EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
[Brackets] indicate matter deleted from existing law.
*sb0737*
SENATE BILL 737
C5, N1 5lr3522
CF 5lr1860
By: Senator Folden
Introduced and read first time: January 27, 2025
Assigned to: Education, Energy, and the Environment
A BILL ENTITLED
AN ACT concerning 1
Property Rights Protection Act of 2025 2
FOR the purpose of prohibiting certain persons from exercising a right of condemnation to 3
acquire property for the purpose of constructing a power line or a certain generating 4
station; prohibiting the State or any of its instrumentalities or political subdivisions 5
from acquiring by condemnation property that is encumbered by certain 6
conservation easements or will be used for the construction of a power line or a 7
certain generating station; and generally relating to restrictions on a right of 8
condemnation to acquire property. 9
BY repealing and reenacting, with amendments, 10
Article – Public Utilities 11
Section 7–103, 7–207(b), and 7–208(b) 12
Annotated Code of Maryland 13
(2020 Replacement Volume and 2024 Supplement) 14
BY repealing and reenacting, without amendments, 15
Article – Public Utilities 16
Section 7–207.1(b) 17
Annotated Code of Maryland 18
(2020 Replacement Volume and 2024 Supplement) 19
BY adding to 20
Article – Public Utilities 21
Section 7–207.1(h) 22
Annotated Code of Maryland 23
(2020 Replacement Volume and 2024 Supplement) 24
BY repealing and reenacting, without amendments, 25
Article – Real Property 26
Section 10–705(a)(1) and (2) and 12–101(a) 27 2 SENATE BILL 737
Annotated Code of Maryland 1
(2023 Replacement Volume and 2024 Supplement) 2
BY adding to 3
Article – Real Property 4
Section 12–101(e) 5
Annotated Code of Maryland 6
(2023 Replacement Volume and 2024 Supplement) 7
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 8
That the Laws of Maryland read as follows: 9
Article – Public Utilities 10
7–103. 11
(a) An electric company incorporated in Maryland may: 12
(1) manufacture, sell, and furnish electric power in any municipal 13
corporation or county of the State; 14
(2) construct a power line to transmit power under, along, on, or over the 15
roadways or public ways of any municipal corporation or county of the State; and 16
(3) connect the power line from the place of supply to any other structure 17
or object. 18
(b) (1) An electric company must have the consent of the governing body of the 19
municipal corporation or county before laying or constructing any power line in accordance 20
with subsection (a) of this section. 21
(2) The governing body of the municipal corporation or county may adopt 22
reasonable regulations and conditions for the laying of a power line, including regulations 23
requiring the electric company to refill and repave any roadway or public way under which 24
the power line is laid. 25
(C) AN ELECTRIC COMPANY M AY NOT EXERCISE A RI GHT OF 26
CONDEMNATION TO ACQUIRE P ROPERTY FOR THE CONS TRUCTION OF A POWER LINE 27
IN ACCORDANCE WITH T HIS SECTION. 28
7–207. 29
(b) (1) (i) Unless a certificate of public convenience and necessity for the 30
construction is first obtained from the Commission, a person may not begin construction in 31
the State of: 32
1. a generating station; or 33 SENATE BILL 737 3
2. a qualified generator lead line. 1
(ii) If a person obtains Commission approval for construction under 2
§ 7–207.1 of this subtitle, the Commission shall exempt a person from the requirement to 3
obtain a certificate of public convenience and necessity under this section. 4
(iii) Notwithstanding subparagraph (i) of this paragraph, a person 5
may not apply to obtain a certificate of public convenience and necessity for construction of 6
a qualified generator lead line unless: 7
1. at least 90 days before the filing of an application for a 8
certificate of public convenience and necessity, the person had in good faith offered the 9
electric company that owns that portion of the electric grid in Maryland to which the 10
qualified generator lead line would interconnect a full and fair opportunity for the electric 11
company to construct the qualified generator lead line; and 12
2. at any time at least 10 days before the filing of an 13
application for a certificate of public convenience and necessity, the electric company: 14
A. did not accept from the person a proposal or a negotiated 15
version of the proposal under which the electric company would construct the qualified 16
generator lead line; or 17
B. stated in writing that the electric company did not intend 18
to construct the qualified generator lead line. 19
(2) (I) [Unless] EXCEPT AS PROVIDED IN SUBPARAGRAPH (II) OF 20
THIS PARAGRAPH , UNLESS a certificate of public convenience and necessity for the 21
construction is first obtained from the Commission, and the Commission has found that the 22
capacity is necessary to ensure a sufficient supply of electricity to customers in the State, a 23
person may not exercise a right of condemnation in connection with the construction of a 24
generating station. 25
(II) A PERSON MAY NOT EXERC ISE A RIGHT OF CONDE MNATION 26
TO ACQUIRE PROPERTY FOR THE PURPOSE OF C ONSTRUCTING A GENERA TING 27
STATION THAT PRODUCE S ELECTRICITY FROM W IND ENERGY OR SOLAR ENERGY. 28
(3) (i) Except as provided in paragraph (4) of this subsection, unless a 29
certificate of public convenience and necessity for the construction is first obtained from the 30
Commission, a person may not begin construction of an overhead transmission line that is 31
designed to carry a voltage in excess of 69,000 volts [or exercise a right of condemnation 32
with the construction]. 33
4 SENATE BILL 737
(ii) For construction related to an existing overhead transmission 1
line, the Commission may waive the requirement in subparagraph (i) of this paragraph for 2
good cause. 3
(iii) Notwithstanding subparagraph (i) of this paragraph and subject 4
to subparagraph (iv) of this paragraph, the Commission may issue a certificate of public 5
convenience and necessity for the construction of an overhead transmission line only if the 6
applicant for the certificate of public convenience and necessity: 7
1. is an electric company; or 8
2. is or, on the start of commercial operation of the overhead 9
transmission line, will be subject to regulation as a public utility by an officer or an agency 10
of the United States. 11
(iv) The Commission may not issue a certificate of public convenience 12
and necessity for the construction of an overhead transmission line in the electric 13
distribution service territory of an electric company to an applicant other than an electric 14
company if: 15
1. the overhead transmission line is to be located solely 16
within the electric distribution service territory of that electric company; and 17
2. the cost of the overhead transmission line is to be paid 18
solely by that electric company and its ratepayers. 19
[(v) 1. This subparagraph applies to the construction of an 20
overhead transmission line for which a certificate of public convenience and necessity is 21
required under this section. 22
2. On issuance of a certificate of public convenience and 23
necessity for the construction of an overhead transmission line, a person may acquire by 24
condemnation, in accordance with Title 12 of the Real Property Article, any property or 25
right necessary for the construction or maintenance of the transmission line.] 26
(4) (i) Except as provided in subparagraph (ii) of this paragraph, for 27
construction related to an existing overhead transmission line designed to carry a voltage 28
in excess of 69,000 volts, the Commission shall waive the requirement to obtain a certificate 29
of public convenience and necessity if the Commission finds that the construction does not[: 30
1. require the person to obtain new real property or 31
additional rights–of–way through eminent domain; or 32
2.] require larger or higher structures to accommodate: 33
[A.] 1. increased voltage; or 34
SENATE BILL 737 5
[B.] 2. larger conductors. 1
(ii) 1. For construction related to an existing overhead 2
transmission line, including repairs, that is necessary to avoid an imminent safety hazard 3
or reliability risk, a person may undertake the necessary construction. 4
2. Within 30 days after construction is completed under 5
subsubparagraph 1 of this subparagraph, a person shall file a report with the Commission 6
describing the work that was completed. 7
7–207.1. 8
(b) This section applies to a person who: 9
(1) constructs a generating station: 10
(i) designed to provide on–site generated electricity if: 11
1. the capacity of the generating station does not exceed 70 12
megawatts; and 13
2. the electricity that may be exported for sale from the 14
generating station to the electric system is sold only on the wholesale market pursuant to 15
an interconnection, operation, and maintenance agreement with the local electric company; 16
or 17
(ii) that produces electricity from wind if: 18
1. the generating station is land–based; 19
2. the capacity of the generating station does not exceed 70 20
megawatts; 21
3. the electricity that may be exported for sale from the 22
generating station to the electric system is sold only on the wholesale market pursuant to 23
an interconnection, operation, and maintenance agreement with the local electric company; 24
4. the Commission provides an opportunity for public 25
comment at a public hearing as provided in subsection (g) of this section; and 26
5. the generating station’s wind turbines are not located 27
within a distance from the Patuxent River Naval Air Station that is determined by 28
regulations adopted by the Commission in coordination with the Commander, Naval Air 29
Warfare Center Aircraft Division, provided that the distance requirement under the 30
regulation is: 31
6 SENATE BILL 737
A. not greater than is necessary to encompass an area in 1
which utility scale wind turbines could create Doppler radar interference for missions at 2
the Patuxent River Naval Air Station; 3
B. not greater than 46 miles, measured from location 4
38.29667N, 76.37668W; and 5
C. subject to modification if necessary to reflect changes in 6
missions or technology at the Patuxent River Naval Air Station or changes in wind energy 7
technology; or 8
(2) constructs a generating station if: 9
(i) the capacity of the generating station does not exceed 25 10
megawatts; 11
(ii) the electricity that may be exported for sale from the generating 12
station to the electric system is sold only on the wholesale market pursuant to an 13
interconnection, operation, and maintenance agreement with the local electric company; 14
and 15
(iii) at least 10% of the electricity generated at the generating station 16
each year is consumed on–site. 17
(H) A PERSON MAY NOT EXERC ISE A RIGHT OF CONDE MNATION TO ACQUIRE 18
PROPERTY FOR THE PUR POSE OF CONSTRUCTING A GENERATING STATION UNDER 19
THIS SECTION THAT PR ODUCES ELECTRICITY F ROM WIND ENERGY OR S OLAR 20
ENERGY. 21
7–208. 22
(b) This section applies to any person: 23
(1) constructing a generating station and its associated overhead 24
transmission lines designed to carry a voltage in excess of 69,000 volts; OR 25
(2) [exercising the right of condemnation in connection with the 26
construction; or 27
(3)] constructing a qualified submerged renewable energy line. 28
Article – Real Property 29
10–705. 30
(a) (1) In this section the following words have the meanings indicated. 31 SENATE BILL 737 7
(2) “Conservation easement” means an easement, covenant, restriction, or 1
condition on real property, including an amendment to an easement, covenant, restriction, 2
or condition, as provided for in § 2–118 of this article that is: 3
(i) Owned by: 4
1. The Maryland Environmental Trust; 5
2. The Maryland Historical Trust; 6
3. The Maryland Agricultural Land Preservation 7
Foundation; 8
4. The Maryland Department of Natural Resources; 9
5. A county or municipal corporation and is funded by the 10
Maryland Department of Natural Resources, the Rural Legacy Program, or a local 11
agricultural preservation program; or 12
6. A land trust; or 13
(ii) Required by a permit issued by the Department of the 14
Environment. 15
12–101. 16
(a) All proceedings for the acquisition of private property for public use by 17
condemnation are governed by the provisions of this title and of Title 12, Chapter 200 of 18
the Maryland Rules. 19
(E) NOTWITHSTANDING ANY O THER LAW, THE STATE OR ANY OF ITS 20
INSTRUMENTALITIES OR POLITICAL SUBDIVISIO NS MAY NOT ACQUIRE B Y 21
CONDEMNATION A PROPE RTY THAT: 22
(1) IS ENCUMBERED BY A CONS ERVATION EASEMENT AS DEFINED 23
UNDER § 10–705(A) OF THIS ARTICLE; OR 24
(2) WILL BE USED FOR THE CONSTRUCTION OF A PO WER LINE OR A 25
GENERATING STATION T HAT PRODUCES ELECTRI CITY FROM WIND ENERG Y OR 26
SOLAR ENERGY . 27
SECTION 2. AND BE IT FURTH ER ENACTED, That this Act shall take effect 28
October 1, 2025. 29