EXPLANATION: CAPITALS INDICATE MATTER ADDED TO EXIS TING LAW.
[Brackets] indicate matter deleted from existing law.
*hb1046*
HOUSE BILL 1046
C5 4lr2212
CF SB 1025
By: Delegate Clippinger
Introduced and read first time: February 7, 2024
Assigned to: Economic Matters
A BILL ENTITLED
AN ACT concerning 1
Public Utilities – Distributed Generation Certificate of Public Convenience and 2
Necessity 3
FOR the purpose of establishing a distributed generation certificate of public convenience 4
and necessity to authorize the construction and operation of a certain distributed 5
solar energy generating system; requiring the Power Plant Research Program to 6
develop and submit to the Public Service Commission proposed siting and design 7
requirements and licensing conditions; prohibiting a person from being required to 8
obtain a distributed generation certificate of public convenience and necessity until 9
certain regulations have been adopted; prohibiting a person from beginning 10
construction of a distributed solar energy generating system unless a distributed 11
generation certificate of public convenience and necessity is first obtained from the 12
Commission; requiring the Program to make a certain determination regarding a 13
proposed distributed solar energy generating system within a certain period of time; 14
establishing a process by which the Commission may grant a distributed generation 15
certificate of public convenience and necessity; providing the applications of certain 16
provisions; and generally relating to a distributed generation certificate of public 17
convenience and necessity. 18
BY repealing and reenacting, with amendments, 19
Article – Natural Resources 20
Section 3–306(a)(1) 21
Annotated Code of Maryland 22
(2023 Replacement Volume and 2023 Supplement) 23
BY repealing and reenacting, with amendments, 24
Article – Public Utilities 25
Section 7–207(b)(1)(i) and (ii) and 7–207.1(c)(1) 26
Annotated Code of Maryland 27
(2020 Replacement Volume and 2023 Supplement) 28
2 HOUSE BILL 1046
BY adding to 1
Article – Public Utilities 2
Section 7–207.3 3
Annotated Code of Maryland 4
(2020 Replacement Volume and 2023 Supplement) 5
Preamble 6
WHEREAS, The State has set aggressive minimum renewable energy requirements, 7
recognizing that a shift towards sustainable energy sources is crucial for the health of our 8
planet and the well–being of future generations; and 9
WHEREAS, The State has committed to reducing greenhouse gas emissions by 60% 10
from 2006 levels, reflecting a proactive stance in the global effort to combat climate change; 11
and 12
WHEREAS, Distributed solar generation is an essential component of meeting these 13
aggressive policies, offering both economic opportunities and environmental benefits; and 14
WHEREAS, The General Assembly finds that an efficient permitting process for 15
distributed solar energy generating stations with consistency across jurisdictions is 16
necessary to meet the State’s renewable energy and greenhouse gas reduction 17
commitments and can be structured to preserve farmland and forests; now, therefore, 18
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 19
That the Laws of Maryland read as follows: 20
Article – Natural Resources 21
3–306. 22
(a) (1) Notwithstanding anything to the contrary in this article or the Public 23
Utilities Article, on application to the Public Service Commission for a certificate of public 24
convenience and necessity associated with power plant construction IN ACCORDANCE 25
WITH § 7–207 OF THE PUBLIC UTILITIES ARTICLE, the Commission shall notify 26
immediately the Department [of Natural Resources] and the Department of the 27
Environment of the application. 28
Article – Public Utilities 29
7–207. 30
(b) (1) (i) [Unless] EXCEPT AS PROVIDED IN SUBPARAGRAPH (II) OF 31
THIS PARAGRAPH , UNLESS a certificate of public convenience and necessity for the 32
construction is first obtained from the Commission, a person may not begin construction in 33
the State of: 34
HOUSE BILL 1046 3
1. a generating station; or 1
2. a qualified generator lead line. 2
(ii) [If a person obtains Commission approval for construction under 3
§ 7–207.1 of this subtitle, the Commission shall exempt a person from the requirement to 4
obtain a certificate of public convenience and necessity under this section.] A PERSON IS 5
NOT REQUIRED TO OBTA IN A CERTIFICATE OF PUBLIC CONVENIENCE A ND 6
NECESSITY UNDER THIS SECTION IF THE PERSO N OBTAINS: 7
1. COMMISSION APPROVAL FOR CONSTRU CTION UNDER 8
§ 7–207.1 OF THIS SUBTITLE; OR 9
2. A DISTRIBUTED GENERATION CERTIFICATE OF 10
PUBLIC CONVENIENCE AND NECESSITY UNDER § 7–207.3 OF THIS SUBTITLE. 11
7–207.1. 12
(c) (1) The Commission shall require a person that is exempted from the 13
requirement to obtain a certificate of public convenience and necessity UNDER § 14
7–207(B)(1)(II)1 OF THIS SUBTITLE to obtain approval from the Commission under this 15
section before the person may construct a generating station described in subsection (b) of 16
this section. 17
7–207.3. 18
(A) (1) IN THIS SECTION THE F OLLOWING WORDS HAVE THE MEANINGS 19
INDICATED. 20
(2) “DISTRIBUTED GENERATION CERTIFICA TE OF PUBLIC 21
CONVENIENCE AND NECE SSITY” OR “DGCPCN” MEANS A CERTIFICATE ISSUED BY 22
THE COMMISSION UNDER THIS SECTION T HAT AUTHORIZES THE CONSTRUCTION 23
AND OPERATION OF A D ISTRIBUTED SOLAR ENERGY GENERATING SYSTEM. 24
(3) “DISTRIBUTED SOLAR ENERGY GENERATING SYSTEM” MEANS A 25
COMMUNITY SOLAR ENER GY GENERATING SYSTEM , AS DEFINED IN § 7–306.2 OF 26
THIS TITLE, THAT: 27
(I) HAS A CAPACITY TO PRODUCE MORE THAN 2 MEGAWATTS 28
BUT NOT MORE THAN 5 MEGAWATTS OF ALTERNATING CURRENT; AND 29
(II) IS NOT LOCATED WITHI N A MUNICIPAL CORPORATION . 30
(4) “POWER PLANT RESEARCH PROGRAM” MEANS THE PROGRAM 31 4 HOUSE BILL 1046
WITHIN THE DEPARTMENT OF NATURAL RESOURCES UNDER TITLE 3, SUBTITLE 3 1
OF THE NATURAL RESOURCES ARTICLE. 2
(B) (1) ON OR BEFORE JANUARY 1, 2025, THE POWER PLANT RESEARCH 3
PROGRAM, AFTER GIVING NOTICE AND OPPORT UNITY FOR PUBLIC COM MENT, 4
SHALL DEVELOP AND SU BMIT TO THE COMMISSION PROPOSED S TANDARD SITING 5
AND DESIGN REQUIREME NTS AND PROPOSED STA NDARD LICENSING COND ITIONS 6
FOR THE ISSUANCE OF A DGCPCN. 7
(2) IN DEVELOPING THE PRO POSED STANDARD SI TING AND DESIGN 8
REQUIREMENTS AND THE PROPOSED STANDARD LI CENSING CONDITIONS , THE 9
POWER PLANT RESEARCH PROGRAM SHALL CONSIDE R: 10
(I) ACHIEVEMENT OF THE STATE’S CLIMATE AND RENEWA BLE 11
ENERGY COMMITMENTS ; 12
(II) REASONABLE SETBACKS AND LANDSCAPE SCREEN ING 13
REQUIREMENTS ; 14
(III) ENVIRONMENTAL PRESER VATION, INCLUDING FOREST 15
CONSERVATION EXCEPT WHERE NECESSARY TO : 16
1. REDUCE SOLAR PANEL S HADING; 17
2. FACILITATE INTERCONN ECTION INFRASTRUCTUR E; 18
AND 19
3. ENSURE ADEQUATE SITE ACCESS; 20
(IV) STORMWATER MANAGEMENT , EROSION AND SEDIMENT 21
CONTROL, AND SITE STABILIZATI ON; 22
(V) MINIMIZATION AND MIT IGATION OF EFFECTS ON HISTORIC 23
SITES; 24
(VI) PUBLIC SAFETY; 25
(VII) INDUSTRY BEST PRACTI CES; AND 26
(VIII) LICENSING CONDITIONS PREVIOUSLY ADOPTED B Y THE 27
COMMISSION FOR SOLAR E NERGY GENERATING SYS TEMS. 28
(C) (1) ON OR BEFORE JULY 1, 2025, THE COMMISSION SHALL ADOP T 29 HOUSE BILL 1046 5
REGULATIONS TO : 1
(I) IMPLEMENT STANDARD S ITING AND DESIGN 2
REQUIREMENTS AND STA NDARD LICENSING COND ITIONS FOR A DGCPCN; 3
(II) SPECIFY THE FO RM OF THE APPLICATIO N FOR A 4
DISTRIBUTED SOLAR ENERGY GENERATING SY STEM TO RECEIVE A DGCPCN; AND 5
(III) SPECIFY THE COMMISSION’S PROCEDURE FOR PROC ESSING 6
AN APPLICATION FOR A DGCPCN, WHICH MAY INCLUDE AN EXPEDITED HEARING 7
BEFORE A PUBLIC UTIL ITY LAW JUDGE. 8
(2) THE COMMISSION SHALL CONS IDER THE PROPOSED ST ANDARD 9
SITING AND DESIGN RE QUIREMENTS AND THE P ROPOSED STANDARD LIC ENSING 10
CONDITIONS DEVELOPED BY THE POWER PLANT RESEARCH PROGRAM IN 11
ADOPTING THE REGULAT IONS UNDER THIS SUBS ECTION. 12
(D) NOTWITHSTANDING SUBSE CTION (E) OF THIS SECTION, A PERSON MAY 13
NOT BE REQUIRED TO O BTAIN A DGCPCN UNDER THIS SECTION UNTIL THE 14
COMMISSION ADOPTS THE REGULATIONS REQUIRED UNDER SUBSECTION (C) OF 15
THIS SECTION. 16
(E) (1) UNLESS A DGCPCN IS FIRST OBTAINED FR OM THE COMMISSION 17
IN ACCORDANCE WITH THIS SECTION, A PERSON MAY NOT BEG IN CONSTRUCTION IN 18
THE STATE OF A DISTRIBUTE D SOLAR ENERGY GENERATING SYSTEM . 19
(2) WHEN A PERSON SUBMITS AN APPLICATION FOR A DGCPCN TO 20
THE COMMISSION, THE PERSON SHALL SUBMIT A COPY OF THE APPLICAT ION TO: 21
(I) THE POWER PLANT RESEARCH PROGRAM; AND 22
(II) THE GOVERNING BODY O F THE COUNTY WHERE T HE 23
DISTRIBUTED SOLAR ENERGY GENERATING SYSTEM IS PROPOSED TO BE LOCAT ED. 24
(F) (1) THE COMMISSION SHALL PROV IDE AN OPPORTUNITY F OR PUBLIC 25
COMMENT AND HOLD A P UBLIC HEARING ON AN APPLICATION FOR A DGCPCN IN 26
EACH COUNTY IN WHICH ANY PORTION OF THE CONSTRUCTION OF THE 27
DISTRIBUTED SOLAR ENERGY GENERATING SYSTEM IS PROPOSED TO BE LOCAT ED. 28
(2) THE COMMISSION MAY HOLD T HE PUBLIC HEARING VI RTUALLY 29
RATHER THAN IN PERSO N IF THE COMMISSION PROVIDES A COMPARABLE 30
OPPORTUNITY FOR PUBL IC COMMENT AND PARTI CIPATION IN THE HEAR ING. 31
6 HOUSE BILL 1046
(G) (1) WITHIN 90 DAYS AFTER THE DATE AN APPLICATION FOR A 1
DGCPCN IS FILED WITH THE COMMISSION, THE POWER PLANT RESEARCH 2
PROGRAM SHALL : 3
(I) DETERMINE WHETHER TH E DISTRIBUTED SOLAR ENERGY 4
GENERATING SYSTEM SA TISFIES THE STANDARD SITING AND DESIGN 5
REQUIREMENTS AND STA NDARD LICENSING COND ITIONS FOR THE DGCPCN; AND 6
(II) NOTIFY THE COMMISSION IN WRITING AS TO THE 7
DETERMINATION MADE UNDER ITEM (I) OF THIS PARAGRAPH , INCLUDING HOW AN 8
APPLICATION THAT IS DETERMINED NOT TO SA TISFY THE STANDARD S ITING AND 9
DESIGN REQUIREMENTS AND STANDARD LICENSI NG CONDITIONS CAN CU RE THE 10
DEFICIENCY. 11
(2) IN MAKING A DETERMINA TION UNDER PARAGRAPH (1) OF THIS 12
SUBSECTION, THE POWER PLANT RESEARCH PROGRAM SHALL CONSIDE R PUBLIC 13
COMMENTS RECEIVED BY THE COMMISSION. 14
(H) (1) WITHIN 45 DAYS AFTER THE POWER PLANT RESEARCH 15
PROGRAM MAKES ITS DETERMINAT ION UNDER SUBSECTION (G)(1) OF THIS 16
SECTION, THE COMMISSION SHALL SCHE DULE AN ADMINISTRATIVE M EETING OR AN 17
EXPEDITED HEARING BE FORE A PUBLIC UTILIT Y LAW JUDGE TO CONSIDER THE 18
APPLICATION FOR A DGCPCN. 19
(2) AT THE ADMINISTRATIVE MEETING OR EXPEDITED HEARING 20
UNDER PARAGRAPH (1) OF THIS SUBSECTION , THE COMMISSION OR PUBLIC UTILITY 21
LAW JUDGE SHALL DETERMINE WHET HER THE PROPOSED DISTRIBUTED SOLAR 22
ENERGY GENERATING SYSTEM SATISFIES THE STANDA RD SITING AND DESIGN 23
REQUIREMENTS AND : 24
(I) IF THE COMMISSION OR PUBLIC UTILITY LAW JUDGE 25
DETERMINES THE PROPO SED DISTRIBUTED SOLA R ENERGY GENERATING SYSTEM 26
SATISFIES THE STANDA RD SITING AND DESIGN REQUIREMENTS , THE COMMISSION 27
SHALL GRANT A DGCPCN TO THE APPLICANT TO CONSTRUCT THE PROPOS ED 28
DISTRIBUTED SOLAR GE NERATING STATION SUB JECT TO THE STANDARD LICENSING 29
CONDITIONS; OR 30
(II) IF THE COMMISSION OR PUBLIC UTILITY LAW JUDGE 31
DETERMINES THE PROPO SED DISTRIBUTED SOLA R ENERGY GENERATING SYSTEM 32
DOES NOT SATISFY THE STAN DARD SITING AND DESI GN REQUIREMENTS , THE 33
COMMISSION SHALL GIVE THE APPLICANT A WRITTEN EXPLANATION OF WHY THE 34
DISTRIBUTED SOLAR ENERGY GENERATING SYSTEM DOES NOT SATISFY THE 35
STANDARD SITING AND DESIGN REQUIREMENTS AND HOW THE APPLICAN T CAN 36 HOUSE BILL 1046 7
CURE THE DEFICIENCY . 1
SECTION 2. AND BE IT FURTHER ENACTED, That this Act may not be applied 2
or interpreted to have any effect on or application to the construction or modification of any 3
solar energy generating system for which a certificate of public convenience and necessity 4
or other required approval was obtained before the effective date of the regulations adopted 5
by the Public Service Commission under § 7–207.3(c) of the Public Utilities Article, as 6
enacted by Section 1 of this Act. 7
SECTION 3. AND BE IT FURTHER ENACTED, That this Act shall take effect July 8
1, 2024. 9