WES MOORE, Governor Ch. 595 – 1 – Chapter 595 (Senate Bill 783) AN ACT concerning Renewable Energy – Net Energy Metering Aggregation, Solar Renewable Energy Credits Certified SRECs and Compliance Fees, Labor Requirements, and Taxes on Solar Energy Generating Systems Public Utilities – Solar Energy Systems and Programs, Maryland Strategic Energy Investment Fund, and Prevailing Wage (Brighter Tomorrow Act) FOR the purpose of requiring that certain home improvement contracts for the installation of a solar energy generating system on the roof of a building include the installation of a certain wildlife barrier under certain circumstances; requiring a county or municipality to implement certain software for features supporting the tracking and approval of residential building permits for certain residential solar energy projects, residential energy storage projects, and main electric panel alterations by a certain date except under certain circumstances; requiring the Maryland Energy Administration to delay the implementation of or suspend a certain requirement under certain circumstances; altering the maximum generating capacity authorized for certain net metered generating facilities; authorizing an eligib le customer–generator participating in certain meter aggregation to receive excess generation from more than one generating system; altering the expiration date of renewable energy credits; requiring the Public Service Commission to establish a Small Solar Energy Generating System Incentive Program to provide certain certified systems with a certain additional percentage of renewable energy credits certain certified SRECs that may be put toward meeting the renewable energy portfolio standard for solar energy; providing that a certified system is eligible to receive an additional percentage of renewable energy credits for the life cycle of the system certain certified SRECs for a certain period of time; requiring an owner of a certain solar energy generating system to pay a certain fee to the Commission; increasing the duration of a certain renewable energy credit under certain circumstances; requiring that certain prevailing wage provisions apply to the construction of a certain certified solar energy generating system unless the system is subject to a certain project labor agreement; establishing the Customer–Sited Solar Program within the Maryland Energy Administration for the purpose of providing grants to certain eligible customer–generators for certain solar energy generating systems; authorizing a third party to apply for a grant on behalf of an eligible customer–generator under certain circumstances; requiring the Administration to publish certain information regarding the Program; requiring the Administration to develop a certain consumer protection policy; providing for the funding of Program grants from certain fees in the Maryland Strategic Energy Investment Fund; requiring a certain percentage of proceeds received by the Maryland Strategic Energy Investment Fund from certain compliance fees to be credited to a certain account for certain purposes; extending for a certain number of years a certain Ch. 595 2024 LAWS OF MARYLAND – 2 – personal property tax exemption for certain community solar energy generating system projects; exempting certain nonresidential solar generating systems from the State or local real or personal property tax; authorizing a county or municipal corporation to reduce or eliminate an assessment on certain real property on which a certain solar energy generating system is located; applying certain prevailing wage requirements for contractors and subcontractors working on certain projects involving, and traffic control activities related to, any underground gas or electric infrastructure of an investor–owned gas or electric infrastructure project of the company; requiring a county to enter into a certain payment in lieu of taxes agreement with an owner of a certain ground–mounted solar generating facility under certain circumstances; and generally relating to renewable energy facilities and contracts and tax provisions for renewable energy facilities and public utility activities. BY repealing and reenacting, without amendments, Article – Business Regulation Section 8–501(a) Annotated Code of Maryland (2015 Replacement Volume and 2023 Supplement) BY adding to Article – Business Regulation Section 8–501(f) Annotated Code of Maryland (2015 Replacement Volume and 2023 Supplement) BY adding to Article – Local Government Section 1–1319 Annotated Code of Maryland (2013 Volume and 2023 Supplement) BY repealing and reenacting, with amendments, Article – Public Utilities Section 7–306(g) and (i), 7–709(d), and 7–712 Annotated Code of Maryland (2020 Replacement Volume and 2023 Supplement) BY adding to Article – Public Utilities Section 7–306(i) and, 7–709.1, and 7–714 Annotated Code of Maryland (2020 Replacement Volume and 2023 Supplement) BY adding to Article – State Government WES MOORE, Governor Ch. 595 – 3 – Section 9–2016 and 9–20B–05(f)(13) and (g–1) Annotated Code of Maryland (2021 Replacement Volume and 2023 Supplement) BY repealing and reenacting, without amendments, Article – State Government Section 9–20B–05(a) through (c) Annotated Code of Maryland (2021 Replacement Volume and 2023 Supplement) BY repealing and reenacting, with amendments, Article – State Government Section 9–20B–05(f)(12) and (13) and (i) Annotated Code of Maryland (2021 Replacement Volume and 2023 Supplement) BY adding to repealing and reenacting, with amendments, Article – State Government Section 9–20B–05(g–1) Annotated Code of Maryland (2021 Replacement Volume and 2023 Supplement) (As enacted by Section 1 of this Act) BY repealing and reenacting, without amendments, Article – Tax – Property Section 1–101(j) Annotated Code of Maryland (2019 Replacement Volume and 2023 Supplement) BY repealing and reenacting, with amendments, Article – Tax – Property Section 7–237(c) Annotated Code of Maryland (2019 Replacement Volume and 2023 Supplement) BY adding to Article – Tax – Property Section 7–249, 7–250, and 7–522 Section 7–249 and 7–250 Annotated Code of Maryland (2019 Replacement Volume and 2023 Supplement) BY repealing and reenacting, without amendments, Article – Public Utilities Section 5–305 Annotated Code of Maryland (2020 Replacement Volume and 2023 Supplement) Ch. 595 2024 LAWS OF MARYLAND – 4 – SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, That the Laws of Maryland read as follows: Article – Business Regulation 8–501. (a) A home improvement contract that does not comply with this section is not invalid merely because of noncompliance. (F) (1) EXCEPT AS PROVIDED IN PARAGRAPH (2) OF THIS SUBSECTION , A HOME IMPROVEMENT CON TRACT FOR THE INSTAL LATION OF A SOLAR EN ERGY GENERATING SYSTEM ON THE ROOF OF A BUILDI NG SHALL INCLUDE THE INSTALLATION OF A BA RRIER THAT MEETS IND USTRY STANDARDS TO P REVENT WILDLIFE INTRUSION A ND DAMAGE TO THE SOL AR ENERGY GENERATING SYSTEM OR THE UNDERLYING RO OF. (2) A HOME IMPROVEMENT CON TRACT FOR THE INSTAL LATION OF A SOLAR ENERGY GENERAT ING SYSTEM ON THE ROOF O F A BUILDING IS NOT REQUIRED TO INCLUDE THE INSTALLATION OF A BARRIER AS SPECIFI ED UNDER PARAGRAPH (1) OF THIS SUBSECTION I F THE CUSTOMER HAS W AIVED THE INSTALLATION OF THE BARRIER AFTER BEING INFORMED OF THE COST OF THE BARRIER AND THE RISKS OF NOT INSTALL ING A WILDLIFE BARRI ER. Article – Local Government 1–1319. (A) (1) IN THIS SECTION THE F OLLOWING WORDS HAVE THE MEANINGS INDICATED. (2) “ADMINISTRATION ” MEANS THE MARYLAND ENERGY ADMINISTRATION . (3) “RESIDENTIAL ENERGY STORAGE SYSTEM ” MEANS A SYSTEM , ON A RESIDENTIAL CUSTOM ER’S SIDE OF THE METER , USED TO STORE ELECTR ICAL ENERGY, OR MECHANICAL , CHEMICAL, OR THERMAL ENERGY TH AT WAS ONCE ELECTRICAL ENERGY , FOR USE AS ELECTRICA L ENERGY AT A LATER DATE OR IN A PROCESS THAT OF FSETS ELECTRICITY US E AT PEAK TIMES. (4) “RESIDENTIAL SOLAR ENE RGY SYSTEM ” MEANS ANY CONFIGURATION OF SOL AR ENERGY DEVICES TH AT COLLECTS AND DIST RIBUTES WES MOORE, Governor Ch. 595 – 5 – SOLAR ENERGY FOR THE PURPOSE OF GENERATIN G ELECTRICITY AND TH AT HAS A SINGLE RESIDENTIAL I NTERCONNECTION WITH THE ELECTRICAL GRID . (5) “SOLAR PERMITTING SOFT WARE” MEANS: (I) THE MOST RECENT VERS ION OF A WEB–BASED PLATFORM , DEVELOPED BY THE NATIONAL RENEWABLE ENERGY LABORATORY, THAT PROVIDES A STANDARD PORTAL FO R RECEIVING AND PROC ESSING RESIDENTIAL S OLAR ENERGY SYSTEM AND RE SIDENTIAL ENERGY STO RAGE SYSTEM PERMIT INFORMATION; OR (II) AUTOMATED SOFTWARE T HAT FUNCTIONS TO SUP PORT THE TRACKING AND APPROVA L OF RESIDENTIAL BUI LDING PERMITS FOR RE SIDENTIAL SOLAR ENERGY SYSTEMS , RESIDENTIAL ENERGY S TORAGE SYSTEMS , MAIN ELECTRICAL PANEL UPG RADES, AND MAIN ELECTRICAL PANEL DEVICES. (B) THIS SECTION APPLIES TO ALL COUNTIES AND MUNICIPALITIES . (C) SUBJECT TO SUBSECTION (D) OF THIS SECTION AND EXCEPT AS PROVIDED IN SUBSECTI ON (E) OF THIS SECTION , ON OR BEFORE AUGUST 1, 2025, EACH COUNTY AND MUNI CIPALITY SHALL IMPLE MENT SOLA R PERMITTING SOFTWARE FOR FEATURE S SUPPORTING THE TRA CKING AND APPROVAL O F RESIDENTIAL BUILDING PERMITS FOR: (1) RESIDENTIAL SOLAR EN ERGY SYSTEMS ; (2) RESIDENTIAL ENERGY S TORAGE SYSTEMS ; (3) MAIN ELECTRIC PANEL UPGRADES; AND (4) MAIN ELECTRIC P ANEL DERATES . (D) A COUNTY OR MUNICIPALI TY MAY NOT BE REQUIR ED TO COMPLY WITH THE REQUIREMENTS OF SUBSECTION (C) OF THIS SECTION IF: (1) THE COUNTY OR MUNICI PALITY DOES NOT REQU IRE A PERMIT FOR: (I) RESIDENTIAL SOLAR EN ERGY SYSTEMS ; OR (II) RESIDENTIAL SOLAR ENER GY SYSTEMS PAIRED WI TH A RESIDENTIAL SOLAR EN ERGY STORAGE SYSTEM ; OR Ch. 595 2024 LAWS OF MARYLAND – 6 – (2) AS DETERMINED BY THE ADMINISTRATION , THE AUTOMATED SOFTWARE IS NO LONGE R UPDATED OR MAINTAI NED. (E) THE ADMINISTRATION SHALL DELAY THE INITIAL IM PLEMENTATION OR SUSPEND THE REQUIREM ENTS OF SUBSECTION (C) OF THIS SECTION IF T HERE ARE INSUFFICIENT STATE OR FEDERAL FUND S AVAILABLE TO THE ADMINISTRATION TO PROVIDE FINANCIAL SU PPORT TO A COUNTY OR MUNICIPALITY IMPLEME NTING SOLAR PERMITTING SOF TWARE AS DEFINED IN SUBSECTION (A)(5)(I) OF THIS SECTION. Article – Public Utilities 7–306. (g) (1) Except as provided in paragraphs [(6) and (7)] (6), (7), AND (8) of this subsection, the generating capacity of an electric generating system used by an eligible customer–generator for net metering may not exceed 2 megawatts. (2) An electric generating system used by an eligible customer–generator for net metering shall meet all applicable safety and performance standards established by the National Electrical Code, the Institute of Electrical and Electronics Engineers, and Underwriters Laboratories. (3) The Commission may adopt by regulation additional control and testing requirements for eligible customer–generators that the Commission determines are necessary to protect public safety and system reliability. (4) An electric company may not require an eligible customer–generator whose electric generating system meets the standards of paragraphs (2) and (3) of this subsection to: (i) install additional controls; (ii) perform or pay for additional tests; or (iii) purchase additional liability insurance. (5) An eligible customer–generator or the eligible customer–generator’s assignee shall own and have title to all renewable energy attributes or renewable energy credits associated with any electricity produced by its electric generating system. (6) The Commission may not prohibit the construction or operation of multiple net metered solar energy generating facilities located on separate contiguous lots that are owned by a local government solely because the capacity of the combined net metering systems exceeds the limit established under paragraph (1) of this subsection, if: WES MOORE, Governor Ch. 595 – 7 – (i) the net metered solar energy generating facilities are intended to be used solely for the benefit of the local government; (ii) the total capacity of the net metered solar energy generating facilities on the contiguous lots does not exceed 5 megawatts; (iii) the contiguous lots were not subdivided for the purpose of circumventing the limit established under paragraph (1) of this subsection; and (iv) the utility serving the net metered solar energy generating facilities is not an electric cooperative or municipal electric utility. (7) The generating capacity of a community solar energy generating system established under § 7–306.2 of this subtitle that is used for net metering may not exceed 5 megawatts. (8) THE GENERATING CAPACI TY OF A NET METERED FACILITY THAT IS METER AGGREGATED UNDER § 7–306.3 OF THIS SUBTITLE MAY NOT EXCEED 5 MEGAWATTS . (I) NOTWITHSTANDING THE G ENERATING CAPACITY L IMITS ESTABLISHED IN SUBSECTION (G) OF THIS SECTION , AN ELIGIBLE CUSTOMER –GENERATOR PARTICIPATING IN MET ER AGGREGATION UNDER § 7–306.2 OR § 7–306.3 OF THIS SUBTITLE MAY RECEIVE EXCESS GENERATION FR OM MORE THAN ONE GEN ERATING SYSTEM, INCLUDING IF THE COM BINED GENERATING CAP ACITY OF ALL NET METERED FACILITIES T HAT ARE METER AGGREGATED EXC EEDS 5 MEGAWATTS . [(i)] (J) On or before November 1 of each year, the Commission shall report to the General Assembly, in accordance with § 2–1257 of the State Government Article, on the status of the net metering program under this section, including: (1) the amount of capacity of electric generating facilities owned and operated by eligible customer–generators in the State by type of energy resource; (2) based on the need to encourage a diversification of the State’s energy resource mix to ensure reliability, whether the rated generating capacity limit in subsection (d) of this section should be altered; and (3) other pertinent information. 7–709. Ch. 595 2024 LAWS OF MARYLAND – 8 – (d) (1) Except as PROVIDED IN § 7–709.1 OF THIS SUBTITLE AND authorized under paragraph (2) of this subsection, a renewable energy credit shall exist for 3 5 years from the date created. (2) A renewable energy credit may be diminished or extinguished before the expiration of 3 5 years by: (i) the electricity supplier that received the credit; (ii) a nonaffiliated entity of the electricity supplier: 1. that purchased the credit from the electricity supplier receiving the credit; or 2. to whom the electricity supplier otherwise transferred the credit; or (iii) demonstrated noncompliance by the generating facility with the requirements of § 7–704(f) of this subtitle. 7–709.1. (A) (1) IN THIS SECTION THE F OLLOWING WORDS HAVE THE MEANINGS INDICATED. (2) “BROWNFIELD” HAS THE MEANING STAT ED IN § 7–207 OF THIS TITLE. (3) “CERTIFIED SREC” MEANS A SOLAR RENEWA BLE ENERGY CREDIT GENERATED BY A CERTIFIED SYSTEM . (4) “CERTIFIED SYSTEM ” MEANS A SOLAR ENERGY GENERATING SYSTEM CERTIFIED BY THE COMMISSION AS ELIGIBLE TO RECEI VE ADDITIONAL CREDITS UNDER THE PROGRAM UNDER THE PROGRAM TO GENERATE C ERTIFIED SRECS WITH THE COMPLIANC E VALUE SPECIFIED IN SUBSECTION (C) OF THIS SECTION. (3) (5) “PROGRAM” MEANS THE SMALL SOLAR ENERGY GENERATING SYSTEM INCENTIVE PROGRAM. (B) THE COMMISSION SHALL ESTA BLISH A SMALL SOLAR ENERGY GENERATING SYSTEM INCENTIVE PROGRAM. WES MOORE, Governor Ch. 595 – 9 – (C) UNDER THE PROGRAM, SOLAR ENERGY GENERAT ING SYSTEMS THAT ARE CERTIFIED BY THE COMMISSION IN ACCORDA NCE WITH THIS SECTIO N SHALL BE ELIGIBLE TO RECEI VE ADDITIONAL SOLAR RENEWABLE ENERGY CRE DITS AS PROVIDED IN THIS SECTION. (C) (1) UNDER THE PROGRAM, A CERTIFIED SYSTEM S HALL GENERATE CERTIFIED SRECS. (2) EXCEPT AS PROVIDED IN PARAGRAPH (3) OF THIS SUBSECTION , THE PROVISIONS OF TH IS SUBTITLE RELATING TO RENEWABLE ENERGY CREDITS SHALL APPLY TO CERTI FIED SRECS. (3) A CERTIFIED SREC SHALL HAVE A COMPLIA NCE VALUE OF 150% FOR ELECTRICITY SUPP LIERS TO PUT TOWARD MEETING THE R ENEWABLE ENERGY PORTFOLIO STANDARD F OR ENERGY DERIVED FR OM SOLAR ENERGY UNDE R § 7–703 OF THIS SUBTITLE. (D) TO BE ELIGIBLE FOR CE RTIFICATION UNDER TH E PROGRAM, A SOLAR ENERGY GENERATING SY STEM SHALL: (1) BE LOCATED IN THE STATE; (2) BE ELIGIBLE FOR INCL USION IN MEETING THE RENEWABLE ENERGY PORTFOLIO STA NDARD; (3) HAVE A GENERATING CA PACITY OF 2 5 MEGAWATTS OR LESS , AS MEASURED BY THE ALTE RNATING CURRENT RATI NG OF THE SYSTEM ’S INVERTER; AND (4) BE PLACED IN SERVICE BETWEEN JULY 1, 2024, AND JANUARY 1, 2028, INCLUSIVE; AND (5) BE ONE OF THE FOLLOW ING TYPES OF SYSTEMS : (I) A SYSTEM WITH A GENE RATING CAPACITY OF 20 KILOWATTS OR LESS, AS MEASURED BY THE A LTERNATING CURRENT R ATING OF THE SYSTEM ’S INVERTER; (II) A SYSTEM WITH A GENERA TING CAPACITY OF 2 MEGAWATTS OR LESS, AS MEASURED BY THE A LTERNATING CURRENT R ATING OF THE SYSTEM ’S INVERTER, IF THE SYSTEM IS USE D FOR AGGREGATE NET METERING; OR (III) A SYSTEM WITH A GENE RATING CAPACITY OF B ETWEEN 20 KILOWATTS AND 5 MEGAWATTS , AS MEASURED BY THE A LTERNATING CURRENT Ch. 595 2024 LAWS OF MARYLAND – 10 – RATING OF THE SYSTEM ’S INVERTER, IF THE SYSTEM IS LOC ATED ON A ROOFTOP , A PARKING CANOPY , OR A BROWNFIELD . (E) EXCEPT AS PROVIDED IN SUBSECTION (F) OF THIS SECTION , THE COMMISSION, AT THE TIME OF CERTI FYING A SOLAR ENERGY GENERATING SYSTEM AS A TIER 1 RENEWABLE SOURCE , SHALL CERTIFY THE SY STEM AS ELIGIBLE TO RECEIVE GENERATE CERTIFIED SRECS IN ACCORDANCE WITH SUBSECTION (C) OF THIS SECTION IF THE APPLICANT SUBMITS WI TH ITS APPLICATION F OR CERTIFICATION AS A TIER 1 RENEWABLE SOURCE : (1) A FORM REQUESTING TO BE CERTIFIED TO RECE IVE CERTIFIED SRECS WITH THE VALUE SPE CIFIED IN SUBSECTION (C) OF THIS SECTION; (2) A COPY OF THE INTERC ONNECTION AGREEMENT BETWEEN THE APPLICANT AND THE AP PLICANT’S ELECTRIC COMPANY INDICATING T HAT THE SIZE OF THE SYSTEM IS ELI GIBLE; (3) IF SEEKING CERTIFICA TION AS A SYSTEM LOC ATED ON OR OVER A ROOF, PARKING LOT, OR PARKING STRUCTURE , A COPY OF THE FINAL APPROVAL OF THE LOCAL BUILDING P ERMIT; (4) IF SEEKING CERTIFICA TION AS A SYSTEM LOCAT ED ON A BROWNFIELD , DOCUMENTATION DEMONS TRATING THAT THE SYS TEM IS LOCATED ON A BROWNFIELD ; (5) IF SEEKING CERTIFICA TION BASED ON AGGREG ATED NET METERING, A COPY OF THE AGGREG ATED NET ENERGY METE RING RIDER SUBMITTED WITH THE I NTERCONNECTION AGREEMENT ; AND (6) ANY OTHER INFORMATIO N REQUIRED BY THE COMMISSION. (F) (1) THE OWNER OF A SOLAR ENERGY GENERATING SY STEM MAY APPLY TO THE COMMISSION TO BE CERT IFIED UNDER THE PROGRAM IF THE SYSTEM MEETS THE REQ UIREMENTS UNDER SUBS ECTION (D) OF THIS SECTION. (2) THE OWNER OF A SOLAR ENERGY GENERATING SY STEM THAT IS PLACED IN SERVICE BE TWEEN JULY 1, 2024, AND JANUARY 1, 2025, MAY APPLY TO THE COMMISSION: (I) BEFORE JANUARY 1, 2025, FOR CERTIFICATION AS A TIER 1 RENEWABLE SOURCE ; AND WES MOORE, Governor Ch. 595 – 11 – (II) ON OR AFTER JANUARY 1, 2025, FOR CERTIFICATION UNDER THE PROGRAM. (E) (G) THE TOTAL AMOUNT OF I N–STATE GENERATING CAPA CITY FOR CERTIFIED SYSTEMS , AS MEASURED BY THE A LTERNATING CURRENT R ATING OF THE SYSTEMS’ INVERTERS, UNDER THE PROGRAM MAY NOT EXCEED: (1) 330 300 MEGAWATTS FOR SYSTEM S WITH A GENERATING CAPACITY OF LESS THA N 20 KILOWATTS, AS MEASURED BY THE A LTERNATING CURRENT RATING OF TH E SYSTEM’S INVERTER; AND (2) 300 270 MEGAWATTS FOR SYSTEM S WITH A GENERATING CAPACITY OF BETWEEN 20 KILOWATTS AND 2 5 MEGAWATTS , AS MEASURED BY THE ALTERNATING CURRENT RATING OF THE SYSTEM ’S INVERTER. (F) (1) THE OWNER OF A SOLAR ENERGY GENERATING SY STEM MAY APPLY TO THE COMMISSION TO BE CERT IFIED UNDER THE PROGRAM. (2) THE OWNER OF A CERTIF IED SYSTEM SHALL PAY A ONE–TIME FEE OF $100 TO THE COMMISSION AT THE TIM E OF THE CERTIFICATI ON. (H) (1) AT THE TIME A SOLAR E NERGY GENERATING SYS TEM IS CERTIFIED AS A TIER 1 RENEWABLE SOURCE , THE OWNER OF THE SYS TEM SHALL PAY TO THE COMMISSION A ONE –TIME FEE OF: (I) UP TO $50 FOR EACH SYSTEM WITH A GENERATING CAPACITY OF LESS THA N 20 KILOWATTS, AS MEASURED BY THE A LTERNATING CURRENT RATING OF TH E SYSTEM’S INVERTER; AND (II) UP TO $200 FOR EACH SYSTEM WITH A GENERATING CAPACITY OF MORE THA N 20 KILOWATTS, AS MEASURED BY THE ALTE RNATING CURRENT RATING OF TH E SYSTEM’S INVERTER. (3) (2) THE COMMISSION SHALL USE THE FEES COLLECTED U NDER PARAGRAPH (2) (1) OF THIS SUBSECTION T O PAY FOR COSTS ASSO CIATED WITH ADMINISTERING THE PROGRAM. (G) (1) A CERTIFIED SYSTEM UNDER THE PROGRAM SHALL RECEIVE : (I) FOR SYSTEMS WITH A G ENERATING CAPACITY O F UP TO 2 MEGAWATTS , AS MEASURED BY THE A LTERNATING CURRENT R ATING OF THE SYSTEM’S INVERTER, 150% CREDIT TOWARD MEETIN G THE RENEWABLE ENER GY PORTFOLIO STANDARD F OR ENERGY DERIVED FR OM SOLAR; AND Ch. 595 2024 LAWS OF MARYLAND – 12 – (II) FOR SYSTEMS WITH A G ENERATING CAPACITY O F UP TO 2 MEGAWATTS , AS MEASURED BY THE A LTERNATING CURRENT R ATING OF THE SYSTEM’S INVERTER, THAT ARE LOCATED ON A ROOFTOP, A PARKING CANOPY , OR A BROWNFIELD, 200% CREDIT TOWARD MEETIN G THE RENEWABLE ENER GY PORTFOLIO STANDARD F OR ENERGY DERIVED FR OM SOLAR. (2) A CERTIFIED SYSTEM IS ELIGIBLE TO RECEIVE THE PERCENTAGE CREDIT SPECIFIED IN PARAGRAPH (1) OF THIS SUBSECTION F OR THE ENTIRE LIFE CYCLE OF THE SYSTEM. (H) NOTWITHSTANDING § 7–709(D)(1) OF THIS SUBTITLE , A CREDIT CREATED BY A CERTIFI ED SYSTEM UNDER THE PROGRAM SHALL EXIST F OR 5 YEARS FROM THE DATE CREATE D. (I) THE DEVELOPER OF A CE RTIFIED SYSTEM UNDER THE PROGRAM THAT HAS A GENERATING CAP ACITY OVER 1 MEGAWATT , AS MEASURED BY THE ALTERNATING CURRENT RATING OF THE SYSTEM ’S INVERTER, SHALL ENSURE THAT WORKERS ARE PAID NOT LESS THAN THE PREVAI LING WAGE RATE DETER MINED UNDER TITLE 17, SUBTITLE 2 OF THE STATE FINANCE AND PROCUREMENT ARTICLE, UNLESS THE SYSTEM IS SUBJECT TO A PROJECT LABOR A GREEMENT THAT: (1) BINDS ALL CONTRACTOR S AND SUBCONTRACTORS ON THE SYSTEM THROUGH THE I NCLUSION OF SPECIFIC ATIONS IN ALL RELEVA NT SOLICITATION PROVISI ONS AND CONTRACT DOC UMENTS; (2) ALLOWS ALL CONTRACTO RS AND SUBCONTRACTORS TO CO MPETE FOR CONTRACTS AND SU BCONTRACTS ON THE PR OJECT WITHOUT REGARD TO WHETHER THEY ARE OTH ERWISE PARTIES TO CO LLECTIVE BARGAINING AGREEMENTS ; (3) ESTABLISHES UNIFORM TERMS AND CONDITIONS OF EMPLOYMENT FOR ALL C ONSTRUCTION LABOR EMPLOYED ON THE PROJ ECTS; (4) GUARANTEES AGAINST S TRIKES, LOCKOUTS, AND SIMILAR JOB DISRUPTIONS; (5) ESTABLISHES MUTUALLY BINDING PROCEDURES F OR RESOLVING LABOR DISPUTES ; AND (6) INCLUDES ANY OTHER P ROVISIONS NEGOTIATED BY THE PARTIES TO PROMOTE S UCCESSFUL DELIVERY O F THE SYSTEM. WES MOORE, Governor Ch. 595 – 13 – (I) (1) A CERTIFIED SYSTEM SHA LL CONTINUE TO BE EL IGIBLE TO RECEIVE GENERATE CERTIFIED SRECS FOR 15 YEARS AFTER THE DATE OF CERTIFICATION BY THE COMMISSION, OR JANUARY 1, 2025, WHICHEVER IS LATER , AFTER WHICH THE SYST EM SHALL BE ELIGIBLE TO RECEIVE GENERATE NONCERTIFIED SOLAR R ENEWABLE ENERGY CRED ITS AS LONG AS THE S YSTEM MEETS THE REQUIREMENTS AS A TIER 1 RENEWABLE SOURCE UND ER THIS SUBTITLE. (2) THE COMMISSION SHALL : (I) ON OR BEFORE JANUARY 1, 2025, BEGIN DETERMINING ELIGIBILITY OF SOLAR ENERGY GENERATING SY STEMS TO BE CERTIFIE D UNDER THE PROGRAM; AND (II) ON OR BEFORE JULY 1, 2026, IMPLEMENT A REVISED SYSTEM TO REVIEW AND ENSURE COMPLIANCE WI TH THE RENEWABLE ENE RGY PORTFOLIO STANDARD . (3) AN ELECTRICITY SUPPLI ER MAY APPLY THE CER TIFIED SRECS GENERATED IN ACCORDA NCE WITH THIS SECTIO N TOWARD THE RENEWAB LE ENERGY PORTF OLIO STANDARD STARTI NG WITH THE 2025 COMPLIANCE YEAR . (4) NOTWITHSTANDING ANY O THER LAW, THE COMMISSION SHALL ALLOW ELECTRICITY SU PPLIERS TO DEMONSTRA TE COMPLIANCE WITH T HE RENEWABLE ENERGY POR TFOLIO STANDARD FOR THE 2025 COMPLIANCE YEAR BY SUBMITTING I NFORMATION BETWEEN JULY 1, 2026, AND DECEMBER 31, 2026, USING THE REVISED SY STEM DEVELOPED IN AC CORDANCE WITH PARAGR APH (2)(II) OF THIS SUBSECTION . 7–712. Subject to § 2–1257 of the State Government Article, on or before December 1 of each year the Commission shall report to the General Assembly on the status of implementation of this subtitle, including: (1) the availability of Tier 1 renewable sources[,]; (2) projects supported by the Fund[,]; (3) INFORMATION REGARDIN G THE STATUS OF THE SMALL SOLAR ENERGY GENERATING SYSTEM INCENTIVE PROGRAM ESTABLISHED U NDER § 7–709.1 OF THIS SUBTITLE , INCLUDING THE TOTAL AMOUNT OF GENERATING CAPACITY OF THE SYST EMS CERTIFIED UNDER THE PROGRAM; and Ch. 595 2024 LAWS OF MARYLAND – 14 – (4) other pertinent information. 7–714. THE DEVELOPER OF A SO LAR ENERGY GENERATIN G SYSTEM THAT HAS A GENERATING CAPACITY OVER 1 MEGAWATT , AS MEASURED BY THE A LTERNATING CURRENT RATING OF TH E SYSTEM’S INVERTER, SHALL ENSURE THAT WO RKERS ARE PAID NOT LESS THAN T HE PREVAILING WAGE RATE D ETERMINED UNDER TITLE 17, SUBTITLE 2 OF THE STATE FINANCE AND PROCUREMENT ARTICLE, UNLESS THE SYSTEM IS SUBJECT TO A PROJECT LABOR AGRE EMENT THAT: (1) BINDS ALL CONTRACTOR S AND SUBCONTRACTORS ON THE SYSTEM THROUGH THE I NCLUSION OF SPECIFICATIONS IN AL L RELEVANT SOLICITATION PROVISI ONS AND CONTRACT DOC UMENTS; (2) ALLOWS ALL CONTRACTO RS AND SUBCONTRACTOR S TO COMPETE FOR CONTRACTS AND SU BCONTRACTS ON THE PR OJECT WITHOUT REGARD TO WHETHER THEY ARE OTH ERWISE PARTIES TO CO LLECTIVE BARG AINING AGREEMENTS ; (3) ESTABLISHES UNIFORM TERMS AND CONDITIONS OF EMPLOYMENT FOR ALL C ONSTRUCTION LABOR EM PLOYED ON THE PROJEC TS; (4) GUARANTEES AGAINST S TRIKES, LOCKOUTS, AND SIMILAR JOB DISRUPTIONS; (5) ESTABLISHES MUTUALLY BINDING PROCEDURES F OR RESOLVING LABOR DISPUTES ; AND (6) INCLUDES ANY OTHER P ROVISIONS NEGOTIATED BY THE PARTIES TO PROMOTE SUCCESSFU L DELIVERY OF THE SY STEM. Article – State Government 9–20B–05. (a) There is a Maryland Strategic Energy Investment Fund. (b) The purpose of the Fund is to implement the Strategic Energy Investment Program. (c) The Administration shall administer the Fund. WES MOORE, Governor Ch. 595 – 15 – (G–1) UP TO 10% OF THE PROCEEDS RECE IVED BY THE FUND FROM COMPLIANCE FEES UNDE R § 7–705(B)(2)(I)2 OF THE PUBLIC UTILITIES ARTICLE SHALL BE CREDITED TO AN ADMINISTRATIVE EX PENSE ACCOUNT FOR CO STS RELATED TO THE ADMIN ISTRATION OF THE FUND. SECTION 2. AND BE IT FURTHER ENACTED, That the Laws of Maryland read as follows: Article – State Government 9–2016. (A) (1) IN THIS SECTION THE FOLLOWIN G WORDS HAVE THE MEA NINGS INDICATED. (2) “ELIGIBLE CUSTOMER –GENERATOR ” HAS THE MEANING STAT ED IN § 7–306 OF THE PUBLIC UTILITIES ARTICLE. (3) “LOW TO MODERATE INCOM E” MEANS A HOUSEHOLD WI TH AN ANNUAL HOUSEHOLD INC OME AT OR BELOW 150% OF THE AVERAGE MEDIA N INCOME FOR THE STATE. (4) “PROGRAM” MEANS THE CUSTOMER–SITED SOLAR PROGRAM ESTABLISHED IN THIS SECTION. (B) THERE IS A CUSTOMER–SITED SOLAR PROGRAM IN THE ADMINISTRATION . (C) THE PURPOSE OF THE PROGRAM IS TO: (1) INCREASE DEPLOYMENT OF CUSTOMER –SITED SOLAR ENERGY GENERATING SYSTEMS ; AND (2) PROVIDE GRANTS TO EL IGIBLE CUSTOMER –GENERATORS THAT HAVE INSTALLED SOLAR ENERGY GENERATING SY STEMS WITH OR WITHOU T ENERGY STORAGE. (D) (1) THE ADMINISTRATION SHALL : (I) ON OR BEFORE JANUARY 1, 2025, ESTABLISH APPLICATIO N AND INCOME VERIFICAT ION PROCEDURES FOR T HE PROGRAM; AND (II) AWARD GRANTS FROM TH E PROGRAM. Ch. 595 2024 LAWS OF MARYLAND – 16 – (2) AN APPLICANT FOR A GR ANT UNDER THIS SECTI ON SHALL: (I) INCLUDE IN THE APPLI CATION AN EXECUTED C ONTRACT TO PURCHASE OR LEASE A SOLAR ENERGY GENERAT ING SYSTEM OR AN EXE CUTED POWER PURCHASE AGREE MENT FOR THE SYSTEM ; (II) DEMONSTRATE THAT AN AGREEMENT ENTERED IN TO BETWEEN A THIRD PART Y AND AN ELIGIBLE CU STOMER–GENERATOR MEETS THE MINIMUM BENEFITS PUB LISHED UNDER SUBSECT ION (J) OF THIS SECTION; AND (III) INCLUDE A SIGNED DIS CLOSURE FORM DEVELOP ED UNDER SUBSECTION (L) OF THIS SECTION. (E) THE PROGRAM MAY PROVIDE G RANTS TO AN INCOME –VERIFIED ELIGIBLE CUSTOMER –GENERATOR WITH A LOW TO MODERATE INCOME IN AN AMOUNT EQUAL TO $750 PER KILOWATT OF NAME PLATE CAPACITY FOR A SOLAR ENERGY GENERATING SY STEM, UP TO A MAXIMUM OF $7,500 PER SYSTEM. (F) A GRANT AWARDED UNDER SUBSECTION (E) OF THIS SECTION SHAL L BE FUNDED FROM FEES COL LECTED UNDER § 7–705(B)(2)(I)2 OF THE PUBLIC UTILITIES ARTICLE AND ALLOCATED IN ACCORDANCE WITH § 9–20B–05(G–1) OF THIS TITLE. (G) THE ADMINISTRATION SHALL USE THE INCOME VERIF ICATION PROCESSES UNDER § 7–306.2(F)(1)(IV)1 THROUGH 6 OF THE PUBLIC UTILITIES ARTICLE TO VERIFY INC OME FOR AN ELIGIBLE C USTOMER–GENERATOR WITH A LOW TO MODERATE INCOME . (H) A THIRD PARTY MAY : (1) APPLY FOR A GRANT ON BEHALF OF AN ELIGIBL E CUSTOMER–GENERATOR WITH PROOF OF CONSENT FROM THE ELIGIBLE CUSTOMER–GENERATOR ; AND (2) BE ASSIGNED A GRANT BY THE ELIGIBLE CUST OMER–GENERATOR TO ACT ON BEHALF OF THE ELIGIBLE CUSTOME R–GENERATOR . (I) (1) FUNDING USED FOR GRAN TS UNDER THIS SECTIO N SHALL BE MONITORED THROUGH AN APPLICATION PROCESS MAINTAINED BY THE ADMINISTRATION AND VI SIBLE ON THE ADMINISTRATIO N’S WEBSITE. (2) DATA ON THE ADMINISTRATION ’S WEBSITE SHALL: WES MOORE, Governor Ch. 595 – 17 – (I) INCLUDE THE AMOUNT O F FUNDING AVAILABLE , RESERVED, AND SPENT FOR THE FI SCAL YEAR; AND (II) BE UPDATED REGULARLY . (J) THE ADMINISTRATION SHALL PUBLISH: (1) THE DISCLOSURE FORM DEVELOPED UNDER SUBS ECTION (L) OF THIS SECTION; AND (2) THE MINIMUM BENEFITS THAT AN ELIGIBLE CUSTOMER–GENERATOR MUST RECEI VE UNDER AN AGREEMEN T WITH A THIRD PARTY. (K) A SOLAR ENERGY GENERAT ING SYSTEM SHALL BE INSTALLED WITHIN 180 DAYS AFTER A GRANT UNDER THIS SECTION I S RESERVED BY THE ADMINISTRATION FOR AN ELIGIBLE CUSTOMER –GENERATOR . (L) (1) THE ADMINISTRATION SHALL DEVELOP A CONSUMER PROTECTION POLICY IN CONSULTATION WITH RE PRESENTATIVES OF THE CUSTOMER–SITED SOLAR INDUSTRY . (2) THE CONSUME R PROTECTION POLICY DEVELOPED UNDER PARAGRAPH (1) OF THIS SUBSECTION S HALL: (I) INCLUDE A DISCLOSURE FORM FOR SOLAR ENERG Y POWER PURCHASE AGREEMENTS , SOLAR ENERGY LEASE A GREEMENTS , AND SOLAR ENERGY LOAN AGREEMENTS THAT MUST BE SIGNED BY AN ELIGIBLE CUSTOMER–GENERATOR BEFORE ENT ERING INTO THE AGREE MENT; (II) FOR A SOLAR ENERGY P OWER PURCHASE AGREEM ENT OR A SOLAR ENERGY LEASE A GREEMENT, PROHIBIT AN ANNUAL R ATE INCREASE OF MORE THAN 3%; (III) ALLOW A CUSTOMER –GENERATOR TO CANCEL AN AGREEMENT ENTERED INTO WITH A THIRD PARTY UP TO 30 DAYS AFTER SIGNING THE AGREEMENT ; AND (IV) BE EASILY ACCESSIBLE ON THE ADMINISTRATION ’S WEBSITE AND SOCIAL M EDIA PLATFORMS . 9–20B–05. (f) The Administration shall use the Fund: Ch. 595 2024 LAWS OF MARYLAND – 18 – (12) to provide at least $500,000 each year to the Resiliency Hub Grant Program Fund under § 9–2011 of this title; [and] (13) TO PROVIDE GRANTS TH ROUGH THE CUSTOMER–SITED SOLAR PROGRAM UNDER § 9–2016 OF THIS TITLE; AND [(13)] (14) to pay the expenses of the Program. (g–1) [Up to 10% of the proceeds] PROCEEDS received by the Fund from compliance fees under § 7–705(b)(2)(i)2 of the Public Utilities Article shall be ALLOCATED AS FOLLOWS: (1) BEGINNING IN FISCAL YEAR 2025, AT LEAST 20% OF THE PROCEEDS SHALL BE USED TO PRO VIDE GRANTS TO SUPPO RT THE INSTALLATION OF NEW SOLAR ENERGY GEN ERATING SYSTEMS UNDE R THE CUSTOMER–SITED SOLAR PROGRAM; (2) UP TO 10% OF THE PROCEEDS SHAL L BE credited to an administrative expense account for costs related to the administration of the Fund; (3) PROCEEDS COLLECTED B UT UNUSED FROM A PRE VIOUS YEAR SHALL BE USED BEFORE PROCEEDS ALLOCATED F OR THE CURRENT YEAR ; AND (4) THE ADMINISTRATION SHALL REALLOCATE TO OTHER AUTHORIZED USES ANY PROCEEDS THAT ARE NO T USED WITHIN 3 FISCAL YEARS AFTER COLLECTION . (i) (1) Except as provided in paragraph (2) of this subsection, compliance fees paid under § 7–705(b) of the Public Utilities Article may be used only to make loans and grants to support the creation of new Tier 1 renewable energy sources in the State that are owned by or directly benefit: (i) low– to moderate–income communities located in a census tract with an average median income at or below 80% of the average median income for the State; or (ii) overburdened or underserved communities, as defined in § 1–701 of the Environment Article. (2) Compliance fees paid under § 7–705(b)(2)(i)2 of the Public Utilities Article shall be accounted for separately within the Fund and may be used only to make loans and grants to support the creation of new solar energy sources in the State that are owned by or directly benefit: WES MOORE, Governor Ch. 595 – 19 – (i) low– to moderate–income communities located in a census tract with an average median income at or below 80% of the average median income for the State; [or] (ii) overburdened or underserved communities, as defined in § 1–701 of the Environment Article; OR (III) HOUSEHOLDS WITH LOW TO MODERATE INCOME , AS DEFINED IN § 9–2016 OF THIS TITLE. SECTION 2. 3. AND BE IT FURTHER ENACTED, That the Laws of Maryland read as follows: Article – Tax – Property 1–101. (j) (1) “Department” means the State Department of Assessments and Taxation. (2) “Department” includes, unless the context requires otherwise, a supervisor. 7–237. (c) (1) (i) In this subsection the following words have the meanings indicated. (ii) “Agrivoltaics” means the simultaneous use of areas of land for both solar power generation and agriculture. (iii) “Brownfield” means: 1. a former industrial or commercial site identified by federal or State laws or regulations as contaminated or polluted; or 2. a closed municipal or rubble landfill regulated under a refuse disposal permit by the Department of the Environment. (iv) “Community solar energy generating system” has the meaning stated in § 7–306.2 of the Public Utilities Article. (v) “Electric company” has the meaning stated in § 1–101 of the Public Utilities Article. Ch. 595 2024 LAWS OF MARYLAND – 20 – (2) This subsection applies through the life cycle of a community solar energy generating system that: (i) is placed in service after June 30, 2022; and (ii) has been approved on or before December 31, [2025] 2030, by the Public Service Commission under § 7–306.2 of the Public Utilities Article. (3) Personal property is exempt from county or municipal corporation property tax if the property is machinery or equipment that is part of a community solar energy generating system that: (i) has a generating capacity that does not exceed 2 5 megawatts as measured by the alternating current rating of the system’s inverter; (ii) provides at least 50% of the energy it produces to low– or moderate–income customers at a cost that is at least 20% less than the amount charged by the electric company that serves the area where the community solar energy generating system is located; and (iii) 1. is used for agrivoltaics; or 2. is installed on a rooftop, brownfield, parking facility canopy, landfill, or clean fill. (4) On or before October 1 each year, the Department shall report to the Senate Budget and Taxation Committee and the House Ways and Means Committee, in accordance with § 2–1257 of the State Government Article, on the number and location of projects that, in the immediately preceding taxable year, have received the exemption under this subsection. 7–249. (A) THIS SECTION APPLIES ONLY TO NONRESIDENTI AL SOLAR ENERGY GENERATING SYSTEMS T HAT ARE APPROVED BY THE PUBLIC SERVICE COMMISSION UNDER § 7–207 OR § 7–207.1 OF THE PUBLIC UTILITIES ARTICLE ON OR AFTER JULY 1, 2024. (B) NONRESIDENTIAL SOLAR ENERGY GENERATING SY STEMS THAT ARE CONSTRUCTED ON THE R OOFTOPS OF BUILDINGS OR ON PARKING FACILI TY CANOPIES ARE NOT SUB JECT TO VALUATION OR TO PROPERTY TAX . 7–250. WES MOORE, Governor Ch. 595 – 21 – (A) THIS SECTION A PPLIES ONLY TO REAL PROPERTY THAT INCLUD ES A PARKING FACILITY ON WHICH A SOLAR ENERGY GENERATING SYSTEM HA S BEEN CONSTRUCTED ON ITS C ANOPY IF THE SOLAR E NERGY GENERATING SYS TEM HAS BEEN APPROVED BY THE PUBLIC SERVICE COMMISSION UNDER § 7–207 OR § 7–207.1 OF THE PUBLIC UTILITIES ARTICLE ON OR AFTER JULY 1, 2024. (B) THE GOVERNING BODY OF A COUNTY OR MUNICIPA L CORPORATION MAY REDUCE OR ELIMINATE , BY LAW, THE PERCENTAGE OF TH E ASSESSMENT OF ANY REAL PROPERTY THAT I S SUBJECT TO THE COU NTY OR MUNICIPAL COR PORATION PROPERTY TAX UNDER T HIS ARTICLE IF THE R EAL PROPERTY INCLUDE S A PARKING FACILITY ON WHICH A SOLAR ENERGY GENERAT ING SYSTEM HAS BEEN CONSTRUCTED ON ITS C ANOPY. (B) (C) (1) A COUNTY OR MUNICIPAL CORPORATION THAT RED UCES OR ELIMINATES THE PE RCENTAGE O F ASSESSMENT OF TAXA BLE REAL PROPERTY UNDER SUBSECTION (A) (B) OF THIS SECTION SHAL L SUBMIT A COPY OF T HE LAW TO THE DEPARTMENT . (2) IF THE DEPARTMENT RECEIVES A COPY OF THE LAW ON O R BEFORE MAY 1, THE CHANGE WILL BE E FFECTIVE FOR THE TAX ABLE YEAR FOLLOWING THE DATE T HE LAW IS ENACTED . (C) (D) IF ANY REAL PROPERTY IS EXEMPT UNDER SUBS ECTION (B) (C) OF THIS SECTION FROM CO UNTY PROPERTY TAX BU T IS SUBJECT TO MUNI CIPAL CORPORATION PROPERTY TAX, THE DEPARTMENT OR THE SUP ERVISOR SHALL PROVIDE THE MUNIC IPAL CORPORATION WIT H THE ASSESSMENT OF THE REAL PROPERTY. (D) (E) THE DEPARTMENT MAY ADOPT REGULATIONS TO IMPLE MENT THIS SECTION. 7–522. THE GOVERNING BODY OF A COUNTY SHALL EXEMP T OR PARTIALLY EXEMP T A GROUND–MOUNTED SOLAR ENERGY GENERATING SYSTEM FROM THE COUNTY REAL OR PERSONAL PRO PERTY TAX IF THE OWN ER OF THE SYSTEM AND THE COUNTY ENTER INTO A PAYMENT IN LIEU OF T AXES AGREEMENT , APPROVED BY ORDINANCE OF THE LEG ISLATIVE BODY OF THE COUNTY, THAT SPECIFIES: (1) THAT THE OWNER OF TH E SYSTEM SHALL PAY TO THE COUNTY EACH YEAR IN LIEU OF THE PAYMENT OF COUNT Y REAL OR PERSONAL P ROPERTY TAXES DURING THE TER M OF THE AGREEMENT T HE SUM OF $2,500 PER MEGAWATT Ch. 595 2024 LAWS OF MARYLAND – 22 – OF GENERATING CAPACI TY OF THE SYSTEM , AS MEASURED BY THE A LTERNATING CURRENT RATING OF TH E SYSTEM’S INVERTER; (2) THE TERM OF THE AGRE EMENT; AND (3) THAT EACH YEAR AFTER THE EXPIRATION OR TE RMINATION OF THE AGREEMENT , FULL REAL AND PERSON AL PROPERTY TAXES SH ALL BE PAYABLE ON THE PROPERTY . SECTION 3. 4. AND BE IT FURTHER ENACTED, That the Laws of Maryland read as follows: Article – Public Utilities 7–306. (g) (1) Except as provided in paragraphs [(6) and (7)] (6), (7), AND (8) of this subsection, the generating capacity of an electric generating system used by an eligible customer–generator for net metering may not exceed 2 megawatts. (2) An electric generating system used by an eligible customer–generator for net metering shall meet all applicable safety and performance standards established by the National Electrical Code, the Institute of Electrical and Electronics Engineers, and Underwriters Laboratories. (3) The Commission may adopt by regulation additional control and testing requirements for eligible customer–generators that the Commission determines are necessary to protect public safety and system reliability. (4) An electric company may not require an eligible customer–generator whose electric generating system meets the standards of paragraphs (2) and (3) of this subsection to: (i) install additional controls; (ii) perform or pay for additional tests; or (iii) purchase additional liability insurance. (5) An eligible customer–generator or the eligible customer–generator’s assignee shall own and have title to all renewable energy attributes or renewable energy credits associated with any electricity produced by its electric generating system. (6) The Commission may not prohibit the construction or operation of multiple net metered solar energy generating facilities located on separate contiguous lots WES MOORE, Governor Ch. 595 – 23 – that are owned by a local government solely because the capacity of the combined net metering systems exceeds the limit established under paragraph (1) of this subsection, if: (i) the net metered solar energy generating facilities are intended to be used solely for the benefit of the local government; (ii) the total capacity of the net metered solar energy generating facilities on the contiguous lots does not exceed 5 megawatts; (iii) the contiguous lots were not subdivided for the purpose of circumventing the limit established under paragraph (1) of this subsection; and (iv) the utility serving the net metered solar energy generating facilities is not an electric cooperative or municipal electric utility. (7) The generating capacity of a community solar energy generating system established under § 7–306.2 of this subtitle that is used for net metering may not exceed 5 megawatts. (8) THE GENERATING CAPACI TY OF A NET METERED FACILITY THAT IS METER AGGREGATED UNDER § 7–306.3 OF THIS SUBTITLE MAY NOT EXCEED 5 MEGAWATTS . (I) NOTWITHSTANDING THE G ENERATING CAPACITY L IMITS ESTABLISHED IN SUBSECTION (G) OF THIS SECTION , AN ELIGIBLE CUSTOMER –GENERATOR PARTICIPATING IN MET ER AGGREGATION UNDER § 7–306.2 OR § 7–306.3 OF THIS SUBTITLE MAY RECEIVE EXCESS GENERATION FROM MORE THAN ONE GENERATING SYSTEM, INCLUDING IF THE COM BINED GENERATING CAP ACITY OF ALL NET METERED FACILITIES T HAT ARE METER AGGREG ATED EXCEEDS 5 MEGAWATTS . [(i)] (J) On or before November 1 of each year, the Commission shall report to the General Assembly, in accordance with § 2–1257 of the State Government Article, on the status of the net metering program under this section, including: (1) the amount of capacity of electric generating facilities owned and operated by eligible customer–generators in the State by type of energy resource; (2) based on the need to encourage a diversification of the State’s energy resource mix to ensure reliability, whether the rated generating capacity limit in subsection (d) of this section should be altered; and (3) other pertinent information. SECTION 5. AND BE IT FURTHER ENACTED, That the Laws of Maryland read as follows: Ch. 595 2024 LAWS OF MARYLAND – 24 – Article – Public Utilities 5–305. (a) This section applies to a project by an investor–owned gas company, electric company, or combination gas and electric company involving the construction, reconstruction, installation, demolition, restoration, or alteration of any underground gas or electric infrastructure of the company, and any related traffic control activities. (b) An investor–owned gas company, electric company, or combination gas and electric company shall require a contractor or subcontractor on a project described in subsection (a) of this section to pay its employees not less than the prevailing wage rate determined solely by the Commissioner of Labor and Industry in a process substantially similar to the process established under Title 17, Subtitle 2 of the State Finance and Procurement Article. (c) In accordance with Title 3, Subtitle 5 of the Labor and Employment Article, the Maryland Department of Labor shall enforce the requirement under subsection (b) of this section for contractors and subcontractors to pay employees not less than the prevailing wage rate determined solely by the Commissioner of Labor and Industry. SECTION 6. AND BE IT FURTHER ENACTED, That nothing in Section 5 of this Act or in § 7–714 of the Public Utilities Article, as enacted by Section 1 of this Act, shall be construed to apply to or be interpreted to have any effect on or application to any contract awarded before June 1, 2024 Section 5 of this Act shall be construed to apply retroactively and shall be applied to and interpreted to affect contracts for projects by an investor–owned gas company, electric company, or combination gas and electric company involving the construction, reconstruction, installation, demolition, restoration, or alteration of any underground gas or electric infrastructure of the company, and any related traffic control activities entered into on and after March 1, 2024. SECTION 3. 4. 7. AND BE IT FURTHER ENACTED, That , except as provided in Section 6 of this Act, a presently existing obligation or contract right may not be impaired in any way by this Act. SECTION 4. 5. 8. AND BE IT FURTHER ENACTED, That Section 2 3 of this Act shall be applicable to all taxable years beginning after June 30, 2024. SECTION 9. AND BE IT FURTHER ENACTED, That § 7–714 of the Public Utilities Article, as enacted by Section 1 of this Act, shall be construed to apply only prospectively and may not be applied or interpreted to have any effect on or application to the development of a solar energy generating system begun before the effective date of this Act. SECTION 10. AND BE IT FURTHER ENACTED, That Section 2 of this Act shall take effect July 1, 2024. It shall remain effective for a period of 3 years and, at the end of WES MOORE, Governor Ch. 595 – 25 – June 30, 2027, Section 2 of this Act, with no further action required by the General Assembly, shall be abrogated and of no further force and effect. SECTION 6. 10. 11. AND BE IT FURTHER ENACTED, That Section 3 4 of this Act shall take effect January 1, 2025. SECTION 5. 7. 11. 12. AND BE IT FURTHER ENACTED, That , except as provided in Section 6 Sections 9 and 10 10 and 11 of this Act, this Act shall take effect June 1, 2024. Approved by the Governor, May 9, 2024.