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.
*sb0474*
SENATE BILL 474
C5 4lr4580
CF HB 579
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
Committee Report: Favorable with amendments
Senate action: Adopted
Read second time: February 26, 2024
CHAPTER ______
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 1–101(a) and 7–207(a)(1) 13
Annotated Code of Maryland 14
(2020 Replacement Volume and 2023 Supplement) 15
BY adding to 16
Article – Public Utilities 17
Section 1–101(h–1) and 7–207.3 18
Annotated Code of Maryland 19
(2020 Replacement Volume and 2023 Supplement) 20 2 SENATE BILL 474
BY repealing and reenacting, with amendments, 1
Article – Public Utilities 2
Section 1–101(h–1), 7–207(a)(4), 7–207.1(a), 7–207.2(a), and 7–208(a) 3
Annotated Code of Maryland 4
(2020 Replacement Volume and 2023 Supplement) 5
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 6
That the Laws of Maryland read as follows: 7
Article – Public Utilities 8
1–101. 9
(a) In this division the following words have the meanings indicated. 10
(H–1) (1) “CRITICAL INFRASTRUCTURE ” MEANS ASSETS , SYSTEMS, AND 11
NETWORKS, WHETHER PHYSICAL OR VIRTUAL, CONSIDERED BY THE U.S. 12
DEPARTMENT OF HOMELAND SECURITY TO BE SO VIT AL TO THE UNITED STATES 13
THAT THEIR INCAPACIT ATION OR DESTRUCTION WOULD HAVE A DEBILIT ATING 14
EFFECT ON ON E OR MORE OF THE FOL LOWING: 15
(I) SECURITY; 16
(II) NATIONAL ECONOMIC SE CURITY; 17
(III) NATIONAL PUBLIC HEAL TH; OR 18
(IV) SAFETY. 19
(2) “CRITICAL INFRASTRUCTU RE” INCLUDES: 20
(I) A HOSPITAL OR HEALTH CARE FACILITY; AND 21
(II) A DATA CENTER AS DEFINED IN § 11–239 OF THE TAX – 22
GENERAL ARTICLE. 23
[(h–1)] (H–2) “Cybersecurity” has the meaning stated in § 3.5–301 of the State 24
Finance and Procurement Article. 25
7–207. 26
(a) (1) In this section the following words have the meanings indicated. 27
(4) “Generating station” does not include: 28
SENATE BILL 474 3
(i) a generating unit or facility that: 1
1. is used for the production of electricity; 2
2. has the capacity to produce not more than 2 megawatts of 3
alternating current; and 4
3. is installed with equipment that prevents the flow of 5
electricity to the electric grid during time periods when the electric grid is out of service; 6
[or] 7
(ii) a combination of two or more generating units or facilities that: 8
1. are used for the production of electricity from a solar 9
photovoltaic system or an eligible customer–generator that is subject to the provisions of § 10
7–306 of this title; 11
2. are located on the same property or adjacent properties; 12
3. have the capacity to produce, when calculated 13
cumulatively for all generating units or facilities on the property or adjacent property, more 14
than 2 megawatts but not more than 14 megawatts of alternating current; and 15
4. for each individual generating unit or facility: 16
A. has the capacity to produce not more than 2 megawatts of 17
alternating current; 18
B. is separately metered by the electric company; and 19
C. does not export electricity for sale on the wholesale market 20
under an agreement with PJM Interconnection, LLC; 21
(III) A GENERATING UNIT O R FACILITY THAT: 22
1. IS USED FOR THE PROD UCTION OF ELECTRICIT Y FOR 23
THE PURPOSE OF : 24
A. ONSITE EMERGENCY BAC KUP AT A FACILITY WH EN 25
SERVICE FROM THE ELE CTRIC COMPANY IS INT ERRUPTED DUE TO ELECTRIC 26
DISTRIBUTION OR TRAN SMISSION SYSTEM FAIL URE OR WHEN T HERE IS EQUIPMENT 27
FAILURE AT A SITE WH ERE CRITICAL INFRAST RUCTURE IS LOCATED ; AND 28
B. TEST AND MAINTENANCE OPERATIONS NECESSARY 29
TO ENSURE FUNCTIONAL ITY OF THE GENERATIN G UNIT OR FACILITY I N THE EVENT 30
OF A SERVICE INTERRU PTION FROM THE ELECT RIC COMPANY DUE TO ELECTRIC 31 4 SENATE BILL 474
DISTRIBUTION OR TRAN SMISSION SYSTEM FAIL URE OR WHEN THERE IS EQUIPMENT 1
FAILURE AT A SITE WH ERE CRITICAL INFRAST RUCTURE IS LOCATED ; 2
2. IS INSTALLED WITH EQ UIPMENT THAT PREVENT S THE 3
FLOW OF ELECTRICITY TO THE ELECTRIC GRID ; AND 4
3. IS SUBJECT TO A PERM IT TO CONSTRUCT ISSU ED BY 5
THE DEPARTMENT OF THE ENVIRONMENT ; OR AND 6
4. IS INSTALLED AT A FA CILITY THAT IS PART OF 7
CRITICAL INFRASTRUCT URE IF THE FACILITY COMPLIES WITH ALL AP PLICABLE 8
REGULATIONS REGARDIN G NOISE LEVEL AND TE STING HOURS; OR 9
(IV) A COMBINATION OF TWO OR MORE GENERATING U NITS OR 10
FACILITIES THAT SATI SFY ITEM (III) OF THIS PARAGRAPH . 11
7–207.1. 12
(a) In this section, “generating station” does not include: 13
(1) a generating unit or facility that: 14
(i) is used for the production of electricity; 15
(ii) has the capacity to produce not more than 2 megawatts of 16
alternating current; and 17
(iii) is installed with equipment that prevents the flow of electricity 18
to the electric grid during time periods when the electric grid is out of service; [or] 19
(2) a combination of two or more generating units or facilities that: 20
(i) are used for the production of electricity from a solar photovoltaic 21
system or an eligible customer–generator that is subject to the provisions of § 7–306 of this 22
title; 23
(ii) are located on the same property or adjacent properties; 24
(iii) have the capacity to produce, when calculated cumulatively for 25
all generating units or facilities on the property or adjacent property, more than 2 26
megawatts but not more than 14 megawatts of alternating current; and 27
(iv) for each individual generating unit or facility: 28
1. has the capacity to produce not more than 2 megawatts of 29
alternating current; 30 SENATE BILL 474 5
2. is separately metered by the electric company; and 1
3. does not export electricity for sale on the wholesale market 2
under an agreement with PJM Interconnection, LLC; 3
(3) A GENERATING UNIT OR FACILITY THAT: 4
(I) IS USED FOR THE PROD UCTION OF ELECTRICIT Y FOR THE 5
PURPOSE OF: 6
1. ONSITE EMERGENCY BAC KUP AT A FACILITY WH EN 7
SERVICE FROM THE ELE CTRIC COMPANY IS INT ERRUPTED DUE TO ELECTRIC 8
DISTRIBUTION OR TRAN SMISSION SYSTEM FAIL URE OR WHEN THERE IS EQUIPMENT 9
FAILURE AT A SITE WH ERE CRITICAL INFRAST RUCTURE IS LOCATED ; AND 10
2. TEST AND MAINTENANCE OPERATIONS NECESSARY 11
TO ENSURE FUNCTIONAL ITY OF THE GENERATIN G UNIT OR FACILITY I N THE EVENT 12
OF A SERVICE INTERRU PTION FROM THE ELECT RIC COMPANY DUE TO ELECTRIC 13
DISTRIBUTION OR TRAN SMISSION SYSTEM FAIL URE OR WHEN THERE IS EQUIPMENT 14
FAILURE AT A SITE WHER E CRITICAL INFRASTRU CTURE IS LOCATED ; 15
(II) IS INSTALLED WITH EQ UIPMENT THAT PREVENT S THE FLOW 16
OF ELECTRICITY TO TH E ELECTRIC GRID ; AND 17
(III) IS SUBJECT TO A PERM IT TO CONSTRUCT ISSU ED BY THE 18
DEPARTMENT OF THE ENVIRONMENT ; OR AND 19
(IV) IS INSTALLED AT A FA CILITY THAT IS PART OF CRITICAL 20
INFRASTRUCTURE IF TH E FACILITY COMPLIES WITH ALL APPLICABLE 21
REGULATIONS REGARDIN G NOISE LEVEL AND TE STING HOURS; OR 22
(4) A COMBINATION OF TWO OR MORE GENERATING U NITS OR 23
FACILITIES THAT SATISFY ITEM (3) OF THIS SUBSECTION . 24
7–207.2. 25
(a) In this section, “generating station” does not include: 26
(1) a generating unit or facility that: 27
(i) is used for the production of electricity; 28
(ii) has the capacity to produce not more than 2 megawatts of 29
alternating current; and 30 6 SENATE BILL 474
(iii) is installed with equipment that prevents the flow of electricity 1
to the electric grid during time periods when the electric grid is out of service; [or] 2
(2) a combination of two or more generating units or facilities that: 3
(i) are used for the production of electricity from a solar photovoltaic 4
system or an eligible customer–generator that is subject to the provisions of § 7–306 of this 5
title; 6
(ii) are located on the same property or adjacent properties; 7
(iii) have the capacity to produce, when calculated cumulatively for 8
all generating units or facilities on the property or adjacent property, more than 2 9
megawatts but not more than 14 megawatts of alternating current; and 10
(iv) for each individual generating unit or facility: 11
1. has the capacity to produce not more than 2 megawatts of 12
alternating current; 13
2. is separately metered by the electric company; and 14
3. does not export electricity for sale on the wholesale market 15
under an agreement with PJM Interconnection, LLC; 16
(3) A GENERATING UNIT OR FACILITY THAT: 17
(I) IS USED FOR THE PROD UCTION OF ELECTRICIT Y FOR THE 18
PURPOSE OF: 19
1. ONSITE EMERGENCY BAC KUP AT A FACILITY WH EN 20
SERVICE FROM THE ELE CTRIC COMPANY IS INT ERRUPTED DUE TO ELECTRIC 21
DISTRIBUTION OR TRAN SMISSION SYSTEM FAIL URE OR WHEN THERE IS EQUIPMENT 22
FAILURE AT A SITE WH ERE CRITICAL INFRAST RUCTURE IS LOCATED ; AND 23
2. TEST AND MAINTENANCE OPERATIONS NECESSARY 24
TO ENSURE FUNCTIONAL ITY OF THE GENERATIN G UNIT OR FACILITY I N THE EVENT 25
OF A SERVICE INTERRU PTION FROM THE ELECT RIC COMPANY DUE TO ELECTRIC 26
DISTRIBUTION OR TRAN SMISSION SYSTEM FAIL URE OR WHEN THERE IS EQUIPMENT 27
FAILURE AT A SITE WHERE CRITICAL INFRASTRUCT URE IS LOCATED; 28
(II) IS INSTALLED WITH EQ UIPMENT THAT PREVENT S THE FLOW 29
OF ELECTRICITY TO TH E ELECTRIC GRID ; AND 30
SENATE BILL 474 7
(III) IS SUBJECT TO A PERM IT TO CONSTRUCT ISSU ED BY THE 1
DEPARTMENT OF THE ENVIRONMENT ; OR AND 2
(IV) IS INSTALLED AT A FA CILITY THAT IS PART OF CRITICAL 3
INFRASTRUCTURE IF TH E FACILITY COMPLIES WITH ALL APPLICABLE 4
REGULATIONS REGARDIN G NOISE LEVEL AND TE STING HOURS; OR 5
(4) A COMBINATION OF TWO OR MORE GENERATING U NITS OR 6
FACILITIES THAT SATI SFY ITEM (3) OF THIS SUBSECTION . 7
7–207.3. 8
(A) (1) ON OR BEFORE DECEMBER 1, 2025, AND EACH DECEMBER 1 9
THEREAFTER , THE OWNER OR OPERATO R OF A GENERATING UN IT OR FACILITY 10
SPECIFIED UNDER § 7–207(A)(4)(III) OF THIS SUBTITLE SHA LL SUBMIT TO THE 11
DEPARTMENT OF THE ENVIRONMENT A REPORT THAT INCLUDES : 12
(I) DATES ON WHICH THE G ENERATING UNIT OR FA CILITY WAS 13
USED FOR THE PREVIOU S 12 MONTHS; 14
(II) THE LENGTH OF TIME T HE GENERATING UNIT O R FACILITY 15
WAS OPERATED FOR THE PREVIOUS 12 MONTHS; AND 16
(III) FOR EACH INSTANCE THAT THE GE NERATING UNIT OR 17
FACILITY WAS OPERATE D OVER THE PREVIOUS 12 MONTHS, THE REASON THE 18
GENERATING UNIT OR F ACILITY WAS OPERATED . 19
(2) UNLESS THE DEPARTMENT OF THE ENVIRONMENT DETERMINE S 20
THAT THE REPORT REQU IRED UNDER PARAGRAPH (1) OF THIS SUBSECTION POSES 21
A RISK TO CYBERSECUR ITY, NATIONAL SECURITY , OR THE SECURITY OF T HE STATE, 22
THE REPORT: 23
(I) SHALL BE MADE PUBLIC LY AVAILABLE; AND 24
(II) MAY NOT BE REDACTED . 25
(B) ON OR BEFORE DECEMBER 1, 2025, AND EVERY 2 YEARS THEREAFTER , 26
THE MARYLAND ENERGY ADMINISTRATION , IN CONSULTATION WITH THE 27
DEPARTMENT OF COMMERCE AND INDUSTRY REPRESENTATIVES SELE CTED BY THE 28
DEPARTMENT OF COMMERCE, SHALL, IN ACCORDANCE WITH § 2–1257 OF THE 29
STATE GOVERNMENT ARTICLE, SUBMIT A REPORT TO T HE GENERAL ASSEMBLY 30
DETAILING: 31
(1) ADVANCEMENTS IN BACK UP GENERATION TECHNO LOGIES; 32 8 SENATE BILL 474
(2) THE COMMERCIAL AVAIL ABILITY OF NEW BACKU P GENERATION 1
TECHNOLOGIES THAT CA N BE PROCURED ; AND 2
(3) THE AFFORDABILITY OF ADOPTING NEW BACKUP GENERATION 3
TECHNOLOGIES . 4
7–208. 5
(a) (1) In this section the following words have the meanings indicated. 6
(2) “Construction” has the meaning stated in § 7–207 of this subtitle. 7
(3) “GENERATING STATION ” DOES NOT INCLUDE : 8
(I) A GENERATING UNIT OR FACILITY THAT: 9
1. IS USED FOR THE PRODUCTION OF ELECTR ICITY FOR 10
THE PURPOSE OF : 11
A. ONSITE EMERGENCY BAC KUP AT A FACILITY WH EN 12
SERVICE FROM THE ELE CTRIC COMPANY IS INT ERRUPTED DUE TO ELECTRIC 13
DISTRIBUTION OR TRAN SMISSION SYSTEM FAIL URE OR WHEN THERE IS EQUIPMENT 14
FAILURE AT A SITE WH ERE CRITICAL INFRASTRUCT URE IS LOCATED; AND 15
B. TEST AND MAINTENANCE OPERATIONS NECESSARY 16
TO ENSURE FUNCTIONAL ITY OF THE GENERATIN G UNIT OR FACILITY I N THE EVENT 17
OF AN INTERRUPTION O F SERVICE FROM THE E LECTRIC COMPANY DUE TO 18
ELECTRIC DISTRIBUTIO N OR TRANS MISSION SYSTEM FAILU RE OR WHEN THERE IS 19
EQUIPMENT FAILURE AT A SITE WHERE CRITICA L INFRASTRUCTURE IS LOCATED; 20
2. IS INSTALLED WITH EQ UIPMENT THAT PREVENT S THE 21
FLOW OF ELECTRICITY TO THE ELECTRIC GRID ; AND 22
3. IS SUBJECT TO A PERM IT TO CONSTRUCT ISSU ED BY 23
THE DEPARTMENT OF THE ENVIRONMENT ; OR AND 24
4. IS INSTALLED AT A FA CILITY THAT IS PART OF 25
CRITICAL INFRASTRUCT URE IF THE FACILITY COMPLIES WITH ALL AP PLICABLE 26
REGULATIONS REGARDIN G NOISE LEVEL AND TE STING HOURS; OR 27
(II) A COMBINATION OF TWO OR MORE GENERATING U NITS OR 28
FACILITIES THAT SATI SFY ITEM (I) OF THIS PARAGRAPH . 29
SENATE BILL 474 9
[(3)] (4) “Qualified offshore wind project” has the meaning stated in § 1
7–701 of this title. 2
[(4)] (5) “Qualified submerged renewable energy line” means: 3
(i) a line carrying electricity supply and connecting a qualified 4
offshore wind project to the transmission system; and 5
(ii) a line in which the portions of the line crossing any submerged 6
lands or any part of a beach erosion control district are buried or submerged. 7
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect July 8
1, 2024. 9
Approved:
________________________________________________________________________________
Governor.
________________________________________________________________________________
President of the Senate.
________________________________________________________________________________
Speaker of the House of Delegates.