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.
Italics indicate opposite chamber/conference committee amendments.
*sb0474*
SENATE BILL 474
C5 (4lr4580)
ENROLLED BILL
— Education, Energy, and the Environment/Economic Matters —
Introduced 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
Read and Examined by Proofreaders:
_______________________________________________
Proofreader.
_______________________________________________
Proofreader.
Sealed with the Great Seal and presented to the Governor, for his approval this
_______ day of _______________ at ________________________ o’clock, ________M.
______________________________________________
President.
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; altering the distribution of income tax revenue from corporations that 10
is attributable to certain data centers; and generally relating to generating stations. 11
2 SENATE BILL 474
BY repealing and reenacting, without amendments, 1
Article – Public Utilities 2
Section 1–101(a) and 7–207(a)(1) 3
Annotated Code of Maryland 4
(2020 Replacement Volume and 2023 Supplement) 5
BY adding to 6
Article – Public Utilities 7
Section 1–101(h–1) and 7–207.3 8
Annotated Code of Maryland 9
(2020 Replacement Volume and 2023 Supplement) 10
BY repealing and reenacting, with amendments, 11
Article – Public Utilities 12
Section 1–101(h–1), 7–207(a)(4), 7–207.1(a), 7–207.2(a), and 7–208(a) 13
Annotated Code of Maryland 14
(2020 Replacement Volume and 2023 Supplement) 15
BY repealing and reenacting, without amendments, 16
Article – State Government 17
Section 9–20B–05(a) 18
Annotated Code of Maryland 19
(2021 Replacement Volume and 2023 Supplement) 20
BY repealing and reenacting, with amendments, 21
Article – State Government 22
Section 9–20B–05(e) 23
Annotated Code of Maryland 24
(2021 Replacement Volume and 2023 Supplement) 25
BY adding to 26
Article – Tax – General 27
Section 2–614.1 28
Annotated Code of Maryland 29
(2022 Replacement Volume and 2023 Supplement) 30
BY repealing and reenacting, with amendments, 31
Article – Tax – General 32
Section 2–615 33
Annotated Code of Maryland 34
(2022 Replacement Volume and 2023 Supplement) 35
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 36
That the Laws of Maryland read as follows: 37
Article – Public Utilities 38
SENATE BILL 474 3
1–101. 1
(a) In this division the following words have the meanings indicated. 2
(H–1) (1) “CRITICAL INFRASTRUCTU RE” MEANS ASSETS, SYSTEMS, AND 3
NETWORKS, WHETHER PHYSICAL OR VIRTUAL, CONSIDERED BY THE U.S. 4
DEPARTMENT OF HOMELAND SECURITY TO BE SO VIT AL TO THE UNITED STATES 5
THAT THEIR INCAPACIT ATION OR DESTRUCTION WOULD HAVE A DEBILIT ATING 6
EFFECT ON ONE OR MOR E OF THE FOLLOWI NG: 7
(I) SECURITY; 8
(II) NATIONAL ECONOMIC SE CURITY; 9
(III) NATIONAL PUBLIC HEAL TH; OR 10
(IV) SAFETY. 11
(2) “CRITICAL INFRASTRUCTU RE” INCLUDES: 12
(I) A HOSPITAL OR HEALTH CARE FACILITY; AND 13
(II) A DATA CENTER AS DEF INED IN § 11–239 OF THE TAX – 14
GENERAL ARTICLE. 15
[(h–1)] (H–2) “Cybersecurity” has the meaning stated in § 3.5–301 of the State 16
Finance and Procurement Article. 17
7–207. 18
(a) (1) In this section the following words have the meanings indicated. 19
(4) “Generating station” does not include: 20
(i) a generating unit or facility that: 21
1. is used for the production of electricity; 22
2. has the capacity to produce not more than 2 megawatts of 23
alternating current; and 24
3. is installed with equipment that prevents the flow of 25
electricity to the electric grid during time periods when the electric grid is out of service; 26
[or] 27
4 SENATE BILL 474
(ii) a combination of two or more generating units or facilities that: 1
1. are used for the production of electricity from a solar 2
photovoltaic system or an eligible customer–generator that is subject to the provisions of § 3
7–306 of this title; 4
2. are located on the same property or adjacent properties; 5
3. have the capacity to produce, wh en calculated 6
cumulatively for all generating units or facilities on the property or adjacent property, more 7
than 2 megawatts but not more than 14 megawatts of alternating current; and 8
4. for each individual generating unit or facility: 9
A. has the capacity to produce not more than 2 megawatts of 10
alternating current; 11
B. is separately metered by the electric company; and 12
C. does not export electricity for sale on the wholesale market 13
under an agreement with PJM Interconnection, LLC; 14
(III) A GENERATING UNIT OR FACILITY THAT: 15
1. IS USED FOR THE PROD UCTION OF ELECTRICIT Y FOR 16
THE PURPOSE OF : 17
A. ONSITE EMERGENCY BAC KUP AT A FACILITY WH EN 18
SERVICE FROM THE ELE CTRIC COMPANY IS INT ERRUPTED DUE TO ELECTRIC 19
DISTRIBUTION OR TRAN SMISSION SYSTEM FAILURE OR WHEN THERE IS EQUIPM ENT 20
FAILURE AT A SITE WH ERE CRITICAL INFRAST RUCTURE IS LOCATED ; AND 21
B. TEST AND MAINTENANCE OPERATIONS NECESSARY 22
TO ENSURE FUNCTIONAL ITY OF THE GENERATIN G UNIT OR FACILITY I N THE EVENT 23
OF A SERVICE INTERRU PTION FROM THE ELECTRIC CO MPANY DUE TO ELECTRIC 24
DISTRIBUTION OR TRAN SMISSION SYSTEM FAIL URE OR WHEN THERE IS EQUIPMENT 25
FAILURE AT A SITE WH ERE CRITICAL INFRAST RUCTURE IS LOCATED ; 26
2. IS INSTALLED WITH EQ UIPMENT THAT PREVENT S THE 27
FLOW OF ELECTRICITY TO THE ELECTRIC GRID; AND 28
3. IS SUBJECT TO A PERM IT TO CONSTRUCT ISSU ED BY 29
THE DEPARTMENT OF THE ENVIRONMENT ; OR AND 30
SENATE BILL 474 5
4. IS INSTALLED AT A FA CILITY THAT IS PART OF 1
CRITICAL INFRASTRUCT URE IF THE FACILITY COMPLIES WITH ALL AP PLICABLE 2
REGULATIONS REGARDIN G NOISE LEVEL AND TEST ING HOURS; OR 3
(IV) A COMBINATION OF TWO OR MORE GENERATING U NITS OR 4
FACILITIES THAT SATI SFY ITEM (III) OF THIS PARAGRAPH . 5
7–207.1. 6
(a) In this section, “generating station” does not include: 7
(1) a generating unit or facility that: 8
(i) is used for the production of electricity; 9
(ii) has the capacity to produce not more than 2 megawatts of 10
alternating current; and 11
(iii) is installed with equipment that prevents the flow of electricity 12
to the electric grid during time periods when the electric grid is out of service; [or] 13
(2) a combination of two or more generating units or facilities that: 14
(i) are used for the production of electricity from a solar photovoltaic 15
system or an eligible customer–generator that is subject to the provisions of § 7–306 of this 16
title; 17
(ii) are located on the same property or adjacent properties; 18
(iii) have the capacity to produce, when calculated cumulatively for 19
all generating units or facilities on the property or adjacent property, more than 2 20
megawatts but not more than 14 megawatts of alternating current; and 21
(iv) for each individual generating unit or facility: 22
1. has the capacity to produce not more than 2 megawatts of 23
alternating current; 24
2. is separately metered by the electric company; and 25
3. does not export electricity for sale on the wholesale market 26
under an agreement with PJM Interconnection, LLC; 27
(3) A GENERATING UNIT OR FACILITY THAT: 28
6 SENATE BILL 474
(I) IS USED FOR THE PROD UCTION OF ELECTRICIT Y FOR THE 1
PURPOSE OF: 2
1. ONSITE EMERGENCY BAC KUP AT A FACILITY WH EN 3
SERVICE FROM THE ELE CTRIC COMPANY IS INT ERRUPTED DUE TO ELECTRIC 4
DISTRIBUTION OR TRAN SMISSION SYSTEM FAIL URE OR WHEN THERE IS EQUIPMENT 5
FAILURE AT A SITE WH ERE CRITICAL INFRAST RUCTURE IS LOCAT ED; AND 6
2. TEST AND MAINTENANCE OPERATIONS NECESSARY 7
TO ENSURE FUNCTIONAL ITY OF THE GENERATIN G UNIT OR FACILITY I N THE EVENT 8
OF A SERVICE INTERRU PTION FROM THE ELECT RIC COMPANY DUE TO ELECTRIC 9
DISTRIBUTION OR TRAN SMISSION SYSTEM FAIL URE OR WHEN THERE IS EQUIPMENT 10
FAILURE AT A SITE WH ERE CRITICAL INFRAST RUCTURE IS LOCATED ; 11
(II) IS INSTALLED WITH EQ UIPMENT THAT PREVENT S THE FLOW 12
OF ELECTRICITY TO TH E ELECTRIC GRID ; AND 13
(III) IS SUBJECT TO A PERM IT TO CONSTRUCT ISSU ED BY THE 14
DEPARTMENT OF THE ENVIRONMENT; OR AND 15
(IV) IS INSTALLED AT A FA CILITY THAT IS PART OF CRITICAL 16
INFRASTRUCTURE IF TH E FACILITY COMPLIES WITH ALL APPLICABLE 17
REGULATIONS REGARDIN G NOISE LEVEL AND TE STING HOURS; 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
(2) a combination of two or more generating units or facilities that: 29
SENATE BILL 474 7
(i) are used for the production of electricity from a solar photovoltaic 1
system or an eligible customer–generator that is subject to the provisions of § 7–306 of this 2
title; 3
(ii) are located on the same property or adjacent properties; 4
(iii) have the capacity to produce, when calculated cumulatively for 5
all generating units or facilities on the property or adjacent property, more than 2 6
megawatts but not more than 14 megawatts of alternating current; and 7
(iv) for each individual generating unit or facility: 8
1. has the capacity to produce not more than 2 megawatts of 9
alternating current; 10
2. is separately metered by the electric company; and 11
3. does not export electricity for sale on the wholesale market 12
under an agreement with PJM Interconnection, LLC; 13
(3) A GENERATING UNIT OR FACILITY THAT: 14
(I) IS USED FOR THE PROD UCTION OF ELECTRICIT Y FOR THE 15
PURPOSE OF: 16
1. ONSITE EMERGENCY BAC KUP AT A FACILITY WH EN 17
SERVICE FROM THE ELE CTRIC COMPA NY IS INTERRUPTED DUE TO ELECTRIC 18
DISTRIBUTION OR TRAN SMISSION SYSTEM FAIL URE OR WHEN THERE IS EQUIPMENT 19
FAILURE AT A SITE WH ERE CRITICAL INFRAST RUCTURE IS LOCATED ; AND 20
2. TEST AND MAINTENANCE OPERATIONS NECESSARY 21
TO ENSURE FUNCTIONAL ITY OF THE GENERATIN G UNIT OR FACILITY I N THE EVENT 22
OF A SERVICE INTERRU PTION FROM THE ELECT RIC COMPANY DUE TO ELECTRIC 23
DISTRIBUTION OR TRAN SMISSION SYSTEM FAIL URE OR WHEN THERE IS EQUIPMENT 24
FAILURE AT A SITE WHERE CRITICAL INFRASTRUCT URE IS LOCATED; 25
(II) IS INSTALLED WITH EQ UIPMENT THAT PREVENT S THE FLOW 26
OF ELECTRICITY TO TH E ELECTRIC GRID ; AND 27
(III) IS SUBJECT TO A PERM IT TO CONSTRUCT ISSU ED BY THE 28
DEPARTMENT OF THE ENVIRONMENT ; OR AND 29
(IV) IS INSTALLED AT A FA CILITY THAT IS PART OF CRITICAL 30
INFRASTRUCTURE IF TH E FACILITY COMPLIES WITH ALL APPLICABLE 31
REGULATIONS REGARDIN G NOISE LEVEL AND TE STING HOURS; OR 32 8 SENATE BILL 474
(4) A COMBINATION OF TWO OR MORE GENERATING U NITS OR 1
FACILITIES THAT SATISFY ITEM (3) OF THIS SUBSECTION . 2
7–207.3. 3
(A) (1) ON OR BEFORE DECEMBER 1, 2025, AND EACH DECEMBER 1 4
THEREAFTER , THE OWNER OR OPERATO R OF A GENERATING UN IT OR FACILITY 5
SPECIFIED UNDER § 7–207(A)(4)(III) OF THIS SUBTITLE SHA LL SUBMIT TO THE 6
DEPARTME NT OF THE ENVIRONMENT A REPORT THAT INCLUDES : 7
(I) DATES ON WHICH THE G ENERATING UNIT OR FA CILITY WAS 8
USED FOR THE PREVIOU S 12 MONTHS; 9
(II) THE LENGTH OF TIME T HE GENERATING UNIT O R FACILITY 10
WAS OPERATED FOR THE PREVIOUS 12 MONTHS; AND 11
(III) FOR EACH INSTANCE THAT T HE GENERATING UNIT O R 12
FACILITY WAS OPERATE D OVER THE PREVIOUS 12 MONTHS, THE REASON THE 13
GENERATING UNIT OR F ACILITY WAS OPERATED . 14
(2) UNLESS THE DEPARTMENT OF THE ENVIRONMENT DETERMINE S 15
THAT THE REPORT REQU IRED UNDER PARAGRAPH (1) OF THIS SUBSECTION PO SES 16
A RISK TO CYBERSECUR ITY, NATIONAL SECURITY , OR THE SECURITY OF T HE STATE, 17
THE REPORT: 18
(I) SHALL BE MADE PUBLIC LY AVAILABLE; AND 19
(II) MAY NOT BE REDACTED . 20
(B) ON OR BEFORE DECEMBER 1, 2025, AND EVERY 2 YEARS THEREAFTER , 21
THE MARYLAND ENERGY ADMINISTRATION , IN CONSULTATION WITH THE 22
DEPARTMENT OF COMMERCE AND INDUSTRY REPRESENTATIVES SELE CTED BY THE 23
DEPARTMENT OF COMMERCE, SHALL, IN ACCORDANCE WITH § 2–1257 OF THE 24
STATE GOVERNMENT ARTICLE, SUBMIT A REPORT TO T HE GENERAL ASSEMBLY 25
DETAILING: 26
(1) ADVANCEMENTS IN BACK UP GENERATION TECHNO LOGIES; 27
(2) THE COMMERCIAL AVAIL ABILITY OF NEW BACKU P GENERATION 28
TECHNOLOGIES THAT CA N BE PROCURED ; AND 29
(3) THE AFFORDABILITY OF ADOPTING NEW BACKUP GENERATION 30
TECHNOLOGIES . 31 SENATE BILL 474 9
7–208. 1
(a) (1) In this section the following words have the meanings indicated. 2
(2) “Construction” has the meaning stated in § 7–207 of this subtitle. 3
(3) “GENERATING STATION ” DOES NOT INCLUDE : 4
(I) A GENERATING UNIT OR FACILITY THAT: 5
1. IS USED FOR THE PRODUCTION OF EL ECTRICITY FOR 6
THE PURPOSE OF : 7
A. ONSITE EMERGENCY BAC KUP AT A FACILITY WH EN 8
SERVICE FROM THE ELE CTRIC COMPANY IS INT ERRUPTED DUE TO ELECTRIC 9
DISTRIBUTION OR TRAN SMISSION SYSTEM FAIL URE OR WHEN THERE IS EQUIPMENT 10
FAILURE AT A SITE W HERE CRITICAL INFRAS TRUCTURE IS LOCATED ; AND 11
B. TEST AND MAINTENANCE OPERATIONS NECESSARY 12
TO ENSURE FUNCTIONAL ITY OF THE GENERATIN G UNIT OR FACILITY I N THE EVENT 13
OF AN INTERRUPTION O F SERVICE FROM THE E LECTRIC COMPANY DUE TO 14
ELECTRIC DISTRIBUTIO N OR TRANSMISSION SYSTEM F AILURE OR WHEN THERE IS 15
EQUIPMENT FAILURE AT A SITE WHERE CRITICA L INFRASTRUCTURE IS LOCATED; 16
2. IS INSTALLED WITH EQ UIPMENT THAT PREVENT S THE 17
FLOW OF ELECTRICITY TO THE ELECTRIC GRID ; AND 18
3. IS SUBJECT TO A PERM IT TO CONSTRU CT ISSUED BY 19
THE DEPARTMENT OF THE ENVIRONMENT ; OR AND 20
4. IS INSTALLED AT A FA CILITY THAT IS PART OF 21
CRITICAL INFRASTRUCT URE IF THE FACILITY COMPLIES WITH ALL AP PLICABLE 22
REGULATIONS REGARDIN G NOISE LEVEL AND TE STING HOURS; OR 23
(II) A COMBINATION O F TWO OR MORE GENERA TING UNITS OR 24
FACILITIES THAT SATI SFY ITEM (I) OF THIS PARAGRAPH . 25
[(3)] (4) “Qualified offshore wind project” has the meaning stated in § 26
7–701 of this title. 27
[(4)] (5) “Qualified submerged renewable energy line” means: 28
(i) a line carrying electricity supply and connecting a qualified 29
offshore wind project to the transmission system; and 30 10 SENATE BILL 474
(ii) a line in which the portions of the line crossing any submerged 1
lands or any part of a beach erosion control district are buried or submerged. 2
Article – State Government 3
9–20B–05. 4
(a) There is a Maryland Strategic Energy Investment Fund. 5
(e) The Fund consists of: 6
(1) all of the proceeds from the sale of allowances under § 2–1002(g) of the 7
Environment Article; 8
(2) money appropriated in the State budget to the Program; 9
(3) repayments and prepayments of principal and interest on loans made 10
from the Fund; 11
(4) interest and investment earnings on the Fund; 12
(5) compliance fees paid under § 7–705 of the Public Utilities Article; 13
(6) money received from any public or private source for the benefit of the 14
Fund; [and] 15
(7) money transferred from the Public Service Commission under § 16
7–207.2(c)(3) of the Public Utilities Article; AND 17
(8) MONEY DISTRIBUTED UN DER § 2–614.1 OF THE TAX – GENERAL 18
ARTICLE. 19
Article – Tax – General 20
2–614.1. 21
(A) IN THIS SECTION , “QUALIFIED DATA CENTE R” HAS THE MEANING 22
STATED IN § 11–239 OF THIS ARTICLE. 23
(B) AFTER MAKING THE DIST RIBUTIONS REQUIRED U NDER §§ 2–613, 24
2–613.1, AND 2–614 OF THIS SUBTITLE, THE COMPTROLLER SHALL DIS TRIBUTE 15% 25
OF THE REMAINING INC OME TAX REVENUE FROM CORPORATIONS THAT IS 26
ATTRIBUTABLE TO QUAL IFIED DATA CENTERS T HAT ARE OPERATIONAL ON OR AFTER 27
JANUARY 1, 2026, TO THE STRATEGIC ENERGY INVESTMENT FUND ESTABLISHED 28
UNDER § 9–20B–05 OF THE STATE GOVERNMENT ARTICLE. 29 SENATE BILL 474 11
2–615. 1
After making the distributions required under §§ 2–613, 2–613.1, [and] 2–614, AND 2
2–614.1 of this subtitle, the Comptroller shall distribute the remaining income tax revenue 3
from corporations to the General Fund of the State. 4
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect July 5
1, 2024. 6
Approved:
________________________________________________________________________________
Governor.
________________________________________________________________________________
President of the Senate.
________________________________________________________________________________
Speaker of the House of Delegates.