Maryland 2024 Regular Session

Maryland House Bill HB1112 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1	1
2	2
3	3		EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTING LA W.
4	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	5		hb1112
9	6
10	7		HOUSE BILL 1112
11	8		C5 4lr2475
12	9
13	10		By: Delegate Charkoudian
14	11		Introduced and read first time: February 7, 2024
15	12		Assigned to: Economic Matters
16		-	Committee Report: Favorable with amendments
17		-	House action: Adopted
18		-	Read second time: March 8, 2024
19	13
20		-	~~CHAPTER ______~~
	14	+	A BILL ENTITLED
21	15
22	16		AN ACT concerning 1
23	17
24		-	Public Service Commission – Energy Storage Devices – Acquisition and 2
25		-	Deployment 3
	18	+	Public Service Commission – Energy Storage Devices – Acquisition 2
26	19
27		-	FOR the purpose of establishing that a person that applies for a certificate of public 4
28		-	convenience and necessity in response to a certain order is eligible for an expedited 5
29		-	review process of the application; requiring the Public Service Commission to give 6
30		-	priority to the review of and final action on certain applications for a certificate of 7
31		-	public convenience and necessity; requiring the Public Service Commission to 8
32		-	determine whether the deployment of energy storage devices could help to avoid or 9
33		-	limit a reliability–must–run agreement with an energy generating system or facility 10
34		-	in the State under certain circumstances; requiring the Commission to facilitate the 11
35		-	acquisition of issue an order directing certain investor–owned electric companies to 12
36		-	construct, acquire, lease, or contract for energy storage devices under certain 13
37		-	circumstances; subjecting certain contracts entered into under this Act to a certain 14
38		-	project labor agreement; authorizing an investor–owned electric company to operate 15
39		-	an energy storage device in wholesale markets or other applications under certain 16
40		-	circumstances; and generally relating to the acquisition and deployment of energy 17
41		-	storage devices. 18
	20	+	FOR the purpose of requiring the Public Service Commission to determine whether the 3
	21	+	deployment of energy storage devices could help to avoid or limit a 4
	22	+	reliability–must–run agreement with an energy generating system or facility in the 5
	23	+	State under certain circumstances; requiring the Commission to facilitate the 6
	24	+	acquisition of energy storage devices under certain circumstances; subjecting certain 7
	25	+	contracts entered into under this Act to a certain project labor agreement; and 8
	26	+	generally relating to the acquisition of energy storage devices. 9
42	27
43		-	BY adding to 19
44		-	Article – Public Utilities 20
45		-	Section 7–207(i) and 7–216.2 21
46		-	Annotated Code of Maryland 22
47		-	(2020 Replacement Volume and 2023 Supplement) 23
	28	+	BY adding to 10
	29	+	Article – Public Utilities 11
	30	+	Section 7–216.2 12
	31	+	Annotated Code of Maryland 13
	32	+	(2020 Replacement Volume and 2023 Supplement) 14
	33	+
	34	+	SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 15
	35	+	That the Laws of Maryland read as follows: 16
	36	+
	37	+	Article – Public Utilities 17
	38	+
	39	+	7–216.2. 18
	40	+
	41	+	(A) (1) IN THIS SECTION THE FOLLOWING WORDS HAVE THE MEANING S 19
	42	+	INDICATED. 20
	43	+
	44	+	(2) “ENERGY STORAGE DEVICE ” HAS THE MEANING STAT ED IN § 21
	45	+	7–216 OF THIS SUBTITLE . 22
48	46		2 HOUSE BILL 1112
49	47
50	48
51		-	SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 1
52		-	That the Laws of Maryland read as follows: 2
	49	+	(3) “RELIABILITY–MUST–RUN AGREEMENT ” MEANS A CONTRACTUAL 1
	50	+	AGREEMENT OR ARRANGEMENT INTENDED TO KEEP A N ENERGY GENERATING 2
	51	+	SYSTEM OR FACILITY OPERATING PAST ITS P LANNED RETIREMENT DA TE TO MEET 3
	52	+	RELIABILITY CRITERIA . 4
53	53
54		-	Article – Public Utilities 3
	54	+	(B) (1) THE COMMISSION SHALL DETE RMINE, IN ACCORDANCE WITH 5
	55	+	PARAGRAPH (2) OF THIS SUBSECTION , WHETHER THE DEPLOYMENT OF ENERGY 6
	56	+	STORAGE DEVICES COUL D HELP TO AVOID OR L IMIT A RELIABIL ITY–MUST–RUN 7
	57	+	AGREEMENT WITH AN EN ERGY GENERATI NG SYSTEM OR FACILITY IN THE STATE. 8
55	58
56		-	7–207. 4
	59	+	(2) THE COMMISSION SHALL MAKE A DETERMINATION UNDER 9
	60	+	PARAGRAPH (1) OF THIS SUBSECTION : 10
57	61
58		-	(I) ~~(1) IF~~ A ~~PERSON IS REQUIR ED TO SUBMIT AN APPL ICATION FOR A 5~~
59		-	~~CERTIFICATE OF PUBLI C CONVENIENCE AND NE CESSITY IN RESPONSE TO~~ AN ~~ORDER 6~~
60		-	~~ISSUED UNDER § 7–216.2(C)(2)(I) OF THIS SUBTITLE : 7~~
	62	+	(I) ANY TIME THAT PJM INTERCONNECTION , LLC RECEIVES A 11
	63	+	DEACTIVATION NOTICE REGARDING AN ENERGY GENERATING SYSTEM OR FACILITY 12
	64	+	WITHIN THE STATE; OR 13
61	65
62		-	(I) ~~THE PERSON IS ELIGIB LE FOR~~ AN ~~EXPEDITED REVIEW 8~~
63		-	~~PROCESS OF THE APPLI CATION FOR THE CERTIFIC ATE OF PUBLIC CONVEN IENCE 9~~
64		-	~~AND NECESSITY REQUIR ED UNDER THIS SECTIO N; AND 10~~
	66	+	(II) WITHIN 3 YEARS OF AN EXPECTED RECEIPT OF A 14
	67	+	DEACTIVATION NOTICE R EGARDING AN ENERGY GENERATING SYSTEM O R FACILITY 15
	68	+	WITHIN THE STATE. 16
65	69
66		-	(II) THE COMMISSION ~~SHALL GIVE PRIORITY TO~~ THE ~~REVI EW~~ OF 11
67		-	~~AND FINAL ACTION ON THE APPLICATION OVER OTHER CERTIFICATE~~ OF ~~PUBLIC 12~~
68		-	~~CONVENIENCE AND NECE SSITY APPLICATIONS THAT ARE BEFOR E~~ THE ~~COMMISSION 13~~
69		-	~~FOR REVIEW AND FINAL ACTION. 14~~
	70	+	(C) (1) IF THE COMMISSION DETERMINES THAT THE USE OF AN ENERGY 17
	71	+	STORAGE DEVICE IS A COST–EFFECTIVE SOLUTION O R PART OF A COST–EFFECTIVE 18
	72	+	SOLUTION TO AVOID OR LIMIT A RELIABILITY –MUST–RUN AGREEMENT , THE 19
	73	+	COMMISSION SHALL : 20
70	74
71		-	(2) ON OR BEFORE DECEMBER 1, 2024, THE COMMISSION SHALL 15
72		-	ADOPT REGULATIONS OR ISSUE ORDERS ESTABLI SHING AN EXPEDITED R EVIEW 16
73		-	PROCESS FOR APPLICAT IONS FOR A CERTIFICA TE OF PUBLIC CONVENI ENCE AND 17
74		-	NECESSITY SUBMITTED UNDER THIS SUBSECTIO N. 18
	75	+	(I) FACILITATE THE ACQUIS ITION OF THE ENERGY STORAGE 21
	76	+	DEVICES, INCLUDING REQUIRING AN INVESTOR–OWNED ELECTRIC COMPA NY TO 22
	77	+	CONSTRUCT , ACQUIRE, LEASE, OR CONTRACT FOR AN E NERGY STORAGE FACILI TY; 23
75	78
76		-	7–216.2. 19
	79	+	(II) COORDINATE WITH PJM INTERCONNECTION , LLC TO 24
	80	+	IMPLEMENT THE OTHER PARTS OF THE COST –EFFECTIVE SO LUTION; AND 25
77	81
78		-	(A) ~~(1) IN THIS SECTION~~ THE ~~F OLLOWING WORDS HAVE THE MEANINGS 20~~
79		-	~~INDICATED~~. 21
	82	+	(III) DETERMINE THE APPROPR IATE AMOUNT OF COST 26
	83	+	RECOVERY FROM CUSTOMERS IN THE STATE. 27
80	84
81		-	(2) “ENERGY STORAGE DEVICE ” HAS THE MEANING STAT ED IN § 22
82		-	7–216 OF THIS SUBTITLE MEANS RESOURCES CAPA BLE OF: 23
	85	+	(2) IN FACILITATING THE ACQUISITION OF ENERG Y STORAGE 28
	86	+	DEVICES UNDER PARAGRAPH (1)(I) OF THIS SUBSECTION , THE COMMISSION SHALL 29
	87	+	CONSIDER THE MOST CO ST–EFFECTIVE OPTION OF THE FOLLOWING MODELS : 30
83	88
84		-	(I) ABSORBING ELECTRICAL ENERGY; 24
85		-
86		-	(II) STORING ELECTRICAL E NERGY FOR A PERIOD O F TIME; AND 25
87		-
88		-	(III) DELIVERING ELECTRICA L ENERGY FOR USE AT A LATER 26
89		-	TIME. 27
90		-
91		-	(3) (3) “ENERGY GENERATING SYS TEM” MEANS A SYSTEM OR 28
92		-	FACILITY THAT GENERA TES ELECTRICITY IN T HE STATE AND SELLS THE 29
93		-	ELECTRICITY INTO THE REGIONAL MARKET . 30
94		-	HOUSE BILL 1112 3
	89	+	(I) A “UTILITY–ONLY” MODEL UNDER WHICH TH E ELECTRIC 31
	90	+	COMPANY WOULD OWN TH E PROJECT, CONTROL THE PROJECT FOR ELECTRIC 32
	91	+	DISTRIBUTION SYSTEM RELIABILITY, AND OPERATE THE PROJ ECT IN WHOLESALE 33 HOUSE BILL 1112 3
95	92
96	93
97		-	(4) “RELIABILITY–MUST–RUN AGREEMENT ” MEANS A CONTRACTUAL 1
98		-	AGREEMENT OR ARRANGE MENT AN AGREEMENT APPROVE D BY THE FEDERAL 2
99		-	ENERGY REGULATORY COMMISSION THAT IS INTENDED TO KEEP AN ENERGY 3
100		-	GENERATING SYSTEM OR FACILITY OPERATING PAST ITS P LANNED RETIREMENT 4
101		-	DATE TO MEET REGIONAL RELIABILITY CRITERIA ESTABLISHED BY PJM 5
102		-	INTERCONNECTION , LLC. 6
	94	+	MARKETS OR FOR OTHER APPLICATIONS W HEN NOT PROVIDING ELECTRIC 1
	95	+	DISTRIBUTION SYSTEM SERVICES; 2
103	96
104		-	(B) (1) THE COMMISSION SHALL DETE RMINE, IN ACCORDANCE WITH 7
105		-	PARAGRAPH (2) PARAGRAPHS (2), (3), AND (4) OF THIS SUBSECTION , WHETHER THE 8
106		-	DEPLOYMENT OF ONE OR MORE ENERGY STORAGE DEVIC ES: 9
	97	+	(II) A “THIRD–PARTY OWNERSHIP ” MODEL UNDER WHICH TH E 3
	98	+	ELECTRIC COMPANY WOU LD: 4
107	99
108		-	(I) COULD HELP TO AVOID OR LIMIT A RELIABILI TY–MUST–RUN 10
109		-	AGREEMENT WITH AN EN ERGY GENERATING SYST EM OR FACILITY IN THE STATE; 11
	100	+	1. CONTRACT WITH A THIRD PARTY FOR A PR OJECT 5
	101	+	THAT IS OWNED BY THE THIRD P ARTY AND THAT PROVIDES ELECTRIC DISTRIBU TION 6
	102	+	SYSTEM RELIABILITY ; AND 7
110	103
111		-	(II) COULD PREVENT ADDED COSTS TO RATEPAYERS ; AND 12
	104	+	2. ALLOW THE THIRD PART Y TO OPERATE THE PRO JECT 8
	105	+	IN WHOLESALE MARKETS OR FOR OTHER APPLICATIONS W HEN THE PROJECT IS N OT 9
	106	+	PROVIDING ELECTRIC DISTRIBUTIO N SYSTEM SERVICES; OR 10
112	107
113		-	(III) IS IN THE PUBLIC INT EREST. 13
	108	+	(III) ANY OTHER OPTION S OR COMBINATION OF OPTIO NS THAT 11
	109	+	THE COMMISSION DETERMINES IS BENEFICIAL TO ELECTRICITY CUSTOMERS . 12
114	110
115		-	(2) THE COMMISSION SHALL MAKE A DETERMINATION UNDE R 14
116		-	PARAGRAPH (1) OF THIS SUBSECTION ANY TIME: 15
	111	+	(3) EACH CONTRACT ENTERED INTO UNDER THIS SUBS ECTION FOR 13
	112	+	THE CONSTRUCTION OF ENERGY STORAGE DEVIC ES OR FACILITIES SHA LL BE 14
	113	+	SUBJECT TO A PROJECT LABOR AGREEMENT THAT REQUIRES ALL CONTRACTORS 15
	114	+	AND SUBCONTRACTORS O N A CONTRACT TO: 16
117	115
118		-	(I) THE OFFICE OF PEOPLE’S COUNSEL, THE MARYLAND 16
119		-	ENERGY ADMINISTRATION , AN INVESTOR –OWNED ELECTRIC COMPA NY, OR ANY 17
120		-	OTHER PARTY SUBMITS A NOTICE TO THE COMMISSION PROVIDING EVIDENCE THAT 18
121		-	AN ENERGY GENERATING SYSTEM IS LIKELY TO BE DEACTIVATED AND M AY 19
122		-	NEGATIVELY IMPACT SY STEM RELIABILITY ; OR 20
	116	+	(I) PAY THE PREVAILING W AGE AS DETERMINED BY THE 17
	117	+	MARYLAND DEPARTMENT OF LABOR; AND 18
123	118
124		-	(II) ~~ANY TIME THAT PJM INTERCONNECTION , LLC RECEIVES,~~ 21
125		-	~~IN RESPONSE TO A DEACTIVATION NOTIC E REGARDING AN ENERG Y GENERATING 22~~
126		-	~~SYSTEM~~ OR FACILITY ~~WITHIN THE STATE; OR 23~~
	119	+	(II) HIRE REGISTERED APPR ENTICES TO PERFORM A T LEAST 19
	120	+	12.5% OF THE TOTAL WORK HO URS REQUIRED FOR T HE CONSTRUCTION OF THE 20
	121	+	BATTERY STORAGE DEVI CE OR FACILITY. 21
127	122
128		-	(II) WITHIN 3 YEARS OF AN EXPECTED RECEIPT OF A 24
129		-	DEACTIVATION NOTICE REGARDING AN ENERGY GENERATING SY STEM OR FACILITY 25
130		-	WITHIN THE STATE, DETERMINES THAT DEAC TIVATION OF THE ENER GY 26
131		-	GENERATING SYSTEM WO ULD NEGATIVELY IMPAC T SYSTEM RELIABILITY . 27
132		-
133		-	(3) (I) BEFORE MAKING A DETER MINATION UNDER PARAG RAPH 28
134		-	(1) OF THIS SUBSECT ION, THE COMMISSION SHALL : 29
135		-
136		-	1. REQUEST THAT PJM INTERCONNECTION , LLC 30
137		-	PROVIDE THE INFORMAT ION SPECIFIED UNDER SUBPARAGRAPH (II) OF THIS 31
138		-	PARAGRAPH TO THE COMMISSION IN A TIMEL Y MANNER; AND 32
139		-	4 HOUSE BILL 1112
140		-
141		-
142		-	2. REQUIRE THAT EACH IN VESTOR–OWNED ELECTRIC 1
143		-	COMPANY PROVIDE THE INFORMATION SPEC IFIED UNDER SUBPARAG RAPH (II) OF 2
144		-	THIS PARAGRAPH TO TH E COMMISSION IN A TIMEL Y MANNER. 3
145		-
146		-	(II) IN MAKING A DETERMINA TION UNDER PARAGRAPH (1) OF 4
147		-	THIS SUBSECTION , THE COMMISSION MAY USE AN Y OF THE FOLLOWING 5
148		-	INFORMATION PROVIDED BY PJM INTERCONNECTION , LLC OR AN 6
149		-	INVESTOR–OWNED ELECTRIC COMPA NY: 7
150		-
151		-	1. RELEVANT ANALYSES AN D ASSESSMENTS RELATE D 8
152		-	TO A POTENTIAL RELIA BILITY–MUST–RUN AGREEMENT ; 9
153		-
154		-	2. ECONOMIC PROJECTIONS , INCLUDING PROJECTION S 10
155		-	RELATED TO TRANSMISS ION AND DISTRIBUTION SYSTEM PLANNING; 11
156		-
157		-	3. RELIABILITY–MUST–RUN AGREEMENT COSTS AND 12
158		-	FUTURE WHOLESALE ELE CTRICITY COSTS AND R EVENUE; AND 13
159		-
160		-	4. INPUT FROM STATE AGENCIES AND OT HER 14
161		-	STAKEHOLDERS OR CONS ULTANTS WITH RELEVAN T TECHNICAL AND ECON OMIC 15
162		-	EXPERTISE. 16
163		-
164		-	(4) IN MAKING A DETERMINATION UNDER PARAGRAPH (1) OF THIS 17
165		-	SUBSECTION, THE COMMISSION SHALL CONS IDER: 18
166		-
167		-	(I) THE COST –EFFECTIVENESS OF DEP LOYING ENERGY 19
168		-	STORAGE DEVICES COMP ARED TO ALLOWING A R ELIABILITY–MUST–RUN 20
169		-	AGREEMENT TO PROCEED , INCLUDING WHETHER TH E POTENTIAL AVOIDE D COSTS 21
170		-	TO RATEPAYERS JUSTIF IES THE DEPLOYMENT O F ENERGY STORAGE DEV ICES; 22
171		-
172		-	(II) THE LEAD TIME REQUIR ED TO PROCURE THE NE CESSARY 23
173		-	MATERIALS, COMPONENTS , EQUIPMENT, AND LABOR TO DEPLOY THE APPROPRIATE 24
174		-	ENERGY STORAGE DEVIC ES; 25
175		-
176		-	(III) THE PERMITS AND OTHE R FEDERAL, STATE, OR LOCAL 26
177		-	AUTHORIZATIONS NECES SARY TO DEPLOY THE A PPROPRIATE ENERGY ST ORAGE 27
178		-	DEVICES; 28
179		-
180		-	(IV) OPERATIONAL DETAILS , CONSTRUCTION TIMELIN ES, AND 29
181		-	OTHER RELEVANT DETAI LS OF PROJECTS PJM INTERCONNECTION , LLC 30
182		-	APPROVES TO ENSURE R ELIABILITY FOLLOW ING THE RETIREMENT O F AN ENERGY 31
183		-	GENERATING SYSTEM ; AND 32
184		-	HOUSE BILL 1112 5
185		-
186		-
187		-	(V) ANY OTHER FACTORS TH E COMMISSION CONSIDERS 1
188		-	RELEVANT TO ITS DETE RMINATION. 2
189		-
190		-	(C) (1) IF THE COMMISSION DETERMINES THAT THE USE OF AN ONE OR 3
191		-	MORE ENERGY STORAGE DEVICE IS A COST –EFFECTIVE SOLUTI ON OR PART OF A 4
192		-	COST–EFFECTIVE SOLUTION TO DEVICES, ALONE OR AS A PART O F A 5
193		-	COMPREHENSIVE PACKAG E, WILL AVOID OR LIMIT A REL IABILITY–MUST–RUN 6
194		-	AGREEMENT AND IS IN THE PUBLIC INTEREST, THE COMMISSION SHALL : 7
195		-
196		-	(I) FACILITATE THE ACQUI SITION OF THE ENERGY STORAGE 8
197		-	DEVICES, INCLUDING REQUIRING AN INVESTOR–OWNED ELECTRIC COMPA NY TO 9
198		-	CONSTRUCT , ACQUIRE, LEASE, OR CONTRACT FOR AN E NERGY STORAGE FACILI TY; 10
199		-
200		-	(II) COORDINATE WITH PJM INTERCONNECTION , LLC TO 11
201		-	IMPLEMENT THE OTHER PARTS OF THE COST –EFFECTIVE SOLUTION ; AND 12
202		-
203		-	(III) DETERMINE THE APPROP RIATE AMOUNT OF COST 13
204		-	RECOVERY FROM CUSTOM ERS IN THE STATE NOTIFY PJM INTERCONNECTION , LLC 14
205		-	OF THE DETERMINATION ; AND 15
206		-
207		-	(II) REQUEST THAT PJM INTERCONNECTION , LLC PROVIDE 16
208		-	WRITTEN CONFIRMATION TO THE COMMISSION REGARDING WHETHER PJM 17
209		-	INTERCONNECTION , LLC IS: 18
210		-
211		-	1. LIKELY TO DIRECT OR AUTHORIZE THE 19
212		-	INTERCONNECTION OF A TRANSMISSION PROJECT RELATED TO THIS 20
213		-	DETERMINATION , INCLUDING THE CONSTR UCTION OF OR FACILIT ATING THE 21
214		-	CONSTRUCTION OF ANY NECESSARY ENERGY STO RAGE DEVICES ON THE 22
215		-	TRANSMISSION SYSTEM ; AND 23
216		-
217		-	2. UNLIKELY TO SEEK A R ELIABILITY–MUST–RUN 24
218		-	AGREEMENT FOR ANY PE RIOD OF TIME THAT TH E PROPOSED ENERGY ST ORAGE 25
219		-	DEVICE, ALONE OR AS A PART O F A COMPREHENSIVE PA CKAGE, WILL ADDRESS 26
220		-	RELIABILITY NEED . 27
221		-
222		-	(2) ON RECEIPT OF WRITTEN CONFIRMATION FROM PJM 28
223		-	INTERCONNECTION , LLC UNDER PARAGRAPH (1)(II) OF THIS SUBSECTION , THE 29
224		-	COMMISSION SHALL : 30
225		-
226		-	(I) ISSUE AN ORDER DIREC TING AN INVESTOR –OWNED 31
227		-	ELECTRIC COMPANY TO CONSTRUCT, ACQUIRE, LEASE, OR CONTRACT FOR ONE OR 32
228		-	MORE ENERGY STORAG E DEVICES OF A SIZE AND SCOPE THAT WOULD , ALONE OR AS 33
229		-	A PART OF A COMPREHE NSIVE PACKAGE , SATISFY THE RELIABIL ITY NEED 34 6 HOUSE BILL 1112
230		-
231		-
232		-	IDENTIFIED OR CONFIR MED BY PJM INTERCONNECTION , LLC THAT WOULD HAVE 1
233		-	OTHERWISE BEEN SATIS FIED BY A RELIABILIT Y–MUST–RUN AGREEMENT ; 2
234		-
235		-	(II) ENGAGE IN PERIODIC C OMMUNICATION AND 3
236		-	COORDINATION WITH PJM INTERCONNECTION , LLC REGARDING THE TIMELY 4
237		-	IMPLEMENTATION OF TH E CONSTRUCTION AND O PERATION OF TRANSMIS SION 5
238		-	SYSTEM COMPONENTS NE CESSARY TO SUPPORT , IN A COST–EFFECTIVE MANNER , 6
239		-	THE DETERMINATION MA DE UNDER PARAGRAPH (1) OF THIS SUBSECTION ; AND 7
240		-
241		-	(III) SUBJECT TO SUBSECTIO N (D) OF THIS SECTION, AUTHORIZE 8
242		-	AN INVESTOR –OWNED ELECTRIC COMPA NY TO RECOVER ANY VE RIFIABLE AND 9
243		-	PRUDENTLY INCURRED C OSTS ASSOCIATED WITH IMPLEMENTING THE 10
244		-	REQUIREMENTS OF THIS SECTION. 11
245		-
246		-	(2) (3) IN FACILITATING THE ACQ UISITION OF ENERGY S TORAGE 12
247		-	DEVICES ISSUING AN ORDER UNDER PARAGRAPH (1)(I) (2)(I) OF THIS SUBSECTION , 13
248		-	THE COMMISSION SHALL CONSIDER THE MOST CO ST–EFFECTIVE OPTION OF THE 14
249		-	FOLLOWING MODELS DETERMINE WHICH OF T HE FOLLOWING MODELS BES T SERVES 15
250		-	THE PUBLIC INTEREST : 16
251		-
252		-	(I) A “UTILITY–ONLY” MODEL UNDER WHICH TH E ELECTRIC 17
253		-	COMPANY WOULD OWN TH E PROJECT, CONTROL THE PROJECT FOR ELECTRIC 18
254		-	TRANSMISSION OR DISTRIBUTION SYSTEM RELIABILITY, AND, IF APPROPRIATE , 19
255		-	OPERATE THE PROJ ECT IN WHOLESALE MARKETS OR FOR OTHER APPLICATIONS 20
256		-	WHEN NOT PROVIDING E LECTRIC TRANSMISSION OR DISTRIBUTION SYSTEM 21
257		-	SERVICES; 22
258		-
259		-	(II) A “THIRD–PARTY OWNERSHIP ” MODEL UNDER WHICH THE 23
260		-	AN INVESTOR–OWNED ELECTRIC COMPANY WOU LD: 24
261		-
262		-	1. CONTRACT WITH A THIR D PARTY FOR A PROJECT 25
263		-	THAT IS OWNED BY THE THIRD PARTY AND THAT PROVIDES ELECTRIC 26
264		-	TRANSMISSION OR DISTRIBUTION SYSTEM RELIABILITY; AND 27
265		-
266		-	2. IF APPROPRIATE , ALLOW THE THIRD PART Y TO 28
267		-	OPERATE THE PROJECT IN WHOLESALE MARKETS OR FOR OTHER APPLICA TIONS 29
268		-	WHEN THE PROJECT IS NOT PROVIDING ELECTR IC TRANSMISSION OR DISTRIBUTION 30
269		-	SYSTEM SERVICES ; OR 31
270		-
271		-	(III) ANY OTHER OPTIONS OR COMBINATION OF OPTIO NS THAT 32
272		-	THE COMMISSION DETERMINES IS BENE FICIAL TO ELECTRICIT Y CUSTOMERS . 33
273		-
274		-	(3) (4) EACH CONTRACT ENTERED INTO UNDER THIS SUBS ECTION 34
275		-	FOR THE CONSTRUCTION OF ENERGY STORAGE DE VICES OR FACILITIES SHALL BE 35 HOUSE BILL 1112 7
276		-
277		-
278		-	SUBJECT TO A PROJECT LABOR AGREEMENT THAT REQUIRES REQUIRE ALL 1
279		-	CONTRACTOR S AND SUBCONTRACTORS ON A CONTRACT TO : 2
280		-
281		-	(I) PAY THE PREVAILING W AGE AS DETERMINED BY THE 3
282		-	MARYLAND DEPARTMENT OF LABOR; AND 4
283		-
284		-	(II) HIRE REGISTERED APPR ENTICES TO PERFORM A T LEAST 5
285		-	12.5% OF THE TOTAL WORK HO URS REQUIRED FOR THE CONSTRUCTION OF THE 6
286		-	BATTERY STORAGE DEVI CE OR FACILITY. 7
287		-
288		-	(D) (1) IF THE COMMISSION ISSUES AN ORDER DIRECTING AN 8
289		-	INVESTOR–OWNED ELECTRIC COMPA NY TO DEPLOY ONE OR MORE ENERGY 9
290		-	STORAGE DEVICES TO S UPPORT THE TRANSMISS ION SYSTEM IN ACCORD ANCE WITH 10
291		-	SUBSECTION (C) OF THIS SECTION , THE INVESTOR –OWNED ELECTRIC COMPA NY 11
292		-	SHALL SEEK RECOVERY OF THE COSTS TO DEPL OY THE ENERGY STO RAGE DEVICES: 12
293		-
294		-	(I) AS A TRANSMISSION AS SET WITH THE FEDERAL ENERGY 13
295		-	REGULATORY COMMISSION; AND 14
296		-
297		-	(II) IN A MANNER REASONAB LY ANTICIPATED TO MA XIMIZE THE 15
298		-	VALUE FOR CUSTOMERS OF THE INVESTOR –OWNED ELECTRIC COMPA NY. 16
299		-
300		-	(2) (I) SUBJECT TO APPROVAL B Y THE COMMISSION, AN 17
301		-	INVESTOR–OWNED ELECTRIC COMPA NY MAY RECOVER IN IT S DISTRIBUTION RATES 18
302		-	ANY PRUDENTLY INCURR ED COSTS TO DEPLOY O NE OR MORE ENERGY ST ORAGE 19
303		-	DEVICES THAT WERE NO T APPROVED FOR COST RECOVERY BY THE FEDERAL 20
304		-	ENERGY REGULATORY COMMISSION. 21
305		-
306		-	(II) AN INVESTOR –OWNED ELECTRIC COMPA NY THAT 22
307		-	RECOVERS THE COST OF DEPLOYING ONE OR MOR E ENERGY STORAGE DEV ICES IN 23
308		-	ITS DISTRIBUTION RAT ES SHALL OPERATE THE DEVICE IN A WAY THAT MAXIMIZES 24
309		-	THE VALUE OF THE DEV ICE FOR THE CUSTOMER S OF THE INVESTOR –OWNED 25
310		-	ELECTRIC COM PANY. 26
311		-
312		-	(3) AN INVESTOR–OWNED ELECTRIC COMPA NY THAT IS ORDERED T O 27
313		-	DEPLOY ONE OR MORE E NERGY STORAGE DEVICE S UNDER THIS SECTION IS 28
314		-	ENTITLED TO SEEK REC OVERY OF ITS VERIFIA BLE AND PRUDENTLY IN CURRED 29
315		-	COSTS, EVEN IF THE ENERGY S TORAGE DEVICE IS NOT DEPLOYED IN TIME TO AVOID 30
316		-	OR LIMIT A RELIABILI TY–MUST–RUN AGREEMENT , IF: 31
317		-
318		-	(I) FOR AN ENERGY STORAG E DEVICE THAT WAS NO T 32
319		-	DEPLOYED IN TIME TO AVOID OR LIMIT A REL IABILITY–MUST–RUN AGREEMENT , 33
320		-	THERE WAS A REASONAB LE EXPECTATION THAT THE ENERGY STORAGE D EVICE 34 8 HOUSE BILL 1112
321		-
322		-
323		-	WOULD HA VE BEEN DEPLOYED IN TIME TO AVOID OR LIM IT THE RELIABILITY–MUST–1
324		-	RUN AGREEMENT ; AND 2
325		-
326		-	(II) THE COSTS WERE NOT A PPROVED BY THE FEDERAL 3
327		-	ENERGY REGULATORY COMMISSION FOR RECOVE RY. 4
328		-
329		-	(E) SUBJECT TO APPROVAL B Y THE COMMISSION, AN INVESTOR–OWNED 5
330		-	ELECTRIC COMPA NY MAY OPERATE AN EN ERGY STORAGE DEVICE IN WHOLESALE 6
331		-	MARKETS OR OTHER APP LICATIONS WHEN THE E NERGY STORAGE DEVICE IS NOT 7
332		-	PROVIDING ELECTRICIT Y TO THE TRANSMISSIO N OR DISTRIBUTION SY STEM. 8
333		-
334		-	SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take eff ect 9
335		-	October June 1, 2024. 10
336		-
337		-
338		-
339		-
340		-	Approved:
341		-	________________________________________________________________________________
342		-	Governor.
343		-	________________________________________________________________________________
344		-	Speaker of the House of Delegates.
345		-	________________________________________________________________________________
346		-	President of the Senate.
	123	+	SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect 22
	124	+	October 1, 2024. 23