EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
[Brackets] indicate matter deleted from existing law.
*hb1035*
HOUSE BILL 1035
C5, M5 5lr2358
CF SB 937
By: The Speaker and Delegate Wilson
Introduced and read first time: February 5, 2025
Assigned to: Economic Matters
A BILL ENTITLED
AN ACT concerning 1
Public Utilities – Electricity Generation Planning – Procurement, Permitting, 2
and Co–Location 3
(Next Generation Energy Act) 4
FOR the purpose of requiring the Maryland Energy Administration, in coordination with 5
the Public Service Commission and the Department of Natural Resources, to pursue 6
certain agreements with neighboring states and federal agencies related to the 7
development of new nuclear energy generating stations; prohibiting an electricity 8
supplier or other owner of a certain generating station from entering into a certain 9
contract with a commercial or industrial customer under certain circumstances; 10
establishing a procurement process for the Commission to evaluate and approve 11
proposals and applications for dispatchable energy generation projects and nuclear 12
energy generation projects; requiring the Governor’s Office of Small, Minority, and 13
Women Business Affairs, in consultation with the Office of the Attorney General, to 14
provide certain assistance to potential applicants and minority investors and, in 15
consultation with the Office of the Attorney General and a certain applicant, 16
establish a certain plan; requiring the Commission to approve orders to facilitate the 17
financing of nuclear energy generation projects under certain circumstances; 18
requiring each electric company to procure a certain volume of nuclear energy from 19
a certain escrow account; requiring a certain nuclear energy generation project to 20
sell certain energy, capacity, and ancillary services into certain markets and 21
distribute the proceeds in a certain manner; establishing an expedited certificate of 22
public convenience and necessity review process for certain generating stations and 23
energy storage devices; and generally relating to energy generation and procurement 24
in Maryland. 25
BY repealing 26
Article – Public Utilities 27
Section 7–701(h–1) and (i) 28
Annotated Code of Maryland 29
(2020 Replacement Volume and 2024 Supplement) 30 2 HOUSE BILL 1035
BY renumbering 1
Article – Public Utilities 2
Section 7–701(i–1) 3
to be Section 7–701(i) 4
Annotated Code of Maryland 5
(2020 Replacement Volume and 2024 Supplement) 6
BY repealing and reenacting, without amendments, 7
Article – Public Utilities 8
Section 1–101(a) 9
Annotated Code of Maryland 10
(2020 Replacement Volume and 2024 Supplement) 11
BY adding to 12
Article – Public Utilities 13
Section 1–101(w–1) and (w–2), 7–207(b)(1)(iv) and (v), 7–207.4, 7–211, and 7–506.1; 14
and 7–1201 through 7–1218 to be under the new subtitle “Subtitle 12. Energy 15
Procurement” 16
Annotated Code of Maryland 17
(2020 Replacement Volume and 2024 Supplement) 18
BY repealing and reenacting, with amendments, 19
Article – Public Utilities 20
Section 7–207(b)(1)(i) 21
Annotated Code of Maryland 22
(2020 Replacement Volume and 2024 Supplement) 23
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 24
That Section(s) 7–701(h–1) and (i) of Article – Public Utilities of the Annotated Code of 25
Maryland be repealed. 26
SECTION 2. AND BE IT FURTHER ENACTED, That Section (s) 7–701(i–1) of 27
Article – Public Utilities of the Annotated Code of Maryland be renumbered to be Section(s) 28
7–701(i). 29
SECTION 3. AND BE IT FURTHER ENACTED, That the Laws of Maryland read 30
as follows: 31
Article – Public Utilities 32
1–101. 33
(a) In this division the following words have the meanings indicated. 34
(W–1) “PJM INTERCONNECTION ” OR “PJM INTERCONNECTION , LLC” 35
MEANS PJM INTERCONNECTION , LLC OR ANY SUCCESSOR ORG ANIZATION THAT 36 HOUSE BILL 1035 3
SERVICES THE PJM REGION. 1
(W–2) “PJM REGION” MEANS THE CONTROL AR EA ADMINISTERED BY PJM 2
INTERCONNECTION , AS THE AREA MAY CHAN GE FROM TIME TO TIME . 3
7–211. 4
(A) THE GENERAL ASSEMBLY FINDS AND DE CLARES THAT IT IS TH E POLICY 5
OF THE STATE TO ENCOURAGE TH E DEVELOPMENT OF CLE AN, CARBON–FREE 6
NUCLEAR POWER , INCLUDING DEVELOPMEN T THROUGH INNOVATIVE DESIGNS. 7
(B) THE MARYLAND ENERGY ADMINISTRATION , IN COORDINATION WITH 8
THE COMMISSION AND THE DEPARTMENT OF NATURAL RESOURCES, SHALL 9
PURSUE: 10
(1) COST–SHARING AGREEMENTS W ITH NEIGHBORING STAT ES IN THE 11
PJM REGION TO MITIGATE T HE RISKS OF DEVELOPI NG NEW NUCLEAR ENERG Y 12
GENERATING STATIONS ; AND 13
(2) AGREEMENTS WITH FEDE RAL AGENCIES REGARDING THE SITING 14
OF SMALL MODULAR REA CTORS: 15
(I) ON FEDERAL LAND ; OR 16
(II) ON OR NEAR FEDERAL F ACILITIES, INCLUDING MILITARY 17
AND NATIONAL SECURIT Y INSTALLATIONS . 18
(C) ON OR BEFORE DECEMBER 1, 2026, THE MARYLAND ENERGY 19
ADMINISTRATION SHALL REPORT TO THE GENERAL ASSEMBLY, IN ACCORDANCE 20
WITH § 2–1257 OF THE STATE GOVERNMENT ARTICLE, ON: 21
(1) THE STATUS OF THE EF FORTS MADE UNDER SUB SECTION (B) OF 22
THIS SECTION , INCLUDING AN ASSESSM ENT OF ANY OPPORTUNI TIES TO 23
PARTICIPATE WITH OTH ER STATES, FEDERAL AGENCIES , AND PUBLIC OR PRIVAT E 24
PARTNERS IN A MULTIS TATE PROCUREMENT OF NEW NUCLEAR ENERGY 25
TECHNOLOGY ; AND 26
(2) AN EVALUATION AND ST ATUS OF THE NUCLEAR ENERGY 27
PROCUREMENT PROCESS ESTABLISHED UNDER SUBTITLE 12, PART II OF THIS 28
TITLE. 29
7–506.1. 30
4 HOUSE BILL 1035
(A) (1) IN THIS SECTION THE F OLLOWING WORDS HAVE THE MEANINGS 1
INDICATED. 2
(2) “CONSTRUCTION ” HAS THE MEANING STAT ED IN § 7–207 OF THIS 3
TITLE. 4
(3) “LARGE LOAD CUSTOMER ” MEANS A COMMERCIAL O R 5
INDUSTRIAL CUSTOMER WITH AN EXPECTED LOA D DEMAND OF AT LEAST 100 6
MEGAWATTS . 7
(B) THIS SECTION DOES NOT APPLY TO THE USE OF ELECTRICITY FROM AN 8
ON–SITE GENERATING STAT ION THAT HAS BEEN AP PROVED UNDER § 7–207.1 OF 9
THIS TITLE. 10
(C) EXCEPT AS PROVIDED BY FEDERAL LAW AND SUBS ECTION (D) OF THIS 11
SECTION, AN ELECTRICITY SUPPL IER OR OTHER OWNER O F A GENERATING STATI ON 12
MAY NOT ENTER INTO A CONTRACT FOR THE PRO VISION OF THE DIRECT SUPPLY OF 13
ELECTRICITY TO A COM MERCIAL OR INDUSTRIA L CUSTOMER IN A WAY THAT 14
BYPASSES: 15
(1) INTERCONNECTION WITH THE ELECTRIC TRANSMI SSION AND 16
DISTRIBUTION SYSTEMS; OR 17
(2) THE DISTRIBUTION SER VICES OF AN ELECTRIC COMPANY. 18
(D) AN ELECTRICITY SUPPLI ER OR OTHER OWNER OF A GENERATING 19
STATION MAY ENTER IN TO A CONTRACT FOR TH E PROVISION OF THE D IRECT SUPPLY 20
OF ELECTRICITY TO A LARGE LOAD CUSTOMER IN A WAY THAT BYPASSES 21
INTERCONNECTION WITH THE ELECTRIC TRANSMI SSION AND DISTRIBUTI ON 22
SYSTEMS OR THE DISTR IBUTION SERVICES OF AN ELECTRIC COMPANY IF THE 23
GENERATING STATION : 24
(1) (I) INCREASES ITS GENERA TION OUTPUT FROM EXI STING 25
LEVELS TO A LEVEL TH AT MEETS 100% OF THE LARGE LOAD CU STOMER’S EXPECTED 26
LOAD DEMAND ; OR 27
(II) CREATES NEW GENERATI ON OUTPUT AT A LEVEL THAT 28
MEETS 100% OF THE LARGE LOAD CU STOMER’S EXPECTED LOAD DEMA ND; AND 29
(2) OBTAINS, IF NECESSARY: 30
(I) A CERTIFICATE OF PUB LIC CONVENIENCE AND NECESSITY 31
FOR THE CONSTRUCTION OF THE GENERATING ST ATION IN ACCORDANCE WITH § 32 HOUSE BILL 1035 5
7–207 OF THIS TITLE AND AN Y OTHER ASSOCIATED S TANDARD; AND 1
(II) ANY OTHER STANDARD S ITING APPROVALS AND PERMITS 2
RELATED TO THE CONST RUCTION OF A GENERAT ING STATION. 3
SUBTITLE 12. ENERGY PROCUREMENT . 4
PART I. EMERGENCY ENERGY PROCUREMENT . 5
7–1201. 6
(A) IN THIS PART THE FOLL OWING WORDS HAVE THE MEANINGS 7
INDICATED. 8
(B) “DISPATCHABLE ENERGY G ENERATION” MEANS A GENERATING 9
STATION OR ENERGY ST ORAGE DEVICE WITH : 10
(1) AN EFFECTIVE LOAD CA RRYING CAPABILITY OF AT LEAST 65%, AS 11
DETERMINED BY PJM INTERCONNECTION ’S MOST RECENT ELCC CLASS RATINGS; 12
AND 13
(2) A LOWER GREENHOUSE G AS EMISSIONS PROFILE THAN COAL OR 14
OIL ENERGY GENERATIN G STATIONS. 15
(C) “EFFECTIVE LOAD CARRYI NG CAPABILITY” OR “ELCC” MEANS THE 16
EXPECTED CAPACITY CO NTRIBUTION OF AN ENE RGY RESOURCE DURING PJM 17
INTERCONNECTION ’S OPERATING HOURS WH EN THERE IS HIGH ELE CTRICITY 18
DEMAND AND LOW RESOU RCE OUTPUT. 19
(D) “ENERGY STORAGE DEVICE ” HAS THE MEANING STAT ED IN § 7–216 OF 20
THIS TITLE. 21
(E) “GENERATING STATION ” HAS THE MEANING STAT ED IN § 7–207 OF THIS 22
TITLE. 23
7–1202. 24
(A) (1) ON OR BEFORE OCTOBER 1, 2025, THE COMMISSION SHALL ISSU E 25
ONE OR MORE COMPETIT IVE SOLICITATIONS FO R PROPOSALS FOR CONS TRUCTING 26
OR EXPANDING DISPATC HABLE ENERGY GENERATI ON IN THE STATE. 27
6 HOUSE BILL 1035
(2) THE COMMISSION SHALL SET THE CLOSING DATE FOR THE 1
SOLICITATION PERIOD TO BE NOT SOONER THA N 120 DAYS AFTER THE REQUE ST FOR 2
PROPOSALS IS ISSUED UNDER PARAGRAPH (1) OF THIS SUBSECTION . 3
(B) THE COMMISSION MAY PROVIDE FOR AN ADDIT IONAL SOLICITATION 4
PERIOD IF THE CAPACI TY SPECIFIED UNDER § 7–1203(B)(1) OF THIS SUBTITLE HAS 5
NOT BEEN MET DURING THE INITIAL SOLICITA TION PERIOD. 6
(C) THE COSTS RELATED TO THE CONSTRUCTION OR OPERATION OF A 7
DISPATCHABLE ENERGY GENERAT ION PROJECT APPROVED IN ACCORDANCE WITH 8
THIS PART MAY NOT BE RECOVERED THROUGH UT ILITY RATES. 9
7–1203. 10
(A) SUBJECT TO SUBSECTION (B) OF THIS SECTION, UNLESS EXTENDED BY 11
MUTUAL CONSENT OF TH E PARTIES, THE COMMISSION SHALL APPR OVE, 12
CONDITIONALLY APPROV E, OR DENY A PROPOSAL SU BMITTED IN RESPONSE TO A 13
SOLICITATION ISSUED UNDER § 7–1202 OF THIS SUBTITLE WIT HIN 90 DAYS AFTER 14
THE CLOSE OF THE SOL ICITATION PERIOD . 15
(B) (1) SUBJECT TO PARAGRAPH (2) OF THIS SUBSECTION , THE 16
COMBINED TOTAL CAPAC ITY OF DISPATCHABLE ENERGY GENERATION PRO JECTS 17
APPROVED UNDER THIS SECTION SHALL BE GRE ATER THAN THE COMBIN ED 18
SUMMER PEAK CAPACITY PROFILE OF COAL AND OIL ENERGY GENERATIN G 19
STATIONS IN THE STATE AS OUTLINED UND ER TABLE 9 OF THE COMMISSION’S 20
TEN–YEAR PLAN (2024–2033) OF ELECTRIC COMPANIES IN MARYLAND. 21
(2) THE COMBINED TOTAL CA PACITY OF NATURAL GA S 22
DISPATCHABLE ENERGY GENERATION PROJECTS APPROVED UNDER THIS SECTION 23
MAY NOT EXCEED THE C OMBINED SUMMER PEAK CAPACITY PROFILE OF COAL AND 24
OIL ENERGY GENERATIN G STATIONS IN THE STATE AS OUTLINED UNDER TABLE 9 25
OF THE COMMISSION’S TEN–YEAR PLAN (2024–2033) OF ELECTRIC COMPANIES IN 26
MARYLAND. 27
(C) ON AND BEFORE JUNE 30, 2030, A DISPATCHABLE ENERG Y 28
GENERATION PROJECT A PPROVED UNDER THIS S ECTION SHALL BE SUBJ ECT TO THE 29
EXPEDITED CERTIFICAT E OF PUBLIC CONVENIE NCE AND NECESSITY PR OCESS 30
UNDER § 7–207.4 OF THIS TITLE. 31
7–1204. 32
HOUSE BILL 1035 7
THE COMMISSION SHALL INCL UDE SPECIFICATIONS I N A SOLICITATION 1
ISSUED UNDER § 7–1202 OF THIS SUBTITLE THA T REQUIRE EACH PROPO SAL FOR A 2
DISPATCHABLE ENERGY GENERATION PRO JECT TO: 3
(1) FOR A NATURAL GAS EN ERGY GENERATING STAT ION, ENSURE 4
THAT THE PROJECT CAN BE CONVERTED TO USE ONLY HYDROGEN OR A 5
ZERO–EMISSIONS BIOFUEL AS THE ENERGY SOURCE WH EN THE CONVERSION IS 6
FEASIBLE, AS DETERMINED BY THE COMMISSION; 7
(2) INCLUDE A COST–BENEFIT ANALYSIS THA T SHALL INCLUDE , AT A 8
MINIMUM: 9
(I) A DETAILED INPUT –OUTPUT ANALYSIS OF T HE IMPACT OF 10
THE PROJECT ON INCOM E, EMPLOYMENT , WAGES, AND TAXES IN THE STATE; 11
(II) DETAILED INFORMATION CONCERNING ASSUMED 12
EMPLOYMENT IMPACTS I N THE STATE, INCLUDING THE EXPECT ED DURATION OF 13
EMPLOYMENT OPPORTUNI TIES, THE SALARY OF EACH P OSITION, AND OTHER 14
SUPPORTING EVIDENCE OF EMPLOYMENT IMPACT S; 15
(III) AN ANALYSIS OF ANY I MPACT ON RESIDENTIAL , 16
COMMERCIAL , AND INDUSTRIAL RATEP AYERS OVER THE LIFE OF THE PROJECT; 17
(IV) AN ANALYSIS OF ANY L ONG–TERM EFFECT ON ENERG Y AND 18
CAPACITY MARKETS AS A RESULT OF THE PROJ ECT; 19
(V) AN ANALYSIS OF ANY I MPACT THE PROJECT WO ULD HAVE 20
ON BUSINESSES IN THE STATE; 21
(VI) AN ANALYSIS OF THE A NTICIPATED ENVIRONME NTAL 22
BENEFITS, HEALTH BENEFITS , AND ENVIRONMENTAL IM PACTS OF THE PROJECT TO 23
THE CITIZENS OF THE STATE; AND 24
(VII) AN ANALYSIS OF OTHER BENEFITS RESULTING F ROM THE 25
PROJECT, INCLUDING INCREASED IN–STATE CONSTRUCTION , OPERATION AND 26
MAINTENANCE NEEDS , AND EQUIPMENT PURCHASES ; 27
(3) INCLUDE A DETAILED D ESCRIPTION OF THE TI MELINE FOR 28
CONSTRUCTION OF THE PROJECT, INCLUDING: 29
(I) IDENTIFYING THE ENTI TY THAT HAS OWNERSHI P OR SITE 30
CONTROL OF THE PROJE CT SITE; 31
8 HOUSE BILL 1035
(II) QUEUE POSITION FOR PJM INTERCONNECTION APPRO VAL; 1
AND 2
(III) THE ABILITY TO PROCU RE MATERIALS , INCLUDING 3
TURBINES AND OTHER P IPELINE MATERIALS ; 4
(4) INCLUDE A DESCRIPTIO N OF THE LOCATION OF THE PROJECT 5
SITE, INCLUDING: 6
(I) THE PROXIMITY OF THE SITE TO EXISTING TRA NSMISSION 7
LINES AND RIGHTS–OF–WAY; AND 8
(II) WHETHER THE PROJECT WOULD BE RETROFITTIN G A 9
CURRENT OR PREVIOUS GENERATING STATION S ITE; AND 10
(5) IF APPLICABLE, INCLUDE A DESCRIPTIO N OF: 11
(I) THE TYPE AND AMOUNT OF CO–LOCATED ENERGY 12
GENERATION FROM TIER 1 RENEWABLE SOURC ES, AS DEFINED IN § 7–701 OF THIS 13
TITLE, THAT WOULD BE USED W ITH THE PROJECT ; 14
(II) THE AMOUNT OF CO –LOCATED ENERGY STORA GE THAT 15
WOULD BE USED WITH T HE PROJECT; 16
(III) THE USE OF CARBON CA PTURE OR SEQUESTRATI ON 17
TECHNOLOGY TO MITIGA TE GREENHOUSE GAS EM ISSIONS FROM THE PRO JECT; AND 18
(IV) THE AMOUNT OF HYDROG EN OR ZERO –EMISSIONS 19
BIOFUELS THAT THE PR OJECT WILL MIX WITH NATURAL GAS FOR ENER GY 20
GENERATION . 21
7–1205. 22
(A) THE COMMISSION SHALL USE THE FOLLOWING CRITER IA TO EVALUATE 23
AND COMPARE PROPOSAL S FOR DISPATCHABLE ENERGY GENERATION PR OJECTS 24
SUBMITTED DURING A S OLICITATION PERIOD U NDER § 7–1202 OF THIS SUBTITLE: 25
(1) THE LOWEST COST IMPA CT ON RATEPAYERS ; 26
(2) THE EXTENT TO WHICH THE COST –BENEFIT ANALYSIS SUB MITTED 27
UNDER § 7–1204 OF THIS SUBTITLE DEM ONSTRATES POSITIVE N ET ECONOMIC , 28
ENVIRONMENTAL , AND HEALTH BENEFITS TO THE STATE; 29
HOUSE BILL 1035 9
(3) THE TIMELINE FOR CONSTRU CTION OF THE PROJECT , 1
INCLUDING: 2
(I) IDENTIFYING THE ENT ITY THAT HAS OWNERSH IP OR SITE 3
CONTROL OF THE PROJE CT SITE; 4
(II) POSITION IN THE PJM INTERCONNECTION QUEUE ; AND 5
(III) ABILITY TO PROCURE M ATERIALS, INCLUDING TURBINES 6
AND OTHER PIPELINE M ATERIALS; 7
(4) THE LOCATION OF THE PROJECT SITE , INCLUDING THE 8
PROXIMITY OF THE SIT E TO EXISTING TRANSM ISSION LINES AND RIG HTS–OF–WAY; 9
(5) WHETHER THE PROJECT WOULD BE RETROFITTIN G A CURRENT 10
OR PAST GENERATING S TATION SITE; AND 11
(6) IF APPLICABLE: 12
(I) THE TYPE AND AMOUNT OF CO–LOCATED ENERGY 13
GENERATION FROM TIER 1 RENEWABLE SOURCES , AS DEFINED IN § 7–701 OF THIS 14
TITLE, THAT WOULD BE USED W ITH THE PROJECT ; 15
(II) THE AMOUNT OF CO –LOCATED ENERGY STORA GE THAT 16
WOULD BE USED WITH T HE PROJECT; 17
(III) THE USE OF CARBON CAPT URE OR SEQUESTRATION 18
TECHNOLOGY TO MITIGA TE GREENHOUSE GAS EM ISSIONS FROM THE PRO JECT; AND 19
(IV) THE AMOUNT OF HYDROG EN OR ZERO –EMISSIONS 20
BIOFUELS THAT THE PR OJECT WILL MIX WITH NATURAL GAS FOR ENER GY 21
GENERATION . 22
(B) IN EVALUATING AND COMPARING A PROP OSAL FOR A DISPATCHABLE 23
ENERGY GENERATION PR OJECT UNDER SUBSECTI ON (A) OF THIS SECTION , THE 24
COMMISSION MAY CONTRA CT FOR THE SERVICES OF INDEPENDENT CONSU LTANTS 25
AND EXPERTS. 26
7–1206. RESERVED. 27
7–1207. RESERVED. 28
PART II. NUCLEAR ENERGY PROCUREMENT . 29 10 HOUSE BILL 1035
7–1208. 1
(A) AFTER THE EFFECTIVE D ATE OF COMMISSION REGULATION S 2
IMPLEMENTING THIS PA RT, A PERSON MAY SUBMIT AN APPLICATION TO TH E 3
COMMISSION FOR APPROV AL OF A PROPOSED NUC LEAR ENERGY GENERATI ON 4
PROJECT, INCLUDING AN APPLICA TION TO UPGRADE T HE GENERATION 5
CAPABILITIES OF AN E XISTING NUCLEAR ENER GY GENERATING STATIO N. 6
(B) (1) ON RECEIPT OF AN APPL ICATION FOR APPROVAL OF A PROPOSED 7
NUCLEAR ENERGY GENER ATION PROJECT , THE COMMISSION SHALL : 8
(I) OPEN AN APPLICATION PERIOD DURING WHICH OTHER 9
INTERESTED PERSONS MAY SUBMIT APPLICATIONS FOR APPROVAL OF A PR OPOSED 10
NUCLEAR ENERGY GENER ATION PROJECT ; AND 11
(II) PROVIDE NOTICE THAT THE COMMISSION IS ACCEPTI NG 12
APPLICATIONS FOR APP ROVAL OF PROPOSED NU CLEAR ENERGY GENERAT ION 13
PROJECTS. 14
(2) THE COMMISSION SHALL SET THE CLOSING DATE FOR THE 15
APPLICATION PERIOD T O BE NOT SOONER THAN 90 DAYS AFTER THE NOTIC E 16
PROVIDED UNDER PARAG RAPH (1) OF THIS SUBSECTION . 17
(C) THE COMMISSION SHALL PROV IDE AT LEAST TWO ADD ITIONAL 18
APPLICATION PERIODS BEFORE JANUARY 1, 2031. 19
(D) THE COMMISSION MAY PROVID E ADDITIONAL APPLICA TION PERIODS 20
THAT MEET THE REQUIR EMENTS OF THIS SECTI ON. 21
7–1209. 22
UNLESS EXTENDED BY MU TUAL CONSENT OF THE PARTIES, THE COMMISSION 23
SHALL APPROVE , CONDITIONALLY APPROV E, OR DENY AN APPLICATI ON SUBMITTED 24
UNDER § 7–1208 OF THIS SUBTITLE WIT HIN 1 YEAR AFTER THE CLOSE OF THE 25
APPLICATION PERIOD . 26
7–1210. 27
AN APPLICATION SUBMIT TED FOR A NUCLEAR EN ERGY GENERATION 28
PROJECT UNDER § 7–1208 OF THIS SUBTITLE SHA LL INCLUDE: 29
HOUSE BILL 1035 11
(1) A DETAILED DESCRIPTI ON AND FIN ANCIAL ANALYSIS OF T HE 1
PROJECT; 2
(2) THE PROPOSED METHOD OF FINANCING THE PRO JECT, 3
INCLUDING DOCUMENTAT ION DEMONSTRATING TH AT THE APPLICANT HAS APPLIED 4
FOR ALL CURRENT ELIG IBLE STATE AND FEDERAL GRA NTS, REBATES, TAX CREDITS, 5
LOAN GUARANTEES , AND OTHER PR OGRAMS AVAILABLE TO OFFSET THE COST OF 6
THE PROJECT OR PROVI DE TAX ADVANTAGES ; 7
(3) A COMMITMENT THAT TH E APPLICANT WILL USE BEST EFFORTS 8
TO APPLY FOR ALL ELI GIBLE STATE AND FEDERAL GRA NTS, REBATES, TAX CREDITS, 9
LOAN GUARANTEES , OR OTHER SIMILAR BEN EFITS AS THOSE BENEFITS BE COME 10
AVAILABLE; 11
(4) A COST–BENEFIT ANALYSIS THA T SHALL INCLUDE , AT A MINIMUM: 12
(I) A DETAILED INPUT –OUTPUT ANALYSIS OF T HE IMPACT OF 13
THE PROJECT ON INCOM E, EMPLOYMENT , WAGES, AND TAXES IN THE STATE; 14
(II) DETAILED INFORMATION CONCERNING ASSUMED 15
EMPLOYMENT IMPACTS I N THE STATE, INCLUDING THE EXPECT ED DURATION OF 16
EMPLOYMENT OPPORTUNI TIES, THE SALARY OF EACH P OSITION, AND OTHER 17
SUPPORTING EVIDENCE OF EMPLOYMENT IMPACT S; 18
(III) AN ANALYSIS OF ANY I MPACT ON RESIDENTIAL , 19
COMMERCIAL , AND INDUSTRIAL RATEP AYERS OVER THE LIFE OF THE PROJECT ; 20
(IV) AN ANALYSIS OF ANY L ONG–TERM EFFECT ON ENERG Y AND 21
CAPACITY MARKETS AS A RESULT OF THE PROJ ECT; 22
(V) AN ANALYSIS OF ANY I MPACT THE PROJECT WO ULD HAVE 23
ON BUSINESSES IN THE STATE; 24
(VI) AN ANALYSIS OF THE A NTICIPATED ENVIRONME NTAL 25
BENEFITS, HEALTH BENEFITS , AND ENVIRONMENTAL IM PACTS OF THE PROJECT TO 26
THE CITIZENS OF THE STATE; AND 27
(VII) AN ANALYSIS OF OTHER BENEFITS RESULTING F ROM THE 28
PROJECT, INCLUDING INCREASED IN–STATE CONSTRUCTION , OPERATION AND 29
MAINTENANCE NEEDS , AND EQUIPMENT PURCHA SES; 30
12 HOUSE BILL 1035
(5) A PROPOSED LONG –TERM PRICING SCHEDUL E FOR THE PROJECT 1
THAT SHALL SPECIFY A PRICE FOR THE GENERA TION ATTRIBUTES , INCLUDING THE 2
ENERGY, CAPACITY, ANCILLARY SERVICES , AND ENVIRONMEN TAL ATTRIBUTES ; 3
(6) A DECOMMISSIONING AN D WASTE STORAGE PLAN FOR THE 4
PROJECT, INCLUDING PROVISIONS FOR DECOMMISSIONING OR WASTE STORAGE AS 5
REQUIRED BY THE U.S. NUCLEAR REGULATORY COMMISSION; 6
(7) A COMMITMENT TO ABID E BY THE REQUIREMENT S SET FORTH IN 7
§ 7–1213 OF THIS SUBTITLE; 8
(8) A DESCRIPTION OF THE APPLICANT’S PLAN FOR ENGAGING SMALL 9
BUSINESSES, AS DEFINED IN § 14–501 OF THE STATE FINANCE AND PROCUREMENT 10
ARTICLE; 11
(9) IF APPLICABLE, THE STATEMENT SPECIF IED IN § 7–1211(C)(2) OF 12
THIS SUBTITLE; AND 13
(10) ANY OTHER INFORMATIO N THE COMMISSION REQUIRES . 14
7–1211. 15
(A) THE COMMISSION SHALL USE THE FOLLOWING CRITER IA TO EVALUATE 16
AND COMPARE APPLICAT IONS FOR NUCLEAR ENE RGY GENERATION PROJE CTS 17
SUBMITTED DURING AN APPLICATION PERIOD U NDER § 7–1208 OF THIS SUBTITLE: 18
(1) THE LOWEST COST IMPA CT ON RATEPAYERS OF THE PRICE SET 19
UNDER A PROPOSED PRI CING SCHEDULE ; 20
(2) POTENTIAL REDUCTIONS IN TRANSMISSION CONG ESTION PRICES 21
WITHIN THE STATE; 22
(3) POTENTIAL CHANGES IN CAPACITY PRICES WITH IN THE STATE; 23
(4) POTENTIAL REDUCTIONS IN LOCATIONAL MARGIN AL PRICING; 24
(5) POTENTIAL LONG –TERM CHANGES IN CAPA CITY PRICES WITHIN 25
THE STATE FROM THE PROJEC T AS IT COMPARES TO CONVENTIONAL ENERGY 26
SOURCES; 27
(6) THE EXTENT TO WHICH THE COST–BENEFIT ANALYSIS SUB MITTED 28
UNDER § 7–1210 OF THIS SUBTITLE DEM ONSTRATES POSITIVE N ET ECONOMIC , 29
ENVIRONMENTAL , AND HEALTH BENEFITS TO THE STATE; 30 HOUSE BILL 1035 13
(7) THE EXTENT TO WHICH AN APPLICANT ’S PLAN FOR ENGAGING 1
SMALL BUSINESSES MEE TS THE GOALS SPECIFI ED IN TITLE 14, SUBTITLE 5 OF THE 2
STATE FINANCE AND PROCUREMENT ARTICLE; 3
(8) THE EXTENT TO WHICH AN APPLICANT’S PLAN PROVIDES FOR THE 4
USE OF SKILLED LABOR , PARTICULARLY WITH RE GARD TO THE CONSTRUC TION AND 5
MANUFACTURING COMPON ENTS OF THE PROJECT , THROUGH OUTREACH , HIRING, 6
OR REFERRAL SYSTEMS THAT ARE AFFILIATED W ITH REGISTERED APPRE NTICESHIP 7
PROGRAMS UNDER TITLE 11, SUBTITLE 4 OF THE LABOR AND EMPLOYMENT 8
ARTICLE; 9
(9) THE EXTENT TO WHICH AN APPLICANT’S PLAN PROVIDES FOR THE 10
USE OF AN AGREEMENT DESIGNED TO ENSURE T HE USE OF SKILLED LA BOR AND TO 11
PROMOTE THE PROMPT , EFFICIENT, AND SAFE COMPLETION OF THE PROJECT , 12
PARTICULARLY WITH RE GARD TO THE CONSTRUC TION, MANUFACTURING , AND 13
MAINTENANCE OF THE P ROJECT; 14
(10) THE EXTENT TO WHICH AN APPLICANT ’S PLAN PROVIDES FOR 15
COMPENSATION TO ITS EMPLOYEES AND SUBCONTRACTORS CONSI STENT WITH 16
WAGES OUTLINED UNDER TITLE 17, SUBTITLE 2 OF THE STATE FINANCE AND 17
PROCUREMENT ARTICLE; 18
(11) SITING AND PROJECT F EASIBILITY; 19
(12) THE EXTENT TO WHICH THE PROJECT WOULD RE QUIRE 20
TRANSMISSION OR DIST RIBUTION INFRASTRUCT URE IMPROVEMENTS IN TH E 21
STATE; AND 22
(13) ANY OTHER CRITERIA T HAT THE COMMISSION DETERMINES ARE 23
APPROPRIATE . 24
(B) IN EVALUATING AND COM PARING AN APPLICATIO N FOR A NUCLEAR 25
ENERGY GENERATION PR OJECT UNDER SUBSECTI ON (A) OF THIS SECTION , THE 26
COMMISSION MAY CO NTRACT FOR THE SERVI CES OF INDEPENDENT C ONSULTANTS 27
AND EXPERTS. 28
(C) (1) IN THIS PARAGRAPH , “MINORITY” MEANS AN INDIVIDUAL WHO IS 29
A MEMBER OF ANY OF T HE GROUPS LISTED IN § 14–301(K)(1)(I) OF THE STATE 30
FINANCE AND PROCUREMENT ARTICLE. 31
(2) IF AN APPLICANT IS SEEKING INVESTORS IN A PROPO SED 32
NUCLEAR ENERGY GENER ATION PROJECT , THE APPLICANT SHALL TAKE THE 33 14 HOUSE BILL 1035
FOLLOWING STEPS BEFO RE THE COMMISSION MAY APPROV E THE PROPOSED 1
PROJECT: 2
(I) MAKE SERIOUS , GOOD–FAITH EFFORTS TO SOL ICIT AND 3
INTERVIEW A REASONA BLE NUMBER OF MINORI TY INVESTORS; 4
(II) AS PART OF THE APPLI CATION, SUBMIT A STATEMENT T O 5
THE COMMISSION THAT LISTS THE NAMES AND ADDRES SES OF ALL MINORITY 6
INVESTORS INTERVIEWE D AND WHETHER OR NOT ANY OF THOSE INVESTO RS HAVE 7
PURCHASED AN EQUITY SHARE IN THE ENTITY SUBMITTIN G THE APPLICATION ; 8
(III) SIGN A MEMORANDUM OF UNDERSTANDING WITH T HE 9
COMMISSION THAT REQUI RES THE APPLICANT TO AGAIN MAKE SERIOUS , 10
GOOD–FAITH EFFORTS TO SOL ICIT AND INTERVIEW A REASONABLE NUMBER OF 11
MINORITY INVESTORS I N ANY FUTURE ATTEMPTS TO RAISE VE NTURE CAPITAL OR 12
ATTRACT NEW INVESTOR S TO THE PROJECT ; 13
(IV) SIGN A MEMORANDUM OF UNDERSTANDING WITH T HE 14
COMMISSION THAT REQUI RES THE APPLICANT TO USE BEST EFFORTS AND 15
EFFECTIVE OUTREACH T O OBTAIN , AS A GOAL , CONTRACTORS AND 16
SUBCONTRACTORS FOR THE PRO JECT THAT ARE MINORI TY BUSINESS 17
ENTERPRISES , TO THE EXTENT PRACTI CABLE, AS SUPPORTED BY A DI SPARITY 18
STUDY; AND 19
(V) SIGN A MEMORANDUM OF UNDERSTANDING WITH T HE 20
COMMISSION AND SKILLE D LABOR ORGANIZATION S THAT REQUIRES THE 21
APPLICANT TO FOLLOW THE PORTIONS OF THE APPLICANT ’S PLAN THAT RELATE T O 22
THE CRITERIA SET FOR TH IN SUBSECTION (A)(8) AND (9) OF THIS SECTION. 23
(3) THE GOVERNOR’S OFFICE OF SMALL, MINORITY, AND WOMEN 24
BUSINESS AFFAIRS, IN CONSULTATION WITH THE OFFICE OF THE ATTORNEY 25
GENERAL, SHALL PROVIDE ASSIST ANCE TO ALL POTENTIA L APPLICANTS AND 26
POTENTIAL MINORITY I NVESTORS TO SATISFY THE REQUIREMENTS UND ER 27
PARAGRAPH (2)(I) AND (III) OF THIS SUBSECTION . 28
7–1212. 29
(A) THE COMMISSION MAY NOT AP PROVE AN APPLICATION FOR A NUCLEAR 30
ENERGY GENERATION PROJECT S UBMITTED UNDER § 7–1208 OF THIS SUBTITLE 31
UNLESS: 32
(1) THE PROJECT IS CONNE CTED TO THE ELECTRIC DISTRIBUTION 33
SYSTEM SERVING THE STATE; 34 HOUSE BILL 1035 15
(2) OVER THE DURATION OF THE PROPOSED LONG –TERM PRICING 1
SCHEDULE, THE PROJECTED NET RA TE IMPACT F OR AN AVERAGE RESIDE NTIAL 2
CUSTOMER, BASED ON ANNUAL CONS UMPTION OF 12,000 KILOWATT–HOURS AND 3
COMBINED WITH THE PR OJECTED NET RATE IMP ACT OF OTHER NUCLEAR ENERGY 4
GENERATION PROJECTS , DOES NOT EXCEED AN A MOUNT DETERMINED BY THE 5
COMMISSION; 6
(3) OVER THE DU RATION OF THE PROPOS ED LONG–TERM PRICING 7
SCHEDULE, THE PROJECTED NET RA TE IMPACT FOR ALL NO NRESIDENTIAL 8
CUSTOMERS , CONSIDERED AS A BLEN DED AVERAGE AND COMB INED WITH THE 9
PROJECTED NET RATE I MPACT OF OTHER NUCLE AR ENERGY GENERATION 10
PROJECTS, DOES NOT EXCEED A PERCENTAGE DETERMI NED BY THE COMMISSION 11
OF NONRESIDENTIAL CU STOMERS’ TOTAL ANNUAL ELECTRI C BILLS; AND 12
(4) THE PRICE SPECIFIED IN THE PROPOSED LONG –TERM PRICING 13
SCHEDULE DOES NOT EX CEED AN AMOUNT DETER MINED BY THE COMMISSION. 14
(B) WHEN CALCULATING THE PROJECTED NET AVERAG E RATE IMPACTS 15
FOR NUCLEAR ENERGY G ENERATION PROJECTS U NDER THIS SECTION , THE 16
COMMISSION SHALL APPL Y THE SAME NET LONG –TERM COST PER 17
MEGAWATT –HOUR TO RESIDENTIAL AND NONRESIDENTIAL C USTOMERS. 18
(C) THE COMMISSION S HALL KEEP CONFIDENTI AL ANY AMOUNTS 19
DETERMINED UNDER SUB SECTION (A) OF THIS SECTION. 20
7–1213. 21
(A) AN APPLICATION FOR A NUCLEAR ENERGY GENER ATION PROJECT 22
SUBMITTED UNDER § 7–1208 OF THIS SUBTITLE IS SUBJECT TO A COMMUNI TY 23
BENEFIT AGREEMENT . 24
(B) A COMMUNI TY BENEFIT AGREEMENT SHALL: 25
(1) BE APPLICABLE TO THE DEVELOPMENT OF A NUC LEAR ENERGY 26
GENERATION PROJECT ; 27
(2) PROMOTE INCREASED OP PORTUNITIES FOR LOCA L BUSINESSES 28
AND SMALL, MINORITY, WOMEN–OWNED, AND VETERAN –OWNED BUSINESSES IN THE 29
RENEWABLE ENERGY I NDUSTRY; 30
(3) ENSURE THE TIMELY , SAFE, AND EFFICIENT COMPLE TION OF THE 31
PROJECT BY: 32 16 HOUSE BILL 1035
(I) FACILITATING A STEAD Y SUPPLY OF HIGHLY S KILLED 1
CRAFT WORKERS WHO SH ALL BE PAID NOT LESS THAN THE PREVAILING WAGE RATE 2
DETERMINED BY THE COMMISSIONER OF LABOR AND INDUSTRY UNDER TITLE 17, 3
SUBTITLE 2 OF THE STATE FINANCE AND PROCUREMENT ARTICLE; AND 4
(II) GUARANTEEING THAT TH E CONSTRUCTION WORK 5
PERFORMED IN CONNECT ION WITH THE PROJECT WILL BE SUBJECT TO A N 6
AGREEMENT THAT : 7
1. IS WITH ONE OR MORE LABOR ORGANIZATIONS ; AND 8
2. ESTABLISHES, IN ACCORDANCE WITH T HIS SECTION, 9
THE TERMS AND CONDIT IONS OF EMPLOYMENT A T THE CONSTRUCTION S ITE OF THE 10
PROJECT OR A PORTION OF THE PROJECT ; 11
(4) PROMOTE SAFE COMPLET ION OF THE PROJECT B Y ENSURING 12
THAT AT LEAST 80% OF THE CRAFT WORKERS ON THE PROJECT HAVE COMPLETED 13
AN OCCUPATIONAL SAFETY AND HEALTH ADMINISTRATION 10–HOUR OR 30–HOUR 14
COURSE; 15
(5) PROMOTE CAREER TRAIN ING OPPORTUNITIES IN THE 16
MANUFACTURING , MAINTENANCE , AND CONSTRUCTION IND USTRIES FOR LOCAL 17
RESIDENTS, VETERANS, WOMEN, AND MINORITIES ; 18
(6) PROVIDE FOR BEST EFF ORTS AND EFFECTIVE O UTREACH TO 19
OBTAIN, AS A GOAL, THE USE OF A WORKFOR CE INCLUDING MINORIT IES, TO THE 20
EXTENT PRACTICABLE ; 21
(7) REFLECT A 21ST–CENTURY LABOR –MANAGEMENT APPROACH BY 22
DEVELOPERS AND SUPPLIERS BASED ON C OOPERATION , HARMONY, AND 23
PARTNERSHIP THAT PRO ACTIVELY SEEKS TO EN SURE THAT WORKERS CA N FREELY 24
CHOOSE TO BOTH ORGAN IZE AND COLLECTIVELY BARGAIN; 25
(8) PROVIDE PLANS TO USE DOMESTIC IRON , STEEL, AND 26
MANUFACTURED GOODS T O THE GREATEST EX TENT PRACTICABLE BY DISCLOSING 27
CONTRACTED SUPPLIERS ; 28
(9) USE LOCALLY AND DOME STICALLY MANUFACTURE D 29
CONSTRUCTION MATERIA LS AND COMPONENTS ; 30
(10) MAXIMIZE THE USE OF SKILLED LOCAL LABOR , PARTICULARLY 31
WITH REGARD TO THE C ONSTRUCTION AND MANU FACTURING CO MPONENTS OF THE 32 HOUSE BILL 1035 17
PROJECT, USING METHODS INCLUD ING OUTREACH , HIRING, OR REFERRAL 1
METHODS THAT ARE AFF ILIATED WITH REGISTE RED APPRENTICESHIP P ROGRAMS 2
UNDER TITLE 11, SUBTITLE 4 OF THE LABOR AND EMPLOYMENT ARTICLE; 3
(11) GUARANTEE AGAINST ST RIKES, LOCKOUTS, AND SIMILAR 4
DISRUPTIONS; 5
(12) ENSURE THAT ALL WORK ON THE PROJECT FULLY CONFORMS TO 6
ALL RELEVANT STATE AND FEDERAL LAW S, RULES, AND REGULATIONS ; 7
(13) CREATE MUTUALLY BIND ING PROCEDURES FOR R ESOLVING 8
LABOR DISPUTES ARISI NG DURING THE TERM O F THE PROJECT; 9
(14) SET FORTH OTHER MECH ANISMS FOR LABOR –MANAGEMENT 10
COOPERATION ON MATTE RS OF MUTUAL INTERES T AND CONCERN , INCLUDING 11
PRODUCTIVITY , QUALITY OF WORK , SAFETY, AND HEALTH; AND 12
(15) BIND ALL CONTRACTORS AND SUBCONTRACTORS T O THE TERMS 13
OF THE AGREEME NT THROUGH THE INCLU SION OF APPROPRIATE PROVISIONS IN 14
ALL RELEVANT SOLICIT ATION AND CONTRACT D OCUMENTS. 15
7–1214. 16
(A) AN ORDER THE COMMISSION ISSUES APP ROVING AN APPLICATIO N FOR 17
A NUCLEAR ENERGY GEN ERATION PROJECT SUBM ITTED UNDER § 7–1208 OF THIS 18
SUBTITLE SHALL: 19
(1) SPECIFY THE LONG –TERM PRICING SCHEDUL E; 20
(2) SPECIFY THE DURATION OF THE LONG–TERM PRICING SCHEDUL E, 21
NOT TO EXCEED 30 YEARS; 22
(3) PROVIDE THAT : 23
(I) A PAYMENT MAY NOT BE MADE UNDER A LONG –TERM 24
PRICING SCHEDULE UNT IL ELECTRICITY SUPPL Y IS GENERATED BY THE PROJECT; 25
AND 26
(II) RATEPAYERS AND THE STATE SHALL BE HELD H ARMLESS 27
FOR ANY COST OVERRUN S ASSOCIATED WITH TH E PROJECT; AND 28
18 HOUSE BILL 1035
(4) REQUIRE THAT ANY DEB T INSTRUMENT ISSUED IN CONNECTION 1
WITH THE PROJECT INC LUDE LANGUAGE SPECIF YING THAT THE DEBT INSTRUMENT 2
DOES NOT ESTABLISH A DEBT, AN OBLIGATION , OR A LIABILITY OF TH E STATE. 3
(B) AN ORDER APPROVING A NUCLEAR ENERGY GENER ATION PROJECT 4
VESTS THE OWNER OF T HE PROJECT WITH THE RIGHT TO RECEIVE PAY MENTS 5
ACCORDING TO THE TER MS IN THE ORDER . 6
(C) ON OR BEFORE MARCH 1 EACH YEAR, THE COMMISSION SHALL REPO RT 7
TO THE GOVERNOR AND , IN ACCORDANCE WITH § 2–1257 OF THE STATE 8
GOVERNMENT ARTICLE, THE SENATE COMMITTEE ON EDUCATION, ENERGY, AND 9
THE ENVIRONMENT AND THE HOUSE ECONOMIC MATTERS COMMITTEE ON : 10
(1) APPLICANT COMPLIANCE WITH THE MINORITY BU SINESS 11
ENTERPRISE PARTICIPA TION GOALS UNDER § 7–1211(C) OF THIS SUBTITLE; AND 12
(2) WITH RESPECT TO THE COMMUNITY BENEFIT AG REEMENT UNDER 13
§ 7–1213 OF THIS SUBTITLE: 14
(I) THE AVAILABILITY AND USE OF OPPORT UNITIES FOR LOCAL 15
BUSINESSES AND SMALL , MINORITY, WOMEN–OWNED, AND VETERAN –OWNED 16
BUSINESSES; 17
(II) THE SUCCESS OF EFFOR TS TO PROMOTE CAREER TRAINING 18
OPPORTUNITIES IN THE MANUFACTURING , MAINTENANCE , AND CONSTRUCTION 19
INDUSTRIES FOR LOCAL RESIDENTS, VETERANS, WOMEN, AND MINORITIES ; AND 20
(III) COMPLIANCE WITH THE MINORITY WORKFORCE G OAL 21
UNDER § 7–1213(B) OF THIS SUBTITLE. 22
7–1215. 23
(A) (1) SUBJECT TO SUBSECTION (B) OF THIS SECTION , IF THE 24
COMMISSION APPROVES P ROPOSALS THAT DEMONS TRATE, BASED ON THE 25
CRITERIA SPECIFIED I N § 7–1210 OF THIS SUBTITLE , POSITIVE NET ECONOMI C, 26
ENVIRONMENTAL , AND HEALTH BENEFITS TO THE STATE, THE COMMISSION SHALL 27
APPROVE ORDERS TO FA CILITATE THE FINANCI NG OF NUCLEAR ENERGY 28
GENERATION PROJECTS . 29
(2) WHEN CALCULATING THE NET BENEFITS TO THE STATE UNDER 30
PARAGRAPH (1) OF THIS SUBSECTION , THE COMMISSION MAY CONTRA CT FOR THE 31
SERVICES OF INDEPEND ENT CONSULTANTS AND EXPERTS. 32
HOUSE BILL 1035 19
(B) THE COMMISSION MAY NOT AP PROVE AN ORDER TO FA CILITATE THE 1
FINANCING OF A NUCLE AR ENERGY GENERATION PROJECT UNLESS THE PROJE CT IS 2
SUBJECT TO A COMMUNI TY BENEFIT AGREEMENT UNDER § 7–1213 OF THIS 3
SUBTITLE. 4
7–1216. 5
(A) THE FINDINGS AND EVID ENCE RELIED ON BY TH E GENERAL ASSEMBLY 6
FOR THE CONTINUATION OF THE MINORITY BUSINESS ENTERPRISE PROGRAM 7
UNDER TITLE 14, SUBTITLE 3 OF THE STATE FINANCE AND PROCUREMENT 8
ARTICLE ARE INCORPORA TED IN THIS SECTION . 9
(B) TO THE EXTENT PRACTIC ABLE AND AUTHORIZED BY THE UNITED 10
STATES CONSTITUTION, AN APPLICANT APPROVE D FOR A NUCLEAR ENER GY 11
GENERATION PROJECT U NDER § 7–1209 OF THIS SUBTITLE SHALL COMPL Y WITH 12
THE STATE’S MINORITY BUSINESS ENTERPRISE PROGRAM. 13
(C) (1) WITHIN 6 MONTHS AFTER THE ISS UANCE OF AN ORDER TH AT 14
APPROVES A NUCLEAR E NERGY GENERATION PRO JECT AND INCLUDES A 15
LONG–TERM PRICING COMPONE NT, THE GOVERNOR’S OFFICE OF SMALL, 16
MINORITY, AND WOMEN BUSINESS AFFAIRS, IN CONSULTATION WITH THE OFFICE 17
OF THE ATTORNEY GENERAL AND THE APPRO VED APPLICANT , SHALL ESTABLISH A 18
CLEAR PLAN FOR SETTI NG REASONABLE AND AP PROPRIATE MINORITY B USINESS 19
ENTERPRISE PARTICIPA TION GOALS AND PROCE DURES FOR EACH PHASE O F THE 20
NUCLEAR ENERGY GENER ATION PROJECT . 21
(2) TO THE EXTENT PRACTIC ABLE, THE GOALS AND PROCED URES SET 22
IN ACCORDANCE WITH P ARAGRAPH (1) OF THIS SUBSECTION S HALL BE BASED ON 23
THE REQUIREMENTS OF TITLE 14, SUBTITLE 3 OF THE STATE FINANCE AND 24
PROCUREMENT ARTICLE AND THE REGUL ATIONS IMPLEMENTING THAT SUBTITLE . 25
(3) EVERY 6 MONTHS FOLLOWING THE ISSUANCE OF AN ORDER THAT 26
APPROVES A NUCLEAR E NERGY GENERATION PRO JECT AND INCLUDES A 27
LONG–TERM PRICING COMPONE NT, THE APPROVED APPLICANT SHALL SUB MIT A 28
REPORT ON THE PROGRE SS MADE TO ESTABLISH AND IMPLEMENT MINORI TY 29
BUSINESS ENTERPRISE GOALS AND PROCEDURES TO THE COMMISSION. 30
7–1217. 31
(A) THE COMMISSION SHALL ADOPT REGULATIONS TH AT: 32
(1) ESTABLISH THE NUCLEA R ENERGY LONG –TERM PRICING 33
PURCHASE OBLIGATION SUFFICIENTLY IN ADVA NCE TO ALLOW AN ELEC TRIC 34 20 HOUSE BILL 1035
COMPANY TO REFLECT N UCLEAR ENERGY LONG –TERM PRICING COSTS A S A 1
NONBYPASSABLE SURCHA RGE PAID BY ALL DIST RIBUTION CUSTOMERS O F THE 2
ELECTRIC COMPAN Y; 3
(2) ESTABLISH A NONBYPAS SABLE SURCHARGE THAT ALLOWS AN 4
ELECTRIC COMPANY TO RECOVER ALL COSTS AS SOCIATED WITH THE PU RCHASE OF 5
NUCLEAR ENERGY FROM ALL DISTRIBUTION CUS TOMERS OF THE ELECTR IC 6
COMPANY; 7
(3) ESTABLISH AN ESCROW ACCOUNT THAT IS UNDE R COMMISSION 8
SUPERVISION; AND 9
(4) DEFINE RULES THAT FA CILITATE AND ENSURE THE SECURE AND 10
TRANSPARENT TRANSFER OF REVENUES AND LONG –TERM PRICING PAYMENT S 11
AMONG PARTIES . 12
(B) (1) EACH ELECTRIC COMPANY SHALL PROCUR E FROM THE ESCROW 13
ACCOUNT ESTABLISHED BY REGULATION UNDER THIS SECTION A VOLUM E OF 14
NUCLEAR ENERGY EQUAL TO THE ELECTRIC COMP ANY’S RESPECTIVE PERCENT AGE 15
OF RETAIL ELECTRIC S ALES EACH YEAR . 16
(2) (I) SUBJECT TO ANY ESCROW ACCOUNT RESERVE 17
REQUIREMENT THE COMMISSION ESTABLISHES , IF THERE IS INSUFFIC IENT 18
NUCLEAR ENERGY AVAIL ABLE TO SATISFY THE ELECTRIC COMPANIES ’ NUCLEAR 19
ENERGY OBLIGATION , THE OVERPAYMENT SHAL L BE DISTRIBUTED TO ELECTRIC 20
COMPANIES TO BE REFU NDED OR CREDITED TO EACH DISTRIBUTION CU STOMER 21
BASED ON THE CUSTOMER ’S CONSUMPTION OF ELE CTRICITY SUPPLY THAT IS 22
SUBJECT TO THE RENEW ABLE ENERGY PORTFOLI O STANDARD. 23
(II) SUBJECT TO ANY ESCROW ACCOUNT RESERVE 24
REQUIREMENT THE COMMISSION ESTABLISHE S, THE CALCULATION OF A N 25
ELECTRIC COMPANY ’S NUCLEAR ENERGY PU RCHASE OBLIGATION SH ALL BE BASED 26
ON FINAL ELECTRICITY SALES DATA AS REPORT ED BY PJM INTERCONNECTION AND 27
MEASURED AT THE CUST OMER METER . 28
(3) FOR EACH LONG –TERM PRICING SCHEDUL E FOR WHICH A 29
NUCLEAR ENERGY GENER ATION PROJECT RECEIV ES PAYMENT , THE PROJECT 30
SHALL: 31
(I) SELL ALL ENERGY , CAPACITY, AND ANCILLARY SERVIC ES 32
ASSOCIATED WITH THE CREATION OF THE LONG –TERM PRICING INTO TH E MARKETS 33
OPERATED BY PJM INTERCONNECTION ; AND 34
HOUSE BILL 1035 21
(II) DISTRIBUTE THE PROCE EDS RECEIVED FROM TH E SALES 1
UNDER ITEM (I) OF THIS PARA GRAPH TO ELECTRIC CO MPANIES TO BE REFUND ED 2
OR CREDITED TO EACH DISTRIBUTION CUSTOME R BASED ON THE CUSTO MER’S 3
CONSUMPTION OF ELECT RICITY SUPPLY THAT I S SUBJECT TO THE REN EWABLE 4
ENERGY PORTFOLIO STA NDARD. 5
(C) A DEBT, AN OBLIGATION , OR A LIABILITY OF A NUCLEAR ENERGY 6
GENERATION PROJECT O R OF AN OWNER OR OPE RATOR OF A NUCLEAR E NERGY 7
GENERATION PROJECT M AY NOT BE CONSIDERED A DEBT, AN OBLIGATION , OR A 8
LIABILITY OF THE STATE. 9
7–1218. 10
ON OR BEFORE JULY 1, 2027, THE COMMISSION SHALL ADOP T REGULATIONS 11
TO CARRY OUT THIS PART. 12
SECTION 4. AND BE IT FURTHER ENACTED, That the Laws of Maryland read 13
as follows: 14
Article – Public Utilities 15
7–207. 16
(b) (1) (i) Unless a certificate of public convenience and necessity for the 17
construction is first obtained from the Commission, a person may not begin construction in 18
the State of: 19
1. a generating station; [or] 20
2. a qualified generator lead line; OR 21
3. AN ENERGY STORAGE DE VICE THAT IS PART OF A 22
PROPOSAL ACCEPTED BY THE COMMISSION DURING A S OLICITATION PER IOD 23
UNDER § 7–1202 OF THIS TITLE. 24
(IV) NOTWITHSTANDING ANY O THER PROVISION OF TH IS 25
SECTION, A CERTIFICATE OF PUB LIC CONVENIENCE AND NECESSITY FOR THE 26
CONSTRUCTION OF A GE NERATING STATION THA T IS PART OF A PROPO SAL 27
ACCEPTED BY THE COMMISSION DURING A S OLICITATION PERIOD UN DER § 7–1202 28
OF THIS TITLE SHALL BE ISSUED IN ACCORDA NCE WITH § 7–207.4 OF THIS SUBTITLE. 29
(V) WHEN A PERSON APPLIES FOR A CERTIFICATE OF PUBLIC 30
CONVENIENCE AND NECE SSITY FOR THE CONSTR UCTION OF A GENERATI NG 31
STATION UNDER THIS S ECTION, THE APPLICATION SHAL L STATE WHETHER THE 32 22 HOUSE BILL 1035
PROPOSED GENERATING STATION OR THE PROPO SED MODIFICATION IS PART OF A 1
PROPOSAL ACCEPTED BY THE COMMISSION DURING A S OLICITATION PERIOD 2
UNDER § 7–1202 OF THIS TITLE. 3
7–207.4. 4
(A) (1) IN THIS SECTION THE FOLLOWING WORDS HAVE THE MEANINGS 5
INDICATED. 6
(2) “CONSTRUCTION ” HAS THE MEANING STAT ED IN § 7–207 OF THIS 7
SUBTITLE. 8
(3) (I) “DISPATCHABLE ENERGY G ENERATING PROJECT ” MEANS A 9
GENERATING STATION O R ENERGY STORAGE DEV ICE: 10
1. THAT IS PART OF A PR OPOSAL ACCEPTED BY THE 11
COMMISSION DURING A S OLICITATION PERIOD U NDER § 7–1202 OF THIS TITLE; OR 12
2. ON OR BEFORE JANUARY 1, 2025, IS WAITING FOR 13
APPROVAL OR HAS BEEN APPROVED FOR INTERCO NNECTION BY PJM. 14
(II) “DISPATCHABLE ENERGY G ENERATING PROJECT ” 15
INCLUDES ANY ASSOCIATED INFRASTRUCTURE NECES SARY TO INTERCONNECT THE 16
GENERATING STATION T O THE ELECTRIC DISTR IBUTION SYSTEM . 17
(4) “ENERGY STORAGE DEVICE ” HAS THE MEANING STAT ED IN § 18
7–216 OF THIS SUBTITLE . 19
(5) “GENERATING STATION ” HAS THE MEANING STAT ED IN § 7–207 OF 20
THIS SUBTITLE. 21
(B) THIS SECTION APPLIES ONLY TO AN APPLICATI ON FOR A CERTIFICATE 22
OF PUBLIC CONVENIENC E AND NECESSITY FOR THE CONSTRUCTION OF A 23
DISPATCHABLE ENERGY GENERATION PROJECT . 24
(C) UNLESS A CERTIFICATE OF PUBLIC CONVENIENC E AND NECESSITY IS 25
FIRST OBTAINED FROM THE COMMISSION IN ACCORDA NCE WITH THIS SECTIO N, A 26
PERSON MAY NOT CONST RUCT A DISPATCHABLE ENERGY GENERATION PR OJECT. 27
(D) WITHIN 90 DAYS AFTER THE SUBMI SSION OF AN APPLICAT ION FOR A 28
CERTIFICATE OF PUBLI C CONVENIENCE AND NE CESSITY THAT STATES THA T THE 29
APPLICATION IS FOR A DISPATCHABLE ENERGY GENERATION PROJECT , THE 30
COMMISSION SHALL : 31 HOUSE BILL 1035 23
(1) VERIFY THAT THE GENE RATING STATION OR EN ERGY STORAGE 1
DEVICE IS A DISPATCH ABLE ENERGY GENERATI ON PROJECT; AND 2
(2) NOTIFY THE APPLICANT AND RELEVANT ENTITIES IN 3
ACCORDANCE WITH § 7–207(C) OF THIS SUBTITLE THA T THE APPLICATION IS 4
SUBJECT TO AN EXPEDI TED REVIEW PROCESS I N ACCORDANCE WITH TH IS SECTION. 5
(E) (1) THE COMMISSION SHALL : 6
(I) EXPEDITE ALL PROCEED INGS FOR THE REVIEW AND 7
APPROVAL O F A CERTIFICATE OF P UBLIC CONVENIENCE AN D NECESSITY FOR A 8
DISPATCHABLE ENERGY GENERATION PROJECT A ND PRIORITIZE THESE 9
PROCEEDINGS , IF NECESSARY, OVER OTHER MATTERS ; AND 10
(II) TAKE FINAL ACTION ON A CERTIFICATE OF PUB LIC 11
CONVENIENCE AND NECE SSITY FOR A D ISPATCHABLE ENERGY G ENERATION 12
PROJECT NOT LATER TH AN 6 MONTHS AFTER THE COMMISSION MAKES THE 13
VERIFICATION UNDER S UBSECTION (D)(1) OF THIS SECTION. 14
(2) A STATE AGENCY SHALL SU BMIT ANY RECOMMENDED LICENSING 15
CONDITIONS OR TESTIM ONY REGARDING THE IS SUANCE O F A CERTIFICATE OF 16
PUBLIC CONVENIENCE A ND NECESSITY FOR A D ISPATCHABLE ENERGY G ENERATION 17
PROJECT NOT LATER TH AN 90 DAYS AFTER THE DATE THE COMMISSION MAKES THE 18
VERIFICATION UNDER S UBSECTION (D)(1) OF THIS SECTION. 19
(F) IF A PROPOSED SITE FO R A DISPATCHABL E ENERGY GENERATION 20
PROJECT WAS PREVIOUS LY OR IS CURRENTLY U SED FOR ELECTRICITY GENERATION 21
AND HAS A HIGHER GRE ENHOUSE GAS EMISSION PROFILE COMPARED TO THE 22
DISPATCHABLE ENERGY GENERATION PROJECT : 23
(1) THE APPLICANT IS EXE MPT FROM THE REQUIRE MENTS OF 24
COMAR 20.79.01.04 AND COMAR 20.79.01.05; AND 25
(2) THE COMMISSION SHALL PRES UME THE PROPOSED SIT E IS 26
APPROPRIATE AND CONS ISTENT WITH THE CERT IFICATE OF PUBLIC CO NVENIENCE 27
AND NECESSITY FOR A NEW OR EXPANDED GENE RATING STATION . 28
(G) THE COMMISSION, THE DEPARTMENT OF THE ENVIRONMENT , THE 29
DEPARTMENT OF NATURAL RESOURCES, AND ANY OTHER IMPACT ED STATE 30
AGENCY SHALL WAIVE O R EXPEDITE ANY REGUL ATORY REQUIREMENTS O R 31
DECISIONS TO COMPLY WITH THE TIME FRAMES SET FORTH IN THIS SE CTION. 32
24 HOUSE BILL 1035
SECTION 5. AND BE IT FURTHE R ENACTED, That the General Assembly 1
supports the extension or renewal of the Federal Nuclear Regulatory Commission license 2
for the Calvert Cliffs Nuclear Power Plant’s nuclear reactors in the years 2034 and 2036. 3
SECTION 6. AND BE IT FURTHER ENACTED, Th at this Act shall take effect July 4
1, 2025. Section 4 of this Act shall remain effective for a period of 5 years and, at the end of 5
June 30, 2030, Section 4 of this Act, with no further action required by the General 6
Assembly, shall be abrogated and of no further force and effect. 7