Maryland 2024 Regular Session

Maryland House Bill HB1296 Latest Draft

Bill / Chaptered Version Filed 05/15/2024

                             	WES MOORE, Governor 	Ch. 431 
 
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Chapter 431 
(House Bill 1296) 
 
AN ACT concerning 
 
Electricity – Offshore Wind Projects – Alterations 
 
FOR the purpose of requiring the Public Service Commission to open a certain proceeding 
to evaluate certain offshore wind projects; authorizing certain offshore wind projects 
to submit certain revised plans for project schedules, sizes, or pricing, including 
offshore wind renewable energy credit pricing and, under certain circumstances, to 
seek approval from the Commission to increase the maximum amount of offshore 
wind renewable energy credits sold under a certain order, subject to certain 
limitations; requiring the Commission to approve, conditionally approve, or deny 
certain applications within a certain period of time; authorizing the Maryland 
Energy Administration to have access to certain confidential information under 
certain circumstances; requiring the Commission to develop and report to the 
General Assembly on a certain plan; requiring the Commission to issue certain 
procurement solicitations and a certain procurement on or before a certain date; 
requiring a certain procurement contract to include certain terms; altering the 
Department of General Services’ requirements and processes for the procurement of 
offshore wind energy; and generally relating to offshore wind projects. 
 
BY repealing and reenacting, without amendments, 
 Article – Public Utilities 
Section 7–701(a), (b), (f), (g), (k), (p), and (p–1) and, and 7–704.1(a), (c)(6)(ii), (g), (h), 
and (i), and 7–704.4(d) 
 Annotated Code of Maryland 
 (2020 Replacement Volume and 2023 Supplement) 
 
BY adding to 
 Article – Public Utilities 
Section 7–704.1(l) and (m) 
 Annotated Code of Maryland 
 (2020 Replacement Volume and 2023 Supplement) 
 
BY repealing and reenacting, with amendments, 
 Article – Public Utilities 
 Section 7–704.4(b)(1) and (e) 7–704.4 
 Annotated Code of Maryland 
 (2020 Replacement Volume and 2023 Supplement)  
 
 SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 
That the Laws of Maryland read as follows: 
 
Article – Public Utilities  Ch. 431 	2024 LAWS OF MARYLAND  
 
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7–701. 
 
 (a) In this subtitle the following words have the meanings indicated. 
 
 (b) “Administration” means the Maryland Energy Administration. 
 
 (f) “Offshore wind energy” means energy generated by a qualified offshore wind 
project. 
 
 (g) “Offshore wind renewable energy credit” or “OREC” means a renewable 
energy credit equal to the generation attributes of 1 megawatt–hour of electricity that is 
derived from offshore wind energy. 
 
 (k) “Qualified offshore wind project” means a wind turbine electricity generation 
facility, including the associated transmission–related interconnection facilities and 
equipment, that: 
 
 (1) is located: 
 
 (i) on the outer continental shelf of the Atlantic Ocean in an area 
that the United States Department of the Interior designates for leasing; and 
 
 (ii) more than 10 miles off the coast of the State for a project selected 
under § 7–704.4 of this subtitle or approved under § 7–704.1 of this subtitle after June 1, 
2023; and 
 
 (2) interconnects to the PJM Interconnection grid: 
 
 (i) at a point located on the Delmarva Peninsula; or 
 
 (ii) through an offshore wind transmission project selected under § 
7–704.3 of this subtitle. 
 
 (p) “Round 1 offshore wind project” means a qualified offshore wind project that: 
 
 (1) is between 10 and 30 miles off the coast of the State; and 
 
 (2) the Commission approved under § 7–704.1 of this subtitle before July 
1, 2017. 
 
 (p–1) “Round 2 offshore wind project” means a qualified offshore wind project that: 
 
 (1) is not less than 10 miles off the coast of the State; and 
   	WES MOORE, Governor 	Ch. 431 
 
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 (2) the Commission approves under § 7–704.1 of this subtitle on or after 
July 1, 2017. 
 
7–704.1. 
 
 (a) (1) The General Assembly finds and declares that: 
 
 (i) the State has a goal of reaching 8,500 megawatts of offshore wind 
energy capacity by 2031, including Round 1 offshore wind projects, Round 2 offshore wind 
projects, and any other procurement efforts; 
 
 (ii) the General Assembly anticipates the issuance of sufficient wind 
energy leases in the central Atlantic region to satisfy the goal stated in item (i) of this 
paragraph; 
 
 (iii) the development of offshore wind energy is important to the 
economic well–being of the State and the nation; 
 
 (iv) offshore wind can provide clean energy at the scale needed to 
help achieve the State’s economy–wide net–zero greenhouse gas emissions reduction 
targets established in Chapter 38 of the Acts of the General Assembly of 2022; 
 
 (v) it is in the public interest of the State to facilitate the 
construction of at least 1,200 megawatts of Round 2 offshore wind projects in order to: 
 
 1. position the State to take advantage of the economic 
development benefits of the emerging offshore wind industry; 
 
 2. promote the development of renewable energy sources 
that increase the nation’s independence from foreign sources of fossil fuels; 
 
 3. reduce the adverse environmental and health impacts of 
traditional fossil fuel energy sources; and 
 
 4. provide a long–term hedge against volatile prices of fossil 
fuels; and 
 
 (vi) it is in the public interest of the State to maximize the 
opportunities for obtaining and using federal funds for offshore wind and related 
transmission projects through the inclusion of specified labor standards and goals, domestic 
content requirements, and other provisions to align State law with provisions of the federal 
Infrastructure Investment and Jobs Act of 2021 and the federal Inflation Reduction Act of 
2022. 
  Ch. 431 	2024 LAWS OF MARYLAND  
 
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 (2) After the effective date of Commission regulations implementing this 
section and § 7–704.2 of this subtitle, and before June 30, 2017, a person may submit an 
application to the Commission for approval of a proposed Round 1 offshore wind project. 
 
 (3) (i) On receipt of the application for approval of a Round 1 offshore 
wind project, the Commission shall: 
 
 1. open an application period when other interested persons 
may submit applications for approval of Round 1 offshore wind projects; and 
 
 2. provide notice that the Commission is accepting 
applications for approval of Round 1 offshore wind projects. 
 
 (ii) The Commission shall set the closing date for the application 
period to be no sooner than 90 days after the notice provided under subparagraph (i) of this 
paragraph. 
 
 (4) The Commission shall provide additional application periods 
beginning, respectively: 
 
 (i) January 1, 2020, for consideration of Round 2 offshore wind 
projects to begin creating ORECs not later than 2026; 
 
 (ii) January 1, 2021, for consideration of Round 2 offshore wind 
projects to begin creating ORECs not later than 2028; and 
 
 (iii) January 1, 2022, for consideration of Round 2 offshore wind 
projects to begin creating ORECs not later than 2030. 
 
 (5) In its discretion, the Commission may provide for additional application 
periods that meet the requirements of this section. 
 
 (c) An application shall include: 
 
 (6) a commitment to: 
 
 (ii) deposit at least $6,000,000, in the manner required under 
subsection (h) of this section, into the Maryland Offshore Wind Business Development 
Fund established under § 9–20C–03 of the State Government Article; 
 
 (g) (1) An order the Commission issues approving a proposed offshore wind 
project shall: 
 
 (i) specify the OREC price schedule, which may not authorize an 
OREC price greater than, for a Round 1 offshore wind project, $190 per megawatt–hour in 
2012 dollars;   	WES MOORE, Governor 	Ch. 431 
 
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 (ii) specify the duration of the OREC pricing schedule, not to exceed 
20 years; 
 
 (iii) specify the number of ORECs the offshore wind project may sell 
each year; 
 
 (iv) provide that: 
 
 1. a payment may not be made for an OREC until electricity 
supply is generated by the offshore wind project; and 
 
 2. ratepayers, purchasers of ORECs, and the State shall be 
held harmless for any cost overruns associated with the offshore wind project; and 
 
 (v) require that any debt instrument issued in connection with a 
qualified offshore wind project include language specifying that the debt instrument does 
not establish a debt, obligation, or liability of the State. 
 
 (2) An order approving a proposed offshore wind project vests the owner of 
the qualified offshore wind project with the right to receive payments for ORECs according 
to the terms in the order. 
 
 (3) On or before March 1 each year, the Commission shall report to the 
Governor and, in accordance with § 2–1257 of the State Government Article, to the Senate 
Committee on Education, Energy, and the Environment and the House Economic Matters 
Committee on: 
 
 (i) compliance by applicants with the minority business enterprise 
participation goals under subsection (e)(4) of this section; and 
 
 (ii) with respect to the community benefit agreement under 
subsection (f)(1) of this section: 
 
 1. the availability and use of opportunities for local 
businesses and small, minority, women–owned, and veteran–owned businesses; 
 
 2. the success of efforts to promote career training 
opportunities in the manufacturing, maintenance, and construction industries for local 
residents, veterans, women, and minorities; and 
 
 3. compliance with the minority workforce goal under 
subsection (f)(1)(i)5 of this section. 
  Ch. 431 	2024 LAWS OF MARYLAND  
 
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 (h) For Round 2 offshore wind project applications, the Commission shall approve 
OREC orders representing a minimum of 400 megawatts of nameplate capacity proposed 
during each application period unless: 
 
 (1) not enough Round 2 offshore wind project applications are submitted to 
meet the net benefit test under subsection (c)(3) of this section; or 
 
 (2) the cumulative net ratepayer impact exceeds the maximums provided 
in subsection (f)(1)(ii)2 of this section. 
 
 (i) (1) Within 60 days after the Commission approves the application of a 
proposed offshore wind project, the qualified offshore wind project shall deposit $2,000,000 
into the Maryland Offshore Wind Business Development Fund established under § 
9–20C–03 of the State Government Article. 
 
 (2) Within 1 year after the initial deposit under paragraph (1) of this 
subsection, the qualified offshore wind project shall deposit an additional $2,000,000 into 
the Maryland Offshore Wind Business Development Fund. 
 
 (3) Within 2 years after the initial deposit under paragraph (1) of this 
subsection, the qualified offshore wind project shall deposit an additional $2,000,000 into 
the Maryland Offshore Wind Business Development Fund. 
 
 (L) (1) IN THIS SUBSECTION , “REVISED ROUND 2 OFFSHORE WIND 
PROJECT” MEANS A ROUND 2 OFFSHORE WIND PROJECT THAT HAS FILED AN 
APPLICATION WITH THE COMMISSION FOR REVISE D PROJECT SCHEDULES , SIZES, 
OR PRICING, INCLUDING OREC PRICING, UNDER THIS SUBSECTIO N. 
 
 (2) THIS SUBSECTION APPLI ES TO ROUND 1 OFFSHORE WIND 
PROJECTS AND ROUND 2 OFFSHORE WIND PRO JECTS THAT: 
 
 (I) ARE TO BE LOCATED IN A WIND ENERGY AREA A UTHORIZED 
BY THE BUREAU OF OCEAN ENERGY MANAGEMENT ; AND 
 
 (II) POSSESS ORECS, OR ARE SUBJECT TO A COMMISSION 
ORDER APPROVING AN OREC PRICE SCHEDULE , AS OF JUNE 1, 2024. 
 
 (3) (I) ON JUNE 1, 2024, THE COMMISSION SHALL OPEN A 
REVISED ROUND 2 OFFSHORE WIND PROJEC T PROCEEDING THAT IS LIMITED TO 
EVALUATING REVISED P ROJECT SCHEDULES , SIZES, OR PRICING, INCLUDING 
OREC PRICING, FOR A PREVIOUSLY APP ROVED ROUND 2 OFFSHORE WIND 
PROJECT. 
   	WES MOORE, Governor 	Ch. 431 
 
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 (II) ANY PREVIOUSLY APPROVED ROUND 2 OFFSHORE WIND 
PROJECT MAY SUBMIT A REVISED PLAN FOR THE PROJECT BY FILING AN 
APPLICATION WITH THE COMMISSION. 
 
 (III) AN APPLICATION FOR A REVISED ROUND 2 OFFSHORE WIND 
PROJECT SHALL BE LIM ITED TO ADDRESSING R EVISED PROJECT SCHEDULES, SIZES, 
OR PRICING, INCLUDING OREC PRICING. 
 
 (IV) 1. ON RECEIPT OF AN APPL ICATION FOR APPROVAL OF 
A REVISED ROUND 2 OFFSHORE WIND PROJEC T, THE COMMISSION SHALL COND UCT 
AN EXPEDITED REVIEW OF THE APPLICATION . 
 
 2. UNLESS EXTENDED BY MU TUAL CONSENT OF THE 
PARTIES, THE COMMISSION SHALL APPR OVE, CONDITIONALLY APPROV E, OR DENY 
AN APPLICATION WITHI N 90 DAYS AFTER THE APPLI CATION IS FILED AND FOUND BY 
THE COMMISSION TO BE ADMI NISTRATIVELY COMPLET E. 
 
 (V) 1. EXCEPT AS PROVIDED IN SUBSUBPARAGRAPHS 2 AND 
3 OF THIS SUBPARAGRAPH , AN APPLICATION FOR A REVISED ROUND 2 OFFSHORE 
WIND PROJECT SHALL B E SUBJECT TO ALL CRI TERIA SET FORTH IN T HIS SECTION 
FOR ROUND 2 OFFSHORE WIND PROJEC TS. 
 
 2. AN APPLICATION FOR A REVISED ROUND 2 
OFFSHORE WIND PROJEC T IS NOT SUBJECT TO THE RE QUIREMENTS OF 
SUBSECTIONS (C)(6)(II) AND (I) OF THIS SECTION. 
 
 3. IF IN A REVISED ROUND 2 OFFSHORE WIND PROJEC T 
PROCEEDING THE COMMISSION REVIEWS MU LTIPLE REASONABLE PR OPOSALS 
MEETING THE REQUIREM ENTS OF THIS SECTION FOR ROUND 2 OFFSHORE WIND 
PROJECTS, THE COMMISSION SHALL ISSU E ORDERS APPROVING T HE REVISED 
ROUND 2 OFFSHORE WIND PROJEC TS NECESSARY TO FACI LITATE AS MUCH ENERG Y 
CAPACITY AS IS CONSI STENT WITH THE ROUND 2 OFFSHORE WIND PROJEC T 
RATEPAYER PROTECTION S UNDER THIS SECTION , INCLUDING AT LEAST 800 
MEGAWATTS OF CAPACIT Y FROM REVISED ROUND 2 OFFSHORE WIND PROJEC TS, IF 
PRACTICABLE , EVEN IF THE REVISED ROUND 2 OFFSHORE WIND PROJEC T 
APPLICATIONS MAY RES ULT IN LOWER TOTAL E NERGY CAPACITY AWARD ED THAN 
WAS PREVIOUSLY AWARD ED TO THE REVI SED ROUND 2 OFFSHORE WIND PROJEC T 
IN ITS PREVIOUSLY AP PROVED ROUND 2 OFFSHORE WIND PROJEC T APPLICATION. 
 
 4. WHEN EVALUATING AN AP PLICATION FOR A REVI SED 
ROUND 2 OFFSHORE WIND PROJEC T, THE COMMISSION SHALL , TO THE EXTENT 
PRACTICABLE , EXTEND PRIOR OR EXI STING PROCEEDINGS FO R APPLICANTS THAT 
HAVE A PREVIOUSLY AP PROVED ORDER FOR A ROUND 2 OFFSHORE WIND PROJEC T.  Ch. 431 	2024 LAWS OF MARYLAND  
 
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 (VI) THE COMMISSION MAY NOT AP PROVE AN APPLICATION FOR 
A REVISED ROUND 2 OFFSHORE WIND PROJEC T UNLESS THE APPLICA TION 
INCLUDES COMMITMENTS FOR IN–STATE EXPENDITURES AN D INVESTMENTS IN A 
LOCAL SUPPLY CHAIN T HAT THE COMMISSION DETERMINES ARE REASONABLY 
RELATED TO THE SIZE AND REQUIREMENTS OF THE PROJECT. 
 
 (VII) THE ADMINISTRATION SHALL HAVE ACCESS TO ALL 
CONFIDENTIAL INFORMA TION PRODUCED BY ANY PARTY RELATING TO A R EVISED 
ROUND 2 OFFSHORE WIND PROJEC T PROCEEDING , SUBJECT TO AN AGREEM ENT TO 
PROTECT THE CONFIDEN TIALITY OF THE INFOR MATION.  
 
 (4) (I) IN ORDER TO MAXIMIZE THE AMOUNT OF RENEWA BLE 
ENERGY GENERATED BY A ROUND 1 OFFSHORE WIND PROJEC T, ANY ROUND 1 
OFFSHORE WIND PROJEC T MAY SEEK APPROVAL FROM THE COMMISSION TO AMEND 
ITS PREVIOUSLY APPRO VED ROUND 1 OFFSHORE WIND PROJEC T ORDER TO: 
 
 1. INCREASE THE MAXIMUM AMOUNT OF ORECS SOLD 
UNDER THE PREVIOUS O RDER, CONSISTENT WITH THE ROUND 1 OFFSHORE WIND 
PROJECT RATEPAYER PR OTECTIONS UNDER THIS SECTION; AND 
 
 2. MODIFY ITS PROJECT S CHEDULE. 
 
 (II) THE COMMISSION MAY APPROV E A REQUEST FOR AN 
INCREASED AMOUNT OF ORECS SOLD UNDER A PREVI OUSLY APPROVED ROUND 1 
OFFSHORE WIND PROJEC T ORDER ON A SHOWING THAT: 
 
 1. THE UNIT PRICING OF THE ADDITIONAL ORECS DOES 
NOT EXCEED THE PRICI NG UNDER THE PREVIOU SLY APPROVED ROUND 1 
OFFSHORE WIND PROJEC T ORDER; AND 
 
 2. THE ROUND 1 OFFSHORE WIND PROJEC T IS IN 
COMPLIANCE WITH THE RATEPAYER PROTECTION PROVISIONS REQUIRED FOR 
ROUND 1 OFFSHORE WIND PROJEC TS, TAKING INTO CONSIDER ATION CHANGES IN 
ECONOMIC CONDITIONS SINCE THE ORIGINAL ROUND 1 OFFSHORE WIND PROJEC T 
AWARDS. 
 
 (M) (1) THE COMMISSION, WITH THE ASSISTANCE 	OF THE 
ADMINISTRATION , THE DEPARTMENT OF THE ENVIRONMENT, THE DEPARTMENT 
OF NATURAL RESOURCES THE DEPARTMENT OF GENERAL SERVICES, AND OTHER 
INTERESTED STATE UNITS SHALL DEV ELOP A PLAN FOR ACHI EVING A TOTAL OF 
8,500 MEGAWATTS OF OFFSHOR E WIND ENERGY CAPACI TY BY 2031. 
   	WES MOORE, Governor 	Ch. 431 
 
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 (2) THE PLAN: 
 
 (I) SHALL INCLUDE A SCHEDULE OF OFFSHORE WIND ENERGY 
PROCUREMENTS AND PRO POSED AMOUNTS OF OFF SHORE WIND ENERGY FO R 
PROCUREMENT THROUGH 2031; AND 
 
 (II) MAY INCLUDE RECOMMEN	DATIONS ON 
MULTIJURISDICTIONAL OFFSHORE WIND ENERGY PROCUREMENTS AND ANY 
ADDITIONAL OFFSHORE WIND ENERGY PROCUREMENT RECO MMENDATIONS . 
 
 (3) ON OR BEFORE JANUARY 1, 2025, THE COMMISSION SHALL 
SUBMIT A REPORT ON T HE PLAN TO THE GENERAL ASSEMBLY, IN ACCORDANCE 
WITH § 2–1257 OF THE STATE GOVERNMENT ARTICLE. 
 
7–704.4. 
 
 (a) (1) In this section the following words have the meanings indicated. 
 
 (2) “Community benefit agreement” has the meaning stated in § 7–704.1(e) 
of this subtitle. 
 
 (3) “Social cost of greenhouse gases” means the most recent social cost of 
greenhouse gases adopted by the U.S. Environmental Protection Agency.  
 
 (b) (1) The Department of General Services, in consultation with the Public 
Service Commission, shall issue a competitive sealed procurement solicitation and may 
enter into at least one contract for a power purchase agreement to procure [up to 5,000,000 
megawatt–hours annually of] offshore wind energy and associated renewable energy 
credits from one or more qualified offshore wind projects. 
 
 (2) Each agreement entered into under paragraph (1) of this subsection 
shall have a term of not less than 20 years. 
 
 (3) When issuing the invitation for bids under this subsection, the 
Department shall take into consideration: 
 
 (i) the social cost of greenhouse gas emissions; 
 
 (ii) the State’s climate commitments; and 
 
 (iii) the State’s commitments under § 7–704.1(a) of this subtitle. 
 
 (4) The evaluation criteria for bids shall include: 
  Ch. 431 	2024 LAWS OF MARYLAND  
 
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 (i) comparing the social cost of greenhouse gas emissions for offshore 
wind with the social cost of greenhouse gas emissions for nonrenewable power purchased 
from wholesale electric markets administered by PJM Interconnection; and 
 
 (ii) the extent to which an applicant’s proposal provides for financial 
and technical assistance to support monitoring and mitigation of wildlife and habitat 
impacts associated with the proposed offshore wind project. 
 
 (5) Each agreement entered into under paragraph (1) of this subsection 
shall include: 
 
 (i) a community benefit agreement and domestic content preferences; 
and 
 
 (ii) a description of: 
 
 1. initial plans for mitigating the impacts of the construction 
and operation of the proposed offshore wind project on fisheries and the environment; and 
 
 2. the extent to which an applicant will provide for financial 
and technical assistance to support the monitoring and mitigation of wildlife and habitat 
impacts associated with the project. 
 
 (c) (1) The Department of General Services shall identify the amount of energy 
necessary to meet the State’s energy needs. 
 
 (2) (i) The State shall use the energy procured under subsection (b) of 
this section to meet the State’s energy needs and retire the associated renewable energy 
credits to meet its obligations under the renewable energy portfolio standard and Chapter 
38 of the Acts of the General Assembly of 2022. 
 
 (ii) The State shall be exempted from the renewable energy portfolio 
standard requirements under § 7–703 of this subtitle if the Department of General Services 
procures 100% of the State’s energy needs from the power purchase agreement required 
under subsection (b) of this section. 
 
 (3) The State shall offer for sale any energy or renewable energy credits 
remaining after the requirements under paragraph (2) of this subsection have been met on 
the competitive wholesale power market operated by PJM Interconnection, through bilateral 
sales to credit–worthy counterparties, or into renewable energy credit markets.  
 
 (d) (1) The State shall: 
 
 (1) (I) ISSUE A DRAFT SOLICI TATION FOR PROCUREME NT OF 
OFFSHORE WIND ENERGY FOR PUBLIC COMMENT A ND REVIEW ON OR BEFORE JUNE 
1, 2024;   	WES MOORE, Governor 	Ch. 431 
 
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 (II) issue a procurement for offshore wind energy on or before July 
31, 2024; 
 
 (2) (III) provide a procurement submission process window of not less 
than 180 days; and 
 
 (3) (IV) award contracts in a timely manner. 
 
 (e) (1) (2) (I) Subject to SUBPARAGRAPH (II) OF THIS paragraph [(2) 
of this subsection], ON OR BEFORE SEPTEMBER 1, 2025, the State may enter into a 
contract or contracts for the procurement on or before September 1, 2025 ISSUED UNDER 
PARAGRAPH (1) OF THIS SUBSECTION . 
 
 [(2)] (II) The State may modify the date established in SUBPARAGRAPH 
(I) OF THIS paragraph [(1) of this subsection] if an unforeseen circumstance adversely 
affects the procurement submission process. 
 
 (2) (I) IF NO QUALIFIED OFFSH ORE WIND PROJECTS ARE 
SUBMITTED DURING THE PROCUREMENT SUBMISSI ON PROCESS UNDER 
PARAGRAPH (1) OF THIS SUBSECTION , THE STATE: 
 
 1. MAY EVALUATE AND REV ISE THE CONDITIONS O F THE 
OFFSHORE WIND ENERGY PROCUREMENT ; AND 
 
 (E) (1) IN ADDITION TO THE SO LICITATION AND PROCUREMENT ISSUED 
UNDER SUBSECTION (D) OF THIS SECTION, THE STATE: 
 
 (I) SHALL ISSUE A DRAFT SOLICITATION FOR PRO CUREMENT 
OF OFFSHORE WIND ENE RGY FOR PUBLIC COMME NT AND REVIEW ON OR BEFORE 
SEPTEMBER 1, 2025; AND  
 
 2. (II) SHALL ISSUE A PROCUR EMENT FOR OFFSHORE WIND 
ENERGY ON OR BEFORE DECEMBER 31, 2025. 
 
 (II) (2) SUBJECT TO SUBPARAGRAPH (III) OF THIS 
PARAGRAPH PARAGRAPH (3) OF THIS SUBSECTION A ND IN ADDITION TO AN Y 
CONTRACT ENTERED INT O UNDER SUBSECTION (D) OF THIS SECTION, ON OR BEFORE 
MARCH 31, 2027, THE STATE MAY ENTER INTO A CONTRACT OR CONTRA CTS FOR 
THE PROCUREMENT ON OR BEFORE MARCH 31, 2027 ISSUED UNDER PARAGRA PH 
(1) OF THIS SUBSECTION . 
 
 (III) (3) THE STATE MAY MODIFY THE DATE ESTABLISHED IN 
SUBPARAGRAPH (II) OF THIS PARAGRAPH PARAGRAPH (2) OF THIS SUBSECTION IF  Ch. 431 	2024 LAWS OF MARYLAND  
 
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AN UNFORESEEN CIRCUM STANCE ADVERSELY AFF ECTS THE PROCUREMENT 
SUBMISSION PROCESS .  
 
 (F) THE STATE SHALL INCORPORA TE IN THE OFFSHORE W IND ENERGY 
PROCUREMENT CONTRACT TERMS TO FACILITATE LOW–COST PROJECT 
DEVELOPMENT AND TRAD ITIONAL PROJECT FINANCING TE RMS, INCLUDING: 
 
 (1) TERMS THAT WAIVE THE AUTOMATIC TERMINATIO N CLAUSE 
REQUIRED UNDER § 13–217 OF THE STATE FINANCE AND PROCUREMENT ARTICLE;  
 
 (2) TERMS THAT ESTABLISH REMEDIES TO REIMBURS E COSTS 
INCURRED BY THE CONT RACTOR DIRECTLY ATTRIBUTABLE TO THE FAILURE OF THE 
STATE TO APPROPRIATE FUNDS FOR THE CONTRA CT; AND 
 
 (3) ANY OTHER APPROPRIAT E MECHANISMS TO ENSU RE THAT 
OFFSHORE WIND ENERGY PROJECTS THAT MEET T HE TERMS OF THE CONT RACT WILL 
HAVE CERTAINTY OF PA YMENT THROUGH THE DU RATION OF THE CONTRACT .  
 
 (G) (1) Within 90 days after the operational commencement date of the power 
purchase agreement, any contractor providing operations and maintenance services under 
an agreement with the Department of General Services shall submit to the Department 
attestation that the contractor has entered into a labor peace agreement with each labor 
organization that is actively engaged in representing or attempting to represent employees 
performing operations and maintenance work on the projects that: 
 
 (i) prohibits strikes, lockouts, or any other economic interference with 
the contracted project; 
 
 (ii) describes the class or classes of covered employees to whom the 
labor peace agreement applies; 
 
 (iii) describes any class or classes of employees not currently 
represented by a labor organization; 
 
 (iv) describes the classes of covered employees for which labor peace 
agreement negotiations have not yet concluded; and 
 
 (v) for classes of employees that are not covered by a labor peace 
agreement, provides an attestation that no labor organization has sought to negotiate such 
an agreement. 
 
 (2) A labor peace agreement required under paragraph (1) of this subsection 
shall be: 
 
 (i) valid and enforceable under 29 U.S.C. § 158; and   	WES MOORE, Governor 	Ch. 431 
 
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 (ii) maintained as an ongoing material condition of any continuation 
of payments under any agreement required by this subsection. 
 
 [(g)] (H) Nothing in this section may be construed to prevent the procurement of 
new offshore wind energy generation in accordance with the current or any future 
solicitation schedule.  
 
 SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect June 
1, 2024.  
 
Approved by the Governor, May 9, 2024.