EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
[Brackets] indicate matter deleted from existing law.
*hb1338*
HOUSE BILL 1338
C5 5lr2798
HB 1367/24 – ECM
By: Delegate Valderrama
Introduced and read first time: February 7, 2025
Assigned to: Economic Matters
A BILL ENTITLED
AN ACT concerning 1
Public Utilities – Certificates of Public Convenience and Necessity – Energy 2
Storage Devices 3
FOR the purpose of requiring a person to obtain a certificate of public convenience and 4
necessity from the Public Service Commission before beginning construction of a 5
certain energy storage device; and generally relating to certificates of public 6
convenience and necessity. 7
BY repealing and reenacting, with amendments, 8
Article – Public Utilities 9
Section 7–207(a), (b)(1), (c)(1), (d)(1)(i), (2), and (3)(ii), (e), and (h)(3) 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. 16
(a) (1) In this section the following words have the meanings indicated. 17
(2) “Brownfields site” means: 18
(i) a former industrial or commercial site identified by federal or 19
State laws or regulation as contaminated or polluted; 20
(ii) a closed landfill regulated by the Department of the 21
Environment; or 22
2 HOUSE BILL 1338
(iii) mined land. 1
(3) (i) “Construction” means: 2
1. any physical change at a site, including fabrication, 3
erection, installation, or demolition; or 4
2. the entry into a binding agreement or contractual 5
obligation to purchase equipment exclusively for use in construction in the State or to 6
undertake a program of actual construction in the State which cannot be canceled or 7
modified without substantial loss to the owner or operator of the proposed generating 8
station. 9
(ii) “Construction” does not include a change that is needed for the 10
temporary use of a site or route for nonutility purposes or for use in securing geological 11
data, including any boring that is necessary to ascertain foundation conditions. 12
(4) “ENERGY STORAGE DEVICE ” MEANS A RESOURCE THA T: 13
(I) IS CAPABLE OF ABSORB ING ELECTRICAL ENERG Y, STORING 14
IT FOR A PERIOD OF T IME, AND DELIVERING THE E NERGY FOR USE AT A L ATER TIME 15
AS NEEDED, REGARDLESS OF WHERE THE RESOURCE IS LOCATED ON THE ELECTRIC 16
DISTRIBUTION SYSTEM ; 17
(II) HAS A MINIMUM ENERGY STORAGE CAPACITY OF 2 18
MEGAWATT S; AND 19
(III) IS INSTALLED IN FRON T OF THE METER . 20
(5) “Generating station” does not include: 21
(i) a generating unit or facility that: 22
1. is used for the production of electricity; 23
2. has the capacity to produce not more than 2 megawatts of 24
alternating current; and 25
3. is installed with equipment that prevents the flow of 26
electricity to the electric grid during time periods when the electric grid is out of service; 27
(ii) a combination of two or more generating units or facilities that: 28
1. are used for the production of electricity from a solar 29
photovoltaic system or an eligible customer–generator that is subject to the provisions of § 30
7–306 of this title; 31 HOUSE BILL 1338 3
2. are located on the same property or adjacent properties; 1
3. have the capacity to produce, when calculated 2
cumulatively for all generating units or facilities on the property or adjacent property, more 3
than 2 megawatts but not more than 14 megawatts of alternating current; and 4
4. for each individual generating unit or facility: 5
A. has the capacity to produce not more than 2 megawatts of 6
alternating current; 7
B. is separately metered by the electric company; and 8
C. does not export electricity for sale on the wholesale market 9
under an agreement with PJM Interconnection, LLC; 10
(iii) a generating unit or facility that: 11
1. is used for the production of electricity for the purpose of: 12
A. onsite emergency backup at a facility when service from 13
the electric company is interrupted due to electric distribution or transmission system 14
failure or when there is equipment failure at a site where critical infrastructure is located; 15
and 16
B. test and maintenance operations necessary to ensure 17
functionality of the generating unit or facility in the event of a service interruption from 18
the electric company due to electric distribution or transmission system failure or when 19
there is equipment failure at a site where critical infrastructure is located; 20
2. is installed with equipment that prevents the flow of 21
electricity to the electric grid; 22
3. is subject to a permit to construct issued by the 23
Department of the Environment; and 24
4. is installed at a facility that is part of critical 25
infrastructure if the facility complies with all applicable regulations regarding noise level 26
and testing hours; or 27
(iv) a combination of two or more generating units or facilities that 28
satisfy item (iii) of this paragraph. 29
[(5)] (6) (i) “Mined land” means the surface or subsurface of an area 30
in which surface mining operations will be, are being, or have been conducted. 31
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(ii) “Mined land” includes: 1
1. private ways and roads used for mining appurtenant to 2
any surface mining area; 3
2. land excavations; 4
3. workings; and 5
4. overburden. 6
[(6)] (7) “Qualified generator lead line” means an overhead transmission 7
line that is designed to carry a voltage in excess of 69,000 volts and would allow an 8
out–of–state Tier 1 or Tier 2 renewable source to interconnect with a portion of the electric 9
system in Maryland that is owned by an electric company. 10
(b) (1) (i) Unless a certificate of public convenience and necessity for the 11
construction is first obtained from the Commission, a person may not begin construction in 12
the State of: 13
1. a generating station; [or] 14
2. a qualified generator lead line; OR 15
3. AN ENERGY STORAGE DE VICE. 16
(ii) If a person obtains Commission approval for construction under 17
§ 7–207.1 of this subtitle, the Commission shall exempt a person from the requirement to 18
obtain a certificate of public convenience and necessity under this section. 19
(iii) Notwithstanding subparagraph (i) of this paragraph, a person 20
may not apply to obtain a certificate of public convenience and necessity for construction of 21
a qualified generator lead line unless: 22
1. at least 90 days before the filing of an application for a 23
certificate of public convenience and necessity, the person had in good faith offered the 24
electric company that owns that portion of the electric grid in Maryland to which the 25
qualified generator lead line would interconnect a full and fair opportunity for the electric 26
company to construct the qualified generator lead line; and 27
2. at any time at least 10 days before the filing of an 28
application for a certificate of public convenience and necessity, the electric company: 29
A. did not accept from the person a proposal or a negotiated 30
version of the proposal under which the electric company would construct the qualified 31
generator lead line; or 32
HOUSE BILL 1338 5
B. stated in writing that the electric company did not intend 1
to construct the qualified generator lead line. 2
(c) (1) On receipt of an application for a certificate of public convenience and 3
necessity under this section, the Commission shall provide notice immediately or require 4
the applicant to provide notice immediately of the application to: 5
(i) the Department of Planning; 6
(ii) the governing body, and if applicable the executive, of each 7
county or municipal corporation in which any portion of the generating station, overhead 8
transmission line, [or] qualified generator lead line, OR ENERGY STORAGE DE VICE is 9
proposed to be constructed; 10
(iii) the governing body, and if applicable the executive, of each 11
county or municipal corporation within 1 mile of the proposed location of the generating 12
station, overhead transmission line, [or] qualified generator lead line, OR ENERGY 13
STORAGE DEVICE ; 14
(iv) each member of the General Assembly representing any part of 15
a county in which any portion of the generating station, overhead transmission line, [or] 16
qualified generator lead line, OR ENERGY STORAGE DE VICE is proposed to be constructed; 17
(v) each member of the General Assembly representing any part of 18
each county within 1 mile of the proposed location of the generating station, overhead 19
transmission line, [or] qualified generator lead line, OR ENERGY STORAGE DE VICE; 20
(vi) for a proposed overhead transmission line, each owner of land 21
and each owner of adjacent land; and 22
(vii) all other interested persons. 23
(d) (1) (i) The Commission shall provide an opportunity for public 24
comment and hold a public hearing on the application for a certificate of public convenience 25
and necessity in each county and municipal corporation in which any portion of the 26
construction of a generating station, an overhead transmission line designed to carry a 27
voltage in excess of 69,000 volts, [or] a qualified generator lead line, OR AN ENERGY 28
STORAGE DEVICE is proposed to be located. 29
(2) The Commission shall hold the public hearing jointly with the 30
governing body of the county or municipal corporation in which any portion of the 31
construction of the generating station, overhead transmission line, [or] qualified generator 32
lead line, OR ENERGY STORAGE DE VICE is proposed to be located, unless the governing 33
body declines to participate in the hearing. 34
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(3) (ii) Before a public hearing, the Commission shall coordinate with 1
the governing body of the county or municipal corporation in which any portion of the 2
construction of the generating station, overhead transmission line, [or] qualified generator 3
lead line, OR ENERGY STORAGE DEVICE is proposed to be located to identify additional 4
options for providing, in an efficient and cost–effective manner, notice of the public hearing 5
through other types of media that are familiar to the residents of the county or municipal 6
corporation. 7
(e) The Commission shall take final action on an application for a certificate of 8
public convenience and necessity only after due consideration of: 9
(1) the recommendation of the governing body of each county or municipal 10
corporation in which any portion of the construction of the generating station, overhead 11
transmission line, [or] qualified generator lead line, OR ENERGY STORAGE DE VICE is 12
proposed to be located; 13
(2) the effect of the generating station, overhead transmission line, [or] 14
qualified generator lead line, OR ENERGY STORAGE DE VICE on: 15
(i) the stability and reliability of the electric system; 16
(ii) economics; 17
(iii) esthetics; 18
(iv) historic sites; 19
(v) aviation safety as determined by the Maryland Aviation 20
Administration and the administrator of the Federal Aviation Administration; 21
(vi) when applicable, air quality and water pollution; and 22
(vii) the availability of means for the required timely disposal of 23
wastes produced by any generating station; 24
(3) the effect of climate change on the generating station, overhead 25
transmission line, [or] qualified generator lead line, OR ENERGY STORAGE DE VICE based 26
on the best available scientific information recognized by the Intergovernmental Panel on 27
Climate Change; and 28
(4) for a generating station: 29
(i) the consistency of the application with the comprehensive plan 30
and zoning of each county or municipal corporation where any portion of the generating 31
station is proposed to be located; 32
HOUSE BILL 1338 7
(ii) the efforts to resolve any issues presented by a county or 1
municipal corporation where any portion of the generating station is proposed to be located; 2
(iii) the impact of the generating station on the quantity of annual 3
and long–term statewide greenhouse gas emissions, measured in the manner specified in § 4
2–1202 of the Environment Article and based on the best available scientific information 5
recognized by the Intergovernmental Panel on Climate Change; and 6
(iv) the consistency of the application with the State’s climate 7
commitments for reducing statewide greenhouse gas emissions, including those specified 8
in Title 2, Subtitle 12 of the Environment Article. 9
(h) (3) A county or municipal corporation may not condition the approval of a 10
local permit required under a certificate of public convenience and necessity issued under 11
this section on receipt of any of the following approvals for any aspect of a generating 12
station, an overhead transmission line, [or] a qualified lead line, OR AN ENERGY STORAGE 13
DEVICE proposed to be constructed under the certificate: 14
(i) a conditional use approval; 15
(ii) a special exception approval; or 16
(iii) a floating zone approval. 17
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall be construed to 18
apply only prospectively and may not be applied or interpreted to have any effect on or 19
application to the construction of any energy storage device before the effective date of this 20
Act. 21
SECTION 3. AND BE IT FURTHER ENACTED, That this Act shall take effect 22
October 1, 2025. 23