EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW. [Brackets] indicate matter deleted from existing law. *hb0579* HOUSE BILL 579 C5 4lr4581 CF SB 474 By: The Speaker (By Request – Administration) and Delegates Allen, Amprey, Anderton, Bagnall, Bhandari, Boyce, Buckel, Conaway, Crutchfield, Edelson, Fennell, Grossman, Guyton, Harris, Henson, Hill, Hornberger, Jackson, A. Johnson, S. Johnson, D. Jones, Kaiser, Kaufman, J. Long, Love, McCaskill, Miller, Munoz, Pasteur, Patterson, Phillips, Pippy, Pruski, Reilly, Roberson, Roberts, Rogers, Rose, Ruff, Simmons, Simpson, Spiegel, Taveras, Taylor, Toles, Tomlinson, Turner, Valderrama, Watson, Williams, and Wu Introduced and read first time: January 24, 2024 Assigned to: Economic Matters A BILL ENTITLED AN ACT concerning 1 Certificate of Public Convenience and Necessity and Related Approvals – 2 Definition of Generating Station 3 (Critical Infrastructure Streamlining Act of 2024) 4 FOR the purpose of altering and establishing the definition of “generating station” for the 5 purpose of exempting the construction of certain generating facilities used to produce 6 electricity for the purpose of onsite emergency backup and certain test and 7 maintenance operations from the requirement to obtain a certificate of public 8 convenience and necessity or certain other related approvals under certain 9 circumstances; and generally relating to generating stations. 10 BY repealing and reenacting, without amendments, 11 Article – Public Utilities 12 Section 7–207(a)(1) 13 Annotated Code of Maryland 14 (2020 Replacement Volume and 2023 Supplement) 15 BY repealing and reenacting, with amendments, 16 Article – Public Utilities 17 Section 7–207(a)(4), 7–207.1(a), 7–207.2(a), and 7–208(a) 18 Annotated Code of Maryland 19 (2020 Replacement Volume and 2023 Supplement) 20 2 HOUSE BILL 579 SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 1 That the Laws of Maryland read as follows: 2 Article – Public Utilities 3 7–207. 4 (a) (1) In this section the following words have the meanings indicated. 5 (4) “Generating station” does not include: 6 (i) a generating unit or facility that: 7 1. is used for the production of electricity; 8 2. has the capacity to produce not more than 2 megawatts of 9 alternating current; and 10 3. is installed with equipment that prevents the flow of 11 electricity to the electric grid during time periods when the electric grid is out of service; 12 [or] 13 (ii) a combination of two or more generating units or facilities that: 14 1. are used for the production of electricity from a solar 15 photovoltaic system or an eligible customer–generator that is subject to the provisions of § 16 7–306 of this title; 17 2. are located on the same property or adjacent properties; 18 3. have the capacity to produce, wh en calculated 19 cumulatively for all generating units or facilities on the property or adjacent property, more 20 than 2 megawatts but not more than 14 megawatts of alternating current; and 21 4. for each individual generating unit or facility: 22 A. has the capacity to produce not more than 2 megawatts of 23 alternating current; 24 B. is separately metered by the electric company; and 25 C. does not export electricity for sale on the wholesale market 26 under an agreement with PJM Interconnection, LLC; 27 (III) A GENERATING UNIT OR FACILITY THAT: 28 HOUSE BILL 579 3 1. IS USED FOR THE PROD UCTION OF ELECTRICIT Y FOR 1 THE PURPOSE OF : 2 A. ONSITE EMERGENCY BAC KUP AT A FACILITY WH EN 3 SERVICE FROM THE ELE CTRIC COMPANY IS INT ERRUPTED; AND 4 B. TEST AND MAINTENANCE OPERATIONS NECESSARY 5 TO ENSURE FUNCTIONAL ITY OF THE GENERATIN G UNIT OR FACILITY I N THE EVENT 6 OF A SERVICE INTERRU PTION FROM THE ELECT RIC COMPANY ; 7 2. IS INSTALLED WITH EQ UIPMENT THAT PREVENT S THE 8 FLOW OF ELECTRICITY TO THE ELECTRI C GRID; AND 9 3. IS SUBJECT TO A PERM IT TO CONSTRUCT ISSU ED BY 10 THE DEPARTMENT OF THE ENVIRONMENT ; OR 11 (IV) A COMBINATION OF TWO OR MORE GENERATING U NITS OR 12 FACILITIES THAT SATI SFY ITEM (III) OF THIS PARAGRAPH . 13 7–207.1. 14 (a) In this section, “generating station” does not include: 15 (1) a generating unit or facility that: 16 (i) is used for the production of electricity; 17 (ii) has the capacity to produce not more than 2 megawatts of 18 alternating current; and 19 (iii) is installed with equipment that prevents the flow of electricity 20 to the electric grid during time periods when the electric grid is out of service; [or] 21 (2) a combination of two or more generating units or facilities that: 22 (i) are used for the production of electricity from a solar photovoltaic 23 system or an eligible customer–generator that is subject to the provisions of § 7–306 of this 24 title; 25 (ii) are located on the same property or adjacent properties; 26 (iii) have the capacity to produce, when calculated cumulatively for 27 all generating units or facilities on the property or adjacent property, more than 2 28 megawatts but not more than 14 megawatts of alternating current; and 29 4 HOUSE BILL 579 (iv) for each individual generating unit or facility: 1 1. has the capacity to produce not more than 2 megawatts of 2 alternating current; 3 2. is separately metered by the electric company; and 4 3. does not export electricity for sale on the wholesale market 5 under an agreement with PJM Interconnection, LLC; 6 (3) A GENERATING UNIT OR FACILITY THAT: 7 (I) IS USED FOR THE PROD UCTION OF ELECTRICIT Y FOR THE 8 PURPOSE OF: 9 1. ONSITE EMERGENCY BAC KUP AT A FACILITY WHEN 10 SERVICE FROM THE ELE CTRIC COMPANY IS INT ERRUPTED; AND 11 2. TEST AND MAINTENANCE OPERATIONS NECESSARY 12 TO ENSURE FUNCTIONAL ITY OF THE GENERATIN G UNIT OR FACILITY I N THE EVENT 13 OF A SERVICE INTERRU PTION FROM THE ELECT RIC COMPANY ; 14 (II) IS INSTALLED WITH EQ UIPMENT THAT PREVENT S THE FLOW 15 OF ELECTRICITY TO TH E ELECTRIC GRID ; AND 16 (III) IS SUBJECT TO A PERM IT TO CONSTRUCT ISS UED BY THE 17 DEPARTMENT OF THE ENVIRONMENT ; OR 18 (4) A COMBINATION OF TWO OR MORE GENERATING U NITS OR 19 FACILITIES THAT SATI SFY ITEM (3) OF THIS SUBSECTION . 20 7–207.2. 21 (a) In this section, “generating station” does not include: 22 (1) a generating unit or facility that: 23 (i) is used for the production of electricity; 24 (ii) has the capacity to produce not more than 2 megawatts of 25 alternating current; and 26 (iii) is installed with equipment that prevents the flow of electricity 27 to the electric grid during time periods when the electric grid is out of service; [or] 28 HOUSE BILL 579 5 (2) a combination of two or more generating units or facilities that: 1 (i) are used for the production of electricity from a solar photovoltaic 2 system or an eligible customer–generator that is subject to the provisions of § 7–306 of this 3 title; 4 (ii) are located on the same property or adjacent properties; 5 (iii) have the capacity to produce, when calculated cumulatively for 6 all generating units or facilities on the property or adjacent property, more than 2 7 megawatts but not more than 14 megawatts of alternating current; and 8 (iv) for each individual generating unit or facility: 9 1. has the capacity to produce not more than 2 megawatts of 10 alternating current; 11 2. is separately metered by the electric company; and 12 3. does not export electricity for sale on the wholesale market 13 under an agreement with PJM Interconnection, LLC; 14 (3) A GENERATING UNIT OR FACILITY THAT: 15 (I) IS USED FOR THE PROD UCTION OF ELECTRICIT Y FOR THE 16 PURPOSE OF: 17 1. ONSITE EMERGENCY BAC KUP AT A FACILITY WHEN 18 SERVICE FROM THE ELE CTRIC COMPANY IS INT ERRUPTED; AND 19 2. TEST AND MAINTENANCE OPERATIONS NECESSARY 20 TO ENSURE FUNCTIONAL ITY OF THE GENERATIN G UNIT OR FACILITY I N THE EVENT 21 OF A SERVICE INTERRUPTION FRO M THE ELECTRIC COMPA NY; 22 (II) IS INSTALLED WITH EQ UIPMENT THAT PREVENT S THE FLOW 23 OF ELECTRICITY TO TH E ELECTRIC GRID ; AND 24 (III) IS SUBJECT TO A PERM IT TO CONSTRUCT ISSU ED BY THE 25 DEPARTMENT OF THE ENVIRONMENT ; OR 26 (4) A COMBINATION OF TWO O R MORE GENERATING UN ITS OR 27 FACILITIES THAT SATI SFY ITEM (3) OF THIS SUBSECTION . 28 7–208. 29 6 HOUSE BILL 579 (a) (1) In this section the following words have the meanings indicated. 1 (2) “Construction” has the meaning stated in § 7–207 of this subtitle. 2 (3) “GENERATING STATION ” DOES NOT INCLUDE : 3 (I) A GENERATING UNIT OR FACILITY THAT: 4 1. IS USED FOR THE PROD UCTION OF ELECTRICIT Y FOR 5 THE PURPOSE OF : 6 A. ONSITE EMERGENCY BAC KUP AT A FACILITY WH EN 7 SERVICE FROM THE ELE CTRIC COMPANY IS INT ERRUPTED; AND 8 B. TEST AND MAINTENANCE OPERATIONS NECESSARY 9 TO ENSURE FUNCTIONAL ITY OF THE GENERATIN G UNIT OR FACILITY I N THE EVENT 10 OF AN INTERRUPTION O F SERVICE FROM THE E LECTRIC COMPANY ; 11 2. IS INSTALLED WITH EQ UIPMENT THAT PREVENT S THE 12 FLOW OF ELECTRICITY TO THE E LECTRIC GRID; AND 13 3. IS SUBJECT TO A PERM IT TO CONSTRUCT ISSU ED BY 14 THE DEPARTMENT OF THE ENVIRONMENT ; OR 15 (II) A COMBINATION OF TWO OR MORE GENERATING U NITS OR 16 FACILITIES THAT SATI SFY ITEM (I) OF THIS PARAGRAPH . 17 [(3)] (4) “Qualified offshore wind project” has the meaning stated in § 18 7–701 of this title. 19 [(4)] (5) “Qualified submerged renewable energy line” means: 20 (i) a line carrying electricity supply and connecting a qualified 21 offshore wind project to the transmission system; and 22 (ii) a line in which the portions of the line crossing any submerged 23 lands or any part of a beach erosion control district are buried or submerged. 24 SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect July 25 1, 2024. 26