MD
Maryland House Bill HB1296

Maryland 2024 Regular Session

Maryland House Bill HB1296 Compare Versions

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1- WES MOORE, Governor Ch. 431
21
3-– 1 –
4-Chapter 431
5-(House Bill 1296)
62
7-AN ACT concerning
3+EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
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+ Italics indicate opposite chamber/conference committee amendments.
9+ *hb1296*
810
9-Electricity – Offshore Wind Projects – Alterations
11+HOUSE BILL 1296
12+M5, C5 (4lr3198)
13+ENROLLED BILL
14+— Economic Matters/Education, Energy, and the Environment —
15+Introduced by Delegates Wilson and Crosby
1016
11-FOR the purpose of requiring the Public Service Commission to open a certain proceeding
12-to evaluate certain offshore wind projects; authorizing certain offshore wind projects
13-to submit certain revised plans for project schedules, sizes, or pricing, including
14-offshore wind renewable energy credit pricing and, under certain circumstances, to
15-seek approval from the Commission to increase the maximum amount of offshore
16-wind renewable energy credits sold under a certain order, subject to certain
17-limitations; requiring the Commission to approve, conditionally approve, or deny
18-certain applications within a certain period of time; authorizing the Maryland
19-Energy Administration to have access to certain confidential information under
20-certain circumstances; requiring the Commission to develop and report to the
21-General Assembly on a certain plan; requiring the Commission to issue certain
22-procurement solicitations and a certain procurement on or before a certain date;
23-requiring a certain procurement contract to include certain terms; altering the
24-Department of General Services’ requirements and processes for the procurement of
25-offshore wind energy; and generally relating to offshore wind projects.
17+Read and Examined by Proofreaders:
2618
27-BY repealing and reenacting, without amendments,
28- Article – Public Utilities
29-Section 7–701(a), (b), (f), (g), (k), (p), and (p–1) and, and 7–704.1(a), (c)(6)(ii), (g), (h),
30-and (i), and 7–704.4(d)
31- Annotated Code of Maryland
32- (2020 Replacement Volume and 2023 Supplement)
19+_______________________________________________
20+Proofreader.
21+_______________________________________________
22+Proofreader.
3323
34-BY adding to
35- Article – Public Utilities
36-Section 7–704.1(l) and (m)
37- Annotated Code of Maryland
38- (2020 Replacement Volume and 2023 Supplement)
24+Sealed with the Great Seal and presented to the Governor, for his approval this
3925
40-BY repealing and reenacting, with amendments,
41- Article – Public Utilities
42- Section 7–704.4(b)(1) and (e) 7–704.4
43- Annotated Code of Maryland
44- (2020 Replacement Volume and 2023 Supplement)
26+_______ day of _______________ at ________________________ o’clock, ________M.
4527
46- SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND,
47-That the Laws of Maryland read as follows:
28+______________________________________________
29+Speaker.
4830
49-Article – Public Utilities Ch. 431 2024 LAWS OF MARYLAND
31+CHAPTER ______
5032
51-– 2 –
33+AN ACT concerning 1
5234
53-7–701.
35+Electricity – Offshore Wind Projects – Alterations 2
5436
55- (a) In this subtitle the following words have the meanings indicated.
37+FOR the purpose of requiring the Public Service Commission to open a certain proceeding 3
38+to evaluate certain offshore wind projects; authorizing certain offshore wind projects 4
39+to submit certain revised plans for project schedules, sizes, or pricing, including 5
40+offshore wind renewable energy credit pricing and, under certain circumstances, to 6
41+seek approval from the Commission to increase the maximum amount of offshore 7
42+wind renewable energy credits sold under a certain order, subject to certain 8
43+limitations; requiring the Commission to approve, conditionally approve, or deny 9
44+certain applications within a certain period of time; authorizing the Maryland 10
45+Energy Administration to have access to certain confidential information under 11
46+certain circumstances; requiring the Commission to develop and report to the 12
47+General Assembly on a certain plan; requiring the Commission to issue certain 13
48+procurement solicitations and a certain procurement on or before a certain date; 14
49+requiring a certain procurement contract to include certain terms; altering the 15 2 HOUSE BILL 1296
5650
57- (b) “Administration” means the Maryland Energy Administration.
5851
59- (f) “Offshore wind energy” means energy generated by a qualified offshore wind
60-project.
52+Department of General Services’ requirements and processes for the procurement of 1
53+offshore wind energy; and generally relating to offshore wind projects. 2
6154
62- (g) “Offshore wind renewable energy credit” or “OREC” means a renewable
63-energy credit equal to the generation attributes of 1 megawatt–hour of electricity that is
64-derived from offshore wind energy.
55+BY repealing and reenacting, without amendments, 3
56+ Article – Public Utilities 4
57+Section 7–701(a), (b), (f), (g), (k), (p), and (p–1) and, and 7–704.1(a), (c)(6)(ii), (g), (h), 5
58+and (i), and 7–704.4(d) 6
59+ Annotated Code of Maryland 7
60+ (2020 Replacement Volume and 2023 Supplement) 8
6561
66- (k) “Qualified offshore wind project” means a wind turbine electricity generation
67-facility, including the associated transmission–related interconnection facilities and
68-equipment, that:
62+BY adding to 9
63+ Article – Public Utilities 10
64+Section 7–704.1(l) and (m) 11
65+ Annotated Code of Maryland 12
66+ (2020 Replacement Volume and 2023 Supplement) 13
6967
70- (1) is located:
68+BY repealing and reenacting, with amendments, 14
69+ Article – Public Utilities 15
70+ Section 7–704.4(b)(1) and (e) 7–704.4 16
71+ Annotated Code of Maryland 17
72+ (2020 Replacement Volume and 2023 Supplement) 18
7173
72- (i) on the outer continental shelf of the Atlantic Ocean in an area
73-that the United States Department of the Interior designates for leasing; and
74+ SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 19
75+That the Laws of Maryland read as follows: 20
7476
75- (ii) more than 10 miles off the coast of the State for a project selected
76-under § 7–704.4 of this subtitle or approved under § 7–704.1 of this subtitle after June 1,
77-2023; and
77+Article – Public Utilities 21
7878
79- (2) interconnects to the PJM Interconnection grid:
79+7–701. 22
8080
81- (i) at a point located on the Delmarva Peninsula; or
81+ (a) In this subtitle the following words have the meanings indicated. 23
8282
83- (ii) through an offshore wind transmission project selected under §
84-7–704.3 of this subtitle.
83+ (b) “Administration” means the Maryland Energy Administration. 24
8584
86- (p) “Round 1 offshore wind project” means a qualified offshore wind project that:
85+ (f) “Offshore wind energy” means energy generated by a qualified offshore wind 25
86+project. 26
8787
88- (1) is between 10 and 30 miles off the coast of the State; and
88+ (g) “Offshore wind renewable energy credit” or “OREC” means a renewable 27
89+energy credit equal to the generation attributes of 1 megawatt–hour of electricity that is 28
90+derived from offshore wind energy. 29
8991
90- (2) the Commission approved under § 7–704.1 of this subtitle before July
91-1, 2017.
92+ (k) “Qualified offshore wind project” means a wind turbine electricity generation 30
93+facility, including the associated transmission–related interconnection facilities and 31
94+equipment, that: 32
9295
93- (p–1) “Round 2 offshore wind project” means a qualified offshore wind project that:
96+ (1) is located: 33
97+ HOUSE BILL 1296 3
9498
95- (1) is not less than 10 miles off the coast of the State; and
96- WES MOORE, Governor Ch. 431
9799
98-– 3 –
99- (2) the Commission approves under § 7–704.1 of this subtitle on or after
100-July 1, 2017.
100+ (i) on the outer continental shelf of the Atlantic Ocean in an area 1
101+that the United States Department of the Interior designates for leasing; and 2
101102
102-7–704.1.
103+ (ii) more than 10 miles off the coast of the State for a project selected 3
104+under § 7–704.4 of this subtitle or approved under § 7–704.1 of this subtitle after June 1, 4
105+2023; and 5
103106
104- (a) (1) The General Assembly finds and declares that:
107+ (2) interconnects to the PJM Interconnection grid: 6
105108
106- (i) the State has a goal of reaching 8,500 megawatts of offshore wind
107-energy capacity by 2031, including Round 1 offshore wind projects, Round 2 offshore wind
108-projects, and any other procurement efforts;
109+ (i) at a point located on the Delmarva Peninsula; or 7
109110
110- (ii) the General Assembly anticipates the issuance of sufficient wind
111-energy leases in the central Atlantic region to satisfy the goal stated in item (i) of this
112-paragraph;
111+ (ii) through an offshore wind transmission project selected under § 8
112+7–704.3 of this subtitle. 9
113113
114- (iii) the development of offshore wind energy is important to the
115-economic well–being of the State and the nation;
114+ (p) “Round 1 offshore wind project” means a qualified offshore wind project that: 10
116115
117- (iv) offshore wind can provide clean energy at the scale needed to
118-help achieve the State’s economy–wide net–zero greenhouse gas emissions reduction
119-targets established in Chapter 38 of the Acts of the General Assembly of 2022;
116+ (1) is between 10 and 30 miles off the coast of the State; and 11
120117
121- (v) it is in the public interest of the State to facilitate the
122-construction of at least 1,200 megawatts of Round 2 offshore wind projects in order to:
118+ (2) the Commission approved under § 7–704.1 of this subtitle before July 12
119+1, 2017. 13
123120
124- 1. position the State to take advantage of the economic
125-development benefits of the emerging offshore wind industry;
121+ (p–1) “Round 2 offshore wind project” means a qualified offshore wind project that: 14
126122
127- 2. promote the development of renewable energy sources
128-that increase the nation’s independence from foreign sources of fossil fuels;
123+ (1) is not less than 10 miles off the coast of the State; and 15
129124
130- 3. reduce the adverse environmental and health impacts of
131-traditional fossil fuel energy sources; and
125+ (2) the Commission approves under § 7–704.1 of this subtitle on or after 16
126+July 1, 2017. 17
132127
133- 4. provide a long–term hedge against volatile prices of fossil
134-fuels; and
128+7–704.1. 18
135129
136- (vi) it is in the public interest of the State to maximize the
137-opportunities for obtaining and using federal funds for offshore wind and related
138-transmission projects through the inclusion of specified labor standards and goals, domestic
139-content requirements, and other provisions to align State law with provisions of the federal
140-Infrastructure Investment and Jobs Act of 2021 and the federal Inflation Reduction Act of
141-2022.
142- Ch. 431 2024 LAWS OF MARYLAND
130+ (a) (1) The General Assembly finds and declares that: 19
143131
144-– 4 –
145- (2) After the effective date of Commission regulations implementing this
146-section and § 7–704.2 of this subtitle, and before June 30, 2017, a person may submit an
147-application to the Commission for approval of a proposed Round 1 offshore wind project.
132+ (i) the State has a goal of reaching 8,500 megawatts of offshore wind 20
133+energy capacity by 2031, including Round 1 offshore wind projects, Round 2 offshore wind 21
134+projects, and any other procurement efforts; 22
148135
149- (3) (i) On receipt of the application for approval of a Round 1 offshore
150-wind project, the Commission shall:
136+ (ii) the General Assembly anticipates the issuance of sufficient wind 23
137+energy leases in the central Atlantic region to satisfy the goal stated in item (i) of this 24
138+paragraph; 25
151139
152- 1. open an application period when other interested persons
153-may submit applications for approval of Round 1 offshore wind projects; and
140+ (iii) the development of offshore wind energy is important to the 26
141+economic well–being of the State and the nation; 27
154142
155- 2. provide notice that the Commission is accepting
156-applications for approval of Round 1 offshore wind projects.
143+ (iv) offshore wind can provide clean energy at the scale needed to 28
144+help achieve the State’s economy–wide net–zero greenhouse gas emissions reduction 29
145+targets established in Chapter 38 of the Acts of the General Assembly of 2022; 30
146+ 4 HOUSE BILL 1296
157147
158- (ii) The Commission shall set the closing date for the application
159-period to be no sooner than 90 days after the notice provided under subparagraph (i) of this
160-paragraph.
161148
162- (4) The Commission shall provide additional application periods
163-beginning, respectively:
149+ (v) it is in the public interest of the State to facilitate the 1
150+construction of at least 1,200 megawatts of Round 2 offshore wind projects in order to: 2
164151
165- (i) January 1, 2020, for consideration of Round 2 offshore wind
166-projects to begin creating ORECs not later than 2026;
152+ 1. position the State to take advantage of the economic 3
153+development benefits of the emerging offshore wind industry; 4
167154
168- (ii) January 1, 2021, for consideration of Round 2 offshore wind
169-projects to begin creating ORECs not later than 2028; and
155+ 2. promote the development of renewable energy sources 5
156+that increase the nation’s independence from foreign sources of fossil fuels; 6
170157
171- (iii) January 1, 2022, for consideration of Round 2 offshore wind
172-projects to begin creating ORECs not later than 2030.
158+ 3. reduce the adverse environmental and health impacts of 7
159+traditional fossil fuel energy sources; and 8
173160
174- (5) In its discretion, the Commission may provide for additional application
175-periods that meet the requirements of this section.
161+ 4. provide a long–term hedge against volatile prices of fossil 9
162+fuels; and 10
176163
177- (c) An application shall include:
164+ (vi) it is in the public interest of the State to maximize the 11
165+opportunities for obtaining and using federal funds for offshore wind and related 12
166+transmission projects through the inclusion of specified labor standards and goals, domestic 13
167+content requirements, and other provisions to align State law with provisions of the federal 14
168+Infrastructure Investment and Jobs Act of 2021 and the federal Inflation Reduction Act of 15
169+2022. 16
178170
179- (6) a commitment to:
171+ (2) After the effective date of Commission regulations implementing this 17
172+section and § 7–704.2 of this subtitle, and before June 30, 2017, a person may submit an 18
173+application to the Commission for approval of a proposed Round 1 offshore wind project. 19
180174
181- (ii) deposit at least $6,000,000, in the manner required under
182-subsection (h) of this section, into the Maryland Offshore Wind Business Development
183-Fund established under § 9–20C–03 of the State Government Article;
175+ (3) (i) On receipt of the application for approval of a Round 1 offshore 20
176+wind project, the Commission shall: 21
184177
185- (g) (1) An order the Commission issues approving a proposed offshore wind
186-project shall:
178+ 1. open an application period when other interested persons 22
179+may submit applications for approval of Round 1 offshore wind projects; and 23
187180
188- (i) specify the OREC price schedule, which may not authorize an
189-OREC price greater than, for a Round 1 offshore wind project, $190 per megawatt–hour in
190-2012 dollars; WES MOORE, Governor Ch. 431
181+ 2. provide notice that the Commission is accepting 24
182+applications for approval of Round 1 offshore wind projects. 25
191183
192-– 5 –
184+ (ii) The Commission shall set the closing date for the application 26
185+period to be no sooner than 90 days after the notice provided under subparagraph (i) of this 27
186+paragraph. 28
193187
194- (ii) specify the duration of the OREC pricing schedule, not to exceed
195-20 years;
188+ (4) The Commission shall provide additional application periods 29
189+beginning, respectively: 30
196190
197- (iii) specify the number of ORECs the offshore wind project may sell
198-each year;
191+ (i) January 1, 2020, for consideration of Round 2 offshore wind 31
192+projects to begin creating ORECs not later than 2026; 32
199193
200- (iv) provide that:
194+ (ii) January 1, 2021, for consideration of Round 2 offshore wind 33
195+projects to begin creating ORECs not later than 2028; and 34 HOUSE BILL 1296 5
201196
202- 1. a payment may not be made for an OREC until electricity
203-supply is generated by the offshore wind project; and
204197
205- 2. ratepayers, purchasers of ORECs, and the State shall be
206-held harmless for any cost overruns associated with the offshore wind project; and
207198
208- (v) require that any debt instrument issued in connection with a
209-qualified offshore wind project include language specifying that the debt instrument does
210-not establish a debt, obligation, or liability of the State.
199+ (iii) January 1, 2022, for consideration of Round 2 offshore wind 1
200+projects to begin creating ORECs not later than 2030. 2
211201
212- (2) An order approving a proposed offshore wind project vests the owner of
213-the qualified offshore wind project with the right to receive payments for ORECs according
214-to the terms in the order.
202+ (5) In its discretion, the Commission may provide for additional application 3
203+periods that meet the requirements of this section. 4
215204
216- (3) On or before March 1 each year, the Commission shall report to the
217-Governor and, in accordance with § 2–1257 of the State Government Article, to the Senate
218-Committee on Education, Energy, and the Environment and the House Economic Matters
219-Committee on:
205+ (c) An application shall include: 5
220206
221- (i) compliance by applicants with the minority business enterprise
222-participation goals under subsection (e)(4) of this section; and
207+ (6) a commitment to: 6
223208
224- (ii) with respect to the community benefit agreement under
225-subsection (f)(1) of this section:
209+ (ii) deposit at least $6,000,000, in the manner required under 7
210+subsection (h) of this section, into the Maryland Offshore Wind Business Development 8
211+Fund established under § 9–20C–03 of the State Government Article; 9
226212
227- 1. the availability and use of opportunities for local
228-businesses and small, minority, women–owned, and veteran–owned businesses;
213+ (g) (1) An order the Commission issues approving a proposed offshore wind 10
214+project shall: 11
229215
230- 2. the success of efforts to promote career training
231-opportunities in the manufacturing, maintenance, and construction industries for local
232-residents, veterans, women, and minorities; and
216+ (i) specify the OREC price schedule, which may not authorize an 12
217+OREC price greater than, for a Round 1 offshore wind project, $190 per megawatt–hour in 13
218+2012 dollars; 14
233219
234- 3. compliance with the minority workforce goal under
235-subsection (f)(1)(i)5 of this section.
236- Ch. 431 2024 LAWS OF MARYLAND
220+ (ii) specify the duration of the OREC pricing schedule, not to exceed 15
221+20 years; 16
237222
238-– 6 –
239- (h) For Round 2 offshore wind project applications, the Commission shall approve
240-OREC orders representing a minimum of 400 megawatts of nameplate capacity proposed
241-during each application period unless:
223+ (iii) specify the number of ORECs the offshore wind project may sell 17
224+each year; 18
242225
243- (1) not enough Round 2 offshore wind project applications are submitted to
244-meet the net benefit test under subsection (c)(3) of this section; or
226+ (iv) provide that: 19
245227
246- (2) the cumulative net ratepayer impact exceeds the maximums provided
247-in subsection (f)(1)(ii)2 of this section.
228+ 1. a payment may not be made for an OREC until electricity 20
229+supply is generated by the offshore wind project; and 21
248230
249- (i) (1) Within 60 days after the Commission approves the application of a
250-proposed offshore wind project, the qualified offshore wind project shall deposit $2,000,000
251-into the Maryland Offshore Wind Business Development Fund established under §
252-9–20C–03 of the State Government Article.
231+ 2. ratepayers, purchasers of ORECs, and the State shall be 22
232+held harmless for any cost overruns associated with the offshore wind project; and 23
253233
254- (2) Within 1 year after the initial deposit under paragraph (1) of this
255-subsection, the qualified offshore wind project shall deposit an additional $2,000,000 into
256-the Maryland Offshore Wind Business Development Fund.
234+ (v) require that any debt instrument issued in connection with a 24
235+qualified offshore wind project include language specifying that the debt instrument does 25
236+not establish a debt, obligation, or liability of the State. 26
257237
258- (3) Within 2 years after the initial deposit under paragraph (1) of this
259-subsection, the qualified offshore wind project shall deposit an additional $2,000,000 into
260-the Maryland Offshore Wind Business Development Fund.
238+ (2) An order approving a proposed offshore wind project vests the owner of 27
239+the qualified offshore wind project with the right to receive payments for ORECs according 28
240+to the terms in the order. 29
261241
262- (L) (1) IN THIS SUBSECTION , “REVISED ROUND 2 OFFSHORE WIND
263-PROJECT” MEANS A ROUND 2 OFFSHORE WIND PROJECT THAT HAS FILED AN
264-APPLICATION WITH THE COMMISSION FOR REVISE D PROJECT SCHEDULES , SIZES,
265-OR PRICING, INCLUDING OREC PRICING, UNDER THIS SUBSECTIO N.
242+ (3) On or before March 1 each year, the Commission shall report to the 30
243+Governor and, in accordance with § 2–1257 of the State Government Article, to the Senate 31 6 HOUSE BILL 1296
266244
267- (2) THIS SUBSECTION APPLI ES TO ROUND 1 OFFSHORE WIND
268-PROJECTS AND ROUND 2 OFFSHORE WIND PRO JECTS THAT:
269245
270- (I) ARE TO BE LOCATED IN A WIND ENERGY AREA A UTHORIZED
271-BY THE BUREAU OF OCEAN ENERGY MANAGEMENT ; AND
246+Committee on Education, Energy, and the Environment and the House Economic Matters 1
247+Committee on: 2
272248
273- (II) POSSESS ORECS, OR ARE SUBJECT TO A COMMISSION
274-ORDER APPROVING AN OREC PRICE SCHEDULE , AS OF JUNE 1, 2024.
249+ (i) compliance by applicants with the minority business enterprise 3
250+participation goals under subsection (e)(4) of this section; and 4
275251
276- (3) (I) ON JUNE 1, 2024, THE COMMISSION SHALL OPEN A
277-REVISED ROUND 2 OFFSHORE WIND PROJEC T PROCEEDING THAT IS LIMITED TO
278-EVALUATING REVISED P ROJECT SCHEDULES , SIZES, OR PRICING, INCLUDING
279-OREC PRICING, FOR A PREVIOUSLY APP ROVED ROUND 2 OFFSHORE WIND
280-PROJECT.
281- WES MOORE, Governor Ch. 431
252+ (ii) with respect to the community benefit agreement under 5
253+subsection (f)(1) of this section: 6
282254
283-– 7 –
284- (II) ANY PREVIOUSLY APPROVED ROUND 2 OFFSHORE WIND
285-PROJECT MAY SUBMIT A REVISED PLAN FOR THE PROJECT BY FILING AN
286-APPLICATION WITH THE COMMISSION.
255+ 1. the availability and use of opportunities for local 7
256+businesses and small, minority, women–owned, and veteran–owned businesses; 8
287257
288- (III) AN APPLICATION FOR A REVISED ROUND 2 OFFSHORE WIND
289-PROJECT SHALL BE LIM ITED TO ADDRESSING R EVISED PROJECT SCHEDULES, SIZES,
290-OR PRICING, INCLUDING OREC PRICING.
258+ 2. the success of efforts to promote career training 9
259+opportunities in the manufacturing, maintenance, and construction industries for local 10
260+residents, veterans, women, and minorities; and 11
291261
292- (IV) 1. ON RECEIPT OF AN APPL ICATION FOR APPROVAL OF
293-A REVISED ROUND 2 OFFSHORE WIND PROJEC T, THE COMMISSION SHALL COND UCT
294-AN EXPEDITED REVIEW OF THE APPLICATION .
262+ 3. compliance with the minority workforce goal under 12
263+subsection (f)(1)(i)5 of this section. 13
295264
296- 2. UNLESS EXTENDED BY MU TUAL CONSENT OF THE
297-PARTIES, THE COMMISSION SHALL APPR OVE, CONDITIONALLY APPROV E, OR DENY
298-AN APPLICATION WITHI N 90 DAYS AFTER THE APPLI CATION IS FILED AND FOUND BY
299-THE COMMISSION TO BE ADMI NISTRATIVELY COMPLET E.
265+ (h) For Round 2 offshore wind project applications, the Commission shall approve 14
266+OREC orders representing a minimum of 400 megawatts of nameplate capacity proposed 15
267+during each application period unless: 16
300268
301- (V) 1. EXCEPT AS PROVIDED IN SUBSUBPARAGRAPHS 2 AND
302-3 OF THIS SUBPARAGRAPH , AN APPLICATION FOR A REVISED ROUND 2 OFFSHORE
303-WIND PROJECT SHALL B E SUBJECT TO ALL CRI TERIA SET FORTH IN T HIS SECTION
304-FOR ROUND 2 OFFSHORE WIND PROJEC TS.
269+ (1) not enough Round 2 offshore wind project applications are submitted to 17
270+meet the net benefit test under subsection (c)(3) of this section; or 18
305271
306- 2. AN APPLICATION FOR A REVISED ROUND 2
307-OFFSHORE WIND PROJEC T IS NOT SUBJECT TO THE RE QUIREMENTS OF
308-SUBSECTIONS (C)(6)(II) AND (I) OF THIS SECTION.
272+ (2) the cumulative net ratepayer impact exceeds the maximums provided 19
273+in subsection (f)(1)(ii)2 of this section. 20
309274
310- 3. IF IN A REVISED ROUND 2 OFFSHORE WIND PROJEC T
311-PROCEEDING THE COMMISSION REVIEWS MU LTIPLE REASONABLE PR OPOSALS
312-MEETING THE REQUIREM ENTS OF THIS SECTION FOR ROUND 2 OFFSHORE WIND
313-PROJECTS, THE COMMISSION SHALL ISSU E ORDERS APPROVING T HE REVISED
314-ROUND 2 OFFSHORE WIND PROJEC TS NECESSARY TO FACI LITATE AS MUCH ENERG Y
315-CAPACITY AS IS CONSI STENT WITH THE ROUND 2 OFFSHORE WIND PROJEC T
316-RATEPAYER PROTECTION S UNDER THIS SECTION , INCLUDING AT LEAST 800
317-MEGAWATTS OF CAPACIT Y FROM REVISED ROUND 2 OFFSHORE WIND PROJEC TS, IF
318-PRACTICABLE , EVEN IF THE REVISED ROUND 2 OFFSHORE WIND PROJEC T
319-APPLICATIONS MAY RES ULT IN LOWER TOTAL E NERGY CAPACITY AWARD ED THAN
320-WAS PREVIOUSLY AWARD ED TO THE REVI SED ROUND 2 OFFSHORE WIND PROJEC T
321-IN ITS PREVIOUSLY AP PROVED ROUND 2 OFFSHORE WIND PROJEC T APPLICATION.
275+ (i) (1) Within 60 days after the Commission approves the application of a 21
276+proposed offshore wind project, the qualified offshore wind project shall deposit $2,000,000 22
277+into the Maryland Offshore Wind Business Development Fund established under § 23
278+9–20C–03 of the State Government Article. 24
322279
323- 4. WHEN EVALUATING AN AP PLICATION FOR A REVI SED
324-ROUND 2 OFFSHORE WIND PROJEC T, THE COMMISSION SHALL , TO THE EXTENT
325-PRACTICABLE , EXTEND PRIOR OR EXI STING PROCEEDINGS FO R APPLICANTS THAT
326-HAVE A PREVIOUSLY AP PROVED ORDER FOR A ROUND 2 OFFSHORE WIND PROJEC T. Ch. 431 2024 LAWS OF MARYLAND
280+ (2) Within 1 year after the initial deposit under paragraph (1) of this 25
281+subsection, the qualified offshore wind project shall deposit an additional $2,000,000 into 26
282+the Maryland Offshore Wind Business Development Fund. 27
327283
328-– 8 –
284+ (3) Within 2 years after the initial deposit under paragraph (1) of this 28
285+subsection, the qualified offshore wind project shall deposit an additional $2,000,000 into 29
286+the Maryland Offshore Wind Business Development Fund. 30
329287
330- (VI) THE COMMISSION MAY NOT AP PROVE AN APPLICATION FOR
331-A REVISED ROUND 2 OFFSHORE WIND PROJEC T UNLESS THE APPLICA TION
332-INCLUDES COMMITMENTS FOR IN–STATE EXPENDITURES AN D INVESTMENTS IN A
333-LOCAL SUPPLY CHAIN T HAT THE COMMISSION DETERMINES ARE REASONABLY
334-RELATED TO THE SIZE AND REQUIREMENTS OF THE PROJECT.
288+ (L) (1) IN THIS SUBSECTION , “REVISED ROUND 2 OFFSHORE WIND 31
289+PROJECT” MEANS A ROUND 2 OFFSHORE WIND PROJEC T THAT HAS FILED AN 32
290+APPLICATION WITH THE COMMISSION FOR REVISE D PROJECT SCHEDULES , SIZES, 33
291+OR PRICING, INCLUDING OREC PRICING, UNDER THIS SUBSECTIO N. 34 HOUSE BILL 1296 7
335292
336- (VII) THE ADMINISTRATION SHALL HAVE ACCESS TO ALL
337-CONFIDENTIAL INFORMA TION PRODUCED BY ANY PARTY RELATING TO A R EVISED
338-ROUND 2 OFFSHORE WIND PROJEC T PROCEEDING , SUBJECT TO AN AGREEM ENT TO
339-PROTECT THE CONFIDEN TIALITY OF THE INFOR MATION.
340293
341- (4) (I) IN ORDER TO MAXIMIZE THE AMOUNT OF RENEWA BLE
342-ENERGY GENERATED BY A ROUND 1 OFFSHORE WIND PROJEC T, ANY ROUND 1
343-OFFSHORE WIND PROJEC T MAY SEEK APPROVAL FROM THE COMMISSION TO AMEND
344-ITS PREVIOUSLY APPRO VED ROUND 1 OFFSHORE WIND PROJEC T ORDER TO:
345294
346- 1. INCREASE THE MAXIMUM AMOUNT OF ORECS SOLD
347-UNDER THE PREVIOUS O RDER, CONSISTENT WITH THE ROUND 1 OFFSHORE WIND
348-PROJECT RATEPAYER PR OTECTIONS UNDER THIS SECTION; AND
295+ (2) THIS SUBSECTION APPLI ES TO ROUND 1 OFFSHORE WIND 1
296+PROJECTS AND ROUND 2 OFFSHORE WIND PROJEC TS THAT: 2
349297
350- 2. MODIFY ITS PROJECT S CHEDULE.
298+ (I) ARE TO BE LOCATED IN A WIND ENERGY AREA A UTHORIZED 3
299+BY THE BUREAU OF OCEAN ENERGY MANAGEMENT ; AND 4
351300
352- (II) THE COMMISSION MAY APPROV E A REQUEST FOR AN
353-INCREASED AMOUNT OF ORECS SOLD UNDER A PREVI OUSLY APPROVED ROUND 1
354-OFFSHORE WIND PROJEC T ORDER ON A SHOWING THAT:
301+ (II) POSSESS ORECS, OR ARE SUBJECT TO A COMMISSION 5
302+ORDER APPROVING AN OREC PRICE SCHEDULE , AS OF JUNE 1, 2024. 6
355303
356- 1. THE UNIT PRICING OF THE ADDITIONAL ORECS DOES
357-NOT EXCEED THE PRICI NG UNDER THE PREVIOU SLY APPROVED ROUND 1
358-OFFSHORE WIND PROJEC T ORDER; AND
304+ (3) (I) ON JUNE 1, 2024, THE COMMISSION SHALL OPEN A 7
305+REVISED ROUND 2 OFFSHORE WIND PROJEC T PROCEEDING THAT IS LIMITED TO 8
306+EVALUATING REVISED P ROJECT SCHEDULES , SIZES, OR PRICING, INCLUDING 9
307+OREC PRICING, FOR A PREVIOUSLY APP ROVED ROUND 2 OFFSHORE WIND 10
308+PROJECT. 11
359309
360- 2. THE ROUND 1 OFFSHORE WIND PROJEC T IS IN
361-COMPLIANCE WITH THE RATEPAYER PROTECTION PROVISIONS REQUIRED FOR
362-ROUND 1 OFFSHORE WIND PROJEC TS, TAKING INTO CONSIDER ATION CHANGES IN
363-ECONOMIC CONDITIONS SINCE THE ORIGINAL ROUND 1 OFFSHORE WIND PROJEC T
364-AWARDS.
310+ (II) ANY PREVIOUSLY APPROV ED ROUND 2 OFFSHORE WIND 12
311+PROJECT MAY SUBMIT A REVISED PLAN FOR THE PROJECT BY FILING AN 13
312+APPLICATION WITH THE COMMISSION. 14
365313
366- (M) (1) THE COMMISSION, WITH THE ASSISTANCE OF THE
367-ADMINISTRATION , THE DEPARTMENT OF THE ENVIRONMENT, THE DEPARTMENT
368-OF NATURAL RESOURCES THE DEPARTMENT OF GENERAL SERVICES, AND OTHER
369-INTERESTED STATE UNITS SHALL DEV ELOP A PLAN FOR ACHI EVING A TOTAL OF
370-8,500 MEGAWATTS OF OFFSHOR E WIND ENERGY CAPACI TY BY 2031.
371- WES MOORE, Governor Ch. 431
314+ (III) AN APPLICATION FOR A REVISED ROUND 2 OFFSHORE WIND 15
315+PROJECT SHALL BE LIM ITED TO ADDRESSING R EVISED PROJECT SCHEDULES , SIZES, 16
316+OR PRICING, INCLUDING OREC PRICING. 17
372317
373-– 9 –
374- (2) THE PLAN:
318+ (IV) 1. ON RECEIPT OF AN APPL ICATION FOR APPROVAL OF 18
319+A REVISED ROUND 2 OFFSHORE WIND PROJEC T, THE COMMISSION SHALL COND UCT 19
320+AN EXPEDITED REVIEW OF THE APPLICATION . 20
375321
376- (I) SHALL INCLUDE A SCHEDULE OF OFFSHORE WIND ENERGY
377-PROCUREMENTS AND PRO POSED AMOUNTS OF OFF SHORE WIND ENERGY FO R
378-PROCUREMENT THROUGH 2031; AND
322+ 2. UNLESS EXTENDED BY MUTUAL CONSENT OF THE 21
323+PARTIES, THE COMMISSION SHALL APPR OVE, CONDITIONALLY APPROV E, OR DENY 22
324+AN APPLICATION WITHI N 90 DAYS AFTER THE APPLI CATION IS FILED AND FOUND BY 23
325+THE COMMISSION TO BE ADMI NISTRATIVELY COMPLET E. 24
379326
380- (II) MAY INCLUDE RECOMMEN DATIONS ON
381-MULTIJURISDICTIONAL OFFSHORE WIND ENERGY PROCUREMENTS AND ANY
382-ADDITIONAL OFFSHORE WIND ENERGY PROCUREMENT RECO MMENDATIONS .
327+ (V) 1. EXCEPT AS PROVIDED IN SUBSUBPARAGRAPHS 2 AND 25
328+3 OF THIS SUBPARAGRAPH , AN APPLICATION FOR A REVISED ROUND 2 OFFSHORE 26
329+WIND PROJECT SHALL B E SUBJECT TO ALL CRI TERIA SET FORTH IN T HIS SECTION 27
330+FOR ROUND 2 OFFSHORE WIND PROJEC TS. 28
383331
384- (3) ON OR BEFORE JANUARY 1, 2025, THE COMMISSION SHALL
385-SUBMIT A REPORT ON T HE PLAN TO THE GENERAL ASSEMBLY, IN ACCORDANCE
386-WITH § 2–1257 OF THE STATE GOVERNMENT ARTICLE.
332+ 2. AN APPLICATION FOR A REVISED ROUND 2 29
333+OFFSHORE WIND PR OJECT IS NOT SUBJECT TO THE REQUIREMENTS OF 30
334+SUBSECTIONS (C)(6)(II) AND (I) OF THIS SECTION. 31
387335
388-7–704.4.
336+ 3. IF IN A REVISED ROUND 2 OFFSHORE WIND PROJEC T 32
337+PROCEEDING THE COMMISSION REVIEWS MU LTIPLE REASONABLE PR OPOSALS 33 8 HOUSE BILL 1296
389338
390- (a) (1) In this section the following words have the meanings indicated.
391339
392- (2) “Community benefit agreement” has the meaning stated in § 7–704.1(e)
393-of this subtitle.
340+MEETING THE REQUIREM ENTS OF THIS SECTION FOR ROUND 2 OFFSHORE WIND 1
341+PROJECTS, THE COMMISSION SHALL ISSU E ORDERS APPROVING T HE REVISED 2
342+ROUND 2 OFFSHORE WIND PROJEC TS NECESSARY TO FACI LITATE AS MUCH ENERG Y 3
343+CAPACITY AS IS CONSI STENT WITH THE ROUND 2 OFFSHORE WIND PROJEC T 4
344+RATEPAYER PROTECTION S UNDER THIS S ECTION, INCLUDING AT LEAST 800 5
345+MEGAWATTS OF CAPACIT Y FROM REVISED ROUND 2 OFFSHORE WIND PROJEC TS, IF 6
346+PRACTICABLE , EVEN IF THE REVISED ROUND 2 OFFSHORE WIND PROJEC T 7
347+APPLICATIONS MAY RES ULT IN LOWER TOTAL E NERGY CAPACITY AWARD ED THAN 8
348+WAS PREVIOUSLY AWARD ED TO THE REVISED ROUND 2 OFFSHORE WIND PROJEC T 9
349+IN ITS PREVIOUSLY AP PROVED ROUND 2 OFFSHORE WIND PROJEC T APPLICATION. 10
394350
395- (3) “Social cost of greenhouse gases” means the most recent social cost of
396-greenhouse gases adopted by the U.S. Environmental Protection Agency.
351+ 4. WHEN EVALUATING AN AP PLICATION FOR A REVI SED 11
352+ROUND 2 OFFSHORE WIND PROJEC T, THE COMMISSION SHALL , TO THE EXTENT 12
353+PRACTICABLE , EXTEND PRIOR OR EXISTING PR OCEEDINGS FOR APPLIC ANTS THAT 13
354+HAVE A PREVIOUSLY AP PROVED ORDER FOR A ROUND 2 OFFSHORE WIND PROJEC T. 14
397355
398- (b) (1) The Department of General Services, in consultation with the Public
399-Service Commission, shall issue a competitive sealed procurement solicitation and may
400-enter into at least one contract for a power purchase agreement to procure [up to 5,000,000
401-megawatt–hours annually of] offshore wind energy and associated renewable energy
402-credits from one or more qualified offshore wind projects.
356+ (VI) THE COMMISSION MAY NOT AP PROVE AN APPLICATION FOR 15
357+A REVISED ROUND 2 OFFSHORE WIND PROJEC T UNLESS THE APPLICA TION 16
358+INCLUDES COMMI TMENTS FOR IN –STATE EXPENDITURES AN D INVESTMENTS IN A 17
359+LOCAL SUPPLY CHAIN T HAT THE COMMISSION DETERMINES ARE REASONABLY 18
360+RELATED TO THE SIZE AND REQUIREMENTS OF THE PROJECT. 19
403361
404- (2) Each agreement entered into under paragraph (1) of this subsection
405-shall have a term of not less than 20 years.
362+ (VII) THE ADMINISTRATION SHALL HAVE ACCESS TO ALL 20
363+CONFIDENTIAL INFORMA TION PRODU CED BY ANY PARTY REL ATING TO A REVISED 21
364+ROUND 2 OFFSHORE WIND PROJEC T PROCEEDING , SUBJECT TO AN AGREEM ENT TO 22
365+PROTECT THE CONFIDEN TIALITY OF THE INFOR MATION. 23
406366
407- (3) When issuing the invitation for bids under this subsection, the
408-Department shall take into consideration:
367+ (4) (I) IN ORDER TO MAXIMIZE THE AMOUNT OF RENEWA BLE 24
368+ENERGY GENERATED BY A ROUND 1 OFFSHORE WIND PROJECT, ANY ROUND 1 25
369+OFFSHORE WIND PROJEC T MAY SEEK APPROVAL FROM THE COMMISSION TO AMEND 26
370+ITS PREVIOUSLY APPRO VED ROUND 1 OFFSHORE WIND PROJEC T ORDER TO: 27
409371
410- (i) the social cost of greenhouse gas emissions;
372+ 1. INCREASE THE MAXIMUM AMOUNT OF ORECS SOLD 28
373+UNDER THE PREVIOUS O RDER, CONSISTENT WITH THE ROUND 1 OFFSHORE WIND 29
374+PROJECT RATEPAYER PR OTECTIONS UNDER THIS SECTION; AND 30
411375
412- (ii) the State’s climate commitments; and
376+ 2. MODIFY ITS PROJECT S CHEDULE. 31
413377
414- (iii) the State’s commitments under § 7–704.1(a) of this subtitle.
378+ (II) THE COMMISSION MAY APPROV E A REQUEST FOR AN 32
379+INCREASED AMOUNT OF ORECS SOLD UNDER A PREVI OUSLY APPROVED ROUND 1 33
380+OFFSHORE WIND PROJEC T ORDER ON A SHOWING THAT : 34
381+ HOUSE BILL 1296 9
415382
416- (4) The evaluation criteria for bids shall include:
417- Ch. 431 2024 LAWS OF MARYLAND
418383
419-– 10 –
420- (i) comparing the social cost of greenhouse gas emissions for offshore
421-wind with the social cost of greenhouse gas emissions for nonrenewable power purchased
422-from wholesale electric markets administered by PJM Interconnection; and
384+ 1. THE UNIT PRICING OF THE ADDITIONAL ORECS DOES 1
385+NOT EXCEED THE PRICI NG UNDER THE PREVIOU SLY APPROVED ROUND 1 2
386+OFFSHORE WIND PROJEC T ORDER; AND 3
423387
424- (ii) the extent to which an applicant’s proposal provides for financial
425-and technical assistance to support monitoring and mitigation of wildlife and habitat
426-impacts associated with the proposed offshore wind project.
388+ 2. THE ROUND 1 OFFSHORE WIND PROJEC T IS IN 4
389+COMPLIANCE WITH THE RATEPAYER PROTECTION PROVISIONS REQUIRED FOR 5
390+ROUND 1 OFFSHORE WIND PROJEC TS, TAKING INTO CONSIDER ATION CHANGES IN 6
391+ECONOMIC CONDITIONS SINCE THE ORIGINAL ROUND 1 OFFSHORE WIND PROJEC T 7
392+AWARDS. 8
427393
428- (5) Each agreement entered into under paragraph (1) of this subsection
429-shall include:
394+ (M) (1) THE COMMISSION, WITH THE ASSISTANCE OF THE 9
395+ADMINISTRATION , THE DEPARTMENT OF THE ENVIRONMENT , THE DEPARTMENT 10
396+OF NATURAL RESOURCES THE DEPARTMENT OF GENERAL SERVICES, AND OTHER 11
397+INTERESTED STATE UNITS SHALL DEV ELOP A PLAN FOR ACHI EVING A TOTAL OF 12
398+8,500 MEGAWATTS OF OFFSHOR E WIND ENERGY CAPACI TY BY 2031. 13
430399
431- (i) a community benefit agreement and domestic content preferences;
432-and
400+ (2) THE PLAN: 14
433401
434- (ii) a description of:
402+ (I) SHALL INCLUDE A SCHE DULE OF OFFSHORE WIN D ENERGY 15
403+PROCUREMENTS AND PRO POSED AMOUNTS OF OFF SHORE WIND ENERGY FO R 16
404+PROCUREMENT THROUGH 2031; AND 17
435405
436- 1. initial plans for mitigating the impacts of the construction
437-and operation of the proposed offshore wind project on fisheries and the environment; and
406+ (II) MAY INCLUDE RECOMMEN DATIONS ON 18
407+MULTIJURISDICTIONAL OFFSHORE WIND ENERGY PROCUREMENTS AND ANY 19
408+ADDITIONAL OF FSHORE WIND ENERGY P ROCUREMENT RECOMMEND ATIONS. 20
438409
439- 2. the extent to which an applicant will provide for financial
440-and technical assistance to support the monitoring and mitigation of wildlife and habitat
441-impacts associated with the project.
410+ (3) ON OR BEFORE JANUARY 1, 2025, THE COMMISSION SHALL 21
411+SUBMIT A REPORT ON T HE PLAN TO THE GENERAL ASSEMBLY, IN ACCORDANCE 22
412+WITH § 2–1257 OF THE STATE GOVERNMENT ARTICLE. 23
442413
443- (c) (1) The Department of General Services shall identify the amount of energy
444-necessary to meet the State’s energy needs.
414+7–704.4. 24
445415
446- (2) (i) The State shall use the energy procured under subsection (b) of
447-this section to meet the State’s energy needs and retire the associated renewable energy
448-credits to meet its obligations under the renewable energy portfolio standard and Chapter
449-38 of the Acts of the General Assembly of 2022.
416+ (a) (1) In this section the following words have the meanings indicated. 25
450417
451- (ii) The State shall be exempted from the renewable energy portfolio
452-standard requirements under § 7–703 of this subtitle if the Department of General Services
453-procures 100% of the State’s energy needs from the power purchase agreement required
454-under subsection (b) of this section.
418+ (2) “Community benefit agreement” has the meaning stated in § 7–704.1(e) 26
419+of this subtitle. 27
455420
456- (3) The State shall offer for sale any energy or renewable energy credits
457-remaining after the requirements under paragraph (2) of this subsection have been met on
458-the competitive wholesale power market operated by PJM Interconnection, through bilateral
459-sales to credit–worthy counterparties, or into renewable energy credit markets.
421+ (3) “Social cost of greenhouse gases” means the most recent social cost of 28
422+greenhouse gases adopted by the U.S. Environmental Protection Agency. 29
460423
461- (d) (1) The State shall:
424+ (b) (1) The Department of General Services, in consultation with the Public 30
425+Service Commission, shall issue a competitive sealed procurement solicitation and may 31
426+enter into at least one contract for a power purchase agreement to procure [up to 5,000,000 32
427+megawatt–hours annually of] offshore wind energy and associated renewable energy 33
428+credits from one or more qualified offshore wind projects. 34 10 HOUSE BILL 1296
462429
463- (1) (I) ISSUE A DRAFT SOLICI TATION FOR PROCUREME NT OF
464-OFFSHORE WIND ENERGY FOR PUBLIC COMMENT A ND REVIEW ON OR BEFORE JUNE
465-1, 2024; WES MOORE, Governor Ch. 431
466430
467-– 11 –
468431
469- (II) issue a procurement for offshore wind energy on or before July
470-31, 2024;
432+ (2) Each agreement entered into under paragraph (1) of this subsection 1
433+shall have a term of not less than 20 years. 2
471434
472- (2) (III) provide a procurement submission process window of not less
473-than 180 days; and
435+ (3) When issuing the invitation for bids under this subsection, the 3
436+Department shall take into consideration: 4
474437
475- (3) (IV) award contracts in a timely manner.
438+ (i) the social cost of greenhouse gas emissions; 5
476439
477- (e) (1) (2) (I) Subject to SUBPARAGRAPH (II) OF THIS paragraph [(2)
478-of this subsection], ON OR BEFORE SEPTEMBER 1, 2025, the State may enter into a
479-contract or contracts for the procurement on or before September 1, 2025 ISSUED UNDER
480-PARAGRAPH (1) OF THIS SUBSECTION .
440+ (ii) the State’s climate commitments; and 6
481441
482- [(2)] (II) The State may modify the date established in SUBPARAGRAPH
483-(I) OF THIS paragraph [(1) of this subsection] if an unforeseen circumstance adversely
484-affects the procurement submission process.
442+ (iii) the State’s commitments under § 7–704.1(a) of this subtitle. 7
485443
486- (2) (I) IF NO QUALIFIED OFFSH ORE WIND PROJECTS ARE
487-SUBMITTED DURING THE PROCUREMENT SUBMISSI ON PROCESS UNDER
488-PARAGRAPH (1) OF THIS SUBSECTION , THE STATE:
444+ (4) The evaluation criteria for bids shall include: 8
489445
490- 1. MAY EVALUATE AND REV ISE THE CONDITIONS O F THE
491-OFFSHORE WIND ENERGY PROCUREMENT ; AND
446+ (i) comparing the social cost of greenhouse gas emissions for offshore 9
447+wind with the social cost of greenhouse gas emissions for nonrenewable power purchased 10
448+from wholesale electric markets administered by PJM Interconnection; and 11
492449
493- (E) (1) IN ADDITION TO THE SO LICITATION AND PROCUREMENT ISSUED
494-UNDER SUBSECTION (D) OF THIS SECTION, THE STATE:
450+ (ii) the extent to which an applicant’s proposal provides for financial 12
451+and technical assistance to support monitoring and mitigation of wildlife and habitat 13
452+impacts associated with the proposed offshore wind project. 14
495453
496- (I) SHALL ISSUE A DRAFT SOLICITATION FOR PRO CUREMENT
497-OF OFFSHORE WIND ENE RGY FOR PUBLIC COMME NT AND REVIEW ON OR BEFORE
498-SEPTEMBER 1, 2025; AND
454+ (5) Each agreement entered into under paragraph (1) of this subsection 15
455+shall include: 16
499456
500- 2. (II) SHALL ISSUE A PROCUR EMENT FOR OFFSHORE WIND
501-ENERGY ON OR BEFORE DECEMBER 31, 2025.
457+ (i) a community benefit agreement and domestic content preferences; 17
458+and 18
502459
503- (II) (2) SUBJECT TO SUBPARAGRAPH (III) OF THIS
504-PARAGRAPH PARAGRAPH (3) OF THIS SUBSECTION A ND IN ADDITION TO AN Y
505-CONTRACT ENTERED INT O UNDER SUBSECTION (D) OF THIS SECTION, ON OR BEFORE
506-MARCH 31, 2027, THE STATE MAY ENTER INTO A CONTRACT OR CONTRA CTS FOR
507-THE PROCUREMENT ON OR BEFORE MARCH 31, 2027 ISSUED UNDER PARAGRA PH
508-(1) OF THIS SUBSECTION .
460+ (ii) a description of: 19
509461
510- (III) (3) THE STATE MAY MODIFY THE DATE ESTABLISHED IN
511-SUBPARAGRAPH (II) OF THIS PARAGRAPH PARAGRAPH (2) OF THIS SUBSECTION IF Ch. 431 2024 LAWS OF MARYLAND
462+ 1. initial plans for mitigating the impacts of the construction 20
463+and operation of the proposed offshore wind project on fisheries and the environment; and 21
512464
513-– 12 –
514-AN UNFORESEEN CIRCUM STANCE ADVERSELY AFF ECTS THE PROCUREMENT
515-SUBMISSION PROCESS .
465+ 2. the extent to which an applicant will provide for financial 22
466+and technical assistance to support the monitoring and mitigation of wildlife and habitat 23
467+impacts associated with the project. 24
516468
517- (F) THE STATE SHALL INCORPORA TE IN THE OFFSHORE W IND ENERGY
518-PROCUREMENT CONTRACT TERMS TO FACILITATE LOW–COST PROJECT
519-DEVELOPMENT AND TRAD ITIONAL PROJECT FINANCING TE RMS, INCLUDING:
469+ (c) (1) The Department of General Services shall identify the amount of energy 25
470+necessary to meet the State’s energy needs. 26
520471
521- (1) TERMS THAT WAIVE THE AUTOMATIC TERMINATIO N CLAUSE
522-REQUIRED UNDER § 13–217 OF THE STATE FINANCE AND PROCUREMENT ARTICLE;
472+ (2) (i) The State shall use the energy procured under subsection (b) of 27
473+this section to meet the State’s energy needs and retire the associated renewable energy 28
474+credits to meet its obligations under the renewable energy portfolio standard and Chapter 29
475+38 of the Acts of the General Assembly of 2022. 30
476+ HOUSE BILL 1296 11
523477
524- (2) TERMS THAT ESTABLISH REMEDIES TO REIMBURS E COSTS
525-INCURRED BY THE CONT RACTOR DIRECTLY ATTRIBUTABLE TO THE FAILURE OF THE
526-STATE TO APPROPRIATE FUNDS FOR THE CONTRA CT; AND
527478
528- (3) ANY OTHER APPROPRIAT E MECHANISMS TO ENSU RE THAT
529-OFFSHORE WIND ENERGY PROJECTS THAT MEET T HE TERMS OF THE CONT RACT WILL
530-HAVE CERTAINTY OF PA YMENT THROUGH THE DU RATION OF THE CONTRACT .
479+ (ii) The State shall be exempted from the renewable energy portfolio 1
480+standard requirements under § 7–703 of this subtitle if the Department of General Services 2
481+procures 100% of the State’s energy needs from the power purchase agreement required 3
482+under subsection (b) of this section. 4
531483
532- (G) (1) Within 90 days after the operational commencement date of the power
533-purchase agreement, any contractor providing operations and maintenance services under
534-an agreement with the Department of General Services shall submit to the Department
535-attestation that the contractor has entered into a labor peace agreement with each labor
536-organization that is actively engaged in representing or attempting to represent employees
537-performing operations and maintenance work on the projects that:
484+ (3) The State shall offer for sale any energy or renewable energy credits 5
485+remaining after the requirements under paragraph (2) of this subsection have been met on 6
486+the competitive wholesale power market operated by PJM Interconnection, through bilateral 7
487+sales to credit–worthy counterparties, or into renewable energy credit markets. 8
538488
539- (i) prohibits strikes, lockouts, or any other economic interference with
540-the contracted project;
489+ (d) (1) The State shall: 9
541490
542- (ii) describes the class or classes of covered employees to whom the
543-labor peace agreement applies;
491+ (1) (I) ISSUE A DRAFT SOLICI TATION FOR PROCUREME NT OF 10
492+OFFSHORE WIND ENERGY FOR PUBLIC COMMENT A ND REVIEW ON OR BEFORE JUNE 11
493+1, 2024; 12
544494
545- (iii) describes any class or classes of employees not currently
546-represented by a labor organization;
495+ (II) issue a procurement for offshore wind energy on or before July 13
496+31, 2024; 14
547497
548- (iv) describes the classes of covered employees for which labor peace
549-agreement negotiations have not yet concluded; and
498+ (2) (III) provide a procurement submission process window of not less 15
499+than 180 days; and 16
550500
551- (v) for classes of employees that are not covered by a labor peace
552-agreement, provides an attestation that no labor organization has sought to negotiate such
553-an agreement.
501+ (3) (IV) award contracts in a timely manner. 17
554502
555- (2) A labor peace agreement required under paragraph (1) of this subsection
556-shall be:
503+ (e) (1) (2) (I) Subject to SUBPARAGRAPH (II) OF THIS paragraph [(2) 18
504+of this subsection], ON OR BEFORE SEPTEMBER 1, 2025, the State may enter into a 19
505+contract or contracts for the procurement on or before September 1, 2025 ISSUED UNDER 20
506+PARAGRAPH (1) OF THIS SUBSECTION . 21
557507
558- (i) valid and enforceable under 29 U.S.C. § 158; and WES MOORE, Governor Ch. 431
508+ [(2)] (II) The State may modify the date established in SUBPARAGRAPH 22
509+(I) OF THIS paragraph [(1) of this subsection] if an unforeseen circumstance adversely 23
510+affects the procurement submission process. 24
559511
560-– 13 –
512+ (2) (I) IF NO QUALIFIED OFFSH ORE WIND PROJECTS ARE 25
513+SUBMITTED DURING THE PROCUREMENT SUBMISSI ON PROCESS UNDER 26
514+PARAGRAPH (1) OF THIS SUBSECTION , THE STATE: 27
561515
562- (ii) maintained as an ongoing material condition of any continuation
563-of payments under any agreement required by this subsection.
516+ 1. MAY EVALUATE AND REV ISE THE CONDITIONS O F THE 28
517+OFFSHORE WIND ENERGY PROCUREMENT ; AND 29
564518
565- [(g)] (H) Nothing in this section may be construed to prevent the procurement of
566-new offshore wind energy generation in accordance with the current or any future
567-solicitation schedule.
519+ (E) (1) IN ADDITION TO THE SO LICITATION AND PROCUREMENT ISSU ED 30
520+UNDER SUBSECTION (D) OF THIS SECTION, THE STATE: 31
521+ 12 HOUSE BILL 1296
568522
569- SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect June
570-1, 2024.
571523
572-Approved by the Governor, May 9, 2024.
524+ (I) SHALL ISSUE A DRAFT SOLICITATION FOR PRO CUREMENT 1
525+OF OFFSHORE WIND ENE RGY FOR PUBLIC COMME NT AND REVIEW ON OR BEFORE 2
526+SEPTEMBER 1, 2025; AND 3
527+
528+ 2. (II) SHALL ISSUE A PROCUR EMENT FOR OFFSHORE WIND 4
529+ENERGY ON OR BEFORE DECEMBER 31, 2025. 5
530+
531+ (II) (2) SUBJECT TO SUBPARAGRAPH (III) OF THIS 6
532+PARAGRAPH PARAGRAPH (3) OF THIS SUBSECTION A ND IN ADDITION TO AN Y 7
533+CONTRACT ENTERED INT O UNDER SUBSECTION (D) OF THIS SECTION, ON OR BEFORE 8
534+MARCH 31, 2027, THE STATE MAY ENTER INTO A CONTRACT OR CONTRA CTS FOR 9
535+THE PROCUREMENT ON OR BEFORE MARCH 31, 2027 ISSUED UNDER PARAGRA PH 10
536+(1) OF THIS SUBSECTION . 11
537+
538+ (III) (3) THE STATE MAY MODIFY THE DATE ESTABLISHED IN 12
539+SUBPARAGRAPH (II) OF THIS PARAGRAPH PARAGRAPH (2) OF THIS SUBSECTION IF 13
540+AN UNFORESEEN CIRCUM STANCE ADVERSELY AFF ECTS THE PROCUREMENT 14
541+SUBMISSION PROCESS . 15
542+
543+ (F) THE STATE SHALL INCORPORA TE IN THE OFFSHORE W IND ENERGY 16
544+PROCUREMENT CONTRACT TERMS TO FACILITATE LOW–COST PROJECT 17
545+DEVELOPMENT AND TR ADITIONAL PROJECT FI NANCING TERMS , INCLUDING: 18
546+
547+ (1) TERMS THAT WAIVE THE AUTOMATIC TERMINATIO N CLAUSE 19
548+REQUIRED UNDER § 13–217 OF THE STATE FINANCE AND PROCUREMENT ARTICLE; 20
549+
550+ (2) TERMS THAT ESTABLISH REMEDIES TO REIMBURS E COSTS 21
551+INCURRED BY THE CONT RACTOR DIRECTLY ATTRIBUTABL E TO THE FAILURE OF THE 22
552+STATE TO APPROPRIATE FUNDS FOR THE CONTRA CT; AND 23
553+
554+ (3) ANY OTHER APPROPRIAT E MECHANISMS TO ENSU RE THAT 24
555+OFFSHORE WIND ENERGY PROJECTS THAT MEET T HE TERMS OF THE CONT RACT WILL 25
556+HAVE CERTAINTY OF PA YMENT THROUGH TH E DURATION OF THE CO NTRACT. 26
557+
558+ (G) (1) Within 90 days after the operational commencement date of the power 27
559+purchase agreement, any contractor providing operations and maintenance services under 28
560+an agreement with the Department of General Services shall submit to the Department 29
561+attestation that the contractor has entered into a labor peace agreement with each labor 30
562+organization that is actively engaged in representing or attempting to represent employees 31
563+performing operations and maintenance work on the projects that: 32
564+
565+ (i) prohibits strikes, lockouts, or any other economic interference with 33
566+the contracted project; 34
567+ HOUSE BILL 1296 13
568+
569+
570+ (ii) describes the class or classes of covered employees to whom the 1
571+labor peace agreement applies; 2
572+
573+ (iii) describes any class or classes of employees not currently 3
574+represented by a labor organization; 4
575+
576+ (iv) describes the classes of covered employees for which labor peace 5
577+agreement negotiations have not yet concluded; and 6
578+
579+ (v) for classes of employees that are not covered by a labor peace 7
580+agreement, provides an attestation that no labor organization has sought to negotiate such 8
581+an agreement. 9
582+
583+ (2) A labor peace agreement required under paragraph (1) of this subsection 10
584+shall be: 11
585+
586+ (i) valid and enforceable under 29 U.S.C. § 158; and 12
587+
588+ (ii) maintained as an ongoing material condition of any continuation 13
589+of payments under any agreement required by this subsection. 14
590+
591+ [(g)] (H) Nothing in this section may be construed to prevent the procurement of 15
592+new offshore wind energy generation in accordance with the current or any future 16
593+solicitation schedule. 17
594+
595+ SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect June 18
596+1, 2024. 19
597+
598+
599+
600+Approved:
601+________________________________________________________________________________
602+ Governor.
603+________________________________________________________________________________
604+ Speaker of the House of Delegates.
605+________________________________________________________________________________
606+ President of the Senate.