EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
[Brackets] indicate matter deleted from existing law.
*sb0434*
SENATE BILL 434
M5, C5 5lr0061
CF 5lr0062
By: The President (By Request – Administration) and Senators Brooks, Ellis, and
Watson
Introduced and read first time: January 20, 2025
Assigned to: Education, Energy, and the Environment
A BILL ENTITLED
AN ACT concerning 1
Empowering New Energy Resources and Green Initiatives Toward a 2
Zero–Emission (ENERGIZE) Maryland Act 3
FOR the purpose of renaming the “renewable energy portfolio standard” to be the “clean 4
energy portfolio standard”; altering the definition of “qualified offshore wind project” 5
for purposes of the clean energy portfolio standard; altering the minimum required 6
percentage of energy that must be derived from clean energy sources in certain years 7
under the clean energy portfolio standard; altering the contents of and approval 8
criteria for an application for an offshore wind project; altering the compliance fee 9
for a shortfall from certain Tier 1 renewable source requirements; establishing a 10
process for the Public Service Commission to review and approve an application for 11
a proposed nuclear energy generation project; requiring the Governor’s Office of 12
Small, Minority, and Women Business Affairs, in consultation with the Office of the 13
Attorney General, to provide certain assistance to potential applicants and minority 14
investors; requiring that approved applicants for a proposed nuclear energy 15
generation project comply with the Minority Business Enterprise Program; requiring 16
a certain nuclear energy generation project to sell certain energy, capacity, and 17
ancillary services into certain markets and distribute the proceeds in a certain 18
manner; prohibiting a certain debt, obligation, or liability from being considered a 19
debt, obligation, or liability of the State; renaming the “Maryland Offshore Wind 20
Business Development Fund” to be the “Clean Energy Business Development Fund”; 21
reinstating and renaming the “Maryland Offshore Wind Business Development 22
Advisory Committee” to be the “Clean Energy Business Development Advisory 23
Committee”; authorizing funds to be transferred by budget amendment from the 24
Dedicated Purpose Account in a certain fiscal year to implement certain provisions 25
of this Act; applying this Act retroactively; and generally relating to the clean energy 26
portfolio standard, offshore wind energy, and nuclear energy. 27
BY repealing 28
Article – Public Utilities 29 2 SENATE BILL 434
Section 7–701(n) 1
Annotated Code of Maryland 2
(2020 Replacement Volume and 2024 Supplement) 3
BY renumbering 4
Article – Public Utilities 5
Section 7–701(c) through (e–1), (f) through (g–1), (h), (h–1), (i), (i–1), (j) through (m), 6
(o) through (p–1), and (q) through (t) 7
to be Section 7–701(e) through (z), respectively 8
Annotated Code of Maryland 9
(2020 Replacement Volume and 2024 Supplement) 10
BY repealing and reenacting, with amendments, 11
Article – Natural Resources 12
Section 5–102(a)(9) 13
Annotated Code of Maryland 14
(2023 Replacement Volume and 2024 Supplement) 15
BY repealing and reenacting, with amendments, 16
Article – Public Utilities 17
Section 7–306.2(b)(1), 7–510.3(k)(1), 7–702, 7–703(a), (b)(20) through (25), and (d) 18
through (f), 7–704, 7–704.1(c)(6), (e)(1)(xiii), and (f)(1)(iii), 7–704.2(a) through 19
(c), 7–704.4(c)(2), 7–705, 7–706(a) and (b), 7–707(c)(1), (d)(2) and (3), and 20
(g)(4), 7–709(a) and (c)(1)(i), and 7–709.1(c), (d)(2), and (i) 21
Annotated Code of Maryland 22
(2020 Replacement Volume and 2024 Supplement) 23
BY repealing and reenacting, without amendments, 24
Article – Public Utilities 25
Section 7–701(a), 7–703(c), 7–704.1(f)(2), and 7–704.4(c)(1) 26
Annotated Code of Maryland 27
(2020 Replacement Volume and 2024 Supplement) 28
BY adding to 29
Article – Public Utilities 30
Section 7–701(c) and (d), 7–703(g), and 7–704.1(f)(4); and 7–1201 through 7–1211 to 31
be under the new subtitle “Subtitle 12. Nuclear Energy Procurement” 32
Annotated Code of Maryland 33
(2020 Replacement Volume and 2024 Supplement) 34
BY repealing and reenacting, with amendments, 35
Article – Public Utilities 36
Section 7–701(q) 37
Annotated Code of Maryland 38
(2020 Replacement Volume and 2024 Supplement) 39
(As enacted by Section 2 of this Act) 40
SENATE BILL 434 3
BY repealing and reenacting, with amendments, 1
Article – State Government 2
Section 9–20C–01, 9–20C–02, and 9–20C–03(a) 3
Annotated Code of Maryland 4
(2021 Replacement Volume and 2024 Supplement) 5
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 6
That Section(s) 7–701(n) of Article – Public Utilities of the Annotated Code of Maryland be 7
repealed. 8
SECTION 2. AND BE IT FURTHER ENACTED, That Section(s) 7 –701(c) through 9
(e–1), (f) through (g–1), (h), (h–1), (i), (i–1), (j) through (m), (o) through (p–1), and (q) through 10
(t) of Article – Public Utilities of the Annotated Code of Maryland be renumbered to be 11
Section(s) 7–701(e) through (z), respectively. 12
SECTION 3. AND BE IT FURTHER ENACTED, That the Laws of Maryland read 13
as follows: 14
Article – Natural Resources 15
5–102. 16
(a) The General Assembly finds that: 17
(9) Forests are a renewable resource that help the State meet its renewable 18
energy goals that are consistent with the State’s: 19
(i) Green power goal for State facilities; 20
(ii) [Renewable] CLEAN Energy Portfolio Standard; 21
(iii) Healthy Air Act; and 22
(iv) Maryland Clean Energy Incentive Act of 2006; and 23
Article – Public Utilities 24
7–306.2. 25
(b) The General Assembly finds that: 26
(1) community solar energy generating systems: 27
(i) provide residents and businesses, including those that lease 28
property, increased access to local solar electricity while encouraging private investment in 29
solar resources; 30
4 SENATE BILL 434
(ii) enhance continued diversification of the State’s energy resource 1
mix to achieve the State’s [renewable] CLEAN energy portfolio standard and Greenhouse 2
Gas Emissions Reduction Act goals; and 3
(iii) provide electric companies and ratepayers the opportunity to 4
realize the many benefits associated with distributed energy; and 5
7–510.3. 6
(k) (1) Except for the purposes of meeting the requirements of the [renewable] 7
CLEAN energy portfolio standard under Subtitle 7 of this title, a community choice 8
aggregator may not be considered to be an electricity supplier under § 7–507(a) of this 9
subtitle. 10
7–701. 11
(a) In this subtitle the following words have the meanings indicated. 12
(C) “CLEAN ENERGY PORTFOLIO STANDARD” OR “STANDARD” MEANS THE 13
PERCENTAGE OF ELECTR ICITY SALES AT RETAI L IN THE STATE THAT IS TO BE 14
DERIVED FROM CLEAN E NERGY SOURCES IN ACC ORDANCE WITH § 7–703(B) OF THIS 15
SUBTITLE. 16
(D) “CLEAN ENERGY SOURCE ” MEANS: 17
(1) A TIER 1 RENEWABLE SOURCE ; 18
(2) A TIER 2 RENEWABLE SOURCE ; OR 19
(3) A NUCLEAR ENERGY GENERATING STATION , INCLUDING A SMALL 20
MODULAR REACTOR , CONNECTED WITH THE E LECTRIC DISTRIBUTION GRID 21
SERVING THE STATE. 22
(q) “Qualified offshore wind project” means a wind turbine electricity generation 23
facility, including the associated transmission–related interconnection facilities and 24
equipment, that: 25
(1) is located: 26
(i) on the outer continental shelf of the Atlantic Ocean in an area 27
that the United States Department of the Interior designates for leasing; and 28
(ii) more than 10 miles off the coast of the State for a project selected 29
under § 7–704.4 of this subtitle or approved under § 7–704.1 of this subtitle after June 1, 30
2023; and 31 SENATE BILL 434 5
(2) interconnects to the TRANSMISSION SYSTEM THROUGH: 1
(I) THE PJM Interconnection [grid: 2
(i) at a point located on the Delmarva Peninsula]; or 3
(ii) an offshore wind transmission project selected under § 7–704.3 4
of this subtitle. 5
7–702. 6
(a) It is the intent of the General Assembly to: 7
(1) recognize the economic, environmental, fuel diversity, and security 8
benefits of [renewable] CLEAN energy resources; 9
(2) reduce greenhouse gas emissions and eliminate carbon –fueled 10
generation from the State’s electric grid by using these resources; 11
(3) establish a market for electricity from these resources in Maryland; and 12
(4) lower the cost to consumers of electricity produced from these resources. 13
(b) The General Assembly finds AND DECLARES that: 14
(1) THE STATE HAS A GOAL OF A CHIEVING 100% CLEAN ELECTRICITY ; 15
(2) AS OF JANUARY 1, 2025, THE RENEWABLE ENERGY PORTFOLIO 16
STANDARD AND OFFSHOR E WIND ENERGY LEASES WILL NOT SATISFY THE GOAL 17
STATED IN ITEM (1) OF THIS SUBSECTION ; 18
(3) TO ACHIEVE ITS CLEAN ELECTRICITY GOAL, THE STATE MUST 19
FACILITATE THE CONST RUCTION OF AT LEAST 3,000 MEGAWATTS OF ELECTRICITY 20
FROM CLEAN ENERGY GENERATION PROJECTS TO: 21
(I) REDUCE THE ADVERSE C LIMATE AND HEALTH IM PACTS OF 22
TRADITIONAL FOSSIL F UEL ENERGY SOURCES ; 23
(II) PROMOTE THE DEVELOPM ENT OF CLEAN ENERGY SOURCES 24
THAT INCREASE THE NA TION’S INDEPENDENCE FROM FOREIGN SOURCES OF F OSSIL 25
FUELS; 26
6 SENATE BILL 434
(III) POSITION THE STATE TO TAKE ADVANTA GE OF THE 1
ECONOMIC DEVELOPMENT BENEFITS OF THE EMER GING SMALL MODULAR R EACTOR 2
INDUSTRY; AND 3
(IV) PROVIDE A LONG –TERM HEDGE AGAINST V OLATILE PRICES 4
OF FOSSIL FUELS; 5
[(1)] (4) the benefits of electricity from [renewable] CLEAN energy 6
resources, including long–term decreased emissions, a healthier environment, increased 7
energy security, and decreased reliance on and vulnerability from imported energy sources, 8
accrue to the public at large; 9
[(2)] (5) electricity suppliers and consumers share an obligation to 10
develop a minimum level of these resources in the electricity supply portfolio of the State; 11
and 12
[(3)] (6) the State needs to increase its reliance on [renewable] CLEAN 13
energy in order to: 14
(i) reduce greenhouse gas emissions and meet the State’s 15
greenhouse gas emissions reduction goals under § 2–1205 of the Environment Article; and 16
(ii) provide opportunities for small, minority, women–owned, and 17
veteran–owned businesses to participate in and develop a highly skilled workforce for clean 18
energy industries in the State. 19
7–703. 20
(a) (1) (i) The Commission shall implement a [renewable] CLEAN energy 21
portfolio standard that, except as provided under paragraphs (2) and (3) of this subsection, 22
applies to all retail electricity sales in the State by electricity suppliers. 23
(ii) If the standard becomes applicable to electricity sold to a 24
customer after the start of a calendar year, the standard does not apply to electricity sold 25
to the customer during that portion of the year before the standard became applicable. 26
(2) A [renewable] CLEAN energy portfolio standard may not apply to 27
electricity sales at retail by any electricity supplier: 28
(i) in excess of 300,000,000 kilowatt–hours of industrial process load 29
to a single customer in a year; 30
(ii) to residential customers in a region of the State in which 31
electricity prices for residential customers are subject to a freeze or cap contained in a 32
settlement agreement entered into under § 7–505 of this title until the freeze or cap has 33
expired; or 34 SENATE BILL 434 7
(iii) to a customer served by an electric cooperative under an 1
electricity supplier purchase agreement that existed on October 1, 2004, until the 2
expiration of the agreement, as the agreement may be renewed or amended. 3
(3) The portion of a [renewable] CLEAN energy portfolio standard that 4
represents offshore wind: 5
(i) applies only to the distribution sales of electric companies; and 6
(ii) may not apply to distribution sales by any electric company in 7
excess of: 8
1. 75,000,000 kilowatt–hours of industrial process load to a 9
single customer in a year; and 10
2. 3,000 kilowatt–hours of electricity in a month to a 11
customer who is an owner of agricultural land and files an Internal Revenue Service form 12
1040, schedule F. 13
(b) Except as provided in subsections (e) and (f) of this section, the [renewable] 14
CLEAN energy portfolio standard shall be as follows: 15
(20) 60.5% in 2025, INCLUDING AT LEAST : 16
(i) 35.5% from Tier 1 renewable sources, including: 17
1. at least 7% derived from solar energy; 18
2. an amount set by the Commission under § 7–704.2(a) of 19
this subtitle, not to exceed 10%, derived from offshore wind energy; and 20
3. at least 0.25% derived from post–2022 geothermal 21
systems; 22
(ii) 2.5% from Tier 2 renewable sources; 23
(21) 63% in 2026, INCLUDING AT LEAST : 24
(i) 38% from Tier 1 renewable sources, including: 25
1. at least 8% derived from solar energy; 26
2. an amount set by the Commission under § 7–704.2(a) of 27
this subtitle derived from offshore wind energy, including at least 400 megawatts of Round 28
2 offshore wind projects; and 29
8 SENATE BILL 434
3. at least 0.5% derived from post–2022 geothermal systems; 1
and 2
(ii) 2.5% from Tier 2 renewable sources; and 3
(22) 66.5% in 2027, INCLUDING AT LEAST : 4
(i) 41.5% from Tier 1 renewable sources, including: 5
1. at least 9.5% derived from solar energy; 6
2. an amount set by the Commission under § 7–704.2(a) of 7
this subtitle derived from offshore wind energy, including at least 400 megawatts of Round 8
2 offshore wind projects; and 9
3. at least 0.75% derived from post–2022 geothermal 10
systems; and 11
(ii) 2.5% from Tier 2 renewable sources; and 12
(23) 68% in 2028, INCLUDING AT LEAST : 13
(i) 43% from Tier 1 renewable sources, including: 14
1. at least 11% derived from solar energy; 15
2. an amount set by the Commission under § 7–704.2(a) of 16
this subtitle derived from offshore wind energy, including at least 800 megawatts of Round 17
2 offshore wind projects; and 18
3. at least 1% derived from post–2022 geothermal systems; 19
and 20
(ii) 2.5% from Tier 2 renewable sources; and 21
(24) 74.5% in 2029, INCLUDING AT LEAST : 22
(i) 49.5% from Tier 1 renewable sources, including: 23
1. at least 12.5% derived from solar energy; 24
2. an amount set by the Commission under § 7–704.2(a) of 25
this subtitle derived from offshore wind energy, including at least 800 megawatts of Round 26
2 offshore wind projects; and 27
3. at least 1% derived from post–2022 geothermal systems; 28
and 29 SENATE BILL 434 9
(ii) 2.5% from Tier 2 renewable sources; and 1
(25) 75% in 2030 and later, INCLUDING AT LEAST : 2
(i) 50% from Tier 1 renewable sources, including: 3
1. at least 14.5% derived from solar energy; 4
2. an amount set by the Commission under § 7–704.2(a) of 5
this subtitle derived from offshore wind energy, including at least 1,200 megawatts of 6
Round 2 offshore wind projects; and 7
3. at least 1% derived from post–2022 geothermal systems; 8
and 9
(ii) 2.5% from Tier 2 renewable sources. 10
(c) Before calculating the number of credits required to meet the percentages 11
established under subsection (b) of this section, an electricity supplier shall exclude from 12
its total retail electricity sales all retail electricity sales described in subsection (a)(2) and 13
(3) of this section. 14
(d) (1) Subject to subsections (a) and (c) of this section, an electricity supplier 15
shall meet the [renewable] CLEAN energy portfolio standard for all Tier 1 and Tier 2 16
renewable sources except offshore wind by accumulating the equivalent amount of 17
renewable energy credits that equal the percentages required under this section. 18
(2) An electric company shall meet the [renewable] CLEAN energy portfolio 19
standard for offshore wind in accordance with § 7–704.2 of this subtitle. 20
(e) (1) The required percentage of an electric cooperative’s [renewable] CLEAN 21
energy portfolio standard derived from solar energy shall be 2.5% in 2020 and later. 22
(2) The required percentage of a municipal electric utility’s [renewable] 23
CLEAN energy portfolio standard shall be: 24
(i) in 2021: 25
1. 20.4% from Tier 1 renewable sources, including: 26
A. at least 1.95% derived from solar energy; and 27
B. an amount set by the Commission under § 7–704.2(a) of 28
this subtitle, not to exceed 2.5%, derived from offshore wind energy; and 29
10 SENATE BILL 434
2. 2.5% from Tier 2 renewable sources; and 1
(ii) in 2022 and later, 20.4% from Tier 1 renewable sources, 2
including: 3
1. at least 1.95% derived from solar energy; and 4
2. an amount set by the Commission under § 7–704.2(a) of 5
this subtitle, not to exceed 2.5%, derived from offshore wind energy. 6
(f) (1) (i) In this subsection the following words have the meanings 7
indicated. 8
(ii) “Area median income” has the meaning stated in § 4–1801 of the 9
Housing and Community Development Article. 10
(iii) “Low or moderate income housing” means housing that is 11
affordable for a household with an aggregate annual income that is below 120% of the area 12
median income. 13
(2) At least 25% of the required percentage of the [renewable] CLEAN 14
energy portfolio STANDARD for each year as set forth in subsection (b) of this section 15
derived from post–2022 geothermal systems shall be derived from systems that were 16
installed: 17
(i) at single or multifamily housing units that qualified as low or 18
moderate income housing on the date the system was installed on the property; or 19
(ii) at institutions that primarily serve low and moderate income 20
individuals and families, including: 21
1. schools with a majority of students who are eligible for free 22
and reduced price meals; 23
2. hospitals with a majority of patients eligible for financial 24
assistance or who are enrolled in Medicaid; and 25
3. other institutions that serve individuals and families 26
where the majority of those served are eligible based on income for federal or State safety 27
net programs. 28
(G) (1) SUBJECT TO PARAGRAPH (2) OF THIS SUBSECTION , STARTING IN 29
2025, THE COMMISSION SHALL REDU CE THE REQUIREMENTS OF SUBSECTION (B) OF 30
THIS SECTION EACH YE AR BY A PERCENTAGE E QUAL TO THE GENERATI ON OUTPUT 31
OF NUCLEAR ENERGY GENERATIN G STATIONS CONNECTED TO THE ELECTRIC 32 SENATE BILL 434 11
DISTRIBUTION SYSTEM IN THE STATE IN THE PREVIOUS YEAR DIVIDED BY THE 1
ELECTRICITY RETAIL S ALES IN THE SAME YEA R. 2
(2) THE PERCENTAGE REQUIR EMENT REDUCED UNDER PARAGRAPH 3
(1) OF THIS SUBSECTION M AY NOT INCLUDE THE PERCENTAGE REQUI RED FROM 4
TIER 1 RENEWABLE SOURCES OR TIER 2 RENEWABLE SOURCES . 5
7–704. 6
(a) (1) Energy from a Tier 1 renewable source: 7
(i) is eligible for inclusion in meeting the [renewable] CLEAN 8
energy portfolio standard regardless of when the generating system or facility was placed 9
in service; and 10
(ii) may be applied to the percentage requirements of the standard 11
for either Tier 1 renewable sources or Tier 2 renewable sources. 12
(2) (i) Energy from a Tier 1 renewable source under [§ 7–701(s)(1), (5), 13
(9), (10), or (11)] § 7–701(Y)(1), (5), (9), (10), OR (11) of this subtitle is eligible for 14
inclusion in meeting the [renewable] CLEAN energy portfolio standard only if the source is 15
connected with the electric distribution [grid] SYSTEM serving Maryland. 16
(ii) Energy from a Tier 1 renewable source under [§ 7–701(s)(13)] § 17
7–701(Y)(13) of this subtitle is eligible for inclusion in meeting the [renewable] CLEAN 18
energy portfolio standard only if the source: 19
1. is connected with the electric distribution [grid] SYSTEM 20
serving Maryland; or 21
2. processes wastewater from Maryland residents. 22
(iii) If the owner of a solar generating system in this State chooses to 23
sell solar renewable energy credits from that system, the owner must first offer the credits 24
for sale to an electricity supplier or electric company that shall apply them toward 25
compliance with the [renewable] CLEAN energy portfolio standard under § 7–703 of this 26
subtitle. 27
(3) Energy from a Tier 1 renewable source under [§ 7–701(s)(8)] § 28
7–701(Y)(8) of this subtitle is eligible for inclusion in meeting the [renewable] CLEAN 29
energy portfolio standard if it is generated at a dam that existed as of January 1, 2004, 30
even if a system or facility that is capable of generating electricity did not exist on that 31
date. 32
12 SENATE BILL 434
(4) Energy from a Tier 2 renewable source under [§ 7–701(t)] § 1
7–701(Z) of this subtitle is eligible for inclusion in meeting the [renewable] CLEAN energy 2
portfolio standard if it is generated at a system or facility that existed and was operational 3
as of January 1, 2004, even if the facility or system was not capable of generating electricity 4
on that date. 5
(b) On or after January 1, 2004, an electricity supplier may: 6
(1) receive renewable energy credits; and 7
(2) accumulate renewable energy credits under this subtitle. 8
(c) (1) This subsection applies only to a generating facility that is placed in 9
service on or after January 1, 2004. 10
(2) (i) On or before December 31, 2005, an electricity supplier shall 11
receive 120% credit toward meeting the [renewable] CLEAN energy portfolio standard for 12
energy derived from wind. 13
(ii) After December 31, 2005, and on or before December 31, 2008, 14
an electricity supplier shall receive 110% credit toward meeting the [renewable] CLEAN 15
energy portfolio standard for energy derived from wind. 16
(3) On or before December 31, 2008, an electricity supplier shall receive 17
110% credit toward meeting the [renewable] CLEAN energy portfolio standard for energy 18
derived from methane under [§ 7–701(r)(4)] § 7–701(Y)(4) of this subtitle. 19
(d) An electricity supplier shall receive credit toward meeting the [renewable] 20
CLEAN energy portfolio standard for electricity derived from the biomass fraction of 21
biomass co–fired with other fuels. 22
(e) (1) In this subsection, “customer” means: 23
(i) an industrial electric customer that is not on standard offer 24
service; or 25
(ii) a renewable on–site generator. 26
(2) This subsection does not apply to offshore wind renewable energy 27
credits. 28
(3) (i) A customer may independently acquire renewable energy credits 29
to satisfy the standards applicable to the customer’s load, including credits created by a 30
renewable on–site generator. 31
SENATE BILL 434 13
(ii) Credits that a customer transfers to its electricity supplier to 1
meet the standard and that the electricity supplier relies on in submitting its compliance 2
report may not be resold or retransferred by the customer or by the electricity supplier. 3
(4) A renewable on–site generator may retain or transfer at its sole option 4
any credits created by the renewable on–site generator, including credits for the portion of 5
its on–site generation from a Tier 1 renewable source or a Tier 2 renewable source that 6
displaces the purchase of electricity by the renewable on–site generator from the grid. 7
(5) A customer that satisfies the standard applicable to the customer’s load 8
under this subsection may not be required to contribute to a compliance fee recovered under 9
§ 7–706 of this subtitle. 10
(6) The Commission shall adopt regulations governing the application and 11
transfer of credits under this subsection consistent with federal law. 12
(f) (1) In order to create a renewable energy credit, a Tier 1 renewable source 13
or Tier 2 renewable source must substantially comply with all applicable environmental 14
and administrative requirements, including air quality, water quality, solid waste, and 15
right–to–know provisions, permit conditions, and administrative orders. 16
(2) (i) This paragraph applies to Tier 1 renewable sources that 17
incinerate solid waste. 18
(ii) At least 80% of the solid waste incinerated at a Tier 1 renewable 19
source facility shall be collected from: 20
1. for areas in Maryland, jurisdictions that achieve the 21
recycling rates required under § 9–505 of the Environment Article; and 22
2. for other states, jurisdictions for which the electricity 23
supplier demonstrates recycling substantially comparable to that required under § 9–505 24
of the Environment Article, in accordance with regulations of the Commission. 25
(iii) An electricity supplier may report credits received under this 26
paragraph based on compliance by the facility with the percentage requirement of 27
subparagraph (ii) of this paragraph during the year immediately preceding the year in 28
which the electricity supplier receives the credit to apply to the standard. 29
(g) (1) Energy from a solar water heating system is eligible for inclusion in 30
meeting the [renewable] CLEAN energy portfolio standard. 31
(2) A person that owns and operates a solar water heating system shall 32
receive a renewable energy credit equal to the amount of energy, converted from BTUs to 33
kilowatt–hours, that is generated by the system that is used by the person for water 34
heating. 35
14 SENATE BILL 434
(3) The total amount of energy generated and consumed for a 1
nonresidential or commercial solar water heating system shall be measured by an on–site 2
meter that meets the required performance standards of the International Organization of 3
Legal Metrology. 4
(4) The total amount of energy generated and consumed by a residential 5
solar water heating system shall be: 6
(i) measured by a meter that meets the required standards of the 7
International Organization of Legal Metrology; or 8
(ii) 1. measured by the Solar Ratings and Certification 9
Corporation’s OG–300 thermal performance rating for the system or an equivalent 10
certification that the Commission approves in consultation with the Administration; and 11
2. certified to the OG–300 standard of the Solar Ratings and 12
Certification Corporation or an equivalent certification body that the Commission approves 13
in consultation with the Administration. 14
(5) A residential solar water heating system shall be installed in 15
accordance with applicable State and local plumbing codes. 16
(6) A residential solar water heating system may not produce more than 17
five solar renewable energy credits in any 1 year. 18
(h) (1) Except as provided in paragraph (6) of this subsection, energy from a 19
geothermal heating and cooling system, including energy from a legacy geothermal system 20
and energy from a post–2022 geothermal system, is eligible for inclusion in meeting the 21
[renewable] CLEAN energy portfolio standard. 22
(2) A person shall receive a renewable energy credit equal to the amount of 23
energy, converted from BTUs to kilowatt–hours, that is generated by a geothermal heating 24
and cooling system for space heating and cooling or water heating if the person: 25
(i) owns and operates the system; 26
(ii) leases and operates the system; or 27
(iii) contracts with a third party who owns and operates the portion 28
of the system that consists of: 29
1. a closed loop or a series of closed loop systems in which 30
fluid is permanently confined within a pipe or tubing and does not come in contact with the 31
outside environment; or 32
SENATE BILL 434 15
2. an open loop system in which ground or surface water is 1
circulated in an environmentally safe manner directly into the facility and returned to the 2
same aquifer or surface water source. 3
(3) To determine the energy savings of a geothermal heating and cooling 4
system for a residence, the Commission shall: 5
(i) identify available energy consumption calculators developed by 6
the geothermal heating and cooling industry; 7
(ii) collect the following data provided in the renewable energy credit 8
application that: 9
1. describes the name of the applicant and the address at 10
which the geothermal heating and cooling system is installed; and 11
2. provides the annual BTU energy savings attributable to 12
home heating, cooling, and water heating; and 13
(iii) in determining the annual amount of renewable energy credits 14
awarded for the geothermal heating and cooling system, convert the annual BTUs into 15
annual megawatt–hours. 16
(4) To determine the energy savings of a nonresidential geothermal 17
heating and cooling system, the Commission shall: 18
(i) use the geothermal heating and cooling engineering technical 19
system designs provided with the renewable energy credit application; and 20
(ii) in determining the annual amount of renewable energy credits 21
awarded for the geothermal heating and cooling system, convert the annual BTUs into 22
annual megawatt–hours. 23
(5) A geothermal heating and cooling system shall be installed in 24
accordance with applicable State well construction and local building code standards. 25
(6) (i) A post–2022 geothermal system with a 360,000 BTU capacity is 26
eligible for inclusion in meeting the [renewable] CLEAN energy portfolio standard only if 27
the company installing the system provides for its employees: 28
1. family–sustaining wages; 29
2. employer–provided health care with affordable 30
deductibles and co–pays; 31
3. career advancement training, as provided in 32
subparagraph (ii) of this paragraph; 33 16 SENATE BILL 434
4. fair scheduling; 1
5. employer–paid workers’ compensation and unemployment 2
insurance; 3
6. a retirement plan; 4
7. paid time off; and 5
8. the right to bargain collectively for wages and benefits. 6
(ii) As part of the career advancement training the installation 7
company provides, the company shall ensure that a minimum of 10% of the employees 8
working on the installation are enrolled in an apprenticeship program approved by and 9
registered with the State or the federal government. 10
(iii) Compliance with this paragraph shall be regulated and enforced 11
by the Department of Labor. 12
(i) (1) Energy from a thermal biomass system is eligible for inclusion in 13
meeting the [renewable] CLEAN energy portfolio standard. 14
(2) (i) A person that owns and operates a thermal biomass system that 15
uses anaerobic digestion is eligible to receive a renewable energy credit. 16
(ii) A person that owns and operates a thermal biomass system that 17
uses a thermochemical process is eligible to receive a renewable energy credit if the person 18
demonstrates to the Maryland Department of the Environment that the operation of the 19
thermal biomass system: 20
1. is not significantly contributing to local or regional air 21
quality impairments; and 22
2. will substantially decrease emissions of oxides of nitrogen 23
beyond that achieved by a direct burn combustion unit through the use of precombustion 24
techniques, combustion techniques, or postcombustion techniques. 25
(3) A person that is eligible to receive a renewable energy credit under 26
paragraph (2) of this subsection shall receive a renewable energy credit equal to the amount 27
of energy, converted from BTUs to kilowatt–hours, that is generated by the thermal 28
biomass system and used on site. 29
(4) The total amount of energy generated and consumed for a residential, 30
nonresidential, or commercial thermal biomass system shall be measured by an on–site 31
meter that meets the required performance standards established by the Commission. 32
SENATE BILL 434 17
(5) The Commission shall adopt regulations for the metering, verification, 1
and reporting of the output of thermal biomass systems. 2
(j) (1) Energy from a wastewater heating or cooling system is eligible for 3
inclusion in meeting the [renewable] CLEAN energy portfolio standard. 4
(2) A person shall receive a renewable energy credit equal to the amount of 5
energy, converted from BTUs to kilowatt–hours, that is generated by a wastewater heating 6
or cooling system for space heating or cooling, industrial heating or cooling, or another 7
useful thermal purpose, if the person: 8
(i) owns and operates the system; 9
(ii) leases and operates the system; or 10
(iii) contracts with a third party who owns and operates the system. 11
(3) To determine the energy savings of a wastewater heating or cooling 12
system, the Commission shall: 13
(i) use the wastewater heating or cooling engineering technical 14
system designs provided with the renewable energy credit application; and 15
(ii) in determining the annual amount of renewable energy credits 16
awarded for the wastewater heating or cooling system, convert the annual BTUs into 17
annual megawatt–hours. 18
(4) The Commission shall adopt regulations for the metering, verification, 19
and reporting of the output of wastewater heating or cooling systems. 20
7–704.1. 21
(c) An application shall include: 22
(6) a commitment to: 23
(i) abide by the requirements set forth in subsection (f) of this 24
section; [and] 25
(ii) deposit at least $6,000,000, in the manner required under 26
subsection (h) of this section, into the Maryland [Offshore Wind] CLEAN ENERGY 27
Business Development Fund established under § 9–20C–03 of the State Government 28
Article; 29
(III) DEPOSIT INTO AN ESCR OW ACCOUNT AN AMOUNT : 30
18 SENATE BILL 434
1. DETERMINED BY THE COMMISSION TO DISSUAD E 1
WITHDRAWAL FROM THE OREC PROCESS; AND 2
2. NOT LESS THAN $5,000 PER MEGAWATT OF 3
NAMEPLATE CAPACITY ; AND 4
(IV) ABIDE BY A WITHDRAWA L PROCESS ESTABLISHE D BY THE 5
COMMISSION, INCLUDING FORFEITURE OF ANY DEPOSIT REQUI RED BY THE 6
COMMISSION UNDER ITEM (III) OF THIS ITEM; 7
(e) (1) The Commission shall use the following criteria to evaluate and 8
compare proposed offshore wind projects submitted during an application period: 9
(xiii) estimated ability to assist in meeting the [renewable] CLEAN 10
energy portfolio standard under § 7–703 of this subtitle; and 11
(f) (1) (iii) The Commission may not approve an applicant’s proposed 12
offshore wind project unless: 13
1. for a Round 1 offshore wind project application: 14
A. OVER THE DURATION OF THE PROPOSED OREC 15
PRICING SCHEDULE the projected net rate impact for an average residential customer, 16
based on annual consumption of 12,000 kilowatt–hours[,] AND combined with the projected 17
net rate impact of other Round 1 offshore wind projects, does not exceed [$1.50 per month 18
in 2012 dollars, over the duration of the proposed OREC pricing schedule] AN AMOUNT 19
DETERMINED BY THE COMMISSION; 20
B. OVER THE DURATION OF THE PROPOSED OREC 21
PRICING SCHEDULE the projected net rate impact for all nonresidential customers, 22
considered as a blended average[,] AND combined with the projected net rate impact of 23
other Round 1 offshore wind projects, does not exceed [1.5%] A PERCENTAGE 24
DETERMINED BY THE COMMISSION of nonresidential customers’ total annual electric 25
bills[, over the duration of the proposed OREC pricing schedule]; and 26
C. the price specified in the proposed OREC pricing schedule 27
does not exceed [$190 per megawatt–hour in 2012 dollars] AN AMOUNT DETERMINED BY 28
THE COMMISSION; and 29
2. for a Round 2 offshore wind project application: 30
A. OVER THE DURATION OF THE PROPOSED OREC 31
PRICING SCHEDULE the projected incremental net rate impact for an average residential 32
customer, based on annual consumption of 12 megawatt–hours[,] AND combined with the 33
projected incremental net rate impact of other Round 2 offshore wind projects, does not 34 SENATE BILL 434 19
exceed [88 cents per month in 2018 dollars, over the duration of the proposed OREC pricing 1
schedule] AN AMOUNT DETERMINED BY THE COMMISSION; 2
B. the projected incremental net rate impact for all 3
nonresidential customers, considered as a blended average[,] AND combined with the 4
projected net rate impact of other Round 2 offshore wind projects, does not exceed [0.9%] A 5
PERCENTAGE DETERMINE D BY THE COMMISSION of nonresidential customers’ total 6
annual electric bills during any year of the proposed OREC pricing schedule; and 7
C. the project is subject to a community benefit agreement. 8
(2) (i) When calculating the net benefits to the State under paragraph 9
(1)(ii) of this subsection, the Commission shall contract for the services of independent 10
consultants and experts. 11
(ii) When calculating the projected net average rate impacts for 12
Round 1 offshore wind projects under paragraph (1)(iii)1A and B of this subsection and for 13
Round 2 offshore wind projects under paragraph (1)(iii)2A and B of this subsection, the 14
Commission shall apply the same net OREC cost per megawatt–hour to residential and 15
nonresidential customers. 16
(4) THE COMMISSION SHALL KEEP ANY AMOUNTS DETERMINED 17
UNDER PARAGRAPH (1)(III) OF THIS SUBSECTION C ONFIDENTIAL. 18
7–704.2. 19
(a) (1) The Commission shall determine the offshore wind energy component 20
of the [renewable] CLEAN energy portfolio standard under § 7–703(b)(12) through (25) of 21
this subtitle based on the projected annual creation of ORECs by qualified offshore wind 22
projects. 23
(2) The Commission shall establish the [renewable] CLEAN energy 24
portfolio standard obligation for ORECs on a forward–looking basis that includes a surplus 25
to accommodate reasonable forecasting error in estimating overall electricity sales in the 26
State. 27
(3) Any positive adjustment to the [renewable] CLEAN energy portfolio 28
standard shall be on a forward–looking basis and sufficiently in advance to allow an electric 29
company to reflect OREC costs as a nonbypassable surcharge to distribution customers. 30
(4) The Commission shall adopt regulations that establish: 31
(i) the offshore wind purchase obligation sufficiently in advance to 32
allow an electric company to reflect OREC costs as a nonbypassable surcharge paid by all 33
distribution customers of the electric company; 34
20 SENATE BILL 434
(ii) a mechanism to adjust the [renewable] CLEAN energy portfolio 1
standard obligation in a given year to accommodate a shortfall of ORECs in one or more 2
earlier years that is the result of the variation between the quantity of ORECs calculated 3
from the [renewable] CLEAN energy portfolio standard obligation and the quantity of 4
ORECs approved in the Commission order for the same years; and 5
(iii) a nonbypassable surcharge that allows an electric company to 6
recover all costs associated with the purchase of ORECs from all distribution customers of 7
the electric company. 8
(b) The Commission shall adopt regulations: 9
(1) establishing an escrow account under Commission supervision; and 10
(2) defining rules that facilitate and ensure the secure and transparent 11
transfer of revenues and ORECs among the parties. 12
(c) (1) Each electric company shall purchase from the escrow account 13
established under this section the number of ORECs required to satisfy the offshore wind 14
energy component of the [renewable] CLEAN energy portfolio standard under § 15
7–703(b)(12) through (25) of this subtitle. 16
(2) (i) Subject to any escrow account reserve requirement the 17
Commission establishes, if there are insufficient ORECs available to satisfy the electric 18
companies’ OREC obligation, the overpayment shall be distributed to electric companies to 19
be refunded or credited to each distribution customer based on the customer’s consumption 20
of electricity supply that is subject to the [renewable] CLEAN energy portfolio standard. 21
(ii) Subject to any escrow account reserve requirement the 22
Commission establishes, the calculation of an electric company’s OREC purchase obligation 23
shall be based on final electricity sales data as reported by the PJM Interconnection as 24
measured at the customer meter. 25
(3) For each OREC for which a qualified offshore wind project receives 26
payment, a qualified offshore wind project shall: 27
(i) sell all energy, capacity, and ancillary services associated with 28
the creation of ORECs into the markets operated by PJM Interconnection; and 29
(ii) distribute the proceeds received from the sales to PJM 30
Interconnection markets, under item (i) of this paragraph to electric companies to be 31
refunded or credited to each distribution customer based on the customer’s consumption of 32
electricity supply that is subject to the [renewable] CLEAN energy portfolio standard. 33
SENATE BILL 434 21
(4) Notwithstanding § 7–709 of this subtitle, the Commission shall adopt 1
regulations regarding the transfer and expiration of ORECs created by a qualified offshore 2
wind project in excess of the OREC pricing schedule. 3
7–704.4. 4
(c) (1) The Department of General Services shall identify the amount of 5
energy necessary to meet the State’s energy needs. 6
(2) (i) The State shall use the energy procured under subsection (b) of 7
this section to meet the State’s energy needs and retire the associated renewable energy 8
credits to meet its obligations under the [renewable] CLEAN energy portfolio standard and 9
Chapter 38 of the Acts of the General Assembly of 2022. 10
(ii) The State shall be exempted from the [renewable] CLEAN energy 11
portfolio standard requirements under § 7–703 of this subtitle if the Department of General 12
Services procures 100% of the State’s energy needs from the power purchase agreement 13
required under subsection (b) of this section. 14
7–705. 15
(a) (1) Except as provided in paragraph (2) of this subsection, each electricity 16
supplier shall submit a report to the Commission each year in a form and by a date specified 17
by the Commission that: 18
(i) 1. demonstrates that the electricity supplier has complied 19
with the applicable [renewable] CLEAN energy portfolio standard under § 7–703 of this 20
subtitle and includes the submission of the required amount of renewable energy credits; 21
or 22
2. demonstrates the amount of electricity sales by which the 23
electricity supplier failed to meet the applicable [renewable] CLEAN energy portfolio 24
standard; 25
(ii) documents the level of participation of minority business 26
enterprises and minorities in the activities that support the creation of renewable energy 27
credits used to satisfy the standard under § 7–703 of this subtitle, including development, 28
installation, and operation of generating facilities that create credits; 29
(iii) documents the amounts and types of generation associated with 30
renewable energy credits purchased in compliance with § 7–707(b) of this subtitle during 31
the reporting period; and 32
(iv) documents the amount of renewable energy certificates that do 33
not qualify as renewable energy credits as defined in § 7–701 of this subtitle, including, for 34
each certificate: 35
22 SENATE BILL 434
1. the energy source associated with the certificate, including 1
its location, when it was constructed, and which electric distribution system received the 2
energy; 3
2. whether the purchase of the certificate was bundled with 4
a power purchase agreement from the energy source associated with the certificate; 5
3. whether the certificate was purchased directly from the 6
operator of the energy source or through a third party; and 7
4. any other information required by the Commission. 8
(2) Paragraph (1)(iii) and (iv) of this subsection does not apply to: 9
(i) the Department of General Services’ sale of energy under § 10
7–704.4 of this subtitle; or 11
(ii) a community choice aggregator under § 7–510.3 of this title. 12
(b) (1) This subsection does not apply to a shortfall from the required Tier 1 13
renewable sources that is to be derived from post–2022 geothermal systems. 14
(2) If an electricity supplier fails to comply with the [renewable] CLEAN 15
energy portfolio standard for the applicable year, the electricity supplier shall pay into the 16
Maryland Strategic Energy Investment Fund established under § 9–20B–05 of the State 17
Government Article: 18
(i) except as provided in item (ii) of this paragraph, a compliance fee 19
of: 20
1. the following amounts for each kilowatt–hour of shortfall 21
from required Tier 1 renewable sources other than the shortfall from the required Tier 1 22
renewable sources that is to be derived from solar energy: 23
A. 4 cents through 2016; 24
B. 3.75 cents in 2017 and 2018; 25
C. 3 cents in 2019 through 2023; 26
D. 2.75 cents in 2024; 27
E. 2.5 cents in 2025; 28
F. 2.475 cents in 2026; 29
G. 2.45 cents in 2027; 30 SENATE BILL 434 23
H. 2.25 cents in 2028 and 2029; and 1
I. 2.235 cents in 2030 and later; 2
2. the following amounts for each kilowatt–hour of shortfall 3
from required Tier 1 renewable sources that is to be derived from solar energy: 4
A. 45 cents in 2008; 5
B. 40 cents in 2009 through 2014; 6
C. 35 cents in 2015 and 2016; 7
D. 19.5 cents in 2017; 8
E. 17.5 cents in 2018; 9
F. 10 cents in 2019; 10
G. 10 cents in 2020; 11
H. 8 cents in 2021; 12
I. 6 cents in 2022; 13
J. 6 cents in 2023; 14
K. 6 cents in 2024[; 15
L. 5.5 cents in 2025; 16
M. 4.5 cents in 2026; 17
N. 3.5 cents in 2027; 18
O. 3.25 cents in 2028; 19
P. 2.5 cents in 2029; and 20
Q. 2.25 cents in 2030] and later; and 21
3. 1.5 cents for each kilowatt–hour of shortfall from required 22
Tier 2 renewable sources; or 23
(ii) for industrial process load: 24
24 SENATE BILL 434
1. for each kilowatt–hour of shortfall from required Tier 1 1
renewable sources, a compliance fee of: 2
A. 0.8 cents in 2006, 2007, and 2008; 3
B. 0.5 cents in 2009 and 2010; 4
C. 0.4 cents in 2011 and 2012; 5
D. 0.3 cents in 2013 and 2014; 6
E. 0.25 cents in 2015 and 2016; and 7
F. except as provided in paragraph (3) of this subsection, 0.2 8
cents in 2017 and later; and 9
2. nothing for any shortfall from required Tier 2 renewable 10
sources. 11
(3) For industrial process load, the compliance fee for each kilowatt–hour 12
of shortfall from required Tier 1 renewable sources is nothing for the year following any 13
year during which, after final calculations, the net rate impact per megawatt–hour from 14
Round 1 offshore wind projects exceeded $1.65 in 2012 dollars. 15
[(b–1)] (C) If an electricity supplier fails to comply with the [renewable] CLEAN 16
energy portfolio standard that is required to be derived from post–2022 geothermal systems 17
for the applicable year, the electricity supplier shall pay into the Maryland Strategic 18
Energy Investment Fund established under § 9–20B–05 of the State Government Article a 19
compliance fee of the following amounts for each kilowatt–hour of shortfall from required 20
post–2022 geothermal systems: 21
(1) 10 cents in 2023 through 2025; 22
(2) 9 cents in 2026; 23
(3) 8 cents in 2027; and 24
(4) 6.5 cents in 2028 and later. 25
[(c)] (D) The Commission may allow an electricity supplier to submit the report 26
required under § 7–505(b)(4) of this title to demonstrate compliance with the [renewable] 27
CLEAN energy portfolio standard. 28
[(d)] (E) An aggregator or broker who assists an electricity customer in 29
purchasing electricity but who does not supply the electricity or take title to or ownership 30 SENATE BILL 434 25
of the electricity may require the electricity supplier who supplies the electricity to 1
demonstrate compliance with this subtitle. 2
[(e)] (F) (1) Notwithstanding the requirements of § 7–703(b) of this subtitle, 3
if the actual or projected dollar–for–dollar cost incurred or to be incurred by an electricity 4
supplier solely for the purchase of Tier 1 renewable energy credits derived from solar energy 5
in any 1 year is greater than or equal to, or is anticipated to be greater than or equal to, 6
6.0% of the electricity supplier’s total annual electricity sales revenues in Maryland, the 7
electricity supplier may request that the Commission: 8
(i) delay by 1 year each of the scheduled percentages for solar energy 9
under § 7–703(b) of this subtitle that would apply to the electricity supplier; and 10
(ii) allow the [renewable] CLEAN energy portfolio standard for solar 11
energy for that year to continue to apply to the electricity supplier for the following year. 12
(2) In making its determination under paragraph (1) of this subsection, the 13
Commission shall consider the actual or projected dollar–for–dollar compliance costs of 14
other electricity suppliers. 15
(3) If an electricity supplier makes a request under paragraph (1) of this 16
subsection based on projected costs, the electricity supplier shall provide verifiable evidence 17
of the projections to the Commission at the time of the request. 18
(4) If the Commission allows a delay under paragraph (1) of this 19
subsection: 20
(i) the [renewable] CLEAN energy portfolio standard for solar 21
energy applicable to the electricity supplier under the delay continues for each subsequent 22
consecutive year that the actual or projected dollar–for–dollar costs incurred, or to be 23
incurred, by the electricity supplier solely for the purchase of solar renewable energy credits 24
is greater than or equal to, or is anticipated to be greater than or equal to, 6.0% of the 25
electricity supplier’s total annual retail electricity sales revenues in Maryland; and 26
(ii) the [renewable] CLEAN energy portfolio standard for solar 27
energy applicable to the electricity supplier under the delay is increased to the next 28
scheduled percentage increase under § 7–703(b) of this subtitle for each year in which the 29
actual or projected dollar–for–dollar costs incurred, or to be incurred, by the electricity 30
supplier solely for the purchase of solar renewable energy credits is less than, or is 31
anticipated to be less than, 6.0% of the electricity supplier’s total annual retail electricity 32
sales revenues in Maryland. 33
7–706. 34
(a) (1) Except as provided in paragraph (2) of this subsection, in accordance 35
with the obligation to provide standard offer service through the bid process created under 36
§ 7–510 of this title, the Commission shall allow an electricity supplier to recover actual 37 26 SENATE BILL 434
dollar–for–dollar costs incurred, including a compliance fee under § 7–705 of this subtitle, 1
in complying with a State–mandated [renewable] CLEAN energy portfolio standard. 2
(2) In accordance with the Phase II settlement agreement approved by the 3
Commission in Order No. 78710 in Case No. 8908 on September 30, 2003, for any 4
full–service agreement executed before the [renewable] CLEAN energy PORTFOLIO 5
standard under this subtitle applies to an electric company, the electric company and its 6
wholesale electricity suppliers may pass through their commercially reasonable additional 7
costs, if any, associated with complying with the standard, through the end of the year of 8
standard offer service in which the requirement took effect. 9
(b) An electricity supplier may recover a compliance fee if: 10
(1) the payment of a compliance fee is the least–cost measure to customers 11
as compared to the purchase of Tier 1 renewable sources to comply with a [renewable] 12
CLEAN energy portfolio standard; 13
(2) there are insufficient Tier 1 renewable sources available for the 14
electricity supplier to comply with a [renewable] CLEAN energy portfolio standard; or 15
(3) a wholesale electricity supplier defaults or otherwise fails to deliver 16
renewable energy credits under a supply contract approved by the Commission. 17
7–707. 18
(c) An electricity supplier that supplies electricity to residential retail electric 19
customers may not market electricity as green power unless: 20
(1) the percentage of the electricity being offered, or the equivalent number 21
of renewable energy credits associated with the electricity being marketed as green power, 22
that is eligible for inclusion in meeting the [renewable] CLEAN energy portfolio standard 23
equals or exceeds the greater of: 24
(i) 51%; or 25
(ii) 1% higher than the [renewable] CLEAN energy portfolio 26
standard for the year the electricity is provided to the customer; 27
(d) (2) (i) Each year the Commission shall hold a proceeding to set a price 28
per megawatt–hour for electricity marketed as green power under this section that may 29
not be exceeded by an electricity supplier except as provided in paragraph (3) of this 30
subsection. 31
(ii) Subject to paragraph (4) of this subsection, the price set by the 32
Commission under subparagraph (i) of this paragraph may: 33
SENATE BILL 434 27
1. exceed the maximum price per megawatt–hour that is 1
authorized under § 7–510(d)(2)(i) of this title; and 2
2. differ based on the amount and source of the electricity 3
generation. 4
(iii) During a proceeding held under subparagraph (i) of this 5
paragraph, the Commission: 6
1. shall consider: 7
A. the price of the energy purchased, including the total cost 8
of the renewable energy credits; 9
B. the amount of electricity that is eligible for inclusion in 10
meeting the [renewable] CLEAN energy portfolio standard; 11
C. the state in which the electricity was generated; and 12
D. applicable market data; and 13
2. may consider whether the purchase of renewable energy 14
credits was bundled with a power purchase agreement from the energy sources associated 15
with the credit. 16
(3) (i) On request by an electricity supplier, the Commission shall hold 17
a proceeding to set a price per megawatt–hour for electricity marketed as green power for 18
that electricity supplier. 19
(ii) Subject to paragraph (4) of this subsection, at a proceeding held 20
under this paragraph the Commission may set a price per megawatt–hour that is higher 21
than the price determined in the proceeding held under paragraph (2) of this subsection for 22
an electricity supplier if: 23
1. the electricity supplier demonstrates to the Commission’s 24
satisfaction, based on an independent third–party audit, that the actual cost to the 25
electricity supplier for the generation or supply of electricity exceeds that of the price 26
determined through the proceeding held in accordance with paragraph (2) of this 27
subsection; 28
2. the increased price reflects only the cost of the electricity 29
marketed as green power and is not associated with any of the electricity supplier’s other 30
costs; and 31
3. the electricity supplier demonstrates to the Commission’s 32
satisfaction that the electricity supplier has a significant long–term investment in 33 28 SENATE BILL 434
renewable energy that meets the [renewable] CLEAN energy portfolio standard under § 1
7–703 of this subtitle. 2
(iii) During a proceeding held under this paragraph, the Commission 3
shall consider: 4
1. whether the purchase of renewable energy credits was 5
bundled with a power purchase agreement from the energy sources associated with the 6
credit; 7
2. the price of the energy purchased, including the total cost 8
of the renewable energy credits or power purchase agreements; 9
3. the amount of electricity that is eligible for inclusion in 10
meeting the [renewable] CLEAN energy portfolio standard; 11
4. the state in which the electricity was generated; and 12
5. applicable market data. 13
(g) In addition to the disclosure required under subsection (f) of this section, the 14
Commission shall adopt regulations that require an electricity supplier, other than the 15
Department of General Services when the Department of General Services sells energy 16
under § 7–704.4 of this subtitle or a community choice aggregator under § 7–510.3 of this 17
title, that offers green power for sale to residential retail customers to include in the 18
electricity supplier’s marketing materials a disclosure, written in plain language, that 19
explains: 20
(4) the percentage of electricity that would be provided by the electricity 21
supplier that is eligible for inclusion in meeting the [renewable] CLEAN energy portfolio 22
standard; and 23
7–709. 24
(a) An electricity supplier may use accumulated renewable energy credits to meet 25
the [renewable] CLEAN energy portfolio standard, including credits created by a renewable 26
on–site generator. 27
(c) (1) (i) If an electricity supplier purchases solar renewable energy 28
credits directly from a renewable on–site generator with a capacity that exceeds 10 29
kilowatts to meet the solar component of the Tier 1 [renewable] CLEAN energy portfolio 30
standard, the duration of the contract term for the solar renewable energy credits may not 31
be less than 15 years. 32
7–709.1. 33
(c) (1) Under the Program, a certified system shall generate certified SRECs. 34 SENATE BILL 434 29
(2) Except as provided in paragraph (3) of this subsection, the provisions of 1
this subtitle relating to renewable energy credits shall apply to certified SRECs. 2
(3) A certified SREC shall have a compliance value of 150% for electricity 3
suppliers to put toward meeting the [renewable] CLEAN energy portfolio standard for 4
energy derived from solar energy under § 7–703 of this subtitle. 5
(d) To be eligible for certification under the Program, a solar energy generating 6
system shall: 7
(2) be eligible for inclusion in meeting the [renewable] CLEAN energy 8
portfolio standard; 9
(i) (1) A certified system shall continue to be eligible to generate certified 10
SRECs for 15 years after the date of certification by the Commission, or January 1, 2025, 11
whichever is later, after which the system shall be eligible to generate noncertified solar 12
renewable energy credits as long as the system meets the requirements as a Tier 1 13
renewable source under this subtitle. 14
(2) The Commission shall: 15
(i) on or before January 1, 2025, begin determining eligibility of 16
solar energy generating systems to be certified under the Program; and 17
(ii) on or before July 1, 2026, implement a revised system to review 18
and ensure compliance with the [renewable] CLEAN energy portfolio standard. 19
(3) An electricity supplier may apply the certified SRECs generated in 20
accordance with this section toward the [renewable] CLEAN energy portfolio standard 21
starting with the 2025 compliance year. 22
(4) Notwithstanding any other law, the Commission shall allow electricity 23
suppliers to demonstrate compliance with the [renewable] CLEAN energy portfolio 24
standard for the 2025 compliance year by submitting information between July 1, 2026, 25
and December 31, 2026, using the revised system developed in accordance with paragraph 26
(2)(ii) of this subsection. 27
SUBTITLE 12. NUCLEAR ENERGY PROCUREMENT . 28
7–1201. 29
(A) AFTER THE EFFECTIVE D ATE OF COMMISSION REGULATION S 30
IMPLEMENTING THIS SUBTITLE, A PERSON MAY SUBMIT AN APPLICATION TO TH E 31
COMMISSION FOR APPROV AL OF A PROPOSED NUC LEAR ENERGY GENERATION 32
PROJECT. 33 30 SENATE BILL 434
(B) (1) ON RECEIPT OF AN APPLICATION FOR APPR OVAL OF A PROPOSED 1
NUCLEAR ENERGY GENERATION PROJECT , THE COMMISSION SHALL : 2
(I) OPEN AN APPLICATION PERIOD WHERE OTHER I NTERESTED 3
PERSONS MAY SUBMIT A PPLICATIONS FOR APPR OVAL OF A PROPOSED NUCLEAR 4
ENERGY GENERATION PROJECT ; AND 5
(II) PROVIDE NOTICE THAT THE COMMISSION IS ACCEPTI NG 6
APPLICATIONS FOR APP ROVAL OF PROPOSED NUCLEAR ENERGY GENERATION 7
PROJECTS. 8
(2) THE COMMISSION SHALL SET THE CLOSING DATE FOR THE 9
APPLICATION PERIOD T O BE NOT SOONER THAN 90 DAYS AFTER THE NOTIC E 10
PROVIDED UNDER PARAG RAPH (1) OF THIS SUBSECTION . 11
(C) THE COMMISSION SHALL PROV IDE AT LEAST T WO ADDITIONAL 12
APPLICATION PERIODS BEFORE JANUARY 1, 2031. 13
(D) THE COMMISSION MAY PROVID E ADDITIONAL APPLICA TION PERIODS 14
THAT MEET THE REQUIR EMENTS OF THIS SECTI ON. 15
7–1202. 16
UNLESS EXTENDED BY MU TUAL CONSENT OF THE PARTIES, THE COMMISSION 17
SHALL APPROVE , CONDITIONALLY APPROV E, OR DENY AN APPLICATI ON WITHIN 1 18
YEAR AFTER THE CLOSE OF T HE APPLICATION PERIO D. 19
7–1203. 20
AN APPLICATION SHALL INCLUDE: 21
(1) A DETAILED DESCRIPTI ON AND FINANCIAL ANALYSIS OF THE 22
PROPOSED NUCLEAR ENERGY GENERATION PROJECT ; 23
(2) THE PROPOSED METHOD OF FINANCING THE PROJECT, 24
INCLUDING DOCUMENTAT ION DEMONSTRATING TH AT THE APPLICANT HAS APPLIED 25
FOR ALL CURRENT ELIG IBLE STATE AND FEDERAL GRA NTS, REBATES, TAX CREDITS, 26
LOAN GUARANTEES , AND OTHER PROGRAMS AVAIL ABLE TO OFFSET THE C OST OF 27
THE PROJECT OR PROVI DE TAX ADVANTAGES ; 28
(3) A COMMITMENT THAT TH E APPLICANT WILL USE BEST EFFORTS 29
TO APPLY FOR ALL ELI GIBLE STATE AND FEDERAL GRA NTS, REBATES, TAX CREDITS, 30 SENATE BILL 434 31
LOAN GUARANTEES , OR OTHER SIMILAR BEN EFITS AS THOSE BENEF ITS BECOME 1
AVAILABLE; 2
(4) A COST–BENEFIT ANALYSIS THA T SHALL INCLUDE AT A MINIMUM: 3
(I) A DETAILED INPUT –OUTPUT ANALYSIS OF T HE IMPACT OF 4
THE PROJECT ON INCOM E, EMPLOYMENT , WAGES, AND TAXES IN THE STATE; 5
(II) DETAILED INFORMATION CONCERNING ASSUMED 6
EMPLOYMENT IMPACTS I N THE STATE, INCLUDING THE EXPECT ED DURATION OF 7
EMPLOYMENT OPPORTUNI TIES, THE SALARY OF EACH P OSITION, AND OTHER 8
SUPPORTING EVIDENCE OF EMPLOYMENT IMPACT S; 9
(III) AN ANALYSIS OF THE ANTI CIPATED ENVIRONMENTA L 10
BENEFITS, HEALTH BENEFITS , AND ENVIRONMENTAL IM PACTS OF THE PROJECT TO 11
THE CITIZENS OF THE STATE; 12
(IV) AN ANALYSIS OF ANY I MPACT ON RESIDENTIAL , 13
COMMERCIAL , AND INDUSTRIAL RATEP AYERS OVER THE LIFE OF THE PROJEC T; 14
(V) AN ANALYSIS OF ANY L ONG–TERM EFFECT ON ENERG Y AND 15
CAPACITY MARKETS AS A RESULT OF THE PROJ ECT; 16
(VI) AN ANALYSIS OF ANY I MPACT ON BUSINESSES IN THE STATE; 17
AND 18
(VII) OTHER BENEFITS RESULTING FROM THE P ROJECT, SUCH AS 19
INCREASED IN–STATE CONSTRUCTION , OPERATION AND MAINTENANCE NEEDS, AND 20
EQUIPMENT PURCHASE S; 21
(5) A PROPOSED LONG –TERM PRICING SCHEDUL E FOR THE PROJECT 22
THAT SHALL SPECIFY A PRICE FOR THE GENERA TION ATTRIBUTES , INCLUDING THE 23
ENERGY, CAPACITY, ANCILLARY SERVICES , AND ENVIRONMENTAL ATTRIB UTES; 24
(6) A DECOMMISSIONING AN D WASTE STORAGE PLAN FOR THE 25
PROJECT, INCLUDING PROVISIONS FOR DECOMMISSIONING OR WASTE STORAGE AS 26
REQUIRED BY THE U.S. NUCLEAR REGULATORY COMMISSION; 27
(7) A COMMITMENT TO : 28
(I) ABIDE BY THE REQUIR EMENTS SET FORTH IN § 7–1206 OF 29
THIS SUBTITLE; AND 30
32 SENATE BILL 434
(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 GENERATION PROJECTS SUBMITTED 12
DURING AN APPLICATIO N PERIOD: 13
(1) THE LOWEST COST IMPACT O N 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 DEMONSTRATES POSITIV E NET 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 SENATE BILL 434 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 EMPLOYME NT 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 CONSTRUC TION, 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 ABILITY OF THE PROJECT TO ASSIST IN MEETING 18
THE CLEAN ELECTRICITY GOAL 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 PROJECT U NDER SUBSECTION (A) OF THIS SECTION , 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 GENERATION PROJECT , THE APPLICANT SHALL TAKE THE 30
FOLLOWING STEPS BEFO RE THE COMMISSION MAY APPROV E THE PROPOSED 31
PROJECT TO: 32
34 SENATE BILL 434
(I) MAKE SERIOUS , GOOD–FAITH EFFORTS TO SOL ICIT AND 1
INTERVIEW A REASONAB LE NUMBER OF MINORIT Y INVESTORS; 2
(II) AS PART OF THE APPLI CATION, SUBMIT A STATEMENT T O 3
THE COMMISSION THAT LISTS THE NAMES AND ADDRES SES OF ALL MINORITY 4
INVESTORS INTERVIEWE D AND WHETHER OR NOT ANY OF THOSE INVESTORS HAVE 5
PURCHASED AN EQUITY SHARE IN THE ENTITY SUBMITTING THE APPLICATION; 6
(III) SIGN A MEMORANDUM OF UNDERSTANDING WITH T HE 7
COMMISSION THAT REQUI RES THE APPLICANT TO AGAIN MAKE SERIOUS , 8
GOOD–FAITH EFFORTS TO SOLICIT AND INTERVIEW A REASONABLE NUMBER OF 9
MINORITY INVESTORS I N ANY FUTURE ATTEMPT S TO RAISE VENTURE C APITAL OR 10
ATTRACT NEW INVESTOR S TO THE PROJECT ; 11
(IV) SIGN A MEMORANDUM OF UNDERSTANDING WITH T HE 12
COMMISSION THAT REQUI RES THE APPLICANT TO USE BEST EFFORTS AND 13
EFFECTIVE OUTREACH TO OBTAIN , AS A GOAL , CONTRACTORS AND 14
SUBCONTRACTORS FOR T HE PROJECT THAT ARE MINORITY BUSINESS 15
ENTERPRISES , TO THE EXTENT PRACTI CABLE, AS SUPPORTED BY A DI SPARITY 16
STUDY; AND 17
(V) SIGN A MEMORANDUM OF UNDERSTANDING WITH T HE 18
COMMISSION AND SKILL ED LABOR ORGANIZATIO NS THAT REQUIRES THE 19
APPLICANT TO FOLLOW THE PORTIONS OF THE APPLICANT’S PLAN THAT RELATE T O 20
THE CRITERIA SET FOR TH IN SUBSECTION (A)(8) AND (9) OF THIS SECTION. 21
(3) THE GOVERNOR’S OFFICE OF SMALL, MINORITY, AND WOMEN 22
BUSINESS AFFAIRS, IN CONSULTATION WITH THE OFFICE OF THE ATTORNEY 23
GENERAL, SHALL PROVIDE ASSIST ANCE TO ALL POTENTIA L APPLICANTS AND 24
POTENTIAL MINORITY I NVESTORS TO SATISFY THE REQUIREMENTS UND ER 25
PARAGRAPH (2)(I) AND (III) OF THIS SUBSECTION . 26
7–1205. 27
(A) THE COMMISSION MAY NOT AP PROVE AN APPLICANT ’S PROPOSED 28
NUCLEAR ENERGY GENERATION PROJECT U NLESS: 29
(1) THE PROJECT IS CONNE CTED TO THE ELECTRIC DISTRIBUTION 30
SYSTEM SERVING THE STATE; 31
(2) OVER THE DURATION OF THE PROPOSED LONG –TERM PRICING 32
SCHEDULE, THE PROJECTED NET RATE I MPACT FOR AN AVERAGE RESIDENTIAL 33
CUSTOMER, BASED ON ANNUAL CONS UMPTION OF 12,000 KILOWATT–HOURS AND 34 SENATE BILL 434 35
COMBINED WITH THE PR OJECTED NET RATE IMP ACT OF OTHER NUCLEAR ENERGY 1
GENERATION PROJECTS , DOES NOT EXCEED AN AMOUNT DETERMINED BY THE 2
COMMISSION; 3
(3) OVER THE DURATION OF THE PROPOSED LONG –TERM PRICING 4
SCHEDULE, THE PROJECTED NET RA TE IMPACT FOR ALL NO NRESIDENTIAL 5
CUSTOMERS , CONSIDERED AS A BLEN DED AVERAGE AND COMBINED WITH THE 6
PROJECTED NET RATE I MPACT OF OTHER NUCLE AR ENERGY GENERATION 7
PROJECTS, DOES NOT EXCEED A PE RCENTAGE DETERMINED BY THE COMMISSION 8
OF NONRESIDENTIAL CU STOMERS’ TOTAL ANNUAL ELECTRI C BILLS; AND 9
(4) THE PRICE SPECIFIED IN THE PROPOSED LONG –TERM PRICING 10
SCHEDULE DOES NOT EX CEED AN AMOUNT DETER MINED BY THE COMMISSION. 11
(B) WHEN CALCULATING THE PROJECTED NET AVERAG E RATE IMPACTS 12
FOR NUCLEAR ENERGY G ENERATION PROJECTS U NDER THIS SECTION , THE 13
COMMISSION SHALL APPL Y THE SAME NET LONG –TERM COST PER 14
MEGAWATT –HOUR TO RESIDENTIAL AND NONRESIDENTIAL C USTOMERS. 15
(C) THE COMMISSION SHALL KEEP CONFIDENTIAL ANY AMO UNTS 16
DETERMINED UNDER SUB SECTION (A) OF THIS SECTION. 17
7–1206. 18
(A) AN APPLICATION FOR A PROPOSED NUCLEAR ENE RGY GENERATION 19
PROJECT IS SUBJECT T O A COMMUNITY BENEFI T AGREEMENT . 20
(B) A COMMUNITY BENEFIT AGREEMENT SHALL: 21
(1) BE APPLICABLE TO THE DE VELOPMENT OF A NUCLE AR ENERGY 22
GENERATION PROJECT ; 23
(2) PROMOTE INCREASED OP PORTUNITIES FOR LOCA L BUSINESSES 24
AND SMALL, MINORITY, WOMEN–OWNED, AND VETERAN –OWNED BUSINESSES IN THE 25
CLEAN ENERGY INDUSTR Y; 26
(3) ENSURE THE TIMELY , SAFE, AND EFFICIENT COMPLE TION OF THE 27
PROJECT BY: 28
(I) FACILITATING A STEAD Y SUPPLY OF HIGHLY S KILLED 29
CRAFT WORKERS WHO SH ALL BE PAID NOT LESS THAN THE PREVAILING WAGE RATE 30
DETERMINED BY THE COMMISSIONER OF LABOR AND INDUSTRY UNDER TITLE 17, 31
SUBTITLE 2 OF THE STATE FINANCE AND PROCUREMENT ARTICLE; AND 32 36 SENATE BILL 434
(II) GUARANTEEING THAT TH E CONSTRUCTION WORK 1
PERFORMED IN CONNECT ION WITH THE PROJECT WILL BE SUBJECT TO A N 2
AGREEMENT THAT : 3
1. IS WITH ONE OR MORE LABOR ORGANIZATIONS ; AND 4
2. ESTABLISHES, IN ACCORDANCE WITH THIS SECTION, 5
THE TERMS AND CONDIT IONS OF EMPLOYMENT A T THE CONSTRUCTION S ITE OF THE 6
PROJECT OR A PORTION OF THE PROJECT ; 7
(4) PROMOTE SAFE COMPLET ION OF THE PROJECT B Y ENSURING 8
THAT AT LEAST 80% OF THE CRAFT WORKERS ON THE PROJECT HAVE COM PLETED 9
AN OCCUPATIONAL SAFETY AND HEALTH ADMINISTRATION 10–HOUR OR 30–HOUR 10
COURSE; 11
(5) PROMOTE CAREER TRAIN ING OPPORTUNITIES IN THE 12
MANUFACTURING , MAINTENANCE , AND CONSTRUCTION IND USTRIES FOR LOCAL 13
RESIDENTS, VETERANS, WOMEN, AND MINORITIES; 14
(6) PROVIDE FOR BEST EFF ORTS AND EFFECTIVE O UTREACH TO 15
OBTAIN, AS A GOAL, THE USE OF A WORKFOR CE INCLUDING MINORIT IES, TO THE 16
EXTENT PRACTICABLE ; 17
(7) REFLECT A 21ST–CENTURY LABOR –MANAGEMENT APPROACH BY 18
DEVELOPERS AND SUPPL IERS BASED ON COOPERATION , HARMONY, AND 19
PARTNERSHIP THAT PRO ACTIVELY SEEKS TO EN SURE THAT WORKERS CA N FREELY 20
CHOOSE TO BOTH ORGAN IZE AND COLLECTIVELY BARGAIN; 21
(8) PROVIDE PLANS TO USE DOMESTIC IRON , STEEL, AND 22
MANUFACTURED GOODS T O THE GREATEST EXTEN T PRACTICABLE BY DISCLOSING 23
CONTRACTED SUPPLIERS ; 24
(9) USE LOCALLY AND DOME STICALLY MANUFACTURE D 25
CONSTRUCTION MATERIA LS AND COMPONENTS ; 26
(10) MAXIMIZE THE USE OF SKILLED LOCAL LABOR , PARTICULARLY 27
WITH REGARD TO THE C ONSTRUCTION AND MANU FACTURING COMPONENTS OF THE 28
PROJECT, USING METHODS INCLUD ING OUTREACH , HIRING, OR REFERRAL 29
METHODS THAT ARE AFF ILIATED WITH REGISTE RED APPRENTICESHIP P ROGRAMS 30
UNDER TITLE 11, SUBTITLE 4 OF THE LABOR AND EMPLOYMENT ARTICLE; 31
SENATE BILL 434 37
(11) GUARANTEE AGAINST ST RIKES, LOCKOUTS, AND SIMILAR 1
DISRUPTIONS; 2
(12) ENSURE THAT ALL WORK ON THE PROJECT FULLY CONFORMS TO 3
ALL RELEVANT STATE AND FEDERAL LAW S, RULES, AND REGULATIONS ; 4
(13) CREATE MUTUALLY BIND ING PROCEDURES FOR R ESOLVING 5
LABOR DISPUTES ARISI NG DURING THE TERM O F THE PROJECT; 6
(14) SET FORTH OTHER MECHANISMS FOR LABOR –MANAGEMENT 7
COOPERATION ON MATTE RS OF MUTUAL INTERES T AND CONCERN , INCLUDING 8
PRODUCTIVITY , QUALITY OF WORK , SAFETY, AND HEALTH; AND 9
(15) BIND ALL CONTRACTORS AND SUBCONTRACTORS T O THE TERMS 10
OF THE AGREEMENT THR OUGH THE INCLUSION OF APPROPR IATE PROVISIONS IN 11
ALL RELEVANT SOLICIT ATION AND CONTRACT D OCUMENTS. 12
7–1207. 13
(A) AN ORDER THE COMMISSION ISSUES APP ROVING A PROPOSED 14
NUCLEAR ENERGY GENERATION PROJECT S HALL: 15
(1) SPECIFY THE LONG –TERM PRICING SCHEDULE; 16
(2) SPECIFY THE DURATION OF THE LONG–TERM PRICING SCHEDUL E, 17
NOT TO EXCEED 30 YEARS; 18
(3) PROVIDE THAT : 19
(I) A PAYMENT MAY NOT BE MADE UNDER A LONG–TERM 20
PRICING SCHEDULE UNT IL ELECTRICITY SUPPL Y IS GENERATED BY TH E PROJECT; 21
AND 22
(II) RATEPAYERS AND THE STATE SHALL BE HELD H ARMLESS 23
FOR ANY COST OVERRUN S ASSOCIATED WITH TH E PROJECT; AND 24
(4) REQUIRE THAT ANY DEB T INSTRUMENT ISSUED IN CONNECTION 25
WITH THE PROJECT INCLUDE LANG UAGE SPECIFYING THAT THE DEBT INSTRUMENT 26
DOES NOT ESTABLISH A DEBT, OBLIGATION, OR LIABILITY OF THE STATE. 27
(B) AN ORDER APPROVING A PROPOSED NUCLEAR ENERGY GENERATION 28
PROJECT VESTS THE OW NER OF THE PROJECT W ITH THE RIGHT TO REC EIVE 29
PAYMENTS ACCORDING T O THE TERMS IN THE O RDER. 30 38 SENATE BILL 434
(C) ON OR BEFORE MARCH 1 EACH YEAR, THE COMMISSION SHALL REPORT 1
TO THE GOVERNOR AND , IN ACCORDANCE WITH § 2–1257 OF THE STATE 2
GOVERNMENT ARTICLE, TO THE SENATE COMMITTEE ON EDUCATION, ENERGY, 3
AND THE ENVIRONMENT AND THE HOUSE ECONOMIC MATTERS COMMITTEE ON : 4
(1) APPLICANT COMPLIANCE WITH THE MINORITY BU SINESS 5
ENTERPRISE PARTICIPA TION GOALS UNDER § 7–1204(C) OF THIS SUBTITLE; AND 6
(2) WITH RESPECT TO THE COMMUNITY BENEFIT AG REEMENT UNDER 7
§ 7–1206 OF THIS SUBTITLE: 8
(I) THE AVAILABILITY AND USE OF OPPORTUNITIES FOR LOCAL 9
BUSINESSES AND SMALL , MINORITY, WOMEN–OWNED, AND VETERAN –OWNED 10
BUSINESSES; 11
(II) THE SUCCESS OF EFFOR TS TO PROMOTE CAREER TRAINING 12
OPPORTUNITIES IN THE MANUFACTURING , MAINTENANCE , AND CONSTRUCTION 13
INDUSTRIES FOR LOCAL RESIDENTS, VETERANS, WOMEN, AND MINORITIES ; AND 14
(III) COMPLIANCE WITH THE MINORITY WORKFORCE G OAL 15
UNDER § 7–1206(B) OF THIS SUBTITLE. 16
7–1208. 17
(A) (1) IF THE COMMISSION APPROVES PROPOSALS THAT 18
DEMONSTRATE , BASED ON THE CRITERI A SPECIFIED IN § 7–1203 OF THIS SUBTITLE, 19
POSITIVE NET ECONOMI C, ENVIRONMENTAL , AND HEALTH BENEFITS TO THE STATE, 20
THE COMMISSION SHALL APPR OVE ORDERS TO FACILI TATE THE FINANCING O F 21
NUCLEAR ENERGY GENER ATION PROJECTS. 22
(2) WHEN CALCULATING THE NET BENEFITS TO THE STATE UNDER 23
PARAGRAPH (1) OF THIS SUBSECTION , THE COMMISSION MAY CONTRA CT FOR THE 24
SERVICES OF INDEPEND ENT CONSULTANTS AND EXPERTS. 25
(B) THE COMMISSION MAY NOT AP PROVE AN ORDER TO FA CILITATE THE 26
FINANCING OF A NUCLE AR ENERGY GENERATION PROJECT U NLESS THE PROJECT IS 27
SUBJECT TO A COMMUNI TY BENEFIT AGREEMENT UNDER § 7–1206 OF THIS 28
SUBTITLE. 29
7–1209. 30
SENATE BILL 434 39
(A) THE FINDINGS AND EVID ENCE RELIED ON BY THE GENERAL ASSEMBLY 1
FOR THE CONTINUATION OF THE MINORITY BUSINESS ENTERPRISE PROGRAM 2
UNDER TITLE 14, SUBTITLE 3 OF THE STATE FINANCE AND PROCUREMENT 3
ARTICLE ARE INCORPORA TED IN THIS SECTION . 4
(B) TO THE EXTENT PRACTIC ABLE AND AUTHORIZED BY THE UNITED 5
STATES CONSTITUTION, APPROVED APPLICANTS FOR A PROPOSED NUCLE AR 6
ENERGY GENERATION PROJECT S HALL COMPLY WITH THE STATE’S MINORITY 7
BUSINESS ENTERPRISE PROGRAM. 8
(C) (1) WITHIN 6 MONTHS AFTER THE ISS UANCE OF AN ORDER THAT 9
APPROVES A NUCLEAR ENERGY GENERATION PROJECT AND INCLUDES A 10
LONG–TERM PRICING COMPONENT , THE GOVERNOR’S OFFICE OF SMALL, 11
MINORITY, AND WOMEN BUSINESS AFFAIRS, IN CONSULTATION WITH THE OFFICE 12
OF THE ATTORNEY GENERAL AND THE APPROVED APPLICANT , SHALL ESTABLISH A 13
CLEAR PLAN FOR SETTI NG REASONABLE AND AP PROPRIATE MINORITY B USINESS 14
ENTERPRISE PARTICIPA TION GOALS AND PROCE DURES FOR EACH PHASE OF THE 15
NUCLEAR ENERGY GENERATION PROJECT . 16
(2) TO THE EXTENT PRACTIC ABLE, THE GOALS AND PROCEDURES SET 17
IN ACCORDANCE WITH PARAGRAPH (1) OF THIS SUBSECTION SHALL BE BASED ON 18
THE REQUIREMENTS OF TITLE 14, SUBTITLE 3 OF THE STATE FINANCE AND 19
PROCUREMENT ARTICLE AND THE REGUL ATIONS IMPLEMENTING THAT SUBTITLE . 20
(3) EVERY 6 MONTHS FOLLOWING THE ISSUANCE OF AN ORDER THAT 21
APPROVES A NUCLEAR ENERGY GENERATION PROJECT AND INCLUDES A 22
LONG–TERM PRICING COMPONENT , AN APPROVED APPLICANT SHALL SUBM IT A 23
REPORT ON ITS PROGRE SS ESTABLISHING AND IMPLEMENTING MINORIT Y BUSINESS 24
ENTERPRISE GOALS AND PR OCEDURES TO THE COMMISSION. 25
7–1210. 26
(A) THE COMMISSION SHALL ADOPT REGULATIONS TH AT: 27
(1) ESTABLISH THE NUCLEAR ENERGY L ONG–TERM PRICING 28
PURCHASE OBLIGATION SUFFICIENTLY IN ADVA NCE TO ALLOW AN ELEC TRIC 29
COMPANY TO REFLECT N UCLEAR ENERGY LONG –TERM PRICING COSTS A S A 30
NONBYPASSABLE SURCHA RGE PAID BY ALL DIST RIBUTION CUSTOMERS O F THE 31
ELECTRIC COMPANY ; 32
(2) ESTABLISH A NONBYPASSABLE SURC HARGE THAT ALLOWS AN 33
ELECTRIC COMPANY TO RECOVER ALL COSTS AS SOCIATED WITH THE PU RCHASE OF 34 40 SENATE BILL 434
NUCLEAR ENERGY FROM ALL DISTRIBUTIO N CUSTOMERS OF THE E LECTRIC 1
COMPANY; 2
(3) ESTABLISH AN ESCROW ACCOUNT THAT IS UNDER COMMISSION 3
SUPERVISION; AND 4
(4) DEFINE RULES THAT FACILITAT E AND ENSURE THE SEC URE AND 5
TRANSPARENT TRANSFER OF REVENUES AND LONG –TERM PRICING PAYMENTS 6
AMONG PARTIES . 7
(B) (1) EACH ELECTRIC COMPANY SHALL PROCURE FROM T HE ESCROW 8
ACCOUNT ESTABLISHED BY REGULATION UNDER THIS SECTION A VOLUME OF 9
NUCLEAR ENERGY EQUAL TO THE ELECTRIC COMPANY ’S RESPECTIVE PERCENTAG E 10
OF RETAIL ELECTRIC S ALES EACH YEAR. 11
(2) (I) SUBJECT TO ANY ESCROW ACCOUNT RESERVE 12
REQUIREMENT THE COMMISSION ESTABLISHE S, IF THERE IS INSUFFIC IENT 13
NUCLEAR ENERGY AVAILABLE TO SATISFY THE ELECTRIC COMPANI ES’ NUCLEAR 14
ENERGY OBLIGATION, THE OVERPAYMENT SHAL L BE DISTRIBUTED TO ELECTRIC 15
COMPANIES TO BE REFU NDED OR CREDITED TO EACH DISTRIBUTION CU STOMER 16
BASED ON THE CUSTOME R’S CONSUMPTION OF ELE CTRICITY SUPPLY THAT IS 17
SUBJECT TO THE CLEAN ENERGY PORTFOLIO STA NDARD. 18
(II) SUBJECT TO ANY ESCROW ACCOUNT RESERVE 19
REQUIREMENT THE COMMISSION E STABLISHES, THE CALCULATION OF A N 20
ELECTRIC COMPANY ’S NUCLEAR ENERGY PURCHASE OBLIGATION SHALL BE BASED 21
ON FINAL ELECTRICITY SALES DATA AS REPORT ED BY PJM INTERCONNECTION A ND 22
MEASURED AT THE CUST OMER METER . 23
(3) FOR EACH LONG –TERM PRICING SCHEDUL E FOR WHICH A 24
NUCLEAR ENERGY GENERATION PROJECT R ECEIVES PAYMENT , THE PROJECT 25
SHALL: 26
(I) SELL ALL ENERGY , CAPACITY, AND ANCILLARY SERVIC ES 27
ASSOCIATED WITH THE CREATION OF THE LONG –TERM PRICING INTO TH E MARKETS 28
OPERATED BY PJM INTERCONNECTION; AND 29
(II) DISTRIBUTE THE PROCE EDS RECEIVED FROM TH E SALES 30
UNDER ITEM (I) OF THIS PARAGRAPH TO ELECTRIC COMPANIES T O BE REFUNDED 31
OR CREDITED TO EACH DISTRIBUTION CUSTOME R BASED ON THE CUSTO MER’S 32
CONSUMPTION OF ELECT RICITY SUPPLY THAT I S SUBJECT TO THE CLEAN ENERG Y 33
PORTFOLIO STANDARD . 34
SENATE BILL 434 41
(C) A DEBT, OBLIGATION, OR LIABILITY OF A NU CLEAR ENERGY 1
GENERATION PROJECT O R OF AN OWNER OR OPERATOR OF A NUCLEAR ENERGY 2
GENERATION PROJECT M AY NOT BE CONSIDERED A DEBT, OBLIGATION, OR 3
LIABILITY OF THE STATE. 4
7–1211. 5
ON OR BEFORE JULY 1, 2027, THE COMMISSION SHALL ADOP T REGULATIONS 6
TO CARRY OUT THIS SU BTITLE. 7
Article – State Government 8
9–20C–01. 9
(a) In this subtitle the following words have the meanings indicated. 10
(b) “Administration” means the Maryland Energy Administration. 11
(c) “Advisory Committee” means the Maryland [Offshore Wind] CLEAN 12
ENERGY Business Development Advisory Committee established under § 9–20C–02 of this 13
subtitle. 14
(d) “Director” means the Director of the Maryland Energy Administration. 15
(e) “Emerging business” means a business that is at least 51% owned and 16
controlled by an individual or individuals who are certified to have a personal net worth, 17
as defined in § 14–301 of the State Finance and Procurement Article, that does not exceed 18
$6,500,000 as adjusted each year for inflation according to the Consumer Price Index. 19
(f) “Fund” means the Maryland [Offshore Wind] CLEAN ENERGY Business 20
Development Fund established under § 9–20C–03 of this subtitle. 21
(g) “Minority” means an individual who is a member of any of the groups listed in 22
§ 14–301(k)(1)(i) of the State Finance and Procurement Article. 23
9–20C–02. 24
(a) There is a Maryland [Offshore Wind] CLEAN ENERGY Business 25
Development Advisory Committee. 26
(b) The Advisory Committee shall make recommendations to the Administration 27
on the most effective manner to use money in the Fund consistent with the purposes of the 28
Fund. 29
(c) The Advisory Committee consists of the following members: 30
42 SENATE BILL 434
(1) two members of the Senate of Maryland, one from each of the principal 1
political parties, appointed by the President of the Senate; 2
(2) two members of the House of Delegates, one from each of the principal 3
political parties, appointed by the Speaker of the House; 4
(3) the Director or the Director’s designee; 5
(4) the Secretary of Commerce, or the Secretary’s designee; 6
(5) the Special Secretary of the Governor’s Office of Small, Minority, and 7
Women Business Affairs, or the Special Secretary’s designee; and 8
(6) the following [12] members, appointed by the Governor: 9
(i) [1] ONE representative of a public institution of higher education 10
in the State; 11
(ii) [1] ONE representative of a historically black or African 12
American university in the State; 13
(iii) [1] ONE representative of the State’s community colleges; 14
(iv) [1] ONE representative of the Maryland Independent Colleges 15
and Universities Association; 16
(v) [1] ONE representative of the Maryland Small Business 17
Development Center Network; 18
(vi) [1] ONE representative of the Maryland Business Coalition for 19
Offshore Wind; 20
(vii) [1] ONE representative of a business incubator in the State with 21
experience in providing services to minority business enterprises as defined in § 14–301 of 22
the State Finance and Procurement Article, or to emerging businesses, including emerging 23
businesses owned by minorities; 24
(viii) [1] ONE individual with experience in providing business 25
financing to minority business enterprises as defined in § 14–301 of the State Finance and 26
Procurement Article, or to emerging businesses, including emerging businesses owned by 27
minorities; 28
(ix) [1] ONE representative of an offshore wind developer; 29
(x) [1] ONE representative of an original equipment manufacturer; 30
SENATE BILL 434 43
(xi) [1] ONE individual who is a minority business advocate; [and] 1
(XII) TWO REPRESENTATIVES OF T HE NUCLEAR ENERGY 2
INDUSTRY; 3
(XIII) TWO REPRESENTATIVES OF T HE SOLAR ENERGY INDUSTRY; 4
(XIV) ONE REPRESENTATIVE OF TH E ENERGY STORAGE 5
INDUSTRY; AND 6
[(xii)] (XV) [1] ONE individual with experience in [offshore wind] 7
supply chain issues. 8
(d) The Governor shall appoint the chair of the Advisory Committee. 9
(e) The Administration shall provide staff for the Advisory Committee. 10
(f) A member of the Advisory Committee: 11
(1) may not receive compensation as a member of the Advisory Committee; 12
but 13
(2) is entitled to reimbursement for expenses under the Standard State 14
Travel Regulations, as provided in the State budget. 15
(g) (1) On or before December 31, [2013] 2026, the Advisory Committee shall 16
provide written recommendations to the Administration regarding the most effective use 17
of money in the Fund in order to maximize opportunities for emerging businesses in the 18
State, including minority–owned emerging businesses, to participate in [the offshore wind 19
industry] CLEAN ENERGY INDUSTR IES. 20
(2) In making a recommendation under paragraph (1) of this subsection, 21
the Advisory Committee shall consider opportunities to maximize leveraging opportunities, 22
mentoring and protege models, innovation clusters, existing incubator and business 23
development programs, and the appropriate role of partnerships with the State’s 24
universities and community colleges. 25
[(3) On or before December 31, 2014, the Advisory Committee shall provide 26
updated recommendations to the Administration.] 27
(h) On completion and submission of the written recommendations required 28
under subsection (g) of this section, the Advisory Committee shall terminate its operation 29
and cease to meet. 30
9–20C–03. 31
44 SENATE BILL 434
(a) There is a Maryland [Offshore Wind] CLEAN ENERGY Business 1
Development Fund in the Administration. 2
SECTION 4. AND BE IT FURTHER ENACTED, That the publisher of the 3
Annotated Code of Maryland, in consultation with and subject to the approval of the 4
Department of Legislative Services, shall correct, with no further action required by the 5
General Assembly, cross–references and terminology rendered incorrect by this Act. The 6
publisher shall adequately describe any correction that is made in an editor’s note following 7
the section affected. 8
SECTION 5. AND BE IT FURTHER ENACTED, That a presently existing obligation 9
or contract right may not be impaired in any way by this Act. 10
SECTION 6. AND BE IT FURTHER ENACTED, That for fiscal year 2026, funds 11
from the Dedicated Purpose Account may be transferred by budget amendment , in 12
accordance with § 7–310 of the State Finance and Procurement Article, to implement the 13
requirements of §§ 7–1201, 7–1204, and 7–1211 of the Public Utilities Article, as enacted 14
by Section 1 of this Act. 15
SECTION 7. AND BE IT FURTHER ENACTED, That this Act shall be construed to 16
apply retroactively and shall be applied to and interpreted to affect all clean energy 17
portfolio standard compliance years that begin on or after January 1, 2025. 18
SECTION 8. AND BE IT FURTHER ENACTED, That this Act shall take effect July 19
1, 2025. 20