Maryland 2025 Regular Session

Maryland House Bill HB398 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1
2	2
3	3	EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
4	4	[Brackets] indicate matter deleted from existing law.
5	5	hb0398
6	6
7	7	HOUSE BILL 398
8	8	C5, P2, Q7 5lr0850
9	9	CF SB 316
10	10	By: Delegate Charkoudian
11	11	Introduced and read first time: January 16, 2025
12	12	Assigned to: Economic Matters
13	13
14	14	A BILL ENTITLED
15	15
16	16	AN ACT concerning 1
17	17
18	18	Abundant Affordable Clean Energy – Procurement and Development 2
19	19	(AACE Act) 3
20	20
21	21	FOR the purpose of requiring each electric company in the State to submit to the Public 4
22	22	Service Commission by certain dates plans for the construction or procurement of 5
23	23	distribution–connected energy storage devices and to construct or procure the 6
24	24	devices in accordance with the plan; providing for the creation of zero–emission 7
25	25	credits by beneficial nuclear facilities; requiring the Commission to pursue certain 8
26	26	coordinated approaches to offshore wind energy transmission development; altering 9
27	27	the requirements for a certain transmission system analysis and the scope of certain 10
28	28	transmission proposals that the Commission may evaluate; repealing a certain draft 11
29	29	solicitation requirement; requiring that certain alternative compliance fees be paid 12
30	30	into a certain escrow account rather than into the Maryland Strategic Energy 13
31	31	Investment Fund; requiring that renewable energy credits be procured in a certain 14
32	32	order; establishing the Utility–Scale SREC–II Program and the Small Solar 15
33	33	Facilities Incentive Program for the creation of SREC–II credits; establishing certain 16
34	34	processes and requirements for the procurement of certain front–of–the–meter 17
35	35	transmission energy storage devices and certain credits from certain solar, 18
36	36	hydroelectric, and land–based wind energy generating systems; requiring the 19
37	37	Commission to establish and the Maryland Energy Administration to supervise a 20
38	38	certain escrow account; authorizing certain units of State government to issue 21
39	39	certain competitive sealed bids for projects that are higher than the amount 22
40	40	authorized for small procurements; authorizing the Chief Procurement Officer to 23
41	41	approve certain procurement contracts; altering the distribution of sales and use tax 24
42	42	revenue attributable to certain data centers; altering the distribution of franchise 25
43	43	tax revenue attributable to certain data centers; and generally relating to the 26
44	44	procurement and development of clean energy resources. 27
45	45
46	46	BY repealing and reenacting, with amendments, 28
47	47	Article – Public Utilities 29 2 HOUSE BILL 398
48	48
49	49
50	50	Section 7–207(b)(1), 7–216(a), 7–704.3(a), (b), and (e)(2), 7–704.4(e), 7–705(b), and 1
51	51	7–709(b) 2
52	52	Annotated Code of Maryland 3
53	53	(2020 Replacement Volume and 2024 Supplement) 4
54	54
55	55	BY adding to 5
56	56	Article – Public Utilities 6
57	57	Section 7–216.2; 7–231 through 7–235 to be under the new part “Part III. 7
58	58	Zero–Emission Credits”; 7–701(m–1), 7–709.2, and 7–709.3; and 7–1201 8
59	59	through 7–1221 to be under the new subtitle “Subtitle 12. Energy 9
60	60	Procurement” 10
61	61	Annotated Code of Maryland 11
62	62	(2020 Replacement Volume and 2024 Supplement) 12
63	63
64	64	BY repealing and reenacting, without amendments, 13
65	65	Article – Public Utilities 14
66	66	Section 7–701(a) and (m), 7–704.3(c), 7–704.4(d), 7–709(a), and 7–709.1(a) 15
67	67	Annotated Code of Maryland 16
68	68	(2020 Replacement Volume and 2024 Supplement) 17
69	69
70	70	BY repealing and reenacting, with amendments, 18
71	71	Article – State Finance and Procurement 19
72	72	Section 13–102(a) 20
73	73	Annotated Code of Maryland 21
74	74	(2021 Replacement Volume and 2024 Supplement) 22
75	75
76	76	BY adding to 23
77	77	Article – State Finance and Procurement 24
78	78	Section 13–117 25
79	79	Annotated Code of Maryland 26
80	80	(2021 Replacement Volume and 2024 Supplement) 27
81	81
82	82	BY repealing and reenacting, without amendments, 28
83	83	Article – State Government 29
84	84	Section 9–20B–05(a) 30
85	85	Annotated Code of Maryland 31
86	86	(2021 Replacement Volume and 2024 Supplement) 32
87	87
88	88	BY repealing and reenacting, with amendments, 33
89	89	Article – State Government 34
90	90	Section 9–20B–05(e) and (i–1) 35
91	91	Annotated Code of Maryland 36
92	92	(2021 Replacement Volume and 2024 Supplement) 37
93	93
94	94	BY repealing 38
95	95	Article – State Government 39
96	96	Section 9–20B–05(g–1) and (i) 40 HOUSE BILL 398 3
97	97
98	98
99	99	Annotated Code of Maryland 1
100	100	(2021 Replacement Volume and 2024 Supplement) 2
101	101
102	102	BY repealing and reenacting, with amendments, 3
103	103	Article – Tax – General 4
104	104	Section 2–1201 and 2–1303 5
105	105	Annotated Code of Maryland 6
106	106	(2022 Replacement Volume and 2024 Supplement) 7
107	107
108	108	BY adding to 8
109	109	Article – Tax – General 9
110	110	Section 2–1302.5 10
111	111	Annotated Code of Maryland 11
112	112	(2022 Replacement Volume and 2024 Supplement) 12
113	113
114	114	BY repealing and reenacting, without amendments, 13
115	115	Article – Tax – General 14
116	116	Section 11–239(a)(1), (2), and (5) 15
117	117	Annotated Code of Maryland 16
118	118	(2022 Replacement Volume and 2024 Supplement) 17
119	119
120	120	SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 18
121	121	That the Laws of Maryland read as follows: 19
122	122
123	123	Article – Public Utilities 20
124	124
125	125	7–207. 21
126	126
127	127	(b) (1) (i) Unless a certificate of public convenience and necessity for the 22
128	128	construction is first obtained from the Commission, a person may not begin construction in 23
129	129	the State of: 24
130	130
131	131	1. a generating station; or 25
132	132
133	133	2. a qualified generator lead line. 26
134	134
135	135	(ii) If a person obtains Commission approval for construction under 27
136	136	§ 7–207.1 of this subtitle OR SUBTITLE 12, PART II OF THIS TITLE, the Commission shall 28
137	137	exempt a person from the requirement to obtain a certificate of public convenience and 29
138	138	necessity under this section. 30
139	139
140	140	(iii) Notwithstanding subparagraph (i) of this paragraph, a person 31
141	141	may not apply to obtain a certificate of public convenience and necessity for construction of 32
142	142	a qualified generator lead line unless: 33
143	143
144	144	1. at least 90 days before the filing of an application for a 34
145	145	certificate of public convenience and necessity, the person had in good faith offered the 35 4 HOUSE BILL 398
146	146
147	147
148	148	electric company that owns that portion of the electric grid in Maryland to which the 1
149	149	qualified generator lead line would interconnect a full and fair opportunity for the electric 2
150	150	company to construct the qualified generator lead line; and 3
151	151
152	152	2. at any time at least 10 days before the filing of an 4
153	153	application for a certificate of public convenience and necessity, the electric company: 5
154	154
155	155	A. did not accept from the person a proposal or a negotiated 6
156	156	version of the proposal under which the electric company would construct the qualified 7
157	157	generator lead line; or 8
158	158
159	159	B. stated in writing that the electric company did not intend 9
160	160	to construct the qualified generator lead line. 10
161	161
162	162	7–216. 11
163	163
164	164	(a) (1) In this section the following words have the meanings indicated. 12
165	165
166	166	(2) (i) “Energy storage device” means a resource capable of absorbing 13
167	167	electrical energy, storing it for a period of time, and delivering the energy for use at a later 14
168	168	time as needed, regardless of where the resource is located on the electric [distribution] 15
169	169	system. 16
170	170
171	171	(ii) “Energy storage device” includes all types of electric storage 17
172	172	technologies, regardless of their size, storage medium, or operational purpose, including: 18
173	173
174	174	1. thermal storage; 19
175	175
176	176	2. electrochemical storage; 20
177	177
178	178	3. [virtual power plants ] THERMO–MECHANICAL 21
179	179	STORAGE; and 22
180	180
181	181	4. hydrogen–based storage. 23
182	182
183	183	(3) “Investor–owned electric company” means an electric company that is 24
184	184	not a municipal electric utility or an electric cooperative. 25
185	185
186	186	7–216.2. 26
187	187
188	188	(A) IN THIS SECTION , “ENERGY STORAGE DEVIC E” HAS THE MEANING 27
189	189	STATED IN § 7–216 OF THIS SUBTITLE. 28
190	190
191	191	(B) (1) THE GENERAL ASSEMBLY FINDS AND DE CLARES THAT THE 29
192	192	STATE HAS A GOAL OF R EACHING 150 MEGAWATTS OF DISTRIB UTION–CONNECTED 30
193	193	ENERGY STORAGE DEVIC ES. 31 HOUSE BILL 398 5
194	194
195	195
196	196
197	197	(2) ON OR BEFORE JULY 1, 2025, AND ON OR BEFORE JULY 1, 2026, 1
198	198	THE COMMISSION SHALL NOTI FY EACH ELECTRIC COM PANY OF ITS PROPORTI ON OF 2
199	199	THE GOAL ESTABLISHED UNDER THIS SUBSECTIO N, BASED ON THE ELECTRIC 3
200	200	COMPANY’S SERVICE LOAD. 4
201	201
202	202	(C) (1) ON OR BEFORE NOVEMBER 1, 2025, AND ON OR BEFORE 5
203	203	NOVEMBER 1, 2026, THE COMMISSION SHALL REQU IRE EACH ELECTRIC CO MPANY 6
204	204	TO DEVELOP AND IMPLE MENT A PLAN TO ACHIEVE THE PROPORTION OF 7
205	205	DISTRIBUTION–CONNECTED ENERGY STO RAGE DEVICES NECESSARY TO REACH THE 8
206	206	ELECTRIC COMPANY ’S APPORTIONMENT OF T HE GOAL STATED IN SU BSECTION (B) 9
207	207	OF THIS SECTION. 10
208	208
209	209	(2) ON OR BEFORE MARCH 1, 2026, FOR PLANS SUBMITTED BY 11
210	210	NOVEMBER 1, 2025, AND ON OR BEFORE MARCH 1, 2027, FOR PLANS SUBMITTED BY 12
211	211	NOVEMBER 1, 2026, THE COMMISSION SHALL : 13
212	212
213	213	(I) EVALUATE EACH PLAN ; 14
214	214
215	215	(II) ACCEPT PUBLIC COMMENTS ON E ACH PLAN; AND 15
216	216
217	217	(III) ISSUE AN ORDER FOR EAC H PLAN THAT EITHER : 16
218	218
219	219	1. APPROVES THE PLAN ; OR 17
220	220
221	221	2. APPROVES THE PLAN WI TH MODIFICATIONS THA T 18
222	222	THE COMMISSION CONSIDERS NECESSARY. 19
223	223
224	224	(3) THE ENERGY STORAGE DEVICES CONSTRUCTED OR PROCURED 20
225	225	UNDER EACH PLAN SHAL L INCLUDE A COMBINAT ION OF DEVICES OWNED BY THE 21
226	226	ELECTRIC COMPANY AND DEVICES OWNED BY A T HIRD PARTY, WITH NOT MORE 22
227	227	THAN 30% OF THE DEVICES BEING OWNED BY A THI RD PARTY. 23
228	228
229	229	(4) (I) THE ENERGY STORAGE DE VICES THAT ARE CONST RUCTED 24
230	230	OR PROCURED UNDER A PLAN SUBMITTED BY NOVEMBER 1, 2025, SHALL BE 25
231	231	OPERATIONAL BY AUGUST 1, 2027. 26
232	232
233	233	(II) THE ENERGY STORAGE DE VICES THAT ARE CONSTRU CTED 27
234	234	OR PROCURED UNDER A PLAN SUBMITTED BY NOVEMBER 1, 2026, SHALL BE 28
235	235	OPERATIONAL BY AUGUST 1, 2028. 29
236	236
237	237	(III) THE COMMISSION MAY EXTEND A DEADLINE UNDER THI S 30
238	238	PARAGRAPH FOR GOOD C AUSE. 31 6 HOUSE BILL 398
239	239
240	240
241	241
242	242	(D) THE COMMISSION SHALL REQU IRE EACH PLAN TO DEMONSTRATE THAT 1
243	243	THE CONSTRUCTION OR PROCUREMENT OF EACH ENERGY STORAGE DEVIC E: 2
244	244
245	245	(1) IS BENEFICIAL IN TERMS OF COST, INCLUDING A DEMONSTRATION 3
246	246	OF ANY: 4
247	247
248	248	(I) AVOIDED OR DELAYED T RANSMISSION, DISTRIBUTION, AND 5
249	249	GENERATION COSTS ; AND 6
250	250
251	251	(II) AVOIDED EMISSIONS; AND 7
252	252
253	253	(2) CAN BE COMPLETED WITHIN 18 MONTHS AFTER THE PLAN IS 8
254	254	APPROVED. 9
255	255
256	256	(E) (1) A DEVELOPER OF A THIRD–PARTY–OWNED ENERGY STORAGE 10
257	257	DEVICE CONSTRUCTED IN ACCORDANCE WITH T HIS SECTION SHALL EN SURE THAT 11
258	258	WORKERS ARE PAID NOT LESS THAN THE PREVAILING WAGE RATE DETERMINED 12
259	259	UNDER TITLE 17, SUBTITLE 2 OF THE STATE FINANCE AND PROCUREMENT 13
260	260	ARTICLE. 14
261	261
262	262	(2) AN ENERGY STORAGE DEVIC E CONSTRUCTED AND OWNE D BY AN 15
263	263	ELECTRIC COMPANY SHALL BE CONSTRUCTED BY: 16
264	264
265	265	(I) EMPLOYEES OF THE ELECTRIC COMPANY ; OR 17
266	266
267	267	(II) CONTRACTORS THAT SHA LL ENSURE THAT WORKE RS 18
268	268	CONSTRUCTING THE ENE RGY STORAGE DEVICE A RE PAID NOT LESS THAN THE 19
269	269	PREVAILING WAGE RATE DETERMINED UNDER TITLE 17, SUBTITLE 2 OF THE STATE 20
270	270	FINANCE AND PROCUREMENT ARTICLE. 21
271	271
272	272	(3) AN ELECTRIC COMPANY S HALL PROVIDE ITS EMPLOYEE 22
273	273	BARGAINING UNIT AN O PPORTUNITY TO PROVID E MAINTENANCE AND OP ERATIONS 23
274	274	FOR ANY ENERGY STORA GE DEVICE OWNED BY T HE ELECTRIC COMPANY . 24
275	275
276	276	(4) (I) SUBJECT TO SUBPARAGRA PH (II) OF THIS PARAGRAPH , AN 25
277	277	ELECTRIC COMPANY MAY CONTRACT ANY WORK UN DER THIS SECTION NOT 26
278	278	CONDUCTED BY THE COM PANY’S EMPLOYEE BARGAININ G UNIT TO A QUALIFIE D 27
279	279	CONTRACTOR . 28
280	280
281	281	(II) AN ELECTRIC COMPANY S HALL REQUIRE A CONTR ACTOR 29
282	282	OR SUBCONTRACT OR ON A PROJECT UNDER T HIS SECTION TO: 30
283	283	HOUSE BILL 398 7
284	284
285	285
286	286	1. PAY THE AREA PREVAIL ING WAGE RATE DETERM INED 1
287	287	BY THE COMMISSIONER OF LABOR AND INDUSTRY, INCLUDING WAGES AND FRINGE 2
288	288	BENEFITS; AND 3
289	289
290	290	2. OFFER HEALTH CARE AN D RETIREMENT BENEFIT S TO 4
291	291	THE EMPLOYEES WORKIN G ON THE PROJECT . 5
292	292
293	293	7–229. RESERVED. 6
294	294
295	295	7–230. RESERVED. 7
296	296
297	297	PART III. ZERO–EMISSION CREDITS. 8
298	298
299	299	7–231. 9
300	300
301	301	(A) IN THIS PART THE FOLL OWING WORDS HAVE THE MEANINGS 10
302	302	INDICATED. 11
303	303
304	304	(B) “BENEFICIAL NUCLEAR FA CILITY” MEANS A NUCLEAR REAC TOR THAT 12
305	305	IS LOCATED IN AND PR OVIDES ENVIRONMENTAL BENEFITS TO THE STATE. 13
306	306
307	307	(C) “ZERO–EMISSION CREDIT ” OR “ZEC” MEANS A PAYMENT EQUAL TO THE 14
308	308	GENERATION ATTRIBUTE S OF 1 MEGAWATT –HOUR OF ELECTRICITY THAT IS 15
309	309	DERIVED FROM A BENEF ICIAL NUCLEAR FACILI TY. 16
310	310
311	311	7–232. 17
312	312
313	313	(A) SUBJECT TO SUBSECTION (B) OF THIS SECTION, A BENEFICIAL NUCLEAR 18
314	314	FACILITY MAY SUBMIT AN APPLICATIO N TO THE COMMISSION TO RECEIVE 19
315	315	ZERO–EMISSION CREDITS . 20
316	316
317	317	(B) (1) A BENEFICIAL NUCLEAR F ACILITY MAY NOT RECE IVE 21
318	318	ZERO–EMISSION CREDITS DUR ING ANY PERIOD IN WH ICH THE FACILITY RECEIVES 22
319	319	ZERO–EMISSION NUCLEAR POW ER PRODUCTION TAX CREDI TS UNDER § 13105 OF 23
320	320	THE INFLATION REDUCTION ACT OF 2022. 24
321	321
322	322	(2) THE COMMISSION MAY NOT OF FER ZERO–EMISSION CREDITS 25
323	323	AFTER 2055. 26
324	324
325	325	(3) TO BE ELIGIBLE TO REC EIVE A ZERO –EMISSION CREDIT , A 27
326	326	BENEFICIAL NUCLEAR F ACILITY MUST MAINTAIN A NEUTRAL POSITION IN ANY 28
327	327	LABOR ORGANIZING THA T TAKES PLACE AT THE FACIL ITY. 29
328	328	8 HOUSE BILL 398
329	329
330	330
331	331	7–233. 1
332	332
333	333	(A) AFTER NOTICE AND AN OPPORTUNITY FOR A HE ARING, THE 2
334	334	COMMISSION SHALL APPR OVE OR DENY AN APPLI CATION SUBMITTED UNDER § 3
335	335	7–232 OF THIS SUBTITLE WITHIN 9 MONTHS AFTER THE APPLICATIO N IS FILED. 4
336	336
337	337	(B) THE COMMISSION MAY APPROVE AN APPLICATI ON: 5
338	338
339	339	(1) IN WHOLE OR IN PART ; AND 6
340	340
341	341	(2) SUBJECT TO ANY LIMITATIONS AND QUAL IFICATIONS THAT THE 7
342	342	COMMISSION CONSIDERS NECESSARY AND IN THE PUBLIC IN TEREST. 8
343	343
344	344	7–234. 9
345	345
346	346	(A) SUBJECT TO SUBSECTION (B) OF THIS SECTION , THE PRICE FOR A 10
347	347	ZERO–EMISSION CREDIT SHALL BE EQUAL TO [$15/MWH – 80% X (GROSS 11
348	348	RECEIPTS – $25/MWH)]. 12
349	349
350	350	(B) THE $15/MWH AND $25/MWH CALCULATIONS SHALL BE ADJUSTED FOR 13
351	351	INFLATION. 14
352	352
353	353	7–235. 15
354	354
355	355	(A) THE COMMISSION SHALL ADOP T REGULATIONS TO IMP LEMENT THIS 16
356	356	PART NOT LATER THAN 365 DAYS BEFORE THE EXPIRATION OF TH E AVAILABILITY 17
357	357	OF ZERO–EMISSION NUCLEAR POW ER PRODUCTION TAX CR EDITS UNDER § 13105 OF 18
358	358	THE INFLATION REDUCTION ACT OF 2022. 19
359	359
360	360	(B) THE REGULATIONS SHALL : 20
361	361
362	362	(1) INCLUDE DATA SUBMISSION REQU IREMENTS NECESSARY T O 21
363	363	EVALUATE A BENEFICIAL NUCLEAR FACILITY’S PROJECTED ENVIRONMEN TAL 22
364	364	BENEFITS AND ANNUAL GROSS RECEIPTS ; AND 23
365	365
366	366	(2) PROVIDE FOR THE RECA PTURE OF THE ALLOCAT ION OF ANY 24
367	367	ZERO–EMISSION CREDIT WITHIN THE PR EVIOUS 3 YEARS TO A BENEFICIAL NUCLEAR 25
368	368	FACILITY THAT PERMANENTLY TER MINATES OPERATIONS , EXCEPT IN THE CASE O F 26
369	369	FORCE MAJEURE. 27
370	370
371	371	7–701. 28
372	372
373	373	(a) In this subtitle the following words have the meanings indicated. 29
374	374	HOUSE BILL 398 9
375	375
376	376
377	377	(m) “Renewable energy credit” or “credit” means a credit equal to the generation 1
378	378	attributes of 1 megawatt–hour of electricity that is derived from a Tier 1 renewable source 2
379	379	or a Tier 2 renewable source that is located: 3
380	380
381	381	(1) in the PJM region; 4
382	382
383	383	(2) outside the area described in item (1) of this subsection but in a control 5
384	384	area that is adjacent to the PJM region, if the electricity is delivered into the PJM region; 6
385	385	or 7
386	386
387	387	(3) on the outer continental shelf of the Atlantic Ocean in an area that: 8
388	388
389	389	(i) the United States Department of the Interior designates for 9
390	390	leasing after coordination and consultation with the State in accordance with § 388(a) of 10
391	391	the Energy Policy Act of 2005; and 11
392	392
393	393	(ii) is between 10 and 80 miles off the coast of the State. 12
394	394
395	395	(M–1) “RENEWABLE ENERGY CRED IT–II” OR “REC–II” MEANS A 13
396	396	RENEWABLE ENERGY C REDIT THAT IS DERIVE D FROM AN ENERGY GENERATING 14
397	397	SYSTEM PROCURED IN ACCORDANCE WITH SUBTITLE 12 OF THIS TITLE. 15
398	398
399	399	7–704.3. 16
400	400
401	401	(a) (1) The General Assembly finds and declares that it is: 17
402	402
403	403	(I) in the public interest to upgrade and expand the transmission 18
404	404	system to accommodate the buildout of at least 8,500 megawatts of offshore wind energy 19
405	405	from qualified offshore wind projects serving the State by 2031; AND 20
406	406
407	407	(II) THE PUBLIC POLICY OF THE STATE TO ENGAGE IN 21
408	408	COORDINATED TRANSMIS SION PLANNING TO SUP PORT OFFSHORE WIND ENERGY ON 22
409	409	A MULTISTATE, REGIONAL, OR INTER–REGIONAL BASIS . 23
410	410
411	411	(2) TO FURTHER THE PUBLIC POLICY STATED IN PARAGRAPH (1)(II) 24
412	412	OF THIS SUBSECTION , THE COMMISSION SHALL PURSUE ONE OF THE FOLLOWING 25
413	413	COORDINATED APPROACH ES TO THE TRANSMISSION OF ENER GY DERIVED FROM 26
414	414	OFFSHORE WIND : 27
415	415
416	416	(I) PJM INTERCONNECTION ’S LONG–TERM TRANSMISSION 28
417	417	PLANNING PROCESS ; OR 29
418	418
419	419	(II) AN ALTERNATIVE VOLUN TARY AGREEMENT . 30
420	420	10 HOUSE BILL 398
421	421
422	422
423	423	(b) (1) To meet the goals established under § 7–703 of this subtitle and 1
424	424	subsection (a) of this section, the Commission, in consultation with the Maryland Energy 2
425	425	Administration, shall request that PJM Interconnection conduct an analysis of 3
426	426	transmission system upgrade and expansion options that take into consideration both 4
427	427	onshore and offshore infrastructure. 5
428	428
429	429	(2) The Commission: 6
430	430
431	431	(i) shall consult with other states served by PJM Interconnection to 7
432	432	evaluate regional transmission cooperation that could help achieve the State’s renewable 8
433	433	energy and offshore wind energy goals with greater efficiency; 9
434	434
435	435	(ii) shall work with PJM Interconnection to ensure that the analysis 10
436	436	requested under paragraph (1) of this subsection includes an analysis of solutions that: 11
437	437
438	438	1. use an open–access collector transmission system to allow 12
439	439	for the interconnection of multiple qualified offshore wind projects at a single [substation] 13
440	440	OR AT MULTIPLE SUBSTATIONS LOCATED IN OR NEAR THE DELMARVA PENINSULA; 14
441	441
442	442	2. TO THE EXTENT POSSIBLE, USE UPGRADES TO 15
443	443	EXISTING TRANSMISSIO N SYSTEMS BEFORE CON SIDERING NEW TRANSMISSION 16
444	444	SYSTEM ELEMENTS, INCLUDING USING UPGRADES TO THE EXIS TING 138 KILOVOLTS 17
445	445	AND 230 KILOVOLTS TRANSMISSION ELEMENT S IN THE DELMARVA PENINSULA TO 18
446	446	HIGHER VOLTAGE LEVEL S; 19
447	447
448	448	3. SUPPORT 8,500 MEGAWATTS OF OFFSHORE WIND 20
449	449	ENERGY GENERATION TO SERVE THE STATE’S LOAD EITHER THROUG H INTRASTATE 21
450	450	TRANSMISSION UPGRADE S OR INTERSTATE TRAN SMISSION UPGRADES BE TWEEN 22
451	451	THE STATE AND DELAWARE; 23
452	452
453	453	[2.] 4. avoid a significant outage, or single contingency, of any 24
454	454	part of the transmission system; 25
455	455
456	456	[3.] 5. reduce permitting risks, impacts on communities, and 26
457	457	unnecessary high costs; 27
458	458
459	459	[4. leverage existing infrastructure; 28
460	460
461	461	5.] 6. offer benefits that address additional grid challenges; and 29
462	462
463	463	[6.] 7. address any other issues that the Commission identifies; 30
464	464	[and] 31
465	465
466	466	(iii) SHALL ENSURE THE COMPLETIO N OF A COST–BENEFIT 32
467	467	ANALYSIS OF VARIOUS APPROACHE S FOR UPGRADING AND EXPAND ING THE 33 HOUSE BILL 398 11
468	468
469	469
470	470	TRANSMISSION SYSTEM TO MEET THE STATE’S OFFSHORE WIND ENERGY TARGETS 1
471	471	AND ENERGY NEEDS , INCLUDING: 2
472	472
473	473	1. AN ANALYSIS OF THE FOLLOWING THREE SCENARIOS: 3
474	474
475	475	A. INTERCONNECTING OFFS HORE WIND FACILITIES TO 4
476	476	THE PJM INTERCONNECTION SYSTEM ON A RADIAL B ASIS, BASED ON STUDY 5
477	477	ESTIMATES OF PAST RADIAL INTER CONNECTION COSTS AND FUTURE PROJECTED 6
478	478	RADIAL INTERCONNECTI ON COSTS; 7
479	479
480	480	B. A COORDINATED TRANSMIS SION SOLUTION THAT 8
481	481	CONNECTS ENERGY DERIVED FROM OFFSHORE WIN D DIRECTLY TO MAJOR LO AD 9
482	482	CENTERS IN THE STATE; AND 10
483	483
484	484	C. A COORDINATED TRANSM ISSION SOLUTION THAT 11
485	485	DOES NOT CONNECT ENERGY DERIV ED FROM OFFSHORE WIN D DIRECTLY TO MAJOR 12
486	486	LOAD CENTERS IN THE STATE; AND 13
487	487
488	488	2. AN ECONOMIC ANALYSIS THAT CONSIDERS, OVER THE 14
489	489	EXPECTED LIFE OF EAC H FACILITY: 15
490	490
491	491	A. THE COSTS OF ANY TRA NSMISSION CONSTRUCTION 16
492	492	OR UPGRADES THAT ARE AVOIDED BY ANY NEW OFFSHORE WIN D ENERGY 17
493	493	GENERATION AND TRANSMISSION DEV ELOPMENT; 18
494	494
495	495	B. ANY PRODUCTION COST SAVINGS THAT RESULT FROM 19
496	496	MEETING THE STATE’S OFFSHORE WIND ENERGY TARGETS; 20
497	497
498	498	C. ANY REDUCTION IN TRA NSMISSION LOSSES ; 21
499	499
500	500	D. CHANGES IN TOTAL PJM INTERCONNECTION 22
501	501	MARKET COSTS ; 23
502	502
503	503	E. ENVIRONMENTAL BENEFI TS; 24
504	504
505	505	F. RELIABILITY BENEFITS ; AND 25
506	506
507	507	G. ANY OTHER BENEFITS O R COSTS IDENTIFIED BY THE 26
508	508	COMMISSION; AND 27
509	509
510	510	(IV) may consult with owners of transmission facilities in the State to 28
511	511	gather relevant technical information. 29
512	512	12 HOUSE BILL 398
513	513
514	514
515	515	(3) The Commission may enter into any necessary agreements with PJM 1
516	516	Interconnection for transmission planning to: 2
517	517
518	518	(i) initiate PJM Interconnection’s analysis; or 3
519	519
520	520	(ii) assist with the solicitation of proposals for offshore wind 4
521	521	transmission projects. 5
522	522
523	523	(4) On or before July 1, 2024, the Commission shall submit a status update 6
524	524	on the analysis requested under paragraph (1) of this subsection to the General Assembly, 7
525	525	in accordance with § 2–1257 of the State Government Article. 8
526	526
527	527	(c) (1) On or before July 1, 2025, the Commission shall issue, or request that 9
528	528	PJM Interconnection issue, one or more competitive solicitations for proposals for open 10
529	529	access offshore wind transmission facilities and complementary onshore transmission 11
530	530	upgrades and expansions. 12
531	531
532	532	(2) The Commission may issue, or request that PJM Interconnection issue, 13
533	533	further solicitations for proposals after this date if determined necessary by the 14
534	534	Commission. 15
535	535
536	536	(e) (2) The Commission may evaluate, or request that PJM Interconnection 16
537	537	assist with the evaluation of, proposals that include: 17
538	538
539	539	(i) upgrading the existing transmission grid AND DEPLOYING 18
540	540	ADVANCED TRANSMISSIO N TECHNOLOGIES ; 19
541	541
542	542	(ii) extending the existing transmission grid onshore and offshore to 20
543	543	be closer to offshore wind energy locations; 21
544	544
545	545	(iii) interconnecting between offshore substations; 22
546	546
547	547	(iv) adding energy storage; and 23
548	548
549	549	(v) the use of HVDC converter technology to support potential 24
550	550	weaknesses in the transmission grid. 25
551	551
552	552	7–704.4. 26
553	553
554	554	(d) (1) The State shall: 27
555	555
556	556	(i) issue a draft solicitation for procurement of offshore wind energy 28
557	557	for public comment and review on or before June 1, 2024; 29
558	558
559	559	(ii) issue a procurement for offshore wind energy on or before July 30
560	560	31, 2024; 31
561	561	HOUSE BILL 398 13
562	562
563	563
564	564	(iii) provide a procurement submission process window of not less 1
565	565	than 180 days; and 2
566	566
567	567	(iv) award contracts in a timely manner. 3
568	568
569	569	(2) (i) Subject to subparagraph (ii) of this paragraph, on or before 4
570	570	September 1, 2025, the State may enter into a contract or contracts for the procurement 5
571	571	issued under paragraph (1) of this subsection. 6
572	572
573	573	(ii) The State may modify the date established in subparagraph (i) 7
574	574	of this paragraph if an unforeseen circumstance adversely affects the procurement 8
575	575	submission process. 9
576	576
577	577	(e) (1) In addition to the solicitation and procurement issued under subsection 10
578	578	(d) of this section, the State[: 11
579	579
580	580	(i) shall issue a draft solicitation for procurement of offshore wind 12
581	581	energy for public comment and review on or before September 1, 2025; and 13
582	582
583	583	(ii)] shall issue a procurement for offshore wind energy on or before 14
584	584	December 31, 2025. 15
585	585
586	586	(2) Subject to paragraph (3) of this subsection and in addition to any 16
587	587	contract entered into under subsection (d) of this section, on or before March 31, 2027, the 17
588	588	State may enter into a contract or contracts for the procurement issued under paragraph 18
589	589	(1) of this subsection. 19
590	590
591	591	(3) The State may modify the date established in paragraph (2) of this 20
592	592	subsection if an unforeseen circumstance adversely affects the procurement submission 21
593	593	process. 22
594	594
595	595	7–705. 23
596	596
597	597	(b) (1) This subsection does not apply to a shortfall from the required Tier 1 24
598	598	renewable sources that is to be derived from post–2022 geothermal systems. 25
599	599
600	600	(2) [If] BEGINNING OCTOBER 1, 2025, IF an electricity supplier fails to 26
601	601	comply with the renewable energy portfolio standard for the applicable year, the electricity 27
602	602	supplier shall pay into the [Maryland Strategic Energy Investment Fund established under 28
603	603	§ 9–20B–05 of the State Government Article] ESCROW ACCOUNT ESTAB LISHED UNDER 29
604	604	PARAGRAPH (4) OF THIS SUBSECTION : 30
605	605
606	606	(i) except as provided in item (ii) of this paragraph, a compliance fee 31
607	607	of: 32
608	608	14 HOUSE BILL 398
609	609
610	610
611	611	1. the following amounts for each kilowatt–hour of shortfall 1
612	612	from required Tier 1 renewable sources other than the shortfall from the required Tier 1 2
613	613	renewable sources that is to be derived from solar energy: 3
614	614
615	615	A. 4 cents through 2016; 4
616	616
617	617	B. 3.75 cents in 2017 and 2018; 5
618	618
619	619	C. 3 cents in 2019 through 2023; 6
620	620
621	621	D. 2.75 cents in 2024; 7
622	622
623	623	E. 2.5 cents in 2025; 8
624	624
625	625	F. 2.475 cents in 2026; 9
626	626
627	627	G. 2.45 cents in 2027; 10
628	628
629	629	H. 2.25 cents in 2028 and 2029; and 11
630	630
631	631	I. 2.235 cents in 2030 and later; 12
632	632
633	633	2. the following amounts for each kilowatt–hour of shortfall 13
634	634	from required Tier 1 renewable sources that is to be derived from solar energy: 14
635	635
636	636	A. 45 cents in 2008; 15
637	637
638	638	B. 40 cents in 2009 through 2014; 16
639	639
640	640	C. 35 cents in 2015 and 2016; 17
641	641
642	642	D. 19.5 cents in 2017; 18
643	643
644	644	E. 17.5 cents in 2018; 19
645	645
646	646	F. 10 cents in 2019; 20
647	647
648	648	G. 10 cents in 2020; 21
649	649
650	650	H. 8 cents in 2021; 22
651	651
652	652	I. 6 cents in 2022; 23
653	653
654	654	J. 6 cents in 2023; 24
655	655
656	656	K. 6 cents in 2024; 25
657	657	HOUSE BILL 398 15
658	658
659	659
660	660	L. 5.5 cents in 2025; 1
661	661
662	662	M. 4.5 cents in 2026; 2
663	663
664	664	N. 3.5 cents in 2027; 3
665	665
666	666	O. 3.25 cents in 2028; 4
667	667
668	668	P. 2.5 cents in 2029; and 5
669	669
670	670	Q. 2.25 cents in 2030 and later; and 6
671	671
672	672	3. 1.5 cents for each kilowatt–hour of shortfall from required 7
673	673	Tier 2 renewable sources; or 8
674	674
675	675	(ii) for industrial process load: 9
676	676
677	677	1. for each kilowatt–hour of shortfall from required Tier 1 10
678	678	renewable sources, a compliance fee of: 11
679	679
680	680	A. 0.8 cents in 2006, 2007, and 2008; 12
681	681
682	682	B. 0.5 cents in 2009 and 2010; 13
683	683
684	684	C. 0.4 cents in 2011 and 2012; 14
685	685
686	686	D. 0.3 cents in 2013 and 2014; 15
687	687
688	688	E. 0.25 cents in 2015 and 2016; and 16
689	689
690	690	F. except as provided in paragraph (3) of this subsection, 0.2 17
691	691	cents in 2017 and later; and 18
692	692
693	693	2. nothing for any shortfall from required Tier 2 renewable 19
694	694	sources. 20
695	695
696	696	(3) For industrial process load, the compliance fee for each kilowatt–hour 21
697	697	of shortfall from required Tier 1 renewable sources is nothing for the year following any 22
698	698	year during which, after final calculations, the net rate impact per megawatt–hour from 23
699	699	Round 1 offshore wind projects exceeded $1.65 in 2012 dollars. 24
700	700
701	701	(4) (I) SUBJECT TO ANY ESCROW ACCOUNT RESERVE 25
702	702	REQUIREMENT THE COMMISSION ESTABLISHES, THE COMPLIANCE FEES PAID INTO 26
703	703	THE ESCROW ACCOUNT E STABLISHED IN ACCORD ANCE WITH THIS SUBSE CTION 27
704	704	SHALL BE DISTRIBUTED TO ELECTRIC COMPANIE S TO BE REFUNDED OR CREDITED 28
705	705	TO EACH DISTRIBUTION CUSTOMER BASED ON TH E CUSTOMER’S CONSUMPTION OF 29 16 HOUSE BILL 398
706	706
707	707
708	708	ELECTRICITY SUPPLY THAT IS SUBJECT TO THE RENEWABLE ENERGY PORTFOLIO 1
709	709	STANDARD. 2
710	710
711	711	(II) THE PROCESS UNDER SUBPARAGRAPH (I) OF THIS 3
712	712	PARAGRAPH RELATED TO THE REFUN DING OR CREDITING OF AMOUNTS TO 4
713	713	DISTRIBUTION CUSTOME RS SHALL BE DIRECTED AN D OVERSEEN BY THE 5
714	714	COMMISSION. 6
715	715
716	716	(5) THE COMMISSION SHALL ADOP T REGULATIONS TO IMP LEMENT 7
717	717	THIS SUBSECTION , INCLUDING: 8
718	718
719	719	(I) THE ESTABLISHMENT OF AN ESCROW ACCOUNT TO BE 9
720	720	UNDER, SUBJECT TO PARAGRAPH (4)(II) OF THIS SUBSECTION , THE SUPERVISION OF 10
721	721	THE MARYLAND ENERGY ADMINISTRATION ; AND 11
722	722
723	723	(II) DEFINING RULES TO FA CILITATE AND ENSURE THE SECURE 12
724	724	AND TRANSPARENT TRAN SFER OF COMPLIANCE FEE PAYMENTS TO ELECTRIC 13
725	725	COMPANIES TO BE DIST RIBUTED BACK TO DIST RIBUTION CUSTOMERS . 14
726	726
727	727	7–709. 15
728	728
729	729	(a) An electricity supplier may use accumulated renewable energy credits to meet 16
730	730	the renewable energy portfolio standard, including credits created by a renewable on–site 17
731	731	generator. 18
732	732
733	733	(b) (1) (I) IN THIS SUBSECTION TH E FOLLOWING WORDS HA VE THE 19
734	734	MEANINGS INDICATED. 20
735	735
736	736	(II) “CERTIFIED SREC” HAS THE MEANING STAT ED IN § 21
737	737	7–709.1 OF THIS SUBTITLE . 22
738	738
739	739	(III) “SREC–II” HAS THE MEANING STAT ED IN § 7–709.2 OF THIS 23
740	740	SUBTITLE. 24
741	741
742	742	(2) A renewable energy credit may be sold or otherwise transferred. 25
743	743
744	744	(3) AN ELECTRICITY SUPPLIER THAT PROCURE S RENEWABLE 26
745	745	ENERGY CREDITS TO MEET THE RENEWABL E ENERGY PORTFOLIO S TANDARD SHALL 27
746	746	PROCURE CREDITS TO M EET THE STANDARD IN THE FOLLOWING ORDER : 28
747	747
748	748	(I) FIRST, ORECS, REC–IIS, AND SREC–IIS; 29
749	749
750	750	(II) SECOND, CERTIFIED SRECS; AND 30
751	751	HOUSE BILL 398 17
752	752
753	753
754	754	(III) THIRD, RENEWABLE ENERGY CREDITS OTHER THAN 1
755	755	ORECS, REC–IIS, SREC–IIS, AND CERTIFIED SRECS. 2
756	756
757	757	7–709.1. 3
758	758
759	759	(a) (1) In this section the following words have the meanings indicated. 4
760	760
761	761	(2) “Brownfield” has the meaning stated in § 7–207 of this title. 5
762	762
763	763	(3) “Certified SREC” means a solar renewable energy credit generated by 6
764	764	a certified system. 7
765	765
766	766	(4) “Certified system” means a solar energy generating system certified by 8
767	767	the Commission under the Program to generate certified SRECs with the compliance value 9
768	768	specified in subsection (c) of this section. 10
769	769
770	770	(5) “Program” means the Small Solar Energy Generating System Incentive 11
771	771	Program. 12
772	772
773	773	7–709.2. 13
774	774
775	775	(A) (1) IN THIS SECTION THE F OLLOWING WORDS HAVE THE MEANINGS 14
776	776	INDICATED. 15
777	777
778	778	(2) “PROGRAM” MEANS THE UTILITY–SCALE SREC–II PROGRAM. 16
779	779
780	780	(3) “QUALIFYING SMALL SYST EM” HAS THE MEANING STAT ED IN 17
781	781	§ 7–709.3 OF THIS SUBTITLE. 18
782	782
783	783	(4) “QUALIFYING SYSTEM ” MEANS A UTILITY –SCALE SOLAR ENERGY 19
784	784	GENERATING SYSTEM CE RTIFIED TO GENERATE SREC–IIS. 20
785	785
786	786	(5) “SREC–II” MEANS A SOLAR RENEWABLE ENER GY CREDIT EQUAL 21
787	787	TO THE GENERATION AT TRIBUTES OF 1 MEGAWATT –HOUR OF ELECTRICITY THAT IS 22
788	788	DERIVED FROM A QUALI FYING SYSTEM OR A QU ALIFYING SMALL SYSTE M. 23
789	789
790	790	(6) “UTILITY–SCALE SOLAR ENERGY GENERATI NG SYSTEM” MEANS A 24
791	791	SOLAR PHOTOVOLTAIC S YSTEM THAT HAS A GENERATIN G CAPACITY THAT EXCE EDS 25
792	792	5 MEGAWATTS , AS MEASURED BY THE A LTERNATING CURRENT R ATING OF THE 26
793	793	SYSTEM’S INVERTER. 27
794	794
795	795	(B) THERE IS A UTILITY–SCALE SREC–II PROGRAM IN THE COMMISSION. 28
796	796	18 HOUSE BILL 398
797	797
798	798
799	799	(C) THE PROGRAM SHALL PROVIDE INCENTIVES FOR THE D EVELOPMENT 1
800	800	OF AT LEAST 3,000 MEGAWATTS OF NEW UTILITY –SCALE SOLAR GENERATI ON BY 2
801	801	2035. 3
802	802
803	803	(D) (1) UNDER THE PROGRAM, A QUALIFYING SYSTEM SHALL GENERATE 4
804	804	SREC–IIS. 5
805	805
806	806	(2) A QUALIFYING SYSTEM THAT GENERATES SREC–IIS UNDER THE 6
807	807	PROGRAM MAY NOT SIMULTANEOUS LY RECEIVE REC–IIS, RECS, OR ANY OTHER 7
808	808	EQUIVALENT CERTIFICATES. 8
809	809
810	810	(3) EXCEPT AS OTHERWISE PROVIDED IN THIS SECTION , THE 9
811	811	PROVISIONS OF THIS S UBTITLE RELATING TO RENEWABLE ENERGY CRE DITS SHALL 10
812	812	APPLY TO SREC–IIS GENERATED UNDER THE PROGRAM. 11
813	813
814	814	(4) AN SREC–II GENERATED UNDER THE PROGRAM MAY BE 12
815	815	APPLIED ONLY TOWARD MEETING THE R ENEWABLE ENERGY PORT FOLIO STANDARD 13
816	816	BEGINNING WITH THE Y EAR IN WHICH THE SREC–II IS GENERATED. 14
817	817
818	818	(E) THE COMMISSION SHALL ADOP T REGULATIONS TO IMPLEMENT THIS 15
819	819	SECTION, INCLUDING REGULATION S TO ESTABLISH REQUI REMENTS FOR 16
820	820	CERTIFICATION AS A Q UALIFYING SYSTEM UND ER THE PROGRAM. 17
821	821
822	822	7–709.3. 18
823	823
824	824	(A) (1) IN THIS SECTION THE F OLLOWING WORDS HAVE THE MEANINGS 19
825	825	INDICATED. 20
826	826
827	827	(2) “ADMINISTRATIVELY DETE RMINED INCENTIVE” MEANS THE 21
828	828	MONETARY VALUE OF AN SREC–II GENERATED BY A QUALIFYING SMALL SYSTEM 22
829	829	UNDER THE PROGRAM. 23
830	830
831	831	(3) “CAPACITY BLOCK ” MEANS THE MAXIMUM AMOUNT OF 24
832	832	GENERATING CAPACITY , MEASURED IN MEGAWATTS , THAT THE COMMISSION 25
833	833	DETERMINES CAN BE ALLOTTED TO A SPECIFIC MARKET SEGM ENT FOR A GIVEN 26
834	834	INCENTIVE YEAR . 27
835	835
836	836	(4) “COMMUNITY SOLAR ENERG Y GENERATING SYSTEM ” HAS THE 28
837	837	MEANING STATED IN § 7–306.2 OF THIS TITLE. 29
838	838
839	839	(5) “ELIGIBLE CUSTOMER –GENERATOR ” HAS THE MEANING STAT ED 30
840	840	IN § 7–306 OF THIS TITLE. 31
841	841	HOUSE BILL 398 19
842	842
843	843
844	844	(6) “MARKET SEGMENT ” MEANS THE GROUP CLASSIFICA TION FOR 1
845	845	THE TYPE OF SMALL SOLAR ENERGY GENERAT ING SYSTEM S ELIGIBLE FOR 2
846	846	CERTIFICATION UNDER THE PROGRAM. 3
847	847
848	848	(7) “NET METERED SOLAR ENERGY GENERATING SYSTEM” MEANS A 4
849	849	SMALL SOLAR ENERGY GENERATING SYSTEM US ED BY AN ELIGIBLE 5
850	850	CUSTOMER–GENERATOR FOR NET ME TERING IN ACCORDANCE WITH § 7–306 OF 6
851	851	THIS TITLE. 7
852	852
853	853	(8) “PROGRAM” MEANS THE SMALL SOLAR FACILITIES INCENTIVE 8
854	854	PROGRAM. 9
855	855
856	856	(9) “PROJECT OFF–TAKER” MEANS THE END USER O F SREC–IIS 10
857	857	THAT ARE GENERATED BY A QUALI FYING SMALL SYSTEM. 11
858	858
859	859	(10) “QUALIFYING SMALL SYST EM” MEANS A SMALL SOLAR ENERGY 12
860	860	GENERATING SYSTEM CERTIFIED TO GENERAT E SREC–IIS UNDER THE PROGRAM. 13
861	861
862	862	(11) “SMALL SOLAR ENERGY GENERATI NG SYSTEM ” MEANS A 14
863	863	PHOTOVOLTAIC SYSTEM THAT HAS A GENERATING CAPACITY OF 5 MEGAWATTS OR 15
864	864	LESS, AS MEASURED BY THE A LTERNATING CURRENT R ATING OF THE SYSTEM ’S 16
865	865	INVERTER. 17
866	866
867	867	(12) “SREC–II” HAS THE MEANING STAT ED IN § 7–709.2 OF THIS 18
868	868	SUBTITLE. 19
869	869
870	870	(B) (1) THERE IS A SMALL SOLAR FACILITIES INCENTIVE PROGRAM. 20
871	871
872	872	(2) THE COMMISSION SHALL ADMI NISTER THE PROGRAM. 21
873	873
874	874	(C) THE PROGRAM SHALL PROVIDE INCENTIVES FOR THE D EVELOPMENT 22
875	875	OF, BY 2035, AT LEAST 3,000 MEGAWATTS OF NEW SOL AR ENERGY GENERATION BY 23
876	876	OWNERS OF SMALL SOLAR ENERGY GENERATING SYSTEMS T HAT ARE: 24
877	877
878	878	(1) COMMUNI TY SOLAR ENERGY GENE RATING SYSTEMS ; OR 25
879	879
880	880	(2) NET METERED SOLAR EN ERGY GENERATING SYST EMS. 26
881	881
882	882	(D) (1) THE COMMISSION SHALL ESTA BLISH ELIGIBILITY CR ITERIA AND 27
883	883	AN APPLICATION PROCE SS BY WHICH AN OWNER OF A SMALL SOLAR ENERGY 28
884	884	GENERATING SYSTEM MAY APPLY TO BECOME A QUALIFYING SMALL SYSTEM AND 29
885	885	GENERATE SREC–IIS UNDER THE PROGRAM. 30
886	886	20 HOUSE BILL 398
887	887
888	888
889	889	(2) IN ADDITION TO ANY REQUIREMENTS ESTABLISHED BY THE 1
890	890	COMMISSION UNDER PARA GRAPH (1) OF THIS SUBSECTION , TO BE ELIGIBLE UNDER 2
891	891	THE PROGRAM, A SMALL SOLAR ENERGY GENERATING SYSTEM SHALL : 3
892	892
893	893	(I) BE LOCATED IN THE STATE; 4
894	894
895	895	(II) BE ELIGIBLE FOR INCL USION IN MEETING THE RENEWABLE 5
896	896	ENERGY PORTFOLIO STA NDARD; 6
897	897
898	898	(III) HAVE A GENERATING CA PACITY OF 5 MEGAWATTS OR LESS , 7
899	899	AS MEASURED BY THE A LTERNATING CURRENT RATING OF THE SYSTEM ’S INVERTER; 8
900	900
901	901	(IV) BE PLACED IN SERVICE ON OR AFTER JULY 1, 2027; AND 9
902	902
903	903	(V) BE BENEFICIAL TO THE ELECTRIC DISTRIBUTION SYSTEM IN 10
904	904	THE STATE. 11
905	905
906	906	(E) ON OR BEFORE JANUARY 1, 2028, THE PROGRAM SHALL BEGIN 12
907	907	ACCEPTING APPLICATIO NS FROM QUALIFYING SMALL SYS TEMS TO FULFILL 13
908	908	CAPACITY WITHIN A CA PACITY BLOCK ON A FI RST–COME, FIRST–SERVED BASIS. 14
909	909
910	910	(F) (1) ON OR BEFORE JANUARY 1, 2027, AND EVERY 3 YEARS 15
911	911	THEREAFTER , THE COMMISSION SHALL ESTABLISH AN ADMINISTRATIVELY 16
912	912	DETERMINED INCENTIVE AND ANNUAL CAPACITY BLOCK FOR EACH OF THE 17
913	913	FOLLOWING MARKET SEG MENTS UNDER THE PROGRAM: 18
914	914
915	915	(I) BEHIND–THE–METER RESIDENTIAL ; 19
916	916
917	917	(II) BEHIND–THE–METER NONRESIDENTIAL ; 20
918	918
919	919	(III) AGGREGATED NET METER ING; AND 21
920	920
921	921	(IV) COMMUNITY SOLAR . 22
922	922
923	923	(2) AT ANY TIME A FTER PROVIDING PUBLIC NOTICE THE 23
924	924	COMMISSION MAY ADJUST THE ADMIN ISTRATIVELY DETERMIN ED INCENTIVE AND 24
925	925	ANNUAL CAPACITY BLOCKS IF THE COMMISSION DETERMINES AN ADJUSTMENT IS 25
926	926	NECESSARY. 26
927	927
928	928	(3) THE ADMINISTRATIVELY DETERMINED INCENTIVE FOR A 27
929	929	QUALIFIED SMALL SYST EM SHALL BE FIXED FO R 15 YEARS AT THE AMOUNT OF THE 28
930	930	ADMINISTRATIVELY DET ERMINED INCENTIVE TH AT WAS ESTABLISHED I N THE YEAR 29 HOUSE BILL 398 21
931	931
932	932
933	933	IN WHICH THE QUALIFY ING SMALL SYSTEM WAS CONSTRUCTED OR RECEI VED 1
934	934	CERTIFICATION AS A Q UALIFYING SMALL SYST EM, WHICHEVER IS LATER . 2
935	935
936	936	(4) (I) IN ESTABLISHING AN ADMINISTRATIVELY DET ERMINED 3
937	937	INCENTIVE AND ANNUAL CAPACITY BLOCKS UNDER PARAGRAPH (1) OF THIS 4
938	938	SUBSECTION, THE COMMISSION SHALL BALA NCE THE NEED FOR CON TINUED 5
939	939	MARKET DEVELOPMENT F OR EACH MARKET SEGME NT WHILE LIMITING THE 6
940	940	PROJECTED NET RATE IMPACT FOR ALL CUSTOMERS TO 5% OF THE TOTAL 7
941	941	ELECTRICITY BILL OVE R THE DURATION OF TH E PROGRAM. 8
942	942
943	943	(II) THE NET RATE IMPACT C ALCULATIONS SHALL TA KE INTO 9
944	944	ACCOUNT ANY COSTS AN D BENEFITS ATTRIBUTA BLE TO THE PROGRAM AS 10
945	945	DETERMINED BY THE COMMISSION, INCLUDING: 11
946	946
947	947	1. ENERGY GENERATED ; 12
948	948
949	949	2. THE CAPACITY OF QUALIFYING SMALL SYS TEMS IN 13
950	950	THE PROGRAM; AND 14
951	951
952	952	3. THE TRANSMISSION AND DISTRIBUTION OF THE 15
953	953	ENERGY THROUGH THE TRANSMISSION AND DIS TRIBUTION SYSTEMS. 16
954	954
955	955	(G) IN DETERMINING THE AD MINISTRATIVELY DETERMINED INCENTIVE 17
956	956	FOR EACH MARKET SEGM ENT UNDER SUBSECTION (F)(1) OF THIS SECTION , THE 18
957	957	COMMISSION SHALL : 19
958	958
959	959	(1) FOR EACH MARKET SEGM ENT, CONSIDER PRICE DIFFE RENTIALS 20
960	960	BASED ON THE FOLLOWI NG CRITERIA: 21
961	961
962	962	(I) PROJECT SIZE; 22
963	963
964	964	(II) PROJECT OFF–TAKER TYPE; 23
965	965
966	966	(III) PROJECT LOCATION ; AND 24
967	967
968	968	(IV) ELECTRIC COMPANY SER VICE TERRITORY ; 25
969	969
970	970	(2) ESTABLISH MONETARY V ALUES THAT ENCOURAGE MARKET 26
971	971	DEVELOPMENT WHILE BA LANCING RATEPAYER IN TERESTS; AND 27
972	972
973	973	(3) STRIVE TO ACHIEVE MA RKET DIVERSITY , INCLUDING 28
974	974	GEOGRAPHIC DIVERS ITY AND PROJECT OFF –TAKER DIVERSITY . 29
975	975	22 HOUSE BILL 398
976	976
977	977
978	978	(H) IN ESTABLISHING THE CAPACITY BLOCK FOR EACH MARKET SEGM ENT 1
979	979	UNDER SUBSECTION (F)(1) OF THIS SECTION, THE COMMISSION SHALL : 2
980	980
981	981	(1) ENABLE MEANINGFUL AN D CONTINUED MARKET G ROWTH FOR 3
982	982	EACH MARKET SEGMENT ; 4
983	983
984	984	(2) CONSIDER THE VALUE OF REDU CING ELECTRICITY DEMAND AND 5
985	985	THE COST OF INSTALLING GENERATIN G CAPACITY ON THE TRANSMISSION AND 6
986	986	DISTRIBUTION SYSTEMS; AND 7
987	987
988	988	(3) FOR THE BEHIND –THE–METER RESIDENTIAL MA RKET SEGMENT , 8
989	989	ENSURE THAT THE NEXT CAPACITY BLOCK IS ESTABLISHED AS SOON AS 9
990	990	REASONABLY POSSIBLE AFTER THE CURRENT CAPACITY BLOCK HAS BEEN FULLY 10
991	991	RESERVED. 11
992	992
993	993	(I) (1) A QUALIFYING SMALL SYS TEM THAT GENERATES SREC–IIS 12
994	994	UNDER THIS PROGRAM MAY NOT SIMUL TANEOUSLY RECEIVE REC–IIS, RECS, OR 13
995	995	ANY OTHER EQUIVALENT CREDITS. 14
996	996
997	997	(2) EXCEPT AS OTHERWISE P ROVIDED IN SECTION , THE PROVISIONS 15
998	998	OF THIS SUBTITLE REL ATING TO RENEWABLE E NERGY CREDITS SHALL APPLY TO 16
999	999	SREC–IIS GENERATED UNDER TH E PROGRAM. 17
1000	1000
1001	1001	(3) AN SREC–II GENERATED UNDER THE PROGRAM MAY BE 18
1002	1002	APPLIED ONLY TOWARD MEETING THE R ENEWABL E ENERGY PORTFOLIO S TANDARD 19
1003	1003	BEGINNING WITH THE Y EAR IN WHICH THE SREC–II IS GENERATED. 20
1004	1004
1005	1005	SUBTITLE 12. ENERGY PROCUREMENT . 21
1006	1006
1007	1007	PART I. DEFINITIONS; GENERAL PROVISIONS. 22
1008	1008
1009	1009	7–1201. 23
1010	1010
1011	1011	(A) IN THIS SUBTITLE THE FOLLOWING WORDS HAVE THE MEANINGS 24
1012	1012	INDICATED. 25
1013	1013
1014	1014	(B) “EFFECTIVE NAMEPLATE C APACITY” MEANS THE AMOUNT OF ENERGY 26
1015	1015	AN ENERGY STORAGE DE VICE CAN DELIVER CON TINUOUSLY TO THE ELE CTRIC 27
1016	1016	DISTRIBUTION SYSTEM OVER A 4–HOUR PERIOD . 28
1017	1017
1018	1018	(C) “ENERGY STORAGE DEVICE ” HAS THE MEANING STAT ED IN § 7–216 OF 29
1019	1019	THIS TITLE. 30
1020	1020	HOUSE BILL 398 23
1021	1021
1022	1022
1023	1023	(D) “REC–II” HAS THE MEANING STAT ED IN § 7–701 OF THIS TITLE. 1
1024	1024
1025	1025	(E) “REC–II PAYMENT” MEANS THE MONETARY V ALUE OF A REC–II 2
1026	1026	GENERATED AND SOLD B Y AN ENERGY GENERATING SY STEM AWARDED A CONTRACT 3
1027	1027	IN ACCORDANCE WITH T HIS SUBTITLE. 4
1028	1028
1029	1029	7–1202. 5
1030	1030
1031	1031	(A) AN APPLICATION FOR A PROPOSED PROJECT UND ER THIS SUBTITLE IS 6
1032	1032	SUBJECT TO A COMMUNI TY BENEFIT AGREEMENT . 7
1033	1033
1034	1034	(B) A COMMUNITY BENEFIT AG REEMENT SHALL : 8
1035	1035
1036	1036	(1) PROMOTE INCREASED OP PORTUNITIES FOR LOCA L BUSINESSES 9
1037	1037	AND SMALL, MINORITY, WOMEN–OWNED, AND VETERAN –OWNED BUSINESSES IN THE 10
1038	1038	CLEAN ENERGY INDUSTR Y; 11
1039	1039
1040	1040	(2) ENSURE THE TIMELY , SAFE, AND EFFICIENT COMPLE TION OF THE 12
1041	1041	PROJECT BY: 13
1042	1042
1043	1043	(I) FACILITATING A STEAD Y SUPPLY OF HIGHLY S KILLED 14
1044	1044	CRAFT WORKERS WHO SH ALL BE PAID NOT LESS THAN THE PREVAILING WAGE RATE 15
1045	1045	DETERMINED BY THE COMMISSIONER OF LABOR AND INDUSTRY UNDER TITLE 17, 16
1046	1046	SUBTITLE 2 OF THE STATE FINANCE AND PROCUREMENT ARTICLE; AND 17
1047	1047
1048	1048	(II) GUARANTEEING THAT TH E CONSTRUCTION WORK 18
1049	1049	PERFORMED IN CONNECT ION WITH THE PROJECT WILL BE SUBJECT TO A N 19
1050	1050	AGREEMENT THAT : 20
1051	1051
1052	1052	1. ESTABLISHES THE TERMS AND CONDITIONS OF 21
1053	1053	EMPLOYMENT AT THE CO NSTRUCTION SITE OF T HE PROJECT OR A PORT ION OF THE 22
1054	1054	PROJECT; 23
1055	1055
1056	1056	2. GUARANTEES AGAINST S TRIKES, LOCKOUTS, AND 24
1057	1057	SIMILAR DISRUPTIONS ; 25
1058	1058
1059	1059	3. ENSURES THAT ALL WOR K ON THE PROJECT FUL LY 26
1060	1060	CONFORMS TO ALL RELEVANT STATE AND FEDERAL LAW S, RULES, AND 27
1061	1061	REGULATIONS , INCLUDING ALL REQUIR ED TRAINING FOR EMPL OYEES; 28
1062	1062
1063	1063	4. CREATES MUTUALLY BIN DING PROCEDURES FOR 29
1064	1064	RESOLVING LABOR DISP UTES ARISING DURING THE TERM OF THE PROJ ECT; 30
1065	1065	24 HOUSE BILL 398
1066	1066
1067	1067
1068	1068	5. SETS FORTH OTHER MEC HANISMS FO R 1
1069	1069	LABOR–MANAGEMENT COOPERATI ON ON MATTERS OF MUT UAL INTEREST AND 2
1070	1070	CONCERN, INCLUDING PRODUCTIVI TY, QUALITY OF WORK , SAFETY, AND HEALTH ; 3
1071	1071	AND 4
1072	1072
1073	1073	6. BINDS ALL CONTRACTOR S AND SUBCONTRACTORS TO 5
1074	1074	THE TERMS OF THE AGR EEMENT THROUGH THE I NCLUSION OF APPROPRI ATE 6
1075	1075	PROVISIONS IN ALL RE LEVANT SOLICITATION AND CONTRACT DOCUMEN TS; 7
1076	1076
1077	1077	(3) PROMOTE SAFE COMPLET ION OF THE PROJECT B Y ENSURING 8
1078	1078	THAT AT LEAST 80% OF THE CRAFT WORKERS ON THE PROJECT HAVE COMPLETED 9
1079	1079	AN OCCUPATIONAL SAFETY AND HEALTH ADMINISTRATION 10–HOUR COURSE ; 10
1080	1080
1081	1081	(4) PROMOTE CAREER TRAIN ING OPPORTUNITIES IN THE 11
1082	1082	MANUFACTURING , MAINTENANCE , AND CONSTRUCTION IND USTRIES FOR LOCAL 12
1083	1083	RESIDENTS, VETERANS, WOMEN, MINORITIES, AND FORMERLY INCARCE RATED 13
1084	1084	INDIVIDUALS; 14
1085	1085
1086	1086	(5) INCLUDE PROVISIONS F OR LOCAL HIRING AND THE HIRING O F 15
1087	1087	HISTORICALLY DISADVA NTAGED GROUPS ; 16
1088	1088
1089	1089	(6) USE LOCALLY , SUSTAINABLY, AND DOMESTICALLY 17
1090	1090	MANUFACTURED CONSTRU CTION MATERIALS AND COMPONENTS TO THE EX TENT 18
1091	1091	PRACTICABLE ; 19
1092	1092
1093	1093	(7) REQUIRE THE USE OF S KILLED LOCAL LABOR , PARTICULARLY 20
1094	1094	WITH REGARD TO THE C ONSTRUCTION AND MANUFACTURING CO MPONENTS OF THE 21
1095	1095	PROJECT, USING METHODS INCLUD ING OUTREACH , HIRING, OR REFERRAL 22
1096	1096	METHODS THAT ARE AFF ILIATED WITH REGISTE RED APPRENTICESHIP P ROGRAMS 23
1097	1097	UNDER TITLE 11, SUBTITLE 4 OF THE LABOR AND EMPLOYMENT ARTICLE; AND 24
1098	1098
1099	1099	(8) AUTHORIZE THE MARYLAND DEPARTMENT OF LABOR AND THE 25
1100	1100	COMMISSION TO CONSIDE R, REVIEW, AND ENFORCE A STORAG E DEVELOPER OR 26
1101	1101	ENERGY DEVELOPER ’S COMPLIANCE WITH AN Y COMMUNITY BENEFIT AGREEMENT . 27
1102	1102
1103	1103	7–1203. 28
1104	1104
1105	1105	THE COMMISSION MAY CONTRA CT FOR THE SERVICES OF INDEPENDENT 29
1106	1106	CONSULTANTS AND EXPERTS TO IMPLEMENT AND EXECUT E ANY PART OF THIS 30
1107	1107	SUBTITLE. 31
1108	1108
1109	1109	7–1204. RESERVED. 32
1110	1110	HOUSE BILL 398 25
1111	1111
1112	1112
1113	1113	7–1205. RESERVED. 1
1114	1114
1115	1115	PART II. TRANSMISSION ENERGY STORAGE DEVICES. 2
1116	1116
1117	1117	7–1206. 3
1118	1118
1119	1119	(A) THE GENERAL ASSEMBLY FINDS AND DE CLARES THAT THE STATE HAS 4
1120	1120	A GOAL OF REACHING 1,600 MEGAWATTS OF FRONT –OF–THE–METER TRANSMISSION 5
1121	1121	ENERGY STORAGE DEVIC ES. 6
1122	1122
1123	1123	(B) THE COMMISSION SHALL , BY REGULATION OR ORD ER, ESTABLISH A 7
1124	1124	COMPETITIVE PROCESS FOR THE PROCUREMENT OF PROJECTS FOR THE 8
1125	1125	CONSTRUCTION AND DEP LOYMENT OF FRONT–OF–THE–METER TRANSMISSION 9
1126	1126	ENERGY STORAGE DEVIC ES. 10
1127	1127
1128	1128	(C) (1) (I) ON OR BEFORE JANUARY 1, 2026, THE COMMISSION SHALL 11
1129	1129	ISSUE A PROCUREMENT SOLICITATION FOR APP LICATIONS FOR PROJEC TS FOR THE 12
1130	1130	CONSTRUCTION AND DEP LOYMENT OF FRONT –OF–THE–METER TRANSMISSION 13
1131	1131	ENERGY STORAGE DEVIC ES. 14
1132	1132
1133	1133	(II) THE PROCUREMENT SOLICITATION SHALL B E FOR A 15
1134	1134	MAXIMUM OF 800 MEGAWATTS OF CUMULAT IVE ENERGY STORAGE C APACITY, AS 16
1135	1135	MEASURED IN EFFECTIV E NAMEPLATE CAPACITY . 17
1136	1136
1137	1137	(2) ON OR BEFORE OCTOBER 1, 2026, THE COMMISSION SHALL ISSU E 18
1138	1138	A DECISION ON WHETHER TO APPROV E ONE OR MORE PROPOSALS IN AC CORDANCE 19
1139	1139	WITH § 7–1208(B) OF THIS SUBTITLE. 20
1140	1140
1141	1141	(3) (I) EXCEPT AS PROVIDED IN SUBPARAGRAPH (II) OF THIS 21
1142	1142	PARAGRAPH , THE TRANSMISSION ENE RGY STORAGE DEVICES PROCURED IN 22
1143	1143	ACCORDANCE WITH THIS SUBSECTION SHALL BE OPERATIONAL WITHIN 18 MONTHS 23
1144	1144	AFTER A PROJECT IS S ELECTED BY THE COMMISSION. 24
1145	1145
1146	1146	(II) THE COMMISSION MAY EXTEND THE OPERATING DEADLI NE 25
1147	1147	UNDER SUBPARAGRAPH (I) OF THIS PARAGRAPH FO R GOOD CAUSE SHOWN . 26
1148	1148
1149	1149	(D) (1) ON OR BEFORE JANUARY 1, 2027, THE COMMISSION SHALL ISSU E 27
1150	1150	A SECOND PROCUREMENT SOLICITA TION FOR THE PROCUREMENT OF P ROJECTS 28
1151	1151	FOR THE CONSTRUCTION AND DEPLOYMENT OF FRONT–OF–THE–METER 29
1152	1152	TRANSMISSION ENERGY STORAGE DEVIC ES. 30
1153	1153	26 HOUSE BILL 398
1154	1154
1155	1155
1156	1156	(2) THE PROCUREMENT SOLIC ITATION SHALL BE FOR A MAXIMUM OF 1
1157	1157	800 MEGAWATTS OF CUMULAT IVE ENERGY STORAGE CAPACITY, AS MEASURED IN 2
1158	1158	EFFECTIVE NAMEPLATE CAPACITY. 3
1159	1159
1160	1160	(3) ON OR BEFORE OCTOBER 1, 2027, THE COMMISSION SHALL ISSU E 4
1161	1161	A DECISION ON WHETHER TO APPROVE ONE OR MORE PROPOSAL S IN ACCORDANCE 5
1162	1162	WITH § 7–1208(B) OF THIS SUBTITLE. 6
1163	1163
1164	1164	(4) (I) EXCEPT AS PROVIDED IN SUBPARAGRAPH (II) OF THIS 7
1165	1165	PARAGRAPH , THE TRANSMISSION ENE RGY STORAGE DEVICES PROCURED IN 8
1166	1166	ACCORDANCE WITH THIS SUBSECTION SHALL BE OPERATIONAL WITHIN 18 MONTHS 9
1167	1167	AFTER A PROJECT IS S ELECTED BY THE COMMISSION. 10
1168	1168
1169	1169	(II) THE COMMISSION MAY EXTEND THE OPERATING DEADLINE 11
1170	1170	UNDER SUBPARAGRAPH (I) OF THIS PARAGRAPH FO R GOOD CAUSE SHOWN . 12
1171	1171
1172	1172	7–1207. 13
1173	1173
1174	1174	(A) THE COMMISSION SHALL INCL UDE SPECIFICATIONS IN A 14
1175	1175	PROCUREMENT SOLICITATION ISSUED UNDER § 7–1206 OF THIS SUBTITLE THAT 15
1176	1176	REQUIRE EACH PROPOSAL TO: 16
1177	1177
1178	1178	(1) INCLUDE A PROPOSED P RICING SCHEDULE FOR THE 17
1179	1179	TRANSMISSION ENERGY STORAGE DEVICE PROJECT; 18
1180	1180
1181	1181	(2) INCLUDE A COST –BENEFIT ANALYSIS OF THE PROJECT AND THE 19
1182	1182	PROPOSED PRICING SCH EDULE, INCLUDING AN ANALYSI S OF: 20
1183	1183
1184	1184	(I) THE LOCATIONAL VALUE , DURATION, AND TIME TO 21
1185	1185	DEPLOYMENT OF THE EN ERGY STORAGE DEVICES ; 22
1186	1186
1187	1187	(II) AVOIDED OR DELAYED T RANSMISSION, GENERATION , AND 23
1188	1188	DISTRIBUTION COSTS; 24
1189	1189
1190	1190	(III) AVOIDED EMISSIONS IN THE SHORT TERM AND P ROJECTED 25
1191	1191	AVOIDED EMISSIONS IN THE LONG TERM , MEASURED USING THE S OCIAL COST OF 26
1192	1192	CARBON, AS DETERMINED BY THE U.S. ENVIRONMENTAL PROTECTION AGENCY AS 27
1193	1193	OF JANUARY 1, 2025; 28
1194	1194
1195	1195	(IV) THE VALUE OF THE RAPID DEPLOYMENT OF ENERGY 29
1196	1196	STORAGE DEVICES ; AND 30
1197	1197
1198	1198	(V) ANY OTHER AVOIDED CO STS; 31 HOUSE BILL 398 27
1199	1199
1200	1200
1201	1201
1202	1202	(3) ENSURE THAT THE OWNER OR OPERATOR OF THE PROJECT HAS 1
1203	1203	THE CAPABILITY TO EXPORT ELECTRICIT Y FOR SALE ON THE WH OLESALE MARKET 2
1204	1204	AND BID INTO THE PJM CAPACITY MARKET UNDER AN AGREEMENT W ITH PJM 3
1205	1205	INTERCONNECTION ; 4
1206	1206
1207	1207	(4) ENSURE THAT THE ENER GY STORAGE DEVICES CAN DELIVER 5
1208	1208	THEIR EFFECTIVE NAME PLATE CAPACITY ; 6
1209	1209
1210	1210	(5) INCORPORATE A COMMUN ITY BENEFIT AGREEMEN T; 7
1211	1211
1212	1212	(6) ATTEST IN WRITING TH AT ALL CONTRACTORS A ND 8
1213	1213	SUBCONTRACTORS W ORKING ON THE PROJEC T HAVE BEEN IN COMPL IANCE WITH 9
1214	1214	FEDERAL AND STATE WAGE AND HOUR L AWS FOR THE IMMEDIAT ELY PRECEDING 3 10
1215	1215	YEARS OR THE DURATIO N OF THE CONTRACTOR ’S OR SUBCONTRACTOR ’S BUSINESS 11
1216	1216	OPERATION, WHICHEVER IS LONGER ; AND 12
1217	1217
1218	1218	(7) ENSURE A COMPETITIVE BIDDING PROCESS BY RED ACTING 13
1219	1219	PROPRIETARY INFORMAT ION PROVIDED TO THE COMMISSION. 14
1220	1220
1221	1221	(B) FRONT–OF–THE–METER TRANSMISSION E NERGY STORAGE DEVICE S 15
1222	1222	PAIRED WITH TIER 1 OR TIER 2 RENEWABLE SOURCES , AS DEFINED UNDER § 7–701 16
1223	1223	OF THIS TITLE, MAY BE INCLUDED IN A PROPOSAL IN RESPON SE TO A PROCUREMENT 17
1224	1224	SOLICITATION UNDER § 7–1206 OF THIS SUBTITLE. 18
1225	1225
1226	1226	7–1208. 19
1227	1227
1228	1228	(A) IN SELECTING A PROPOS AL FOR A FRONT–OF–THE–METER 20
1229	1229	TRANSMISSION ENERGY STORAGE DEVIC E PROJECT, THE COMMISSION: 21
1230	1230
1231	1231	(1) SHALL SPECIFY THE PR ICING SCHEDULE , WHICH SHALL BE A 22
1232	1232	MONTHLY FIXED PRICE REPRESEN TING THE VALUE OF TH E FRONT–OF–THE–METER 23
1233	1233	TRANSMISSION ENERGY STORAGE DEVICE BEYOND THE PAYMENT S RECEIVED FROM 24
1234	1234	PJM WHOLESALE MARKETS; 25
1235	1235
1236	1236	(2) SHALL SPECIFY THAT F OR CONTINUED RE CEIPT OF PAYMENT 26
1237	1237	UNDER ITEM (1) OF THIS SUBSECTION , AN APPLICANT SHALL DEMONSTRATE , TO 27
1238	1238	THE SATISFACTION OF THE COMMISSION, THAT THE APPLICANT ’S ENERGY STORAGE 28
1239	1239	DEVICE IS AVAILABLE AND PARTICIPATING IN THE PJM ENERGY AND CAPACITY 29
1240	1240	MARKET AT NOT LESS THAN THE CLASS AVERAGE AVAILABILITY RATE ESTABLISHED 30
1241	1241	BY PJM INTERCONNECTION FOR C OMPARABLE DEVICES ; 31
1242	1242	28 HOUSE BILL 398
1243	1243
1244	1244
1245	1245	(3) SHALL INCORPORATE PENALTIE S FOR NONPERFORMANCE IN THE 1
1246	1246	CONTRACT, INCLUDING WITHHOLDIN G OF PAYMENT , FOR ENERGY STORAGE 2
1247	1247	DEVICES THAT FAIL TO MEET AVAILABILITY METRICS ; 3
1248	1248
1249	1249	(4) MAY TERMINATE ENERGY STORAGE DEVICES FROM THE PROGRAM 4
1250	1250	IF DEVICE PERFORMANCE DOES NOT IMPROVE AFTER APPROP RIATE NOTICE AND 5
1251	1251	OPPORTUNITY TO CURE ; AND 6
1252	1252
1253	1253	(5) MAY CONSIDER OTHER N ONPRICE FACTORS SUCH AS: 7
1254	1254
1255	1255	(I) PROJECT MATURITY DATES; 8
1256	1256
1257	1257	(II) SITE CONTROL; AND 9
1258	1258
1259	1259	(III) ANY OTHER RELEVANT N ONPRICE FACTORS AS 10
1260	1260	DETERMINED BY THE COMMISSION. 11
1261	1261
1262	1262	(B) THE COMMISSION SHALL : 12
1263	1263
1264	1264	(1) AFTER GIVING PUBLIC NOTICE, HOLD ONE OR MORE PUBLIC 13
1265	1265	HEARINGS TO RECEIVE PUBLIC COMMENT AND EVALUATE THE PROPOSA LS; AND 14
1266	1266
1267	1267	(2) SUBJECT TO SUBSECTIO N (C) OF THIS SECTION , ISSUE ONE OR 15
1268	1268	MORE ORDERS TO SELECT A PROPOSAL OR PROPOSALS FOR DEVELO PMENT. 16
1269	1269
1270	1270	(C) IF THE COMMISSION FINDS THAT NONE OF THE PROPOSAL S 17
1271	1271	ADEQUATELY SUPPORT T HE GOALS ESTABLISHED UNDER THIS SUBTITLE THE 18
1272	1272	COMMISSION MAY END TH E SOLICITATION PROCE SS WITHOUT SELECTING A 19
1273	1273	PROPOSAL. 20
1274	1274
1275	1275	7–1209. 21
1276	1276
1277	1277	(A) FOR ANY PROPOSAL SELE CTED UNDER THIS PART , THE COMMISSION 22
1278	1278	MAY ADOPT CONDITIONS FOR THE CONSTRUCTION AND OPERATION OF FACILIT IES 23
1279	1279	INCLUDED IN THE PROPOSAL. 24
1280	1280
1281	1281	(B) AN ORDER SELECTING A PROPOSAL UNDER § 7–1208 OF THIS SUBTITLE 25
1282	1282	BESTOWS THE SAME RIG HTS TO THE SELECTED PROPOSAL THAT A GENE RATING 26
1283	1283	SYSTEM WOULD OTHERWI SE BE GRANTED THROUG H A CERTIFICATE OF PUB LIC 27
1284	1284	CONVENIENCE AND NECE SSITY UNDER § 7–207 OF THIS TITLE IF THE SELECTED 28
1285	1285	PROPOSAL IS REVIEWED UNDER AN ALTERNATIVE PROCESS AS DETERMINE D BY THE 29
1286	1286	COMMISSION. 30
1287	1287	HOUSE BILL 398 29
1288	1288
1289	1289
1290	1290	7–1210. 1
1291	1291
1292	1292	ANY TRANSMISSION ENERGY STORAGE DEVICE BUILT IN ACCORDANCE WITH 2
1293	1293	THIS SUBTITLE SHALL COUNT TOWARD T HE ENERGY STORAGE DE VICE 3
1294	1294	DEPLOYMENT GOALS UNDER § 7–216.2 OF THIS TITLE. 4
1295	1295
1296	1296	7–1211. 5
1297	1297
1298	1298	ON OR BEFORE DECEMBER 31, 2026, THE COMMISSION SHALL REPO RT, IN 6
1299	1299	ACCORDANCE WITH § 2–1257 OF THE STATE GOVERNMENT ARTICLE, TO THE 7
1300	1300	GENERAL ASSEMBLY ON THE EFFEC TIVENESS OF THE PROCUREMENT PROCESS 8
1301	1301	ESTABLISHED UNDER TH IS PART. 9
1302	1302
1303	1303	7–1212. RESERVED. 10
1304	1304
1305	1305	7–1213. RESERVED. 11
1306	1306
1307	1307	PART III. RENEWABLE ENERGY CREDITS. 12
1308	1308
1309	1309	7–1214. 13
1310	1310
1311	1311	(A) IN THIS PART THE FOLL OWING WORDS HAVE THE MEANINGS 14
1312	1312	INDICATED. 15
1313	1313
1314	1314	(B) “BROWNFIELD” HAS THE MEANING STAT ED IN § 7–207 OF THIS TITLE. 16
1315	1315
1316	1316	(C) “QUALIFYING SYSTEM ” HAS THE MEANING STAT ED IN § 7–709.2 OF THIS 17
1317	1317	TITLE. 18
1318	1318
1319	1319	(D) “REC ESCROW ADMINISTRATOR ” MEANS THE ENTITY CHO SEN, IN 19
1320	1320	ACCORDANCE WITH § 7–1219 OF THIS SUBTITLE , TO SUPERVISE THE ESC ROW 20
1321	1321	ACCOUNT CREATED UNDE R THIS SUBTITLE TO E NSURE THE SECURE AND 21
1322	1322	TRANSPARENT TRANSFER OF REVENUES , SREC–IIS, AND REC–IIS AMONG 22
1323	1323	QUALIFYING SYSTEMS , WIND SYSTEMS , SMALL HYDROELECTRIC SYSTEMS, AND 23
1324	1324	ELECTRIC COMPANIES . 24
1325	1325
1326	1326	(E) “RENEWABLE ENERGY CRED IT” HAS THE MEANING STAT ED IN § 7–701 25
1327	1327	OF THIS TITLE. 26
1328	1328
1329	1329	(F) “SMALL HYDROELECTRIC S YSTEM” HAS THE MEANING STAT ED IN § 27
1330	1330	7–701(S)(8) OF THIS TITLE. 28
1331	1331	30 HOUSE BILL 398
1332	1332
1333	1333
1334	1334	(G) “SOLAR ENERGY GENERATI NG SYSTEM” HAS THE MEANING STAT ED IN § 1
1335	1335	7–709.2 OF THIS TITLE. 2
1336	1336
1337	1337	(H) “SREC–II” HAS THE MEANING STAT ED IN § 7–709.2 OF THIS TITLE. 3
1338	1338
1339	1339	(I) “SREC–II PAYMENT” MEANS THE MONETARY V ALUE OF AN SREC–II 4
1340	1340	GENERATED AND SOLD B Y A SOLAR ENERGY GENERAT ING SYSTEM AWARDED A 5
1341	1341	CONTRACT IN ACCORDAN CE WITH THIS SUBTITLE. 6
1342	1342
1343	1343	(J) “WIND SYSTEM” MEANS A LAND –BASED WIND ENERGY GE NERATING 7
1344	1344	SYSTEM. 8
1345	1345
1346	1346	7–1215. 9
1347	1347
1348	1348	(A) THROUGH REGULATION OR ORDER , THE COMMISSION SHALL 10
1349	1349	ESTABLISH A COMPETITIVE PROCESS FOR THE PROCUREMENT OF: 11
1350	1350
1351	1351	(1) SREC–IIS FROM QUALIFYING SY STEMS; AND 12
1352	1352
1353	1353	(2) REC–IIS FROM SMALL HYDROEL ECTRIC SYSTEMS AND W IND 13
1354	1354	SYSTEMS. 14
1355	1355
1356	1356	(B) THE COMPETITIVE PROCESS E STABLISHED UNDER THIS PART SHALL 15
1357	1357	REQUIRE THAT : 16
1358	1358
1359	1359	(1) BIDS FROM QUALIFYING SYSTEMS, SMALL HYDROELECTRIC 17
1360	1360	SYSTEMS, AND WIND SYSTEMS SHALL BE ONLY FOR TH E PROCUREMENT OF 18
1361	1361	SREC–IIS AND REC–IIS; AND 19
1362	1362
1363	1363	(2) BIDS SUBMITTED FOR THE PROCUREMENT OF SREC–IIS OR 20
1364	1364	REC–IIS SHALL INCLUDE A N SREC–II OR REC–II PRICING SCHEDULE THA T 21
1365	1365	SPECIFIES A PRICE FOR THE GENERATION ATTRIBUTE S OF THE ORIGINATING 22
1366	1366	ENERGY GENERATING SY STEM, INCLUDING ENERGY , CAPACITY, ANCILLARY 23
1367	1367	SERVICES, AND ENVIRONMENTAL AT TRIBUTES. 24
1368	1368
1369	1369	7–1216. 25
1370	1370
1371	1371	AN ORDER THE COMMISSION ISSUES APP ROVING A PROPOSED 26
1372	1372	PROCUREMENT UNDER THIS PART SHAL L: 27
1373	1373
1374	1374	(1) SPECIFY THE SREC–II OR REC–II PRICING SCHEDULE ; 28
1375	1375	HOUSE BILL 398 31
1376	1376
1377	1377
1378	1378	(2) SPECIFY THE DURATION OF THE SREC–II OR REC–II PRICING 1
1379	1379	SCHEDULE, NOT TO EXCEED 30 YEARS; 2
1380	1380
1381	1381	(3) SPECIFY THE NUMBER O F SREC–IIS OR REC–IIS THAT MAY BE 3
1382	1382	PURCHASED EACH YEAR FROM THE QUALIFYING SYSTE M, SMALL HYDROELECTRIC 4
1383	1383	SYSTEM, OR WIND SYSTEM ; 5
1384	1384
1385	1385	(4) PROVIDE THAT : 6
1386	1386
1387	1387	(I) A PAYMENT MAY NOT BE MADE FOR AN SREC–II OR 7
1388	1388	REC–II UNTIL ELECTRICITY SU PPLY IS GENERATED UNDER THE PROCUREMEN T; 8
1389	1389	AND 9
1390	1390
1391	1391	(II) RATEPAYERS , PURCHASERS OF SREC–IIS AND REC–IIS, 10
1392	1392	AND THE STATE SHALL BE HELD H ARMLESS FOR ANY COST OVERRUNS ASSOCIATED 11
1393	1393	WITH THE QUALIFYING SYSTEM , SMALL HYDROELECTRIC SYSTEM, OR WIND SYSTEM; 12
1394	1394
1395	1395	(5) REQUIRE THAT ANY DEB T INSTRUMENT ISSUED IN CONNECTION 13
1396	1396	WITH THE QUALIFYING SYSTEM , SMALL HYDROELECTRIC SYSTEM, OR WIND SYSTEM 14
1397	1397	INCLUDE LANGUAGE SPE CIFYING THAT THE DEB T INSTRUMENT DOES NO T 15
1398	1398	ESTABLISH A DEBT , AN OBLIGATION, OR A LIABILITY OF THE STATE; AND 16
1399	1399
1400	1400	(6) REQUIRE THAT THE OWNER OR OPERATOR OF A QUALIFYING 17
1401	1401	SYSTEM, SMALL HYDROELECTRIC SYSTEM, OR WIND SYSTEM EXECU TE AND COMPLY 18
1402	1402	WITH A COMMUNITY BEN EFIT AGREEMENT UNDER § 7–1202 OF THIS SUBTITLE. 19
1403	1403
1404	1404	7–1217. 20
1405	1405
1406	1406	TO BE ELIGIBLE TO PAR TICIPATE IN THE COMPETITIVE PROCUREMENT 21
1407	1407	PROCESS UNDER THIS PART, A QUALIFYING SYSTEM , SMALL HYDROELECTRIC 22
1408	1408	SYSTEM, OR WIND SYSTEM SHALL : 23
1409	1409
1410	1410	(1) BE LOCATED IN THE STATE OR OTHERWISE DE MONSTRATE AN 24
1411	1411	ABILITY TO ADDRESS T HE RESOURCE ADEQUACY NEEDS OF THE STATE; 25
1412	1412
1413	1413	(2) BE ELIGIBLE FOR INCLUSI ON IN MEETING THE RENEW ABLE 26
1414	1414	ENERGY PORTFOLIO STA NDARD UNDER § 7–703(B) OF THIS TITLE; AND 27
1415	1415
1416	1416	(3) FOR SMALL HYDROELECT RIC SYSTEMS: 28
1417	1417
1418	1418	(I) HAVE A GENERATING CA PACITY OF LESS THAN 30 29
1419	1419	MEGAWATTS ; AND 30
1420	1420	32 HOUSE BILL 398
1421	1421
1422	1422
1423	1423	(II) BE LICENSED O R EXEMPT FROM LICENSIN G BY THE 1
1424	1424	FEDERAL ENERGY REGULATORY COMMISSION. 2
1425	1425
1426	1426	7–1218. 3
1427	1427
1428	1428	UNLESS EXTENDED BY MU TUAL CONSENT OF THE PARTIES, THE COMMISSION 4
1429	1429	SHALL APPROVE , CONDITIONALLY APPROV E, OR DENY A PROCUREMENT UNDER 5
1430	1430	THIS PART WITHIN 180 DAYS AFTER THE CLOSE OF A SOLICITATION PE RIOD. 6
1431	1431
1432	1432	7–1219. 7
1433	1433
1434	1434	(A) FOR THE PROCUREMENT P ROCESS ESTABLISHED U NDER THIS PART , BY 8
1435	1435	REGULATION OR ORDER , THE COMMISSION SHALL : 9
1436	1436
1437	1437	(1) ESTABLISH AN SREC–II AND REC–II PURCHASER ’S OBLIGATION 10
1438	1438	FOR SREC–II AND REC–II PURCHASERS TO PURCHA SE SREC–IIS AND REC–IIS 11
1439	1439	FOR EACH YEAR : 12
1440	1440
1441	1441	(I) ON A FORWARD –LOOKING BASIS; AND 13
1442	1442
1443	1443	(II) AT LEAST 1 YEAR BEFORE THE YEAR IN WHICH TH AT 14
1444	1444	SREC–II AND REC–II PURCHASE OBLIGAT ION BECOMES EFFECTIVE TO ALLOW AN 15
1445	1445	ELECTRIC COMPANY TO REFLECT SREC–II AND REC–II COSTS AS A 16
1446	1446	NONBYPASSABLE SURCHA RGE PAID BY ALL DIST RIBUTION CUSTOMERS O F THE 17
1447	1447	ELECTRIC COMPANY ; 18
1448	1448
1449	1449	(2) ESTABLISH A NONBYPAS SABLE SURCHARGE THAT ALLOWS AN 19
1450	1450	ELECTRIC COMPANY TO RECOVER ALL COSTS ASSO CIATED WITH THE PURC HASE OF 20
1451	1451	SREC–IIS AND REC–IIS FROM ALL DISTRIBUT ION CUSTOMERS OF THE ELECTRIC 21
1452	1452	COMPANY; 22
1453	1453
1454	1454	(3) ESTABLISH AN ESCROW ACCOUNT THAT IS UNDER THE 23
1455	1455	SUPERVISION OF THE REC ESCROW ADMINISTRATOR ; AND 24
1456	1456
1457	1457	(4) DIRECT THE ELECTRIC COMPANIES, IN CONSULTATION WITH THE 25
1458	1458	COMMISSION, TO JOINTLY SELECT A REC ESCROW ADMINISTRATOR . 26
1459	1459
1460	1460	(B) (1) EACH ELECTRIC COMPANY SHALL PROCURE FROM T HE ESCROW 27
1461	1461	ACCOUNT ESTABLISHED BY REGULATION OR ORDER UNDER THIS SECTION T HE 28
1462	1462	NUMBER OF SREC–IIS AND REC–IIS REQUIRED TO SATISFY THE SREC–II AND 29
1463	1463	REC–II PURCHASER ’S OBLIGATIONS. 30
1464	1464	HOUSE BILL 398 33
1465	1465
1466	1466
1467	1467	(2) SUBJECT TO ANY ESCROW ACCOUNT RESERVE REQU IREMENT THE 1
1468	1468	COMMISSION ESTABLISHE S: 2
1469	1469
1470	1470	(I) IF THERE ARE INSUFFICIENT SREC–IIS OR REC–IIS 3
1471	1471	AVAILABLE TO SATISFY THE ELECTRI C COMPANIES ’ SREC–II AND REC–II 4
1472	1472	PURCHASER ’S OBLIGATION , THE OVERPAYMENT SHAL L BE DISTRIBUTED TO 5
1473	1473	ELECTRIC COMPANIES T O BE REFUNDED OR CRE DITED TO EACH DISTRI BUTION 6
1474	1474	CUSTOMER BASED ON TH E CUSTOMER ’S CONSUMPTION OF ELE CTRICITY SUPPLY 7
1475	1475	THAT IS SUBJECT TO T HE RENEWABLE ENERGY PORTFOLIO STA NDARD; AND 8
1476	1476
1477	1477	(II) THE CALCULATION OF A N ELECTRIC COMPANY ’S SREC–II 9
1478	1478	AND REC–II PURCHASE OBLIGATION SHALL BE BASED ON FI NAL ELECTRICITY 10
1479	1479	SALES DATA AS REPORT ED BY PJM INTERCONNECTION AS MEASURED AT THE 11
1480	1480	CUSTOMER’S METER. 12
1481	1481
1482	1482	(3) FOR EACH SREC–II AND REC–II FOR WHICH A QUALIFYING 13
1483	1483	SYSTEM, SMALL HYDROELECTRIC SYSTEM, OR WIND SYSTEM RECEIVES PAYMENT , 14
1484	1484	THE QUALIFYING SYSTEM , SMALL HYDROELECTRIC SYSTEM, OR WIND SYSTEM 15
1485	1485	SHALL: 16
1486	1486
1487	1487	(I) SELL ALL ENERGY , CAPACITY, AND ANCILLARY SERVIC ES 17
1488	1488	ASSOCIATED WITH THE CREATION OF THE SREC–IIS OR REC–IIS INTO THE 18
1489	1489	MARKETS OPERATED BY PJM INTERCONNECTION ; AND 19
1490	1490
1491	1491	(II) DISTRIBUTE THE PROCE EDS RECEIVED FROM TH E SALES 20
1492	1492	UNDER ITEM (I) OF THIS PARAGRAPH TO ELECTRIC COMPANIES T O BE REFUNDED 21
1493	1493	OR CREDITED TO EACH DISTRIBUTION CUSTOMER BASED ON THE CUSTOMER ’S 22
1494	1494	CONSUMPTION OF ELECT RICITY SUPPLY THAT I S SUBJECT TO THE RENEWABLE 23
1495	1495	ENERGY PORTFOLIO STA NDARD. 24
1496	1496
1497	1497	7–1220. 25
1498	1498
1499	1499	BY REGULATION OR ORDE R, THE COMMISSION SHALL SPEC IFY THE 26
1500	1500	TRANSFER AND EXPIRAT ION OF SREC–IIS AND REC–IIS CREATED BY QUALIFYING 27
1501	1501	SYSTEMS, SMALL HYDROELECTRIC SYSTEMS, OR WIND SYSTEMS IN E XCESS OF THE 28
1502	1502	ESTABLISHED SREC–II OR REC–II PRICING SCHEDULE . 29
1503	1503
1504	1504	7–1221. 30
1505	1505
1506	1506	A DEBT, AN OBLIGATION, OR A LIABILITY OF A QUALI FYING SYSTEM, SMALL 31
1507	1507	HYDROELECTRIC SYSTEM , OR WIND SYSTEM OR OF AN OWNER OR OPERATOR OF A 32
1508	1508	QUALIFYING SYSTEM , SMALL HYDROELECTRIC SYSTEM, OR WIND SYSTEM MAY N OT 33
1509	1509	BE CONSIDERED A DEBT , AN OBLIGATION, OR A LIABILITY OF THE STATE. 34 34 HOUSE BILL 398
1510	1510
1511	1511
1512	1512
1513	1513	Article – State Finance and Procurement 1
1514	1514
1515	1515	13–102. 2
1516	1516
1517	1517	(a) The following procurement methods are authorized at the procurement 3
1518	1518	officer’s discretion, where applicable: 4
1519	1519
1520	1520	(1) competitive sealed bids under § 13–103 of this subtitle; 5
1521	1521
1522	1522	(2) competitive sealed proposals under § 13–104 or § 13–105 of this 6
1523	1523	subtitle; 7
1524	1524
1525	1525	(3) noncompetitive negotiation under § 13–106 of this subtitle; 8
1526	1526
1527	1527	(4) sole source procurement under § 13–107 of this subtitle; 9
1528	1528
1529	1529	(5) emergency or expedited procurement under § 13–108 of this subtitle; 10
1530	1530
1531	1531	(6) small procurement under § 13–109 of this subtitle; 11
1532	1532
1533	1533	(7) an intergovernmental cooperative purchasing agreement under § 12
1534	1534	13–110 of this subtitle; 13
1535	1535
1536	1536	(8) auction bids under § 13–111 of this subtitle; 14
1537	1537
1538	1538	(9) architectural, engineering, and land surveying services qualification 15
1539	1539	based selection under § 13–112 of this subtitle; 16
1540	1540
1541	1541	(10) master contracting under § 13–113 of this subtitle; [or] 17
1542	1542
1543	1543	(11) pay–for–success contracting under § 13–112.1 of this subtitle; OR 18
1544	1544
1545	1545	(12) LEGISLATIVE FAST –TRACK PROCUREMENTS UNDER § 13–117 OF 19
1546	1546	THIS SUBTITLE. 20
1547	1547
1548	1548	13–117. 21
1549	1549
1550	1550	(A) IT IS THE INTENT OF T HE GENERAL ASSEMBLY TO: 22
1551	1551
1552	1552	(1) RECOGNIZE THE NEED F OR STATE AGENCIES TO BE RESPONSIVE 23
1553	1553	TO THE REQUESTS AND LEGISLATIVE DIRECTIV ES OF THE GENERAL ASSEMBLY; 24
1554	1554
1555	1555	(2) REDUCE THE TIME IT T AKES FOR STATE AGENCIES TO PRO CURE 25
1556	1556	CONSULTANTS TO ASSIS T WITH LEGISLATIVE M ANDATES THAT HAVE DEADLINES 26
1557	1557	SPECIFIED IN LAW; AND 27 HOUSE BILL 398 35
1558	1558
1559	1559
1560	1560
1561	1561	(3) BE TIMELY IN ADDRESS ING CLIMATE CHANGE , ENVIRONMENTAL , 1
1562	1562	ENERGY, AND GREENHOUSE GAS E MISSIONS RELATED ISS UES. 2
1563	1563
1564	1564	(B) THIS SECTION APPLIES ONLY TO THE PROCUREMENT OF CONSU LTANTS 3
1565	1565	THAT: 4
1566	1566
1567	1567	(1) ARE LEGISLATIVE LY MANDATED WITH SPECIF IC TIME FRAMES 5
1568	1568	ESTABLISHED IN LAW ; AND 6
1569	1569
1570	1570	(2) WILL ADDRESS ISSUES RELAT ED ONLY TO CLIMATE CHANGE , 7
1571	1571	ENVIRONMENTAL , ENERGY, AND GREENHOUSE GAS E MISSIONS. 8
1572	1572
1573	1573	(C) THE FOLLOWING UNITS ARE AUTHORIZED TO IS SUE COMPETITIVE 9
1574	1574	SEALED BIDS HIGHER T HAN THEIR DESIGNATED SMALL PROCUREMENT 10
1575	1575	DELEGATION AUTHORITI ES: 11
1576	1576
1577	1577	(1) THE PUBLIC SERVICE COMMISSION; 12
1578	1578
1579	1579	(2) THE OFFICE OF PEOPLE’S COUNSEL; 13
1580	1580
1581	1581	(3) THE MARYLAND ENERGY ADMINISTRATIO N; 14
1582	1582
1583	1583	(4) THE DEPARTMENT OF THE ENVIRONMENT ; AND 15
1584	1584
1585	1585	(5) THE DEPARTMENT OF NATURAL RESOURCES. 16
1586	1586
1587	1587	(D) BEFORE AWARDING A PRO CUREMENT CONTRACT UN DER THIS SECTION , 17
1588	1588	THE PROCUREMENT OFFI CER SHALL OBTAIN THE APPROVAL OF : 18
1589	1589
1590	1590	(1) THE HEAD OF THE UNIT ; AND 19
1591	1591
1592	1592	(2) THE CHIEF PROCUREMENT OFFICER, OR THEIR DESIGNEE . 20
1593	1593
1594	1594	(E) (1) THE CHIEF PROCUREMENT OFFICER, OR THEIR DESIGNEE , 21
1595	1595	SHALL APPROVE A PROCUREMENT CONTRA CT SUBMITTED UNDER THIS SECTION IF 22
1596	1596	IT COMPLIES WITH THE REQUIREMENTS OF THIS SECTION. 23
1597	1597
1598	1598	(2) IF THE CHIEF PROCUREMENT OFFICER, OR THEIR DESIGNEE , 24
1599	1599	DOES NOT APPROVE A PROCUREMENT CONTRA CT SUBMITTED UNDER THIS SECTION 25
1600	1600	WITHIN 5 BUSINESS DAYS AFTER RECEIVING THE CONTRACT, THE CONTRACT SHALL 26
1601	1601	BE CONSIDERED APPROV ED. 27
1602	1602	36 HOUSE BILL 398
1603	1603
1604	1604
1605	1605	Article – State Government 1
1606	1606
1607	1607	9–20B–05. 2
1608	1608
1609	1609	(a) There is a Maryland Strategic Energy Investment Fund. 3
1610	1610
1611	1611	(e) The Fund consists of: 4
1612	1612
1613	1613	(1) all of the proceeds from the sale of allowances under § 2–1002(g) of the 5
1614	1614	Environment Article; 6
1615	1615
1616	1616	(2) money appropriated in the State budget to the Program; 7
1617	1617
1618	1618	(3) repayments and prepayments of principal and interest on loans made 8
1619	1619	from the Fund; 9
1620	1620
1621	1621	(4) interest and investment earnings on the Fund; 10
1622	1622
1623	1623	(5) compliance fees paid under [§ 7–705] § 7–705(B–1) of the Public 11
1624	1624	Utilities Article; 12
1625	1625
1626	1626	(6) money received from any public or private source for the benefit of the 13
1627	1627	Fund; 14
1628	1628
1629	1629	(7) money transferred from the Public Service Commission under § 15
1630	1630	7–207.2(c)(3) of the Public Utilities Article; and 16
1631	1631
1632	1632	(8) money distributed under § 2–614.1 of the Tax – General Article. 17
1633	1633
1634	1634	[(g–1) Proceeds received by the Fund from compliance fees under § 7–705(b)(2)(i)2 of 18
1635	1635	the Public Utilities Article shall be allocated as follows: 19
1636	1636
1637	1637	(1) beginning in fiscal year 2025, at least 20% of the proceeds shall be used 20
1638	1638	to provide grants to support the installation of new solar energy generating systems under 21
1639	1639	the Customer–Sited Solar Program; 22
1640	1640
1641	1641	(2) up to 10% of the proceeds shall be credited to an administrative expense 23
1642	1642	account for costs related to the administration of the Fund; 24
1643	1643
1644	1644	(3) proceeds collected but unused from a previous year shall be used before 25
1645	1645	proceeds allocated for the current year; and 26
1646	1646
1647	1647	(4) the Administration shall reallocate to other authorized uses any 27
1648	1648	proceeds that are not used within 3 fiscal years after collection.] 28
1649	1649
1650	1650	[(i) (1) Except as provided in paragraph (2) of this subsection, compliance fees 29
1651	1651	paid under § 7–705(b) of the Public Utilities Article may be used only to make loans and 30 HOUSE BILL 398 37
1652	1652
1653	1653
1654	1654	grants to support the creation of new Tier 1 renewable energy sources in the State that are 1
1655	1655	owned by or directly benefit: 2
1656	1656
1657	1657	(i) low– to moderate–income communities located in a census tract 3
1658	1658	with an average median income at or below 80% of the average median income for the State; 4
1659	1659	or 5
1660	1660
1661	1661	(ii) overburdened or underserved communities, as defined in § 1–701 6
1662	1662	of the Environment Article. 7
1663	1663
1664	1664	(2) Compliance fees paid under § 7–705(b)(2)(i)2 of the Public Utilities 8
1665	1665	Article shall be accounted for separately within the Fund and may be used only to make 9
1666	1666	loans and grants to support the creation of new solar energy sources in the State that are 10
1667	1667	owned by or directly benefit: 11
1668	1668
1669	1669	(i) low– to moderate–income communities located in a census tract 12
1670	1670	with an average median income at or below 80% of the average median income for the State; 13
1671	1671
1672	1672	(ii) overburdened or underserved communities, as defined in § 1–701 14
1673	1673	of the Environment Article; or 15
1674	1674
1675	1675	(iii) households with low to moderate income, as defined in § 9–2016 16
1676	1676	of this title.] 17
1677	1677
1678	1678	[(i–1)] (I) (1) (i) In this subsection the following words have the meanings 18
1679	1679	indicated. 19
1680	1680
1681	1681	(ii) “Area median income” has the meaning stated in § 4–1801 of the 20
1682	1682	Housing and Community Development Article. 21
1683	1683
1684	1684	(iii) “Low and moderate income” means having an annual household 22
1685	1685	income that is at or below 120% of the area median income. 23
1686	1686
1687	1687	(2) Compliance fees paid under § 7–705(b–1) of the Public Utilities Article 24
1688	1688	shall be accounted for separately within the Fund and may be used only to make loans and 25
1689	1689	grants to promote increased opportunities for the growth and development of small, 26
1690	1690	minority, women–owned, and veteran–owned businesses in the State that install 27
1691	1691	geothermal systems in the State. 28
1692	1692
1693	1693	Article – Tax – General 29
1694	1694
1695	1695	2–1201. 30
1696	1696
1697	1697	(A) IN THIS SECTION , “QUALIFIED DATA CENTE R” HAS THE MEANING 31
1698	1698	STATED IN § 11–239 OF THIS ARTICLE. 32
1699	1699	38 HOUSE BILL 398
1700	1700
1701	1701
1702	1702	(B) The Comptroller shall pay refunds relating to the public service company 1
1703	1703	franchise tax from the General Fund of the State. 2
1704	1704
1705	1705	(C) THE COMPTROLLER SHALL DIS TRIBUTE 75% OF THE FRANCHISE TAX 3
1706	1706	REVENUE FROM PUBLIC SERVICE COMPANIES IMPOSED UNDER § 8–402.1 OF THIS 4
1707	1707	ARTICLE, THAT IS ATTRIBUTABLE TO THE KILOWATT –HOURS OF ELECTRICITY 5
1708	1708	DELIVERED TO QUALIFI ED DATA CENTERS THAT ARE OPERATIONAL ON O R AFTER 6
1709	1709	JANUARY 1, 2026, TO THE ESCROW ACCOUN T ESTABLISHED BY THE PUBLIC 7
1710	1710	SERVICE COMMISSION UNDER § 7–705 OF THE PUBLIC UTILITIES ARTICLE. 8
1711	1711
1712	1712	2–1302.5. 9
1713	1713
1714	1714	(A) IN THIS SECTION , “QUALIFIED DATA CENTE R” HAS THE MEANING 10
1715	1715	STATED IN § 11–239 OF THIS ARTICLE. 11
1716	1716
1717	1717	(B) THE COMPTROLLER SHALL DIS TRIBUTE 75% OF THE SALES AND USE 12
1718	1718	TAX REVENUES ATTRIBU TABLE TO THE SALE OF ELECTRICITY DELIVERED TO 13
1719	1719	QUALIFIED DATA CENTE RS THAT ARE OPERATIO NAL ON OR AFTER JANUARY 1, 2026, 14
1720	1720	TO THE ESCROW ACCOUN T ESTABLISHED BY THE PUBLIC SERVICE COMMISSION 15
1721	1721	UNDER § 7–705 OF THE PUBLIC UTILITIES ARTICLE. 16
1722	1722
1723	1723	2–1303. 17
1724	1724
1725	1725	After making the distributions required under §§ 2–1301 through [2–1302.4] 18
1726	1726	2–1302.5 of this subtitle, the Comptroller shall pay: 19
1727	1727
1728	1728	(1) revenues from the hotel surcharge into the Dorchester County 20
1729	1729	Economic Development Fund established under § 10–130 of the Economic Development 21
1730	1730	Article; 22
1731	1731
1732	1732	(2) to the Blueprint for Maryland’s Future Fund established under § 5–206 23
1733	1733	of the Education Article, the following percentage of the remaining sales and use tax 24
1734	1734	revenues: 25
1735	1735
1736	1736	(i) for fiscal year 2023, 9.2%; 26
1737	1737
1738	1738	(ii) for fiscal year 2024, 11.0%; 27
1739	1739
1740	1740	(iii) for fiscal year 2025, 11.3%; 28
1741	1741
1742	1742	(iv) for fiscal year 2026, 11.7%; and 29
1743	1743
1744	1744	(v) for fiscal year 2027 and each fiscal year thereafter, 12.1%; and 30
1745	1745	HOUSE BILL 398 39
1746	1746
1747	1747
1748	1748	(3) the remaining sales and use tax revenue into the General Fund of the 1
1749	1749	State. 2
1750	1750
1751	1751	11–239. 3
1752	1752
1753	1753	(a) (1) In this section the following words have the meanings indicated. 4
1754	1754
1755	1755	(2) “Data center” means a building or group of buildings used to house 5
1756	1756	computer systems, computer storage equipment, and associated infrastructure that 6
1757	1757	businesses or other organizations use to organize, process, store, and disseminate large 7
1758	1758	amounts of data. 8
1759	1759
1760	1760	(5) (i) “Qualified data center” means a data center located in the State 9
1761	1761	in which an individual or a corporation, within 3 years after submitting an application for 10
1762	1762	the sales and use tax exemption under this section, has: 11
1763	1763
1764	1764	1. for a data center located within a Tier I area, invested at 12
1765	1765	least $2,000,000 in qualified data center personal property and created at least five 13
1766	1766	qualified positions; or 14
1767	1767
1768	1768	2. for a data center located in any other area of the State, 15
1769	1769	invested at least $5,000,000 in qualified data center personal property and created at least 16
1770	1770	five qualified positions. 17
1771	1771
1772	1772	(ii) “Qualified data center” includes: 18
1773	1773
1774	1774	1. a data center that is a co–located or hosting data center 19
1775	1775	where equipment, space, and bandwidth are available to lease to multiple customers; and 20
1776	1776
1777	1777	2. an enterprise data center owned and operated by the 21
1778	1778	company it supports. 22
1779	1779
1780	1780	SECTION 2. AND BE IT FURTHER ENACTED, That the General Assembly 23
1781	1781	supports the extension or renewal of the Federal Nuclear Regulatory Commission license 24
1782	1782	for the Calvert Cliffs Nuclear Power Plant’s nuclear reactors in the years 2034 and 2036. 25
1783	1783
1784	1784	SECTION 3. AND BE IT FURTHER ENACTED, That a presently existing obligation 26
1785	1785	or contract right may not be impaired in any way by this Act. 27
1786	1786
1787	1787	SECTION 4. AND BE IT FURTHER ENACTED, That this Act shall take effect June 28
1788	1788	1, 2025. 29