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.
Italics indicate opposite chamber/conference committee amendments.
*hb1296*
HOUSE BILL 1296
M5, C5 (4lr3198)
ENROLLED BILL
— Economic Matters/Education, Energy, and the Environment —
Introduced by Delegates Wilson and Crosby
Read and Examined by Proofreaders:
_______________________________________________
Proofreader.
_______________________________________________
Proofreader.
Sealed with the Great Seal and presented to the Governor, for his approval this
_______ day of _______________ at ________________________ o’clock, ________M.
______________________________________________
Speaker.
CHAPTER ______
AN ACT concerning 1
Electricity – Offshore Wind Projects – Alterations 2
FOR the purpose of requiring the Public Service Commission to open a certain proceeding 3
to evaluate certain offshore wind projects; authorizing certain offshore wind projects 4
to submit certain revised plans for project schedules, sizes, or pricing, including 5
offshore wind renewable energy credit pricing and, under certain circumstances, to 6
seek approval from the Commission to increase the maximum amount of offshore 7
wind renewable energy credits sold under a certain order, subject to certain 8
limitations; requiring the Commission to approve, conditionally approve, or deny 9
certain applications within a certain period of time; authorizing the Maryland 10
Energy Administration to have access to certain confidential information under 11
certain circumstances; requiring the Commission to develop and report to the 12
General Assembly on a certain plan; requiring the Commission to issue certain 13
procurement solicitations and a certain procurement on or before a certain date; 14
requiring a certain procurement contract to include certain terms; altering the 15 2 HOUSE BILL 1296
Department of General Services’ requirements and processes for the procurement of 1
offshore wind energy; and generally relating to offshore wind projects. 2
BY repealing and reenacting, without amendments, 3
Article – Public Utilities 4
Section 7–701(a), (b), (f), (g), (k), (p), and (p–1) and, and 7–704.1(a), (c)(6)(ii), (g), (h), 5
and (i), and 7–704.4(d) 6
Annotated Code of Maryland 7
(2020 Replacement Volume and 2023 Supplement) 8
BY adding to 9
Article – Public Utilities 10
Section 7–704.1(l) and (m) 11
Annotated Code of Maryland 12
(2020 Replacement Volume and 2023 Supplement) 13
BY repealing and reenacting, with amendments, 14
Article – Public Utilities 15
Section 7–704.4(b)(1) and (e) 7–704.4 16
Annotated Code of Maryland 17
(2020 Replacement Volume and 2023 Supplement) 18
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 19
That the Laws of Maryland read as follows: 20
Article – Public Utilities 21
7–701. 22
(a) In this subtitle the following words have the meanings indicated. 23
(b) “Administration” means the Maryland Energy Administration. 24
(f) “Offshore wind energy” means energy generated by a qualified offshore wind 25
project. 26
(g) “Offshore wind renewable energy credit” or “OREC” means a renewable 27
energy credit equal to the generation attributes of 1 megawatt–hour of electricity that is 28
derived from offshore wind energy. 29
(k) “Qualified offshore wind project” means a wind turbine electricity generation 30
facility, including the associated transmission–related interconnection facilities and 31
equipment, that: 32
(1) is located: 33
HOUSE BILL 1296 3
(i) on the outer continental shelf of the Atlantic Ocean in an area 1
that the United States Department of the Interior designates for leasing; and 2
(ii) more than 10 miles off the coast of the State for a project selected 3
under § 7–704.4 of this subtitle or approved under § 7–704.1 of this subtitle after June 1, 4
2023; and 5
(2) interconnects to the PJM Interconnection grid: 6
(i) at a point located on the Delmarva Peninsula; or 7
(ii) through an offshore wind transmission project selected under § 8
7–704.3 of this subtitle. 9
(p) “Round 1 offshore wind project” means a qualified offshore wind project that: 10
(1) is between 10 and 30 miles off the coast of the State; and 11
(2) the Commission approved under § 7–704.1 of this subtitle before July 12
1, 2017. 13
(p–1) “Round 2 offshore wind project” means a qualified offshore wind project that: 14
(1) is not less than 10 miles off the coast of the State; and 15
(2) the Commission approves under § 7–704.1 of this subtitle on or after 16
July 1, 2017. 17
7–704.1. 18
(a) (1) The General Assembly finds and declares that: 19
(i) the State has a goal of reaching 8,500 megawatts of offshore wind 20
energy capacity by 2031, including Round 1 offshore wind projects, Round 2 offshore wind 21
projects, and any other procurement efforts; 22
(ii) the General Assembly anticipates the issuance of sufficient wind 23
energy leases in the central Atlantic region to satisfy the goal stated in item (i) of this 24
paragraph; 25
(iii) the development of offshore wind energy is important to the 26
economic well–being of the State and the nation; 27
(iv) offshore wind can provide clean energy at the scale needed to 28
help achieve the State’s economy–wide net–zero greenhouse gas emissions reduction 29
targets established in Chapter 38 of the Acts of the General Assembly of 2022; 30
4 HOUSE BILL 1296
(v) it is in the public interest of the State to facilitate the 1
construction of at least 1,200 megawatts of Round 2 offshore wind projects in order to: 2
1. position the State to take advantage of the economic 3
development benefits of the emerging offshore wind industry; 4
2. promote the development of renewable energy sources 5
that increase the nation’s independence from foreign sources of fossil fuels; 6
3. reduce the adverse environmental and health impacts of 7
traditional fossil fuel energy sources; and 8
4. provide a long–term hedge against volatile prices of fossil 9
fuels; and 10
(vi) it is in the public interest of the State to maximize the 11
opportunities for obtaining and using federal funds for offshore wind and related 12
transmission projects through the inclusion of specified labor standards and goals, domestic 13
content requirements, and other provisions to align State law with provisions of the federal 14
Infrastructure Investment and Jobs Act of 2021 and the federal Inflation Reduction Act of 15
2022. 16
(2) After the effective date of Commission regulations implementing this 17
section and § 7–704.2 of this subtitle, and before June 30, 2017, a person may submit an 18
application to the Commission for approval of a proposed Round 1 offshore wind project. 19
(3) (i) On receipt of the application for approval of a Round 1 offshore 20
wind project, the Commission shall: 21
1. open an application period when other interested persons 22
may submit applications for approval of Round 1 offshore wind projects; and 23
2. provide notice that the Commission is accepting 24
applications for approval of Round 1 offshore wind projects. 25
(ii) The Commission shall set the closing date for the application 26
period to be no sooner than 90 days after the notice provided under subparagraph (i) of this 27
paragraph. 28
(4) The Commission shall provide additional application periods 29
beginning, respectively: 30
(i) January 1, 2020, for consideration of Round 2 offshore wind 31
projects to begin creating ORECs not later than 2026; 32
(ii) January 1, 2021, for consideration of Round 2 offshore wind 33
projects to begin creating ORECs not later than 2028; and 34 HOUSE BILL 1296 5
(iii) January 1, 2022, for consideration of Round 2 offshore wind 1
projects to begin creating ORECs not later than 2030. 2
(5) In its discretion, the Commission may provide for additional application 3
periods that meet the requirements of this section. 4
(c) An application shall include: 5
(6) a commitment to: 6
(ii) deposit at least $6,000,000, in the manner required under 7
subsection (h) of this section, into the Maryland Offshore Wind Business Development 8
Fund established under § 9–20C–03 of the State Government Article; 9
(g) (1) An order the Commission issues approving a proposed offshore wind 10
project shall: 11
(i) specify the OREC price schedule, which may not authorize an 12
OREC price greater than, for a Round 1 offshore wind project, $190 per megawatt–hour in 13
2012 dollars; 14
(ii) specify the duration of the OREC pricing schedule, not to exceed 15
20 years; 16
(iii) specify the number of ORECs the offshore wind project may sell 17
each year; 18
(iv) provide that: 19
1. a payment may not be made for an OREC until electricity 20
supply is generated by the offshore wind project; and 21
2. ratepayers, purchasers of ORECs, and the State shall be 22
held harmless for any cost overruns associated with the offshore wind project; and 23
(v) require that any debt instrument issued in connection with a 24
qualified offshore wind project include language specifying that the debt instrument does 25
not establish a debt, obligation, or liability of the State. 26
(2) An order approving a proposed offshore wind project vests the owner of 27
the qualified offshore wind project with the right to receive payments for ORECs according 28
to the terms in the order. 29
(3) On or before March 1 each year, the Commission shall report to the 30
Governor and, in accordance with § 2–1257 of the State Government Article, to the Senate 31 6 HOUSE BILL 1296
Committee on Education, Energy, and the Environment and the House Economic Matters 1
Committee on: 2
(i) compliance by applicants with the minority business enterprise 3
participation goals under subsection (e)(4) of this section; and 4
(ii) with respect to the community benefit agreement under 5
subsection (f)(1) of this section: 6
1. the availability and use of opportunities for local 7
businesses and small, minority, women–owned, and veteran–owned businesses; 8
2. the success of efforts to promote career training 9
opportunities in the manufacturing, maintenance, and construction industries for local 10
residents, veterans, women, and minorities; and 11
3. compliance with the minority workforce goal under 12
subsection (f)(1)(i)5 of this section. 13
(h) For Round 2 offshore wind project applications, the Commission shall approve 14
OREC orders representing a minimum of 400 megawatts of nameplate capacity proposed 15
during each application period unless: 16
(1) not enough Round 2 offshore wind project applications are submitted to 17
meet the net benefit test under subsection (c)(3) of this section; or 18
(2) the cumulative net ratepayer impact exceeds the maximums provided 19
in subsection (f)(1)(ii)2 of this section. 20
(i) (1) Within 60 days after the Commission approves the application of a 21
proposed offshore wind project, the qualified offshore wind project shall deposit $2,000,000 22
into the Maryland Offshore Wind Business Development Fund established under § 23
9–20C–03 of the State Government Article. 24
(2) Within 1 year after the initial deposit under paragraph (1) of this 25
subsection, the qualified offshore wind project shall deposit an additional $2,000,000 into 26
the Maryland Offshore Wind Business Development Fund. 27
(3) Within 2 years after the initial deposit under paragraph (1) of this 28
subsection, the qualified offshore wind project shall deposit an additional $2,000,000 into 29
the Maryland Offshore Wind Business Development Fund. 30
(L) (1) IN THIS SUBSECTION , “REVISED ROUND 2 OFFSHORE WIND 31
PROJECT” MEANS A ROUND 2 OFFSHORE WIND PROJEC T THAT HAS FILED AN 32
APPLICATION WITH THE COMMISSION FOR REVISE D PROJECT SCHEDULES , SIZES, 33
OR PRICING, INCLUDING OREC PRICING, UNDER THIS SUBSECTIO N. 34 HOUSE BILL 1296 7
(2) THIS SUBSECTION APPLI ES TO ROUND 1 OFFSHORE WIND 1
PROJECTS AND ROUND 2 OFFSHORE WIND PROJEC TS THAT: 2
(I) ARE TO BE LOCATED IN A WIND ENERGY AREA A UTHORIZED 3
BY THE BUREAU OF OCEAN ENERGY MANAGEMENT ; AND 4
(II) POSSESS ORECS, OR ARE SUBJECT TO A COMMISSION 5
ORDER APPROVING AN OREC PRICE SCHEDULE , AS OF JUNE 1, 2024. 6
(3) (I) ON JUNE 1, 2024, THE COMMISSION SHALL OPEN A 7
REVISED ROUND 2 OFFSHORE WIND PROJEC T PROCEEDING THAT IS LIMITED TO 8
EVALUATING REVISED P ROJECT SCHEDULES , SIZES, OR PRICING, INCLUDING 9
OREC PRICING, FOR A PREVIOUSLY APP ROVED ROUND 2 OFFSHORE WIND 10
PROJECT. 11
(II) ANY PREVIOUSLY APPROV ED ROUND 2 OFFSHORE WIND 12
PROJECT MAY SUBMIT A REVISED PLAN FOR THE PROJECT BY FILING AN 13
APPLICATION WITH THE COMMISSION. 14
(III) AN APPLICATION FOR A REVISED ROUND 2 OFFSHORE WIND 15
PROJECT SHALL BE LIM ITED TO ADDRESSING R EVISED PROJECT SCHEDULES , SIZES, 16
OR PRICING, INCLUDING OREC PRICING. 17
(IV) 1. ON RECEIPT OF AN APPL ICATION FOR APPROVAL OF 18
A REVISED ROUND 2 OFFSHORE WIND PROJEC T, THE COMMISSION SHALL COND UCT 19
AN EXPEDITED REVIEW OF THE APPLICATION . 20
2. UNLESS EXTENDED BY MUTUAL CONSENT OF THE 21
PARTIES, THE COMMISSION SHALL APPR OVE, CONDITIONALLY APPROV E, OR DENY 22
AN APPLICATION WITHI N 90 DAYS AFTER THE APPLI CATION IS FILED AND FOUND BY 23
THE COMMISSION TO BE ADMI NISTRATIVELY COMPLET E. 24
(V) 1. EXCEPT AS PROVIDED IN SUBSUBPARAGRAPHS 2 AND 25
3 OF THIS SUBPARAGRAPH , AN APPLICATION FOR A REVISED ROUND 2 OFFSHORE 26
WIND PROJECT SHALL B E SUBJECT TO ALL CRI TERIA SET FORTH IN T HIS SECTION 27
FOR ROUND 2 OFFSHORE WIND PROJEC TS. 28
2. AN APPLICATION FOR A REVISED ROUND 2 29
OFFSHORE WIND PR OJECT IS NOT SUBJECT TO THE REQUIREMENTS OF 30
SUBSECTIONS (C)(6)(II) AND (I) OF THIS SECTION. 31
3. IF IN A REVISED ROUND 2 OFFSHORE WIND PROJEC T 32
PROCEEDING THE COMMISSION REVIEWS MU LTIPLE REASONABLE PR OPOSALS 33 8 HOUSE BILL 1296
MEETING THE REQUIREM ENTS OF THIS SECTION FOR ROUND 2 OFFSHORE WIND 1
PROJECTS, THE COMMISSION SHALL ISSU E ORDERS APPROVING T HE REVISED 2
ROUND 2 OFFSHORE WIND PROJEC TS NECESSARY TO FACI LITATE AS MUCH ENERG Y 3
CAPACITY AS IS CONSI STENT WITH THE ROUND 2 OFFSHORE WIND PROJEC T 4
RATEPAYER PROTECTION S UNDER THIS S ECTION, INCLUDING AT LEAST 800 5
MEGAWATTS OF CAPACIT Y FROM REVISED ROUND 2 OFFSHORE WIND PROJEC TS, IF 6
PRACTICABLE , EVEN IF THE REVISED ROUND 2 OFFSHORE WIND PROJEC T 7
APPLICATIONS MAY RES ULT IN LOWER TOTAL E NERGY CAPACITY AWARD ED THAN 8
WAS PREVIOUSLY AWARD ED TO THE REVISED ROUND 2 OFFSHORE WIND PROJEC T 9
IN ITS PREVIOUSLY AP PROVED ROUND 2 OFFSHORE WIND PROJEC T APPLICATION. 10
4. WHEN EVALUATING AN AP PLICATION FOR A REVI SED 11
ROUND 2 OFFSHORE WIND PROJEC T, THE COMMISSION SHALL , TO THE EXTENT 12
PRACTICABLE , EXTEND PRIOR OR EXISTING PR OCEEDINGS FOR APPLIC ANTS THAT 13
HAVE A PREVIOUSLY AP PROVED ORDER FOR A ROUND 2 OFFSHORE WIND PROJEC T. 14
(VI) THE COMMISSION MAY NOT AP PROVE AN APPLICATION FOR 15
A REVISED ROUND 2 OFFSHORE WIND PROJEC T UNLESS THE APPLICA TION 16
INCLUDES COMMI TMENTS FOR IN –STATE EXPENDITURES AN D INVESTMENTS IN A 17
LOCAL SUPPLY CHAIN T HAT THE COMMISSION DETERMINES ARE REASONABLY 18
RELATED TO THE SIZE AND REQUIREMENTS OF THE PROJECT. 19
(VII) THE ADMINISTRATION SHALL HAVE ACCESS TO ALL 20
CONFIDENTIAL INFORMA TION PRODU CED BY ANY PARTY REL ATING TO A REVISED 21
ROUND 2 OFFSHORE WIND PROJEC T PROCEEDING , SUBJECT TO AN AGREEM ENT TO 22
PROTECT THE CONFIDEN TIALITY OF THE INFOR MATION. 23
(4) (I) IN ORDER TO MAXIMIZE THE AMOUNT OF RENEWA BLE 24
ENERGY GENERATED BY A ROUND 1 OFFSHORE WIND PROJECT, ANY ROUND 1 25
OFFSHORE WIND PROJEC T MAY SEEK APPROVAL FROM THE COMMISSION TO AMEND 26
ITS PREVIOUSLY APPRO VED ROUND 1 OFFSHORE WIND PROJEC T ORDER TO: 27
1. INCREASE THE MAXIMUM AMOUNT OF ORECS SOLD 28
UNDER THE PREVIOUS O RDER, CONSISTENT WITH THE ROUND 1 OFFSHORE WIND 29
PROJECT RATEPAYER PR OTECTIONS UNDER THIS SECTION; AND 30
2. MODIFY ITS PROJECT S CHEDULE. 31
(II) THE COMMISSION MAY APPROV E A REQUEST FOR AN 32
INCREASED AMOUNT OF ORECS SOLD UNDER A PREVI OUSLY APPROVED ROUND 1 33
OFFSHORE WIND PROJEC T ORDER ON A SHOWING THAT : 34
HOUSE BILL 1296 9
1. THE UNIT PRICING OF THE ADDITIONAL ORECS DOES 1
NOT EXCEED THE PRICI NG UNDER THE PREVIOU SLY APPROVED ROUND 1 2
OFFSHORE WIND PROJEC T ORDER; AND 3
2. THE ROUND 1 OFFSHORE WIND PROJEC T IS IN 4
COMPLIANCE WITH THE RATEPAYER PROTECTION PROVISIONS REQUIRED FOR 5
ROUND 1 OFFSHORE WIND PROJEC TS, TAKING INTO CONSIDER ATION CHANGES IN 6
ECONOMIC CONDITIONS SINCE THE ORIGINAL ROUND 1 OFFSHORE WIND PROJEC T 7
AWARDS. 8
(M) (1) THE COMMISSION, WITH THE ASSISTANCE OF THE 9
ADMINISTRATION , THE DEPARTMENT OF THE ENVIRONMENT , THE DEPARTMENT 10
OF NATURAL RESOURCES THE DEPARTMENT OF GENERAL SERVICES, AND OTHER 11
INTERESTED STATE UNITS SHALL DEV ELOP A PLAN FOR ACHI EVING A TOTAL OF 12
8,500 MEGAWATTS OF OFFSHOR E WIND ENERGY CAPACI TY BY 2031. 13
(2) THE PLAN: 14
(I) SHALL INCLUDE A SCHE DULE OF OFFSHORE WIN D ENERGY 15
PROCUREMENTS AND PRO POSED AMOUNTS OF OFF SHORE WIND ENERGY FO R 16
PROCUREMENT THROUGH 2031; AND 17
(II) MAY INCLUDE RECOMMEN DATIONS ON 18
MULTIJURISDICTIONAL OFFSHORE WIND ENERGY PROCUREMENTS AND ANY 19
ADDITIONAL OF FSHORE WIND ENERGY P ROCUREMENT RECOMMEND ATIONS. 20
(3) ON OR BEFORE JANUARY 1, 2025, THE COMMISSION SHALL 21
SUBMIT A REPORT ON T HE PLAN TO THE GENERAL ASSEMBLY, IN ACCORDANCE 22
WITH § 2–1257 OF THE STATE GOVERNMENT ARTICLE. 23
7–704.4. 24
(a) (1) In this section the following words have the meanings indicated. 25
(2) “Community benefit agreement” has the meaning stated in § 7–704.1(e) 26
of this subtitle. 27
(3) “Social cost of greenhouse gases” means the most recent social cost of 28
greenhouse gases adopted by the U.S. Environmental Protection Agency. 29
(b) (1) The Department of General Services, in consultation with the Public 30
Service Commission, shall issue a competitive sealed procurement solicitation and may 31
enter into at least one contract for a power purchase agreement to procure [up to 5,000,000 32
megawatt–hours annually of] offshore wind energy and associated renewable energy 33
credits from one or more qualified offshore wind projects. 34 10 HOUSE BILL 1296
(2) Each agreement entered into under paragraph (1) of this subsection 1
shall have a term of not less than 20 years. 2
(3) When issuing the invitation for bids under this subsection, the 3
Department shall take into consideration: 4
(i) the social cost of greenhouse gas emissions; 5
(ii) the State’s climate commitments; and 6
(iii) the State’s commitments under § 7–704.1(a) of this subtitle. 7
(4) The evaluation criteria for bids shall include: 8
(i) comparing the social cost of greenhouse gas emissions for offshore 9
wind with the social cost of greenhouse gas emissions for nonrenewable power purchased 10
from wholesale electric markets administered by PJM Interconnection; and 11
(ii) the extent to which an applicant’s proposal provides for financial 12
and technical assistance to support monitoring and mitigation of wildlife and habitat 13
impacts associated with the proposed offshore wind project. 14
(5) Each agreement entered into under paragraph (1) of this subsection 15
shall include: 16
(i) a community benefit agreement and domestic content preferences; 17
and 18
(ii) a description of: 19
1. initial plans for mitigating the impacts of the construction 20
and operation of the proposed offshore wind project on fisheries and the environment; and 21
2. the extent to which an applicant will provide for financial 22
and technical assistance to support the monitoring and mitigation of wildlife and habitat 23
impacts associated with the project. 24
(c) (1) The Department of General Services shall identify the amount of energy 25
necessary to meet the State’s energy needs. 26
(2) (i) The State shall use the energy procured under subsection (b) of 27
this section to meet the State’s energy needs and retire the associated renewable energy 28
credits to meet its obligations under the renewable energy portfolio standard and Chapter 29
38 of the Acts of the General Assembly of 2022. 30
HOUSE BILL 1296 11
(ii) The State shall be exempted from the renewable energy portfolio 1
standard requirements under § 7–703 of this subtitle if the Department of General Services 2
procures 100% of the State’s energy needs from the power purchase agreement required 3
under subsection (b) of this section. 4
(3) The State shall offer for sale any energy or renewable energy credits 5
remaining after the requirements under paragraph (2) of this subsection have been met on 6
the competitive wholesale power market operated by PJM Interconnection, through bilateral 7
sales to credit–worthy counterparties, or into renewable energy credit markets. 8
(d) (1) The State shall: 9
(1) (I) ISSUE A DRAFT SOLICI TATION FOR PROCUREME NT OF 10
OFFSHORE WIND ENERGY FOR PUBLIC COMMENT A ND REVIEW ON OR BEFORE JUNE 11
1, 2024; 12
(II) issue a procurement for offshore wind energy on or before July 13
31, 2024; 14
(2) (III) provide a procurement submission process window of not less 15
than 180 days; and 16
(3) (IV) award contracts in a timely manner. 17
(e) (1) (2) (I) Subject to SUBPARAGRAPH (II) OF THIS paragraph [(2) 18
of this subsection], ON OR BEFORE SEPTEMBER 1, 2025, the State may enter into a 19
contract or contracts for the procurement on or before September 1, 2025 ISSUED UNDER 20
PARAGRAPH (1) OF THIS SUBSECTION . 21
[(2)] (II) The State may modify the date established in SUBPARAGRAPH 22
(I) OF THIS paragraph [(1) of this subsection] if an unforeseen circumstance adversely 23
affects the procurement submission process. 24
(2) (I) IF NO QUALIFIED OFFSH ORE WIND PROJECTS ARE 25
SUBMITTED DURING THE PROCUREMENT SUBMISSI ON PROCESS UNDER 26
PARAGRAPH (1) OF THIS SUBSECTION , THE STATE: 27
1. MAY EVALUATE AND REV ISE THE CONDITIONS O F THE 28
OFFSHORE WIND ENERGY PROCUREMENT ; AND 29
(E) (1) IN ADDITION TO THE SO LICITATION AND PROCUREMENT ISSU ED 30
UNDER SUBSECTION (D) OF THIS SECTION, THE STATE: 31
12 HOUSE BILL 1296
(I) SHALL ISSUE A DRAFT SOLICITATION FOR PRO CUREMENT 1
OF OFFSHORE WIND ENE RGY FOR PUBLIC COMME NT AND REVIEW ON OR BEFORE 2
SEPTEMBER 1, 2025; AND 3
2. (II) SHALL ISSUE A PROCUR EMENT FOR OFFSHORE WIND 4
ENERGY ON OR BEFORE DECEMBER 31, 2025. 5
(II) (2) SUBJECT TO SUBPARAGRAPH (III) OF THIS 6
PARAGRAPH PARAGRAPH (3) OF THIS SUBSECTION A ND IN ADDITION TO AN Y 7
CONTRACT ENTERED INT O UNDER SUBSECTION (D) OF THIS SECTION, ON OR BEFORE 8
MARCH 31, 2027, THE STATE MAY ENTER INTO A CONTRACT OR CONTRA CTS FOR 9
THE PROCUREMENT ON OR BEFORE MARCH 31, 2027 ISSUED UNDER PARAGRA PH 10
(1) OF THIS SUBSECTION . 11
(III) (3) THE STATE MAY MODIFY THE DATE ESTABLISHED IN 12
SUBPARAGRAPH (II) OF THIS PARAGRAPH PARAGRAPH (2) OF THIS SUBSECTION IF 13
AN UNFORESEEN CIRCUM STANCE ADVERSELY AFF ECTS THE PROCUREMENT 14
SUBMISSION PROCESS . 15
(F) THE STATE SHALL INCORPORA TE IN THE OFFSHORE W IND ENERGY 16
PROCUREMENT CONTRACT TERMS TO FACILITATE LOW–COST PROJECT 17
DEVELOPMENT AND TR ADITIONAL PROJECT FI NANCING TERMS , INCLUDING: 18
(1) TERMS THAT WAIVE THE AUTOMATIC TERMINATIO N CLAUSE 19
REQUIRED UNDER § 13–217 OF THE STATE FINANCE AND PROCUREMENT ARTICLE; 20
(2) TERMS THAT ESTABLISH REMEDIES TO REIMBURS E COSTS 21
INCURRED BY THE CONT RACTOR DIRECTLY ATTRIBUTABL E TO THE FAILURE OF THE 22
STATE TO APPROPRIATE FUNDS FOR THE CONTRA CT; AND 23
(3) ANY OTHER APPROPRIAT E MECHANISMS TO ENSU RE THAT 24
OFFSHORE WIND ENERGY PROJECTS THAT MEET T HE TERMS OF THE CONT RACT WILL 25
HAVE CERTAINTY OF PA YMENT THROUGH TH E DURATION OF THE CO NTRACT. 26
(G) (1) Within 90 days after the operational commencement date of the power 27
purchase agreement, any contractor providing operations and maintenance services under 28
an agreement with the Department of General Services shall submit to the Department 29
attestation that the contractor has entered into a labor peace agreement with each labor 30
organization that is actively engaged in representing or attempting to represent employees 31
performing operations and maintenance work on the projects that: 32
(i) prohibits strikes, lockouts, or any other economic interference with 33
the contracted project; 34
HOUSE BILL 1296 13
(ii) describes the class or classes of covered employees to whom the 1
labor peace agreement applies; 2
(iii) describes any class or classes of employees not currently 3
represented by a labor organization; 4
(iv) describes the classes of covered employees for which labor peace 5
agreement negotiations have not yet concluded; and 6
(v) for classes of employees that are not covered by a labor peace 7
agreement, provides an attestation that no labor organization has sought to negotiate such 8
an agreement. 9
(2) A labor peace agreement required under paragraph (1) of this subsection 10
shall be: 11
(i) valid and enforceable under 29 U.S.C. § 158; and 12
(ii) maintained as an ongoing material condition of any continuation 13
of payments under any agreement required by this subsection. 14
[(g)] (H) Nothing in this section may be construed to prevent the procurement of 15
new offshore wind energy generation in accordance with the current or any future 16
solicitation schedule. 17
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect June 18
1, 2024. 19
Approved:
________________________________________________________________________________
Governor.
________________________________________________________________________________
Speaker of the House of Delegates.
________________________________________________________________________________
President of the Senate.