UNIT OR FACILITY THAT: 23
(I) IS USED FOR THE PROD UCTION OF ELECTRICIT Y; 24
(II) HAS THE CAPACITY TO PRODUCE NOT MORE THA N 2 25
MEGAWATTS OF ALTERNA TING CURRENT ; AND 26
(III) IS INSTALLED WITH EQ UIPMENT THAT PREVENT S THE FLOW 27
OF ELECTRICITY TO TH E ELECTRIC GRID DURI NG TIME PERIODS WHEN THE 28 4 SENATE BILL 931
ELECTRIC GRID IS OUT OF SERVICE; OR 1
(2) A COMBINATION OF TWO OR MORE GENERATING U NITS OR 2
FACILITIES THAT: 3
(I) ARE USED FOR THE PRO DUCTION OF ELECTRICI TY; 4
(II) ARE LOCATED ON THE S AME PROPERTY OR ADJA CENT 5
PROPERTIES; 6
(III) HAVE THE CAPACITY TO PRODUCE , WHEN CALCULATED 7
CUMULATIVELY FOR ALL GENERATING UNITS OR FACILITIES ON THE PR OPERTY OR 8
ADJACENT PROPERTY , MORE THAN 2 MEGAWATTS OF ALTERNA TING CURRENT ; AND 9
(IV) FOR EACH INDIVIDUAL GENE RATING UNIT OR FACIL ITY: 10
1. HAS THE CAPACITY TO PRODUCE NOT MORE THAN 2 11
MEGAWATTS OF ALTERNA TING CURRENT ; 12
2. IS SEPARATELY METERE D BY THE ELECTRIC 13
COMPANY; AND 14
3. DOES NOT EXPORT ELEC TRICITY FOR SALE ON THE 15
WHOLESALE MARKET UND ER AN AGREEMENT WITH PJM INTERCONNECTION , LLC. 16
[(a)] (B) This section applies to a person who: 17
(1) constructs a generating station: 18
(i) designed to provide on–site generated electricity if: 19
1. the capacity of the generating station does not exceed 70 20
megawatts; and 21
2. the electricity that may be exported for sale from the 22
generating station to the electric system is sold only on the wholesale market pursuant to 23
an interconnection, operation, and maintenance agreement with the local electric company; 24
or 25
(ii) that produces electricity from wind if: 26
1. the generating station is land–based; 27
2. the capacity of the generating station does not exceed 70 28
megawatts; 29 SENATE BILL 931 5
3. the electricity that may be exported for sale from the 1
generating station to the electric system is sold only on the wholesale market pursuant to 2
an interconnection, operation, and maintenance agreement with the local electric company; 3
4. the Commission provides an opportunity for public 4
comment at a public hearing as provided in subsection [(f)] (G) of this section; and 5
5. the generating station’s wind turbines are not located 6
within a distance from the Patuxent River Naval Air Station that is determined by 7
regulations adopted by the Commission in coordination with the Commander, Naval Air 8
Warfare Center Aircraft Division, provided that the distance requirement under the 9
regulation is: 10
A. not greater than is necessary to encompass an area in 11
which utility scale wind turbines could create Doppler radar interference for missions at 12
the Patuxent River Naval Air Station; 13
B. not greater than 46 miles, measured from location 14
38.29667N, 76.37668W; and 15
C. subject to modification if necessary to reflect changes in 16
missions or technology at the Patuxent River Naval Air Station or changes in wind energy 17
technology; or 18
(2) constructs a generating station if: 19
(i) the capacity of the generating station does not exceed 25 20
megawatts; 21
(ii) the electricity that may be exported for sale from the generating 22
station to the electric system is sold only on the wholesale market pursuant to an 23
interconnection, operation, and maintenance agreement with the local electric company; 24
and 25
(iii) at least 10% of the electricity generated at the generating station 26
each year is consumed on–site. 27
[(b)] (C) (1) The Commission shall require a person that is exempted from 28
the requirement to obtain a certificate of public convenience and necessity to obtain 29
approval from the Commission under this section before the person may construct a 30
generating station described in subsection [(a)] (B) of this section. 31
(2) An application for approval under this section shall: 32
(i) be made to the Commission in writing on a form adopted by the 33
Commission; 34 6 SENATE BILL 931
(ii) be verified by oath or affirmation; and 1
(iii) contain information that the Commission requires, including: 2
1. proof of compliance with all applicable requirements of the 3
independent system operator; and 4
2. a copy of an interconnection, operation, and maintenance 5
agreement between the generating station and the local electric company. 6
[(c)] (D) On receipt of an application for approval under this section, the 7
Commission shall provide notice immediately or require the applicant to provide notice 8
immediately of the application to: 9
(1) the governing body of each county or municipal corporation in which 10
any portion of the generating station is proposed to be constructed; 11
(2) the governing body of each county or municipal corporation within 1 12
mile of the proposed location of the generating station; 13
(3) each member of the General Assembly representing any part of a county 14
in which any portion of the generating station is proposed to be constructed; and 15
(4) each member of the General Assembly representing any part of each 16
county within 1 mile of the proposed location of the generating station. 17
[(d)] (E) When reviewing an application for approval under this section, the 18
Commission shall: 19
(1) ensure the safety and reliability of the electric system; 20
(2) require the person constructing the generating station to notify the 21
Commission 2 weeks before the first export of electricity from a generating station approved 22
under this section; and 23
(3) conduct its review and approval in an expeditious manner. 24
[(e)] (F) Except for the notice required under subsection [(c)] (D) of this section, 25
the Commission may waive an element of the approval process under this section if the 26
Commission determines that the waiver is in the public interest. 27
[(f)] (G) (1) The Commission shall provide an opportunity for public 28
comment and hold a public hearing as provided under this subsection on an application for 29
approval made under subsection [(a)(1)(ii)] (B)(1)(II) of this section in each county and 30
municipal corporation in which any portion of the construction of a generating station is 31
proposed to be located. 32 SENATE BILL 931 7
(2) Upon the request of the governing body of a county or municipal 1
corporation in which any portion of the construction of a generating station is proposed to 2
be located, the Commission shall hold the public hearing jointly with the governing body. 3
(3) Once in each of 2 successive weeks immediately before the hearing date, 4
the Commission, at the expense of the applicant, shall provide weekly notice of the public 5
hearing and opportunity for public comment by advertisement in a newspaper of general 6
circulation in the county or municipal corporation affected by the application. 7
7–207.2. 8
(A) IN THIS SECTION, “GENERATING STATION ” DOES NOT INCLUDE : 9
(1) A GENERATING UNIT OR FACILITY THAT: 10
(I) IS USED FOR THE PRODUCT ION OF ELECTRICITY ; 11
(II) HAS THE CAPACITY TO PRODUCE NOT MORE THA N 2 12
MEGAWATTS OF ALTERNA TING CURRENT ; AND 13
(III) IS INSTALLED WITH EQ UIPMENT THAT PREVENT S THE FLOW 14
OF ELECTRICI TY TO THE ELECTRIC G RID DURING TIME PERI ODS WHEN THE 15
ELECTRIC GRID IS OUT OF SERVICE; OR 16
(2) A COMBINATION OF TWO OR MORE GENERATING U NITS OR 17
FACILITIES THAT: 18
(I) ARE USED FOR THE PRO DUCTION OF ELECTRICI TY; 19
(II) ARE LOCATED ON THE S AME PROPERTY OR ADJA CENT 20
PROPERTIES; 21
(III) HAVE THE CAPACITY TO PRODUCE , WHEN CALCULATED 22
CUMULATIVELY FOR ALL GENERATING UNITS OR FACILITIES ON THE PR OPERTY OR 23
ADJACENT PROPERTY , MORE THAN 2 MEGAWATTS OF ALTERNA TING CURRENT ; AND 24
(IV) FOR EACH INDIVIDUAL GENERATING UNIT OR FACILITY: 25
1. HAS THE CAPACITY TO PRODUCE NOT MORE THAN 2 26
MEGAWATTS OF ALTERNATING CURRE NT; 27
2. IS SEPARATELY METERE D BY THE ELECTRIC 28
COMPANY; AND 29 8 SENATE BILL 931
3. DOES NOT EXPORT ELEC TRICITY FOR SALE ON THE 1
WHOLESALE MARKET UND ER AN AGREEMENT WITH PJM INTERCONNECTION , LLC. 2
[(a)] (B) This section applies to a person who constructs a generating station 3
that: 4
(1) has the capacity to produce [at least] MORE THAN 2 megawatts of 5
electricity, AS MEASURED BY THE A LTERNATING CURRENT R ATING OF THE SYSTEM ’S 6
INVERTER, from a solar photovoltaic system; and 7
(2) is exempted under § 7–207.1 of this subtitle from the requirement to 8
obtain a certificate of public convenience and necessity. 9
[(b)] (C) (1) A person shall file an application for approval to construct a 10
generating station under § 7–207.1 of this subtitle at least 6 months before construction 11
commences. 12
(2) The Commission shall require a person who files an application for 13
approval to construct a generating station to pay a deposit of 1% of total installed costs. 14
[(c)] (D) (1) The Commission shall place any deposits collected under 15
subsection [(b)] (C) of this section into an escrow account. 16
(2) If a person demonstrates to the Commission that the person is fully 17
authorized to commence construction within 18 months after filing an application for 18
approval, the Commission shall refund the deposit, less reasonable administrative costs. 19
(3) (i) Subject to subparagraph (ii) of this paragraph, if a person does 20
not commence construction within 18 months after filing an application for approval, the 21
money held in the escrow account shall be: 22
1. deemed to be abandoned; and 23
2. transferred to the Maryland Strategic Energy Investment 24
Fund under § 9–20B–05 of the State Government Article, less reasonable administrative 25
costs. 26
(ii) 1. A person may request an extension for a project that does 27
not commence construction within 18 months after the filing of an application for approval. 28
2. The Commission may grant the request based on factors 29
the Commission considers compelling, including the occurrence of events outside the 30
person’s control. 31
SENATE BILL 931 9
SECTION 2. AND BE IT FURTHER ENACTED, That it is the intent of the General 1
Assembly that this Act apply to solar energy generating facilities and eligible 2
customer–generators authorized by an electric company to engage in net energy metering 3
under § 7–306 of the Public Utilities Article and COMAR 20.50.10.07. 4
SECTION 3. AND BE IT FURTHER ENACTED, That this Act shall take effect 5
October 1, 2023. 6