EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
[Brackets] indicate matter deleted from existing law.
*hb0258*
HOUSE BILL 258
C5, M5 4lr1429
By: Delegate Qi
Introduced and read first time: January 12, 2024
Assigned to: Economic Matters
A BILL ENTITLED
AN ACT concerning 1
Renewable Energy – Customer–Sited Solar Program 2
FOR the purpose of establishing the Customer–Sited Solar Program within the Maryland 3
Energy Administration for the purpose of providing grants to certain eligible 4
customer–generators for certain solar energy generating systems; authorizing a 5
third party to apply for a grant on behalf of an eligible customer–generator under 6
certain circumstances; requiring the Administration to publish certain mapping 7
tools; providing for the funding of Program grants from certain compliance fee and 8
allowance proceeds in the Strategic Energy Investment Fund; and generally relating 9
to the Customer–Sited Solar Program. 10
BY adding to 11
Article – State Government 12
Section 9–2016 and 9–20B–05(f)(13), (g–1), and (g–2) 13
Annotated Code of Maryland 14
(2021 Replacement Volume and 2023 Supplement) 15
BY repealing and reenacting, with amendments, 16
Article – State Government 17
Section 9–20B–05(f)(12) and (13) and (i) 18
Annotated Code of Maryland 19
(2021 Replacement Volume and 2023 Supplement) 20
BY repealing and reenacting, without amendments, 21
Article – State Government 22
Section 9–20B–05(g) 23
Annotated Code of Maryland 24
(2021 Replacement Volume and 2023 Supplement) 25
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 26
That the Laws of Maryland read as follows: 27 2 HOUSE BILL 258
Article – State Government 1
9–2016. 2
(A) (1) IN THIS SECTION THE F OLLOWING WORDS HAVE THE MEANINGS 3
INDICATED. 4
(2) “ELIGIBLE CUSTOMER –GENERATOR ” HAS THE MEANING STAT ED 5
IN § 7–306 OF THE PUBLIC UTILITIES ARTICLE. 6
(3) “LOW TO MODERATE INCOME” MEANS A HOUSEHOLD WITH AN 7
ANNUAL HOUSEHOLD INC OME AT OR BELOW 80% OF THE AVERAGE MEDIA N INCOME 8
FOR THE STATE. 9
(4) “LOW– TO MODERATE–INCOME COMMUNITY ” MEANS ANY CENSUS 10
TRACT IN WHICH , ACCORDING TO THE MOS T RECENT U.S. CENSUS BUREAU 11
SURVEY, THE AVERAGE MEDIAN I NCOME IS AT OR BELOW 80% OF THE AVERAGE 12
MEDIAN INCOME FOR TH E STATE. 13
(5) “OVERBURDENED COMMUNIT Y” HAS THE MEANING STAT ED IN § 14
1–701 OF THE ENVIRONMENT ARTICLE. 15
(6) “PROGRAM” MEANS THE CUSTOMER–SITED SOLAR PROGRAM 16
ESTABLISHED IN THIS SECTION. 17
(7) “UNDERSERVED COMMUNITY ” HAS THE MEANING STAT ED IN § 18
1–701 OF THE ENVIRONMENT ARTICLE. 19
(B) THERE IS A CUSTOMER–SITED SOLAR PROGRAM IN THE 20
ADMINISTRATION . 21
(C) THE PURPOSE OF THE PROGRAM IS TO: 22
(1) INCREASE DEPLOYMENT OF CUSTOMER –SITED SOLAR ENERGY 23
GENERATING SYSTEMS; AND 24
(2) PROVIDE GRANTS TO EL IGIBLE CUSTOMER –GENERATORS THAT 25
HAVE INSTALLED SOLAR ENERGY GENERATING SYSTEMS WITH OR WITH OUT ENERGY 26
STORAGE. 27
(D) THE ADMINISTRATION SHALL : 28
HOUSE BILL 258 3
(1) ON OR BEFORE NOVEMBER 1, 2024, ESTABLISH APPLICATIO N AND 1
INCOME VERIFICATION PROCEDU RES FOR THE PROGRAM; AND 2
(2) AWARD GRANTS FROM TH E PROGRAM. 3
(E) THE PROGRAM MAY PROVIDE GRANTS TO ELIGIBLE 4
CUSTOMER–GENERATOR S AS FOLLOWS: 5
(1) AN INCOME–VERIFIED ELIGIBLE CUSTOMER –GENERATOR WITH A 6
LOW TO MODERATE INCOME IS ELIGIBLE FOR A GR ANT EQUAL TO $750 PER 7
KILOWATT OF NAMEPLAT E CAPACITY FOR A SOL AR ENERGY GENERATING SYSTEM, 8
UP TO A MAXIMUM OF $7,500 PER SYSTEM; 9
(2) A NON–INCOME–VERIFIED ELIGIBLE CU STOMER–GENERATOR 10
LOCATED IN A LOW – TO MODERATE–INCOME COMMUNITY , AN OVERBURDENED 11
COMMUNITY , OR AN UNDERSERVED COMMUNIT Y IS ELIGIBLE FOR A GRANT EQUAL 12
TO $500 PER KILOWATT OF NAME PLATE CAPACITY FOR A SOLAR ENERGY 13
GENERATING SYSTEM, UP TO A MAXIMUM OF $5,000 PER SYSTEM; AND 14
(3) A NON–INCOME–VERIFIED ELIGIBLE CU STOMER–GENERATOR 15
LOCATED OUTSIDE A LO W– TO MODERATE–INCOME COMMUNITY , AN 16
OVERBURDENED COMMUNITY , OR AN UNDERSERVED COMMUNIT Y IS ELIGIBLE FOR 17
A GRANT EQUAL TO $400 PER KILOWATT OF NAME PLATE CAPACITY FOR A SOLAR 18
ENERGY GENERATING SYSTEM, UP TO A MAXIMUM OF $4,000 PER SYSTEM. 19
(F) GRANTS SHALL BE FUNDED AS FOLLOWS: 20
(1) A GRANT AWARDED UNDE R SUBSECTION (E)(1) OR (2) OF THIS 21
SECTION SHALL BE FUNDED FROM FEES COLLECTED UNDER § 7–705(B)(2)(I)2 OF 22
THE PUBLIC UTILITIES ARTICLE; AND 23
(2) A GRANT AWARDED UNDE R SUBSECTION (E)(3) OF THIS SECTION 24
SHALL BE FUNDED FROM ALLOWANCES COLL ECTED UNDER § 9–20B–05(G)(3) OF 25
THIS TITLE AND CREDITED IN ACCO RDANCE WITH § 9–20B–05(G–1) OF THIS TITLE. 26
(G) THE ADMINISTRATION SHA LL USE THE INCOME VERIFICATION 27
PROCESSES UNDER § 7–306.2(F)(1)(IV) OF THE PUBLIC UTILITIES ARTICLE TO 28
VERIFY INCOME FOR AN ELIGIBLE CUSTOMER –GENERATOR WITH A LOW TO 29
MODERATE INCOME . 30
(H) A THIRD PARTY MAY : 31
4 HOUSE BILL 258
(1) APPLY FOR A GRANT ON BEHALF OF AN ELIGIBL E 1
CUSTOMER–GENERATOR WITH PROOF OF CONSENT FROM THE ELIGIBLE 2
CUSTOMER–GENERATOR ; AND 3
(2) BE ASSIGNED A GRANT BY THE ELIGI BLE CUSTOMER –GENERATOR 4
TO ACT ON BEHALF OF THE ELIGIBLE CUSTOME R–GENERATOR . 5
(I) (1) FUNDING USED FOR GRANTS UNDER THIS SECTION SHALL B E 6
MONITORED THROUGH AN APPLICATION PROCESS MAINTAINED BY THE 7
ADMINISTRATION AND VI SIBLE ON THE ADMINISTRATION ’S WEBSITE. 8
(2) DATA ON THE ADMINISTRATION ’S WEBSITE SHALL: 9
(I) INCLUDE THE AMOUNT O F FUNDING AVAILABLE, 10
RESERVED, AND SPENT FOR THE FI SCAL YEAR; AND 11
(II) BE UPDATED WEEKLY . 12
(J) THE ADMINISTRATION SHALL PUBLISH MAPPING TOOL S TO ALLOW AN 13
ELIGIBLE CUSTOMER –GENERATOR TO DETERMI NE WHETHER THE ELIGIBLE 14
CUSTOMER IS LOCATED WITHIN A LOW – TO MODERATE–INCOME COMMUNITY , AN 15
OVERBURDENED COMMUNITY , OR AN UNDERSERVED COMMUNIT Y. 16
(K) (1) BEGINNING IN FISCAL Y EAR 2028, THE ADMINISTRATION MAY 17
ADJUST THE GRANT AMO UNTS AVAILABLE UNDER THE PROGRAM TO REFLECT 18
MARKET CONDITIONS AN D THE PREVAILING PRI CES OF SOLAR ENERGY 19
GENERATING SYSTEMS. 20
(2) IN MAKING AN ADJUSTME NT TO A GRANT AMOUNT UNDER THIS 21
SECTION, THE ADMINISTRATION SHALL : 22
(I) ENSURE CONTINUED GRO WTH AND DEPLOYMENT O F THE 23
CUSTOMER–SITED INDUSTRY AND M INIMIZE MARKET DISRU PTION; AND 24
(II) CONSIDER COMPARABLE PROGRAMS AND INCENTI VES IN 25
OTHER STATES . 26
9–20B–05. 27
(f) The Administration shall use the Fund: 28
(12) to provide at least $500,000 each year to the Resiliency Hub Grant 29
Program Fund under § 9–2011 of this title; [and] 30
HOUSE BILL 258 5
(13) TO PROVIDE GRANTS THROUGH THE CUSTOMER–SITED SOLAR 1
PROGRAM UNDER § 9–2016 OF THIS TITLE; AND 2
[(13)] (14) to pay the expenses of the Program. 3
(g) Proceeds received by the Fund from the sale of allowances under § 2–1002(g) 4
of the Environment Article shall be allocated as follows: 5
(1) at least 50% shall be credited to an energy assistance account to be used 6
for the Electric Universal Service Program and other electricity assistance programs in the 7
Department of Human Services; 8
(2) at least 20% shall be credited to a low and moderate income efficiency 9
and conservation programs account and to a general efficiency and conservation programs 10
account for energy efficiency and conservation programs, projects, or activities and demand 11
response programs, of which at least one–half shall be targeted to the low and moderate 12
income efficiency and conservation programs account for: 13
(i) the low–income residential sector at no cost to the participants 14
of the programs, projects, or activities; and 15
(ii) the moderate–income residential sector; 16
(3) at least 20% shall be credited to a renewable and clean energy programs 17
account for: 18
(i) renewable and clean energy programs and initiatives; 19
(ii) energy–related public education and outreach; and 20
(iii) climate change and resiliency programs; and 21
(4) up to 10%, but not more than $7,500,000, shall be credited to an 22
administrative expense account for costs related to the administration of the Fund, 23
including the review of electric company plans for achieving electricity savings and demand 24
reductions that the electric companies are required under law to submit to the 25
Administration. 26
(G–1) (1) BEGINNING IN FISCAL Y EAR 2025, OF THE AMOUNT IN THE 27
RENEWABLE AND CLEAN ENERGY PROGRAMS ACCO UNT UNDER SUBSECTION (G)(3) 28
OF THIS SECTION , AT LEAST ONE –HALF SHALL BE CREDIT ED TO THE 29
CUSTOMER–SITED SOLAR PROGRAM FOR ELIGIBLE CUSTOME R–GENERATORS 30
THAT ARE NOT ELIGIBLE FOR INCENTIVES UNDER SUB SECTION (G)(3)(I) OF THIS 31
SECTION. 32
6 HOUSE BILL 258
(2) PROCEEDS THAT ARE ALL OCATED FOR CREDIT UN DER 1
PARAGRAPH (1) OF THIS SUBSECTION A ND REMAIN UNUSED IN A GIVEN FISCAL YEAR 2
SHALL BE CARRIED FOR WARD AS FOLLOWS : 3
(I) PROCEEDS ALLOCATED B UT UNUSED FROM A PRE VIOUS 4
YEAR SHALL BE USED BEFORE PROCEEDS ALLOCATED F OR THE CURRENT FISCAL 5
YEAR; AND 6
(II) THE ADMINISTRATION SHALL REALLOCATE WITHIN TH E 7
RENEWABLE AND CLEAN ENERGY PROGRAMS ACCO UNT ANY PROCEEDS THA T 8
REMAIN ALLOCATED BUT UNUSED FOR 3 FISCAL YEARS AFTER COLLECTI ON. 9
(G–2) (1) PROCEEDS RECEIVED BY THE FUND FROM COMPLIANCE FEES 10
UNDER § 7–705(B)(2)(I)2 OF THE PUBLIC UTILITIES ARTICLE SHALL BE ALLO CATED 11
AS FOLLOWS: 12
(I) BEGINNING IN FISCAL YEAR 2025, AT LEAST 60% OF THE 13
PROCEEDS SHALL SUPPORT THE IN STALLATION OF NEW SO LAR ENERGY 14
GENERATING SYSTEMS UNDER THE CUSTOMER–SITED SOLAR PROGRAM; 15
(II) SUBJECT TO PARAGRAPH (2) OF THIS SUBSECTION , IN THE 16
ADMINISTRATION ’S DISCRETION, A CERTAIN PERCENTAGE OF PROCEEDS SHALL 17
PROVIDE TO HOUSEHOLDS WITH L OW TO MODERATE INCOM E, AS DEFINED IN § 18
9–2016 OF THIS TITLE, GRANTS TO REPAIR , IMPROVE, OR MODERNIZE THE HOUSE 19
FOR THE INSTALLATION OF A SOLAR ENERGY GENERATING SYSTEM; 20
(III) PROCEEDS COLLECTED BUT UNUSED FROM A PREVIOUS 21
YEAR SHALL BE USED B EFORE PROCEEDS ALLOCATED FOR THE CU RRENT YEAR; AND 22
(IV) THE ADMINISTRATION SHALL REALLOCATE TO OTHER 23
AUTHORIZED USES ANY PROCEEDS THAT ARE NOT USED WITHIN 3 FISCAL YEARS 24
AFTER COLLECTION . 25
(2) A GRANT UNDER PARAGRAP H (1)(II) OF THIS SUBSECTION S HALL 26
BE DISTRIBUTED AS FO LLOWS: 27
(I) A GRANT FOR A ROOF R EPLACEMENT OR A STRU CTURAL 28
ROOF REPAIR SHALL BE AT LEAST $2 PER SQUARE FOOT BUT MAY NOT EXCEED 29
$5,000 IN TOTAL; AND 30
(II) A GRANT FOR AN ELECT RICAL PANEL UPGRADE MAY NOT 31
EXCEED $1,500 AND MAY BE APPLIED FOR BEFORE A SOLAR ENERG Y GENERATING 32
SYSTEM IS INSTALLED . 33 HOUSE BILL 258 7
(3) (I) AN APPLICANT FOR A GR ANT UNDER THIS SUBSECTION 1
SHALL INCLUDE IN THE APPLICATION AN EXECU TED CONTRACT TO PURC HASE OR 2
LEASE A SOLAR ENERGY GENERATING SYSTEM OR AN EXECUTE D POWER PURCHASE 3
AGREEMENT FOR THE SY STEM. 4
(II) THE SOLAR ENERGY GENERATING SYSTEM SHALL BE 5
INSTALLED WITHIN 180 DAYS AFTER A GRANT U NDER THIS SUBSECTION IS 6
DISTRIBUTED. 7
(i) (1) Except as provided in paragraph (2) of this subsection, compliance fees 8
paid under § 7–705(b) of the Public Utilities Article may be used only to make loans and 9
grants to support the creation of new Tier 1 renewable energy sources in the State that are 10
owned by or directly benefit: 11
(i) low– to moderate–income communities located in a census tract 12
with an average median income at or below 80% of the average median income for the State; 13
or 14
(ii) overburdened or underserved communities, as defined in § 1–701 15
of the Environment Article. 16
(2) Compliance fees paid under § 7–705(b)(2)(i)2 of the Public Utilities 17
Article shall be accounted for separately within the Fund and may be used only to make 18
loans and grants to support the creation of new solar energy sources in the State that are 19
owned by or directly benefit: 20
(i) low– to moderate–income communities located in a census tract 21
with an average median income at or below 80% of the average median income for the State; 22
[or] 23
(ii) overburdened or underserved communities, as defined in § 1–701 24
of the Environment Article; OR 25
(III) HOUSEHOLDS WITH LOW TO MODERATE INCOME, AS 26
DEFINED IN § 9–2016 OF THIS TITLE. 27
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect July 28
1, 2024. 29