EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
[Brackets] indicate matter deleted from existing law.
Underlining indicates amendments to bill.
Strike out indicates matter stricken from the bill by amendment or deleted from the law by
amendment.
*sb0931*
SENATE BILL 931
C5 3lr3073
CF HB 1188
By: Senator Hester
Introduced and read first time: February 16, 2023
Assigned to: Rules
Re–referred to: Education, Energy, and the Environment, February 24, 2023
Committee Report: Favorable with amendments
Senate action: Adopted
Read second time: March 24, 2023
CHAPTER ______
AN ACT concerning 1
Public Utilities – Certificate of Public Convenience and Necessity – Solar 2
Photovoltaic Systems and Meter Aggregation 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; requiring 7
an electric company to provide meter aggregation for certain eligible 8
customer–generators under certain circumstances; and generally relating to the 9
requirement to obtain a certificate certificates of public convenience and necessity 10
and meter aggregation. 11
BY repealing and reenacting, with amendments, 12
Article – Public Utilities 13
Section 7–207(a), 7–207.1, and 7–207.2 14
Annotated Code of Maryland 15
(2020 Replacement Volume and 2022 Supplement) 16
BY adding to 17
Article – Public Utilities 18
Section 7–306.3 19
Annotated Code of Maryland 20
(2020 Replacement Volume and 2022 Supplement) 21
2 SENATE BILL 931
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 1
That the Laws of Maryland read as follows: 2
Article – Public Utilities 3
7–207. 4
(a) (1) In this section the following words have the meanings indicated. 5
(2) “Brownfields site” means: 6
(i) a former industrial or commercial site identified by federal or 7
State laws or regulation as contaminated or polluted; 8
(ii) a closed landfill regulated by the Department of the 9
Environment; or 10
(iii) mined land. 11
(3) (i) “Construction” means: 12
1. any physical change at a site, including fabrication, 13
erection, installation, or demolition; or 14
2. the entry into a binding agreement or contractual 15
obligation to purchase equipment exclusively for use in construction in the State or to 16
undertake a program of actual construction in the State which cannot be canceled or 17
modified without substantial loss to the owner or operator of the proposed generating 18
station. 19
(ii) “Construction” does not include a change that is needed for the 20
temporary use of a site or route for nonutility purposes or for use in securing geological 21
data, including any boring that is necessary to ascertain foundation conditions. 22
(4) “GENERATING STATION ” DOES NOT INCLUDE : 23
(I) A GENERATING UNIT OR FACILITY THAT: 24
1. IS USED FOR THE PROD UCTION OF ELECTRICIT Y; 25
2. HAS THE CAPACITY TO PRODUCE NOT MORE THA N 2 26
MEGAWATTS OF ALTERNA TING CURRENT ; AND 27
3. IS INSTALLED WITH EQ UIPMENT THAT PREVENT S THE 28
FLOW OF ELECTRICITY TO THE ELECTRIC GRID DURING TIME PERIODS WHEN THE 29
ELECTRIC GRID IS OUT OF SERVICE; OR 30 SENATE BILL 931 3
(II) A COMBINATION OF TWO OR MORE GENERATING U NITS OR 1
FACILITIES THAT: 2
1. ARE USED FOR THE PRO DUCTION OF ELECTRICI TY 3
FROM A SOLAR PHOTOVO LTAIC SYSTEM OR AN E LIGIBLE CUSTOMER –GENERATOR 4
THAT IS SUBJECT TO T HE PROVISIONS OF § 7–306 OF THIS TITLE; 5
2. ARE LOCATED ON THE S AME PROPERTY OR ADJA CENT 6
PROPERTIES; 7
3. HAVE THE CAPACITY TO PRODUCE, WHEN 8
CALCULATED CUMULATIV ELY FOR ALL GENERATI NG UNITS OR FACILITI ES ON THE 9
PROPERTY OR ADJACENT PROPERTY, MORE THAN 2 MEGAWATTS BUT NOT MORE 10
THAN 14 MEGAWATTS OF ALTERNATING CURRE NT; AND 11
4. FOR EACH INDIVIDUAL GENERATING UNIT OR 12
FACILITY: 13
A. HAS THE CAPACITY TO PRODUCE NOT MORE THA N 2 14
MEGAWATTS OF ALTERNA TING CURRENT ; 15
B. IS SEPARATELY METERE D BY THE ELECTRIC 16
COMPANY; AND 17
C. DOES NOT EXPORT ELEC TRICITY FOR SALE ON THE 18
WHOLESALE MARKET UND ER AN AGREEMENT WITH PJM INTERCONNECTION , LLC. 19
[(4)] (5) (i) “Mined land” means the surface or subsurface of an area 20
in which surface mining operations will be, are being, or have been conducted. 21
(ii) “Mined land” includes: 22
1. private ways and roads used for mining appurtenant to 23
any surface mining area; 24
2. land excavations; 25
3. workings; and 26
4. overburden. 27
[(5)] (6) “Qualified generator lead line” means an overhead transmission 28
line that is designed to carry a voltage in excess of 69,000 volts and would allow an 29 4 SENATE BILL 931
out–of–state Tier 1 or Tier 2 renewable source to interconnect with a portion of the electric 1
system in Maryland that is owned by an electric company. 2
7–207.1. 3
(A) IN THIS SECTION, “GENERATING STATION ” DOES NOT INCLUDE : 4
(1) A GENERATING UNIT OR FACILITY THAT: 5
(I) IS USED FOR THE PROD UCTION OF ELECTRICIT Y; 6
(II) HAS THE CAPACITY TO PRODUCE NOT MORE THAN 2 7
MEGAWATTS OF ALTERNA TING CURRENT ; AND 8
(III) IS INSTALLED WITH EQ UIPMENT THAT PREVENT S THE FLOW 9
OF ELECTRICITY TO TH E ELECTRIC GRID DURI NG TIME PERIODS WHEN THE 10
ELECTRIC GRID IS OUT OF SERVICE; OR 11
(2) A COMBINATION OF TWO OR MORE GENERATING U NITS OR 12
FACILITIES THAT: 13
(I) ARE USED FOR THE PRO DUCTION OF ELECTRICI TY FROM A 14
SOLAR PHOTOVOLTAIC S YSTEM OR AN ELIGIBLE CUSTOMER–GENERATOR THAT IS 15
SUBJECT TO THE PROVI SIONS OF § 7–306 OF THIS TITLE; 16
(II) ARE LOCATED ON THE S AME PROPERTY OR ADJA CENT 17
PROPERTIES; 18
(III) HAVE THE CAPACITY TO PRODUCE, WHEN CALCULATED 19
CUMULATIVELY FOR ALL GENERATING UNITS OR FACILITIES ON THE PR OPERTY OR 20
ADJACENT PROPERTY , MORE THAN 2 MEGAWATTS BUT NOT MORE THAN 14 21
MEGAWATTS OF ALTERNATING CURRE NT; AND 22
(IV) FOR EACH INDIVIDUAL GENERAT ING UNIT OR FACILITY : 23
1. HAS THE CAPACITY TO PRODUCE NOT MORE THA N 2 24
MEGAWATTS OF ALTERNA TING CURRENT ; 25
2. IS SEPARATELY METERE D BY THE ELECTRIC 26
COMPANY; AND 27
3. DOES NOT EXPORT ELEC TRICITY FOR SALE ON THE 28
WHOLESALE MARKET UNDER AN AGREEMENT W ITH PJM INTERCONNECTION , LLC. 29
[(a)] (B) This section applies to a person who: 30 SENATE BILL 931 5
(1) constructs a generating station: 1
(i) designed to provide on–site generated electricity if: 2
1. the capacity of the generating station does not exceed 70 3
megawatts; and 4
2. the electricity that may be exported for sale from the 5
generating station to the electric system is sold only on the wholesale market pursuant to 6
an interconnection, operation, and maintenance agreement with the local electric company; 7
or 8
(ii) that produces electricity from wind if: 9
1. the generating station is land–based; 10
2. the capacity of the generating station does not exceed 70 11
megawatts; 12
3. the electricity that may be exported for sale from the 13
generating station to the electric system is sold only on the wholesale market pursuant to 14
an interconnection, operation, and maintenance agreement with the local electric company; 15
4. the Commission provides an opportunity for public 16
comment at a public hearing as provided in subsection [(f)] (G) of this section; and 17
5. the generating station’s wind turbines are not located 18
within a distance from the Patuxent River Naval Air Station that is determined by 19
regulations adopted by the Commission in coordination with the Commander, Naval Air 20
Warfare Center Aircraft Division, provided that the distance requirement under the 21
regulation is: 22
A. not greater than is necessary to encompass an area in 23
which utility scale wind turbines could create Doppler radar interference for missions at 24
the Patuxent River Naval Air Station; 25
B. not greater than 46 miles, measured from location 26
38.29667N, 76.37668W; and 27
C. subject to modification if necessary to reflect changes in 28
missions or technology at the Patuxent River Naval Air Station or changes in wind energy 29
technology; or 30
(2) constructs a generating station if: 31
6 SENATE BILL 931
(i) the capacity of the generating station does not exceed 25 1
megawatts; 2
(ii) the electricity that may be exported for sale from the generating 3
station to the electric system is sold only on the wholesale market pursuant to an 4
interconnection, operation, and maintenance agreement with the local electric company; 5
and 6
(iii) at least 10% of the electricity generated at the generating station 7
each year is consumed on–site. 8
[(b)] (C) (1) The Commission shall require a person that is exempted from 9
the requirement to obtain a certificate of public convenience and necessity to obtain 10
approval from the Commission under this section before the person may construct a 11
generating station described in subsection [(a)] (B) of this section. 12
(2) An application for approval under this section shall: 13
(i) be made to the Commission in writing on a form adopted by the 14
Commission; 15
(ii) be verified by oath or affirmation; and 16
(iii) contain information that the Commission requires, including: 17
1. proof of compliance with all applicable requirements of the 18
independent system operator; and 19
2. a copy of an interconnection, operation, and maintenance 20
agreement between the generating station and the local electric company. 21
[(c)] (D) On receipt of an application for approval under this section, the 22
Commission shall provide notice immediately or require the applicant to provide notice 23
immediately of the application to: 24
(1) the governing body of each county or municipal corporation in which 25
any portion of the generating station is proposed to be constructed; 26
(2) the governing body of each county or municipal corporation within 1 27
mile of the proposed location of the generating station; 28
(3) each member of the General Assembly representing any part of a county 29
in which any portion of the generating station is proposed to be constructed; and 30
(4) each member of the General Assembly representing any part of each 31
county within 1 mile of the proposed location of the generating station. 32
SENATE BILL 931 7
[(d)] (E) When reviewing an application for approval under this section, the 1
Commission shall: 2
(1) ensure the safety and reliability of the electric system; 3
(2) require the person constructing the generating station to notify the 4
Commission 2 weeks before the first export of electricity from a generating station approved 5
under this section; and 6
(3) conduct its review and approval in an expeditious manner. 7
[(e)] (F) Except for the notice required under subsection [(c)] (D) of this section, 8
the Commission may waive an element of the approval process under this section if the 9
Commission determines that the waiver is in the public interest. 10
[(f)] (G) (1) The Commission shall provide an opportunity for public 11
comment and hold a public hearing as provided under this subsection on an application for 12
approval made under subsection [(a)(1)(ii)] (B)(1)(II) of this section in each county and 13
municipal corporation in which any portion of the construction of a generating station is 14
proposed to be located. 15
(2) Upon the request of the governing body of a county or municipal 16
corporation in which any portion of the construction of a generating station is proposed to 17
be located, the Commission shall hold the public hearing jointly with the governing body. 18
(3) Once in each of 2 successive weeks immediately before the hearing date, 19
the Commission, at the expense of the applicant, shall provide weekly notice of the public 20
hearing and opportunity for public comment by advertisement in a newspaper of general 21
circulation in the county or municipal corporation affected by the application. 22
7–207.2. 23
(A) IN THIS SECTION, “GENERATING STATION ” DOES NOT INCLUDE : 24
(1) A GENERATING UNIT OR FACILITY THAT: 25
(I) IS USED FOR THE PROD UCTION OF ELECTRICIT Y; 26
(II) HAS THE CAPACITY TO PRODUCE NOT MORE THA N 2 27
MEGAWATTS OF ALTERNA TING CURRENT ; AND 28
(III) IS INSTALLED WITH EQ UIPMENT THAT PREVENT S THE FLOW 29
OF ELECTRICITY TO THE E LECTRIC GRID DURING TIME PERIODS WHEN TH E 30
ELECTRIC GRID IS OUT OF SERVICE; OR 31
8 SENATE BILL 931
(2) A COMBINATION OF TWO OR MORE GENERATING U NITS OR 1
FACILITIES THAT: 2
(I) ARE USED FOR THE PRO DUCTION OF ELECTRICI TY FROM A 3
SOLAR PHOTOVOLTAIC S YSTEM OR AN ELIGIBLE CUSTOM ER–GENERATOR THAT IS 4
SUBJECT TO THE PROVI SIONS OF § 7–306 OF THIS TITLE; 5
(II) ARE LOCATED ON THE S AME PROPERTY OR ADJA CENT 6
PROPERTIES; 7
(III) HAVE THE CAPACITY TO PRODUCE, WHEN CALCULATED 8
CUMULATIVELY FOR ALL GENERATING UNITS OR FACILITIES ON THE PR OPERTY OR 9
ADJACENT PROPERTY , MORE THAN 2 MEGAWATTS BUT NOT MORE THAN 14 10
MEGAWATTS OF ALTERNATING CURRE NT; AND 11
(IV) FOR EACH INDIVIDUAL GENERATING UNIT OR F ACILITY: 12
1. HAS THE CAPACITY TO PRODUCE NOT MORE THA N 2 13
MEGAWATTS OF ALTERNATING CURRENT ; 14
2. IS SEPARATELY METERE D BY THE ELECTRIC 15
COMPANY; AND 16
3. DOES NOT EXPORT ELEC TRICITY FOR SALE ON THE 17
WHOLESALE MARKET UND ER AN AGREEMENT WITH PJM INTERCONNECTION , LLC. 18
[(a)] (B) This section applies to a person who constructs a generating station 19
that: 20
(1) has the capacity to produce [at least] MORE THAN 2 megawatts of 21
electricity, AS MEASURED BY THE A LTERNATING CURRENT R ATING OF THE SYSTEM ’S 22
INVERTER, from a solar photovoltaic system; and 23
(2) is exempted under § 7–207.1 of this subtitle from the requirement to 24
obtain a certificate of public convenience and necessity. 25
[(b)] (C) (1) A person shall file an application for approval to construct a 26
generating station under § 7–207.1 of this subtitle at least 6 months before construction 27
commences. 28
(2) The Commission shall require a person who files an application for 29
approval to construct a generating station to pay a deposit of 1% of total installed costs. 30
[(c)] (D) (1) The Commission shall place any deposits collected under 31
subsection [(b)] (C) of this section into an escrow account. 32 SENATE BILL 931 9
(2) If a person demonstrates to the Commission that the person is fully 1
authorized to commence construction within 18 months after filing an application for 2
approval, the Commission shall refund the deposit, less reasonable administrative costs. 3
(3) (i) Subject to subparagraph (ii) of this paragraph, if a person does 4
not commence construction within 18 months after filing an application for approval, the 5
money held in the escrow account shall be: 6
1. deemed to be abandoned; and 7
2. transferred to the Maryland Strategic Energy Investment 8
Fund under § 9–20B–05 of the State Government Article, less reasonable administrative 9
costs. 10
(ii) 1. A person may request an extension for a project that does 11
not commence construction within 18 months after the filing of an application for approval. 12
2. The Commission may grant the request based on factors 13
the Commission considers compelling, including the occurrence of events outside the 14
person’s control. 15
7–306.3. 16
(A) IN THIS SECTION , “ELIGIBLE CUSTOMER –GENERATOR ” HAS THE 17
MEANING STATED IN § 7–306 OF THIS SUBTITLE . 18
(B) AN ELECTRIC COMPANY S HALL PROVIDE METER A GGREGATION FOR AN 19
ELIGIBLE CUSTOMER –GENERATOR THAT : 20
(1) SUBMITS A REQUEST , IN WRITING, TO THE ELECTRIC COMP ANY 21
FOR THE PROVISION OF METER AGGREGATION ; AND 22
(2) (I) USES ELECTRICAL SERV ICE FOR AGRICULTURE ; 23
(II) IS A NONPROFIT ORGAN IZATION; 24
(III) IS A MUNICIPAL OR CO UNTY GOVERNMENT , OR AN 25
ORGANIZATION A FFILIATED WITH THE M UNICIPAL OR COUNTY G OVERNMENT ; 26
(IV) IS A UNIT OF STATE GOVERNMENT ; OR 27
(V) IS A PUBLIC SENIOR H IGHER EDUCATION INST ITUTION, AS 28
DEFINED IN § 10–101 OF THE EDUCATION ARTICLE. 29
10 SENATE BILL 931
(C) AN ELECTRIC COMPANY S HALL REQUIRE AN ELIG IBLE 1
CUSTOMER–GENERATOR THAT REQUE STS METER AGGREGATIO N UNDER THIS 2
SECTION TO PROVIDE W RITTEN ALLOCATION IN STRUCTIONS DESCRIBIN G HOW TO 3
DISTRIBUTE THE ELIGI BLE CUSTOMER –GENERATOR ’S EXCESS GENERATION 4
CREDITS TO EACH ACCO UNT BEFORE THE COMME NCEMENT OF ANY METER 5
AGGREGATION. 6
SECTION 2. AND BE IT FURTHER ENACTED, That it is the intent of the General 7
Assembly that this Act apply only to solar energy generating facilities and eligible 8
customer–generators authorized by an electric company to engage in net energy metering 9
under § 7–306 of the Public Utilities Article and COMAR 20.50.10.07. 10
SECTION 3. AND BE IT FURTHER ENACTED, That this Act shall take effect 11
October 1, 2023. 12
Approved:
________________________________________________________________________________
Governor.
________________________________________________________________________________
President of the Senate.
________________________________________________________________________________
Speaker of the House of Delegates.