EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW. [Brackets] indicate matter deleted from existing law. *sb0474* SENATE BILL 474 C5 4lr4580 CF 4lr4581 By: The President (By Request – Administration) and Senators Augustine, Bailey, Beidle, Brooks, Carozza, Charles, Corderman, Ferguson, Folden, Gallion, Hershey, Hettleman, Lam, McKay, Ready, Rosapepe, Waldstreicher, and West Introduced and read first time: January 22, 2024 Assigned to: Education, Energy, and the Environment 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 SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 21 That the Laws of Maryland read as follows: 22 Article – Public Utilities 23 2 SENATE BILL 474 7–207. 1 (a) (1) In this section the following words have the meanings indicated. 2 (4) “Generating station” does not include: 3 (i) a generating unit or facility that: 4 1. is used for the production of electricity; 5 2. has the capacity to produce not more than 2 megawatts of 6 alternating current; and 7 3. is installed with equipment that prevents the flow of 8 electricity to the electric grid during time periods when the electric grid is out of service; 9 [or] 10 (ii) a combination of two or more generating units or facilities that: 11 1. are used for the production of electricity from a solar 12 photovoltaic system or an eligible customer–generator that is subject to the provisions of § 13 7–306 of this title; 14 2. are located on the same property or adjacent properties; 15 3. have the capacity to produce, wh en calculated 16 cumulatively for all generating units or facilities on the property or adjacent property, more 17 than 2 megawatts but not more than 14 megawatts of alternating current; and 18 4. for each individual generating unit or facility: 19 A. has the capacity to produce not more than 2 megawatts of 20 alternating current; 21 B. is separately metered by the electric company; and 22 C. does not export electricity for sale on the wholesale market 23 under an agreement with PJM Interconnection, LLC; 24 (III) A GENERATING UNIT OR FACILITY THAT: 25 1. IS USED FOR THE PROD UCTION OF ELECTRICIT Y FOR 26 THE PURPOSE OF : 27 A. ONSITE EMERGENCY BAC KUP AT A FACILITY WH EN 28 SERVICE FROM THE ELE CTRIC COMPANY IS INT ERRUPTED; AND 29 SENATE BILL 474 3 B. TEST AND MAINTENANCE OPERATIONS NECESSARY 1 TO ENSURE FUNCTIONAL ITY OF THE GENERATIN G UNIT OR FACILITY I N THE EVENT 2 OF A SERVICE INTERRUPTION FROM THE ELECTRIC CO MPANY; 3 2. IS INSTALLED WITH EQ UIPMENT THAT PREVENT S THE 4 FLOW OF ELECTRICITY TO THE ELECTRIC GRID ; AND 5 3. IS SUBJECT TO A PERMIT TO CONSTRUCT ISSUED BY 6 THE DEPARTMENT OF THE ENVIRONMENT ; OR 7 (IV) A COMBINATION OF TWO OR MORE GENERATING U NITS OR 8 FACILITIES THAT SATI SFY ITEM (III) OF THIS PARAGRAPH . 9 7–207.1. 10 (a) In this section, “generating station” does not include: 11 (1) a generating unit or facility that: 12 (i) is used for the production of electricity; 13 (ii) has the capacity to produce not more than 2 megawatts of 14 alternating current; and 15 (iii) is installed with equipment that prevents the flow of electricity 16 to the electric grid during time periods when the electric grid is out of service; [or] 17 (2) a combination of two or more generating units or facilities that: 18 (i) are used for the production of electricity from a solar photovoltaic 19 system or an eligible customer–generator that is subject to the provisions of § 7–306 of this 20 title; 21 (ii) are located on the same property or adjacent properties; 22 (iii) have the capacity to produce, when calculated cumulatively for 23 all generating units or facilities on the property or adjacent property, more than 2 24 megawatts but not more than 14 megawatts of alternating current; and 25 (iv) for each individual generating unit or facility: 26 1. has the capacity to produce not more than 2 megawatts of 27 alternating current; 28 2. is separately metered by the electric company; and 29 4 SENATE BILL 474 3. does not export electricity for sale on the wholesale market 1 under an agreement with PJM Interconnection, LLC; 2 (3) A GENERATING UNIT OR FACILITY THAT: 3 (I) IS USED FOR THE PROD UCTION OF ELECTRICIT Y FOR THE 4 PURPOSE OF: 5 1. ONSITE EMERGENCY BAC KUP AT A FACILITY WHEN 6 SERVICE FROM THE ELE CTRIC COMPANY IS INT ERRUPTED; AND 7 2. TEST AND MAINTENANCE OPERATIONS NECESSARY 8 TO ENSURE FUNCTIONAL ITY OF THE GENERATING UNIT OR FA CILITY IN THE EVENT 9 OF A SERVICE INTERRUPTION FROM THE ELECTRIC CO MPANY; 10 (II) IS INSTALLED WITH EQ UIPMENT THAT PREVENT S THE FLOW 11 OF ELECTRICITY TO TH E ELECTRIC GRID ; AND 12 (III) IS SUBJECT TO A PERM IT TO CONSTRUCT ISSU ED BY THE 13 DEPARTMENT OF THE ENVIRONMENT ; OR 14 (4) A COMBINATION OF TWO OR MORE GENERATING U NITS OR 15 FACILITIES THAT SATI SFY ITEM (3) OF THIS SUBSECTION . 16 7–207.2. 17 (a) In this section, “generating station” does not include: 18 (1) a generating unit or facility that: 19 (i) is used for the production of electricity; 20 (ii) has the capacity to produce not more than 2 megawatts of 21 alternating current; and 22 (iii) is installed with equipment that prevents the flow of electricity 23 to the electric grid during time periods when the electric grid is out of service; [or] 24 (2) a combination of two or more generating units or facilities that: 25 (i) are used for the production of electricity from a solar photovoltaic 26 system or an eligible customer–generator that is subject to the provisions of § 7–306 of this 27 title; 28 SENATE BILL 474 5 (ii) are located on the same property or adjacent properties; 1 (iii) have the capacity to produce, when calculated cumulatively for 2 all generating units or facilities on the property or adjacent property, more than 2 3 megawatts but not more than 14 megawatts of alternating current; and 4 (iv) for each individual generating unit or facility: 5 1. has the capacity to produce not more than 2 megawatts of 6 alternating current; 7 2. is separately metered by the electric company; and 8 3. does not export electricity for sale on the wholesale market 9 under an agreement with PJM Interconnection, LLC; 10 (3) A GENERATING UNIT OR FACILITY THAT: 11 (I) IS USED FOR THE PROD UCTION OF ELECTRICIT Y FOR THE 12 PURPOSE OF: 13 1. ONSITE EMERGENCY BAC KUP AT A FACILITY WHEN 14 SERVICE FROM THE ELE CTRIC COMPANY IS INTERRUPTED ; AND 15 2. TEST AND MAINTENANCE OPERATIONS NECESSARY 16 TO ENSURE FUNCTIONAL ITY OF THE GENERATIN G UNIT OR FACILITY I N THE EVENT 17 OF A SERVICE INTERRUPTION FROM THE ELECTRIC CO MPANY; 18 (II) IS INSTALLED WITH EQ UIPMENT THAT PREVENT S THE FLOW 19 OF ELECTRICITY TO TH E ELECTRIC GRID ; AND 20 (III) IS SUBJECT TO A PERM IT TO CONSTRUCT ISSU ED BY THE 21 DEPARTMENT OF THE ENVIRONMENT ; OR 22 (4) A COMBINATION OF TWO OR MORE GENERATING U NITS OR 23 FACILITIES THAT SATI SFY ITEM (3) OF THIS SUBSECTION . 24 7–208. 25 (a) (1) In this section the following words have the meanings indicated. 26 (2) “Construction” has the meaning stated in § 7–207 of this subtitle. 27 (3) “GENERATING STATION ” DOES NOT INCLUDE : 28 6 SENATE BILL 474 (I) A GENERATING UNIT OR FACILITY THAT: 1 1. IS USED FOR THE PROD UCTION OF ELECTRICIT Y FOR 2 THE PURPOSE OF : 3 A. ONSITE EMERGENCY BAC KUP AT A FACILITY WH EN 4 SERVICE FROM THE ELE CTRIC COMPANY IS INT ERRUPTED; AND 5 B. TEST AND MAINTENANCE OPERATIONS NECESSARY 6 TO ENSURE FUNCTIONAL ITY OF THE GENERATIN G UNIT OR FACILITY I N THE EVENT 7 OF AN INTERRUPTION O F SERVICE FROM THE ELECTRIC CO MPANY; 8 2. IS INSTALLED WITH EQ UIPMENT THAT PREVENT S THE 9 FLOW OF ELECTRICITY TO THE ELECTRIC GRID ; AND 10 3. IS SUBJECT TO A PERM IT TO CONSTRUCT ISSU ED BY 11 THE DEPARTMENT OF THE ENVIRONMENT ; OR 12 (II) A COMBINATION OF TWO OR MORE GENERATING U NITS OR 13 FACILITIES THAT SATI SFY ITEM (I) OF THIS PARAGRAPH . 14 [(3)] (4) “Qualified offshore wind project” has the meaning stated in § 15 7–701 of this title. 16 [(4)] (5) “Qualified submerged renewable energy line” means: 17 (i) a line carrying electricity supply and connecting a qualified 18 offshore wind project to the transmission system; and 19 (ii) a line in which the portions of the line crossing any submerged 20 lands or any part of a beach erosion control district are buried or submerged. 21 SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect July 22 1, 2024. 23