EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
[Brackets] indicate matter deleted from existing law.
*hb1233*
HOUSE BILL 1233
C5, M5 5lr3122
By: Delegates A. Johnson and S. Johnson
Introduced and read first time: February 7, 2025
Assigned to: Economic Matters
A BILL ENTITLED
AN ACT concerning 1
Community Solar Energy Generating Systems – Subscription Eligibility 2
FOR the purpose of authorizing a certain LMI subscriber to hold a subscription to a 3
community solar energy generating system located in a different electric service 4
territory than the one in which the LMI subscriber resides; providing that a certain 5
LMI subscriber shall receive the same bill credit value as an LMI subscriber that 6
resides in a certain electric service territory; requiring the Public Service 7
Commission to establish a process for the exchange of community solar bill credits 8
between community solar energy generating systems that are located in different 9
electric service territories; and generally relating to community solar energy 10
generating systems. 11
BY repealing and reenacting, without amendments, 12
Article – Public Utilities 13
Section 7–306.2(a)(1), (8), (9), (12), and (14), (b), (c), (d)(1) and (2), and (j)(2) 14
Annotated Code of Maryland 15
(2020 Replacement Volume and 2024 Supplement) 16
BY repealing and reenacting, with amendments, 17
Article – Public Utilities 18
Section 7–306.2(a)(4) and (7) and (d)(3) 19
Annotated Code of Maryland 20
(2020 Replacement Volume and 2024 Supplement) 21
BY adding to 22
Article – Public Utilities 23
Section 7–306.2(o) 24
Annotated Code of Maryland 25
(2020 Replacement Volume and 2024 Supplement) 26
2 HOUSE BILL 1233
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 1
That the Laws of Maryland read as follows: 2
Article – Public Utilities 3
7–306.2. 4
(a) (1) In this section the following words have the meanings indicated. 5
(4) “Community solar energy generating system” means a solar energy 6
system that: 7
(i) is connected to the electric distribution grid serving the State; 8
(ii) [is located in the same electric service territory as its subscribers; 9
(iii)] is attached to the electric meter of a subscriber or is a separate 10
facility with its own electric meter; 11
[(iv)] (III) credits its generated electricity, or the value of its 12
generated electricity, to the bills of the subscribers to that system through virtual net 13
energy metering; 14
[(v)] (IV) has at least two subscribers but no limit to the maximum 15
number of subscribers; 16
[(vi)] (V) does not have subscriptions larger than 200 kilowatts 17
constituting more than 60% of its kilowatt–hour output; 18
[(vii)] (VI) has a generating capacity that does not exceed 5 19
megawatts as measured by the alternating current rating of the system’s inverter; 20
[(viii)] (VII) may be owned by any person; and 21
[(ix)] (VIII) with respect to community solar energy generating 22
systems constructed under the Program, serves at least 40% of its kilowatt–hour output to 23
LMI subscribers unless the solar energy system is wholly owned by the subscribers to the 24
solar energy system. 25
(7) “LMI subscriber” means a subscriber that: 26
(i) is low–income; 27
(ii) is moderate–income; or 28
(iii) resides in a census tract that is an: 29 HOUSE BILL 1233 3
1. overburdened community; [and] OR 1
2. underserved community. 2
(8) “Low–income” means: 3
(i) having an annual household income that is at or below 200% of 4
the federal poverty level; or 5
(ii) being certified as eligible for any federal, State, or local 6
assistance program that limits participation to households whose income is at or below 7
200% of the federal poverty level. 8
(9) “Moderate–income” means having an annual household income that is 9
at or below 80% of the median income for Maryland. 10
(12) “Program” means the Community Solar Energy Generating Systems 11
Program. 12
(14) “Subscriber” means a retail customer of an electric company that: 13
(i) holds a subscription to a community solar energy generating 14
system; and 15
(ii) has identified one or more individual meters or accounts to which 16
the subscription shall be attributed. 17
(b) The General Assembly finds that: 18
(1) community solar energy generating systems: 19
(i) provide residents and businesses, including those that lease 20
property, increased access to local solar electricity while encouraging private investment in 21
solar resources; 22
(ii) enhance continued diversification of the State’s energy resource 23
mix to achieve the State’s renewable energy portfolio standard and Greenhouse Gas 24
Emissions Reduction Act goals; and 25
(iii) provide electric companies and ratepayers the opportunity to 26
realize the many benefits associated with distributed energy; and 27
(2) it is in the public interest that the State enable the development and 28
deployment of energy generation from community solar energy generating systems in order 29
to: 30
4 HOUSE BILL 1233
(i) allow renters and low–income and moderate–income retail 1
electric customers to own an interest in a community solar energy generating system; 2
(ii) facilitate market entry for all potential subscribers while giving 3
priority to subscribers who are the most sensitive to market barriers; and 4
(iii) encourage developers to promote participation by renters and 5
low–income and moderate–income retail electric customers. 6
(c) A community solar energy generating system, subscriber, subscriber 7
organization, or subscription coordinator is not: 8
(1) an electric company; 9
(2) an electricity supplier; or 10
(3) a generating station if the generating capacity of the community solar 11
energy generating system does not exceed 2 megawatts. 12
(d) (1) (i) The Commission shall establish and maintain a Community 13
Solar Energy Generating Systems Program. 14
(ii) The structure of the Program is as provided in this subsection. 15
(2) All rate classes may participate in the Program. 16
(3) (I) Subscribers served by electric standard offer service, community 17
choice aggregators, and electricity suppliers may hold subscriptions to the same community 18
solar energy generating system. 19
(II) 1. EXCEPT AS PROVIDED IN SUBSUBPARAGRAPH 2 OF 20
THIS SUBPARAGRAPH , A SUBSCRIBER MUST RE SIDE IN THE SAME ELE CTRIC 21
SERVICE TERRITORY AS THE COMMUNITY SOLAR ENERGY GENERATING SY STEM TO 22
WHICH THE SUBSCRIBER HOLDS A SUBSCRIPTION . 23
2. AN LMI SUBSCRIBER MAY HOLD A SUBSCRIPTION TO 24
A COMMUNITY SOLAR EN ERGY GENERATING SYST EM LOCATED IN A DIFFERENT 25
ELECTRIC SERVICE TER RITORY THAN THE ONE IN WHIC H THE LMI SUBSCRIBER 26
RESIDES. 27
(j) (2) (i) This paragraph applies to electric companies, electric 28
cooperatives, and municipal utilities that participate in the Program. 29
(ii) A subscriber who has a change in the service address associated 30
with the subscriber’s subscription may maintain the subscription for the new address if the 31
new address is within the same electric territory as the old address. 32 HOUSE BILL 1233 5
(iii) An electric company or a subscriber organization may not 1
terminate a subscriber’s subscription due to a change of address for the service address 2
associated with the subscription if the requirements under subparagraph (ii) of this 3
paragraph are met. 4
(iv) An electric company shall make any changes necessary to 5
accommodate a subscriber’s change of address on notification by a subscriber organization. 6
(O) (1) AN LMI SUBSCRIBER THAT RESIDES IN A DIFFERE NT ELECTRIC 7
SERVICE TERRITORY TH AN THE COMMUNITY SOL AR ENERGY GENERATING SYSTEM 8
SHALL RECEIVE THE SA ME BILL CREDIT VALUE AS AN LMI SUBSCRIBER THAT 9
RESIDES IN THE SAME ELECTRIC SERVICE TERRITORY AS THE COMMUNITY SOLAR 10
ENERGY GENERATING SY STEM. 11
(2) BY ORDER OR REGULATIO N, THE COMMISSION SHALL ESTABLISH 12
A PROCESS FOR THE EXCHANGE OF COMMUNITY SOLAR BILL CREDITS BETWEEN 13
COMMUNITY SOLAR ENER GY GENERATING SYSTEM S THAT ARE LOCATED I N 14
DIFFERENT ELECTRIC S ERVICE TERRITORIES. 15
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect 16
October 1, 2025. 17