EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
[Brackets] indicate matter deleted from existing law.
Underlining indicates amendments to bill.
Strike out indicates matter stricken from the bill by amendment or deleted from the law by
amendment.
*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
Committee Report: Favorable with amendments
House action: Adopted
Read second time: March 21, 2025
CHAPTER ______
AN ACT concerning 1
Public Utilities – Electricity Generation Planning – Procurement, Permitting, 2
and Co–Location 3
Electricity and Gas – Emissions Reductions, Rate Regulation, Cost Recovery, 4
Infrastructure, Planning, Renewable Energy Portfolio Standard, and Energy 5
Assistance Programs 6
(Next Generation Energy Act) 7
FOR the purpose of authorizing the Department of Housing and Community Development 8
to issue loans, in addition to grants, for certain purposes relating to reducing direct 9
greenhouse gas emissions from certain multifamily residential buildings; requiring 10
the Maryland Energy Administration, in coordination with the Public Service 11
Commission and the Department of Natural Resources, to pursue certain 12
agreements with neighboring states and federal agencies related to the development 13
of new nuclear energy generating stations; expanding the sources of savings that the 14
Department of Housing and Community Development may procure and provide 15
when calculating the achievement of certain greenhouse gas emissions reduction 16
targets; requiring certain public service companies to demonstrate to the 17
Commission the reasonableness of the use of certain labor in a base rate proceeding; 18
altering the required contents of a certain plan that a gas company may file with the 19
Commission for proposed eligible infrastructure replacement projects; requiring that 20
the plan meet certain requirements for a gas company to recover certain costs; 21
altering the required findings of the Commission in considering whether to approve 22
a certain infrastructure replacement plan; authorizing the Commission to authorize 23
a gas company to use a mechanism to promptly recover certain costs for certain 24
eligible infrastructure replacement projects; requiring each electric company to 25 2 HOUSE BILL 1035
submit to the Commission for approval a specific rate schedule for certain large load 1
customers; requiring the Commission, in making a certain determination on a 2
specific rate schedule, to consider certain factors; authorizing the Commission to 3
approve the use of certain multiyear rate plans under certain circumstances; altering 4
the alternative forms of regulation that may be used by the Commission to regulate 5
the regulated services of certain public service companies; authorizing an 6
investor–owned gas company to recover certain costs associated with a gas 7
infrastructure investment if the investor–owned gas company makes certain 8
demonstrations at a rate setting proceeding; prohibiting certain public service 9
companies from recovering through rates certain costs; specifying that certain 10
contracts entered into by certain public service companies include a contract that 11
has been executed, amended, or altered after a certain date; requiring each 12
investor–owned electric company in the State to submit to the Commission by certain 13
dates plans for the construction or procurement of distribution –connected 14
front–of–the–meter energy storage devices and to construct or procure the devices in 15
accordance with the plan; prohibiting an electricity supplier or other owner of a 16
certain generating station from entering into a certain contract with a commercial 17
or industrial customer under certain circumstances; authorizing the Commission to 18
apply to a certain large load customer and a certain generating station certain costs 19
and fees under certain circumstances; establishing a procurement process for the 20
Commission to evaluate and approve proposals and applications for dispatchable 21
energy generation projects and nuclear energy generation projects establishing 22
certain processes and requirements for the solicitation and procurement of certain 23
dispatchable energy generation, large capacity energy resources, nuclear energy 24
generation, and front–of–the–meter transmission energy storage devices; requiring 25
the Governor’s Office of Small, Minority, and Women Business Affairs, in 26
consultation with the Office of the Attorney General, to provide certain assistance to 27
potential applicants and minority investors and, in consultation with the Office of 28
the Attorney General and a certain applicant, establish a certain plan; requiring the 29
Commission to approve orders to facilitate the financing of nuclear energy generation 30
projects under certain circumstances; requiring each electric company to procure a 31
certain volume of nuclear energy from a certain escrow account; requiring a certain 32
nuclear energy generation project to sell certain energy, capacity, and ancillary 33
services into certain markets and distribute the proceeds in a certain manner 34
requiring each electric company to procure a certain quantity of zero–emission 35
credits from a certain escrow account; authorizing certain units of State government 36
to issue certain competitive sealed bids for projects that are higher than the amount 37
authorized for small procurements; requiring the Chief Procurement Officer to 38
approve certain procurement contracts under certain circumstances; altering the 39
authorized uses of certain compliance fee revenue paid into the Maryland Strategic 40
Energy Investment Fund; allowing a subtraction under the Maryland income tax for 41
certain legislative energy relief refunds; altering the definition of “Tier 1 renewable 42
source” for purposes of excluding energy derived from waste and refuse from being 43
eligible for inclusion in the renewable energy portfolio standard; establishing an 44
expedited certificate of public convenience and necessity review process for certain 45
generating stations and energy storage devices; requiring that certain funds in the 46
Maryland Strategic Energy Investment Fund be used in a certain manner in a 47 HOUSE BILL 1035 3
certain fiscal year; requiring the Department of Human Services to report to the 1
Governor and the General Assembly on certain changes necessary to implement a 2
certain recommendation; and generally relating to energy generation and 3
procurement in Maryland electricity and gas. 4
BY repealing 5
Article – Public Utilities 6
Section 7–701(h–1) and (i) 7
Annotated Code of Maryland 8
(2020 Replacement Volume and 2024 Supplement) 9
BY renumbering 10
Article – Public Utilities 11
Section 7–701(i–1) 12
to be Section 7–701(i) 13
Annotated Code of Maryland 14
(2020 Replacement Volume and 2024 Supplement) 15
BY repealing and reenacting, with amendments, 16
Article – Housing and Community Development 17
Section 4–211(d) 18
Annotated Code of Maryland 19
(2019 Replacement Volume and 2024 Supplement) 20
BY repealing and reenacting, without amendments, 21
Article – Public Utilities 22
Section 1–101(a), 7–224(a) and (b), and 7–701(a) 23
Annotated Code of Maryland 24
(2020 Replacement Volume and 2024 Supplement) 25
BY repealing and reenacting, with amendments, 26
Article – Public Utilities 27
Section 1–101(i), (l), and (ee), 4–210, 5–305, 7–207(b)(1)(i), 7–216(a), 7–224(c), 28
7–505(c), 7–701(s), and 7–704(a) 29
Annotated Code of Maryland 30
(2020 Replacement Volume and 2024 Supplement) 31
BY adding to 32
Article – Public Utilities 33
Section 1–101(w–1) and (w–2), 4–206.1, 4–212, 4–213, 4–214, 4–504, 7–207(b)(1)(iv) 34
and, (v), and (vi), 7–207.4, 7–211, 7–216.2, and 7–506.1; and 7–1201 through 35
7–1218 7–1229 to be under the new subtitle “Subtitle 12. Energy Solicitation 36
and Procurement” 37
Annotated Code of Maryland 38
(2020 Replacement Volume and 2024 Supplement) 39
BY repealing and reenacting, with amendments, 40 4 HOUSE BILL 1035
Article – Public Utilities 1
Section 7–207(b)(1)(i) 2
Annotated Code of Maryland 3
(2020 Replacement Volume and 2024 Supplement) 4
BY repealing and reenacting, with amendments, 5
Article – State Finance and Procurement 6
Section 13–102(a) 7
Annotated Code of Maryland 8
(2021 Replacement Volume and 2024 Supplement) 9
BY adding to 10
Article – State Finance and Procurement 11
Section 13–117 12
Annotated Code of Maryland 13
(2021 Replacement Volume and 2024 Supplement) 14
BY repealing and reenacting, without amendments, 15
Article – State Government 16
Section 9–20B–05(a) 17
Annotated Code of Maryland 18
(2021 Replacement Volume and 2024 Supplement) 19
BY repealing and reenacting, with amendments, 20
Article – State Government 21
Section 9–20B–05(e) and (i) 22
Annotated Code of Maryland 23
(2021 Replacement Volume and 2024 Supplement) 24
BY repealing and reenacting, without amendments, 25
Article – Tax – General 26
Section 10–207(a) 27
Annotated Code of Maryland 28
(2022 Replacement Volume and 2024 Supplement) 29
BY adding to 30
Article – Tax – General 31
Section 10–207(qq) 32
Annotated Code of Maryland 33
(2022 Replacement Volume and 2024 Supplement) 34
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 35
That Section(s) 7–701(h–1) and (i) of Article – Public Utilities of the Annotated Code of 36
Maryland be repealed. 37
HOUSE BILL 1035 5
SECTION 2. AND BE IT FURTHER ENACTED, That Section(s) 7 –701(i–1) of 1
Article – Public Utilities of the Annotated Code of Maryland be renumbered to be Section(s) 2
7–701(i). 3
SECTION 3. AND BE IT FURTHER ENACTED, That the Laws of Maryland read 4
as follows: 5
Article – Housing and Community Development 6
4–211. 7
(d) (1) (i) In this subsection the following words have the meanings 8
indicated. 9
(ii) “Covered building” has the meaning stated in § 2–1601 of the 10
Environment Article. 11
(iii) “Energy conservation project” means a project that qualifies 12
under § 4–218 of this subtitle. 13
(2) For the purpose of reducing direct greenhouse gas emissions from 14
multifamily residential buildings in accordance with the standards adopted under § 2–1602 15
of the Environment Article, the Administration shall develop and implement a program to 16
provide grants AND LOANS for energy conservation projects and projects to install 17
renewable energy generating systems in covered buildings that house primarily low– to 18
moderate–income households. 19
(3) Grants AND LOANS provided under this subsection may not be used for 20
a project to install new equipment that uses fossil fuels or improve the efficiency of existing 21
equipment that uses fossil fuels. 22
(4) In each of fiscal years 2024 through 2026, the Governor shall include in 23
the annual budget bill an appropriation of $5,000,000 to the Department for the purpose of 24
providing grants AND LOANS under this subsection. 25
(5) On or before December 1, 2023, and each December 1 thereafter, the 26
Administration shall report to the Governor and, in accordance with § 2–1257 of the State 27
Government Article, the General Assembly on the projects funded under this subsection. 28
Article – Public Utilities 29
1–101. 30
(a) In this division the following words have the meanings indicated. 31
(i) (1) “Electric company” means a person who physically transmits or 32
distributes electricity in the State to a retail electric customer. 33 6 HOUSE BILL 1035
(2) “Electric company” does not include: 1
(i) the following persons who supply electricity and electricity 2
supply services solely to occupants of a building for use by the occupants: 3
1. an owner/operator who holds ownership in and manages 4
the internal distribution system serving the building; or 5
2. a lessee/operator who holds a leasehold interest in and 6
manages the internal distribution system serving the building; 7
(ii) any person who generates on–site generated electricity; [or] 8
(iii) a person who transmits or distributes electricity within a site 9
owned by the person or the person’s affiliate that is incidental to a primarily 10
landlord–tenant relationship; OR 11
(IV) A PERSON WHO PROVIDE S ELECTRICITY TO A COMMERCIAL 12
OR INDUSTRIAL CUSTOMER IN ACCORDAN CE WITH § 7–506.1 OF THIS ARTICLE . 13
(l) (1) “Electricity supplier” means a person: 14
(i) who sells: 15
1. electricity; 16
2. electricity supply services; 17
3. competitive billing services; or 18
4. competitive metering services; or 19
(ii) who purchases, brokers, arranges, or markets electricity or 20
electricity supply services for sale to a retail electric customer. 21
(2) “Electricity supplier” includes an electric company, an aggregator, a 22
broker, [and] a marketer of electricity, AND A PERSON WHO PRO VIDES ELECTRICITY TO 23
A COMMERCIAL OR INDUST RIAL CUSTOMER IN ACCORDAN CE WITH § 7–506.1 OF 24
THIS ARTICLE. 25
(3) “Electricity supplier” does not include: 26
(i) the following persons who supply electricity and electricity 27
supply services solely to occupants of a building for use by the occupants: 28
HOUSE BILL 1035 7
1. an owner/operator who holds ownership in and manages 1
the internal distribution system serving the building; or 2
2. a lessee/operator who holds a leasehold interest in and 3
manages the internal distribution system serving the building; 4
(ii) a person who generates on–site generated electricity; or 5
(iii) a person that owns or operates equipment used for charging 6
electric vehicles, including a person that owns or operates: 7
1. an electric vehicle charging station; 8
2. electric vehicle supply equipment; or 9
3. an electric vehicle charging station service company or 10
provider. 11
(W–1) “PJM INTERCONNECTION ” OR, “PJM INTERCONNECTION , LLC” 12
MEANS, OR “PJM” MEANS PJM INTERCONNECTION , LLC OR ANY SUCCESSOR 13
ORGANIZATION THAT SERVICES THE PJM REGION. 14
(W–2) “PJM REGION” MEANS THE CONTROL AR EA ADMINISTERED BY PJM 15
INTERCONNECTION , AS THE AREA MAY CHAN GE FROM TIME TO TIME . 16
(ee) (1) “Retail electric customer” means a purchaser of electricity for end use 17
in the State. 18
(2) “Retail electric customer” includes: 19
(i) a person that owns or operates equipment used for charging 20
electric vehicles, including: 21
1. an electric vehicle charging station; 22
2. electric vehicle supply equipment; or 23
3. an electric vehicle charging station service company or 24
provider; [and] 25
(ii) a person that charges an electric vehicle at an electric vehicle 26
charging station that the person owns or operates; AND 27
(III) A COMMERCIAL OR INDUST RIAL CUSTOMER THAT 28
PURCHASES ELECTRICIT Y IN ACCORDANCE WITH § 7–506.1 OF THIS ARTICLE . 29
8 HOUSE BILL 1035
(3) “Retail electric customer” does not include: 1
(i) an occupant of a building in which the owner/operator or 2
lessee/operator manages the internal distribution system serving the building and supplies 3
electricity and electricity supply services solely to occupants of the building for use by the 4
occupants; 5
(ii) a person who generates on–site generated electricity, to the 6
extent the on–site generated electricity is consumed by that person or its tenants; or 7
(iii) except as provided in paragraph (2)(ii) of this subsection, a 8
person that charges an electric vehicle at an electric vehicle charging station. 9
4–206.1. 10
(A) THIS SECTION APPLIES ONLY TO A PUBLIC SER VICE COMPANY THAT IS 11
AN INVESTOR–OWNED GAS COMPANY OR INVESTOR–OWNED ELECTRIC COMPA NY. 12
(B) IN A BASE RATE PROCEE DING TO SET JUST AND REASONABLE RATES 13
UNDER THIS TITLE , EACH PUBLIC SERVICE COMPANY SHALL DEMONS TRATE TO THE 14
COMMISSION THE REASON ABLENESS OF THE USE OF INTERNAL LABOR IN 15
COMPARISON TO CONTRA CTUAL LABOR. 16
(C) TO DEMONSTRATE REASON ABLENESS OF THE USE OF LABOR AS 17
REQUIRED UNDER SUBSE CTION (B) OF THIS SECTION, A PUBLIC SERVICE COM PANY 18
SHALL PROVIDE TO THE COMMISSION, AT A MINIMUM: 19
(1) A COMPARISON OF THE COSTS OF INTERNAL LA BOR AND 20
CONTRACTUAL LABOR; 21
(2) A DEMONSTRATION OF T HE REASONABLENESS OF THE DECISION 22
TO USE CONTRACTUAL LABOR ; 23
(3) A JUSTIFICATION FOR THE USE OF CONTRACTU AL LABOR WHEN 24
USED INSTEAD OF INTE RNAL LABOR, INCLUDING A COST –BASED RATIONALE ; AND 25
(4) ANY OTHER INFORMATIO N THAT THE COMMISSION REQUIRES . 26
4–210. 27
(a) (1) In this section the following words have the meanings indicated. 28
(2) “Customer” means a retail natural gas customer. 29
(3) “Eligible infrastructure replacement” means a replacement or an 30
improvement in an existing infrastructure of a gas company that: 31 HOUSE BILL 1035 9
(i) is made on or after June 1, 2013; 1
(ii) is designed to improve public safety or infrastructure reliability; 2
(iii) does not increase the revenue of a gas company by connecting an 3
improvement directly to new customers; 4
(iv) reduces or has the potential to reduce greenhouse gas emissions 5
through a reduction in natural gas system leaks; and 6
(v) is not included in the current rate base of the gas company as 7
determined in the gas company’s most recent base rate proceeding. 8
(4) “Plan” means a plan that a gas company files under subsection [(d)] (E) 9
of this section. 10
(5) “Project” means an eligible infrastructure replacement project proposed 11
by a gas company in a plan filed under this section. 12
(b) It is the intent of the General Assembly that the purpose of this section is to 13
[accelerate] ALLOW FOR THE APPROP RIATE ACCELERATION O F gas infrastructure 14
improvements in the State [by establishing a mechanism for gas companies to promptly 15
recover reasonable and prudent costs of investments in eligible infrastructure replacement 16
projects separate from base rate proceedings] WHEN: 17
(1) NECESSARY TO ENSURE SAFETY AND IMPROVE R ELIABILITY; AND 18
(2) CONSISTENT WITH STATE POLICY. 19
(C) NOTHING IN THIS SECTION MAY BE CONST RUED TO ALTER A GAS 20
COMPANY’S OBLIGATION UNDER T HIS DIVISION TO MAKE IMPROVEMENTS TO A GA S 21
SYSTEM THAT ARE NECE SSARY TO ENSURE THE SAFETY OF THE GAS SY STEM. 22
[(c)] (D) This section does not apply to a gas cooperative. 23
[(d)] (E) (1) A gas company may file with the Commission: 24
(i) a plan to invest in eligible infrastructure replacement projects; 25
and 26
(ii) in accordance with paragraph [(4)] (5) of this subsection, a 27
cost–recovery schedule associated with the plan that includes a fixed annual surcharge on 28
customer bills to recover reasonable and prudent costs of proposed eligible infrastructure 29
replacement projects. 30
10 HOUSE BILL 1035
(2) A plan under this subsection shall include: 1
(i) A DESCRIPTION OF EAC H ELIGIBLE INFRASTRU CTURE 2
REPLACEMENT PROJECT, INCLUDING THE PROJEC T’S EXPECTED USEFUL LI FE; 3
(II) a time line for the completion of each eligible project; 4
[(ii)] (III) the estimated cost of each project; 5
[(iii)] (IV) a description of customer benefits under the plan; [and] 6
(V) A DEMONSTRATION THAT THE GAS COMPANY HAS SELECTED 7
AND GIVEN PRIORITY T O PROJECTS BASED ON RISK TO THE PUBLIC A ND 8
COST–EFFECTIVENESS ; 9
(VI) AN ANALYSIS THAT COM PARES THE COSTS OF P ROPOSED 10
REPLACEMENT PROJECTS WITH ALTERNATIVES TO REPLACEMENT , INCLUDING 11
LEAK DETECTION AND R EPAIR; 12
(VII) A PLAN FOR NOTIFYING CUSTOMERS AFFECTED B Y 13
PROPOSED PROJECTS AT LEAST 6 MONTHS IN ADVANCE OF CONSTRUCTION ; AND 14
[(iv)] (VIII) any other information the Commission considers 15
necessary to evaluate the plan. 16
(3) A CUSTOMER NOTIFICATION PLAN REQUIRED UNDER PARAGRAPH 17
(2) OF THIS SUBSECTION S HALL PROVIDE FOR : 18
(I) AN INITIAL NOTIFICAT ION OF CONSTRUCTION IN A MANNER 19
DETERMINED BY THE COMMISSION; 20
(II) AT LEAST TWO SUBSEQU ENT NOTIFICATIONS OF 21
CONSTRUCTION IN A MA NNER DETERMINED BY THE COMMISSION; AND 22
(III) THE COMMUNICATING OF : 23
1. A COMPLETE AND ACCUR ATE DESCRIPTION OF 24
PROJECT ACTIVITIES ; AND 25
2. ANY OTHER INFORMATIO N THE COMMISSION 26
CONSIDERS NECESSARY TO EVALUATE THE PLAN . 27
[(3)] (4) (i) When calculating the estimated cost of a project under 28
paragraph (2) of this subsection, a gas company shall include: 29
HOUSE BILL 1035 11
1. the pretax rate of return on the gas company’s investment 1
in the project; 2
2. depreciation associated with the project, based on new 3
assets less retired plant; and 4
3. property taxes associated with the project, based on new 5
assets less retired plant. 6
(ii) The estimated project costs described in subparagraph (i) of this 7
paragraph are collectible at the same time the eligible infrastructure replacement is made. 8
(iii) The pretax rate of return under subparagraph (i)1 of this 9
paragraph shall: 10
1. be calculated using the gas company’s capital structure 11
and weighted average cost of capital as the Commission approved in the gas company’s 12
most recent base rate proceeding; and 13
2. include an adjustment for bad debt expenses as the 14
Commission approved in the gas company’s most recent base rate proceeding. 15
[(4)] (5) For a plan filed under this section: 16
(i) the cost–recovery schedule shall include a fixed annual 17
surcharge that: 18
1. may not exceed $2 each month on each residential 19
customer account; and 20
2. for each nonresidential customer account, may not be less 21
than the fixed annual surcharge applicable to a residential customer account, but shall be 22
capped under item (ii) of this paragraph; and 23
(ii) to create a surcharge cap for all customer classes, costs shall be 24
allocated to nonresidential and residential customers consistent with the proportions of 25
total distribution revenues that those classes bear in accordance with the most recent base 26
rate proceeding for the gas company. 27
(6) FOR A GAS COMPANY TO RECOVER COSTS ASSOCI ATED WITH 28
ELIGIBLE INFRASTRUCT URE REPLACEMENT PROJ ECTS, A PLAN SHALL 29
DEMONST RATE: 30
(I) CUSTOMER BENEFITS ; AND 31
(II) THAT THE GAS COMPANY HAS: 32 12 HOUSE BILL 1035
1. ANALYZED AVAILABLE C OST–EFFECTIVE OPTIONS TO 1
DEFER, REDUCE, OR REMOVE THE NEED T O REPLACE, CONSTRUCT, OR UPGRADE 2
COMPONENTS OF THE GA S COMPANY ’S DISTRIBUTION INFRA STRUCTURE, 3
INCLUDING LEAK DETECTION AND R EPAIR; AND 4
2. MET ANY OTHER REQUIR EMENTS ESTABLISHED B Y 5
THE COMMISSION WHEN SETTI NG RATES UNDER THIS TITLE. 6
(7) A PLAN UNDER THIS SUBS ECTION SHALL BE FILE D SEPARATELY 7
FROM A BASE RATE PRO CEEDING. 8
[(5)] (8) In a base rate proceeding after approval of a plan, the 9
Commission shall, in establishing a gas company’s revenue requirements, take into account 10
any benefits the gas company realized as a result of a surcharge approved under the plan. 11
[(6)] (9) Any adjustment for return on equity based on an approved plan 12
only shall be considered and determined in a subsequently filed base rate case. 13
[(e)] (F) (1) Within 180 days after a gas company files a plan, the 14
Commission: 15
(i) may hold a public hearing on the plan; and 16
(ii) shall take a final action to approve or deny the plan. 17
(2) Within 150 days after a gas company files an amendment to an 18
approved plan, the Commission shall take final action to approve or deny the amendment. 19
(3) The Commission may approve a plan if it finds that the investments 20
and estimated costs of eligible infrastructure replacement projects are: 21
(i) reasonable and prudent; [and] 22
(ii) designed to improve public safety or infrastructure reliability 23
over the short term and long term; AND 24
(III) REQUIRED TO IMPROVE THE SAFETY OF THE GA S SYSTEM 25
AFTER CONSIDERATION OF ALTERNATIVES TO R EPLACEMENT . 26
(4) (i) The Commission shall approve the cost–recovery schedule 27
associated with the plan at the same time that it approves the plan. 28
(ii) Costs recovered under the schedule approved in subparagraph (i) 29
of this paragraph may relate only to the projects within the plan approved by the 30
Commission. 31 HOUSE BILL 1035 13
(5) The Commission may not consider a revenue requirement or 1
rate–making issue that is not related to the plan when reviewing a plan for approval or 2
denial unless the plan is filed in conjunction with a base rate case. 3
[(f)] (G) (1) Subject to paragraph (2) of this subsection, if the Commission 4
does not take final action on a plan within the time period required under subsection [(e)] 5
(F) of this section, the gas company may implement the plan. 6
(2) If a gas company implements a plan that the Commission has not 7
approved, the gas company shall refund to customers any amount of the surcharge that the 8
Commission later determines is not reasonable or prudent, including interest. 9
(H) THE COMMISSION MAY AUTHOR IZE A GAS COMPANY TO USE A 10
MECHANISM TO PROMPTL Y RECOVER REASONABLE AND PRUDENT COSTS OF 11
INVESTMENTS FOR ELIG IBLE INFRASTRUCTURE REPLACEMENT PROJECTS THA T: 12
(1) ARE PART OF A PLAN A PPROVED UNDER THIS S ECTION OR 13
IMPLEMENTED UNDER SU BSECTION (G) OF THIS SECTION; AND 14
(2) ACCELERATE GAS INFRA STRUCTURE IMPROVEMEN TS IN THE 15
STATE. 16
[(g)] (I) (1) (i) A surcharge under this section shall be in effect for 5 years 17
from the date of initial implementation of an approved plan. 18
(ii) 1. Before the end of the 5–year period, the gas company shall 19
file a base rate case application. 20
2. In a base rate proceeding filed under subsubparagraph 1 21
of this subparagraph, if a plan approved by the Commission remains in effect: 22
A. eligible infrastructure project costs included in base rates 23
in accordance with a final Commission order on the base rate case shall be removed from a 24
surcharge; and 25
B. the surcharge mechanism shall continue for eligible future 26
infrastructure project costs that are not included in the base rate case. 27
(2) (i) If the actual cost of a plan is less than the amount collected under 28
a surcharge, the gas company shall refund to customers the difference on customer bills, 29
including interest. 30
(ii) If the actual cost of a plan is more than the amount collected 31
under the surcharge and the Commission determines that the higher costs were reasonably 32
and prudently incurred, the Commission shall authorize the gas company to increase the 33 14 HOUSE BILL 1035
surcharge to recover the difference, subject to the rate limit under subsection [(d)(4)] (E)(5) 1
of this section. 2
[(h)] (J) Each year a gas company shall file with the Commission a reconciliation 3
to adjust the amount of a surcharge to account for any difference between the actual cost 4
of a plan and the actual amount recovered under the surcharge. 5
[(i)] (K) If, after approving a surcharge in a plan, the Commission establishes 6
new base rates for the gas company that include costs on which the surcharge is based, the 7
gas company shall file a revised rate schedule with the Commission that subtracts those 8
costs from the surcharge. 9
[(j)] (L) (1) The Commission may review a previously approved plan. 10
(2) If the Commission determines that an investment of a project or cost of 11
a project no longer meets the requirements of subsection [(e)(3)] (F)(3) of this section, the 12
Commission may: 13
(i) reduce future base rates or surcharges; or 14
(ii) alter or rescind approval of that part of the plan. 15
4–212. 16
(A) (1) IN THIS SECTION THE F OLLOWING WORDS HAVE THE MEANINGS 17
INDICATED. 18
(2) “CONTRACT CAPACITY ” MEANS THE AMOUNT OF MONTHLY PEAK 19
LOAD REQUIREMENTS : 20
(I) THAT IS MUTUALLY AGR EED TO BY AN ELECTRIC COMPANY 21
AND A LARGE LOAD CUS TOMER FOR EACH MONTH REMAINING IN A CONTR ACT TERM 22
AFTER THE LOAD RAMP PERIOD HAS ENDED ; AND 23
(II) FOR WHICH: 24
1. THE ELECTRIC COMPANY AGREES TO PROVIDE AL L OF 25
THE COMPONENTS OF RE TAIL ELECTRIC SERVIC E SUBJECT TO THE TERMS AND 26
CONDITIONS IN ITS TA RIFFS; AND 27
2. THE LARGE LOAD CUSTO MER AGREES TO PURCHA SE 28
SERVICE AT THAT LOAD LEVEL FOR THE STATED TERM OF THE CONTRACT AND 29
UNDER THE SAME TERMS AND CONDITIONS AS TH OSE STATED IN THE CO NTRACT. 30
HOUSE BILL 1035 15
(3) “LARGE LOAD CUSTO MER” MEANS A COMMERCIAL O R 1
INDUSTRIAL CUSTOMER FOR RETAIL ELECTRIC SERVICE THAT: 2
(I) HAS OR IS PROJECTED TO HAVE AN AGGREGATE MONTHLY 3
DEMAND OF AT LEAST 100 MEGAWATTS ; AND 4
(II) HAS OR IS PROJECTED TO HAVE A LOAD FACTO R OF OVER 5
80%. 6
(4) “LOAD RAM P PERIOD” MEANS THE PERIOD OF TIME FROM 7
COMMENCEMENT OF SERV ICE UNTIL A LARGE LO AD CUSTOMER ’S BILLING 8
CALCULATION IS BASED ON THE FULL CONTRACT CAPACITY. 9
(B) IT IS THE INTENT OF T HE GENERAL ASSEMBLY THAT RESIDEN TIAL 10
RETAIL ELECTRIC CUST OMERS IN THE STATE SHOULD NOT BEAR THE FINANCIAL 11
RISKS ASSOCIATED WIT H LARGE LOAD CUSTOME RS INTERCONNECTING T O THE 12
ELECTRIC SYSTEM SERV ING THE STATE. 13
(C) (1) (I) ON OR BEFORE SEPTEMBER 1, 2026, EACH 14
INVESTOR–OWNED ELECTRIC COMPA NY AND EACH ELECTRIC COOPERATIVE SHALL 15
SUBMIT TO THE COMMISSION FOR APPROV AL A SPECIFIC RATE S CHEDULE FOR 16
LARGE LOAD CUSTOMERS THAT ACCOMPLISHES TH E INTENT OF SUBSECTI ON (B) OF 17
THIS SECTION. 18
(II) EACH MUNICIPAL ELECTR IC UTILITY THAT RECE IVES AN 19
APPLICATION FOR RETA IL ELECTRIC SERVICE FROM A LAR GE LOAD CUSTOMER 20
SHALL SUBMIT TO THE COMMISSION FOR APPROV AL A SPECIFIC RATE S CHEDULE 21
FOR LARGE LOAD CUSTO MERS. 22
(2) (I) SERVICE UNDER A SPECI FIC RATE SCHEDULE SH ALL BE 23
AVAILABLE TO LARGE L OAD CUSTOMERS THAT W ILL USE, WITHIN THE INITIAL 24
CONTRACT TERM : 25
1. A MONTHLY MAXIMUM DE MAND OF MORE THAN 100 26
MEGAWATTS AT A SINGL E LOCATION; OR 27
2. AN AGGREGATED CONTRA CT CAPACITY IN THE 28
ELECTRIC COMPANY ’S SERVICE TERRITORY OF MORE THAN 100 MEGAWATTS . 29
(II) EXCEPT AS PROVIDED IN SUBPARAGRAPH (III) OF THIS 30
PARAGRAPH, LARGE LOAD CUSTOMERS THAT QUALIFY FOR A S PECIFIC RATE 31
SCHEDULE AFTER THE E FFECTIVE DATE OF THA T SCHEDULE: 32
16 HOUSE BILL 1035
1. SHALL TAKE SERVICE U NDER THE SPECIFIC RA TE 1
SCHEDULE; AND 2
2. MAY NOT BE ALLOWED T O TAKE SERVICE UNDER ANY 3
OTHER EXISTING SCHED ULE. 4
(III) A SPECIFIC RATE SCHEDU LE DOES NOT APPLY TO THE 5
FACILITY OF AN EXIST ING LARGE LOAD CUSTO MER THAT HAS SIGNED A SERVICE 6
AGREEMENT BEFORE THE EFFECTIVE DATE OF TH E SCHEDULE IF: 7
1. THE LARGE LOAD CUSTO MER’S EXISTING LOAD DOES 8
NOT EXPAND BY MORE THAN 25 MEGAWATTS AT THAT FA CILITY UNDER THE 9
EXISTING SERVICE AGR EEMENT; OR 10
2. THE LARGE LOAD CUSTO MER DOES NOT SIGN A NEW 11
SERVICE AGREEMENT TO EXPAND THE FACILITY ’S LOAD BY MORE THAN 25 12
MEGAWATTS ABOVE THE CONTRACT CAPACITY OF THE EXISTING SERVICE 13
AGREEMENT. 14
(D) IN MAKING A DETERMINA TION ON WHETHER TO A PPROVE A SPECIFIC 15
RATE SCHEDULE SUBMIT TED UNDER SUBSECTION (C) OF THIS SECTION , THE 16
COMMISSION SHALL CONS IDER WHETHER THE RAT E SCHEDULE: 17
(1) REQUIRES A LARGE LOA D CUSTOMER TO COVER THE JUST AND 18
REASONABLE COSTS ASSOCI ATED WITH ANY ELECTR IC TRANSMISSION OR 19
DISTRIBUTION SYSTEM BUILDOUT REQUIRED TO : 20
(I) INTERCONNECT THE LAR GE LOAD CUSTOMER TO THE 21
ELECTRIC SYSTEM SERV ING THE STATE; OR 22
(II) SERVE THE LARGE LOAD CUSTOMER; 23
(2) PROTECTS RESIDENTIAL RETAIL ELECTRIC C USTOMERS FROM 24
THE FINANCIAL RISKS ASSOCIATED WITH LARG E LOAD CUSTOMERS THROUGH THE 25
USE OF: 26
(I) LOAD RAMP PERIODS ; 27
(II) MINIMUM BILLING DEMA ND FOR ELECTRIC DIST RIBUTION 28
AND TRANSMISSION SER VICE THAT IS A HIGH PERCENTAGE OF A LARG E LOAD 29
CUSTOMER’S CONTRACT CAPACITY ; 30
(III) LONG–TERM CONTRACTUAL COM MITMENTS AND EXIT FE ES; 31
HOUSE BILL 1035 17
(IV) GUARANTEE OR COLLATE RAL REQUIREMENTS ; AND 1
(V) PENALTIES AND REIMBU RSEMENT REQUIREMENTS FOR 2
THE LARGE LOAD CUSTO MER IF THE LARGE LOA D CUSTOMER DELAYS OR CANCELS 3
A PROJECT AFTER THE ELECTRIC COMPANY HAS BEGUN BUILDOUT TO 4
ACCOMMODATE THE LARG E LOAD CUSTOMER ; AND 5
(3) SUFFICIENTLY ENSURES THAT THE ALLOCATION OF COSTS TO 6
LARGE LOAD CUSTOMERS UNDER THE SCHEDULE D OES NOT RESULT IN CU STOMERS 7
THAT ARE NOT LARGE LOAD CUSTO MERS UNREASONABLY SU BSIDIZING THE COSTS 8
OF LARGE LOAD CUSTOM ERS UNDER THE SCHEDU LE. 9
(E) BEFORE SIGNING A CONT RACT FOR SERVICE UND ER A SPECIFIC RATE 10
SCHEDULE SUBMITTED U NDER SUBSECTION (C) OF THIS SECTION , A LARGE LOAD 11
CUSTOMER UNDER T HE SCHEDULE IS REQUI RED TO: 12
(1) SUBMIT A REQUEST FOR A LOAD STUDY TO DETE RMINE THE 13
NECESSARY CONTRACT C APACITY FOR THE LARG E LOAD CUSTOMER AND PAY ANY 14
APPLICABLE FEES ASSO CIATED WITH THE STUD Y; 15
(2) DESIGNATE A SPECIFIC SITE WHERE THE LARGE LOAD 16
CUSTOMER’S PROJECT WILL BE CO NSTRUCTED AND SERVED BY THE ELECTRIC 17
COMPANY; 18
(3) OWN OR HAVE THE EXCL USIVE RIGHT TO USE T HE LAND 19
DESIGNATED IN ITEM (2) OF THIS SUBSECTION F OR THE PROJECT ; AND 20
(4) MEET ANY OTHER REQUI REMENTS SPECIFIED UN DER THE RATE 21
SCHEDULE. 22
(F) (1) ON OR BEFORE JUNE 1, 2026, THE COMMISSION SHALL ADOP T 23
REGULATIONS TO CARRY OUT THIS SECTION . 24
(2) THE REGULATIONS SHALL : 25
(I) ESTABLISH MINIMUM NO TICE REQUIREMENTS AN D 26
DEADLINES RELATED TO LOAD STUDY REQUESTS AND CONTRACT TERMINA TIONS 27
AND ADJUSTMENTS ; 28
(II) IF CONSIDERED NECESS ARY BY THE COMMISSION, SPECIFY 29
COMMON FORMS OF ACCE PTABLE COLLATERAL TO SATISFY THE REQUIREM ENTS OF 30
THIS SECTION; AND 31
18 HOUSE BILL 1035
(III) ESTABLISH DEADLINES RELATED TO COMPLETIO N OF LOAD 1
STUDIES AND PAYMENT OF FEES. 2
4–213. 3
(A) THIS SECTION APPLIES ONLY TO A PUBLIC SER VICE COMPANY THAT IS 4
AN ELECTRIC COMPANY , GAS COMPANY , OR COMBINATION GAS A ND ELECTRIC 5
COMPANY. 6
(B) UNLESS OTHERWISE AUTH ORIZED BY LAW , THE COMMISSION MAY 7
APPROVE THE USE OF A MULTIYEAR RATE PLAN FOR DISTRIBUTION BASE RA TES 8
ONLY IF THE PLAN : 9
(1) DEMONSTRATES THE CUS TOMER BENEFITS OF TH E INVESTMENT ; 10
AND 11
(2) DOES NOT ALLOW FOR T HE PUBLIC SERVICE CO MPANY TO FILE 12
FOR RECONCILIATION O F COST OR REVENUE VA RIANCES OF THE APPRO VED 13
REVENUE COMPONENT US ED BY THE COMMISSION TO ESTABLI SH JUST AND 14
REASONABLE RATES . 15
(C) A PUBLIC SERVICE COMPA NY THAT FILES OR HAS FILED AN 16
APPLICATION FOR A MU LTIYEAR RATE PLAN MA Y NOT SUBSEQUENTLY F ILE FOR 17
RECONCILIATION OF CO ST OR REVENUE VARIAN CES OF THE APPROVED REVENUE 18
COMPONENT USED BY TH E COMMISSION TO ESTABLI SH THE MULTIYEAR RAT ES 19
UNLESS THE FILING FO R RECONCILIATION WAS MADE ON OR BEFORE JANUARY 1, 20
2025. 21
4–214. 22
(A) IN THIS SECTION , “NONPIPELINE ALTERNAT IVE” MEANS AN 23
INVESTMENT OR ACTIVI TY THAT DEFERS , REDUCES, OR ELIMINATES THE NEED TO 24
CONSTRUCT A NEW GAS PIPELINE. 25
(B) NOTHING IN THIS SECTI ON MAY BE CONSTRUED TO RESTRICT AN 26
INVESTOR–OWNED GAS COMPANY ’S ABILITY TO MAKE IM PROVEMENTS TO ITS GA S 27
SYSTEM TO ENSURE THE SAFE AND RELIABLE OP ERATION OF THE SYSTE M. 28
(C) AN INVESTOR–OWNED GAS COMPANY MA Y RECOVER REASONABLE AND 29
PRUDENT COSTS ASSOCI ATED WITH A PLANNED GAS INFRASTRUCTURE 30
INVESTMENT IF THE IN VESTOR–OWNED GAS COMPANY DE MONSTRATES AT A RATE 31
SETTING PROCEEDING : 32
(1) THE CUSTOMER BENEFIT S OF THE INVESTMENT ; 33 HOUSE BILL 1035 19
(2) THAT THE INVESTOR –OWNED GAS COMPANY AN ALYZED 1
COST–EFFECTIVE OPTIONS AVAILABLE TO DEFER, REDUCE, OR ELIMINATE THE 2
NEED TO REPLACE , UPGRADE, OR CONSTRUCT NEW COM PONENTS, INCLUDING AN 3
ANALYSIS OF: 4
(I) FOR NEW INVESTMENTS UNRELATED TO SAFETY , 5
NONPIPELINE ALTERNATIVES ; AND 6
(II) LEAK DETECTION AND R EPAIR; AND 7
(3) THE ESTIMATED RISK R EDUCTION ASSOCIATED WITH A 8
SAFETY–RELATED INVESTMENT , IF APPLICABLE. 9
4–504. 10
(A) THIS SECTION APPLIES ONLY TO A PUBLIC SER VICE COMPANY THAT IS 11
AN INVESTOR–OWNED ELECTRIC COMPANY , GAS COMPANY , OR COMBINATION GAS 12
AND ELECTRIC COMPANY . 13
(B) A PUBLIC SERVICE COMPA NY MAY NOT RECOVER T HROUGH RATES ANY 14
COSTS ASSOCIATED WIT H: 15
(1) MEMBERSHIP , DUES, SPONSORSHIPS , OR CONTRIBUTIONS TO AN 16
INDUSTRY TRADE ASSOC IATION, GROUP, OR RELATED ENTITY EX EMPT FROM 17
TAXATION UNDER § 501(C)(6) OF THE INTERNAL REVENUE CODE; OR 18
(2) THE ACQUISITION , USE, OR ALLOCATION OF COS TS ASSOCIATED 19
WITH A PRIVATE PLANE THAT IS OWNED OR LEA SED BY THE PUBLIC SE RVICE 20
COMPANY OR ITS HOLDI NG COMPANY . 21
5–305. 22
(a) This section applies to a project by an investor–owned gas company, electric 23
company, or combination gas and electric company involving the construction, 24
reconstruction, installation, demolition, restoration, or alteration of any underground gas 25
or electric infrastructure of the company, and any related traffic control activities. 26
(b) An investor–owned gas company, electric company, or combination gas and 27
electric company shall require a contractor or subcontractor on a project described in 28
subsection (a) of this section to pay its employees not less than the prevailing wage rate 29
determined solely by the Commissioner of Labor and Industry in a process substantially 30
similar to the process established under Title 17, Subtitle 2 of the State Finance and 31
Procurement Article. 32
20 HOUSE BILL 1035
(c) In accordance with Title 3, Subtitle 5 of the Labor and Employment Article, 1
the Maryland Department of Labor shall enforce the requirement under subsection (b) of 2
this section for contractors and subcontractors to pay employees not less than the prevailing 3
wage rate determined solely by the Commissioner of Labor and Industry. 4
(D) A CONTRACT ENTERED INT O AFTER MARCH 1, 2024, BY AN 5
INVESTOR–OWNED GAS COMPANY , ELECTRIC COMPANY , OR COMBINATION GAS A ND 6
ELECTRIC COMPANY THA T IS FOR THE CONSTRUCT ION, RECONSTRUCTION , 7
INSTALLATION, DEMOLITION, RESTORATION , OR ALTERATION OF ANY 8
UNDERGROUND GAS OR E LECTRIC INFRASTRUCTU RE, AND ANY RELATED TRAF FIC 9
CONTROL ACTIVITIES , INCLUDES A CONTRACT THAT HAS BEEN EXECUT ED, 10
AMENDED, OR ALTERED AF TER MARCH 1, 2024. 11
7–211. 12
(A) THE GENERAL ASSEMBLY FINDS AND DE CLARES THAT IT IS TH E POLICY 13
OF THE STATE TO ENCOURAGE TH E DEVELOPMENT OF CLE AN, CARBON–FREE 14
NUCLEAR POWER , INCLUDING DEVELOPMEN T THROUGH INNOVATIVE DESIGNS. 15
(B) THE MARYLAND ENERGY ADMINISTRATION, IN COORDINATION WITH 16
THE COMMISSION AND THE DEPARTMENT OF NATURAL RESOURCES, SHALL 17
PURSUE: 18
(1) COST–SHARING AGREEMENTS W ITH NEIGHBORING STAT ES IN THE 19
PJM REGION TO MITIGATE T HE RISKS OF DEVELOPI NG NEW NUCLEAR ENERG Y 20
GENERATING STATIONS ; AND 21
(2) AGREEMENTS WITH FEDE RAL AGENCIES REGARDI NG THE SITING 22
OF SMALL MODULAR REA CTORS: 23
(I) ON FEDERAL LAND ; OR 24
(II) ON OR NEAR FEDERAL F ACILITIES, INCLUDING MILITARY 25
AND NATIONAL SECURIT Y INSTALLATIONS . 26
(C) ON OR BEFORE DECEMBER 1, 2026, THE MARYLAND ENERGY 27
ADMINISTRATION SHALL REPORT TO THE GENERAL ASSEMBLY, IN ACCORDANCE 28
WITH § 2–1257 OF THE STATE GOVERNMENT ARTICLE, ON: 29
(1) THE STATUS OF THE EF FORTS MADE UNDER SUB SECTION (B) OF 30
THIS SECTION , INCLUDING AN ASSESSM ENT OF ANY OPPORTUNI TIES TO 31
PARTICIPATE WITH OTH ER STATES, FEDERAL AGENCIES , AND PUBLIC OR PRIVAT E 32
PARTNERS IN A MULTIS TATE PROCUREMENT OF NEW NUCLEAR ENERGY 33
TECHNOLOGY ; AND 34 HOUSE BILL 1035 21
(2) AN EVALUATION AND ST ATUS OF THE NUCLEAR ENERGY 1
PROCUREMENT PROCESS ESTABLISHED UNDER SUBTITLE 12, PART II PART III OF 2
THIS TITLE. 3
7–216. 4
(a) (1) In this section the following words have the meanings indicated. 5
(2) (i) “Energy storage device” means a resource capable of absorbing 6
electrical energy, storing it for a period of time, and delivering the energy for use at a later 7
time as needed, regardless of where the resource is located on the electric [distribution] 8
system. 9
(ii) “Energy storage device” includes all types of electric storage 10
technologies, regardless of their size, storage medium, or operational purpose, including: 11
1. thermal storage; 12
2. electrochemical storage; 13
3. [virtual power plants ] THERMO–MECHANICAL 14
STORAGE; and 15
4. hydrogen–based storage. 16
(3) “Investor–owned electric company” means an electric company that is 17
not a municipal electric utility or an electric cooperative. 18
7–216.2. 19
(A) IN THIS SECTION , “ENERGY STORAGE DEVIC E” HAS THE MEANING 20
STATED IN § 7–216 OF THIS SUBTITLE. 21
(B) (1) THE GENERAL ASSEMBLY FINDS AND DE CLARES THAT THE 22
STATE HAS A GOAL OF R EACHING AT LEAST 150 MEGAWATTS OF 23
DISTRIBUTION–CONNECTED FRONT –OF–THE–METER ENERGY STORAGE DEVICES. 24
(2) ON OR BEFORE JULY 1, 2025, AND ON OR BEFORE JULY 1, 2026, 25
THE COMMISSION SHALL NOTI FY EACH INVESTOR –OWNED ELECTRIC COMPA NY OF 26
ITS PROPORTION OF TH E GOAL ESTABLISHED UNDER THIS SUBSECTION , BASED ON: 27
(I) THE ELECTRIC COMPANY ’S SERVICE LOAD; OR 28
(II) OTHER CRITERIA ESTAB LISHED BY THE COMMISSION. 29
22 HOUSE BILL 1035
(C) (1) ON OR BEFORE NOVEMBER 1, 2025, THE COMMISSION SHALL 1
REQUIRE EACH INVESTO R–OWNED ELECTRIC COMPA NY TO SUBMIT A PLAN T O 2
ACHIEVE UP TO ONE –THIRD OF THE PROPORT ION OF DISTRIBUTION –CONNECTED 3
FRONT–OF–THE–METER ENERGY STORAGE DEVICES NECESSARY TO REACH THE 4
ELECTRIC COMPANY ’S APPORTIONMENT OF T HE GOAL STATED IN SU BSECTION (B) 5
OF THIS SECTION. 6
(2) ON OR BEFORE NOVEMBER 1, 2026, THE COMMISSION SHALL 7
REQUIRE EACH INVESTO R–OWNED ELECTRIC COMPA NY TO SUBMIT A PLAN FOR THE 8
BALANCE OF THE PROPO RTION OF DISTRIBUTIO N–CONNECTED 9
FRONT–OF–THE–METER ENERGY STORAGE DEVICES NECESSARY TO REACH THE 10
ELECTRIC COMPANY ’S APPORTIONMENT OF THE GOA L STATED IN SUBSECTI ON (B) 11
OF THIS SECTION. 12
(3) ON OR BEFORE MAY 1, 2026, FOR PLANS SUBMITTED IN 13
ACCORDANCE WITH PARA GRAPH (1) OF THIS SUBSECTION , AND ON OR BEFORE MAY 14
1, 2027, FOR PLANS SUBMITTED IN ACCORDANCE WITH P ARAGRAPH (2) OF THIS 15
SUBSECTION, THE COMMISSION SHALL : 16
(I) EVALUATE EACH PLAN ; 17
(II) ACCEPT PUBLIC COMMEN TS ON EACH PLAN ; AND 18
(III) ISSUE AN ORDER FOR E ACH PLAN THAT : 19
1. APPROVES THE PLAN ; 20
2. APPROVES THE PLAN WI TH MODIFICATIONS THA T 21
THE COMMISSION CONSIDERS NECESSARY; OR 22
3. REJECTS THE PLAN , WITH AN EXPLANATION OF THE 23
REASONS FOR THE REJE CTION. 24
(4) THE ENERGY STORAGE DE VICES CONSTRUCTED OR PROCURED 25
UNDER EACH PLAN SHAL L INCLUDE A COMB INATION OF DEVICES O WNED BY THE 26
INVESTOR–OWNED ELECTRIC COMPA NY AND DEVICES OWNED BY A THIRD PARTY , 27
WITH A GOAL OF 30% OF THE DEVICES BEING OWNED BY A THIRD PAR TY. 28
(5) (I) THE ENERGY STORAGE DE VICES THAT ARE CONST RUCTED 29
OR PROCURED UNDER A PLAN SUBMITTE D BY NOVEMBER 1, 2025, SHALL BE 30
OPERATIONAL BY NOVEMBER 1, 2027. 31
HOUSE BILL 1035 23
(II) THE ENERGY STORAGE DE VICES THAT ARE CONST RUCTED 1
OR PROCURED UNDER A PLAN SUBMITTED BY NOVEMBER 1, 2026, SHALL BE 2
OPERATIONAL BY NOVEMBER 1, 2028. 3
(III) THE COMMISSION MAY EXTEND A DEADLINE UNDER THI S 4
PARAGRAPH FOR GOOD C AUSE. 5
(D) THE COMMISSION SHALL REQU IRE EACH PLAN TO DEM ONSTRATE THAT 6
THE CONSTRUCTION OR PROCUREMENT OF EACH ENERGY STORAGE DEVIC E: 7
(1) IS COST–EFFECTIVE IN CONSIDE RATION OF A COST –BENEFIT 8
ANALYSIS, INCLUDING A DEMONSTRATION OF A NY: 9
(I) AVOIDED OR DELAYED T RANSMISSION, DISTRIBUTION, AND 10
GENERATION COSTS ; AND 11
(II) AVOIDED EMISSIONS IN THE SHORT TERM AND P ROJECTED 12
EMISSIONS IN THE LON G TERM, MEASURED USING THE S OCIAL COST OF CARBON , AS 13
DETERMINED BY THE U.S. ENVIRONMENTAL PROTECTION AGENCY AS OF JANUARY 14
1, 2025; 15
(2) CAN BE COMPLETED WIT HIN 18 MONTHS AFTER THE PLA N IS 16
APPROVED; AND 17
(3) COMPLIES WITH ANY OT HER FACTORS DETERMIN ED BY THE 18
COMMISSION. 19
(E) (1) A DEVELOPER OF A THIRD –PARTY–OWNED ENERGY STORAGE 20
DEVICE CONSTRUCTED I N ACCORDANCE WITH TH IS SECTION SHALL ENS URE THAT 21
WORKERS ARE PAID NOT LESS THAN THE PREVAI LING WAGE RATE DETER MINED 22
UNDER TITLE 17, SUBTITLE 2 OF THE STATE FINANCE AND PROCUREMENT 23
ARTICLE. 24
(2) AN ENERGY STORAGE DEV ICE CONSTRU CTED AND OWNED BY AN 25
ELECTRIC COMPANY SHA LL BE CONSTRUCTED BY : 26
(I) EMPLOYEES OF THE ELE CTRIC COMPANY ; OR 27
(II) CONTRACTORS THAT SHA LL ENSURE THAT WORKE RS 28
CONSTRUCTING THE ENE RGY STORAGE DEVICE A RE PAID NOT LESS THA N THE 29
PREVAILING WAGE RATE DETERMIN ED UNDER TITLE 17, SUBTITLE 2 OF THE STATE 30
FINANCE AND PROCUREMENT ARTICLE. 31
24 HOUSE BILL 1035
(3) (I) AN INVESTOR –OWNED ELECTRIC COMPA NY SHALL 1
OPERATE AND MAINTAIN ENERGY STORAGE DEVIC ES INSTALLED BY THE ELECTRIC 2
COMPANY IN ACCORDANC E WITH THIS SECTION . 3
(II) IN PERFO RMING THE MAINTENANC E AND OPERATIONS 4
REQUIRED UNDER SUBPA RAGRAPH (I) OF THIS PARAGRAPH , AN INVESTOR–OWNED 5
ELECTRIC COMPANY SHA LL MEET WITH THE EMP LOYEE BARGAINING UNI T’S LABOR 6
REPRESENTATIVE AND C ONFER IN GOOD FAITH REGARDING THE VIABIL ITY OF: 7
1. ALLOCATING MAINTENANCE A ND OPERATIONS WORK 8
TO CURRENT BARGAININ G UNIT EMPLOYEES ; 9
2. TRAINING CURRENT BAR GAINING UNIT EMPLOYE ES 10
TO PERFORM MAINTENAN CE AND OPERATIONS WO RK; 11
3. HIRING QUALIFIED IND IVIDUALS TO PERFORM 12
MAINTENANCE AND OPER ATION WORK; 13
4. TRAINING NEWLY HIRED INDIVIDUALS TO PERFO RM 14
MAINTENANCE AND OPER ATIONS WORK; AND 15
5. MAINTAINING AND OPER ATING STORAGE DEVICE S IN 16
ACCORDANCE WITH PARA GRAPH (4) OF THIS SUBSECTION . 17
(4) (I) SUBJECT TO SUBPARAGRA PH (II) OF THIS PARAGRAPH , AN 18
INVESTOR–OWNED ELECTRIC COMPA NY MAY CONTRACT ANY WORK UNDER THIS 19
SECTION NOT CONDUCTE D BY THE COMPANY ’S EMPLOYEE BARGAININ G UNIT TO A 20
QUALIFIED CONTRACTOR . 21
(II) AN INVESTOR –OWNED ELECTRIC COMPA NY SHALL 22
REQUIRE A CONTRACTOR OR SUBCONTRACTOR ON A PROJECT UNDER THIS SECTION 23
TO: 24
1. PAY THE AREA PREVAIL ING WAGE RATE DETERM INED 25
BY THE COMMISSIONER OF LABOR AND INDUSTRY, INCLUDING WAGES AND FRINGE 26
BENEFITS; AND 27
2. OFFER HEALTH CARE AN D RETIREMENT BENEFIT S TO 28
THE EMPLOYEES WORKIN G ON THE PROJECT . 29
(F) (1) EACH ENERGY STORAGE P ROJECT CONSTRUCTED I N 30
ACCORDANCE WITH THIS SECTION SHALL INCLUD E A PROPOSED DECOMMI SSIONING 31
PLAN. 32
HOUSE BILL 1035 25
(2) THE PROPOSED DECOMMIS SIONING PLAN SHALL I NCLUDE A PLAN 1
TO MAXIMIZE THE RECY CLING OR REUSE OF AL L QUALIFYING COMPONE NTS OF 2
EACH ENERGY STORAGE DEVICE . 3
(3) THE OWNER OR OPERATOR OF AN ENERGY STORAGE DEVICE MAY 4
SUBMIT A REVISED REC YCLING AND REUSE PLA N THAT INCORPORATES EMERGING 5
RECYCLING AND REUSE OPPORTUNITIES UP TO 1 YEAR BEFORE EXECUTIN G THE 6
DECOMMISSIONING PLAN . 7
7–224. 8
(a) (1) Beginning January 1, 2025, and on or before January 1 every 3 years, 9
starting in 2027, the Department shall procure or provide to low–income individuals energy 10
efficiency and conservation programs and services, demand response programs and 11
services, and beneficial electrification programs and services that achieve the greenhouse 12
gas emissions reduction targets established for the Department under paragraph (2) of this 13
subsection. 14
(2) For the period 2025–2033, the programs and services required under 15
paragraph (1) of this subsection shall be on a trajectory to achieve greenhouse gas 16
reductions after 2027 of at least 0.9% of the baseline determined under subsection (b) of 17
this section. 18
(3) (i) When establishing greenhouse gas emissions reduction targets 19
under this subsection, the Commission shall measure the greenhouse gas emissions from 20
electricity using current data and projections from the Department of the Environment. 21
(ii) The greenhouse gas emissions reduction targets established 22
under this subsection shall be measured in metric tons. 23
(4) The greenhouse gas reductions achieved to meet the targets established 24
under paragraph (2) of this subsection shall count toward the achievement of the 25
greenhouse gas reduction target established under § 7–223(b) of this subtitle. 26
(5) The target greenhouse gas savings shall be achieved based on the 27
3–year average of the Department’s plan submitted in accordance with subsection (d) of 28
this section. 29
(6) For 2025 and 2026: 30
(i) the Commission shall, after making appropriate findings, 31
determine whether the Department’s existing 2024–2026 plan must be modified to comply 32
with: 33
1. the targets established in this subsection; and 34
26 HOUSE BILL 1035
2. § 7–225(d) of this subtitle; and 1
(ii) the Department: 2
1. shall provide information as required by the Commission 3
to assist in making the determination in item (i) of this paragraph; and 4
2. is only required to file new plans in accordance with 5
subsection (d) of this section and § 7–225 of this subtitle if directed by the Commission. 6
(b) As a baseline for determining greenhouse gas emissions reduction targets 7
under this section, the Commission shall use the greenhouse gas emissions resulting from 8
the direct consumption of gas and electricity by low–income residential households in 2016, 9
as determined by the Department of the Environment. 10
(c) [(1) The] WHEN CALCULATING THE ACHIEVEMENT OF GREEN HOUSE 11
GAS EMISSIONS REDUCT ION TARGETS UNDER TH IS SECTION, THE Department may 12
procure or provide savings that are achieved through [funding sources that meet the 13
standards of program funding through utility rates or the U.S. Department of Energy] ALL 14
FUNDING SOURCES , TO THE EXTENT THAT T HE SAVINGS FROM THOS E FUNDING 15
SOURCES ARE ACHIEVED : 16
(1) IN A MANNER CONSISTE NT WITH REQUIREMENTS OF TH E U.S. 17
DEPARTMENT OF ENERGY; OR 18
(2) IN A MANNER OTHERWIS E CONSISTENT WITH TH E ENERGY 19
SAVINGS REQUIREMENTS APPLICABLE TO THOSE FUNDING SOURCES . 20
[(2) The Department may use the savings achieved through all funding 21
sources toward calculating the targeted greenhouse gas reductions if the funding sources 22
meet the standards of programs funded through: 23
(i) a surcharge under § 7–222 of this subtitle; or 24
(ii) the U.S. Department of Energy.] 25
7–505. 26
(c) (1) Notwithstanding any other provision of law, including subsection (d) of 27
this section, AND SUBJECT TO § 4–213 OF THIS ARTICLE, the Commission may regulate 28
the regulated services of an electric company through alternative forms of regulation. 29
(2) The Commission may adopt an alternative form of regulation under this 30
section if the Commission finds, after notice and hearing, that the alternative form of 31
regulation: 32
HOUSE BILL 1035 27
(i) protects consumers; 1
(ii) ensures the quality, availability, and reliability of regulated 2
electric services; and 3
(iii) is in the interest of the public, including shareholders of the 4
electric company. 5
(3) Alternative forms of regulation may include: 6
(i) price regulation, including price freezes or caps; 7
(ii) revenue regulation; 8
(iii) ranges of authorized return; 9
(iv) rate of return; 10
(v) categories of services; or 11
(vi) price–indexing. 12
7–506.1. 13
(A) (1) IN THIS SECTION THE F OLLOWING WORDS HAVE THE MEANINGS 14
INDICATED. 15
(2) “CONSTRUCTION ” HAS THE MEANING STAT ED IN § 7–207 OF THIS 16
TITLE. 17
(3) “LARGE LOAD CUSTOMER ” MEANS A COMMERCIAL O R 18
INDUSTRIAL CUSTOMER WITH AN EXPECTED LOA D DEMAND OF AT LEAST 100 19
MEGAWATTS . 20
(B) (A) (1) THIS SECTION APPLIES ONLY TO: 21
(I) AN ELECTRICITY SUPPL IER OR OTHER OWNER O F A 22
GENERATING STATION THAT ENTERS INTO A C ONTRACT FOR THE PROV ISION OF THE 23
DIRECT SUPPLY OF ELE CTRICITY TO A COMMER CIAL OR INDUSTRIAL C USTOMER IN 24
A WAY THAT BYPASSES : 25
1. INTERCONNECTION OF T HE LOAD WITH THE 26
ELECTRIC TRANSMISSIO N AND DISTRIBUTION S YSTEMS; OR 27
28 HOUSE BILL 1035
2. THE DISTRIBUTION SERVICES OF AN ELECTRIC 1
COMPANY; AND 2
(II) A COMMERCIAL OR INDU STRIAL CUSTOMER THAT ENTERS 3
INTO A CONTRACT WITH AN ELECTRICITY SUPPL IER OR OTHER OWNER O F A 4
GENERATING STATION F OR THE PROVISION OF THE DIRECT SUPPLY OF 5
ELECTRICITY AS SPECI FIED IN ITEM (I) OF THIS PARAGRAPH . 6
(2) THIS SECTION DOES NOT APPLY TO THE USE OF ELECTRICITY 7
FROM AN ON –SITE GENERATING STAT ION THAT HAS BEEN AP PROVED UNDER § 8
7–207.1 OF THIS TITLE. 9
(C) EXCEPT AS PROVIDED BY FEDERAL LAW AND SUBS ECTION (D) OF THIS 10
SECTION, AN ELECTRICITY SUPPL IER OR OTHER OWNER O F A GENERATING STATI ON 11
MAY NOT ENTER INTO A CONTRACT FOR THE PRO VISION OF THE DIRECT SUPPLY OF 12
ELECTRICITY TO A COM MERCIAL OR INDUSTRIA L CUSTOMER IN A WAY THAT 13
BYPASSES: 14
(1) INTERCONNECTION WITH THE ELECTRIC TRA NSMISSION AND 15
DISTRIBUTION SYSTEMS ; OR 16
(2) THE DISTRIBUTION SER VICES OF AN ELECTRIC COMPANY. 17
(D) AN ELECTRICITY SUPPLI ER OR OTHER OWNER OF A GENERATING 18
STATION MAY ENTER IN TO A CONTRACT FOR TH E PROVISION OF THE D IRECT SUPPLY 19
OF ELECTRICITY TO A LARGE LOAD CUSTOMER IN A W AY THAT BYPASSES 20
INTERCONNECTION WITH THE ELECTRIC TRANSMI SSION AND DISTRIBUTI ON 21
SYSTEMS OR THE DISTR IBUTION SERVICES OF AN ELECTRIC COMPANY IF THE 22
GENERATING STATION : 23
(1) (I) INCREASES ITS GENERA TION OUTPUT FROM EXI STING 24
LEVELS TO A LEVEL THAT MEETS 100% OF THE LARGE LOAD CU STOMER’S EXPECTED 25
LOAD DEMAND ; OR 26
(II) CREATES NEW GENERATI ON OUTPUT AT A LEVEL THAT 27
MEETS 100% OF THE LARGE LOAD CU STOMER’S EXPECTED LOAD DEMA ND; AND 28
(2) OBTAINS, IF NECESSARY: 29
(I) A CERTIFICATE OF PUB LIC CONVENIENCE AND NECESSITY 30
FOR THE CONSTRUCTION OF THE GENERATING ST ATION IN ACCORDANCE WITH § 31
7–207 OF THIS TITLE AND AN Y OTHER ASSOCIATED S TANDARD; AND 32
HOUSE BILL 1035 29
(II) ANY OTHER STANDARD S ITING APPROVALS AND PERMITS 1
RELATED TO THE CONST RUCTION OF A GENERATI NG STATION. 2
(B) THE COMMISSION MAY APPLY TO A COMMERCIAL OR I NDUSTRIAL 3
CUSTOMER AND ANY GEN ERATING STATION SUPP LYING ELECTRICITY TO THE 4
COMMERCIAL OR INDUST RIAL CUSTOMER IN THE MANNER SPECIFIED IN 5
SUBSECTION (A)(1) OF THIS SECTION: 6
(1) ANY DIRECT OR INDIRE CT COSTS, FEES, AND OBLIGATIONS THAT 7
ARE NORMALLY APPLIED TO RETAIL ELECTRIC C USTOMERS IN THE SERV ICE 8
TERRITORY IN WHICH T HE COMMERCIAL OR IND USTRIAL CUSTOMER OR 9
GENERATING STATION I S LOCATED OR INTERCO NNECTED IF THE COMMISSION 10
DETERMINES THAT THE DI RECT OR INDIRECT COS TS, FEES, AND OBLIGATIONS 11
SHOULD BE ATTRIBUTAB LE TO THE COMMERCIAL OR INDUSTRIAL CUSTOM ER AND 12
ANY GENERATING STATI ON SUPPLYING ELECTRI CITY TO THE COMMERCI AL OR 13
INDUSTRIAL CUSTOMER ; AND 14
(2) ANY AVOIDED WHOLESAL E COSTS THAT THE COMMISSION 15
DETERMINES HAVE BEEN OR MAY BE SHIFTED IN APPROPRIATELY TO OTH ER RETAIL 16
ELECTRIC CUSTOMERS A S A RESULT OF THE PR OVISION OF THE DIREC T SUPPLY OF 17
ELECTRICITY AS SPECI FIED IN SUBSECTION (A)(1) OF THIS SECTION, INCLUDING: 18
(I) TRANSMISSION COSTS; 19
(II) ENERGY COSTS ; 20
(III) CAPACITY COSTS ; AND 21
(IV) ANCILLARY SERVICES C OSTS. 22
SUBTITLE 12. ENERGY SOLICITATION AND PROCUREMENT . 23
PART I. EMERGENCY ENERGY PROCUREMENT DEFINITIONS; GENERAL 24
PROVISIONS. 25
7–1201. 26
(A) IN THIS PART THE FOLLOWING WORDS HAVE THE MEANINGS 27
INDICATED. 28
(B) “DISPATCHABLE ENERGY G ENERATION” MEANS A GENERATING 29
STATION OR ENERGY ST ORAGE DEVICE WITH : 30
30 HOUSE BILL 1035
(1) AN EFFECTIVE LOAD CA RRYING CAPABILITY OF AT LEAST 65%, AS 1
DETERMINED BY PJM INTERCONNECTION ’S MOST RECENT ELCC CLASS RATINGS; 2
AND 3
(2) A LOWER GREENHOUSE G AS EMISSIONS PROFILE THAN COAL OR 4
OIL ENERGY GENERATIN G STATIONS. 5
(C) “EFFECTIVE LOAD CARRYI NG CAPABILITY ” OR “ELCC” MEANS THE 6
EXPECTED CAPACITY CO NTRIBUTION OF AN ENE RGY RESOURCE DURING PJM 7
INTERCONNECTI ON’S OPERATING HOURS WH EN THERE IS HIGH ELE CTRICITY 8
DEMAND AND LOW RESOU RCE OUTPUT. 9
(D) “EFFECTIVE NAMEPLATE C APACITY” MEANS THE AMOUNT OF ENERGY 10
AN ENERGY STORAGE DE VICE CAN DELIVER CON TINUOUSLY TO THE ELE CTRIC 11
SYSTEM OVER A PERIOD OF AT LEAST 4 HOURS. 12
(D) (E) “ENERGY STORAGE DEVICE ” HAS THE MEANING STAT ED IN § 13
7–216 OF THIS TITLE. 14
(E) (F) “GENERATING STATION ” HAS THE MEANING STAT ED IN § 7–207 OF 15
THIS TITLE. 16
(G) “LARGE CAPACITY ENERGY RESOURCE” MEANS A GENERATING S TATION 17
OR ENERGY STORAGE DE VICE THAT: 18
(1) ON OR BEFORE JANUARY 1, 2025: 19
(I) HAS APPLIED TO PJM FOR INTERCONNECTION APPROVAL; 20
OR 21
(II) HAS BEEN APPROVED BY PJM FOR INTERCONNECTION ; 22
AND 23
(2) HAS A CAPACITY RATIN G EQUAL TO OR GREATE R THAN 20 24
MEGAWATTS AFTER ACCO UNTING FOR THE EF FECTIVE LOAD CARRYIN G 25
CAPABILITY. 26
7–1202. 27
(A) AN APPLICATION FOR A PROPOSED PROJECT UND ER PARTS III AND IV 28
OF THIS SUBTITLE IS SUBJECT TO A COMMUNI TY BENEFIT AGREEMENT . 29
(B) A COMMUNITY BENEFIT AG REEMENT SHALL : 30
HOUSE BILL 1035 31
(1) PROMOTE INCREASED OP PORTUNITIES FOR LOCAL BUSINESSES 1
AND SMALL, MINORITY, WOMEN–OWNED, AND VETERAN –OWNED BUSINESSES IN THE 2
CLEAN ENERGY INDUSTR Y; 3
(2) ENSURE THE TIMELY , SAFE, AND EFFICIENT COMPLE TION OF THE 4
PROJECT BY: 5
(I) FACILITATING A STEAD Y SUPPLY OF HIGHLY S KILLED 6
CRAFT WORKE RS WHO SHALL BE PAID NOT LESS THAN THE PR EVAILING WAGE RATE 7
DETERMINED BY THE COMMISSIONER OF LABOR AND INDUSTRY UNDER TITLE 17, 8
SUBTITLE 2 OF THE STATE FINANCE AND PROCUREMENT ARTICLE; AND 9
(II) GUARANTEEING THAT TH E CONSTRUCTION WORK 10
PERFORMED IN CONN ECTION WITH THE PROJ ECT WILL BE SUBJECT TO AN 11
AGREEMENT THAT : 12
1. ESTABLISHES THE TERM S AND CONDITIONS OF 13
EMPLOYMENT AT THE CO NSTRUCTION SITE OF T HE PROJECT OR A PORT ION OF THE 14
PROJECT; 15
2. GUARANTEES AGAINST S TRIKES, LOCKOUTS, AND 16
SIMILAR DISRUPTI ONS; 17
3. ENSURES THAT ALL WOR K ON THE PROJECT FUL LY 18
CONFORMS TO ALL RELE VANT STATE AND FEDERAL LAW S, RULES, AND 19
REGULATIONS , INCLUDING ALL REQUIR ED TRAINING FOR EMPL OYEES; 20
4. CREATES MUTUALLY BIN DING PROCEDURES FOR 21
RESOLVING LABOR DISP UTES ARISING DURING THE TERM OF T HE DISPATCHABLE 22
ENERGY GENERATION PR OJECT; 23
5. SETS FORTH OTHER MEC HANISMS FOR 24
LABOR–MANAGEMENT COOPERATI ON ON MATTERS OF MUT UAL INTEREST AND 25
CONCERN, INCLUDING PRODUCTIVI TY, QUALITY OF WORK , SAFETY, AND HEALTH ; 26
AND 27
6. BINDS ALL CONTRACTORS AND SUBCONTRACTORS TO 28
THE TERMS OF THE AGR EEMENT THROUGH THE I NCLUSION OF APPROPRI ATE 29
PROVISIONS IN ALL RE LEVANT SOLICITATION AND CONTRACT DOCUMEN TS; 30
(3) PROMOTE SAFE COMPLET ION OF THE PROJECT B Y ENSURING 31
THAT AT LEAST 80% OF THE CRAFT W ORKERS ON THE PROJEC T HAVE COMPLETED 32
A 10–HOUR OCCUPATIONAL SAFETY AND HEALTH ADMINISTRATION COURSE ; 33
32 HOUSE BILL 1035
(4) PROMOTE CAREER TRAIN ING OPPORTUNITIES IN THE 1
MANUFACTURING , MAINTENANCE , AND CONSTRUCTION IND USTRIES FOR LOCAL 2
RESIDENTS, VETERANS, WOMEN, MINORITIES, AND FORMERLY INCARCE RATED 3
INDIVIDUALS; 4
(5) INCLUDE PROVISIONS F OR LOCAL HIRING AND THE HIRING OF 5
HISTORICALLY DISADVA NTAGED GROUPS ; 6
(6) USE LOCALLY , SUSTAINABLY, AND DOMESTICALLY 7
MANUFACTURED CONSTRU CTION MATERIALS AND COMPONENTS TO THE E XTENT 8
PRACTICABLE ; 9
(7) REQUIRE THE USE OF S KILLED LOCAL LABOR , PARTICULARLY 10
WITH REGARD TO THE C ONSTRUCTION AND MANU FACTURING COMPONENTS OF THE 11
PROJECT, USING METHODS INCLUD ING OUTREACH , HIRING, AND REFERRAL 12
METHODS THAT ARE AFF ILIATED WITH REGISTE RED APPRENTICESHIP PROGRA MS 13
UNDER TITLE 11, SUBTITLE 4 OF THE LABOR AND EMPLOYMENT ARTICLE; AND 14
(8) AUTHORIZE THE MARYLAND DEPARTMENT OF LABOR AND THE 15
COMMISSION TO CONSIDE R, REVIEW, AND ENFORCE A STORAG E DEVELOPER OR 16
ENERGY DEVELOPER ’S COMPLIANCE WITH AN Y COMMUNITY BENEFIT AGR EEMENT. 17
7–1203. 18
THE COMMISSION MAY CONTRA CT FOR THE SERVICES OF INDEPENDENT 19
CONSULTANTS AND EXPE RTS TO IMPLEMENT AND EXECUTE ANY PART OF THIS 20
SUBTITLE. 21
7–1204. RESERVED. 22
7–1205. RESERVED. 23
PART II. DISPATCHABLE ENERGY GENERATION AN D LARGE CAPACITY 24
RESOURCES. 25
7–1206. 26
(A) (1) ON OR BEFORE OCTOBER 1, 2025, AND AT OTHER TIMES A S 27
PROVIDED IN SUBSECTI ON (B) OF THIS SECTION , THE COMMISSION SHALL ISSU E 28
ONE OR MORE COMPETITIVE SOLICITATIONS FOR PR OPOSALS FOR CONSTRUCTING 29
OR EXPANDING DISPATCHABLE ENERGY GENERATION IN THE STATE THE 30
CONSTRUCTION OR EXPA NSION OF: 31
(I) DISPATCHABLE ENERGY GENERATION ; AND 32 HOUSE BILL 1035 33
(II) LARGE CAPACITY ENERG Y RESOURCES. 1
(2) THE COMMISSION SHALL SET THE CLOSING DATE FOR THE 2
SOLICITATION PERIOD TO BE NOT SOONER THA N 120 30 DAYS AFTER ISSUING THE 3
REQUEST FOR PROPOSAL S IS ISSUED UNDER PARAGRAPH (1) OF THIS SUBSECTION . 4
(B) THE COMMISSION MAY PROVID E FOR AN ADDITIONAL SOLICITATION 5
PERIOD IF THE CAPACI TY SPECIFIED UNDER § 7–1203(B)(1) § 7–1208(D)(1) OF THIS 6
SUBTITLE HAS NOT BEE N MET DURING THE INI TIAL SOLICITATION PE RIOD. 7
(C) THE COMMISSION SHALL PROV IDE TO THE POWER PLANT RESEARCH 8
PROGRAM A COPY OF EAC H PROPOSAL RECEIVED IN RESPONSE TO THE 9
SOLICITATION. 10
(D) (1) EXCEPT AS PROVIDED IN PARAGRAPH (2) OF THIS SUBSECTION , 11
THE COMMISSION MAY NOT AP PROVE OR DEVELOP A F INANCIAL COMMITMENT FOR 12
THE COSTS RELATED TO THE CONSTRUCTION OR OPER ATION OF A DISPATCHA BLE 13
ENERGY GENERATION PR OJECT OR LARGE CAPACITY EN ERGY RESOURCE PROJEC T 14
APPROVED IN ACCORDAN CE WITH THIS PART MAY NOT BE RECOVERED THROUGH 15
UTILITY RATES. 16
(2) A DISPATCHABLE ENERGY GENERATION PROJECT O R LARGE 17
CAPACITY ENERGY RESO URCE PROJECT APPROVE D IN ACCORDANCE WITH THIS 18
PART MAY PARTICIPATE IN OTHER PROCESSES UNDER WHIC H RATEPAYER FUNDS 19
ARE AWARDED TO DISPA TCHABLE ENERGY GENER ATION OR LARGE CAPAC ITY 20
ENERGY RESOURCES . 21
7–1203. 22
(A) SUBJECT TO SUBSECTION (B) OF THIS SECTION, UNLESS EXTENDED BY 23
MUTUAL CONSENT OF TH E PARTIES, THE COMMISSION SHALL APPR OVE, 24
CONDITIONALLY APPROV E, OR DENY A PROPOSAL S UBMITTED IN RESPONSE TO A 25
SOLICITATION ISSUED UNDER § 7–1202 OF THIS SUBTITLE WIT HIN 90 DAYS AFTER 26
THE CLOSE OF THE SOL ICITATION PERIOD . 27
7–1207. 28
THE COMMISSION SHALL INCL UDE SPECIFICAT IONS IN A SOLICITATI ON 29
ISSUED UNDER § 7–1206 OF THIS SUBTITLE THA T REQUIRE EACH PROPO SAL FOR A 30
DISPATCHABLE ENERGY GENERATION PROJECT A ND LARGE CAPACITY EN ERGY 31
RESOURCE PROJECT TO : 32
34 HOUSE BILL 1035
(1) IF THE PROJECT IS A NATURAL GAS ENERGY G ENERATING 1
STATION, ENSURE THAT THE PROJECT CAN B E CONVERTED TO USE O NLY HYDROGEN 2
OR A ZERO–EMISSIONS BIOFUEL AS THE ENERGY SOURCE WH EN THE COMMISSION 3
DETERMINES THAT THE CONVERSION IS FEASIB LE; 4
(2) INCLUDE A DETAILED D ESCRIPTION OF THE TI MELINE FOR 5
CONSTRUCTION OF THE PROJECT, INCLUDING: 6
(I) IDENTIFYING THE ENTI TY THAT HAS OWNERSHI P OR SITE 7
CONTROL OF THE PROJE CT SITE; 8
(II) QUEUE POSITION FOR PJM APPROVAL; 9
(III) THE ABILITY TO PROCU RE MATERIALS , INCLUDING 10
TURBINES AND OTHER P IPELINE MATERIALS ; AND 11
(IV) ANY INFORMATION THAT DEM ONSTRATES THE 12
APPLICANT’S: 13
1. READINESS TO APPLY F OR A CERTIFICATE OF PUBLIC 14
CONVENIENCE AND NECE SSITY UNDER § 7–207 OR § 7–207.4 OF THIS TITLE AS SOO N 15
AS IS REASONABLY FEA SIBLE AFTER RECEIVIN G APPROVAL FOR THE P ROJECT, 16
INCLUDING T HE ANTICIPATED APPLI CATION DATE; AND 17
2. ABILITY TO DEVELOP T HE PROJECT WITHIN TH E 18
TIMELINE PRESENTED ; 19
(3) INCLUDE A DESCRIPTIO N OF THE LOCATION OF THE PROJECT 20
SITE, INCLUDING: 21
(I) THE PROXIMITY OF THE SITE TO EXISTING TRA NSMISSION 22
LINES AND RIGHTS–OF–WAY; AND 23
(II) WHETHER THE PROJECT WOULD BE RETROFITTIN G A 24
CURRENT OR PREVIOUS GENERATING STATION S ITE; 25
(4) IF APPLICABLE, INCLUDE A DESCRIPTIO N OF: 26
(I) THE TYPE AND AMOUNT OF CO–LOCATED ENERGY 27
GENERATION FROM TIER 1 RENEWABLE SOURCES , AS DEFINED IN § 7–701 OF THIS 28
TITLE, THAT WOULD BE USED W ITH THE PROJECT ; 29
(II) THE AMOUNT OF CO –LOCATED ENERGY STORA GE THAT 30
WOULD BE USED WITH T HE PROJECT; 31 HOUSE BILL 1035 35
(III) THE USE OF CARBON CA PTURE OR SEQUESTRATI ON 1
TECHNOLOGY TO MITIGA TE GREENHOUSE GAS EM ISSIONS FROM THE PROJECT ; AND 2
(IV) THE AMOUNT OF HYDROG EN OR ZERO –EMISSIONS 3
BIOFUELS THAT THE PR OJECT WILL MIX WITH NATURAL GAS FOR ENER GY 4
GENERATION ; AND 5
(5) STATE THE EMISSIONS INTENSITY OF THE GEN ERATION OUTPUT 6
OVER THE LIFE OF THE PROJECT. 7
7–1208. 8
(A) (1) WITHIN 45 DAYS AFTER THE CLOSI NG DATE FOR THE 9
SOLICITATION PERIOD SET IN ACCORDANCE WI TH § 7–1206 OF THIS SUBTITLE OR 10
SOONER AS DETERMINED BY THE COMMISSION, THE POWER PLANT RESEARCH 11
PROGRAM SHALL RECOMME ND TO THE COMMISSION PROPOSALS TO BE 12
AUTHORIZED TO UTILIZE TH E EXPEDITED CERTIFIC ATE OF PUBLIC CONVEN IENCE 13
AND NECESSITY PROCES S UNDER § 7–207.4 OF THIS TITLE. 14
(2) THE POWER PLANT RESEARCH PROGRAM SHALL BASE IT S 15
RECOMMENDATIONS ON T HE INFORMATION IN TH E PROPOSALS RECEIVED AND THE 16
SPECIFICATION S LISTED IN §§ 7–1207 AND 7–1209 OF THIS SUBTITLE. 17
(B) SUBJECT TO SUBSECTION (C) OF THIS SECTION AND AFTER 18
CONSIDERING THE RECO MMENDATIONS OF THE POWER PLANT RESEARCH 19
PROGRAM MADE UNDER SU BSECTION (A) OF THIS SECTION , UNLESS THE 20
COMMISSION GRANTS A R EQUEST FOR AN EXTENSION FOR GOOD CAUSE , NOT LATER 21
THAN 60 DAYS AFTER THE CLOSE OF THE SOLICITATION PERIOD THE COMMISSION 22
SHALL APPROVE , CONDITIONALLY APPROV E, OR DENY A PROPOSAL S UBMITTED IN 23
RESPONSE TO A SOLICI TATION ISSUED UNDER § 7–1206 OF THIS SUBTITLE . 24
(C) IN ADDITION TO THE CR ITERIA SPECIFIED IN § 7–1207 OF THIS 25
SUBTITLE, THE COMMISSION SHALL DETE RMINE WHICH PROPOSAL S TO APPROVE 26
BASED ON THE FACTORS AND REQUIREMENTS SPE CIFIED IN § 7–1209 OF THIS 27
SUBTITLE. 28
(B) (D) (1) SUBJECT TO PARAGRAPH (2) OF THIS SUBSECTION, THE 29
COMBINED TOTAL CAPAC ITY OF DISPATCHABLE ENERGY GENERATION PR OJECTS 30
AND LARGE CAPACITY E NERGY RESOURCE PROJE CTS APPROVED UNDER THIS 31
SECTION SHALL BE GRE ATER THAN THE COMBIN ED SUMMER PEAK CAPAC ITY 32
PROFILE OF COAL AND OIL ENERGY GENERATIN G STATIONS IN THE STATE AS 33
OUTLINED UNDER TABLE 9 OF THE COMMISSION’S TEN–YEAR PLAN (2024–2033) 34
OF ELECTRIC COMPANIES IN MARYLAND. 35 36 HOUSE BILL 1035
(2) THE COMBINED TOTAL CA PACITY OF NATURAL GA S 1
DISPATCHABLE ENERGY GENERATION PROJECTS AND LARGE CAPACITY E NERGY 2
RESOURCE PROJECTS APPROVED UNDER THIS SECTION MAY NOT EXCE ED THE 3
COMBINED SUMMER PEAK CAPACITY PROFILE OF COAL AND OIL ENERGY 4
GENERATING STATIONS IN THE STATE AS OUTLINED UND ER TABLE 9 OF THE 5
COMMISSION’S TEN–YEAR PLAN (2024–2033) OF ELECTRIC COMPANIES IN 6
MARYLAND. 7
(C) ON AND BEFORE JUNE 30, 2030, A DISPATCHABLE ENERG Y 8
GENERATION PROJECT A PPROVED UNDER THIS S ECTION SHALL BE SUBJ ECT TO THE 9
EXPEDITED CERTIFICAT E OF PUBLIC CONVENIE NCE AND NECESSITY PR OCESS 10
UNDER § 7–207.4 OF THIS TITLE. 11
(E) EVERY 5 YEARS AFTER THE DATE THAT A NATURAL GAS DISPATCHABLE 12
ENERGY GENERATION PR OJECT OR LARGE CAPAC ITY ENERGY RESOURCE PROJECT 13
BECOMES OPERATIONAL UNDER A CERTIFICATE OF PUBLIC CONVENIENC E AND 14
NECESSITY ISSUED UND ER § 7–207.4 OF THIS TITLE, THE OWNER OR OPERATO R OF 15
THE NATURAL GAS DISPATCHABLE ENE RGY GENERATION OR LA RGE CAPACITY 16
ENERGY RESOURCE SHAL L SUBMIT TO THE COMMISSION A REPORT R EGARDING THE 17
FEASIBILITY OF CONVE RTING THE NATURAL GA S DISPATCHABLE ENERG Y 18
GENERATION OR LARGE CAPACITY ENERGY RESO URCE TO THE USE OF O NLY 19
HYDROGE N OR ZERO–EMISSIONS BIOFUEL . 20
(F) AN APPROVAL OR CONDIT IONAL APPROVAL OF A PROJECT UNDER THIS 21
SECTION DOES NOT GUA RANTEE THAT THE PROJ ECT WILL BE ISSUED A 22
CERTIFICATE OF PUBLI C CONVENIENCE AND NE CESSITY UNDER § 7–207 OR § 23
7–207.4 OF THIS TITLE. 24
7–1204. 25
THE COMMISSION SHALL INCL UDE SPECIFICATIONS I N A SOLICITATION 26
ISSUED UNDER § 7–1202 OF THIS SUBTITLE THA T REQUIRE EACH PROPO SAL FOR A 27
DISPATCHABLE ENERGY GENERATION PROJECT T O: 28
(1) FOR A NATURAL GAS EN ERGY GENERATING STAT ION, ENSURE 29
THAT THE PROJECT CAN BE CONVERTED TO USE ONLY HYDROGEN OR A 30
ZERO–EMISSIONS BIOFUEL AS THE ENERGY SOURCE WH EN THE CONVERSION IS 31
FEASIBLE, AS DETERMINED BY THE COMMISSION; 32
(2) INCLUDE A COST –BENEFIT ANALYSIS THA T SHALL INCLUDE , AT A 33
MINIMUM: 34
HOUSE BILL 1035 37
(I) A DETAILED INPUT–OUTPUT ANALYSIS OF T HE IMPACT OF 1
THE PROJECT ON INCOM E, EMPLOYMENT , WAGES, AND TAXES IN THE STATE; 2
(II) DETAILED INFORMATION CONCERNING ASSUMED 3
EMPLOYMENT IMPACTS I N THE STATE, INCLUDING THE EXPECT ED DURATION OF 4
EMPLOYMENT OPPORTUNI TIES, THE SALARY OF EACH POSIT ION, AND OTHER 5
SUPPORTING EVIDENCE OF EMPLOYMENT IMPACT S; 6
(III) AN ANALYSIS OF ANY I MPACT ON RESIDENTIAL , 7
COMMERCIAL , AND INDUSTRIAL RATEP AYERS OVER THE LIFE OF THE PROJECT ; 8
(IV) AN ANALYSIS OF ANY L ONG–TERM EFFECT ON ENERG Y AND 9
CAPACITY MARKETS AS A RESULT OF THE PROJ ECT; 10
(V) AN ANALYSIS OF ANY I MPACT THE PROJECT WO ULD HAVE 11
ON BUSINESSES IN THE STATE; 12
(VI) AN ANALYSIS OF THE A NTICIPATED ENVIRONME NTAL 13
BENEFITS, HEALTH BENEFITS , AND ENVIRONMENTAL IM PACTS OF THE PROJECT TO 14
THE CITIZENS OF THE STATE; AND 15
(VII) AN ANALYSIS OF OTHER BENEFITS RESULTING F ROM THE 16
PROJECT, INCLUDING INCREASED IN–STATE CONSTRUCTION , OPERATION AND 17
MAINTENANCE NEEDS , AND EQUIPMENT PURCHA SES; 18
(3) INCLUDE A DETAILED D ESCRIPTION OF THE TI MELINE F OR 19
CONSTRUCTION OF THE PROJECT, INCLUDING: 20
(I) IDENTIFYING THE ENTI TY THAT HAS OWNERSHI P OR SITE 21
CONTROL OF THE PROJE CT SITE; 22
(II) QUEUE POSITION FOR PJM INTERCONNECTION APPRO VAL; 23
AND 24
(III) THE ABILITY TO PROCU RE MATERIALS , INCLUDING 25
TURBINES AND OTHER PIPELINE MA TERIALS; 26
(4) INCLUDE A DESCRIPTIO N OF THE LOCATION OF THE PROJECT 27
SITE, INCLUDING: 28
(I) THE PROXIMITY OF THE SITE TO EXISTING TRA NSMISSION 29
LINES AND RIGHTS –OF–WAY; AND 30
38 HOUSE BILL 1035
(II) WHETHER THE PROJECT WOULD BE RETROFITTIN G A 1
CURRENT OR PREVIOUS GENERATI NG STATION SITE; AND 2
(5) IF APPLICABLE, INCLUDE A DESCRIPTIO N OF: 3
(I) THE TYPE AND AMOUNT OF CO–LOCATED ENERGY 4
GENERATION FROM TIER 1 RENEWABLE SOURCES , AS DEFINED IN § 7–701 OF THIS 5
TITLE, THAT WOULD BE USED W ITH THE PROJECT ; 6
(II) THE AMOUNT OF CO –LOCATED ENERGY STORA GE THAT 7
WOULD BE USED WITH T HE PROJECT; 8
(III) THE USE OF CARBON CA PTURE OR SEQUESTRATI ON 9
TECHNOLOGY TO MITIGA TE GREENHOUSE GAS EM ISSIONS FROM THE PRO JECT; AND 10
(IV) THE AMOUNT OF HYDROG EN OR ZERO –EMISSIONS 11
BIOFUELS THAT THE PR OJECT WILL MIX WITH NATURAL GAS FOR ENER GY 12
GENERATION . 13
7–1205. 14
(A) THE COMMISSION SHALL USE THE FOLLOWING CRITER IA TO EVALUATE 15
AND COMPARE PROPOSAL S FOR DISPATCHABLE E NERGY GENERATION PRO JECTS 16
SUBMITTED DURING A S OLICITATION PERIOD UNDER § 7–1202 OF THIS SUBTITLE: 17
(1) THE LOWEST COST IMPA CT ON RATEPAYERS ; 18
(2) THE EXTENT TO WHICH THE COST–BENEFIT ANALYSIS SUB MITTED 19
UNDER § 7–1204 OF THIS SUBTITLE DEM ONSTRATES POSITIVE N ET ECONOMIC , 20
ENVIRONMENTAL , AND HEALTH BENEFITS TO THE STATE; 21
(3) THE TIMELINE FOR CON STRUCTION OF THE PRO JECT, 22
INCLUDING: 23
(I) IDENTIFYING THE ENTI TY THAT HAS OWNERSHI P OR SITE 24
CONTROL OF THE PROJE CT SITE; 25
(II) POSITION IN THE PJM INTERCONNECTION QUEUE ; AND 26
(III) ABILITY TO PROCURE M ATERIALS, INCLUDING TURBINES 27
AND OTHER PIPELINE M ATERIALS; 28
(4) THE LOCATION OF THE PROJECT SITE , INCLUDING THE 29
PROXIMITY OF THE SIT E TO EXISTING TRANSM ISSION LINES AND RIG HTS–OF–WAY; 30 HOUSE BILL 1035 39
(5) WHETHER THE PROJECT WOULD BE RETROFITTIN G A CURRENT 1
OR PAST GENERATING S TATION SITE; AND 2
(6) IF APPLICABLE: 3
(I) THE TYPE AND AMOUNT OF CO–LOCATED ENERGY 4
GENERATION FROM TIER 1 RENEWABLE SOURCES , AS DEFINED IN § 7–701 OF THIS 5
TITLE, THAT WOULD BE USED W ITH THE PROJECT ; 6
(II) THE AMOUNT OF CO –LOCATED ENERGY STORA GE THAT 7
WOULD BE USED WITH T HE PROJECT; 8
(III) THE USE OF CARBON CA PTURE OR SEQUESTRATI ON 9
TECHNOLOGY TO MITIGA TE GREENHOUSE GAS EM ISSIONS FROM THE PRO JECT; AND 10
(IV) THE AMOUNT OF HYDROG EN OR ZERO –EMISSIONS 11
BIOFUELS THAT THE PR OJECT WILL MIX WITH NATURAL GAS FOR ENERGY 12
GENERATION . 13
(B) IN EVALUATING AND COM PARING A PROPOSAL FO R A DISPATCHABLE 14
ENERGY GENERATION PR OJECT UNDER SUBSECTI ON (A) OF THIS SECTION , THE 15
COMMISSION MAY CONTRA CT FOR THE SERVICES OF INDEPENDENT CONSU LTANTS 16
AND EXPERTS. 17
7–1206. RESERVED. 18
7–1207. RESERVED. 19
7–1209. 20
(A) (1) EXCEPT AS PROVIDED IN PARAGRAPH (2) OF THIS SUBSECTION , 21
THE COMMISSION MAY APPROV E UP TO 10 PROPOSALS TO BE ELIG IBLE TO 22
UNDERGO THE EXPEDITE D CERTIFICATE OF PUB LIC CONVENIENCE AND NECESSITY 23
PROCESS UNDER § 7–207.4 OF THIS TITLE. 24
(2) THE COMMISSION MAY APPROV E MORE THAN 10 PROPOSALS TO 25
BE ELIGIBLE TO UNDER GO THE EXPEDITED CER TIFICATE OF PUBLIC C ONVENIENCE 26
AND NECESSITY PROCES S UNDER § 7–207.4 OF THIS TITLE ONLY I F THE 27
COMMISSION DETERMINES THAT: 28
(I) THE COMMISSION HAS SUFFIC IENT RESOURCES TO 29
COMPLETE THAT NUMBER OF EXPEDITED REVIEWS OF APPLICATIONS FOR A 30 40 HOUSE BILL 1035
CERTIFICATE OF PUBLI C CONVENIENCE AND NE CESSITY UNDER § 7–207.4 OF THIS 1
TITLE; AND 2
(II) THE NUMBER OF EXPEDI TED REVIEWS OF APPLI CATIONS 3
FOR A CERTIFICATE OF PUBLIC C ONVENIENCE AND NECES SITY UNDER § 7–207.4 OF 4
THIS TITLE IS IN THE PUBLIC INTEREST . 5
(3) IF NOT MORE THAN 10 PROJECTS RESPOND TO A SOLICITATION 6
ISSUED UNDER § 7–1206 OF THIS SUBTITLE , THE COMMISSION SHALL APPR OVE, 7
SUBJECT TO § 7–1208(D)(2) OF THIS SUBTITLE, ALL PROJECTS THAT AP PLY FOR THE 8
SOLICITATION. 9
(B) (1) FOR THE PURPOSE OF TH IS SUBSECTION , A TRANSMISSION 10
ENERGY STORAGE DEVIC E SHALL BE CONSIDERE D A NON–EMISSIONS–EMITTING 11
PROJECT. 12
(2) SUBJECT TO PARAGRAPH (3) OF THIS S UBSECTION, THE 13
COMMISSION SHALL APPR OVE 4 NON–EMISSIONS–EMITTING PROJECTS TO EVERY 1 14
EMISSIONS–EMITTING PROJECT . 15
(3) THE COMMISSION MAY WAIVE THE REQUIREMENT UNDE R 16
PARAGRAPH (2) OF THIS SUBSECTION I F A SUFFICIENT NUMBE R OF APPLICATIONS 17
FOR PROJECTS TH AT MEET THE REQUIREM ENT ARE NOT RECEIVED . 18
(C) (1) IN DETERMINING WHICH PROPOSALS TO APPROVE , THE 19
COMMISSION SHALL PRIO RITIZE DISPATCHABLE ENERGY GENERATION PR OJECTS 20
OVER LARGE CAPACITY ENERGY RESOURCES . 21
(2) IN ADDITION TO THE PR IORITIZATION IN PARA GRAPH (1) OF THIS 22
SUBSECTION, IF THE COMMISSION RECEIVES MORE THAN 10 PROPOSALS OR 23
DETERMINES THAT MORE THAN 10 PROPOSALS MAY BE APP ROVED UNDER § 7–1208 24
OF THIS SUBTITLE, THE COMMISSION SHALL BASE THE APPROVALS ON : 25
(I) WHICH PROJECTS WILL PROVIDE THE HIG HEST CAPACITY 26
VALUE TO THE STATE; 27
(II) THE TIMELINESS OF A PROJECT TO BEGIN CONSTRUCTIO N; 28
(III) THE TIMELINESS OF A PROJECT TO BEGIN OPE RATION; AND 29
(IV) WHICH PROJECTS HAVE THE LOWEST EMISSIONS 30
INTENSITY. 31
HOUSE BILL 1035 41
(D) THE COMMISSION SHALL DETE RMINE WHEN THE PROCEEDINGS FOR A 1
CERTIFICATE OF PUBLI C CONVENIENCE AND NE CESSITY UNDER § 7–207.4 OF THIS 2
TITLE WILL BEGIN FOR A PROPOSAL APPROVED UNDER THIS PART . 3
(E) THE COMMISSION MAY CONTRA CT FOR THE SERVICES OF 4
INDEPENDENT CONSULTA NTS AND EXPERTS IN EVALUATING AND COMPA RING 5
WHETHER A PROPOSAL S HALL BE APPROVED TO BE ELIGIBLE TO UNDER GO AN 6
EXPEDITED CERTIFICAT E OF PUBLIC CONVENIE NCE AND NECESSITY PR OCESS 7
UNDER § 7–207.4 OF THIS TITLE. 8
(F) A PROPOSAL THAT IS NOT APPROVED TO BE ELIGI BLE TO UNDERGO AN 9
EXPEDITED CERTIFICATE OF PUBLIC CONVENIENC E AND NECESSITY PROC ESS 10
UNDER § 7–207.4 OF THIS TITLE MAY AP PLY FOR A CERTIFICAT E OF PUBLIC 11
CONVENIENCE AND NECE SSITY UNDER § 7–207 OF THIS TITLE. 12
7–1210. RESERVED. 13
7–1211. RESERVED. 14
PART II. PART III. NUCLEAR ENERGY PROCUREMENT . 15
7–1208. 7–1212. 16
(A) (1) AFTER THE EFFECTIVE D ATE OF COMMISSION REGULATION S 17
IMPLEMENTING THIS PA RT, A PERSON MAY SUBMIT AN APPLICATION TO TH E 18
COMMISSION FOR APPROV AL OF A PROPOSED NUC LEAR ENERGY GENERATI ON 19
PROJECT, INCLUDING AN APPLICA TION TO UPGRADE THE GENERATION 20
CAPABILITIES OF AN E XISTING NUCLEAR ENER GY GENERATING STATIO N. 21
(2) FOR AN APPLICATION SU BMITTED IN ACCORDANC E WITH 22
PARAGRAPH (1) OF THIS SUBSECTION , THE LONG–TERM PRICING SCHEDUL E SHALL 23
BE BASED ONLY ON ANY NEW GENERATION PROPOSED IN THE APPL ICATION, 24
INCLUDING NEW GENERA TION AT AN EXISTING NUCLEAR ENERGY GENER ATING 25
STATION. 26
(B) (1) ON RECEIPT OF AN APPL ICATION FOR APPROVAL OF A PROPOSED 27
NUCLEAR ENERGY GENER ATION PROJECT , THE COMMISSION SHALL : 28
(I) OPEN AN APPLICATION PERIOD DURING WHICH O THER 29
INTERESTED PERSONS M AY SUBMIT APPLICATIO NS FOR APPROVAL OF A PROPOSED 30
NUCLEAR ENERGY GENER ATION PROJECT ; AND 31
42 HOUSE BILL 1035
(II) PROVIDE NOTICE THAT THE COMMISSION IS ACCEPTI NG 1
APPLICATIONS FOR APP ROVAL OF PROPOSED NU CLEAR ENERGY GENERAT ION 2
PROJECTS. 3
(2) THE COMMISSION SHALL SET THE CLOSING DATE FOR THE 4
APPLICATION PERIOD T O BE NOT SOONER THAN 90 DAYS AFTER THE NOTIC E 5
PROVIDED UNDER PARAG RAPH (1) OF THIS SUBSECTION . 6
(C) THE COMMISSION SHALL PROV IDE AT LEAST TWO ADD ITIONAL 7
APPLICATION PERI ODS BEFORE JANUARY 1, 2031. 8
(D) THE COMMISSION MAY PROVID E ADDITIONAL APPLICA TION PERIODS 9
THAT MEET THE REQUIR EMENTS OF THIS SECTI ON. 10
7–1209. 7–1213. 11
(A) UNLESS EXTENDED BY MU TUAL CONSENT OF THE PARTIES SUBJECT TO 12
SUBSECTION (B) OF THIS SECTION , THE COMMISSION SHALL APPR OVE, 13
CONDITIONALLY APPROV E, OR DENY AN APPLICATI ON SUBMITTED UNDER § 7–1208 14
§ 7–1212 OF THIS SUBTITLE WIT HIN 1 YEAR AFTER THE CLOSE OF THE APPLICATION 15
PERIOD. 16
(B) THE COMMISSION MAY EXTEND THE TIME TO APPROVE , 17
CONDITIONALLY APPROVE, OR DENY AN APPLICATI ON UNDER SUBSECTION (A) OF 18
THIS SECTION FOR GOO D CAUSE. 19
7–1210. 7–1214. 20
AN APPLICATION SUBMIT TED FOR A NUCLEAR EN ERGY GENERATION 21
PROJECT UNDER § 7–1208 § 7–1212 OF THIS SUBTITLE SHA LL INCLUDE: 22
(1) A DETAILED DESCRIPTI ON AND FINANCIAL ANALYS IS OF THE 23
PROJECT; 24
(2) THE PROPOSED METHOD OF FINANCING THE PRO JECT, 25
INCLUDING DOCUMENTAT ION DEMONSTRATING TH AT THE APPLICANT HAS APPLIED 26
FOR ALL CURRENT ELIG IBLE STATE AND FEDERAL GRA NTS, REBATES, TAX CREDITS, 27
LOAN GUARANTEES , AND OTHER PROGRAMS AVAILA BLE TO OFFSET THE CO ST OF 28
THE PROJECT OR PROVI DE TAX ADVANTAGES ; 29
(3) A COMMITMENT THAT TH E APPLICANT WILL USE BEST EFFORTS 30
TO APPLY FOR ALL ELI GIBLE STATE AND FEDERAL GRA NTS, REBATES, TAX CREDITS, 31
LOAN GUARANTEES , OR OTHER SIMILAR BE NEFITS AS THOSE BENE FITS BECOME 32
AVAILABLE; 33 HOUSE BILL 1035 43
(4) A COST–BENEFIT ANALYSIS THA T SHALL INCLUDE , AT A MINIMUM: 1
(I) A DETAILED INPUT –OUTPUT ANALYSIS OF T HE IMPACT OF 2
THE PROJECT ON INCOM E, EMPLOYMENT , WAGES, AND TAXES IN THE STATE; 3
(II) DETAILED INFOR MATION CONCERNING AS SUMED 4
EMPLOYMENT IMPACTS I N THE STATE, INCLUDING THE EXPECT ED DURATION OF 5
EMPLOYMENT OPPORTUNI TIES, THE SALARY OF EACH P OSITION, AND OTHER 6
SUPPORTING EVIDENCE OF EMPLOYMENT IMPACT S; 7
(III) AN ANALYSIS OF ANY I MPACT ON RESIDENTIAL , 8
COMMERCIAL, AND INDUSTRIAL RATEP AYERS OVER THE LIFE OF THE PROJECT ; 9
(IV) AN ANALYSIS OF ANY L ONG–TERM EFFECT ON ENERG Y AND 10
CAPACITY MARKETS AS A RESULT OF THE PROJ ECT; 11
(V) AN ANALYSIS OF ANY I MPACT THE PROJECT WO ULD HAVE 12
ON BUSINESSES IN THE STATE; 13
(VI) AN ANALYSIS OF THE A NTICIPATED ENVIRONME NTAL 14
BENEFITS, HEALTH BENEFITS , AND ENVIRONMENTAL ECONOMIC IMPACTS OF THE 15
PROJECT TO THE CITIZ ENS OF THE STATE; AND 16
(VII) AN ANALYSIS OF OTHER BENEFITS RESULTING F ROM THE 17
PROJECT, INCLUDING INCREASED IN–STATE CONSTRUCTION , OPERATION AND 18
MAINTENANCE NEEDS , AND EQUIPMENT PURCHA SES; 19
(5) A PROPOSED LONG –TERM PRICING SCHEDUL E FOR THE PROJECT 20
THAT SHALL SPECIFY A PRICE FOR THE GENERA TION ATTRIBUTES , INCLUDING THE 21
ENERGY, CAPACITY, ANCILLARY SERVICES , AND ENVIRONMENTAL ATTRIBUTE S; 22
(6) A DECOMMISSIONING AN D WASTE STORAGE PLAN FOR THE 23
PROJECT, INCLUDING PROVISIONS FOR DECOMMISSIONING OR WASTE STORAGE AS 24
REQUIRED BY THE U.S. NUCLEAR REGULATORY COMMISSION; 25
(7) A COMMITMENT TO ABID E BY THE REQUIREMENT S SET FORTH IN 26
§ 7–1213 § 7–1202 OF THIS SUBTITLE; 27
(8) A DESCRIPTION OF THE APPLICANT’S PLAN FOR ENGAGING SMALL 28
BUSINESSES, AS DEFINED IN § 14–501 OF THE STATE FINANCE AND PROCUREMENT 29
ARTICLE; 30
44 HOUSE BILL 1035
(9) IF APPLICABLE, THE STATEMENT SPECIF IED IN § 7–1211(C)(2) § 1
7–1215(B)(2) OF THIS SUBTITLE; AND 2
(10) ANY OTHER INFORMATIO N THE COMMISSION REQUIRES . 3
7–1211. 7–1215. 4
(A) THE COMMISSION SHALL USE THE FOLLOWING CRITER IA TO EVALUATE 5
AND COMPARE APPLICAT IONS FOR NUCLEAR ENERGY GENERATION PR OJECTS 6
SUBMITTED DURING AN APPLICATION PERIOD U NDER § 7–1208 § 7–1212 OF THIS 7
SUBTITLE: 8
(1) THE LOWEST COST IMPA CT ON RATEPAYERS OF THE PRICE SET 9
UNDER A PROPOSED LONG–TERM PRICING SCHEDULE ; 10
(2) POTENTIAL REDUCTIONS IN TRANSMISSI ON CONGESTION PRICES 11
WITHIN THE STATE; 12
(3) POTENTIAL CHANGES IN CAPACITY PRICES WITH IN THE STATE; 13
(4) POTENTIAL REDUCTIONS IN LOCATIONAL MARGIN AL PRICING; 14
(5) POTENTIAL LONG –TERM CHANGES IN CAPA CITY PRICES WITHIN 15
THE STATE FROM THE PROJEC T AS IT COMPARES TO CONVENTI ONAL ENERGY 16
SOURCES; 17
(6) THE EXTENT TO WHICH THE COST–BENEFIT ANALYSIS SUB MITTED 18
UNDER § 7–1210 § 7–1214 OF THIS SUBTITLE DEM ONSTRATES POSITIVE N ET 19
ECONOMIC, ENVIRONMENTAL , AND HEALTH BENEFITS TO THE STATE; 20
(7) THE EXTENT TO WHICH AN APPLICANT ’S PLAN FOR ENGAGING 21
SMALL BUSINESSES MEE TS THE GOALS SPECIFI ED IN TITLE 14, SUBTITLE 5 OF THE 22
STATE FINANCE AND PROCUREMENT ARTICLE; 23
(8) THE EXTENT TO WHICH AN APPLICANT’S PLAN PROVIDES FOR THE 24
USE OF SKILLED LABOR , PARTICULARLY WITH RE GARD TO THE CONSTRUCTIO N AND 25
MANUFACTURING COMPON ENTS OF THE PROJECT , THROUGH OUTREACH , HIRING, 26
OR REFERRAL SYSTEMS THAT ARE AFFILIATED WITH REGISTERED APPR ENTICESHIP 27
PROGRAMS UNDER TITLE 11, SUBTITLE 4 OF THE LABOR AND EMPLOYMENT 28
ARTICLE; 29
(9) THE EXTENT T O WHICH AN APPLICANT ’S PLAN PROVIDES FOR THE 30
USE OF AN AGREEMENT DESIGNED TO ENSURE T HE USE OF SKILLED LA BOR AND TO 31
PROMOTE THE PROMPT , EFFICIENT, AND SAFE COMPLETION OF THE PROJECT , 32 HOUSE BILL 1035 45
PARTICULARLY WITH RE GARD TO THE CONSTRUC TION, MANUFACTURING , AND 1
MAINTENA NCE OF THE PROJECT ; 2
(10) THE EXTENT TO WHICH AN APPLICANT ’S PLAN PROVIDES FOR 3
COMPENSATION TO ITS EMPLOYEES AND SUBCON TRACTORS CONSISTENT WITH 4
WAGES OUTLINED UNDER TITLE 17, SUBTITLE 2 OF THE STATE FINANCE AND 5
PROCUREMENT ARTICLE; 6
(11) SITING AND PROJECT FEASIBILITY ; 7
(12) THE EXTENT TO WHICH THE PROJECT WOULD RE QUIRE 8
TRANSMISSION OR DIST RIBUTION INFRASTRUCT URE IMPROVEMENTS IN THE 9
STATE; AND 10
(13) ANY OTHER CRITERIA T HAT THE COMMISSION DETERMINES ARE 11
APPROPRIATE . 12
(B) IN EVALUATING AND COM PARING AN APPLICATION FO R A NUCLEAR 13
ENERGY GENERATION PR OJECT UNDER SUBSECTI ON (A) OF THIS SECTION , THE 14
COMMISSION MAY CONTRA CT FOR THE SERVICES OF INDEPENDENT CONSU LTANTS 15
AND EXPERTS. 16
(C) (1) IN THIS PARAGRAPH , “MINORITY” MEANS AN INDIVIDUAL WHO IS 17
A MEMBER OF ANY OF THE GROUPS LISTED IN § 14–301(K)(1)(I) OF THE STATE 18
FINANCE AND PROCUREMENT ARTICLE. 19
(2) IF AN APPLICANT IS SE EKING INVESTORS IN A PROPOSED 20
NUCLEAR ENERGY GENER ATION PROJECT , THE APPLICANT SHALL TAKE THE 21
FOLLOWING STEPS BEFO RE THE COMMISSION MAY APPROVE THE PROP OSED 22
PROJECT: 23
(I) MAKE SERIOUS , GOOD–FAITH EFFORTS TO SOL ICIT AND 24
INTERVIEW A REASONAB LE NUMBER OF MINORIT Y INVESTORS; 25
(II) AS PART OF THE APPLI CATION, SUBMIT A STATEMENT T O 26
THE COMMISSION THAT LISTS THE NAMES AND ADDRES SES OF ALL MINORITY 27
INVESTORS INTERVIEWE D AND WHETHER OR NOT ANY OF THOSE INVESTO RS HAVE 28
PURCHASED AN EQUITY SHARE IN THE ENTITY SUBMITTING THE APPLI CATION; 29
(III) SIGN A MEMORANDUM OF UNDERSTANDING WITH T HE 30
COMMISSION THAT REQUI RES THE APPLICANT TO AGAIN MAKE SERIOUS, 31
GOOD–FAITH EFFORTS TO SOL ICIT AND INTERVIEW A REASONABLE NUMBER OF 32
MINORITY INVESTORS I N ANY FUTURE ATTEMPT S TO RAISE VENTURE C APITAL OR 33
ATTRACT NEW INVESTOR S TO THE PROJECT ; 34 46 HOUSE BILL 1035
(IV) SIGN A MEMORANDUM OF UNDERSTANDING WITH T HE 1
COMMISSION THAT R EQUIRES THE APPLICAN T TO USE BEST EFFORT S AND 2
EFFECTIVE OUTREACH T O OBTAIN , AS A GOAL , CONTRACTORS AND 3
SUBCONTRACTORS FOR T HE PROJECT THAT ARE MINORITY BUSINESS 4
ENTERPRISES , TO THE EXTENT PRACTI CABLE, AS SUPPORTED BY A DI SPARITY 5
STUDY; AND 6
(V) SIGN A M EMORANDUM OF UNDERST ANDING WITH THE 7
COMMISSION AND SKILLE D LABOR ORGANIZATION S THAT REQUIRES THE 8
APPLICANT TO FOLLOW THE PORTIONS OF THE APPLICANT’S PLAN THAT RELATE T O 9
THE CRITERIA SET FOR TH IN SUBSECTION (A)(8) AND (9) OF THIS SECTION. 10
(3) THE GOVERNOR’S OFFICE OF SMALL, MINORITY, AND WOMEN 11
BUSINESS AFFAIRS, IN CONSULTATION WITH THE OFFICE OF THE ATTORNEY 12
GENERAL, SHALL PROVIDE ASSIST ANCE TO ALL POTENTIA L APPLICANTS AND 13
POTENTIAL MINORITY I NVESTORS TO SATISFY THE REQUIREMENTS UND ER 14
PARAGRAPH (2)(I) AND (III) OF THIS SUBSECTION . 15
7–1212. 7–1216. 16
(A) THE COMMISSION MAY NOT AP PROVE AN APPLICATION FOR A NUCLEAR 17
ENERGY GENERATION PR OJECT SUBMITTED UNDE R § 7–1208 § 7–1212 OF THIS 18
SUBTITLE UNLESS : 19
(1) THE PROJECT IS CONNE CTED TO THE ELECTRIC DISTRIBUTION 20
SYSTEM SERVING THE STATE; 21
(2) OVER THE DURATION OF THE PROPOSED LONG –TERM PRICING 22
SCHEDULE, THE PROJECTED NET RA TE IMPACT FOR AN AVE RAGE RESIDENTIAL 23
CUSTOMER, BASED ON ANNUAL CONS UMPTION OF 12,000 KILOWATT–HOURS AND 24
COMBINED WITH THE PR OJECTED NET RATE IMPACT OF OTHER NUCL EAR ENERGY 25
GENERATION PROJECTS , DOES NOT EXCEED AN A MOUNT DETERMINED BY THE 26
COMMISSION; 27
(3) OVER THE DURATION OF THE PROPOSED LONG –TERM PRICING 28
SCHEDULE, THE PROJECTED NET RA TE IMPACT FOR ALL NO NRESIDENTIAL 29
CUSTOMERS , CONSIDERED AS A BLENDED AVERAGE AND COMBINED WITH THE 30
PROJECTED NET RATE I MPACT OF OTHER NUCLE AR ENERGY GENERATION 31
PROJECTS, DOES NOT EXCEED A PE RCENTAGE DETERMINED BY THE COMMISSION 32
OF NONRESIDENTIAL CU STOMERS’ TOTAL ANNUAL ELECTRI C BILLS; AND 33
(4) THE PRICE SPECIFIED IN THE PROPOSED LONG –TERM PRICING 34
SCHEDULE DOES NOT EX CEED AN AMOUNT DETER MINED BY THE COMMISSION. 35 HOUSE BILL 1035 47
(B) WHEN CALCULATING THE PROJECTED NET AVERAG E RATE IMPACTS 1
FOR NUCLEAR ENERGY G ENERATION PROJECTS U NDER THIS SECTION , THE 2
COMMISSION SHALL APPL Y THE SAME NET LONG –TERM COST PER 3
MEGAWATT –HOUR TO RESIDENTIAL AND NONRESIDENTIAL C USTOMERS. 4
(C) THE COMMISSION SHALL KEEP CONFIDENTIAL ANY AMO UNTS 5
DETERMINED UNDER SUB SECTION (A) OF THIS SECTION. 6
7–1213. 7
(A) AN APPLICATION FOR A NUCLEAR ENERGY GENER ATION PROJECT 8
SUBMITTED UNDER § 7–1208 OF THIS SUBTITLE IS SUBJECT TO A COMMUNI TY 9
BENEFIT AGREEMENT . 10
(B) A COMMUNITY BENEFIT AG REEMENT SHALL : 11
(1) BE APPLICABLE TO THE DEVELOPMENT OF A NUC LEAR ENERGY 12
GENERATION PROJECT ; 13
(2) PROMOTE INCREASED OP PORTUNITIES FOR LOCAL BUSINESSES 14
AND SMALL, MINORITY, WOMEN–OWNED, AND VETERAN –OWNED BUSINESSES IN THE 15
RENEWABLE ENERGY IND USTRY; 16
(3) ENSURE THE TIMELY , SAFE, AND EFFICIENT COMPLE TION OF THE 17
PROJECT BY: 18
(I) FACILITATING A STEAD Y SUPPLY OF HIGHLY S KILLED 19
CRAFT WORKERS WHO SHALL BE PAID NOT LESS THAN T HE PREVAILING WAGE R ATE 20
DETERMINED BY THE COMMISSIONER OF LABOR AND INDUSTRY UNDER TITLE 17, 21
SUBTITLE 2 OF THE STATE FINANCE AND PROCUREMENT ARTICLE; AND 22
(II) GUARANTEEING THAT TH E CONSTRUCTION WORK 23
PERFORMED IN CONNECTION WITH THE PROJECT WILL BE SUBJ ECT TO AN 24
AGREEMENT THAT : 25
1. IS WITH ONE OR MORE LABOR ORGANIZATIONS ; AND 26
2. ESTABLISHES, IN ACCORDANCE WITH T HIS SECTION, 27
THE TERMS AND CONDIT IONS OF EMPLOYMENT A T THE CONSTRUCTION S ITE OF THE 28
PROJECT OR A PORTION OF THE PRO JECT; 29
(4) PROMOTE SAFE COMPLET ION OF THE PROJECT B Y ENSURING 30
THAT AT LEAST 80% OF THE CRAFT WORKERS ON THE PROJECT HAVE COMPLETED 31 48 HOUSE BILL 1035
AN OCCUPATIONAL SAFETY AND HEALTH ADMINISTRATION 10–HOUR OR 30–HOUR 1
COURSE; 2
(5) PROMOTE CAREER TRAIN ING OPPORTUNITIES IN THE 3
MANUFACTURING , MAINTENANCE , AND CONSTRUCTION IND USTRIES FOR LOCAL 4
RESIDENTS, VETERANS, WOMEN, AND MINORITIES ; 5
(6) PROVIDE FOR BEST EFF ORTS AND EFFECTIVE O UTREACH TO 6
OBTAIN, AS A GOAL, THE USE OF A WORKFOR CE INCLUDING MINORIT IES, TO THE 7
EXTENT PRACTICABLE ; 8
(7) REFLECT A 21ST–CENTURY LABOR –MANAGEMENT APPROACH BY 9
DEVELOPERS AND SUPPL IERS BASED ON COOPER ATION, HARMONY, AND 10
PARTNERSHIP THAT PRO ACTIVELY SEEKS TO EN SURE THAT WORKERS CA N FREELY 11
CHOOSE TO BOTH ORGAN IZE AND COLLECTIVELY BARGAIN; 12
(8) PROVIDE PLANS TO USE DOMESTIC IRON , STEEL, AND 13
MANUFACTURED GOODS T O THE GREATEST EXTEN T PRACTICABLE BY DIS CLOSING 14
CONTRACTED SUPPLIERS ; 15
(9) USE LOCALLY AND DOME STICALLY MANUFACTURE D 16
CONSTRUCTION MATERIA LS AND COMPONENTS ; 17
(10) MAXIMIZE THE USE OF SKILLED LOCAL LABOR , PARTICULARLY 18
WITH REGARD TO THE C ONSTRUCTION AND MANU FACTURING COMPONENTS OF THE 19
PROJECT, USING METHODS INCLUD ING OUTREACH , HIRING, OR REFERRAL 20
METHODS THAT ARE AFF ILIATED WITH REGISTE RED APPRENTICESHIP P ROGRAMS 21
UNDER TITLE 11, SUBTITLE 4 OF THE LABOR AND EMPLOYMENT ARTICLE; 22
(11) GUARANTEE AGAINST ST RIKES, LOCKOUTS, AND SIMILAR 23
DISRUPTIONS; 24
(12) ENSURE THAT ALL WORK ON THE PROJECT FULLY CONFORMS TO 25
ALL RELEVANT STATE AND FEDERAL LAW S, RULES, AND REGULATIONS ; 26
(13) CREATE MUTUALLY BIND ING PROCEDURES FOR R ESOLVING 27
LABOR DISPUTES ARISI NG DURING THE TERM O F THE PROJECT; 28
(14) SET FORTH OTHER MECH ANISMS FOR LABOR –MANAGEMENT 29
COOPERATION ON MATTE RS OF MUTUAL INTERES T AND CONCERN , INCLUDING 30
PRODUCTIVITY , QUALITY OF WORK, SAFETY, AND HEALTH; AND 31
HOUSE BILL 1035 49
(15) BIND ALL CONTRACTORS AND SUBCONTRACTORS T O THE TERMS 1
OF THE AGREEMENT THR OUGH THE INCLUSION O F APPROPRIATE PROVIS IONS IN 2
ALL RELEVANT SOLICIT ATION AND CONTRACT D OCUMENTS. 3
7–1214. 7–1217. 4
(A) AN ORDER THE COMMISSION ISSUES APPROVING A N APPLICATION FOR 5
A NUCLEAR ENERGY GEN ERATION PROJECT SUBM ITTED UNDER § 7–1208 § 7–1212 6
OF THIS SUBTITLE SHA LL: 7
(1) SPECIFY THE LONG –TERM PRICING SCHEDUL E; 8
(2) SPECIFY THE DURATION OF THE LONG–TERM PRICING SCHEDUL E, 9
NOT TO EXCEED 30 YEARS; 10
(3) PROVIDE THAT : 11
(I) A PAYMENT MAY NOT BE MADE UNDER A LONG –TERM 12
PRICING SCHEDULE UNT IL ELECTRICITY SUPPL Y IS GENERATED BY TH E PROJECT; 13
AND 14
(II) RATEPAYERS AND THE STATE SHALL BE HELD H ARMLESS 15
FOR ANY COST OVERRUN S ASSOCIATED WITH TH E PROJECT; AND 16
(4) REQUIRE THAT ANY DEB T INSTRUMENT ISSUED IN CONNECTION 17
WITH THE PROJECT INC LUDE LANGUAGE SPECIF YING THAT THE DEBT I NSTRUMENT 18
DOES NOT ESTABLISH A DEBT, AN OBLIGATION , OR A LIABILITY OF TH E STATE. 19
(B) AN ORDER APPROVING A NUCLEAR ENERG Y GENERATION PROJECT 20
VESTS THE OWNER OF T HE PROJECT WITH THE RIGHT TO RECEIVE PAY MENTS 21
ACCORDING TO THE TER MS IN THE ORDER . 22
(C) ON OR BEFORE MARCH 1 EACH YEAR, THE COMMISSION SHALL REPO RT 23
TO THE GOVERNOR AND , IN ACCORDANCE WITH § 2–1257 OF THE STATE 24
GOVERNMENT ARTICLE, THE SENATE COMMITTEE ON EDUCATION, ENERGY, AND 25
THE ENVIRONMENT AND THE HOUSE ECONOMIC MATTERS COMMITTEE ON : 26
(1) APPLICANT COMPLIANCE WITH THE MINORITY BU SINESS 27
ENTERPRISE PARTICIPA TION GOALS UNDER § 7–1211(C) § 7–1215(B) OF THIS 28
SUBTITLE; AND 29
(2) WITH RESPECT TO THE COMMUNITY BENEFIT AG REEMENT UNDER 30
§ 7–1213 § 7–1202 OF THIS SUBTITLE: 31
50 HOUSE BILL 1035
(I) THE AVAILABILITY AND USE OF OPPORTUNITIES FOR LOCAL 1
BUSINESSES AND SMALL , MINORITY, WOMEN–OWNED, AND VETERAN –OWNED 2
BUSINESSES; 3
(II) THE SUCCESS OF EFFORTS TO PRO MOTE CAREER TRAINING 4
OPPORTUNITIES IN THE MANUFACTURING , MAINTENANCE , AND CONSTRUCTION 5
INDUSTRIES FOR LOCAL RESIDENTS, VETERANS, WOMEN, AND MINORITIES ; AND 6
(III) COMPLIANCE WITH THE MINORITY WORKFORCE G OAL 7
UNDER § 7–1213(B) § 7–1202 OF THIS SUBTITLE. 8
7–1215. 7–1218. 9
(A) (1) SUBJECT TO SUBSECTION (B) OF THIS SECTION , IF IF THE 10
COMMISSION APPROVES PROPOSALS THAT DEMON STRATE AN APPLICATION THAT 11
DEMONSTRATES , BASED ON THE CRITERI A SPECIFIED IN § 7–1210 § 7–1214 OF THIS 12
SUBTITLE, POSITIVE NET ECONOMI C, IMPACTS AND ENVIRONMENTAL , AND HEALTH 13
BENEFITS TO THE STATE, THE COMMISSION SHALL APPROVE ORDERS TO 14
FACILITATE THE FINAN CING OF NUCLEAR ENER GY GENERATION PROJECTS ISSUE 15
AN ORDER IN COMPLIAN CE WITH § 7–1217 OF THIS SUBTITLE. 16
(2) WHEN CALCULATING THE NET BENEFITS TO THE STATE UNDER 17
PARAGRAPH (1) OF THIS SUBSECTION , THE COMMISSION MAY CONTRA CT FOR THE 18
SERVICES OF INDEPEND ENT CONSULTANTS AND EXPERTS. 19
(B) THE COMMISSION MAY NOT APPROVE ISSUE AN ORDER TO FACILITA TE 20
THE FINANCING OF A NUCLEAR ENERGY GENER ATION PROJECT UNLESS THE 21
PROJECT IS SUBJECT T O A COMMUNITY BENEFI T AGREEMENT UNDER § 7–1213 § 22
7–1202 OF THIS SUBTITLE. 23
7–1216. 7–1219. 24
(A) THE FINDINGS AND EVID ENCE RELIED ON BY TH E GENERAL ASSEMBLY 25
FOR THE CONTINUATION OF THE MINORITY BUSINESS ENTERPRISE PROGRAM 26
UNDER TITLE 14, SUBTITLE 3 OF THE STATE FINANCE AND PROCUREMENT 27
ARTICLE ARE INCORPORA TED IN THIS SECTION . 28
(B) TO THE EXTENT PRACTIC ABLE AND AUTHORIZED BY THE UNITED 29
STATES CONSTITUTION, AN APPLICANT APPROVE D FOR A NUCLEAR ENERGY 30
GENERATION PROJECT U NDER § 7–1209 § 7–1213 OF THIS SUBTITLE SHA LL COMPLY 31
WITH THE STATE’S MINORITY BUSINESS ENTERPRISE PROGRAM. 32
(C) (1) WITHIN 6 MONTHS AFTER THE ISS UANCE OF AN ORDER TH AT 33
APPROVES A NUCLEAR E NERGY GENERATION PRO JECT AND INCLUDES A 34 HOUSE BILL 1035 51
LONG–TERM PRICING COMPONE NT, THE GOVERNOR’S OFFICE OF SMALL, 1
MINORITY, AND WOMEN BUSINESS AFFAIRS, IN CONSULTATION WITH THE OFFICE 2
OF THE ATTORNEY GENERAL AND THE APPRO VED APPLICANT , SHALL ESTABLISH A 3
CLEAR PLAN FOR SETTI NG REASONABLE AND AP PROPRIATE MI NORITY BUSINESS 4
ENTERPRISE PARTICIPA TION GOALS AND PROCE DURES FOR EACH PHASE OF THE 5
NUCLEAR ENERGY GENER ATION PROJECT . 6
(2) TO THE EXTENT PRACTIC ABLE, THE GOALS AND PROCED URES SET 7
IN ACCORDANCE WITH P ARAGRAPH (1) OF THIS SUBSECTION S HALL BE BASED ON 8
THE REQUIREMENTS OF TITLE 14, SUBTITLE 3 OF THE STATE FINANCE AND 9
PROCUREMENT ARTICLE AND THE REGUL ATIONS IMPLEMENTING THAT SUBTITLE . 10
(3) EVERY 6 MONTHS FOLLOWING THE ISSUANCE OF AN ORDER THAT 11
APPROVES A NUCLEAR E NERGY GENERATION PRO JECT AND INCLUDES A 12
LONG–TERM PRICING COMPONE NT, THE APPROVED APPLICA NT SHALL SUBMIT A 13
REPORT ON THE PROGRE SS MADE TO ESTABLISH AND IMPLEMENT MINORI TY 14
BUSINESS ENTERPRISE GOALS AND PROCEDURES TO THE COMMISSION. 15
7–1217. 7–1220. 16
(A) IN THIS SECTION, “ZERO–EMISSION CREDIT ” MEANS THE DIFFERENCE 17
BETWEEN THE PRICE TH AT A NUCLEAR ENERGY GENERATING STATION W ITH A 18
LONG–TERM PRICING SCHEDUL E APPROVED IN AN ORD ER ISSUED UNDER § 7–1217 19
OF THIS SUBTITLE MAY RECEIVE ON THE WHOLE SALE MARKET AND THE COST OF 20
CONSTRUCTING THE NUC LEAR ENERGY GEN ERATING STATION . 21
(B) THE COMMISSION SHALL ADOP T REGULATIONS THAT : 22
(1) ESTABLISH THE NUCLEA R ENERGY LONG –TERM PRICING 23
PURCHASE OBLIGATION SUFFICIENTLY IN ADVA NCE TO ALLOW AN ELEC TRIC 24
COMPANY TO REFLECT N UCLEAR ENERGY LONG –TERM PRICING COSTS A S A 25
NONBYPASSABLE SURCHARGE PAID BY ALL DISTRIBU TION CUSTOMERS OF TH E 26
ELECTRIC COMPANY THAT IS ADDED TO THE ELECTRIC COMPANY ’S BASE 27
DISTRIBUTION RATE ON CUSTOMER BILLS ; 28
(2) ESTABLISH A NONBYPAS SABLE SURCHARGE THAT ALLOWS AN 29
ELECTRIC COMPANY TO RECOVER ALL COSTS ASSOCIATED WITH THE PURCHASE OF 30
NUCLEAR ENERGY FROM ALL DISTRIBUTION CUS TOMERS OF THE ELECTR IC 31
COMPANY; 32
(3) ESTABLISH AN ESCROW ACCOUNT THAT IS UNDE R COMMISSION 33
SUPERVISION; AND 34
52 HOUSE BILL 1035
(4) DEFINE RULES THAT FA CILITATE AND ENSURE THE SECURE AND 1
TRANSPARENT TRANSFER OF REVENUES AND LONG–TERM PRICING PAYMENT S 2
AMONG PARTIES ; 3
(3) DEFINE THE TERMS AND PROCEDURES OF THE NU CLEAR ENERGY 4
LONG–TERM PRICING SCHEDUL E OBLIGATIONS, INCLUDING: 5
(I) ESTABLISHING A FORMU LA AND PROCESS TO AD JUST THE 6
VALUE OF THE LONG –TERM PRICING SCHEDULE EVERY 2 YEARS BASED ON 7
PROJECTED WHOLESALE MARKET PRICES ADJUST ED BY THE LOCATIONAL VALUE 8
AND EARNING POTENTIA L IN THE PJM REGION OF THE NUCLEA R ENERGY 9
GENERATING STATION ; AND 10
(II) ESTABLISHING A PER M EGAWATT HOUR CAP ON ANY 11
LONG–TERM PRICING SCHEDUL E SPECIFIED IN AN OR DER ISSUED UNDER § 7–1217 12
OF THIS SUBTITLE; 13
(4) REQUIRE THE COMMISSION TO ESTABLI SH AN ESCROW ACCOUNT ; 14
AND 15
(5) TO MEET THE TOTAL ST ATEWIDE LONG –TERM PRICING PURCHAS E 16
OBLIGATION FOR ALL A PPLICATIONS APPROVE D IN AN ORDER ISSUED UNDER § 17
7–1217 OF THIS SUBTITLE , REQUIRE THE COMMISSION TO ANNUALL Y ESTABLISH 18
EACH ELECTRIC COMPAN Y’S ZERO–EMISSION CREDIT PURC HASE OBLIGATION 19
BASED ON THE MOST RE CENT FINAL ELECTRICI TY SALES DATA AS REP ORTED BY 20
PJM INTERCONNECTION AN D MEASURED AT THE CU STOMER’S METER IN 21
PROPORTION TO THE EL ECTRIC COMPANY ’S SHARE OF STATEWIDE LOAD. 22
(B) (C) (1) EACH ELECTRIC COMPANY SHALL PROCURE FROM T HE 23
ESCROW ACCOUNT ESTAB LISHED BY REGULATION UNDER THIS SECTION A VOLUME 24
QUANTITY OF NUCLEAR ENERGY ZERO–EMISSION CREDITS EQUAL TO THE ELECTRI C 25
COMPANY’S RESPECTIVE PERCENT AGE OF RETAIL ELECTR IC SALES EACH YEAR . 26
(2) (I) SUBJECT TO ANY ESCROW ACCOUNT RESERVE 27
REQUIREMENT THE COMMISSION ESTABLISHE S, IF THERE IS ARE INSUFFICIENT 28
NUCLEAR ENERGY ZERO–EMISSION CREDITS AVAILABLE TO SATISFY THE ELECTRIC 29
COMPANIES’ NUCLEAR ENERGY OBLIGATION ZERO–EMISSION CREDIT PURC HASE 30
OBLIGATIONS, THE OVERPAYMENT SHAL L BE DISTRIBUTED TO ELECTRIC 31
COMPANIES TO BE REFU NDED OR CREDITED TO EACH DISTRIBUTION CU STOMER 32
BASED ON THE CUS TOMER’S CONSUMPTION OF ELE CTRICITY SUPPLY THAT IS 33
SUBJECT TO THE RENEW ABLE ENERGY PORTFOLI O STANDARD. 34
(II) SUBJECT TO ANY ESCROW ACCOUNT RESERVE 35
REQUIREMENT THE COMMISSION ESTABLISHE S, THE CALCULATION OF A N 36 HOUSE BILL 1035 53
ELECTRIC COMPANY ’S NUCLEAR ENERGY PUR CHASE OBLIGATION SHALL BE BA SED 1
ON FINAL ELECTRICITY SALES DATA AS REPORT ED BY PJM INTERCONNECTION AND 2
MEASURED AT THE CUST OMER METER . 3
(3) FOR EACH LONG –TERM PRICING SCHEDUL E FOR WHICH A 4
NUCLEAR ENERGY GENER ATION PROJECT RECEIV ES PAYMENT , THE PROJECT 5
SHALL: 6
(I) SELL ALL ENERGY , CAPACITY, AND ANCILLARY SERVIC ES 7
ASSOCIATED WITH THE CREATION OF THE LONG –TERM PRICING INTO TH E MARKETS 8
OPERATED BY PJM INTERCONNECTION ; AND 9
(II) DISTRIBUTE THE PROCE EDS RECEIVED FROM TH E SALES 10
UNDER ITEM (I) OF THIS PARAGRAPH TO ELECTRIC COMPANIES T O BE REFUNDED 11
OR CREDITED TO EACH DISTRIBUTION CUSTOME R BASED ON THE CUSTO MER’S 12
CONSUMPTION OF ELECT RICITY SUPPLY THAT I S SUBJECT TO THE REN EWABLE 13
ENERGY PORTFOLIO STA NDARD. 14
(C) (D) A DEBT, AN OBLIGATION , OR A LIABILITY OF A NUCLEAR E NERGY 15
GENERATION PROJECT O R OF AN OWNER OR OPE RATOR OF A NUCLEAR E NERGY 16
GENERATION PROJECT M AY NOT BE CONSIDERED A DEBT, AN OBLIGATION , OR A 17
LIABILITY OF THE STATE. 18
7–1218. 7–1221. 19
ON OR BEFORE JULY 1, 2027, THE COMMISSION SHALL ADOP T REGULATIONS 20
TO CARRY OUT THIS PART . 21
7–1222. RESERVED. 22
7–1223. RESERVED. 23
PART IV. TRANSMISSION ENERGY STORAGE DEVICES. 24
7–1224. 25
(A) THE COMMISSION SHALL , BY REGULATION OR ORD ER, ESTABLISH A 26
COMPETITIVE PROCESS FOR THE PROCUREMENT OF PROJECTS FOR THE 27
CONSTRUCTION AND DEPLOYMENT OF FRONT –OF–THE–METER TRANSMISSION 28
ENERGY STORAGE DEVIC ES IN THE STATE. 29
(B) (1) (I) ON OR BEFORE JANUARY 1, 2026, THE COMMISSION SHALL 30
ISSUE A PROCUREMENT SOLICITATION FOR APP LICATIONS FOR PROJEC TS FOR THE 31 54 HOUSE BILL 1035
CONSTRUCTION AND DEP LOYMENT OF FRONT–OF–THE–METER TRANSMISSION 1
ENERGY STORAGE DEVIC ES. 2
(II) THE PROCUREMENT SOLIC ITATION SHALL BE FOR A 3
MAXIMUM OF 800 MEGAWATTS OF CUMULAT IVE ENERGY STORAGE C APACITY, AS 4
MEASURED IN EFFECTIV E NAMEPLATE CAPACITY . 5
(2) ON OR BEFORE OCTOBER 1, 2026, THE COMMISSION SHALL ISSU E 6
A DECISION ON WHETHE R TO APPROVE ONE OR MORE PROPOSALS IN AC CORDANCE 7
WITH § 7–1226(C) OF THIS SUBTITLE. 8
(3) (I) EXCEPT AS PROVIDED IN SUBPARAGRAPH (II) OF THIS 9
PARAGRAPH , THE TRANSMISSION ENE RGY STORAGE DEVICES PROCURED IN 10
ACCORDANCE WITH THIS SUB SECTION SHALL BE OPE RATIONAL WITHIN 24 MONTHS 11
AFTER A PROJECT IS S ELECTED BY THE COMMISSION. 12
(II) THE COMMISSION MAY EXTEND THE OPERATING DEADLI NE 13
UNDER SUBPARAGRAPH (I) OF THIS PARAGRAPH FO R GOOD CAUSE SHOWN . 14
(C) (1) ON OR BEFORE JANUARY 1, 2027, THE COMMISSION SHALL ISSU E 15
A SECOND PROCUREMENT SOLICITATION FOR THE PROCUREMENT OF PROJE CTS 16
FOR THE CONSTRUCTION AND DEPLOYMENT OF FR ONT–OF–THE–METER 17
TRANSMISSION ENERGY STORAGE DEVICES . 18
(2) THE PROCUREMENT SOLIC ITATION SHALL BE FOR A MAXIMUM OF 19
800 MEGAWATTS OF CUMULAT IVE ENERGY STORAGE C APACITY, AS MEASURED IN 20
EFFECTIVE NAMEPLATE CAPACITY. 21
(3) ON OR BEFORE OCTOBER 1, 2027, THE COMMISSION SHALL ISSU E 22
A DECISION ON WHETHE R TO APPROVE ONE OR MORE PROPOSALS IN AC CORDANCE 23
WITH § 7–1226(C) OF THIS SUBTITLE. 24
(4) (I) EXCEPT AS PROVIDED IN SUBPARAGRAPH (II) OF THIS 25
PARAGRAPH , THE TRANSMISSION ENE RGY STORAGE DEVICES PROCURED IN 26
ACCORDANCE WITH THIS SUBSECTION SHALL BE OPERATIONAL WITHIN 24 MONTHS 27
AFTER A PROJECT IS S ELECTED BY THE COMMISSION. 28
(II) THE COMMISSION MAY EXTEND THE OPERATING DEADLI NE 29
UNDER SUBPARAGRAPH (I) OF THIS PARAGRAPH FO R GOOD CAUSE SHOWN . 30
7–1225. 31
HOUSE BILL 1035 55
(A) THE COMMISSION SHALL INCL UDE SPECIFICATIONS I N A 1
PROCUREMENT SOLICITA TION ISSUED UNDER § 7–1224 OF THIS SUBTITLE TH AT 2
REQUIRE EACH PROPOSA L TO: 3
(1) INCLUDE A PROPOSED P RICING SCHEDULE FOR THE 4
TRANSMISSION ENERGY STORAGE PROJECT THAT : 5
(I) IS FOR AT LEAST 15 YEARS; AND 6
(II) REPRESENTS THE ANTIC IPATED MONTHLY WHOLE SALE 7
VALUE OF CAPACITY PE R MEGAWATT AND OTHER BENEFITS IDENTIFIED I N A 8
COST–BENEFIT ANALYSIS , BUT NOT INCLUDING AN Y ANTICIPATED WHOLES ALE 9
ENERGY AND ANCILLARY SERVICES REVENUE ; 10
(2) INCLUDE A COST –BENEFIT ANALYSIS OF THE PROJECT AND 11
PROPOSED PRICING SCH EDULE COMPARISON ON A DOLLAR–PER–MEGAWATT –HOUR 12
BASIS, INCLUDING AN ANALYSI S OF: 13
(I) THE LOCATIONAL VALUE AND TIME TO DEPLOYME NT OF 14
THE ENERGY STORAGE D EVICES; 15
(II) THE VALUE OF LONG –DURATION STORAGE , INCLUDING ITS 16
CAPACITY ACCREDITATI ON VALUE FOR RESOURC E ADEQUACY AS MEASUR ED IN 17
PJM INTERCONNECTION ’S EFFECTIVE LOAD CAR RYING CAPABILITY CLA SS 18
RATINGS; 19
(III) AVOIDED OR DELAYED T RANSMISSION, GENERATION , AND 20
DISTRIBUTION COSTS ; 21
(IV) AVOIDED EMISSIONS IN THE SHORT TERM AND P ROJECTED 22
AVOIDED EMISSIONS IN THE LONG TERM , MEASURED USING THE SOCIAL COST OF 23
CARBON, AS DETERMINED BY THE U.S. ENVIRONMENTAL PROTECTION AGENCY AS 24
OF JANUARY 1, 2025; 25
(V) THE VALUE OF THE RAP ID DEPLOYMENT OF ENE RGY 26
STORAGE DEVICES ; 27
(VI) THE VALUE OF RELIABI LITY DURING PERIODS OF ELECTRIC 28
SYSTEM STRESS , INCLUDING THE ABILIT Y TO DELIVER CAPACIT Y DURING PERIODS 29
OF EXTREME WEATHER , FUEL SCARCITY , AND LARGE UNPLANNED RESOURCE 30
OUTAGES; AND 31
(VII) ANY OTHER AVOIDED CO STS; 32
56 HOUSE BILL 1035
(3) ENSURE THAT T HE OWNER OR OPERATOR OF THE PROJECT HAS 1
THE CAPABILITY TO EX PORT ELECTRICITY FOR SALE ON THE WHOLESAL E MARKET 2
AND BID INTO THE PJM CAPACITY MARKET UNDE R AN AGREEMENT WITH PJM 3
INTERCONNECTION ; 4
(4) ENSURE THAT THE ENER GY STORAGE DEVICES C AN DELIVER 5
THEIR EFFECTIVE NAMEPLATE CAPACITY; 6
(5) INCORPORATE A COMMUN ITY BENEFIT AGREEMEN T; 7
(6) ATTEST IN WRITING TH AT ALL CONTRACTORS A ND 8
SUBCONTRACTORS WORKI NG ON THE PROJECT HA VE BEEN IN COMPLIANC E WITH 9
FEDERAL AND STATE WAGE AND HOUR L AWS FOR THE IMMEDIAT ELY PRECEDING 3 10
YEARS OR THE DURATIO N OF THE CONTRACTOR ’S OR SUBCONTRACTOR ’S BUSINESS 11
OPERATION, WHICHEVER IS LONGER ; AND 12
(7) ENSURE A COMPETITIVE BIDDING PROCESS , INCLUDING BY 13
REDACTING PROPRIETAR Y INFORMATION PROVID ED TO THE COMMISSION. 14
(B) AN ENERGY STOR AGE DEVICE SHALL BE CONSIDERED CAPABLE O F 15
DELIVERING ITS EFFEC TIVE NAMEPLATE CAPAC ITY UNDER THIS SECTI ON IF: 16
(1) THE ENERGY STORAGE D EVICE WILL HAVE THE CAPACITY 17
INTERCONNECTION RIGH TS WITH PJM INTERCONNECTION EQUAL TO ITS 18
EFFECTIVE NAMEPLATE CAPACITY; OR 19
(2) (I) THE ENERGY STORAGE D EVICE WILL HAVE SURP LUS 20
INTERCONNECTION SERV ICE WITH PJM INTERCONNECTION ; AND 21
(II) THE ABILITY OF THE E NERGY STORAGE DEVICE TO DELIVER 22
ITS EFFECTIVE NAMEPL ATE CAPACITY WILL BE LIMITED ONLY BY THE GENERATION 23
OF ANOTHER NONENERGY STORAGE GE NERATION RESOURCE WI TH WHICH THE 24
ENERGY STORAGE DEVIC E SHARES A POINT OF INTERCONNECTION TO T HE 25
ELECTRIC TRANSMISSIO N SYSTEM. 26
(C) FRONT–OF–THE–METER TRANSMISSION E NERGY STORAGE DEVICE S 27
PAIRED WITH TIER 1 OR TIER 2 RENEWABLE SOURCES , AS DEFINED UNDER § 7–701 28
OF THIS TITLE, MAY BE INCLUDED IN A PROPOSAL IN RESPONSE TO A PROCUREMENT 29
SOLICITATION UNDER § 7–1224 OF THIS SUBTITLE. 30
7–1226. 31
(A) IN SELECTING A PROPOS AL FOR A FRONT –OF–THE–METER 32
TRANSMISSION ENERGY STORAGE DEVICE PROJE CT, THE COMMISSION: 33 HOUSE BILL 1035 57
(1) SHALL SPECIFY: 1
(I) A 15–YEAR PRICING SCHEDUL E THAT USES A MONTHL Y 2
FIXED PRICE FOR EACH MEGAWATT THAT REPRES ENTS THE ANTICIPATED 3
WHOLESALE VALUE OF C APACITY FOR THE FRON T–OF–THE–METER TRANSMISSION 4
ENERGY STORAGE DEVIC E AND THE BENEFI TS IDENTIFIED IN § 7–1225(A)(2) OF 5
THIS SUBTITLE; 6
(II) THAT EACH ELECTRICIT Y SUPPLIER SHALL BE 7
RESPONSIBLE FOR PURC HASING STORAGE CAPAC ITY CREDITS AT THE M ONTHLY 8
FIXED PRICE SCHEDULE PROPORTIONAL TO THE ELECTRICITY SUPPLIER ’S 9
CAPACITY OBLIGATION ; 10
(III) THAT ALL PJM CAPACITY MARKET REVE NUE EARNED BY 11
THE ENERGY STORAGE P ROJECT BE TRANSMITTE D TO THE COMMISSION TO BE 12
HELD IN ESCROW FOR D ISTRIBUTION TO ELECT RIC COMPANIES TO BE REFUNDED 13
OR CREDITED TO EACH DISTRIBUTION CUSTOME R PROPORTIONAL TO TH E 14
ELECTRICITY SUPPLIER’S MONTHLY CAPACITY P URCHASE OBLIGATION ; 15
(IV) THAT THE ENERGY STOR AGE PROJECT SHALL RE TAIN ANY 16
ENERGY AND ANCILLARY SERVICES REVENUE EAR NED; 17
(V) THAT ELECTRIC COMPAN IES MUST JOINTLY SEL ECT AN 18
ESCROW ADMINISTRATOR , IN CONSULTATION WITH THE COMMISSION; AND 19
(VI) FOR ANY COST RECOVER Y BY AN ELECTRIC COM PANY, THAT 20
THE RECOVERY SHALL B E DONE THROUGH A NON BYPASSABLE SURCHARGE 21
ESTABLISHED BY THE E LECTRIC COMPANY THAT IS ADDED TO THE ELEC TRIC 22
COMPANY’S BASE DISTRIBUTION RATE OR SUPPLY RATE ON CUSTOMER BILLS ; 23
(2) SHALL SPECIFY THAT F OR CONTINUED RECEIPT OF PAYMENT 24
UNDER ITEM (1) OF THIS SUBSECTION , AN APPLICANT SHALL D EMONSTRATE , TO 25
THE SATISFACTION OF THE COMMISSION, THAT THE APPLICANT ’S ENERGY STORAGE 26
DEVICE IS AVAILABLE ; 27
(3) SHALL INCORPORATE PENALTIES FOR NONPERFORMANCE A ND 28
UNDERPERFORMANCE IN THE CONTRACT , INCLUDING WITHHOLDIN G OF PAYMENT 29
THAT REFLECTS THE DE GREE OF UNDERPERFORM ANCE, FOR ENERGY STORAGE 30
DEVICES THAT FAIL TO MEET AVAILABILITY ME TRICS; 31
(4) MAY TERMINATE ENERGY STORAGE DEVICES FROM THE PROGRAM 32
IF DEVICE PERFORMANC E DOES NOT IMPROVE A FTER APPROPRIATE NOT ICE AND 33
OPPORTUNITY TO CURE ; 34 58 HOUSE BILL 1035
(5) SHALL CONSIDER OTHER NONPRICE FACTORS TO ENSURE 1
PROJECT DELIVERABILI TY WITHIN 24 MONTHS AFTER THE AWA RD DATE, SUCH AS: 2
(I) PROJECT MATURITY DATES ; 3
(II) INTERCONNECTION QUEU E STATUS; 4
(III) SITE CONTROL; 5
(IV) DEVELOPER EXPERIENCE , INCLUDING PROCURING , 6
CONSTRUCTING , AND OPERATING FRONT –OF–THE–METER TRANSMISSION E NERGY 7
STORAGE DEVICES ; 8
(V) ANY EVIDENCE OF KEY DEVELOPMENT MILESTON ES TO 9
SUBSTANTIATE PROJECT DELIVERABILITY WITHI N 24 MONTHS AFTER THE AWA RD 10
DATE; 11
(VI) SAFETY PLANS; AND 12
(VII) ANY OTHER RELEVANT N ONPRICE FACTORS AS 13
DETERMINED BY THE COMMISSION; AND 14
(6) SHALL REQUIRE , AT A MINIMUM, ALL ENERGY STORAGE DEVICES 15
THAT UTILIZE LITHIUM –ION BATTERIES TO COM PLY WITH THE MOST UP –TO–DATE 16
REVISION OF THE NATIONAL FIRE PROTECTION ASSOCIATION 855: STANDARD FOR 17
THE INSTALLATION OF STATIONARY ENERGY STORAGE SYSTEMS IN EFFECT AT THE 18
PROJECT’S FINAL PERMIT APP LICATION DATE. 19
(B) (1) EACH ENERGY STORAGE P ROJECT SHALL INCLUDE A PROPOSED 20
DECOMMISSIONING PLAN . 21
(2) THE PROPOSED DECOMMIS SIONING PLAN SHALL I NCLUDE A PLAN 22
TO MAXIMIZE THE RECY CLING OR REUSE OF AL L QUALIFYING COMPONE NTS OF 23
EACH ENERGY STORAGE DEVICE. 24
(3) THE OWNER OR OPERATOR OF AN ENERGY STORAGE DEVICE MAY 25
SUBMIT A REVISED REC YCLING AND REUSE PLA N THAT INCORPORATES EMERGING 26
RECYCLING AND REUSE OPPORTUNITIES UP TO 1 YEAR BEFORE EXECUTIN G THE 27
DECOMMISSIONING PLAN . 28
(C) THE COMMISSION SHALL : 29
HOUSE BILL 1035 59
(1) AFTER GIVING PUBLIC NOTICE, HOLD ONE OR MORE PUB LIC 1
HEARINGS TO RECEIVE PUBLIC COMMENT AND E VALUATE THE PROPOSAL S; AND 2
(2) SUBJECT TO SUBSECTIO N (D) OF THIS SECTION , ISSUE ONE OR 3
MORE ORDERS TO SELEC T A PROPOSAL OR PROP OSALS FOR DEVELOPMEN T. 4
(D) THE COMMISSION MAY END TH E SOLICITATION PROCE SS WITHOUT 5
SELECTING A PROPOSAL IF THE COMMISSION FINDS THAT NONE OF THE PROPOSAL S 6
ADEQUATELY SUPPORT T HE GOALS ESTABLISHED UNDER THIS SUBTITLE , 7
INCLUDING THE GOAL O F SECURING AFFORDABL E, RELIABLE ELECTRICAL SERVICE 8
FOR MARYLAND RESIDENTS . 9
7–1227. 10
(A) FOR ANY PROPOSAL SELE CTED UNDER THIS PART , THE COMMISSION 11
MAY ADOPT CONDITIONS FOR THE CONSTRUCTION AND OPERATION OF FAC ILITIES 12
INCLUDED IN THE PROP OSAL. 13
(B) AN ORDER SELECTING A PROPOSAL UNDER § 7–1226 OF THIS SUBTITLE 14
BESTOWS THE SAME RIG HTS TO THE SELECTED PROPOSAL THAT A GENE RATING 15
SYSTEM WOULD OTHERWI SE BE GRANTED THROUG H A CERTIFICATE OF P UBLIC 16
CONVENIENCE AND NECE SSITY UNDER § 7–207 OF THIS TITLE IF THE SELECTED 17
PROPOSAL IS REVIEWED UNDER AN ALTERNATIVE PROCESS AS DETERMINED BY THE 18
COMMISSION. 19
7–1228. 20
ANY TRANSMISSION ENER GY STORAGE DEVICE BU ILT IN ACCORDANCE WI TH 21
THIS SUBTITLE SHALL COUNT TOWARD THE ENE RGY STORAGE DEVICE 22
DEPLOYMENT GOALS UND ER § 7–216.1 OF THIS TITLE. 23
7–1229. 24
ON OR BEFORE DECEMBER 31, 2026, THE COMMISSION SHALL REPO RT, IN 25
ACCORDANCE WITH § 2–1257 OF THE STATE GOVERNMENT ARTICLE, TO THE 26
GENERAL ASSEMBLY ON THE EFFEC TIVENESS OF THE PROC UREMENT PROCESS 27
ESTABLISHED UNDER TH IS PART. 28
Article – State Finance and Procurement 29
13–102. 30
(a) The following procurement methods are authorized at the procurement 31
officer’s discretion, where applicable: 32
60 HOUSE BILL 1035
(1) competitive sealed bids under § 13–103 of this subtitle; 1
(2) competitive sealed proposals under § 13–104 or § 13–105 of this 2
subtitle; 3
(3) noncompetitive negotiation under § 13–106 of this subtitle; 4
(4) sole source procurement under § 13–107 of this subtitle; 5
(5) emergency or expedited procurement under § 13–108 of this subtitle; 6
(6) small procurement under § 13–109 of this subtitle; 7
(7) an intergovernmental cooperative purchasing agreement under § 8
13–110 of this subtitle; 9
(8) auction bids under § 13–111 of this subtitle; 10
(9) architectural, engineering, and land surveying services qualification 11
based selection under § 13–112 of this subtitle; 12
(10) master contracting under § 13–113 of this subtitle; [or] 13
(11) pay–for–success contracting under § 13–112.1 of this subtitle; OR 14
(12) LEGISLATIVE FAST –TRACK PROCUREMENTS U NDER § 13–117 OF 15
THIS SUBTITLE. 16
13–117. 17
(A) IT IS THE INTENT OF THE GENERAL ASSEMBLY TO: 18
(1) RECOGNIZE THE NEED F OR STATE AGENCIES TO BE RESPONSIVE 19
TO THE REQUESTS AND LEGISLATIVE DIRECTIV ES OF THE GENERAL ASSEMBLY; 20
(2) REDUCE THE TIME IT T AKES FOR STATE AGENCIES TO PRO CURE 21
CONSULTANTS TO ASSIS T WITH LEGISLATIVE MANDAT ES THAT HAVE DEADLIN ES 22
SPECIFIED IN LAW; AND 23
(3) BE TIMELY IN ADDRESS ING CLIMATE CHANGE , ENVIRONMENTAL , 24
ENERGY, AND GREENHOUSE GAS E MISSIONS RELATED ISS UES. 25
(B) THIS SECTION APPLIES ONLY TO THE PROCUREM ENT OF CONSULTANTS 26
THAT: 27
HOUSE BILL 1035 61
(1) ARE LEGISLATIVELY MA NDATED WITH SPECIFIC TIME FRAMES 1
ESTABLISHED IN LAW ; AND 2
(2) WILL ADDRESS ISSUES RELATED ONLY TO CLIM ATE CHANGE, THE 3
ENVIRONMENT , ENERGY, AND GREENHOUSE GAS E MISSIONS. 4
(C) THE FOLLOWING UNITS A RE AUTHORIZED TO ISS UE COMPETITIVE 5
SEALED BIDS HIGHER T HAN THEIR DESIGNATED SMALL PROCUREMENT 6
DELEGATION AUTHORITI ES: 7
(1) THE PUBLIC SERVICE COMMISSION; 8
(2) THE OFFICE OF PEOPLE’S COUNSEL; 9
(3) THE MARYLAND ENERGY ADMINISTRATION ; 10
(4) THE DEPARTMENT OF THE ENVIRONMENT ; AND 11
(5) THE DEPARTMENT OF NATURAL RESOURCES. 12
(D) BEFORE AWARDING A PRO CUREMENT CONTRACT UN DER THIS SECTION , 13
THE PROCUREMENT OFFI CER SHALL OBTAIN THE APPROVAL OF : 14
(1) THE HEAD OF THE UNIT ; AND 15
(2) THE CHIEF PROCUREMENT OFFICER, OR THEIR DESIGNEE . 16
(E) (1) THE CHIEF PROCUREMENT OFFICER, OR THEIR DESIGNEE , 17
SHALL APPROVE A PROC UREMENT CONTRACT SUB MITTED UNDER THIS SE CTION IF 18
IT COMPLIES WITH THE REQUIREMENTS OF THIS SECTION. 19
(2) IF THE CHIEF PROCUREMENT OFFICER, OR THEIR DESIGNEE , 20
DOES NOT APPROVE A P ROCUREMENT CONTRACT SUBMI TTED UNDER THIS SECT ION 21
WITHIN 5 BUSINESS DAYS AFTER RECEIVING THE CONTRA CT, THE CONTRACT SHALL 22
BE CONSIDERED APPROV ED. 23
Article – State Government 24
9–20B–05. 25
(a) There is a Maryland Strategic Energy Investment Fund. 26
(e) The Fund consists of: 27
62 HOUSE BILL 1035
(1) all of the proceeds from the sale of allowances under § 2–1002(g) of the 1
Environment Article; 2
(2) money appropriated in the State budget to the Program; 3
(3) repayments and prepayments of principal and interest on loans made 4
from the Fund; 5
(4) interest and investment earnings on the Fund; 6
(5) compliance fees paid under § 7–705 of the Public Utilities Article; 7
(6) money received from any public or private source for the benefit of the 8
Fund; 9
(7) money transferred from the Public Service Commission under [§ 10
7–207.2(c)(3)] § 7–207.2(D)(3) of the Public Utilities Article; and 11
(8) money distributed under § 2–614.1 of the Tax – General Article. 12
(i) (1) Except as provided in [paragraph] PARAGRAPHS (2) AND (3) of this 13
subsection, compliance fees paid under § 7–705(b) of the Public Utilities Article may be 14
used only to make loans and grants to support the creation of new Tier 1 renewable energy 15
sources in the State that are owned by or directly benefit: 16
(i) low– to moderate–income communities located in a census tract 17
with an average median income at or below 80% of the average median income for the State; 18
or 19
(ii) overburdened or underserved communities, as defined in § 1–701 20
of the Environment Article. 21
(2) Compliance fees paid under § 7–705(b)(2)(i)2 of the Public Utilities 22
Article shall be accounted for separately within the Fund and may be used only to make 23
loans and grants to support the creation of new solar energy sources in the State that are 24
owned by or directly benefit: 25
(i) low– to moderate–income communities located in a census tract 26
with an average median income at or below 80% of the average median income for the State; 27
(ii) overburdened or underserved communities, as defined in § 1–701 28
of the Environment Article; or 29
(iii) households with low to moderate income, as defined in § 9–2016 30
of this title. 31
HOUSE BILL 1035 63
(3) (I) SUBJECT TO SUBPARAGRA PHS (II), (III), AND (IV) OF THIS 1
PARAGRAPH , COMPLIANCE FEES PAID UNDER § 7–705 OF THE PUBLIC UTILITIES 2
ARTICLE MAY BE USED T O PROVIDE GRANTS TO ELECTRIC COMPANIES T O BE 3
REFUNDED OR CREDITED TO EACH RESIDENTIAL DISTRIBUTION CUSTOME R BASED 4
ON THE CUSTOMER ’S CONSUMPTION OF ELE CTRICITY SUPPLY THAT IS SUBJECT TO 5
THE RENEWABLE ENERGY PORTFOLIO STANDARD . 6
(II) THE REFUNDING OR CRED ITING OF AMOUNTS TO 7
RESIDENTIAL DISTRIBU TION CUSTOMERS SHALL BE IDENTIFIED ON THE 8
CUSTOMER’S BILL AS A LINE ITEM IDENTIFIED AS A “LEGISLATIVE ENERGY RELIEF 9
REFUND”. 10
(III) AN ELECTRIC COMPANY A WARDED A GRANT UNDER THIS 11
PARAGRAPH : 12
1. MAY NOT RETAIN ANY O F THE GRANT FUNDS TO 13
COVER OVERHEAD EXPEN SES; AND 14
2. SHALL PROVIDE ALL OF THE GRANT FUNDS TO 15
RESIDENTIAL DISTRIBU TION CUSTOMERS . 16
(IV) THE PROCESS UNDER SUB PARAGRAPHS (I) AND (II) OF THIS 17
PARAGRAPH RELATED TO THE REFUN DING OR CREDITING OF AMOUNTS TO 18
RESIDENTIAL DISTRIBU TION CUSTOMERS SHALL BE DIRECTED AND OVER SEEN BY 19
THE COMMISSION. 20
SECTION 4. AND BE IT FURTHER ENACTED, That the Laws of Maryland read 21
as follows: 22
Article – Tax – General 23
10–207. 24
(a) To the extent included in federal adjusted gross income, the amounts under 25
this section are subtracted from the federal adjusted gross income of a resident to determine 26
Maryland adjusted gross income. 27
(QQ) (1) IN THIS SUBSECTION , “LEGISLATIVE ENERGY RELIEF REFUND ” 28
MEANS A CREDIT AGAINST A PERSON’S ELECTRIC UTILITY B ILL THAT IS OFFERED 29
THROUGH GRANTS PROVI DED TO ELECTRIC COMP ANIES IN ACCORDANCE WITH § 30
9–20B–05(I)(3) OF THE STATE GOVERNMENT ARTICLE. 31
(2) THE SUBTRACTION UNDER SUBSECTION (A) OF THIS SECTION 32
INCLUDES TH E AMOUNT OF A LEGISL ATIVE ENERGY RELIEF REFUND RECEIVED BY 33
A PERSON DURING THE TAXABLE YEAR . 34 64 HOUSE BILL 1035
SECTION 4. 5. AND BE IT FURTHER ENACTED, That the Laws of Maryland read 1
as follows: 2
Article – Public Utilities 3
7–701. 4
(a) In this subtitle the following words have the meanings indicated. 5
(s) “Tier 1 renewable source” means one or more of the following types of energy 6
sources: 7
(1) solar energy, including energy from photovoltaic technologies and solar 8
water heating systems; 9
(2) wind; 10
(3) qualifying biomass; 11
(4) methane from the anaerobic decomposition of organic materials in a 12
landfill or wastewater treatment plant; 13
(5) geothermal, including energy generated through geothermal exchange 14
from or thermal energy avoided by, groundwater or a shallow ground source; 15
(6) ocean, including energy from waves, tides, currents, and thermal 16
differences; 17
(7) a fuel cell that produces electricity from a Tier 1 renewable source 18
under item (3) or (4) of this subsection; 19
(8) a small hydroelectric power plant of less than 30 megawatts in capacity 20
that is licensed or exempt from licensing by the Federal Energy Regulatory Commission; 21
(9) poultry litter–to–energy; 22
(10) [waste–to–energy; 23
(11) refuse–derived fuel; 24
(12)] thermal energy from a thermal biomass system; and 25
[(13)] (11) raw or treated wastewater used as a heat source or sink for a 26
heating or cooling system. 27
7–704. 28 HOUSE BILL 1035 65
(a) (1) Energy from a Tier 1 renewable source: 1
(i) is eligible for inclusion in meeting the renewable energy portfolio 2
standard regardless of when the generating system or facility was placed in service; and 3
(ii) may be applied to the percentage requirements of the standard 4
for either Tier 1 renewable sources or Tier 2 renewable sources. 5
(2) (i) Energy from a Tier 1 renewable source under § 7–701(s)(1), (5), 6
OR (9)[, (10), or (11)] of this subtitle is eligible for inclusion in meeting the renewable energy 7
portfolio standard only if the source is connected with the electric distribution grid serving 8
Maryland. 9
(ii) Energy from a Tier 1 renewable source under [§ 7–701(s)(13)] § 10
7–701(S)(11) of this subtitle is eligible for inclusion in meeting the renewable energy 11
portfolio standard only if the source: 12
1. is connected with the electric distribution grid serving 13
Maryland; or 14
2. processes wastewater from Maryland residents. 15
(iii) If the owner of a solar generating system in this State chooses to 16
sell solar renewable energy credits from that system, the owner must first offer the credits 17
for sale to an electricity supplier or electric company that shall apply them toward 18
compliance with the renewable energy portfolio standard under § 7–703 of this subtitle. 19
(3) Energy from a Tier 1 renewable source under § 7–701(s)(8) of this 20
subtitle is eligible for inclusion in meeting the renewable energy portfolio standard if it is 21
generated at a dam that existed as of January 1, 2004, even if a system or facility that is 22
capable of generating electricity did not exist on that date. 23
(4) Energy from a Tier 2 renewable source under § 7–701(t) of this subtitle 24
is eligible for inclusion in meeting the renewable energy portfolio standard if it is generated 25
at a system or facility that existed and was operational as of January 1, 2004, even if the 26
facility or system was not capable of generating electricity on that date. 27
SECTION 6. AND BE IT FURTHER ENACTED, That the Laws of Maryland read 28
as follows: 29
Article – Public Utilities 30
7–207. 31
66 HOUSE BILL 1035
(b) (1) (i) Unless a certificate of public convenience and necessity for the 1
construction is first obtained from the Commission, a person may not begin construction in 2
the State of: 3
1. a generating station; [or] 4
2. a qualified generator lead line; OR 5
3. AN ENERGY STORAGE DE VICE THAT IS PART OF A 6
PROPOSAL ACCEPTED BY THE COMMISSION DURING A S OLICITATION PERIOD 7
UNDER § 7–1202 APPROVED BY THE COMMISSION UNDER § 7–1206 OF THIS TITLE. 8
(IV) NOTWITHSTANDING ANY O THER PROVISION OF TH IS 9
SECTION, A CERTIFICATE OF PUB LIC CONVENIENCE AND NECESSITY FOR THE 10
CONSTRUCTION OF A GENERATING STATION T HAT IS PART OF A PRO POSAL 11
ACCEPTED BY THE COMMISSION DURING A S OLICITATION PERIOD U NDER § 7–1202 12
APPROVED BY THE COMMISSION UNDER § 7–1206 OF THIS TITLE SHALL BE ISSUED 13
IN ACCORDANCE WITH § 7–207.4 OF THIS SUBTITLE . 14
(V) WHEN A PERS ON APPLIES FOR A CER TIFICATE OF PUBLIC 15
CONVENIENCE AND NECE SSITY FOR THE CONSTR UCTION OF A GENERATI NG 16
STATION UNDER THIS S ECTION, THE APPLICATION SHAL L STATE WHETHER THE 17
PROPOSED GENERATING STATION OR THE PROPO SED MODIFICATION IS PART OF A 18
PROPOSAL ACCEPTED BY THE COMMISSION DURING A S OLICITATION PERIOD 19
UNDER § 7–1202 OF THIS TITLE. APPROVED BY THE COMMISSION UNDER § 7–1206 20
OF THIS TITLE. 21
(VI) 1. THE COMMISSION MAY PRIORI TIZE THE REVIEW OF 22
AN APPLICATION FOR A CERTIFICATE OF PUBLI C CONVENIENCE AND NE CESSITY 23
UNDER § 7–207.4 OF THIS SUBTITLE OVE R THE REVIEW OF AN A PPLICATION FOR A 24
CERTIFICATE OF PUBLI C CONVENIENCE AND NE CESSITY UNDER THIS S ECTION. 25
2. THE COMMISSION MAY EXTEND THE TIME FOR THE 26
REVIEW OF AN APPLICA TION FOR A CERTIFICA TE OF PUBLIC CONVE NIENCE AND 27
NECESSITY UNDER THIS SECTION IF, IN ACCORDANCE WITH S UBSUBPARAGRAPH 1 28
OF THIS SUBPARAGRAPH , THE COMMISSION HAS PRIORI TIZED THE REVIEW OF AN 29
APPLICATION FOR A CE RTIFICATE OF PUBLIC CONVENIENCE AND NECE SSITY 30
UNDER § 7–207.4 OF THIS SUBTITLE OVE R THE REVIEW OF THE APP LICATION FOR A 31
CERTIFICATE OF PUBLI C CONVENIENCE AND NE CESSITY UNDER THIS S ECTION. 32
7–207.4. 33
(A) (1) IN THIS SECTION THE F OLLOWING WORDS HAVE THE MEANINGS 34
INDICATED. 35 HOUSE BILL 1035 67
(2) “CONSTRUCTION ” HAS THE MEANING STAT ED IN § 7–207 OF THIS 1
SUBTITLE. 2
(3) (I) “DISPATCHABLE ENERGY GENERATING GENERATION 3
PROJECT” MEANS A GENERATING S TATION OR ENERGY STO RAGE DEVICE: 4
1. THAT IS PART OF A PR OPOSAL ACCEPTED BY T HE 5
COMMISSION DURING A S OLICITATION PERIOD U NDER § 7–1202 OF THIS TITLE; OR 6
2. ON OR BEFORE JANUARY 1, 2025, IS WAITING FOR 7
APPROVAL OR HAS BEEN APPROVED FOR INTERCO NNECTION BY PJM THAT IS PART 8
OF A PROPOSAL APPROV ED BY THE COMMISSION UNDER § 7–1206 OF THIS TITLE. 9
(II) “DISPATCHABLE ENERGY GENERATING GENERATION 10
PROJECT” INCLUDES ANY ASSOCIATED INF RASTRUCTURE NECESSAR Y TO 11
INTERCONNECT THE GEN ERATING STATION TO T HE ELECTRIC DISTRIBU TION 12
SYSTEM. 13
(4) “ENERGY STORAGE DEVICE ” HAS THE MEANING STAT ED IN § 14
7–216 OF THIS SUBTITLE . 15
(5) “GENERATING STATION ” HAS THE MEANING STAT ED IN § 7–207 OF 16
THIS SUBTITLE. 17
(6) “LARGE CAPACITY ENERGY RESOURCE” MEANS A GENERATING 18
STATION THAT: 19
(I) ON OR BEFORE JANUARY 1, 2025: 20
1. HAS APPLIED TO PJM FOR INTERCONNECTION 21
APPROVAL; OR 22
2. HAS BEEN APPROVED BY PJM FOR 23
INTERCONNECTION ; 24
(II) HAS A CAPACITY RATIN G EQUAL TO OR GREATE R THAN 20 25
MEGAWATTS AFTER ACCO UNTING FOR THE EFFEC TIVE LOAD CARRYING 26
CAPABILITY; AND 27
(III) IS PART OF A PROPOSA L APPROVED BY THE COMMISSION 28
UNDER § 7–1206 OF THIS TITLE. 29
68 HOUSE BILL 1035
(7) “QUALIFYING PROJECT ” MEANS A DISPATCHABLE ENERGY 1
GENERATION PROJECT O R LARGE CAPACITY ENE RGY RESOURCE PROJECT THAT 2
HAS BEEN APPROVED BY THE COMMISSION UNDER § 7–1208 OF THIS TITLE. 3
(B) THIS SECTION APPLIES ONLY TO AN APPLICATI ON FOR A CERTIFICATE 4
OF PUBLIC CONVENIENC E AND NECESSITY FOR THE CONSTRUCTION OF A 5
DISPATCHABLE ENERGY GENERATION QUALIFYING PROJECT. 6
(C) UNLESS A CERTIFICATE OF PUBLIC CONVENIENC E AND NECESSITY IS 7
FIRST OBTAINED FROM THE COMMISSION IN ACCORDA NCE WITH THIS SECTIO N OR 8
§ 7–207 OF THIS SUBTITLE , A PERSON MAY NOT CONSTRUCT A DISPATCHABLE 9
ENERGY GENERATION QUALIFYING PROJECT. 10
(D) WITHIN 90 DAYS AFTER THE SUBMI SSION OF AN APPLICAT ION FOR A 11
CERTIFICATE OF PUBLI C CONVENIENCE AND NE CESSITY THAT STATES THAT THE 12
APPLICATION IS FOR A DISPATCHABLE ENERGY GENERATION PROJE CT, THE 13
COMMISSION SHALL : 14
(1) VERIFY THAT THE GENE RATING STATION OR EN ERGY STORAGE 15
DEVICE IS A DISPATCH ABLE ENERGY GENERATI ON PROJECT; AND 16
(2) NOTIFY THE APPLICANT AND RELEVANT ENTITIE S IN 17
ACCORDANCE WITH § 7–207(C) OF THIS SUBTITLE THA T THE APPLICATION IS 18
SUBJECT TO AN EXPEDI TED REVIEW PROCESS I N ACCORDANCE WITH TH IS SECTION. 19
(D) A CERTIFICATE OF PUBLI C CONVENIENCE AND NE CESSITY ISSUED 20
UNDER THIS SECTION B ESTOWS THE SAME RIGH TS AS A CERTIFICATE OF PUBLIC 21
CONVENIENCE AND NECE SSITY ISSUED UND ER § 7–207 OF THIS SUBTITLE. 22
(E) A PERSON APPLYING FOR A CERTIFICATE OF PUB LIC CONVENIENCE 23
AND NECESSITY UNDER THIS SECTION SHALL : 24
(1) AT LEAST 45 DAYS BEFORE SUBMITTI NG AN APPLICATION UN DER 25
THIS SECTION, NOTIFY THE COMMISSION AND THE POWER PLANT RESEARCH 26
PROGRAM; AND 27
(2) UNLESS OTHERWISE SPE CIFIED UNDER THIS SE CTION, COMPLETE 28
ALL PRE–APPLICATION REQUIREM ENTS BEFORE SUBMITTI NG AN APPLICATION . 29
(F) (1) EXCEPT AS PROVIDED IN PARAGRAPH (2) OF THIS SUBSECTION , 30
THE TIMELINES ASSOCI ATED WITH THE NOR MAL PRE –APPLICATION 31
REQUIREMENTS UNDER § 7–207 OF THIS SUBTITLE , INCLUDING THE 32
REQUIREMENTS UNDER COMAR 20.79.01.04 AND COMAR 20.79.01.05, SHALL BE 33
SHORTENED TO 45 DAYS FOR APPLICATION S SUBMITTED UNDER TH IS SECTION. 34 HOUSE BILL 1035 69
(2) IF THE PROPOSED LOCAT ION OF A QUALIFYING PROJECT IS I N AN 1
OVERBURDENED COMMUNI TY OR UNDERSERVED CO MMUNITY, AS DEFINED IN § 2
1–701 OF THE ENVIRONMENT ARTICLE, THE TIMELINE FOR THE PRE–APPLICATION 3
REQUIREMENTS UNDER COMAR 20.79.01.04 AND COMAR 20.79.01.05 SHALL 4
REMAIN AT 90 DAYS. 5
(G) ONCE FIVE APPLICATIONS HA VE BEEN RECEIVED UND ER THIS SECTION 6
WITHIN A 2–MONTH PERIOD , THE COMMISSION MAY DELAY PROCESSING ANY 7
SUBSEQUENT APPLICATI ONS SUBMITTED UNDER THIS SECTION WITHOUT 8
IMPACTING THE TIMELI NES SPECIFIED IN THI S SECTION. 9
(E) (H) (1) THE COMMISSION SHALL: 10
(I) EXPEDITE ALL PROCEED INGS FOR THE REVIEW AND 11
APPROVAL OF A CERTIF ICATE OF PUBLIC CONV ENIENCE AND NECESSIT Y FOR A 12
DISPATCHABLE ENERGY GENERATION PROJECT A ND PRIORITIZE THESE 13
PROCEEDINGS , IF NECESSARY, OVER OTHER MATTERS ; AND QUALIFYING PROJECT; 14
AND 15
(II) TAKE FINAL ACTION ON A CERTIFICATE OF PUB LIC 16
CONVENIENCE AND NECE SSITY FOR A DISPATCHABLE ENERGY GENERATION 17
QUALIFYING PROJECT NOT LATER TH AN 6 MONTHS 295 DAYS AFTER THE 18
COMMISSION MAKES THE VERIFICATION UNDER S UBSECTION (D)(1) OF THIS 19
SECTION THE POWER PLANT RESEARCH PROGRAM DETERMINES TH AT THE 20
APPLICATION IS COMPL ETE IN ACCORDANCE WI TH COMAR 20.79.01.10. 21
(2) A STATE AGENCY SHALL SU BMIT ANY RECOMMENDED LICENSING 22
CONDITIONS OR TESTIM ONY REGARDING THE IS SUANCE OF A CERTIFIC ATE OF 23
PUBLIC CONVENIENCE AND NECESSITY FOR A DISP ATCHABLE ENERGY GENE RATION 24
PROJECT NOT LATER TH AN 90 DAYS AFTER THE DATE THE COMMISSION MAKES THE 25
VERIFICATION UNDER S UBSECTION (D)(1) OF THIS SECTION THE COMMISSION MAY 26
EXTEND THE TIME TO T AKE FINAL ACTION ON A CERTIFICATE OF PUBLIC 27
CONVENIENCE AND NECE SSITY UNDER THIS SEC TION IF AN APPLICANT FAILS TO 28
COMPLY WITH THE LAW , REGULATORY REQUIREME NTS, OR COMMISSION ORDERS 29
ASSOCIATED WITH OBTA INING A CERTIFICATE OF PUBLIC CONVENIENC E AND 30
NECESSITY. 31
(3) NOTWITHSTANDING A NY OTHER LAW OR REGU LATION, IN ORDER 32
TO MEET THE REQUIRED TIMELINES FOR THE IS SUANCE OF A CERTIFIC ATE OF 33
PUBLIC CONVENIENCE A ND NECESSITY UNDER T HIS SECTION, THE COMMISSION 34
MAY REVIEW AND DETER MINE WHETHER TO APPR OVE DECOMMISSIONING PLANS 35
FOR A QUALIFYING PROJECT AFTER THE CE RTIFICATE OF PUBLIC CONVENIENCE 36
AND NECESSITY HAS BE EN ISSUED. 37 70 HOUSE BILL 1035
(F) IF A PROPOSED SITE FO R A DISPATCHABLE ENE RGY GENERATION 1
QUALIFYING PROJECT WAS PREVIOUS LY OR IS CURRENTLY U SED FOR ELECTRICITY 2
GENERATION AND HAS A HIGHER GREENHOUSE G AS EMISSION PROFILE COMPARED 3
TO THE DISPATCHABLE ENERGY GENERATION PR OJECT: 4
(1) THE APPLICANT IS EXE MPT FROM THE REQUIREMENTS OF 5
COMAR 20.79.01.04 AND COMAR 20.79.01.05; AND 6
(2) THE COMMISSION SHALL PRES UME THE PROPOSED SIT E IS 7
APPROPRIATE AND CONSISTENT WITH THE CERTIFICATE OF PUBLI C CONVENIENCE 8
AND NECESSITY FOR A NEW OR EXPANDED GENE RATING STATION . 9
(G) THE COMMISSION, THE DEPARTMENT OF THE ENVIRONMENT , THE 10
DEPARTMENT OF NATURAL RESOURCES, AND ANY OTHER IMPACT ED STATE 11
AGENCY SHALL WAIVE O R EXPEDITE ANY REGULATO RY REQUIREMENTS OR 12
DECISIONS TO COMPLY WITH THE TIME FRAMES SET FORTH IN THIS SE CTION. 13
(I) IN EVALUATING AN APPL ICATION FOR A CERTIF ICATE OF PUBLIC 14
CONVENIENCE AND NECE SSITY UNDER THIS SEC TION, THE COMMISSION MAY 15
CONTRACT FOR THE SER VICES OF INDEPENDENT CONSULTANTS AND EXPE RTS. 16
SECTION 7. AND BE IT FURTHER ENACTED, That on or before January 15, 2026, 17
the Public Service Commission shall report to the General Assembly, in accordance with § 18
2–1257 of the State Government Article, on: 19
(1) the status of developing regulations for the establishment and purchase 20
of zero–emission credits in accordance with § 7–1220 of the Public Utilities Article, as 21
enacted by Section 3 of this Act; and 22
(2) whether any legislative action is necessary to implement the 23
zero–emission credit provisions in § 7–1220 of the Public Utilities Article, as enacted by 24
Section 3 of this Act. 25
SECTION 8. AND BE IT FURTHER ENACTED, That a presently existing obligation 26
or contract right may not be impaired in any way by this Act. 27
SECTION 9. AND BE IT FURTHER ENACTED, That Section 5 of this Act shall 28
apply: 29
(1) except as specified in item (2) of this section, to all renewable energy 30
portfolio standard compliance years starting on or after January 1, 2025; and 31
(2) beginning July 1, 2026, and to each renewable energy portfolio standard 32
compliance year thereafter, for each facility owned by a public instrumentality of the State. 33
HOUSE BILL 1035 71
SECTION 5. 10. AND BE IT FURTHER 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 11. AND BE IT FURTHER ENACTED, That: 4
(a) (1) Notwithstanding any other provision of law, from the alternative 5
compliance fees paid into the Maryland Strategic Energy Investment Fund in accordance 6
with § 7–705 of the Public Utilities Article, a portion shall be used to provide grant awards 7
to electric companies, including electric cooperatives and municipal electric utilities, to be 8
refunded or credited to residential distribution customers for electric service in fiscal 2026 9
in accordance with subsection (b) of this section. 10
(2) The Governor may transfer by budget amendment the funds described 11
in paragraph (1) of this subsection to the Public Service Commission to be awarded to 12
electric companies, including electric cooperatives and municipal electric utilities. 13
(b) The funds described in subsection (a)(1) of this section shall be distributed: 14
(1) in accordance with § 9–20B–05(i)(3) of the State Government Article, 15
as enacted by Section 3 of this Act; 16
(2) twice during the 2026 fiscal year; and 17
(3) to residential distribution customers as follows: 18
(i) half of the amount granted under subsection (a)(1) to be refunded 19
or credited during a peak summer month; and 20
(ii) half of the amount granted under subsection (a)(1) to be refunded 21
or credited during a peak winter month. 22
SECTION 12. AND BE IT FURTHER ENACTED, That Section 4 of this Act shall be 23
applicable to all taxable years beginning after December 31, 2024. 24
SECTION 13. AND BE IT FURTHER ENACTED, That, on or before January 1, 25
2026, the Department of Human Services shall report to the Governor and, in accordance 26
with § 2–1257 of the State Government Article, the General Assembly on any legislative or 27
regulatory changes necessary to implement the recommendation to combine all energy 28
assistance programs operated by the State into one program as discussed in the 29
Department of Legislative Services Office of Program Evaluation and Government 30
Accountability’s February 2025 “Evaluation of the Office of Home Energy Programs”. 31
SECTION 6. 14. AND BE IT FURTHER ENACTED, That this Act shall take effect 32
July June 1, 2025. Section 4 6 of this Act shall remain effective for a period of 5 years and 33
1 month and, at the end of June 30, 2030, Section 4 6 of this Act, with no further action 34
required by the General Assembly, shall be abrogated and of no further force and effect. 35