WES MOORE, Governor Ch. 411
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Chapter 411
(Senate Bill 474)
AN ACT concerning
Certificate of Public Convenience and Necessity and Related Approvals –
Definition of Generating Station
(Critical Infrastructure Streamlining Act of 2024)
FOR the purpose of altering and establishing the definition of “generating station” for the
purpose of exempting the construction of certain generating facilities used to produce
electricity for the purpose of onsite emergency backup and certain test and
maintenance operations from the requirement to obtain a certificate of public
convenience and necessity or certain other related approvals under certain
circumstances; altering the distribution of income tax revenue from corporations that
is attributable to certain data centers; and generally relating to generating stations.
BY repealing and reenacting, without amendments,
Article – Public Utilities
Section 1–101(a) and 7–207(a)(1)
Annotated Code of Maryland
(2020 Replacement Volume and 2023 Supplement)
BY adding to
Article – Public Utilities
Section 1–101(h–1) and 7–207.3
Annotated Code of Maryland
(2020 Replacement Volume and 2023 Supplement)
BY repealing and reenacting, with amendments,
Article – Public Utilities
Section 1–101(h–1), 7–207(a)(4), 7–207.1(a), 7–207.2(a), and 7–208(a)
Annotated Code of Maryland
(2020 Replacement Volume and 2023 Supplement)
BY repealing and reenacting, without amendments,
Article – State Government
Section 9–20B–05(a)
Annotated Code of Maryland
(2021 Replacement Volume and 2023 Supplement)
BY repealing and reenacting, with amendments,
Article – State Government
Section 9–20B–05(e)
Annotated Code of Maryland
(2021 Replacement Volume and 2023 Supplement) Ch. 411 2024 LAWS OF MARYLAND
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BY adding to
Article – Tax – General
Section 2–614.1
Annotated Code of Maryland
(2022 Replacement Volume and 2023 Supplement)
BY repealing and reenacting, with amendments,
Article – Tax – General
Section 2–615
Annotated Code of Maryland
(2022 Replacement Volume and 2023 Supplement)
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND,
That the Laws of Maryland read as follows:
Article – Public Utilities
1–101.
(a) In this division the following words have the meanings indicated.
(H–1) (1) “CRITICAL INFRASTRUCTU RE” MEANS ASSETS , SYSTEMS, AND
NETWORKS, WHETHER PHYSICAL OR VIRTUAL, CONSIDERED BY THE U.S.
DEPARTMENT OF HOMELAND SECURITY TO BE SO VIT AL TO THE UNITED STATES
THAT THEIR INCAPACIT ATION OR DESTRUCTION WOULD HAVE A D EBILITATING
EFFECT ON ONE OR MOR E OF THE FOLLOWING :
(I) SECURITY;
(II) NATIONAL ECONOMIC SE CURITY;
(III) NATIONAL PUBLIC HEAL TH; OR
(IV) SAFETY.
(2) “CRITICAL INFRASTRUCTU RE” INCLUDES:
(I) A HOSPITAL OR HEALTH CARE FACILITY; AND
(II) A DATA CENTER AS DEF INED IN § 11–239 OF THE TAX –
GENERAL ARTICLE.
[(h–1)] (H–2) “Cybersecurity” has the meaning stated in § 3.5–301 of the State
Finance and Procurement Article. WES MOORE, Governor Ch. 411
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7–207.
(a) (1) In this section the following words have the meanings indicated.
(4) “Generating station” does not include:
(i) a generating unit or facility that:
1. is used for the production of electricity;
2. has the capacity to produce not more than 2 megawatts of
alternating current; and
3. is installed with equipment that prevents the flow of
electricity to the electric grid during time periods when the electric grid is out of service;
[or]
(ii) a combination of two or more generating units or facilities that:
1. are used for the production of electricity from a solar
photovoltaic system or an eligible customer–generator that is subject to the provisions of §
7–306 of this title;
2. are located on the same property or adjacent properties;
3. have the capacity to produce, wh en calculated
cumulatively for all generating units or facilities on the property or adjacent property, more
than 2 megawatts but not more than 14 megawatts of alternating current; and
4. for each individual generating unit or facility:
A. has the capacity to produce not more than 2 megawatts of
alternating current;
B. is separately metered by the electric company; and
C. does not export electricity for sale on the wholesale market
under an agreement with PJM Interconnection, LLC;
(III) A GENERATING UNIT OR FACILITY THAT:
1. IS USED FOR THE PROD UCTION OF ELECTRICIT Y FOR
THE PURPOSE OF :
Ch. 411 2024 LAWS OF MARYLAND
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A. ONSITE EMERGENCY BAC KUP AT A FACILITY WH EN
SERVICE FROM THE ELE CTRIC COMPANY IS INT ERRUPTED DUE TO ELECTRIC
DISTRIBUTION OR TRAN SMISSION SYSTEM FAILURE OR WH EN THERE IS EQUIPMEN T
FAILURE AT A SITE WH ERE CRITICAL INFRAST RUCTURE IS LOCATED ; AND
B. TEST AND MAINTENANCE OPERATIONS NECESSARY
TO ENSURE FUNCTIONAL ITY OF THE GENERATIN G UNIT OR FACILITY I N THE EVENT
OF A SERVICE INTERRU PTION FROM THE ELECTRIC COMP ANY DUE TO ELECTRIC
DISTRIBUTION OR TRAN SMISSION SYSTEM FAIL URE OR WHEN THERE IS EQUIPMENT
FAILURE AT A SITE WH ERE CRITICAL INFRAST RUCTURE IS LOCATED ;
2. IS INSTALLED WITH EQ UIPMENT THAT PREVENT S THE
FLOW OF ELECTRICITY TO THE ELECTRIC GRID ; AND
3. IS SUBJECT TO A PERM IT TO CONSTRUCT ISSU ED BY
THE DEPARTMENT OF THE ENVIRONMENT ; OR AND
4. IS INSTALLED AT A FA CILITY THAT IS PART OF
CRITICAL INFRASTRUCTURE IF TH E FACILITY COMPLIES WITH ALL APPLICABLE
REGULATIONS REGARDIN G NOISE LEVEL AND TE STING HOURS; OR
(IV) A COMBINATION OF TWO OR MORE GENERATING U NITS OR
FACILITIES THAT SATI SFY ITEM (III) OF THIS PARAGRAPH .
7–207.1.
(a) In this section, “generating station” does not include:
(1) a generating unit or facility that:
(i) is used for the production of electricity;
(ii) has the capacity to produce not more than 2 megawatts of
alternating current; and
(iii) is installed with equipment that prevents the flow of electricity
to the electric grid during time periods when the electric grid is out of service; [or]
(2) a combination of two or more generating units or facilities that:
(i) are used for the production of electricity from a solar photovoltaic
system or an eligible customer–generator that is subject to the provisions of § 7–306 of this
title;
WES MOORE, Governor Ch. 411
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(ii) are located on the same property or adjacent properties;
(iii) have the capacity to produce, when calculated cumulatively for
all generating units or facilities on the property or adjacent property, more than 2
megawatts but not more than 14 megawatts of alternating current; and
(iv) for each individual generating unit or facility:
1. has the capacity to produce not more than 2 megawatts of
alternating current;
2. is separately metered by the electric company; and
3. does not export electricity for sale on the wholesale market
under an agreement with PJM Interconnection, LLC;
(3) A GENERATING UNIT OR FACILITY THA T:
(I) IS USED FOR THE PROD UCTION OF ELECTRICIT Y FOR THE
PURPOSE OF:
1. ONSITE EMERGENCY BAC KUP AT A FACILITY WH EN
SERVICE FROM THE ELE CTRIC COMPANY IS INT ERRUPTED DUE TO ELECTRIC
DISTRIBUTION OR TRAN SMISSION SYSTEM FAIL URE OR WHEN THERE IS EQUIPM ENT
FAILURE AT A SITE WH ERE CRITICAL INFRAST RUCTURE IS LOCATED ; AND
2. TEST AND MAINTENANCE OPERATIONS NECESSARY
TO ENSURE FUNCTIONAL ITY OF THE GENERATIN G UNIT OR FACILITY I N THE EVENT
OF A SERVICE INTERRU PTION FROM THE ELECT RIC COMPANY DUE TO ELECTRIC
DISTRIBUTION OR TRAN SMISSION SYSTEM FAIL URE OR WHEN THERE IS EQUIPMENT
FAILURE AT A SITE WH ERE CRITICAL INFRAST RUCTURE IS LOCATED ;
(II) IS INSTALLED WITH EQ UIPMENT THAT PREVENT S THE FLOW
OF ELECTRICITY TO TH E ELECTRIC GRID ; AND
(III) IS SUBJECT TO A PERM IT TO CONSTRUCT ISSU ED BY THE
DEPARTMENT OF THE ENVIRONMENT ; OR AND
(IV) IS INSTALLED AT A FA CILITY THAT IS PART OF CRITICAL
INFRASTRUCTURE IF TH E FACILITY COMPLIES WITH ALL APPLICABLE
REGULATIONS REGARDIN G NOISE LEVEL AND TESTING HOURS ; OR
(4) A COMBINATION OF TWO OR MORE GENERATING U NITS OR
FACILITIES THAT SATI SFY ITEM (3) OF THIS SUBSECTION .
Ch. 411 2024 LAWS OF MARYLAND
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7–207.2.
(a) In this section, “generating station” does not include:
(1) a generating unit or facility that:
(i) is used for the production of electricity;
(ii) has the capacity to produce not more than 2 megawatts of
alternating current; and
(iii) is installed with equipment that prevents the flow of electricity
to the electric grid during time periods when the electric grid is out of service; [or]
(2) a combination of two or more generating units or facilities that:
(i) are used for the production of electricity from a solar photovoltaic
system or an eligible customer–generator that is subject to the provisions of § 7–306 of this
title;
(ii) are located on the same property or adjacent properties;
(iii) have the capacity to produce, when calculated cumulatively for
all generating units or facilities on the property or adjacent property, more than 2
megawatts but not more than 14 megawatts of alternating current; and
(iv) for each individual generating unit or facility:
1. has the capacity to produce not more than 2 megawatts of
alternating current;
2. is separately metered by the electric company; and
3. does not export electricity for sale on the wholesale market
under an agreement with PJM Interconnection, LLC;
(3) A GENERATING UNIT OR FACILITY THAT:
(I) IS USED FOR THE PROD UCTION OF ELECTRICIT Y FOR THE
PURPOSE OF:
1. ONSITE EMERGENCY BAC KUP AT A FACILITY WH EN
SERVICE FROM THE ELE CTRIC COMPANY IS INT ERRUPTED DUE TO ELECTRIC
DISTRIBUTION OR TRAN SMISSION SYSTEM FAIL URE OR WHEN THERE IS EQUIPMENT
FAILURE AT A SITE WH ERE CRITICAL INFRAST RUCTURE IS LOCATED ; AND WES MOORE, Governor Ch. 411
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2. TEST AND MAINTENANCE OPERATIONS NECESSARY
TO ENSURE FUNCTIONAL ITY OF THE GENERATIN G UNIT OR FACILITY I N THE EVENT
OF A SERVICE INTERRU PTION FROM THE ELECT RIC COMPANY DUE TO ELECTRIC
DISTRIBUTION OR TRAN SMISSION SYSTEM FAIL URE OR WHEN THERE IS EQUIPMENT
FAILURE AT A SITE WHERE CRITICAL INFRASTRUCT URE IS LOCATED;
(II) IS INSTALLED WITH EQ UIPMENT THAT PREVENT S THE FLOW
OF ELECTRICITY TO TH E ELECTRIC GRID ; AND
(III) IS SUBJECT TO A PERM IT TO CONSTRUCT ISSU ED BY THE
DEPARTMENT OF THE ENVIRONMENT ; OR AND
(IV) IS INSTALLED AT A FA CILITY THAT IS PART OF CRITICAL
INFRASTRUCTURE IF TH E FACILITY COMPLIES WITH ALL APPLICABLE
REGULATIONS REGARDIN G NOISE LEVEL AND TE STING HOURS; OR
(4) A COMBINATION OF TWO OR MORE GENERATING U NITS OR
FACILITIES THAT SATI SFY ITEM (3) OF THIS SUBSECTION .
7–207.3.
(A) (1) ON OR BEFORE DECEMBER 1, 2025, AND EACH DECEMBER 1
THEREAFTER , THE OWNER OR OPERATO R OF A GENERATING UN IT OR FACILITY
SPECIFIED UNDER § 7–207(A)(4)(III) OF THIS SUBTITLE SHA LL SUBMIT TO THE
DEPARTMENT OF THE ENVIRONMENT A REPORT THAT INCLUDES :
(I) DATES ON WHICH THE G ENERATING UNIT OR FA CILITY WAS
USED FOR THE PREVIOU S 12 MONTHS;
(II) THE LENGTH OF TIME T HE GENERATING UNIT O R FACILITY
WAS OPERATED FOR THE PREVIOUS 12 MONTHS; AND
(III) FOR EACH INSTANCE THAT THE GE NERATING UNIT OR
FACILITY WAS OPERATE D OVER THE PREVIOUS 12 MONTHS, THE REASON THE
GENERATING UNIT OR F ACILITY WAS OPERATED .
(2) UNLESS THE DEPARTMENT OF THE ENVIRONMENT DETERMINE S
THAT THE REPORT REQU IRED UNDER PARAGRAPH (1) OF THIS SUBSECTION POSES
A RISK TO CYBERSECUR ITY, NATIONAL SECURITY , OR THE SECURITY OF T HE STATE,
THE REPORT:
(I) SHALL BE MADE PUBLIC LY AVAILABLE; AND
Ch. 411 2024 LAWS OF MARYLAND
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(II) MAY NOT BE REDACTED .
(B) ON OR BEFORE DECEMBER 1, 2025, AND EVERY 2 YEARS THEREAFTER ,
THE MARYLAND ENERGY ADMINISTRATION , IN CONSULTATION WITH THE
DEPARTMENT OF COMMERCE AND INDUSTRY REPRESENTATIVES SELE CTED BY THE
DEPARTMENT OF COMMERCE, SHALL, IN ACCORDANCE WITH § 2–1257 OF THE
STATE GOVERNMENT ARTICLE, SUBMIT A REPORT TO T HE GENERAL ASSEMBLY
DETAILING:
(1) ADVANCEMENTS IN BACK UP GENERATION TECHNO LOGIES;
(2) THE COMMERCIAL AVAIL ABILITY OF NEW BACKU P GENERATION
TECHNOLOGIES THAT CA N BE PROCURED ; AND
(3) THE AFFORDABILITY OF ADOPTING NEW BACKUP GENERATION
TECHNOLOGIES .
7–208.
(a) (1) In this section the following words have the meanings indicated.
(2) “Construction” has the meaning stated in § 7–207 of this subtitle.
(3) “GENERATING STATION ” DOES NOT INCLUDE :
(I) A GENERATING UNIT OR FACILITY THAT:
1. IS USED FOR THE PRODUCTION OF ELECTR ICITY FOR
THE PURPOSE OF :
A. ONSITE EMERGENCY BAC KUP AT A FACILITY WH EN
SERVICE FROM THE ELE CTRIC COMPANY IS INT ERRUPTED DUE TO ELECTRIC
DISTRIBUTION OR TRAN SMISSION SYSTEM FAIL URE OR WHEN THERE IS EQUIPMENT
FAILURE AT A SITE WH ERE CRITICAL INFRASTRUCT URE IS LOCATED; AND
B. TEST AND MAINTENANCE OPERATIONS NECESSARY
TO ENSURE FUNCTIONAL ITY OF THE GENERATIN G UNIT OR FACILITY I N THE EVENT
OF AN INTERRUPTION O F SERVICE FROM THE E LECTRIC COMPANY DUE TO
ELECTRIC DISTRIBUTIO N OR TRANS MISSION SYSTEM FAILU RE OR WHEN THERE IS
EQUIPMENT FAILURE AT A SITE WHERE CRITICA L INFRASTRUCTURE IS LOCATED;
2. IS INSTALLED WITH EQ UIPMENT THAT PREVENT S THE
FLOW OF ELECTRICITY TO THE ELECTRIC GRID ; AND
WES MOORE, Governor Ch. 411
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3. IS SUBJECT TO A PERM IT TO CONSTRUCT ISSU ED BY
THE DEPARTMENT OF THE ENVIRONMENT ; OR AND
4. IS INSTALLED AT A FA CILITY THAT IS PART OF
CRITICAL INFRASTRUCT URE IF THE FACILITY COMPLIES WITH ALL AP PLICABLE
REGULATIONS REGARDIN G NOISE LEVEL AND TE STING HOURS; OR
(II) A COMBINATION OF TWO OR MORE GENERATING U NITS OR
FACILITIES THAT SATI SFY ITEM (I) OF THIS PARAGRAPH .
[(3)] (4) “Qualified offshore wind project” has the meaning stated in §
7–701 of this title.
[(4)] (5) “Qualified submerged renewable energy line” means:
(i) a line carrying electricity supply and connecting a qualified
offshore wind project to the transmission system; and
(ii) a line in which the portions of the line crossing any submerged
lands or any part of a beach erosion control district are buried or submerged.
Article – State Government
9–20B–05.
(a) There is a Maryland Strategic Energy Investment Fund.
(e) The Fund consists of:
(1) all of the proceeds from the sale of allowances under § 2–1002(g) of the
Environment Article;
(2) money appropriated in the State budget to the Program;
(3) repayments and prepayments of principal and interest on loans made
from the Fund;
(4) interest and investment earnings on the Fund;
(5) compliance fees paid under § 7–705 of the Public Utilities Article;
(6) money received from any public or private source for the benefit of the
Fund; [and]
(7) money transferred from the Public Service Commission under §
7–207.2(c)(3) of the Public Utilities Article; AND Ch. 411 2024 LAWS OF MARYLAND
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(8) MONEY DISTRIBUTED UN DER § 2–614.1 OF THE TAX – GENERAL
ARTICLE.
Article – Tax – General
2–614.1.
(A) IN THIS SECTION , “QUALIFIED DATA CENTE R” HAS THE MEANING
STATED IN § 11–239 OF THIS ARTICLE.
(B) AFTER MAKING THE DIST RIBUTIONS REQUIRED U NDER §§ 2–613,
2–613.1, AND 2–614 OF THIS SUBTITLE, THE COMPTROLLER SHALL DIS TRIBUTE 15%
OF THE REMAINING INC OME TAX REVENUE FROM CORPORATIONS THAT IS
ATTRIBUTABLE TO QUAL IFIED DATA CENTERS T HAT ARE OPERATIONAL ON OR AFTER
JANUARY 1, 2026, TO THE STRATEGIC ENERGY INVESTMENT FUND ESTABLISHED
UNDER § 9–20B–05 OF THE STATE GOVERNMENT ARTICLE.
2–615.
After making the distributions required under §§ 2–613, 2–613.1, [and] 2–614, AND
2–614.1 of this subtitle, the Comptroller shall distribute the remaining income tax revenue
from corporations to the General Fund of the State.
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect July
1, 2024.
Approved by the Governor, May 9, 2024.