Maryland 2024 Regular Session

Maryland House Bill HB258 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1
2	2
3	3	EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
4	4	[Brackets] indicate matter deleted from existing law.
5	5	hb0258
6	6
7	7	HOUSE BILL 258
8	8	C5, M5 4lr1429
9	9
10	10	By: Delegate Qi
11	11	Introduced and read first time: January 12, 2024
12	12	Assigned to: Economic Matters
13	13
14	14	A BILL ENTITLED
15	15
16	16	AN ACT concerning 1
17	17
18	18	Renewable Energy – Customer–Sited Solar Program 2
19	19
20	20	FOR the purpose of establishing the Customer–Sited Solar Program within the Maryland 3
21	21	Energy Administration for the purpose of providing grants to certain eligible 4
22	22	customer–generators for certain solar energy generating systems; authorizing a 5
23	23	third party to apply for a grant on behalf of an eligible customer–generator under 6
24	24	certain circumstances; requiring the Administration to publish certain mapping 7
25	25	tools; providing for the funding of Program grants from certain compliance fee and 8
26	26	allowance proceeds in the Strategic Energy Investment Fund; and generally relating 9
27	27	to the Customer–Sited Solar Program. 10
28	28
29	29	BY adding to 11
30	30	Article – State Government 12
31	31	Section 9–2016 and 9–20B–05(f)(13), (g–1), and (g–2) 13
32	32	Annotated Code of Maryland 14
33	33	(2021 Replacement Volume and 2023 Supplement) 15
34	34
35	35	BY repealing and reenacting, with amendments, 16
36	36	Article – State Government 17
37	37	Section 9–20B–05(f)(12) and (13) and (i) 18
38	38	Annotated Code of Maryland 19
39	39	(2021 Replacement Volume and 2023 Supplement) 20
40	40
41	41	BY repealing and reenacting, without amendments, 21
42	42	Article – State Government 22
43	43	Section 9–20B–05(g) 23
44	44	Annotated Code of Maryland 24
45	45	(2021 Replacement Volume and 2023 Supplement) 25
46	46
47	47	SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 26
48	48	That the Laws of Maryland read as follows: 27 2 HOUSE BILL 258
49	49
50	50
51	51
52	52	Article – State Government 1
53	53
54	54	9–2016. 2
55	55
56	56	(A) (1) IN THIS SECTION THE F OLLOWING WORDS HAVE THE MEANINGS 3
57	57	INDICATED. 4
58	58
59	59	(2) “ELIGIBLE CUSTOMER –GENERATOR ” HAS THE MEANING STAT ED 5
60	60	IN § 7–306 OF THE PUBLIC UTILITIES ARTICLE. 6
61	61
62	62	(3) “LOW TO MODERATE INCOME” MEANS A HOUSEHOLD WITH AN 7
63	63	ANNUAL HOUSEHOLD INC OME AT OR BELOW 80% OF THE AVERAGE MEDIA N INCOME 8
64	64	FOR THE STATE. 9
65	65
66	66	(4) “LOW– TO MODERATE–INCOME COMMUNITY ” MEANS ANY CENSUS 10
67	67	TRACT IN WHICH , ACCORDING TO THE MOS T RECENT U.S. CENSUS BUREAU 11
68	68	SURVEY, THE AVERAGE MEDIAN I NCOME IS AT OR BELOW 80% OF THE AVERAGE 12
69	69	MEDIAN INCOME FOR TH E STATE. 13
70	70
71	71	(5) “OVERBURDENED COMMUNIT Y” HAS THE MEANING STAT ED IN § 14
72	72	1–701 OF THE ENVIRONMENT ARTICLE. 15
73	73
74	74	(6) “PROGRAM” MEANS THE CUSTOMER–SITED SOLAR PROGRAM 16
75	75	ESTABLISHED IN THIS SECTION. 17
76	76
77	77	(7) “UNDERSERVED COMMUNITY ” HAS THE MEANING STAT ED IN § 18
78	78	1–701 OF THE ENVIRONMENT ARTICLE. 19
79	79
80	80	(B) THERE IS A CUSTOMER–SITED SOLAR PROGRAM IN THE 20
81	81	ADMINISTRATION . 21
82	82
83	83	(C) THE PURPOSE OF THE PROGRAM IS TO: 22
84	84
85	85	(1) INCREASE DEPLOYMENT OF CUSTOMER –SITED SOLAR ENERGY 23
86	86	GENERATING SYSTEMS; AND 24
87	87
88	88	(2) PROVIDE GRANTS TO EL IGIBLE CUSTOMER –GENERATORS THAT 25
89	89	HAVE INSTALLED SOLAR ENERGY GENERATING SYSTEMS WITH OR WITH OUT ENERGY 26
90	90	STORAGE. 27
91	91
92	92	(D) THE ADMINISTRATION SHALL : 28
93	93	HOUSE BILL 258 3
94	94
95	95
96	96	(1) ON OR BEFORE NOVEMBER 1, 2024, ESTABLISH APPLICATIO N AND 1
97	97	INCOME VERIFICATION PROCEDU RES FOR THE PROGRAM; AND 2
98	98
99	99	(2) AWARD GRANTS FROM TH E PROGRAM. 3
100	100
101	101	(E) THE PROGRAM MAY PROVIDE GRANTS TO ELIGIBLE 4
102	102	CUSTOMER–GENERATOR S AS FOLLOWS: 5
103	103
104	104	(1) AN INCOME–VERIFIED ELIGIBLE CUSTOMER –GENERATOR WITH A 6
105	105	LOW TO MODERATE INCOME IS ELIGIBLE FOR A GR ANT EQUAL TO $750 PER 7
106	106	KILOWATT OF NAMEPLAT E CAPACITY FOR A SOL AR ENERGY GENERATING SYSTEM, 8
107	107	UP TO A MAXIMUM OF $7,500 PER SYSTEM; 9
108	108
109	109	(2) A NON–INCOME–VERIFIED ELIGIBLE CU STOMER–GENERATOR 10
110	110	LOCATED IN A LOW – TO MODERATE–INCOME COMMUNITY , AN OVERBURDENED 11
111	111	COMMUNITY , OR AN UNDERSERVED COMMUNIT Y IS ELIGIBLE FOR A GRANT EQUAL 12
112	112	TO $500 PER KILOWATT OF NAME PLATE CAPACITY FOR A SOLAR ENERGY 13
113	113	GENERATING SYSTEM, UP TO A MAXIMUM OF $5,000 PER SYSTEM; AND 14
114	114
115	115	(3) A NON–INCOME–VERIFIED ELIGIBLE CU STOMER–GENERATOR 15
116	116	LOCATED OUTSIDE A LO W– TO MODERATE–INCOME COMMUNITY , AN 16
117	117	OVERBURDENED COMMUNITY , OR AN UNDERSERVED COMMUNIT Y IS ELIGIBLE FOR 17
118	118	A GRANT EQUAL TO $400 PER KILOWATT OF NAME PLATE CAPACITY FOR A SOLAR 18
119	119	ENERGY GENERATING SYSTEM, UP TO A MAXIMUM OF $4,000 PER SYSTEM. 19
120	120
121	121	(F) GRANTS SHALL BE FUNDED AS FOLLOWS: 20
122	122
123	123	(1) A GRANT AWARDED UNDE R SUBSECTION (E)(1) OR (2) OF THIS 21
124	124	SECTION SHALL BE FUNDED FROM FEES COLLECTED UNDER § 7–705(B)(2)(I)2 OF 22
125	125	THE PUBLIC UTILITIES ARTICLE; AND 23
126	126
127	127	(2) A GRANT AWARDED UNDE R SUBSECTION (E)(3) OF THIS SECTION 24
128	128	SHALL BE FUNDED FROM ALLOWANCES COLL ECTED UNDER § 9–20B–05(G)(3) OF 25
129	129	THIS TITLE AND CREDITED IN ACCO RDANCE WITH § 9–20B–05(G–1) OF THIS TITLE. 26
130	130
131	131	(G) THE ADMINISTRATION SHA LL USE THE INCOME VERIFICATION 27
132	132	PROCESSES UNDER § 7–306.2(F)(1)(IV) OF THE PUBLIC UTILITIES ARTICLE TO 28
133	133	VERIFY INCOME FOR AN ELIGIBLE CUSTOMER –GENERATOR WITH A LOW TO 29
134	134	MODERATE INCOME . 30
135	135
136	136	(H) A THIRD PARTY MAY : 31
137	137	4 HOUSE BILL 258
138	138
139	139
140	140	(1) APPLY FOR A GRANT ON BEHALF OF AN ELIGIBL E 1
141	141	CUSTOMER–GENERATOR WITH PROOF OF CONSENT FROM THE ELIGIBLE 2
142	142	CUSTOMER–GENERATOR ; AND 3
143	143
144	144	(2) BE ASSIGNED A GRANT BY THE ELIGI BLE CUSTOMER –GENERATOR 4
145	145	TO ACT ON BEHALF OF THE ELIGIBLE CUSTOME R–GENERATOR . 5
146	146
147	147	(I) (1) FUNDING USED FOR GRANTS UNDER THIS SECTION SHALL B E 6
148	148	MONITORED THROUGH AN APPLICATION PROCESS MAINTAINED BY THE 7
149	149	ADMINISTRATION AND VI SIBLE ON THE ADMINISTRATION ’S WEBSITE. 8
150	150
151	151	(2) DATA ON THE ADMINISTRATION ’S WEBSITE SHALL: 9
152	152
153	153	(I) INCLUDE THE AMOUNT O F FUNDING AVAILABLE, 10
154	154	RESERVED, AND SPENT FOR THE FI SCAL YEAR; AND 11
155	155
156	156	(II) BE UPDATED WEEKLY . 12
157	157
158	158	(J) THE ADMINISTRATION SHALL PUBLISH MAPPING TOOL S TO ALLOW AN 13
159	159	ELIGIBLE CUSTOMER –GENERATOR TO DETERMI NE WHETHER THE ELIGIBLE 14
160	160	CUSTOMER IS LOCATED WITHIN A LOW – TO MODERATE–INCOME COMMUNITY , AN 15
161	161	OVERBURDENED COMMUNITY , OR AN UNDERSERVED COMMUNIT Y. 16
162	162
163	163	(K) (1) BEGINNING IN FISCAL Y EAR 2028, THE ADMINISTRATION MAY 17
164	164	ADJUST THE GRANT AMO UNTS AVAILABLE UNDER THE PROGRAM TO REFLECT 18
165	165	MARKET CONDITIONS AN D THE PREVAILING PRI CES OF SOLAR ENERGY 19
166	166	GENERATING SYSTEMS. 20
167	167
168	168	(2) IN MAKING AN ADJUSTME NT TO A GRANT AMOUNT UNDER THIS 21
169	169	SECTION, THE ADMINISTRATION SHALL : 22
170	170
171	171	(I) ENSURE CONTINUED GRO WTH AND DEPLOYMENT O F THE 23
172	172	CUSTOMER–SITED INDUSTRY AND M INIMIZE MARKET DISRU PTION; AND 24
173	173
174	174	(II) CONSIDER COMPARABLE PROGRAMS AND INCENTI VES IN 25
175	175	OTHER STATES . 26
176	176
177	177	9–20B–05. 27
178	178
179	179	(f) The Administration shall use the Fund: 28
180	180
181	181	(12) to provide at least $500,000 each year to the Resiliency Hub Grant 29
182	182	Program Fund under § 9–2011 of this title; [and] 30
183	183	HOUSE BILL 258 5
184	184
185	185
186	186	(13) TO PROVIDE GRANTS THROUGH THE CUSTOMER–SITED SOLAR 1
187	187	PROGRAM UNDER § 9–2016 OF THIS TITLE; AND 2
188	188
189	189	[(13)] (14) to pay the expenses of the Program. 3
190	190
191	191	(g) Proceeds received by the Fund from the sale of allowances under § 2–1002(g) 4
192	192	of the Environment Article shall be allocated as follows: 5
193	193
194	194	(1) at least 50% shall be credited to an energy assistance account to be used 6
195	195	for the Electric Universal Service Program and other electricity assistance programs in the 7
196	196	Department of Human Services; 8
197	197
198	198	(2) at least 20% shall be credited to a low and moderate income efficiency 9
199	199	and conservation programs account and to a general efficiency and conservation programs 10
200	200	account for energy efficiency and conservation programs, projects, or activities and demand 11
201	201	response programs, of which at least one–half shall be targeted to the low and moderate 12
202	202	income efficiency and conservation programs account for: 13
203	203
204	204	(i) the low–income residential sector at no cost to the participants 14
205	205	of the programs, projects, or activities; and 15
206	206
207	207	(ii) the moderate–income residential sector; 16
208	208
209	209	(3) at least 20% shall be credited to a renewable and clean energy programs 17
210	210	account for: 18
211	211
212	212	(i) renewable and clean energy programs and initiatives; 19
213	213
214	214	(ii) energy–related public education and outreach; and 20
215	215
216	216	(iii) climate change and resiliency programs; and 21
217	217
218	218	(4) up to 10%, but not more than $7,500,000, shall be credited to an 22
219	219	administrative expense account for costs related to the administration of the Fund, 23
220	220	including the review of electric company plans for achieving electricity savings and demand 24
221	221	reductions that the electric companies are required under law to submit to the 25
222	222	Administration. 26
223	223
224	224	(G–1) (1) BEGINNING IN FISCAL Y EAR 2025, OF THE AMOUNT IN THE 27
225	225	RENEWABLE AND CLEAN ENERGY PROGRAMS ACCO UNT UNDER SUBSECTION (G)(3) 28
226	226	OF THIS SECTION , AT LEAST ONE –HALF SHALL BE CREDIT ED TO THE 29
227	227	CUSTOMER–SITED SOLAR PROGRAM FOR ELIGIBLE CUSTOME R–GENERATORS 30
228	228	THAT ARE NOT ELIGIBLE FOR INCENTIVES UNDER SUB SECTION (G)(3)(I) OF THIS 31
229	229	SECTION. 32
230	230	6 HOUSE BILL 258
231	231
232	232
233	233	(2) PROCEEDS THAT ARE ALL OCATED FOR CREDIT UN DER 1
234	234	PARAGRAPH (1) OF THIS SUBSECTION A ND REMAIN UNUSED IN A GIVEN FISCAL YEAR 2
235	235	SHALL BE CARRIED FOR WARD AS FOLLOWS : 3
236	236
237	237	(I) PROCEEDS ALLOCATED B UT UNUSED FROM A PRE VIOUS 4
238	238	YEAR SHALL BE USED BEFORE PROCEEDS ALLOCATED F OR THE CURRENT FISCAL 5
239	239	YEAR; AND 6
240	240
241	241	(II) THE ADMINISTRATION SHALL REALLOCATE WITHIN TH E 7
242	242	RENEWABLE AND CLEAN ENERGY PROGRAMS ACCO UNT ANY PROCEEDS THA T 8
243	243	REMAIN ALLOCATED BUT UNUSED FOR 3 FISCAL YEARS AFTER COLLECTI ON. 9
244	244
245	245	(G–2) (1) PROCEEDS RECEIVED BY THE FUND FROM COMPLIANCE FEES 10
246	246	UNDER § 7–705(B)(2)(I)2 OF THE PUBLIC UTILITIES ARTICLE SHALL BE ALLO CATED 11
247	247	AS FOLLOWS: 12
248	248
249	249	(I) BEGINNING IN FISCAL YEAR 2025, AT LEAST 60% OF THE 13
250	250	PROCEEDS SHALL SUPPORT THE IN STALLATION OF NEW SO LAR ENERGY 14
251	251	GENERATING SYSTEMS UNDER THE CUSTOMER–SITED SOLAR PROGRAM; 15
252	252
253	253	(II) SUBJECT TO PARAGRAPH (2) OF THIS SUBSECTION , IN THE 16
254	254	ADMINISTRATION ’S DISCRETION, A CERTAIN PERCENTAGE OF PROCEEDS SHALL 17
255	255	PROVIDE TO HOUSEHOLDS WITH L OW TO MODERATE INCOM E, AS DEFINED IN § 18
256	256	9–2016 OF THIS TITLE, GRANTS TO REPAIR , IMPROVE, OR MODERNIZE THE HOUSE 19
257	257	FOR THE INSTALLATION OF A SOLAR ENERGY GENERATING SYSTEM; 20
258	258
259	259	(III) PROCEEDS COLLECTED BUT UNUSED FROM A PREVIOUS 21
260	260	YEAR SHALL BE USED B EFORE PROCEEDS ALLOCATED FOR THE CU RRENT YEAR; AND 22
261	261
262	262	(IV) THE ADMINISTRATION SHALL REALLOCATE TO OTHER 23
263	263	AUTHORIZED USES ANY PROCEEDS THAT ARE NOT USED WITHIN 3 FISCAL YEARS 24
264	264	AFTER COLLECTION . 25
265	265
266	266	(2) A GRANT UNDER PARAGRAP H (1)(II) OF THIS SUBSECTION S HALL 26
267	267	BE DISTRIBUTED AS FO LLOWS: 27
268	268
269	269	(I) A GRANT FOR A ROOF R EPLACEMENT OR A STRU CTURAL 28
270	270	ROOF REPAIR SHALL BE AT LEAST $2 PER SQUARE FOOT BUT MAY NOT EXCEED 29
271	271	$5,000 IN TOTAL; AND 30
272	272
273	273	(II) A GRANT FOR AN ELECT RICAL PANEL UPGRADE MAY NOT 31
274	274	EXCEED $1,500 AND MAY BE APPLIED FOR BEFORE A SOLAR ENERG Y GENERATING 32
275	275	SYSTEM IS INSTALLED . 33 HOUSE BILL 258 7
276	276
277	277
278	278
279	279	(3) (I) AN APPLICANT FOR A GR ANT UNDER THIS SUBSECTION 1
280	280	SHALL INCLUDE IN THE APPLICATION AN EXECU TED CONTRACT TO PURC HASE OR 2
281	281	LEASE A SOLAR ENERGY GENERATING SYSTEM OR AN EXECUTE D POWER PURCHASE 3
282	282	AGREEMENT FOR THE SY STEM. 4
283	283
284	284	(II) THE SOLAR ENERGY GENERATING SYSTEM SHALL BE 5
285	285	INSTALLED WITHIN 180 DAYS AFTER A GRANT U NDER THIS SUBSECTION IS 6
286	286	DISTRIBUTED. 7
287	287
288	288	(i) (1) Except as provided in paragraph (2) of this subsection, compliance fees 8
289	289	paid under § 7–705(b) of the Public Utilities Article may be used only to make loans and 9
290	290	grants to support the creation of new Tier 1 renewable energy sources in the State that are 10
291	291	owned by or directly benefit: 11
292	292
293	293	(i) low– to moderate–income communities located in a census tract 12
294	294	with an average median income at or below 80% of the average median income for the State; 13
295	295	or 14
296	296
297	297	(ii) overburdened or underserved communities, as defined in § 1–701 15
298	298	of the Environment Article. 16
299	299
300	300	(2) Compliance fees paid under § 7–705(b)(2)(i)2 of the Public Utilities 17
301	301	Article shall be accounted for separately within the Fund and may be used only to make 18
302	302	loans and grants to support the creation of new solar energy sources in the State that are 19
303	303	owned by or directly benefit: 20
304	304
305	305	(i) low– to moderate–income communities located in a census tract 21
306	306	with an average median income at or below 80% of the average median income for the State; 22
307	307	[or] 23
308	308
309	309	(ii) overburdened or underserved communities, as defined in § 1–701 24
310	310	of the Environment Article; OR 25
311	311
312	312	(III) HOUSEHOLDS WITH LOW TO MODERATE INCOME, AS 26
313	313	DEFINED IN § 9–2016 OF THIS TITLE. 27
314	314
315	315	SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect July 28
316	316	1, 2024. 29