Maryland 2024 2024 Regular Session

Maryland House Bill HB1256 Introduced / Bill

Filed 02/08/2024

                     
 
EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW. 
        [Brackets] indicate matter deleted from existing law. 
          *hb1256*  
  
HOUSE BILL 1256 
M5, C5   	4lr1718 
    	CF SB 959 
By: Delegate Fraser–Hidalgo 
Introduced and read first time: February 8, 2024 
Assigned to: Economic Matters 
 
A BILL ENTITLED 
 
AN ACT concerning 1 
 
Electricity – Tariffs, Distributed Energy Resources, and Electric Distribution 2 
System Support Services 3 
(Distributed Renewable Integration and Vehicle Electrification (DRIVE) Act) 4 
 
FOR the purpose of requiring the Public Service Commission, on or before a certain date, 5 
to adopt a transition plan requiring each electric company to transition customers to 6 
a certain time–of–use tariff on or before a certain date; requiring the Commission to 7 
adopt certain regulations on or before a certain date regarding the interconnection 8 
of certain systems to the electric distribution system; prohibiting an electric company 9 
from requiring a certain customer to enter into a certain contract or apply for 10 
interconnection with the electric distribution system; requiring the Commission to 11 
develop a program for each electric company to establish a pilot program or 12 
temporary tariff to compensate certain persons for electric distribution system 13 
support services in a certain manner; requiring each electric company to submit the 14 
pilot program or temporary tariff to the Commission for approval on or before a 15 
certain date; requiring the Commission to approve a certain pilot program or tariff 16 
by a certain date; authorizing the Commission to approve or require an electric 17 
company to offer certain incentives or rebates under certain circumstances; requiring 18 
the Commission to consider establishing a certain limit on the amount of certain 19 
incentives or rebates; authorizing an electric company to recover certain costs; 20 
prohibiting the dispatch of energy from a certain energy storage device to the electric 21 
distribution system under a pilot program or temporary tariff from being considered 22 
duplicative of any value realized by a certain customer through net energy metering; 23 
and generally relating to the generation and provision of electricity in the State.  24 
 
BY adding to 25 
 Article – Public Utilities 26 
Section 7–1001 through 7–1008 to be under the new subtitle “Subtitle 10. Electric 27 
Distribution System Support Services” 28 
 Annotated Code of Maryland 29 
 (2020 Replacement Volume and 2023 Supplement) 30  2 	HOUSE BILL 1256  
 
 
 
 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 
 
SUBTITLE 10. ELECTRIC DISTRIBUTION SYSTEM SUPPORT SERVICES. 4 
 
7–1001. 5 
 
 (A) IN THIS SUBTITLE THE FOLLOWING WORDS HAVE THE MEANINGS 6 
INDICATED. 7 
 
 (B) “BENEFICIAL ELECTRIFIC ATION” MEANS REPLACING DIRECT FOSSIL 8 
FUEL USE WITH ELECTRICITY . 9 
 
 (C) “BIDIRECTIONAL ELECTRI C VEHICLE” MEANS AN ELECTRIC VE HICLE 10 
THAT IS CAPABLE OF BOTH RECEIVING AND DISCHARGING ELEC TRICITY. 11 
 
 (D) “DISTRIBUTED ENERGY RE SOURCE” MEANS AN ENERGY RESOURCE 12 
LOCATED ON A CUSTOME R’S PREMISES THAT : 13 
 
 (1) PRODUCES OR STORES E LECTRICITY; OR 14 
 
 (2) MODIFIES THE TIMING OR AMOUNT OF THE CUS TOMER’S 15 
ELECTRICITY CONSUMPT ION. 16 
 
 (E) (1) “ELECTRIC DISTRIBUTION SYSTEM SUPPORT SERVICES ” MEANS 17 
THE DISPATCH AND CONTROL OF A DISTRIBUTED ENE RGY RESOURCE TO PROV IDE 18 
SERVICES THAT CONTRI BUTE TO THE EFFICIEN T AND RELIABLE OPERA TION OF THE 19 
ELECTRIC DISTRIBUTION SYSTEM BY: 20 
 
 (I) AN ELECTRIC COMPANY ; OR 21 
 
 (II) AN AGGREGATOR ACTING : 22 
 
 1. AT THE DIRECTION OF AN ELECTRIC COMP ANY; OR 23 
 
 2. UNDER A PROGRAM OR TARIFF APPROVED BY T HE 24 
COMMISSION. 25 
 
 (2) “ELECTRIC DISTRIBUTION SYSTEM SUPPORT SERVICES ” 26 
INCLUDES: 27 
   	HOUSE BILL 1256 	3 
 
 
 (I) LOCAL OR SYSTEM PEAK DEMAND REDUCTION ; 1 
 
 (II) DEMAND RESPONSE ; 2 
 
 (III) THE AVOIDANCE OR DEF ERRAL OF A TRANSMISS ION OR 3 
DISTRIBUTION UPGRADE OR CAPACITY EXPANSIO N; AND 4 
 
 (IV) FACILITATING HOSTING CAPACITY TO ACCOMMOD ATE 5 
ADDITIONAL DISTRIBUT ED ENERGY RESOURCES . 6 
 
 (F) “ELIGIBLE CUSTOMER –GENERATOR ” HAS THE MEANING STAT ED IN §  7 
7–306 OF THIS TITLE. 8 
 
 (G) “NET ENERGY METERING ” HAS THE MEANING STAT ED IN § 7–306 OF 9 
THIS TITLE. 10 
 
 (H) “NET EXCESS GENERATION ” HAS THE MEANING STAT ED IN § 7–306 OF 11 
THIS TITLE. 12 
 
 (I) (1) “RENEWABLE ON –SITE GENERATING SYSTEM” MEANS AN ENERGY 13 
SYSTEM LOCATED ON A CUSTOME R’S PREMISES THAT: 14 
 
 (I) GENERATES OR STORES ELECTRICITY FROM A TIER 1 15 
RENEWABLE SOURCE OR A TIER 2 RENEWABLE SOURCE ; 16 
 
 (II) IS CAPABLE OF PROVIDING ELECTRICITY TO : 17 
 
 1. A HOME, BUSINESS, OR OTHER STRUCTURE S ERVICED 18 
BY AN ELECTRIC COMPANY ; AND 19 
 
 2. THE ELECTRIC DISTRIBUTION SYSTEM ; 20 
 
 (III) IS CONFIGURED TO CHA RGE FROM: 21 
 
 1. THE RENEWABLE SOURCE ; AND 22 
 
 2. THE ELECTRIC DISTRIBUTION SYSTEM ; AND 23 
 
 (IV) IS INTERCONNECTED AN D OPERATES IN PARALLEL WITH AN 24 
ELECTRIC COM PANY’S TRANSMISSION AND D ISTRIBUTION FACILITI ES. 25 
  4 	HOUSE BILL 1256  
 
 
 (2) “RENEWABLE ON –SITE GENERATING SYST EM” INCLUDES 1 
BIDIRECTIONAL ELECTR IC VEHICLE SERVICE E QUIPMENT LOCATED ON A 2 
CUSTOMER’S PREMISES. 3 
 
 (J) “TIER 1 RENEWABLE SOURCE ” HAS THE MEANING STAT ED IN § 7–701 OF 4 
THIS TITLE. 5 
 
 (K) “TIER 2 RENEWABLE SOURCE ” HAS THE MEANING STAT ED IN § 7–701 OF 6 
THIS TITLE. 7 
 
7–1002. 8 
 
 THE GENERAL ASSEMBLY FINDS AND DE CLARES THAT: 9 
 
 (1) WELL–DESIGNED TIME –OF–USE PRICING OF ELECTR ICITY CAN 10 
HELP MITIGATE THE IM PACTS OF ELECTRIFICA TION ON THE ELECTRIC 11 
DISTRIBUTION SYSTEM , REDUCE GREENHOUSE GA S EMISSIONS DURING PEAK 12 
HOURS, AND ENCOURAGE CUSTOM ER ADOPTION OF BENEF ICIAL ELECTRIFICATIO N 13 
MEASURES THROUGH OFF –PEAK COST SAVINGS ; 14 
 
 (2) WIDESPREA D BENEFICIAL ELECTRI FICATION WILL INCREA SE 15 
DEMAND ON THE ELECTR IC DISTRIBUTION SYSTEM AND POTENTIALLY REQUIRE 16 
SIGNIFICANT SYSTEM UPGRADES IF CONSUMERS ADOPTIN G BENEFICIAL 17 
ELECTRIFICATION MEAS URES DO NOT ENGAGE I N A FORM OF LOAD MAN AGEMENT 18 
TO MITIGATE THE N EED FOR SYSTEM UPGRA DES AND REDUCE THE GREENHOUSE 19 
GAS INTENSITIES ASSOCIATED WITH GENE RATION EMISSIONS DURING PEAK HOURS ; 20 
 
 (3) PAIRING THE ADOPTION OF RENEWABLE ON–SITE GENERATING 21 
SYSTEMS WITH BENEFIC IAL ELECTRIFICATION MEASURES MAY: 22 
 
 (I) FURTHER REDUCE THE STATE’S GREENHOUSE GAS 23 
EMISSIONS; 24 
 
 (II) PROVIDE ON–SITE RESILIENCE TO C ONSUMERS; AND 25 
 
 (III) FACILITATE LOAD FLEX IBILITY TO MITIGATE IMPACTS ON 26 
THE ELECTRIC DISTRIBUTION SYSTEM FROM LOAD GROWTH DUE TO BENEFICIAL 27 
ELECTRIFICATION ; AND 28 
 
 (4) IT IS REASONABLE TO PROVIDE ADDITIONAL I NCENTIVES AND 29 
PROTECTIONS TO LOW – AND MODERATE –INCOME HOUSEHOLDS : 30 
   	HOUSE BILL 1256 	5 
 
 
 (I) TO ENSURE ACCESS TO THE BENEFITS OF ELEC TRIFICATION 1 
AND ON–SITE ENERGY SYSTEMS ; AND 2 
 
 (II) TO PROTECT THOSE HOU SEHOLDS FROM NEGATIV E BILL 3 
IMPACTS DURING A TRANSITION TO TIME–OF–USE RATES. 4 
 
7–1003. 5 
 
 (A) SUBJECT TO SUBSECTION S (D) AND (E) OF THIS SECTION , ON OR 6 
BEFORE DECEMBER 31, 2025, THE COMMISSION SHALL ADOP T A TRANSITION PLAN 7 
TO REQUIRE EACH ELECTRIC COMPANY TO TRANSITION EACH C USTOMER, ON OR 8 
BEFORE SEPTEMBER 1, 2028, TO A TIME–OF–USE TARIFF. 9 
 
 (B) THE TRANSITION PLAN REQUIRED UNDER SUBSECTION (A) OF THIS 10 
SECTION SHALL INCLUD E PROVISIONS TO EASE THE TRANSITION TO A TIME–OF–USE 11 
TARIFF FOR CUSTOMERS IN LOW – AND MODERATE–INCOME HOUSEHOLDS . 12 
 
 (C) THE TRANSITION TO A TIME–OF–USE TARIFF SHALL: 13 
 
 (1) ESTABLISH A SUFFICIE NT PRICE REDUCTION F OR OFF–PEAK 14 
HOURS COMPARED TO PEAK HOURS TO ENCOURAGE CUSTOME RS TO ADJUST THEIR 15 
ELECTRICITY USAGE TO OFF–PEAK HOURS; AND 16 
 
 (2) ADEQUATELY EDUCATE A ND ENCOURAGE CUSTOME RS TO ADJUST 17 
THEIR ELECTRICITY US AGE TO BENEFIT FROM LOWER R ATES DURING OFF –PEAK 18 
HOURS. 19 
 
 (D) (1) EACH ELECTRIC COMPANY SHALL PROVIDE TO ITS CUSTOMERS 20 
NOTICE AND AN OPPORT UNITY TO OPT OUT OF A TIME–OF–USE TARIFF UNDER THIS 21 
SECTION. 22 
 
 (2) A CUSTOMER IS CONSIDERED TO HAVE GIVEN PERMIS SION TO THE 23 
ELECTRIC COMPANY TO TRANSITION THE CUSTO MER TO THE TIME–OF–USE TARIFF: 24 
 
 (I) ON RECEIPT BY THE EL ECTRIC COMPANY OF A R ETURNED 25 
NOTICE EXPLICITLY GR ANTING PERMISSION ; OR 26 
 
 (II) IF THE ELECTRIC COMP ANY HAS NOT RECEIVED A 27 
RETURNED NOTICE WITH IN 30 DAYS AFTER THE NOTIC E IS GIVEN. 28 
 
 (3) A CUSTOMER WHO HAS REF USED PERMISSION TO T RANSITION TO 29 
A TIME–OF–USE TARIFF MAY LATER REQUEST TO TRANSITION TO THE TIME–OF–USE 30 
TARIFF. 31  6 	HOUSE BILL 1256  
 
 
 
 (E) FOR GOOD CAUSE SHOWN , THE COMMISSION MAY DELAY FOR A 1 
REASONABLE PERIOD OF TIME THE DEADLINE FOR AN ELECTRIC COMP ANY TO 2 
TRANSITION THEIR CUSTOMERS TO A TIME–OF–USE TARIFF. 3 
 
7–1004. 4 
 
 (A) ON OR BEFORE APRIL 1, 2025, THE COMMISSION SHALL ADOP T 5 
REGULATIONS TO ESTAB LISH EXPEDITED PROCESSES FOR INTERCONNECTING THE 6 
FOLLOWING SYSTEMS TO THE ELECTRIC DISTRIBUTION SYSTEM : 7 
 
 (1) BIDIRECTIONAL ELECTR IC VEHICLE SYSTEMS C APABLE OF 8 
PROVIDING ELECTRICITY TO THE E LECTRIC DISTRIBUTION SYSTEM ; AND 9 
 
 (2) BIDIRECTIONAL ELECTR IC VEHICLE SYSTEMS T HAT DO NOT 10 
PROVIDE ELECTRICITY TO THE E LECTRIC DISTRIBUTION SYSTEM BUT DO PROVIDE 11 
ELECTRICITY TO A HOM E, BUSINESS, OR OTHER STRUCTURE S ERVICED BY AN 12 
ELECTRIC COMPANY. 13 
 
 (B) AN ELECTRIC COMPANY : 14 
 
 (1) MAY REQUIRE A CUSTOMER T O PROVIDE NOTICE TO THE 15 
ELECTRIC COMPANY IF THE CUSTOMER INSTALLS A BIDIRECTIONAL ELEC TRIC 16 
VEHICLE SYSTEM DESCRIBED IN SUBSECT ION (A) OF THIS SECTION; BUT 17 
 
 (2) MAY NOT REQUIRE THE CUSTOMER TO ENTER INTO A NET ENE RGY 18 
METERING CONTRACT OR OTHERWISE APPLY F OR INTERCONNECTION W ITH THE 19 
ELECTRIC DISTRIBUTION SYSTEM . 20 
 
7–1005. 21 
 
 (A) (1) THE COMMISSION SHALL DEVE LOP A PROGRAM FOR EA CH 22 
ELECTRIC COMPANY TO ESTABLISH A PILOT PROGRAM OR TEMPORARY TARIFF TO 23 
COMPENSATE OWNERS AN D AGGREGATORS OF DIS TRIBUTED ENERGY RESO URCES 24 
FOR ELECTRIC DISTRIBUTION SYSTEM SUPPORT SERVICES ON 	A  25 
PAY–FOR–PERFORMANCE BASIS . 26 
 
 (2) ON OR BEFORE JANUARY 1, 2025, THE COMMISSION SHALL 27 
ADOPT REGULATIONS ESTABLISHING PROGRAM REQUIREMENTS TO ACHI EVE 28 
ELECTRIC SYSTEM BENE FITS USING DISTRIBUT ED ENERGY RESOURCES . 29 
 
 (B) (1) ON OR BEFORE JULY 1, 2025, EACH ELECTRIC COMPAN Y SHALL 30 
SUBMIT TO THE COMMISSION FOR APPROV AL A PILOT PROGRAM OR TEMPORARY 31   	HOUSE BILL 1256 	7 
 
 
TARIFF FOR ELECTRI C DISTRIBUTION SYSTEM SUPPORT SERVICES THAT PROVIDES 1 
REASONABLE COMPENSAT ION ON A PAY–FOR–PERFORMANCE BASIS TO RENEWABLE 2 
ON–SITE GENERATING SYST EMS. 3 
 
 (2) THE PILOT PROGRAM OR TEMPORARY TARIFF SUBMITTED UND ER 4 
PARAGRAPH (1) OF THIS SUBSECTION S HALL PROVIDE THAT ELECTRI C 5 
DISTRIBUTION SYSTEM SUPPORT SERVICES TO ON–SITE ENERGY STORAGE DEVICES 6 
BE USED FOR SYSTEM PEAK REDUCTION ACCORDING TO A SCHEDULE AT A 7 
FREQUENCY OF AT LEAS T 30 EVENTS PER YEAR . 8 
 
 (C) ANY PILOT PROGRAM OR TEMPORARY TARIFF SUB MITTED UNDE R THIS 9 
SECTION SHALL ESTABL ISH A STRUCTURE FOR PERFORMANCE PAYMENTS THAT IS 10 
DESIGNED TO COVER TH E COST OF DISTRIBUTE D ENERGY RESOURCES T O AN OWNER 11 
OR AGGREGATOR PROVID ING ELECTRIC DISTRIBUTION SYSTEM SUPPORT 12 
SERVICES. 13 
 
 (D) (1) ON OR BEFORE OCTOBER 1, 2025, THE COMMISSION SHALL 14 
APPROVE, DENY, OR APPROVE WITH AMEN DMENTS A PILOT PROGRAM OR 15 
TEMPORARY TARIFF SUBMITTED UNDER THIS SECTION FOR EACH ELECTRIC 16 
COMPANY. 17 
 
 (2) THE COMMISSION SHALL ESTA BLISH A PROCESS FOR AN 18 
ELECTRIC COMPANY TO TRANSITION A PILOT PROGRAM OR TEMPORARY TARIFF TO 19 
A PERMANENT PROGRAM OR TARIFF FOR ELECTRIC DISTRIBUTION SYSTEM 20 
SUPPORT SERVICES . 21 
 
 (3) EACH CUSTOMER PARTICI PATING IN A PILOT PROGRAM OR 22 
TEMPORARY TARIFF APPROVED UNDER PARAGRAPH (1) OF THIS SUBSECTION 23 
SHALL BE TRANSITION ED TO A PERMANENT PROGRAM OR TARIFF FOR ELECTRIC 24 
DISTRIBUTION SYSTEM SUPPORT SERVICES WHEN THE PROGRAM OR TARIF F IS 25 
APPROVED BY THE COMMISSION. 26 
 
 (E) (1) THE COMMISSION MAY ALLOW THE ENERGY GENERATED BY A 27 
RENEWABLE ON –SITE GENERATING SYST EM THAT PROVIDES ELE	CTRIC 28 
DISTRIBUTION SYSTEM SUPPORT SERVICE UNDER A PILOT PROGRA M OR 29 
TEMPORARY TARIFF APP ROVED UNDER SUBSECTI ON (D)(1) OF THIS SECTION TO 30 
COUNT TOWARDS TH E ELECTRIC COMPANY’S GREENHOUSE EMISSIO NS REDUCTION 31 
GOALS UNDER § 7–211 OF THIS TITLE. 32 
 
 (2) (I) SUBJECT TO SUBPARAGRAPH (II) OF THIS PARAGRAPH , THE 33 
CUMULATIVE ENERGY ST ORAGE CAPACITY OF AN Y ENERGY STORAGE DEV ICES 34 
INSTALLED ON A CUSTO MER’S PROPERTY IN ACC ORDANCE WITH THIS SU BTITLE 35  8 	HOUSE BILL 1256  
 
 
SHALL COUNT TOWARDS THE TARGETS ESTABLIS HED UNDER § 7–216.1 OF THIS 1 
TITLE. 2 
 
 (II) SUBPARAGRAPH (I) OF THIS PARAGRAPH DOES NOT 3 
INCLUDE THE ENERGY S TORAGE CAPACITY OF : 4 
 
 1. ELECTRIC VEHICLES TH AT ARE PART OF A 5 
RENEWABLE ON–SITE GENERATING SYST EM; OR 6 
 
 2. MOBILE ENERGY STORAG E DEVICES. 7 
 
7–1006. 8 
 
 (A) (1) THE COMMISSION MAY APPROVE OR REQUIRE AN ELECTRIC 9 
COMPANY TO OFFER UPFRONT INCENTIVES O R REBATES TO CUSTOME RS TO 10 
ACQUIRE AND INSTALL RENEWABLE ON –SITE GENERATING SYST EMS IF THE 11 
CUSTOMER: 12 
 
 (I) ENROLLS IN A PILOT PROGRAM OR TEMPORARY TARIFF 13 
ESTABLISHED UNDER § 7–1005 OF THIS SUBTITLE; AND 14 
 
 (II) ALLOWS THE SYSTEM TO BE USE D FOR ELECTRIC 15 
DISTRIBUTION SYSTEM SUPPORT SERVICES FOR A PERIOD OF NO T LESS THAN 5 16 
YEARS. 17 
 
 (2) THE COMMISSION MAY : 18 
 
 (I) AUTHORIZE OR REQUIRE AN ELECTRIC COMPANY TO 19 
PROVIDE AN ADDITIONA L INCENTIVE OR REBAT E FOR LOW– OR MODERATE –INCOME 20 
CUSTOMER S WHO APPLY FOR AN INCENTIVE OR REBATE UNDER THIS SECTION; AND 21 
 
 (II)  REQUIRE AN ELECTRIC COMPANY TO PRIORITIZE THE 22 
OFFER OF INCENTIVE S OR REBATES UNDER THIS SECTION T O LOW– OR  23 
MODERATE–INCOME CUSTOMERS . 24 
 
 (B) IN DETERMINING WHETHER TO REQUIRE AN ELECTRIC COMPANY TO 25 
OFFER AN INCENTIVE OR REBATE UNDER THIS SECTION, THE COMMISSION SHALL 26 
CONSIDER: 27 
 
 (1) THE BENEFIT OF REDUC ING THE OPERATION OF PEAK 28 
GENERATING FACILITIE S IN OVERBURDENED AN D UNDERSERVED COMMUN ITIES; 29 
   	HOUSE BILL 1256 	9 
 
 
 (2) THE BENEFIT OF RESILIENC Y AND SERVICE OUTAGE AVOIDANCE 1 
FOR CUSTOMERS WITH O N–SITE GENERATING SYSTEMS; AND 2 
 
 (3) THE POTENTIAL FOR EL ECTRIC COMPANIES TO REDUCE 3 
EXPENSES RELATING TO ELECTRIC DISTRIBUTIO N SYSTEM INFRASTRUCTURE BY 4 
LEVERAGING CUSTOMERS ’ ON–SITE GENERATING SYST EMS. 5 
 
 (C) THE COMMISSION SHALL CONS IDER ESTABLISHING A LIMIT ON THE 6 
AMOUNT OF INCENTIVES OR REBATES ISSUED IN A MANNER THAT ACHIEVES 7 
DEPLOYMENT GOALS WHI LE MITIGATING POTENT IAL CUSTOMER IMPACTS . 8 
 
 (D) THE COMMISSION SHALL CONS ULT WITH THE MARYLAND ENERGY 9 
ADMINISTRATION , WHEN APPROVING OR RE QUIRING AN INCENTIVE OR REBATE 10 
UNDER THIS SECTION, TO ENSURE THAT THE I NCENTIVE OR REBATE I S DESIGNED 11 
TO SUPPLEMENT , TO THE GREATEST EXTE NT POSSIBLE, OTHER AVAILABLE STATE 12 
AND FEDERAL INCENTIV ES FOR CUSTOMER ADOP TION OF RENEWABLE ON –SITE 13 
GENERATING SYSTEMS . 14 
 
7–1007. 15 
 
 (A) AN ELECTRIC COMPANY MAY RECOVER ALL REASONAB LE COSTS 16 
INCURRED IN: 17 
 
 (1) PARTICIPATING IN A PILOT PROGRAM OR TEMPORARY TARIFF 18 
UNDER § 7–1005 THIS SUBTITLE; AND 19 
 
 (2) OFFERING AN UPFRONT INCENTIVE OR REBATE UNDER § 7–1006 20 
OF THIS SUBTITLE. 21 
 
 (B) TO THE EXTENT FEASIBL E, THE COSTS LISTED IN SUBSECTION (A) OF 22 
THIS SECTION SHALL BE RECOVERED B Y THE ELECTRIC COMPANY WITHIN THE 23 
CALENDAR YEAR IN WHICH THOSE COSTS WERE INCURRED . 24 
 
 (C) NOTWITHSTANDING ANY PRO VISION OF THIS SUBTI TLE, AN ELECTRIC 25 
COMPANY MAY PURSUE AND USE A PERFORMANCE INC ENTIVE MECHANISM TO 26 
COVER THE COST OF US ING DISTRIBUTED ENER GY RESOURCES OR AN A GGREGATOR 27 
OF DISTRIBUTED RESOURCES UNDER THIS SUBTITLE. 28 
 
7–1008. 29 
 
 (A) THIS SECTION APPLIES ONLY TO AN ELIGIBLE CUSTOMER–GENERATOR 30 
THAT IS: 31 
  10 	HOUSE BILL 1256  
 
 
 (1) PARTICIPATING IN AN ELECTRIC COMPANY’S NET ENERGY 1 
METERING PROGRAM ; AND 2 
 
 (2) USING AN ENERGY STOR AGE DEVICE THAT : 3 
 
 (I) IS CHARGED ONLY FROM THE ELIGIBLE 4 
CUSTOMER–GENERATOR ’S GENERATING FACILIT Y THAT CREATES NET EXCESS 5 
GENERATION ; OR 6 
 
 (II) ACCRUES NET EXCESS G ENERATION ONLY FOR ENERGY 7 
CREATED BY AN ON–SITE ENERGY GENERATI NG SYSTEM. 8 
 
 (B) THE DISPATCH OF ENERG Y FROM AN ENERGY STO RAGE DEVICE TO THE 9 
ELECTRIC DISTRIBUTION SYSTEM UNDER A PILOT PROGRAM OR TEMPORARY 10 
TARIFF ESTABLISHED UNDER § 7–1005 OF THIS SUBTITLE MAY NOT BE CONSIDERED 11 
DUPLICATIVE OF ANY V ALUE REALIZED BY THE ELIGIBLE CUSTOMER–GENERATOR 12 
THROUGH NET ENERGY METERING. 13 
 
 SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect 14 
October 1, 2024. 15