Maryland 2024 Regular Session

Maryland Senate Bill SB474 Compare Versions

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1- WES MOORE, Governor Ch. 411
21
3-– 1 –
4-Chapter 411
5-(Senate Bill 474)
62
7-AN ACT concerning
3+EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
4+ [Brackets] indicate matter deleted from existing law.
5+ Underlining indicates amendments to bill.
6+ Strike out indicates matter stricken from the bill by amendment or deleted from the law by
7+amendment.
8+ Italics indicate opposite chamber/conference committee amendments.
9+ *sb0474*
810
9-Certificate of Public Convenience and Necessity and Related Approvals –
10-Definition of Generating Station
11-(Critical Infrastructure Streamlining Act of 2024)
11+SENATE BILL 474
12+C5 (4lr4580)
13+ENROLLED BILL
14+— Education, Energy, and the Environment/Economic Matters —
15+Introduced by The President (By Request – Administration) and Senators
16+Augustine, Bailey, Beidle, Brooks, Carozza, Charles, Corderman, Ferguson,
17+Folden, Gallion, Hershey, Hettleman, Lam, McKay, Ready, Rosapepe,
18+Waldstreicher, and West
1219
13-FOR the purpose of altering and establishing the definition of “generating station” for the
14-purpose of exempting the construction of certain generating facilities used to produce
15-electricity for the purpose of onsite emergency backup and certain test and
16-maintenance operations from the requirement to obtain a certificate of public
17-convenience and necessity or certain other related approvals under certain
18-circumstances; altering the distribution of income tax revenue from corporations that
19-is attributable to certain data centers; and generally relating to generating stations.
20+Read and Examined by Proofreaders:
2021
21-BY repealing and reenacting, without amendments,
22- Article – Public Utilities
23-Section 1–101(a) and 7–207(a)(1)
24- Annotated Code of Maryland
25- (2020 Replacement Volume and 2023 Supplement)
22+_______________________________________________
23+Proofreader.
24+_______________________________________________
25+Proofreader.
2626
27-BY adding to
28- Article – Public Utilities
29-Section 1–101(h–1) and 7–207.3
30- Annotated Code of Maryland
31- (2020 Replacement Volume and 2023 Supplement)
27+Sealed with the Great Seal and presented to the Governor, for his approval this
3228
33-BY repealing and reenacting, with amendments,
34- Article – Public Utilities
35- Section 1–101(h–1), 7–207(a)(4), 7–207.1(a), 7–207.2(a), and 7–208(a)
36- Annotated Code of Maryland
37- (2020 Replacement Volume and 2023 Supplement)
29+_______ day of _______________ at ________________________ o’clock, ________M.
3830
39-BY repealing and reenacting, without amendments,
40- Article – State Government
41- Section 9–20B–05(a)
42- Annotated Code of Maryland
43- (2021 Replacement Volume and 2023 Supplement)
31+______________________________________________
32+President.
4433
45-BY repealing and reenacting, with amendments,
46- Article – State Government
47- Section 9–20B–05(e)
48- Annotated Code of Maryland
49- (2021 Replacement Volume and 2023 Supplement) Ch. 411 2024 LAWS OF MARYLAND
34+CHAPTER ______
5035
51-– 2 –
36+AN ACT concerning 1
5237
53-BY adding to
54- Article – Tax – General
55- Section 2–614.1
56- Annotated Code of Maryland
57- (2022 Replacement Volume and 2023 Supplement)
38+Certificate of Public Convenience and Necessity and Related Approvals – 2
39+Definition of Generating Station 3
40+(Critical Infrastructure Streamlining Act of 2024) 4
5841
59-BY repealing and reenacting, with amendments,
60- Article – Tax – General
61- Section 2–615
62- Annotated Code of Maryland
63- (2022 Replacement Volume and 2023 Supplement)
42+FOR the purpose of altering and establishing the definition of “generating station” for the 5
43+purpose of exempting the construction of certain generating facilities used to produce 6
44+electricity for the purpose of onsite emergency backup and certain test and 7
45+maintenance operations from the requirement to obtain a certificate of public 8
46+convenience and necessity or certain other related approvals under certain 9
47+circumstances; altering the distribution of income tax revenue from corporations that 10
48+is attributable to certain data centers; and generally relating to generating stations. 11
49+ 2 SENATE BILL 474
6450
65- SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND,
66-That the Laws of Maryland read as follows:
6751
68-Article – Public Utilities
52+BY repealing and reenacting, without amendments, 1
53+ Article – Public Utilities 2
54+Section 1–101(a) and 7–207(a)(1) 3
55+ Annotated Code of Maryland 4
56+ (2020 Replacement Volume and 2023 Supplement) 5
6957
70-1–101.
58+BY adding to 6
59+ Article – Public Utilities 7
60+Section 1–101(h–1) and 7–207.3 8
61+ Annotated Code of Maryland 9
62+ (2020 Replacement Volume and 2023 Supplement) 10
7163
72- (a) In this division the following words have the meanings indicated.
64+BY repealing and reenacting, with amendments, 11
65+ Article – Public Utilities 12
66+ Section 1–101(h–1), 7–207(a)(4), 7–207.1(a), 7–207.2(a), and 7–208(a) 13
67+ Annotated Code of Maryland 14
68+ (2020 Replacement Volume and 2023 Supplement) 15
7369
74- (H–1) (1) “CRITICAL INFRASTRUCTU RE” MEANS ASSETS , SYSTEMS, AND
75-NETWORKS, WHETHER PHYSICAL OR VIRTUAL, CONSIDERED BY THE U.S.
76-DEPARTMENT OF HOMELAND SECURITY TO BE SO VIT AL TO THE UNITED STATES
77-THAT THEIR INCAPACIT ATION OR DESTRUCTION WOULD HAVE A D EBILITATING
78-EFFECT ON ONE OR MOR E OF THE FOLLOWING :
70+BY repealing and reenacting, without amendments, 16
71+ Article – State Government 17
72+ Section 9–20B–05(a) 18
73+ Annotated Code of Maryland 19
74+ (2021 Replacement Volume and 2023 Supplement) 20
7975
80- (I) SECURITY;
76+BY repealing and reenacting, with amendments, 21
77+ Article – State Government 22
78+ Section 9–20B–05(e) 23
79+ Annotated Code of Maryland 24
80+ (2021 Replacement Volume and 2023 Supplement) 25
8181
82- (II) NATIONAL ECONOMIC SE CURITY;
82+BY adding to 26
83+ Article – Tax – General 27
84+ Section 2–614.1 28
85+ Annotated Code of Maryland 29
86+ (2022 Replacement Volume and 2023 Supplement) 30
8387
84- (III) NATIONAL PUBLIC HEAL TH; OR
88+BY repealing and reenacting, with amendments, 31
89+ Article – Tax – General 32
90+ Section 2–615 33
91+ Annotated Code of Maryland 34
92+ (2022 Replacement Volume and 2023 Supplement) 35
8593
86- (IV) SAFETY.
94+ SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 36
95+That the Laws of Maryland read as follows: 37
8796
88- (2) “CRITICAL INFRASTRUCTU RE” INCLUDES:
97+Article – Public Utilities 38
98+ SENATE BILL 474 3
8999
90- (I) A HOSPITAL OR HEALTH CARE FACILITY; AND
91100
92- (II) A DATA CENTER AS DEF INED IN § 11–239 OF THE TAX –
93-GENERAL ARTICLE.
101+1–101. 1
94102
95- [(h–1)] (H–2) “Cybersecurity” has the meaning stated in § 3.5–301 of the State
96-Finance and Procurement Article. WES MOORE, Governor Ch. 411
103+ (a) In this division the following words have the meanings indicated. 2
97104
98-– 3 –
105+ (H–1) (1) “CRITICAL INFRASTRUCTU RE” MEANS ASSETS, SYSTEMS, AND 3
106+NETWORKS, WHETHER PHYSICAL OR VIRTUAL, CONSIDERED BY THE U.S. 4
107+DEPARTMENT OF HOMELAND SECURITY TO BE SO VIT AL TO THE UNITED STATES 5
108+THAT THEIR INCAPACIT ATION OR DESTRUCTION WOULD HAVE A DEBILIT ATING 6
109+EFFECT ON ONE OR MOR E OF THE FOLLOWI NG: 7
99110
100-7–207.
111+ (I) SECURITY; 8
101112
102- (a) (1) In this section the following words have the meanings indicated.
113+ (II) NATIONAL ECONOMIC SE CURITY; 9
103114
104- (4) “Generating station” does not include:
115+ (III) NATIONAL PUBLIC HEAL TH; OR 10
105116
106- (i) a generating unit or facility that:
117+ (IV) SAFETY. 11
107118
108- 1. is used for the production of electricity;
119+ (2) “CRITICAL INFRASTRUCTU RE” INCLUDES: 12
109120
110- 2. has the capacity to produce not more than 2 megawatts of
111-alternating current; and
121+ (I) A HOSPITAL OR HEALTH CARE FACILITY; AND 13
112122
113- 3. is installed with equipment that prevents the flow of
114-electricity to the electric grid during time periods when the electric grid is out of service;
115-[or]
123+ (II) A DATA CENTER AS DEF INED IN § 11–239 OF THE TAX – 14
124+GENERAL ARTICLE. 15
116125
117- (ii) a combination of two or more generating units or facilities that:
126+ [(h–1)] (H–2) “Cybersecurity” has the meaning stated in § 3.5–301 of the State 16
127+Finance and Procurement Article. 17
118128
119- 1. are used for the production of electricity from a solar
120-photovoltaic system or an eligible customer–generator that is subject to the provisions of §
121-7–306 of this title;
129+7–207. 18
122130
123- 2. are located on the same property or adjacent properties;
131+ (a) (1) In this section the following words have the meanings indicated. 19
124132
125- 3. have the capacity to produce, wh en calculated
126-cumulatively for all generating units or facilities on the property or adjacent property, more
127-than 2 megawatts but not more than 14 megawatts of alternating current; and
133+ (4) “Generating station” does not include: 20
128134
129- 4. for each individual generating unit or facility:
135+ (i) a generating unit or facility that: 21
130136
131- A. has the capacity to produce not more than 2 megawatts of
132-alternating current;
137+ 1. is used for the production of electricity; 22
133138
134- B. is separately metered by the electric company; and
139+ 2. has the capacity to produce not more than 2 megawatts of 23
140+alternating current; and 24
135141
136- C. does not export electricity for sale on the wholesale market
137-under an agreement with PJM Interconnection, LLC;
142+ 3. is installed with equipment that prevents the flow of 25
143+electricity to the electric grid during time periods when the electric grid is out of service; 26
144+[or] 27
145+ 4 SENATE BILL 474
138146
139- (III) A GENERATING UNIT OR FACILITY THAT:
140147
141- 1. IS USED FOR THE PROD UCTION OF ELECTRICIT Y FOR
142-THE PURPOSE OF :
143- Ch. 411 2024 LAWS OF MARYLAND
148+ (ii) a combination of two or more generating units or facilities that: 1
144149
145-– 4 –
146- A. ONSITE EMERGENCY BAC KUP AT A FACILITY WH EN
147-SERVICE FROM THE ELE CTRIC COMPANY IS INT ERRUPTED DUE TO ELECTRIC
148-DISTRIBUTION OR TRAN SMISSION SYSTEM FAILURE OR WH EN THERE IS EQUIPMEN T
149-FAILURE AT A SITE WH ERE CRITICAL INFRAST RUCTURE IS LOCATED ; AND
150+ 1. are used for the production of electricity from a solar 2
151+photovoltaic system or an eligible customer–generator that is subject to the provisions of § 3
152+7–306 of this title; 4
150153
151- B. TEST AND MAINTENANCE OPERATIONS NECESSARY
152-TO ENSURE FUNCTIONAL ITY OF THE GENERATIN G UNIT OR FACILITY I N THE EVENT
153-OF A SERVICE INTERRU PTION FROM THE ELECTRIC COMP ANY DUE TO ELECTRIC
154-DISTRIBUTION OR TRAN SMISSION SYSTEM FAIL URE OR WHEN THERE IS EQUIPMENT
155-FAILURE AT A SITE WH ERE CRITICAL INFRAST RUCTURE IS LOCATED ;
154+ 2. are located on the same property or adjacent properties; 5
156155
157- 2. IS INSTALLED WITH EQ UIPMENT THAT PREVENT S THE
158-FLOW OF ELECTRICITY TO THE ELECTRIC GRID ; AND
156+ 3. have the capacity to produce, wh en calculated 6
157+cumulatively for all generating units or facilities on the property or adjacent property, more 7
158+than 2 megawatts but not more than 14 megawatts of alternating current; and 8
159159
160- 3. IS SUBJECT TO A PERM IT TO CONSTRUCT ISSU ED BY
161-THE DEPARTMENT OF THE ENVIRONMENT ; OR AND
160+ 4. for each individual generating unit or facility: 9
162161
163- 4. IS INSTALLED AT A FA CILITY THAT IS PART OF
164-CRITICAL INFRASTRUCTURE IF TH E FACILITY COMPLIES WITH ALL APPLICABLE
165-REGULATIONS REGARDIN G NOISE LEVEL AND TE STING HOURS; OR
162+ A. has the capacity to produce not more than 2 megawatts of 10
163+alternating current; 11
166164
167- (IV) A COMBINATION OF TWO OR MORE GENERATING U NITS OR
168-FACILITIES THAT SATI SFY ITEM (III) OF THIS PARAGRAPH .
165+ B. is separately metered by the electric company; and 12
169166
170-7–207.1.
167+ C. does not export electricity for sale on the wholesale market 13
168+under an agreement with PJM Interconnection, LLC; 14
171169
172- (a) In this section, “generating station” does not include:
170+ (III) A GENERATING UNIT OR FACILITY THAT: 15
173171
174- (1) a generating unit or facility that:
172+ 1. IS USED FOR THE PROD UCTION OF ELECTRICIT Y FOR 16
173+THE PURPOSE OF : 17
175174
176- (i) is used for the production of electricity;
175+ A. ONSITE EMERGENCY BAC KUP AT A FACILITY WH EN 18
176+SERVICE FROM THE ELE CTRIC COMPANY IS INT ERRUPTED DUE TO ELECTRIC 19
177+DISTRIBUTION OR TRAN SMISSION SYSTEM FAILURE OR WHEN THERE IS EQUIPM ENT 20
178+FAILURE AT A SITE WH ERE CRITICAL INFRAST RUCTURE IS LOCATED ; AND 21
177179
178- (ii) has the capacity to produce not more than 2 megawatts of
179-alternating current; and
180+ B. TEST AND MAINTENANCE OPERATIONS NECESSARY 22
181+TO ENSURE FUNCTIONAL ITY OF THE GENERATIN G UNIT OR FACILITY I N THE EVENT 23
182+OF A SERVICE INTERRU PTION FROM THE ELECTRIC CO MPANY DUE TO ELECTRIC 24
183+DISTRIBUTION OR TRAN SMISSION SYSTEM FAIL URE OR WHEN THERE IS EQUIPMENT 25
184+FAILURE AT A SITE WH ERE CRITICAL INFRAST RUCTURE IS LOCATED ; 26
180185
181- (iii) is installed with equipment that prevents the flow of electricity
182-to the electric grid during time periods when the electric grid is out of service; [or]
186+ 2. IS INSTALLED WITH EQ UIPMENT THAT PREVENT S THE 27
187+FLOW OF ELECTRICITY TO THE ELECTRIC GRID; AND 28
183188
184- (2) a combination of two or more generating units or facilities that:
189+ 3. IS SUBJECT TO A PERM IT TO CONSTRUCT ISSU ED BY 29
190+THE DEPARTMENT OF THE ENVIRONMENT ; OR AND 30
191+ SENATE BILL 474 5
185192
186- (i) are used for the production of electricity from a solar photovoltaic
187-system or an eligible customer–generator that is subject to the provisions of § 7–306 of this
188-title;
189- WES MOORE, Governor Ch. 411
190193
191-– 5 –
192- (ii) are located on the same property or adjacent properties;
194+ 4. IS INSTALLED AT A FA CILITY THAT IS PART OF 1
195+CRITICAL INFRASTRUCT URE IF THE FACILITY COMPLIES WITH ALL AP PLICABLE 2
196+REGULATIONS REGARDIN G NOISE LEVEL AND TEST ING HOURS; OR 3
193197
194- (iii) have the capacity to produce, when calculated cumulatively for
195-all generating units or facilities on the property or adjacent property, more than 2
196-megawatts but not more than 14 megawatts of alternating current; and
198+ (IV) A COMBINATION OF TWO OR MORE GENERATING U NITS OR 4
199+FACILITIES THAT SATI SFY ITEM (III) OF THIS PARAGRAPH . 5
197200
198- (iv) for each individual generating unit or facility:
201+7–207.1. 6
199202
200- 1. has the capacity to produce not more than 2 megawatts of
201-alternating current;
203+ (a) In this section, “generating station” does not include: 7
202204
203- 2. is separately metered by the electric company; and
205+ (1) a generating unit or facility that: 8
204206
205- 3. does not export electricity for sale on the wholesale market
206-under an agreement with PJM Interconnection, LLC;
207+ (i) is used for the production of electricity; 9
207208
208- (3) A GENERATING UNIT OR FACILITY THA T:
209+ (ii) has the capacity to produce not more than 2 megawatts of 10
210+alternating current; and 11
209211
210- (I) IS USED FOR THE PROD UCTION OF ELECTRICIT Y FOR THE
211-PURPOSE OF:
212+ (iii) is installed with equipment that prevents the flow of electricity 12
213+to the electric grid during time periods when the electric grid is out of service; [or] 13
212214
213- 1. ONSITE EMERGENCY BAC KUP AT A FACILITY WH EN
214-SERVICE FROM THE ELE CTRIC COMPANY IS INT ERRUPTED DUE TO ELECTRIC
215-DISTRIBUTION OR TRAN SMISSION SYSTEM FAIL URE OR WHEN THERE IS EQUIPM ENT
216-FAILURE AT A SITE WH ERE CRITICAL INFRAST RUCTURE IS LOCATED ; AND
215+ (2) a combination of two or more generating units or facilities that: 14
217216
218- 2. TEST AND MAINTENANCE OPERATIONS NECESSARY
219-TO ENSURE FUNCTIONAL ITY OF THE GENERATIN G UNIT OR FACILITY I N THE EVENT
220-OF A SERVICE INTERRU PTION FROM THE ELECT RIC COMPANY DUE TO ELECTRIC
221-DISTRIBUTION OR TRAN SMISSION SYSTEM FAIL URE OR WHEN THERE IS EQUIPMENT
222-FAILURE AT A SITE WH ERE CRITICAL INFRAST RUCTURE IS LOCATED ;
217+ (i) are used for the production of electricity from a solar photovoltaic 15
218+system or an eligible customer–generator that is subject to the provisions of § 7–306 of this 16
219+title; 17
223220
224- (II) IS INSTALLED WITH EQ UIPMENT THAT PREVENT S THE FLOW
225-OF ELECTRICITY TO TH E ELECTRIC GRID ; AND
221+ (ii) are located on the same property or adjacent properties; 18
226222
227- (III) IS SUBJECT TO A PERM IT TO CONSTRUCT ISSU ED BY THE
228-DEPARTMENT OF THE ENVIRONMENT ; OR AND
223+ (iii) have the capacity to produce, when calculated cumulatively for 19
224+all generating units or facilities on the property or adjacent property, more than 2 20
225+megawatts but not more than 14 megawatts of alternating current; and 21
229226
230- (IV) IS INSTALLED AT A FA CILITY THAT IS PART OF CRITICAL
231-INFRASTRUCTURE IF TH E FACILITY COMPLIES WITH ALL APPLICABLE
232-REGULATIONS REGARDIN G NOISE LEVEL AND TESTING HOURS ; OR
227+ (iv) for each individual generating unit or facility: 22
233228
234- (4) A COMBINATION OF TWO OR MORE GENERATING U NITS OR
235-FACILITIES THAT SATI SFY ITEM (3) OF THIS SUBSECTION .
236- Ch. 411 2024 LAWS OF MARYLAND
229+ 1. has the capacity to produce not more than 2 megawatts of 23
230+alternating current; 24
237231
238-– 6 –
239-7–207.2.
232+ 2. is separately metered by the electric company; and 25
240233
241- (a) In this section, “generating station” does not include:
234+ 3. does not export electricity for sale on the wholesale market 26
235+under an agreement with PJM Interconnection, LLC; 27
242236
243- (1) a generating unit or facility that:
237+ (3) A GENERATING UNIT OR FACILITY THAT: 28
238+ 6 SENATE BILL 474
244239
245- (i) is used for the production of electricity;
246240
247- (ii) has the capacity to produce not more than 2 megawatts of
248-alternating current; and
241+ (I) IS USED FOR THE PROD UCTION OF ELECTRICIT Y FOR THE 1
242+PURPOSE OF: 2
249243
250- (iii) is installed with equipment that prevents the flow of electricity
251-to the electric grid during time periods when the electric grid is out of service; [or]
244+ 1. ONSITE EMERGENCY BAC KUP AT A FACILITY WH EN 3
245+SERVICE FROM THE ELE CTRIC COMPANY IS INT ERRUPTED DUE TO ELECTRIC 4
246+DISTRIBUTION OR TRAN SMISSION SYSTEM FAIL URE OR WHEN THERE IS EQUIPMENT 5
247+FAILURE AT A SITE WH ERE CRITICAL INFRAST RUCTURE IS LOCAT ED; AND 6
252248
253- (2) a combination of two or more generating units or facilities that:
249+ 2. TEST AND MAINTENANCE OPERATIONS NECESSARY 7
250+TO ENSURE FUNCTIONAL ITY OF THE GENERATIN G UNIT OR FACILITY I N THE EVENT 8
251+OF A SERVICE INTERRU PTION FROM THE ELECT RIC COMPANY DUE TO ELECTRIC 9
252+DISTRIBUTION OR TRAN SMISSION SYSTEM FAIL URE OR WHEN THERE IS EQUIPMENT 10
253+FAILURE AT A SITE WH ERE CRITICAL INFRAST RUCTURE IS LOCATED ; 11
254254
255- (i) are used for the production of electricity from a solar photovoltaic
256-system or an eligible customer–generator that is subject to the provisions of § 7–306 of this
257-title;
255+ (II) IS INSTALLED WITH EQ UIPMENT THAT PREVENT S THE FLOW 12
256+OF ELECTRICITY TO TH E ELECTRIC GRID ; AND 13
258257
259- (ii) are located on the same property or adjacent properties;
258+ (III) IS SUBJECT TO A PERM IT TO CONSTRUCT ISSU ED BY THE 14
259+DEPARTMENT OF THE ENVIRONMENT; OR AND 15
260260
261- (iii) have the capacity to produce, when calculated cumulatively for
262-all generating units or facilities on the property or adjacent property, more than 2
263-megawatts but not more than 14 megawatts of alternating current; and
261+ (IV) IS INSTALLED AT A FA CILITY THAT IS PART OF CRITICAL 16
262+INFRASTRUCTURE IF TH E FACILITY COMPLIES WITH ALL APPLICABLE 17
263+REGULATIONS REGARDIN G NOISE LEVEL AND TE STING HOURS; OR 18
264264
265- (iv) for each individual generating unit or facility:
265+ (4) A COMBINATION OF TWO OR MORE GENERATING U NITS OR 19
266+FACILITIES THAT SATI SFY ITEM (3) OF THIS SUBSECTION . 20
266267
267- 1. has the capacity to produce not more than 2 megawatts of
268-alternating current;
268+7–207.2. 21
269269
270- 2. is separately metered by the electric company; and
270+ (a) In this section, “generating station” does not include: 22
271271
272- 3. does not export electricity for sale on the wholesale market
273-under an agreement with PJM Interconnection, LLC;
272+ (1) a generating unit or facility that: 23
274273
275- (3) A GENERATING UNIT OR FACILITY THAT:
274+ (i) is used for the production of electricity; 24
276275
277- (I) IS USED FOR THE PROD UCTION OF ELECTRICIT Y FOR THE
278-PURPOSE OF:
276+ (ii) has the capacity to produce not more than 2 megawatts of 25
277+alternating current; and 26
279278
280- 1. ONSITE EMERGENCY BAC KUP AT A FACILITY WH EN
281-SERVICE FROM THE ELE CTRIC COMPANY IS INT ERRUPTED DUE TO ELECTRIC
282-DISTRIBUTION OR TRAN SMISSION SYSTEM FAIL URE OR WHEN THERE IS EQUIPMENT
283-FAILURE AT A SITE WH ERE CRITICAL INFRAST RUCTURE IS LOCATED ; AND WES MOORE, Governor Ch. 411
279+ (iii) is installed with equipment that prevents the flow of electricity 27
280+to the electric grid during time periods when the electric grid is out of service; [or] 28
284281
285-– 7 –
282+ (2) a combination of two or more generating units or facilities that: 29
283+ SENATE BILL 474 7
286284
287- 2. TEST AND MAINTENANCE OPERATIONS NECESSARY
288-TO ENSURE FUNCTIONAL ITY OF THE GENERATIN G UNIT OR FACILITY I N THE EVENT
289-OF A SERVICE INTERRU PTION FROM THE ELECT RIC COMPANY DUE TO ELECTRIC
290-DISTRIBUTION OR TRAN SMISSION SYSTEM FAIL URE OR WHEN THERE IS EQUIPMENT
291-FAILURE AT A SITE WHERE CRITICAL INFRASTRUCT URE IS LOCATED;
292285
293- (II) IS INSTALLED WITH EQ UIPMENT THAT PREVENT S THE FLOW
294-OF ELECTRICITY TO TH E ELECTRIC GRID ; AND
286+ (i) are used for the production of electricity from a solar photovoltaic 1
287+system or an eligible customer–generator that is subject to the provisions of § 7–306 of this 2
288+title; 3
295289
296- (III) IS SUBJECT TO A PERM IT TO CONSTRUCT ISSU ED BY THE
297-DEPARTMENT OF THE ENVIRONMENT ; OR AND
290+ (ii) are located on the same property or adjacent properties; 4
298291
299- (IV) IS INSTALLED AT A FA CILITY THAT IS PART OF CRITICAL
300-INFRASTRUCTURE IF TH E FACILITY COMPLIES WITH ALL APPLICABLE
301-REGULATIONS REGARDIN G NOISE LEVEL AND TE STING HOURS; OR
292+ (iii) have the capacity to produce, when calculated cumulatively for 5
293+all generating units or facilities on the property or adjacent property, more than 2 6
294+megawatts but not more than 14 megawatts of alternating current; and 7
302295
303- (4) A COMBINATION OF TWO OR MORE GENERATING U NITS OR
304-FACILITIES THAT SATI SFY ITEM (3) OF THIS SUBSECTION .
296+ (iv) for each individual generating unit or facility: 8
305297
306-7–207.3.
298+ 1. has the capacity to produce not more than 2 megawatts of 9
299+alternating current; 10
307300
308- (A) (1) ON OR BEFORE DECEMBER 1, 2025, AND EACH DECEMBER 1
309-THEREAFTER , THE OWNER OR OPERATO R OF A GENERATING UN IT OR FACILITY
310-SPECIFIED UNDER § 7–207(A)(4)(III) OF THIS SUBTITLE SHA LL SUBMIT TO THE
311-DEPARTMENT OF THE ENVIRONMENT A REPORT THAT INCLUDES :
301+ 2. is separately metered by the electric company; and 11
312302
313- (I) DATES ON WHICH THE G ENERATING UNIT OR FA CILITY WAS
314-USED FOR THE PREVIOU S 12 MONTHS;
303+ 3. does not export electricity for sale on the wholesale market 12
304+under an agreement with PJM Interconnection, LLC; 13
315305
316- (II) THE LENGTH OF TIME T HE GENERATING UNIT O R FACILITY
317-WAS OPERATED FOR THE PREVIOUS 12 MONTHS; AND
306+ (3) A GENERATING UNIT OR FACILITY THAT: 14
318307
319- (III) FOR EACH INSTANCE THAT THE GE NERATING UNIT OR
320-FACILITY WAS OPERATE D OVER THE PREVIOUS 12 MONTHS, THE REASON THE
321-GENERATING UNIT OR F ACILITY WAS OPERATED .
308+ (I) IS USED FOR THE PROD UCTION OF ELECTRICIT Y FOR THE 15
309+PURPOSE OF: 16
322310
323- (2) UNLESS THE DEPARTMENT OF THE ENVIRONMENT DETERMINE S
324-THAT THE REPORT REQU IRED UNDER PARAGRAPH (1) OF THIS SUBSECTION POSES
325-A RISK TO CYBERSECUR ITY, NATIONAL SECURITY , OR THE SECURITY OF T HE STATE,
326-THE REPORT:
311+ 1. ONSITE EMERGENCY BAC KUP AT A FACILITY WH EN 17
312+SERVICE FROM THE ELE CTRIC COMPA NY IS INTERRUPTED DUE TO ELECTRIC 18
313+DISTRIBUTION OR TRAN SMISSION SYSTEM FAIL URE OR WHEN THERE IS EQUIPMENT 19
314+FAILURE AT A SITE WH ERE CRITICAL INFRAST RUCTURE IS LOCATED ; AND 20
327315
328- (I) SHALL BE MADE PUBLIC LY AVAILABLE; AND
329- Ch. 411 2024 LAWS OF MARYLAND
316+ 2. TEST AND MAINTENANCE OPERATIONS NECESSARY 21
317+TO ENSURE FUNCTIONAL ITY OF THE GENERATIN G UNIT OR FACILITY I N THE EVENT 22
318+OF A SERVICE INTERRU PTION FROM THE ELECT RIC COMPANY DUE TO ELECTRIC 23
319+DISTRIBUTION OR TRAN SMISSION SYSTEM FAIL URE OR WHEN THERE IS EQUIPMENT 24
320+FAILURE AT A SITE WHERE CRITICAL INFRASTRUCT URE IS LOCATED; 25
330321
331-– 8 –
332- (II) MAY NOT BE REDACTED .
322+ (II) IS INSTALLED WITH EQ UIPMENT THAT PREVENT S THE FLOW 26
323+OF ELECTRICITY TO TH E ELECTRIC GRID ; AND 27
333324
334- (B) ON OR BEFORE DECEMBER 1, 2025, AND EVERY 2 YEARS THEREAFTER ,
335-THE MARYLAND ENERGY ADMINISTRATION , IN CONSULTATION WITH THE
336-DEPARTMENT OF COMMERCE AND INDUSTRY REPRESENTATIVES SELE CTED BY THE
337-DEPARTMENT OF COMMERCE, SHALL, IN ACCORDANCE WITH § 2–1257 OF THE
338-STATE GOVERNMENT ARTICLE, SUBMIT A REPORT TO T HE GENERAL ASSEMBLY
339-DETAILING:
325+ (III) IS SUBJECT TO A PERM IT TO CONSTRUCT ISSU ED BY THE 28
326+DEPARTMENT OF THE ENVIRONMENT ; OR AND 29
340327
341- (1) ADVANCEMENTS IN BACK UP GENERATION TECHNO LOGIES;
328+ (IV) IS INSTALLED AT A FA CILITY THAT IS PART OF CRITICAL 30
329+INFRASTRUCTURE IF TH E FACILITY COMPLIES WITH ALL APPLICABLE 31
330+REGULATIONS REGARDIN G NOISE LEVEL AND TE STING HOURS; OR 32 8 SENATE BILL 474
342331
343- (2) THE COMMERCIAL AVAIL ABILITY OF NEW BACKU P GENERATION
344-TECHNOLOGIES THAT CA N BE PROCURED ; AND
345332
346- (3) THE AFFORDABILITY OF ADOPTING NEW BACKUP GENERATION
347-TECHNOLOGIES .
348333
349-7–208.
334+ (4) A COMBINATION OF TWO OR MORE GENERATING U NITS OR 1
335+FACILITIES THAT SATISFY ITEM (3) OF THIS SUBSECTION . 2
350336
351- (a) (1) In this section the following words have the meanings indicated.
337+7–207.3. 3
352338
353- (2) “Construction” has the meaning stated in § 7–207 of this subtitle.
339+ (A) (1) ON OR BEFORE DECEMBER 1, 2025, AND EACH DECEMBER 1 4
340+THEREAFTER , THE OWNER OR OPERATO R OF A GENERATING UN IT OR FACILITY 5
341+SPECIFIED UNDER § 7–207(A)(4)(III) OF THIS SUBTITLE SHA LL SUBMIT TO THE 6
342+DEPARTME NT OF THE ENVIRONMENT A REPORT THAT INCLUDES : 7
354343
355- (3) “GENERATING STATION ” DOES NOT INCLUDE :
344+ (I) DATES ON WHICH THE G ENERATING UNIT OR FA CILITY WAS 8
345+USED FOR THE PREVIOU S 12 MONTHS; 9
356346
357- (I) A GENERATING UNIT OR FACILITY THAT:
347+ (II) THE LENGTH OF TIME T HE GENERATING UNIT O R FACILITY 10
348+WAS OPERATED FOR THE PREVIOUS 12 MONTHS; AND 11
358349
359- 1. IS USED FOR THE PRODUCTION OF ELECTR ICITY FOR
360-THE PURPOSE OF :
350+ (III) FOR EACH INSTANCE THAT T HE GENERATING UNIT O R 12
351+FACILITY WAS OPERATE D OVER THE PREVIOUS 12 MONTHS, THE REASON THE 13
352+GENERATING UNIT OR F ACILITY WAS OPERATED . 14
361353
362- A. ONSITE EMERGENCY BAC KUP AT A FACILITY WH EN
363-SERVICE FROM THE ELE CTRIC COMPANY IS INT ERRUPTED DUE TO ELECTRIC
364-DISTRIBUTION OR TRAN SMISSION SYSTEM FAIL URE OR WHEN THERE IS EQUIPMENT
365-FAILURE AT A SITE WH ERE CRITICAL INFRASTRUCT URE IS LOCATED; AND
354+ (2) UNLESS THE DEPARTMENT OF THE ENVIRONMENT DETERMINE S 15
355+THAT THE REPORT REQU IRED UNDER PARAGRAPH (1) OF THIS SUBSECTION PO SES 16
356+A RISK TO CYBERSECUR ITY, NATIONAL SECURITY , OR THE SECURITY OF T HE STATE, 17
357+THE REPORT: 18
366358
367- B. TEST AND MAINTENANCE OPERATIONS NECESSARY
368-TO ENSURE FUNCTIONAL ITY OF THE GENERATIN G UNIT OR FACILITY I N THE EVENT
369-OF AN INTERRUPTION O F SERVICE FROM THE E LECTRIC COMPANY DUE TO
370-ELECTRIC DISTRIBUTIO N OR TRANS MISSION SYSTEM FAILU RE OR WHEN THERE IS
371-EQUIPMENT FAILURE AT A SITE WHERE CRITICA L INFRASTRUCTURE IS LOCATED;
359+ (I) SHALL BE MADE PUBLIC LY AVAILABLE; AND 19
372360
373- 2. IS INSTALLED WITH EQ UIPMENT THAT PREVENT S THE
374-FLOW OF ELECTRICITY TO THE ELECTRIC GRID ; AND
375- WES MOORE, Governor Ch. 411
361+ (II) MAY NOT BE REDACTED . 20
376362
377-– 9 –
378- 3. IS SUBJECT TO A PERM IT TO CONSTRUCT ISSU ED BY
379-THE DEPARTMENT OF THE ENVIRONMENT ; OR AND
363+ (B) ON OR BEFORE DECEMBER 1, 2025, AND EVERY 2 YEARS THEREAFTER , 21
364+THE MARYLAND ENERGY ADMINISTRATION , IN CONSULTATION WITH THE 22
365+DEPARTMENT OF COMMERCE AND INDUSTRY REPRESENTATIVES SELE CTED BY THE 23
366+DEPARTMENT OF COMMERCE, SHALL, IN ACCORDANCE WITH § 2–1257 OF THE 24
367+STATE GOVERNMENT ARTICLE, SUBMIT A REPORT TO T HE GENERAL ASSEMBLY 25
368+DETAILING: 26
380369
381- 4. IS INSTALLED AT A FA CILITY THAT IS PART OF
382-CRITICAL INFRASTRUCT URE IF THE FACILITY COMPLIES WITH ALL AP PLICABLE
383-REGULATIONS REGARDIN G NOISE LEVEL AND TE STING HOURS; OR
370+ (1) ADVANCEMENTS IN BACK UP GENERATION TECHNO LOGIES; 27
384371
385- (II) A COMBINATION OF TWO OR MORE GENERATING U NITS OR
386-FACILITIES THAT SATI SFY ITEM (I) OF THIS PARAGRAPH .
372+ (2) THE COMMERCIAL AVAIL ABILITY OF NEW BACKU P GENERATION 28
373+TECHNOLOGIES THAT CA N BE PROCURED ; AND 29
387374
388- [(3)] (4) “Qualified offshore wind project” has the meaning stated in §
389-7–701 of this title.
375+ (3) THE AFFORDABILITY OF ADOPTING NEW BACKUP GENERATION 30
376+TECHNOLOGIES . 31 SENATE BILL 474 9
390377
391- [(4)] (5) “Qualified submerged renewable energy line” means:
392378
393- (i) a line carrying electricity supply and connecting a qualified
394-offshore wind project to the transmission system; and
395379
396- (ii) a line in which the portions of the line crossing any submerged
397-lands or any part of a beach erosion control district are buried or submerged.
380+7–208. 1
398381
399-Article – State Government
382+ (a) (1) In this section the following words have the meanings indicated. 2
400383
401-920B–05.
384+ (2) “Construction” has the meaning stated in § 7207 of this subtitle. 3
402385
403- (a) There is a Maryland Strategic Energy Investment Fund.
386+ (3) “GENERATING STATION ” DOES NOT INCLUDE : 4
404387
405- (e) The Fund consists of:
388+ (I) A GENERATING UNIT OR FACILITY THAT: 5
406389
407- (1) all of the proceeds from the sale of allowances under § 2–1002(g) of the
408-Environment Article;
390+ 1. IS USED FOR THE PRODUCTION OF EL ECTRICITY FOR 6
391+THE PURPOSE OF : 7
409392
410- (2) money appropriated in the State budget to the Program;
393+ A. ONSITE EMERGENCY BAC KUP AT A FACILITY WH EN 8
394+SERVICE FROM THE ELE CTRIC COMPANY IS INT ERRUPTED DUE TO ELECTRIC 9
395+DISTRIBUTION OR TRAN SMISSION SYSTEM FAIL URE OR WHEN THERE IS EQUIPMENT 10
396+FAILURE AT A SITE W HERE CRITICAL INFRAS TRUCTURE IS LOCATED ; AND 11
411397
412- (3) repayments and prepayments of principal and interest on loans made
413-from the Fund;
398+ B. TEST AND MAINTENANCE OPERATIONS NECESSARY 12
399+TO ENSURE FUNCTIONAL ITY OF THE GENERATIN G UNIT OR FACILITY I N THE EVENT 13
400+OF AN INTERRUPTION O F SERVICE FROM THE E LECTRIC COMPANY DUE TO 14
401+ELECTRIC DISTRIBUTIO N OR TRANSMISSION SYSTEM F AILURE OR WHEN THERE IS 15
402+EQUIPMENT FAILURE AT A SITE WHERE CRITICA L INFRASTRUCTURE IS LOCATED; 16
414403
415- (4) interest and investment earnings on the Fund;
404+ 2. IS INSTALLED WITH EQ UIPMENT THAT PREVENT S THE 17
405+FLOW OF ELECTRICITY TO THE ELECTRIC GRID ; AND 18
416406
417- (5) compliance fees paid under § 7–705 of the Public Utilities Article;
407+ 3. IS SUBJECT TO A PERM IT TO CONSTRU CT ISSUED BY 19
408+THE DEPARTMENT OF THE ENVIRONMENT ; OR AND 20
418409
419- (6) money received from any public or private source for the benefit of the
420-Fund; [and]
410+ 4. IS INSTALLED AT A FA CILITY THAT IS PART OF 21
411+CRITICAL INFRASTRUCT URE IF THE FACILITY COMPLIES WITH ALL AP PLICABLE 22
412+REGULATIONS REGARDIN G NOISE LEVEL AND TE STING HOURS; OR 23
421413
422- (7) money transferred from the Public Service Commission under §
423-7–207.2(c)(3) of the Public Utilities Article; AND Ch. 411 2024 LAWS OF MARYLAND
414+ (II) A COMBINATION O F TWO OR MORE GENERA TING UNITS OR 24
415+FACILITIES THAT SATI SFY ITEM (I) OF THIS PARAGRAPH . 25
424416
425-– 10 –
417+ [(3)] (4) “Qualified offshore wind project” has the meaning stated in § 26
418+7–701 of this title. 27
426419
427- (8) MONEY DISTRIBUTED UN DER § 2–614.1 OF THE TAX – GENERAL
428-ARTICLE.
420+ [(4)] (5) “Qualified submerged renewable energy line” means: 28
429421
430-Article – Tax – General
422+ (i) a line carrying electricity supply and connecting a qualified 29
423+offshore wind project to the transmission system; and 30 10 SENATE BILL 474
431424
432-2–614.1.
433425
434- (A) IN THIS SECTION , “QUALIFIED DATA CENTE R” HAS THE MEANING
435-STATED IN § 11–239 OF THIS ARTICLE.
436426
437- (B) AFTER MAKING THE DIST RIBUTIONS REQUIRED U NDER §§ 2–613,
438-2–613.1, AND 2–614 OF THIS SUBTITLE, THE COMPTROLLER SHALL DIS TRIBUTE 15%
439-OF THE REMAINING INC OME TAX REVENUE FROM CORPORATIONS THAT IS
440-ATTRIBUTABLE TO QUAL IFIED DATA CENTERS T HAT ARE OPERATIONAL ON OR AFTER
441-JANUARY 1, 2026, TO THE STRATEGIC ENERGY INVESTMENT FUND ESTABLISHED
442-UNDER § 9–20B–05 OF THE STATE GOVERNMENT ARTICLE.
427+ (ii) a line in which the portions of the line crossing any submerged 1
428+lands or any part of a beach erosion control district are buried or submerged. 2
443429
444-2615.
430+Article State Government 3
445431
446- After making the distributions required under §§ 2–613, 2–613.1, [and] 2–614, AND
447-2–614.1 of this subtitle, the Comptroller shall distribute the remaining income tax revenue
448-from corporations to the General Fund of the State.
432+9–20B–05. 4
449433
450- SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect July
451-1, 2024.
434+ (a) There is a Maryland Strategic Energy Investment Fund. 5
452435
453-Approved by the Governor, May 9, 2024.
436+ (e) The Fund consists of: 6
437+
438+ (1) all of the proceeds from the sale of allowances under § 2–1002(g) of the 7
439+Environment Article; 8
440+
441+ (2) money appropriated in the State budget to the Program; 9
442+
443+ (3) repayments and prepayments of principal and interest on loans made 10
444+from the Fund; 11
445+
446+ (4) interest and investment earnings on the Fund; 12
447+
448+ (5) compliance fees paid under § 7–705 of the Public Utilities Article; 13
449+
450+ (6) money received from any public or private source for the benefit of the 14
451+Fund; [and] 15
452+
453+ (7) money transferred from the Public Service Commission under § 16
454+7–207.2(c)(3) of the Public Utilities Article; AND 17
455+
456+ (8) MONEY DISTRIBUTED UN DER § 2–614.1 OF THE TAX – GENERAL 18
457+ARTICLE. 19
458+
459+Article – Tax – General 20
460+
461+2–614.1. 21
462+
463+ (A) IN THIS SECTION , “QUALIFIED DATA CENTE R” HAS THE MEANING 22
464+STATED IN § 11–239 OF THIS ARTICLE. 23
465+
466+ (B) AFTER MAKING THE DIST RIBUTIONS REQUIRED U NDER §§ 2–613, 24
467+2–613.1, AND 2–614 OF THIS SUBTITLE, THE COMPTROLLER SHALL DIS TRIBUTE 15% 25
468+OF THE REMAINING INC OME TAX REVENUE FROM CORPORATIONS THAT IS 26
469+ATTRIBUTABLE TO QUAL IFIED DATA CENTERS T HAT ARE OPERATIONAL ON OR AFTER 27
470+JANUARY 1, 2026, TO THE STRATEGIC ENERGY INVESTMENT FUND ESTABLISHED 28
471+UNDER § 9–20B–05 OF THE STATE GOVERNMENT ARTICLE. 29 SENATE BILL 474 11
472+
473+
474+
475+2–615. 1
476+
477+ After making the distributions required under §§ 2–613, 2–613.1, [and] 2–614, AND 2
478+2–614.1 of this subtitle, the Comptroller shall distribute the remaining income tax revenue 3
479+from corporations to the General Fund of the State. 4
480+
481+ SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect July 5
482+1, 2024. 6
483+
484+
485+
486+
487+Approved:
488+________________________________________________________________________________
489+ Governor.
490+________________________________________________________________________________
491+ President of the Senate.
492+________________________________________________________________________________
493+ Speaker of the House of Delegates.