EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTING LAW.
[Brackets] indicate matter deleted from existing law.
*sb0909*
SENATE BILL 909
C5, M5 5lr1391
CF HB 1037
By: Senator Hester
Introduced and read first time: January 28, 2025
Assigned to: Education, Energy, and the Environment
A BILL ENTITLED
AN ACT concerning 1
Energy Resource Adequacy and Planning Act 2
FOR the purpose of establishing the Integrated Resource Planning Office in the Public 3
Service Commission; requiring the Office to develop a Comprehensive Energy 4
Forecast and conduct a certain study to support the development of the Forecast; 5
requiring the Office, in consultation with the Commission and the Maryland Energy 6
Administration, to complete certain energy modeling; requiring the Commission, in 7
consultation with the Office, to adopt regulations requiring each electric company to 8
develop a certain integrated resource plan; and generally relating to the Integrated 9
Resource Planning Office and energy resource planning. 10
BY adding to 11
Article – Public Utilities 12
Section 7–1201 through 7–1206 to be under the new subtitle “Subtitle 12. Integrated 13
Resource Planning Office” 14
Annotated Code of Maryland 15
(2020 Replacement Volume and 2024 Supplement) 16
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 17
That the Laws of Maryland read as follows: 18
Article – Public Utilities 19
SUBTITLE 12. INTEGRATED RESOURCE PLANNING OFFICE. 20
7–1201. 21
(A) IN THIS SUBTITLE THE FOLLOWING WORDS HAVE THE MEANINGS 22
INDICATED. 23
2 SENATE BILL 909
(B) “DEMAND ELEMENT ” MEANS A SPECIFIC FAC TOR OR COMPONENT THA T 1
CONTRIBUTES TO THE O VERALL ELECTRICITY L OAD OR DEMAND . 2
(C) “DIRECTOR” MEANS THE DIRECTOR OF THE INTEGRATED RESOURCE 3
PLANNING OFFICE. 4
(D) “FORECAST” MEANS THE COMPREHENSIVE ENERGY FORECAST. 5
(E) “OFFICE” MEANS THE INTEGRATED RESOURCE PLANNING OFFICE. 6
7–1202. 7
(A) THERE IS AN INTEGRATED RESOURCE PLANNING OFFICE IN THE 8
COMMISSION. 9
(B) (1) THE HEAD OF THE OFFICE IS THE DIRECTOR. 10
(2) THE DIRECTOR SHALL : 11
(I) BE APPOINTED BY THE GOVERNOR WITH THE ADV ICE AND 12
CONSENT OF THE SENATE; AND 13
(II) SERVE AT THE PLEASUR E OF THE GOVERNOR. 14
(C) (1) THE COMMISSION SHALL PROV IDE THE OFFICE WITH SUFFICIENT 15
STAFF AND RESOURCES TO PERFORM THE FUNCTION S OF THIS SUBTITLE. 16
(2) THE OFFICE MAY HIRE A PRI VATE CONSULTANT IF N ECESSARY TO 17
CARRY OUT THE REQUIR EMENTS OF THIS SUBTI TLE. 18
(D) IN ORDER TO CARRY OUT THE REQUIREMENTS OF THIS SUBTITLE, THE 19
OFFICE SHALL COLLABORATE WI TH: 20
(1) THE MARYLAND ENERGY ADMINISTRATION ; 21
(2) THE COMMISSION; 22
(3) THE POWER PLANT RESEARCH PROGRAM; 23
(4) THE MARYLAND CLEAN ENERGY CENTER; AND 24
(5) THE DEPARTMENT OF THE ENVIRONMENT . 25
SENATE BILL 909 3
7–1203. 1
(A) THE OFFICE SHALL DEVELOP A 25–YEAR COMPREHENSIVE ENERGY 2
FORECAST. 3
(B) THE PURPOSE OF THE FORECAST IS TO ANALYZE ENERGY SCENARIOS 4
AND POLICY OPTIONS F OR MEETING THE STATE’S ENERGY NEEDS AND 5
GREENHOUSE GAS EMISS IONS REDUCTION GOALS WHILE ENSURING ELECTRIC 6
DISTRIBUTION SYSTEM RELIABILITY AND COST –EFFECTIVENESS CONSIS TENT WITH 7
THE LONG–TERM ENERGY NEEDS OF THE STATE. 8
(C) THE FORECAST SHALL INCLUDE : 9
(1) REASONABLE PROJECTIO NS FOR ELECTRICITY LOAD AND 10
DEMAND FROM 2025 THROUGH 2050 THAT INCLUDE : 11
(I) STATEWIDE DEMAND ELE MENTS; AND 12
(II) DEMAND ELEMENTS FOR SPECIFIC ELECTRIC SE RVICE 13
TERRITORIES; 14
(2) SCENARIOS FOR MEETIN G: 15
(I) STATE ENERGY NEEDS AND GREENHOUSE GAS E MISSIONS 16
REDUCTION GOALS ; AND 17
(II) LOAD FORECASTS IN THE PJM REGION, AS DEFINED IN § 18
7–101 OF THIS TITLE; AND 19
(3) A STRATEGY TO MEET THE SCENARIO THAT THE OFFICE 20
DETERMINES BEST MEET S THE NEEDS STATED I N ITEM (2) OF THIS SUBSECTION AND 21
THAT INCLUDES : 22
(I) INFORMATION ON THE SCENARIO’S IMPACT ON ENERGY 23
RELIABILITY AND GREENHOUSE GAS EMISS IONS REDUCTIONS ; 24
(II) THE FINANCIAL IMPACT OF THE SCENARIO ON THE STATE 25
AND RATEPAYERS ; 26
(III) 1. SHORT– AND LONG–TERM RECOMMENDATIONS FOR 27
THE GENERATION , DISTRIBUTION, TRANSMISSION , AND STORAGE OF ELECTRICITY , 28
SUPPORTED BY ANALYSE S THAT BALANCE AFFOR DABILITY, RELIABILITY, AND 29
GREENHOUSE GAS EMISS IONS REDUCTION S; AND 30 4 SENATE BILL 909
2. RECOMMENDATIONS TO THE GENERAL ASSEMBLY TO 1
IMPLEMENT THE SHORT– AND LONG–TERM RECOMMENDATIONS ; 2
(IV) LOCATIONAL VALUE ESTIMATIONS IN CLUDING PRIORITY 3
GENERATION AND TRANS MISSION ZONES ATTRAC TIVE FOR RESOURCE 4
DEVELOPMENT ; 5
(V) A SUMMARY OF RELEVANT REGULATORY AND 6
ADMINISTRATIVE PROCE DURES THAT COULD BE STREAMLINED OR MODER NIZED 7
FOR GREATER EFFICIEN CY; 8
(VI) THE USE OF ALL BEST AVAILABLE TECHNOLOGI ES AND 9
TECHNOLOGIES THAT MA Y BECOME AVAILABLE I N THE FUTURE; 10
(VII) SENSITIVITIES RELATED TO VARIO US LEVELS OF 11
ELECTRIFICATION AND THE ADOPTION OF LOAD FLEXIBILITY AND DIST RIBUTED 12
ENERGY RESOURCES ; 13
(VIII) METHODS FOR ACHIEVING 60%, 80%, AND 100% OF THE 14
STATE’S ENERGY NEEDS THROUGH IN–STATE GENERATION ; 15
(IX) AN INDEPENDENT RAT EPAYER IMPACT ANALYS IS; 16
(X) RELATED INVESTMENTS IN ELECTRICITY AND G AS 17
INFRASTRUCTURE , INCLUDING ANY INTERP LAY BETWEEN THE TWO ; 18
(XI) ECONOMIC DEVELOPMENT AND WORKFORCE 19
OPPORTUNITIES ; 20
(XII) STATE FINANCING OPTIO NS, INCLUDING STATE 21
PROCUREMENT AND MULTISTATE PROCU REMENT; 22
(XIII) UTILITY BUSINESS MOD ELS, TARIFFS, AND COST RECOVERY ; 23
(XIV) SUPPORTIVE MARKET ST UDIES; 24
(XV) PLANS FOR LEVERAGING AVAILABLE FEDERAL FU NDS; AND 25
(XVI) KEY FINDINGS FROM TH E STUDY REQUIRED UNDER 26
SUBSECTION (D) OF THIS SECTION. 27
SENATE BILL 909 5
(D) (1) ON OR BEFORE SEPTEMBER 30, 2026, THE OFFICE SHALL 1
CONDUCT A STUDY TO S UPPORT THE DEVELOPME NT OF THE FORECAST. 2
(2) THE OFFICE SHALL HIRE A P RIVATE CONSULTANT TO MEET THE 3
REQUIREMENTS OF THIS SECTION. 4
(3) AS PART OF THE STUDY : 5
(I) THE COMMISSION SHALL STUD Y: 6
1. THE VIABILITY OF ENE RGY STORAGE AS A 7
TRANSMISSION ASSET ; 8
2. THE NECESSITY OF AN INDEPENDENT DISTRIBU TION 9
OPERATOR; AND 10
3. IN CONSULTATION WITH THE MARYLAND ENERGY 11
ADMINISTRATION , RECONDUCTORING OPPORTUNITIES IN THE STATE; 12
(II) THE MARYLAND ENERGY ADMINISTRATION SHALL STUDY 13
THE FEASIBILITY OF P LACING SMALL MODULAR REACTORS ON FORMER 14
ELECTRICITY GENERATI ON SITES; AND 15
(III) THE POWER PLANT RESEARCH PROGRAM SHALL STUDY 16
STATE LAND SUITABLE F OR SOLAR ENERGY DEVEL OPMENT. 17
(4) THE STUDY SHALL : 18
(I) INCLUDE AN ANALYSIS, MADE IN CONSULTATION WITH THE 19
DEPARTMENT OF TRANSPORTATION , OF METHODS FOR REDUC ING 20
TRANSMISSION –CONSTRAINED AREAS TH ROUGH THE USE OF EXI STING 21
RIGHTS–OF–WAY; 22
(II) INCLUDE THE FEASIBILITY AND EFFICACY OF: 23
1. BROADENING THE STATE’S POWER PURCHASE 24
AGREEMENT AUTHORITY ; 25
2. DEVELOPING ELECTRICI TY PROCUREMENT PLANS TO 26
ENSURE ADEQUATE , RELIABLE, AFFORDABLE , EFFICIENT, AND ENVIRONMENTALLY 27
SUSTAINABLE ELECTRIC ITY SERVICE AT THE LOWEST TOTAL COST OVER TIME , 28
TAKING INTO ACCOUNT ANY PRICE STABILITY BENEFITS; AND 29
6 SENATE BILL 909
3. CONDUCTING COMPETITI VE PROCUREMENT 1
PROCESSES TO PROCURE THE RESOURCES IDENTI FIED IN THE PROCUREM ENT 2
PLANS UNDER ITEM (II) OF THIS ITEM; AND 3
(III) INCLUDE AND INCORPOR ATE THE RESULTS OF THE STUDIES 4
REQUIRED UNDER PARAG RAPH (3) OF THIS SUBSECTION . 5
(5) ON OR BEFORE DECEMBER 31, 2026, THE OFFICE SHALL SUBMIT 6
A REPORT OF ITS FIND INGS AND ANY RECOMMENDATIONS TO T HE GENERAL 7
ASSEMBLY IN ACCORDANC E WITH § 2–1257 OF THE STATE GOVERNMENT ARTICLE. 8
7–1204. 9
(A) THE OFFICE, IN CONSULTATION WITH THE COMMISSION AND THE 10
MARYLAND ENERGY ADMINISTRATION , SHALL COMPLETE ENERG Y MODELING FOR 11
THE STRATEGY AND SCE NARIOS INCLUDED IN THE FORECAST UNDER § 7–1203 OF 12
THIS SUBTITLE, AND FOR ANY CHANGES TO THE STRATEGY SET FORTH IN THE 13
FORECAST, THAT: 14
(1) ENABLES COST –BENEFIT ANALYSES OF ELECTRICITY PRICES B Y 15
RESOURCE MIX TYPE ; 16
(2) CONSIDERS THE TIMELI NE FOR COMMERCIALIZA TION OF ENERGY 17
TECHNOLOGIES AND WHE N THOSE TECHNOLOGIES MAY BECOME COST –EFFECTIVE; 18
(3) PROVIDES LOCATIONAL VALUE PLANNING ; 19
(4) HAS THE ABILITY TO R UN POLICY SCENARIOS ANNUALLY IN 20
ORDER TO PROVIDE EFF ECTIVE FEEDBACK TO T HE GENERAL ASSEMBLY; 21
(5) CONSIDERS WHETHER TH E TRANSITION TO DIST RIBUTED 22
RENEWABLE ENERGY IS DELIVERING SUFFICIEN T ELECTRIC DISTRIBUT ION SYSTEM 23
RELIABILITY OR WHETH ER THERE ARE VULNERA BILITIES THAT NEED T O BE 24
ADDRESSED; 25
(6) STRENGTHENS THE DIVE RSITY, SUSTAINABILITY , AND 26
RESILIENCE OF THE EL ECTRIC TRANSMISSION SYSTEM; 27
(7) ENHANCES THE ELECTRI C DISTRIBUTION SYSTE M AND 28
DEMAND–SIDE MANAGEMENT ; AND 29
(8) MAY BE UPDATED ANNUA LLY BASED ON STRATEG IES, POLICY 30
DECISIONS, AND PERIODIC REASSES SMENTS OF THE STATE’S ENERGY PORTFOLIO 31 SENATE BILL 909 7
TO REMAIN UP –TO–DATE WITH THE EVOLUT ION OF ENERGY GENERATION AND 1
TRANSMISSION . 2
(B) THE OFFICE SHALL PROVIDE A 45–DAY PERIOD FOR PUBLI C COMMENT 3
ON ANY MODELING COMP LETED UNDER THIS SEC TION. 4
7–1205. 5
ON OR BEFORE SEPTEMBER 1, 2027, AND EVERY 2 YEARS THEREAFTER , THE 6
OFFICE SHALL SUBMIT T O THE GOVERNOR AND , IN ACCORDANCE WITH § 2–1257 OF 7
THE STATE GOVERNMENT ARTICLE, THE GENERAL ASSEMBLY A REPORT ON : 8
(1) THE STATUS OF THE FORECAST DEVELOPED UN DER § 7–1203 OF 9
THIS SUBTITLE AND AN Y CHANGES TO THE STR ATEGY SET FORTH IN T HE FORECAST; 10
AND 11
(2) (I) ANY ENERGY MODELING COMPLETED UNDER § 7–1204 OF 12
THIS SUBTITLE IN THE IMMEDIATELY PRECEDIN G 2–YEAR PERIOD; AND 13
(II) ANY PUBLIC COMMENTS SUBMITTED IN RELATI ON TO THE 14
MODELING. 15
7–1206. 16
(A) ON OR BEFORE DECEMBER 1, 2025, THE COMMISSION, IN 17
CONSULTATION WITH TH E OFFICE, SHALL ADOPT REGULATIONS REQUIRING EACH 18
ELECTRIC COMPANY TO DEVELOP AN INTEGRATED RESOURCE PLAN TO: 19
(1) FACILITATE ACHIEVING THE STATE’S GREENHOUSE GAS 20
EMISSIONS REDUCTIONS GOALS; 21
(2) FULFILL THE COMPANY ’S OBLIGATION TO CHAR GE JUST AND 22
REASONABLE RATES ; 23
(3) MINIMIZE OR MITIGATE IMPACTS ON RATEPAYER S IN THE STATE; 24
(4) ENSURE BOTH SHORT –TERM AND LONG –TERM ELECTRIC 25
DISTRIBUTION SYSTEM RELIABILITY , INCLUDING MEETING TH E RESOURCE 26
ADEQUACY NEEDS OF TH E STATE; 27
(5) STRENGTHEN THE DIVERSITY, SUSTAINABILITY , AND RESILIENCE 28
OF THE ELECTRIC TRANSMISSION SYSTEM; 29
8 SENATE BILL 909
(6) ENHANCE THE ELECTRIC DISTRIBUTION SYSTEM AND 1
DEMAND–SIDE MANAGEMENT ; AND 2
(7) MINIMIZE LOCALIZED A IR POLLUTANTS AND OT HER GREENHOUSE 3
GAS EMISSIONS, WITH PRIORITY INITIA LLY GIVEN TO UNDERSERVED COMMUNIT IES 4
OR OVERBURDENED COMM UNITIES AS DEFINED I N § 1–701 OF THE ENVIRONMENT 5
ARTICLE. 6
(B) (1) ON OR BEFORE JULY 1, 2026, EACH ELECTRIC COMPANY SHALL 7
SUBMIT TO THE COMMISSION THE INTEGRATED RESOURCE PLAN REQUIRED UNDER 8
THIS SECTION. 9
(2) ON OR BEFORE JULY 1, 2031, AND EVERY 5 YEARS THEREAFTER , 10
EACH ELECTRIC COMPAN Y SHALL PROVIDE TO THE COMMISSION AN UPDATE ON 11
THE INTEGRATED RESOURCE PLAN REQUIRED UNDER THIS SECTION. 12
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect July 13
1, 2025. 14