EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTING LA W.
[Brackets] indicate matter deleted from existing law.
*hb1112*
HOUSE BILL 1112
C5 4lr2475
By: Delegate Charkoudian
Introduced and read first time: February 7, 2024
Assigned to: Economic Matters
A BILL ENTITLED
AN ACT concerning 1
Public Service Commission – Energy Storage Devices – Acquisition 2
FOR the purpose of requiring the Public Service Commission to determine whether the 3
deployment of energy storage devices could help to avoid or limit a 4
reliability–must–run agreement with an energy generating system or facility in the 5
State under certain circumstances; requiring the Commission to facilitate the 6
acquisition of energy storage devices under certain circumstances; subjecting certain 7
contracts entered into under this Act to a certain project labor agreement; and 8
generally relating to the acquisition of energy storage devices. 9
BY adding to 10
Article – Public Utilities 11
Section 7–216.2 12
Annotated Code of Maryland 13
(2020 Replacement Volume and 2023 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
7–216.2. 18
(A) (1) IN THIS SECTION THE FOLLOWING WORDS HAVE THE MEANING S 19
INDICATED. 20
(2) “ENERGY STORAGE DEVICE ” HAS THE MEANING STAT ED IN § 21
7–216 OF THIS SUBTITLE . 22
2 HOUSE BILL 1112
(3) “RELIABILITY–MUST–RUN AGREEMENT ” MEANS A CONTRACTUAL 1
AGREEMENT OR ARRANGEMENT INTENDED TO KEEP A N ENERGY GENERATING 2
SYSTEM OR FACILITY OPERATING PAST ITS P LANNED RETIREMENT DA TE TO MEET 3
RELIABILITY CRITERIA . 4
(B) (1) THE COMMISSION SHALL DETE RMINE, IN ACCORDANCE WITH 5
PARAGRAPH (2) OF THIS SUBSECTION , WHETHER THE DEPLOYMENT OF ENERGY 6
STORAGE DEVICES COUL D HELP TO AVOID OR L IMIT A RELIABIL ITY–MUST–RUN 7
AGREEMENT WITH AN EN ERGY GENERATI NG SYSTEM OR FACILITY IN THE STATE. 8
(2) THE COMMISSION SHALL MAKE A DETERMINATION UNDER 9
PARAGRAPH (1) OF THIS SUBSECTION : 10
(I) ANY TIME THAT PJM INTERCONNECTION , LLC RECEIVES A 11
DEACTIVATION NOTICE REGARDING AN ENERGY GENERATING SYSTEM OR FACILITY 12
WITHIN THE STATE; OR 13
(II) WITHIN 3 YEARS OF AN EXPECTED RECEIPT OF A 14
DEACTIVATION NOTICE R EGARDING AN ENERGY GENERATING SYSTEM O R FACILITY 15
WITHIN THE STATE. 16
(C) (1) IF THE COMMISSION DETERMINES THAT THE USE OF AN ENERGY 17
STORAGE DEVICE IS A COST–EFFECTIVE SOLUTION O R PART OF A COST–EFFECTIVE 18
SOLUTION TO AVOID OR LIMIT A RELIABILITY –MUST–RUN AGREEMENT , THE 19
COMMISSION SHALL : 20
(I) FACILITATE THE ACQUIS ITION OF THE ENERGY STORAGE 21
DEVICES, INCLUDING REQUIRING AN INVESTOR–OWNED ELECTRIC COMPA NY TO 22
CONSTRUCT , ACQUIRE, LEASE, OR CONTRACT FOR AN E NERGY STORAGE FACILI TY; 23
(II) COORDINATE WITH PJM INTERCONNECTION , LLC TO 24
IMPLEMENT THE OTHER PARTS OF THE COST –EFFECTIVE SO LUTION; AND 25
(III) DETERMINE THE APPROPR IATE AMOUNT OF COST 26
RECOVERY FROM CUSTOMERS IN THE STATE. 27
(2) IN FACILITATING THE ACQUISITION OF ENERG Y STORAGE 28
DEVICES UNDER PARAGRAPH (1)(I) OF THIS SUBSECTION , THE COMMISSION SHALL 29
CONSIDER THE MOST CO ST–EFFECTIVE OPTION OF THE FOLLOWING MODELS : 30
(I) A “UTILITY–ONLY” MODEL UNDER WHICH TH E ELECTRIC 31
COMPANY WOULD OWN TH E PROJECT, CONTROL THE PROJECT FOR ELECTRIC 32
DISTRIBUTION SYSTEM RELIABILITY, AND OPERATE THE PROJ ECT IN WHOLESALE 33 HOUSE BILL 1112 3
MARKETS OR FOR OTHER APPLICATIONS W HEN NOT PROVIDING ELECTRIC 1
DISTRIBUTION SYSTEM SERVICES; 2
(II) A “THIRD–PARTY OWNERSHIP ” MODEL UNDER WHICH TH E 3
ELECTRIC COMPANY WOU LD: 4
1. CONTRACT WITH A THIRD PARTY FOR A PR OJECT 5
THAT IS OWNED BY THE THIRD P ARTY AND THAT PROVIDES ELECTRIC DISTRIBU TION 6
SYSTEM RELIABILITY ; AND 7
2. ALLOW THE THIRD PART Y TO OPERATE THE PRO JECT 8
IN WHOLESALE MARKETS OR FOR OTHER APPLICATIONS W HEN THE PROJECT IS N OT 9
PROVIDING ELECTRIC DISTRIBUTIO N SYSTEM SERVICES; OR 10
(III) ANY OTHER OPTION S OR COMBINATION OF OPTIO NS THAT 11
THE COMMISSION DETERMINES IS BENEFICIAL TO ELECTRICITY CUSTOMERS . 12
(3) EACH CONTRACT ENTERED INTO UNDER THIS SUBS ECTION FOR 13
THE CONSTRUCTION OF ENERGY STORAGE DEVIC ES OR FACILITIES SHA LL BE 14
SUBJECT TO A PROJECT LABOR AGREEMENT THAT REQUIRES ALL CONTRACTORS 15
AND SUBCONTRACTORS O N A CONTRACT TO: 16
(I) PAY THE PREVAILING W AGE AS DETERMINED BY THE 17
MARYLAND DEPARTMENT OF LABOR; AND 18
(II) HIRE REGISTERED APPR ENTICES TO PERFORM A T LEAST 19
12.5% OF THE TOTAL WORK HO URS REQUIRED FOR T HE CONSTRUCTION OF THE 20
BATTERY STORAGE DEVI CE OR FACILITY. 21
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect 22
October 1, 2024. 23