EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
[Brackets] indicate matter deleted from existing law.
Underlining indicates amendments to bill.
Strike out indicates matter stricken from the bill by amendment or deleted from the law by
amendment.
*hb0505*
HOUSE BILL 505
M5, C5 5lr0062
CF SB 434
By: The Speaker (By Request – Administration) and Delegates Allen, Cardin,
Ebersole, Fennell, Patterson, Turner, and Wu
Introduced and read first time: January 22, 2025
Assigned to: Economic Matters
Committee Report: Favorable with amendments
House action: Adopted
Read second time: March 20, 2025
CHAPTER ______
AN ACT concerning 1
Empowering New Energy Resources and Green Initiatives Toward a 2
Zero–Emission (ENERGIZE) Maryland Act 3
Renewable Energy Portfolio Standard – Renaming and Alterations 4
FOR the purpose of renaming the “renewable energy portfolio standard” to be the “clean 5
energy portfolio standard”; altering the definition of “qualified offshore wind project” 6
for purposes of the clean energy portfolio standard; altering the minimum required 7
percentage of energy that must be derived from clean energy sources in certain years 8
under the clean energy portfolio standard; altering the contents of and approval 9
criteria for an application for an offshore wind project; altering the compliance fee 10
for a shortfall from certain Tier 1 renewable source requirements; establishing a 11
process for the Public Service Commission to review and approve an application for 12
a proposed nuclear energy generation project; requiring the Governor’s Office of 13
Small, Minority, and Women Business Affairs, in consultation with the Office of the 14
Attorney General, to provide certain assistance to potential applicants and minority 15
investors; requiring that approved applicants for a proposed nuclear energy 16
generation project comply with the Minority Business Enterprise Program; requiring 17
a certain nuclear energy generation project to sell certain energy, capacity, and 18
ancillary services into certain markets and distribute the proceeds in a certain 19
manner; prohibiting a certain debt, obligation, or liability from being considered a 20
debt, obligation, or liability of the State; renaming the “Maryland Offshore Wind 21
Business Development Fund” to be the “Clean Energy Business Development Fund”; 22
reinstating and renaming the “Maryland Offshore Wind Business Development 23
Advisory Committee” to be the “Clean Energy Business Development Advisory 24 2 HOUSE BILL 505
Committee”; authorizing funds to be transferred by budget amendment from the 1
Dedicated Purpose Account in a certain fiscal year to implement certain provisions 2
of this Act; applying this Act retroactively; and generally relating to the clean energy 3
portfolio standard, offshore wind energy, and nuclear energy. 4
BY repealing 5
Article – Public Utilities 6
Section 7–701(n) 7
Annotated Code of Maryland 8
(2020 Replacement Volume and 2024 Supplement) 9
BY renumbering 10
Article – Public Utilities 11
Section 7–701(c) through (e–1), (f) through (g–1), (h), (h–1), (i), (i–1), (j) through (m), 12
(o) through (p–1), and (q) through (t) 13
to be Section 7–701(e) through (z), respectively 14
Annotated Code of Maryland 15
(2020 Replacement Volume and 2024 Supplement) 16
BY repealing and reenacting, with amendments, 17
Article – Natural Resources 18
Section 5–102(a)(9) 19
Annotated Code of Maryland 20
(2023 Replacement Volume and 2024 Supplement) 21
BY repealing and reenacting, with amendments, 22
Article – Public Utilities 23
Section 7–306.2(b)(1), 7–510.3(k)(1), 7–702, 7–703(a), (b)(20) through (25), and (d) 24
through (f), 7–704, 7–704.1(c)(6), (e)(1)(xiii), and (f)(1)(iii) 7–704.1(e)(1)(xiii), 25
7–704.2(a) through (c), 7–704.4(c)(2), 7–705, 7–706(a) and (b), 7–707(c)(1), 26
(d)(2) and (3), and (g)(4), 7–709(a) and (c)(1)(i), and 7–709.1(c), (d)(2), and (i) 27
Annotated Code of Maryland 28
(2020 Replacement Volume and 2024 Supplement) 29
BY repealing and reenacting, without amendments, 30
Article – Public Utilities 31
Section 7–701(a), 7–703(c), 7–704.1(f)(2), and 7–704.4(c)(1) 7–701(a), 7–703(c), and 32
7–704.4(c)(1) 33
Annotated Code of Maryland 34
(2020 Replacement Volume and 2024 Supplement) 35
BY adding to 36
Article – Public Utilities 37
Section 7–701(c) and (d), 7–703(g), and 7–704.1(f)(4); and 7–1201 through 7–1211 to 38
be under the new subtitle “Subtitle 12. Nuclear Energy Procurement” 39
Section 7–701(c) and (d) and 7–703(g) 40
Annotated Code of Maryland 41 HOUSE BILL 505 3
(2020 Replacement Volume and 2024 Supplement) 1
BY repealing and reenacting, with amendments, 2
Article – Public Utilities 3
Section 7–701(q) 4
Annotated Code of Maryland 5
(2020 Replacement Volume and 2024 Supplement) 6
(As enacted by Section 2 of this Act) 7
BY repealing and reenacting, with amendments, 8
Article – State Government 9
Section 9–20C–01, 9–20C–02, and 9–20C–03(a) 10
Annotated Code of Maryland 11
(2021 Replacement Volume and 2024 Supplement) 12
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 13
That Section(s) 7–701(n) of Article – Public Utilities of the Annotated Code of Maryland be 14
repealed. 15
SECTION 2. AND BE IT FURTHER ENACTED, That Section(s) 7 –701(c) through 16
(e–1), (f) through (g–1), (h), (h–1), (i), (i–1), (j) through (m), (o) through (p–1), and (q) through 17
(t) of Article – Public Utilities of the Annotated Code of Maryland be renumbered to be 18
Section(s) 7–701(e) through (z), respectively. 19
SECTION 3. AND BE IT FURTHER ENACTED, That the Laws of Maryland read 20
as follows: 21
Article – Natural Resources 22
5–102. 23
(a) The General Assembly finds that: 24
(9) Forests are a renewable resource that help the State meet its renewable 25
energy goals that are consistent with the State’s: 26
(i) Green power goal for State facilities; 27
(ii) [Renewable] CLEAN Energy Portfolio Standard; 28
(iii) Healthy Air Act; and 29
(iv) Maryland Clean Energy Incentive Act of 2006; and 30
Article – Public Utilities 31
7–306.2. 32 4 HOUSE BILL 505
(b) The General Assembly finds that: 1
(1) community solar energy generating systems: 2
(i) provide residents and businesses, including those that lease 3
property, increased access to local solar electricity while encouraging private investment in 4
solar resources; 5
(ii) enhance continued diversification of the State’s energy resource 6
mix to achieve the State’s [renewable] CLEAN energy portfolio standard and Greenhouse 7
Gas Emissions Reduction Act goals; and 8
(iii) provide electric companies and ratepayers the opportunity to 9
realize the many benefits associated with distributed energy; and 10
7–510.3. 11
(k) (1) Except for the purposes of meeting the requirements of the [renewable] 12
CLEAN energy portfolio standard under Subtitle 7 of this title, a community choice 13
aggregator may not be considered to be an electricity supplier under § 7–507(a) of this 14
subtitle. 15
7–701. 16
(a) In this subtitle the following words have the meanings indicated. 17
(C) “CLEAN ENERGY PORTFOLI O STANDARD” OR “STANDARD” MEANS THE 18
PERCENTAGE OF ELECTR ICITY SALES AT RETAI L IN THE STATE THAT IS TO BE 19
DERIVED FROM CLEAN E NERGY SOURCES IN ACCORDANCE WITH § 7–703(B) OF THIS 20
SUBTITLE. 21
(D) “CLEAN ENERGY SOURCE ” MEANS: 22
(1) A TIER 1 RENEWABLE SOURCE ; 23
(2) A TIER 2 RENEWABLE SOURCE ; OR 24
(3) A NUCLEAR ENERGY GEN ERATING STATION , INCLUDING A SMALL 25
MODULAR REACTOR , CONNECTED WITH THE ELECTRIC DISTRIB UTION GRID 26
SERVING THE STATE. 27
(q) “Qualified offshore wind project” means a wind turbine electricity generation 28
facility, including the associated transmission–related interconnection facilities and 29
equipment, that: 30
HOUSE BILL 505 5
(1) is located: 1
(i) on the outer continental shelf of the Atlantic Ocean in an area 2
that the United States Department of the Interior designates for leasing; and 3
(ii) more than 10 miles off the coast of the State for a project selected 4
under § 7–704.4 of this subtitle or approved under § 7–704.1 of this subtitle after June 1, 5
2023; and 6
(2) interconnects to the TRANSMISSION SYSTEM THROUGH: 7
(I) THE PJM Interconnection [grid: 8
(i) at a point located on the Delmarva Peninsula]; or 9
(ii) an offshore wind transmission project selected under § 7–704.3 10
of this subtitle. 11
7–702. 12
(a) It is the intent of the General Assembly to: 13
(1) recognize the economic, environmental, fuel diversity, and security 14
benefits of [renewable] CLEAN energy resources; 15
(2) reduce greenhouse gas emissions and eliminate carbon –fueled 16
generation from the State’s electric grid by using these resources; 17
(3) establish a market for electricity from these resources in Maryland; and 18
(4) lower the cost to consumers of electricity produced from these resources. 19
(b) The General Assembly finds AND DECLARES that: 20
(1) THE STATE HAS A GOAL OF A CHIEVING 100% CLEAN ELECTRICITY ; 21
(2) AS OF JANUARY 1, 2025, THE RENEWABLE ENERGY PORTFOLIO 22
STANDARD AND OFFSHOR E WIND ENERGY LEASES WILL NOT SATISFY THE GOAL 23
STATED IN ITEM (1) OF THIS SUBSECTION ; 24
(3) TO ACHIEVE ITS CLEAN ELECTRICITY GOAL , THE STATE MUST 25
FACILITATE THE CONST RUCTION OF AT LEAST 3,000 MEGAWATTS OF ELECTRI CITY 26
FROM CLEAN ENERGY GE NERATION PROJECTS TO : 27
(I) REDUCE THE ADVERSE CLIMATE AND HEALTH IMPACTS O F 28
TRADITIONAL FOSSIL F UEL ENERGY SOURCES ; 29 6 HOUSE BILL 505
(II) PROMOTE THE DEVELOPM ENT OF CLEAN ENERGY SOURCES 1
THAT INCREASE THE NA TION’S INDEPENDENCE FROM FOREIGN SOURCES OF F OSSIL 2
FUELS; 3
(III) POSITION THE STATE TO TAKE AD VANTAGE OF THE 4
ECONOMIC DEVELOPMENT BENEFITS OF THE EMER GING SMALL MODULAR R EACTOR 5
INDUSTRY; AND 6
(IV) PROVIDE A LONG –TERM HEDGE AGAINST V OLATILE PRICES 7
OF FOSSIL FUELS; 8
[(1)] (4) the benefits of electricity from [renewable] CLEAN energy 9
resources, including long–term decreased emissions, a healthier environment, increased 10
energy security, and decreased reliance on and vulnerability from imported energy sources, 11
accrue to the public at large; 12
[(2)] (5) electricity suppliers and consumers share an obligation to 13
develop a minimum level of these resources in the electricity supply portfolio of the State; 14
and 15
[(3)] (6) the State needs to increase its reliance on [renewable] CLEAN 16
energy in order to: 17
(i) reduce greenhouse gas emissions and meet the State’s 18
greenhouse gas emissions reduction goals under § 2–1205 of the Environment Article; and 19
(ii) provide opportunities for small, minority, women–owned, and 20
veteran–owned businesses to participate in and develop a highly skilled workforce for clean 21
energy industries in the State. 22
7–703. 23
(a) (1) (i) The Commission shall implement a [renewable] CLEAN energy 24
portfolio standard that, except as provided under paragraphs (2) and (3) of this subsection, 25
applies to all retail electricity sales in the State by electricity suppliers. 26
(ii) If the standard becomes applicable to electricity sold to a 27
customer after the start of a calendar year, the standard does not apply to electricity sold 28
to the customer during that portion of the year before the standard became applicable. 29
(2) A [renewable] CLEAN energy portfolio standard may not apply to 30
electricity sales at retail by any electricity supplier: 31
(i) in excess of 300,000,000 kilowatt–hours of industrial process load 32
to a single customer in a year; 33 HOUSE BILL 505 7
(ii) to residential customers in a region of the State in which 1
electricity prices for residential customers are subject to a freeze or cap contained in a 2
settlement agreement entered into under § 7–505 of this title until the freeze or cap has 3
expired; or 4
(iii) to a customer served by an electric cooperative under an 5
electricity supplier purchase agreement that existed on October 1, 2004, until the 6
expiration of the agreement, as the agreement may be renewed or amended. 7
(3) The portion of a [renewable] CLEAN energy portfolio standard that 8
represents offshore wind: 9
(i) applies only to the distribution sales of electric companies; and 10
(ii) may not apply to distribution sales by any electric company in 11
excess of: 12
1. 75,000,000 kilowatt–hours of industrial process load to a 13
single customer in a year; and 14
2. 3,000 kilowatt–hours of electricity in a month to a 15
customer who is an owner of agricultural land and files an Internal Revenue Service form 16
1040, schedule F. 17
(b) Except as provided in subsections (e) and (f) of this section, the [renewable] 18
CLEAN energy portfolio standard shall be as follows: 19
(20) 60.5% in 2025, INCLUDING AT LEAST : 20
(i) 35.5% from Tier 1 renewable sources, including: 21
1. at least 7% derived from solar energy; 22
2. an amount set by the Commission under § 7–704.2(a) of 23
this subtitle, not to exceed 10%, derived from offshore wind energy; and 24
3. at least 0.25% derived from post–2022 geothermal 25
systems; 26
(ii) 2.5% from Tier 2 renewable sources; 27
(21) 63% in 2026, INCLUDING AT LEAST : 28
(i) 38% from Tier 1 renewable sources, including: 29
1. at least 8% derived from solar energy; 30 8 HOUSE BILL 505
2. an amount set by the Commission under § 7–704.2(a) of 1
this subtitle derived from offshore wind energy, including at least 400 megawatts of Round 2
2 offshore wind projects; and 3
3. at least 0.5% derived from post–2022 geothermal systems; 4
and 5
(ii) 2.5% from Tier 2 renewable sources; and 6
(22) 66.5% in 2027, INCLUDING AT LEAST : 7
(i) 41.5% from Tier 1 renewable sources, including: 8
1. at least 9.5% derived from solar energy; 9
2. an amount set by the Commission under § 7–704.2(a) of 10
this subtitle derived from offshore wind energy, including at least 400 megawatts of Round 11
2 offshore wind projects; and 12
3. at least 0.75% derived from post–2022 geothermal 13
systems; and 14
(ii) 2.5% from Tier 2 renewable sources; and 15
(23) 68% in 2028, INCLUDING AT LEAST : 16
(i) 43% from Tier 1 renewable sources, including: 17
1. at least 11% derived from solar energy; 18
2. an amount set by the Commission under § 7–704.2(a) of 19
this subtitle derived from offshore wind energy, including at least 800 megawatts of Round 20
2 offshore wind projects; and 21
3. at least 1% derived from post–2022 geothermal systems; 22
and 23
(ii) 2.5% from Tier 2 renewable sources; and 24
(24) 74.5% in 2029, INCLUDING AT LEAST : 25
(i) 49.5% from Tier 1 renewable sources, including: 26
1. at least 12.5% derived from solar energy; 27
HOUSE BILL 505 9
2. an amount set by the Commission under § 7–704.2(a) of 1
this subtitle derived from offshore wind energy, including at least 800 megawatts of Round 2
2 offshore wind projects; and 3
3. at least 1% derived from post–2022 geothermal systems; 4
and 5
(ii) 2.5% from Tier 2 renewable sources; and 6
(25) 75% in 2030 and later, INCLUDING AT LEAST : 7
(i) 50% from Tier 1 renewable sources, including: 8
1. at least 14.5% derived from solar energy; 9
2. an amount set by the Commission under § 7–704.2(a) of 10
this subtitle derived from offshore wind energy, including at least 1,200 megawatts of 11
Round 2 offshore wind projects; and 12
3. at least 1% derived from post–2022 geothermal systems; 13
and 14
(ii) 2.5% from Tier 2 renewable sources. 15
(c) Before calculating the number of credits required to meet the percentages 16
established under subsection (b) of this section, an electricity supplier shall exclude from 17
its total retail electricity sales all retail electricity sales described in subsection (a)(2) and 18
(3) of this section. 19
(d) (1) Subject to subsections (a) and (c) of this section, an electricity supplier 20
shall meet the [renewable] CLEAN energy portfolio standard for all Tier 1 and Tier 2 21
renewable sources except offshore wind by accumulating the equivalent amount of 22
renewable energy credits that equal the percentages required under this section. 23
(2) An electric company shall meet the [renewable] CLEAN energy portfolio 24
standard for offshore wind in accordance with § 7–704.2 of this subtitle. 25
(e) (1) The required percentage of an electric cooperative’s [renewable] CLEAN 26
energy portfolio standard derived from solar energy shall be 2.5% in 2020 and later. 27
(2) The required percentage of a municipal electric utility’s [renewable] 28
CLEAN energy portfolio standard shall be: 29
(i) in 2021: 30
1. 20.4% from Tier 1 renewable sources, including: 31 10 HOUSE BILL 505
A. at least 1.95% derived from solar energy; and 1
B. an amount set by the Commission under § 7–704.2(a) of 2
this subtitle, not to exceed 2.5%, derived from offshore wind energy; and 3
2. 2.5% from Tier 2 renewable sources; and 4
(ii) in 2022 and later, 20.4% from Tier 1 renewable sources, 5
including: 6
1. at least 1.95% derived from solar energy; and 7
2. an amount set by the Commission under § 7–704.2(a) of 8
this subtitle, not to exceed 2.5%, derived from offshore wind energy. 9
(f) (1) (i) In this subsection the following words have the meanings 10
indicated. 11
(ii) “Area median income” has the meaning stated in § 4–1801 of the 12
Housing and Community Development Article. 13
(iii) “Low or moderate income housing” means housing that is 14
affordable for a household with an aggregate annual income that is below 120% of the area 15
median income. 16
(2) At least 25% of the required percentage of the [renewable] CLEAN 17
energy portfolio STANDARD for each year as set forth in subsection (b) of this section 18
derived from post–2022 geothermal systems shall be derived from systems that were 19
installed: 20
(i) at single or multifamily housing units that qualified as low or 21
moderate income housing on the date the system was installed on the property; or 22
(ii) at institutions that primarily serve low and moderate income 23
individuals and families, including: 24
1. schools with a majority of students who are eligible for free 25
and reduced price meals; 26
2. hospitals with a majority of patients eligible for financial 27
assistance or who are enrolled in Medicaid; and 28
3. other institutions that serve individuals and families 29
where the majority of those served are eligible based on income for federal or State safety 30
net programs. 31
HOUSE BILL 505 11
(G) (1) SUBJECT TO PARAGRAPH (2) OF THIS SUBSECTION , STARTING IN 1
2025, THE COMMISSION SHALL REDU CE THE REQUIREMENTS OF SUBSECTION (B) OF 2
THIS SECTION EACH YE AR BY A PERCENTAGE E QUAL TO THE GENERATI ON OUTPUT 3
OF NUCLEAR ENERGY GENERATING ST ATIONS CONNECTED TO THE ELECTRIC 4
DISTRIBUTION SYSTEM IN THE STATE IN THE PREVIOUS YEAR DIVIDED BY THE 5
ELECTRICITY RETAIL S ALES IN THE SAME YEA R. 6
(2) THE PERCENTAGE REQUIR EMENT REDUCED UNDER PARAGRAPH 7
(1) OF THIS SUBSECTION M AY NOT INCLUDE THE PERCENTAGE REQUIRED FROM 8
TIER 1 RENEWABLE SOURCES OR TIER 2 RENEWABLE SOURCES . 9
7–704. 10
(a) (1) Energy from a Tier 1 renewable source: 11
(i) is eligible for inclusion in meeting the [renewable] CLEAN 12
energy portfolio standard regardless of when the generating system or facility was placed 13
in service; and 14
(ii) may be applied to the percentage requirements of the standard 15
for either Tier 1 renewable sources or Tier 2 renewable sources. 16
(2) (i) Energy from a Tier 1 renewable source under [§ 7–701(s)(1), (5), 17
(9), (10), or (11)] § 7–701(Y)(1), (5), (9), (10), OR (11) of this subtitle is eligible for 18
inclusion in meeting the [renewable] CLEAN energy portfolio standard only if the source is 19
connected with the electric distribution [grid] SYSTEM serving Maryland. 20
(ii) Energy from a Tier 1 renewable source under [§ 7–701(s)(13)] § 21
7–701(Y)(13) of this subtitle is eligible for inclusion in meeting the [renewable] CLEAN 22
energy portfolio standard only if the source: 23
1. is connected with the electric distribution [grid] SYSTEM 24
serving Maryland; or 25
2. processes wastewater from Maryland residents. 26
(iii) If the owner of a solar generating system in this State chooses to 27
sell solar renewable energy credits from that system, the owner must first offer the credits 28
for sale to an electricity supplier or electric company that shall apply them toward 29
compliance with the [renewable] CLEAN energy portfolio standard under § 7–703 of this 30
subtitle. 31
(3) Energy from a Tier 1 renewable source under [§ 7–701(s)(8)] § 32
7–701(Y)(8) of this subtitle is eligible for inclusion in meeting the [renewable] CLEAN 33
energy portfolio standard if it is generated at a dam that existed as of January 1, 2004, 34 12 HOUSE BILL 505
even if a system or facility that is capable of generating electricity did not exist on that 1
date. 2
(4) Energy from a Tier 2 renewable source under [§ 7–701(t)] § 3
7–701(Z) of this subtitle is eligible for inclusion in meeting the [renewable] CLEAN energy 4
portfolio standard if it is generated at a system or facility that existed and was operational 5
as of January 1, 2004, even if the facility or system was not capable of generating electricity 6
on that date. 7
(b) On or after January 1, 2004, an electricity supplier may: 8
(1) receive renewable energy credits; and 9
(2) accumulate renewable energy credits under this subtitle. 10
(c) (1) This subsection applies only to a generating facility that is placed in 11
service on or after January 1, 2004. 12
(2) (i) On or before December 31, 2005, an electricity supplier shall 13
receive 120% credit toward meeting the [renewable] CLEAN energy portfolio standard for 14
energy derived from wind. 15
(ii) After December 31, 2005, and on or before December 31, 2008, 16
an electricity supplier shall receive 110% credit toward meeting the [renewable] CLEAN 17
energy portfolio standard for energy derived from wind. 18
(3) On or before December 31, 2008, an electricity supplier shall receive 19
110% credit toward meeting the [renewable] CLEAN energy portfolio standard for energy 20
derived from methane under [§ 7–701(r)(4)] § 7–701(Y)(4) of this subtitle. 21
(d) An electricity supplier shall receive credit toward meeting the [renewable] 22
CLEAN energy portfolio standard for electricity derived from the biomass fraction of 23
biomass co–fired with other fuels. 24
(e) (1) In this subsection, “customer” means: 25
(i) an industrial electric customer that is not on standard offer 26
service; or 27
(ii) a renewable on–site generator. 28
(2) This subsection does not apply to offshore wind renewable energy 29
credits. 30
HOUSE BILL 505 13
(3) (i) A customer may independently acquire renewable energy credits 1
to satisfy the standards applicable to the customer’s load, including credits created by a 2
renewable on–site generator. 3
(ii) Credits that a customer transfers to its electricity supplier to 4
meet the standard and that the electricity supplier relies on in submitting its compliance 5
report may not be resold or retransferred by the customer or by the electricity supplier. 6
(4) A renewable on–site generator may retain or transfer at its sole option 7
any credits created by the renewable on–site generator, including credits for the portion of 8
its on–site generation from a Tier 1 renewable source or a Tier 2 renewable source that 9
displaces the purchase of electricity by the renewable on–site generator from the grid. 10
(5) A customer that satisfies the standard applicable to the customer’s load 11
under this subsection may not be required to contribute to a compliance fee recovered under 12
§ 7–706 of this subtitle. 13
(6) The Commission shall adopt regulations governing the application and 14
transfer of credits under this subsection consistent with federal law. 15
(f) (1) In order to create a renewable energy credit, a Tier 1 renewable source 16
or Tier 2 renewable source must substantially comply with all applicable environmental 17
and administrative requirements, including air quality, water quality, solid waste, and 18
right–to–know provisions, permit conditions, and administrative orders. 19
(2) (i) This paragraph applies to Tier 1 renewable sources that 20
incinerate solid waste. 21
(ii) At least 80% of the solid waste incinerated at a Tier 1 renewable 22
source facility shall be collected from: 23
1. for areas in Maryland, jurisdictions that achieve the 24
recycling rates required under § 9–505 of the Environment Article; and 25
2. for other states, jurisdictions for which the electricity 26
supplier demonstrates recycling substantially comparable to that required under § 9–505 27
of the Environment Article, in accordance with regulations of the Commission. 28
(iii) An electricity supplier may report credits received under this 29
paragraph based on compliance by the facility with the percentage requirement of 30
subparagraph (ii) of this paragraph during the year immediately preceding the year in 31
which the electricity supplier receives the credit to apply to the standard. 32
(g) (1) Energy from a solar water heating system is eligible for inclusion in 33
meeting the [renewable] CLEAN energy portfolio standard. 34
14 HOUSE BILL 505
(2) A person that owns and operates a solar water heating system shall 1
receive a renewable energy credit equal to the amount of energy, converted from BTUs to 2
kilowatt–hours, that is generated by the system that is used by the person for water 3
heating. 4
(3) The total amount of energy generated and consumed for a 5
nonresidential or commercial solar water heating system shall be measured by an on–site 6
meter that meets the required performance standards of the International Organization of 7
Legal Metrology. 8
(4) The total amount of energy generated and consumed by a residential 9
solar water heating system shall be: 10
(i) measured by a meter that meets the required standards of the 11
International Organization of Legal Metrology; or 12
(ii) 1. measured by the Solar Ratings and Certification 13
Corporation’s OG–300 thermal performance rating for the system or an equivalent 14
certification that the Commission approves in consultation with the Administration; and 15
2. certified to the OG–300 standard of the Solar Ratings and 16
Certification Corporation or an equivalent certification body that the Commission approves 17
in consultation with the Administration. 18
(5) A residential solar water heating system shall be installed in 19
accordance with applicable State and local plumbing codes. 20
(6) A residential solar water heating system may not produce more than 21
five solar renewable energy credits in any 1 year. 22
(h) (1) Except as provided in paragraph (6) of this subsection, energy from a 23
geothermal heating and cooling system, including energy from a legacy geothermal system 24
and energy from a post–2022 geothermal system, is eligible for inclusion in meeting the 25
[renewable] CLEAN energy portfolio standard. 26
(2) A person shall receive a renewable energy credit equal to the amount of 27
energy, converted from BTUs to kilowatt–hours, that is generated by a geothermal heating 28
and cooling system for space heating and cooling or water heating if the person: 29
(i) owns and operates the system; 30
(ii) leases and operates the system; or 31
(iii) contracts with a third party who owns and operates the portion 32
of the system that consists of: 33
HOUSE BILL 505 15
1. a closed loop or a series of closed loop systems in which 1
fluid is permanently confined within a pipe or tubing and does not come in contact with the 2
outside environment; or 3
2. an open loop system in which ground or surface water is 4
circulated in an environmentally safe manner directly into the facility and returned to the 5
same aquifer or surface water source. 6
(3) To determine the energy savings of a geothermal heating and cooling 7
system for a residence, the Commission shall: 8
(i) identify available energy consumption calculators developed by 9
the geothermal heating and cooling industry; 10
(ii) collect the following data provided in the renewable energy credit 11
application that: 12
1. describes the name of the applicant and the address at 13
which the geothermal heating and cooling system is installed; and 14
2. provides the annual BTU energy savings attributable to 15
home heating, cooling, and water heating; and 16
(iii) in determining the annual amount of renewable energy credits 17
awarded for the geothermal heating and cooling system, convert the annual BTUs into 18
annual megawatt–hours. 19
(4) To determine the energy savings of a nonresidential geothermal 20
heating and cooling system, the Commission shall: 21
(i) use the geothermal heating and cooling engineering technical 22
system designs provided with the renewable energy credit application; and 23
(ii) in determining the annual amount of renewable energy credits 24
awarded for the geothermal heating and cooling system, convert the annual BTUs into 25
annual megawatt–hours. 26
(5) A geothermal heating and cooling system shall be installed in 27
accordance with applicable State well construction and local building code standards. 28
(6) (i) A post–2022 geothermal system with a 360,000 BTU capacity is 29
eligible for inclusion in meeting the [renewable] CLEAN energy portfolio standard only if 30
the company installing the system provides for its employees: 31
1. family–sustaining wages; 32
16 HOUSE BILL 505
2. employer–provided health care with affordable 1
deductibles and co–pays; 2
3. career advancement training, as provided in 3
subparagraph (ii) of this paragraph; 4
4. fair scheduling; 5
5. employer–paid workers’ compensation and unemployment 6
insurance; 7
6. a retirement plan; 8
7. paid time off; and 9
8. the right to bargain collectively for wages and benefits. 10
(ii) As part of the career advancement training the installation 11
company provides, the company shall ensure that a minimum of 10% of the employees 12
working on the installation are enrolled in an apprenticeship program approved by and 13
registered with the State or the federal government. 14
(iii) Compliance with this paragraph shall be regulated and enforced 15
by the Department of Labor. 16
(i) (1) Energy from a thermal biomass system is eligible for inclusion in 17
meeting the [renewable] CLEAN energy portfolio standard. 18
(2) (i) A person that owns and operates a thermal biomass system that 19
uses anaerobic digestion is eligible to receive a renewable energy credit. 20
(ii) A person that owns and operates a thermal biomass system that 21
uses a thermochemical process is eligible to receive a renewable energy credit if the person 22
demonstrates to the Maryland Department of the Environment that the operation of the 23
thermal biomass system: 24
1. is not significantly contributing to local or regional air 25
quality impairments; and 26
2. will substantially decrease emissions of oxides of nitrogen 27
beyond that achieved by a direct burn combustion unit through the use of precombustion 28
techniques, combustion techniques, or postcombustion techniques. 29
(3) A person that is eligible to receive a renewable energy credit under 30
paragraph (2) of this subsection shall receive a renewable energy credit equal to the amount 31
of energy, converted from BTUs to kilowatt–hours, that is generated by the thermal 32
biomass system and used on site. 33 HOUSE BILL 505 17
(4) The total amount of energy generated and consumed for a residential, 1
nonresidential, or commercial thermal biomass system shall be measured by an on–site 2
meter that meets the required performance standards established by the Commission. 3
(5) The Commission shall adopt regulations for the metering, verification, 4
and reporting of the output of thermal biomass systems. 5
(j) (1) Energy from a wastewater heating or cooling system is eligible for 6
inclusion in meeting the [renewable] CLEAN energy portfolio standard. 7
(2) A person shall receive a renewable energy credit equal to the amount of 8
energy, converted from BTUs to kilowatt–hours, that is generated by a wastewater heating 9
or cooling system for space heating or cooling, industrial heating or cooling, or another 10
useful thermal purpose, if the person: 11
(i) owns and operates the system; 12
(ii) leases and operates the system; or 13
(iii) contracts with a third party who owns and operates the system. 14
(3) To determine the energy savings of a wastewater heating or cooling 15
system, the Commission shall: 16
(i) use the wastewater heating or cooling engineering technical 17
system designs provided with the renewable energy credit application; and 18
(ii) in determining the annual amount of renewable energy credits 19
awarded for the wastewater heating or cooling system, convert the annual BTUs into 20
annual megawatt–hours. 21
(4) The Commission shall adopt regulations for the metering, verification, 22
and reporting of the output of wastewater heating or cooling systems. 23
7–704.1. 24
(c) An application shall include: 25
(6) a commitment to: 26
(i) abide by the requirements set forth in subsection (f) of this 27
section; [and] 28
(ii) deposit at least $6,000,000, in the manner required under 29
subsection (h) of this section, into the Maryland [Offshore Wind] CLEAN ENERGY 30 18 HOUSE BILL 505
Business Development Fund established under § 9–20C–03 of the State Government 1
Article; 2
(III) DEPOSIT INTO AN ESCR OW ACCOUNT AN AMOUNT : 3
1. DETERMINED BY THE COMMISSION TO DISSUAD E 4
WITHDRAWAL FROM THE OREC PROCESS; AND 5
2. NOT LESS THAN $5,000 PER MEGAWATT OF 6
NAMEPLATE CAPACITY ; AND 7
(IV) ABIDE BY A WITHDRAWA L PROCESS ESTABLISHE D BY THE 8
COMMISSION, INCLUDING FORFEITURE OF ANY DEPOSIT REQUI RED BY THE 9
COMMISSION UNDER ITEM (III) OF THIS ITEM; 10
(e) (1) The Commission shall use the following criteria to evaluate and 11
compare proposed offshore wind projects submitted during an application period: 12
(xiii) estimated ability to assist in meeting the [renewable] CLEAN 13
energy portfolio standard under § 7–703 of this subtitle; and 14
(f) (1) (iii) The Commission may not approve an applicant’s proposed 15
offshore wind project unless: 16
1. for a Round 1 offshore wind project application: 17
A. OVER THE DURATION OF THE PROPOSED OREC 18
PRICING SCHEDULE the projected net rate impact for an average residential customer, 19
based on annual consumption of 12,000 kilowatt–hours[,] AND combined with the projected 20
net rate impact of other Round 1 offshore wind projects, does not exceed [$1.50 per month 21
in 2012 dollars, over the duration of the proposed OREC pricing schedule] AN AMOUNT 22
DETERMINED BY THE COMMISSION; 23
B. OVER THE DURATION OF THE PROPOSED OREC 24
PRICING SCHEDULE the projected net rate impact for all nonresidential customers, 25
considered as a blended average[,] AND combined with the projected net rate impact of 26
other Round 1 offshore wind projects, does not exceed [1.5%] A PERCENTAGE 27
DETERMINED BY THE COMMISSION of nonresidential customers’ total annual electric 28
bills[, over the duration of the proposed OREC pricing schedule]; and 29
C. the price specified in the proposed OREC pricing schedule 30
does not exceed [$190 per megawatt–hour in 2012 dollars] AN AMOUNT DETERMINED BY 31
THE COMMISSION; and 32
2. for a Round 2 offshore wind project application: 33 HOUSE BILL 505 19
A. OVER THE DURATION OF THE PROP OSED OREC 1
PRICING SCHEDULE the projected incremental net rate impact for an average residential 2
customer, based on annual consumption of 12 megawatt–hours[,] AND combined with the 3
projected incremental net rate impact of other Round 2 offshore wind projects, does not 4
exceed [88 cents per month in 2018 dollars, over the duration of the proposed OREC pricing 5
schedule] AN AMOUNT DETERMINED BY THE COMMISSION; 6
B. the projected incremental net rate impact for all 7
nonresidential customers, considered as a blended average[,] AND combined with the 8
projected net rate impact of other Round 2 offshore wind projects, does not exceed [0.9%] A 9
PERCENTAGE DETERMINE D BY THE COMMISSION of nonresidential customers’ total 10
annual electric bills during any year of the proposed OREC pricing schedule; and 11
C. the project is subject to a community benefit agreement. 12
(2) (i) When calculating the net benefits to the State under paragraph 13
(1)(ii) of this subsection, the Commission shall contract for the services of independent 14
consultants and experts. 15
(ii) When calculating the projected net average rate impacts for 16
Round 1 offshore wind projects under paragraph (1)(iii)1A and B of this subsection and for 17
Round 2 offshore wind projects under paragraph (1)(iii)2A and B of this subsection, the 18
Commission shall apply the same net OREC cost per megawatt–hour to residential and 19
nonresidential customers. 20
(4) THE COMMISSION SHALL KEEP ANY AMOUNTS DETERMIN ED 21
UNDER PARAGRAPH (1)(III) OF THIS SUBSECTION C ONFIDENTIAL. 22
7–704.2. 23
(a) (1) The Commission shall determine the offshore wind energy component 24
of the [renewable] CLEAN energy portfolio standard under § 7–703(b)(12) through (25) of 25
this subtitle based on the projected annual creation of ORECs by qualified offshore wind 26
projects. 27
(2) The Commission shall establish the [renewable] CLEAN energy 28
portfolio standard obligation for ORECs on a forward–looking basis that includes a surplus 29
to accommodate reasonable forecasting error in estimating overall electricity sales in the 30
State. 31
(3) Any positive adjustment to the [renewable] CLEAN energy portfolio 32
standard shall be on a forward–looking basis and sufficiently in advance to allow an electric 33
company to reflect OREC costs as a nonbypassable surcharge to distribution customers. 34
(4) The Commission shall adopt regulations that establish: 35 20 HOUSE BILL 505
(i) the offshore wind purchase obligation sufficiently in advance to 1
allow an electric company to reflect OREC costs as a nonbypassable surcharge paid by all 2
distribution customers of the electric company; 3
(ii) a mechanism to adjust the [renewable] CLEAN energy portfolio 4
standard obligation in a given year to accommodate a shortfall of ORECs in one or more 5
earlier years that is the result of the variation between the quantity of ORECs calculated 6
from the [renewable] CLEAN energy portfolio standard obligation and the quantity of 7
ORECs approved in the Commission order for the same years; and 8
(iii) a nonbypassable surcharge that allows an electric company to 9
recover all costs associated with the purchase of ORECs from all distribution customers of 10
the electric company. 11
(b) The Commission shall adopt regulations: 12
(1) establishing an escrow account under Commission supervision; and 13
(2) defining rules that facilitate and ensure the secure and transparent 14
transfer of revenues and ORECs among the parties. 15
(c) (1) Each electric company shall purchase from the escrow account 16
established under this section the number of ORECs required to satisfy the offshore wind 17
energy component of the [renewable] CLEAN energy portfolio standard under § 18
7–703(b)(12) through (25) of this subtitle. 19
(2) (i) Subject to any escrow account reserve requirement the 20
Commission establishes, if there are insufficient ORECs available to satisfy the electric 21
companies’ OREC obligation, the overpayment shall be distributed to electric companies to 22
be refunded or credited to each distribution customer based on the customer’s consumption 23
of electricity supply that is subject to the [renewable] CLEAN energy portfolio standard. 24
(ii) Subject to any escrow account reserve requirement the 25
Commission establishes, the calculation of an electric company’s OREC purchase obligation 26
shall be based on final electricity sales data as reported by the PJM Interconnection as 27
measured at the customer meter. 28
(3) For each OREC for which a qualified offshore wind project receives 29
payment, a qualified offshore wind project shall: 30
(i) sell all energy, capacity, and ancillary services associated with 31
the creation of ORECs into the markets operated by PJM Interconnection; and 32
(ii) distribute the proceeds received from the sales to PJM 33
Interconnection markets, under item (i) of this paragraph to electric companies to be 34 HOUSE BILL 505 21
refunded or credited to each distribution customer based on the customer’s consumption of 1
electricity supply that is subject to the [renewable] CLEAN energy portfolio standard. 2
(4) Notwithstanding § 7–709 of this subtitle, the Commission shall adopt 3
regulations regarding the transfer and expiration of ORECs created by a qualified offshore 4
wind project in excess of the OREC pricing schedule. 5
7–704.4. 6
(c) (1) The Department of General Services shall identify the amount of 7
energy necessary to meet the State’s energy needs. 8
(2) (i) The State shall use the energy procured under subsection (b) of 9
this section to meet the State’s energy needs and retire the associated renewable energy 10
credits to meet its obligations under the [renewable] CLEAN energy portfolio standard and 11
Chapter 38 of the Acts of the General Assembly of 2022. 12
(ii) The State shall be exempted from the [renewable] CLEAN energy 13
portfolio standard requirements under § 7–703 of this subtitle if the Department of General 14
Services procures 100% of the State’s energy needs from the power purchase agreement 15
required under subsection (b) of this section. 16
7–705. 17
(a) (1) Except as provided in paragraph (2) of this subsection, each electricity 18
supplier shall submit a report to the Commission each year in a form and by a date specified 19
by the Commission that: 20
(i) 1. demonstrates that the electricity supplier has complied 21
with the applicable [renewable] CLEAN energy portfolio standard under § 7–703 of this 22
subtitle and includes the submission of the required amount of renewable energy credits; 23
or 24
2. demonstrates the amount of electricity sales by which the 25
electricity supplier failed to meet the applicable [renewable] CLEAN energy portfolio 26
standard; 27
(ii) documents the level of participation of minority business 28
enterprises and minorities in the activities that support the creation of renewable energy 29
credits used to satisfy the standard under § 7–703 of this subtitle, including development, 30
installation, and operation of generating facilities that create credits; 31
(iii) documents the amounts and types of generation associated with 32
renewable energy credits purchased in compliance with § 7–707(b) of this subtitle during 33
the reporting period; and 34
22 HOUSE BILL 505
(iv) documents the amount of renewable energy certificates that do 1
not qualify as renewable energy credits as defined in § 7–701 of this subtitle, including, for 2
each certificate: 3
1. the energy source associated with the certificate, including 4
its location, when it was constructed, and which electric distribution system received the 5
energy; 6
2. whether the purchase of the certificate was bundled with 7
a power purchase agreement from the energy source associated with the certificate; 8
3. whether the certificate was purchased directly from the 9
operator of the energy source or through a third party; and 10
4. any other information required by the Commission. 11
(2) Paragraph (1)(iii) and (iv) of this subsection does not apply to: 12
(i) the Department of General Services’ sale of energy under § 13
7–704.4 of this subtitle; or 14
(ii) a community choice aggregator under § 7–510.3 of this title. 15
(b) (1) This subsection does not apply to a shortfall from the required Tier 1 16
renewable sources that is to be derived from post–2022 geothermal systems. 17
(2) If an electricity supplier fails to comply with the [renewable] CLEAN 18
energy portfolio standard for the applicable year, the electricity supplier shall pay into the 19
Maryland Strategic Energy Investment Fund established under § 9–20B–05 of the State 20
Government Article: 21
(i) except as provided in item (ii) of this paragraph, a compliance fee 22
of: 23
1. the following amounts for each kilowatt–hour of shortfall 24
from required Tier 1 renewable sources other than the shortfall from the required Tier 1 25
renewable sources that is to be derived from solar energy: 26
A. 4 cents through 2016; 27
B. 3.75 cents in 2017 and 2018; 28
C. 3 cents in 2019 through 2023; 29
D. 2.75 cents in 2024; 30
E. 2.5 cents in 2025; 31 HOUSE BILL 505 23
F. 2.475 cents in 2026; 1
G. 2.45 cents in 2027; 2
H. 2.25 cents in 2028 and 2029; and 3
I. 2.235 cents in 2030 and later; 4
2. the following amounts for each kilowatt–hour of shortfall 5
from required Tier 1 renewable sources that is to be derived from solar energy: 6
A. 45 cents in 2008; 7
B. 40 cents in 2009 through 2014; 8
C. 35 cents in 2015 and 2016; 9
D. 19.5 cents in 2017; 10
E. 17.5 cents in 2018; 11
F. 10 cents in 2019; 12
G. 10 cents in 2020; 13
H. 8 cents in 2021; 14
I. 6 cents in 2022; 15
J. 6 cents in 2023; 16
K. 6 cents in 2024[; 17
L. 5.5 cents in 2025; 18
M. 4.5 cents in 2026; 19
N. 3.5 cents in 2027; 20
O. 3.25 cents in 2028; 21
P. 2.5 cents in 2029; and 22
Q. 2.25 cents in 2030] and later; and 23
24 HOUSE BILL 505
3. 1.5 cents for each kilowatt–hour of shortfall from required 1
Tier 2 renewable sources; or 2
(ii) for industrial process load: 3
1. for each kilowatt–hour of shortfall from required Tier 1 4
renewable sources, a compliance fee of: 5
A. 0.8 cents in 2006, 2007, and 2008; 6
B. 0.5 cents in 2009 and 2010; 7
C. 0.4 cents in 2011 and 2012; 8
D. 0.3 cents in 2013 and 2014; 9
E. 0.25 cents in 2015 and 2016; and 10
F. except as provided in paragraph (3) of this subsection, 0.2 11
cents in 2017 and later; and 12
2. nothing for any shortfall from required Tier 2 renewable 13
sources. 14
(3) For industrial process load, the compliance fee for each kilowatt–hour 15
of shortfall from required Tier 1 renewable sources is nothing for the year following any 16
year during which, after final calculations, the net rate impact per megawatt–hour from 17
Round 1 offshore wind projects exceeded $1.65 in 2012 dollars. 18
[(b–1)] (C) If an electricity supplier fails to comply with the [renewable] CLEAN 19
energy portfolio standard that is required to be derived from post–2022 geothermal systems 20
for the applicable year, the electricity supplier shall pay into the Maryland Strategic 21
Energy Investment Fund established under § 9–20B–05 of the State Government Article a 22
compliance fee of the following amounts for each kilowatt–hour of shortfall from required 23
post–2022 geothermal systems: 24
(1) 10 cents in 2023 through 2025; 25
(2) 9 cents in 2026; 26
(3) 8 cents in 2027; and 27
(4) 6.5 cents in 2028 and later. 28
[(c)] (D) The Commission may allow an electricity supplier to submit the report 29
required under § 7–505(b)(4) of this title to demonstrate compliance with the [renewable] 30
CLEAN energy portfolio standard. 31 HOUSE BILL 505 25
[(d)] (E) An aggregator or broker who assists an electricity customer in 1
purchasing electricity but who does not supply the electricity or take title to or ownership 2
of the electricity may require the electricity supplier who supplies the electricity to 3
demonstrate compliance with this subtitle. 4
[(e)] (F) (1) Notwithstanding the requirements of § 7–703(b) of this subtitle, 5
if the actual or projected dollar–for–dollar cost incurred or to be incurred by an electricity 6
supplier solely for the purchase of Tier 1 renewable energy credits derived from solar energy 7
in any 1 year is greater than or equal to, or is anticipated to be greater than or equal to, 8
6.0% of the electricity supplier’s total annual electricity sales revenues in Maryland, the 9
electricity supplier may request that the Commission: 10
(i) delay by 1 year each of the scheduled percentages for solar energy 11
under § 7–703(b) of this subtitle that would apply to the electricity supplier; and 12
(ii) allow the [renewable] CLEAN energy portfolio standard for solar 13
energy for that year to continue to apply to the electricity supplier for the following year. 14
(2) In making its determination under paragraph (1) of this subsection, the 15
Commission shall consider the actual or projected dollar–for–dollar compliance costs of 16
other electricity suppliers. 17
(3) If an electricity supplier makes a request under paragraph (1) of this 18
subsection based on projected costs, the electricity supplier shall provide verifiable evidence 19
of the projections to the Commission at the time of the request. 20
(4) If the Commission allows a delay under paragraph (1) of this 21
subsection: 22
(i) the [renewable] CLEAN energy portfolio standard for solar 23
energy applicable to the electricity supplier under the delay continues for each subsequent 24
consecutive year that the actual or projected dollar–for–dollar costs incurred, or to be 25
incurred, by the electricity supplier solely for the purchase of solar renewable energy credits 26
is greater than or equal to, or is anticipated to be greater than or equal to, 6.0% of the 27
electricity supplier’s total annual retail electricity sales revenues in Maryland; and 28
(ii) the [renewable] CLEAN energy portfolio standard for solar 29
energy applicable to the electricity supplier under the delay is increased to the next 30
scheduled percentage increase under § 7–703(b) of this subtitle for each year in which the 31
actual or projected dollar–for–dollar costs incurred, or to be incurred, by the electricity 32
supplier solely for the purchase of solar renewable energy credits is less than, or is 33
anticipated to be less than, 6.0% of the electricity supplier’s total annual retail electricity 34
sales revenues in Maryland. 35
7–706. 36
26 HOUSE BILL 505
(a) (1) Except as provided in paragraph (2) of this subsection, in accordance 1
with the obligation to provide standard offer service through the bid process created under 2
§ 7–510 of this title, the Commission shall allow an electricity supplier to recover actual 3
dollar–for–dollar costs incurred, including a compliance fee under § 7–705 of this subtitle, 4
in complying with a State–mandated [renewable] CLEAN energy portfolio standard. 5
(2) In accordance with the Phase II settlement agreement approved by the 6
Commission in Order No. 78710 in Case No. 8908 on September 30, 2003, for any 7
full–service agreement executed before the [renewable] CLEAN energy PORTFOLIO 8
standard under this subtitle applies to an electric company, the electric company and its 9
wholesale electricity suppliers may pass through their commercially reasonable additional 10
costs, if any, associated with complying with the standard, through the end of the year of 11
standard offer service in which the requirement took effect. 12
(b) An electricity supplier may recover a compliance fee if: 13
(1) the payment of a compliance fee is the least–cost measure to customers 14
as compared to the purchase of Tier 1 renewable sources to comply with a [renewable] 15
CLEAN energy portfolio standard; 16
(2) there are insufficient Tier 1 renewable sources available for the 17
electricity supplier to comply with a [renewable] CLEAN energy portfolio standard; or 18
(3) a wholesale electricity supplier defaults or otherwise fails to deliver 19
renewable energy credits under a supply contract approved by the Commission. 20
7–707. 21
(c) An electricity supplier that supplies electricity to residential retail electric 22
customers may not market electricity as green power unless: 23
(1) the percentage of the electricity being offered, or the equivalent number 24
of renewable energy credits associated with the electricity being marketed as green power, 25
that is eligible for inclusion in meeting the [renewable] CLEAN energy portfolio standard 26
equals or exceeds the greater of: 27
(i) 51%; or 28
(ii) 1% higher than the [renewable] CLEAN energy portfolio 29
standard for the year the electricity is provided to the customer; 30
(d) (2) (i) Each year the Commission shall hold a proceeding to set a price 31
per megawatt–hour for electricity marketed as green power under this section that may 32
not be exceeded by an electricity supplier except as provided in paragraph (3) of this 33
subsection. 34
HOUSE BILL 505 27
(ii) Subject to paragraph (4) of this subsection, the price set by the 1
Commission under subparagraph (i) of this paragraph may: 2
1. exceed the maximum price per megawatt–hour that is 3
authorized under § 7–510(d)(2)(i) of this title; and 4
2. differ based on the amount and source of the electricity 5
generation. 6
(iii) During a proceeding held under subparagraph (i) of th is 7
paragraph, the Commission: 8
1. shall consider: 9
A. the price of the energy purchased, including the total cost 10
of the renewable energy credits; 11
B. the amount of electricity that is eligible for inclusion in 12
meeting the [renewable] CLEAN energy portfolio standard; 13
C. the state in which the electricity was generated; and 14
D. applicable market data; and 15
2. may consider whether the purchase of renewable energy 16
credits was bundled with a power purchase agreement from the energy sources associated 17
with the credit. 18
(3) (i) On request by an electricity supplier, the Commission shall hold 19
a proceeding to set a price per megawatt–hour for electricity marketed as green power for 20
that electricity supplier. 21
(ii) Subject to paragraph (4) of this subsection, at a proceeding held 22
under this paragraph the Commission may set a price per megawatt–hour that is higher 23
than the price determined in the proceeding held under paragraph (2) of this subsection for 24
an electricity supplier if: 25
1. the electricity supplier demonstrates to the Commission’s 26
satisfaction, based on an independent third–party audit, that the actual cost to the 27
electricity supplier for the generation or supply of electricity exceeds that of the price 28
determined through the proceeding held in accordance with paragraph (2) of this 29
subsection; 30
2. the increased price reflects only the cost of the electricity 31
marketed as green power and is not associated with any of the electricity supplier’s other 32
costs; and 33
28 HOUSE BILL 505
3. the electricity supplier demonstrates to the Commission’s 1
satisfaction that the electricity supplier has a significant long–term investment in 2
renewable energy that meets the [renewable] CLEAN energy portfolio standard under § 3
7–703 of this subtitle. 4
(iii) During a proceeding held under this paragraph, the Commission 5
shall consider: 6
1. whether the purchase of renewable energy credits was 7
bundled with a power purchase agreement from the energy sources associated with the 8
credit; 9
2. the price of the energy purchased, including the total cost 10
of the renewable energy credits or power purchase agreements; 11
3. the amount of electricity that is eligible for inclusion in 12
meeting the [renewable] CLEAN energy portfolio standard; 13
4. the state in which the electricity was generated; and 14
5. applicable market data. 15
(g) In addition to the disclosure required under subsection (f) of this section, the 16
Commission shall adopt regulations that require an electricity supplier, other than the 17
Department of General Services when the Department of General Services sells energy 18
under § 7–704.4 of this subtitle or a community choice aggregator under § 7–510.3 of this 19
title, that offers green power for sale to residential retail customers to include in the 20
electricity supplier’s marketing materials a disclosure, written in plain language, that 21
explains: 22
(4) the percentage of electricity that would be provided by the electricity 23
supplier that is eligible for inclusion in meeting the [renewable] CLEAN energy portfolio 24
standard; and 25
7–709. 26
(a) An electricity supplier may use accumulated renewable energy credits to meet 27
the [renewable] CLEAN energy portfolio standard, including credits created by a renewable 28
on–site generator. 29
(c) (1) (i) If an electricity supplier purchases solar renewable energy 30
credits directly from a renewable on–site generator with a capacity that exceeds 10 31
kilowatts to meet the solar component of the Tier 1 [renewable] CLEAN energy portfolio 32
standard, the duration of the contract term for the solar renewable energy credits may not 33
be less than 15 years. 34
7–709.1. 35 HOUSE BILL 505 29
(c) (1) Under the Program, a certified system shall generate certified SRECs. 1
(2) Except as provided in paragraph (3) of this subsection, the provisions of 2
this subtitle relating to renewable energy credits shall apply to certified SRECs. 3
(3) A certified SREC shall have a compliance value of 150% for electricity 4
suppliers to put toward meeting the [renewable] CLEAN energy portfolio standard for 5
energy derived from solar energy under § 7–703 of this subtitle. 6
(d) To be eligible for certification under the Program, a solar energy generating 7
system shall: 8
(2) be eligible for inclusion in meeting the [renewable] CLEAN energy 9
portfolio standard; 10
(i) (1) A certified system shall continue to be eligible to generate certified 11
SRECs for 15 years after the date of certification by the Commission, or January 1, 2025, 12
whichever is later, after which the system shall be eligible to generate noncertified solar 13
renewable energy credits as long as the system meets the requirements as a Tier 1 14
renewable source under this subtitle. 15
(2) The Commission shall: 16
(i) on or before January 1, 2025, begin determining eligibility of 17
solar energy generating systems to be certified under the Program; and 18
(ii) on or before July 1, 2026, implement a revised system to review 19
and ensure compliance with the [renewable] CLEAN energy portfolio standard. 20
(3) An electricity supplier may apply the certified SRECs generated in 21
accordance with this section toward the [renewable] CLEAN energy portfolio standard 22
starting with the 2025 compliance year. 23
(4) Notwithstanding any other law, the Commission shall allow electricity 24
suppliers to demonstrate compliance with the [renewable] CLEAN energy portfolio 25
standard for the 2025 compliance year by submitting information between July 1, 2026, 26
and December 31, 2026, using the revised system developed in accordance with paragraph 27
(2)(ii) of this subsection. 28
SUBTITLE 12. NUCLEAR ENERGY PROCUREMENT . 29
7–1201. 30
(A) AFTER THE EFFECTIVE D ATE OF COMMISSION REGULATION S 31
IMPLEMENTING THIS SU BTITLE, A PERSON MAY SUBMIT AN APPLICATION TO TH E 32 30 HOUSE BILL 505
COMMISSION FOR APPROV AL OF A PROPOSED NUC LEAR ENERGY GENERATI ON 1
PROJECT. 2
(B) (1) ON RECEIPT OF AN APPLICATION FOR APPR OVAL OF A PROPOSED 3
NUCLEAR ENERGY GENER ATION PROJECT , THE COMMISSION SHALL : 4
(I) OPEN AN APPLICATION PERIOD WHERE OTHER I NTERESTED 5
PERSONS MAY SUBMIT A PPLICATIONS FOR APPR OVAL OF A PROPOSED N UCLEAR 6
ENERGY GENERATION PR OJECT; AND 7
(II) PROVIDE NOTICE THAT THE COMMISSION IS ACCEPTI NG 8
APPLICATIONS FOR APP ROVAL OF PROPOSED NU CLEAR ENERGY GENERAT ION 9
PROJECTS. 10
(2) THE COMMISSION SHALL SET THE CLOSING DATE FOR THE 11
APPLICATION PERIOD T O BE NOT SOONER THAN 90 DAYS AFTER THE NOTIC E 12
PROVIDED UNDER PARAGRAPH (1) OF THIS SUBSECTION . 13
(C) THE COMMISSION SHALL PROV IDE AT LEAST TWO ADD ITIONAL 14
APPLICATION PERIODS BEFORE JANUARY 1, 2031. 15
(D) THE COMMISSION MAY PROVID E ADDITIONAL APPLICA TION PERIODS 16
THAT MEET THE REQUIR EMENTS OF THIS SECTI ON. 17
7–1202. 18
UNLESS EXTENDED BY MU TUAL CONSENT OF THE PARTIES, THE COMMISSION 19
SHALL APPROVE , CONDITIONALLY APPROV E, OR DENY AN APPLICATI ON WITHIN 1 20
YEAR AFTER THE CLOSE OF THE APPLICATION P ERIOD. 21
7–1203. 22
AN APPLICATION SHALL INCLUDE: 23
(1) A DETAILED DESCRIPTION AND FINA NCIAL ANALYSIS OF TH E 24
PROPOSED NUCLEAR ENE RGY GENERATION PROJE CT; 25
(2) THE PROPOSED METHOD OF FINANCING THE PRO JECT, 26
INCLUDING DOCUMENTAT ION DEMONSTRATING TH AT THE APPLICANT HAS APPLIED 27
FOR ALL CURRENT ELIG IBLE STATE AND FEDERAL GRA NTS, REBATES, TAX CREDITS, 28
LOAN GUARANTEES , AND OTHER PROGRAMS A VAILABLE TO OFFSET T HE COST OF 29
THE PROJECT OR PROVI DE TAX ADVANTAGES ; 30
HOUSE BILL 505 31
(3) A COMMITMENT THAT TH E APPLICANT WILL USE BEST EFFORTS 1
TO APPLY FOR ALL ELI GIBLE STATE AND FEDERAL GRA NTS, REBATES, TAX CREDITS, 2
LOAN GUARANTEES , OR OTHER SIMILAR BEN EFITS AS THOSE BENEF ITS BECOME 3
AVAILABLE; 4
(4) A COST–BENEFIT ANALYSIS THA T SHALL INCLUDE AT A MINIMUM: 5
(I) A DETAILED INPUT –OUTPUT ANALYSIS OF T HE IMPACT OF 6
THE PROJECT ON INCOM E, EMPLOYMENT , WAGES, AND TAXES IN THE STATE; 7
(II) DETAILED INFORMATION CONCERNING ASSUMED 8
EMPLOYMENT IMPACTS I N THE STATE, INCLUDING THE EXPECT ED DURATION OF 9
EMPLOYMENT OPPORTUNI TIES, THE SALARY OF EACH P OSITION, AND OTHER 10
SUPPORTING EVIDENCE OF EMPLOYMENT IMPACT S; 11
(III) AN ANALYSIS OF THE A NTICIPATED ENVIRONME NTAL 12
BENEFITS, HEALTH BENEFITS , AND ENVIRONMENTAL IM PACTS OF THE PROJECT TO 13
THE CITIZENS OF THE STATE; 14
(IV) AN ANALYSIS OF ANY I MPACT ON RESIDENTIAL , 15
COMMERCIAL , AND INDUSTRIAL RATEP AYERS OVER THE LIFE OF THE PROJECT; 16
(V) AN ANALYSIS OF ANY L ONG–TERM EFFECT ON ENERG Y AND 17
CAPACITY MARKETS AS A RESULT OF THE PROJ ECT; 18
(VI) AN ANALYSIS OF ANY I MPACT ON BUSINESSES IN THE STATE; 19
AND 20
(VII) OTHER BENEFITS RESUL TING FROM THE PROJEC T, SUCH AS 21
INCREASED IN–STATE CONSTRUCTION , OPERATION AND MAINTE NANCE NEEDS , AND 22
EQUIPMENT PURCHASES ; 23
(5) A PROPOSED LONG –TERM PRICING SCHEDUL E FOR THE PROJECT 24
THAT SHALL SPECIFY A PRICE FOR THE GENERA TION ATTRIBUTES , INCLUDING THE 25
ENERGY, CAPACITY, ANCILLARY SERVICES , AND ENVIRONMENTAL ATTRIB UTES; 26
(6) A DECOMMISSIONING AN D WASTE STORAGE PLAN FOR THE 27
PROJECT, INCLUDING PROVISIONS FOR DECOMMISSIONING OR WASTE STORAGE AS 28
REQUIRED BY THE U.S. NUCLEAR REGULATORY COMMISSION; 29
(7) A COMMITMENT TO : 30
(I) ABIDE BY THE REQUIREMENTS SET FOR TH IN § 7–1206 OF 31
THIS SUBTITLE; AND 32 32 HOUSE BILL 505
(II) DEPOSIT AT LEAST $6,000,000 INTO THE MARYLAND CLEAN 1
ENERGY BUSINESS DEVELOPMENT FUND ESTABLISHED UNDE R § 9–20C–03 OF THE 2
STATE GOVERNMENT ARTICLE; 3
(8) A DESCRIPTION OF THE APPLICANT’S PLAN FOR ENGAGING SMALL 4
BUSINESSES, AS DEFINED IN § 14–501 OF THE STATE FINANCE AND PROCUREMENT 5
ARTICLE; 6
(9) IF APPLICABLE, THE STATEMENT SPECIF IED IN § 7–1204(C)(2) OF 7
THIS SUBTITLE; AND 8
(10) ANY OTHER INFORMATIO N THE COMMISSION REQUIRES . 9
7–1204. 10
(A) THE COMMISSION SHALL USE THE FOLLOWING CRITER IA TO EVALUATE 11
AND COMPARE PROPOSED NUCLEAR ENERGY GENER ATION PROJECTS SUBMI TTED 12
DURING AN APPLICATIO N PERIOD: 13
(1) THE LOWEST COST IMPA CT ON RATEPAYERS OF THE PRICE SET 14
UNDER A PROPOSED PRI CING SCHEDULE ; 15
(2) POTENTIAL REDUCTIONS IN TRANSMISSION CONG ESTION PRICES 16
WITHIN THE STATE; 17
(3) POTENTIAL CHANGES IN CAPACITY PRICES WITH IN THE STATE; 18
(4) POTENTIAL REDUCTIONS IN LOCATIONAL MARGIN AL PRICING; 19
(5) POTENTIAL LONG –TERM CHANGES IN CAPA CITY PRICES WITHIN 20
THE STATE FROM THE PROJEC T AS IT COMPARES TO CONVENTIONAL ENERGY 21
SOURCES; 22
(6) THE EXTENT TO WHICH THE COST–BENEFIT ANALYSIS SUB MITTED 23
UNDER § 7–1203 OF THIS SUBTITLE DEM ONSTRATES POSITIVE N ET ECONOMIC , 24
ENVIRONMENTAL , AND HEALTH BENEFITS TO THE STATE; 25
(7) THE EXTENT TO WHICH AN APPLICANT ’S PLAN FOR ENGAGING 26
SMALL BUSINESSES MEE TS THE GOALS SPECIFI ED IN TITLE 14, SUBTITLE 5 OF THE 27
STATE FINANCE AND PROCUREMENT ARTICLE; 28
(8) THE EXTENT TO WHICH AN APPLICANT’S PLAN PROVIDES FOR THE 29
USE OF SKILLED LABOR , PARTICULARLY WITH RE GARD TO THE CONSTRUC TION AND 30 HOUSE BILL 505 33
MANUFACTURING COMPON ENTS OF THE PROJECT , THROUGH OUTREACH , HIRING, 1
OR REFERRAL SYSTEMS THAT ARE AFFILIATED WITH REGISTERED APPR ENTICESHIP 2
PROGRAMS UNDER TITLE 11, SUBTITLE 4 OF THE LABOR AND EMPLOYMENT 3
ARTICLE; 4
(9) THE EXTENT TO WHICH AN APPLICANT’S PLAN PROVIDES FOR THE 5
USE OF AN AGREEMENT DESIGNED TO ENSURE T HE USE OF SKILLED LA BOR AND TO 6
PROMOTE THE PROMPT , EFFICIENT, AND SAFE COMPLETION OF THE PROJECT , 7
PARTICULARLY WITH RE GARD TO THE CON STRUCTION, MANUFACTURING , AND 8
MAINTENANCE OF THE P ROJECT; 9
(10) THE EXTENT TO WHICH AN APPLICANT ’S PLAN PROVIDES FOR 10
COMPENSATION TO ITS EMPLOYEES AND SUBCON TRACTORS CONSISTENT WITH 11
WAGES OUTLINED UNDER §§ 17–201 THROUGH 17–227 OF THE STATE FINANCE AND 12
PROCUREMENT ARTICLE; 13
(11) SITING AND PROJECT F EASIBILITY; 14
(12) THE EXTENT TO WHICH THE PROJECT WOULD RE QUIRE 15
TRANSMISSION OR DIST RIBUTION INFRASTRUCT URE IMPROVEMENTS IN THE 16
STATE; 17
(13) THE ESTIMATED ABILIT Y OF THE PROJECT TO ASSIST IN MEETING 18
THE CLEAN ELECTRICITY GO AL UNDER § 7–702 OF THIS TITLE; AND 19
(14) ANY OTHER CRITERIA T HAT THE COMMISSION DETERMINES ARE 20
APPROPRIATE . 21
(B) IN EVALUATING AND COM PARING AN APPLICANT ’S PROPOSED NUCLEAR 22
ENERGY GENERATION PR OJECT UNDER SUBSECTI ON (A) OF THIS SECT ION, THE 23
COMMISSION MAY CONTRA CT FOR THE SERVICES OF INDEPENDENT CONSU LTANTS 24
AND EXPERTS. 25
(C) (1) IN THIS PARAGRAPH , “MINORITY” MEANS AN INDIVIDUAL WHO IS 26
A MEMBER OF ANY OF T HE GROUPS LISTED IN § 14–301(K)(1)(I) OF THE STATE 27
FINANCE AND PROCUREMENT ARTICLE. 28
(2) IF AN APPLICANT IS SE EKING INVESTORS IN A PROPOSED 29
NUCLEAR ENERGY GENER ATION PROJECT , THE APPLICANT SHALL TAKE THE 30
FOLLOWING STEPS BEFO RE THE COMMISSION MAY APPROV E THE PROPOSED 31
PROJECT TO: 32
(I) MAKE SERIOUS , GOOD–FAITH EFFORTS TO SOL ICIT AND 33
INTERVIEW A REASONAB LE NUMBER OF MINORIT Y INVESTORS; 34 34 HOUSE BILL 505
(II) AS PART OF THE APPLI CATION, SUBMIT A STATEMENT T O 1
THE COMMISSION THAT LISTS THE NAMES AND ADDRES SES OF ALL MINORITY 2
INVESTORS INTERVIEWE D AND WHETHER OR NOT ANY OF THOSE INVESTO RS HAVE 3
PURCHASED AN EQUITY SHARE IN THE ENTITY SUBMITTING THE APPLI CATION; 4
(III) SIGN A MEMORANDUM OF UNDERSTANDING WITH T HE 5
COMMISSION THAT REQUI RES THE APPLICANT TO AGAIN MAKE SERIOUS , 6
GOOD–FAITH EFFORTS TO SOL ICIT AND INTERVIEW A REASONABLE NUMBER OF 7
MINORITY INVESTORS I N ANY FUTURE ATTEMPT S TO RAISE VENTURE C APITAL OR 8
ATTRACT NEW INVESTOR S TO THE PROJECT ; 9
(IV) SIGN A MEMORANDUM OF UNDERSTANDING WITH T HE 10
COMMISSION THAT REQUI RES THE APPLICANT TO USE BEST EFFORTS AND 11
EFFECTIVE OUTREACH T O OBTAIN , AS A GOAL , CONTRACTORS AND 12
SUBCONTRACTORS FOR T HE PROJECT THAT ARE MINORITY BUSINESS 13
ENTERPRISES , TO THE EXTENT PRACTI CABLE, AS SUPPORTED BY A DI SPARITY 14
STUDY; AND 15
(V) SIGN A MEMORANDUM OF UNDERSTANDING WITH T HE 16
COMMISSION AND SKILLE D LABOR ORGANIZATION S THAT REQUIRES THE 17
APPLICANT TO FOLLOW THE PORTIONS OF THE APPLICANT’S PLAN THAT RELATE T O 18
THE CRITERIA SET FOR TH IN SUBSECTION (A)(8) AND (9) OF THIS SECTION. 19
(3) THE GOVERNOR’S OFFICE OF SMALL, MINORITY, AND WOMEN 20
BUSINESS AFFAIRS, IN CONSULTATION WI TH THE OFFICE OF THE ATTORNEY 21
GENERAL, SHALL PROVIDE ASSIST ANCE TO ALL POTENTIA L APPLICANTS AND 22
POTENTIAL MINORITY I NVESTORS TO SATISFY THE REQUIREMENTS UND ER 23
PARAGRAPH (2)(I) AND (III) OF THIS SUBSECTION . 24
7–1205. 25
(A) THE COMMISSION MAY NOT AP PROVE AN APPLICANT’S PROPOSED 26
NUCLEAR ENERGY GENER ATION PROJECT UNLESS : 27
(1) THE PROJECT IS CONNE CTED TO THE ELECTRIC DISTRIBUTION 28
SYSTEM SERVING THE STATE; 29
(2) OVER THE DURATION OF THE PROPOSED LONG –TERM PRICING 30
SCHEDULE, THE PROJECTED NET RA TE IMPACT FOR AN AVERAGE RESIDENTIAL 31
CUSTOMER, BASED ON ANNUAL CONS UMPTION OF 12,000 KILOWATT–HOURS AND 32
COMBINED WITH THE PR OJECTED NET RATE IMP ACT OF OTHER NUCLEAR ENERGY 33
GENERATION PROJECTS , DOES NOT EXCEED AN A MOUNT DETERMINED BY THE 34
COMMISSION; 35 HOUSE BILL 505 35
(3) OVER THE DURATION OF THE PROPOSED LONG –TERM PRICING 1
SCHEDULE, THE PROJECTED NET RA TE IMPACT FOR ALL NO NRESIDENTIAL 2
CUSTOMERS , CONSIDERED AS A BLEN DED AVERAGE AND COMB INED WITH THE 3
PROJECTED NET RATE I MPACT OF OTHER NUCLE AR ENERGY GENERATION 4
PROJECTS, DOES NOT EXCEED A PE RCENTAGE DETERMINED BY THE COMMISSION 5
OF NONRESIDENTIAL CU STOMERS’ TOTAL ANNUAL ELECTRI C BILLS; AND 6
(4) THE PRICE SPECIFIED IN THE PROPOSED LONG –TERM PRICING 7
SCHEDULE DOES NOT EX CEED AN AMOUNT DETER MINED BY THE COMMISSION. 8
(B) WHEN CALCULATING THE PROJECTED NET AVERAG E RATE IMPACTS 9
FOR NUCLEAR ENERGY G ENERATION PROJECTS U NDER THIS SECTION , THE 10
COMMISSION SHALL APPL Y THE SAME NET LONG –TERM COST PER 11
MEGAWATT –HOUR TO RESIDENTIAL AND NONRESIDENTIAL C USTOMERS. 12
(C) THE COMMISSION SHALL KEEP CONFIDENTIA L ANY AMOUNTS 13
DETERMINED UNDER SUB SECTION (A) OF THIS SECTION. 14
7–1206. 15
(A) AN APPLICATION FOR A PROPOSED NUCLEAR ENE RGY GENERATION 16
PROJECT IS SUBJECT T O A COMMUNITY BENEFI T AGREEMENT . 17
(B) A COMMUNITY BENEFIT AG REEMENT SHALL : 18
(1) BE APPLICABLE TO THE DEVELOPMENT OF A NUCLEAR ENERGY 19
GENERATION PROJECT ; 20
(2) PROMOTE INCREASED OP PORTUNITIES FOR LOCA L BUSINESSES 21
AND SMALL, MINORITY, WOMEN–OWNED, AND VETERAN –OWNED BUSINESSES IN THE 22
CLEAN ENERGY INDUSTR Y; 23
(3) ENSURE THE TIMELY , SAFE, AND EFFICIENT C OMPLETION OF THE 24
PROJECT BY: 25
(I) FACILITATING A STEAD Y SUPPLY OF HIGHLY S KILLED 26
CRAFT WORKERS WHO SH ALL BE PAID NOT LESS THAN THE PREVAILING WAGE RATE 27
DETERMINED BY THE COMMISSIONER OF LABOR AND INDUSTRY UNDER TITLE 17, 28
SUBTITLE 2 OF THE STATE FINANCE AND PROCUREMENT ARTICLE; AND 29
(II) GUARANTEEING THAT TH E CONSTRUCTION WORK 30
PERFORMED IN CONNECT ION WITH THE PROJECT WILL BE SUBJECT TO A N 31
AGREEMENT THAT : 32 36 HOUSE BILL 505
1. IS WITH ONE OR MORE LABOR ORGANIZATIONS ; AND 1
2. ESTABLISHES, IN ACCORDANCE WITH T HIS SECTION, 2
THE TERMS AND CONDIT IONS OF EMPLOYMENT A T THE CONSTRUCTION S ITE OF THE 3
PROJECT OR A PORTION OF THE PROJECT ; 4
(4) PROMOTE SAFE COMPLET ION OF THE PROJECT B Y ENSURING 5
THAT AT LEAST 80% OF THE CRAFT WORKERS ON THE PROJECT HAVE COMPLETED 6
AN OCCUPATION AL SAFETY AND HEALTH ADMINISTRATION 10–HOUR OR 30–HOUR 7
COURSE; 8
(5) PROMOTE CAREER TRAIN ING OPPORTUNITIES IN THE 9
MANUFACTURING , MAINTENANCE , AND CONSTRUCTION IND USTRIES FOR LOCAL 10
RESIDENTS, VETERANS, WOMEN, AND MINORITIES ; 11
(6) PROVIDE FOR BEST EFF ORTS AND EFFECTIVE OUTREA CH TO 12
OBTAIN, AS A GOAL, THE USE OF A WORKFOR CE INCLUDING MINORIT IES, TO THE 13
EXTENT PRACTICABLE ; 14
(7) REFLECT A 21ST–CENTURY LABOR –MANAGEMENT APPROACH BY 15
DEVELOPERS AND SUPPL IERS BASED ON COOPER ATION, HARMONY, AND 16
PARTNERSHIP THAT PR OACTIVELY SEEKS TO E NSURE THAT WORKERS C AN FREELY 17
CHOOSE TO BOTH ORGAN IZE AND COLLECTIVELY BARGAIN; 18
(8) PROVIDE PLANS TO USE DOMESTIC IRON , STEEL, AND 19
MANUFACTURED GOODS T O THE GREATEST EXTEN T PRACTICABLE BY DIS CLOSING 20
CONTRACTED SUPPLIERS ; 21
(9) USE LOCALLY AND DOMESTIC ALLY MANUFACTURED 22
CONSTRUCTION MATERIA LS AND COMPONENTS ; 23
(10) MAXIMIZE THE USE OF SKILLED LOCAL LABOR , PARTICULARLY 24
WITH REGARD TO THE C ONSTRUCTION AND MANU FACTURING COMPONENTS OF THE 25
PROJECT, USING METHODS INCLUD ING OUTREACH , HIRING, OR REFERRAL 26
METHODS THAT ARE AFF ILIATED WITH REGISTE RED APPRENTICESHIP P ROGRAMS 27
UNDER TITLE 11, SUBTITLE 4 OF THE LABOR AND EMPLOYMENT ARTICLE; 28
(11) GUARANTEE AGAINST ST RIKES, LOCKOUTS, AND SIMILAR 29
DISRUPTIONS; 30
(12) ENSURE THAT ALL WORK ON THE PROJECT FULLY CONFOR MS TO 31
ALL RELEVANT STATE AND FEDERAL LAW S, RULES, AND REGULATIONS ; 32
HOUSE BILL 505 37
(13) CREATE MUTUALLY BIND ING PROCEDURES FOR R ESOLVING 1
LABOR DISPUTES ARISI NG DURING THE TERM O F THE PROJECT; 2
(14) SET FORTH OTHER MECH ANISMS FOR LABOR –MANAGEMENT 3
COOPERATION ON MATTER S OF MUTUAL INTEREST AND CONCERN , INCLUDING 4
PRODUCTIVITY , QUALITY OF WORK , SAFETY, AND HEALTH; AND 5
(15) BIND ALL CONTRACTORS AND SUBCONTRACTORS T O THE TERMS 6
OF THE AGREEMENT THR OUGH THE INCLUSION O F APPROPRIATE PROVIS IONS IN 7
ALL RELEVANT SOLICITATION AN D CONTRACT DOCUMENTS . 8
7–1207. 9
(A) AN ORDER THE COMMISSION ISSUES APP ROVING A PROPOSED 10
NUCLEAR ENERGY GENER ATION PROJECT SHALL : 11
(1) SPECIFY THE LONG –TERM PRICING SCHEDUL E; 12
(2) SPECIFY THE DURATION OF THE LONG–TERM PRICING SCHEDU LE, 13
NOT TO EXCEED 30 YEARS; 14
(3) PROVIDE THAT : 15
(I) A PAYMENT MAY NOT BE MADE UNDER A LONG –TERM 16
PRICING SCHEDULE UNT IL ELECTRICITY SUPPL Y IS GENERATED BY TH E PROJECT; 17
AND 18
(II) RATEPAYERS AND THE STATE SHALL BE HELD H ARMLESS 19
FOR ANY COST OVERRUN S ASSOCIATED WITH THE PROJECT; AND 20
(4) REQUIRE THAT ANY DEB T INSTRUMENT ISSUED IN CONNECTION 21
WITH THE PROJECT INC LUDE LANGUAGE SPECIF YING THAT THE DEBT I NSTRUMENT 22
DOES NOT ESTABLISH A DEBT, OBLIGATION, OR LIABILITY OF THE STATE. 23
(B) AN ORDER APPROVING A PROPOSED NUCLEAR ENE RGY GENERATION 24
PROJECT VESTS THE OW NER OF THE PROJECT W ITH THE RIGHT TO REC EIVE 25
PAYMENTS ACCORDING T O THE TERMS IN THE O RDER. 26
(C) ON OR BEFORE MARCH 1 EACH YEAR, THE COMMISSION SHALL REPO RT 27
TO THE GOVERNOR AND , IN ACCORDANCE WITH § 2–1257 OF THE STATE 28
GOVERNMENT ARTICLE, TO THE SENATE COMMITTEE ON EDUCATION, ENERGY, 29
AND THE ENVIRONMENT AND THE HOUSE ECONOMIC MATTERS COMMITTEE ON : 30
38 HOUSE BILL 505
(1) APPLICANT COMPLIANCE WITH THE MINORITY BU SINESS 1
ENTERPRISE PARTICIPA TION GOALS UNDER § 7–1204(C) OF THIS SUBTITLE; AND 2
(2) WITH RESPECT TO THE COMMUNITY BENEFIT AG REEMENT UNDER 3
§ 7–1206 OF THIS SUBTITLE: 4
(I) THE AVAILABILITY AND USE OF OPPORTUNITIES FOR LOCAL 5
BUSINESSES AND SMALL , MINORITY, WOMEN–OWNED, AND VETERAN –OWNED 6
BUSINESSES; 7
(II) THE SUCCESS OF EFFORTS T O PROMOTE CAREER TRA INING 8
OPPORTUNITIES IN THE MANUFACTURING , MAINTENANCE , AND CONSTRUCTION 9
INDUSTRIES FOR LOCAL RESIDENTS, VETERANS, WOMEN, AND MINORITIES ; AND 10
(III) COMPLIANCE WITH THE MINORITY WORKFORCE G OAL 11
UNDER § 7–1206(B) OF THIS SUBTITLE. 12
7–1208. 13
(A) (1) IF THE COMMISSION APPROVES P ROPOSALS THAT 14
DEMONSTRATE , BASED ON THE CRITERI A SPECIFIED IN § 7–1203 OF THIS SUBTITLE, 15
POSITIVE NET ECONOMI C, ENVIRONMENTAL , AND HEALTH BENEFITS TO THE STATE, 16
THE COMMISSION SHALL APPR OVE ORDE RS TO FACILITATE THE FINANCING OF 17
NUCLEAR ENERGY GENER ATION PROJECTS . 18
(2) WHEN CALCULATING THE NET BENEFITS TO THE STATE UNDER 19
PARAGRAPH (1) OF THIS SUBSECTION , THE COMMISSION MAY CONTRA CT FOR THE 20
SERVICES OF INDEPEND ENT CONSULTANTS AND EXPERTS. 21
(B) THE COMMISSION MAY NOT AP PROVE AN ORDER TO FA CILITATE THE 22
FINANCING OF A NUCLE AR ENERGY GENERATION PROJECT UNLESS THE P ROJECT IS 23
SUBJECT TO A COMMUNI TY BENEFIT AGREEMENT UNDER § 7–1206 OF THIS 24
SUBTITLE. 25
7–1209. 26
(A) THE FINDINGS AND EVID ENCE RELIED ON BY THE GENERAL ASSEMBLY 27
FOR THE CONTINUATION OF THE MINORITY BUSINESS ENTERPRISE PROGRAM 28
UNDER TITLE 14, SUBTITLE 3 OF THE STATE FINANCE AND PROCUREMENT 29
ARTICLE ARE INCORPORA TED IN THIS SECTION . 30
(B) TO THE EXTENT PRACTIC ABLE AND AUTHORIZED BY THE UNITED 31
STATES CONSTITUTION, APPROVED APPLICANTS FOR A PROPOSED NUCLE AR 32 HOUSE BILL 505 39
ENERGY GENERATION PR OJECT SHALL COMPLY W ITH THE STATE’S MINORITY 1
BUSINESS ENTERPRISE PROGRAM. 2
(C) (1) WITHIN 6 MONTHS AFTER THE ISS UANCE OF AN ORDER TH AT 3
APPROVES A NUCLEAR E NERGY GENERATION P ROJECT AND INCLUDES A 4
LONG–TERM PRICING COMPONE NT, THE GOVERNOR’S OFFICE OF SMALL, 5
MINORITY, AND WOMEN BUSINESS AFFAIRS, IN CONSULTATION WITH THE OFFICE 6
OF THE ATTORNEY GENERAL AND THE APPRO VED APPLICANT , SHALL ESTABLISH A 7
CLEAR PLAN FOR SETTI NG REASONABL E AND APPROPRIATE MI NORITY BUSINESS 8
ENTERPRISE PARTICIPA TION GOALS AND PROCE DURES FOR EACH PHASE OF THE 9
NUCLEAR ENERGY GENER ATION PROJECT . 10
(2) TO THE EXTENT PRACTIC ABLE, THE GOALS AND PROCED URES SET 11
IN ACCORDANCE WITH P ARAGRAPH (1) OF THIS SUBSECTION SHALL BE BASED ON 12
THE REQUIREMENTS OF TITLE 14, SUBTITLE 3 OF THE STATE FINANCE AND 13
PROCUREMENT ARTICLE AND THE REGUL ATIONS IMPLEMENTING THAT SUBTITLE . 14
(3) EVERY 6 MONTHS FOLLOWING THE ISSUANCE OF AN ORDER THAT 15
APPROVES A NUCLEAR E NERGY GENERATION PRO JECT AND INCLUDES A 16
LONG–TERM PRICING COMPONE NT, AN APPROVED APPLICAN T SHALL SUBMIT A 17
REPORT ON ITS PROGRE SS ESTABLISHING AND IMPLEMENTING MINORIT Y BUSINESS 18
ENTERPRISE GOALS AND PROCEDURES TO THE COMMISSION. 19
7–1210. 20
(A) THE COMMISSION SHALL ADOP T REGULATIONS THAT: 21
(1) ESTABLISH THE NUCLEA R ENERGY LONG –TERM PRICING 22
PURCHASE OBLIGATION SUFFICIENTLY IN ADVA NCE TO ALLOW AN ELEC TRIC 23
COMPANY TO REFLECT N UCLEAR ENERGY LONG –TERM PRICING COSTS A S A 24
NONBYPASSABLE SURCHA RGE PAID BY ALL DIST RIBUTION CUSTOMERS O F THE 25
ELECTRIC COMPANY ; 26
(2) ESTABLISH A NONBYPAS SABLE SURCHARGE THAT ALLOWS AN 27
ELECTRIC COMPANY TO RECOVER ALL COSTS AS SOCIATED WITH THE PU RCHASE OF 28
NUCLEAR ENERGY FROM ALL DISTRIBUTION CUS TOMERS OF THE ELECTR IC 29
COMPANY; 30
(3) ESTABLISH AN ESCROW ACCOUNT THAT IS UNDE R COMMISSION 31
SUPERVISION; AND 32
(4) DEFINE RULES THAT FA CILITATE AND ENSURE THE SECURE AND 33
TRANSPARENT TRANSFER OF REVENUES AND LONG –TERM PRICING PAYMENT S 34
AMONG PARTIES . 35 40 HOUSE BILL 505
(B) (1) EACH ELECTRIC COMPANY SHALL PROCURE FROM T HE ESCROW 1
ACCOUNT ESTABLISHED BY REGULATION UNDER THI S SECTION A VOLUME O F 2
NUCLEAR ENERGY EQUAL TO THE ELECTRIC COMP ANY’S RESPECTIVE PERCENT AGE 3
OF RETAIL ELECTRIC S ALES EACH YEAR . 4
(2) (I) SUBJECT TO ANY ESCROW ACCOUNT RESERVE 5
REQUIREMENT THE COMMISSION ESTABLISHE S, IF THERE IS INSUFFIC IENT 6
NUCLEAR ENERGY AVAIL ABLE TO SATISFY THE ELECTRIC COMPANIES ’ NUCLEAR 7
ENERGY OBLIGATION , THE OVERPAYMENT SHAL L BE DISTRIBUTED TO ELECTRIC 8
COMPANIES TO BE REFU NDED OR CREDITED TO EACH DISTRIBUTION CU STOMER 9
BASED ON THE CUSTOME R’S CONSUMPTION OF ELECTRIC ITY SUPPLY THAT IS 10
SUBJECT TO THE CLEAN ENERGY PORTFOLIO STA NDARD. 11
(II) SUBJECT TO ANY ESCROW ACCOUNT RESERVE 12
REQUIREMENT THE COMMISSION ESTABLISHE S, THE CALCULATION OF A N 13
ELECTRIC COMPANY ’S NUCLEAR ENERGY PUR CHASE OBLIGATION SHA LL BE BASED 14
ON FINAL ELECTRICITY SALES DATA AS REPORT ED BY PJM INTERCONNECTION AND 15
MEASURED AT THE CUST OMER METER . 16
(3) FOR EACH LONG –TERM PRICING SCHEDUL E FOR WHICH A 17
NUCLEAR ENERGY GENER ATION PROJECT RECEIV ES PAYMENT , THE PROJECT 18
SHALL: 19
(I) SELL ALL ENERGY, CAPACITY, AND ANCILLARY SERVIC ES 20
ASSOCIATED WITH THE CREATION OF THE LONG –TERM PRICING INTO TH E MARKETS 21
OPERATED BY PJM INTERCONNECTION ; AND 22
(II) DISTRIBUTE THE PROCE EDS RECEIVED FROM TH E SALES 23
UNDER ITEM (I) OF THIS PARAGRAPH TO ELECTRIC COMPA NIES TO BE REFUNDED 24
OR CREDITED TO EACH DISTRIBUTION CUSTOME R BASED ON THE CUSTO MER’S 25
CONSUMPTION OF ELECT RICITY SUPPLY THAT I S SUBJECT TO THE CLE AN ENERGY 26
PORTFOLIO STANDARD . 27
(C) A DEBT, OBLIGATION, OR LIABILITY OF A NU CLEAR ENERGY 28
GENERATION PROJECT O R OF AN OWNER OR OPERA TOR OF A NUCLEAR ENE RGY 29
GENERATION PROJECT M AY NOT BE CONSIDERED A DEBT, OBLIGATION, OR 30
LIABILITY OF THE STATE. 31
7–1211. 32
ON OR BEFORE JULY 1, 2027, THE COMMISSION SHALL ADOP T REGULATIONS 33
TO CARRY OUT THIS SU BTITLE. 34
HOUSE BILL 505 41
Article – State Government 1
9–20C–01. 2
(a) In this subtitle the following words have the meanings indicated. 3
(b) “Administration” means the Maryland Energy Administration. 4
(c) “Advisory Committee” means the Maryland [Offshore Wind] CLEAN 5
ENERGY Business Development Advisory Committee established under § 9–20C–02 of this 6
subtitle. 7
(d) “Director” means the Director of the Maryland Energy Administration. 8
(e) “Emerging business” means a business that is at least 51% owned and 9
controlled by an individual or individuals who are certified to have a personal net worth, 10
as defined in § 14–301 of the State Finance and Procurement Article, that does not exceed 11
$6,500,000 as adjusted each year for inflation according to the Consumer Price Index. 12
(f) “Fund” means the Maryland [Offshore Wind] CLEAN ENERGY Business 13
Development Fund established under § 9–20C–03 of this subtitle. 14
(g) “Minority” means an individual who is a member of any of the groups listed in 15
§ 14–301(k)(1)(i) of the State Finance and Procurement Article. 16
9–20C–02. 17
(a) There is a Maryland [Offshore Wind] CLEAN ENERGY Business 18
Development Advisory Committee. 19
(b) The Advisory Committee shall make recommendations to the Administration 20
on the most effective manner to use money in the Fund consistent with the purposes of the 21
Fund. 22
(c) The Advisory Committee consists of the following members: 23
(1) two members of the Senate of Maryland, one from each of the principal 24
political parties, appointed by the President of the Senate; 25
(2) two members of the House of Delegates, one from each of the principal 26
political parties, appointed by the Speaker of the House; 27
(3) the Director or the Director’s designee; 28
(4) the Secretary of Commerce, or the Secretary’s designee; 29
42 HOUSE BILL 505
(5) the Special Secretary of the Governor’s Office of Small, Minority, and 1
Women Business Affairs, or the Special Secretary’s designee; and 2
(6) the following [12] members, appointed by the Governor: 3
(i) [1] ONE representative of a public institution of higher education 4
in the State; 5
(ii) [1] ONE representative of a historically black or African 6
American university in the State; 7
(iii) [1] ONE representative of the State’s community colleges; 8
(iv) [1] ONE representative of the Maryland Independent Colleges 9
and Universities Association; 10
(v) [1] ONE representative of the Maryland Small Business 11
Development Center Network; 12
(vi) [1] ONE representative of the Maryland Business Coalition for 13
Offshore Wind; 14
(vii) [1] ONE representative of a business incubator in the State with 15
experience in providing services to minority business enterprises as defined in § 14–301 of 16
the State Finance and Procurement Article, or to emerging businesses, including emerging 17
businesses owned by minorities; 18
(viii) [1] ONE individual with experience in providing business 19
financing to minority business enterprises as defined in § 14–301 of the State Finance and 20
Procurement Article, or to emerging businesses, including emerging businesses owned by 21
minorities; 22
(ix) [1] ONE representative of an offshore wind developer; 23
(x) [1] ONE representative of an original equipment manufacturer; 24
(xi) [1] ONE individual who is a minority business advocate; [and] 25
(XII) TWO REPRESENTATIVES OF THE NUCLEAR ENERG Y 26
INDUSTRY; 27
(XIII) TWO REPRESENTATIVES OF THE SOLAR ENERGY INDUSTRY; 28
(XIV) ONE REPRESENTATIVE O F THE ENERGY STORAGE 29
INDUSTRY; AND 30
HOUSE BILL 505 43
[(xii)] (XV) [1] ONE individual with experience in [offshore wind] 1
supply chain issues. 2
(d) The Governor shall appoint the chair of the Advisory Committee. 3
(e) The Administration shall provide staff for the Advisory Committee. 4
(f) A member of the Advisory Committee: 5
(1) may not receive compensation as a member of the Advisory Committee; 6
but 7
(2) is entitled to reimbursement for expenses under the Standard State 8
Travel Regulations, as provided in the State budget. 9
(g) (1) On or before December 31, [2013] 2026, the Advisory Committee shall 10
provide written recommendations to the Administration regarding the most effective use 11
of money in the Fund in order to maximize opportunities for emerging businesses in the 12
State, including minority–owned emerging businesses, to participate in [the offshore wind 13
industry] CLEAN ENERGY INDUSTR IES. 14
(2) In making a recommendation under paragraph (1) of this subsection, 15
the Advisory Committee shall consider opportunities to maximize leveraging opportunities, 16
mentoring and protege models, innovation clusters, existing incubator and business 17
development programs, and the appropriate role of partnerships with the State’s 18
universities and community colleges. 19
[(3) On or before December 31, 2014, the Advisory Committee shall provide 20
updated recommendations to the Administration.] 21
(h) On completion and submission of the written recommendations required 22
under subsection (g) of this section, the Advisory Committee shall terminate its operation 23
and cease to meet. 24
9–20C–03. 25
(a) There is a Maryland [Offshore Wind] CLEAN ENERGY Business 26
Development Fund in the Administration. 27
SECTION 4. AND BE IT FURTHER ENACTED, That the publisher of the 28
Annotated Code of Maryland, in consultation with and subject to the approval of the 29
Department of Legislative Services, shall correct, with no further action required by the 30
General Assembly, cross–references and terminology rendered incorrect by this Act. The 31
publisher shall adequately describe any correction that is made in an editor’s note following 32
the section affected. 33
44 HOUSE BILL 505
SECTION 5. AND BE IT FURTHER ENACTED, That a presently existing obligation 1
or contract right may not be impaired in any way by this Act. 2
SECTION 6. AND BE IT FURTHER ENACTED, That for fiscal year 2026, funds 3
from the Dedicated Purpose Account may be transferred by budget amendment, in 4
accordance with § 7–310 of the State Finance and Procurement Article, to implement the 5
requirements of §§ 7–1201, 7–1204, and 7–1211 of the Public Utilities Article, as enacted 6
by Section 1 of this Act. 7
SECTION 7. 6. AND BE IT FURTHER ENACTED, That this Act shall be construed 8
to apply retroactively and shall be applied to and interpreted to affect all clean energy 9
portfolio standard compliance years that begin on or after January 1, 2025. 10
SECTION 8. 7. AND BE IT FURTHER ENACTED, That this Act shall take effect 11
July 1, 2025. 12
Approved:
________________________________________________________________________________
Governor.
________________________________________________________________________________
Speaker of the House of Delegates.
________________________________________________________________________________
President of the Senate.