EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW. [Brackets] indicate matter deleted from existing law. *hb1219* HOUSE BILL 1219 C5 5lr3262 By: Delegates Miller, Hornberger, Mangione, T. Morgan, Pippy, Rose, and Tomlinson Introduced and read first time: February 7, 2025 Assigned to: Economic Matters A BILL ENTITLED AN ACT concerning 1 Maryland Co–Location Energy Innovation and Reliability Act 2 FOR the purpose of requiring the Public Service Commission to adopt regulations related 3 to the construction of a generating station that is co–located with a data center but 4 is not interconnected with the electric transmission system or electric distribution 5 system; and generally relating to the co–location of data centers with generating 6 stations. 7 BY adding to 8 Article – Public Utilities 9 Section 7–207.4 10 Annotated Code of Maryland 11 (2020 Replacement Volume and 2024 Supplement) 12 SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 13 That the Laws of Maryland read as follows: 14 Article – Public Utilities 15 7–207.4. 16 (A) (1) IN THIS SECTION THE F OLLOWING WORDS HAVE THE MEANINGS 17 INDICATED. 18 (2) “CONSTRUCTION ” HAS THE MEANING STAT ED IN § 7–207 OF THIS 19 SUBTITLE. 20 (3) “DATA CENTER” HAS THE MEANING STAT ED IN § 11–239 OF THE 21 TAX – GENERAL ARTICLE. 22 2 HOUSE BILL 1219 (4) “GENERATING STATION ” HAS THE MEANING STAT ED IN § 7–207 OF 1 THIS SUBTITLE. 2 (B) THIS SECTION APPLIES ONLY TO A GENERATING STATION THAT: 3 (1) INCLUDES THE CO –LOCATION OF A DATA C ENTER WITH THE 4 STATION; AND 5 (2) DOES NOT INTERCONNEC T WITH THE ELECTRIC TRANSMISSION 6 SYSTEM OR ELECTRIC D ISTRIBUTION SYSTEM . 7 (C) THE COMMISSION SHALL ADOP T REGULATIONS TO IMP LEMENT 8 SPECIFIC POLICIES RE LATED TO THE CONSTRU CTION OF A GENERATIN G STATION 9 UNDER THIS SECTION . 10 (D) THE REGULATIONS ADOPT ED UNDER SUBSECTION (C) OF THIS SECTION 11 SHALL: 12 (1) DEFINE A GENERATING STATION AS AN INDEPE NDENT RESOURCE 13 NOT SUBJECT TO STATE LAWS AND REGULA TIONS RELATED TO RET AIL ELECTRIC 14 CUSTOMERS OR ELECTRI CITY SUPPLIERS; 15 (2) CLARIFY THAT STATE–MANDATED ELECTRIC DI STRIBUTION 16 SYSTEM FEES OR RENEWABLE ENERGY POR TFOLIO STANDARD OBLI GATIONS DO 17 NOT APPLY TO THE GEN ERATING STATION OR E NERGY GENERATED AT T HE 18 GENERATING STATION ; 19 (3) ENSURE THAT A GENERA TING STATION INCLUDE S BACKUP 20 SOURCES OF ELECTRICI TY FOR RELIABILITY , INCLUDING ON –SITE GENERATI NG 21 CAPACITY; 22 (4) DEVELOP ROBUST PROTE CTIVE MEASURES TO EN SURE THAT A 23 GENERATING STATION D OES NOT INTERACT WIT H THE ELECTRIC TRANS MISSION 24 SYSTEM OR ELECTRIC D ISTRIBUTION SYSTEM ; 25 (5) REQUIRE A GENERATING STATION TO INCLUDE C YBERSECURITY 26 SAFEGUARDS ; 27 (6) ENSURE THAT AN APPLI CANT FOR A CERTIFICA TE OF PUBLIC 28 CONVENIENCE AND NECE SSITY FOR THE CONSTR UCTION OF A GENERATI NG 29 STATION DEMONSTRATE DURING THE APPLICATI ON PROCESS THAT THE 30 GENERATING STATION S HALL: 31 HOUSE BILL 1219 3 (I) BE AN INDEPENDENT RE SOURCE THAT WILL NOT BE 1 INTERCONNECTED WITH THE ELECTRIC TRANSMI SSION SYSTEM OR ELEC TRIC 2 DISTRIBUTION SYSTEM ; 3 (II) COMPLY WITH ALL RELE VANT STATE AND FEDERAL LAW S; 4 AND 5 (III) CONTRIBUTE TO THE STATE’S ENERGY GOALS ; AND 6 (7) REQUIRE A PERSON THA T OWNS OR OPERATES A GENERATING 7 STATION TO SUBMIT AN ANNUAL REPORT TO THE COMMISSION THAT INCLU DES 8 INFORMATION REGARDIN G: 9 (I) THE SOURCE AND AMOUN T OF ENERGY USED AT THE 10 GENERATING STATION ; 11 (II) THE ENVIRONMENTAL IM PACT OF THE GENERATI NG 12 STATION; 13 (III) THE GENERATING STATION’S CONTRIBUTIONS TO STATE 14 ENERGY GOALS THROUGH ENERGY EFFICIENCY OR EMISSIONS REDUCTIONS ; AND 15 (IV) COMPLIANCE WITH OPER ATIONAL STANDARDS FO R THE 16 GENERATING STATION . 17 SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect 18 October 1, 2025. 19