Electricity Transmission and Distribution, Energy Storage, and Maryland Strategic Energy Investment Fund (Lower Bills and Local Power Act of 2026)

EXPLANATION: CAPITALS INDICATE MATTER ADDED TO EXISTING LAW.
[Brackets] indicate matter deleted from existing law.
*hb0897*

HOUSE BILL 897
C5, M5 6lr0336
CF SB 386
By: The Speaker (By Request – Administration) and Delegates Acevero, Allen,
Amprey, Bhandari, Boafo, Boyce, Coley, Ebersole, Edelson, Fennell, Forbes,
Guyton, Harrison, Hill, Holmes, Hornberger, Ivey, D. Jones, Kaufman, Kerr,
Lewis, Moon, Moreno, Odom, Pasteur, Patterson, Phillips, Pruski, Roberts,
Ruff, Simmons, Simpson, Solomon, Spiegel, Taveras, Tayl or, Toles,
Tomlinson, Turner, Watson, White Holland, Wims, Woods, Wu, and Ziegler
Introduced and read first time: February 4, 2026
Assigned to: Environment and Transportation

A BILL ENTITLED

AN ACT concerning 1

Electricity Transmission and Distribution, Energy Storage, and Maryland 2
Strategic Energy Investment Fund 3
(Lower Bills and Local Power Act of 2026) 4

FOR the purpose of requiring an electric company that owns or operates a certain 5
transmission line to par ticipate as a member in a regional transmission 6
organization; requiring a person applying for a certain certificate of public 7
convenience and necessity to include certain information with the application; 8
requiring certain transmission utilities to submit a certain advanced transmission 9
technology implementation report to the Public Service Commission at certain times; 10
authorizing the Commission to develop certain incentives for the deployment and 11
operation of advanced transmission technologies; creating a Solar and Energy 12
Storage Market Stabilization Program in the Maryland Energy Administration; 13
altering the uses of the Maryland Strategic Energy Investment Fund; requiring the 14
Secretary of Transportation to develop certain processes for certain electricity lines 15
and battery energy storage systems to be located within or on certain areas; 16
requiring the Department of Transportation, in consultation with the 17
Administration, the Department of Natural Resources, the Power Plant Research 18
Program, and the Departmen t of Commerce, to conduct a certain study regarding 19
the siting of certain electricity lines and battery energy storage systems in existing 20
rights–of–way; requiring the Commission to approve or deny a certificate of public 21
convenience and necessity for cert ain construction within a certain period of time; 22
requiring certain funds in the Maryland Strategic Energy Investment Fund to be 23
used to provide refunds or credits to residential distribution customers in a certain 24
fiscal year; and generally relating to el ectricity and the Maryland Strategic Energy 25
Investment Fund. 26
2 HOUSE BILL 897

BY repealing and reenacting, with amendments, 1
Article – Public Utilities 2
Section 7–103 and 7–207(b)(3) 3
Annotated Code of Maryland 4
(2025 Replacement Volume and 2025 Supplement) 5

BY repealing and reenacting, without amendments, 6
Article – Public Utilities 7
Section 7–207(b)(4) 8
Annotated Code of Maryland 9
(2025 Replacement Volume and 2025 Supplement) 10

BY adding to 11
Article – Public Utilities 12
Section 7–207(i) and 7–805 13
Annotated Code of Maryland 14
(2025 Replacement Volume and 2025 Supplement) 15

BY repealing and reenacting, with amendments, 16
Article – Public Utilities 17
Section 7–207(i) 18
Annotated Code of Maryland 19
(2025 Replacement Volume and 2025 Supplement) 20
(As enacted by Section 2 of this Act) 21

BY adding to 22
Article – State Government 23
Section 9–2018 and 9–20B–05(f)(14) and (i)(5) 24
Annotated Code of Maryland 25
(2021 Replacement Volume and 2025 Supplement) 26

BY repealing and reenacting, without amendments, 27
Article – State Government 28
Section 9–20B–05(a) and (i)(2) through (4) 29
Annotated Code of Maryland 30
(2021 Replacement Volume and 2025 Supplement) 31

BY repealing and reenacting, with amendments, 32
Article – State Government 33
Section 9–20B–05(f)(13) and (14) and (i)(1) 34
Annotated Code of Maryland 35
(2021 Replacement Volume and 2025 Supplement) 36

BY adding to 37
Article – Transportation 38
Section 8–311 39
HOUSE BILL 897 3

Annotated Code of Maryland 1
(2020 Replacement Volume and 2025 Supplement) 2

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 3
That the Laws of Maryland read as follows: 4

Article – Public Utilities 5

7–103. 6

(a) An electric company incorporated in Maryland may: 7

(1) manufacture, sell, and furnish electric power in any municipal 8
corporation or county of the State; 9

(2) construct a power line to transmit power under, along, on, or over the 10
roadways or public ways of any municipal corporation or county of the State; and 11

(3) connect the power line from the place of supply to any other structure 12
or object. 13

(b) (1) An electric company must have the consent of the governing body of the 14
municipal corporation or county before laying or constructing any power line in accordance 15
with subsection (a) of this section. 16

(2) The governing body of the municipal corporation or county may adopt 17
reasonable regulations and conditions for the laying of a power line, including regulations 18
requiring the electric company to refill and repave any roadway or public way under which 19
the power line is laid. 20

(C) AN ELECTRIC COMPANY T HAT OWNS OR OPERATES A TRANS MISSION 21
LINE THAT IS DESIGNED TO CARRY A VOLTAGE IN EXCESS OF 69,000 VOLTS AND IS 22
LOCATED IN THE STATE SHALL PARTICIPA TE AS A MEMBER IN A REGIONAL 23
TRANSMISSION ORGANIZATION. 24

7–207. 25

(b) (3) (i) Except as provided in paragraph (4) of this subsection, unless a 26
certificate of public convenience and necessity for the construction is first obtained from the 27
Commission, a person may not begin construction of an overhead transmission line that is 28
designed to carry a voltage in excess of 69,000 volts or exercise a right of condemnation 29
with the construction. 30

(ii) For construction related to an existing overhead transmission 31
line, the Commission may waive the requirement in subparagraph (i) of this paragraph for 32
good cause. 33

4 HOUSE BILL 897

(iii) Notwithstanding subparagraph (i) of this paragraph and subject 1
to subparagraph [(iv)] (V) of this paragraph, the Commission may issue a certificate of 2
public convenience and necessity for the construction of an overhead transmission line only 3
if the applicant for the certificate of public convenience and necessity: 4

1. is an electric company; or 5

2. is or, on the start of commercial operation of the overhead 6
transmission line, will be subject to regulation as a public utility by an officer or an agency 7
of the United States. 8

(iv) A PERSON APPLYING FOR A CERTIFICATE OF PUB LIC 9
CONVENIENCE AND NECESSITY FOR THE CONSTRUCTION OF A TRANSMISSION LINE 10
SHALL INCLUDE WITH THE APPLICATION: 11

1. AT LEAST ONE ALTERNA TIVE PROPOSAL THAT USES 12
ADVANCED TRANSMISSION TECHNOLOGIES, AS DEFINED IN § 7–805 OF THIS TITLE, 13
IN WHOLE OR IN PART , TO ADDRESS THE SAME NEED MORE EFFICIENTL Y OR 14
COST–EFFECTIVELY THAN THE PRIMARY PROPOSED PROJECT; AND 15

2. AS DIRECTED BY THE COMMISSION, A DETAILED , 16
WRITTEN EXPLANATION COMPARING THE COST –EFFECTIVENESS, TECHNICAL 17
FEASIBILITY, AND SYSTEM BENEFITS OF EACH ALTERNATIVE PROPOSAL COMPARED 18
WITH THOSE OF THE PRIMARY PROPOSED PROJECT. 19

(V) The Commission may not issue a certificate of public convenience 20
and necessity for the construction of an overhead transmission line in the electric 21
distribution service territory of an electric company to an applicant other than an electric 22
company if: 23

1. the overhead transmission line is to be located sol ely 24
within the electric distribution service territory of that electric company; and 25

2. the cost of the overhead transmission line is to be paid 26
solely by that electric company and its ratepayers. 27

[(v)] (VI) 1. This subparagraph applies to the construction of an 28
overhead transmission line for which a certificate of public convenience and necessity is 29
required under this section. 30

2. On issuance of a certificate of public convenience and 31
necessity for the construction of an overhead transmission line, a person may acquire by 32
condemnation, in accordance with Title 12 of the Real Property Article, any property or 33
right necessary for the construction or maintenance of the transmission line. 34

(4) (i) Except as provided in subparagraph (ii) of this paragraph, for 35
HOUSE BILL 897 5

construction related to an existing overhead transmission line designed to carry a voltage 1
in excess of 69,000 volts, the Commission shall waive the requirement to obtain a certificate 2
of public convenience and necessity if the Commission finds that the construction does not: 3

1. require the person to obtain new real property or 4
additional rights–of–way through eminent domain; or 5

2. require larger or higher structures to accommodate: 6

A. increased voltage; or 7

B. larger conductors. 8

(ii) 1. For construction related to an existing overhead 9
transmission line, including repairs, that is necessary to avoid an imminent safety hazard 10
or reliability risk, a person may undertake the necessary construction. 11

2. Within 30 da ys after construction is completed under 12
subsubparagraph 1 of this subparagraph, a person shall file a report with the Commission 13
describing the work that was completed. 14

7–805. 15

(A) (1) IN THIS SECTION THE F OLLOWING WORDS HAVE THE MEANINGS 16
INDICATED. 17

(2) “ADVANCED POWER FLOW C ONTROL” MEANS TECHNOLOGIES 18
THAT MODULATE CIRCUI T IMPEDANCE OR OTHER ELECTRICAL PROPERTIE S TO 19
REROUTE POWER FLOWS TO TRANSMISSION LINES WITH AVAILABLE CAPACITY. 20

(3) “ADVANCED TRANSMISSION TECHNOLOGY” MEANS: 21

(I) GRID–ENHANCING TECHNOLOGIES; AND 22

(II) HIGH–PERFORMANCE CONDUCTORS. 23

(4) “DYNAMIC LINE RATING ” MEANS A SYSTEM THAT USES 24
REAL–TIME OR FORECAST WEA THER AND OPERATING C ONDITIONS, INCLUDING 25
WIND SPEED AND DIREC TION, TO DETERMINE THE MAX IMUM CAPACITY OF A 26
TRANSMISSION LINE. 27

(5) “GRID–ENHANCING TECHNOLOGY ” MEANS HARDWARE OR 28
SOFTWARE THAT INCREA SES THE CAPACITY , EFFICIENCY, OR RELIABILITY OF 29
EXISTING DISTRIBUTION OR TRANSMISSION LINES, INCLUDING: 30

6 HOUSE BILL 897

(I) DYNAMIC LINE RATINGS; 1

(II) ADVANCED POWER FLOW CONTROL; AND 2

(III) TOPOLOGY OPTIMIZATION. 3

(6) “HIGH PERFORMANCE COND UCTORS” MEANS CONDUCTORS , 4
INCLUDING CARBON FIB ER OR COMPOSITE CORE CONDUCTORS AND 5
SUPERCONDUCTORS, THAT, COMPARED TO TRADITIONAL ALUMINUM–CONDUCTOR 6
STEEL–REINFORCED CONDUCTORS: 7

(I) HAVE A SIMILAR DIAMETER AND WEIGHT; AND 8

(II) 1. HAVE A DIRECT CURREN T ELECTRICAL RESISTA NCE 9
THAT IS AT LEAST 10% LESS; 10

2. INCREASE THE POTENTI AL ENERGY CARRYING 11
CAPACITY BY AT LEAST 75%; OR 12

3. HAVE A COEFFICIENT OF THERMAL EXPANSION THAT 13
IS AT LEAST 30% LESS. 14

(7) “TOPOLOGY OPTIMIZATION” MEANS SOFTWARE THAT IDENTIFIES 15
SWITCHING CONFIGURAT IONS TO REROUTE ELEC TRICITY AND ALLEVIAT E 16
TRANSMISSION CONSTRAINTS. 17

(8) “TRANSMISSION UTILITY” MEANS AN OWNER OR OPERATOR OF A 18
TRANSMISSION LINE THAT IS DESIGNED TO CARRY A VOLTAGE IN EXCESS OF 69,000 19
VOLTS AND IS LOCATED IN THE STATE. 20

(B) ON OR BEFORE JULY 1, 2027, AND JULY 1 EVERY 3 YEARS THEREAFTER, 21
EACH TRANSMISSION UT ILITY SHALL SUBMIT T O THE COMMISSION AN ADVANCED 22
TRANSMISSION TECHNOLOGY IMPLEMENTATION REPORT THAT IS PRE PARED BY A 23
THIRD PARTY SELECTED BY THE COMMISSION. 24

(C) THE REPORT SHALL: 25

(1) EVALUATE THE POTENTI AL USE OF AND INVEST MENT IN 26
ADVANCED TRANSMISSION TECHNOLOGIES BY TH E TRANSMISSION UTILI TY OVER 27
THE NEXT 5 YEARS AND ASSESS HOW THESE TECHNOLOGIES COULD BE DEPLOYED 28
AT ONE OR MORE OF TH E TRANSMISSION UTILI TY’S TRANSMISSION LINES IN THE 29
STATE TO ENHANCE THE SAFETY, RELIABILITY, EFFICIENCY, OR 30
COST–EFFECTIVENESS OF THE DISTRIBUTION OR TRANSMISSION SYSTEM; 31
HOUSE BILL 897 7

(2) EXPLAIN HOW THE DEPL OYMENT OF ADVANCED T RANSMISSION 1
TECHNOLOGIES WOULD ACHIEVE: 2

(I) REDUCED COSTS; 3

(II) INCREASED TRANSMISSION CAPACITY; 4

(III) REDUCED TRANSMISSION CONGESTION; 5

(IV) ENHANCED ADOPTION OF OR REDUCED CURTAILME NT OF 6
RENEWABLE RESOURCES; 7

(V) INCREASED RELIABILITY; AND 8

(VI) INCREASED CAPACITY F OR THE CONNECTION OF NEW 9
GENERATION RESOURCES , FOCUSING ON RESOURCES NEEDED TO MEET THE 10
STATE’S RENEWABLE ENERGY PORTFOLIO STANDARD GOALS; 11

(3) IDENTIFY ADVANCED TRANSMISSION TECHNOLOGIES THAT WERE 12
CONSIDERED BUT NOT S ELECTED WHEN EVALUAT ING THE TRANSMISSION 13
ENHANCEMENTS PLANNED TO MEET IDENTIFIED T RANSMISSION NEEDS FOR THE 14
SUBSEQUENT 5 YEARS AND THE REASON S THOSE ADVANCED TRA NSMISSION 15
TECHNOLOGIES WERE NOT SELECTED; 16

(4) INCLUDE A BENEFIT AN D COST EVALUATION CO MPARING 17
TRADITIONAL TRANSMIS SION INVESTMENTS WIT H ADVANCED TRANSMISS ION 18
TECHNOLOGIES FOR ALL PROJECTS CONSIDERED; AND 19

(5) DESCRIBE THE CURRENT LINE RATING METHODOL OGY USED , 20
INCLUDING ANY RELIANCE ON STATIC RATINGS OR SEASONAL ASSUMPTIONS. 21

(D) THE COMMISSION MAY DEVELO P PERFORMANCE–BASED INCENTIVES 22
FOR THE DEPLOYMENT A ND OPERATION OF ADVA NCED TR ANSMISSION 23
TECHNOLOGIES, INCLUDING: 24

(1) EARNINGS ADJUSTMENT MECHANISMS; 25

(2) ACCELERATED COST RECOVERY; AND 26

(3) SHARED SAVINGS MECHANISMS. 27

Article – State Government 28

8 HOUSE BILL 897

9–2018. 1

(A) IN THIS SECTION , “PROGRAM” MEANS THE SOLAR AND ENERGY 2
STORAGE MARKET STABILIZATION PROGRAM. 3

(B) THERE IS A SOLAR AND ENERGY STORAGE MARKET STABILIZATION 4
PROGRAM IN THE ADMINISTRATION. 5

(C) THE PURPOSE OF THE PROGRAM IS TO PROVIDE FINANCIAL 6
ASSISTANCE IN THE FO RM OF LOW –INTEREST AND ZERO –INTEREST LOANS OR 7
GRANTS TO STABILIZE AND BACKFI LL INVESTMENT GAPS F OR CLEAN ENERGY 8
PROJECTS THAT FACE F INANCIAL UNCERTAINTY AS THE RESULT OF THE LOSS OF 9
FEDERAL TAX INCENTIVES. 10

(D) THE ADMINISTRATION SHALL: 11

(1) COLLABORATE WITH THE APPROPRIATE UNITS OF STATE 12
GOVERNMENT IN THE DEVELOPMENT OF CRITERIA BY WHICH PROJECTS SHALL BE 13
EVALUATED UNDER THE PROGRAM; 14

(2) ISSUE A REQUEST FOR INFORMATION AND COND UCT OTHER 15
OUTREACH AS NEEDED TO ASSIST IN THE DESIGN OF THE PROGRAM; 16

(3) ESTABLISH A PROCESS BY WHICH PROJECTS MA Y APPLY FOR 17
FUNDING UNDER THE PROGRAM; 18

(4) ESTABLISH TERMS AND CONDITIONS FOR LOANS AND GRANTS 19
MADE UNDER THE PROGRAM; AND 20

(5) ON OR BEFORE DECEMBER 1, 2026, PUBLISH THE CRITERIA FOR 21
THE PROGRAM ON THE ADMINISTRATION’S WEBSITE AND INVITE APPLICATIONS 22
FOR THE PROGRAM. 23

(E) THE PROGRAM: 24

(1) SHALL PRIORITIZE PROJECTS THAT ARE THE MOST PREPARED TO 25
BEGIN CONSTRUCTION, ALSO KNOWN AS SHOVEL–READY PROJECTS; 26

(2) SHALL BE A PERFORMANCE–BASED INCENTIVE DETERMINED BY A 27
CLOSED BID SYSTEM IN WHICH THE PROJECTS THAT BID THE LOWEST DOLLAR PER 28
MEGAWATT OF CAPACITY ARE PROVIDED LOANS OR GRANTS FROM THE PROGRAM; 29

(3) MAY BE SEGMENTED TO INCENTIVIZE THE VARI OUS MARKET 30
HOUSE BILL 897 9

SUBSETS OF SOLAR DEVELOPMENT, INCLUDING: 1

(I) COMMUNITY SOLAR PROJECTS; 2

(II) UTILITY SCALE PROJECTS, AS DEFINED BY THE 3
ADMINISTRATION; AND 4

(III) BROWNFIELD PROJECTS AND PARKING CANOPIES; 5

(4) SHALL PRIORITIZE PRO JECTS THAT ARE EXPEC TED TO BE 6
INTERCONNECTED AND O PERATIONAL WITHIN 3 YEARS AFTER THE DATE THE 7
APPLICATION IS RECEIVED; AND 8

(5) MAY GIVE PREFERENCE TO PROJECTS THAT INC ORPORATE 9
ENERGY STORAGE TECHNOLOGIES. 10

(F) A LOAN OR GRANT PROVIDED UNDER THIS SECTION SHALL BE FUNDED 11
THROUGH: 12

(1) FUNDS TRANSFERRED TO THE PROGRAM FROM THE MARYLAND 13
STRATEGIC ENERGY INVESTMENT FUND; AND 14

(2) ANY OTHER MONEY MADE AVAILABLE TO THE ADMINISTRATION 15
FOR THE PROGRAM. 16

9–20B–05. 17

(a) There is a Maryland Strategic Energy Investment Fund. 18

(f) The Administration shall use the Fund: 19

(13) notwithstanding subsection (g) of this section, to pay costs associated 20
with the Air and Radiation Administration within the Department of the Environment; 21
[and] 22

(14) TO PAY COSTS ASSOCIA TED WITH THE SOLAR AND ENERGY 23
STORAGE MARKET STABILIZATION PROGRAM; AND 24

[(14)] (15) to pay the expenses of the Program. 25

(i) (1) Except as provided in paragraphs (2), (3), [and] (4), AND (5) of this 26
subsection, compliance fees paid under § 7 –705(b) of the Public Utilities Article may be 27
used only to make loans and grants to support the creation of new Tier 1 renewable [energy] 28
sources, AS DEFINED IN § 7–701 OF THE PUBLIC UTILITIES ARTICLE, in the State that 29
10 HOUSE BILL 897

are owned by or directly benefit: 1

(i) low– to moderate–income communities located in a census tract 2
with an average median income at or below 80% of the average median income for the State; 3
or 4

(ii) overburdened or underserved communities, as defined in § 1–701 5
of the Environment Article. 6

(2) Compliance fees paid under § 7 –705(b)(2)(i)2 of the Public Utilities 7
Article shall be accounted for separately within the F und and may be used only to make 8
loans and grants to support the creation of new solar energy sources in the State that are 9
owned by or directly benefit: 10

(i) low– to moderate–income communities located in a census tract 11
with an average median income at or below 80% of the average median income for the State; 12

(ii) overburdened or underserved communities, as defined in § 1–701 13
of the Environment Article; or 14

(iii) households with low to moderate income, as defined in § 9–2016 15
of this title. 16

(3) For fiscal year 2026 only, up to $100,000,000 of compliance fees paid 17
under §§ 7–705(b) and 7–705(b)(2)(i)2 of the Public Utilities Article shall be accounted for 18
separately within the Fund and may be used for solar development on State government 19
property and local government clean energy projects. 20

(4) (i) Subject to subparagraphs (ii), (iii), and (iv) of this paragraph, 21
compliance fees paid under § 7 –705 of the Public Utilities Article may be used to provide 22
grants to electric companies to be refunded or credited to each residential distribution 23
customer based on the customer’s consumption of electricity supply that is subject to the 24
renewable energy portfolio standard. 25

(ii) The refunding or crediting of amounts to residential distribution 26
customers shall be identified on the customer’s bill as a line item identified as a “legislative 27
energy relief refund”. 28

(iii) An electric company awarded a grant under this paragraph: 29

1. may not retain any of the grant funds to cover overhead 30
expenses; and 31

2. shall provide all of the grant funds to residential 32
distribution customers. 33

(iv) The process under subparagraphs (i) and (ii) of this paragraph 34
HOUSE BILL 897 11

related to the refunding or crediting of amounts to residential distribution customers shall 1
be directed and overseen by the Commission. 2

(5) FOR FISCAL YEARS 2027 THROUGH 2031, COMPLIANCE FEES PAID 3
UNDER § 7–705 OF THE PUBLIC UTILITIES ARTICLE AND DEPOSITED INTO T HE 4
FUND MAY BE USED FOR GRAN TS OR LOANS TO SUPPO RT THE CREATION OF N EW 5
TIER 1 RENEWABLE SOURCES, AS DEFINED IN § 7–701 OF THE PUBLIC UTILITIES 6
ARTICLE, IN THE STATE. 7

Article – Transportation 8

8–311. 9

(A) THE SECRETARY SHALL DEVELOP: 10

(1) PROCESSES, INCLUDING A MODEL LE ASING FRAMEWORK AND 11
SAFETY GUIDELINES, FOR ELECTRIC TRANSMISSION OR DISTRIBUTION LINES AND 12
BATTERY ENERGY STORA GE SYSTEMS TO BE LOC ATED WITHIN EXISTING 13
RIGHTS–OF–WAY ALONG STATE AND INTERSTATE HIGHWAYS OR ON OTHER 14
PROPERTY UNDER THE CONTROL OF THE DEPARTMENT; AND 15

(2) AN EXPEDITED APPROVAL PROCESS FOR THE SITI NG OF 16
ELECTRIC TRANSMISSION A ND DISTRIBUTION LINE S AND BATTERY ENERGY 17
STORAGE SYSTEMS WITH IN EXISTING RIGHTS –OF–WAY OR ON OTHER PROP ERTY 18
UNDER THE CONTROL OF THE DEPARTMENT. 19

(B) THE DEPARTMENT, IN CONSULTATION WITH THE MARYLAND ENERGY 20
ADMINISTRATION, THE DEPARTMENT OF NATURAL RESOURCES, THE POWER 21
PLANT RESEARCH PROGRAM, AND THE DEPARTMENT OF COMMERCE SHALL 22
CONDUCT A STUDY TO D ETERMINE WHICH EXIST ING RIGHTS –OF–WAY MAY BE 23
APPROPRIATE FOR THE SITING OF ELECTRIC T RANSMISSION OR DISTR IBUTION 24
LINES AND BATTERY EN ERGY STORAGE SYSTEMS UNDER SUBSECTION (A) OF THIS 25
SECTION. 26

(C) THE SECRETARY MAY APPROVE OR DISAPPROVE PROJECTS SUBMITTED 27
FOR APPROVAL UNDER THIS SECTION. 28

(D) A PROJECT APPROVED UND ER THIS SECTION IS S UBJECT TO THE 29
FOLLOWING CONDITIONS: 30

(1) THE PROJECT SHALL COMPLY WITH FEDERAL LAW; 31

(2) THE OWNER OF THE ELECTRIC TRANSMISSION OR DISTRIBUTION 32
LINE OR BATTERY ENERGY STORAGE SYSTEM BEING INSTALLED SHALL PAY: 33
12 HOUSE BILL 897

(I) THE FAIR MARKET VALUE FOR THE USE AND OCCUPANCY OF 1
THE RIGHT–OF–WAY; AND 2

(II) TO THE STATE ALL ADMINISTRAT IVE COSTS AND OTHER 3
APPLICABLE FEES; 4

(3) THE OWNER OF THE ELECTRIC TRANSMISSION OR DISTRIBUTION 5
LINE BEING INSTALLED: 6

(I) IS RESPONSIBLE FOR AL L INSTALLATION AND 7
MAINTENANCE COSTS; AND 8

(II) SHALL RELOCATE THE OW NER’S TRANSMISSION OR 9
DISTRIBUTION LINES AT THE OWNER’S EXPENSE AND IN AN EXPEDITED MANNER IF 10
RELOCATION IS NEEDED FOR ANY PUBLIC PURPOSE; AND 11

(4) ANY OTHER CONDITIONS SPECIFIED BY THE SECRETARY OR IN 12
REGULATIONS ADOPTED UNDER THIS SECTION. 13

(E) ON OR BEFOR E DECEMBER 1, 2027, THE DEPARTMENT SHALL ADOPT 14
REGULATIONS TO CARRY OUT THIS SECTION. 15

SECTION 2. AND BE IT FURTHER ENACTED, That the Laws of Maryland read 16
as follows: 17

Article – Public Utilities 18

7–207. 19

(I) (1) IN THIS SUBSECTION, “ADVANCED TRANSMISSION TECHNOLOGY” 20
HAS THE MEANING STATED IN § 7–805 OF THIS TITLE. 21

(2) EXCEPT AS PROVIDED IN SUBSECTION (B)(4) OF THIS SECTION , 22
THE COMMISSION SHALL ISSUE AN ORDER APPROVING OR DENYING A CERTIFICATE 23
OF PUBLIC CONVENIENCE AND NECESSITY WITH IN 180 DAYS AFTER RECEIPT OF A 24
COMPLETE APPLICATION FOR CONSTRUCTION TO: 25

(I) REPLACE THE CONDUCTO R, WIRE, OR ASSOCIATED LINE 26
STRUCTURES OF AN EXISTING TRANSMISSION OR DISTRIBUTION LINE; OR 27

(II) INSTALL ADVANCED TRA NSMISSION TECHNOLOGI ES TO 28
EXPAND OR ENHANCE AN EXISTING TRANSMISSION OR DISTRIBUTION LINE. 29

HOUSE BILL 897 13

SECTION 3. AND BE IT FURTHER ENACTED, That the Laws of Maryland read 1
as follows: 2

Article – Public Utilities 3

7–207. 4

(i) (1) In this subsection, “advanced transmission technology” has the 5
meaning stated in § 7–805 of this title. 6

(2) [Except as provided in subsection (b)(4) of this section, the ] THE 7
Commission shall issue an order approving or denying a certificate of public convenience 8
and necessity within 180 days after receipt of a complete application for construction to: 9

(i) replace the conductor, wire, or associated line structures of an 10
existing transmission or distribution line; or 11

(ii) install advanced transmission technologies to expand or enhance 12
an existing transmission or distribution line. 13

SECTION 4. AND BE IT FURTHER ENACTED, That: 14

(a) (1) Notwithstanding any other provision of law, from the alternative 15
compliance fees paid into the Maryland Strategic Energy Investment Fund in accordance 16
with § 7–705 of the Public Utilities Article, a portion shall be used to provide grant awards 17
to electric companies, including electric cooperatives and municipal electric utilities, to be 18
refunded or credited to residential distribution customers for electric service in fiscal year 19
2027 in accordance with subsection (b) of this section. 20

(2) The Governor may transfer by budget amendment up to $100,000,000 21
of the funds described in paragraph (1) of this subsection to the Public Service Commission 22
to be awarded to electric companies, including electr ic cooperatives and municipal electric 23
utilities. 24

(b) The funds described in subsection (a) of this section shall be: 25

(1) distributed in accordance with § 9 –20B–05(i)(4) of the State 26
Government Article; and 27

(2) refunded or credited to residential d istribution customers one time 28
before a peak summer month but not later than October 31, 2026. 29

SECTION 5. AND BE IT FURTHER ENACTED, That, notwithstanding any other 30
provision of law, the Governor may transfer by budget amendment up to $10,000,000 from 31
the Maryland Strategic Energy Investment Fund to fund the study required under § 8–311 32
of the Transportation Article, as enacted by Section 1 of this Act. 33

14 HOUSE BILL 897

SECTION 6. AND BE IT FURTHER ENACTED, That Section 3 of this Act shall take 1
effect on the taking ef fect of the termination provision specified in Section 14 of Chapters 2
625 and 626 of the Acts of the General Assembly of 2025. If that termination provision takes 3
effect, Section 2 of this Act, with no further action required by the General Assembly, shall 4
be abrogated and of no further force and effect. This Act may not be interpreted to have any 5
effect on that termination provision. 6

SECTION 7. AND BE IT FURTHER ENACTED, That, subject to the provisions of 7
Section 6 of this Act, this Act shall take effect July 1, 2026. 8