EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
[Brackets] indicate matter deleted from existing law.
Underlining indicates amendments to bill.
Strike out indicates matter stricken from the bill by amendment or deleted from the law by
amendment.
*sb0416*
SENATE BILL 416
C5, M5 4lr2704
CF HB 258
By: Senator Lewis Young
Introduced and read first time: January 18, 2024
Assigned to: Education, Energy, and the Environment
Committee Report: Favorable with amendments
Senate action: Adopted
Read second time: February 29, 2024
CHAPTER ______
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 information regarding the Program; requiring the Administration to develop a 8
certain consumer protection policy; providing for the funding of Program grants from 9
certain compliance fee and allowance proceeds fees in the Strategic Energy 10
Investment Fund; and generally relating to the Customer–Sited Solar Program. 11
BY adding to 12
Article – State Government 13
Section 9–2016 and 9–20B–05(f)(13), and (g–1), and (g–2) 14
Annotated Code of Maryland 15
(2021 Replacement Volume and 2023 Supplement) 16
BY repealing and reenacting, with amendments, 17
Article – State Government 18
Section 9–20B–05(f)(12) and (13) and (i) 19
Annotated Code of Maryland 20
(2021 Replacement Volume and 2023 Supplement) 21
BY repealing and reenacting, without amendments, 22 2 SENATE BILL 416
Article – State Government 1
Section 9–20B–05(g) 2
Annotated Code of Maryland 3
(2021 Replacement Volume and 2023 Supplement) 4
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 5
That the Laws of Maryland read as follows: 6
Article – State Government 7
9–2016. 8
(A) (1) IN THIS SECTION THE F OLLOWING WORDS HAVE THE MEANINGS 9
INDICATED. 10
(2) “ELIGIBLE CUSTOMER –GENERATOR ” HAS THE MEANING STATED 11
IN § 7–306 OF THE PUBLIC UTILITIES ARTICLE. 12
(3) “LOW TO MODERATE INCOM E” MEANS A HOUSEHOLD WI TH AN 13
ANNUAL HOUSEHOLD INC OME AT OR BELOW 80% 150% OF THE AVERAGE MEDIA N 14
INCOME FOR THE STATE. 15
(4) “LOW– TO MODERATE –INCOME COMMUNITY ” MEANS ANY CENS US 16
TRACT IN WHICH , ACCORDING TO THE MOS T RECENT U.S. CENSUS BUREAU 17
SURVEY, THE AVERAGE MEDIAN I NCOME IS AT OR BELOW 80% OF THE AVERAGE 18
MEDIAN INCOME FOR TH E STATE. 19
(5) “OVERBURDENED COMMUNIT Y” HAS THE MEANING STAT ED IN § 20
1–701 OF THE ENVIRONMENT ARTICLE. 21
(6) (4) “PROGRAM” MEANS THE CUSTOMER–SITED SOLAR PROGRAM 22
ESTABLISHED IN THIS SECTION. 23
(7) “UNDERSERVED COMMUNITY ” HAS THE MEANING STAT ED IN § 24
1–701 OF THE ENVIRONMENT ARTICLE. 25
(B) THERE IS A CUSTOMER–SITED SOLAR PROGRAM IN THE 26
ADMINISTRATION . 27
(C) THE PURPOSE OF THE PROGRAM IS TO: 28
(1) INCREASE DEPLOYMENT OF CUSTOMER –SITED SOLAR ENERGY 29
GENERATING SYSTEMS ; AND 30
SENATE BILL 416 3
(2) PROVIDE GRANTS TO EL IGIBLE CUSTOMER –GENERATORS THAT 1
HAVE INSTALLED SOLAR ENERGY GENERATING SY STEMS WITH OR WITHOU T ENERGY 2
STORAGE. 3
(D) (1) THE ADMINISTRATION SHALL : 4
(1) (I) ON OR BEFORE NOVEMBER 1, 2024 JANUARY 1, 2025, 5
ESTABLISH APPLICATIO N AND INCOME VERIFIC ATION PROCEDURES FOR THE 6
PROGRAM; AND 7
(2) (II) AWARD GRANTS FROM TH E PROGRAM. 8
(2) AN APPLICANT FOR A GR ANT UNDER THIS SECTION SHALL : 9
(I) INCLUDE IN THE APPLI CATION AN EXECUTED C ONTRACT TO 10
PURCHASE OR LEASE A SOLAR ENERGY GENERAT ING SYSTEM OR AN EXE CUTED 11
POWER PURCHASE AGREE MENT FOR THE SYSTEM ; 12
(II) DEMONSTRATE THAT AN AGREEMENT ENTERED IN TO 13
BETWEEN A THIRD PA RTY AND AN ELIGIBLE CUSTOMER–GENERATOR MEETS THE 14
MINIMUM BENEFITS PUB LISHED UNDER SUBSECT ION (J) OF THIS SECTION; AND 15
(III) INCLUDE A SIGNED DIS CLOSURE FORM DEVELOP ED UNDER 16
SUBSECTION (L) OF THIS SECTION. 17
(E) THE PROGRAM MAY PROVIDE G RANTS TO ELIGIBLE 18
CUSTOMER–GENERATORS AS FOLLOW S: 19
(1) AN INCOME–VERIFIED ELIGIBLE CU STOMER–GENERATOR WITH A 20
LOW TO MODERATE INCO ME IS ELIGIBLE FOR A GR ANT IN AN AMOUNT EQUAL TO 21
$750 PER KILOWATT OF NAME PLATE CAPACITY FOR A SOLAR ENERGY GENERAT ING 22
SYSTEM, UP TO A MAXIMUM OF $7,500 PER SYSTEM; 23
(2) A NON–INCOME–VERIFIED ELIGIBLE CU STOMER–GENERATOR 24
LOCATED IN A LOW – TO MODERATE –INCOME COMMUNITY , AN OVERBURDENED 25
COMMUNITY , OR AN UNDERSERVED CO MMUNITY IS ELIGIBLE FOR A GRANT EQUAL 26
TO $500 PER KILOWATT OF NAME PLATE CAPACITY FOR A SOLAR ENERGY 27
GENERATING SYSTEM , UP TO A MAXIMUM OF $5,000 PER SYSTEM; AND 28
(3) A NON–INCOME–VERIFIED ELIGIBLE CU STOMER–GENERATOR 29
LOCATED OUTSIDE A LO W– TO MODERATE –INCOME COMMUNITY , AN 30
OVERBURDENED COMMUNI TY, OR AN UNDERSERVED CO MMUNITY IS ELIGIBLE FOR 31
A GRANT EQUAL TO $400 PER KILOWATT OF NAME PLATE CAPACITY FOR A SOLAR 32
ENERGY GENERATING SY STEM, UP TO A MAXIMUM OF $4,000 PER SYSTEM. 33 4 SENATE BILL 416
(F) GRANTS SHALL BE FUNDE D AS FOLLOWS: 1
(1) A A GRANT AWARDED UNDER SUBSECTION (E)(1) OR (2) (E) OF 2
THIS SECTION SHALL B E FUNDED FROM FEES C OLLECTED UNDER § 7–705(B)(2)(I)2 3
OF THE PUBLIC UTILITIES ARTICLE AND ALLOCATED IN ACC ORDANCE WITH § 4
9–20B–05(G–1) OF THIS TITLE; AND 5
(2) A GRANT AWARDED UNDE R SUBSECTION (E)(3) OF THIS SECTION 6
SHALL BE FUNDED FROM ALLOWANCES COLL ECTED UNDER § 9–20B–05(G)(3) OF 7
THIS TITLE AND CREDI TED IN ACCORDANCE WI TH § 9–20B–05(G–1) OF THIS TITLE. 8
(G) THE ADMINISTRATION SHALL USE THE INCOME VERIF ICATION 9
PROCESSES UNDER § 7–306.2(F)(1)(IV) 7–306.2(F)(1)(IV)1 THROUGH 6 OF THE 10
PUBLIC UTILITIES ARTICLE TO VERIFY INC OME FOR AN ELIGIBLE 11
CUSTOMER–GENERATOR WITH A LOW TO MODERATE INCOME . 12
(H) A THIRD PARTY MAY : 13
(1) APPLY FOR A GRANT ON BEHALF OF AN ELIGIBL E 14
CUSTOMER–GENERATOR WITH PROOF OF CONSENT FROM THE ELIGIBLE 15
CUSTOMER–GENERATOR; AND 16
(2) BE ASSIGNED A GRANT BY THE ELIGIBLE CUST OMER–GENERATOR 17
TO ACT ON BEHALF OF THE ELIGIBLE CUSTOME R–GENERATOR . 18
(I) (1) FUNDING USED FOR GRAN TS UNDER THIS SECTIO N SHALL BE 19
MONITORED THROUGH AN APPLICATION PROCESS MAINTAINED BY THE 20
ADMINISTRATION AND VISIBLE ON THE ADMINISTRATION ’S WEBSITE. 21
(2) DATA ON THE ADMINISTRATION ’S WEBSITE SHALL : 22
(I) INCLUDE THE AMOUNT O F FUNDING AVAILABLE , 23
RESERVED, AND SPENT FOR THE FI SCAL YEAR; AND 24
(II) BE UPDATED WEEKLY REGULARLY. 25
(J) THE ADMINISTRATION SHALL PUBLISH MAPPING TOOLS TO ALL OW AN 26
ELIGIBLE CUSTOMER –GENERATOR TO DETERMI NE WHETHER THE ELIGI BLE 27
CUSTOMER IS LOCATED WITHIN A LOW – TO MODERATE –INCOME COMMUNITY , AN 28
OVERBURDENED COMMUNI TY, OR AN UNDERSERVED CO MMUNITY: 29
(1) THE DISCLOSURE FORM DEVELOPE D UNDER SUBSECTION (L) OF 30
THIS SECTION; AND 31 SENATE BILL 416 5
(2) THE MINIMUM BENEFITS THAT AN ELIGIBLE 1
CUSTOMER–GENERATOR MUST RECEI VE UNDER AN AGREEMEN T WITH A THIRD 2
PARTY. 3
(K) (1) BEGINNING IN FISCAL Y EAR 2028, THE ADMINISTRATION MAY 4
ADJUST THE GRANT AMOUNTS AVAILA BLE UNDER THE PROGRAM TO REFLECT 5
MARKET CONDITIONS AN D THE PREVAILING PRI CES OF SOLAR ENERGY 6
GENERATING SYSTEMS . 7
(2) IN MAKING AN ADJUSTME NT TO A GRANT AMOUNT UNDER THIS 8
SECTION, THE ADMINISTRATION SHALL : 9
(I) ENSURE CONTINUED GRO WTH AND DEPLOYMENT O F THE 10
CUSTOMER–SITED INDUSTRY AND M INIMIZE MARKET DISRU PTION; AND 11
(II) CONSIDER COMPARABLE PROGRAMS AND INCENTI VES IN 12
OTHER STATES . 13
(K) A SOLAR ENERGY GENERAT ING SYSTEM SHALL BE INSTALLED WITHIN 14
180 DAYS AFTER A GRANT U NDER THIS SECTION IS RESERVED BY THE 15
ADMINISTRATION FOR AN ELIGIBLE CUSTOMER –GENERATOR . 16
(L) (1) THE ADMINISTRATION SHALL DEVELOP A CONSUMER 17
PROTECTION POLICY IN CONSULTATION WITH RE PRESENTATIVES OF THE 18
CUSTOMER–SITED SOLAR INDUSTRY . 19
(2) THE CONSUMER PROTECTI ON POLICY DEVELOPED UND ER 20
PARAGRAPH (1) OF THIS SUBSECTION S HALL: 21
(I) INCLUDE A DISCLOSURE FORM FOR SOLAR ENERG Y POWER 22
PURCHASE AGREEMENTS , SOLAR ENERGY LEASE A GREEMENTS , AND SOLAR ENERGY 23
LOAN AGREEMENTS THAT MUST BE SIGNED BY AN ELIGIBLE 24
CUSTOMER–GENERATOR BEFORE ENTERING INTO THE AGREEMENT ; 25
(II) FOR A SOLAR ENERGY P OWER PURCHASE AGREEM ENT OR A 26
SOLAR ENERGY LEASE A GREEMENT, PROHIBIT AN ANNUAL R ATE INCREASE OF 27
MORE THAN 3%; 28
(III) ALLOW A CUSTOMER –GENERATOR TO CANCEL AN 29
AGREEMENT ENTERED IN TO WITH A THIRD PARTY UP T O 30 DAYS AFTER SIGNING 30
THE AGREEMENT ; AND 31
6 SENATE BILL 416
(IV) BE EASILY ACCESSIBLE ON THE ADMINISTRATION ’S 1
WEBSITE AND SOCIAL M EDIA PLATFORMS . 2
9–20B–05. 3
(f) The Administration shall use the Fund: 4
(12) to provide at least $500,000 each year to the Resiliency Hub Grant 5
Program Fund under § 9–2011 of this title; [and] 6
(13) TO PROVIDE GRANTS TH ROUGH THE CUSTOMER–SITED SOLAR 7
PROGRAM UNDER § 9–2016 OF THIS TITLE; AND 8
[(13)] (14) to pay the expenses of the Program. 9
(g) Proceeds received by the Fund from the sale of allowances under § 2–1002(g) 10
of the Environment Article shall be allocated as follows: 11
(1) at least 50% shall be credited to an energy assistance account to be used 12
for the Electric Universal Service Program and other electricity assistance programs in the 13
Department of Human Services; 14
(2) at least 20% shall be credited to a low and moderate income efficiency 15
and conservation programs account and to a general efficiency and conservation programs 16
account for energy efficiency and conservation programs, projects, or activities and demand 17
response programs, of which at least one–half shall be targeted to the low and moderate 18
income efficiency and conservation programs account for: 19
(i) the low–income residential sector at no cost to the participants 20
of the programs, projects, or activities; and 21
(ii) the moderate–income residential sector; 22
(3) at least 20% shall be credited to a renewable and clean energy programs 23
account for: 24
(i) renewable and clean energy programs and initiatives; 25
(ii) energy–related public education and outreach; and 26
(iii) climate change and resiliency programs; and 27
(4) up to 10%, but not more than $7,500,000, shall be credited to an 28
administrative expense account for costs related to the administration of the Fund, 29
including the review of electric company plans for achieving electricity savings and demand 30 SENATE BILL 416 7
reductions that the electric companies are required under law to submit to the 1
Administration. 2
(G–1) (1) BEGINNING IN FISCAL Y EAR 2025, OF THE AMOUNT IN THE 3
RENEWABLE AND CLEAN ENERGY PROGRAMS ACCO UNT UNDER SUBSECTION (G)(3) 4
OF THIS SECTION , AT LEAST ONE –HALF SHALL BE CREDIT ED TO THE 5
CUSTOMER–SITED SOLAR PROGRAM FOR ELIGIBLE CUSTOMER–GENERATORS 6
THAT ARE NOT ELIGIBLE FOR INCENTIVES UNDER SUBSECTION (G)(3)(I) OF THIS 7
SECTION. 8
(2) PROCEEDS THAT ARE ALL OCATED FOR CREDIT UN DER 9
PARAGRAPH (1) OF THIS SUBSECTION A ND REMAIN UNUSED IN A GIVEN FISCAL YEAR 10
SHALL BE CARRIED FOR WARD AS FOLLOWS : 11
(I) PROCEEDS ALLOCATED BUT UN USED FROM A PREVIOUS 12
YEAR SHALL BE USED B EFORE PROCEEDS ALLOC ATED FOR THE CURRENT FISCAL 13
YEAR; AND 14
(II) THE ADMINISTRATION SHALL REALLOCATE WITHIN TH E 15
RENEWABLE AND CLEAN ENERGY PROGRAMS ACCO UNT ANY PROCEEDS THA T 16
REMAIN ALLOCATED BUT UNUSED FOR 3 FISCAL YEARS AFTER C OLLECTION. 17
(G–2) (1) (G–1) PROCEEDS RECEIVED BY THE FUND FROM COMPLIANCE 18
FEES UNDER § 7–705(B)(2)(I)2 OF THE PUBLIC UTILITIES ARTICLE SHALL BE 19
ALLOCATED AS FOLLOWS : 20
(I) (1) BEGINNING IN FISCAL YEAR 2025, AT LEAST 60% 20% 21
OF THE PROCEEDS SHAL L BE USED TO PROVIDE G RANTS TO SUPPORT THE 22
INSTALLATION OF NEW SOLAR ENERGY GENERAT ING SYSTEMS UNDER TH E 23
CUSTOMER–SITED SOLAR PROGRAM; 24
(II) (2) SUBJECT TO PARAGRAPH (2) OF THIS SUBSECT ION, IN 25
THE ADMINISTRATION ’S DISCRETION , A CERTAIN PERCENTAGE OF PROCEEDS 26
SHALL PROVIDE TO HOUSEHOLD S WITH LOW TO MODERA TE INCOME, AS DEFINED IN 27
§ 9–2016 OF THIS TITLE, GRANTS TO REPAIR , IMPROVE, OR MODERNIZE THE HOU SE 28
FOR THE INSTALLATION OF A SOLAR ENERG Y GENERATING SYSTEM UP TO 10% OF 29
THE PROCEEDS SHALL B E CREDITED TO AN ADM INISTRATIVE EXPENSE ACCOUNT 30
FOR COSTS RELATED TO THE ADMINISTRATION O F THE FUND; 31
(III) (3) PROCEEDS COLLECTED B UT UNUSED FROM A 32
PREVIOUS YEAR SHALL BE USED BEFORE PROCE EDS ALLOCATED FOR THE CU RRENT 33
YEAR; AND 34
8 SENATE BILL 416
(IV) (4) THE ADMINISTRATION SHALL REALLOCATE TO 1
OTHER AUTHORIZED USE S ANY PROCEEDS THAT ARE NOT USED WITHIN 3 FISCAL 2
YEARS AFTER COLLECTI ON. 3
(2) A GRANT UNDER PARAGRAP H (1)(II) OF THIS SUBSECTION S HALL 4
BE DISTRIBUTED AS FOLLOWS : 5
(I) A GRANT FOR A ROOF R EPLACEMENT OR A STRU CTURAL 6
ROOF REPAIR SHALL BE AT LEAST $2 PER SQUARE FOOT BUT MAY NOT EXCEED 7
$5,000 IN TOTAL; AND 8
(II) A GRANT FOR AN ELECT RICAL PANEL UPGRADE MAY NOT 9
EXCEED $1,500 AND MAY BE APPLIED F OR BEFORE A SOLAR ENERGY GENERATING 10
SYSTEM IS INSTALLED . 11
(3) (I) AN APPLICANT FOR A GR ANT UNDER THIS SUBSE CTION 12
SHALL INCLUDE IN THE APPLICATION AN EXECU TED CONTRACT TO PURC HASE OR 13
LEASE A SOLAR ENERGY GENERATING SYSTEM OR AN EXECUTED POWER PU RCHASE 14
AGREEMENT FOR THE SY STEM. 15
(II) THE SOLAR ENERGY GENE RATING SYSTEM SHALL BE 16
INSTALLED WITHIN 180 DAYS AFTER A GRANT U NDER THIS SUBSECTION IS 17
DISTRIBUTED. 18
(i) (1) Except as provided in paragraph (2) of this subsection, compliance fees 19
paid under § 7–705(b) of the Public Utilities Article may be used only to make loans and 20
grants to support the creation of new Tier 1 renewable energy sources in the State that are 21
owned by or directly benefit: 22
(i) low– to moderate–income communities located in a census tract 23
with an average median income at or below 80% of the average median income for the State; 24
or 25
(ii) overburdened or underserved communities, as defined in § 1–701 26
of the Environment Article. 27
(2) Compliance fees paid under § 7–705(b)(2)(i)2 of the Public Utilities 28
Article shall be accounted for separately within the Fund and may be used only to make 29
loans and grants to support the creation of new solar energy sources in the State that are 30
owned by or directly benefit: 31
(i) low– to moderate–income communities located in a census tract 32
with an average median income at or below 80% of the average median income for the State; 33
[or] 34
SENATE BILL 416 9
(ii) overburdened or underserved communities, as defined in § 1–701 1
of the Environment Article; OR 2
(III) HOUSEHOLDS WITH LOW TO MO DERATE INCOME , AS 3
DEFINED IN § 9–2016 OF THIS TITLE. 4
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect July 5
1, 2024. It shall remain effective for a period of 3 years and, at the end of June 30, 2027, 6
this Act, with no further action required by the General Assembly, shall be abrogated and 7
of no further force and effect. 8
Approved:
________________________________________________________________________________
Governor.
________________________________________________________________________________
President of the Senate.
________________________________________________________________________________
Speaker of the House of Delegates.