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EXPLANATION: CAPITALS INDICATE MATTER ADDED TO EXISTING LAW.
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*hb1532*
HOUSE BILL 1532
C5, M5 EMERGENCY BILL (6lr3230)
ENROLLED BILL
— Environment and Transportation/Education, Energy, and the Environment —
Introduced by The Speaker and Delegates Korman and Fraser –Hidalgo,
Fraser–Hidalgo, Allen, Behler, Foley, Guyton, Healey, Holmes, J. Long,
Lewis, Odom, Stein, and Ziegler
Read and Examined by Proofreaders:
_______________________________________________
Proofreader.
_______________________________________________
Proofreader.
Sealed with the Great Seal and presented to the Governor, for his approval this
_______ day of _______________ at ________________________ o’clock, ________M.
______________________________________________
Speaker.
CHAPTER ______
AN ACT concerning 1
Continuing the Next Generation Energy Act 2
Utility RELIEF (Reducing Energy Load Inflation for Everyday Families) Act 3
FOR the purpose of lowering the maximum monthly energy demand that is required for a 4
certain large load customer to qualify for a specific rate schedule; altering the 5
requirements that a certain multiyear rate plan must meet to be eligible for 6
approval; authorizing the Publi c Service Commission to require a public service 7
company to include a certain reconciliation procedure in the company’s multiyear 8
rate plan; altering the program cycle for certain energy efficiency and conservation 9
plans; altering the years for which certa in electricity savings percentages are used 10
to calculate certain greenhouse gas emissions reduction targets in certain years; 11
prohibiting the Commission from approving a certain energy efficiency and 12
conservation plan that includes a certain residential sector subprogram; altering the 13
2 HOUSE BILL 1532
definition of “large capacity energy resource” and “zero –emission credit” for 1
provisions relating to energy solicitation and procurement; requiring the 2
Commission to consider, rather than apply, certain costs when calculating certain 3
impacts for certain nuclear energy generation projects; authorizing, with the 4
approval of the Commission, the increase of certain nuclear energy generation 5
project costs under certain circumstances; requiring the Commission to conduct a 6
certain request for information and a certain request for proposals; requiring the 7
Commission to select a certain third –party administrator by a certain date subject 8
to a certain exception; requiring the Power Plant Research Program, in consultation 9
with the Department of the Environment and the Maryland Energy Administration, 10
to conduct a certain study; and generally relating to electricity rate schedules, rate 11
plans, energy efficiency and conservation plans, and long–term pricing schedules and 12
purchase pricing oblig ations moving the electric universal service program to the 13
Office of Home Energy Programs; altering certain required procedures related to the 14
permitting, inspection, and interconnection of certain residential solar energy 15
systems; altering the uses of th e Environmental Trust Fund; requiring the Public 16
Service Commission, in consultation with the Maryland Energy Administration and 17
the Power Plant Research Program, to develop certain dashboards; requiring certain 18
public service companies to give a certain n otice and certain information to 19
customers; altering certain provisions relating to and establishing certain 20
requirements for large load customers; altering the applicability of certain rate 21
schedules; requiring the owners of certain transmission lines to participate as a 22
member in a regional transmission organization; altering the application process and 23
projects subject to certificate of public convenience and necessity requirements; 24
repealing certain requirements for gas companies to develop and implement certain 25
programs and services relating to energy efficiency, conservation, demand response, 26
beneficial electrification, and greenhouse gas emissions reductions; authorizing and 27
altering the recovery of certain costs by electric companies and gas companie s; 28
altering certain greenhouse gas emissions reduction targets for electric companies 29
and the manner in which electric companies must meet certain reductions; 30
authorizing the use of certain portable solar energy generating systems under 31
certain circumstanc es; altering certain authorized rate structures for electricity 32
supply; altering the administration of certain incentives and rebates; altering the 33
definition of “large capacity energy resource” for provisions relating to certain 34
solicitations; altering fa ctors that the Commission is required to consider when 35
approving a certain nuclear energy generation project; altering the definition of 36
“zero–emission credit” for provisions relating to a certain escrow account; 37
authorizing the Commission to approve an in crease in the total cost of a certain 38
nuclear energy generation project, subject to certain conditions; authorizing the 39
Board of Public Works to waive the inclusion of certain clauses in a certain contract; 40
altering the uses of the Maryland Strategic Energy Investment Fund; requiring the 41
Governor to include in the annual budget bill a certain appropriation to the 42
Maryland Strategic Energy Investment Fund to be credited to certain accounts; 43
requiring the Administration to conduct certain alternative compliance fee auctions; 44
altering the conditions under which the Commission may approve the use of a certain 45
multiyear rate plan; authorizing the Commission to require a public service 46
commission to include certain information in a certain multiyear rate plan; 47
HOUSE BILL 1532 3
prohibiting certain public service companies from recovering certain costs through 1
rates; altering the net energy metering program; requiring the Commission to 2
establish a successor program to the net energy metering program; limiting certain 3
alternative forms of regulating certain services of electric companies; requiring the 4
Commission to conduct certain studies and proceedings; authorizing the Governor to 5
transfer certain funds to the Commission to be refunded or credited to certain electric 6
customers for a certain purpose; requiring the Commission to issue a certain request 7
for information and request for proposals for a certain purpose; requiring the 8
Program, in consultation with the Department of the Environment and the 9
Administration, to conduct a certai n study; altering and adding certain reporting 10
requirements relating to public service companies, transmission congestion, and the 11
status of the Maryland Energy Storage Program; and generally relating to energy 12
policy in the State. transferring the electric universal service program to the Office of 13
Home Energy Programs and requiring the Office to authorize benefits under the 14
program for certain electric customers; establishing the Green and Renewable Energy 15
Efficiency for Nonprofits Loan Program in the Mar yland Clean Energy Center; 16
altering certain required procedures related to the permitting, inspection, and 17
interconnection of certain residential solar energy systems; altering the uses of the 18
Environmental Trust Fund; requiring the Public Service Commissi on to develop 19
certain dashboards; requiring certain public service companies to give certain 20
information to customers under certain circumstances; altering certain provisions 21
relating to and establishing certain requirements for large load customers, including 22
requiring the Commission to establish a large load customer registry, a voluntary 23
clean capacity rating program, and an interconnection process for certain large load 24
customers; requiring the owners of certain transmission lines to participate as a 25
member in a regional transmission organization; altering certain provisions and 26
establishing certain requirements relating to certificates of public convenience and 27
necessity and other approvals to construct certain generating systems; repealing 28
certain requirements for gas companies to develop and implement certain programs 29
and services relating to energy efficiency, conservation, demand response, beneficial 30
electrification, and greenhouse gas emissions reductions; authorizing and altering the 31
recovery of ce rtain costs by electric companies and gas companies; altering certain 32
greenhouse gas emissions reduction targets for electric companies and the manner in 33
which electric companies must meet certain reductions; altering certain provisions 34
relating to community solar energy generating systems; authorizing the use of certain 35
portable solar energy generating systems under certain circumstances; altering 36
certain authorized rate structures for electricity supply; altering the administration 37
of certain incentives a nd rebates; altering the definition of “large capacity energy 38
resource” for provisions relating to certain solicitations; altering factors that the 39
Commission is required to consider when approving a certain nuclear energy 40
generation project; altering the definition of “zero –emission credit” for certain 41
provisions; authorizing the Commission to approve an increase in the total cost of a 42
certain nuclear energy generation project, subject to certain conditions; specifying the 43
first term of the Director of the Strategic Energy Planning Office; prohibiting the 44
construction of a data center in certain development districts in Baltimore City; 45
altering the methods certain units may use for procurement contracts; authorizing the 46
Board of Public Works to waive the inclusion of certain clauses in a certain contract; 47
4 HOUSE BILL 1532
altering certain provisions relating to the Energy Storage System Grant Program; 1
altering the uses of the Maryland Strategic Energy Investment Fund and certain 2
compliance fees paid into the Fund; requiring the Maryland Energy Administration 3
to conduct certain alternative compliance fee auctions; altering the conditions under 4
which the Commission may approve the use of a certain multiyear rate plan; 5
authorizing the Commission to require a public service commission to include certain 6
information in a certain multiyear rate plan; prohibiting certain public service 7
companies from recovering certain costs through rates; altering the net energy 8
metering program; requiring the Commission to approve, as a successor p rogram to 9
the net energy metering program, a framework for a net energy metering program to 10
begin on a certain date; prohibiting the Commission from approving a rate increase 11
that is based on forecast test years until the later of a certain date or complet ion of a 12
certain proceeding; altering certain provisions relating to a procurement solicitation 13
for certain energy storage devices; requiring the Commission to conduct certain 14
studies and proceedings; requiring that certain funds in the Maryland Strategic 15
Energy Investment Fund be used for certain purposes; authorizing the Governor to 16
transfer certain funds to the Administration, the Commission, the Comptroller, the 17
Interagency Commission on School Construction, the Department of Natural 18
Resources, and the Dedicated Purpose Account for certain purposes; authorizing 19
certain committees of the General Assembly to request that the Strategic Energy 20
Planning Office assess certain policy scenarios and submit a certain report; requiring 21
the Commission to prepare recommendations for changes to a certain program cycle; 22
requiring the Commission to issue a certain request for information and request for 23
proposals for a certain purpose; requiring the Power Plant Research Program, in 24
consultation with the Department of the Environment and the Administration, to 25
conduct a certain study; altering or adding certain reporting requirements relating to 26
certain greenhouse gas emissions reductions, public service companies, transmission 27
congestion and constraints, and independent d istribution operators; authorizing the 28
Commission to contract for the service of independent consultants and experts to 29
implement and execute any part of this Act; and generally relating to energy policy in 30
the State. 31
BY repealing and reenacting, with amendments, 32
Article – Public Utilities 33
Section 4–212(c), 4–213, 7–222(c)(5), 7–223(a) and (b)(1) and (4), 7–224(a)(1) and (d), 34
7–225(b) through (d), 7–1201(g), 7–1216(b), and 7–1220 35
Annotated Code of Maryland 36
(2025 Replacement Volume and 2025 Supplement) 37
BY repealing and reenacting, without amendments, 38
Article – Public Utilities 39
Section 7–1201(a) and 7–1216(a) 40
Annotated Code of Maryland 41
(2025 Replacement Volume and 2025 Supplement) 42
BY renumbering 43
Article – Human Services 44
HOUSE BILL 1532 5
Section 5–5A–08 through 5–5A–10 1
to be Section 5–5A–09 through 5–5A–11, respectively 2
Annotated Code of Maryland 3
(2019 Replacement Volume and 2025 Supplement) 4
BY transferring 5
Article – Public Utilities 6
Section 7–512.1 7
Annotated Code of Maryland 8
(2025 Replacement Volume and 2025 Supplement) 9
to be 10
Article – Human Services 11
Section 5–5A–08 12
Annotated Code of Maryland 13
(2019 Replacement Volume and 2025 Supplement) 14
BY repealing and reenacting, with amendments, 15
Article – Housing and Community Development 16
Section 2–102(a)(10) 17
Annotated Code of Maryland 18
(2019 Replacement Volume and 2025 Supplement) 19
BY repealing and reenacting, without amendments, 20
Article – Human Services 21
Section 5–101(a) through (c), 5–5A–02, and 5–5A–03 22
Annotated Code of Maryland 23
(2019 Replacement Volume and 2025 Supplement) 24
BY repealing and reenacting, with amendments, 25
Article – Human Services 26
Section 5–5A–01 27
Annotated Code of Maryland 28
(2019 Replacement Volume and 2025 Supplement) 29
BY repealing and reenacting, with amendments, 30
Article – Human Services 31
Section 5–5A–08 32
Annotated Code of Maryland 33
(2019 Replacement Volume and 2025 Supplement) 34
(As enacted by Section 2 of this Act) 35
BY repealing and reenacting, with amendments, 36
Article – Local Government 37
Section 1–1320 38
Annotated Code of Maryland 39
(2013 Volume and 2025 Supplement) 40
6 HOUSE BILL 1532
BY repealing and reenacting, with amendments, 1
Article – Natural Resources 2
Section 3–302 3
Annotated Code of Maryland 4
(2023 Replacement Volume and 2025 Supplement) 5
BY adding to 6
Article – Public Utilities 7
Section 2–124, 4–203.1, 7–109, 7–207.6, 7–216.1(d), 7–306.4, 7–321, and 7–322 8
Annotated Code of Maryland 9
(2025 Replacement Volume and 2025 Supplement) 10
BY repealing and reenacting, with amendments, 11
Article – Public Utilities 12
Section 4–212, 4–213, 4–504, 7–207(a), (b)(3) and (4), (c), (d), (e), (f), and (h), 7 –208, 13
7–222, 7–223, 7–225, 7–226, 7–227, 7–228, 7–306(d) and (j), 7 –505(b)(2) and 14
(c), 7–510(d)(2) and (3), 7–510.3(o), 7–1006, 7–1007, 7–1201(g), 7–1216(b), and 15
7–1220 16
Annotated Code of Maryland 17
(2025 Replacement Volume and 2025 Supplement) 18
BY repealing and reenacting, without amendments, 19
Article – Public Utilities 20
Section 7 –207(g), 7 –216.1(a)(1) and (5) and (c), 7 –221, 7 –306(a)(1), (4), and (7), 21
7–505(b)(1), 7–1201(a), and 7–1216(a) 22
Annotated Code of Maryland 23
(2025 Replacement Volume and 2025 Supplement) 24
BY repealing and reenacting, with amendments, 25
Article – State Finance and Procurement 26
Section 13–217 27
Annotated Code of Maryland 28
(2021 Replacement Volume and 2025 Supplement) 29
BY repealing and reenacting, without amendments, 30
Article – State Finance and Procurement 31
Section 13–218(a)(2) 32
Annotated Code of Maryland 33
(2021 Replacement Volume and 2025 Supplement) 34
BY adding to 35
Article – State Finance and Procurement 36
Section 13–218(f) 37
Annotated Code of Maryland 38
(2021 Replacement Volume and 2025 Supplement) 39
BY repealing and reenacting, without amendments, 40
HOUSE BILL 1532 7
Article – State Government 1
Section 9–20B–01(a) and (b) and 9–20B–05(a) 2
Annotated Code of Maryland 3
(2021 Replacement Volume and 2025 Supplement) 4
BY repealing and reenacting, with amendments, 5
Article – State Government 6
Section 9–20B–05(f), (g), and (i) 7
Annotated Code of Maryland 8
(2021 Replacement Volume and 2025 Supplement) 9
BY adding to 10
Article – State Government 11
Section 9 –20B–05(n); and 9 –20E–01 and 9 –20E–02 to be under the new subtitle 12
“Subtitle 20E. Alternative Compliance Fee Auctions” 13
Annotated Code of Maryland 14
(2021 Replacement Volume and 2025 Supplement) 15
BY repealing and reenacting, with amendments, 16
Chapter 623 of the Acts of the General Assembly of 2025 17
Section 4 18
BY repealing and reenacting, with amendments, 19
Chapter 624 of the Acts of the General Assembly of 2025 20
Section 4 21
BY renumbering 22
Article – Economic Development 23
Section 10–862 and the part “Part VII. Short Title” 24
to be Section 10–871 and the part “Part VIII. Short Title”, respectively 25
Annotated Code of Maryland 26
(2024 Replacement Volume and 2025 Supplement) 27
BY renumbering 28
Article – Human Services 29
Section 5–5A–08 through 5–5A–10 30
to be Section 5–5A–09 through 5–5A–11, respectively 31
Annotated Code of Maryland 32
(2019 Replacement Volume and 2025 Supplement) 33
BY transferring 34
Article – Public Utilities 35
Section 7–512.1 36
Annotated Code of Maryland 37
(2025 Replacement Volume and 2025 Supplement) 38
to be 39
Article – Human Services 40
8 HOUSE BILL 1532
Section 5–5A–08 1
Annotated Code of Maryland 2
(2019 Replacement Volume and 2025 Supplement) 3
BY repealing and reenacting, with amendments, 4
Article – Economic Development 5
Section 10–826 6
Annotated Code of Maryland 7
(2024 Replacement Volume and 2025 Supplement) 8
BY adding to 9
Article – Economic Development 10
Section 10 –862 through 10 –868 to be under the new part “Part VII. Green and 11
Renewable Energy Efficiency for Nonprofits Loan Program” 12
Annotated Code of Maryland 13
(2024 Replacement Volume and 2025 Supplement) 14
BY adding to 15
Article – Environment 16
Section 2–1209 17
Annotated Code of Maryland 18
(2013 Replacement Volume and 2025 Supplement) 19
BY repealing and reenacting, with amendments, 20
Article – Housing and Community Development 21
Section 2–102(a)(10) 22
Annotated Code of Maryland 23
(2019 Replacement Volume and 2025 Supplement) 24
BY repealing and reenacting, without amendments, 25
Article – Human Services 26
Section 5–101(a) through (c), 5–5A–02, and 5–5A–03 27
Annotated Code of Maryland 28
(2019 Replacement Volume and 2025 Supplement) 29
BY repealing and reenacting, with amendments, 30
Article – Human Services 31
Section 5–5A–01 32
Annotated Code of Maryland 33
(2019 Replacement Volume and 2025 Supplement) 34
BY repealing and reenacting, with amendments, 35
Article – Human Services 36
Section 5–5A–08 37
Annotated Code of Maryland 38
(2019 Replacement Volume and 2025 Supplement) 39
(As enacted by Section 3 of this Act) 40
HOUSE BILL 1532 9
BY repealing and reenacting, with amendments, 1
Article – Local Government 2
Section 1–1320 3
Annotated Code of Maryland 4
(2013 Volume and 2025 Supplement) 5
BY repealing and reenacting, with amendments, 6
Article – Natural Resources 7
Section 3–302 8
Annotated Code of Maryland 9
(2023 Replacement Volume and 2025 Supplement) 10
BY adding to 11
Article – Public Utilities 12
Section 2 –124, 4 –203.1, 7 –109, 7 –207.6, 7 –207.7, 7 –216.1(d), and 7 –229; 7 –232 13
through 7–234 to be under the new part “Part III. Large Load Customers”; and 14
7–306.4 and 7–321 15
Annotated Code of Maryland 16
(2025 Replacement Volume and 2025 Supplement) 17
BY repealing and reenacting, without amendments, 18
Article – Public Utilities 19
Section 3–106, 4–309, 7–207(g), 7–216.1(a)(1) and (5) and (c), 7 –221, 7–306.2(a)(1) 20
and (7) and (d)(1), 7 –505(b)(1), 7–1001(a), (e), and (i), 7 –1005(a), 7–1201(a), 21
and 7–1302(a) 22
Annotated Code of Maryland 23
(2025 Replacement Volume and 2025 Supplement) 24
BY repealing and reenacting, with amendments, 25
Article – Public Utilities 26
Section 4–212, 4–213, 4–504, 7–204, 7–207(a), (b)(3) and (4), (c), (d), (e), (f), and (h), 27
7–208, 7 –222, 7 –223, 7 –225, 7 –226, 7 –227, 7 –228, 7 –306(a), (d), and (j), 28
7–306.2(d)(13), 7–505(b)(2), (c), and (d)(2)(ii)3., 7–510(d)(2) and (3), 7–510.3(o), 29
7–1006, 7–1007, 7–1201(g), 7–1216, 7–1220, 7–1224, 7–1225, 7–1302(b), and 30
7–1304(c) 31
Annotated Code of Maryland 32
(2025 Replacement Volume and 2025 Supplement) 33
BY adding to 34
Article – Real Property 35
Section 14–134 36
Annotated Code of Maryland 37
(2023 Replacement Volume and 2025 Supplement) 38
BY repealing and reenacting, without amendments, 39
Article – State Finance and Procurement 40
10 HOUSE BILL 1532
Section 6–226(a)(2)(i) and (ii) and 13–218(a)(2) 1
Annotated Code of Maryland 2
(2021 Replacement Volume and 2025 Supplement) 3
BY repealing and reenacting, with amendments, 4
Article – State Finance and Procurement 5
Section 6–226(a)(2)(iii)212. and 213., 13–117, and 13–217 6
Annotated Code of Maryland 7
(2021 Replacement Volume and 2025 Supplement) 8
BY adding to 9
Article – State Finance and Procurement 10
Section 6–226(a)(2)(iii)214. and 13–218(f) 11
Annotated Code of Maryland 12
(2021 Replacement Volume and 2025 Supplement) 13
BY repealing and reenacting, without amendments, 14
Article – State Government 15
Section 9–2012(b), (c), and (d), 9–2016(a), (b), and (e), and 9–20B–01(a) and (b) 16
Annotated Code of Maryland 17
(2021 Replacement Volume and 2025 Supplement) 18
BY repealing and reenacting, with amendments, 19
Article – State Government 20
Section 9–2012(e) and (f), 9–2016(f), and 9–20B–05 21
Annotated Code of Maryland 22
(2021 Replacement Volume and 2025 Supplement) 23
BY adding to 24
Article – State Government 25
Section 9 –20E–01 and 9 –20E–02 to be under the new subtitle “Subtitle 20E. 26
Alternative Compliance Fee Auctions” 27
Annotated Code of Maryland 28
(2021 Replacement Volume and 2025 Supplement) 29
BY repealing and reenacting, with amendments, 30
Chapter 7 of the Acts of the General Assembly of the 2025 Special Session 31
Section 2 32
BY repealing and reenacting, with amendments, 33
Chapter 19 of the Acts of the General Assembly of the 2025 Special Session 34
Section 2 35
BY repealing and reenacting, with amendments, 36
Chapter 623 of the Acts of the General Assembly of 2025 37
Section 4 38
HOUSE BILL 1532 11
BY repealing and reenacting, with amendments, 1
Chapter 624 of the Acts of the General Assembly of 2025 2
Section 4 3
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 4
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 5
That Section(s) 10 –862 and the part “Part VII. Short Title” of Article – Economic 6
Development of the Annotated Code of Maryland be renumbered to be Section(s) 10–871 and 7
the part “Part VIII. Short Title”. 8
SECTION 2. AND BE IT FURTHER ENACTED, That Section(s) 5 –5A–08 through 9
5–5A–10 of Article – Human Services of the Annotated Code of Maryland be renumbered to 10
be Section(s) 5–5A–09 through 5–5A–11, respectively. 11
SECTION 3. AND BE IT FURTHER ENACTED, That Section(s) 7 –512.1 of 12
Article – Public Utilities of the Annotated Code of Maryland be transferred to be Section(s) 13
5–5A–08 of Article – Human Services of the Annotated Code of Maryland. 14
SECTION 4. AND BE IT FUR THER ENACTED, That the Laws of Maryland read 15
as follows: 16
Article – Economic Development 17
10–826. 18
(a) On or before December 1 of each year, the Center shall report to the Governor, 19
the Administration, and, in accordance with § 2 –1257 of the State Government Article, the 20
General Assembly. 21
(b) The report shall include: 22
(1) a complete operating and financial statement covering the Center’s 23
operations; 24
(2) a summary of the Center’s activities during the preceding fiscal year; 25
[and] 26
(3) a summary of the Center’s activities specific to clean energy innovation; 27
AND 28
(4) A SUMMARY OF THE CENTER’S ACTIVITIES SPECIFI C TO THE 29
GREEN AND RENEWABLE ENERGY EFFICIENCY FOR NONPROFITS LOAN PROGRAM 30
ESTABLISHED UNDER § 10–863 OF THIS SUBTITLE, INCLUDING: 31
(I) THE TOTAL NUMBER OF LOANS AWARDED; 32
12 HOUSE BILL 1532
(II) THE TOTAL MONETARY VALUE OF THE LOANS AWARDED; 1
(III) THE AVERAGE TERM OF LOANS IN THE LOAN PORTFOLIO; 2
(IV) THE ESTIMATED ANNUAL ENERGY SAVINGS , IN 3
KILOWATT–HOURS, RESULTING FROM MEASURES ASSOCIATED WITH LOANS IN THE 4
LOAN PORTFOLIO; AND 5
(V) THE ESTIMATED REDUCT ION OF GREENHOUSE GA S 6
EMISSIONS, IN METRIC TONS, ASSOCIATED WITH LOANS IN THE LOAN PORTFOLIO. 7
PART VII. GREEN AND RENEWABLE ENERGY EFFICIENCY FOR NONPROFITS LOAN 8
PROGRAM. 9
10–862. 10
(A) IN THIS PART THE FOLLOWING WORDS HAVE THE MEANINGS INDICATED. 11
(B) “BORROWER” MEANS A NONPROFIT ORGANIZATION THAT APPLIES AND 12
QUALIFIES FOR A LOAN UNDER THE PROGRAM. 13
(C) “FUND” MEANS THE GREEN AND RENEWABLE ENERGY EFFICIENCY FOR 14
NONPROFITS LOAN FUND. 15
(D) “NONPROFIT ORGANIZATIO N” MEANS AN ORGANIZATIO N THAT IS 16
EXEMPT FROM FEDERAL INCOME TAX UNDER § 501(C)(3) OF THE INTERNAL 17
REVENUE CODE. 18
(E) “PROGRAM” MEANS THE GREEN AND RENEWABLE ENERGY EFFICIENCY 19
FOR NONPROFITS LOAN PROGRAM. 20
(F) “QUALIFYING ENERGY SYSTEM” MEANS A SYSTEM THAT: 21
(1) GENERATES ELECTRICITY OR USABLE THERMAL ENERGY THAT IS 22
USED TO MEET ON–SITE DEMAND; AND 23
(2) ASSISTS THE STATE IN MEETING THE ENVIRONMENTAL AND 24
GREENHOUSE GAS REDUC TION GOALS UNDER TITLE 2, SUBTITLE 12 OF THE 25
ENVIRONMENT ARTICLE. 26
10–863. 27
HOUSE BILL 1532 13
THERE IS A GREEN AND RENEWABLE ENERGY EFFICIENCY FOR NONPROFITS 1
LOAN PROGRAM IN THE CENTER. 2
10–864. 3
THE PURPOSE OF THE PROGRAM IS TO PROVIDE FINANCIAL ASSISTANCE IN 4
THE FORM OF NO–INTEREST LOANS TO NONPROFIT ORGANIZATIONS FOR: 5
(1) THE PLANNING, PURCHASE, AND INSTALLATION OF QUALIFYING 6
ENERGY SYSTEMS IN THE STATE; AND 7
(2) ACTIONS THAT IMPROVE ENERGY EFFICIENCY , SUCH AS 8
REPAIRING OR REPLACI NG WINDOWS , DOORS, AND HEATING , VENTILATION, AND 9
AIR–CONDITIONING SYSTEMS AND OTHER SIMILAR IMPROVEMENTS. 10
10–865. 11
THE CENTER SHALL: 12
(1) MANAGE, SUPERVISE, AND ADMINISTER THE PROGRAM; 13
(2) ADOPT REGULATIONS TO ENSURE THAT LOANS PR OVIDED TO 14
NONPROFIT ORGANIZATIONS CARRY OUT THE PURPOSE OF THE PROGRAM; AND 15
(3) ATTACH TO ANY LOAN SPECIFIC TERMS THAT ARE CONSIDERED 16
NECESSARY TO ENSURE THAT THE PURPOSE OF THE PROGRAM IS FULFILLED. 17
10–866. 18
(A) (1) A BORROWER MUST FILE AN APPLICATION WITH THE CENTER TO 19
RECEIVE A LOAN UNDER THE PROGRAM. 20
(2) THE APPLICATION MUST BE SIGNED BY THE CHIEF OPERATING 21
OFFICER OR AN AUTHORIZED OFFICER OF THE NONPROFIT ORGANIZATION. 22
(B) THE APPLICATION MUST CONTAIN ANY INFORMAT ION THE CENTER 23
DETERMINES IS NECESSARY, INCLUDING: 24
(1) THE PROJECTED COST O F THE QUALIFYING ENE RGY SYSTEM , 25
ENERGY EFFICIENCY A CTION, OR TECHNICAL ASSISTANCE BEING FINANCED 26
THROUGH THE LOAN; 27
14 HOUSE BILL 1532
(2) THE LOCATION OF THE PROPERTY WHERE THE Q UALIFYING 1
ENERGY SYSTEM WILL B E INSTALLED OR AN EN ERGY EFFICIENCY ACTI ON WILL 2
OCCUR AND WHETHER THE PROPERTY IS OWNED OR LEASED BY THE APPLICANT; 3
(3) (I) EVIDENCE THAT THE BORROWER: 4
1. IS CURRENT ON ITS REGISTRATION STATUS WITH THE 5
SECRETARY OF STATE AT THE TIME THE BORROWER SUBMITS THE APPLICATION; OR 6
2. IS AN EXEMPT ORGANI ZATION THAT IS COMPL YING 7
WITH ANY FILING REQU IREMENTS OF THE SECRETARY OF STATE RELATED TO 8
EXEMPT ORGANIZATIONS; OR 9
(II) CERTIFICATION THAT THE BORROWER IS NOT REQUIRED TO 10
REGISTER OR FILE AS AN EXEMPT ORGANIZATION WITH THE SECRETARY OF STATE 11
BECAUSE THE BORROWER DOES NOT SOLICIT CHARITABLE CONTRIBUTIONS IN THE 12
STATE; AND 13
(4) ANY ADDITIONAL INFORMATION RELATING TO THE BORROWER OR 14
THE PROPOSED QUALIFY ING ENERGY SYSTEM OR ENERGY EFFICIENCY AC TION 15
BEING FINANCED THROUGH THE LOAN THAT MAY BE REQUIRED BY THE CENTER TO 16
ADMINISTER THE PROGRAM. 17
(C) THE CENTER MAY APPROVE AN APPLICATION FOR A LOAN SPECIFIED IN 18
§ 10–867(A)(1) OR (3) OF THIS SUBTITLE ONLY IF THE APPLICATION DEMONSTRATES 19
THAT THE PROPOSED QUALIFYING ENERGY SYSTEM OR ENERGY EFFICIENCY ACTION 20
IS ESTIMATED, BASED ON PROJECTED ENERGY COSTS, TO GENERATE ENERGY COST 21
SAVINGS OVER THE USE FUL LIFE OF THE SYST EM OR ENERGY EFFICIE NCY ACTION 22
THAT EQUAL OR EXCEED THE TOTAL AMORTIZED COST OF THE LOAN. 23
(D) IN APPROVING AN APPLI CATION, THE CENTER SHALL CONSIDER AND 24
GIVE PRIORITY TO AN APPLICANT THAT HAS AN ANNUAL BUDGET OF $1,000,000 OR 25
LESS. 26
10–867. 27
(A) LOANS FROM THE FUND MAY BE USED FOR: 28
(1) THE PURCHASE AND INS TALLATION OF A QUALI FYING ENERGY 29
SYSTEM, INCLUDING ANY NECESS ARY ANCILLARY MACHIN ERY, EQUIPMENT, OR 30
FURNISHINGS; 31
(2) TECHNICAL ASSISTANCE FOR THE PLANNING AND INSTALLATION 32
OF A QUALIFYING ENERGY SYSTEM; AND 33
HOUSE BILL 1532 15
(3) ACTIONS THAT IMPROVE ENERGY EFFICIENCY , SUCH AS 1
REPAIRING OR REPLACI NG WINDOWS , DOORS, AND HEATING , VENTILATION, AND 2
AIR–CONDITIONING SYSTEMS AND OTHER SIMILAR IMPROVEMENTS. 3
(B) EACH BORROWER FOR A L OAN UNDER SUBSECTION (A)(1) OR (3) OF 4
THIS SECTION SHALL CONTRIBUTE AT LEAST 10% OF THE COST OF THE QUALIFYING 5
ENERGY SYSTEM OR ENERGY EFFICIENCY ACTION. 6
(C) (1) LOANS MADE UNDER THE PROGRAM SHALL BE REPAYABLE BY THE 7
BORROWER IN ACCORDANCE WITH A SCHEDULE SET BY THE CENTER. 8
(2) THE SCHEDULE SET BY T HE CENTER MAY BE ON A DEFERRED 9
PAYMENT BASIS. 10
(D) (1) A BORROWER SHALL PROVIDE ASSURANCES FOR THE REPAYMENT 11
OF A LOAN. 12
(2) THE ASSURANCES: 13
(I) SHALL INCLUDE A PROMISSORY NOTE; AND 14
(II) MAY INCLUDE A PLAN FOR REPAYMENT. 15
(E) LOANS MAY BE MADE IN CONJUNCTION WITH OR IN ADDITION TO 16
FINANCIAL ASSISTANCE PROVIDED THROUGH OTH ER STATE OR FEDERAL 17
PROGRAMS. 18
10–868. 19
(A) THERE IS A GREEN AND RENEWABLE ENERGY EFFICIENCY FOR 20
NONPROFITS LOAN FUND. 21
(B) THE CENTER SHALL ADMINISTER THE FUND. 22
(C) (1) THE FUND IS A SPECIAL , NONLAPSING FUND THAT IS NOT 23
SUBJECT TO § 7–302 OF THE STATE FINANCE AND PROCUREMENT ARTICLE. 24
(2) THE CENTER SHALL HOLD THE FUND SEPARATELY AND ACCOUNT 25
FOR THE FUND. 26
(D) THE FUND CONSISTS OF: 27
(1) MONEY APPROPRIATED IN THE STATE BUDGET TO THE FUND; 28
16 HOUSE BILL 1532
(2) MONEY TRANSFERRED FR OM THE STRATEGIC ENERGY 1
INVESTMENT FUND ESTABLISHED UNDER § 9–20B–05 OF THE STATE GOVERNMENT 2
ARTICLE; 3
(3) MONEY RECEIVED FROM ANY PUBLIC OR PRIVATE SOURCE; 4
(4) INTEREST AND INVESTMENT EARNINGS OF THE FUND; AND 5
(5) REPAYMENTS AND PREPA YMENTS ON LOANS MADE FROM THE 6
FUND. 7
(E) (1) IN FISCAL YEAR 2028, THE GOVERNOR MAY INCLUDE IN THE 8
ANNUAL BUDGET BILL AN APPROPRIATION OF $5,000,000 FOR THE FUND. 9
(2) IN FISCAL YEAR 2029, THE GOVERNOR MAY INCLUDE IN THE 10
ANNUAL BUDGET BILL A N APPROPRIATION EQUA L TO AT LEAST $5,000,000 MINUS 11
THE AMOUNT IN THE FUND AS OF JUNE 30 OF THE IMMEDIATELY PRECEDING FISCAL 12
YEAR. 13
(F) THE FUND MAY BE USED ONLY: 14
(1) TO PAY THE EXPENSES OF THE PROGRAM; AND 15
(2) TO PROVIDE LOANS TO ELIGIBLE BORROWERS U NDER THE 16
PROGRAM. 17
(G) (1) THE CENTER SHALL INVEST A ND REINVEST THE MONE Y OF THE 18
FUND IN THE SAME MANNER AS OTHER STATE MONEY HELD BY THE CENTER MAY BE 19
INVESTED. 20
(2) ANY INVESTMENT EARNINGS OF THE FUND SHALL BE PAID IN TO 21
THE FUND. 22
(3) ANY REPAYMENT ON LOANS MADE FROM THE FUND SHALL BE PAID 23
INTO THE FUND. 24
10–869. RESERVED. 25
10–870. RESERVED. 26
Article – Environment 27
2–1209. 28
HOUSE BILL 1532 17
(A) THE DEPARTMENT SHALL PREP ARE AN ANNUAL REPORT ON THE 1
GREENHOUSE GAS EMISS IONS REDUCTIONS ACHI EVED AS A RESULT OF THE 2
ADOPTION OF ELECTRIC VEHICLES IN THE STATE. 3
(B) ON OR BEFORE DECEMBER 31, 2027, AND EACH DECEMBER 31 4
THEREAFTER, THE DEPARTMENT SHALL SUBM IT THE REPORT REQUIR ED UNDER 5
SUBSECTION (A) OF THIS SECTION, IN ACCORDANCE WITH § 2–1257 OF THE STATE 6
GOVERNMENT ARTICLE, TO THE SENATE COMMITTEE ON EDUCATION, ENERGY, 7
AND THE ENVIRONMENT AND THE HOUSE ENVIRONMENT AND TRANSPORTATION 8
COMMITTEE. 9
Article – Housing and Community Development 10
2–102. 11
(a) The Department shall: 12
(10) develop and implement a weatherization program in accordance with 13
Title 4 of this article and administer the low–income weatherization component of the electric 14
universal service program in accordance with [§ 7–512.1 of the Public Utilities Article ] § 15
5–5A–08 OF THE HUMAN SERVICES ARTICLE. 16
Article – Human Services 17
5–101. 18
(a) In this title the following words have the meanings indicated. 19
(b) “Administration” means the Family Investment Administration. 20
(c) “Department” means the Department of Human Services. 21
5–5A–01. 22
(a) In this subtitle the following words have the meanings indicated. 23
(B) “COMMISSION” MEANS THE PUBLIC SERVICE COMMISSION. 24
[(b)] (C) “Energy emergency” means a lack of fuel or the imminent 25
discontinuation of energy services supplied by a fuel vendor or utility vendor that will 26
endanger health, safety, or welfare. 27
[(c)] (D) “Fuel vendor” means a person that distributes, transports, produces, or 28
offers for sale coal products, fuel oil, kerosene, bottled gas, propane, or wood for fuel use or 29
consumption in the State. 30
18 HOUSE BILL 1532
[(d)] (E) “Office” means the Office of Home Energy Programs. 1
[(e)] (F) “Program” means the Energy Assistance Program. 2
[(f)] (G) “Utility vendor” means a person that distributes, transports, or produces 3
natural gas or electricity for use or consumption in the State. 4
5–5A–02. 5
There is an Office of Home Energy Programs in the Administration. 6
5–5A–03. 7
The purpose of the Office is to carry out this subtitle. 8
5–5A–08. 9
(a) (1) (I) [The Commission shall establish] THERE IS an electric universal 10
service program [to assist electric customers with annual incomes at or below 200% of the 11
federal poverty level] IN THE OFFICE. 12
(II) THE OFFICE SHALL IMPLEMEN T AND ADMINISTER THE 13
ELECTRIC UNIVERSAL SERVICE PROGRAM. 14
(III) THE PURPOSE OF THE EL ECTRIC UNIVERSAL SER VICE 15
PROGRAM IS TO ASSIST ELECTRIC CUSTOMERS WITH ANNUAL INCOMES AT OR BELOW 16
200% OF THE FEDERAL POVERTY LEVEL. 17
(2) The components of the electric universal service program shall include: 18
(i) bill assistance; 19
(ii) low–income residential weatherization; and 20
(iii) the retirement of arrearages for electric customers who have not 21
received assistance in retiring arrearages under the ELECTRIC universal service program 22
within the preceding 5 fiscal years. 23
(3) The Department of Housing and Community Development is responsible 24
for administering the low –income residential weatherization component of the electric 25
universal service program. 26
(4) [(i) The Department of Human Services, through the Office of Home 27
Energy Programs, is responsible for administering the bill ass istance and the arrearage 28
retirement components of the electric universal service program. 29
HOUSE BILL 1532 19
(ii)] (I) The [Department of Human Services] OFFICE may: 1
1. establish minimum and maximum benefits available to an 2
electric customer under the bill assistance and arrearage retirement components; and 3
2. coordinate benefits under the electric universal service 4
program with benefits under the Maryland Energy Assistance Program and other available 5
energy assistance programs. 6
(II) BEGINNING JANUARY 1, 2027, THE OFFICE SHALL 7
AUTHORIZE BENEFITS UNDER THE ELECTRIC UNIVERSAL SERVICE PROGRAM FOR AN 8
ELECTRIC CUSTOMER WH O MEETS THE ELIGIBIL ITY REQUIREMENTS FOR THE 9
PROGRAM BUT WHO DOES NOT MEET THE ELIGIBI LITY REQUIREMENTS FO R THE 10
FEDERAL LOW INCOME HOME ENERGY ASSISTANCE PROGRAM. 11
(III) THE OFFICE SHALL ADOPT RE GULATIONS GOVERNING 12
ELIGIBILITY FOR BENEFITS UNDER THE ELECTRIC UNIVERSAL SERVICE PROGRAM. 13
(5) The [Department of Human Services] OFFICE may, with input from a 14
panel or roundtable of int erested parties, contract to assist in administering the bill 15
assistance and the arrearage retirement components of the electric universal service 16
program. 17
(6) The Commission has oversight responsibility for the bill assistance and 18
the arrearage retirement components of the electric universal service program and any other 19
funds expended under this section. 20
(7) In a specific case, the electric universal service program may waive the 21
income eligibility limitation under paragraph (1) of this subsection i n order to provide 22
assistance to an electric customer who would qualify for a similar waiver under [the 23
Maryland Energy Assistance Program established under Title 5, Subtitle 5A of the Human 24
Services Article] ANOTHER PROGRAM ESTABLISHED UNDER THIS SUBTITLE. 25
(8) (i) If an applicant for bill assistance or arrearage retirement is to be 26
denied due to deficient documentation, the [Department of Human Services] OFFICE shall: 27
1. promptly provide notice of the deficiency to the applicant; 28
and 29
2. afford the applicant ample opportunity of not less than 3 30
months to cure the deficiency. 31
(ii) An electric company may not begin the process to terminate 32
service to an applicant while the applicant is curing a deficiency under this paragraph. 33
20 HOUSE BILL 1532
(9) Notwithstanding paragraph (2)(iii) of this subsection, any assistance 1
received for arrearage retirement by a customer in calendar years 2020 and 2021 may not 2
be counted toward the limitation on the number of times the customer may receive assistance 3
for arrearage retirement. 4
(b) (1) All customers shall contribute to the funding of the electric universal 5
service program through a charge collected by each electric company. 6
(2) The Commission shall determine a fair and equitable allocation for 7
collecting the charges among all customer classes pursuant to subsection (e) of this section. 8
(3) Except as provided in paragraph (4) of this subsection, in accordance 9
with subsection (f)(6) of this section, any unexpended bill assistance and arrearage 10
retirement funds returned to customers under subsection (f) of this section shall be returned 11
to each customer class as a credit in the same proportion that the customer class contributed 12
charges to the fund. 13
(4) The Department [of Human Services] shall expend any unexpended bill 14
assistance and arrearage funds that were collected in fiscal years 2010 through 2017, in 15
excess of the total amount authorized under subsection (e) of this section, for one or more of 16
the following purposes: 17
(i) bill assistance and the retirement of arrearages for customers who 18
are eligible to receive assistance at the time services are provided; 19
(ii) targeted and enhanced low –income residential weatherization 20
designed to remediate households that are considered ineligible to participate in other State 21
energy efficiency programs due to significant health and safety hazards; 22
(iii) an arrearage management program for low–income customers in 23
arrears, including providing credits or matching payments for customers who make timely 24
payments on current bills; or 25
(iv) an arrearage prevention program for low–income customers. 26
(5) An electric company shall recover electric universal service program 27
costs in accordance with § 7–512 of [this subtitle] THE PUBLIC UTILITIES ARTICLE. 28
(6) As determined by the Office [of Home Energy Programs], bill assistance 29
payments to an electric company may be on a monthly basis for each customer. 30
(7) The Commission shall determine the allocation of the electric universal 31
service charge among the generation, transmission, and distribution rate components of all 32
classes. 33
HOUSE BILL 1532 21
(8) The Commission may not assess the electric universal service surcharge 1
on a per kilowatt–hour basis. 2
(c) (1) On or before January 1 of each year, the Commission shall report, 3
subject to § 2–1257 of the State Government Article, to the General Assembly on the electric 4
universal service program, including: 5
(i) subject to subsection (e) of this section, a recommendation on the 6
total amount of funds for the ELECTRIC UNIVERSAL SERVICE program for the following 7
fiscal year based on: 8
1. the level of participation in and the amounts expended on 9
bill assistance and arrearage retirement during the preceding fiscal year; 10
2. how bill assistance and arrearage retirement payments 11
were calculated during the preceding fiscal year; 12
3. the projected needs for the bill assistance and the arrearage 13
retirement components for the next fiscal year; and 14
4. the amount of any bill assistance or arrearage retirement 15
surplus carried over in the electric universal service program fund under subsection (f)(6)(i) 16
of this section; 17
(ii) for bill assistance, the total amount of need, as determined by the 18
Commission, for electric customers with annual incomes at or below 175% of the fede ral 19
poverty level and the basis for this determination; 20
(iii) the amount of funds needed, as determined by the Commission, to 21
retire arrearages for electric customers who have not received assistance in retiring 22
arrearages under the electric universal service program within the preceding 7 fiscal years, 23
and the basis for this determination; 24
(iv) the amount of funds needed, as determined by the Commission, 25
for bill assistance and arrearage retirement, respectively, for customers for whom income 26
limitations may be waived under subsection (a)(7) of this section, and the basis for each 27
determination; 28
(v) the impact on customers’ rates, including the allocation among 29
customer classes, from collecting the total amount recommended by the Commission unde r 30
item (i) of this paragraph; and 31
(vi) the impact of using other federal poverty level benchmarks on 32
costs and the effectiveness of the electric universal service program. 33
22 HOUSE BILL 1532
(2) (i) To assist the Commission in preparing its recommendations 1
under paragraph (1) of this subsection, the Office [of Home Energy Programs] shall report 2
to the Commission each year on: 3
1. the number of customers and the amount of distributions 4
made to fuel customers under the Maryland Energy Assistance Program established u nder 5
[Title 5, Subtitle 5A of the Human Services Article] THIS SUBTITLE, identified by funding 6
source and fuel source; 7
2. the cost of outreach and education materials provided by 8
the Office [of Home Energy Programs] for the electric universal service program; and 9
3. the amount of money that the Department [of Human 10
Services] receives, and is projected to receive, for low–income energy assistance from: 11
A. the Maryland Strategic Energy Investment Fund under § 12
9–20B–05 of the State Government Article; 13
B. with respect to electric customers only, the Maryland 14
Energy Assistance Program; and 15
C. any other federal, State, local, or private source. 16
(ii) The Office [of Home Energy Programs] may satisfy the reporting 17
requirement of subparagraph (i)1 of this paragraph by providing the Commission with a 18
copy of material that contains the required information and that the Office [of Home Energy 19
Programs] submits to the federal government. 20
(iii) The Commission shall include the information provided by the 21
Office [of Home Energy Programs] under subparagraph (i) of this paragraph in its report to 22
the General Assembly under paragraph (1) of this subsection. 23
(3) Subject to subsection (d)(2) of this section, the Commission shall include 24
the information provided by the Department of Housing and Community Development under 25
subsection (d)(1) of this section in its report to the General Assembly under paragraph (1) of 26
this subsection. 27
(4) The electric universal service program shall be subject to audit by the 28
Office of Legislative Audits in accordance with §§ 2 –1220 through 2 –1227 of the State 29
Government Article. 30
(d) (1) On or before January 1 of each year, the Department of Housing and 31
Community Development shall report, in accordance with § 2–1257 of the State Government 32
Article, to the General Assembly on the low–income residential weatherization component of 33
the electric universal service program, including: 34
HOUSE BILL 1532 23
(i) the amount of funds expended during the preceding fiscal year; 1
(ii) the level of participation during the preceding fiscal year, 2
including the number of households served in each area of the State; and 3
(iii) the types of projects, including the average cost per unit, provided 4
to households during the preceding fiscal year. 5
(2) The Department of Housing and Community Development may satisfy 6
the reporting requirement under paragraph (1) of this subsection by requesting the 7
Commission to include the information in the Commission’s report required under 8
subsection (c) of this section and providing the information to the Commission by the date 9
specified by the Commission. 10
(e) The total amount of funds to be collected for the electric universal service 11
program each year shall be $37 million, allocated in the following manner: 12
(1) $27.4 million shall be collected from the industrial and commercial 13
classes; and 14
(2) $9.6 million shall be collected from the residential class. 15
(f) (1) In this subsection, “fund” means the electric universal service program 16
fund. 17
(2) There is an electric universal service program fund. 18
(3) (i) 1. The Comptroller shall collect the revenue collected by 19
electric companies under subsection (b) of this section and place the revenue into the fund. 20
2. The General Assembly may appropriate funds 21
supplemental to the funds collected under subsubparagraph 1 of this subparagraph. 22
(ii) The fund is a continuing, nonlapsing fund that is not subject to § 23
7–302 of the State Finance and Procurement Article. 24
(iii) The purpose of the fund is to assist electric customers as provided 25
in subsection (a)(1) of this section. 26
(4) The Department [of Human Services ], with oversight by the 27
Commission, shall disburse the bill assistance and arrearag e retirement funds in 28
accordance with the provisions of this section. 29
(5) The Comptroller annually shall disburse up to $1,000,000 of 30
low–income residential weatherization funds to the Department of Housing and Community 31
Development, as provided in the State budget. 32
24 HOUSE BILL 1532
(6) (i) At the end of a given fiscal year, any unexpended bill assistance 1
and arrearage retirement funds that were collected for that fiscal year shall be retained in 2
the fund and shall be made available for disbursement through the first 6 months of the next 3
fiscal year to customers who: 4
1. qualify for assistance from the fund during the given fiscal 5
year; 6
2. apply for assistance from the fund before the end of the 7
given fiscal year; and 8
3. remain eligible for assistance at the time services are 9
provided. 10
(ii) If the Commission determines that an extension is needed, the 11
Commission may extend up to an additional 6 months the period in which unexpended bill 12
assistance and arrearage retirement funds may be made available f or disbursement under 13
subparagraph (i) of this paragraph. 14
(iii) 1. Any bill assistance and arrearage retirement funds 15
collected for a given fiscal year that are retained under subparagraph (i) of this paragraph 16
and that remain unexpended at the end of the period allowed under subparagraphs (i) and 17
(ii) of this paragraph shall be returned to each customer class in the proportion that the 18
customer class contributed charges to the fund for the given fiscal year in the form of a credit 19
toward the charge assessed in the following fiscal year. 20
2. If the Commission determines that it is impractical to 21
establish a rate credit for the amount to be returned for a given fiscal year to customers under 22
subsubparagraph 1 of this subparagraph, the Commission: 23
A. may defer the return for not more than 2 additional fiscal 24
years; and 25
B. shall combine the returned amount for that fiscal year with 26
amounts to be returned for the following fiscal years when calculating the rate credit for the 27
final fiscal year of the period. 28
(g) (1) If a party to a merger or acquisition of an electric company or an affiliate 29
of an electric company is required to distribute a credit to the customers in the electric 30
company’s service territory under an agreement with the Commission in connection with the 31
merger or acquisition, the Commission shall consider the adequacy of the current funding 32
of the electric universal service program in providing assistance to customers who qualify 33
under this section. 34
(2) Any funds deposited into the electric universal service program fund as 35
a result of an agreement with the Commission in connection with a merger or acquisition of 36
HOUSE BILL 1532 25
an electric company or an affiliate of an electric company are in addition to, and may not 1
substitute for, funds collected under subsection (e) of this section. 2
(h) (1) An arrearage prevention program under subsection (b)(4)(iv) of this 3
section is intended to prevent or reduce arrearages for low –income customers who have 4
participated in a low–income residential weatherization program. 5
(2) (i) The ARREARAGE PREVENTION program is intended as a 6
one–time grant of money to establish ongoing arrearage prevention activities in the State. 7
(ii) The Department [of Human Services ], in consultation with the 8
Commission, will select for the ARREARAGE PREVENTION program up to two public or 9
private entities as program recipients to administer the program. 10
(iii) At least one ARREARAGE PREVENTION program recipient must 11
primarily serve customers in a major urban area of the State. 12
(3) [A] AN ARREARAGE PREVENTI ON program recipient must 13
demonstrate significant efforts to: 14
(i) secure additional private investment in rooftop solar installation, 15
including the use of ARREARAGE PREVENTION program money for credit enhancement, 16
direct project support, or support for program recipients and customers; and 17
(ii) provide employment in solar installation to unemployed and 18
underemployed individuals, with preference for those who reside in the local jurisdiction 19
where the installations will occur. 20
(4) The ARREARAGE PREVENTION program may include the installation 21
of rooftop solar electricity generation equipment after energy efficiency measures at the 22
residential property have been completed. 23
Article – Local Government 24
1–1320. 25
(a) (1) In this section the following words have the meanings indicated. 26
(2) “Administration” means the Maryland Energy Administration. 27
(3) “Residential energy storage system” means a system, on a residential 28
customer’s side of the meter, used to store electrical energy, or mechanical, chemical, or 29
thermal energy that was once electrical energy, for use as electrical energy at a later date or 30
in a process that offsets electricity use at peak times. 31
26 HOUSE BILL 1532
(4) “Residential solar energy system” means any configuration of solar 1
energy devices that collects and distributes solar energy for the purpose of generating 2
electricity and that has a single residential interconnection with the electrical grid. 3
(5) “RESTRICTION ON USE” HAS THE MEANING STATED IN § 2–126 OF 4
THE REAL PROPERTY ARTICLE. 5
(6) “SOLAR PERMITTING FEE ” MEANS A FEE EQUAL TO THE SUM OF 6
ALL CHARGES IMPOSED BY A COUNTY OR MUNIC IPALITY, INCLUDING CHARGES 7
IMPOSED BY A PROVIDER OF SOLAR PERMITTING SOFTWARE, IN CONNECTION WITH 8
AN APPLICATION FOR A RESIDENTIAL SOLAR ENERGY SYSTEM. 9
[(5)] (7) “Solar permitting software” means[: 10
(i) the most recent version of a web–based platform, developed by the 11
National Renewable Energy Laboratory, that provides a standard portal for receiving and 12
processing residential solar energy system and residential energy storage system permit 13
information; or 14
(ii) automated software that functions to support the tracking and 15
approval of residential building permits for re sidential solar energy systems, residential 16
energy storage systems, main electrical panel upgrades, and main electrical panel devices ] 17
SOFTWARE OR A COMBINATION OF SOFTWARE THAT: 18
(I) AUTOMATES PLAN REVIE W FOR RESIDENTIAL SO LAR 19
ENERGY SYSTEMS TO THE MOST RECENT VERSION OF, AS APPLICABLE: 20
1. THE MARYLAND BUILDING PERFORMANCE 21
STANDARDS; 22
2. THE NATIONAL ELECTRICAL CODE, INCLUDING 23
LEGALLY ADOPTED LOCAL AMENDMENTS; AND 24
3. LOCALLY ADOPTED BUILDING CODES; 25
(II) PRODUCES CODE–COMPLIANT APPROVALS; 26
(III) ISSUES A CODE–COMPLIANT PERMIT; 27
(IV) ACCEPTS ONLINE PAYME NTS FOR ANY PERMITTI NG FEES 28
IMPOSED; 29
(V) ISSUES PERMITS OR PE RMIT REVISIONS IMMED IATELY ON 30
RECEIPT OF ONLINE SUBMISSION OF PERMITTING FEE PAYMENTS, IF APPLICABLE; 31
HOUSE BILL 1532 27
(VI) IS CAPABLE OF PROCES SING A MAJORITY OF R ESIDENTIAL 1
SOLAR ENERGY SYSTEM APPLICATIONS; AND 2
(VII) WHEN A PERMIT IS ISS UED, IMMEDIATELY NOTIFIES A 3
COUNTY OR MUNICIPALITY, AS APPLICABLE, OF THE ISSUANCE OF THE PERMIT AND 4
ALLOWS ACCESS TO APPROVED APPLICATION MATERIALS. 5
(b) (1) This section applies to all counties and municipalities. 6
(2) THIS SECTION DOES NOT APPLY TO A RESTRICTION ON USE ON: 7
(I) HISTORIC PROPERTY THAT IS LISTED IN OR DETERMINED BY 8
THE DIRECTOR OF THE MARYLAND HISTORICAL TRUST TO BE ELIGIBLE FOR 9
INCLUSION IN THE MARYLAND REGISTER OF HISTORIC PROPERTIES; OR 10
(II) PROPERTY LOCATED WIT HIN A DISTRICT DESIG NATED BY 11
THE APPLICABLE LOCAL JURISDICTION TO BE O F HISTORIC SIGNIFICA NCE IN 12
ACCORDANCE WITH § 8–105 OF THE LAND USE ARTICLE. 13
(c) (1) Subject to subsection (d) of this section and except as provided in 14
subsection (e) of this section, on or before August 1, [2025] 2027, each county and 15
municipality shall implement solar permitting software for features supporting the 16
[tracking] APPLICATION SUBMISSION, TRACKING, and approval of residential building 17
permits for: 18
[(1)] (I) residential solar energy systems; 19
[(2)] (II) residential energy storage systems; 20
[(3)] (III) main electrical panel upgrades; and 21
[(4)] (IV) main electrical panel derates. 22
(2) A COUNTY OR MUNICIPALITY SHALL: 23
(I) COMPLETE A REMOTE OR IN–PERSON INSPECTION 24
REQUIRED FOR A PROJE CT PERMITTED BY SOLA R PERMITTING SOFTWAR E WITHIN 25
AN AVERAGE OF 5 BUSINESS DAYS AFTER RECEIVING A PROPERLY COMPLETED 26
REQUEST FOR INSPECTION; AND 27
(II) MAKE PUBLICLY AVAILA BLE ANNUAL DATA FOR THE 28
AVERAGE INSPECTION T IME FOR PROJECTS PER MITTED BY SOLAR PERM ITTING 29
SOFTWARE. 30
28 HOUSE BILL 1532
(3) REVIEW OF A PERMIT AP PLICATION TO INSTALL A RESIDENTIAL 1
SOLAR ENERGY GENERAT ING SYSTEM THAT IS SUBMITTED USING SOLA R 2
PERMITTING SOFTWARE SHALL BE LIMITED TO A DETERMINATION WHET HER THE 3
APPLICATION MEETS ALL HEALTH AND SAFETY REQUIREMENTS UNDER STATE AND 4
LOCAL LAW. 5
(4) A COUNTY OR MUNICIPALI TY SHALL COMPLETE AN Y MANUAL 6
REVIEW OF A SOFTWARE –APPROVED PERMIT WITHIN 5 BUSINESS DAYS AFTER THE 7
PERMIT IS APPROVED. 8
(5) (I) THIS PARAGRAPH APPLIES ONLY TO A RESIDENT IAL SOLAR 9
ENERGY SYSTEM: 10
1. THAT IS OR WILL BE I NSTALLED ON A RESIDE NTIAL 11
ROOFTOP; AND 12
2. WITH A GENERATING CA PACITY OF LESS THAN 20 13
KILOWATTS, AS MEASURED BY THE A LTERNATING CURRENT R ATING OF THE 14
SYSTEM’S INVERTER. 15
(II) EXCEPT AS PROVIDED IN SUBPARAGRAPH (III) OF THIS 16
PARAGRAPH, BEGINNING AUGUST 1, 2027, A COUNTY OR MUNICIPA LITY MAY NOT 17
SET A PERMITTING FEE FOR PERMITS ISSUED B Y SOLAR PERMITTING SOF TWARE 18
THAT EXCEEDS $500 FOR RESIDENTIAL SOLAR ENERGY SYSTEMS. 19
(III) A THIRD–PARTY PAYMENT PROCES SING CHARGE MAY BE 20
ASSESSED FOR PERMITS ISSUED BY SOLAR PERMITTING SOFTWARE IN ADDITION TO 21
THE MAXIMUM PERMITTING FEE UNDER SUBPARAGRAPH (II) OF THIS PARAGRAPH. 22
(6) AN INSPECTOR MAY REVI EW CONSTRUCTION DOCU MENTS THAT 23
ARE PRODUCED BY THE SOLAR PERMITTING SOFTWARE. 24
(d) A county or municipality may not be required to comply with the requirements 25
of subsection (c) of this section if: 26
(1) the county or municipality does not require a permit for: 27
(i) residential solar energy systems; or 28
(ii) residential solar energy systems paired with a residential solar 29
energy storage system; or 30
(2) as determined by the Administration, the a utomated software is no 31
longer updated or maintained. 32
HOUSE BILL 1532 29
(e) The Administration shall delay the initial implementation or suspend the 1
requirements of subsection (c) of this section if there are insufficient State or federal funds 2
available to the Administra tion to provide financial support to a county or municipality 3
implementing solar permitting software [as defined in subsection (a)(5)(i) of this section]. 4
(F) (1) SUBJECT TO PARAGRAPH (2) OF THIS SUBSECTION, AN ELECTRIC 5
COMPANY, OTHER THAN A MUNICIP AL EL ECTRIC UTILITY OR A THIRD–PARTY 6
CONTRACTOR FOR THE E LECTRIC COMPANY , SHALL PERFORM ANY ME TER 7
DISCONNECTION AND RECONNECTION NECESSARY FOR THE INTERCONNECTION OF 8
A RESIDENTIAL SOLAR ENERGY SYSTEM OR RESIDENTIAL ENERGY STORAGE SYSTEM 9
WITHIN 5 BUSINESS DAYS AFTER RECEIVING A PR OPERLY COMPLETED REQ UEST 10
FROM THE OWNER OR INSTALLER OF THE SYSTEM. 11
(2) AN ELECTRIC COMPANY MAY AUTHORIZE QUALIFIED PERSONNEL 12
WHO ARE NOT ASSOCIATED WITH THE ELECTRIC COMPANY TO PERFORM ANY METER 13
DISCONNECTION AND RECONNECTION NECESSARY FOR THE INTERCONNECTION OF 14
A RESIDENTIAL SOLAR ENERGY SYSTEM OR A R ESIDENTIAL ENERGY ST ORAGE 15
SYSTEM. 16
(3) THIS SUBSECTION MAY N OT BE CONSTRUED TO A LTER 17
REQUIREMENTS FOR SMALL GENERATOR FACILITY INTERCONNECTION STANDARDS 18
ESTABLISHED BY THE PUBLIC SERVICE COMMISSION. 19
(G) THE ATTORNEY GENERAL MAY SEEK JUDICIAL ENFORCEMENT AGAINST 20
A COUNTY OR MUNICIPALITY THAT FAILS TO COMPLY WITH THIS SECTION. 21
Article – Natural Resources 22
3–302. 23
(a) (1) There is an Environmental Trust Fund. 24
(2) (i) For the purpose of this subtitle, there is established as an added 25
cost of electricity distributed to retail electric customers within the State, an environmental 26
surcharge per kilowatt hour of electric energy distributed in the State to be paid by any 27
electric company as defined in § 1–101 of the Public Utilities Article. 28
(ii) The Public Service Commission shall impose the surcharge per 29
kilowatt hour of electric energy distributed to retail electric customers within the State and 30
shall authorize the electric c ompanies to add the full amount of the surcharge to retail 31
electric customers’ bills. 32
(iii) To the extent that the surcharge is not collected from retail electric 33
customers, the surcharge shall be deemed a cost of distribution and shall be allowed and 34
computed as such, together with other allowable expenses, for rate–making purposes. 35
30 HOUSE BILL 1532
(iv) Revenues from the surcharge shall be collected by the Comptroller 1
and placed in the Fund. 2
(b) (1) (i) The Secretary, in consultation with the Director of the Mar yland 3
Energy Administration, annually shall coordinate the preparation of a budget required to 4
carry out the provisions of this subtitle. 5
(ii) On approval of the budget by the General Assembly, the Public 6
Service Commission shall establish the amount o f the surcharge per kilowatt hour for the 7
fiscal year beginning July 1, 1972, and for each subsequent fiscal year. 8
(2) Notwithstanding any other provisions of this subtitle, the amount of the 9
surcharge for each account for each retail electric customer may not exceed the lesser of 0.15 10
mill per kilowatt hour or $1,000 per month and the surcharge may not continue beyond 11
fiscal year 2030. 12
(3) (i) The Comptroller shall maintain the method of collection of the 13
surcharge from the companies and the collections shall accrue to the Fund. 14
(ii) The Department shall credit against the amount required to be 15
paid into the Environmental Trust Fund by each electric company an amount equal to 0.75% 16
of the total surcharge attributed to each company on the basis of the electricity distributed 17
within Maryland. 18
(c) (1) (i) The Secretary shall administer the Fund. 19
(ii) The Fund is subject to the provisions for financial management 20
and budgeting established by the Department of Budget and Management. 21
(iii) Any investment earnings of the Fund shall be credited to the 22
General Fund of the State. 23
(iv) The Fund is a special, nonlapsing fund that is not subject to § 24
7–302 of the State Finance and Procurement Article. 25
(v) Except as provided in paragraph (2) of this subsection, the money 26
in the Fund shall be used to carry out the provisions of this subtitle as provided for in the 27
budget. 28
(vi) For the purposes of this subtitle, the Secretary, in consultation 29
with the Director of the Maryland Energy Administra tion, may execute appropriate 30
contracts with any State or federal agency, research organization, industry, or academic 31
institution to conduct the necessary research, construct or acquire, or both, real property 32
including physical predictive models, laborat ories, buildings, land, and appurtenances, or 33
support the technological development of extraordinary systems related to power plants 34
designed to minimize environmental impact. 35
HOUSE BILL 1532 31
(vii) The Secretary may utilize available expertise in any other State 1
unit in the development, execution, and management of contracts and agreements on projects 2
relating to their areas of prime responsibility. 3
(2) Money in the Fund may be used for administrative costs calculated in 4
accordance with § 1–103(b)(2) of this article. 5
(d) [(1) The Maryland Energy Administration shall receive administrative and 6
fiscal support from the Fund for studies relating to the conservation or production of electric 7
energy. 8
(2) Fiscal support to the Maryland Energy Administration from the Fu nd 9
may not exceed $250,000 in any fiscal year. 10
(3)] The Chesapeake Bay Trust shall receive $375,000 from the Fund each 11
fiscal year for the purpose of funding energy conservation projects through the Thomas V. 12
Mike Miller, Jr., Chesapeake Conservation and Climate Corps Program, as provided under 13
§§ 8–1913 through 8–1924 of this article. 14
(e) The Legislative Auditor may conduct post audits of a fiscal and compliance 15
nature of the Fund and of the appropriations and expenditures made for the purposes of this 16
subtitle. The cost of the fiscal portion of the post audit examinations shall be an operating 17
cost of the Fund. 18
Article – Public Utilities 19
2–124. 20
(A) IT IS THE INTENT OF THE GENERAL ASSEMBLY THAT THE COMMISSION: 21
(1) INCORPORATE KEYWORD SEARCH FUNCTIONALITY FOR, AT A 22
MINIMUM, MATERIALS PUBLISHED ON THE COMMISSION’S WEBSITE ON AND AFT ER 23
JULY 1, 2026, INCLUDING KEYWORD SEARCH FUNCTIONALITY WITHIN: 24
(I) THE CASE AND MAILLOG SEARCH; 25
(II) EACH CASE; 26
(III) EACH RULEMAKING; AND 27
(IV) TO THE EXTENT PRACTICABLE, EACH PUBLICATION; AND 28
(2) DEVELOP A LANDING PAGE TEMPLATE FOR MAJOR PROCEEDINGS, 29
INCLUDING RATE CASES , THAT VISUALLY TRACKS THE MAJOR PROCEEDING 30
THROUGH EACH STEP OF THE PROCESS. 31
32 HOUSE BILL 1532
(B) THE COMMISSION SHALL DEVELOP DASHBOARDS TO TRACK PROGRESS 1
TOWARD MAJOR STATE ENERGY PROGRAMS AND GOALS UNDER COMMISSION 2
OVERSIGHT, INCLUDING: 3
(1) NET ENERGY METERING; AND 4
(2) THE STATEWIDE ENERGY STORAGE GOAL UNDER § 7–216.1 OF 5
THIS ARTICLE. 6
(C) AT THE REQUEST OF THE COMMISSION, STATE AGENCIES, INCLUDING 7
THE MARYLAND ENERGY ADMINISTRATION, THE DEPARTMENT OF NATURAL 8
RESOURCES, AND THE DEPARTMENT OF THE ENVIRONMENT, SHALL PROVIDE TO 9
THE COMMISSION ANY PUBLICLY DISCLOSABLE INFORMATION NECESSARY FOR THE 10
COMMISSION TO ACCURATELY TRACK THE PROGRESS AND GOALS I N THE 11
DASHBOARD REQUIRED UNDER SUBSECTION (B) OF THIS SECTION. 12
3–106. 13
(a) If a person timely files, the person may apply to intervene in a proceeding before 14
the Commission. 15
(b) The Commission shall grant leave to intervene unless the Commission 16
concludes that: 17
(1) the parties to the proceeding adequately represent the interest of the 18
person seeking to intervene; or 19
(2) the issues that the person seeks to raise are irrelevant or immaterial. 20
(c) (1) An intervenor has all the rights of a party to a proceeding. 21
(2) In a proceeding before the Commission, an individual who is an 22
intervenor may represent himself or herself. 23
4–203.1. 24
(A) (1) THIS SECTION APPLIES ONLY TO A PUBLIC SER VICE COMPANY 25
THAT IS AN INVESTOR –OWNED ELECTRIC COMPA NY, A GAS COMPANY , OR A 26
COMBINATION GAS AND ELECTRIC COMPANY. 27
(2) THIS SECTION DOES NOT APPLY TO A MUNICIPAL ELECTRIC 28
UTILITY OR AN ELECTRIC COOPERATIVE. 29
HOUSE BILL 1532 33
(B) IN ADDITION TO THE RE QUIREMENTS SET FORTH IN § 4–203 OF THIS 1
SUBTITLE, WHEN A PUBLIC SERVICE COMPANY INITIATES A BASE RATE PROCEEDING 2
OR ANOTHER PROCEEDING THAT MAY LEAD TO A DISTRIBUTION COST INCREASE IN 3
EXCESS OF 3.0% FOR ITS CUSTOMERS SERVED UNDER A RESIDENTIAL TARIFF, THE 4
PUBLIC SERVICE COMPANY SHALL PROVIDE THOSE CUSTOMERS, THROUGH LINKS ON 5
PHYSICAL OR DIGITAL CUSTOMER BILLS, LINKS IN SEPARATE E–MAILS, OR LINKS IN 6
ANY OTHER FORM OF CO MMUNICATION DETERMIN ED ACCEPTABLE BY THE 7
COMMISSION, WITH NOTIFICATION THAT: 8
(1) THE PUBLIC SERVICE COMPANY IS INITIATING THE PROCEEDING; 9
AND 10
(2) INFORMATION ABOUT THE PROCEEDING IS OR WILL BE AVAILABLE 11
ON THE COMMISSION’S WEBSITE. 12
(C) A PUBLIC SERVICE COMPA NY SHALL INCLUDE IN EACH RESIDENTIAL 13
CUSTOMER’S BILL AND AUTOMATIC PAYMENT E–MAIL THE FOLLOWING STATEMENT: 14
“THE MARYLAND GENERAL ASSEMBLY ESTABLISHED THE PUBLIC SERVICE 15
COMMISSION TO REGULAT E PUBLIC SERVICE COM PANIES DOING BUSINES S IN 16
MARYLAND, TO ENSURE THEIR ACTI VITIES ARE CONSISTEN T WITH THE PUBLIC 17
INTEREST. FOR INFORMATION ON HO W TO PARTICIPATE IN OR OBSERVE A 18
PROCEEDING BEFORE THE PUBLIC SERVICE COMMISSION, PLEASE VISIT THE 19
PUBLIC SERVICE COMMISSION’S WEBSITE.”. 20
4–212. 21
(a) (1) In this section the following words have the meanings indicated. 22
(2) “Contract capacity” means the amount of monthly peak load 23
requirements: 24
(i) that is mutually agreed to by an electric company and a large load 25
customer for each month remaining in a contract term after the load ramp period has ended; 26
and 27
(ii) for which: 28
1. the electric company agrees to provide all of the components 29
of retail electric service subject to the terms and conditions in its tariffs; and 30
2. the large load customer agrees to purchase service at that 31
load level for the stated term of the contract and under the same terms and conditions as 32
those stated in the contract. 33
34 HOUSE BILL 1532
(3) “Large load customer” [means a commercial or industrial customer for 1
retail electric service that: 2
(i) has or is projected to have an aggregate monthly demand of at 3
least 100 megawatts; and 4
(ii) has or is projected t o have a load factor of over 80%] HAS THE 5
MEANING STATED IN § 7–232 OF THIS ARTICLE. 6
(4) “Load ramp period” means the period of time from commencement of 7
service until a large load customer’s billing calculation is based on the full contract capacity. 8
(b) It is the intent of the General Assembly that residential retail electric customers 9
in the State should not bear the financial risks associated with large load customers 10
interconnecting to the electric system serving the State. 11
(c) (1) (i) On or bef ore September 1, 2026, each investor –owned electric 12
company and each electric cooperative shall submit to the Commission for approval a 13
specific rate schedule for large load customers that accomplishes the intent of subsection (b) 14
of this section. 15
(ii) Each municipal electric utility that receives an application for 16
retail electric service from a large load customer shall submit to the Commission for approval 17
a specific rate schedule for large load customers. 18
(2) (i) Service under a specific rate schedule shall be available to large 19
load customers that will use, within the initial contract term: 20
1. a monthly maximum demand of more than [100] 25 21
megawatts at a single location; or 22
2. an aggregated contract capacity in the electric company’s 23
service territory of more than [100] 25 megawatts. 24
(ii) Except as provided in subparagraph (iii) of this paragraph, large 25
load customers that qualify for a specific rate schedule after the effective date of that 26
schedule: 27
1. shall take service under the specific rate schedule; and 28
2. may not be allowed to take service under any other existing 29
schedule. 30
(iii) A specific rate schedule does not apply to the facility of an existing 31
large load customer that has signed a service agreement bef ore the effective date of the 32
schedule if: 33
HOUSE BILL 1532 35
1. the large load customer’s existing load does not expand by 1
more than 25 megawatts at that facility under the existing service agreement; or 2
2. the large load customer does not sign a new service 3
agreement to expand the facility’s load by more than 25 megawatts above the contract 4
capacity of the existing service agreement. 5
(d) In making a determination on whether to approve a specific rate schedule 6
submitted under subsection (c) of this section, the Commission shall consider whether the 7
rate schedule: 8
(1) requires a large load customer to cover the just and reasonable costs 9
associated with any electric transmission or distribution system buildout required to: 10
(i) interconnect the large load customer to the electric system serving 11
the State; or 12
(ii) serve the large load customer; 13
(2) protects residential retail electric customers from the financial risks 14
associated with large load customers through the use of: 15
(i) load ramp periods; 16
(ii) minimum billing demand for electric distribution and 17
transmission service that is a high percentage of a large load customer’s contract capacity; 18
(iii) long–term contractual commitments and exit fees; 19
(iv) guarantee or collateral requirements; and 20
(v) penalties and reimbursement requirements for the large load 21
customer if the large load customer delays or cancels a project after the electric company has 22
begun buildout to accommodate the large load customer; [and] 23
(3) ALLOCATES TO THE LARGE LOAD CUSTOMER: 24
(I) ANY INCREASED OR AVOIDED COSTS THAT THE COMMISSION 25
DETERMINES HAVE BEEN CAUSED BY THE LARGE LOAD CUSTOMER, INCLUDING ANY 26
INCREASED OR AVOIDED WHOLESALE COSTS SUCH AS: 27
1. TRANSMISSION COSTS; AND 28
2. CAPACITY COSTS; AND 29
36 HOUSE BILL 1532
(II) NOTWITHSTANDING § 4–503(B) OF THIS TITLE AND AS 1
AUTHORIZED UNDER FED ERAL LAW, ANY DIRECT OR INDIRE CT COSTS , FEES, AND 2
OBLIGATIONS THAT ARE NORMALLY APPLIED TO RETAIL ELECTRIC CUST OMERS IN 3
THE SERVICE TERRITOR Y IN WHICH THE LARGE LOAD CUSTOMER IS LOCA TED OR 4
INTERCONNECTED IF TH E COMMISSION DETERMINES THAT THE DIRECT OR 5
INDIRECT COSTS , FEES, AND OBLIGATIONS SHOU LD BE ATTRIBUTABLE T O THE 6
LARGE LOAD CUSTOMER; AND 7
[(3)] (4) sufficiently ensures that the allocation of costs to large load 8
customers under the schedule does not result in customers that are not large load customers 9
unreasonably subsidizing the costs of large load customers under the schedule. 10
(e) IT IS THE INTENT OF T HE GENERAL ASSEMBLY THAT THE COS TS 11
ALLOCATED TO A LARGE LOAD CUSTOMER IN ACCORDANCE WITH SUBSECTION (D)(3) 12
OF THIS SECTION INCLUDE COSTS THAT ARE INCURRED BY A LARGE LOAD CUSTOMER 13
THAT IS NOT PROVIDIN G 100% OF ITS ELECTRICITY N EEDS AND ARE ASSOCIA TED 14
WITH: 15
(1) CAPACITY PROCUREMENT , INCLUDING BACKSTOP R ELIABILITY 16
PROCUREMENT; AND 17
(2) COSTS ASSOCIATED WIT H THE INTERCONNECTIO N PROCESS , 18
INCLUDING TRANSMISSION COSTS. 19
(F) Before signing a contract for service under a specific rate schedule submitted 20
under subsection (c) of this section, a large load customer under the schedule is required to: 21
(1) submit a request for a load study to determine the necessary contract 22
capacity for the large load customer and pay any applicable fees associated with the study; 23
(2) designate a specific site where the large load customer’s project will be 24
constructed and served by the electric company; 25
(3) own or have the exclusive right to use the land designated in item (2) of 26
this subsection for the project; and 27
(4) meet any other requirements specified under the rate schedule. 28
[(f)] (G) (1) On or before June 1, 2026, the Commission shall adopt 29
regulations to carry out this section. 30
(2) The regulations shall: 31
(i) establish minimum notice requirements and deadlines related to 32
load study requests and contract terminations and adjustments; 33
HOUSE BILL 1532 37
(ii) if considered necessary by the Commission, specify common forms 1
of acceptable collateral to satisfy the requirements of this section; and 2
(iii) establish deadlines related to completion of load studies and 3
payment of fees. 4
(H) (1) BY ORDER OR REGULATION, THE COMMISSION SHALL: 5
(I) PROHIBIT BEHIND –THE–METER ENERGY STORAGE 6
FACILITIES FROM BEIN G STUDIED BY AN ELEC TRIC COMPANY AS AN A DDITIONAL 7
LOAD UNDER A LOAD STUDY CONDUCTED UNDER THIS SECTION; 8
(II) ESTABLISH REQUIREMEN TS AND LIMITATIONS F OR 9
CHARGING AND DISCHAR GING BEHIND–THE–METER ENERGY STORAGE FACILITIES 10
DURING PEAK DEMAND; AND 11
(III) SUBJECT TO PARAGRAPH (2) OF THIS SUBSECTION , 12
ESTABLISH A VOLUNTAR Y LARGE –LOAD INTERRUPTIBLE I NTERCONNECTION 13
PROCESS FOR AN ELECTRIC COMPANY TO PROVIDE V OLUNTARY LARGE –LOAD 14
INTERRUPTIBLE INTERCONNECTION SERVICE. 15
(2) (I) THE VOLUNTARY LARGE –LOAD INTERRUPTIBLE 16
INTERCONNECTION PROC ESS ESTABLISHED UNDE R PARAGRAPH (1)(III) OF THIS 17
SUBSECTION SHALL INCLUDE: 18
1. A LOAD STUDY THAT RE FLECTS THE TERMS OF THE 19
VOLUNTARY INTERRUPTIBLE INTERCONNECTION SERVICE; AND 20
2. METHODS TO ENSURE CO MPLIANCE WITH THE 21
VOLUNTARY LARGE–LOAD INTERRUPTIBLE INTERCONNECTION SERVICE. 22
(II) THE COMPLIANCE METHOD S REQUIRED UNDER 23
SUBPARAGRAPH (I)2 OF THIS PARAGRAPH MAY INCLUDE THE IMPOSITION OF CIVIL 24
PENALTIES FOR FAILUR E TO COMPLY WITH THE VOLUNTARY LARGE –LOAD 25
INTERRUPTIBLE INTERCONNECTION SERVICE. 26
4–309. 27
(a) (1) In this section the following words have the meanings indicated. 28
(2) “Eligible limited–income customer” means a residential customer of a 29
utility company with annual income that: 30
(i) 1. is at or below 175% of the federal poverty level; or 31
38 HOUSE BILL 1532
2. for a customer at least 67 years of age, is at or below 200% 1
of the federal poverty level; or 2
(ii) meets a broader designation approved by the Commission. 3
(3) “Limited–income mechanism” or “mechanism” means a process 4
approved by the Commission under this section to benefit an eligible limited –income 5
customer of a utility company. 6
(4) “Payment plan” means an agreement between an eligible limited–income 7
customer and a utility company to pay an arrearage balance over a specific period of time to 8
avoid disconnection of a utility service. 9
(5) (i) “Utility company” means an electric company, a gas and electric 10
company, or a gas company. 11
(ii) “Utility company” does not include a small rural electric 12
cooperative. 13
(b) The General Assembly finds and declares that the societal benefits of a 14
well–constructed limited–income mechanism to benefit Maryland’s eligible limited –income 15
customers are in the public interest. 16
(c) (1) Subject to the approval of the Commission, a utility company shall adopt 17
a limited–income mechanism to benefit an eligible limited–income customer. 18
(2) Notwithstanding § 4 –503(b) of this title, the mechanism may take the 19
form of a program, tariff provision, credit, rate, rider, or other means to assist an eligible 20
limited–income customer to afford a utility service. 21
(3) A municipal ele ctric utility may adopt a limited –income mechanism 22
subject to the approval of the Commission in the same manner as a utility company in 23
accordance with this section. 24
(d) (1) A utility company that proposes a limited –income mechanism for 25
Commission approval under subsection (c) of this section shall include the proposal in: 26
(i) a separate application for approval of the mechanism; or 27
(ii) only with the prior approval of the Commission, an application 28
for a base rate proceeding, including an alternative rate proceeding, or any other proceeding 29
to alter the utility company’s base rates under the authority of the Commission. 30
(2) A proposal submitted under this section shall allocate the prudently 31
incurred costs of the limited–income mechanism across rate classes. 32
HOUSE BILL 1532 39
(3) The proposal shall include: 1
(i) a detailed description of the proposed mechanism; 2
(ii) the proposed method for allocating the mechanism’s costs across 3
customer classes; 4
(iii) the rationale supporting the utility com pany’s proposal for a 5
mechanism to benefit the eligible limited–income customers in the utility company’s service 6
territory; 7
(iv) a time frame and process for the Commission to review the 8
effectiveness of the mechanism after implementation; and 9
(v) any other information the Commission considers necessary or 10
useful to evaluate the proposal. 11
(e) In evaluating a limited–income mechanism, the Commission shall consider: 12
(1) the degree to which the mechanism promotes affordability of electricity 13
or natural gas for limited–income customers; 14
(2) the public interest in allocating the costs of the mechanism between the 15
utility company’s shareholders and rate payers; 16
(3) the impact on rates, utility operating costs, customer arrearages, 17
customer disconnections, uncollectible costs, and successful completion of payment plans; 18
(4) the ability of a limited –income customer to continue to receive benefits 19
when relocating within the same service territory; 20
(5) coordination of benefits under the mecha nism with any other public or 21
private assistance that may be available to the customer; 22
(6) a minimum level of support or assistance structure to provide equitable 23
availability of limited–income assistance across the State; and 24
(7) any other information the Commission considers appropriate. 25
(f) If an approved limited –income mechanism requires that the Office of Home 26
Energy Programs must certify an eligible limited –income customer’s qualifications to 27
participate in a limited –income mechanism, the Office shall certify an eligible 28
limited–income cu stomer’s qualifications before the customer may participate in the 29
mechanism. 30
(g) An eligible limited–income customer who participates in a mechanism under 31
this section may also be eligible for other assistance programs offered in the State, including 32
40 HOUSE BILL 1532
those offered by a utility company or the Office of Home Energy Programs, the Department 1
of Housing and Community Development, or any other public or private source. 2
7–109. 3
(A) THIS SECTION DOES NOT APPLY TO AN ELECTRIC COOPERATIVE. 4
(B) A PERSON THAT O WNS OR OPERATES A TR ANSMISSION LINE THAT IS 5
DESIGNED TO CARRY A VOLTAGE IN EXCESS OF 69,000 VOLTS AND IS LOCATED IN 6
THE STATE SHALL PARTICIPA TE AS A MEMBER IN A REGIONAL TRANSMISSIO N 7
ORGANIZATION. 8
7–204. 9
(a) IN THIS SECTION , “CONSTRUCTION” HAS THE MEANING STAT ED IN § 10
7–207 OF THIS SUBTITLE. 11
(B) (1) Notwithstanding any other provision of this division, at least 30 days 12
before a hearing, a public service company shall provide to each owner of land and each 13
owner of adjacent land, by certified mail, written notice of intent to run a line or similar 14
transmission device over, on, or under the land. 15
(2) ON RECEIPT OF AN APPL ICATION FOR THE CONS TRUCTION OF A 16
TRANSMISSION LINE UN DER § 7–207 OR § 7–208 OF THIS S UBTITLE, THE 17
COMMISSION SHALL PROV IDE, OR DIRECT THE PERSON APPLYING FOR A 18
CERTIFICATE OF PUBLIC CONVENIENCE AND NECESSITY TO PROVIDE, BY CERTIFIED 19
MAIL, NOTICE OF INTENT TO RUN A LINE OR SIMILAR TRANSMISSION DEVICE OVER, 20
ON, OR UNDER THE LAND TO: 21
(I) EACH OWNER OF LAND THAT ABUTS THE PROPERTY WHERE 22
THE CONSTRUCTION IS PLANNED; AND 23
(II) FOR CONSTRUCTION OF AN OVERHEAD TRANSMISSION LINE, 24
EACH OWNER OF LAND AND EACH OWNER OF ADJACENT LAND. 25
(3) NOTICE PROVIDED UNDER THIS SUBSECTION SHAL L INCLUDE 26
INFORMATION REGARDING: 27
(I) ANY APPLICABLE RIGHT TO FILE AS AN INTERVENOR IN THE 28
PROCEEDING IN ACCORDANCE WITH § 3–106 OF THIS ARTICLE; 29
(II) THE PROCESS FOR FILI NG AS AN INTERVENOR IN THE 30
PROCEEDING, INCLUDING THE METHOD FOR FILING AND THE LOCATION WHERE THE 31
FILING IS REQUIRED TO BE SUBMITTED; AND 32
HOUSE BILL 1532 41
(III) CONTACT INFORMATION FOR THE COMMISSION AND THE 1
WEBSITE WHERE THE RE CIPIENT MAY OBTAIN A DDITIONAL INFORMATIO N 2
REGARDING INTERVENTION RIGHTS AND PROCEDURES. 3
[(2)] (C) The public service company shall determine the property owners 4
from the current tax assessment records of the political subdivision in which the property is 5
located. 6
[(b) Unless the failure is willful or deliberate, the failure of a public service 7
company to provide notice does no t invalidate a public hearing or require that another 8
hearing take place.] 9
(D) IF THE COMMISSION DETERMINES THAT A PERSON DIRECT ED TO 10
PROVIDE NOTICE UNDER SUBSECTION (B)(2) OF THIS SECTION HAS FAILED TO 11
PROVIDE NOTICE IN ACCORDANCE WITH THIS SECTION: 12
(1) IF THE FAILURE IS WI LLFUL OR DELIBERATE , THE PUBLIC 13
HEARING IS INVALIDATED AND ANOTHER HEARING MUST TAKE PLACE; OR 14
(2) IF THE FAILURE IS NO T WILLFUL OR DELIBER ATE, THE 15
COMMISSION MAY REQUIRE ANOTHER HEARING TO TAKE PLACE. 16
7–207. 17
(a) (1) In this section the following words have the meanings indicated. 18
(2) “ADVANCED TRANSMISSION TECHNOLOGIES” MEANS: 19
(I) GRID–ENHANCING TECHNOLOGIES; 20
(II) HIGH PERFORMANCE CONDUCTORS; OR 21
(III) STORAGE USED AS A TRANSMISSION ASSET. 22
(3) “Brownfields site” means: 23
(i) a former industrial or commercial site identified by federal or 24
State laws or regulation as contaminated or polluted; 25
(ii) a closed landfill regulated by the Department of the Environment; 26
or 27
(iii) mined land. 28
[(3)] (4) (i) “Construction” means: 29
42 HOUSE BILL 1532
1. any physical change at a site, including fabrication, 1
erection, installation, or demolition; or 2
2. the entry into a binding agreement or contractual 3
obligation to purchase equipment exclusively for use in construction in the State or to 4
undertake a program of actual construction in the State which cannot be canceled or 5
modified without substantial loss to the owner or operator of the proposed generating station. 6
(ii) “Construction” does not include a change that is nee ded for the 7
temporary use of a site or route for nonutility purposes or for use in securing geological data, 8
including any boring that is necessary to ascertain foundation conditions. 9
[(4)] (5) “Generating station” does not include: 10
(i) a generating unit or facility that: 11
1. is used for the production of electricity; 12
2. has the capacity to produce not more than 2 megawatts of 13
alternating current; and 14
3. is installed with equipment that prevents the flow of 15
electricity to the electric grid during time periods when the electric grid is out of service; 16
(ii) a combination of two or more generating units or facilities that: 17
1. are used for the production of electricity from a solar 18
photovoltaic system or an eligible customer –generator that is subject to the provisions of § 19
7–306 of this title; 20
2. are located on the same property or adjacent properties; 21
3. have the capacity to produce, when calculated cumulatively 22
for all generating units or facilities on the property or a djacent property, more than 2 23
megawatts but not more than 14 megawatts of alternating current; and 24
4. for each individual generating unit or facility: 25
A. has the capacity to produce not more than 2 megawatts of 26
alternating current; 27
B. is separately metered by the electric company; and 28
C. does not export electricity for sale on the wholesale market 29
under an agreement with PJM Interconnection, LLC; 30
HOUSE BILL 1532 43
(iii) a generating unit or facility that: 1
1. is used for the production of electricity for the purpose of: 2
A. onsite emergency backup at a facility when service from the 3
electric company is interrupted due to electric distribution or transmission system failure or 4
when there is equipment failure at a site where critical infrastructure is located; and 5
B. test and maintenance operations necessary to ensure 6
functionality of the generating unit or facility in the event of a service interruption from the 7
electric company due to electric distribution or transmission system failure or when there is 8
equipment failure at a site where critical infrastructure is located; 9
2. is installed with equipment that prevents the flow of 10
electricity to the electric grid; 11
3. is subject to a permit to construct issued by the Department 12
of the Environment; and 13
4. is installed at a facility that is part of critical 14
infrastructure if the facility complies with all applicable regulations regarding noise level 15
and testing hours; or 16
(iv) a combination of two or more generating units or facilities that 17
satisfy item (iii) of this paragraph. 18
[(5)] (6) (I) “GRID–ENHANCING TECHNOLOGY ” MEANS 19
HARDWARE OR SOFTWARE THAT INCREASES THE C APACITY, EFFICIENCY, OR 20
RELIABILITY OF EXISTING TRANSMISSION SYSTEMS. 21
(II) “GRID–ENHANCING TECHNOLOGY” INCLUDES: 22
1. A SYSTEM THAT USES R EAL–TIME OR FORECASTED 23
WEATHER AND OPERATIN G CONDITIONS TO DETE RMINE THE TRANSFER C APACITY 24
OF TRANSMISSION SYSTEMS; 25
2. TECHNOLOGY THAT MODULATES CIRCUIT IMPEDANCE 26
OR OTHER ELECTRICAL PROPERTIES TO REROUT E POWER FLOWS AND RELIEVE 27
CONGESTION; AND 28
3. SOFTWARE THAT IDENTI FIES SWITCHING 29
CONFIGURATIONS TO RE ROUTE ELECTRICITY AN D ALLEVIATE TRANSMIS SION 30
CONSTRAINTS. 31
44 HOUSE BILL 1532
(7) “HIGH PERFORMANCE COND UCTORS” MEANS CONDUCTORS , 1
INCLUDING ADVANCED STEEL CORE CONDUCTORS, CARBON FIBER AND COMPOSITE 2
CORE CONDUCTORS , AND SUPERCONDUCTORS , THAT HAVE A DIRECT C URRENT 3
ELECTRICAL RESISTANCE THAT IS AT LEAST 20% LESS THAN TRADITIONA L ACSR 4
CONDUCTORS OF A SIMILAR DIAMETER WHEN USED O N THE ELECTRIC 5
TRANSMISSION SYSTEM AT THE STANDARD OPER ATING TEMPERATURE OF 20 6
DEGREES CELSIUS. 7
(8) (i) “Mined land” means the surface or subsurface of an area in which 8
surface mining operations will be, are being, or have been conducted. 9
(ii) “Mined land” includes: 10
1. private ways and roads used for mining appurtenant to 11
any surface mining area; 12
2. land excavations; 13
3. workings; and 14
4. overburden. 15
[(6)] (9) “Qualified generator lead line” means [an overhead ] A 16
transmission line [that is ] AND ANY ASSOCIATED A DVANCED TRANSMISSION 17
TECHNOLOGY designed to carry, OR SUPPORT THE CARRYING OF, a voltage in excess of 18
69,000 volts and would allow an out –of–state Tier 1 or Tier 2 renewable source to 19
interconnect with a portion of the electric system in Maryland that is owned by an electric 20
company. 21
(10) “STORAGE USED AS A TRA NSMISSION ASSET” MEANS AN ENERGY 22
STORAGE FACILITY THAT: 23
(I) IS PLANNED , OPERATED, AND RECOV ERS COSTS AS A 24
TRANSMISSION FACILITY THAT PROVIDES ONE OR MORE TRANSMISSION SERVICES, 25
INCLUDING CONGESTION RELIEF, VOLTAGE SUPPORT, POWER FLOW CONTROL , OR 26
STABILITY UNDER ANY PJM TARIFFS AND APPLICABLE FERC ORDERS; 27
(II) EXCEPT AS AUTHORIZED FOR TRANSMI SSION ASSETS , IS 28
NOT DISPATCHED FOR WHOLESALE ENERGY STORAGE; AND 29
(III) IS ELIGIBLE FOR COST RECOVERY IN TRANSMISSION RATES. 30
(11) “TRADITIONAL ACSR CONDUCTORS” MEANS ELECTRICAL CABLES 31
USED IN TRANSMISSION SYSTEMS THAT CONSIST OF A CENTRAL CORE OF STEEL 32
WIRES SURROUNDED BY STRANDS OF ALUMINUM. 33
HOUSE BILL 1532 45
(b) (3) (i) Except as provided in paragraph (4) of this subsection, unless a 1
certificate of public convenience and necessity for the construction is first obtained from the 2
Commission, a person may not begin construction of [an overhead] A transmission line that 3
is designed to carry a voltage in excess of 69,000 volts or exercise a right of co ndemnation 4
with the construction. 5
(ii) For construction related to an existing [overhead] transmission 6
line THAT IS DESIGNED TO CARRY A VOLTAGE IN E XCESS OF 69,000 VOLTS, the 7
Commission may waive the requirement in subparagraph (i) of this paragraph fo r good 8
cause. 9
(III) IN DETERMINING WHETHE R GOOD CAUSE EXISTS UNDER 10
SUBPARAGRAPH (II) OF THIS PARAGRAPH, THE COMMISSION SHALL CONSIDER: 11
1. WHETHER THE PROPOSED CONSTRUCTION: 12
A. DOES NOT REQUIRE THE ACQUISITION OF NEW R EAL 13
PROPERTY OR ADDITIONAL RIGHTS–OF–WAY THROUGH EMINENT DOMAIN; 14
B. DOES NOT REQUIRE LARGER OR HIGHER STRUCTURES 15
TO ACCOMMODATE INCREASED VOLTAGE OR LARGER CONDUCTORS; 16
C. IS LOCATED SUBSTANTI ALLY WITHIN AN EXIST ING 17
TRANSMISSION RIGHT–OF–WAY OR EXISTING TRAN SMISSION CORRIDOR OR 18
CONDUIT SYSTEM; AND 19
D. HAS A PURPOSE INDEPENDENT OF, AND IS NOT A PART 20
OF, ANOTHER PROJECT THAT WOULD OTHERWISE REQU IRE THE ISSUANCE OF A 21
CERTIFICATE OF PUBLIC CONVENIENCE AND NECESSITY; 22
2. WHETHER THE APPLICAN T GAVE DUE 23
CONSIDERATION TO ALTERNATIVES TO THE PROPOSED CONSTRUCTION, INCLUDING 24
THE USE OF ADVANCED TRANSMISSION TECHNOLOGIES; AND 25
3. THE EXTENT TO WHICH: 26
A. THE CONSTRUCTION SUB STANTIALLY CONSISTS OF 27
NEW FACILITIES; 28
B. THE COST OF THE FACI LITIES BEING CONSTRUCTED 29
WILL BE ALLOCATED TO RATEPAYERS; 30
46 HOUSE BILL 1532
C. THE FACILITIES BEING CONSTRUCTED WILL IMP ACT 1
POWER FLOW AND RELIABILITY; AND 2
D. OTHER FACTORS , AS DETERMINED BY THE 3
COMMISSION, SUPPORT GRANTING OR DENYING A WAIVER FOR GOOD CAUSE. 4
(IV) 1. EXCEPT AS PROVIDED IN SUBSUBPARAGRAPH 2 OF 5
THIS SUBPARAGRAPH , THE COMMISSION SHALL ISSU E A WRITTEN DECISION 6
GRANTING OR DENYING A WAIVER UNDER SUBPARAGRAPH (II) OF THIS PARAGRAPH 7
WITHIN 90 DAYS AFTER THE APPLICANT HAS SUBMITTED A WAIVER REQUEST. 8
2. UNLESS OTHERWISE AGREED TO BY THE APPLICANT , 9
THE COMMISSION MAY EXTEND THE PERIOD FOR ISSUI NG A WRITTEN DECISIO N 10
GRANTING OR DENYING A WAIVER UNDER SUBPARAGRAPH (II) OF THIS PARAGRAPH 11
FOR A PERIOD NOT TO EXCEED 60 DAYS IF THE COMMISSION DETERMINES: 12
A. THE APPLICANT HAS FAILED TO PROVIDE SUFFICIENT 13
INFORMATION FOR THE COMMISSION TO MAKE A DETERMINATION; OR 14
B. FURTHER CONSIDERATIO N IS NECESSARY DUE T O 15
MATERIAL IMPACTS TO THE PUBLIC OR RATEPA YERS UNDER SUBSUBPAR AGRAPH 16
(III)3 OF THIS SUBPARAGRAPH. 17
3. WITHIN 30 DAYS AFTER ISSUING A WRITTEN DECISION 18
DENYING A WAIVER UNDER SUBSUBPARAGRAPH 1 OR 2 OF THIS SUBPARAGRAPH, THE 19
COMMISSION SHALL ISSUE A WRITTEN DECISION THAT STATES THE GROU NDS FOR 20
THE DENIAL. 21
(V) AN APPLICANT FOR A CE RTIFICATE OF PUBLIC 22
CONVENIENCE AND NECESSITY FOR THE CONSTRUCTION OF A TRANSMISSION LINE 23
SHALL INCLUDE IN ITS APPLICATION: 24
1. EVIDENCE THAT THE AP PLICANT CONSIDERED , AS 25
PART OF THE APPLICAN T’S INTERNAL PLANNING PROCESS, ANY LOCAL, STATE, OR 26
FEDERAL GOVERNMENT T RANSMISSION PL ANNING PROCESSES AND ANY 27
TRANSMISSION PLANNIN G PROCESSES REQUIRED BY PJM INTERCONNECTION, 28
INCLUDING: 29
A. AN ANALYSIS OF ADVAN CED TRANSMISSION 30
TECHNOLOGIES AND WHETHER THE USE OF THE TECHNOLOGIES WILL ENHANCE THE 31
VALUE OF THE NEW TRA NSMISSION LINE AND THEREFORE LEAD TO IN CREASED 32
RATEPAYER VALUE THROUGH EFFICIENCY AND AVOIDED COSTS; 33
B. ALTERNATIVE ROUTINGS; 34
HOUSE BILL 1532 47
C. TECHNOLOGIES OR MODIFICATIONS TO ONE OR MORE 1
ELECTRIC DISTRIBUTIO N SYSTEMS IN THE STATE THAT ARE OWNED BY THE 2
APPLICANT OR ITS AFF ILIATES THAT COULD AVOID T HE NEED FOR THE 3
TRANSMISSION LINE; 4
D. THE COST TO RATEPAYERS; 5
E. RESOURCE ADEQUACY; AND 6
F. ANY OTHER INFORMATIO N THE COMMISSION 7
CONSIDERS APPROPRIATE; AND 8
2. AN ANALYSIS OF THE T RANSMISSION LINE ROU TE 9
SELECTION, INCLUDING: 10
A. RISKS ASSOCIATED WITH THE COSTS ESTIMATES; 11
B. COST CONTAINMENT EFFORTS; 12
C. CONSTRUCTION SCHEDULE; 13
D. ACQUISITION OF LAND AND RIGHTS–OF–WAY; AND 14
E. THE APPLICANT’S PLAN TO WORK WITH COMMUNITIES 15
AND STAKEHOLDERS ON PROPOSED ROUTES. 16
[(iii)] (VI) Notwithstanding subparagraph (i) of this paragraph and 17
subject to subparagraph [(iv)] (VII) of this paragraph, the Commission may issue a 18
certificate of public convenience and necessity for the construction of [an overhead ] A 19
transmission line only if the applicant for the certificate of public convenience and necessity: 20
1. is an electric company; or 21
2. is or, on the start of commercial operation of the [overhead] 22
transmission line, will be subject to regulation as a public utility by an officer or an agency 23
of the United States. 24
[(iv)] (VII) The Commission may not issue a certificate of public 25
convenience and necessity for the construction of [an overhead] A transmission line in the 26
electric distribution service territory of an electric company to an applicant other than an 27
electric company if: 28
1. the [overhead] transmission line is to be located solely 29
within the electric distribution service territory of that electric company; and 30
48 HOUSE BILL 1532
2. the cost of the [overhead] transmission line is to be paid 1
solely by that electric company and its ratepayers. 2
[(v)] (VIII) 1. This subparagraph applies to the construction of [an 3
overhead] A transmission line for which a certificate of public convenie nce and necessity is 4
required under this section. 5
2. On issuance of a certificate of public convenience and 6
necessity for the construction of [an overhead] A transmission line, a person may acquire by 7
condemnation, in accordance with Title 12 of the Real Property Article, any property or right 8
necessary for the construction or maintenance of the transmission line. 9
(4) (i) [Except as provided in subparagraph (ii) of this paragraph, for 10
construction related to an existing overhead transmission line designed to carry a voltage in 11
excess of 69,000 volts, the Commission shall waive the requirement to obtain a certificate of 12
public convenience and necessity if the Commission finds that the construction does not: 13
1. require the person to obtain new real property or additional 14
rights–of–way through eminent domain; or 15
2. require larger or higher structures to accommodate: 16
A. increased voltage; or 17
B. larger conductors. 18
(ii) 1. For construction related to an existing overhead 19
transmission line, including repairs, that is necessary to avoid an imminent safety hazard 20
or reliability risk, a person may undertake the necessary construction ] A PERSON MA Y 21
COMPLETE CONSTRUCTIO N RELATED TO AN EXIS TING TRANSMISSION LI NE, 22
INCLUDING REPAIRS, IF THE CONSTRUCTION IS NECESSARY TO AVOID AN IMMINENT 23
SAFETY HAZARD OR RELIABILITY RISK. 24
[2.] (II) Within 30 days after construction is completed 25
under [subsubparagraph 1 of this subparagraph ] SUBPARAGRAPH (I) OF THIS 26
PARAGRAPH, a person shall file a report with the Commission describing the work that was 27
completed. 28
(c) (1) On receipt of an application for a certificate of public convenience and 29
necessity under this section, the Commission shall provide notice immediately or require the 30
applicant to provide notice immediately of the application to: 31
(i) the Department of Planning; 32
HOUSE BILL 1532 49
(ii) the governing body, and if applicable the executive, of each county 1
or municipal corporation in which any portion of the generating station, [overhead] 2
transmission line, or qualified generator lead line is proposed to be constructed; 3
(iii) the governing body, and if applicable the executive, of each county 4
or municipal corporation within 1 mile of the proposed location of the generating station, 5
[overhead] transmission line, or qualified generator lead line; 6
(iv) each member of the General Assembly representing any part of a 7
county in which any portion of the generating station, [overhead] transmission line, or 8
qualified generator lead line is proposed to be constructed; 9
(v) each member of the General Assembly representing any part of 10
each county within 1 mile of the proposed location of the generating station, [overhead] 11
transmission line, or qualified generator lead line; 12
(vi) for a proposed [overhead] transmission line, each owner of land 13
and each owner of adjacent land; and 14
(vii) all other interested persons. 15
(2) The Commission, when sending the notice required under paragraph (1) 16
of this subsection, shall forward a copy of the application to: 17
(i) each appropriate State unit and unit of local government for 18
review, evaluation, and comment regarding the significance of the proposal to State, 19
area–wide, and local plans or programs; and 20
(ii) each member of the General Assembly included under paragraph 21
(1)(iv) and (v) of this subsection who requests a copy of the application. 22
(3) On receipt of an application for a certificate of public convenience and 23
necessity under this section, the Commission shall provide notice of the application on the 24
Commission’s social media platforms and website. 25
(d) (1) (i) The Commission shall provide an opportunity for public comment 26
and hold a public hearing on the application for a certificate of public convenience and 27
necessity in each county and municipal corporation in which any portion of the construction 28
of a generating station, [an overhead] A transmission line designed to carry a voltage in 29
excess of 69,000 volts, or a qualified generator lead line is proposed to be located. 30
(ii) The Commission m ay hold the public hearing virtually rather 31
than in person if the Commission provides a comparable opportunity for public comment 32
and participation in the hearing. 33
50 HOUSE BILL 1532
(2) The Commission shall hold the public hearing jointly with the governing 1
body of the county or municipal corporation in which any portion of the construction of the 2
generating station, [overhead] transmission line, or qualified generator lead line is proposed 3
to be located, unless the governing body declines to participate in the hearing. 4
(3) (i) Once in each of the 4 successive weeks immediately before the 5
hearing date, the Commission shall provide weekly notice of the public hearing and an 6
opportunity for public comment: 7
1. by advertisement in a newspaper of general circulation in 8
the county or municipal corporation affected by the application; 9
2. on two types of social media; and 10
3. on the Commission’s website. 11
(ii) Before a public hearing, the Commission shall coordinate with the 12
governing body of the county or municipal corporation in which any portion of the 13
construction of the generating station, [overhead] transmission line, or qualified generator 14
lead line is proposed to be located to identify additional options for providing, in an efficient 15
and cost–effective manner, notice of the public hearing through other types of media that are 16
familiar to the residents of the county or municipal corporation. 17
(4) (i) On the day of a public hearing, an informational sign shall be 18
posted prominently at or near each public entrance of the building in which the public 19
hearing will be held. 20
(ii) The informational sign required under subparagraph (i) of this 21
paragraph shall: 22
1. state the time, room number, and subject of the public 23
hearing; and 24
2. be at least 17 by 22 inches in size. 25
(iii) If the public hearing is conducted virtually rather than in person, 26
the Commission shall provide information on the hearing prominently on the Commission’s 27
website. 28
(5) (i) The Commission shall ensure presentation and recommendations 29
from each interested State unit, and shall allow representatives of each State unit to sit 30
during hearing of all parties. 31
(ii) The Commis sion shall allow each State unit 15 days after the 32
conclusion of the hearing to modify the State unit’s initial recommendations. 33
HOUSE BILL 1532 51
(e) The Commission shall take final action on an application for a certificate of 1
public convenience and necessity only after due consideration of: 2
(1) the recommendation of the governing body of each county or municipal 3
corporation in which any portion of the construction of the generating station, [overhead] 4
transmission line, or qualified generator lead line is proposed to be located; 5
(2) the effect of the generating station, [overhead] transmission line, or 6
qualified generator lead line on: 7
(i) the stability and reliability of the electric system; 8
(ii) economics; 9
(iii) esthetics; 10
(iv) historic sites; 11
(v) WHEN APPLICABLE , aviation safety as determined by the 12
Maryland Aviation Administration and the administrator of the Federal Aviation 13
Administration; 14
(vi) when applicable, air quality and water pollution; and 15
(vii) the availability of means for the required timely disposal of 16
wastes produced by any generating station; 17
(3) the effect of climate change on the generating station, [overhead] 18
transmission line, or qualified generat or lead line based on the best available scientific 19
information recognized by the Intergovernmental Panel on Climate Change; 20
(4) for a generating station: 21
(i) the consistency of the application with the comprehensive plan 22
and zoning of each county or municipal corporation where any portion of the generating 23
station is proposed to be located; 24
(ii) the efforts to resolve any issues presented by a county or municipal 25
corporation where any portion of the generating station is proposed to be located; 26
(iii) the impact of the generating station on the quantity of annual and 27
long–term statewide greenhouse gas emissions, measured in the manner specified in § 28
2–1202 of the Environment Article and based on the best available scientific information 29
recognized by the Intergovernmental Panel on Climate Change; and 30
52 HOUSE BILL 1532
(iv) the consistency of the application with the State’s climate 1
commitments for reducing statewide greenhouse gas emissions, including those specified in 2
Title 2, Subtitle 12 of the Environment Article; and 3
(5) for a solar energy generating station specified under § 7 –218 of this 4
subtitle, whether the owner of a proposed solar energy generating station complies with the 5
site requirements under § 7–218(f) of this subtitle. 6
(f) For the construction of [an overhead] A transmission line, in addition to the 7
considerations listed in subsection (e) of this section, the Commission shall: 8
(1) take final action on an application for a certificate of public convenience 9
and necessity only after due consideration of: 10
(i) the need to meet existing and future demand for electric service; 11
[and] 12
(ii) EVIDENCE THAT ALTERN ATIVES HAVE BEEN CON SIDERED 13
BY THE APPLICANT IN ACCORDANCE WITH SUBSECTION (B)(3)(V) OF THIS SECTION; 14
AND 15
(III) for construction related to a new [overhead] transmission line, the 16
alternative routes that the applicant considered, including the estimated capital and 17
operating costs of each alternative route and a statement of the reason why the alternative 18
route was rejected; 19
(2) require as an ongoing condition of the certificate of public convenience 20
and necessity that an applicant comply with: 21
(i) all relevant agreements with PJM Interconnection, L.L.C., or its 22
successors, related to the ongoing operation and maintenance of the [overhead] transmission 23
line; and 24
(ii) all obligations imposed by the North America Electric Reliability 25
Council and the Federal Energy Regulatory Commission related to the ongoing operation 26
and maintenance of the [overhead] transmission line; and 27
(3) require the applicant to identify whether the [overhead] transmission 28
line is proposed to be constructed on: 29
(i) an existing brownfields site; 30
(ii) property that is subject to an existing easement; or 31
(iii) a site where a tower structure or components of a tower structure 32
used to support an overhead transmission line exist. 33
HOUSE BILL 1532 53
(g) (1) The Commission may not authorize, and a person may not undertake, 1
the construction of an overhead transmission line that is aligned with and within 1 mile of 2
either end of a public airport runway, unless: 3
(i) the Federal Aviation Administration determines that the 4
construction of an overhead transmission line will not constitute a hazard to air navigation; 5
and 6
(ii) the Maryland Aviation Administration concurs in that 7
determination. 8
(2) A privately owned airport runway shall qualify as a public airport 9
runway under this subsection only if the runway has been on file with the Federal Aviation 10
Administration for at least 2 years as being open to the public without restriction. 11
(h) (1) A county or municipal corporation has the authority to approve or deny 12
any local permit required under a certificate of public convenience and necessity issued 13
under this section or a distributed generation certificate of public convenience and necessity 14
issued under § 7–207.4 of this subtitle. 15
(2) A county or municipal corporation shall approve or deny any local 16
permits required under a certificate of public convenience and necessity issued under this 17
section or a distributed generation certificate of public convenience and necessity issued 18
under § 7–207.4 of this subtitle: 19
(i) within a reasonable time; and 20
(ii) to the extent local laws are not preempted by State law, in 21
accordance with local laws. 22
(3) A county or municipal corporation may not condition the approval of a 23
local permit required under a certificate of public convenience and necessity issued under 24
this section or a distributed generation certificate of public convenience and necessity issued 25
under § 7–207.4 of this subtitle on receipt of any of the following approvals for any aspect of 26
a generating station, [an overhead] A transmission line, or a qualified lead line proposed to 27
be constructed under the certificate: 28
(i) a conditional use approval; 29
(ii) a special exception approval; or 30
(iii) a floating zone approval. 31
7–207.6. 32
54 HOUSE BILL 1532
(A) A PERSON THAT SUBMITS AN APPLICATION FOR A PPROVAL OF THE 1
CONSTRUCTION OF A SOLAR ENERGY GENERATING STATION IN ACCORDANCE WITH § 2
7–207, § 7–207.1, OR § 7–207.4 OF THIS SUBTITLE SHALL: 3
(1) REQUEST, WITHIN 90 DAYS BEFORE BEGINNIN G CONSTRUCTION, 4
THE COMMISSIONER OF LABOR AND INDUSTRY TO DETERMINE THE PREVAILING 5
WAGE RATE FOR EACH C LASSIFICATION OF WORKER REQUIRED TO PERFORM WORK 6
ON THE PROJECT; 7
(2) REQUIRE THAT ANY CON TRACTOR OR SUBCONTRA CTOR ON THE 8
PROJECT PAY ITS EMPL OYEES NOT LESS THAN THE PREVAILING WAGE RATE AS 9
DETERMINED BY THE COMMISSIONER OF LABOR AND INDUSTRY UNDER ITEM (1) OF 10
THIS SUBSECTION AND TITLE 17, SUBTITLE 2 OF THE STATE FINANCE AND 11
PROCUREMENT ARTICLE; AND 12
(3) INCLUDE IN THE APPLI CATION AN ATTESTATIO N THAT THE 13
PERSON SHALL COMPLY WITH THE PROVISIONS OF THIS SECTION AND ANY 14
ADDITIONAL REQUIREME NTS IMPOSED BY THE COMMISSIONER OF LABOR AND 15
INDUSTRY. 16
(B) IN ACCORDANCE WITH TITLE 3, SUBTITLE 5 OF THE LABOR AND 17
EMPLOYMENT ARTICLE, THE MARYLAND DEPARTMENT OF LABOR SHALL ENFORCE 18
THE REQUIREMENT UNDE R SUBSECTION (A)(2) OF THIS SECTION FOR 19
CONTRACTORS AND SUBC ONTRACTORS TO PAY EM PLOYEES NOT LESS THA N THE 20
PREVAILING WAGE RATE DETERMINED BY THE COMMISSIONER OF LABOR AND 21
INDUSTRY. 22
7–207.7. 23
(A) IN THIS SECTION, “ADVANCED TRANSMISSION TECHNOLOGIES” HAS THE 24
MEANING STATED IN § 7–207 OF THIS SUBTITLE. 25
(B) (1) SUBJECT TO PARAGRAPHS (2) AND (3) OF THIS SUBSECTION, ON 26
OR BEFORE DECEMBER 1, 2026, AND EVERY 4 YEARS THEREAFTER, EACH OWNER OR 27
OPERATOR OF A TRANSMISSION LINE SHALL SUBMIT TO THE COMMISSION A REPORT 28
THAT: 29
(I) IDENTIFIES AREAS OF SIGNIFICANT TRANSMIS SION 30
CONGESTION COSTS FOR THE IMMEDIATELY PREC EDING 3 YEARS AND ANY 31
REASONABLY FOR ESEEABLE TRANSMISSIO N CONSTRAINTS FOR TH E 5 YEARS 32
IMMEDIATELY FOLLOWING THE DATE OF THE REPORT; 33
HOUSE BILL 1532 55
(II) IDENTIFIES THE PROJE CTED OR ACTUAL COST TO 1
RATEPAYERS AS A RESU LT OF PAST AND PROJE CTED FUTURE TRANSMIS SION 2
CONGESTION; 3
(III) IDENTIFIES THE FEASI BILITY AND COST OF US ING 4
ALTERNATIVE MEANS OF ADDRESSING TRANSMISS ION CONGESTION , INCLUDING 5
THE USE OF ADVANCED TRANSMISSION TECHNOLOGIES; 6
(IV) IDENTIFIES THE ECONOMIC, ENVIRONMENTAL, AND SOCIAL 7
ISSUES POSED BY THE USE OF EACH ALTERNATIVE MEANS IDENTIFIED UNDER ITEM 8
(III) OF THIS PARAGRAPH; AND 9
(V) IF FEASIBLE , PROPOSES AN ADVANCED TRANSMISSION 10
TECHNOLOGY IMPLEMENT ATION PLAN TO ADDRES S AREAS OF TRANSMISS ION 11
CONGESTION IDENTIFIED UNDER ITEM (I) OF THIS PARAGRAPH. 12
(2) THE REPORT REQUIRED U NDER PARAGRAPH (1) OF THIS 13
SUBSECTION SHALL DIS TINGUISH BETWEEN REG IONAL AND LOCAL CONG ESTION 14
DRIVERS AND REFERENCE THE PJM PLANNING INPUTS OR A NY OTHER PLANNING 15
INPUTS USED TO SUPPO RT THE CONGESTION FO RECASTS AND PROPOSED 16
CONGESTION RELIEF SOLUTIONS. 17
(3) THE COMMISSION MAY MODIFY THE REPORTING SCHEDU LE 18
SPECIFIED IN PARAGRAPH (1) OF THIS SUBSECTION. 19
(C) AN OWNER OR OPERATOR OF A TRANSMISSION LI NE MAY USE ANY 20
AVAILABLE DATA FROM PJM OR OTHER SOURCES IN COMPLETING THE REPOR T 21
REQUIRED UNDER THIS SECTION. 22
7–208. 23
(a) (1) In this section the following words have the meanings indicated. 24
(2) “Construction” has the meaning stated in § 7–207 of this subtitle. 25
(3) “Generating station” does not include: 26
(i) a generating unit or facility that: 27
1. is used for the production of electricity for the purpose of: 28
A. onsite emergency backup at a facility when service from the 29
electric company is interrupted due to electric distribution or transmission system failure or 30
when there is equipment failure at a site where critical infrastructure is located; and 31
56 HOUSE BILL 1532
B. test and maintenance operations necessary to ensure 1
functionality of the generating unit or facility in the event of an interruption of service from 2
the electric company due to electric distribution or transmission system failure or when there 3
is equipment failure at a site where critical infrastructure is located; 4
2. is installed with equipment that prevents the flow of 5
electricity to the electric grid; 6
3. is subject to a permit to construct issued by the Department 7
of the Environment; and 8
4. is installed at a facility that is part of critical 9
infrastructure if the facility complies with all applicable regulations regarding noise level 10
and testing hours; or 11
(ii) a combination of two or more generating units or facilities that 12
satisfy item (i) of this paragraph. 13
(4) “Qualified offshore wind project” has the meaning stated in § 7 –701 of 14
this title. 15
(5) “Qualified submerged renewable energy line” means: 16
(i) a line carrying electricity supply and connecting a qualified 17
offshore wind project to the transmission system; and 18
(ii) a line in which the portions of the line crossing any submerged 19
lands or any part of a beach erosion control district are buried or submerged. 20
(b) This section applies to any person: 21
(1) constructing a generating station and its associated [overhead] 22
transmission lines designed to carry a voltage in excess of 69,000 volts; 23
(2) exercising the right of condemnation in connection with the construction; 24
or 25
(3) constructing a qualified submerged renewable energy line. 26
(c) (1) To obtain the certificate of public convenience and necessity required 27
under § 7 –207 of this subtitle for construction under this section, a person shall file a n 28
application with the Commission at least 2 years before construction of the facility will 29
commence. 30
(2) The Commission may waive the 2 –year requirement on a showing of 31
good cause. 32
HOUSE BILL 1532 57
(d) The applicant shall: 1
(1) include in an application under this section the information that the 2
Commission requests initially; and 3
(2) furnish any additional information that the Commission requests 4
subsequently. 5
(e) (1) On the receipt of an application under this section, together with any 6
additional information requested under subsection (d)(2) of this section, the Commission 7
shall provide notice to: 8
(i) for a proposed [overhead] transmission line, each owner of land 9
and each owner of adjacent land; 10
(ii) all interested persons; 11
(iii) the Department of Agriculture; 12
(iv) the Department of Commerce; 13
(v) the Department of the Environment; 14
(vi) the Department of Natural Resources; 15
(vii) the Department of Transportation; 16
(viii) the Department of Planning; and 17
(ix) the Maryland Energy Administration. 18
(2) On receipt of an application under this section, and whenever additional 19
information is received under subsection (d)(2) of this section, the Commission shall provide 20
notice immediately or require the applicant to provide notice immediately to: 21
(i) the governing body of each county or municipal corporation in 22
which any portion of the generating station or the associated [overhead] transmission lines 23
is proposed to be constructed; 24
(ii) the governing body of each county o r municipal corporation 25
within 1 mile of the proposed location of the generating station or the associated [overhead] 26
transmission lines; 27
(iii) each member of the General Assembly representing any part of a 28
county in which any portion of the generating station or the associated [overhead] 29
transmission lines is proposed to be constructed; and 30
58 HOUSE BILL 1532
(iv) each member of the General Assembly representing any part of 1
each county within 1 mile of the proposed location of the generating station or the associated 2
[overhead] transmission lines. 3
(3) The Commission shall hold a public hearing on the application as 4
required by § 7–207 of this subtitle after: 5
(i) the receipt of any additional information requested under 6
subsection (d)(2) of this section that the Commission considers necessary; and 7
(ii) any publication of notice the Commission considers to be proper. 8
(4) (i) At the public hearing, the Commission shall ensure presentation 9
of the information and recommendations of the State units specified in paragraph (1) of this 10
subsection and shall allow the official representative of each unit to sit during hearing of all 11
parties. 12
(ii) Based on the evidence relating to the unit’s areas of concern, the 13
Commission shall allow each unit 15 days after the conclusion of the hearing to modify or 14
affirm the unit’s initial recommendations. 15
(f) Within 90 days after the conclusion of the hearing on an application under this 16
section, the Commission shall: 17
(1) (i) grant a certificate of public convenience and necessity 18
unconditionally; 19
(ii) grant the certificate, subject to conditions the Commission 20
determines to be appropriate; or 21
(iii) deny the certificate; and 22
(2) notify all interested parties of its decision. 23
(g) (1) The Commission shall includ e in each certificate it issues under 24
subsection (f) of this section: 25
(i) the requirements of the federal and State environmental laws and 26
standards that are identified by the Department of the Environment; and 27
(ii) the methods and conditions that the Commission determines are 28
appropriate to comply with those environmental laws and standards. 29
(2) The Commission may not adopt any method or condition under 30
paragraph (1)(ii) of this subsection that the Department of the Environment determines is 31
inconsistent with federal and State environmental laws and standards. 32
HOUSE BILL 1532 59
(h) (1) A decision of the Commission regarding the issuance of a certificate 1
requires the vote of a majority of the members of the Commission. 2
(2) If a majority of the members of the Commission fails to reach agreement 3
on the conditions to be attached to a conditional certificate, the certificate shall be denied. 4
(i) The grant of a certificate by the Commission to any person under subsection (f) 5
of this section constitutes: 6
(1) authority for the person to dredge and construct bulkheads in the waters 7
or private wetlands of the State and to appropriate or use the waters; and 8
(2) registration and a permit to construct, as required under Title 2, Subtitle 9
4 of the Environment Article. 10
(j) (1) A county or municipal corporation has the authority to approve or deny 11
any local permit required under a certificate of public convenience and necessity issued 12
under this section. 13
(2) A county or municipal corporation shall approve or den y any local 14
permits required under a certificate of public convenience and necessity issued under this 15
section: 16
(i) within a reasonable time; and 17
(ii) to the extent local laws are not preempted by State law, in 18
accordance with local laws. 19
(3) A county or municipal corporation may not condition the approval of a 20
local permit required under a certificate of public convenience and necessity issued under 21
this section on receipt of any of the following approvals for any aspect of a generating station, 22
an [overhead] transmission line, or a qualified lead line proposed to be constructed under 23
the certificate: 24
(i) a conditional use approval; 25
(ii) a special exception approval; or 26
(iii) a floating zone approval. 27
7–216.1. 28
(a) (1) In this section the following words have the meanings indicated. 29
(5) “Program” means the Maryland Energy Storage Program. 30
60 HOUSE BILL 1532
(c) (1) The Commission shall establish the Maryland Energy Storage Program. 1
(2) The Program shall be implemented no later than July 1, 2025. 2
(3) The Program shall include competitive procurement mechanisms to 3
reach a minimum of 3,000 megawatts of energy storage, or the maximum cost –effective 4
amount of energy storage that can be deployed, by the end of delivery year 2033. 5
(4) The Program may include: 6
(i) a system of energy storage credits and market –based incentives 7
designed to: 8
1. develop a robust energy storage market in the State; and 9
2. deploy energy storage devices in a cost–effective manner; 10
(ii) a requirement that investor–owned electric companies: 11
1. install or contract for energy storage devices; or 12
2. contract for credits from an energy storage project under § 13
7–216 of this subtitle; 14
(iii) a requirement that Program participants make reasonable efforts 15
to apply for all applicable State and federal grants, rebates, tax credits, loan guarantees, 16
and other similar benefits as the benefits become available; or 17
(iv) any other mechanism or policy that the Commission determines 18
is appropriate to achieve the goal of a robust, cost –effective energy storage system in the 19
State. 20
(D) ON OR BEFORE NOVEMBER 1 EACH YEAR , THE COMMISSION SHALL 21
REPORT TO THE GENERAL ASSEMBLY, IN ACCORDANCE WITH § 2–1257 OF THE 22
STATE GOVERNMENT ARTICLE, ON THE STATUS OF THE PROGRAM, INCLUDING: 23
(1) THE CAPACITY OF OPER ATIONAL ENERGY STORA GE DEVICES IN 24
THE STATE THAT IS BEING C OUNTED TOWARD THE CA PACITY GOAL ESTABLIS HED 25
UNDER SUBSECTION (C)(3) OF THIS SECTION, DISAGGREGATED BY: 26
(I) ELECTRIC COMPANY SERVICE TERRITORY; 27
(II) ENERGY STORAGE DEVICE CAPACITY; 28
(III) FRONT–OF–METER TRANSMISSION–LEVEL STORAGE; 29
HOUSE BILL 1532 61
(IV) FRONT–OF–METER DISTRIBUTION–LEVEL STORAGE; 1
(V) BEHIND–THE–METER STORAGE; AND 2
(VI) ANY OTHER RELEVANT CATEGORY, AS DETERMINED BY THE 3
COMMISSION; 4
(2) WHETHER THE CAPACITY GOAL ESTABLISHED UNDER SUBSECTION 5
(C)(3) OF THIS SECTION SHOULD BE ALTERED; 6
(3) BARRIERS TO ACHIEVIN G THE GOALS IDENTIFI ED UNDER THIS 7
SECTION; AND 8
(4) ANY OTHER INFORMATIO N THE COMMISSION CONSIDERS 9
PERTINENT. 10
7–221. 11
The General Assembly finds and declares that energy efficiency is: 12
(1) among the least expensive ways to meet the energy demands of the State; 13
(2) a means of affordable, reliable, and clean energy for consumers of 14
Maryland; and 15
(3) one method to achie ve Maryland’s climate commitments for reducing 16
statewide greenhouse gas emissions, including those required under Title 2, Subtitle 12 of 17
the Environment Article. 18
7–222. 19
(a) Subject to review and approval by the Commission, each electric company, 20
[each gas company other than a gas company subject to § 4 –207(a) of this article, ] the 21
Department, and, if required in accordance with subsection (c) of this section, each midsize 22
electric cooperative shall develop and implement programs and services in accordance with 23
§§ 7–223, 7–224, and 7–225 of this subtitle to encourage and promote the efficient use and 24
conservation of energy, demand response, and beneficial electrification by consumers, 25
electric companies, [gas companies,] and the Department in support of t he greenhouse gas 26
emissions reduction goals and targets required under Title 2, Subtitle 12 of the Environment 27
Article. 28
(b) As directed by the Commission, [each gas company subject to § 4–207(a) of this 29
article,] each municipal electric [or gas] utility, each small rural electric cooperative, and, 30
if required in accordance with subsection (c) of this section, each midsize electric cooperative 31
shall include energy efficiency and conservation, demand response, and beneficial 32
electrification programs or services as part of their service to their customers. 33
62 HOUSE BILL 1532
(c) (1) In accordance with this subsection, each midsize electric cooperative 1
shall be subject to either subsection (a) or subsection (b) of this section. 2
(2) Each midsize electric cooperative shall of fer programs and services to 3
customers in accordance with: 4
(i) subsection (b) of this section through December 31, 2026; and 5
(ii) on or after January 1, 2027, and as the Commission directs, either 6
subsection (a) or subsection (b) of this section. 7
(3) Not later than October 1, 2025, the Commission shall determine if it is 8
in the public interest for a midsize electric cooperative to offer programs and services to 9
customers in accordance with subsection (a) or subsection (b) of this section starting January 10
1, 2027, and for all subsequent years. 11
(4) Each midsize electric cooperative shall provide the following 12
information to the Commission to assist in making a determination under paragraph (3) of 13
this subsection: 14
(i) anticipated costs and bill impacts; 15
(ii) a description of the anticipated program offerings; 16
(iii) the anticipated cost –effectiveness of the residential, commercial, 17
and industrial sector subportfolios based on the cost–effectiveness tests in § 7–225(d)(3)(i) of 18
this subtitle; 19
(iv) the anticipated electricity savings and greenhouse gas emissions 20
reductions; and 21
(v) any other information the Commission requires. 22
(5) The information provided to the Commission under paragraph (4) of this 23
subsection shall be based on a plan to offer programs and services to customers that complies 24
with the requirements of an electric company subject to subsection (a) of this section for the 25
3–year program cycle starting January 1, 2027. 26
(6) When making a public interest determ ination under paragraph (3) of 27
this subsection the Commission, at a minimum, shall consider the requirements under § 28
7–225(d)(3) of this subtitle that are considered when approving a plan of an electric company 29
that is subject to subsection (a) of this section. 30
(7) Starting October 1, 2025, if the Commission determines that it is in the 31
public interest for a midsize electric cooperative to be subject to subsection (a) of this section, 32
the midsize electric cooperative shall comply with all requirements o f an electric company 33
HOUSE BILL 1532 63
subject to subsection (a) of this section for program cycles starting on and after January 1, 1
2027. 2
(8) On or before March 1 each year, starting in 2026, each midsize electric 3
cooperative directed by the Commission to include programs or services under subsection (b) 4
of this section shall submit to the Commission a report quantifying the gains in energy 5
efficiency and reductions in greenhouse gas emissions achieved during the previous year. 6
(d) The Commission shall encourage and p romote the efficient use and 7
conservation of energy in support of the greenhouse gas emissions reduction goals and 8
targets required under Title 2, Subtitle 12 of the Environment Article, established by the 9
Commission under § 7–223(b) of this subtitle, and specified in § 7–224(a)(2) of this subtitle 10
by: 11
(1) requiring each electric company [and gas company ] to establish any 12
program or service that the Commission determines to be appropriate and cost–effective; 13
(2) adopting rate–making policies that provide, through a surcharge line 14
item on customer bills: 15
(i) full cost recovery of reasonably incurred costs for programs and 16
services established under item (1) of this subsection, including full recovery on a current 17
basis on or before January 1, 2028; 18
(ii) on or before December 31, 2032, the elimination of any unpaid 19
costs and unamortized costs that: 20
1. A. existed on December 31, 2024; or 21
B. were incurred before January 1, 2028; and 22
2. were accrued for the purpose of achieving statutory targets 23
for annual incremental gross energy savings; 24
(iii) compensation for any unpaid costs and unamortized costs under 25
item (ii) of this item at not more than each electric company’s and each gas company’s 26
average cost of outstanding debt; and 27
(iv) reasonable financial performance incentives and penalties for 28
investor–owned electric companies [and gas companies,] as appropriate; and 29
(3) ensuring that adoption of electric customer choice under Subtitle 5 of 30
this title [and gas customer choice under Subtitle 6 of this title ] does not adversely impact 31
these goals and targets. 32
64 HOUSE BILL 1532
(e) The Commission shall, by regulation or order, require each electric company 1
[and each gas company subject to subsection (a) of this section ] that has submitted to the 2
Commission, on or before July 1, 2024, a plan for achieving electricity [or gas] savings and 3
demand reduction targets to disclose the following information in a form and format readily 4
understandable to the average customer: 5
(1) that the surcharge imposed in accordance with subsection (d) of this 6
section includes the cost of paying down the unpaid costs and unamortized costs that were 7
accrued over time by programs and services required by the Commission dating back to 8
2008; and 9
(2) the period of time that the surcharge will include excess charges to pay 10
down the unpaid costs and unamortized costs. 11
(F) A GAS COMPANY THAT PRO VIDED A PROGRAM OR S ERVICE UNDER 12
SUBSECTION (D)(1) OF THIS SECTION AND RECOVERED COSTS UNDER SUBSECTION 13
(D)(2) OF THIS SECTION ON OR BEFORE JANUARY 1, 2026, SHALL: 14
(1) TERMINATE THE PROGRA M ON OR BEFORE DECEMBER 31, 2026; 15
AND 16
(2) CONTINUE TO RECOVER ANY PROGRAM AND SERV ICE COSTS 17
REASONABLY INCURRED THROUGH DECEMBER 31, 2026, INCLUDING UNPAID AND 18
UNAMORTIZED COSTS UNDER SUBSECTION (D)(2)(I) OF THIS SECTION , THROUGH 19
THE RATE–MAKING POLICIES UNDE R SUBSECTION (D)(2) OF THIS SECTION UNTI L 20
ALL REASONABLY INCUR RED PROGRAM AND SERV ICE COSTS HAVE BEEN 21
RECOVERED. 22
7–223. 23
(a) On or before January 1, 2025, and on or before January 1 every 3 years, 24
starting in 2027, the Commission shall, by regulation or order, require each electric company 25
[and each gas company ] subject to § 7 –222(a) of this subtitle to develop and implement a 26
plan that: 27
(1) covers appropriate ratepayer classes; 28
(2) starting in 2027, covers a 3–year program cycle; and 29
(3) achieves the greenhouse gas emissions reduction target established for 30
the electric company [or gas company ] under subsection (b) of this section through 31
cost–effective energy efficiency and conservation programs and services, demand response 32
programs and services, and beneficial electrification programs and services. 33
HOUSE BILL 1532 65
(b) (1) For 2025 and 2026, and for each 3–year program cycle starting in 2027, 1
the Commission shall establish a greenhouse gas emissions reduction target for each electric 2
company [and each gas company ] subject to § 7 –222(a) of this subtitle as provided in this 3
subsection. 4
(2) When establishing greenhouse gas emissions reduction targets under 5
this subsection, the Commission shall measure the greenhouse gas emissions from electricity 6
and gas, and the intensities of those emissions, using current data and projections from the 7
Department of the Environment. 8
(3) The greenhouse gas emissions reduction targets esta blished under this 9
subsection shall be measured: 10
(i) in metric tons; and 11
(ii) relative to the greenhouse gas emissions associated with the 12
electric company’s [or gas company’s] weather–normalized gross retail sales and losses in a 13
baseline year, as determined by the Commission. 14
(4) By the dates specified in § 7–225(a) of this subtitle, the Commission shall 15
establish greenhouse gas emissions reduction targets for each electric company plan that 16
will achieve at least the greenhouse gas emissions re duction equivalent, measured on a 17
lifecycle basis using the emission intensities under paragraph (2) of this subsection, of the 18
following annual electricity savings percentages, calculated as a percentage of the electric 19
company’s 2016 weather–normalized gross retail sales and electricity losses: 20
(i) 2.0% in 2024; 21
(ii) 2.25% each year in 2025 and 2026; [and] 22
(iii) [2.5% each year in 2027 and after ] 1.75% EACH YEAR IN 2027 23
THROUGH 2029; 24
(IV) 2.0% EACH YEAR IN 2030 THROUGH 2032; 25
(V) 2.25% EACH YEAR IN 2033 THROUGH 2035; AND 26
(VI) 2.5% EACH YEAR IN 2036 AND AFTER. 27
(5) [On or before January 1, 2025, and on or before January 1 every 3 years, 28
starting in 2027, the Commission shall establish greenhouse gas emissions reduction targets 29
for each gas company plan that will achieve at least the greenhouse gas emissions reduction 30
equivalent, measured on a lifecycle basis using the emission intensities under paragraph (2) 31
of this subsection, of the gas savings achieved by the gas company for the 2021–2023 program 32
cycle. 33
66 HOUSE BILL 1532
(6)] The Commission shall take into consideration the most recent final plan 1
adopted under § 2 –1205 of the Environment Article when establishing the greenhouse gas 2
emissions reduction targets under this subsection. 3
[(7)] (6) For 2025 and 2026: 4
(i) the Commission shall, after making appropriate findings, 5
determine whether existing electric company [and gas company] plans must be modified to 6
comply with § 7–225(d) of this subtitle; and 7
(ii) electric companies [and gas companies]: 8
1. shall provide information as required by the Commission 9
to assist in making the determination under item (i) of this paragraph; and 10
2. are only required to file new plans in accordance with this 11
section if directed by the Commission. 12
(c) The Commission may give priority to long –lived greenhouse gas emissions 13
reduction measures in the plans by establishing a minimum weighted average measure life 14
for the plan of each electric company [and gas company]. 15
(d) Contributions to greenhous e gas emissions reduction goals and targets in a 16
plan of an electric company [or a gas company]: 17
(1) may, notwithstanding § 7–222(d)(2) of this subtitle, include recovery of 18
the reasonable and prudent costs from programs that are not behind –the–meter programs 19
in a base rate proceeding, subject to Commission approval; and 20
(2) may not include the increased adoption of electric vehicles. 21
(e) (1) [Beginning January 1, 2025,] SUBJECT TO PARAGRAPH (2) OF THIS 22
SUBSECTION, BEGINNING JANUARY 1, 2025: 23
(I) at least 80% of the greenhouse gas emissions reductions counted 24
toward each electric company’s [and each gas company’s ] greenhouse gas emissions 25
reduction targets established under this section shall come from behind–the–meter 26
programs, which may include deployment of energy storage facilities; AND 27
(II) SUBJECT TO PARAGRAPH (3) OF THIS SUBSECTION , FOR 28
2027 THROUGH 2029, NOT MORE THAN 20% OF THE GREENHOUSE GA S EMISSIONS 29
REDUCTIONS COUNTED T OWARD EACH ELECTRIC COMPANY’S GREENHOUSE GAS 30
EMISSIONS REDUCTION TARGETS ESTABLISHED UNDER THIS SECTION S HALL 31
INCLUDE: 32
HOUSE BILL 1532 67
1. COMMUNITY SOLAR ENER GY GENERATING SYSTEM S 1
THAT ARE INTERCONNECTED TO THE ELECTRIC COMPANY’S DISTRIBUTION SYSTEM; 2
AND 3
2. SOLAR ENERGY GENERAT ING FACILITIES THAT ARE 4
INTERCONNECTED TO THE ELECTRIC COMPANY’S DISTRIBUTION SYSTEM. 5
(2) PARAGRAPH (1) OF THIS SUBSECTION MAY NOT BE CONSTRUED TO 6
AUTHORIZE AN ELECTRI C COMPANY TO BUILD , OWN, OR OPERATE ELECTRIC 7
GENERATING FACILITIE S OR ENERGY STORAGE FACILITIES TO MEET T HE 8
REQUIREMENTS OF THIS SECTION. 9
(3) GREENHOUSE GAS EMISSI ONS REDUCTIONS FROM SOURCES 10
SPECIFIED UNDER PARA GRAPH (1)(II) OF THIS SUBSECTION M AY NOT BE USED TO 11
MEET THE GREENHOUSE GAS EMISSIONS REDUCTION TARGETS UNDER PARAGRAPH 12
(1)(I) OF THIS SUBSECTION. 13
7–225. 14
(a) As soon as possible in 2024, and at least 8 months before the filing deadline for 15
plans after 2024, the Commission shall issue an order that determines the greenhouse gas 16
emissions reduction targets required under § 7 –223(b) of this subtitle and the greenhouse 17
gas emissions reductions required under § 7–224(a)(2) of this subtitle. 18
(b) (1) (i) If directed by the Commission in 2024, and on or before July 1 19
every 3 years, starting in 2026, each electric company [and each gas company] subject to § 20
7–222(a) of this subtitle that submitted a plan for achieving electricity savings and demand 21
reduction targets to the Commission before July 1, 2024, and the Department, shall consult 22
with the technical staff of the Commission, the Office of People’s Counsel, the Maryland 23
Energy Administration, and the Department of the Environment r egarding the design and 24
adequacy of its plans for achieving the greenhouse gas emissions reduction targets 25
established by the Commission under § 7 –223(b) of this subtitle and specified in § 26
7–224(a)(2) of this subtitle. 27
(ii) On or before October 1, 2024, and on or before July 1 every 3 years, 28
starting in 2026, each electric company [and each gas company] subject to § 7–222(a) of this 29
subtitle that did not submit a plan for achieving electricity savings and demand reduction 30
targets to the Commission before July 1, 2024, shall comply with the consulting requirements 31
under subparagraph (i) of this paragraph. 32
(2) Each electric company [and each gas company] subject to § 7–222(a) of 33
this subtitle shall provide the technical staff of the Commission, the Office of People’s 34
Counsel, the Maryland Energy Administration, and the Department of the Environment 35
with any additional information regarding its plan, as requested. 36
68 HOUSE BILL 1532
(c) (1) (i) If directed by the Commission in 2024, and on or before September 1
1 every 3 years, starting in 2026, each electric company [and each gas company] subject to 2
§ 7–222(a) of this subtitle that submitted a plan for achieving electricity savings and demand 3
reduction targets to the Commission before July 1, 2024, and the Department, shall submit 4
its plan to the Commission. 5
(ii) On or before December 1, 2024, and on or before September 1 every 6
3 years, starting in 2026, each electric company [and each gas company] that did not submit 7
a plan for achieving elec tricity savings and demand reduction targets to the Commission 8
before July 1, 2024, shall submit its plan to the Commission. 9
(2) Each plan shall detail a proposal for achieving greenhouse gas 10
emissions reduction targets for 3 subsequent calendar years. 11
(3) (i) Each plan shall: 12
1. include: 13
A. a description of the proposed programs and services; 14
B. anticipated costs; 15
C. projected benefits, including greenhouse gas emissions 16
reductions[,] AND electricity savings[, and gas savings]; and 17
D. any other information requested by the Commission; and 18
2. address residential, commercial, and industrial sectors as 19
appropriate, including low–income communities. 20
(ii) A plan of the Department shall include: 21
1. a definition of “l ow–income individual” to be used in the 22
procurement or provision of energy efficiency, conservation, and greenhouse gas emissions 23
reduction programs and services; 24
2. a description of the steps proposed to ensure insulation 25
materials meet the requirements under § 7–224 of this subtitle; and 26
3. a proposed average lifetime measure threshold that: 27
A. encourages the delivery of insulation and weatherization 28
measures; and 29
B. is developed through a stakeholder engagement process. 30
HOUSE BILL 1532 69
(iii) A plan of an electric company shall include the provision or 1
procurement of programs and services for residential beneficial electrification. 2
(d) (1) The Commission shall review the plan of each electric company [, each 3
gas company, ] and the Department to determine whether the plan is adequate and 4
cost–effective in achieving the greenhouse gas emissions reduction targets established by the 5
Commission under §§ 7–223(b) and 7–224(a)(2) of this subtitle. 6
(2) The Commission shall cons ider any written findings provided by the 7
Maryland Energy Administration, the Department of the Environment, and the Office of 8
People’s Counsel regarding the design and adequacy of the plan. 9
(3) Subject to paragraph (4) of this subsection, in approving, modifying, or 10
denying the plan of an electric company [or a gas company], the Commission shall consider: 11
(i) the cost –effectiveness of the residential, commercial, and 12
industrial sector subportfolios by using: 13
1. the primary State jurisdiction –specific test, as developed, 14
updated, or approved by the Commission, to determine the cost –effectiveness of a program 15
or service prospectively, including consideration of: 16
A. participant nonenergy benefits; 17
B. utility nonenergy benefits; and 18
C. societal nonenergy benefits; and 19
2. a total resource cost test to compare the electricity savings 20
and demand reduction targets of the program or service with the results of similar programs 21
or services implemented in other jurisdictions, including: 22
A. participant nonenergy benefits; and 23
B. utility nonenergy benefits; 24
(ii) the impact on rates of each ratepayer class; 25
(iii) the impact on jobs; 26
(iv) the impact on the environment; and 27
(v) the impact on the greenhouse gas emissions reduction targets 28
specified in Title 2, Subtitle 12 of the Environment Article, established by the Commission 29
under §§ 7–223(b) and 7–224(a)(2) of this subtitle. 30
70 HOUSE BILL 1532
(4) Nonenergy benefits considered under paragraph (3) of this subsection 1
shall be quantifiable and directly related to a program or service. 2
(5) (i) In approving, modifying, or denying the plan of the Department, 3
the Commission shall consider: 4
1. subject to subparagraph (ii) of this paragraph, the 5
cost–effectiveness of the pla n by using the primary State jurisdiction –specific test, as 6
developed, updated, or approved by the Commission; 7
2. the impact on rates of each ratepayer class; 8
3. the impact on jobs; 9
4. the impact on the environment; and 10
5. the impact on the greenhouse gas emissions targets 11
specified in Title 2, Subtitle 12 of the Environment Article, established by the Commission 12
under § 7–223(b) of this subtitle, and specified in § 7–224(a)(2) of this subtitle. 13
(ii) The programs and services offered by the Department are not 14
required to be cost–effective. 15
(e) The Department of the Environment shall prepare and submit to the 16
Commission an analysis regarding the adequacy of the plan in supporting the State’s 17
greenhouse gas emissions reduction goals specified in Title 2, Subtitle 12 of the Environment 18
Article, established by the Commission under § 7–223(b) of this subtitle, and required under 19
§ 7–224(a)(2) of this subtitle. 20
7–226. 21
(a) (1) Each electric company[, each gas company, ] and the Department shall 22
provide to the Commission every 6 months an update on plan implementation and progress 23
made toward achieving the greenhouse gas emissions reduction targets established by the 24
Commission under § 7 –223(b) of this subtitle and requir ed under § 7 –224(a)(2) of this 25
subtitle. 26
(2) The Commission shall monitor and analyze the impact of each program 27
and service to ensure that the outcome of each program and service provides the best possible 28
results. 29
(3) In monitoring and analyzing the impact of a program or service under 30
paragraph (2) of this subsection, if the Commission finds that the outcome of the program 31
or service may not be providing the best possible results, the Commission shall direct the 32
electric company[, the gas company,] or the Department to include in its next update under 33
paragraph (1) of this subsection specific measures to address the findings. 34
HOUSE BILL 1532 71
(b) (1) At least once each year, each electric company [and each gas company] 1
shall notify affected customers of the energy efficiency and conservation and greenhouse gas 2
reduction charges imposed and benefits conferred. 3
(2) The notice shall be provided by publication on the company’s website 4
and inclusion with billing information such as a bill insert or bill message. 5
(c) On or before May 1 each year, the Commission shall report, in accordance with 6
§ 2–1257 of the State Government Article, to the General Assembly on: 7
(1) the status of programs and services approved under this subtitle, 8
including an evaluation of the impact of the programs and services that are directed to 9
low–income communities and other particular classes of ratepayers; 10
(2) a recommendation for the appropriate funding level to adequately fund 11
these programs and services; 12
(3) the per capita electricity consumption and the winter and summer peak 13
demand for the previous calendar year; and 14
(4) beginning in 2026, progress made toward reducing greenhouse gas 15
emissions in accordance with §§ 7–223 and 7–224 of this subtitle. 16
7–227. 17
(a) Notwithstanding any other law, the Commission may not require or allow an 18
electric company [or a gas company] to require a customer to authorize the electric company 19
[or gas company] to control the amount of the customer’s electricity usage [or gas usage]. 20
(b) A customer may provide consent to participate in a program of an electric 21
company [or a gas company] that provides direct load control or other utility manipulation 22
of a customer’s electricity [or gas] usage. 23
7–228. 24
(a) Each electric company [and each gas company] shall promote the availability 25
of federal and State rebates, tax credits, and incentives that can be used to support energy 26
efficiency investments, energy efficient and non–fossil–fuel–powered appliances and cooking 27
equipment, breaker box upgrades, and portable heating and cooling equipment. 28
(b) The Commission shall adopt regulations to carry out this section. 29
7–229. 30
NOTHING IN THIS PART PROHIBITS THE COMMISSION FROM APPRO VING A 31
DEMAND RESPONSE PROG RAM PROPOSED BY AN E LECTRIC COMPANY IF T HE 32
72 HOUSE BILL 1532
DEMAND RESPONSE PROG RAM IS DETERMINED TO BE COST –EFFECTIVE AND 1
IMPROVE SYSTEM RELIABILITY. 2
7–230. RESERVED. 3
7–231. RESERVED. 4
PART III. LARGE LOAD CUSTOMERS. 5
7–232. 6
(A) IN THIS PART THE FOLLOWING WORDS HAVE THE MEANINGS INDICATED. 7
(B) “DISTRICT ENERGY SYSTE M” MEANS AN UNDERGROUND 8
INFRASTRUCTURE ASSET WHOSE PRIMARY PURPOS E IS TO PROVIDE THER MAL 9
ENERGY TO MULTIPLE BUILDINGS FROM A CENTRAL ENERGY PLANT OR PLANTS. 10
(C) “DUPLICATIVE INTERCONN ECTION REQUEST ” MEANS AN 11
INTERCONNECTION REQUEST THAT: 12
(1) IS SUBSTANTIALLY SIM ILAR TO ANOTHER INTE RCONNECTION 13
REQUEST SUBMITTED BY THE LARGE LOAD CUSTOMER OR THE CUSTOMER’S PARENT 14
COMPANY OR AFFILIATE; 15
(2) IS SUBMITTED TO AN E LECTRIC COMPANY IN T HE STATE OR IN 16
ANOTHER STATE IN THE PJM REGION; AND 17
(3) IF PROGRESSED FURTHE R THROUGH THE INTERC ONNECTION 18
PROCESS, WOULD CAUSE THE LARG E LOAD CUSTOMER TO M ATERIALLY CHANGE , 19
DELAY, OR WITHDRAW THE APPLICABLE INTERCONNECTION REQUEST. 20
(D) “INCREMENTAL RESOURCES ” INCLUDES ONE OR A CO MBINATION OF 21
THE FOLLOWING FACILI TIES AND RESOURCES , LOCATED WITHIN THE A PPLICABLE 22
LOCATIONAL DELIVERABILITY AREA: 23
(1) BEHIND–THE–METER ENERGY STORAGE FACILITIES; 24
(2) NEWLY INTERCONNECTED ENERGY STORAGE FACILITIES; AND 25
(3) PURCHASING OR ESTABL ISHING NONEMITTING R ESOURCES 26
WITHIN THE LOCATIONAL DELIVERABILITY AREA, INCLUDING: 27
(I) NEW CLEAN ENERGY GENERATION ASSETS; 28
HOUSE BILL 1532 73
(II) NEW VIRTUAL POWER PLANT AGGREGATIONS; AND 1
(III) A DEMAND RESPONSE PR OGRAM THAT THE COMMISSION 2
DETERMINES MEETS THE GOALS ESTABLISHED UNDER § 7–234 OF THIS SUBTITLE , 3
INCLUDING PROGRAMS ADMINISTERED BY PJM. 4
(E) (1) “LARGE LOAD CUSTOMER” MEANS A COMMERCIAL OR INDUSTRIAL 5
CUSTOMER FOR RETAIL ELECTRIC SERVICE THAT: 6
(I) HAS OR IS PROJECTED TO HAVE AN AGGREGATE MONTHLY 7
DEMAND OF AT LEAST 25 MEGAWATTS; AND 8
(II) HAS OR IS PROJECTED TO HAVE A LOAD FACTO R OF MORE 9
THAN 60%. 10
(2) “LARGE LOAD CUSTOMER” DOES NOT INCLUDE A COMMERCIAL OR 11
INDUSTRIAL CUSTOMER FOR RETAIL ELECTRIC SERVICE WHOSE PRIMARY PURPOSE 12
IS TO OPERATE AS: 13
(I) A WATER COMPANY OR SEWAGE DISPOSAL COMPANY; 14
(II) A MANUFACTURING FACILITY; 15
(III) A HOSPITAL; 16
(IV) A DISTRICT ENERGY SYSTEM; 17
(V) AN AGRICULTURAL FACILITY; OR 18
(VI) AT THE DISCRETION OF THE COMMISSION, ANOTHER 19
INDUSTRIAL FACILITY. 20
(F) “MANUFACTURING FACILITY” MEANS A FACILITY WHE RE THE PROCESS 21
OF SUBSTANTIALLY TRANSFORMING, OR A SUBSTANTIAL STE P IN THE PROCESS OF 22
SUBSTANTIALLY TRANSFORMING, TANGIBLE PERSONAL PROPERTY INTO A NEW AND 23
DIFFERENT ARTICLE OF TANGIBLE PERSONAL PROPERTY BY THE USE OF LABOR OR 24
MACHINERY OCCURS. 25
(G) “ON–SITE BACKUP GENERATI NG FACILITY ” MEANS A GENERATING 26
FACILITY THAT IS NOT CONNECTED TO THE ELECTRIC SYSTEM. 27
(H) “VIRTUAL POWER PLANT ” MEANS AN AGGREGATION OF DISTRIBUTED 28
CLEAN ENERGY RESOURC ES AND ENERGY STORAG E OWNED BY A CUSTOME R OR A 29
THIRD PARTY THAT: 30
74 HOUSE BILL 1532
(1) PROVIDES ELECTRIC SYSTEM SERVICES; AND 1
(2) MAY BE USED BY THE CUSTOMER OR THE THIRD PARTY FOR OTHER 2
APPLICATIONS WHEN NOT PROVIDING ELECTRIC SYSTEM SERVICES. 3
(I) “VOLUNTARY CLEAN CAPAC ITY RATING PROGRAM ” MEANS THE 4
PROGRAM DEVELOPED BY THE COMMISSION UNDER § 7–234 OF THIS SUBTITLE. 5
7–233. 6
(A) ON OR BEFORE JULY 1, 2027, THE COMMISSION, BY ORD ER OR 7
REGULATION, SHALL ESTABLISH A LARGE LOAD CUSTOMER REGISTRY TO: 8
(1) PROVIDE INFORMATION RELEVANT TO PLANNING AT THE 9
ELECTRIC DISTRIBUTION, STATE, AND PJM LEVELS; AND 10
(2) ASSIST IN ENSURING A CCURATE LOAD FORECAS TS AT THE 11
ELECTRIC DISTRIBUTION, STATE, AND PJM LEVELS. 12
(B) (1) THE COMMISSION SHALL DEVE LOP A PROCESS FOR 13
REGISTRATION UNDER THIS SECTION. 14
(2) THE PROCESS SHALL: 15
(I) APPLY TO NEW OR EXPANDED INTERCONNECTION OF LARGE 16
LOAD CUSTOMERS; 17
(II) REQUIRE A LARGE LOAD CUSTOMER TO: 18
1. DISCLOSE ALL INFORMATION ABOUT THE LARGE LOAD 19
CUSTOMER AS SPECIFIED IN THIS SECTION; 20
2. DISCLOSE EACH OF THE LARGE LOAD CUSTOMER ’S 21
DUPLICATIVE INTERCONNECTION REQUESTS AND ANY ASS OCIATED INFORMATION, 22
AS DESCRIBED IN THIS SECTION; 23
3. EXPLAIN HOW THE LARGE LOAD CUSTOMER’S ENERGY 24
AND CAPACITY NEEDS W ILL BE SERVED AND DE SCRIBE ANY ANTICIPAT ED 25
ARRANGEMENTS, INCLUDING ARRANGEMENTS: 26
A. WITH THIRD PARTIES; AND 27
HOUSE BILL 1532 75
B. FOR NEW OR EXISTING GENERATION AND ENERG Y 1
STORAGE, WHETHER ON–SITE OR OFF–SITE; 2
4. DISCLOSE INFORMATION ABOUT THE ANTICIPATE D 3
TYPE OF ON –SITE BACKUP GENERATI NG FACILITY THAT WOU LD BE USED IN THE 4
EVENT OF A SYSTEM OUTAGE; 5
5. DISCLOSE INFORMATION ABOUT: 6
A. THE AMOUNT OF WATER THAT THE LARGE LOAD 7
CUSTOMER WILL USE EACH MONTH; 8
B. THE SOURCE OF THE WATER THAT WILL BE USED; AND 9
C. THE STATUS OF AN APP LICATION FOR A WATER 10
APPROPRIATION OR USE PERMIT SUBMITTED TO THE DEPARTMENT OF THE 11
ENVIRONMENT OR A WATER UTILITY; 12
6. DISCLOSE THE STATUS AND TYPE OF SITE CON TROL 13
FOR THE PROPOSED LOC ATION OF THE LARGE L OAD CUSTOMER ’S FACILITY , 14
INCLUDING OWNERSHIP OR LEASE CONTROL; 15
7. DISCLOSE ENERGY CHAR ACTERISTICS OF THE 16
CUSTOMER, INCLUDING: 17
A. PEAK LOAD; 18
B. ANTICIPATED LOAD FACTOR; 19
C. TIMING OF REQUESTED SERVICE; 20
D. LOAD RAMP PERIOD; 21
E. ANNUAL ENERGY USAGE; AND 22
F. LOAD PROFILE OR , IF UNAVAILABLE, A DESCRIPTION 23
OF THE LARGE LOAD CUSTOMER’S AVERAGE HOURLY USE; 24
8. PROVIDE A DESCRIPTIO N OF THE LARGE LOAD 25
CUSTOMER’S OPERATION; 26
9. DISCLOSE THE POINT O F INTERCONNECTION AN D 27
ADDRESS OR COORDINATES OF THE LARGE LOAD CUSTOMER; AND 28
76 HOUSE BILL 1532
10. PROVIDE ANY OTHER IN FORMATION THE 1
COMMISSION CONSIDERS NECESSARY F OR THE PURPOSES IDEN TIFIED IN 2
SUBSECTION (A) OF THIS SECTION; AND 3
(III) ESTABLISH ANY OTHER STANDARDS THAT THE COMMISSION 4
CONSIDERS NECESSARY. 5
(C) (1) EXCEPT AS PROVIDED IN SUBSECTION (E) OF THIS SECTION , A 6
LARGE LOAD CUSTOMER SHALL REGISTER WITH THE COMMISSION IN ACCORDANCE 7
WITH THIS SECTION: 8
(I) WITHIN 30 DAYS AFTER SIGNING A FEDERAL ENERGY 9
REGULATORY COMMISSION–JURISDICTIONAL AGREEMENT WITH AN ELE CTRIC 10
COMPANY; OR 11
(II) WITHIN 30 DAYS AFTER AN ELECTR IC COMPANY PROVIDES 12
TO THE COMMISSION AND THE LARGE LOAD CUSTO MER THE INFORMATION 13
REQUIRED IN PARAGRAPH (2) OF THIS SUBSECTION. 14
(2) AN ELECTRIC COMPANY SHALL PROVIDE WRITTEN NOTICE TO THE 15
COMMISSION AND A LARG E LOAD CUSTOMER WHEN THE ELECTRIC COMPANY 16
PROVIDES TO PJM INFORMATION RELATED TO THE LARGE LOAD CUSTOMER THAT 17
MAY IMPACT PJM FORECASTS OR MARKETS. 18
(D) ELECTRIC COMPANIES AN D LARGE LOAD CUSTOME RS SHALL PROVIDE 19
TO THE COMMISSION WITHIN THE TIMELINES SET BY THE COMMISSION: 20
(1) UPDATED INFORMATION REGARDING A REGISTERED LARGE LOAD 21
CUSTOMER, INCLUDING IF: 22
(I) A NEW DUPLICATIVE IN TERCONNECTION REQUES T 23
BECOMES KNOWN; OR 24
(II) THERE IS A CHANGE IN THE STATUS OF A DUPL ICATIVE 25
INTERCONNECTION REQUEST; AND 26
(2) ANY OTHER INFORMATIO N THAT THE COMMISSION CONSIDERS 27
RELEVANT. 28
(E) (1) WITHIN 60 DAYS AFTER RECEIVING AN APPLICATION FOR 29
REGISTRATION UNDER T HIS SECTION , INCLUDING ALL INFORM ATION REQUIRED 30
UNDER SUBSECTION (B) OF THIS SECTION , THE COMMISSION SHALL CERT IFY 31
WHETHER A REGISTRATION UNDER THIS SECTION IS COMPLETE. 32
HOUSE BILL 1532 77
(2) IF THE COMMISSION DETERMINES THAT THE REGISTRATIO N 1
INFORMATION IS INCOM PLETE, THE COMMISSION MAY EXTEND ANY TIME FRAME 2
PROVIDED IN AN ORDER OR REGULATION ADOPTE D IN ACCORDANCE WITH THIS 3
SECTION. 4
(F) (1) THE COMMISSION SHALL CHAR GE A REGISTRATION FE E OF NOT 5
LESS THAN $1,000 PER MEGAWATT OF THE PEAK LOAD OF THE LAR GE LOAD 6
CUSTOMER. 7
(2) THE FEE REVENUE RECEI VED UNDER PARAGRAPH (1) OF THIS 8
SUBSECTION SHALL BE USED ONLY AS FOLLOWS: 9
(I) 50% FOR THE ELECTRIC UNI VERSAL SERVICE PROGR AM 10
ESTABLISHED UNDER § 5–5A–08 OF THE HUMAN SERVICES ARTICLE; AND 11
(II) 50% FOR THE PROGRAM ESTA BLISHED UNDER § 7–224 OF 12
THIS SUBTITLE. 13
(G) (1) THE COMMISSION SHALL IMPO SE PENALTIES AGAINST A LARGE 14
LOAD CUSTOMER IF THE LARGE LOAD CUSTOMER: 15
(I) FAILS TO REGISTER IN ACCORDANCE WITH THIS SECTION; 16
OR 17
(II) INTENTIONALLY MISLEA DS THE COMMISSION IN ITS 18
REGISTRATION. 19
(2) THE COMMISSION MAY DIRECT PROCEEDS COLLECTED F ROM A 20
PENALTY IMPOSED UNDER PARAGRAPH (1) OF THIS SUBSECTION T O BE PROVIDED 21
TO EXISTING ELECTRIC CUSTOMERS IN THE SAM E SERVICE TERRITORY AS THE 22
LARGE LOAD CUSTOMER. 23
(H) (1) EXCEPT AS SPECIFIED I N PARAGRAPH (2) OF THIS SUBSECTION , 24
CONFIDENTIAL COMMERC IAL OR FINANCIAL INF ORMATION DISCLOSED T O THE 25
COMMISSION BY A LARGE LOAD CUSTOMER IN ACC ORDANCE WITH SUBSECT ION 26
(B)(2)(II) OF THIS SECTION: 27
(I) SHALL BE CONSIDERED PROTECTED FROM DISCL OSURE 28
UNDER § 4–335 OF THE GENERAL PROVISIONS ARTICLE BEFORE THE LA RGE LOAD 29
CUSTOMER IS OPERATIONAL; AND 30
(II) MAY BE DISCLOSED BY THE COMMISSION: 31
78 HOUSE BILL 1532
1. IN A MANNER THAT IS CONSISTENT WITH TITLE 4 OF 1
THE GENERAL PROVISIONS ARTICLE WHEN THE LARGE LOAD CUSTOMER BECOMES 2
OPERATIONAL; OR 3
2. NOTWITHSTANDING ITEM (I) OF THIS PARAGRAPH: 4
A. IN ACCORDANCE WITH PARAGRAPH (2) OF THIS 5
SUBSECTION; 6
B. IF THE INFORMATION HAS BEEN MADE PUBLIC BY ANY 7
PERSON; OR 8
C. IF THE INFORMATION I S AGGREGATED AND 9
ANONYMIZED AS DESCRIBED IN SUBSECTION (J)(2) OF THIS SECTION. 10
(2) THE COMMISSION SHALL ESTA BLISH A PROCEDURE FOR THE 11
DISCLOSURE OF CONFID ENTIAL COMMERCIAL AN D FINANCIAL INFORMAT ION 12
PROVIDED IN ACCORDANCE WITH SUBSECTION (B)(2)(II) OF THIS SECTION TO A UNIT 13
OF STATE GOVERNMENT, PJM, OR ANOTHER PERSON IF CONSIDERED APPROPRIATE 14
BY THE COMMISSION AND ONLY F OR THE PURPOSE OF AC CURATE LOAD 15
FORECASTING, TRANSMISSION PLANNING, OR OTHER REASONS THE COMMISSION 16
CONSIDERS NECESSARY. 17
(3) A PERSON AUTHORIZED TO ACCESS CONFIDENTIAL INFORMATION 18
UNDER PARAGRAPH (2) OF THIS SUBSECTION S HALL KEEP THE INFORM ATION 19
ACCESSED CONFIDENTIAL. 20
(I) BEGINNING JULY 1, 2027, AN ELECTRIC COMPANY MAY NOT SUBMIT A 21
LARGE LOAD ADJUSTMENT REQUEST TO PJM UNLESS THE LARGE LOAD CUSTOMER 22
HAS COMPLETED THE REGISTRATION PROCESS UNDER THIS SECTION. 23
(J) (1) ON OR BEFORE OCTOBER 1, 2027, AND EA CH OCTOBER 1 24
THEREAFTER, THE COMMISSION SHALL REPO RT TO THE SENATE COMMITTEE ON 25
EDUCATION, ENERGY, AND THE ENVIRONMENT AND THE HOUSE ENVIRONMENT 26
AND TRANSPORTATION COMMITTEE, IN ACCORDANCE WITH § 2–1257 OF THE STATE 27
GOVERNMENT ARTICLE, ON THE LARGE LOAD CU STOMER REGISTRY REQU IRED 28
UNDER THIS SECTION. 29
(2) THE REPORT: 30
(I) SHALL INCLUDE INFORMATION DISCLOSED IN SUBSECTION 31
(B)(2)(II) OF THIS SECTION AGGR EGATED BY EACH ELECT RIC COMPANY SERVICE 32
TERRITORY; 33
HOUSE BILL 1532 79
(II) MAY NOT DISCLOSE CON FIDENTIAL COMMERCIAL OR 1
FINANCIAL INFORMATION AS DESCRIBED IN SUBSECTION (B)(2)(II) OF THIS SECTION 2
UNLESS THE INFORMATION: 3
1. CONSISTS OF ENERGY CHARACTERISTICS IDENTIFIED 4
IN SUBSECTION (B)(2)(II)7A, C, AND D OF T HIS SECTION , PROVIDED THAT THE 5
INFORMATION HAS BEEN ANONYMIZED AND PROJE CTS ARE ONLY IDENTIF IED BY 6
ELECTRIC COMPANY SERVICE TERRITORY; 7
2. IS: 8
A. USED BY AN ELECTRIC COMPANY FOR THE 9
IDENTIFICATION OF DU PLICATIVE INTERCONNE CTION REQUESTS BOTH IN AND 10
OUTSIDE THE STATE; AND 11
B. ANONYMIZED AND PROJE CTS ARE IDENTIFIED O NLY 12
BY ELECTRIC COMPANY SERVICE TERRITORY; OR 13
3. HAS BEEN PREVIOUSLY DISCLOSED TO THE PUB LIC; 14
AND 15
(III) SHALL INCLUDE ANY OT HER INFORMATION REGA RDING 16
LARGE LOAD CUSTOMERS AS A WHOLE IN AN ELE CTRIC COMPANY ’S SERVICE 17
TERRITORY THAT THE COMMISSION CONSIDERS APPROPRIATE. 18
(3) IF THERE IS ONLY ONE LARGE LOAD CUSTOMER IDENTIFIED 19
WITHIN AN ELECTRIC COMPANY SERVICE TERRITORY THAT IS NOT THE SUBJECT OF 20
A DUPLICATIVE INTERCONNECTION REQUEST, THE COMMISSION MAY REPORT THAT 21
LARGE LOAD CUSTOMER ’S INFORMATION IN AN AGGREGATED MANNER IN 22
CONJUNCTION WITH DAT A FROM AN ADJACENT E LECTRIC COMPANY ’S SERVICE 23
TERRITORY IN ORDER TO PRESERVE ANONYMITY. 24
(4) ALL INFORMATION PROVIDED IN THE REPORT SUBMITTED UNDER 25
THIS SUBSECTION MAY BE USED PUBLICLY BY THE COMMISSION. 26
7–234. 27
(A) (1) ON OR BEFORE DECEMBER 15, 2027, THE COMMISSION SHALL 28
DEVELOP A VOLUNTARY CLEAN CAPACITY RATIN G PROGRAM THAT ESTAB LISHES 29
CLEAN CAPACITY RATIN GS FOR LARGE LOAD CU STOMERS THAT ELECT TO 30
PARTICIPATE IN THE P ROGRAM, INCLUDING PLATINUM A ND GOLD RATING 31
DESIGNATIONS. 32
(2) THE RATING SYSTEM SHALL: 33
80 HOUSE BILL 1532
(I) ACCOUNT FOR A LARGE LOAD CUSTOMER ’S VOLUNTARY 1
ADOPTION OF DEMAND RESPONSE AND INCREMENTAL RESOURCES; AND 2
(II) EVALUATE THE EXTENT TO WHIC H THE LARGE LOAD 3
CUSTOMER PROVIDES AD EQUATE INCREMENTAL R ESOURCES TO MEET A 4
PERCENTAGE OF ITS PE AK LOAD AS ASSIGNED BY PJM AND GROSSED UP BY TH E 5
APPROPRIATE RESERVE MARGIN. 6
(B) (1) A LARGE LOAD CUSTOMER MAY BE ELIGIBLE FOR A GOLD OR 7
PLATINUM RATING UNDER THIS SECTION ONLY IF THE LARGE LOAD CUSTOMER: 8
(I) ENSURES THAT WORKERS CONSTRUCTING THE LARGE LOAD 9
CUSTOMER’S FACILITY ARE PAID NOT LESS THAN THE PR EVAILING WAGE RATE 10
DETERMINED BY THE COMMISSIONER OF LABOR AND INDUSTRY UNDER TITLE 17, 11
SUBTITLE 2 OF THE STATE FINANCE AND PROCUREMENT ARTICLE; AND 12
(II) ENTERS INTO A MEMORA NDUM OF UNDERSTANDIN G WITH 13
THE COMMISSION THAT: 14
1. CONFIRMS THE LARGE L OAD CUSTOMER ’S 15
COMMITMENT TO PROVID E AND MAINTAIN THE C APACITY REFERENCED I N 16
SUBSECTIONS (C) AND (D) OF THIS SECTION FOR THE LIFE OF THE FACILITY; AND 17
2. PROVIDES THAT THE LA RGE LOAD CUSTOMER 18
CONSENTS TO THE COMMISSION’S JURISDICTION FOR E NFORCEMENT OF PENALTY 19
PROVISIONS ESTABLISHED UNDER PARAGRAPH (2) OF THIS SUBSECTION. 20
(2) (I) THE COMMISSION SHALL ESTA BLISH PENALTIES FOR A 21
LARGE LOAD CUSTOMER THAT VIOLATES A MEMO RANDUM OF UNDERSTAND ING 22
ENTERED INTO UNDER PARAGRAPH (1)(II) OF THIS SUBSECTION. 23
(II) THE PENALTIES SHALL ACCOUNT FOR BOTH THE BENEFITS 24
RECEIVED BY THE LARGE LOAD CUSTOMER AND THE HARM DONE TO THE STATE AND 25
RATEPAYERS BY THE VIOLATION. 26
(III) CONSENT UNDER PARAGRAPH (1)(II)2 OF THIS SUBSECTION 27
TO THE ENFORCEMENT O F PENALTIES ESTABLIS HED IN THIS PARAGRAP H SHALL 28
CONTINUE UNTIL THE COMMISSION PROVIDES W RITTEN NOTICE TO THE LARGE 29
LOAD CUSTOMER THAT RELIEVES THE CUSTOMER FROM THE OBLIGATION. 30
(C) A LARGE LOAD CUSTOMER MAY RECEIVE A GOLD R ATING ONLY IF THE 31
CUSTOMER DEMONSTRATE S THAT IT HAS ADEQUA TE INCREMENTAL RESOU RCES 32
SUFFICIENT TO COVER THE CUSTOMER ’S CAPACIT Y FOR AT LEAST 80% OF THE 33
HOUSE BILL 1532 81
CUSTOMER’S PEAK LOAD AS ASSIG NED BY PJM AND ADDED TOGETHER W ITH THE 1
APPROPRIATE RESERVE MARGIN THROUGH A COM BINATION OF INCREMEN TAL 2
RESOURCES. 3
(D) A LARGE LOAD CUSTOMER MAY RECEIVE A PLATIN UM RATING ONLY IF 4
THE CUSTOMER DEMONSTRATES THAT IT HAS ADEQUATE INCREMENTAL RESOURCES 5
SUFFICIENT TO COVER THE CUSTOMER’S CAPACITY FOR 100% OF THE CUSTOMER’S 6
PEAK LOAD AS ASSIGNE D BY PJM AND ADDED TOGETHER WITH THE APPROPRIATE 7
RESERVE MARGIN THROUGH A COMBINATION OF INCREMENTAL RESOURCES. 8
(E) BENEFITS OF RECEIVING A GOLD OR PLATINUM RATING INCLUDE: 9
(1) FOR A LARGE LOAD CUS TOMER THAT HAS RECEI VED A GOLD 10
RATING, PRIORITIZATION FOR LOAD STUDIES AND INTERCONNECTION OVER LARGE 11
LOAD CUSTOMERS THAT DO NOT HAVE A GOLD OR PLATINUM RATING; AND 12
(2) FOR A LARGE LOAD CUS TOMER THAT HAS RECEI VED A PLATINUM 13
RATING: 14
(I) PRIORITIZATION FOR L OAD STUDIES AND 15
INTERCONNECTION OVER OTHER LARGE LOAD CUS TOMERS THAT DO NOT H AVE A 16
PLATINUM RATING; 17
(II) A GUARANTEE THAT PERMIT APPLICATIONS SUBMITTED TO 18
THE DEPARTMENT OF THE ENVIRONMENT SHALL BE PROCESSED WITHIN 12 19
MONTHS AFTER SUBMISSION, PENDING COMPLIANCE WITH APPLICABLE STATE AND 20
FEDERAL LAWS, INCLUDING EXISTING E NVIRONMENTAL JUSTICE REQUIREMENTS; 21
AND 22
(III) THE OPPORTUNITY TO P ROCURE AND PROVIDE , BEFORE 23
PERMITS ARE ISSUED , EQUIPMENT FOR ANY SU BSTATION NEEDED TO 24
INTERCONNECT THE LARGE LOAD CUSTOMER TO THE ELECTRIC SYSTEM. 25
(F) A LARGE LOAD CUSTOMER THAT DOES NOT HAVE A GOLD OR PLATINUM 26
RATING IS NOT ENTITL ED TO THE BENEFITS L ISTED IN SUBSECTION (E) OF THIS 27
SECTION. 28
(G) (1) IF A LARGE LOAD CUSTO MER WITH A PLATINUM RATING ELECTS 29
TO PROCURE AND PROVI DE EQUIPMENT FOR A S UBSTATION IN ACCORDANCE WITH 30
SUBSECTION (E)(2)(III) OF THIS SECTION, THE LARGE LOAD CUSTOMER: 31
(I) SHALL PROVIDE ALL TH E NECESSARY E QUIPMENT FOR 32
CONSTRUCTING THE SUBSTATION INFRASTRUCTURE; 33
82 HOUSE BILL 1532
(II) MAY PROCURE THE EQUI PMENT BEFORE THE ELE CTRIC 1
COMPANY IN WHOSE SER VICE TERRITORY THE L ARGE LOAD CUSTOMER I S OR WILL 2
BE LOCATED HAS ISSUED FINAL PERMITTING APPROVALS; AND 3
(III) MAY ENTER INTO AN AGREEMENT WI TH THE ELECTRIC 4
COMPANY THAT DETAILS WHAT EQUIPMENT THE E LECTRIC COMPANY MAY 5
PURCHASE FOR THE CON STRUCTION OF THE SUB STATION, BUT THE ENTIRETY OF 6
THE EQUIPMENT SHALL BE FUNDED OR PROVIDED BY THE LARGE LOAD CUSTOMER. 7
(2) ANY EQUIPMENT PROCURED BY THE LARGE LOAD CUSTOMER FOR 8
THE CONSTRUCTION OF A SUBSTATION UNDER THIS SUBSECTION SHALL MEET THE 9
NECESSARY INTERCONNE CTION REQUIREMENTS O F THE ELECTRIC COMPA NY IN 10
WHOSE SERVICE TERRITORY THE SUBSTATION WILL BE LOCATED. 11
(3) COSTS INCURRED AS A RESULT OF CONSTRUCTING A SUBSTATION 12
UNDER THIS SUBSECTION MAY NOT BE PASSED ON TO OTHER CUSTOMER S, EITHER 13
THROUGH AN ELECTRIC COMPANY’S RATES OR OTHERWISE , AND SHALL BE FULLY 14
BORNE BY THE LARGE LOAD CUSTOMER. 15
(4) EACH ELECTRIC COMPANY SHALL DEVELOP PROCESSES AND 16
TARIFFS FOR REVIEW A ND APPROVAL BY THE COMMISSION TO ALLOW F OR THE 17
LARGE LOAD CUSTOMER TO PROCURE AND PROVI DE EQUIPMENT UNDER T HIS 18
SUBSECTION. 19
(5) NOTHING IN THIS SUBSE CTION SHALL RELIEVE A LARGE LOAD 20
CUSTOMER THAT DOES NOT HAVE A VOLUNTARY CLEAN CAPACITY RATING FROM ANY 21
REQUIREMENT TO PAY T HE COST OF CONSTRUCT ING A SUBSTATION COM PLETED 22
THROUGH THE STANDARD PERMITTING AND INTERCONNECTION PROCESSES. 23
(H) (1) SUBJECT TO COMMISSION APPROVAL, EACH ELECTRIC COMPANY 24
SHALL ESTABLISH AN INTERCONNECTION PROCESS FOR LARGE LOAD C USTOMERS 25
THAT PARTICIPATE IN THE VOLUNTARY CLEAN CAPACITY RATING PROGRAM. 26
(2) THE INTERCONNECTION P ROCESS ESTABLISHED U NDER THIS 27
SECTION MAY NOT UNDU LY IMPACT THE TIME F RAME OR ABILITY OF C USTOMERS 28
THAT ARE NOT LA RGE LOAD CUSTOMERS T O INTERCONNECT WITH THE ELECTRIC 29
SYSTEM. 30
(3) THE INTERCONNECTION PROCESS SHALL INCLUDE: 31
(I) A STANDARD TIMELINE FOR LARGE LOAD CUSTOMERS THAT 32
PARTICIPATE IN THE V OLUNTARY CLEAN CAPACITY RATING PROGRAM B UT DO NOT 33
HAVE A GOLD OR PLATINUM RATING; AND 34
HOUSE BILL 1532 83
(II) A PRIORITIZATION PROCESS FOR LARGE LOAD CUSTOMERS 1
WITH A GOLD OR PLATINUM RATING. 2
(I) BEFORE ENTERING INTO A CONTRACT FOR ELECTRIC SERVICE, A LARGE 3
LOAD CUSTOMER THAT PARTICIPATES IN THE VOLUNTARY CLEAN CAPACITY RATING 4
PROGRAM SHALL SUBMIT A REQ UEST FOR A LOAD STUD Y UNDER § 4–212 OF THIS 5
ARTICLE TO DETERMINE THE NECESSARY CONTRA CT CAPACITY FOR THE LARGE 6
LOAD CUSTOMER. 7
7–306.2. 8
(a) (1) In this section the following words have the meanings indicated. 9
(7) “LMI subscriber” means a subscriber that: 10
(i) is low–income; 11
(ii) is moderate–income; or 12
(iii) resides in a census tract that is: 13
1. an overburdened community; and 14
2. an underserved community. 15
(d) (1) (i) The Commission shall establish and maintain a Community 16
Solar Energy Generating Systems Program. 17
(ii) The structure of the Program is as provided in this subsection. 18
(13) (i) Except as provided in [subparagraph (ii)] SUBPARAGRAPHS (II) 19
AND (III) of this paragraph, a community solar energy generating system may not be located 20
on the same or an adjacent parcel of land as an existing or proposed community solar energy 21
generating system if the total installed capacity of all community solar energy generating 22
systems on the same or adjacent parcel would exceed 5 megawatts. 23
(ii) The prohibition under subparagraph (i) of this paragraph does 24
not apply to projects constructed: 25
1. on the rooftops of buildings; 26
2. in areas that are zoned for industrial use; 27
3. on brownfields locations and clean fill sites; 28
4. over parking lots or roadways; 29
84 HOUSE BILL 1532
5. on multilevel parking structures; 1
6. on or over transportation or public rights–of–way; 2
7. at airports; OR 3
8. on land that: 4
A. was previously zoned for industrial use or is ecologically 5
compromised; and 6
B. is not targeted for mitigation or restoration. [; or 7
9.] (III) THE PROHIBITION UNDER SUBPARAGRAPH (I) 8
OF THIS PARAGRAPH DOES NOT APPLY TO PROJECTS CONSTRUCTED in any location if 9
the combined capacity of all community solar energy generating systems [on the same or 10
adjacent parcel does not exceed 10 megawatts and] DOES NOT EXCEED: 11
1. A. 10 MEGAWATTS ON THE SAME PARCEL; AND 12
B. 20 MEGAWATTS ON ADJACENT PARCELS; AND 13
2. A. at least 75% of the aggregate capacity of the 14
co–located community solar energy generating systems serves LMI subscribers; 15
B. for a site without a community solar energy generating 16
system installed before the start of the Program under paragraph (20) of this subsection, all 17
of the community solar energy generating systems installed after the start of the Program 18
are used for agrivoltaics; or 19
C. for a site with a community solar energy generating system 20
installed before the start of the Program under paragraph (20) of this subsection, each new 21
community solar energy generating system installed after the start of the Program is used 22
for agrivoltaics. 23
7–321. 24
(A) IN THIS SECTION , “PORTABLE SOLAR ENERG Y GENERATING SYSTEM ” 25
MEANS A MOVABLE PHOTOVOLTAIC SOLAR ENERGY GENERATION DEVICE THAT IS: 26
(1) DESIGNED TO BE CONNE CTED TO A BUILDING ’S ELECTRICAL 27
SYSTEM THROUGH A STANDARD ELECTRICAL OUTLET; 28
HOUSE BILL 1532 85
(2) PRIMARILY INTENDED T O OFFSET PART OF THE BUILDING’S 1
ELECTRICITY CONSUMPTION; 2
(3) LIMITED TO SUPPLYING A MAXIMUM POWER OUTPUT OF NOT MORE 3
THAN 1,200 WATTS BACK TO THE ELECTRIC SYSTEM OF THE BUILDING; AND 4
(4) CERTIFIED BY UNDERWRITERS LABORATORY OR AN EQUIVALENT 5
NATIONALLY RECOGNIZED TESTING LABORATORY. 6
(B) A PERSON MAY PURCHASE AND INSTALL NOT MORE THA N ONE 7
PORTABLE SOLAR ENERG Y GENERATING SYSTEM PER ELECTRIC METER F OR 8
RESIDENTIAL USE ONLY. 9
(C) A PORTABLE SOLAR ENERGY GENERATING SYSTEM: 10
(1) IS NOT SUBJECT TO THE REQUIREMENTS OF §§ 7–306 AND 7–306.1 11
OF THIS SUBTITLE; 12
(2) IS NOT ELIGIBLE FOR INCLUSION IN MEETING THE RENEWABLE 13
ENERGY PORTFOLIO STANDARD; AND 14
(3) MAY NOT GENERATE RENEWABLE ENERGY CREDITS OF ANY TYPE. 15
(D) AN ELECTRIC COMPANY: 16
(1) MAY NOT REQUIRE A CU STOMER USING A PORTA BLE SOLAR 17
ENERGY GENERATING SYSTEM TO: 18
(I) OBTAIN THE ELECTRIC COMPANY’S APPROVAL BEFORE 19
INSTALLING OR USING THE PORTABLE SOLAR ENERGY GENERATING SYSTEM; 20
(II) PAY ANY FEE OR CHARGE RELATED TO THE PORTABLE SOLAR 21
ENERGY GENERATING SY STEM’S ABILITY TO FEED EL ECTRICITY BACK INTO THE 22
ELECTRIC SYSTEM; OR 23
(III) EXCEPT AS PROVIDED IN SUBSECTION (E) OF THIS SECTION, 24
INSTALL ANY ADDITIONAL CONTROLS OR EQUIPMENT BEYOND WHAT IS INTEGRATED 25
INTO THE PORTABLE SOLAR ENERGY GENERATING SYSTEM; AND 26
(2) IS NOT LIABLE FOR AN Y DAMAGE CAUSED BY A P ORTABLE SOLAR 27
ENERGY GENERATING SYSTEM. 28
(E) A CUSTOMER USING A PORTABLE SOLAR ENERGY GENERATING SYSTEM 29
SHALL: 30
86 HOUSE BILL 1532
(1) NOTIFY THE ELECTRIC COMPANY PROVIDING SE RVICE IN THE 1
SERVICE TERRITORY IN WHICH THE GENERATING SYSTEM WILL BE INSTALLED 2
BEFORE INSTALLATION; 3
(2) PROVIDE TO THE ELECTRIC COMPANY PROVIDING SERVICE IN THE 4
SERVICE TERRITORY IN WHICH THE GENERATING SYSTEM WILL BE OR IS INSTALLED 5
A CERTIFICATION OF THE SAFETY FEATURES AND MAXIMUM GENERATING CAPACITY 6
OF THE GENERATING SYSTEM; AND 7
(3) IF THE GENERATING SY STEM REQUIRES AN AUTOMATIC LOCKING 8
DISCONNECT SWITCH TO BE INSTALLED, PAY FOR THE SWITCH INSTALLATION. 9
(F) A PORTABLE SOLAR ENERG Y GENERATING SYSTEM THAT HAS A 10
MAXIMUM POWER OUTPUT TO A STANDARD ELECTRICAL OUTLET OF NOT MORE THAN 11
391 WATTS IS EXEMPT FROM PRODUCT LISTING PROVISIONS FROM UNDERWRITERS 12
LABORATORY OR AN EQUIVALENT NATIONALLY RECOGNIZED TESTING LABORATORY 13
THAT WOULD REQUIRE A LTERATIONS TO THE BU ILDING’S PREMISES , WIRING, OR 14
ELECTRICAL PANELS. 15
7–505. 16
(b) (1) The Commission shall issue the orders or adopt the regulations required 17
under this subsection before the implementation of customer choice. 18
(2) The Commission shall order a universal service program, to be made 19
available on a statewide basis, to b enefit low –income customers, in accordance with [§ 20
7–512.1 of this subtitle] § 5–5A–08 OF THE HUMAN SERVICES ARTICLE. 21
(d) (2) (ii) The cap required under paragraph (1) of this subsection applies 22
to the recovery of: 23
3. costs for the universal service program established under 24
[§ 7–512.1 of this subtitle] § 5–5A–08 OF THE HUMAN SERVICES ARTICLE. 25
7–510. 26
(d) (2) A residential electricity supplier: 27
(i) EXCEPT AS PROVIDED I N PARAGRAPH (3)(III) OF THIS 28
SUBSECTION, may offer electricity, other than green power, only at a price that does not 29
exceed [the trailing 12 –month average] THE FOLLOWING PERCEN TAGES of the electric 30
company’s standard offer service rate in the electric company’s service territory as of the date 31
of agreement with the customer: 32
HOUSE BILL 1532 87
1. FOR A TERM NOT TO EXCEED 23 MONTHS, 100%; 1
2. FOR A TERM OF 24 MONTHS TO 35 MONTHS, 105%; 2
AND 3
3. FOR A TERM OF 36 MONTHS, 110%; 4
(ii) may offer residential electricity supply only for a term not to 5
exceed [12] 36 months at a time; 6
(iii) may, for electricity supply other than green power, automatically 7
renew the term only if the electricity supplier provides notice to the customer 90 days before 8
and 30 days before renewal; 9
(iv) may offer green power that meets the requirements of § 7 –707 of 10
this title, but may not automatically renew the term with the customer; 11
(v) [subject to ] EXCEPT AS PROVIDED I N paragraph (3) of this 12
subsection, may not offer a variable rate [other than a rate that adjusts for seasonal 13
variation not more than twice in a single year]; and 14
(vi) may not pay a commission or other incentive–based compensation 15
to an energy salesperson for enrolling customers. 16
(3) [Paragraph (2)(v) of this subsection does not prohibit the offer and use 17
of] A RESIDENTIAL ELECTRICITY SUPPLIER MAY OFFER A VARIABLE RATE THAT: 18
(I) USES time–of–use rates that establish different rates for periods 19
within a single day; 20
(II) ADJUSTS FOR SEASONAL VARIATION NOT MORE THAN TWICE 21
IN A SINGLE YEAR; OR 22
(III) DOES NOT EXCEED THE ELECTRIC COMPANY ’S STANDARD 23
OFFER SERVICE RATE I N THE ELECTRIC COMPA NY’S SERVICE TERRITORY AT ANY 24
TIME DURING THE AGREEMENT WITH THE CUSTOMER. 25
7–510.3. 26
(o) The Commission shall establish procedures for an electric customer that is 27
receiving electricity supply through a community choice aggregator to receive any bill 28
assistance credit or arrearage assistance to which the customer may be entitled under [§ 29
7–512.1 of this subtitle ] § 5–5A–08 OF THE HUMAN SERVICES ARTICLE or any other 30
federal or State bill and arrearage assistance administered by the Office of Home Energy 31
Programs. 32
88 HOUSE BILL 1532
7–1001. 1
(a) In this subtitle the following words have the meanings indicated. 2
(e) (1) “Electric distribution system support services” means the dispatch and 3
control of a distributed energy resource to provide services that contribute to the efficient and 4
reliable operation of the electric distribution system by: 5
(i) an electric company; or 6
(ii) an aggregator acting at the direction of an electric company. 7
(2) “Electric distribution system support services” includes: 8
(i) local or system peak demand reduction; 9
(ii) demand response; 10
(iii) the avoidance or deferra l of a transmission or distribution 11
upgrade or capacity expansion; and 12
(iv) facilitating hosting capacity to accommodate additional 13
distributed energy resources. 14
(i) (1) “Renewable on–site generating system” means an energy system located 15
on a customer’s premises that: 16
(i) generates or stores electricity from a Tier 1 renewable source or a 17
Tier 2 renewable source that does not release greenhouse gases; 18
(ii) is capable of providing electricity to: 19
1. a home, business, or other structure serviced by an electric 20
company; and 21
2. the electric distribution system; 22
(iii) is paired with an energy storage device that is configured to 23
charge from: 24
1. the renewable source; and 25
2. the electric distribution system unless, for the p urpose of 26
eligibility for net energy metering, the device is required to be charged only from the 27
renewable source; and 28
HOUSE BILL 1532 89
(iv) is interconnected and operates in parallel with an electric 1
company’s transmission and distribution facilities. 2
(2) “Renewable on –site generating system” may include bidirectional 3
electric vehicle service equipment located on a customer’s premises. 4
7–1005. 5
(a) The Commission shall develop a program for each investor–owned electric 6
company to establish a pilot program or temp orary tariff to compensate owners and 7
aggregators of distributed energy resources for electric distribution system support services 8
through an incentive mechanism determined by the Commission. 9
7–1006. 10
(a) (1) [The Commission may approve or require an in vestor–owned electric 11
company to ] SUBJECT TO AVAILABLE FUNDING, THE MARYLAND ENERGY 12
ADMINISTRATION, IN CONSULTATION WITH THE COMMISSION, MAY offer upfront 13
incentives or rebates to customers to acquire and install renewable on –site generating 14
systems if the customer: 15
(i) enrolls in a pilot program or temporary tariff established under § 16
7–1005 of this subtitle; and 17
(ii) allows the syste m to be used for electric distribution system 18
support services for a period of not less than 5 years. 19
(2) [The Commission may: 20
(i) authorize or require an investor –owned electric company to 21
provide an additional incentive or rebate for low– or moderate–income customers who apply 22
for an incentive or rebate under this section; and 23
(ii) require an investor–owned electric company to] THE MARYLAND 24
ENERGY ADMINISTRATION, IN CONSULTATION WITH THE COMMISSION, MAY 25
prioritize the offer of incentives o r rebates under this section to low – or moderate–income 26
customers. 27
(b) [In determining whether to require an investor–owned electric company to offer 28
an incentive or rebate under this section, the Commission shall consider: 29
(1) the benefit of reducing the operation of peak generating facilities in 30
overburdened and underserved communities; 31
(2) the benefit of resiliency and service outage avoidance for customers with 32
on–site generating systems; and 33
90 HOUSE BILL 1532
(3) the potential for investor –owned electric comp anies to reduce expenses 1
relating to electric distribution system infrastructure by leveraging customers’ on –site 2
generating systems. 3
(c) The Commission shall consider establishing a limit on the amount of incentives 4
or rebates issued in a manner that ac hieves deployment goals while mitigating potential 5
customer impacts. 6
(d) The Commission shall consult with the ] THE Maryland Energy 7
Administration, when approving [or requiring] an incentive or rebate under this section, 8
[to] SHALL ensure that the incentive or rebate is designed to supplement, to the greatest 9
extent possible, other available State and federal incentives for customer adoption of 10
renewable on–site generating systems. 11
7–1007. 12
(a) An investor–owned electric company may recover all reasonable costs incurred 13
in[: 14
(1)] participating in and administering a program under § 7 –1005 of this 15
subtitle[; and 16
(2) offering an upfront incentive or rebate under § 7–1006 of this subtitle]. 17
(b) To the extent feasible, the costs [listed] in subsection (a) of this section shall be 18
recovered by the investor –owned electric company within the calendar year in which those 19
costs were incurred. 20
(c) Notwithstanding any provision of this subtitle, an inv estor–owned electric 21
company may pursue and use a performance incentive mechanism to cover the cost of using 22
distributed energy resources or an aggregator of distributed resources under this subtitle. 23
7–1201. 24
(a) In this part the following words have the meanings indicated. 25
(g) “Large capacity energy resource” means a generating station or energy storage 26
device that[: 27
(1) on or before January 1, 2025: 28
(i) has applied to PJM for interconnection approval; or 29
(ii) has been approved by PJM for interconnection; and 30
HOUSE BILL 1532 91
(2)] has a capacity rating equal to or greater than 20 megawatts after 1
accounting for the effective load carrying capability. 2
7–1216. 3
(a) The Commission may not approve an application for a nuclear energy 4
generation project submitted under § 7–1212 of this subtitle unless: 5
(1) the project is connected to the electric system serving the State; 6
(2) over the duration of the proposed long –term pricing schedule, the 7
projected net rate impact for an average residential customer, based on annual consumption 8
of 12,000 kilowatt–hours and combined with the projected net rate impact of other nuclear 9
energy generation projects, does not exceed an amount determined by the Commission; 10
(3) over the duration of the proposed long –term pric ing schedule, the 11
projected net rate impact for all nonresidential customers, considered as a blended average 12
and combined with the projected net rate impact of other nuclear energy generation projects, 13
does not exceed a percentage determined by the Commis sion of nonresidential customers’ 14
total annual electric bills; and 15
(4) the price specified in the proposed long –term pricing schedule does not 16
exceed an amount determined by the Commission. 17
(b) When calculating the projected net average rate impacts for nuclear energy 18
generation projects under this section, the Commission shall [apply the same] CONSIDER 19
THE net long –term cost per megawatt –hour APPLIED to residential and nonresidential 20
customers. 21
7–1220. 22
(a) In this section, “zero–emission credit” means [the difference between the price 23
that a nuclear energy generating station with a long –term pricing schedule approved in an 24
order issued under § 7 –1217 of this subtitle may receive on the wholesale market and the 25
cost of constructing the nuclear energy generating station ] A CREDIT EQUAL TO TH E 26
ENVIRONMENTAL ATTRIB UTES OF 1 MEGAWATT–HOUR OF ELECTRICITY THAT IS 27
DERIVED FROM A NUCLE AR ENERGY GENERATING STATION APPROVED BY THE 28
COMMISSION UNDER § 7–1217 OF THIS SUBTITLE. 29
(b) The Commission shall adopt regulations that: 30
(1) establish the nuclear energy long –term pricing purchase obligation 31
sufficiently in advance to allow an electric company to reflect nuclear energy long –term 32
pricing costs a s a nonbypassable surcharge that is added to the electric company’s base 33
distribution rate on customer bills; 34
92 HOUSE BILL 1532
(2) define rules that facilitate and ensure the secure and transparent 1
transfer of revenues and long–term pricing payments among parties; 2
(3) define the terms and procedures of the nuclear energy long–term pricing 3
schedule obligations, including: 4
(i) establishing a formula and process to adjust the value of the 5
long–term pricing schedule every 2 years based on projected wholesale market p rices 6
adjusted by the locational value and earning potential in the PJM region of the nuclear 7
energy generating station; and 8
(ii) establishing a per megawatt hour cap on any long –term pricing 9
schedule specified in an order issued under § 7–1217 of this subtitle; 10
(4) require the Commission to establish an escrow account; and 11
(5) to meet the total statewide long–term pricing purchase obligation for all 12
applications approved in an order issued under § 7 –1217 of this subtitle, require the 13
Commission to annually establish each electric company’s zero –emission credit purchase 14
obligation based on the most recent final electricity sales data as reported by PJM 15
Interconnection and measured at the customer’s meter in proportion to the electric company’s 16
share of statewide load. 17
(c) (1) Each electric company shall procure from the escrow account established 18
by regulation under this section a quantity of zero –emission credits equal to the electric 19
company’s respective percentage of retail electric sales each year. 20
(2) Subject to any escrow account reserve requirement the Commission 21
establishes, if there are insufficient zero –emission credits available to satisfy the electric 22
companies’ zero–emission credit purchase obligations, the overpayment shall be distributed 23
to electric companies to be refunded or credited to each distribution customer based on the 24
customer’s consumption of electricity supply that is subject to the renewable energy portfolio 25
standard. 26
(d) A debt, an obligation, or a liability of a nuclear energy generation project or of 27
an owner or operator of a nuclear energy generation project may not be considered a debt, 28
an obligation, or a liability of the State. 29
(E) (1) SUBJECT TO PARAGRAPH (2) OF THIS SUBSECTION, AND BEFORE 30
THE NUCLEAR EN ERGY GENERATION PROJ ECT BEGINS COMMERCIA L OPERATION , 31
THE COMMISSION MAY APPROVE AN INCREASE OF THE TOTAL COST OF A NUCL EAR 32
ENERGY GENERATION PR OJECT UNDER A LONG –TERM PRICING PURCHAS E 33
OBLIGATION. 34
(2) THE TOTAL COST OF A N UCLEAR ENERGY GENERATION PROJECT 35
THAT MAY BE RECOVERE D UNDER A LONG –TERM PRICING PURCHAS E OBLIGATION 36
HOUSE BILL 1532 93
MAY NOT BE INCREASED BY MORE THAN 15% OF THE ORIGINAL TOTA L PROJECT 1
COST. 2
7–1302. 3
(a) There is a Strategic Energy Planning Office. 4
(b) (1) The head of the Office is the Director. 5
(2) (i) The Director shall be appointed by the Governor with the advice 6
and consent of the Senate. 7
(ii) 1. The term of the Director is 5 years and begins on July 1. 8
2. THE FIRST TERM OF THE DIRECTOR SHALL BEGIN ON 9
JULY 1, 2026. 10
(iii) At the end of a term, the Director continues to serve until a 11
successor is appointed and qualifies. 12
(iv) A Director who is appointed after a term has begun serves for the 13
rest of the term and until a successor is appointed and qualifies. 14
(v) A Director may serve more than one term. 15
(3) The Governor may remove the Director for incompetence or misconduct 16
in accordance with § 3–307 of the State Government Article. 17
(4) The Director is entitled to a salary as provided in the State budget. 18
7–1304. 19
(c) (1) On or before November 1 each year, the Senate Committee on Education, 20
Energy, and the Environment and the House [Economic Matters ] ENVIRONMENT AND 21
TRANSPORTATION Committee may jointly request the Office to assess up to five policy 22
scenarios. 23
(2) Not later than 1 year after the date the Office receives a request under 24
paragraph (1) of this subsection, the Office shall submit a report of the results of the 25
requested policy scenarios to the Senate Committee on Education, Energy, and the 26
Environment and the House [Economic Matters] ENVIRONMENT AND TRANSPORTATION 27
Committee in accordance with § 2–1257 of the State Government Article. 28
Article – Real Property 29
14–134. 30
94 HOUSE BILL 1532
(A) (1) IN THIS SECTION THE F OLLOWING WORDS HAVE THE MEANINGS 1
INDICATED. 2
(2) “DATA CENTER” MEANS A BUILDING OR GROUP OF BUILDINGS: 3
(I) USED TO HOUSE COMPUTER SYSTEMS, COMPUTER STORAGE 4
EQUIPMENT, AND ASSOCIATED INFRA STRUCTURE THAT BUSIN ESSES OR OTHER 5
ORGANIZATIONS USE TO ORGANIZE, PROCESS, STORE, AND DISSEMINATE LARG E 6
AMOUNTS OF DATA; 7
(II) THAT HAS OR IS PROJEC TED TO HAVE AN AGGRE GATE 8
DEMAND OF AT LEAST 5 MEGAWATTS; AND 9
(III) THAT HAS OR IS PROJEC TED TO HAVE A LOAD F ACTOR OF 10
MORE THAN 80%. 11
(3) “DEVELOPMENT DISTRICT ” MEANS AN AREA OR ARE AS WITHIN 12
THE CITY OF BALTIMORE DESIGNATED BY AN ORDINANCE OF THE MAYOR AND CITY 13
COUNCIL OF BALTIMORE. 14
(4) “TAX INCREMENT ” MEANS FOR ANY TAX YE AR THE AMOUNT BY 15
WHICH THE ASSESSABLE BASE AS OF JANUARY 1 PRECEDING THAT TAX Y EAR 16
EXCEEDS THE ORIGINAL TAXABLE VALUE, DIVIDED BY THE ASSESSMENT RATIO USED 17
TO DETERMINE THE ORIGINAL TAXABLE VALUE. 18
(B) THIS SECTION APPLIES ONLY IN BALTIMORE CITY. 19
(C) (1) EXCEPT AS PROVIDED IN PARAGRAPH (2) OF THIS SUBSECTION, A 20
PERSON MAY NOT CONSTRUCT A DATA CENTER I N A DEVELOPMENT DISTRICT THAT 21
IS SUBJECT TO TAX INCREMENT REPAYMENT ON OUTSTANDING BONDS. 22
(2) THE PROHIBITION IN PARAGRAPH (1) OF THIS SUBSECTION DOES 23
NOT APPLY TO THE CON STRUCTION OF A DATA CENTER IN THE CITY–WIDE 24
AFFORDABLE HOUSING DEVELOPMENT DISTRICT ESTABLISHED UNDER 25
BALTIMORE CITY ORDINANCE NO. 24–443, ENACTED DECEMBER 4, 2024. 26
Article – State Finance and Procurement 27
6–226. 28
(a) (2) (i) This paragraph does not apply in fiscal years 2024 through 2028. 29
(ii) Notwithstanding any other provision of law, and unless 30
inconsistent with a federal l aw, grant agreement, or other federal requirement or with the 31
HOUSE BILL 1532 95
terms of a gift or settlement agreement, net interest on all State money allocated by the State 1
Treasurer under this section to special funds or accounts, and otherwise entitled to receive 2
interest earnings, as accounted for by the Comptroller, shall accrue to the General Fund of 3
the State. 4
(iii) The provisions of subparagraph (ii) of this paragraph do not 5
apply to the following funds: 6
212. the Department of Social and Economic Mobility Special 7
Fund; [and] 8
213. the Population Health Improvement Fund; AND 9
214. THE GREEN AND RENEWABLE ENERGY EFFICIENCY 10
FOR NONPROFITS LOAN FUND. 11
13–117. 12
(a) It is the intent of the General Assembly to: 13
(1) recognize the need for State agencies to be responsive to the requests and 14
legislative directives of the General Assembly; 15
(2) reduce the time it takes for State agencies to procure consultants to assist 16
with legislative mandates that have deadlines specified in law; and 17
(3) be timely in addressing climate change, environmental, energy, and 18
greenhouse gas emissions related issues. 19
(b) This section applies only to the procurement of consultants that: 20
(1) are legislatively mandated with specific time frames established in law; 21
and 22
(2) will address issues related only to climate change, the environment, 23
energy, and greenhouse gas emissions. 24
(c) The following units are authorized to issue [competitive sealed bids ] A 25
PROCUREMENT CONTRACT USING A COMPETITIVE SEALED BID METHOD , 26
COMPETITIVE SEALED PROPOSA L METHOD , OR EXPEDITED PROCURE MENT 27
PROCEDURES FOR AMOUNTS higher than their designated small procurement delegation 28
authorities: 29
(1) the Public Service Commission; 30
(2) the Office of People’s Counsel; 31
96 HOUSE BILL 1532
(3) the Maryland Energy Administration; 1
(4) the Department of the Environment; and 2
(5) the Department of Natural Resources. 3
(d) Before awarding a procurement contract under this section, the procurement 4
officer shall obtain the approval of: 5
(1) the head of the unit; and 6
(2) the Chief Procurement Officer, or their designee. 7
(e) (1) The Chief Procurement Officer, or their designee, shall approve a 8
procurement contract submitted under this section if it complies with the requirements of 9
this section. 10
(2) If the Chief Procurement Officer, or their designee, does not RESPOND 11
TO A REQUEST TO approve a procurement contract submitted under this section within 5 12
business days after receiving the contract, the contract shall be considered approved. 13
13–217. 14
(a) In this sect ion, “multi –year contract” means a procurement contract that 15
requires appropriations for more than 1 fiscal year. 16
(b) (1) A unit may enter into a multi–year contract subject to: 17
(i) standards established by the Board; and 18
(ii) regulations adopted by the primary procurement unit that is 19
responsible for the type of procurement involved. 20
(2) A multi–year contract shall be subject to review and approval by that 21
primary procurement unit. 22
(c) A multi –year contract may not be approved unless each un it reviewing the 23
multi–year contract determines that: 24
(1) the estimated requirements of the State: 25
(i) cover the period of the multi–year contract; 26
(ii) are reasonably firm; and 27
(iii) are continuing; and 28
HOUSE BILL 1532 97
(2) the multi –year contract will serve the best interests of the State by 1
encouraging effective competition or otherwise promoting economy in State procurement. 2
(d) (1) If money sufficient for the continued performance of a multi –year 3
contract is not appropriated for any fiscal year, th e multi –year contract terminates 4
automatically on the earlier of: 5
(i) the last day of the fiscal year for which money last was 6
appropriated; or 7
(ii) the date provided in the termination clause of the procurement 8
contract. 9
(2) If the multi–year contract is terminated under this subsection, the unit 10
shall reimburse the contractor for the reasonable value of any nonrecurring costs that were: 11
(i) incurred as a result of the multi–year contract; but 12
(ii) not amortized in the price of the suppl ies or services delivered 13
under the multi–year contract. 14
(3) The cost of termination under this subsection may be paid from any 15
appropriation available for that purpose. 16
(e) Except as provided in subsection (f) of this section, each multi –year contract, 17
including a lease of real property, shall include an automatic termination clause that: 18
(1) is not inconsistent with the requirements of subsection (d) of this section; 19
and 20
(2) discharges both parties to the multi –year contract from future 21
performance of that contract, but not from their existing obligations. 22
(f) (1) On the recommendation of the Secretary of General Services, FOR A 23
MULTI–YEAR CONTRACT TO PRO CURE ENERGY GENERATE D FROM A TIER 1 24
RENEWABLE SOURCE OR A TIER 2 RENEWABLE SOURCE, AS DEFINED IN § 7–701 OF 25
THE PUBLIC UTILITIES ARTICLE, the Board may waive the requirement to include: 26
(I) an automatic termination clause under subsection (e) of this 27
section [for a multi–year contract to procure energy generated from a Tier 1 renewable source 28
or a Tier 2 renewable source, as defined in § 7–701 of the Public Utilities Article]; OR 29
(II) A TERMINATION FOR CO NVENIENCE CLAUSE REQ UIRED 30
UNDER § 13–218(A)(2) OF THIS SUBTITLE. 31
98 HOUSE BILL 1532
(2) In determining whether [or not] to grant a waiver under paragraph (1) 1
of this subsection, the Board shall consider the effect of imposing THE FOLLOWING CLAUSE 2
REQUIREMENTS ON THE ABILITY OF THE ENERGY SUPPLIER TO OBTAIN FINANCING 3
FOR THE RENEWABLE ENERGY GENERATION PROJECT THAT PRODUCES THE ENERGY 4
THAT THE STATE IS CONTRACTING TO PROCURE: 5
(I) the termination clause requirement under subsection (e) of this 6
section [on the ability of the energy supplier to obtain financing for the renewable energy 7
generation project that produces the energy that the State is contracting to procure]; AND 8
(II) THE TERMINATION FOR CONVENIENCE CLAUSE 9
REQUIREMENT UNDER § 13–218(A)(2) OF THIS SUBTITLE. 10
13–218. 11
(a) Each procurement contract shall include clauses covering: 12
(2) termination wholly or partly by the State for its convenience if the head 13
of the primary procurement unit determines that termination is appropriate; 14
(F) IN ACCORDANCE WITH § 13–217(F) OF THIS SUBTITLE, THE BOARD MAY 15
WAIVE THE INCLUSION OF A TERMINATION FOR CONVENIENCE CLAUSE R EQUIRED 16
UNDER SUBSECTION (A)(2) OF THIS SECTION. 17
Article – State Government 18
9–2012. 19
(b) There is an Energy Storage System Grant Program in the Administration. 20
(c) The purpose of the Program is to provide grants to individuals and business 21
entities for a portion of the costs of purchasing and installing energy storage systems. 22
(d) The Administration shall: 23
(1) administer the Program; 24
(2) establish application procedures for the Program; and 25
(3) award grants under the Program. 26
(e) (1) Subject TO PARAGRAPH (2) OF THIS SUBSECTION AND to the 27
availability of money in the Fund, an eligible applicant may apply for a grant under the 28
Program for costs incurred to purchase and install an energy storage system. 29
HOUSE BILL 1532 99
(2) THE ADMINISTRATION MAY RE QUIRE THAT AN APPLIC ANT 1
PARTICIPATE IN A PROGRAM OR TARIFF ESTABLISHED U NDER § 7–1005 OF THE 2
PUBLIC UTILITIES ARTICLE AS A CONDITIO N OF ELIGIBILITY FOR RECEIVING A 3
GRANT UNDER THE PROGRAM. 4
(f) (1) [A] EXCEPT AS PROVIDED IN PARAGRAPH (2) OF THIS 5
SUBSECTION, A grant awarded under the Program may not exceed the lesser of: 6
[(1)] (i) 1. for an energy storage system installed on a residential 7
property, $5,000; or 8
[(ii)] 2. for an energy storage system installed on a commercial 9
property, $150,000; or 10
[(2)] (II) 30% of the total installed costs of the energy storage system. 11
(2) THE AWARD LIMITS IN P ARAGRAPH (1) OF THIS SUBSECTION D O 12
NOT APPLY TO A GRANT PROVIDED TO AN APPLICANT AS AN UPFRONT INCENTIVE OR 13
REBATE UNDER § 7 –1006 OF THE PUBLIC UTILITIES ARTICLE. 14
9–20B–01. 15
(a) In this subtitle the following words have the meanings indicated. 16
(b) “Administration” means the Maryland Energy Administration. 17
9–20B–05. 18
(a) IN THIS SECTION, “DISTRICT ENERGY” HAS THE MEANING STAT ED IN § 19
7–232 OF THE PUBLIC UTILITIES ARTICLE. 20
(A–1) There is a Maryland Strategic Energy Investment Fund. 21
(b) The purpose of the Fund is to implement the Strategic Energy Investment 22
Program. 23
(c) The Administration shall administer the Fund. 24
(d) (1) The Fund is a special, nonlapsing fund that is not subject to § 7 –302 of 25
the State Finance and Procurement Article. 26
(2) The Treasurer shall hold the Fund separately and the Comptroller shall 27
account for the Fund. 28
(e) The Fund consists of: 29
100 HOUSE BILL 1532
(1) all of the proceeds from the sa le of allowances under § 2 –1002(g) of the 1
Environment Article; 2
(2) money appropriated in the State budget to the Program; 3
(3) repayments and prepayments of principal and interest on loans made 4
from the Fund; 5
(4) compliance fees paid under § 7–705 of the Public Utilities Article; 6
(5) money received from any public or private source for the benefit of the 7
Fund; 8
(6) money transferred from the Public Service Commission under § 9
7–207.2(d)(3) of the Public Utilities Article; and 10
(7) money distributed under § 2–614.1 of the Tax – General Article. 11
(f) The Administration shall use the Fund: 12
(1) to invest in the promotion, development, and implementation of: 13
(i) cost–effective energy efficiency and conservation programs, 14
projects, or activities, including measurement and verification of energy savings; 15
(ii) renewable and clean energy resources; 16
(iii) climate change programs directly related to reducing or 17
mitigating the effects of climate change; and 18
(iv) demand response programs that are designed to promote changes 19
in electric usage by customers in response to: 20
1. changes in the price of electricity over time; or 21
2. incentives designed to induce lower electricity use at times 22
of high wholesale market prices or when system reliability is jeopardized; 23
(2) to provide targeted programs, projects, activities, and investments to 24
reduce electricity consumption by customers in the low –income and moderate –income 25
residential sectors; 26
(3) to provide supplemental funds for low–income energy assistance through 27
[the Electric Universal Service Program established under § 7 –512.1 of the Public Utilities 28
HOUSE BILL 1532 101
Article and other ] electric AND FUEL assistance programs in the Department of Human 1
Services; 2
(4) to provide rate relief by offsetting electricity rates of: 3
(I) residential customers, including an offset of surcharges imposed 4
on ratepayers under Title 7, Subtitle 2, Part II of the Public Utilities Article; AND 5
(II) TO THE EXTENT FEASIB LE, RESIDENTS OF APARTME NT 6
HOUSES, AS DEFINED IN § 7–303 OF THE PUBLIC UTILITIES ARTICLE, FOR WHICH 7
ELECTRICITY SERVICE IS PROVIDED THROUGH: 8
1. SUBMETERING AUTHORIZED UNDER § 7–303 OF THE 9
PUBLIC UTILITIES ARTICLE; OR 10
2. AN ENERGY ALLOCATION SYSTEM AS DEFINED IN § 11
7–304 OF THE PUBLIC UTILITIES ARTICLE; 12
(5) to provide grants, loans, and other assistance and investment as 13
necessary and appropriate to implement the purposes of the Program as set forth in § 14
9–20B–03 of this subtitle; 15
(6) to implement energy –related public education and outreach initiatives 16
regarding reducing energy consumption and greenhouse gas emissions; 17
(7) to provide rebates under the Electric Vehicle Recharging Equipment 18
Rebate Program established under § 9–2009 of this title; 19
(8) to provide gr ants to encourage combined heat and power projects at 20
industrial facilities; 21
(9) to provide at least $1,200,000 in each fiscal year for fiscal year 2025 22
through fiscal year 2028 to the Climate Technology Founder’s Fund established under § 23
10–858 of the Economic Development Article; 24
(10) subject to subsection (f–2) of this section, to provide at least $2,100,000 25
in funding each fiscal year to the Maryland Energy Innovation Fund established under § 26
10–835 of the Economic Development Article; 27
(11) to provide at least $500,000 each year to the Resiliency Hub Grant 28
Program Fund under § 9–2011 of this title; 29
(12) to provide grants through the Customer –Sited Solar Program under § 30
9–2016 of this title; 31
102 HOUSE BILL 1532
(13) notwithstanding subsection (g) of this section, to pay costs associated 1
with the Air and Radiation Administration within the Department of the Environment; 2
[and] 3
(14) TO PROVIDE FUNDS TO THE GREEN AND RENEWABLE ENERGY 4
EFFICIENCY FOR NONPROFITS LOAN FUND ESTABLISHED UNDER § 10–868 OF THE 5
ECONOMIC DEVELOPMENT ARTICLE; 6
(15) TO PROVIDE LOANS AND GRANTS FOR: 7
(I) BUILDING ELECTRIFICATION, INCLUDING CONNECTION TO 8
AN ELECTRIFIED DISTRICT ENERGY SYSTEM; 9
(II) ELECTRIFIED THERMAL ENERGY GENERATION ASSETS 10
INTERCONNECTED WITH A DISTRICT ENERGY SYSTEM; AND 11
(III) TRANSPORTATION ELECTRIFICATION; 12
(16) TO PROVIDE LOANS AND GRANTS FOR PROGRAMS, PROJECTS, AND 13
TECHNOLOGIES THAT ASSIST COVERED BUILDINGS, AS DEFINED IN § 2–1601 OF THE 14
ENVIRONMENT ARTICLE, IN MEETING THE BUILD ING ENERGY PERFORMAN CE 15
STANDARDS ESTABLISHED UNDER § 2–1602 OF THE ENVIRONMENT ARTICLE; 16
(17) TO PROVIDE GRANTS FOR RENEWABLE ENERGY PROJECTS UNDER 17
§ 9–20E–02 OF THIS TITLE; 18
(18) IN FISCAL YEAR 2027, TO PROVIDE GRANTS TO ELECTRIC 19
COMPANIES, INCLUDING ELECTRIC C OOPERATIVES AND MUNI CIPAL ELECTRIC 20
UTILITIES, TO PAY DOWN THE COST S INCURRED BY THE ELECTRIC COMPANIES FOR 21
IMPLEMENTING AND ADM INISTERING PROGRAMS AND SERVICES UNDER TITLE 7, 22
SUBTITLE 2, PART II OF THE PUBLIC UTILITIES ARTICLE; 23
(19) IN FISCAL YEAR 2027, TO OFFSET RESIDENTIA L ELECTRIC 24
CUSTOMER COSTS ASSOC IATED WITH THE LIMIT ED–INCOME RATE MECHANIS M 25
REQUIRED UNDER § 4–309 OF THE PUBLIC UTILITIES ARTICLE; 26
(20) IN FISCAL YEAR 2027, TO PROVIDE FUNDING F OR A 27
COMPREHENSIVE STUDY OF PUBLIC SCHOOL HVAC SYSTEMS IN BALTIMORE CITY; 28
(21) IN FISCAL YEAR 2027, TO PROVIDE FUNDING F OR UPGRADES TO 29
PUBLIC SCHOOL HVAC SYSTEMS IN BALTIMORE CITY; 30
HOUSE BILL 1532 103
(22) IN FISCAL YEAR 2027, TO PROVIDE ADDITIONAL FUNDING FOR THE 1
ADMINISTRATION’S RESIDENTIAL AND COMMERCIAL ENERGY STORAGE GRANT 2
PROGRAM; 3
(23) IN FISCAL YEAR 2027, TO PROVIDE ADDITIONAL FUNDING FOR THE 4
REVIEW OF RENEWABLE AND CLEAN ENERGY PRO JECTS THROUGH THE 5
DEPARTMENT OF NATURAL RESOURCES’ POWER PLANT RESEARCH PROGRAM; 6
(24) IN F ISCAL YEAR 2027, TO PROVIDE ADDITIONA L FUNDING FOR 7
HEAT PUMP INSTALLATI ONS AND REPLACEMENTS FOR LOW – AND 8
MODERATE–INCOME HOUSEHOLDS TH ROUGH THE ADMINISTRATION’S 9
RESIDENTIAL ENERGY EQUITY PROGRAM; 10
(25) BEGINNING IN FISCAL YEAR 2028, TO PROVIDE $5,000,000 IN 11
EACH FISCAL YEAR TO THE DEPARTMENT OF NATURAL RESOURCES’ POWER PLANT 12
RESEARCH PROGRAM; 13
(26) BEGINNING IN FISCAL YEAR 2028, $9,000,000 TO PROVIDE 14
GRANTS OR REBATES TO INCENTIVIZE CUSTOMER S TO INSTALL RENEWAB LE 15
ON–SITE GENERATING SYST EMS UNDER § 7–1006 OF THE PUBLIC UTILITIES 16
ARTICLE; 17
(27) TO PROVIDE FUNDING F OR CLEAN ENERGY AND EFFICIENCY 18
PROGRAMS FOR BUILDIN GS, INCLUDING LOW –INCOME HOUSEHOLD ENE RGY 19
EFFICIENCY AND SCHOOL ELECTRIFICATION; 20
(28) TO PROVIDE FUNDING F OR TRANSPORTATION –RELATED 21
EMISSIONS REDUCTION PROGRAMS, INCLUDING ELECTRIC V EHICLE CHARGING 22
INFRASTRUCTURE AND ELECTRIC SCHOOL BUS DEPLOYMENT; 23
(29) TO PROVIDE FUNDING F OR ELECTRIC SYSTEM R ESILIENCY 24
PROGRAMS, INCLUDING MICROGRID INSTALLATION AND RESILIENCY HUBS; 25
(30) FOR ADMINISTRATIVE EXPEN SES OF THE MARYLAND CLEAN 26
ENERGY CENTER; AND 27
(31) to pay the expenses of the Program. 28
(f–1) (1) Any funding provided under subsection (f)(9) of this section that is not 29
spent in a given fiscal year shall revert to the Fund in the following fiscal year. 30
(2) The Administration may provide additional funding for the purposes 31
stated in subsection (f)(9) of this section. 32
104 HOUSE BILL 1532
(f–2) Of the funds transferred to the Maryland Energy Innovation Fund under 1
subsection (f)(10) of this section: 2
(1) at least $1,200,000 may be used to fund the Maryland Clean Energy 3
Center established under § 10–806 of the Economic Development Article; and 4
(2) at least $900,000 may be used to fund the Maryland Energy Innovation 5
Institute established under § 10–829 of the Economic Development Article. 6
(g) Proceeds received by the Fund from the sale of allowances under § 2–1002(g) of 7
the Environment Article shall be allocated as follows: 8
(1) at least 50% shall be credited to an energy assistance account to be used 9
for [the Electric Universal Service Program and other ] electricity AND FUEL assistance 10
programs in the Department of Human Services; 11
(2) at least 20% shall be credited to a low and moderate income efficiency 12
and conservation programs account and to a general efficiency and conservation programs 13
account for energy efficiency and conservation programs, projects, or activities and demand 14
response programs, of which at least one –half shall be targeted to the low and moderate 15
income efficiency and conservation programs account for: 16
(i) the low–income residential sector at no cost to the participants of 17
the programs, projects, or activities; and 18
(ii) the moderate–income residential sector; 19
(3) at least 20% shall be credited to a renewable and clean energy programs 20
account for: 21
(i) renewable and clean energy programs and initiatives; 22
(ii) energy–related public education and outreach; and 23
(iii) climate change and resiliency programs; and 24
(4) up to 10%, but not more than $7,500,000 , shall be credited to an 25
administrative expense account for costs related to the administration of the Fund, including 26
the review of electric company plans for achieving electricity savings and demand reductions 27
that the electric companies are required under law to submit to the Administration. 28
(g–1) [Proceeds] EXCEPT AS PROVIDED IN SUBSECTION (I–2) OF THIS SECTION, 29
PROCEEDS received by the Fund from compliance fees under § 7–705(b)(2)(i)2 of the Public 30
Utilities Article shall be allocated as follows: 31
HOUSE BILL 1532 105
(1) beginning in fiscal year 2025, at least 20% of the proceeds shall be used 1
to provide grants to support the installation of new solar energy generating systems under 2
the Customer–Sited Solar Program; 3
(2) up to 10% of the proceeds shall be credited to an administrative expense 4
account for costs related to the administration of the Fund; 5
(3) proceeds collected but unused from a previous year shall be used before 6
proceeds allocated for the current year; and 7
(4) the Administration shall reallocate to other authorized uses any 8
proceeds that are not used within 3 fiscal years after collection. 9
(h) (1) Energy efficiency and conservation programs under subsection (g)(2) of 10
this section include: 11
(i) low–income energy efficiency programs; 12
(ii) residential and small business energy efficiency programs; 13
(iii) commercial and industrial energy efficiency programs; 14
(iv) State and local energy efficiency programs; 15
(v) demand response programs; 16
(vi) loan programs and alternative financing mechanisms; and 17
(vii) grants to training funds and other organizations supporting job 18
training for deployment of energy efficiency and energy conservation technology and 19
equipment. 20
(2) Energy–related public education and outreach and renewable and clean 21
energy programs and initiatives under subsection (g)(3)(i) and (ii) of this section include: 22
(i) production incentives for specified renewable energy sources; 23
(ii) expansion of existing grant programs for solar, geothermal, and 24
wind programs; 25
(iii) loan programs and alternative financing mechanisms; and 26
(iv) consumer education and outreach programs that are designed to 27
reach low–income communities. 28
(i) (1) Except as provided in paragraphs (2), (3), and (4) of this subsection AND 29
SUBSECTION (I–2) OF THIS SECTION, compliance fees paid under § 7–705(b) of the Public 30
106 HOUSE BILL 1532
Utilities Article may be used only to make loans and grants to support the creation of new 1
Tier 1 renewable energy sources in the State that are owned by or directly benefit: 2
(i) low– to moderate–income communities located in a census tract 3
with an average median income at or below 80% of the average median income for the State; 4
or 5
(ii) overburdened or underserved communities, as defined in § 1–701 6
of the Environment Article. 7
(2) [Compliance] EXCEPT AS PROVIDED IN SUBSECTION (I–2) OF THIS 8
SECTION, COMPLIANCE fees paid under § 7 –705(b)(2)(i)2 of the Public Utilities Article 9
shall be accounted for separately within the Fund and may be used only to make loans and 10
grants to support the creation of new solar energy sources in the State that are owned by or 11
directly benefit: 12
(i) low– to moderate–income communities located in a census tract 13
with an average median income at or below 80% of the average median income for the State; 14
(ii) overburdened or underserved communities, as defined in § 1–701 15
of the Environment Article; or 16
(iii) households with low to moderate income, as defined in § 9 –2016 17
of this title. 18
(3) For fiscal year 2026 only, up to $10 0,000,000 of compliance fees paid 19
under §§ 7–705(b) and 7–705(b)(2)(i)2 of the Public Utilities Article shall be accounted for 20
separately within the Fund and may be used for solar development on State government 21
property and local government clean energy projects. 22
(4) (i) Subject to subparagraphs (ii), (iii), and (iv) of this paragraph, 23
compliance fees paid under § 7 –705 of the Public Utilities Article may be used to provide 24
grants to electric companies to be refunded or credited to each residential dist ribution 25
customer based on the customer’s consumption of electricity supply that is subject to the 26
renewable energy portfolio standard. 27
(ii) The refunding or crediting of amounts to residential distribution 28
customers shall be identified on the customer’s bill as a line item identified as a “legislative 29
energy relief refund”. 30
(iii) An electric company awarded a grant under this paragraph: 31
1. may not retain any of the grant funds to cover overhead 32
expenses; and 33
2. shall provide all of the grant funds to residential 34
distribution customers. 35
HOUSE BILL 1532 107
(iv) The process under subparagraphs (i) and (ii) of this paragraph 1
related to the refunding or crediting of amounts to residential distribution customers shall 2
be directed and overseen by the Commission. 3
(i–1) (1) (i) In this subsection the following words have the meanings 4
indicated. 5
(ii) “Area median income” has the meaning stated in § 4 –1801 of the 6
Housing and Community Development Article. 7
(iii) “Low and moderate income” means having an annual household 8
income that is at or below 120% of the area median income. 9
(2) [Compliance] EXCEPT AS PROVIDED IN SUBSECTION (I–2) OF THIS 10
SECTION, COMPLIANCE fees paid under § 7–705(b–1) of the Public Utilities Article shall be 11
accounted for separately within the Fund and may be used only to make loans and grants 12
to promote increased opportunities for the growth and development of small, minority, 13
women–owned, and veteran–owned businesses in the State that install geothermal systems 14
in the State. 15
(I–2) FOR FISCAL YEARS 2027 AND 2028, $100,000,000 OF COMPLIANCE FEES 16
PAID UNDER § 7–705 OF THE PUBLIC UTILITIES ARTICLE AND DEPOSITED INTO THE 17
FUND IN EACH FISCAL Y EAR MAY BE USED TO P ROVIDE GRANTS FOR RE NEWABLE 18
ENERGY PROJECTS UNDER § 9–20E–02 OF THIS TITLE, INCLUDING ANY ASSOCIATED 19
ADMINISTRATIVE EXPENSES. 20
(j) (1) The Treasurer shall invest the money of the Fund in the same manner 21
as other State money may be invested. 22
(2) Any investment earnings of the Fund shall be paid into the Fund. 23
(3) Any repayment of principal and interest on loans made from the Fund 24
shall be paid into the Fund. 25
(4) Balances in the Fund shall be held for the benefit of the Program, shall 26
be expended solely for the purposes of the Program, and may not be used for the gen eral 27
obligations of government. 28
(k) Expenditures from the Fund shall be made by: 29
(1) an appropriation in the annual State budget; or 30
(2) a budget amendment in accordance with § 7 –209 of the State Finance 31
and Procurement Article. 32
108 HOUSE BILL 1532
(l) An expenditure by budget amendment may be made under subsection (k) of this 1
section only after: 2
(1) the Administration has submitted the proposed budget amendment and 3
supporting documentation to the Senate Budget and Taxation Committee, Senate 4
COMMITTEE ON Education, Energy, and the Environment [Committee], House 5
Appropriations Committee, and House [Economic Matters ] ENVIRONMENT AND 6
TRANSPORTATION Committee; and 7
(2) the committees have had 45 days for review and comment. 8
(m) (1) A loan or grant made available from the Fund to a unit of State or local 9
government shall comply with §§ 14–416 and 17–303 of the State Finance and Procurement 10
Article. 11
(2) At least 80% of workers participating in a project or program that 12
receives money from the Fund must reside wit hin 50 miles of the project or program, or 13
another distance defined by the local jurisdiction where the project or program is located. 14
SUBTITLE 20E. ALTERNATIVE COMPLIANCE FEE AUCTIONS. 15
9–20E–01. 16
(A) IN THIS SUBTITLE THE FOLLOWING WORDS HAVE THE MEANIN GS 17
INDICATED. 18
(B) “ADMINISTRATION” MEANS THE MARYLAND ENERGY ADMINISTRATION. 19
(C) “ALTERNATIVE COMPLIANCE FEE” MEANS A FEE PAID IN ACCORDANCE 20
WITH § 7–705 OF THE PUBLIC UTILITIES ARTICLE TO THE MARYLAND STRATEGIC 21
ENERGY INVESTMENT FUND ESTABLISHED UNDER § 9–20B–05 OF THIS TITLE. 22
(D) “AUCTION” MEANS AN ALTERNATIVE COMPLIANCE FEE AUCTION. 23
(E) “CAPACITY TARGET” MEANS THE LESSER OF: 24
(1) THE CALCULATION OF T HE AMOUNT OF RENEWAB LE ENERGY 25
GENERATION NEEDED IN A GIVEN YEAR TO SATI SFY THE RENEWABLE EN ERGY 26
PORTFOLIO STANDARD UNDER § 7–703 OF THE PUBLIC UTILITIES ARTICLE FOR A 27
SPECIFIC YEAR, MINUS THE AMOUNT ALR EADY PROCURED FROM O THER SOURCES; 28
OR 29
(2) THE AMOUNT OF RENEWA BLE ENERGY THAT CAN BE PROCURED 30
USING ALTERNATIVE COMPLIANCE FEES AVAILABLE FOR THE AUCTION. 31
HOUSE BILL 1532 109
(F) “COMMISSION” MEANS THE PUBLIC SERVICE COMMISSION. 1
(G) “RENEWABLE ENERGY” MEANS: 2
(1) ENERGY GENERATED FROM: 3
(I) A TIER 1 RENEWABLE SOURCE THAT DOES NOT PARTICIPATE 4
IN NET ENERGY METERI NG UNDER § 7–306, § 7–306.2, § 7–306.3, OR § 7–306.4 OF 5
THE PUBLIC UTILITIES ARTICLE; 6
(II) A TIER 1 RENEWABLE SOURCE THAT: 7
1. MEETS THE REQUIREMEN TS OF ITEM (I) OF THIS 8
PARAGRAPH; AND 9
2. INCLUDES A CO–LOCATED ENERGY STORAGE DEVICE; 10
OR 11
(III) AN ENERGY STORAGE DE VICE THAT IS PLANNED TO BE 12
CO–LOCATED WITH A TIER 1 RENEWABLE SOURCE; OR 13
(2) ENERGY FROM AN ENERG Y STORAGE DEVICE THA T IS NOT 14
PLANNED TO BE CO–LOCATED WITH A TIER 1 RENEWABLE SOURCE. 15
(H) “TIER 1 RENEWABLE SOURCE” HAS THE MEANING STATED IN § 7–701 OF 16
THE PUBLIC UTILITIES ARTICLE. 17
9–20E–02. 18
(A) FOR 2027 AND 2028, THE ADMINISTRATION SHALL CONDUCT, IN 19
CONSULTATION WITH THE COMMISSION, AN ANNUAL, COMPETITIVE, ALTERNATIVE 20
COMPLIANCE FEE AUCTION TO AWARD GRANTS T O ELIGIBLE BIDDERS TO OFFSET A 21
PORTION OF PROJECT COSTS ASSOCIATED WITH THE DEVELOPMENT OF RENEWABLE 22
ENERGY IN THE STATE USING REVENUE FROM ALTERNATIVE COMPLIANCE FEES. 23
(B) (1) THE ADMINISTRATION, IN CONSULTATION WITH TH E 24
COMMISSION, SHALL DEVELOP AND CONDUCT THE AUCTIONS IN A MANNER THAT IS 25
COST–EFFECTIVE AND MAINTA INS AND PROMOTES THE DEVELOPMENT OF 26
RENEWABLE ENERGY IN THE STATE. 27
(2) THE COMPETITIVE AUCTI ON PROCESS MAY REQUI RE THE 28
ADMINISTRATION T O SOLICIT A SERIES O F BIDS FROM RENEWABL E ENERGY 29
PROJECT DEVELOPERS FOR THE DEVELOPMENT OF RENEWABLE ENERGY PROJECTS 30
IN A COST–EFFECTIVE MANNER. 31
110 HOUSE BILL 1532
(C) (1) TO BE ELIGIBLE TO SUBMIT A BID UNDER THIS SECTION, A PERSON 1
MUST: 2
(I) BE A RENEWABLE ENERGY PROJECT DEVELOPER; AND 3
(II) MEET THE MINIMUM CRE DIT AND OTHER ELIGIB ILITY 4
REQUIREMENTS SET UNDER PARAGRAPH (2) OF THIS SUBSECTION. 5
(2) THE ADMINISTRATION, IN CONSULTATION WITH THE 6
COMMISSION, SHALL SET ELIGIBILIT Y REQUIREMENTS FOR B IDDERS, INCLUDING 7
REQUIRING EACH BIDDER TO: 8
(I) PROVIDE PROOF OF FINANCIAL INTEGRITY; 9
(II) POST A BOND OR OTHER SIMILAR INSTRUMENT; 10
(III) AGREE TO BE SUBJECT TO ALL APPLICABLE TA XES AND 11
FEES; 12
(IV) DEMONSTRATE THE ABIL ITY TO FINANCE , EXECUTE, AND 13
COMMISSION PROJECTS; 14
(V) PROVIDE, IN ACCORDANCE WITH P ARAGRAPH (3) OF THIS 15
SUBSECTION, EVIDENCE THAT IS SAT ISFACTORY TO THE ADMINISTRATION THAT 16
AWARDED FUNDS ARE NE CESSARY FOR THE RENE WABLE ENERGY PROJECT TO BE 17
CONSTRUCTED; AND 18
(VI) COMPLY WITH ANY OTHE R REQ UIREMENTS THE 19
ADMINISTRATION DETERMINES ARE IN THE PUBLIC INTEREST. 20
(3) THE EVIDENCE PROVIDED UNDER PARAGRAPH (2)(V) OF THIS 21
SUBSECTION SHALL BE PROVIDED TO THE ADMINISTRATION AND MA INTAINED BY 22
THE ADMINISTRATION IN A MANNER THAT KEEPS THE EVIDENCE CONFIDENTIAL. 23
(D) (1) ELIGIBLE BIDDERS SHAL L SUBMIT COMPETITIVE BIDS BY 24
SPECIFYING: 25
(I) THE ACTUAL AMOUNT OF MEGAWATTS TO BE GENERATED BY 26
THE RENEWABLE ENERGY PROJECT; 27
(II) A PRICE PER MEGAWATT THAT WOULD BE REQUIR ED FROM 28
THE AUCTION; AND 29
HOUSE BILL 1532 111
(III) ANY OTHER INFORMATIO N THE ADMINISTRATION 1
DETERMINES IS NECESSARY. 2
(2) (I) SUBJECT TO SUBPARAGRAPH (II) OF THIS PARAGRAPH, THE 3
ADMINISTRATION SHALL RANK BIDS FROM LOWES T TO HIGHEST COST PE R 4
MEGAWATT AND AWARD FUNDS DERIVED FROM ALTERNATIVE COMPLIANCE FEES TO 5
THE LOWEST BID OR BIDS. 6
(II) THE ADMINISTRATION SHALL PRIORITIZE BIDS FOR 7
RENEWABLE ENERGY PROJECTS SPECIFIED IN § 9–20E–01(G)(1) OF THIS SUBTITLE. 8
(3) (I) SUBJECT TO SUBPARAGRAPH (II) OF THIS PARAGRAPH, THE 9
ADMINISTRATION SHALL AWARD BIDS UNTIL THE CAPACITY TARGET IS REACHED. 10
(II) THE ADMINISTRATION MAY RE FUSE TO ACCEPT SOME OR 11
ALL OF THE BIDS MADE IN A COMPETITIVE AUC TION IN ACCORDANCE W ITH 12
STANDARDS ADOPTED BY THE ADMINISTRATION. 13
(4) (I) IF THE CAPACITY TARGET CAN BE MET AT A COST BELOW THE 14
ALLOCATED FUNDING, THE ADMINISTRATION MAY: 15
1. CARRY FORWARD ANY FU NDING TO THE NEXT 16
AUCTION, IF APPLICABLE; OR 17
2. APPLY THE FUNDS FOR ANY ADDITIONAL MEGAWATTS 18
OF RENEWABLE ENERGY THAT HAVE BEEN OFFERED UNDER THE AUCTION. 19
(II) ANY AMOUNT OF ALLOCATED FUNDING THAT IS NOT 20
CARRIED FORWARD OR A PPLIED UNDER SUBPARA GRAPH (I) OF THIS PARAGRAPH 21
SHALL ACCRUE IN THE MARYLAND STRATEGIC ENERGY INVESTMENT FUND AND 22
MAY BE ALLOCATED FOR ANY PURPOSE FOR WHICH ALTERNATIVE COMPLIANCE FEE 23
REVENUE IS AUTHORIZED TO BE USED. 24
(E) (1) THE ADMINISTRATION SHALL SET DELIVERY DEADLIN ES FOR 25
EACH RENEWABLE ENERG Y PROJECT THAT IS AW ARDED FUNDING FROM A N 26
AUCTION. 27
(2) THE DEADLINES SET IN PARAGRAPH (1) OF THIS SUBSECTION 28
SHALL INCLUDE MILEST ONES THAT REQUIRE TH E DEVE LOPER TO MEET CERTAI N 29
DELIVERY GOALS DURING THE DEVELOPMENT OF A RENEWABLE ENERGY PROJECT. 30
(3) THE ADMINISTRATION MAY GR ANT EXTENSIONS FOR D ELIVERY 31
GOALS THAT ARE DELAY ED DUE TO INTERCONNE CTION OR PERMITTING 32
112 HOUSE BILL 1532
CHALLENGES OR DELAYS IF THE DEVELOPER PRO VIDES DOCUMENTATION OF T HE 1
CHALLENGE OR DELAY. 2
(4) THE ADMINISTRATION SHALL ESTABLISH A METHOD O F 3
COLLECTION AGAINST ANY DEVELOPER AWARDED A GRANT UNDER THIS SECTION TO 4
RECAPTURE ANY FUNDS RECEIVED AS A RESULT OF: 5
(I) MISAPPROPRIATION, OVERPAYMENT, OR FRAUD; OR 6
(II) FAILURE TO MEET MILESTONES OR DELIVERY DATES. 7
(F) WITHIN 90 DAYS AFTER ALL GRANT S FOR RENEWABLE ENER GY 8
PROJECTS ARE EXECUTED, THE ADMINISTRATION SHALL PUBLICLY DISCLOSE THE 9
NAMES OF EACH SUCCES SFUL BIDDER AND THE MEGAWATTS TO BE DELIVERED BY 10
THE DEVELOPMENT OF THE RENEWABLE ENERGY PROJECT. 11
(G) ON OR BEFORE JULY 1, 2027, AND JULY 1, 2028, THE ADMINISTRATION, 12
IN CONSULTATION WITH THE COMMISSION, SHALL REPORT TO THE GENERAL 13
ASSEMBLY, IN ACCORDANCE WITH § 2–1257 OF THIS ARTICLE , ON THE 14
ADMINISTRATION OF THE IMMEDIATELY PRECEDING AUCTION, INCLUDING: 15
(1) THE AMOUNT OF MEGAWA TTS OR MEGAWATT –HOURS, AS 16
APPLICABLE, THAT RECEIVED FINANCIAL SUPPORT THROUGH THE AUCTION; 17
(2) THE COST PER MEGAWATT OF RENEWABLE ENERGY ALLOCATED IN 18
THE AUCTION; 19
(3) THE NUMBER OF RENEWABLE ENERGY CREDITS PROJECTED TO BE 20
CREATED AS A RESULT OF THE AUCTION; AND 21
(4) ANY OTHER INFORMATIO N THE ADMINISTRATION AND TH E 22
COMMISSION CONSIDER RELEVANT. 23
Chapter 7 of the Acts of the 2025 Special Session 24
SECTION 2. AND BE IT FURTHER ENACTED, That: 25
(a) (1) The Public Service Commission shall study the effectiveness of an 26
independent distribution operator. 27
(2) On or before December 31, [2026] 2027, the Public Service Commission 28
shall submit to the General Assembly, in accordance with § 2–1257 of the State Government 29
Article, a report on the study required under paragraph (1) of this subsection. 30
HOUSE BILL 1532 113
(b) (1) The Department of Transportation shall study methods for reducing 1
transmission–constrained areas through the use of existing rights–of–way. 2
(2) On or before December 31, [2026] 2027, the Department of 3
Transportation shall submit to the General Assembly, in accordance with § 2 –1257 of the 4
State Government Article, a report on the study required under parag raph (1) of this 5
subsection. 6
(c) (1) (i) The Maryland Energy Administration shall obtain existing power 7
flow analyses for electric system reliability in the State that are related to currently known 8
electric generation facility retirements. 9
(ii) If the Maryland Energy Administration is unable to obtain the 10
existing power flow analyses under subparagraph (i) of this paragraph, then the 11
Administration, with the support of the Public Service Commission, shall develop a power 12
flow analysis for electric s ystem reliability in the State that is related to currently known 13
electric generation facility retirements. 14
(iii) On or before January 1, [2026] 2027, the Maryland Energy 15
Administration shall submit to the Governor and, in accordance with § 2–1257 of the State 16
Government Article, the General Assembly a report on the power flow analyses required 17
under this paragraph. 18
(2) (i) On or before [December 31, 2025, and on or before] December 31, 19
2026, the Maryland Energy Administration shall provide to the Ge neral Assembly, in 20
accordance with § 2 –1257 of the State Government Article, an update on the status of the 21
National Renewable Energy Laboratory’s analysis on resource adequacy conducted at the 22
request of the Administration. 23
(ii) On receipt of the Nat ional Renewable Energy Laboratory’s final 24
analysis on resource adequacy, the Maryland Energy Administration shall submit a final 25
report on the analysis to the General Assembly, in accordance with § 2 –1257 of the State 26
Government Article. 27
Chapter 19 of the Acts of the 2025 Special Session 28
SECTION 2. AND BE IT FURTHER ENACTED, That: 29
(a) (1) The Public Service Commission shall study the effectiveness of an 30
independent distribution operator. 31
(2) On or before December 31, [2026] 2027, the Public Service Commission 32
shall submit to the General Assembly, in accordance with § 2–1257 of the State Government 33
Article, a report on the study required under paragraph (1) of this subsection. 34
114 HOUSE BILL 1532
(b) (1) The Department of Transportation shall study methods for reducin g 1
transmission–constrained areas through the use of existing rights–of–way. 2
(2) On or before December 31, [2026] 2027, the Department of 3
Transportation shall submit to the General Assembly, in accordance with § 2 –1257 of the 4
State Government Article, a report on the study required under paragraph (1) of this 5
subsection. 6
(c) (1) (i) The Maryland Energy Administration shall obtain existing power 7
flow analyses for electric system reliability in the State that are related to currently known 8
electric generation facility retirements. 9
(ii) If the Maryland Energy Administration is unable to obtain the 10
existing power flow analyses under subparagraph (i) of this paragraph, then the 11
Administration, with the support of the Public Service Commission, shall develop a power 12
flow analysis for electric system reliability in the State that is related to currently known 13
electric generation facility retirements. 14
(iii) On or before January 1, [2026] 2027, the Maryland Energy 15
Administration shall submit to the Governor and, in accordance with § 2–1257 of the State 16
Government Article, the General Assembly a report on the power flow analyses required 17
under this paragraph. 18
(2) (i) On or before [December 31, 2025, and on or before] December 31, 19
2026, the Maryland Energy Administration shall provide to the General Assembly, in 20
accordance with § 2 –1257 of the State Government Article, an update on the status of the 21
National Renewable Energy Laboratory’s analysis on resource adequacy conducted at the 22
request of the Administration. 23
(ii) On receipt of the National Renewable Energy Laboratory’s final 24
analysis on resource adequacy, the Maryland Energy Administration shall submit a final 25
report on the analysis to the General Assembly, in accordance with § 2 –1257 of th e State 26
Government Article. 27
SECTION 5. AND BE IT FURTHER ENACTED, That the Laws of Maryland read 28
as follows: 29
Article – Public Utilities 30
4–213. 31
(a) This section applies only to a public service company that is an electric 32
company, a gas company, or a combination gas and electric company. 33
(b) Unless otherwise authorized by law, the Commission may approve the use of a 34
multiyear rate plan for distribution base rates only if the plan: 35
HOUSE BILL 1532 115
(1) demonstrates the customer benefits of the investment; and 1
(2) does not allow for: 2
(I) the public service company to file for reconciliation of cost or 3
revenue variances of the approved revenue component used by the Commission to establish 4
just and reasonable rates IF THE RECONCILIATIO N WOULD RESULT IN AD DITIONAL 5
CHARGES TO CUSTOMERS; OR 6
(II) THE USE OF COST –SHARING MECHANISMS T HAT WOULD 7
RESULT IN ADDITIONAL CHARGES TO CUSTOMERS ABOVE THE APPROVED REVENUE 8
COMPONENT USED BY TH E COMMISSION TO ESTABLI SH JUST AND REASONAB LE 9
RATES. 10
(c) A public service company that files or has filed an application for a multiyear 11
rate plan may not subsequently file for reconciliation of cost or revenue variances [of] THAT 12
WOULD RESULT IN ADDI TIONAL CHARGES TO CU STOMERS DUE TO THE P UBLIC 13
SERVICE COMPANY SPENDING MORE THAN the approved revenue component used by the 14
Commission to establish the multiyear rates unless the filing for reconciliation was made on 15
or before January 1, 2025. 16
(D) FOR MULTIYEAR RATE PLANS APPROVED AFTER JANUARY 1, 2026, THE 17
COMMISSION MAY REQUIR E A PUBLIC SERVICE COMPA NY TO INCLUDE A 18
RECONCILIATION PROCE DURE IN ITS MULTIYEA R RATE PLAN TO REFUN D 19
CUSTOMERS THE DIFFERENCE BETWEEN: 20
(1) THE PUBLIC SERVICE C OMPANY’S APPROVED REVENUE 21
REQUIREMENT; AND 22
(2) THE PUBLIC SERVICE C OMPANY’S ACTUAL REVENUE 23
REQUIREMENT DURING THE TERM OF THE MULTIYEAR RATE PLAN. 24
4–504. 25
(a) (1) IN THIS SECTION THE F OLLOWING WORDS HAVE THE MEANINGS 26
INDICATED. 27
(2) (I) “BONUS” MEANS A FORM OF DIRECT OR INDIRECT PAYMENT, 28
CONSIDERATION, OR COMPENSATION THAT IS PAID OR CONVEYED TO AN EMPLOYEE 29
OF A PUBLIC SERVICE COMPANY IN ADDITION TO THE EMPLOYEE’S BASE PAY. 30
(II) “BONUS” INCLUDES: 31
116 HOUSE BILL 1532
1. COMPENSATION THAT THE PUBLIC SERVICE COMPANY 1
DOES NOT FORMALLY LABEL AS A BONUS PAYMENT; 2
2. ANY FORM OF INCENTIV E COMPENSATION THE FACT 3
AND AMOUNT OF WHICH IS UNDER THE DISCRET ION OF THE PUBLIC SE RVICE 4
COMPANY UNTIL A TIME CLOSE TO THE END OF THE PERIOD FOR WHICH THE 5
INCENTIVE PAYMENT IS PAID; AND 6
3. PAYMENTS GIVEN IN ADDITION TO BASE PAY THAT ARE 7
CONTINGENT ON THE OCCURRENCE OF ONE OR MORE EVENTS OR CONDITIONS. 8
(3) (I) “COMPENSATION” MEANS A FORM OF PAYM ENT OR 9
CONSIDERATION CONVEYED TO OR FOR THE BENEFIT OF AN EMPLOYEE OF A PUBLIC 10
SERVICE COMPANY, THE PARENT COMPANY OF A PUBLIC SERVICE COMPANY, OR ANY 11
OTHER AFFILIATE OF A PUBLIC SERVICE COMPA NY IN CONNECTION WIT H THE 12
EMPLOYEE’S WORK FOR A PUBLIC SERVICE COMPANY. 13
(II) “COMPENSATION” INCLUDES: 14
1. DIRECT AND INDIRECT METHODS OF CONFERRIN G 15
BENEFITS; 16
2. CASH AND NONCASH BENEFITS; 17
3. SALARY, BONUSES, PERIOD PAYMENTS, AND 18
SEVERANCE PAY; AND 19
4. THE VALUE OF A PERQU ISITE, COMPENSATORY OR 20
PAID LEAVE, OR OTHER BENEFIT NOT EXCLUDED UNDER SUBPA RAGRAPH (III) OF 21
THIS PARAGRAPH. 22
(III) “COMPENSATION” DOES NOT INCLUDE ANY EXPENDITURE 23
OF A PUBLIC SERVICE COMPANY FOR HEALTH, MEDICAL, DENTAL, VISION, OR LIFE 24
INSURANCE OR DISABILITY PAY. 25
(4) “SUPERVISOR” MEANS AN EMPLOYEE OF A PUBLIC SERVICE 26
COMPANY, THE PARENT COMPANY O F A PUBLIC SERVICE C OMPANY, OR ANY OTHER 27
AFFILIATE OF A PUBLIC SERVICE COMPANY WHO: 28
(I) USING THE EMPLOYEE’S INDEPENDENT JUDGMENT: 29
1. IS AUTHORIZED BY THE EMPLOYEE’S EMPLOYER TO 30
HIRE, TRANSFER, SUSPEND, LAY OFF , RECALL, PROMOTE, DISCHARGE, ASSIGN, 31
REWARD, OR DISCIPLINE OTHER EMPLOYEES; 32
HOUSE BILL 1532 117
2. IS RESPONSIBLE FOR D IRECTING THE WORK 1
PERFORMANCE OF OTHER EMPLOYEES; AND 2
3. IS RESPONSIBLE FOR R ESPONDING TO EMPLOYE E 3
COMPLAINTS; OR 4
(II) IS EMPLOYED IN A BONA FIDE EXECUTIVE CAPACITY UNDER 5
THE FEDERAL FAIR LABOR STANDARDS ACT. 6
(B) This section applies only to a public service company that is an investor–owned 7
electric company, gas company, or combination gas and electric company. 8
[(b)] (C) A public service company may not recover through rates any costs 9
associated with: 10
(1) membership, dues, sponsorships, or contributions to an industr y trade 11
association, group, or related entity exempt from taxation under § 501(c)(6) of the Internal 12
Revenue Code; [or] 13
(2) the acquisition, use, or allocation of costs associated with a private plane 14
that is owned or leased by the public service company or its holding company; OR 15
(3) COMPENSATION FOR A SUPERVISOR THAT EXCEEDS 110% OF THE 16
MAXIMUM ANNUAL SALARY PAYABLE TO THE CHA IR OF THE COMMISSION FOR THE 17
SAME CALENDAR YEAR. 18
(D) (1) THE BOARD OF DIRECTOR S OF EACH PUBLIC SER VICE COMPANY 19
SHALL ADOPT A COMPANY–WIDE POLICY PLACING REASONABLE COST LIMITATIONS 20
ON EXPENDITURES THAT THE PUBLIC SERVICE C OMPANY INTENDS TO RE COVER 21
THROUGH RATES FOR: 22
(I) ENTERTAINMENT AND EVENTS; 23
(II) OFFICE AND FACILITY RENOVATIONS; 24
(III) TRANSPORTATION SERVICES, INCLUDING AVIATION; 25
(IV) STAFF DEVELOPMENT ACTIVITIES OR EVENTS; 26
(V) PERFORMANCE INCENTIVES; AND 27
(VI) OTHER ACTIVITIES OUT SIDE THE SCOPE OF TH E NORMAL 28
COURSE OF BUSINESS OPERATIONS. 29
118 HOUSE BILL 1532
(2) EACH PUBLIC SERVICE C OMPANY SHALL SEND A COPY OF THE 1
POLICY ADOPTED UNDER PA RAGRAPH (1) OF THIS SUBSECTION T O THE 2
COMMISSION: 3
(I) AS SOON AS PRACTICABLE; AND 4
(II) EACH TIME THE POLICY IS UPDATED, BUT NOT LESS THAN 5
ONCE EVERY 5 YEARS. 6
(3) THE COMMISSION MAY REVIEW IN A BASE RATE PROCEEDING THE 7
REASONABLENESS OF TH E COST LIMITATIONS I N A POLICY ADOPTED U NDER 8
PARAGRAPH (1) OF THIS SUBSECTION. 9
7–306. 10
(a) (1) In this section the following words have the meanings indicated. 11
(2) “Biomass” means “qualified biomass” as defined in § 7–701 of this title. 12
(3) “Closed conduit hydro” means a hydroelectric generating facility that: 13
(i) generates electricity within existing piping or limited adjacent 14
piping of a potable water supply system; 15
(ii) is owned or operated by a municipal corporation or public water 16
authority; and 17
(iii) is designed to produce less energy than is consumed to operate the 18
water supply system. 19
(4) “COMMUNITY SOLAR ENERG Y GENERATING SYSTEM ” HAS THE 20
MEANING STATED IN § 7–306.2 OF THIS SUBTITLE. 21
(5) “COMMUNITY SOLAR ENERGY GENERATING SY STEM PROGRAM ” 22
MEANS A PROGRAM ADMI NISTERED BY AN ELECT RIC COMPANY IN ACCOR DANCE 23
WITH § 7–306.2 OF THIS SUBTITLE. 24
[(4)] (6) “Eligible customer–generator” means a customer that owns and 25
operates, leases and operates, or contracts with a third party that owns and operates a 26
biomass, micro combined heat and power, solar, fuel cell, wind, or closed conduit hydro 27
electric generating facility that: 28
(i) is located on the customer’s premises or contiguous property; 29
HOUSE BILL 1532 119
(ii) is interconnec ted and operated in parallel with an electric 1
company’s transmission and distribution facilities; and 2
(iii) is intended primarily to offset all or part of the customer’s own 3
electricity requirements. 4
[(5)] (7) “Fuel cell” means an electric generating facility that: 5
(i) includes integrated power plant systems containing a stack, 6
tubular array, or other functionally similar configuration used to electrochemically convert 7
fuel to electric energy; and 8
(ii) may include: 9
1. an inverter and fuel processing system; and 10
2. other plant equipment to support the plant’s operation or 11
its energy conversion, including heat recovery equipment. 12
[(6)] (8) “Micro combined heat and power” means the simultaneous or 13
sequential production of useful t hermal energy and electrical or mechanical power not 14
exceeding 30 kilowatts. 15
[(7)] (9) “Net energy metering” means measurement of the difference 16
between the electricity that is supplied by an electric company and the electricity that is 17
generated by an eligible customer–generator and fed back to the electric grid over the eligible 18
customer–generator’s billing period. 19
[(8)] (10) “Net excess generation” means the amount of the electricity 20
generated by an eligible customer –generator that is in excess of the electricity consumed by 21
the eligible customer–generator and that results in a negative kilowatt –hour reading at the 22
end of the eligible customer–generator’s billing cycle. 23
(11) (I) “REPOWERED” MEANS A SOLAR ENERGY GENERATING 24
SYSTEM OWNED BY AN ELIGIBLE CUSTOMER–GENERATOR OR A COMMU NITY SOLAR 25
ENERGY GENERATING SY STEM THAT, THROUGH A SINGLE ACT ION OR A SERIES OF 26
ACTIONS, HAS HAD REPLACED MOR E THAN 80% OF THE DIRECT CURREN T 27
NAMEPLATE CAPACITY OF THE PHOTOVOLTAIC MODULES AT THE SYSTEM AS OF THE 28
DATE THE SYSTEM WAS ORIGINALLY PLACED IN SERVICE UNDER THIS SECTION. 29
(II) “REPOWERED” DOES NOT INCLUDE: 30
1. ROUTINE EQUIPMENT RE PAIR AND MAINTENANCE , 31
INCLUDING THE REPLAC EMENT OF EQUIPMENT D URING ROUTINE REPAIR AND 32
120 HOUSE BILL 1532
MAINTENANCE WITH EQU IPMENT THAT HAS S IMILAR OR IMPROVED R ATINGS, 1
IMPEDANCES, EFFICIENCIES, OR CAPABILITIES; 2
2. ROOF REPLACEMENT OR OTHER PROJECT SITE 3
MAINTENANCE; 4
3. THE REMEDIATION OF EQUIPMENT DEFECTS; 5
4. THE REMEDIATION OF DAMAGE CAUSED BY A NATURAL 6
DISASTER, AN ACT OF GOD, FIRE, VANDALISM, THEFT, OR ANOTHER CASUALTY 7
EVENT; OR 8
5. REPLACEMENTS REQUIRE D BY A GOVERNMENTAL 9
AUTHORITY OR ELECTRIC COMPANY. 10
(d) (1) The Commission shall require electric utilities to develop a standard 11
contract or tariff for net energy metering and make it available to eligible 12
customer–generators on a first–come, first–served basis until THE EARLIER OF: 13
(I) THE DATE ON WHICH the rated generating capacity owned and 14
operated by eligible customer–generators in the State reaches 3,000 megawatts; OR 15
(II) JULY 1, 2027. 16
(2) NOTWITHSTANDING PARAG RAPH (1)(II) OF THIS SUBSECTION 17
AND EXCEPT AS PROVID ED IN PARAGRAPH (3) OF THIS SUBSECT ION, IF THE 18
3,000–MEGAWATT LIMIT IN PARAGRAPH (1)(I) OF THIS SUBSECTION HAS NOT BEEN 19
MET, A COMMUNITY SOLAR EN ERGY GENERATING SYST EM THAT IS PLACED IN 20
SERVICE AFTER JULY 1, 2027, SHALL BE ELIGIBLE FO R NET ENERGY METERIN G 21
UNDER THIS SECTION IF: 22
(I) THE SYSTEM: 23
1. ON OR BEFORE JULY 1, 2027, RECEIVED A 24
COMMUNITY SOLAR PROGRAM QUEUE POSITION UNDER § 7–306.2 OF THIS SUBTITLE 25
AND PAID A DEPOSIT T O THE ELECTRIC COMPANY EQUAL TO AT LEAST 50% OF THE 26
ELECTRIC COMPANY’S ESTIMATE OF ALL NECESSARY INTERCONNECTION FEES; AND 27
2. EXCEPT AS PROVIDED I N PARAGRAPH (4) OF THIS 28
SUBSECTION, IS PLACED IN SERVICE ON OR BEFORE JULY 1, 2030; AND 29
(II) THE ELECTRIC COMPANY IN WHOSE SERVICE TER RITORY 30
THE COMMUNITY SOLAR ENERGY GENERATING SY STEM IS LOCATED HAS NOT MET 31
HOUSE BILL 1532 121
THE NET ENERGY METER ING CAPACITY LIMIT U NDER PARAGRAPH (3)(I) OF THIS 1
SUBSECTION. 2
(3) (I) SUBJECT TO SUBPARAGRA PHS (II) AND (III) OF THIS 3
PARAGRAPH, FOR AN ELECTRIC COMP ANY WITH A 2025 ANNUAL PEAK DEMAND O F 4
2,500 MEGAWATTS OR LESS , THE NET ENERGY METER ING CAPACITY LIMIT FOR 5
COMMUNITY SOLAR ENERGY GENERATING SYSTEMS THAT ARE PLACED IN SERVICE 6
IN THE ELECTRIC COMP ANY’S SERVICE TERRITORY ON OR AFTER APRIL 1, 2026, 7
SHALL BE 150% OF THE TOTAL COMBINE D RATED GENERATING C APACITY OF 8
COMMUNITY SOLAR ENERGY GENERATING SYSTEMS THAT HAD NOT BEEN PLACED IN 9
SERVICE BUT HOLD QUE UE POSITIONS IN A CO MMUNITY SOLAR ENERGY 10
GENERATING SYSTEM PROGRAM IN THE ELECTRIC COMPANY’S SERVICE TERRITORY 11
ON APRIL 1, 2026. 12
(II) IF THE 150% NET ENERGY METERING CAPACITY LIMIT 13
ESTABLISHED UNDER SUBPARAGRAPH (I) OF THIS PARAGRAPH IN AN ELECTRIC 14
COMPANY’S SERVICE TERRITORY IS REACHED, THE ELECTRIC COMPANY SHALL: 15
1. CLOSE THE NET ENERGY METERING CONTRACT OR 16
TARIFF UNDER THIS SE CTION TO ANY COMMUNI TY SOLAR ENERGY GENE RATING 17
SYSTEMS THAT DO NOT ALREADY HOLD QUEUE POSITIONS; AND 18
2. NOTIFY THE COMMISSION. 19
(III) A COMMUNITY SOLAR ENER GY GENERATING SYSTEM 20
HOLDING A QUEUE POSITION IN A COMMUNITY SOLAR ENERGY GENERATING SYSTEM 21
PROGRAM IN THE ELECT RIC COMPANY’S SERVICE TERRITORY THAT IS PLACED IN 22
SERVICE ON OR AFTER APRIL 1, 2026, SHALL CONTINUE TO CO UNT TOWARD THE 23
150% NET ENERGY METERING CAPACITY LIMIT ESTAB LISHED UNDER 24
SUBPARAGRAPH (I) OF THIS PARAGRAPH. 25
(4) (I) IF THE COMMISSION DOES NOT I MPLEMENT A SUCCESSOR 26
PROGRAM UNDER § 7–306.4 OF THIS SUBTITLE BY JULY 1, 2027, A COMMUNITY 27
SOLAR ENERGY GENERATING SYSTEM THAT HAS NOT BEEN PLACED IN S ERVICE BY 28
JULY 1, 2027, BUT MEETS THE REQUIR EMENTS OF PARAGRAPH (2)(I)1 AND (II) OF 29
THIS SUBSECTION SHAL L BE ELIGIBLE FOR NE T ENERGY METERING UNDER THIS 30
SECTION IF IT IS PLACED IN SERVICE ON OR BEFORE 3 YEARS AFTER THE DATE THAT 31
THE SUCCESSOR PROGRAM IS IMPLEMENTED. 32
(II) THE COMMISSION MAY GRANT AN EXTENSION TO THE 33
DEADLINES UNDER PARAGRAPH (2)(I) OF THIS SUBSECTION AND SUBPARAGRAPH (I) 34
OF THIS PARAGRAPH IF THE COMMUNITY SOLAR ENERGY GENERATING SYSTEM WAS 35
UNABLE TO MEET THE D EADLINE, INCLUDING INABILITY TO MEET THE DEADLINE 36
DUE TO ANY OF THE FOLLOWING REASONS: 37
122 HOUSE BILL 1532
1. A FORCE MAJEURE EVEN T, AS DETERMINED BY THE 1
COMMISSION; 2
2. FAILURE B Y A GOVERNMENT OR MU NICIPAL 3
AUTHORITY TO TIMELY COMPLETE AN ACTION N ECESSARY TO AUTHORIZ E OR 4
ENABLE ANY PORTION OF THE PROJECT CONSTRUCTION; 5
3. FAILURE OF AN ELECTRIC COMPANY TO COMPLY WITH 6
A COMMISSION ORDER, REGULATION, STATUTE, OR TARIFF; OR 7
4. THE SYSTEM IS READY TO BE PLACED IN SERVICE AND 8
IS WAITING ONLY ON T HE ELECTRIC COMPANY TO GRANT THE SYSTEM PERMISSION 9
TO OPERATE. 10
(5) AN ELIGIBLE CUSTOMER–GENERATOR THAT, ON JULY 1, 2027, IS 11
UNDER A NET ENERGY METERING CONTRACT OR TARIFF UNDER THIS SECTION OR A 12
COMMUNITY SOLAR ENERGY GENERATING SYSTEM THAT MEETS THE REQUIREMENTS 13
OF PARAGRAPH (2) OF THIS SUBSECTION SHALL REMAIN ELIGIBLE FOR NET ENERGY 14
METERING UNDER THIS SECTION UNTIL THE EARLIER OF WHEN: 15
(I) THE SYSTEM IS DECOMM ISSIONED IN ACCORD ANCE WITH § 16
7–218(G) OF THIS TITLE; 17
(II) THE SYSTEM IS MODIFIED TO INCREASE: 18
1. THE NET POWER FLOW I NJECTION INTO THE 19
ELECTRIC SYSTEM DUE TO THE ADDITION OF MORE PHOTOVOLTAIC MODULES THAN 20
WERE PRESENT AS OF THE DATE THE SYSTEM WAS ORIGINALLY PLACED IN SERVICE 21
UNDER THIS SECTION; OR 22
2. THE ALTERNATING CURR ENT OUTPUT CAPACITY TO 23
BE MORE THAN WHEN THE SYSTEM WAS ORIGINALLY PLACED INTO SERVICE UNDER 24
THIS SECTION; 25
(III) THE SYSTEM ENTERS IN TO A NEW INTERCONNEC TION 26
AGREEMENT; OR 27
(IV) THE SYSTEM IS REPOWERED. 28
(j) On or before November 1 of each year, the Commission shall report to the 29
General Assembly, in accordance with § 2 –1257 of the State Government Article, on the 30
status of the net ENERGY metering program under this section AND § 7–306.4 OF THIS 31
SUBTITLE, including: 32
HOUSE BILL 1532 123
(1) the amount of capacity of electric generating facilities owned and 1
operated by eligible customer–generators in the State by type of energy resource; 2
(2) based on the need to encourage a diversification of the State’s energy 3
resource mix to ensure reliability, whether the rated generating capacity limit in subsection 4
(d) of this section should be altered; [and] 5
(3) THE STATUS OF THE IM PLEMENTATION AND EFFICACY OF THE 6
SUCCESSOR PROGRAM DE VELOPED AND IMPLEMEN TED UNDER § 7–306.4 OF THIS 7
SUBTITLE; AND 8
(4) other pertinent information. 9
7–306.4. 10
(A) (1) IN THIS SECTION THE F OLLOWING WORDS HAVE THE MEANINGS 11
INDICATED. 12
(2) “ELIGIBLE CUSTOMER–GENERATOR” HAS THE MEANING STAT ED 13
IN § 7–306 OF THIS SUBTITLE. 14
(3) “NET ENERGY METERING” HAS THE MEANING STATED IN § 7–306 15
OF THIS SUBTITLE. 16
(B) IT IS THE INTENT OF THE GENERAL ASSEMBLY TO TRANSITION TO A NET 17
ENERGY METERING PROGRAM THAT: 18
(1) INCREASES BENEFITS TO RATEPAYE RS BY LOWERING ELECT RIC 19
SYSTEM COSTS THROUGH THE USE OF FLEXIBLE CUSTOMER–SITED RENEWABLE 20
ENERGY RESOURCES; 21
(2) PROVIDES FAIR COMPEN SATION TO ELIGIBLE 22
CUSTOMER–GENERATORS; 23
(3) IS DESIGNED TO MAKE PROGRESS TOWARD MEETING THE STATE’S 24
DEMAND–SIDE, ENERGY STORAGE, AND CLEAN ENERGY GOALS; AND 25
(4) PROVIDES INCENTIVES FOR THE DEVELOPMENT OF DISTRIBUTED 26
GENERATION THAT ARE LESS THAN THE INCENTIVES PROVIDED BY THE NET ENERGY 27
METERING PROGRAM UNDER § 7–306 OF THIS SUBTITLE. 28
(C) ON OR BEFORE FEBRUARY 1, 2027, THE COMMISSION, BY ORDER OR 29
REGULATION, SHALL APPROVE , AS A SUCCESSOR PROGR AM TO THE NET ENERGY 30
124 HOUSE BILL 1532
METERING PROGRAM UNDER § 7–306 OF THIS SUBTITLE, A FRAMEWORK FOR A NE T 1
ENERGY METERING PROGRAM TO BEGIN JULY 1, 2027, THAT: 2
(1) PROVIDES INCENTIVES FOR THE DEVELOPMENT OF DISTRIBUTED 3
GENERATION TO ELIGIBLE CUSTOMER–GENERATORS UNDER §§ 7–306 AND 7–306.3 4
OF THIS SUBTITLE AND COMMUNITY SOLAR ENERGY GENERATING SYSTEMS UNDER § 5
7–306.2 OF THIS SUBTITLE; 6
(2) MINIMIZES RATEPAYER COSTS IN THE SHORT TERM AND IN THE 7
LONG TERM; AND 8
(3) BALANCES, ON A STATEWIDE BASIS AND ACROSS TECHNOLOGIES 9
AND INDUSTRY SECTORS PARTICIPATING IN NET ENERGY METERING: 10
(I) 1. FAIR COMPENSATION FOR ENERGY EXPORTS; AND 11
2. THE BENEFITS OF AN E LIGIBLE 12
CUSTOMER–GENERATOR’S OR FACILITY ’S REDUCED LOAD ON TH E ELECTRIC 13
TRANSMISSION AND DISTRIBUTION SYSTEM; AGAINST 14
(II) 1. THE NEEDS OF THE TRA NSMISSION AND 15
DISTRIBUTION SYSTEM; 16
2. RATEPAYER COSTS AND BENEFITS; AND 17
3. POTENTIAL IMPACTS ON CUSTOMER S, INCLUDING 18
LOW– AND MODERATE–INCOME CUSTOMERS, WHO DO NOT PARTICIPATE IN THE NET 19
ENERGY METERING PROG RAM RESULTING FROM E LIGIBLE 20
CUSTOMER–GENERATORS’ REDUCED CONTRIBUTION S TO THE DISTRIBUTIO N 21
SYSTEM. 22
(D) THE COMMISSION SHALL PRIO RITIZE THE REVIEW AN D APPROVAL OF 23
APPLICATIONS FROM A PROSPECTIVE ELIGIBLE CUSTOMER–GENERATOR FOR 24
PARTICIPATION IN THE PROGRAM IMPLEMENTED UNDER SUBSECTION (C) OF THIS 25
SECTION IF , AT THE TIME THE PROG RAM WAS IMPLEMENTED , THE PROSPECTIVE 26
ELIGIBLE CUSTOMER–GENERATOR WAS IN THE APPLICABLE ELECTRIC CO MPANY’S 27
INTERCONNECTION QUEUE FOR THE NET ENERGY METERING PROGRAM UND ER § 28
7–306 OF THIS SUBTITLE. 29
(E) THE PROGRAM IMPLEMENT ED BY THE COMMISSION UNDER 30
SUBSECTION (C) OF THIS SECTION SHAL L BE AVAILABLE UNTIL THE COMBINED 31
TOTAL RATED GE NERATING CAPACITY OW NED AND OPERATED UND ER THE NET 32
ENERGY METERING PROG RAM UNDER § 7–306 OF THIS SUBTITLE AND THE NET 33
HOUSE BILL 1532 125
ENERGY METERING PROGRAM IMPLEMENTED UNDER THIS SECTION REACHES 6,000 1
MEGAWATTS. 2
7–505. 3
(c) (1) Notwithstanding any other provision of law, including subsection (d) of 4
this section, and subject to § 4–213 of this article, the Commission may regulate the regulated 5
services of an electric company through alternative forms of regulation. 6
(2) The Commission may adopt an alternative form of regulation under this 7
section if the Commission finds, after notice and hearing, that the alternative form of 8
regulation: 9
(i) protects consumers; 10
(ii) ensures the quality, availability, and reliability of regulated 11
electric services; and 12
(iii) is in the interest of the public, including shareholders of the 13
electric company. 14
(3) Alternative forms of regulation may include: 15
(i) price regulation, including price freezes or caps; 16
(ii) revenue regulation; 17
(iii) ranges of authorized return; 18
(iv) rate of return; 19
(v) categories of services; or 20
(vi) price–indexing. 21
(4) (I) SUBJECT TO SUBPARAGRAPH (II) OF THIS PARAGRAPH, THE 22
COMMISSION SHALL COND UCT A PROCEEDING AND DETERMINE WHETHER 23
ALLOWING THE USE OF FORECAST TEST YEARS, HISTORIC TEST YEARS, OR A HYBRID 24
MODEL IS IN THE BEST INTERESTS OF AND PROTECTS RATEPAYERS. 25
(II) THE COMMISSION MAY NOT AP PROVE A REQUESTED RA TE 26
INCREASE THAT IS BASED ON A FORECAST TEST YEAR IN A BASE RATE PROCEEDING 27
UNTIL THE LATER OF: 28
1. THE CO MPLETION OF THE PROC EEDING UNDER 29
SUBPARAGRAPH (I) OF THIS PARAGRAPH; OR 30
126 HOUSE BILL 1532
2. APRIL 1, 2027. 1
(III) ON OR BEFORE APRIL 1, 2027, THE COMMISSION SHALL 2
REPORT TO THE GENERAL ASSEMBLY, IN ACCORDANCE WITH § 2–1257 OF THE 3
STATE GOVERNMENT ARTICLE, ON THE RESULTS OF THE PROCEEDING HELD UNDER 4
SUBPARAGRAPH (I) OF THIS PARAGRAPH , INCLUDING ANY COMMISSION 5
RECOMMENDATIONS FOR LEGISLATIVE ACTION. 6
7–1224. 7
(a) The Commission shall, by regulation or order, establish a competitive process 8
for the procurement of projects for the construction and deployment of front –of–the–meter 9
transmission energy storage devices in the State. 10
(b) (1) (i) On or before January 1, 2026, the Commission shall issue a 11
procurement solicitation for applications for projects for the construction and deployment of 12
front–of–the–meter transmission energy storage devices. 13
(ii) [The] EXCEPT AS PROVIDED IN SUBPARAGRAPH (III) OF THIS 14
PARAGRAPH, THE procurement solicitation shall be for [a maximum of] 800 megawatts of 15
cumulative energy storage capacity, as measured in effective nameplate capacity. 16
(III) THE PROCUREMENT SOLIC ITATION MAY EXCEE D 800 17
MEGAWATTS OF CUMULAT IVE ENERGY STORAGE C APACITY, AS MEASURED IN 18
EFFECTIVE NAMEPLATE CAPACITY, IF THE COMMISSION DETERMINES THAT THE 19
PROPOSALS ARE COST –EFFECTIVE AND ADEQUA TELY SUPPORT THE GOA LS 20
ESTABLISHED UNDER TH IS SUBTITLE , INCLUDING THE GOAL O F S ECURING 21
AFFORDABLE, RELIABLE ELECTRICAL SERVICE FOR MARYLAND RESIDENTS. 22
(2) On or before October 1, 2026, the Commission shall issue a decision on 23
whether to approve one or more proposals in accordance with § 7–1226(c) of this subtitle. 24
(3) (i) Except as provided in subparagraph (ii) of this paragraph, the 25
transmission energy storage devices procured in accordance with this subsection shall be 26
operational within 24 months after a project is selected by the Commission. 27
(ii) The Commission may extend the operating deadline under 28
subparagraph (i) of this paragraph for good cause shown. 29
(c) (1) On or before January 1, 2027, the Commission shall issue a second 30
procurement solicitation for the procurement of projects for the construction and deployment 31
of front–of–the–meter transmission energy storage devices. 32
HOUSE BILL 1532 127
(2) (I) [The] EXCEPT AS PROVIDED IN SUBPARAGRAPH (II) OF THIS 1
PARAGRAPH, THE procurement solicitation shall be for [a maximum of] 800 megawatts of 2
cumulative energy storage capacity, as measured in effective nameplate capacity. 3
(II) THE PROCUREMENT SOLIC ITATION MAY EXCEED 800 4
MEGAWATTS OF CUMULAT IVE ENERGY STORAGE C APACITY, AS MEASURED IN 5
EFFECTIVE NAMEPLATE CAPACITY, IF THE COMMISSION DETERMINES THAT THE 6
PROPOSALS ARE COST –EFFECTIVE AND ADEQUATELY SUPPO RT THE GOALS 7
ESTABLISHED UNDER TH IS SUBTITLE , INCLUDING THE GOAL O F SECURING 8
AFFORDABLE, RELIABLE ELECTRICAL SERVICE FOR MARYLAND RESIDENTS. 9
(3) On or before October 1, 2027, the Commission shall issue a decision on 10
whether to approve one or more proposals in accordance with § 7–1226(c) of this subtitle. 11
(4) (i) Except as provided in subparagraph (ii) of this paragraph, the 12
transmission energy storage devices procured in accordance with this subsection shall be 13
operational within 24 months after a project is selected by the Commission. 14
(ii) The Commission may extend the operating deadline under 15
subparagraph (i) of this paragraph for good cause shown. 16
7–1225. 17
(a) The Commission shall include specifications in a procurement so licitation 18
issued under § 7–1224 of this subtitle that require each proposal to: 19
(1) include a proposed pricing schedule for the transmission energy storage 20
project that: 21
(i) is for at least 15 years; and 22
(ii) represents the anticipated monthly wholesale value of capacity 23
per megawatt and other benefits identified in a cost–benefit analysis, but not including any 24
anticipated wholesale energy and ancillary services revenue; 25
(2) include a cost –benefit analysis of the project and proposed pricing 26
schedule comparison on a dollar–per–megawatt–hour basis, including an analysis of: 27
(i) the locational value and time to deployment of the energy storage 28
devices; 29
(ii) the value of long –duration storage, including its capacity 30
accreditation value f or resource adequacy as measured in PJM Interconnection’s effective 31
load carrying capability class ratings; 32
128 HOUSE BILL 1532
(iii) avoided or delayed transmission, generation, and distribution 1
costs; 2
(iv) avoided emissions in the short term and projected avoided 3
emissions in the long term, measured using the social cost of carbon, as determined by the 4
U.S. Environmental Protection Agency as of January 1, 2025; 5
(v) the value of the rapid deployment of energy storage devices; 6
(vi) the value of reliability du ring periods of electric system stress, 7
including the ability to deliver capacity during periods of extreme weather, fuel scarcity, and 8
large unplanned resource outages; and 9
(vii) any other avoided costs; 10
(3) ensure that the owner or operator of the project has the capability to 11
export electricity for sale on the wholesale market and bid into the PJM capacity market 12
under an agreement with PJM Interconnection; 13
(4) ensure that the energy storage devices can deliver their effective 14
nameplate capacity; 15
(5) incorporate a community benefit agreement; 16
(6) attest in writing that all contractors and subcontractors working on the 17
project have been in compliance with federal and State wage and hour laws for the 18
immediately preceding 3 years or the duration of the contractor’s or subcontractor’s business 19
operation, whichever is longer; and 20
(7) ensure a competitive bidding process, including by redacting proprietary 21
information provided to the Commission. 22
(b) An energy storage device shall be conside red capable of delivering its effective 23
nameplate capacity under this section if: 24
(1) the energy storage device will have the capacity interconnection rights 25
with PJM Interconnection equal to its effective nameplate capacity; or 26
(2) (i) the energy storage device will have surplus interconnection service 27
with PJM Interconnection; and 28
(ii) the ability of the energy storage device to deliver its effective 29
nameplate capacity will be limited only by the generation of another nonenergy storage 30
generation resource with which the energy storage device shares a point of interconnection 31
to the electric transmission system. 32
HOUSE BILL 1532 129
(c) [Front–of–the–meter] PROJECTS THAT INCLUDE ANY OF THE FOLLOWING 1
DEVICES MAY BE INCLU DED IN A PROPOSAL IN RESPONSE TO A PROCUR EMENT 2
SOLICITATION UNDER § 7–1224 OF THIS SUBTITLE: 3
(1) FRONT–OF–THE–METER transmission energy storage devices paired 4
with Tier 1 or Tier 2 renewabl e sources, as defined under § 7 –701 of this title [, may be 5
included in a proposal in response to a procurement solicitation under § 7 –1224 of this 6
subtitle]; AND 7
(2) FRONT–OF–THE–METER ENERGY STORAGE DEVICES: 8
(I) INTERCONNECTED TO A FACILITY WITHIN THE STATE; AND 9
(II) THAT HAVE BEEN ASSIGNED A PROJECT IDENTIFIER IN THE 10
PJM INTERCONNECTION PROCESS IN RESPONSE TO A REQUEST FOR NEW SERVICE. 11
Chapter 623 of the Acts of 2025 12
SECTION 4. AND BE IT FURTHER ENACTED, That: 13
(a) The Public Service Commission shall conduct a study on the feasibility of and 14
technical barriers to establishing: 15
(1) within the Commission a community solar automatic enrollment 16
program for local jurisdictions; AND 17
(2) IN CONSULTATION WITH THE DEPARTMENT OF HUMAN SERVICES, 18
AN AUTOMATIC COMMUNI TY SOLAR ENROLLMENT PROCESS TO PROVIDE B ILL 19
CREDITS FOR LOW– TO MODERATE–INCOME SUBSCRIBERS THROUGH THE OFFICE OF 20
HOME ENERGY PROGRAMS IN THE DEPARTMENT. 21
(b) In conducting the study under subsection (a) of this section[,]: 22
(1) FOR AN AUTOMATIC ENROLLMENT PROGRAM UNDER SUBSECTION 23
(A)(1) OF THIS SECTION, the PUBLIC SERVICE Commission shall consider: 24
[(1)] (I) how low – to moderate –income subscribers would be subscribed 25
under the program; 26
[(2)] (II) whether subscribers a utomatically enrolled in the program 27
should receive a bill credit; 28
[(3)] (III) how to ensure that local jurisdictions comply with all parameters 29
of the program; and 30
130 HOUSE BILL 1532
[(4)] (IV) any necessary notification requirements and consumer 1
protections that the program should have; AND 2
(2) FOR THE AUTOMATIC ENROLLMENT PROCESS UNDER SUBSECTION 3
(A)(2) OF THIS SECTION , THE PUBLIC SERVICE COMMISSION, IN CONSULTATION 4
WITH THE DEPARTMENT OF HUMAN SERVICES, SHALL CONSIDER: 5
(I) ELIGIBILITY CRITERIA FOR LOW – TO MODERATE–INCOME 6
SUBSCRIBERS; 7
(II) OPT–OUT PROCEDURES FOR SUBSCRIBERS; 8
(III) THE AMOUNT OF BILL S AVINGS FOR LOW – TO 9
MODERATE–INCOME SUBSCRIBERS; 10
(IV) THE ROLE OF ANY OTHER STATE OR LOCAL AGENCY IN THE 11
AUTOMATIC ENROLLMENT PROCESS; 12
(V) THE AMOUNT OF ENERGY GEN ERATED BY A COMMUNIT Y 13
SOLAR PROJECT THAT S HOULD BE DEDICATED T O LOW – TO MODERATE –INCOME 14
SUBSCRIBERS; AND 15
(VI) THE IMPACT TO RATEPAYERS THAT DO NOT PARTICIPATE IN 16
THE AUTOMATIC ENROLLMENT PROCESS. 17
(c) On or before [July 1, 2026, ] JULY 1, 2027, the Public Service Commission 18
shall report to the Governor and, in accordance with § 2 –1257 of the State Government 19
Article, the General Assembly on the results of the study. 20
Chapter 624 of the Acts of 2025 21
SECTION 4. AND BE IT FURTHER ENACTED, That: 22
(a) The Public Service Commission shall conduct a study on the feasibility of and 23
technical barriers to establishing: 24
(1) within the Commission a community solar automatic enrollment 25
program for local jurisdictions; AND 26
(2) IN CONSULTATION WITH THE DEPARTMENT OF HUMAN SERVICES, 27
AN AUTOMATIC COMMUNI TY SOLAR ENROLLMENT PROCESS TO PROVIDE B ILL 28
CREDITS FOR LOW– TO MODERATE–INCOME SUBSCRIBERS THROUGH THE OFFICE OF 29
HOME ENERGY PROGRAMS IN THE DEPARTMENT. 30
(b) In conducting the study under subsection (a) of this section[,]: 31
HOUSE BILL 1532 131
(1) FOR AN AUTOMATIC ENROLLMENT PROGRAM UNDER SUBSECTION 1
(A)(1) OF THIS SECTION, the PUBLIC SERVICE Commission shall consider: 2
[(1)] (I) how [low–to–moderate income] LOW– TO MODERATE–INCOME 3
subscribers would be subscribed under the program; 4
[(2)] (II) whether subscribers automatically enrolled in the program 5
should receive a bill credit; 6
[(3)] (III) how to ensure that local jurisdictions comply with all parameters 7
of the program; and 8
[(4)] (IV) any necessary notification requirements and consumer 9
protections that the program should have; AND 10
(2) FOR THE AUTOMATIC ENROLLMENT PROCESS UNDER SUBSECTION 11
(A)(2) OF THIS SECTION , THE PUBLIC SERVICE COMMISSION, IN CONSULTATION 12
WITH THE DEPARTMENT OF HUMAN SERVICES, SHALL CONSIDER: 13
(I) ELIGIBILITY CRITERIA FOR LOW – TO MODERATE –INCOME 14
SUBSCRIBERS; 15
(II) OPT–OUT PROCEDURES FOR SUBSCRIBERS; 16
(III) THE AMOUNT OF BILL S AVINGS FOR LOW – TO 17
MODERATE–INCOME SUBSCRIBERS; 18
(IV) THE ROLE OF ANY OTHER STATE O R LOCAL AGENCY IN TH E 19
AUTOMATIC ENROLLMENT PROCESS; 20
(V) THE AMOUNT OF ENERGY GENERATED BY A COMMU NITY 21
SOLAR PROJECT THAT S HOULD BE DEDICATED T O LOW – TO MODERATE –INCOME 22
SUBSCRIBERS; AND 23
(VI) THE IMPACT TO RATEPAYERS THAT DO NOT PARTICIPATE IN 24
THE AUTOMATIC ENROLLMENT PROCESS. 25
(c) On or before [July 1, 2026, ] JULY 1, 2027, the Public Service Commission 26
shall report to the Governor and, in accordance with § 2 –1257 of the State Government 27
Article, the General Assembly on the results of the study. 28
SECTION 6. AND BE IT FURTHER ENACTED, That the Laws of Maryland read 29
as follows: 30
132 HOUSE BILL 1532
Article – State Government 1
9–2016. 2
(a) (1) In this section the following words have the meanings indicated. 3
(2) “Eligible customer–generator” has the meaning stated in § 7 –306 of the 4
Public Utilities Article. 5
(3) “Low to moderate income” means a household with an annual household 6
income at or below 150% of the average median income for the State. 7
(4) “Program” means the Customer–Sited Solar Program established in this 8
section. 9
(b) There is a Customer–Sited Solar Program in the Administration. 10
(e) The Program may provide grants to an income –verified eligible 11
customer–generator with a low to moderate income in an amount equal to $750 per kilowatt 12
of nameplate capacity for a solar energy generating system, up to a maximum of $7,500 per 13
system. 14
(f) A grant awarded under subsection (e) of this section shall be funded from [fees 15
collected under § 7 –705(b)(2)(i)2 of the Public Utilities Article and allocated in accordance 16
with § 9–20B–05(g–1) of this title ] THE MARYLAND STRATEGIC ENERGY INVESTMENT 17
FUND ESTABLISHED UNDER § 9–20B–05 OF THIS TITLE. 18
SECTION 7. AND BE IT FURTHER ENACTED, That: 19
(a) Notwithstanding any other provision of law, from the compliance fees paid into 20
the Maryland Strategic Energy Investment Fund in accordance with § 7 –705 of the Public 21
Utilities Article: 22
(1) $100,000,000 shall be used to provide grants for renewable energy 23
projects through the auction process established under § 9–20E–02 of the State Government 24
Article, as enacted by Section 4 of this Act; 25
(2) $100,000,000 shall be used to provide grants to electric companies, 26
including electric cooperatives, to pay down the costs incurred by the electric companies for 27
implementing and administering the programs and services under Title 7, Subtitle 2, Part 28
II of the Public Utilities Article; 29
(3) $38,000,000 shall be used to offset residential electric customer costs 30
associated with the limited –income rate mechanis m required under § 4 –309 of the Public 31
Utilities Article; 32
HOUSE BILL 1532 133
(4) $150,000 shall be used to provide funding for a comprehensive study of 1
public school HVAC systems in Baltimore City; 2
(5) $9,850,000 shall be used to provide funding for upgrades to public school 3
HVAC systems in Baltimore City; and 4
(6) $2,000,000 shall be used to provide additional funding for the Maryland 5
Energy Administration’s Residential and Commercial Energy Storage Grant Program. 6
(b) Notwithstanding any other provision of law, fro m the proceeds paid into the 7
Maryland Strategic Energy Investment Fund in accordance with § 2 –1002(g) of the 8
Environment Article, $9,000,000 shall be used for upgrades to public school HVAC systems 9
in Baltimore City. 10
(c) Notwithstanding any other provisi on of law, from the funds in the Maryland 11
Strategic Energy Investment Fund: 12
(1) $3,000,000 shall be used to provide additional funding for the 13
Department of Natural Resources’ Power Plant Research Program to review renewable and 14
clean energy projects; and 15
(2) $72,650,000 shall be transferred to the Dedicated Purpose Account 16
established under § 7 –310 of the State Finance and Procurement Article to provide 17
additional funding for the Maryland Energy Administration’s Residential Energy Equity 18
Program for heat pump installations and replacements for low – and moderate –income 19
households. 20
(d) (1) Notwithstanding any other provision of law and subject to paragraph 21
(2) of this subsection, on or before June 30, 2027, the Governor may transfer: 22
(i) the funds described in subsection (a)(1) of this section to the 23
Maryland Energy Administration to be awarded as grants under § 9 –20E–02 of the State 24
Government Article, as enacted by Section 4 of this Act; 25
(ii) the funds described in subsection (a)(2) of this section to the Public 26
Service Commission to be awarded as grants to electric companies, including electric 27
cooperatives, to pay down the costs incurred by the electric companies for implementing and 28
administering the programs and services under Ti tle 7, Subtitle 2, Part II of the Public 29
Utilities Article; 30
(iii) the funds described in subsection (a)(3) of this section to the Public 31
Service Commission to be awarded as grants to electric companies to be refunded or credited 32
to residential electric customers to offset costs associated with the limited –income rate 33
mechanism required under § 4–309 of the Public Utilities Article; 34
134 HOUSE BILL 1532
(iv) the funds described in subsection (a)(4) of this section to the 1
Comptroller to be used to provide funding for a comprehensive study of public school HVAC 2
systems in Baltimore City; 3
(v) the funds described in subsections (a)(5) and (b) of this section to 4
the Interagency Commission on School Construction to be used for upgrades to public school 5
HVAC systems in Baltimore City; 6
(vi) the funds described in subsection (a)(6) of this section to the 7
Maryland Energy Administration to be awarded as grants under the Residential and 8
Commercial Energy Storage Grant Program; 9
(vii) the funds described in subsection (c)( 1) of this section to the 10
Department of Natural Resources to be used to review renewable and clean energy projects 11
through the Power Plant Research Program; and 12
(viii) the funds described in subsection (c)(2) of this section to the 13
Dedicated Purpose Account established under § 7–310 of the State Finance and Procurement 14
Article for the Maryland Energy Administration to use to provide heat pump installations 15
and replacements for low– and moderate–income households under the Residential Energy 16
Equity Program. 17
(2) The Governor may not include in the transfers authorized under 18
paragraph (1) of this subsection any funds in the Energy Assistance Account in the Maryland 19
Strategic Energy Investment Fund. 20
SECTION 8. AND BE IT FURTHER ENACTED, That the requirements established 21
under § 7–207(b)(3)(iv), as enacted under Section 4 of this Act, apply to an application for a 22
certificate of public convenience and necessity submitted on or after July 1, 2026, and may 23
not be construed to apply to a certificate of public convenience and necessity submitted before 24
July 1, 2026. 25
SECTION 9. AND BE IT FURTHER ENACTED, That: 26
(a) (1) In this section the following words have the meanings indicated. 27
(2) “Eligible customer–generator” has the meaning stated in § 7 –306 of the 28
Public Utilities Article. 29
(3) “Net energy metering” has the meaning stated in § 7 –306 of the Public 30
Utilities Article. 31
(b) (1) The Public Service Commission shall conduct a proceeding exploring the 32
development and implementation of a successor program to the net energy metering program 33
under § 7–306 of the Public Utilities Article. 34
HOUSE BILL 1532 135
(2) In conducting the proceeding, the Public Service Commission shall 1
accept input from: 2
(i) utility companies; 3
(ii) owners and developers of net metered projects, including projects 4
that are: 5
1. residential behind–the–meter; 6
2. commercial behind–the–meter; and 7
3. front–of–the–meter; 8
(iii) renewable energy industry experts, including representatives from 9
the solar energy industry; 10
(iv) consumer advocates; and 11
(v) other stakeholders. 12
(c) On or before December 15, 2026, the Public Service Commission shall submit 13
a report on the proceeding held under subsection (b) of this section to the Governor and, in 14
accordance with § 2–1257 of the State Government Article, the General Assembly. 15
(d) The report shall include: 16
(1) recommendations for a successor program to the net energy metering 17
program under § 7–306 of the Public Utilities Article that: 18
(i) provides incentives for the development of distributed generation 19
to eligible customer –generators under §§ 7 –306 and 7 –306.3 of the Public Utilities Article 20
and community solar energy generating systems under § 7 –306.2 of the Public Utilities 21
Article, as enacted by Section 4 of this Act; 22
(ii) minimizes ratepayer costs in the short term and in the long term; 23
and 24
(iii) balances, on a statewide basis and across technologies and 25
industry sectors participating in net energy metering: 26
1. A. fair compensation for energy exports; and 27
B. the benefits of an eligible customer–generator’s or facility’s 28
reduced load on the electric transmission and distribution system; against 29
136 HOUSE BILL 1532
2. A. the needs of the transmission and distribution 1
system; 2
B. ratepayer costs and benefits; and 3
C. potential impacts on customers, including low – and 4
moderate–income customers, who do not participate in the net energy metering program 5
resulting from eligible customer –generators’ reduced contributions to the distribution 6
system; 7
(2) recommendations for any legislative changes necessary to implement the 8
successor program; and 9
(3) any administrative concerns with transitioning to the successor program 10
on July 1, 2027, and whether those concerns may cause a delay in implementation. 11
SECTION 10. AND BE IT FURTHER ENACTED, That: 12
(a) It is the intent of the General Assembly that the Public Service Commission, in 13
consultation with electric companies, work to resolve any administrative and technical 14
issues in order to provide rate relief to all residential electric customers, including residents 15
of apartments, condominiums, and other multi –occupancy residences, in accordance with 16
this section. 17
(b) (1) Notwithstanding any other provision of law, from the compliance fees 18
paid into the Maryland S trategic Energy Investment Fund in accordance with § 7 –705 of 19
the Public Utilities Article, $100,000,000 shall be used to provide grant awards to electric 20
companies to be refunded or credited to residential electric customers to offset any surcharges 21
imposed as a result of the operating costs of the programs and services under Title 7, Subtitle 22
2, Part II of the Public Utilities Article in calendar year 2027 in accordance with subsection 23
(c) of this section. 24
(2) The Governor may transfer by budget amendm ent the funds described 25
in paragraph (1) of this subsection to the Public Service Commission to be awarded to electric 26
companies. 27
(c) Subject to subsection (d) of this section, the funds described in subsection (b)(1) 28
of this section shall be distributed: 29
(1) in accordance with § 9–20B–05(f)(4) of the State Government Article, as 30
enacted by Section 4 of this Act; and 31
(2) in equal monthly amounts during the calendar year 2027. 32
(d) (1) To the greatest extent practicable the Public Service Commission, in 33
consultation with each electric company that collects a surcharge under § 7 –222(d) of the 34
Public Utilities Article, shall: 35
HOUSE BILL 1532 137
(i) determine the commercial customers of each electric company that 1
use a master meter to allocate costs of retai l electric service to the residents of apartments, 2
condominiums, and other multi–occupancy residences; 3
(ii) determine the estimated energy use by the commercial customers 4
identified under item (i) of this paragraph; 5
(iii) determine the number of multi–occupancy residential dwelling 6
units served by each master meter; and 7
(iv) provide the information specified in items (i) through (iii) of this 8
paragraph to the Commission in a spreadsheet format at a date determined by the 9
Commission. 10
(2) If the Public Service Commission is able to determine, with a reasonable 11
degree of certainty, the commercial customer information specified in paragraph (1) of this 12
subsection, the Commission may require that a pro rata share of the funds described in 13
subsection (b)(1) of this section be provided as grants to electric companies to be refunded or 14
credited to commercial customers that use a master meter to allocate costs of retail electric 15
service to residents of apartment houses, condominiums, or other multi –occupancy 16
residences. 17
(3) A commercial customer that receives funding under this subsection: 18
(i) shall refund or credit each residential dwelling unit with its pro 19
rata share of the funding provided under paragraph (2) of this subsection; 20
(ii) may not provide a refund or credit to any person known to be 21
using electric service for a commercial purpose; 22
(iii) may retain up to 3% of the credited amount for administrative 23
expenses; and 24
(iv) if the commercial customer received the funding in e rror, shall 25
refund the funding to the electric company for redistribution. 26
(4) The Public Service Commission and each electric company shall be held 27
harmless for any failure by a commercial customer that receives funding under this 28
subsection to use the funding as required under paragraph (3) of this subsection. 29
(5) If the Public Service Commission is unable to determine, with a 30
reasonable degree of certainty, the commercial customer information specified in paragraph 31
(1) of this subsection or determi nes that providing funding to commercial customers in 32
accordance with paragraph (2) of this subsection is not in the public interest, the 33
Commission, on or before December 1, 2026: 34
138 HOUSE BILL 1532
(i) may direct electric companies to refund or credit only those 1
residential customers taking service under a residential tariff; and 2
(ii) shall, in accordance with § 2 –1257 of the State Government 3
Article, report to the General Assembly, the Senate Committee on Education, Energy, and 4
the Environment, and the House Environment and Transportation Committee on the 5
reasoning for the Commission’s decision to direct electric companies to refund or credit 6
residential customers in accordance with item (i) of this paragraph. 7
SECTION 11. AND BE IT FURTHER ENACTED, That, on or before December 1, 8
2026, the Public Service Commission shall provide notice to the Senate Committee on 9
Education, Energy, and the Environment and the House Environment and Transportation 10
Committee, in accordance with § 2–1257 of the State Government Article, if the Commission 11
determines that the timelines set forth in § 7–233(c) of the Public Utilities Article, as enacted 12
by Section 4 of this Act, are insufficient for load forecasting. 13
SECTION 12. AND BE IT FURTHER ENACTED, That, on or before August 1, 2026, 14
the Senate Committee on Education, Energy, and the Environment and the House 15
Environment and Transportation Committee may jointly request that the Strategic Energy 16
Planning Office assess up to five policy scenarios and submit, on or before December 31, 17
2026, a report of the results of the requested policy scenarios to the Senate Committee on 18
Education, Energy, and the Environment and the House Environment and Transportation 19
Committee in accordance with § 2–1257 of the State Government Article. 20
SECTION 13. AND BE IT FURTHER ENACTED, That: 21
(a) The Public Service Commission shall prepare recommendations for changes to 22
the next following program cycle under Title 7, Subtitle 2, Part II of the Public Utilities 23
Article. 24
(b) The recommendations prepare d under subsection (a) of this section shall 25
address: 26
(1) the goals established for programs and services under Title 7, Subtitle 27
2, Part II of the Public Utilities Article, including the size and scope of the goals as applied 28
to each electric company; 29
(2) ways in which the programs and services required under Title 7, Subtitle 30
2, Part II of the Public Utilities Article should be restructured to further avoid electric system 31
reliability risk and wholesale energy costs; 32
(3) methods for selecting programs and services for inclusion under Title 7, 33
Subtitle 2, Part II of the Public Utilities Article, including cost –effectiveness testing with 34
exceptions to the testing to enable the inclusion of appropriate programs and services, as 35
determined by the Public Service Commission; and 36
HOUSE BILL 1532 139
(4) any other information the Public Service Commission considers 1
appropriate. 2
(c) On or before November 1, 2027, the Public Service Commission shall submit 3
the recommendations required under this section to the Governor and, in accordance with § 4
2–1257 of the State Government Article, the Senate Committee on Education, Energy, and 5
the Environment and the House Environment and Transportation Committee. 6
SECTION 14. AND BE IT FURTHER ENACTED, That: 7
(a) (1) The Public Service Commission shall issue a request for information on 8
the use of a third–party, single–implementer program for the administration of the programs 9
and services under Title 7, Subtitle 2, Part II of the Public Utilities Article. 10
(2) The Public Service Commission shall use the information provided 11
through the request for information to assess the use of a third –party, single–implementer 12
program for the administration of the programs and services offered by: 13
(i) only electric companies under § 7 –223 o f the Public Utilities 14
Article; and 15
(ii) both electric companies under § 7 –223 of the Public Utilities 16
Article and the Department of Housing and Community Development under § 7 –224 of the 17
Public Utilities Article. 18
(3) For each option described in paragraph (2) of this subsection, the request 19
for information shall seek: 20
(i) determinations of what effect the use of a single, third –party 21
administrator would have on costs; 22
(ii) identification of technical and logistical barriers to transitioning 23
to a single, third–party administrator; and 24
(iii) an analysis of the advantages and disadvantages of a private, 25
third–party administrator as opposed to a State administrator. 26
(4) The Public Service Commission may conduct research and produce a 27
report independent of, and in order to supplement any information received through, the 28
request for information under this subsection. 29
(5) The Public Service Commission shall require that responses to the 30
request for information be received not later than July 1, 2027. 31
(b) (1) Subject to paragraphs (2), (3), (4), and (5) of this subsection, as soon as 32
practicable after receiving the information requested in subsection (a) of this section, the 33
Public Service Commission shall issue a request for proposals for a third –party 34
140 HOUSE BILL 1532
administrator for the programs and services under Title 7, Subtitle 2, Part II of the Public 1
Utilities Article. 2
(2) Based on the information received under subsection (a) of this section, 3
the Public Service Commission may issue the request for proposals for a third–party 4
administrator for the administration of the programs offered by: 5
(i) only electric companies under § 7 –223 of the Public Utilities 6
Article; or 7
(ii) both electric companies under § 7 –223 of the Public Utilities 8
Article and the Department of Housing and Community Development under § 7 –224 of the 9
Public Utilities Article. 10
(3) The request for proposals shall specify that responses to the request 11
should minimize short–term and long–term costs for utility ratepayers. 12
(4) The request for proposals shall specify that the Public Service 13
Commission shall have access to relevant materials of a third–party administrator selected 14
by the Commission under this subsection to ensure effective program oversight and 15
protection of ratepayer funds. 16
(5) The Public Service Commission may decline to issue a request for 17
proposals if the Commission determines that the use of a third –party administrator would 18
not be cost–effective. 19
(c) (1) Except as provided in paragraph (2) of this subsection, on or before June 20
1, 2028, the Public Service Commission shall select, through the request for proposals 21
process initiated under subsection (b) of this section, a third –party administrator for the 22
administration of the programs and services under Ti tle 7, Subtitle 2, Part II of the Public 23
Utilities Article, as applicable, beginning with the 3–year program cycle starting in 2030. 24
(2) The Public Service Commission may decline to select a third –party 25
administrator if the Commission determines that: 26
(i) the use of a third–party administrator would not be cost–effective; 27
or 28
(ii) the responses to the request for proposals issued under subsection 29
(b) of this section are materially less favorable than the responses to the request for 30
information issued under subsection (a) of this section. 31
(3) The Public Service Commission shall notify the General Assembly of a 32
decision to decline to select a third –party administrator within 5 days after making the 33
decision. 34
SECTION 15. AND BE IT FURTHER ENACTED, That: 35
HOUSE BILL 1532 141
(a) The Power Plant Research Program, in consultation with the Department of 1
the Environment and the Maryland Energy Administration, shall conduct a study to identify 2
ways to streamline the permitting process for energy development in the State. 3
(b) In conducting the study under subsection (a) of this section, the Power Plant 4
Research Program shall: 5
(1) identify up to 50 priority energy sites suitable for new or expanded 6
generating stations or energy storage devices, including: 7
(i) brownfields; 8
(ii) industrial sites surrounded by areas with low –population 9
density; 10
(iii) sites with old or decommissioned generating units that may be 11
repowered or repurposed, with special consideration given to sites with surplus 12
interconnection capacity; and 13
(iv) State–owned land; 14
(2) identify current bottlenecks and barriers in the State that extend State 15
and local permitting timelines; and 16
(3) develop recommendations on what a State –level zoning or permitting 17
structure should look like in order to promote fast–tracked development at the priority energy 18
sites identified in item (1) of this subsection. 19
(c) On or before December 31, 2026, the Power Plant Research Program shall 20
report to the Governor and, in accordance with § 2 –1257 of t he State Government Article, 21
the General Assembly on the results of the study. 22
SECTION 16. AND BE IT FURTHER ENACTED, That, on or before July 1, 2027, 23
the Maryland Clean Energy Center shall: 24
(1) establish an application process for loans made under th e Green and 25
Renewable Energy Efficiency for Nonprofits Loan Program in Title 10, Subtitle 8 of the 26
Economic Development Article, as enacted by Section 4 of this Act; 27
(2) set guidelines and considerations for application, selection, and 28
repayment that include: 29
(i) nonprofit organizations that own, rather than rent, their 30
buildings; 31
(ii) property size and kilowatt–hours of energy used; 32
142 HOUSE BILL 1532
(iii) geographic diversity; 1
(iv) ethnic and racial diversity; 2
(v) economic diversity; 3
(vi) nonprofit organization mission diversity; 4
(vii) access to the borrower’s portion of the cost of the qualifying energy 5
system; and 6
(viii) process and frequency of loan repayment; and 7
(3) develop and implement an advertising campaign for the Green and 8
Renewable Energy Efficiency for Nonprofits Loan Program. 9
SECTION 17. AND BE IT FURTHER ENACTED, That it is the intent of the General 10
Assembly that the Public Service Commission may allow an electric company or a gas 11
company to implement a limited–income mechanism authorized under § 4–309 of the Public 12
Utilities Article on or before December 31, 2026, if the limited –income mechanism is fully 13
compliant with all Commission requirements. 14
SECTION 18. AND BE IT FURTHER ENACTED, That the Public Service 15
Commission may contract for the services of independent consultants and experts to 16
implement and execute any part of this Act. 17
SECTION 19. AND BE IT FURTHER ENACTED, That all employees who are 18
transferred to the Department of Human Services as a result of this Act shall be transferred 19
without diminution of their rights, benefits, employment, or retirement status. 20
SECTION 20. AND BE IT FURTHER ENACTED, That the publisher of the 21
Annotated Code of Maryland, in consultation with and subject to the approval of the 22
Department of Legislative Services, shall correct, with no further action required by the 23
General Assembly, cross –references and terminology rendered incorrect by this Act. The 24
publisher shall adequately describe any correction that is made in an editor’s note following 25
the section affected. 26
SECTION 21. AND BE IT FURTHER ENACTED, That Section 6 of this Act shall 27
terminate on the taking effect of the termination provision specified in Section 10 of Chapter 28
595 of the Acts of the General Assembly of 20 24. If that termination provision takes effect, 29
Section 6 of this Act, with no further action required by the General Assembly, shall be 30
abrogated and of no further force and effect. This Act may not be interpreted to have any 31
effect on that termination provision. 32
That Section(s) 5–5A–08 through 5–5A–10 of Article – Human Services of the Annotated 33
Code of Maryland be renumbered to be Section(s) 5–5A–09 through 5–5A–11, respectively. 34
HOUSE BILL 1532 143
SECTION 2. AND BE IT FURTHER ENACTED, That Section(s) 7 –512.1 of 1
Article – Public Utilities of the Annotated Code of Maryland be transferred to be Section(s) 2
5–5A–08 of Article – Human Services of the Annotated Code of Maryland. 3
SECTION 3. AND BE IT FURTHER ENACTED, That the Laws of Maryland read 4
as follows: 5
Article – Housing and Community Development 6
2–102. 7
(a) The Department shall: 8
(10) develop and implement a weatherization program in accordance with 9
Title 4 of this article and administer the low –income weatherization component of the 10
electric universal service program in accordance with [§ 7 –512.1 of the Public Utilities 11
Article] § 5–5A–08 OF THE HUMAN SERVICES ARTICLE. 12
Article – Human Services 13
5–101. 14
(a) In this title the following words have the meanings indicated. 15
(b) “Administration” means the Family Investment Administration. 16
(c) “Department” means the Department of Human Services. 17
5–5A–01. 18
(a) In this subtitle the following words have the meanings indicated. 19
(B) “COMMISSION” MEANS THE PUBLIC SERVICE COMMISSION. 20
[(b)] (C) “Energy emergency” means a lack of fuel or the imminent 21
discontinuation of energy services supplied by a fuel vendor or utility vendor that will 22
endanger health, safety, or welfare. 23
[(c)] (D) “Fuel vendor” means a person that distributes, transports, produces, or 24
offers for sale coal products, fuel oil, kerosene, bottled gas, propane, or wood for fuel use or 25
consumption in the State. 26
[(d)] (E) “Office” means the Office of Home Energy Programs. 27
[(e)] (F) “Program” means the Energy Assistance Program. 28
144 HOUSE BILL 1532
[(f)] (G) “Utility vendor” means a person that distributes, transports, or 1
produces natural gas or electricity for use or consumption in the State. 2
5–5A–02. 3
There is an Office of Home Energy Programs in the Administration. 4
5–5A–03. 5
The purpose of the Office is to carry out this subtitle. 6
5–5A–08. 7
(a) (1) (I) [The Commission shall establish] THERE IS an electric 8
universal service program [to assist electric customers with annual incomes at or below 9
200% of the federal poverty level] IN THE OFFICE. 10
(II) THE OFFICE SHALL IMPLEMEN T AND ADMINISTER THE 11
ELECTRIC UNIVERSAL SERVICE PROGRAM. 12
(III) THE PURPOSE OF THE EL ECTRIC UNIVERSAL SER VICE 13
PROGRAM IS TO ASSIST ELECTRIC CUSTOMERS W ITH ANNUAL INCOMES A T OR 14
BELOW 200% OF THE FEDERAL POVERTY LEVEL. 15
(2) The components of the electric universal service program shall include: 16
(i) bill assistance; 17
(ii) low–income residential weatherization; and 18
(iii) the retirement of arrearages for electric customers who have not 19
received assistance in retiring arrearages under the ELECTRIC universal service program 20
within the preceding 5 fiscal years. 21
(3) The Department of Housing and Community Development is 22
responsible for administering the low–income residential weatherization component of the 23
electric universal service program. 24
(4) [(i) The Department of Human Services, through the Office of Home 25
Energy Programs, is responsible for administering the bill assistance and the arrearage 26
retirement components of the electric universal service program. 27
(ii)] The [Department of Human Services] OFFICE may: 28
HOUSE BILL 1532 145
[1.] (I) establish minimum and maximum benefits 1
available to an electric customer under the bill assistance and arrearage retirement 2
components; and 3
[2.] (II) coordinate benefits under the electric universal 4
service program with benefits under the Maryland Energy Assist ance Program and other 5
available energy assistance programs. 6
(5) The [Department of Human Services] OFFICE may, with input from a 7
panel or roundtable of interested parties, contract to assist in administering the bill 8
assistance and the arrearage retire ment components of the electric universal service 9
program. 10
(6) The Commission has oversight responsibility for the bill assistance and 11
the arrearage retirement components of the electric universal service program and any 12
other funds expended under this section. 13
(7) In a specific case, the electric universal service program may waive the 14
income eligibility limitation under paragraph (1) of this subsection in order to provide 15
assistance to an electric customer who would qualify for a similar waiver unde r [the 16
Maryland Energy Assistance Program established under Title 5, Subtitle 5A of the Human 17
Services Article] ANOTHER PROGRAM ESTABLISHED UNDER THIS SUBTITLE. 18
(8) (i) If an applicant for bill assistance or arrearage retirement is to be 19
denied due to deficient documentation, the [Department of Human Services] OFFICE shall: 20
1. promptly provide notice of the deficiency to the applicant; 21
and 22
2. afford the applicant ample opportunity of not less than 3 23
months to cure the deficiency. 24
(ii) An electric company may not begin the process to terminate 25
service to an applicant while the applicant is curing a deficiency under this paragraph. 26
(9) Notwithstanding paragraph (2)(iii) of this subsection, any assistance 27
received for arrearage retirement by a customer in calendar years 2020 and 2021 may not 28
be counted toward the limitation on the number of times the customer may receive 29
assistance for arrearage retirement. 30
(b) (1) All customers shall contribute to the funding of the electric universal 31
service program through a charge collected by each electric company. 32
(2) The Commission shall determine a fair and equitable allocation for 33
collecting the charges among all customer classes pursuant to subsection (e) of this section. 34
146 HOUSE BILL 1532
(3) Except as provided in paragraph (4) of this subsection, in accordance 1
with subsection (f)(6) of this section, any unexpended bill assistance and arrearage 2
retirement funds returned t o customers under subsection (f) of this section shall be 3
returned to each customer class as a credit in the same proportion that the customer class 4
contributed charges to the fund. 5
(4) The Department [of Human Services] shall expend any unexpended bill 6
assistance and arrearage funds that were collected in fiscal years 2010 through 2017, in 7
excess of the total amount authorized under subsection (e) of this section, for one or more 8
of the following purposes: 9
(i) bill assistance and the retirement of a rrearages for customers 10
who are eligible to receive assistance at the time services are provided; 11
(ii) targeted and enhanced low –income residential weatherization 12
designed to remediate households that are considered ineligible to participate in other 13
State energy efficiency programs due to significant health and safety hazards; 14
(iii) an arrearage management program for low–income customers in 15
arrears, including providing credits or matching payments for customers who make timely 16
payments on current bills; or 17
(iv) an arrearage prevention program for low–income customers. 18
(5) An electric company shall recover electric universal service program 19
costs in accordance with § 7–512 of [this subtitle] THE PUBLIC UTILITIES ARTICLE. 20
(6) As determined by the Office [of Home Energy Programs], bill assistance 21
payments to an electric company may be on a monthly basis for each customer. 22
(7) The Commission shall determine the allocation of the electric universal 23
service charge among the generation, transmission, and distribution rate components of all 24
classes. 25
(8) The Commission may not assess the electric universal service 26
surcharge on a per kilowatt–hour basis. 27
(c) (1) On or before January 1 of each year, the Commission shall report, 28
subject to § 2–1257 of the State Government Article, to the General Assembly on the electric 29
universal service program, including: 30
(i) subject to subsection (e) of this section, a recommendation on the 31
total amount of funds for the ELECTRIC UNIVERSAL SERVICE program for the following 32
fiscal year based on: 33
HOUSE BILL 1532 147
1. the level of participation in and the amounts expended on 1
bill assistance and arrearage retirement during the preceding fiscal year; 2
2. how bill assistance and arrearage retirement payments 3
were calculated during the preceding fiscal year; 4
3. the projected needs for the bill assistance and the 5
arrearage retirement components for the next fiscal year; and 6
4. the amount of any bill assistance or arrearage retirement 7
surplus carried over in the electric universal service program fund under subsection (f)(6)(i) 8
of this section; 9
(ii) for bill assistance, the total amount of need, as determined by the 10
Commission, for electric customers with annual incomes at or below 175% of the federal 11
poverty level and the basis for this determination; 12
(iii) the amount of funds needed, as determined by the Commission, 13
to retire arrearages for electric customers who have not received assistance in retiring 14
arrearages under the electric universal service program within the preceding 7 fiscal years, 15
and the basis for this determination; 16
(iv) the amount of funds needed, as determined by the Commission, 17
for bill assistance and arrearage retirement, respectively, for customers for whom income 18
limitations may b e waived under subsection (a)(7) of this section, and the basis for each 19
determination; 20
(v) the impact on customers’ rates, including the allocation among 21
customer classes, from collecting the total amount recommended by the Commission under 22
item (i) of this paragraph; and 23
(vi) the impact of using other federal poverty level benchmarks on 24
costs and the effectiveness of the electric universal service program. 25
(2) (i) To assist the Commission in preparing its recommendations 26
under paragraph (1) of this subsection, the Office [of Home Energy Programs] shall report 27
to the Commission each year on: 28
1. the number of customers and the amount of distributions 29
made to fuel customers under the Maryland Energy Assistance Program established under 30
[Title 5, Subtitle 5A of the Human Services Article] THIS SUBTITLE, identified by funding 31
source and fuel source; 32
2. the cost of outreach and education materials provided by 33
the Office [of Home Energy Programs] for the electric universal service program; and 34
148 HOUSE BILL 1532
3. the amount of money that the Department [of Human 1
Services] receives, and is projected to receive, for low–income energy assistance from: 2
A. the Maryland Strategic Energy Investment Fund under § 3
9–20B–05 of the State Government Article; 4
B. with respect to electric customers only, the Maryland 5
Energy Assistance Program; and 6
C. any other federal, State, local, or private source. 7
(ii) The Office [of Home Energy Programs] may satisfy the reporting 8
requirement of subparagraph (i)1 of this paragraph by providing the Commission with a 9
copy of material that contains the required information and that the Office [of Home 10
Energy Programs] submits to the federal government. 11
(iii) The Commission shall include the information provided by th e 12
Office [of Home Energy Programs] under subparagraph (i) of this paragraph in its report 13
to the General Assembly under paragraph (1) of this subsection. 14
(3) Subject to subsection (d)(2) of this section, the Commission shall include 15
the information prov ided by the Department of Housing and Community Development 16
under subsection (d)(1) of this section in its report to the General Assembly under 17
paragraph (1) of this subsection. 18
(4) The electric universal service program shall be subject to audit by the 19
Office of Legislative Audits in accordance with §§ 2 –1220 through 2 –1227 of the State 20
Government Article. 21
(d) (1) On or before January 1 of each year, the Department of Housing and 22
Community Development shall report, in accordance with § 2 –1257 of the S tate 23
Government Article, to the General Assembly on the low –income residential 24
weatherization component of the electric universal service program, including: 25
(i) the amount of funds expended during the preceding fiscal year; 26
(ii) the level of parti cipation during the preceding fiscal year, 27
including the number of households served in each area of the State; and 28
(iii) the types of projects, including the average cost per unit, 29
provided to households during the preceding fiscal year. 30
(2) The Department of Housing and Community Development may satisfy 31
the reporting requirement under paragraph (1) of this subsection by requesting the 32
Commission to include the information in the Commission’s report required under 33
HOUSE BILL 1532 149
subsection (c) of this section and providing the information to the Commission by the date 1
specified by the Commission. 2
(e) The total amount of funds to be collected for the electric universal service 3
program each year shall be $37 million, allocated in the following manner: 4
(1) $27.4 million shall be collected from the industrial and commercial 5
classes; and 6
(2) $9.6 million shall be collected from the residential class. 7
(f) (1) In this subsection, “fund” means the electric universal service program 8
fund. 9
(2) There is an electric universal service program fund. 10
(3) (i) 1. The Comptroller shall collect the revenue collected by 11
electric companies under subsection (b) of this section and place the revenue into the fund. 12
2. The General Assembly may appropriate funds 13
supplemental to the funds collected under subsubparagraph 1 of this subparagraph. 14
(ii) The fund is a continuing, nonlapsing fund that is not subject to § 15
7–302 of the State Finance and Procurement Article. 16
(iii) The purpose of the fund is to assist electric customers as provided 17
in subsection (a)(1) of this section. 18
(4) The Department [of Human Services ], with oversight by the 19
Commission, shall disburse the bill assistance and arrearage retirement funds in 20
accordance with the provisions of this section. 21
(5) The Comptroller annually shall disburse up to $1,000,000 of 22
low–income residential weatherization funds to the Department of Housing and 23
Community Development, as provided in the State budget. 24
(6) (i) At the end of a given fiscal year, any unexpended bill assistance 25
and arrearage retirement funds that were collected for that fiscal year shall be retained in 26
the fund and shall be made available for disbursement through the first 6 months of the 27
next fiscal year to customers who: 28
1. qualify for assistance from the fund during the given fiscal 29
year; 30
2. apply for assistance from the fund before the end of the 31
given fiscal year; and 32
150 HOUSE BILL 1532
3. remain eligible for assistance at the time services are 1
provided. 2
(ii) If the Commission determines that an extension is needed, the 3
Commission may extend up to an additional 6 months the period in which unexpended bill 4
assistance and arrearage retirement funds may be made available for disbursement under 5
subparagraph (i) of this paragraph. 6
(iii) 1. Any bill assistance and arrearage retirement funds 7
collected for a given fiscal year that are retained under subparagraph (i) of this paragraph 8
and that remain unexpended at the end of the period allowed under subparagraphs (i) and 9
(ii) of this paragraph shall be returned to each customer class in the proportion that the 10
customer class contributed charges to the fund for the given fiscal year in the form of a 11
credit toward the charge assessed in the following fiscal year. 12
2. If the Commissio n determines that it is impractical to 13
establish a rate credit for the amount to be returned for a given fiscal year to customers 14
under subsubparagraph 1 of this subparagraph, the Commission: 15
A. may defer the return for not more than 2 additional fiscal 16
years; and 17
B. shall combine the returned amount for that fiscal year 18
with amounts to be returned for the following fiscal years when calculating the rate credit 19
for the final fiscal year of the period. 20
(g) (1) If a party to a merger or acquisition of an electric company or an affiliate 21
of an electric company is required to distribute a credit to the customers in the electric 22
company’s service territory under an agreement with the Commission in connection with 23
the merger or acquisition, the Commiss ion shall consider the adequacy of the current 24
funding of the electric universal service program in providing assistance to customers who 25
qualify under this section. 26
(2) Any funds deposited into the electric universal service program fund as 27
a result of an agreement with the Commission in connection with a merger or acquisition 28
of an electric company or an affiliate of an electric company are in addition to, and may not 29
substitute for, funds collected under subsection (e) of this section. 30
(h) (1) An ar rearage prevention program under subsection (b)(4)(iv) of this 31
section is intended to prevent or reduce arrearages for low –income customers who have 32
participated in a low–income residential weatherization program. 33
(2) (i) The ARREARAGE PREVENTION program is intended as a 34
one–time grant of money to establish ongoing arrearage prevention activities in the State. 35
HOUSE BILL 1532 151
(ii) The Department [of Human Services ], in consultation with the 1
Commission, will select for the ARREARAGE PREVENTION program up to t wo public or 2
private entities as program recipients to administer the program. 3
(iii) At least one ARREARAGE PREVENTION program recipient must 4
primarily serve customers in a major urban area of the State. 5
(3) [A] AN ARREARAGE PREVENTI ON program recip ient must 6
demonstrate significant efforts to: 7
(i) secure additional private investment in rooftop solar 8
installation, including the use of ARREARAGE PREVENTION program money for credit 9
enhancement, direct project support, or support for program recipients and customers; and 10
(ii) provide employment in solar installation to unemployed and 11
underemployed individuals, with preference for those who reside in the l ocal jurisdiction 12
where the installations will occur. 13
(4) The ARREARAGE PREVENTION program may include the installation 14
of rooftop solar electricity generation equipment after energy efficiency measures at the 15
residential property have been completed. 16
Article – Local Government 17
1–1320. 18
(a) (1) In this section the following words have the meanings indicated. 19
(2) “Administration” means the Maryland Energy Administration. 20
(3) “Residential energy storage system” means a system, on a residential 21
customer’s side of the meter, used to store electrical energy, or mechanical, chemical, or 22
thermal energy that was once electrical energy, for use as electrical energy at a later date 23
or in a process that offsets electricity use at peak times. 24
(4) “Residential solar energy system” means any configuration of solar 25
energy devices that collects and distributes solar energy for the purpose of generating 26
electricity and that has a single residential interconnection with the electrical grid. 27
(5) “SOLAR PERMITTING FEE” MEANS A FEE EQUAL TO THE SUM OF 28
ALL CHARGES IMPOSED BY A COUNTY OR MUNIC IPALITY, INCLUDING CHARGES 29
IMPOSED BY A PROVIDER OF SOLAR PERMITTING SOFTWARE, IN CONNECTION WITH 30
AN APPLICATION FOR A RESIDENTIAL SOLAR ENERGY SYSTEM. 31
(6) “Solar permitting software” means[: 32
152 HOUSE BILL 1532
(i) the most recent version of a web –based platform, developed by 1
the National Renewable Energy Laboratory, that provides a standard portal for receiving 2
and processing residential solar energy system and residential energy storage system 3
permit information; or 4
(ii) automated software that functions to support the tracking and 5
approval of residential building permits for residential solar energy systems, residential 6
energy storage systems, main electrical panel upgrades, and main electrical panel devices] 7
SOFTWARE OR A COMBINATION OF SOFTWARE THAT: 8
(I) AUTOMATES PLAN REVIE W FOR RESIDENTIAL SO LAR 9
ENERGY SYSTEMS TO THE MOST RECENT VERSION OF, AS APPLICABLE: 10
1. THE MARYLAND BUILDING PERFORMANCE 11
STANDARDS; 12
2. THE NATIONAL ELECTRICAL CODE, INCLUDING 13
LEGALLY ADOPTED LOCAL AMENDMENTS; AND 14
3. THE STATE FIRE PREVENTION CODE; 15
(II) PRODUCES CODE–COMPLIANT APPROVALS; 16
(III) ISSUES A CODE–COMPLIANT PERMIT; 17
(IV) ACCEPTS ONLINE PAYME NTS FOR ANY PERMITTI NG FEES 18
IMPOSED; AND 19
(V) ISSUES PERMITS OR PE RMIT REVISIONS IMMED IATELY ON 20
RECEIPT OF ONLINE SUBMISSION OF PERMITTING FEE PAYMENTS, IF APPLICABLE. 21
(b) This section applies to all counties and municipalities. 22
(c) (1) Subject to subsection (d) of this section and except as provided in 23
subsection (e) of this section, on or before August 1, [2025] 2027, each county and 24
municipality shall implement solar permitting software for features supporting the 25
[tracking] APPLICATION SUBMISSION, TRACKING, and approval of residential building 26
permits for: 27
[(1)] (I) residential solar energy systems; 28
[(2)] (II) residential energy storage systems; 29
[(3)] (III) main electrical panel upgrades; and 30
HOUSE BILL 1532 153
[(4)] (IV) main electrical panel derates. 1
(2) (I) A COUNTY OR MUNICIPALITY SHALL: 2
1. COMPLETE A REMOTE OR IN–PERSON INSPECTION 3
REQUIRED FOR A PROJECT PERMITTED BY SOLAR PERMITTING SOFTWARE WITHIN 4
5 BUSINESS DAYS AFTER RECEIVING A PROPERLY COMPLETED REQUEST FO R 5
INSPECTION; AND 6
2. MAKE PUBLICLY A VAILABLE FOR THE MOS T RECENT 7
PREVIOUS QUARTER FOR WHICH DATA IS AVAILA BLE THE AVERAGE INSP ECTION 8
TIME FOR PROJECTS PERMITTED BY SOLAR PERMITTING SOFTWARE. 9
(II) BEGINNING JULY 1, 2028, IF A COUNTY OR MUNIC IPALITY 10
HAS HAD AN AVERAGE I N–PERSON INSPECTION TIME THAT IS GREATER THAN 5 11
BUSINESS DAYS, BASED ON THE IMMEDIATELY PRECEDING 12–MONTH PERIOD, THE 12
COUNTY OR MUNICIPALI TY SHALL MAKE AVAILA BLE AN OPTION FOR RE MOTE 13
INSPECTION THAT IS CAPABLE OF PROVIDING INSPECTION WITHIN 5 BUSINESS DAYS 14
AFTER RECEIPT OF A REQUEST FOR AN IN–PERSON INSPECTION. 15
(III) A COUNTY OR MUNICIPALI TY USING REMOTE INSP ECTION 16
IN ACCORDANCE WITH THIS SECTION MAY REQUIRE THIRD–PARTY CERTIFICATION 17
THAT THE PROJECT HAS BEEN INSTALLED IN AC CORDANCE WITH APPLIC ABLE 18
STATE AND LOCAL CODES. 19
(3) A COUNTY OR MUNICIPALI TY WITH AUTHORITY OV ER 20
PERMITTING A RESIDEN TIAL SOLAR ENERGY SY STEM MAY PERFORM , AT THE 21
COUNTY’S OR MUNICIPALITY ’S DISCRETION , AN IN –PERSON INSPECTION FO R A 22
PERMIT APPLICATION SUBMITTED THROUGH SOLAR PERMITTING SOFTWARE: 23
(I) IF REMOTE INSPECTION IS UNABLE TO BE COMPLETED; 24
(II) ON REQUEST OR CONCERN OF AN INSPECTOR; 25
(III) IF SUFFICIENT DATA I S NOT AVAILABLE TO E VALUATE THE 26
PERMIT APPLICATION; OR 27
(IV) IF A DOCUMENTED HEALTH OR SAFETY ISSUE EXISTS. 28
(4) REVIEW OF A PERMIT APPLICATION TO INSTALL A RESIDEN TIAL 29
SOLAR ENERGY GENERAT ING SYSTEM THAT IS S UBMITTED USING SOLAR 30
PERMITTING SOFTWARE SHALL BE LIMITED TO A DETERMINATION WHET HER THE 31
154 HOUSE BILL 1532
APPLICATION MEETS ALL HEALTH AND SAFETY REQUIREMENTS UNDER STATE AND 1
LOCAL LAW. 2
(5) (I) SUBJECT TO SUBPARAGRA PH (II) OF THIS PARAGRAPH , A 3
COUNTY OR MUNICIPALITY USING SOLAR PERMITTING SOFTWARE MAY CONDUCT A 4
MANUAL REVIEW OF SOFTWARE–APPROVED PERMITS TO: 5
1. PERFORM QUALITY–ASSURANCE AUDITS; 6
2. REVIEW SUBMISSIONS FLAGGED BY THE SOFTWARE; 7
3. REVIEW PERMIT APPLIC ATIONS SUBMITTED BY A 8
PERSON THAT HAS REPE ATEDLY FAILED TO OBT AIN REQUIRED PERMITS OR 9
REPEATEDLY FAILED TO PASS PERMIT INSPECTIONS; 10
4. CONSIDER PERMIT APPL ICATIONS WITH 11
NONSTANDARD STRUCTURAL CONDITIONS; OR 12
5. ADDRESS DOCUMENTED PUBLIC SAFETY CONCERNS. 13
(II) MANUAL REVIEW OF SOFT WARE–APPROVED PERMITS 14
SHALL BE COMPLETED WITHIN 5 BUSINESS DAYS AFTER THE PERMIT IS APPROVED. 15
(6) (I) THIS PARAGRAPH APPLIES ONLY TO A RESIDENTIAL SOLAR 16
ENERGY SYSTEM: 17
1. THAT IS OR WILL BE I NSTALLED ON A RESIDE NTIAL 18
ROOFTOP; AND 19
2. WITH A GENERATING CA PACITY OF LESS THAN 30 20
KILOWATTS, AS MEASURED BY THE A LTERNATING CURRENT R ATING OF THE 21
SYSTEM’S INVERTER. 22
(II) EXCEPT AS PROVIDED IN SUBPARAGRAPH (III) OF THIS 23
PARAGRAPH, BEGINNING AUGUST 1, 2027, A COUNTY OR MUNICIPA LITY MAY NOT 24
SET A PERMITTING FEE FOR PERMITS ISSUED B Y SOLAR PERMITTING S OFTWARE 25
THAT EXCEEDS $500 FOR RESIDENTIAL SOLAR ENERGY SYSTEMS. 26
(III) A THIRD–PARTY PAYMENT PROCES SING CHARGE MAY BE 27
ASSESSED FOR PERMITS ISSUED BY SOLAR PERMITTING SOFTWARE IN ADDITION TO 28
THE MAXIMUM PERMITTING FEE UNDER SUBPARAGRAPH (II) OF THIS PARAGRAPH. 29
HOUSE BILL 1532 155
(7) AN INSPECTOR MAY REVI EW CONSTRUCTION DOCU MENTS THAT 1
ARE PRODUCED BY THE SOLAR PERMITTING SOFTWARE. 2
(d) A county or municipality may not be required to comply with the requirements 3
of subsection (c) of this section if: 4
(1) the county or municipality does not require a permit for: 5
(i) residential solar energy systems; or 6
(ii) residential solar energy systems paired with a residential solar 7
energy storage system; or 8
(2) as determined by the Administration, the automated software is no 9
longer updated or maintained. 10
(e) The Administration shall delay the initial implementation or suspend the 11
requirements of subsection (c) of this section if there are insufficient State or federal funds 12
available to the Administration to provide financial support to a county or municipality 13
implementing solar permitting software as defined in subsection (a)(5)(i) of this section. 14
(F) AN ELECTRIC COMPANY, OTHER THAN A MUNICIPAL ELECTRIC UTILITY 15
OR A THIRD –PARTY CONTRACTOR FOR THE ELECTRIC COMPANY, SHALL PERFORM 16
ANY METER DISCONNECT ION AND RECO NNECTION NECESSARY F OR THE 17
INTERCONNECTION OF A RESIDENTIAL SOLAR EN ERGY SYSTEM , RESIDENTIAL 18
ENERGY STORAGE SYSTEM, OR BOTH, WITHIN 5 BUSINESS DAYS AFTER RECEIVING A 19
PROPERLY COMPLETED REQUEST FROM THE OWNER OR INSTALLER OF THE SYSTEM. 20
(G) THE ATTORNEY GENERAL MAY SEEK JUDICIAL ENFORCEMENT AGAINST 21
A COUNTY OR MUNICIPALITY THAT FAILS TO COMPLY WITH THIS SECTION. 22
Article – Natural Resources 23
3–302. 24
(a) (1) There is an Environmental Trust Fund. 25
(2) (i) For the purpose of this subtitle, there is established as an added 26
cost of electricity distributed to retail electric customers within the State, an environmental 27
surcharge per kilowatt hour of electric energy distributed in the State to be paid by any 28
electric company as defined in § 1–101 of the Public Utilities Article. 29
(ii) The Public Service Commission shall impose the surcharge per 30
kilowatt hour of electric energy distributed to retail electric customers within the State and 31
shall authorize the electric companies to add the full amount of the surcharge to retail 32
electric customers’ bills. 33
156 HOUSE BILL 1532
(iii) To the extent that the surcharge is not collected from retail 1
electric customers, the surcharge shall be deemed a cost of distribution and shall be allowed 2
and computed as such, together with other allowable expenses, for rate–making purposes. 3
(iv) Revenues from the surcharge shall be collected by the 4
Comptroller and placed in the Fund. 5
(b) (1) (i) The Secretary, in consultation with the Director of the Maryland 6
Energy Administration, annually shall coordinate the preparation of a budget required to 7
carry out the provisions of this subtitle. 8
(ii) On approval of the budget by the General Assembly, the Public 9
Service Commission shall establish the amount of the surcharge per kilowatt hour for the 10
fiscal year beginning July 1, 1972, and for each subsequent fiscal year. 11
(2) Notwithstanding any other provisions of this subtitle, the amount of the 12
surcharge for each account for each retail electric customer may not exceed the lesser of 13
0.15 mill per kilowatt hour or $1,000 per month and the surcharge may not continue beyond 14
fiscal year 2030. 15
(3) (i) The Comptroller shall maintain the method of collection of the 16
surcharge from the companies and the collections shall accrue to the Fund. 17
(ii) The Department shall credit against the amount required to be 18
paid into the Environmental Trust Fund by each electric company an amount equal to 19
0.75% of the total surcharge attributed to each company on the basis of the electricity 20
distributed within Maryland. 21
(c) (1) (i) The Secretary shall administer the Fund. 22
(ii) The Fund is subject to the provisions for financial management 23
and budgeting established by the Department of Budget and Management. 24
(iii) Any investment earnings of the Fund sh all be credited to the 25
General Fund of the State. 26
(iv) The Fund is a special, nonlapsing fund that is not subject to § 27
7–302 of the State Finance and Procurement Article. 28
(v) Except as provided in paragraph (2) of this subsection, the money 29
in the Fund shall be used to carry out the provisions of this subtitle as provided for in the 30
budget. 31
(vi) For the purposes of this subtitle, the Secretary, in consultation 32
with the Director of the Maryland Energy Administration, may execute appropriate 33
contracts with any State or federal agency, research organization, industry, or academic 34
HOUSE BILL 1532 157
institution to conduct the necessary research, construct or acquire, or both, real property 1
including physical predictive models, laboratories, buildings, land, and appurt enances, or 2
support the technological development of extraordinary systems related to power plants 3
designed to minimize environmental impact. 4
(vii) The Secretary may utilize available expertise in any other State 5
unit in the development, execution, and management of contracts and agreements on 6
projects relating to their areas of prime responsibility. 7
(2) Money in the Fund may be used for administrative costs calculated in 8
accordance with § 1–103(b)(2) of this article. 9
(d) [(1) The Maryland Energy Administration shall receive administrative and 10
fiscal support from the Fund for studies relating to the conservation or production of electric 11
energy. 12
(2) Fiscal support to the Maryland Energy Administration from the Fund 13
may not exceed $250,000 in any fiscal year. 14
(3)] The Chesapeake Bay Trust shall receive $375,000 from the Fund each 15
fiscal year for the purpose of funding energy conservation projects through the Thomas V. 16
Mike Miller, Jr., Chesapeake Conservation and Climate Corps Program, as provided under 17
§§ 8–1913 through 8–1924 of this article. 18
(e) The Legislative Auditor may conduct post audits of a fiscal and compliance 19
nature of the Fund and of the appropriations and expenditures made for the purposes of 20
this subtitle. The cost of the fiscal portion of the post audit examinations shall be an 21
operating cost of the Fund. 22
Article – Public Utilities 23
2–124. 24
(A) IT IS THE INTENT OF THE GENERAL ASSEMBLY THAT THE COMMISSION: 25
(1) INCORPORATE KEYWORD SEARCH FUNCTIONALITY FOR, AT A 26
MINIMUM, MATERIALS PUBLISHED ON THE COMMISSION’S WEBSITE ON AND AFTER 27
JULY 1, 2026, INCLUDING KEYWORD SEARCH FUNCTIONALITY WITHIN: 28
(I) THE CASE AND MAILLOG SEARCH; 29
(II) EACH CASE; 30
(III) EACH RULEMAKING; 31
158 HOUSE BILL 1532
(IV) EACH PUBLIC CONFERENCE TRANSCRIPT; AND 1
(V) TO THE EXTENT PRACTICABLE, EACH PUBLICATION; AND 2
(2) DEVELOP A LANDING PAGE TEMPLATE FOR MAJOR PROCEEDINGS, 3
INCLUDING RATE CASES , THAT VISUALLY TRACKS THE MAJOR PROCEEDING 4
THROUGH EACH STEP OF THE PROCESS. 5
(B) THE COMMISSION, IN CONSULTATION WITH THE MARYLAND ENERGY 6
ADMINISTRATION AND THE POWER PLANT RESEARCH PROGRAM, SHALL DEVELOP 7
DASHBOARDS TO TRACK PROGRESS TOWARD MAJO R STATE ENERGY PROGRAMS 8
AND GOALS UNDER COMMISSION OVERSIGHT, INCLUDING: 9
(1) NET ENERGY METERING; AND 10
(2) THE STATEWIDE ENERGY STORAGE GOAL UNDER § 7–216.1 OF 11
THIS ARTICLE. 12
4–203.1. 13
(A) (1) THIS SECTION APPLIES ONLY TO A PUBLIC SER VICE COMPANY 14
THAT IS AN INVESTOR –OWNED ELECTRIC COMPA NY, A GAS COMPANY , OR A 15
COMBINATION GAS AND ELECTRIC COMPANY. 16
(2) THIS SECTION DOES NOT APPLY TO A MUNICIPAL ELECTRIC 17
UTILITY OR AN ELECTRIC COOPERATIVE. 18
(B) IN ADDITION TO THE RE QUIREMENTS SET FORTH IN § 4–203 OF THIS 19
SUBTITLE, A PUBLIC SERVICE COM PANY MAY NOT INITIAT E A PR OCEEDING THAT 20
MAY LEAD TO A RATE CHANGE UNLESS THE PUBLIC SERVICE COMPANY: 21
(1) NOTIFIES CUSTOMERS , THROUGH A BILL INSER T OR SEPARATE 22
E–MAIL AND IN A FORM AND MANNER APPROVED THE COMMISSION: 23
(I) THAT THE PUBLIC SERV ICE COMPANY IS INITI ATING A 24
PROCEEDING THAT MAY LEAD TO A RATE CHANGE; AND 25
(II) THAT INFORMATION ABO UT THE PROCEEDING IS OR WILL 26
BE AVAILABLE ON THE COMMISSION’S WEBSITE; AND 27
(2) INCLUDES IN THE BILL INSERT OR SEPARATE E –MAIL REQUIRED 28
UNDER ITEM (1) OF THIS SUBSECTION THE PORTION OF THE ANNUAL RATE REPORT 29
HOUSE BILL 1532 159
PUBLISHED UNDER SUBS ECTION (D) OF THIS SECTION THAT PERTAINS TO THE 1
PUBLIC SERVICE COMPANY INITIATING THE PROCEEDING. 2
(C) A PUBLIC SERVICE COMPA NY SHALL INCLUDE IN EACH RETAIL 3
CUSTOMER’S BILL AND AUTOMATIC PAYMENT E–MAIL THE FOLLOWING STATEMENT: 4
“THE MARYLAND GENERAL ASSEMBLY ESTABLISHED THE PUBLIC SERVICE 5
COMMISSION TO REGULAT E PUBLIC SERVICE COM PANIES DOING BUSINES S IN 6
MARYLAND TO ENSURE TH E ACTIVITIES OF THE PUBLIC SERVICE COMPANIES ARE 7
CONSISTENT WITH THE PUBLIC INTERES T. FOR INFORMATION ON HO W TO 8
PARTICIPATE IN OR OB SERVE A PROCEEDING B EFORE THE PUBLIC SERVICE 9
COMMISSION, PLEASE VISIT THE PUBLIC SERVICE COMMISSION’S WEBSITE.”. 10
(D) (1) ON OR BEFORE JANUARY 1, 2028, AND EACH JANUARY 1 11
THEREAFTER, THE COMMISSION, IN CONS ULTATION WITH THE OFFICE OF 12
PEOPLE’S COUNSEL, SHALL DEVELOP AND PU BLISH ON ITS WEBSITE AN ANNUAL 13
RATE REPORT FOR EACH PUBLIC SERVICE COMPANY OPERATING IN THE STATE. 14
(2) THE ANNUAL RATE REPOR T SHALL EXPLAIN , IN NONTECHNICAL 15
TERMS, THE OBSERVED RATE TRENDS FOR EACH PUBL IC SERVICE COMPANY , 16
INCLUDING: 17
(I) A VISUAL GRAPHIC DEPICTING THE 10–YEAR RATE CHANGE 18
TREND BY YEAR; 19
(II) IDENTIFYING COSTS AS SOCIATED WITH TRANSM ISSION, 20
DISTRIBUTION, AND STANDARD–OFFER OR COMMODITY SERVICE; AND 21
(III) ACCOUNTING FOR ALL CUSTOM ER BILL LINE ITEMS , 22
INCLUDING RATE RIDERS. 23
(3) ON OR BEFORE MARCH 1, 2028, AND EACH MARCH 1 24
THEREAFTER, A PUBLIC SERVICE COMPANY SHALL: 25
(I) POST THE ANNUAL RATE REPORT ON THE PUBLIC SERVICE 26
COMPANY’S WEBSITE; AND 27
(II) PROVIDE TO EACH RETAIL CUSTO MER, THROUGH A BILL 28
INSERT OR SEPARATE E–MAIL, A LINK TO THE ANNUAL RATE REPORT. 29
(4) THE OFFICE OF PEOPLE’S COUNSEL SHALL BRING A CASE TO THE 30
COMMISSION IF THE OFFICE DETERMINES THA T AN ANNUAL RATE REP ORT 31
160 HOUSE BILL 1532
PUBLISHED BY THE COMMISSION INCLUDES INCORRECT O R MISLEADING 1
INFORMATION. 2
4–212. 3
(a) (1) In this section the following words have the meanings indicated. 4
(2) “Contract capacity” means the amount of monthly peak load 5
requirements: 6
(i) that is mutually agreed to by an electr ic company and a large 7
load customer for each month remaining in a contract term after the load ramp period has 8
ended; and 9
(ii) for which: 10
1. the electric company agrees to provide all of the 11
components of retail electric service subject to the terms and conditions in its tariffs; and 12
2. the large load customer agrees to purchase service at that 13
load level for the stated term of the contract and under the same terms and conditions as 14
those stated in the contract. 15
(3) “Large load customer” means a commercial or industrial customer for 16
retail electric service that: 17
(i) has or is projected to have an aggregate monthly demand of at 18
least [100] 25 megawatts; and 19
(ii) has or is projected to have a load factor of over [80%] 75%. 20
(4) “Load ramp period” means the period of time from commencement of 21
service until a large load customer’s billing calculation is based on the full contract capacity. 22
(b) It is the intent of the General Assembly that residential retail electric 23
customers in th e State should not bear the financial risks associated with large load 24
customers interconnecting to the electric system serving the State. 25
(c) (1) (i) On or before September 1, 2026, each investor –owned electric 26
company and each electric cooperative shall submit to the Commission for approval a 27
specific rate schedule for large load customers that accomplishes the intent of subsection 28
(b) of this section. 29
(ii) Each municipal electric utility that receives an application for 30
retail electric service from a large load customer shall submit to the Commission for 31
approval a specific rate schedule for large load customers. 32
HOUSE BILL 1532 161
(2) (i) Service under a specific rate schedule shall be available to large 1
load customers that will use, within the initial contract term: 2
1. a monthly maximum demand of more than [100] 25 3
megawatts at a single location; or 4
2. an aggregated contract capacity in the electric company’s 5
service territory of more than [100] 25 megawatts. 6
(ii) Except as provided in subparagraph (iii) of this paragraph, large 7
load customers that qualify for a specific rate schedule after the effective date of that 8
schedule: 9
1. shall take service under the specific rate schedule; and 10
2. may not be allowed to take service under any other 11
existing schedule. 12
(iii) A specific rate schedule does not apply to: 13
1. the facility of an existing large load customer that has 14
signed a service agreement before the effective date of the schedule if: 15
[1.] A. the large load customer’s existing load does not 16
expand by more than 25 megawatts at that facility under the existing service agreement; 17
or 18
[2.] B. the large load customer does not sign a new service 19
agreement to expand the facility’s load by more than 25 megawatts above the contract 20
capacity of the existing service agreement; OR 21
2. ELECTRIFIED THERMAL ENERGY GENERATION 22
ASSETS INTERCONNECTED WITH A DISTRICT EN ERGY SYSTEM IF , AS DETERMINED 23
BY THE COMMISSION, THE OPERATIONAL CHARACTERISTICS OF THE G ENERATION 24
ASSETS DO NOT POSE A MATERIAL RELIABILITY RISK. 25
(d) In making a determination on whether to approve a specific rate schedule 26
submitted under subsection (c) of this section, the Commission shall consider whether the 27
rate schedule: 28
(1) requires a large load customer t o cover the just and reasonable costs 29
associated with any electric transmission or distribution system buildout required to: 30
(i) interconnect the large load customer to the electric system 31
serving the State; or 32
162 HOUSE BILL 1532
(ii) serve the large load customer; 1
(2) protects residential retail electric customers from the financial risks 2
associated with large load customers through the use of: 3
(i) load ramp periods; 4
(ii) minimum billing demand for electric distribution and 5
transmission service that is a high percentage of a large load customer’s contract capacity; 6
(iii) long–term contractual commitments and exit fees; 7
(iv) guarantee or collateral requirements; and 8
(v) penalties and reimbursement requirements for the large load 9
customer if the large load customer delays or cancels a project after the electric company 10
has begun buildout to accommodate the large load customer; and 11
(3) sufficiently ensures that the allocation of costs to large load customers 12
under the schedule does not result in customers that are not large load customers 13
unreasonably subsidizing the costs of large load customers under the schedule. 14
(e) Before signing a contract for service under a specific rate schedule submitted 15
under subsection (c) of this section, a large l oad customer under the schedule is required 16
to: 17
(1) submit a request for a load study to determine the necessary contract 18
capacity for the large load customer and pay any applicable fees associated with the study; 19
(2) designate a specific site where the large load customer’s project will be 20
constructed and served by the electric company; 21
(3) own or have the exclusive right to use the land designated in item (2) of 22
this subsection for the project; and 23
(4) meet any other requirements specified under the rate schedule. 24
(f) (1) On or before June 1, 2026, the Commission shall adopt regulations to 25
carry out this section. 26
(2) The regulations shall: 27
(i) establish minimum notice requirements and deadlines related to 28
load study requests and contract terminations and adjustments; 29
HOUSE BILL 1532 163
(ii) if considered necessary by the Commission, specify common 1
forms of acceptable collateral to satisfy the requirements of this section; and 2
(iii) establish deadlines related to completion of load studies and 3
payment of fees. 4
(G) (1) THIS SUBSECTION APPLIES ONLY TO A DATA CENTER, AS DEFINED 5
IN § 11–239 OF THE TAX – GENERAL ARTICLE, THAT IS A LARGE LOAD CUSTOMER. 6
(2) IT IS THE INTENT OF T HE GENERAL ASSEMBLY THAT A DATA 7
CENTER THAT LOCATES IN THE STATE ON OR AFTER JULY 1, 2026: 8
(I) HIRE, TO THE MAXIMUM EXTEN T POSSIBLE , IN–STATE 9
WORKERS FOR CONSTRUCTION AND ONGOING OPERATIONS; 10
(II) PROVIDE SIGNIFICANT INTERCONNECTION CAPACITY FOR 11
THE DATA CENTER’S LOAD THROUGH: 12
1. BEHIND–THE–METER ENERGY STORAGE; 13
2. PURCHASING CAPACITY WITH NEWLY 14
INTERCONNECTED ENERGY STORAGE FACILITIES WITHIN THE LOAD ZONE OR LOCAL 15
DELIVERY AREA; 16
3. PURCHASING CAPACITY WITH NEW CARBON –FREE 17
ASSETS WITHIN THE LOAD ZONE OR LOCAL DELIVERY AREA; AND 18
4. DEMAND RESPONSE; 19
(III) PROACTIVELY ENGAGE WITH LOCAL COMMUNITIES, LOCAL 20
GOVERNMENTS, AND THE STATE DURING PLANNING , CONSTRUCTION, AND 21
OPERATION OF THE DATA CENTER; AND 22
(IV) DEVELOP AND MAKE PUB LICLY AVAILABLE A WR ITTEN 23
PLAN FOR ACHIEVING ITEMS (I), (II), AND (III) OF THIS PARAGRAPH. 24
7–109. 25
(A) THIS SECTION DOES NOT APPLY TO AN ELECTRIC COOPERATIVE. 26
(B) A PERSON THAT OWNS OR OPERATES A TRANSMISS ION LINE THAT IS 27
DESIGNED TO CARRY A VOLTAGE IN EXCESS OF 69,000 VOLTS AND IS LOCATED IN 28
THE STATE SHALL PARTICIPA TE AS A MEMBER IN A REGION AL TRANSMISSION 29
ORGANIZATION. 30
164 HOUSE BILL 1532
7–207. 1
(a) (1) In this section the following words have the meanings indicated. 2
(2) “ADVANCED TRANSMISSION TECHNOLOGIES” MEANS: 3
(I) GRID–ENHANCING TECHNOLOGIES; 4
(II) HIGH PERFORMANCE CONDUCTORS; OR 5
(III) STORAGE AS A TRANSMISSION ASSET. 6
(3) “Brownfields site” means: 7
(i) a former industrial or commercial site identified by federal or 8
State laws or regulation as contaminated or polluted; 9
(ii) a closed landfill regulated by the Department of the 10
Environment; or 11
(iii) mined land. 12
[(3)] (4) (i) “Construction” means: 13
1. any physical change at a site, including fabrication, 14
erection, installation, or demolition; or 15
2. the entry into a binding agreement or cont ractual 16
obligation to purchase equipment exclusively for use in construction in the State or to 17
undertake a program of actual construction in the State which cannot be canceled or 18
modified without substantial loss to the owner or operator of the proposed g enerating 19
station. 20
(ii) “Construction” does not include a change that is needed for the 21
temporary use of a site or route for nonutility purposes or for use in securing geological 22
data, including any boring that is necessary to ascertain foundation conditions. 23
[(4)] (5) “Generating station” does not include: 24
(i) a generating unit or facility that: 25
1. is used for the production of electricity; 26
2. has the capacity to produce not more than 2 megawatts of 27
alternating current; and 28
HOUSE BILL 1532 165
3. is installed with equipment that prevents the flow of 1
electricity to the electric grid during time periods when the electric grid is out of service; 2
(ii) a combination of two or more generating units or facilities that: 3
1. are used for the produc tion of electricity from a solar 4
photovoltaic system or an eligible customer–generator that is subject to the provisions of § 5
7–306 of this title; 6
2. are located on the same property or adjacent properties; 7
3. have the capacity to produce, when c alculated 8
cumulatively for all generating units or facilities on the property or adjacent property, more 9
than 2 megawatts but not more than 14 megawatts of alternating current; and 10
4. for each individual generating unit or facility: 11
A. has the capacity to produce not more than 2 megawatts of 12
alternating current; 13
B. is separately metered by the electric company; and 14
C. does not export electricity for sale on the wholesale market 15
under an agreement with PJM Interconnection, LLC; 16
(iii) a generating unit or facility that: 17
1. is used for the production of electricity for the purpose of: 18
A. onsite emergency backup at a facility when service from 19
the electric company is interrupted due to electric distribution or transmission syste m 20
failure or when there is equipment failure at a site where critical infrastructure is located; 21
and 22
B. test and maintenance operations necessary to ensure 23
functionality of the generating unit or facility in the event of a service interruption from 24
the electric company due to electric distribution or transmission system failure or when 25
there is equipment failure at a site where critical infrastructure is located; 26
2. is installed with equipment that prevents the flow of 27
electricity to the electric grid; 28
3. is subject to a permit to construct issued by the 29
Department of the Environment; and 30
166 HOUSE BILL 1532
4. is installed at a facility that is part of critical 1
infrastructure if the facility complies with all applicable regulations regarding noise level 2
and testing hours; or 3
(iv) a combination of two or more generating units or facilities that 4
satisfy item (iii) of this paragraph. 5
[(5)] (6) (I) “GRID–ENHANCING TECHNOLOGY ” MEANS 6
HARDWARE OR SOFTWARE THAT INCREASES THE C APACITY, EFFICIENCY, OR 7
RELIABILITY OF EXISTING TRANSMISSION SYSTEMS. 8
(II) “GRID–ENHANCING TECHNOLOGY” INCLUDES: 9
1. A SYSTEM THAT USES R EAL–TIME OR FORECASTED 10
WEATHER AND OPERATING CONDITIONS TO DETE RMINE THE TRANSFER C APACITY 11
OF TRANSMISSION SYSTEMS; 12
2. TECHNOLOGY THAT MODULATES CIRCU IT 13
IMPEDANCE OR OTHER ELECTRICAL PROPERTIES TO REROUTE POWER FLOWS AND 14
RELIEVE CONGESTION; AND 15
3. SOFTWARE THAT IDENTI FIES SWITCHING 16
CONFIGURATIONS TO RE ROUTE ELECTRICITY AN D ALLEVIATE TRANSMIS SION 17
CONSTRAINTS. 18
(7) “HIGH PERFORMANCE CONDUCTO RS” MEANS CONDUCTORS , 19
INCLUDING ADVANCED STEEL CORE CONDUCTORS, CARBON FIBER AND COMPOSITE 20
CORE CONDUCTORS, AND SUPERCONDUCTORS, THAT, COMPARED TO TRADITIONAL 21
ALUMINUM–CONDUCTOR STEEL–REINFORCED CONDUCTORS: 22
(I) HAVE A SIMILAR DIAMETER AND WEIGHT; AND 23
(II) 1. HAVE A DIRECT CURREN T ELECTRICAL RESISTA NCE 24
THAT IS AT LEAST 10% LESS; 25
2. INCREASE THE POTENTI AL ENERGY CARRYING 26
CAPACITY BY AT LEAST 75%; OR 27
3. HAVE A COEFFICIENT OF THERMAL EXPANSION THAT 28
IS AT LEAST 30% LESS. 29
(8) (i) “Mined land” means the surface or subsurface of an area in which 30
surface mining operations will be, are being, or have been conducted. 31
HOUSE BILL 1532 167
(ii) “Mined land” includes: 1
1. private ways and roads used for mining appurtenant to 2
any surface mining area; 3
2. land excavations; 4
3. workings; and 5
4. overburden. 6
[(6)] (9) “Qualified generator lead line” means [an overhead ] A 7
transmission line [that is ] AND ANY ASSOCIATED A DVANCED TRANSMISSION 8
TECHNOLOGY designed to carry, OR SUPPORT THE CARRYING OF, a voltage in excess of 9
69,000 volts and would allow an out –of–state Tier 1 or Tier 2 renewable source to 10
interconnect with a portion of the electric system in Maryland that is owned by an electric 11
company. 12
(10) “STORAGE AS A TRANSMIS SION AS SET” MEANS AN ENERGY 13
STORAGE FACILITY THAT: 14
(I) IS PLANNED , OPERATED, AND RECOVERS COSTS A S A 15
TRANSMISSION FACILITY THAT PROVIDES ONE OR MORE TRANSMISSION SERVICES, 16
INCLUDING CONGESTION RELIEF, VOLTAGE SUPPORT, POWER–FLOW CONTROL, OR 17
STABILITY UNDER ANY PJM TARIFFS AND APPLICABLE FERC ORDERS; 18
(II) EXCEPT AS AUTHORIZED FOR TRANSMISSION ASS ETS, IS 19
NOT DISPATCHED FOR WHOLESALE ENERGY STORAGE; AND 20
(III) IS ELIGIBLE FOR COST RECOVERY IN TRANSMISSION RATES. 21
(b) (3) (i) Except as provided in paragraph (4) of this subsection, unless a 22
certificate of public convenience and necessity for the construction is first obtained from the 23
Commission, a person may not begin construction of [an overhead] A transmission line that 24
is designed to carry a voltage in excess of 69,000 volts or exercise a right of condemnation 25
with the construction. 26
(ii) [For] SUBJECT TO SUBPARAGRA PH (III) OF THIS 27
PARAGRAPH, FOR construction related to an existing [overhead] transmission line, the 28
Commission may waive the requirement in subparagraph (i) of this paragraph for good 29
cause. 30
(III) WHEN DETERMINING WHET HER TO WAIVE THE 31
REQUIREMENT IN SUBPARAGRAPH (I) OF THIS PARAGRAPH FOR GOOD CAUSE, THE 32
COMMISSION SHALL CONSIDER: 33
168 HOUSE BILL 1532
1. THE COST OF THE CONSTRUCTION ON RATEPAYERS; 1
2. THE IMPACT OF THE CO NSTRUCTION ON THE 2
ENVIRONMENT; AND 3
3. ANY OTHER MATTER THE COMMISSION CONSIDERS 4
APPROPRIATE. 5
(IV) AN APPLICANT FOR A CE RTIFICATE OF PUBLIC 6
CONVENIENCE AND NECESSITY FOR THE CONSTRUCTION OF A TRANSMISSION LINE 7
SHALL INCLUDE IN ITS APPLICATION: 8
1. EVIDENCE THAT THE AP PLICANT CONSIDERED , AS 9
PART OF THE APPLICANT’S INTERNAL PLANNING PROCESS, ANY LOCAL, STATE, OR 10
FEDERAL GOVERNMENT T RANSMISSION PLANNING PROCESSES AND ANY 11
TRANSMISSION PLANNING PROCESSES REQUIRED BY PJM, INCLUDING: 12
A. ALTERNATIVES TO THE PROPOSED TRANSMISSIO N 13
LINE; 14
B. AN ANALYSIS OF ADVAN CED TRANSMISSION 15
TECHNOLOGIES AND WHETHER THE USE OF THE TECHNOLOGIES WILL ADDRESS THE 16
SAME NEED , IN WHOLE OR IN PART , MORE EFFICIENTL Y OR COST –EFFECTIVELY 17
THAN THE PROPOSED TRANSMISSION LINE; 18
C. ALTERNATIVE ROUTINGS; 19
D. TECHNOLOGIES OR MODIFICATIONS TO ONE OR MORE 20
ELECTRIC DISTRIBUTIO N SYSTEMS IN THE STATE THAT ARE OWNED BY THE 21
APPLICANT OR ITS AFF ILIATES AND THAT COU LD AVOID THE NEED FOR THE 22
TRANSMISSION LINE; 23
E. THE COST TO RATEPAYERS; 24
F. RESOURCE ADEQUACY; 25
G. ENERGY EFFICIENCY AND DEMAND RESPONSE; 26
H. THE IMPACT OF THE PROJECT ON THE ENVIRONMENT; 27
I. A REVIEW OF ANY RELE VANT DISTRIBUTION SY STEM 28
INFORMATION MADE AVAILABLE TO THE APPLICANT THA T WOULD DEMONSTRATE 29
HOUSE BILL 1532 169
THAT THE TRANSMISSIO N LINE WOULD COST –EFFECTIVELY SERVE TH E 1
INTEGRATED ELECTRIC TRANSMISSION–DISTRIBUTION SYSTEM; AND 2
J. ANY OTHER INFORMATIO N THE COMMISSION 3
CONSIDERS APPROPRIATE; AND 4
2. AN ANALYSIS OF THE T RANSMISSION LINE ROU TE 5
SELECTION, INCLUDING: 6
A. RISKS ASSOCIATED WITH THE COSTS ESTIMATES; 7
B. COST CONTAINMENT EFFORTS; 8
C. CONSTRUCTION SCHEDULE; 9
D. ACQUISITION OF LAND AND RIGHTS–OF–WAY; 10
E. OUTAGE COORDINATION; AND 11
F. THE APPLICANT ’S EXPERIENCE WORKING WITH 12
COMMUNITIES AND STAKEHOLDERS ON ROUTE CONSIDERATION. 13
[(iii)] (V) Notwithstanding subparagraph (i) of this paragraph and 14
subject to subparagraph [(iv)] (VI) of this paragraph, the Commission may issue a 15
certificate of public convenience and necessity for the construction of [an overhead ] A 16
transmission line only if the applicant for the certificate of public convenience and 17
necessity: 18
1. is an electric company; or 19
2. is or, on the start of commercial operation of the 20
[overhead] transmission line, will be subject to regulation as a public utility by an officer 21
or an agency of the United States. 22
[(iv)] (VI) The Commission may not issue a certifica te of public 23
convenience and necessity for the construction of [an overhead] A transmission line in the 24
electric distribution service territory of an electric company to an applicant other than an 25
electric company if: 26
1. the [overhead] transmission li ne is to be located solely 27
within the electric distribution service territory of that electric company; and 28
2. the cost of the [overhead] transmission line is to be paid 29
solely by that electric company and its ratepayers. 30
170 HOUSE BILL 1532
[(v)] (VII) 1. This subparagraph applies to the construction of 1
[an overhead ] A transmission line for which a certificate of public convenience and 2
necessity is required under this section. 3
2. On issuance of a certificate of public convenience and 4
necessity for the construction of [an overhead] A transmission line, a person may acquire 5
by condemnation, in accordance with Title 12 of the Real Property Article, any property or 6
right necessary for the construction or maintenance of the transmission line. 7
(4) (i) [Except as provided in subparagraph (ii) of this paragraph, for 8
construction related to an existing overhead transmission line designed to carry a voltage 9
in excess of 69,000 volts, the Commission shall waive the requirement to obtain a certificate 10
of public convenience and necessity if the Commission finds that the construction does not: 11
1. require the person to obtain new real property or 12
additional rights–of–way through eminent domain; or 13
2. require larger or higher structures to accommodate: 14
A. increased voltage; or 15
B. larger conductors. 16
(ii) 1. For construction related to an existing overhead 17
transmission line, including repairs, that is necessary to avoid an imminent safety hazard 18
or reliability risk, a person may undertake the necessary construction] A PERSON MAY 19
COMPLETE CONSTRUCTIO N RELATED TO AN EXIS TING TRANSMISSION LI NE, 20
INCLUDING REPAIRS, IF THE CONSTRUCTION IS NECESSARY TO AVOID AN IMMINENT 21
SAFETY HAZARD OR RELIABILITY RISK. 22
[2.] (II) Within 30 days after constructio n is completed 23
under [subsubparagraph 1 of this subparagraph ] SUBPARAGRAPH (I) OF THIS 24
PARAGRAPH, a person shall file a report with the Commission describing the work that 25
was completed. 26
(c) (1) On receipt of an application for a certificate of public co nvenience and 27
necessity under this section, the Commission shall provide notice immediately or require 28
the applicant to provide notice immediately of the application to: 29
(i) the Department of Planning; 30
(ii) the governing body, and if applicable the executive, of each 31
county or municipal corporation in which any portion of the generating station, [overhead] 32
transmission line, or qualified generator lead line is proposed to be constructed; 33
HOUSE BILL 1532 171
(iii) the governing body, and if applicable the executive, of each 1
county or municipal corporation within 1 mile of the proposed location of the generating 2
station, [overhead] transmission line, or qualified generator lead line; 3
(iv) each member of the General Assembly representing any part of 4
a county in which any portion of the generating station, [overhead] transmission line, or 5
qualified generator lead line is proposed to be constructed; 6
(v) each member of the General Assembly representing any part of 7
each county within 1 mile of the proposed location of the generating station, [overhead] 8
transmission line, or qualified generator lead line; 9
(vi) for a proposed [overhead] transmission line, each owner of land 10
and each owner of adjacent land; and 11
(vii) all other interested persons. 12
(2) The Commission, when sending the notice required under paragraph 13
(1) of this subsection, shall forward a copy of the application to: 14
(i) each appropriate State unit and unit of local g overnment for 15
review, evaluation, and comment regarding the significance of the proposal to State, 16
area–wide, and local plans or programs; and 17
(ii) each member of the General Assembly included under paragraph 18
(1)(iv) and (v) of this subsection who requests a copy of the application. 19
(3) On receipt of an application for a certificate of public convenience and 20
necessity under this section, the Commission shall provide notice of the application on the 21
Commission’s social media platforms and website. 22
(d) (1) (i) The Commission shall provide an opportunity for public 23
comment and hold a public hearing on the application for a certificate of public convenience 24
and necessity in each county and municipal corporation in which any portion of the 25
construction of a generating station, [an overhead] A transmission line designed to carry a 26
voltage in excess of 69,000 volts, or a qualified generator lead line is proposed to be located. 27
(ii) The Commission may hold the public hearing virtually rather 28
than in person if the Commission provides a comparable opportunity for public comment 29
and participation in the hearing. 30
(2) The Commission shall hold the public hearing jointly with the 31
governing body of the county or municipal corporation in which any portion of the 32
construction of the generating station, [overhead] transmission line, or qualified generator 33
lead line is proposed to be located, unless the governing body declines to participate in the 34
hearing. 35
172 HOUSE BILL 1532
(3) (i) Once in each of the 4 successive weeks imm ediately before the 1
hearing date, the Commission shall provide weekly notice of the public hearing and an 2
opportunity for public comment: 3
1. by advertisement in a newspaper of general circulation in 4
the county or municipal corporation affected by the application; 5
2. on two types of social media; and 6
3. on the Commission’s website. 7
(ii) Before a public hearing, the Commission shall coordinate with 8
the governing body of the county or municipal corporation in which any portion of the 9
construction of the generating station, [overhead] transmission line, or qualified generator 10
lead line is proposed to be located to identify additional options for providing, in an efficient 11
and cost–effective manner, notice of the public hearing through other ty pes of media that 12
are familiar to the residents of the county or municipal corporation. 13
(4) (i) On the day of a public hearing, an informational sign shall be 14
posted prominently at or near each public entrance of the building in which the public 15
hearing will be held. 16
(ii) The informational sign required under subparagraph (i) of this 17
paragraph shall: 18
1. state the time, room number, and subject of the public 19
hearing; and 20
2. be at least 17 by 22 inches in size. 21
(iii) If the public hearing is conducted virtually rather than in person, 22
the Commission shall provide information on the hearing prominently on the Commission’s 23
website. 24
(5) (i) The Commission shall ensure presentation and 25
recommendations from each interested State unit, and shall allow representatives of each 26
State unit to sit during hearing of all parties. 27
(ii) The Commission shall allow each State unit 15 days after the 28
conclusion of the hearing to modify the State unit’s initial recommendations. 29
(e) The Commission sh all take final action on an application for a certificate of 30
public convenience and necessity only after due consideration of: 31
HOUSE BILL 1532 173
(1) the recommendation of the governing body of each county or municipal 1
corporation in which any portion of the construction of the generating station, [overhead] 2
transmission line, or qualified generator lead line is proposed to be located; 3
(2) the effect of the generating station, [overhead] transmission line, or 4
qualified generator lead line on: 5
(i) the stability and reliability of the electric system; 6
(ii) economics; 7
(iii) esthetics; 8
(iv) historic sites; 9
(v) WHEN APPLICABLE , aviation safety as determined by the 10
Maryland Aviation Administration and the administrator of the Federal Aviation 11
Administration; 12
(vi) when applicable, air quality and water pollution; and 13
(vii) the availability of means for the required timely disposal of 14
wastes produced by any generating station; 15
(3) the effect of climate change on the generating station, [overhead] 16
transmission line, or qualified generator lead line based on the best available scientific 17
information recognized by the Intergovernmental Panel on Climate Change; 18
(4) for a generating station: 19
(i) the consistency of the application with the comprehensive plan 20
and zoning of each county or municipal corporation where any portion of the generating 21
station is proposed to be located; 22
(ii) the efforts to resolve any issues presented by a county or 23
municipal corporation where any portion of the generating station is proposed to be located; 24
(iii) the impact of the generating station on the quantity of annual 25
and long–term statewide greenhouse gas emissions, measured in the manner specified in § 26
2–1202 of the Environment Article and based on the best available scientific information 27
recognized by the Intergovernmental Panel on Climate Change; and 28
(iv) the consistency of the application with the State’s climate 29
commitments for reducing statewide greenhouse gas emissions, including those specified 30
in Title 2, Subtitle 12 of the Environment Article; and 31
174 HOUSE BILL 1532
(5) for a solar energy generating station specified under § 7 –218 of this 1
subtitle, whether the owner of a proposed solar energy generating station complies with 2
the site requirements under § 7–218(f) of this subtitle. 3
(f) For the construction of [an overhead] A transmission line, in addition to the 4
considerations listed in subsection (e) of this section, the Commission shall: 5
(1) take final action on an application for a certificate of public convenience 6
and necessity only after due consideration of: 7
(i) the need to meet existing and future demand for electric service; 8
[and] 9
(ii) EVIDENCE THAT ALTERN ATIVES HAVE BEEN CON SIDERED 10
BY THE APPLICANT IN ACCORDANCE WITH SUBSECTION (B)(3)(IV) OF THIS SECTION; 11
AND 12
(III) for construction related to a new [overhead] transmission line, 13
the alternative routes that the applicant considered, including the estimated capital and 14
operating costs of each alternative route and a statement of the reason why the alternative 15
route was rejected; 16
(2) require as an ongoing condition of the certificate of public convenience 17
and necessity that an applicant comply with: 18
(i) all relevant agreements with PJM Interconnection, L.L.C., or its 19
successors, related to the ongoing operation and maintenance of the [overhead] 20
transmission line; and 21
(ii) all obligations imposed by the North America Electric Reliability 22
Council and the Federal Energy Regulatory Commission related to the ongoing operation 23
and maintenance of the [overhead] transmission line; and 24
(3) require the applicant to identify whether the [overhead] transmission 25
line is proposed to be constructed on: 26
(i) an existing brownfields site; 27
(ii) property that is subject to an existing easement; or 28
(iii) a site where a tower structure or components of a tower structure 29
used to support an overhead transmission line exist. 30
(g) (1) The Commission may not authorize, and a person may not undertake, 31
the construction of an overhead transmission line that is aligned with and within 1 mile of 32
either end of a public airport runway, unless: 33
HOUSE BILL 1532 175
(i) the Federal Aviation Administration determines that the 1
construction of an overhead transmission line will not constitute a hazard to air navigation; 2
and 3
(ii) the Maryland Aviation Administration concurs in that 4
determination. 5
(2) A privately owned airport runway shall qualify as a public airport 6
runway under this subsection only if the runway has been on file with the Federal Aviation 7
Administration for at least 2 years as being open to the public without restriction. 8
(h) (1) A county or municipal corporation has the authority to approve or deny 9
any local permit required under a certificate of public convenience and necessity issued 10
under this section or a distributed generation certificate of public convenience and necessity 11
issued under § 7–207.4 of this subtitle. 12
(2) A county or municipal corporation shall approve or deny any local 13
permits required under a certificate of public convenience and necessity issued under this 14
section or a distributed generation certificate of public convenience and necessity issued 15
under § 7–207.4 of this subtitle: 16
(i) within a reasonable time; and 17
(ii) to the extent local laws are not preemp ted by State law, in 18
accordance with local laws. 19
(3) A county or municipal corporation may not condition the approval of a 20
local permit required under a certificate of public convenience and necessity issued under 21
this section or a distributed generation certificate of public convenience and necessity 22
issued under § 7–207.4 of this subtitle on receipt of any of the following approvals for any 23
aspect of a generating station, [an overhead] A transmission line, or a qualified lead line 24
proposed to be constructed under the certificate: 25
(i) a conditional use approval; 26
(ii) a special exception approval; or 27
(iii) a floating zone approval. 28
7–207.6. 29
(A) IN THIS SECTION , “ADVANCED TRANSMISSIO N TECHNOLOGIES ” HAS 30
THE MEANING STATED IN § 7–207 OF THIS SUBTITLE. 31
176 HOUSE BILL 1532
(B) (1) SUBJECT TO PARAGRAPH (2) OF THIS SUB SECTION, ON OR 1
BEFORE DECEMBER 1, 2026, AND EVERY 4 YEARS THEREAFTER, EACH OWNER OR 2
OPERATOR OF A TRANSMISSION LINE SHALL SUBMIT TO THE COMMISSION A REPORT 3
THAT: 4
(I) IDENTIFIES AREAS OF SIGNIFICANT TRANSMIS SION 5
CONGESTION COSTS FOR THE IMMEDIATELY PRECEDING 3 YEARS AND ANY 6
REASONABLY FORESEEAB LE TRANSMISSION CONS TRAINTS FOR THE 5 YEARS 7
IMMEDIATELY FOLLOWING THE DATE OF THE REPORT; 8
(II) IDENTIFIES THE PROJE CTED OR ACTUAL COST TO 9
RATEPAYERS AS A RESU LT OF PAST AND PROJE CTED FUTURE TRANSMIS SION 10
CONGESTION; 11
(III) IDENTIFIES THE FEASI BILITY AND COST OF U SING 12
ALTERNATIVE MEANS OF ADDRESSING TRANSMISS ION CONGESTION , INCLUDING 13
THE USE OF ADVANCED TRANSMISSION TECHNOLOGIES; 14
(IV) IDENTIFIES THE ECONOMIC, ENVIRONMENTAL, AND SOCIAL 15
ISSUES POSED BY THE USE OF EACH ALTERNATIVE MEANS IDENTIFIED UNDER ITEM 16
(III) OF THIS PARAGRAPH; 17
(V) DESCRIBES THE TRANSM ISSION LINE RATING 18
METHODOLOGY USED, INCLUDING ANY RELIANCE ON STATIC RATINGS OR SEASONAL 19
ASSUMPTIONS; 20
(VI) DISTINGUISHES BETWEE N REGIONAL AND LOCAL 21
TRANSMISSION CONSTRAINTS; 22
(VII) IF FEASIBLE , PROPOSES AN ADVANCED TRANSMISSION 23
TECHNOLOGY IMPLEMENT ATION PLAN TO ADDRES S AREAS OF TRANSMISS ION 24
CONGESTION IDENTIFIED UNDER ITEM (I) OF THIS PARAGRAPH; AND 25
(VIII) REFERENCES THE PJM PLANNING INPUTS, OR ANY OTHER 26
PLANNING INPUTS , USED TO SUPPORT THE CONGESTION FORECASTS AND, IF 27
APPLICABLE, PROPOSED ADVANCED TR ANSMISSION TECHNOLOG Y 28
IMPLEMENTATION PLAN INCLUDED IN THE REPORT. 29
(2) THE COMMISSION MAY MODIFY THE REPORTING SCHEDULE 30
SPECIFIED IN PARAGRAPH (1) OF THIS SUBSECTION. 31
(C) AN OWNER OR OPERATOR OF A TRANSMISSION LI NE MAY USE ANY 32
AVAILABLE DATA FROM PJM OR OTHER SOURCES IN COMPLETING THE REPOR T 33
REQUIRED UNDER THIS SECTION. 34
HOUSE BILL 1532 177
(D) THE COMMISSION SHALL PUBL ISH ON ITS WEBSITE EA CH REPORT 1
SUBMITTED UNDER THIS SECTION WITHIN 45 DAYS AFTER RECEIPT OF THE REPORT. 2
7–208. 3
(a) (1) In this section the following words have the meanings indicated. 4
(2) “Construction” has the meaning stated in § 7–207 of this subtitle. 5
(3) “Generating station” does not include: 6
(i) a generating unit or facility that: 7
1. is used for the production of electricity for the purpose of: 8
A. onsite emergency backup at a facility when service from 9
the electric company is interrupted due to electric distribution or transmission system 10
failure or when there is equipment failure at a site where critical infrastructure is located; 11
and 12
B. test and maintenance operations necessary to ensure 13
functionality of the generating unit or facility in the event of an interruption of service from 14
the electric company due to electric distribution or transmission system failure or when 15
there is equipment failure at a site where critical infrastructure is located; 16
2. is installed wit h equipment that prevents the flow of 17
electricity to the electric grid; 18
3. is subject to a permit to construct issued by the 19
Department of the Environment; and 20
4. is installed at a facility that is part of critical 21
infrastructure if the facility complies with all applicable regulations regarding noise level 22
and testing hours; or 23
(ii) a combination of two or more generating units or facilities that 24
satisfy item (i) of this paragraph. 25
(4) “Qualified offshore wind project” has the meaning stat ed in § 7–701 of 26
this title. 27
(5) “Qualified submerged renewable energy line” means: 28
(i) a line carrying electricity supply and connecting a qualified 29
offshore wind project to the transmission system; and 30
178 HOUSE BILL 1532
(ii) a line in which the portions of the line crossing any submerged 1
lands or any part of a beach erosion control district are buried or submerged. 2
(b) This section applies to any person: 3
(1) constructing a generating station and its associated [overhead] 4
transmission lines designed to carry a voltage in excess of 69,000 volts; 5
(2) exercising the right of condemnation in connection with the 6
construction; or 7
(3) constructing a qualified submerged renewable energy line. 8
(c) (1) To obtain the certificate of public convenience and necessity required 9
under § 7 –207 of this subtitle for construction under this section, a person shall file an 10
application with the Commission at least 2 years before construction of the facility will 11
commence. 12
(2) The Commission may waive the 2 –year requirement on a showing of 13
good cause. 14
(d) The applicant shall: 15
(1) include in an application under this section the information that the 16
Commission requests initially; and 17
(2) furnish any additional information that the Commission requests 18
subsequently. 19
(e) (1) On the receipt of an application under this section, together with any 20
additional information requested under subsection (d)(2) of this section, the Commission 21
shall provide notice to: 22
(i) for a proposed [overhead] transmission line, each owner of land 23
and each owner of adjacent land; 24
(ii) all interested persons; 25
(iii) the Department of Agriculture; 26
(iv) the Department of Commerce; 27
(v) the Department of the Environment; 28
(vi) the Department of Natural Resources; 29
HOUSE BILL 1532 179
(vii) the Department of Transportation; 1
(viii) the Department of Planning; and 2
(ix) the Maryland Energy Administration. 3
(2) On receipt of an application under this section, and whenever 4
additional information is received under sub section (d)(2) of this section, the Commission 5
shall provide notice immediately or require the applicant to provide notice immediately to: 6
(i) the governing body of each county or municipal corporation in 7
which any portion of the generating station or the associated [overhead] transmission lines 8
is proposed to be constructed; 9
(ii) the governing body of each county or municipal corporation 10
within 1 mile of the proposed location of the generating station or the associated [overhead] 11
transmission lines; 12
(iii) each member of the General Assembly representing any part of 13
a county in which any portion of the generating station or the associated [overhead] 14
transmission lines is proposed to be constructed; and 15
(iv) each member of t he General Assembly representing any part of 16
each county within 1 mile of the proposed location of the generating station or the 17
associated [overhead] transmission lines. 18
(3) The Commission shall hold a public hearing on the application as 19
required by § 7–207 of this subtitle after: 20
(i) the receipt of any additional information requested under 21
subsection (d)(2) of this section that the Commission considers necessary; and 22
(ii) any publication of notice the Commission considers to be proper. 23
(4) (i) At the public hearing, the Commission shall ensure presentation 24
of the information and recommendations of the State units specified in paragraph (1) of 25
this subsection and shall allow the official representative of each unit to sit during hearing 26
of all parties. 27
(ii) Based on the evidence relating to the unit’s areas of concern, the 28
Commission shall allow each unit 15 days after the conclusion of the hearing to modify or 29
affirm the unit’s initial recommendations. 30
(f) Within 90 days after the conc lusion of the hearing on an application under 31
this section, the Commission shall: 32
180 HOUSE BILL 1532
(1) (i) grant a certificate of public convenience and necessity 1
unconditionally; 2
(ii) grant the certificate, subject to conditions the Commission 3
determines to be appropriate; or 4
(iii) deny the certificate; and 5
(2) notify all interested parties of its decision. 6
(g) (1) The Commission shall include in each certificate it issues under 7
subsection (f) of this section: 8
(i) the requirements of the federal and State environmental laws 9
and standards that are identified by the Department of the Environment; and 10
(ii) the methods and conditions that the Commission determines are 11
appropriate to comply with those environmental laws and standards. 12
(2) The Commis sion may not adopt any method or condition under 13
paragraph (1)(ii) of this subsection that the Department of the Environment determines is 14
inconsistent with federal and State environmental laws and standards. 15
(h) (1) A decision of the Commission regardin g the issuance of a certificate 16
requires the vote of a majority of the members of the Commission. 17
(2) If a majority of the members of the Commission fails to reach agreement 18
on the conditions to be attached to a conditional certificate, the certificate shall be denied. 19
(i) The grant of a certificate by the Commission to any person under subsection 20
(f) of this section constitutes: 21
(1) authority for the person to dredge and construct bulkheads in the 22
waters or private wetlands of the State and to appropriate or use the waters; and 23
(2) registration and a permit to construct, as required under Title 2, 24
Subtitle 4 of the Environment Article. 25
(j) (1) A county or municipal corporation has the authority to approve or deny 26
any local permit required u nder a certificate of public convenience and necessity issued 27
under this section. 28
(2) A county or municipal corporation shall approve or deny any local 29
permits required under a certificate of public convenience and necessity issued under this 30
section: 31
(i) within a reasonable time; and 32
HOUSE BILL 1532 181
(ii) to the extent local laws are not preempted by State law, in 1
accordance with local laws. 2
(3) A county or municipal corporation may not condition the approval of a 3
local permit required under a certificate of public convenience and necessity issued under 4
this section on receipt of any of the following approvals for any aspect of a generating 5
station, an [overhead] transmission line, or a qualified lead line proposed to be constructed 6
under the certificate: 7
(i) a conditional use approval; 8
(ii) a special exception approval; or 9
(iii) a floating zone approval. 10
7–216.1. 11
(a) (1) In this section the following words have the meanings indicated. 12
(5) “Program” means the Maryland Energy Storage Program. 13
(c) (1) The Commission shall establish the Maryland Energy Storage 14
Program. 15
(2) The Program shall be implemented no later than July 1, 2025. 16
(3) The Program shall include competitive procurement mechanisms to 17
reach a minimum of 3,000 megawatts of en ergy storage, or the maximum cost –effective 18
amount of energy storage that can be deployed, by the end of delivery year 2033. 19
(4) The Program may include: 20
(i) a system of energy storage credits and market –based incentives 21
designed to: 22
1. develop a robust energy storage market in the State; and 23
2. deploy energy storage devices in a cost–effective manner; 24
(ii) a requirement that investor–owned electric companies: 25
1. install or contract for energy storage devices; or 26
2. contract for credits from an energy storage project under § 27
7–216 of this subtitle; 28
182 HOUSE BILL 1532
(iii) a requirement that Program participants make reasonable 1
efforts to apply for all applicable State and federal grants, rebates, tax credits, loan 2
guarantees, and other similar benefits as the benefits become available; or 3
(iv) any other mechanism or policy that the Commission determines 4
is appropriate to achieve the goal of a robust, cost –effective energy storage system in the 5
State. 6
(D) ON OR BEFORE NOVEMBER 1 EACH YEAR, THE COMMISSION SHALL 7
REPORT TO THE GENERAL ASSEMBLY, IN ACCORDANCE WITH § 2–1257 OF THE 8
STATE GOVERNMENT ARTICLE, ON THE STATUS OF THE PROGRAM, INCLUDING: 9
(1) THE CAPACITY OF OPER ATIONAL ENERGY STORA GE DEVICES IN 10
THE STATE THAT IS BEING C OUNTED TOWARD THE CAPACITY GO AL ESTABLISHED 11
UNDER SUBSECTION (C)(3) OF THIS SECTION, DISAGGREGATED BY: 12
(I) ELECTRIC COMPANY SERVICE TERRITORY; 13
(II) ENERGY STORAGE DEVICE CAPACITY; 14
(III) FRONT–OF–METER TRANSMISSION–LEVEL STORAGE; 15
(IV) FRONT–OF–METER DISTRIBUTION–LEVEL STORAGE; 16
(V) BEHIND–THE–METER STORAGE; AND 17
(VI) ANY OTHER RELEVANT CATEGORY, AS DETERMINED BY THE 18
COMMISSION; 19
(2) WHETHER THE CAPACITY GOAL ESTABLISHED UND ER 20
SUBSECTION (C)(3) OF THIS SECTION SHOU LD BE ALTERED BASED ON CURREN T 21
TECHNOLOGY COSTS, ENERGY STORAGE DEPLOYMENT TRENDS, ELECTRIC SYSTEM 22
RELIABILITY, AND RATEPAYER IMPACTS; 23
(3) BARRIERS TO ACHIEVIN G THE GOALS IDENTIFI ED UNDER THIS 24
SECTION; AND 25
(4) ANY OTHER INFORMATIO N THE COMMISSION CONSIDERS 26
PERTINENT. 27
7–221. 28
The General Assembly finds and declares that energy efficiency is: 29
HOUSE BILL 1532 183
(1) among the least expensive ways to meet the energy demands of the 1
State; 2
(2) a means of affordable, reliable, and clean energy for consumers of 3
Maryland; and 4
(3) one method to a chieve Maryland’s climate commitments for reducing 5
statewide greenhouse gas emissions, including those required under Title 2, Subtitle 12 of 6
the Environment Article. 7
7–222. 8
(a) Subject to review and approval by the Commission, each electric company, 9
[each gas company other than a gas company subject to § 4 –207(a) of this article, ] the 10
Department, and, if required in accordance with subsection (c) of this section, each midsize 11
electric cooperative shall develop and implement programs and services in accordance with 12
§§ 7–223, 7–224, and 7–225 of this subtitle to encourage and promote the efficient use and 13
conservation of energy, demand response, and beneficial electrification by consumers, 14
electric companies, [gas companies,] and the Department in support of the greenhouse gas 15
emissions reduction goals and targets required under Title 2, Subtitle 12 of the 16
Environment Article. 17
(b) As directed by the Commission, [each gas company subject to § 4 –207(a) of 18
this article,] each municipal electric [or gas] utility, each small rural electric cooperative, 19
and, if required in accordance with subsection (c) of this section, each midsize electric 20
cooperative shall include energy efficiency and conservation, demand response, and 21
beneficial electrification programs or services as part of their service to their customers. 22
(c) (1) In accordance with this subsection, each midsize electric cooperative 23
shall be subject to either subsection (a) or subsection (b) of this section. 24
(2) Each midsize electric cooperative shal l offer programs and services to 25
customers in accordance with: 26
(i) subsection (b) of this section through December 31, 2026; and 27
(ii) on or after January 1, 2027, and as the Commission directs, 28
either subsection (a) or subsection (b) of this section. 29
(3) Not later than October 1, 2025, the Commission shall determine if it is 30
in the public interest for a midsize electric cooperative to offer programs and services to 31
customers in accordance with subsection (a) or subsection (b) of this section starting 32
January 1, 2027, and for all subsequent years. 33
184 HOUSE BILL 1532
(4) Each midsize electric cooperative shall provide the following 1
information to the Commission to assist in making a determination under paragraph (3) of 2
this subsection: 3
(i) anticipated costs and bill impacts; 4
(ii) a description of the anticipated program offerings; 5
(iii) the anticipated cost–effectiveness of the residential, commercial, 6
and industrial sector subportfolios based on the cost –effectiveness tests in § 7–225(d)(3)(i) 7
of this subtitle; 8
(iv) the anticipated electricity savings and greenhouse gas emissions 9
reductions; and 10
(v) any other information the Commission requires. 11
(5) The information provided to the Commission under paragraph (4) of 12
this subsection shall be based on a plan to offer programs and services to customers that 13
complies with the requirements of an electric company subject to subsection (a) of this 14
section for the 3–year program cycle starting January 1, 2027. 15
(6) When making a public inte rest determination under paragraph (3) of 16
this subsection the Commission, at a minimum, shall consider the requirements under § 17
7–225(d)(3) of this subtitle that are considered when approving a plan of an electric 18
company that is subject to subsection (a) of this section. 19
(7) Starting October 1, 2025, if the Commission determines that it is in the 20
public interest for a midsize electric cooperative to be subject to subsection (a) of this 21
section, the midsize electric cooperative shall comply with all req uirements of an electric 22
company subject to subsection (a) of this section for program cycles starting on and after 23
January 1, 2027. 24
(8) On or before March 1 each year, starting in 2026, each midsize electric 25
cooperative directed by the Commission to in clude programs or services under subsection 26
(b) of this section shall submit to the Commission a report quantifying the gains in energy 27
efficiency and reductions in greenhouse gas emissions achieved during the previous year. 28
(d) The Commission shall enco urage and promote the efficient use and 29
conservation of energy in support of the greenhouse gas emissions reduction goals and 30
targets required under Title 2, Subtitle 12 of the Environment Article, established by the 31
Commission under § 7–223(b) of this subtitle, and specified in § 7–224(a)(2) of this subtitle 32
by: 33
(1) requiring each electric company [and gas company ] to establish any 34
program or service that the Commission determines to be appropriate and cost–effective; 35
HOUSE BILL 1532 185
(2) adopting rate–making policies that provide, through a surcharge line 1
item on customer bills: 2
(i) full cost recovery of reasonably incurred costs for programs and 3
services established under item (1) of this subsection, including full recovery on a current 4
basis on or before January 1, 2028; 5
(ii) on or before December 31, 2032, the elimination of any unpaid 6
costs and unamortized costs that: 7
1. A. existed on December 31, 2024; or 8
B. were incurred before January 1, 2028; and 9
2. were accrued for the purpose of achieving statutory 10
targets for annual incremental gross energy savings; 11
(iii) compensation for any unpaid costs and unamortized costs under 12
item (ii) of this item at not more than each electric company’s and each gas company’s 13
average cost of outstanding debt; and 14
(iv) reasonable financial performance incentives and penalties for 15
investor–owned electric companies [and gas companies,] as appropriate; and 16
(3) ensuring that adoption of electric customer choice under Subtitle 5 of 17
this title [and gas customer choice under Subtitle 6 of this title] does not adversely impact 18
these goals and targets. 19
(e) The Commission shall, by regulation or order, require each electric company 20
[and each gas company subject to subsection (a) of this section ] that has submitted to the 21
Commission, on or before July 1, 2024, a plan for achieving electricity [or gas] savings and 22
demand reduction targets to disclose the following information in a form and format readily 23
understandable to the average customer: 24
(1) that the surcharge imposed in accordance with subsection (d) of this 25
section includes the cost of paying down the unpaid costs and unamortized costs that were 26
accrued over time by programs and services required by the Commission dating back to 27
2008; and 28
(2) the period of time that the surcharge will include excess charges to pay 29
down the unpaid costs and unamortized costs. 30
(F) A GAS COMPANY THAT REC OVERED COSTS UNDER S UBSECTION (D)(2) 31
OF THIS SECTION ON OR BEFORE JANUARY 1, 2026, SHALL CONTINUE TO RECOVER 32
ANY PROGRAM AND SERVICE COSTS REASONABLY INCURRED THROUGH DECEMBER 33
31, 2026, INCLUDING UNPAID AND UNAMORTIZED COSTS UN DER SUBSECTION 34
186 HOUSE BILL 1532
(D)(2)(I) OF THIS SECTION , THROUGH THE RATE –MAKING POLICIES UNDE R 1
SUBSECTION (D)(2) OF THIS SECTION UNTIL ALL REASONABLY INCURRED PROGRAM 2
AND SERVICE COSTS HAVE BEEN RECOVERED. 3
7–223. 4
(a) On or before January 1, 2025, and on or before January 1 every 3 years, 5
starting in 2027, the Commission shall, by regulation or order, require each electric 6
company [and each gas company ] subject to § 7 –222(a) of this subtitle to develop and 7
implement a plan that: 8
(1) covers appropriate ratepayer classes; 9
(2) starting in 2027, covers a 3–year program cycle; and 10
(3) achieves the greenhouse gas emissions reduction target established for 11
the electric company [or gas company ] under subsection (b) of this section through 12
cost–effective energy efficiency and conservation programs and services, demand response 13
programs and services, and beneficial electrification programs and services. 14
(b) (1) For 2025 and 2026, and for each 3–year program cycle starting in 2027, 15
the Commission shall establish a greenhouse gas emissions reduction target for each 16
electric company [and each gas company] subject to § 7–222(a) of this subtitle as provided 17
in this subsection. 18
(2) When establishing greenhouse gas emissions reduction targets under 19
this subsection, the Commission shall measure the greenhouse gas emissions from 20
electricity and gas, and the i ntensities of those emissions, using current data and 21
projections from the Department of the Environment. 22
(3) The greenhouse gas emissions reduction targets established under this 23
subsection shall be measured: 24
(i) in metric tons; and 25
(ii) relative to the greenhouse gas emissions associated with the 26
electric company’s [or gas company’s] weather–normalized gross retail sales and losses in 27
a baseline year, as determined by the Commission. 28
(4) By the dates specified in § 7 –225(a) of this subtitle, the Commission 29
shall establish greenhouse gas emissions reduction targets for each electric company plan 30
that will achieve at least the greenhouse gas emissions reduction equivalent, measured on 31
a lifecycle basis using the emission intensities under parag raph (2) of this subsection, of 32
the following annual electricity savings percentages, calculated as a percentage of the 33
electric company’s 2016 weather–normalized gross retail sales and electricity losses: 34
HOUSE BILL 1532 187
(i) 2.0% in 2024; 1
(ii) 2.25% each year in 2025 and 2026; [and] 2
(iii) [2.5% each year in 2027 and after ] 1.75% EACH YEAR IN 2027 3
THROUGH 2029; 4
(IV) 2.0% EACH YEAR IN 2030 THROUGH 2032; 5
(V) 2.25% EACH YEAR IN 2033 THROUGH 2035; AND 6
(VI) 2.5% EACH YEAR IN 2036 AND AFTER. 7
(5) [On or before January 1, 2025, and on or before January 1 every 3 years, 8
starting in 2027, the Commission shall establish greenhouse gas emissions reduction 9
targets for each gas company plan that will achieve at least the greenhouse gas emissions 10
reduction equivalent, measured on a lifecycle basis using the emission intensities under 11
paragraph (2) of this subsection, of the gas savings achieved by the gas company for the 12
2021–2023 program cycle. 13
(6)] The Commission shall take into consideration the most recent final plan 14
adopted under § 2–1205 of the Environment Article when establishing the greenhouse gas 15
emissions reduction targets under this subsection. 16
[(7)] (6) For 2025 and 2026: 17
(i) the Commission shall, after making appropriate findings, 18
determine whether existing electric company [and gas company] plans must be modified to 19
comply with § 7–225(d) of this subtitle; and 20
(ii) electric companies [and gas companies]: 21
1. shall provide information as required by the Commission 22
to assist in making the determination under item (i) of this paragraph; and 23
2. are only required to file new plans in accordance with this 24
section if directed by the Commission. 25
(c) The Commission may g ive priority to long –lived greenhouse gas emissions 26
reduction measures in the plans by establishing a minimum weighted average measure life 27
for the plan of each electric company [and gas company]. 28
(d) Contributions to greenhouse gas emissions reduction g oals and targets in a 29
plan of an electric company [or a gas company]: 30
188 HOUSE BILL 1532
(1) may, notwithstanding § 7–222(d)(2) of this subtitle, include recovery of 1
the reasonable and prudent costs from programs that are not behind–the–meter programs 2
in a base rate proceeding, subject to Commission approval; and 3
(2) may not include the increased adoption of electric vehicles. 4
(e) (1) [Beginning] SUBJECT TO PARAGRAPH (2) OF THIS SUBSECTION , 5
BEGINNING January 1, 2025,: 6
(I) at least 80% of the greenhouse gas emissions reductions counted 7
toward each electric company’s [and each gas company’s ] greenhouse gas emissions 8
reduction targets established under this section shall [come from] INCLUDE: 9
(I) behind–the–meter programs, which may include deployment of 10
energy storage facilities; AND 11
(II) FOR 2027 THROUGH 2029 SUBJECT TO PARAGRAPH (3) OF 12
THIS SUBSECTION , FOR 2027 THROUGH 2029, NOT MORE THAN 20% OF THE 13
GREENHOUSE GAS EMISS IONS REDUCTIONS COUN TED TOWARD EACH ELEC TRIC 14
COMPANY’S GREENHOUSE GAS EMI SSIONS REDUCTION TAR GETS ESTABLISHED 15
UNDER THIS SECTION SHALL INCLUDE: 16
1. COMMUNITY SOLAR ENER GY GENERATION THAT IS 17
INTERCONNECTED TO THE ELECTRIC COMPANY’S DISTRIBUTION SYSTEM; AND 18
2. SOLAR ENERGY GENERAT ION FACILITIES THAT ARE 19
INTERCONNECTED TO THE ELECTRIC COMPANY’S DISTRIBUTION SYSTEM. 20
(2) PARAGRAPH (1) OF THIS SUBSECTION M AY NOT BE CONSTRUED 21
TO AUTHORIZE AN ELEC TRIC COMPANY TO BUIL D, OWN, OR OPERATE ELECTRIC 22
GENERATING FACILITIE S OR ENERGY STORAGE FACILITIES TO ME ET THE 23
REQUIREMENTS OF THIS SECTION. 24
(3) GREENHOUSE GAS EMISSI ONS REDUCTIONS FROM SOURCES 25
SPECIFIED UNDER PARAGRAPH (1)(II) OF THIS SUBSECTION M AY NOT BE USED TO 26
MEET THE GREENHOUSE GAS EMISSIONS REDUCTION TARGETS UNDER PARAGRAPH 27
(1)(I) OF THIS SUBSECTION. 28
7–225. 29
(a) As soon as possible in 2024, and at least 8 months before the filing deadline 30
for plans after 2024, the Commission shall issue an order that determines the greenhouse 31
gas emissions reduction targets required under § 7 –223(b) of this subti tle and the 32
greenhouse gas emissions reductions required under § 7–224(a)(2) of this subtitle. 33
HOUSE BILL 1532 189
(b) (1) (i) If directed by the Commission in 2024, and on or before July 1 1
every 3 years, starting in 2026, each electric company [and each gas company] subject to § 2
7–222(a) of this subtitle that submitted a plan for achieving electricity savings and demand 3
reduction targets to the Commission before July 1, 2024, and the Department, shall consult 4
with the technical staff of the Commission, the Office of People’ s Counsel, the Maryland 5
Energy Administration, and the Department of the Environment regarding the design and 6
adequacy of its plans for achieving the greenhouse gas emissions reduction targets 7
established by the Commission under § 7 –223(b) of this subtitle and specified in § 8
7–224(a)(2) of this subtitle. 9
(ii) On or before October 1, 2024, and on or before July 1 every 3 10
years, starting in 2026, each electric company [and each gas company] subject to § 7–222(a) 11
of this subtitle that did not submit a plan for achieving electricity savings and demand 12
reduction targets to the Commission before July 1, 2024, shall comply with the consulting 13
requirements under subparagraph (i) of this paragraph. 14
(2) Each electric company [and each gas company] subject to § 7–222(a) of 15
this subtitle shall provide the technical staff of the Commission, the Office of People’s 16
Counsel, the Maryland Energy Administration, and the Department of the Environment 17
with any additional information regarding its plan, as requested. 18
(c) (1) (i) If directed by the Commission in 2024, and on or before 19
September 1 every 3 years, starting in 2026, each electric company [and each gas company] 20
subject to § 7–222(a) of this subtitle that submitted a plan for achieving electricity savings 21
and demand reduction targets to the Commission before July 1, 2024, and the Department, 22
shall submit its plan to the Commission. 23
(ii) On or before December 1, 2024, and on or before September 1 24
every 3 years, starting in 2026, each electric company [and each gas company] that did not 25
submit a plan for achieving electricity savings and demand reduction targets to the 26
Commission before July 1, 2024, shall submit its plan to the Commission. 27
(2) Each plan shall detail a proposal for achieving greenhouse gas 28
emissions reduction targets for 3 subsequent calendar years. 29
(3) (i) Each plan shall: 30
1. include: 31
A. a description of the proposed programs and services; 32
B. anticipated costs; 33
C. projected benefits, including greenhouse gas emissions 34
reductions[,] AND electricity savings[, and gas savings]; and 35
190 HOUSE BILL 1532
D. any other information requested by the Commission; and 1
2. address residential, commercial, and industrial sectors as 2
appropriate, including low–income communities. 3
(ii) A plan of the Department shall include: 4
1. a definition of “low –income individual” to be used in the 5
procurement or provision of energy efficiency, conservation, and greenhouse gas emissions 6
reduction programs and services; 7
2. a description of the steps proposed to ensure insulation 8
materials meet the requirements under § 7–224 of this subtitle; and 9
3. a proposed average lifetime measure threshold that: 10
A. encourages the delivery of insulation and weatherization 11
measures; and 12
B. is developed through a stakeholder engagement process. 13
(iii) A plan of an electric company shall include the provision or 14
procurement of programs and services for residential beneficial electrification. 15
(d) (1) The Commission shall review the plan of each electric company [, each 16
gas company, ] and the Department to determine whether the plan is adequate and 17
cost–effective in achieving the greenhouse gas emissi ons reduction targets established by 18
the Commission under §§ 7–223(b) and 7–224(a)(2) of this subtitle. 19
(2) The Commission shall consider any written findings provided by the 20
Maryland Energy Administration, the Department of the Environment, and the Office of 21
People’s Counsel regarding the design and adequacy of the plan. 22
(3) Subject to paragraph (4) of this subsection, in approving, modifying, or 23
denying the plan of an electric company [or a gas company], the Commission shall consider: 24
(i) the cost–effectiveness of the residential, commercial, and 25
industrial sector subportfolios by using: 26
1. the primary State jurisdiction–specific test, as developed, 27
updated, or approved by the Commission, to determine the cost–effectiveness of a program 28
or service prospectively, including consideration of: 29
A. participant nonenergy benefits; 30
HOUSE BILL 1532 191
B. utility nonenergy benefits; and 1
C. societal nonenergy benefits; and 2
2. a total resource cost test to compare the electricity savings 3
and demand r eduction targets of the program or service with the results of similar 4
programs or services implemented in other jurisdictions, including: 5
A. participant nonenergy benefits; and 6
B. utility nonenergy benefits; 7
(ii) the impact on rates of each ratepayer class; 8
(iii) the impact on jobs; 9
(iv) the impact on the environment; and 10
(v) the impact on the greenhouse gas emissions reduction targets 11
specified in Title 2, Subtitle 12 of the Environment Article, established by the Commission 12
under §§ 7–223(b) and 7–224(a)(2) of this subtitle. 13
(4) Nonenergy benefits considered under paragraph (3) of this subsection 14
shall be quantifiable and directly related to a program or service. 15
(5) (i) In approving, modifying, or denying the plan of the Department, 16
the Commission shall consider: 17
1. subject to subparagraph (ii) of this paragraph, the 18
cost–effectiveness of the plan by using the primary State jurisdiction –specific test, as 19
developed, updated, or approved by the Commission; 20
2. the impact on rates of each ratepayer class; 21
3. the impact on jobs; 22
4. the impact on the environment; and 23
5. the impact on the greenhouse gas emissions targets 24
specified in Title 2, Subtitle 12 of the Environment Article, established by the Commission 25
under § 7–223(b) of this subtitle, and specified in § 7–224(a)(2) of this subtitle. 26
(ii) The programs and services offered by the Department are not 27
required to be cost–effective. 28
(e) The Department of the Environment shall prepare and submit to the 29
Commission an analysis regarding the adequacy of the plan in supporting the State’s 30
192 HOUSE BILL 1532
greenhouse gas emissions reduction goals specified in Title 2, Subtitle 12 of the 1
Environment Article, established by the Commission under § 7–223(b) of this subtitle, and 2
required under § 7–224(a)(2) of this subtitle. 3
7–226. 4
(a) (1) Each electric company[, each gas company,] and the Department shall 5
provide to the Commission every 6 months an update on plan implementation and progress 6
made toward achieving the greenhouse gas emissions reduction targets established by the 7
Commission under § 7 –223(b) of this subtitle and requir ed under § 7 –224(a)(2) of this 8
subtitle. 9
(2) The Commission shall monitor and analyze the impact of each program 10
and service to ensure that the outcome of each program and service provides the best 11
possible results. 12
(3) In monitoring and analyzing the impact of a program or service under 13
paragraph (2) of this subsection, if the Commission finds that the outcome of the program 14
or service may not be providing the best possible results, the Commission shall direct the 15
electric company[, the gas company,] or the Department to include in its next update under 16
paragraph (1) of this subsection specific measures to address the findings. 17
(b) (1) At least once each year, each electric company [and each gas company] 18
shall notify affected customers of the ener gy efficiency and conservation and greenhouse 19
gas reduction charges imposed and benefits conferred. 20
(2) The notice shall be provided by publication on the company’s website 21
and inclusion with billing information such as a bill insert or bill message. 22
(c) On or before May 1 each year, the Commission shall report, in accordance with 23
§ 2–1257 of the State Government Article, to the General Assembly on: 24
(1) the status of programs and services approved under this subtitle, 25
including an evaluation of the impact of the programs and services that are directed to 26
low–income communities and other particular classes of ratepayers; 27
(2) a recommendation for the appropriate funding level to adequately fund 28
these programs and services; 29
(3) the per capita electricity consumption and the winter and summer peak 30
demand for the previous calendar year; and 31
(4) beginning in 2026, progress made toward reducing greenhouse gas 32
emissions in accordance with §§ 7–223 and 7–224 of this subtitle. 33
7–227. 34
HOUSE BILL 1532 193
(a) Notwithstanding any other law, the Commission may not require or allow an 1
electric company [or a gas company ] to require a customer to authorize the electric 2
company [or gas company] to control the amount of the customer’s electricity usage [or gas 3
usage]. 4
(b) A customer may provide consent to participate in a program of an electric 5
company [or a gas company] that provides direct load control or other utility manipulation 6
of a customer’s electricity [or gas] usage. 7
7–228. 8
(a) Each electric company [and each gas company] shall promote the availability 9
of federal and State rebates, tax credits, and incentives that can be used to support energy 10
efficiency investments, energy efficient and non –fossil–fuel–powered appliances and 11
cooking equipment, breaker box upgrades, and portable heating and cooling equipment. 12
(b) The Commission shall adopt regulations to carry out this section. 13
7–321. 14
(A) IN THIS SECTION , “PORTABLE SOLAR ENERG Y GENERATING SYSTEM ” 15
MEANS A MOVABLE PHOTOVOLTAIC SOLAR ENERGY GENERATION DEVICE THAT IS: 16
(1) DESIGNED TO BE CONNE CTED TO A BUILDING ’S ELECTRICAL 17
SYSTEM THROUGH A STANDARD ELECTRICAL OUTLET; 18
(2) PRIMARILY INTENDED T O OFFSET PART OF THE BUILDING’S 19
ELECTRICITY CONSUMPTION; 20
(3) LIMITED TO SUPPLYING A MAXIMUM POWER OUTP UT OF NOT 21
MORE THAN 391 WATTS BACK TO THE ELECTRIC SYSTEM OF THE BUILDING; AND 22
(4) CERTIFIED BY UNDERWRITERS LABORATORY OR AN EQUIVALENT 23
NATIONALLY RECOGNIZED TESTING LABORATORY. 24
(B) A PERSON MAY PURCHASE AND INSTALL NOT MORE THAN ONE 25
PORTABLE SOLAR ENERG Y GENE RATING SYSTEM PER EL ECTRIC METER FOR 26
RESIDENTIAL USE ONLY. 27
(C) A PORTABLE SOLAR ENERGY GENERATING SYSTEM: 28
(1) IS NOT SUBJECT TO THE REQUIREMENTS OF §§ 7–306 AND 7–306.1 29
OF THIS SUBTITLE; 30
194 HOUSE BILL 1532
(2) IS NOT ELIGIBLE FOR INCLUSION IN MEETING THE RENEWABLE 1
ENERGY PORTFOLIO STANDARD; AND 2
(3) MAY NOT GENERATE RENEWABLE ENERGY CREDITS OF ANY TYPE. 3
(D) AN ELECTRIC COMPANY: 4
(1) MAY NOT REQUIRE A CU STOMER USING A PORTA BLE SOLAR 5
ENERGY GENERATING SYSTEM TO: 6
(I) OBTAIN THE ELECTRIC COMPANY’S APPROVAL BEFORE 7
INSTALLING OR USING THE PORTABLE SOLAR ENERGY GENERATING SYSTEM; 8
(II) PAY ANY FEE OR CHARG E RELATED TO THE POR TABLE 9
SOLAR ENERGY GENERATING SYSTEM’S ABILITY TO FEED EL ECTRICITY BACK INTO 10
THE ELECTRIC SYSTEM; OR 11
(III) EXCEPT AS PROVIDED IN SUBSECTION (E) OF THIS SECTION, 12
INSTALL ANY ADDITION AL CONTROLS OR EQUIP MENT BEYOND WHAT IS 13
INTEGRATED INTO THE PORTABLE SOLAR ENERGY GENERATING SYSTEM; AND 14
(2) IS NOT LIABLE FOR ANY DAMAGE CAUSED BY A PORTABLE SOLAR 15
ENERGY GENERATING SYSTEM. 16
(E) A CUSTOMER USING A PORTABLE SOLAR ENERGY GENERATING SYSTEM 17
SHALL: 18
(1) NOTIFY THE ELECTRIC COMPANY PROVIDING SE RVICE IN THE 19
SERVICE TERRITORY IN WHICH THE GENERATING SYSTEM WILL BE INSTALLED ONCE 20
THE GENERATING SYSTEM IS INSTALLED; 21
(2) PROVIDE TO THE ELECTRIC COMPANY PRO VIDING SERVICE IN 22
THE SERVICE TERRITOR Y IN WHICH THE GENER ATING SYSTEM WILL BE OR IS 23
INSTALLED A CERTIFIC ATION OF THE SAFETY FEATURES AND MAXIMUM 24
GENERATING CAPACITY OF THE GENERATING SYSTEM; AND 25
(3) IF THE GENERATING SYSTEM REQUIRES AN AUTOMATIC LOCKING 26
DISCONNECT SWITCH TO BE INSTALLED, PAY FOR THE SWITCH INSTALLATION. 27
7–322. 28
HOUSE BILL 1532 195
(A) (1) IN THIS SECTION THE F OLLOWING WORDS HAVE THE MEANINGS 1
INDICATED. 2
(2) “DATA CENTER” HAS THE MEANING STAT ED IN § 11–239 OF THE 3
TAX – GENERAL ARTICLE. 4
(3) “LARGE LOAD CUSTOMER” HAS THE MEANING STATED IN § 4–212 5
OF THIS ARTICLE. 6
(4) “ON–SITE BACKUP GENERATI NG FACILITY ” MEANS A 7
GENERATING FACILITY THAT IS: 8
(I) NOT CONNECTED TO THE ELECTRIC SYSTEM; AND 9
(II) CAPABLE OF SERVING A T LEAST 50% OF THE LOAD 10
REQUIRED BY A LARGE LOAD CUSTOMER. 11
(B) (1) NOTWITHSTANDING ANY O THER PROVISION OF LA W, AND IN 12
ADDITION TO THE REQUIREMENTS UNDER § 4–212 OF THIS ARTICLE, A LARGE LOAD 13
CUSTOMER SHALL REGIS TER WITH THE COMMISSION IN ACCORDA NCE WITH THIS 14
SECTION AFTER AN INTER CONNECTION AGREEMENT IS SIGNED AND BEFORE THE 15
LARGE LOAD CUSTOMER INTERCONNECTS WITH THE ELECTRIC SYSTEM. 16
(2) THE COMMISSION MAY CHARGE A REASONABLE FEE FOR THE 17
REGISTRATION UNDER THIS SECTION. 18
(C) (1) ON OR BEFORE JANUARY 1, 2027, THE COMMISSION, BY ORDER 19
OR REGULATION , SHALL ESTABLISH A PR OCESS TO REGISTER LA RGE LOAD 20
CUSTOMERS. 21
(2) THE REGISTRATION PROCESS ESTABLISHED BY THE COMMISSION 22
SHALL: 23
(I) APPLY TO NEW OR EXPANDED INTERCONNECTION OF LARGE 24
LOAD CUSTOMERS; 25
(II) REQUIRE A LARGE LOAD CUSTOMER TO DISCLOSE TO THE 26
COMMISSION: 27
1. WHETHER THE CUSTOMER IS PURSUING A 28
SUBSTANTIALLY SIMILAR INTERCONNECTION REQUEST WITH THE SAME ELECTRIC 29
COMPANY, ANOTHER ELECTRIC COMPANY IN THE STATE, OR AN ELECTRIC COMPANY 30
IN ANOTHER S TATE IN THE PJM REGION, AND WHETHER THE APPR OVAL OF THE 31
196 HOUSE BILL 1532
SIMILAR INTERCONNECT ION REQUEST WOULD CA USE THE CUSTOMER TO 1
MATERIALLY CHANGE, DELAY, OR WITHDRAW THE INTERCONNECTION REQUEST; 2
2. WHETHER THE CUSTOMER INTENDS TO: 3
A. ACQUIRE OR BUILD ENE RGY GENERATION SOLELY 4
FOR THE CUSTOMER; 5
B. USE ENERGY SOLELY FR OM THE ELECTRIC 6
DISTRIBUTION SYSTEM; OR 7
C. BOTH; 8
3. INFORMATION ABOUT THE TYPE OF ON–SITE BACKUP 9
GENERATING FACILITY THAT WOULD BE USED IN THE EVENT OF A SYSTEM OUTAGE; 10
AND 11
4. INFORMATION ABOUT: 12
A. THE AMOUNT OF WATER THAT WOULD BE USED EACH 13
MONTH; 14
B. THE SOURCE OF THE WA TER THAT WOULD BE US ED; 15
AND 16
C. THE STATUS OF APPLIC ATIONS FOR WATER 17
APPROPRIATION OR USE PERMITS SUBMITTED TO THE DEPARTMENT OF THE 18
ENVIRONMENT O R A WATER UTILITY OW NED BY THE STATE OR A LOCAL 19
GOVERNMENT; 20
(III) ESTABLISH A PROCEDURE TO ALLOW THE COMMISSION TO 21
ACCESS, WHILE MAINTAINING CO NFIDENTIALITY, ANY INFORMATION COLL ECTED 22
BY THE INTERCONNECTI NG ELECTRIC COMPANY FOR TRANSMISSION PLA NNING 23
ANALYSES; AND 24
(IV) ESTABLISH ANY OTHER STANDARDS THAT THE 25
COMMISSION CONSIDERS NECESSARY. 26
(D) (1) THE COMMISSION SHALL CERT IFY WHETHER A REGIST RATION 27
UNDER THIS SECTION I S COMPLETE WITHIN 30 DAYS AFTER RECEIVING THE 28
INFORMATION REQUIRED UNDER SUBSECTION (C) OF THIS SECTION. 29
HOUSE BILL 1532 197
(2) IF THE COMMISSION DETERMINES THE REGISTRATION 1
INFORMATION IS INCOM PLETE, THE COMMISSION MAY EXTEND ANY TIME FRAME 2
PROVIDED IN AN ORDER OR REGULATION ESTABL ISHING THE REGISTRAT ION 3
PROCESS UNDER THIS SECTION. 4
(E) THE COMMISSION SHALL POST AND REGULARLY UPDATE ON ITS 5
WEBSITE: 6
(1) A MAP DISPLAYING THE APPROXIMATE PROPOSED LOCATION OF 7
LARGE LOAD CUSTOMERS REGISTERED UNDER THIS SECTION; AND 8
(2) OTHER PERTINENT INFO RMATION THAT THE COMMISSION 9
DETERMINES IS IN THE PUBLIC INTEREST. 10
(F) ON OR BEFORE JANUARY 1, 2028, AND EACH JANUARY 1 THEREAFTER, 11
THE COMMISSION SHALL REPO RT TO THE SENATE COMMITTEE ON EDUCATION, 12
ENERGY AND THE ENVIRONMENT AND THE HOUSE ENVIRONMENT AND 13
TRANSPORTATION COMMITTEE, IN ACCORDANCE WITH § 2–1257 OF THE STATE 14
GOVERNMENT ARTICLE, ON THE REGISTRATION PROGRAM UNDER THIS SECTION. 15
7–505. 16
(b) (1) The Commission shall issue the orders or adopt the regulations 17
required under this subsection before the implementation of customer choice. 18
(2) The Commission shall order a universal service program, to be made 19
available on a statewide basis, to benefit low –income customers, in accordance with [§ 20
7–512.1 of this subtitle] § 5–5A–08 OF THE HUMAN SERVICES ARTICLE. 21
7–510. 22
(d) (2) A residential electricity supplier: 23
(i) may offer electricity, other than green power, only at a price that 24
does not exceed [the trailing 12–month average] 110% of the electric company’s standard 25
offer service rate in the electric company’s service territory as of the date of agreement with 26
the customer; 27
(ii) may offer residential electricity supply only for a term not to 28
exceed [12] 36 months at a time; 29
(iii) may, for electricity supply other than green power, automatically 30
renew the term only if the electricity supplier provides notice to the customer 90 days before 31
and 30 days before renewal; 32
198 HOUSE BILL 1532
(iv) may offer green power that meets the requirements of § 7–707 of 1
this title, but may not automatically renew the term with the customer; 2
(v) [subject to ] EXCEPT AS PROVIDED I N paragraph (3) of this 3
subsection, may not offer a variable rate [other than a rate that adjusts for seasonal 4
variation not more than twice in a single year]; and 5
(vi) may not pay a commission or other incentive –based 6
compensation to an energy salesperson for enrolling customers. 7
(3) [Paragraph (2)(v) of this subsection does not prohibit the offer and use 8
of] A RESIDENTIAL ELECTRICITY SUPPLIER MAY OFFER A VARIABLE RATE THAT: 9
(I) USES time–of–use rates that establish different rates for periods 10
within a single day; 11
(II) ADJUSTS FOR SEASONAL VARIATION NOT MORE T HAN 12
TWICE IN A SINGLE YEAR; OR 13
(III) DOES NOT EXCEED THE ELECTRIC COMPANY ’S STANDARD 14
OFFER SERVICE RATE I N THE ELECTRIC COMPA NY’S SERVICE TERRITORY AT ANY 15
TIME DURING THE AGREEMENT WITH THE CUSTOMER. 16
7–510.3. 17
(o) The Commission shall establish procedures for an electric customer that is 18
receiving electric ity supply through a community choice aggregator to receive any bill 19
assistance credit or arrearage assistance to which the customer may be entitled under [§ 20
7–512.1 of this subtitle ] § 5–5A–08 OF THE HUMAN SERVICES ARTICLE or any other 21
federal or State bi ll and arrearage assistance administered by the Office of Home Energy 22
Programs. 23
7–1006. 24
(a) (1) [The Commission may approve or require an investor –owned electric 25
company to ] SUBJECT TO AVAILABLE FUNDING, THE MARYLAND ENERGY 26
ADMINISTRATION, IN CONSULTATION WITH THE COMMISSION, MAY offer upfront 27
incentives or rebates to customers to acquire and install renewable on –site generating 28
systems if the customer: 29
(i) enrolls in a pilot program or temporary tariff established under 30
§ 7–1005 of this subtitle; and 31
(ii) allows the system to be used for electric distribution system 32
support services for a period of not less than 5 years. 33
HOUSE BILL 1532 199
(2) [The Commission may: 1
(i) authorize o r require an investor –owned electric company to 2
provide an additional incentive or rebate for low– or moderate–income customers who apply 3
for an incentive or rebate under this section; and 4
(ii) require an investor –owned electric company to ] THE 5
MARYLAND ENERGY ADMINISTRATION, IN CONSULTATION WITH THE COMMISSION, 6
MAY prioritize the offer of incentives or rebates under this section to low – or 7
moderate–income customers. 8
(b) [In determining whether to require an investor –owned electric company to 9
offer an incentive or rebate under this section, the Commission shall consider: 10
(1) the benefit of reducing the operation of peak generating facilities in 11
overburdened and underserved communities; 12
(2) the benefit of resiliency and service outage avoidance for customers 13
with on–site generating systems; and 14
(3) the potential for investor–owned electric companies to reduce expenses 15
relating to electric distribution system infrastructure by leveraging customers’ on –site 16
generating systems. 17
(c) The Commissi on shall consider establishing a limit on the amount of 18
incentives or rebates issued in a manner that achieves deployment goals while mitigating 19
potential customer impacts. 20
(d) The Commission shall consult with the ] THE Maryland Energy 21
Administration, when approving [or requiring] an incentive or rebate under this section, 22
[to] SHALL ensure that the incentive or rebate is designed to supplement, to the greatest 23
extent possible, other available State and federal incentive s for customer adoption of 24
renewable on–site generating systems. 25
7–1007. 26
(a) An investor–owned electric company may recover all reasonable costs incurred 27
in[: 28
(1)] participating in and administering a program under § 7 –1005 of this 29
subtitle[; and 30
(2) offering an upfront incentive or rebate under § 7–1006 of this subtitle]. 31
200 HOUSE BILL 1532
(b) To the extent feasible, the costs [listed] in subsection (a) of this section shall 1
be recovered by the investor –owned electric company within the calendar year in which 2
those costs were incurred. 3
(c) Notwithstanding any provision of this subtitle, an investor –owned electric 4
company may pursue and use a performance incentive mechanism to cover the cost of using 5
distributed energy resources or an aggregator of distributed resources under this subtitle. 6
7–1201. 7
(a) In this part the following words have the meanings indicated. 8
(g) “Large capacity energy resource” means a generating station or energy storage 9
device that[: 10
(1) on or before January 1, 2025: 11
(i) has applied to PJM for interconnection approval; or 12
(ii) has been approved by PJM for interconnection; and 13
(2)] has a capacity rating equal to or greater than 20 megawatts after 14
accounting for the effective load carrying capability. 15
7–1216. 16
(a) The C ommission may not approve an application for a nuclear energy 17
generation project submitted under § 7–1212 of this subtitle unless: 18
(1) the project is connected to the electric system serving the State; 19
(2) over the duration of the proposed long –term pricing schedule, the 20
projected net rate impact for an average residential customer, based on annual 21
consumption of 12,000 kilowatt–hours and combined with the projected net rate impact of 22
other nuclear energy generation projects, does not exceed an amount determined by the 23
Commission; 24
(3) over the duration of the proposed long –term pricing schedule, the 25
projected net rate impact for all nonresidential customers, considered as a blended average 26
and combined with the projected net rate impact of other nuc lear energy generation 27
projects, does not exceed a percentage determined by the Commission of nonresidential 28
customers’ total annual electric bills; and 29
(4) the price specified in the proposed long–term pricing schedule does not 30
exceed an amount determined by the Commission. 31
HOUSE BILL 1532 201
(b) When calculating the projected net average rate impacts for nuclear energy 1
generation projects under this section, the Commission shall [apply the same] CONSIDER 2
THE net long–term cost per megawatt –hour APPLIED to residential a nd nonresidential 3
customers. 4
7–1220. 5
(a) In this section, “zero–emission credit” means [the difference between the price 6
that a nuclear energy generating station with a long–term pricing schedule approved in an 7
order issued under § 7–1217 of this subtitle may receive on the wholesale market and the 8
cost of constructing the nuclear energy generating station ] A CREDIT EQUAL TO TH E 9
ENVIRONMENTAL ATTRIB UTES OF 1 MEGAWATT–HOUR OF ELECTRICITY THAT IS 10
DERIVED FROM A NUCLE AR ENERGY GENERATING STATION APPRO VED BY THE 11
COMMISSION UNDER § 7–1217 OF THIS SUBTITLE. 12
(b) The Commission shall adopt regulations that: 13
(1) establish the nuclear energy long –term pricing purchase obligation 14
sufficiently in advance to allow an electric company to reflect nuclear energy long–term 15
pricing costs as a nonbypassable surcharge that is added to the electric company’s base 16
distribution rate on customer bills; 17
(2) define rules that facilitate and ensure the secure and transparent 18
transfer of revenues and long–term pricing payments among parties; 19
(3) define the terms and procedures of the nuclear energy long –term 20
pricing schedule obligations, including: 21
(i) establishing a formula and process to adjust the value of the 22
long–term pricing schedule every 2 years based on projected wholesale market prices 23
adjusted by the locational value and earning potential in the PJM region of the nuclear 24
energy generating station; and 25
(ii) establishing a per megawatt hour cap on any long –term pricing 26
schedule specified in an order issued under § 7–1217 of this subtitle; 27
(4) require the Commission to establish an escrow account; and 28
(5) to meet the total statewide long –term pricing purchase obligation for 29
all applications approved in an order issued under § 7 –1217 of this sub title, require the 30
Commission to annually establish each electric company’s zero –emission credit purchase 31
obligation based on the most recent final electricity sales data as reported by PJM 32
Interconnection and measured at the customer’s meter in proportion to the electric 33
company’s share of statewide load. 34
202 HOUSE BILL 1532
(c) (1) Each electric company shall procure from the escrow account 1
established by regulation under this section a quantity of zero –emission credits equal to 2
the electric company’s respective percentage of retail electric sales each year. 3
(2) Subject to any escrow account reserve requirement the Commission 4
establishes, if there are insufficient zero –emission credits available to satisfy the electric 5
companies’ zero–emission credit purchase obligations, the overpayment shall be distributed 6
to electric companies to be refunded or credited to each distribution customer based on the 7
customer’s consumption of electricity supply that is subject to the renewable energy 8
portfolio standard. 9
(d) A debt, an obligation, or a liability of a nuclear energy generation project or of 10
an owner or operator of a nuclear energy generation project may not be considered a debt, 11
an obligation, or a liability of the State. 12
(E) (1) SUBJECT TO PARAGRAPH (2) OF THIS SUBSECTION, AND BEFORE 13
THE NUCLEAR ENERGY G ENERATION PROJECT BE GINS COMMERCIAL OPER ATION, 14
THE COMMISSION MAY APPROVE AN INCREASE OF THE TOTAL COST OF A NUCLEAR 15
ENERGY GENERATION PR OJECT UNDER A LONG –TERM PRICING PURCHAS E 16
OBLIGATION. 17
(2) THE TOTAL COST OF A NUCLEAR ENERGY GENERATION PROJECT 18
UNDER A LONG–TERM PRICING PURCHASE OBLIGATION MAY NOT BE INCREASED BY 19
MORE THAN 15% OF THE ORIGINAL TOTAL PROJECT COST. 20
Article – State Finance and Procurement 21
13–217. 22
(a) In this section, “multi –year contract” means a procurement contract that 23
requires appropriations for more than 1 fiscal year. 24
(b) (1) A unit may enter into a multi–year contract subject to: 25
(i) standards established by the Board; and 26
(ii) regulations adopted by the primary procurement unit that is 27
responsible for the type of procurement involved. 28
(2) A multi–year contract shall be subject to review and approval by that 29
primary procurement unit. 30
(c) A multi–year contract may not be approved unless each unit reviewing the 31
multi–year contract determines that: 32
(1) the estimated requirements of the State: 33
HOUSE BILL 1532 203
(i) cover the period of the multi–year contract; 1
(ii) are reasonably firm; and 2
(iii) are continuing; and 3
(2) the multi –year contract will serve the best interests of the State by 4
encouraging effective competition or otherwise promoting economy in State procurement. 5
(d) (1) If money sufficient for the continued performance of a multi –year 6
contract is not appropriated for any fiscal year, the multi –year contract terminates 7
automatically on the earlier of: 8
(i) the last day of the fiscal year for which money last was 9
appropriated; or 10
(ii) the date provided in the termination clause of the procurement 11
contract. 12
(2) If the multi–year contract is terminated under this subsection, the unit 13
shall reimburse the contractor for the reasonable value of any nonrecurring costs that were: 14
(i) incurred as a result of the multi–year contract; but 15
(ii) not amortized in the price of the supplies or services delive red 16
under the multi–year contract. 17
(3) The cost of termination under this subsection may be paid from any 18
appropriation available for that purpose. 19
(e) Except as provided in subsection (f) of this section, each multi –year contract, 20
including a lease of real property, shall include an automatic termination clause that: 21
(1) is not inconsistent with the requirements of subsection (d) of this 22
section; and 23
(2) discharges both parties to the multi –year contract from future 24
performance of that contract, but not from their existing obligations. 25
(f) (1) On the recommendation of the Secretary of General Services, FOR A 26
MULTI–YEAR CONTRACT TO PRO CURE ENERGY GENERATE D FROM A TIER 1 27
RENEWABLE SOURCE OR A TIER 2 RENEWABLE SOURCE, AS DEFINED IN § 7–701 OF 28
THE PUBLIC UTILITIES ARTICLE, the Board may waive the requirement to include: 29
204 HOUSE BILL 1532
(I) an automatic termination clause under subsection (e) of this 1
section [for a multi –year contract to procure energy generated from a Tier 1 renewable 2
source or a Tier 2 renewab le source, as defined in § 7 –701 of the Public Utilities Article ]; 3
OR 4
(II) A TERMINATION FOR CO NVENIENCE CLAUSE REQ UIRED 5
UNDER § 13–218(A)(2) OF THIS SUBTITLE. 6
(2) In determining whether [or not] to grant a waiver under paragraph (1) 7
of this subsection, the Board shall consider the effect of imposing THE FOLLOWING 8
CLAUSE REQUIREMENTS ON THE ABILITY OF TH E ENERGY SUPPLIER TO OBTAIN 9
FINANCING FOR THE RENEWABLE ENERGY GENERATION PROJECT THAT PRODUCES 10
THE ENERGY THAT THE STATE IS CONTRACTING TO PROCURE: 11
(I) the termination clause requirement under subsection (e) of this 12
section [on the ability of the energy supplier to obtain financing for the renewable energy 13
generation project that produces the energy that the State is contracting to procure]; AND 14
(II) THE TERMINATION FOR CONVENIENCE CLAUSE 15
REQUIREMENT UNDER § 13–218(A)(2) OF THIS SUBTITLE. 16
13–218. 17
(a) Each procurement contract shall include clauses covering: 18
(2) termination wholly or partly by the State for its convenience if the head 19
of the primary procurement unit determines that termination is appropriate; 20
(F) IN ACCORDANCE WITH § 3–217(F) OF THIS SUBTITLE, THE BOARD MAY 21
WAIVE THE INCLUSION OF A TERMINATION FOR CONVENIENCE CLAUSE REQUIRED 22
UNDER SUBSECTION (A)(2) OF THIS SECTION. 23
Article – State Government 24
9–20B–01. 25
(a) In this subtitle the following words have the meanings indicated. 26
(b) “Administration” means the Maryland Energy Administration. 27
9–20B–05. 28
(a) There is a Maryland Strategic Energy Investment Fund. 29
(f) The Administration shall use the Fund: 30
HOUSE BILL 1532 205
(1) to invest in the promotion, development, and implementation of: 1
(i) cost–effective energy efficiency and conservation programs, 2
projects, or activities, including measurement and verification of energy savings; 3
(ii) renewable and clean energy resources; 4
(iii) climate change programs directly related to reducing or 5
mitigating the effects of climate change; and 6
(iv) demand response programs that are designed to promote 7
changes in electric usage by customers in response to: 8
1. changes in the price of electricity over time; or 9
2. incentives designed to induce lower electricity use at times 10
of high wholesale market prices or when system reliability is jeopardized; 11
(2) to provide targeted programs, projects, activities, and investments to 12
reduce electricity consumption by customers in the low –income and moderate –income 13
residential sectors; 14
(3) to provide supplemental funds for low –income energy assistance 15
through [the Electric Universal Service Program established under § 7–512.1 of the Public 16
Utilities Article and other ] electric AND FUEL assistance programs in the Department of 17
Human Services; 18
(4) to provide rate relief by offsetting electricity rates of: 19
(I) residential customers, including an offset of surcharges imposed 20
on ratepayers under Title 7, Subtitle 2, Part II of the Public Utilities Article; AND 21
(II) RESIDENTS OF APARTMENT HOUSES, AS DEFINED IN § 7–303 22
OF THE PUBLIC UTILITIES ARTICLE, FOR WHICH ELECTRICIT Y SERVICE IS 23
PROVIDED THROUGH: 24
1. SUBMETERING AUTHORIZED UNDER § 7–303 OF THE 25
PUBLIC UTILITIES ARTICLE; OR 26
2. AN ENERGY ALLOCATION SYSTEM AS DEFINED IN § 27
7–304 OF THE PUBLIC UTILITIES ARTICLE; 28
206 HOUSE BILL 1532
(5) to provide grants, loans, and other assistance and investment as 1
necessary and appropriate to implement the purposes of the Program as set forth in § 2
9–20B–03 of this subtitle; 3
(6) to implement energy–related public education and outreach initiatives 4
regarding reducing energy consumption and greenhouse gas emissions; 5
(7) to provide rebates under the Electric Vehicle Recharging Equipment 6
Rebate Program established under § 9–2009 of this title; 7
(8) to provide grants to encourage combine d heat and power projects at 8
industrial facilities; 9
(9) to provide at least $1,200,000 in each fiscal year for fiscal year 2025 10
through fiscal year 2028 to the Climate Technology Founder’s Fund established under § 11
10–858 of the Economic Development Article; 12
(10) subject to subsection (f–2) of this section, to provide at least $2,100,000 13
in funding each fiscal year to the Maryland Energy Innovation Fund established under § 14
10–835 of the Economic Development Article; 15
(11) to provide at least $500,000 each year to the Resiliency Hub Grant 16
Program Fund under § 9–2011 of this title; 17
(12) to provide grants through the Customer –Sited Solar Program under § 18
9–2016 of this title; 19
(13) notwithstanding subsection (g) of this section, to pay costs associat ed 20
with the Air and Radiation Administration within the Department of the Environment; 21
[and] 22
(14) TO AWARD BIDS FOR RE NEWABLE ENERGY GENER ATION 23
PROJECTS UNDER § 9–20E–02 OF THIS TITLE; AND 24
(15) to pay the expenses of the Program. 25
(g) Proceeds received by the Fund from the sale of allowances under § 2 –1002(g) 26
of the Environment Article shall be allocated as follows: 27
(1) at least 50% shall be credited to an energy assistance account to be used 28
for [the Electric Universal Service Program and ot her] electricity AND FUEL assistance 29
programs in the Department of Human Services; 30
(2) at least 20% shall be credited to a low and moderate income efficiency 31
and conservation programs account and to a general efficiency and conservation programs 32
account for energy efficiency and conservation programs, projects, or activities and demand 33
HOUSE BILL 1532 207
response programs, of which at least one –half shall be targeted to the low and moderate 1
income efficiency and conservation programs account for: 2
(i) the low–income residential sector at no cost to the participants 3
of the programs, projects, or activities; and 4
(ii) the moderate–income residential sector; 5
(3) (I) EXCEPT AS PROVIDED IN ITEM (II) OF THIS ITEM, at least 20% 6
shall be credited to a renewable and clean energy programs account for: 7
[(i)] 1. renewable and clean energy programs and initiatives; 8
[(ii)] 2. energy–related public education and outreach; and 9
[(iii)] 3. climate change and resiliency programs; 10
(II) BEGINNING IN FISCAL YEAR 2028, AT LEAST 20% SHALL BE 11
CREDITED TO A RENEWA BLE AND CLEAN ENERGY PROGRAMS ACCOUNT AND 12
ALLOCATED AS FOLLOWS: 13
1. AT LEAST 45% FOR BUILDING CLEAN E NERGY AND 14
EFFICIENCY PROGRAMS , INCLUDING LOW –INCOME HOUSEHOLD ENE RGY 15
EFFICIENCY AND SCHOOL ELECTRIFICATION; 16
2. 30% FOR TRANSPORTATION –RELATED EMISSIONS 17
REDUCTION PROGRAMS , INCLUDING ELECTRIC V EHICLE CHARGING 18
INFRASTRUCTURE AND ELECTRIC SCHOOL BUS DEPLOYMENT; 19
3. 15% FOR ELECTRIC SYSTEM RESILIENCY PROGRAMS, 20
INCLUDING MICROGRID INSTALLATION AND RESILIENCY HUBS; 21
4. 5% FOR GRANTS OR REBATE S TO INCENTIVIZE 22
CUSTOMERS TO INSTALL RENEWABLE ON –SITE GENERATING SYSTEMS U NDER § 23
7–1006 OF THE PUBLIC UTILITIES ARTICLE; AND 24
5. IF THE AMOUNT OF THE ENVIRONMENTAL 25
SURCHARGE IMPOSED ON EACH RETAIL ELECTRIC CUSTOMER UNDER § 3–302 OF 26
THE NATURAL RESOURCES ARTICLE IS LESS THAN 0.15 MILL PER KILOWATT HOUR 27
OR $1,000 PER MONTH, 5% TO THE POWER PLANT RESEARCH PROGRAM WITHIN 28
THE DEPARTMENT OF NATURAL RESOURCES; and 29
(4) up to 10%, but not more than $7,500,000, shall be credited to an 30
administrative expense account for costs related to the administration of the Fund, 31
208 HOUSE BILL 1532
including the review of electric company plans for achieving electricity savings and demand 1
reductions that the electric companies are required under law to submit to the 2
Administration. 3
(i) (1) Except as provided in paragraphs (2), (3), [and] (4), AND (5) of this 4
subsection, compliance fees paid under § 7 –705(b) of the Public Utilities Article may be 5
used only to make loans and grants to support the creation of new Tier 1 renewable energy 6
sources in the State that are owned by or directly benefit: 7
(i) low– to moderate–income communities located in a census tract 8
with an average median income at or below 80% of the average median income for the State; 9
or 10
(ii) overburdened or underserved communities, as defined in § 1–701 11
of the Environment Article. 12
(2) Compliance fees paid under § 7 –705(b)(2)(i)2 of the Public Utilities 13
Article shall be accounted for separately within the Fund and may be used only to make 14
loans and grants to support the creation of new solar energy sources in the State that are 15
owned by or directly benefit: 16
(i) low– to moderate–income communities located in a census tract 17
with an average median income at or below 80% of the average median income for the State; 18
(ii) overburdened or underserved communities, as defined in § 1–701 19
of the Environment Article; or 20
(iii) households with low to moderate income, as defined in § 9–2016 21
of this title. 22
(3) For fiscal year 2026 only, up to $100,000,000 of compliance fees paid 23
under §§ 7–705(b) and 7–705(b)(2)(i)2 of the Public Utilities Article shall be accounted for 24
separately within the Fund and may be used for solar development on S tate government 25
property and local government clean energy projects. 26
(4) (i) Subject to subparagraphs (ii), (iii), and (iv) of this paragraph, 27
compliance fees paid under § 7 –705 of the Public Utilities Article may be used to provide 28
grants to electric companies to be refunded or credited to each residential distribution 29
customer based on the customer’s consumption of electricity supply that is subject to the 30
renewable energy portfolio standard. 31
(ii) The refunding or crediting of amounts to residential distribution 32
customers shall be identified on the customer’s bill as a line item identified as a “legislative 33
energy relief refund”. 34
(iii) An electric company awarded a grant under this paragraph: 35
HOUSE BILL 1532 209
1. may not retain any of the grant funds to cov er overhead 1
expenses; and 2
2. shall provide all of the grant funds to residential 3
distribution customers. 4
(iv) The process under subparagraphs (i) and (ii) of this paragraph 5
related to the refunding or crediting of amounts to residential distribution customers shall 6
be directed and overseen by the Commission. 7
(5) FOR FISCAL YEARS 2027 AND 2028, $100,000,000 OF 8
COMPLIANCE FEES PAID UNDER § 7–705 OF THE PUBLIC UTILITIES ARTICLE AND 9
DEPOSITED INTO THE FUND EACH FISCAL YEAR MAY BE USED TO AWARD BIDS FOR 10
RENEWABLE ENERGY GEN ERATION PROJECTS UND ER § 9–20E–02 OF THIS TITLE , 11
INCLUDING ANY ASSOCIATED ADMINISTRATIVE EXPENSES. 12
(N) FOR FISCAL YEAR 2028 AND EACH FISCAL YEAR THEREAFTER, THE 13
GOVERNOR SHALL INCLUDE IN THE ANNUAL BUDG ET BILL AN APPROPRIATION TO 14
THE FUND THAT IS EQUAL TO THE AMOUNT BY WHICH THE UNENCUMBERED AND 15
UNAPPROPRIATED BALANCE OF THE FUND THAT IS ATTRIBUTABLE TO THE SALE OF 16
ALLOWANCES UNDER § 2–1002(G) OF THE ENVIRONMENT ARTICLE EXCEEDS THE 17
FOLLOWING AMOUNTS ON JUNE 30 OF THE IMMEDIATELY PRECEDING FISCAL YEAR: 18
(1) FOR PROCEEDS CREDITED TO AN ENERGY ASSIS TANCE ACCOUNT 19
UNDER SUBSECTION (G)(1) OF THIS SECTION, $50,000,0000 $50,000,000; 20
(2) FOR PROCEEDS CREDITE D TO A LOW AND MODER ATE INCOME 21
EFFICIENCY AND CONSE RVATION PROGRAMS ACCOUNT AND TO A GEN ERAL 22
EFFICIENCY AND CONSERVATION PROGRAMS ACCOUNT UNDER SUBSECTION (G)(2) 23
OF THIS SECTION, $5,000,000 COMBINED BETWEEN THE TWO ACCOUNTS; 24
(3) FOR PROCEEDS CREDITED TO A RENEWABLE AND CLEAN ENERGY 25
PROGRAMS ACCOUNT UNDER SUBSECTION (G)(3)(II) OF THIS SECTION, $5,000,000; 26
AND 27
(4) FOR PROCEEDS CREDITE D TO AN ADMINISTRATI VE EXPENSE 28
ACCOUNT UNDER SUBSECTION (G)(4) OF THIS SECTION, $3,000,000. 29
SUBTITLE 20E. ALTERNATIVE COMPLIANCE FEE AUCTIONS. 30
9–20E–01. 31
(A) IN THIS SUBTITLE THE FOLLOWING WORDS HAVE THE M EANINGS 32
INDICATED. 33
210 HOUSE BILL 1532
(B) “ADMINISTRATION” MEANS THE MARYLAND ENERGY 1
ADMINISTRATION. 2
(C) “ALTERNATIVE COMPLIANCE FEE” MEANS A FEE PAID IN ACCORDANCE 3
WITH § 7–705 OF THE PUBLIC UTILITIES ARTICLE TO THE MARYLAND STRATEGIC 4
ENERGY INVESTMENT FUND ESTABLISHED UNDER § 9–20B–05 OF THIS TITLE. 5
(D) “AUCTION” MEANS AN ALTERNATIVE COMPLIANCE FEE AUCTION. 6
(E) “CAPACITY TARGET ” MEANS A CALCULATION OF THE AMOUNT OF 7
RENEWABLE ENERGY GEN ERATION NEEDED IN A GIVEN YEAR TO SATISF Y THE 8
RENEWABLE ENERGY POR TFOLIO STANDARD UNDE R § 7–703 OF THE PUBLIC 9
UTILITIES ARTICLE FOR A SPECIFI C YEAR , MINUS THE AMOUNT ALR EADY 10
PROCURED FROM OTHER SOURCES. 11
(F) “COMMISSION” MEANS THE PUBLIC SERVICE COMMISSION. 12
(G) “RENEWABLE ENERGY” MEANS ENERGY GENERATED FROM: 13
(1) ONSHORE WIND ENERGY GENERATING SYSTEMS; OR 14
(2) UTILITY–SCALE SOLAR ENERGY G ENERATING SYSTEMS , WHICH 15
MAY INCLUDE CO–LOCATED BATTERY STORAGE, THAT DO NOT PARTICIPATE IN NET 16
ENERGY METERING UNDE R § 7–306, § 7–306.2, § 7–306.3, OR § 7–306.4 OF THE 17
PUBLIC UTILITIES ARTICLE. 18
9–20E–02. 19
(A) (1) FOR 2027 AND 2028, THE ADMINISTRATION SHALL CONDUCT, IN 20
CONSULTATION WITH TH E COMMISSION, AN ANNUAL , COMPETITIVE, LOW–BID 21
ALTERNATIVE COMPLIAN CE FEE AUCTION TO AW ARD CONTRACTS TO ELI GIBLE 22
BIDDERS TO FUND PROJ ECTS FOR THE DEVELOP MENT OF RENEWABLE EN ERGY 23
GENERATION IN THE STATE USING REVENUE F ROM ALTERNATIVE COMP LIANCE 24
FEES. 25
(2) (I) THE ADMINISTRATION AND TH E COMMISSION SHALL SET 26
THE CAPACITY TARGET FOR THE AMOUNT OF RE NEWABLE ENERGY GENER ATION 27
REQUIRED FOR 2027 AND 2028. 28
(II) IN DETERMINING THE CA PACITY TARGET FOR EA CH 29
AUCTION, THE ADMINISTRATION AND TH E COMMISSION SHALL USE A 30
TRANSPARENT METHODOLOGY, INCLUDING: 31
HOUSE BILL 1532 211
1. RENEWABLE ENERGY CREDIT SHORTFALLS FROM THE 1
PRIOR YEAR; 2
2. ANTICIPATED GROWTH IN RENEWABLE ENERGY OVER 3
TIME; 4
3. AVAILABLE ALTERNATIV E COMPLIANCE FEE 5
REVENUE; 6
4. MODELED EXPECTED ENE RGY CLEARING PR ICES; 7
AND 8
5. TRENDS IN IN –STATE RENEWABLE ENERG Y 9
GENERATION. 10
(3) THE ADMINISTRATION AND THE COMMISSION MAY SET: 11
(I) A MINIMUM LEVEL OF M EGAWATTS REQUIRED FROM EACH 12
TYPE OF RENEWABLE ENERGY SOURCE IN THE AUCTION; OR 13
(II) SPECIFIC PROCUREMENT THRESHOLDS FOR ALL T YPES OF 14
RENEWABLE ENERGY SOURCES COLLECTIVELY. 15
(B) (1) THE ADMINISTRATION, IN CONSULTATION WITH THE 16
COMMISSION, SHALL DEVELOP AND CONDUCT THE AUCTIONS IN A MANNER THAT IS 17
COST–EFFECTIVE AND MAINTA INS AND PROMOTES THE DEVELOPMENT OF 18
RENEWABLE ENERGY IN THE STATE. 19
(2) THE COMPETITIVE AUCTI ON PROCESS MAY REQUI RE THE 20
ADMINISTRATION TO SOL ICIT A SERIES OF BID S FROM RENEWABLE ENE RGY 21
PROJECT DEVELOPERS F OR THE DEVELOPMENT O F RENEWABLE ENERGY 22
GENERATION PROJECTS THAT ARE NEEDED TO M EET ELECTRICITY DEMAND IN A 23
COST–EFFECTIVE MANNER. 24
(C) (1) TO BE ELIGIBLE TO SUB MIT A BID UNDER THIS SECTION, A 25
PERSON MUST: 26
(I) BE A RENEWABLE ENERG Y GENERATION PROJECT 27
DEVELOPER; AND 28
(II) MEET THE MINIMUM CRE DIT AND OTHER ELIGIB ILITY 29
REQUIREMENTS SET UNDER PARAGRAPH (2) OF THIS SUBSECTION. 30
212 HOUSE BILL 1532
(2) THE ADMINISTRATION, IN CONSULTATION WITH THE 1
COMMISSION, SHALL SET ELIGIBILIT Y REQUIREMENTS FOR B IDDERS, INCLUDING 2
REQUIRING EACH BIDDER TO: 3
(I) PROVIDE PROOF OF FINANCIAL INTEGRITY; 4
(II) POST A BOND OR OTHER SIMILAR INSTRUMENT; 5
(III) AGREE TO BE SUBJECT TO ALL APPLICABLE TAXES; AND 6
(IV) COMPLY WITH ANY OTHE R REQUIREMENTS THE 7
ADMINISTRATION DETERMINES ARE IN THE PUBLIC INTEREST. 8
(D) (1) ELIGIBLE BIDDERS SHAL L SUBMIT COMPETITIVE BIDS BY 9
SPECIFYING: 10
(I) THE ACTUAL AMOUNT OF MEGAWATTS TO BE GENE RATED 11
BY THE RENEWABLE ENERGY GENERATION PROJECT; AND 12
(II) A PRICE PER MEGAWATT THAT WOULD BE REQUIRED FROM 13
THE AUCTION. 14
(2) THE ADMINISTRATION SHALL RANK BIDS FROM LOWES T TO 15
HIGHEST COST PER MEGAWATT AND AWA RD FUNDS DERIVED FRO M ALTERNATIVE 16
COMPLIANCE FEES TO THE LOWEST BID OR BIDS. 17
(3) THE ADMINISTRATION SHALL AWARD BIDS UNTIL THE CAPACITY 18
TARGET SET UNDER SUBSECTION (A)(2) OF THIS SECTION IS REACHED. 19
(4) THE BIDDER WHO SUBMIT S THE LOWEST RESPONSIVE BI D FOR 20
DEVELOPING A RENEWAB LE ENERGY GENERATION PROJECT SHALL BE AWA RDED 21
THE AMOUNT OF FUNDS TO BUILD THE RENEWABLE ENERGY GENERATION PROJECT. 22
(5) THE ADMINISTRATION MAY REFUSE TO ACCEPT SOME OR ALL OF 23
THE BIDS MADE IN A C OMPETITIVE A UCTION IN ACCORDANCE WITH STANDARDS 24
ADOPTED BY THE ADMINISTRATION. 25
(6) (I) IF THE CAPACITY TARGE T CAN BE MET AT A CO ST BELOW 26
THE ALLOCATED FUNDING, THE ADMINISTRATION MAY: 27
1. CARRY FORWARD ANY FU NDING TO THE NEXT 28
AUCTION, IF APPLICABLE; OR 29
HOUSE BILL 1532 213
2. APPLY THE FUNDS FOR ANY ADDITIONAL MEGAWATTS 1
OF RENEWABLE ENERGY GENERATION THAT HAVE BEEN OFFERED UNDER T HE 2
AUCTION. 3
(II) ANY AMOUNT OF ALLOCAT ED FUNDING THAT IS N OT 4
CARRIED FORWARD OR A PPLIED UNDER SUBPARA GRAPH (I) OF THIS PARAGRAPH 5
SHALL ACCRUE IN T HE MARYLAND STRATEGIC ENERGY INVESTMENT FUND AND 6
MAY BE ALLOCATED FOR ANY PURPOSE FOR WHICH ALTERNATIVE COMPLIANCE FEE 7
REVENUE IS AUTHORIZED TO BE USED. 8
(E) (1) THE ADMINISTRATION SHALL SET DELIVERY DEADLIN ES FOR 9
EACH RENEWABLE ENERG Y GENERATION PROJECT THAT IS AWARDED FUND ING 10
FROM AN AUCTION. 11
(2) THE DEADLINES SET IN PARAGRAPH (1) OF THIS SUBSECTION 12
SHALL INCLUDE MILEST ONES THAT REQUIRE TH E DEVELOPER TO MEET CERTAIN 13
DELIVERY GOALS DURIN G THE DEVELOPMENT OF A RENEWABLE ENERGY 14
GENERATION PROJECT. 15
(3) THE ADMINISTRATION MAY GR ANT EXTENSIONS FOR D ELIVERY 16
GOALS THAT ARE DELAY ED DUE TO INTERCONNE CTION OR PERMITTING 17
CHALLENGES OR DELAYS IF THE DEVELOPER PRO VIDES DOCUMENTATION OF THE 18
CHALLENGE OR DELAY. 19
(4) THE ADMINISTRATION SHALL ESTABLISH A METHOD O F 20
COLLECTION AGAINST A NY DEVELOPER AWARDED A CONTRACT UNDER THI S 21
SECTION TO RECAPTURE ANY FUNDS RECEIVED AS A RESULT OF: 22
(I) MISAPPROPRIATION, OVERPAYMENT, OR FRAUD; OR 23
(II) FAILURE TO MEET MILESTONES OR DELIVERY DATES. 24
(F) WITHIN 90 DAYS AFTER AL L CONTRACTS FOR RENE WABLE ENERGY 25
GENERATION PROJECTS ARE EXECUTED, THE ADMINISTRATION SHALL PUBLICLY 26
DISCLOSE THE NAMES O F EACH SUCCESSFUL BI DDER AND THE MEGAWATTS TO BE 27
DELIVERED BY THE DEV ELOPMENT OF THE RENE WABLE ENERGY GENERAT ION 28
PROJECT. 29
(G) ON OR BEFORE JULY 1, 2027, AND JULY 1, 2028, THE ADMINISTRATION 30
AND THE COMMISSION SHALL REPO RT TO THE GENERAL ASSEMBLY, IN 31
ACCORDANCE WITH § 2–1257 OF THIS ARTICLE , ON THE ADMINISTRATION OF THE 32
IMMEDIATELY PRECEDING AUCTION, INCLUDING: 33
214 HOUSE BILL 1532
(1) THE AMOUNT OF MEGAW ATTS PROCURED THROUG H THE 1
AUCTION; 2
(2) THE COST PER MEGAWAT T OF RENEWABLE ENERG Y ALLOCATED 3
IN THE AUCTION; 4
(3) THE NUMBER OF RENEWA BLE ENERGY CREDITS C REATED AS A 5
RESULT OF THE AUCTION; AND 6
(4) ANY OTHER INFORMATIO N THE ADMINISTRATION AND TH E 7
COMMISSION CONSIDER RELEVANT. 8
(H) THE ADMINISTRATION, IN CONSULTATION WITH THE COMMISSION, 9
SHALL ADOPT REGULATIONS TO CARRY OUT THIS SECTION. 10
SECTION 4. AND BE IT FURTHER ENACTED, That the Laws of Maryland read 11
as follows: 12
Article – Public Utilities 13
4–213. 14
(a) This section applies only to a public service company that is an electric 15
company, a gas company, or a combination gas and electric company. 16
(b) Unless otherwise authorized by law, the Commission may approve the use of 17
a multiyear rate plan for distribution base rates only if the plan: 18
(1) demonstrates the customer benefits of the investment; and 19
(2) does not allow for: 20
(I) the public service company to file for reconciliation of cost or 21
revenue variances of the approved revenue component used by the Commission to establish 22
just and reasonable rates IF THE RECONCILIATIO N WOULD RESULT IN AD DITIONAL 23
CHARGES TO CUSTOMERS; OR 24
(II) THE USE OF COST –SHARING MECHANISMS T HAT WOULD 25
RESULT IN ADDITIONAL CHARGES TO CUSTOMERS ABOVE THE APPROVED REVENUE 26
COMPONENT USED BY TH E COMMISSION TO ESTABLI SH JUST AND REASONAB LE 27
RATES. 28
(c) A public service company that files or has filed an application for a multiyear 29
rate plan may not subsequently file for reconciliation of cost or revenue variances [of] THAT 30
HOUSE BILL 1532 215
WOULD RESULT IN ADDI TIONAL CHARGES TO CU STOMERS DUE TO THE P UBLIC 1
SERVICE COMPANY SPEN DING MORE THAN the approved revenue component used by 2
the Commission to establish the multiyear rates unless the filing for reconciliation was 3
made on or before January 1, 2025. 4
(D) THE COMMISSION MAY REQUIR E A PUBLIC SERVICE C OMPANY TO 5
INCLUDE A RECONCILIATION PROCEDURE IN ITS MULTIYEAR RATE PLAN TO REFUND 6
CUSTOMERS THE DIFFERENCE BETWEEN: 7
(1) THE PUBLIC SERVICE C OMPANY’S FORECAST REVENUE 8
REQUIREMENT; AND 9
(2) THE PUBLIC SERVICE C OMPANY’S ACTUAL REVENUE 10
REQUIREMENT DURING THE TERM OF THE MULTIYEAR RATE PLAN. 11
4–504. 12
(a) (1) IN THIS SECTION THE F OLLOWING WORDS HAVE THE MEANINGS 13
INDICATED. 14
(2) (I) “BONUS” MEANS A FORM OF DIRE CT OR INDIRECT 15
PAYMENT, CONSIDERATION, OR COMPENSATION THAT IS PAID OR CONVEYED TO AN 16
EMPLOYEE OF A PUBLIC SERVICE COMPANY IN ADDITION TO THE EMPLOYEE’S BASE 17
PAY. 18
(II) “BONUS” INCLUDES: 19
1. COMPENSATION THAT TH E PUBLIC SERVICE 20
COMPANY DOES NOT FORMALLY LABEL AS A BONUS PAYMENT; 21
2. ANY FORM OF INCENTIV E COMPENSATION THE F ACT 22
AND AMOUNT OF WHICH IS UNDER THE DISCRET ION OF THE PUBLIC SE RVICE 23
COMPANY UNTIL A TIME CLOSE TO THE END OF THE PERIOD FOR WHICH THE 24
INCENTIVE PAYMENT IS PAID; AND 25
3. PAYMENTS GIVEN IN AD DITION TO BASE PAY THAT 26
ARE CONTINGENT ON THE OCCURRENCE OF ONE OR MORE EVENTS OR CONDITIONS. 27
(3) (I) “COMPENSATION” MEANS A FORM OF PAYM ENT OR 28
CONSIDERATION CONVEYED TO OR FOR THE BENEFIT OF AN EMPLOYEE OF A PUBLIC 29
SERVICE COMPANY, THE PARENT COMPANY OF A PUBLIC SERVICE COMPANY, OR ANY 30
OTHER AFFILIATE OF A PUBLIC SERVICE COMPA NY IN CONNECTION WIT H THE 31
EMPLOYEE’S WORK FOR A PUBLIC SERVICE COMPANY. 32
216 HOUSE BILL 1532
(II) “COMPENSATION” INCLUDES: 1
1. DIRECT AND INDIRECT METHODS OF CONFERRIN G 2
BENEFITS; 3
2. CASH AND NONCASH BENEFITS; 4
3. SALARY, BONUSES, PERIOD PAYMENTS , AND 5
SEVERANCE PAY; AND 6
4. THE VALUE OF A PERQU ISITE, COMPENSATORY OR 7
PAID LEAVE, OR OTHER BENEFIT NOT EXCLUDED UNDER SUBPA RAGRAPH (III) OF 8
THIS PARAGRAPH. 9
(III) “COMPENSATION” DOES NOT INC LUDE ANY EXPENDITURE 10
OF A PUBLIC SERVICE COMPANY FOR HEALTH, MEDICAL, DENTAL, VISION, OR LIFE 11
INSURANCE OR DISABILITY PAY. 12
(4) “SUPERVISOR” MEANS AN EMPLOYEE OF A PUBLIC SERVICE 13
COMPANY, THE PARENT COMPANY OF A PUBLIC SERVICE COMPANY, OR ANY OTHER 14
AFFILIATE OF A PUBLIC SERVICE COMPANY WHO: 15
(I) USING THE EMPLOYEE’S INDEPENDENT JUDGMENT: 16
1. IS AUTHORIZED BY THE EMPLOYEE’S EMPLOYER TO 17
HIRE, TRANSFER, SUSPEND, LAY OFF , RECALL, PROMOTE, DISCHARGE, ASSIGN, 18
REWARD, OR DISCIPLINE OTHER EMPLOYEES; 19
2. IS RESPONSIBLE FOR D IRECTING THE WORK 20
PERFORMANCE OF OTHER EMPLOYEES; AND 21
3. IS RESPONSIBLE FOR R ESPONDING TO EMPLOYE E 22
COMPLAINTS; OR 23
(II) IS EMPLOYED IN A BONA FIDE EXECUTIVE CAPACITY UNDER 24
THE FEDERAL FAIR LABOR STANDARDS ACT. 25
(B) This sect ion applies only to a public service company that is an 26
investor–owned electric company, gas company, or combination gas and electric company. 27
[(b)] (C) A public service company may not recover through rates any costs 28
associated with: 29
HOUSE BILL 1532 217
(1) membership, dues, sponsorships, or contributions to an industry trade 1
association, group, or related entity exempt from taxation under § 501(c)(6) of the Internal 2
Revenue Code; [or] 3
(2) the acquisition, use, or allocation of costs associated with a priv ate 4
plane that is owned or leased by the public service company or its holding company; OR 5
(3) COMPENSATION FOR A SUPERVISOR THAT EXCEEDS 110% OF THE 6
MAXIMUM ANNUAL SALARY PAYABLE TO THE CHAIR OF THE COMMISSION FOR THE 7
SAME CALENDAR YEAR. 8
(D) (1) THE BOARD OF DIRECTORS O F EACH PUBLIC SERVIC E COMPANY 9
SHALL ADOPT A COMPANY–WIDE POLICY PLACING REASONABLE COST LIMITATIONS, 10
IN ACCORDANCE WITH G UIDANCE PUBLISHED BY THE COMMISSION UNDER 11
PARAGRAPH (2) OF THIS SUBSECTION , ON EXPENDITURES THAT THE PUBLIC 12
SERVICE COMPANY INTENDS TO RECOVER THROUGH RATES FOR: 13
(I) ENTERTAINMENT AND EVENTS; 14
(II) OFFICE AND FACILITY RENOVATIONS; 15
(III) TRANSPORTATION SERVICES, INCLUDING AVIATION; 16
(IV) STAFF DEVELOPMENT ACTIVITIES OR EVENTS; 17
(V) PERFORMANCE INCENTIVES; AND 18
(VI) OTHER ACTIVITIES OUT SIDE THE SCOPE OF TH E NORMAL 19
COURSE OF BUSINESS OPERATIONS. 20
(2) THE COMMISSION SHALL PUBL ISH GUIDANCE DEFININ G 21
“REASONABLE COST LIMITATIONS” FOR EXPENDITURES UNDER THIS SUBSECTION. 22
(3) EACH PUBLIC SERVICE COMPANY SHALL SEND A COPY OF THE 23
POLICY ADOPTED UNDER PARAGRAPH (1) OF THIS SUBSECTION T O THE 24
COMMISSION: 25
(I) AS SOON AS PRACTICABLE; AND 26
(II) EACH TIME THE POLICY IS UPDATED, BUT NOT LESS THAN 27
EVERY 5 YEARS. 28
7–306. 29
218 HOUSE BILL 1532
(a) (1) In this section the following words have the meanings indicated. 1
(4) “Eligible customer –generator” means a customer that owns and 2
operates, leases and operates, or contracts with a third party that owns and operates a 3
biomass, micro combined heat and power, solar, fuel cell , wind, or closed conduit hydro 4
electric generating facility that: 5
(i) is located on the customer’s premises or contiguous property; 6
(ii) is interconnected and operated in parallel with an electric 7
company’s transmission and distribution facilities; and 8
(iii) is intended primarily to offset all or part of the customer’s own 9
electricity requirements. 10
(7) “Net energy metering” means measurement of the difference between 11
the electricity that is supplied by an electric company and the e lectricity that is generated 12
by an eligible customer –generator and fed back to the electric grid over the eligible 13
customer–generator’s billing period. 14
(d) (1) The Commission shall require electric utilities to develop a standard 15
contract or tariff for net energy metering and make it available to eligible 16
customer–generators on a first–come, first–served basis until THE EARLIER OF: 17
(I) THE DATE ON WHICH the rated generating capacity owned and 18
operated by eligible customer–generators in the State reaches 3,000 megawatts; OR 19
(II) JULY 1, 2027. 20
(2) NOTWITHSTANDING PARAG RAPH (1)(II) OF THIS SUBSECTION 21
AND EXCEPT AS PROVID ED IN PARAGRAPH (3) OF THIS SUBSECT ION, IF THE 3,000 22
MEGAWATT LIMIT IN PARAGRAPH (1)(I) OF THIS SUBSECTION HAS NOT BEEN MET, A 23
COMMUNITY SOLAR ENER GY GENERATING SYSTEM UNDER § 7–306.2 OF THIS 24
SUBTITLE THAT IS PLA CED IN SERVICE AFTER JULY 1, 2027, SHALL BE ELIGIBLE 25
FOR NET ENERGY METERING UNDER THIS SECTION IF: 26
(I) THE SYSTEM: 27
1. ON OR BEFORE JANUARY 1, 2027, RECEIVED A QUEUE 28
POSITION UNDER § 7–306.2 OF THIS SUBTITLE AND PAID ALL INTERCONNEC TION 29
FEES; AND 30
2. EXCEPT AS PROVIDED I N PARAGRAPH (4) OF THIS 31
SUBSECTION, IS PLACED IN SERVICE ON OR BEFORE JULY 1, 2029; AND 32
HOUSE BILL 1532 219
(II) THE ELECTRIC COMPANY IN WHOSE SERVICE TER RITORY 1
THE COMMUNITY SOLAR ENERGY GENERATING SYSTEM IS LOCATED HAS NOT MET 2
THE NET ENERGY METER ING CAPACITY LIMIT U NDER PARAGRAPH (3) OF THIS 3
SUBSECTION. 4
(3) THE NE T ENERGY METERING CA PACITY LIMIT FOR THE 5
CONSTRUCTION OF COMMUNITY SOLAR PROJECTS UNDER A NET ENERGY METERING 6
CONTRACT OR TARIFF UNDER THIS SECTION IN AN ELECTRIC COMPANY’S SERVICE 7
TERRITORY SHALL BE THE PERCENTAGE OF THE 3,000 MEGAWATT LIMIT PROVIDED 8
IN PARAGRAPH (1)(I) OF THIS SUBSECTION THAT IS EQUAL TO THE PERCENTAGE OF 9
TOTAL RETAIL ELECTRICITY SALES IN THE STATE THAT ARE MADE IN THE ELECTRIC 10
COMPANY’S SERVICE TERRITORY DURING 2026. 11
(4) IF THE COMMISSION DOES NOT I MPLEMENT A SUCCESSOR 12
PROGRAM UNDER § 7–306.4 OF THIS SUBTITLE BY JULY 1, 2027, A COMMUNITY 13
SOLAR ENERGY GENERATING SYSTEM THAT HAS NOT BEEN PLACED IN S ERVICE BY 14
JULY 1, 2027, BUT MEETS THE REQUIREMENTS OF PARAGRAPH (2)(I)1 AND (II) OF 15
THIS SUBSECTION SHAL L BE ELIGIBLE FOR NE T ENERGY METERING UNDER THIS 16
SECTION IF IT IS PLACED IN SERVICE ON OR BEFORE 2 YEARS AFTER THE DATE THAT 17
THE SUCCESSOR PROGRAM IS IMPLEMENTED. 18
(5) (I) AN ELIGIBLE CUSTOMER –GENERATOR THAT , ON JULY 1, 19
2027, IS UNDER A NET ENERG Y METERING CONTRACT OR TARIFF UNDER THIS 20
SECTION OR A COMMUNITY SOLAR ENERGY GENERATING SYSTEM THAT MEETS THE 21
REQUIREMENTS OF SUBP ARAGRAPH (II) OF THIS SUBSECTION S HALL REMAIN 22
ELIGIBLE FOR NET ENE RGY METERING UNDER T HIS SECTION FOR A LE NGTH OF 23
TIME DETERMINED BY THE COMMISSION THROUGH REGULATIONS ADOPTED UNDER 24
SUBPARAGRAPH (II) OF THIS PARAGRAPH. 25
(II) THE COMMISSION, AFTER HOLDING A STAK EHOLDER 26
PROCEEDING, SHALL ADOPT REGULATIONS REGARDING THE TERMS UNDER WHICH 27
AN ELIGIBLE CUSTOMER–GENERATOR OR COMMUNITY SOLAR ENERGY GENERATING 28
SYSTEM UNDER A NET METERING CONTRACT OR TARIFF UNDER THIS SECTION MAY 29
REMAIN ELIGIBLE FOR NET ENERGY METERING UNDER THIS SECTION, INCLUDING: 30
1. THE LENGTH OF TIME A FTER THE SUCCESSOR 31
PROGRAM UNDER § 7–306.4 OF THIS SUBTITLE IS IMPLEMENTED THAT AN EXISTING 32
ELIGIBLE CUSTO MER–GENERATOR MAY REMAIN ELIGIBLE FOR NET ENE RGY 33
METERING UNDER THIS SECTION; 34
2. CONDITIONS UNDER WHICH A NET ENERGY METERED 35
SYSTEM MAY BE CONSIDERED INELIGIBLE FOR NET ENERGY METERING UNDER THIS 36
SECTION; AND 37
220 HOUSE BILL 1532
3. REQUIREMENTS FOR DEC OMMISSIONING SYSTEMS 1
THAT ARE NET ENERGY METERED UNDER THIS SECTION. 2
(j) On or before November 1 of each year, the Commission shall report to the 3
General Assembly, in accordance with § 2 –1257 of the State Government Article, on the 4
status of the net ENERGY metering program under this section AND § 7–306.4 OF THIS 5
SUBTITLE, including: 6
(1) the amount of capacity of electric generating facilities owned and 7
operated by eligible customer–generators in the State by type of energy resource; 8
(2) based on the need to encourage a diversification of the State’s energy 9
resource mix to ensure reliability, whether the rated generating capacity limit in subsection 10
(d) of this section should be altered; [and] 11
(3) THE STATUS OF THE IM PLEMENTATION AND EF FICACY OF THE 12
SUCCESSOR PROGRAM DE VELOPED AND IMPLEMEN TED UNDER § 7–306.4 OF THIS 13
SUBTITLE; AND 14
(4) other pertinent information. 15
7–306.4. 16
(A) (1) IN THIS SECTION THE F OLLOWING WORDS HAVE THE MEANINGS 17
INDICATED. 18
(2) “ELIGIBLE CUSTOMER–GENERATOR” HAS THE MEANING STATED 19
IN § 7–306 OF THIS SUBTITLE. 20
(3) “NET ENERGY METERING” HAS THE MEANING STATED IN § 7–306 21
OF THIS SUBTITLE. 22
(B) IT IS THE INTENT OF THE GENERAL ASSEMBLY TO TRANSITION TO A NET 23
ENERGY METERING PROGRAM THAT: 24
(1) INCREASES BENEFITS TO RATEPAYERS BY LOW ERING ELECTRIC 25
SYSTEM COSTS THROUGH THE USE OF FLEXIBLE CUSTOMER–SITED RENEWABLE 26
ENERGY RESOURCES; 27
(2) PROVIDES FAIR COMPEN SATION TO ELIGIBLE 28
CUSTOMER–GENERATORS; 29
HOUSE BILL 1532 221
(3) IS DESIGNED TO MAKE PROGRESS TOWARD MEETING THE STATE’S 1
DEMAND–SIDE, ENERGY STORAGE, AND CLEAN ENERGY GOALS; AND 2
(4) PROVIDES INCENTIVES FOR THE DEVELOPMENT OF DISTRIBUTED 3
GENERATION THAT ARE LESS THAN THE INCENTIVES PROVIDED BY THE NET ENERGY 4
METERING PROGRAM UNDER § 7–306 OF THIS SUBTITLE. 5
(C) THE COMMISSION, BY ORDER OR REGULATI ON, SHALL DEVELOP AND 6
IMPLEMENT, AS A SUCCESSOR PROGRAM TO THE NET ENERGY METERING PROGRAM 7
UNDER § 7–306 OF THIS SUBTITLE, A NET ENERGY METERIN G PROGRAM TO BEGIN 8
JULY 1, 2027, THAT: 9
(1) PROVIDES INCENTIVES FOR THE DEVELOPMENT OF DISTRIBUTED 10
GENERATION TO ELIGIBLE CUSTOMER–GENERATORS UNDER §§ 7–306 AND 7–306.3 11
OF THIS SUBTITLE AND COMMUNITY SOLAR ENERGY GENERATING SYSTEMS UNDER 12
§ 7–306.2 OF THIS SUBTITLE; 13
(2) MINIMIZES RATEPAYER COSTS IN THE SHORT T ERM AND IN THE 14
LONG TERM; AND 15
(3) BALANCES, ON A STATEWIDE BASIS AND ACROSS TECHNOLOGIES 16
AND INDUSTRY SECTORS PARTICIPATING IN NET ENERGY METERING: 17
(I) 1. FAIR COMPENSATION FOR ENERGY EXPORTS; AND 18
2. THE BENEFITS OF AN E LIGIBLE 19
CUSTOMER–GENERATOR’S OR FACILITY ’S REDUCED LOAD ON THE ELECTRIC 20
TRANSMISSION AND DISTRIBUTION SYSTEM; AGAINST 21
(II) 1. THE NEEDS OF THE TRA NSMISSION AND 22
DISTRIBUTION SYSTEM; 23
2. RATEPAYER COSTS AND BENEFITS; AND 24
3. POTENTIAL IMPACTS ON CUSTOMERS , INCLUDING 25
LOW– AND MODERATE–INCOME CUSTOMERS, WHO DO NOT PARTICIPATE IN THE NET 26
ENERGY METERING PROG RAM RESULTING FROM E LIGIBLE 27
CUSTOMER–GENERATORS’ REDUCED CONTRIBUTION S TO THE DISTRIBUTIO N 28
SYSTEM. 29
(D) ON OR BEFORE JANUARY 1, 2027, THE COMMISSION SHALL PROV IDE 30
NOTICE TO THE GENERAL ASSEMBLY, IN ACCORDANCE WITH § 2–1257 OF THE 31
222 HOUSE BILL 1532
STATE GOVERNMENT ARTICLE, ON THE STATUS OF THE DEVELOPMENT OF THE 1
PROGRAM REQUIRED UNDER SUBSECTION (C) OF THIS SECTION. 2
(E) THE COMMISSION SHALL PRIORITIZE THE REVIEW AND APPRO VAL OF 3
APPLICATIONS FROM A PROSPECTIVE ELIGIBLE CUSTOMER–GENERATOR FOR 4
PARTICIPATION IN THE PROGRAM IMPLEMENTED UNDER SUBSECTION (C) OF THIS 5
SECTION IF, AT THE TIME THE PROG RAM WAS IMPLEMENTED , THE PROSPECTIVE 6
ELIGIBLE CUSTOMER –GENERATOR WAS IN THE QUEUE FOR THE NET ENERGY 7
METERING PROGRAM UNDER § 7–306 OF THIS SUBTITLE. 8
(F) THE PROGRAM IMPLEMENT ED BY THE COMMISSION UNDER 9
SUBSECTION (C) OF THIS SECTION SHAL L BE AVAILABLE UNTIL THE COMBINED 10
TOTAL RATED GENERATI NG CAPACITY OWNED AN D OPE RATED UNDER THE NET 11
ENERGY METERING PROG RAM UNDER § 7–306 OF THIS SUBTITLE AND THE NET 12
ENERGY METERING PROGRAM IMPLEMENTED UNDER THIS SECTION REACHES 6,000 13
MEGAWATTS. 14
7–505. 15
(c) (1) Notwithstanding any other provision of law, including subsection (d) of 16
this section, and subject to § 4 –213 of this article, the Commission may regulate the 17
regulated services of an electric company through alternative forms of regulation. 18
(2) The Commission may adopt an alternative form of regulation under this 19
section i f the Commission finds, after notice and hearing, that the alternative form of 20
regulation: 21
(i) protects consumers; 22
(ii) ensures the quality, availability, and reliability of regulated 23
electric services; and 24
(iii) is in the interest of the publi c, including shareholders of the 25
electric company. 26
(3) Alternative forms of regulation may include: 27
(i) price regulation, including price freezes or caps; 28
(ii) revenue regulation; 29
(iii) ranges of authorized return; 30
(iv) rate of return; 31
HOUSE BILL 1532 223
(v) categories of services; or 1
(vi) price–indexing. 2
(4) ALTERNATIVE FORMS OF REGULATION MAY NOT INCLUDE A RATE 3
MECHANISM THAT IS BA SED ON A FORECAST TE ST YEAR IN A BASE RA TE 4
PROCEEDING. 5
Chapter 623 of the Acts of 2025 6
SECTION 4. AND BE IT FURTHER ENACTED, That: 7
(a) The Public Service Commission shall conduct a study on the feasibility of and 8
technical barriers to establishing: 9
(1) within the Commission a community solar automatic enrollment 10
program for local jurisdictions; AND 11
(2) IN CONSULTATION WITH THE DEPARTMENT OF HUMAN 12
SERVICES, AN AUTOMATIC COMMUNITY SOLAR ENROLLMENT PROCESS TO PROVIDE 13
BILL CREDITS FOR LOW – TO MODERATE –INCOME SUBSCRIBERS T HROUGH THE 14
OFFICE OF HOME ENERGY PROGRAMS IN THE DEPARTMENT. 15
(b) In conducting the study under subsection (a) of this [section,] SECTION: 16
(1) FOR AN AUTOMATIC ENROLLMENT PROGRAM UNDER SUBSECTION 17
(A)(1) OF THIS SECTION, the PUBLIC SERVICE Commission shall consider: 18
[(1)] (I) how low– to moderate–income subscribers would be subscribed 19
under the program; 20
[(2)] (II) whether subscribers automatically enrolled in the program 21
should receive a bill credit; 22
[(3)] (III) how to ensure that local jurisdictions comply with all parameters 23
of the program; and 24
[(4)] (IV) any necessary notification requirements and consumer 25
protections that the program should have; AND 26
(2) FOR THE AUTOMATIC EN ROLLMENT PROCESS UND ER 27
SUBSECTION (A)(2) OF THIS SECTION , THE PUBLIC SERVICE COMMISSION, IN 28
CONSULTATION WITH THE DEPARTMENT OF HUMAN SERVICES, SHALL CONSIDER: 29
224 HOUSE BILL 1532
(I) ELIGIBILITY CRITERIA FOR LOW – TO MODERATE –INCOME 1
SUBSCRIBERS; 2
(II) OPT–OUT PROCEDURES FOR SUBSCRIBERS; 3
(III) THE AMOUNT OF BILL S AVINGS FOR LOW – TO 4
MODERATE–INCOME SUBSCRIBERS; 5
(IV) THE ROLE OF ANY OTHER STATE OR LOCAL AGENCY IN THE 6
AUTOMATIC ENROLLMENT PROCESS; 7
(V) THE AMOUNT OF ENERGY GENERATED BY A COMMU NITY 8
SOLAR PROJECT THAT S HOULD BE DEDICATED T O LOW – TO MODERATE –INCOME 9
SUBSCRIBERS; AND 10
(VI) THE IMPACT TO RATEPAYERS THAT DO NOT PARTICIPATE IN 11
THE AUTOMATIC ENROLLMENT PROCESS. 12
(c) On or before [July 1, 2026 ] DECEMBER 1, 2026, the Public Service 13
Commission shall report to the Governor and, in accordance with § 2 –1257 of the State 14
Government Article, the General Assembly on the results of the study. 15
Chapter 624 of the Acts of 2025 16
SECTION 4. AND BE IT FURTHER ENACTED, That: 17
(a) The Public Service Commission shall conduct a study on the feasibility of and 18
technical barriers to establishing: 19
(1) within the Commission a community solar automatic enrollment 20
program for local jurisdictions; AND 21
(2) IN CONSULTATION WITH THE DEPARTMENT OF HUMAN 22
SERVICES, AN AUTOMATIC COMMUNITY SOLAR ENROLLMENT PROCESS TO PROVIDE 23
BILL CREDITS FOR LOW – TO MODERATE –INCOME SUBSCRIBERS T HROUGH THE 24
OFFICE OF HOME ENERGY PROGRAMS IN THE DEPARTMENT. 25
(b) In conducting the study under subsection (a) of this [section,] SECTION: 26
(1) FOR AN AUTOMATIC ENROLLMENT PROGRAM UNDER SUBSECTION 27
(A)(1) OF THIS SECTION, the PUBLIC SERVICE Commission shall consider: 28
[(1)] (I) how [low–to–moderate income] LOW– TO MODERATE–INCOME 29
subscribers would be subscribed under the program; 30
HOUSE BILL 1532 225
[(2)] (II) whether subscribers automatically enrolled in the program 1
should receive a bill credit; 2
[(3)] (III) how to ensure that local jurisdictions comply with all parameters 3
of the program; and 4
[(4)] (IV) any necessary notification requirements and consumer 5
protections that the program should have; AND 6
(2) FOR THE AUTOMATIC EN ROLLMENT PROCESS UNDER 7
SUBSECTION (A)(2) OF THIS SECTION , THE PUBLIC SERVICE COMMISSION, IN 8
CONSULTATION WITH THE DEPARTMENT OF HUMAN SERVICES, SHALL CONSIDER: 9
(I) ELIGIBILITY CRITERIA FOR LOW – TO MODERATE –INCOME 10
SUBSCRIBERS; 11
(II) OPT–OUT PROCEDURES FOR SUBSCRIBERS; 12
(III) THE AMOUNT OF BILL S AVINGS FOR LOW – TO 13
MODERATE–INCOME SUBSCRIBERS; 14
(IV) THE ROLE OF ANY OTHER STATE OR LOCAL AGENCY IN THE 15
AUTOMATIC ENROLLMENT PROCESS; 16
(V) THE AMOUNT OF ENERGY GENERATED BY A COMMU NITY 17
SOLAR PROJECT THAT S HOULD BE DE DICATED TO LOW – TO MODERATE –INCOME 18
SUBSCRIBERS; AND 19
(VI) THE IMPACT TO RATEPAYERS THAT DO NOT PARTICIPATE IN 20
THE AUTOMATIC ENROLLMENT PROCESS. 21
(c) On or before [July 1, 2026 ] DECEMBER 1, 2026, the Public Service 22
Commission shall report to the Govern or and, in accordance with § 2 –1257 of the State 23
Government Article, the General Assembly on the results of the study. 24
SECTION 5. AND BE IT FURTHER ENACTED, That the requirements established 25
under § 7–207(b)(3)(iv), as enacted under Section 3 of this Act, apply to an application for 26
a certificate of public convenience and necessity submitted on or after July 1, 2026, and 27
may not be construed to apply to a certificate of public convenience and necessity submitted 28
before July 1, 2026. 29
SECTION 6. AND BE IT FURTHER ENACTED, That: 30
226 HOUSE BILL 1532
(a) (1) In this section the following words have the meanings indicated. 1
(2) “Eligible customer–generator” has the meaning stated in § 7–306 of the 2
Public Utilities Article. 3
(3) “Net energy metering” has the meaning stated in § 7–306 of the Public 4
Utilities Article. 5
(b) (1) The Public Service Commission shall conduct a proceeding explor ing 6
the development and implementation of a successor program to the net energy metering 7
program under § 7–306 of the Public Utilities Article. 8
(2) In conducting the proceeding, the Public Service Commission shall 9
accept input from: 10
(i) utility companies; 11
(ii) owners and developers of net metered projects, including projects 12
that are: 13
1. residential behind–the–meter; 14
2. commercial behind–the–meter; and 15
3. front–of–the–meter; 16
(iii) renewable energy industry experts, including representatives 17
from the solar energy industry; 18
(iv) consumer advocates; and 19
(v) other stakeholders. 20
(c) On or before December 15, 2026, the Public Service Commission shall submit 21
a report on the proceeding held under subsection (b) of this section to the Governor and, in 22
accordance with § 2–1257 of the State Government Article, the General Assembly. 23
(d) The report shall include: 24
(1) recommendations for a successor program to the net energy metering 25
program under § 7–306 of the Public Utilities Article that: 26
(i) incentivizes the development of distributed generation; 27
(ii) minimizes ratepayer costs in the short term and in the long term; 28
and 29
HOUSE BILL 1532 227
(iii) balances, on a statewide basis and across technologies and 1
industry sectors participating in net energy metering: 2
1. fair compensation for energy exports; 3
2. the benefits of an eligible customer –generator’s or 4
facility’s reduced load on the electric grid against: 5
A. the needs of the grid; 6
B. ratepayer costs and benefits; and 7
C. implications of the reduced load on energy equity, 8
including any disparities in the amount paid for grid maintenance by eligible 9
customer–generator and distributed generation owners in comparison to other retail 10
customers; 11
(2) recommendations for any legislative changes necessary to implement 12
the successor program; and 13
(3) the terms under which existing eligible customer–generators, including 14
community solar projects and subscribers under § 7 –306.2 of the Public Utilities Articl e 15
and aggregated net energy metered projects and customers under § 7 –306.3 of the Public 16
Utilities Article may remain eligible for net energy metering under § 7 –306 of the Public 17
Utilities Article, including: 18
(i) the length of time after the successor program is implemented 19
that an existing eligible customer –generator may remain eligible for net energy metering 20
under § 7–306 of the Public Utilities Article; and 21
(ii) conditions under which a net energy metered system may be 22
considered ineligible for net energy metering under § 7–306 of the Public Utilities Article; 23
and 24
(iii) requirements for decommissioning systems that are net energy 25
metered under § 7–306 of the Public Utilities Article; and 26
(4) any administrative concerns with transitioning t o the successor 27
program on July 1, 2027, and whether those concerns may cause a delay in implementation. 28
SECTION 7. AND BE IT FURTHER ENACTED, That: 29
(a) It is the intent of the General Assembly that the Public Service Commission, 30
in consultation with electric companies, work to resolve any administrative and technical 31
issues in order to provide rate relief to all residential electric customers, including residents 32
of apartments, condominiums, and other multi –occupancy residences, in accordance with 33
this section. 34
228 HOUSE BILL 1532
(b) (1) Notwithstanding any other provision of law, from the alternative 1
compliance fees paid into the Maryland Strategic Energy Investment Fund in accordance 2
with § 7 –705 of the Public Utilities Article, $100,000,000 shall be used to provide grant 3
awards to electric companies to be refunded or credited to residential electric customers to 4
offset any surcharges imposed as a result of the operating costs of the programs and services 5
under Title 7, Subtitle 2, Part II of the Public Utilities Arti cle in calendar year 2027 in 6
accordance with subsection (c) of this section. 7
(2) The Governor may transfer by budget amendment the funds described 8
in paragraph (1) of this subsection to the Public Service Commission to be awarded to 9
electric companies. 10
(c) Subject to subsection (d) of this section, the funds described in subsection 11
(b)(1) of this section shall be distributed: 12
(1) in accordance with § 9 –20B–05(f)(4) of the State Government Article, 13
as enacted by Section 4 of this Act; and 14
(2) in equal monthly amounts during the calendar year 2027. 15
(d) (1) To the greatest extent practicable the Public Service Commission, in 16
consultation with each electric company that collects a surcharge under § 7 –222(d) of the 17
Public Utilities Article, shall determine: 18
(i) the commercial customers of each electric company that use a 19
master meter to allocate costs of retail electric service to the residents of apartments, 20
condominiums, and other multi–occupancy residences; and 21
(ii) the estimated energy use by the commercial customers identified 22
under item (i) of this paragraph. 23
(2) If the Public Service Commission is able to determine, with a 24
reasonable degree of certainty, the commercial customer information specified in 25
paragraph (1) of this subsection, the Commission may require that a pro rata share of the 26
funds described in subsection (b)(1) of this section be provided as grants to electric 27
companies to be refunded or credited to commercial customers that use a master meter to 28
allocate costs of retail electric service to residents of apartment houses, condominiums, or 29
other multi–occupancy residences. 30
(3) A commercial customer that receives funding under this subsection: 31
(i) shall refund or credit each residential dwelling unit with its pro 32
rata share of the funding provided under paragraph (2) of this subsection; 33
(ii) may not provide a refund or credit to any person known to be 34
using electric service for a commercial purpose; 35
HOUSE BILL 1532 229
(iii) may retain up to 3% of the credited amount for admini strative 1
expenses; and 2
(iv) if the commercial customer received the funding in error, shall 3
refund the funding to the electric company for redistribution. 4
(4) The Public Service Commission and each electric company shall be held 5
harmless for any fai lure by a commercial customer that receives funding under this 6
subsection to use the funding as required under paragraph (3) of this subsection. 7
(5) If the Public Service Commission is unable to determine, with a 8
reasonable degree of certainty, the commercial customer information specified in 9
paragraph (1) of this subsection or determines that providing funding to commercial 10
customers in accordance with paragraph (2) of this subsection is not in the public interest, 11
the Commission, on or before December 1, 2026: 12
(i) may direct electric companies to refund or credit only those 13
residential customers taking service under a residential tariff; and 14
(ii) shall, in accordance with § 2 –1257 of the State Government 15
Article, report to the General Assembly, the Senate Committee on Education, Energy, and 16
the Environment, and the House Environment and Transportation Committee on the 17
reasoning for the Commission’s decision to direct electric companies to refund or credit 18
residential customers in accordance with item (i) of this paragraph. 19
SECTION 8. AND BE IT FURTHER ENACTED, That: 20
(a) (1) The Public Service Commission shall issue a request for information on 21
the use of a third –party, single –implementer program for the administration of the 22
programs and services under Title 7, Subtitle 2, Part II of the Public Utilities Article. 23
(2) The request for information shall seek: 24
(i) determinations of what effect the use of a single, third –party 25
administrator would have on costs; 26
(ii) identification of technical and logistical barriers to transitioning 27
to a single, third–party administrator; and 28
(iii) an analysis of the advantages and disadvantages of a private, 29
third–party administrator as opposed to a State administrator. 30
(3) The Public Service Commission may conduct research and produce a 31
report independent of, and in order to supplement any information received through, the 32
request for information under this subsection. 33
230 HOUSE BILL 1532
(4) The Public Service Commission shall require that responses to the 1
request for information be received not later than July 1, 2027. 2
(b) (1) As soon as practicable after receiving the information requested in 3
subsection (a) of this section, the Public Service Commission shall issue a request for 4
proposals for a third –party administrator for the programs and services under Title 7, 5
Subtitle 2, Part II of the Public Utilities Article. 6
(2) The request for proposals shall specify that responses to the request 7
should minimize short–term and long–term costs for utility ratepayers. 8
(c) (1) Except as provided in paragraph (2) of this subsection, on or before June 9
1, 2028, the Public Service Commission shall select, through the request for proposals 10
process initiated under subsection (b) of this section, a third –party administrator for the 11
administration of the programs and services under Title 7, Subtitle 2, Part II of the Public 12
Utilities Article beginning with the 3–year program cycle starting in 2030. 13
(2) (i) The Public Service Commission may decline to select a 14
third–party administrator if the Public Service Commission determines that the use of a 15
third–party administrator would not be cost–effective. 16
(ii) The Public Service Commission shall notify the General 17
Assembly of a decision to decline to select a third –party administrator within 5 days after 18
making the decision. 19
SECTION 9. AND BE IT FURTHER ENACTED, That: 20
(a) The Power Plant Research Program, in consultation with the Department of 21
the Environment and the Maryland Energy Administration, shall conduct a stud y to 22
identify ways to streamline the permitting process for energy development in the State. 23
(b) In conducting the study under subsection (a) of this section, the Power Plant 24
Research Program shall: 25
(1) identify up to 50 priority energy sites suitable for new or expanded 26
generating stations or energy storage devices, including: 27
(i) brownfields; 28
(ii) industrial sites surrounded by areas with low –population 29
density; and 30
(iii) sites with old or decommissioned generating units that may be 31
repowered or repurposed, with special consideration given to sites with surplus 32
interconnection capacity; 33
HOUSE BILL 1532 231
(2) identify current bottlenecks and barriers in the State that extend State 1
and local permitting timelines; and 2
(3) develop recommendations on what a State–level zoning or permitting 3
structure should look like in order to promote fast –tracked development at the priority 4
energy sites identified in item (1) of this subsection. 5
(c) On or before December 31, 2026, the Program shall report to the Governo r 6
and, in accordance with § 2 –1257 of the State Government Article, the General Assembly 7
on the results of the study. 8
SECTION 10. AND BE IT FURTHER ENACTED, That all employees who are 9
transferred to the Department of Human Services as a result of this Act shall be transferred 10
without diminution of their rights, benefits, employment, or retirement status. 11
SECTION 11. AND BE IT FURTHER ENACTED, That the publisher of the 12
Annotated Code of Maryland, in consultation with and subject to the approval of the 13
Department of Legislative Services, shall correct, with no further action required by the 14
General Assembly, cross –references and terminology rendered incorrect by this Act. The 15
publisher shall adequately describe any correction that is made in an editor’s note following 16
the section affected. 17
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 18
That the Laws of Maryland read as follows: 19
Article – Public Utilities 20
4–212. 21
(c) (1) (i) On or before September 1, 2026, each investor –owned electric 22
company and each electric cooperative shall submit to the Commission for approval a 23
specific rate schedule for large load customers that accomplishes the intent of subsection 24
(b) of this section. 25
(ii) Each municipal electric utility that receives an application for 26
retail electric service from a large load customer shall submit to the Commission for 27
approval a specific rate schedule for large load customers. 28
(2) (i) Service under a specific rate schedule shall be available to large 29
load customers that will use, within the initial contract term: 30
1. a monthly maximum demand of more than [100] 25 31
megawatts at a single location; or 32
2. an aggregated contract capacity in the electric company’s 33
service territory of more than 100 megawatts. 34
232 HOUSE BILL 1532
(ii) Except as provided in subparagraph (iii) of this paragraph, large 1
load customers that qualify for a specific rate schedule after the effective date of that 2
schedule: 3
1. shall take service under the specific rate schedule; and 4
2. may not be allowed to take service under any other 5
existing schedule. 6
(iii) A specific rate schedule does not apply to the facility of an 7
existing large load customer that has signed a service agreement before the effective date 8
of the schedule if: 9
1. the large load customer’s existing load does not expand by 10
more than 25 megawatts at that facility under the existing service agreement; or 11
2. the large load customer does not sign a new service 12
agreement to expand the facility’s load by more than 25 megawa tts above the contract 13
capacity of the existing service agreement. 14
4–213. 15
(a) This section applies only to a public service company that is an electric 16
company, a gas company, or a combination gas and electric company. 17
(b) Unless otherwise authorized by law, the Commission may approve the use of 18
a multiyear rate plan for distribution base rates only if the plan: 19
(1) demonstrates the customer benefits of the investment; and 20
(2) does not allow for: 21
(I) the public service company to file for reconciliation of cost or 22
revenue variances of the approved revenue component used by the Commission to establish 23
just and reasonable rates IF THE RECONCILIATIO N WOULD RESULT IN AD DITIONAL 24
CUSTOMER CHARGES; OR 25
(II) THE USE OF COST –SHARING MECHANISMS T HAT WOULD 26
RESULT IN ADDITIONAL CUSTOMER CHARGES ABO VE THE APPROVED REVE NUE 27
COMPONENT USED BY TH E COMMISSION TO ESTABLI SH JUST AND REASONAB LE 28
RATES. 29
(c) A public service company that files or has filed an application for a multiyear 30
rate plan may not subsequently file for reconciliation of cost or revenue variances [of] THAT 31
WOULD RESULT IN ADDITIONAL CUSTOMER CHARGES DUE TO THE PUBLIC SERVICE 32
COMPANY SPEN DING MORE THAN the approved revenue component used by the 33
HOUSE BILL 1532 233
Commission to establish the multiyear rates unless the filing for reconciliation was made 1
on or before January 1, 2025. 2
(D) THE COMMISSION MAY REQUIR E A PUBLIC SERVICE C OMPANY TO 3
INCLUDE A RECONCILIATION PROCEDURE IN ITS MULTIYEAR RATE PLAN TO REFUND 4
CUSTOMERS THE DIFFERENCE BETWEEN: 5
(1) THE PUBLIC SERVICE C OMPANY’S FORECAST REVENUE 6
REQUIREMENT; AND 7
(2) THE PUBLIC SERVICE C OMPANY’S ACTUAL REVENUE 8
REQUIREMENT DURING THE TERM OF THE MULTIYEAR RATE PLAN. 9
7–222. 10
(c) (5) The information provided to the Commission under paragraph (4) of 11
this subsection shall be based on a plan to offer programs and services to customers that 12
complies with the requirements of an electric company subject to subsect ion (a) of this 13
section for the [3–year] 2–YEAR program cycle starting January 1, 2027. 14
7–223. 15
(a) On or before January 1, 2025, [and] on or before January 1 , 2027, ON OR 16
BEFORE JANUARY 1, 2029, AND ON OR BEFORE JANUARY 1 every 3 years, starting in 17
[2027] 2029, the Commission shall, by regulation or order, require each electric company 18
and each gas company subject to § 7–222(a) of this subtitle to develop and implement a plan 19
that: 20
(1) covers appropriate ratepayer classes; 21
(2) starting in [2027] 2029, covers a 3–year program cycle; and 22
(3) achieves the greenhouse gas emissions reduction target established for 23
the electric company or gas company under subsection (b) of this section through 24
cost–effective energy efficiency and conservation programs and services, demand response 25
programs and services, and beneficial electrification programs and services. 26
(b) (1) For [2025 and 2026, ] 2025, 2026, 2027, AND 2028, and for each 27
3–year program cycle starting in [2027] 2029, the Commission shall establish a greenhouse 28
gas emissions reduction target for each electric company and each gas company subject to 29
§ 7–222(a) of this subtitle as provided in this subsection. 30
(4) By the dates specified in § 7 –225(a) of this subtitle, the Commission 31
shall establish greenhouse gas emissions reduction targets for each electric company plan 32
that will achieve at least the greenhouse gas emissions reduction equivalent, measured on 33
234 HOUSE BILL 1532
a lifecycle basis using the emission intensities under paragraph (2) of this subsec tion, of 1
the following annual electricity savings percentages, calculated as a percentage of the 2
electric company’s 2016 weather–normalized gross retail sales and electricity losses: 3
(i) 2.0% in 2024; 4
(ii) 2.25% each year in 2025 [and 2026; and] THROUGH 2028; AND 5
(iii) 2.5% each year in [2027] 2029 and after. 6
7–224. 7
(a) (1) Beginning January 1, 2025, [and] on or before January 1, 2027, ON OR 8
BEFORE JANUARY 1, 2029, AND ON OR BEFORE JANUARY 1 every 3 years, starting in 9
[2027] 2029, the Depa rtment shall procure or provide to low –income individuals energy 10
efficiency and conservation programs and services, demand response programs and 11
services, and beneficial electrification programs and services that achieve the greenhouse 12
gas emissions reduction targets established for the Department under paragraph (2) of this 13
subsection. 14
(d) If directed by the Commission in 2024, [and] on or before September 1, 2026, 15
ON OR BEFORE SEPTEMBER 1, 2028, AND ON OR BEFORE SEPTEMBER 1 every 3 years, 16
starting in [2026] 2028, the Department shall submit its plans for any programs or services 17
procured or provided under subsection (a) of this section to the Commission for review and 18
approval under § 7–225 of this subtitle. 19
7–225. 20
(b) (1) (i) If directed by the Commission in 2024, [and] on or before July 1, 21
2026, ON OR BEFORE JULY 1, 2028, AND ON OR BEFORE JULY 1 every 3 years, starting 22
in [2026] 2028, each electric company and each gas company subject to § 7 –222(a) of this 23
subtitle that submit ted a plan for achieving electricity savings and demand reduction 24
targets to the Commission before July 1, 2024, and the Department, shall consult with the 25
technical staff of the Commission, the Office of People’s Counsel, the Maryland Energy 26
Administration, and the Department of the Environment regarding the design and 27
adequacy of its plans for achieving the greenhouse gas emissions reduction targets 28
established by the Commission under § 7 –223(b) of this subtitle and specified in § 29
7–224(a)(2) of this subtitle. 30
(ii) On or before October 1, 2024, [and] on or before July 1, 2026, ON 31
OR BEFORE JULY 1, 2028, AND ON OR BEFORE JULY 1 every 3 years, starting in [2026] 32
2028, each electric company and each gas company subject to § 7 –222(a) of this subtitle 33
that did not submit a plan for achieving electricity savings and demand reduction targets 34
to the Commission before July 1, 2024, shall comply with the consulting requirements 35
under subparagraph (i) of this paragraph. 36
HOUSE BILL 1532 235
(2) Each electric company and each gas c ompany subject to § 7 –222(a) of 1
this subtitle shall provide the technical staff of the Commission, the Office of People’s 2
Counsel, the Maryland Energy Administration, and the Department of the Environment 3
with any additional information regarding its plan, as requested. 4
(c) (1) (i) If directed by the Commission in 2024, and on or before 5
September 1 , 2026, ON OR BEFORE SEPTEMBER 1, 2028, AND ON OR BEFORE 6
SEPTEMBER 1 every 3 years, starting in [2026] 2028, each electric company and each gas 7
company subject to § 7–222(a) of this subtitle that submitted a plan for achieving electricity 8
savings and demand reduction targets to the Commission before July 1, 2024, and the 9
Department, shall submit its plan to the Commission. 10
(ii) On or before December 1, 2024, [and] on or before September 1, 11
2026, ON OR BEFORE SEPTEMBER 1, 2028, AND ON OR BEFORE SEPTEMBER 1 every 12
3 years, starting in [2026] 2028, each electric company and each gas company that did not 13
submit a plan for achieving electricity savings and demand reduction targets to the 14
Commission before July 1, 2024, shall submit its plan to the Commission. 15
(2) (I) [Each] EXCEPT AS PROVIDED IN SUBPARAGRAPH (II) OF 16
THIS PARAGRAPH , EACH plan shall detail a proposal for achieving greenhouse gas 17
emissions reduction targets for 3 subsequent calendar years. 18
(II) THE PLAN SUBMITTED IN 2026 SHALL DETAIL A PROPOSAL 19
FOR ACHIEVING GREENH OUSE GAS EMISSIONS R EDUCTION TARGETS FOR THE 2 20
SUBSEQUENT CALENDAR YEARS. 21
(3) (i) Each plan shall: 22
1. include: 23
A. a description of the proposed programs and services; 24
B. anticipated costs; 25
C. projected benefits, including greenhouse gas emissions 26
reductions, electricity savings, and gas savings; and 27
D. any other information requested by the Commission; and 28
2. address residential, commercial, and industrial sectors as 29
appropriate, including low–income communities. 30
(ii) A plan of the Department shall include: 31
236 HOUSE BILL 1532
1. a definition of “low –income individual” to be used in the 1
procurement or provision of energy efficiency, conservation, and greenhouse gas emissions 2
reduction programs and services; 3
2. a description of the steps proposed to ensure insulation 4
materials meet the requirements under § 7–224 of this subtitle; and 5
3. a proposed average lifetime measure threshold that: 6
A. encourages the delivery of insulation and weatherization 7
measures; and 8
B. is developed through a stakeholder engagement process. 9
(iii) A plan of an electric company shall include the provision or 10
procurement of programs and services for residential beneficial electrification. 11
(d) (1) The Commission shall review the plan of each electric company, each 12
gas company, and the Department to determine whether the plan is adequate and 13
cost–effective in achieving the greenhouse gas emissions reduction targets established by 14
the Commission under §§ 7–223(b) and 7–224(a)(2) of this subtitle. 15
(2) The Commission shall consider any written findings provided by the 16
Maryland Energy Administration, the Department of the Environment, and the Office of 17
People’s Counsel regarding the design and adequacy of the plan. 18
(3) Subject to paragraph (4) of this subsection, in approving, modifying, or 19
denying the plan of an electric company or a gas company, the Commission shall consider: 20
(i) the cost –effectiveness of the residential, commercial, and 21
industrial sector subportfolios by using: 22
1. the primary State jurisdiction–specific test, as developed, 23
updated, or approved by the Commission, to determine the cost–effectiveness of a program 24
or service prospectively, including consideration of: 25
A. participant nonenergy benefits; 26
B. utility nonenergy benefits; and 27
C. societal nonenergy benefits; and 28
2. a total resource cost test to compare the electricity savings 29
and demand reduction targets of the program or service with the results of similar 30
programs or services implemented in other jurisdictions, including: 31
A. participant nonenergy benefits; and 32
HOUSE BILL 1532 237
B. utility nonenergy benefits; 1
(ii) the impact on rates of each ratepayer class; 2
(iii) the impact on jobs; 3
(iv) the impact on the environment; and 4
(v) the impact on the greenhouse gas emissions reduction targets 5
specified in Title 2, Subtitle 12 of the Environment Article, established by the Commission 6
under §§ 7–223(b) and 7–224(a)(2) of this subtitle. 7
(4) Nonenergy benefits considered under paragraph (3) of this subsection 8
shall be quantifiable and directly related to a program or service. 9
(5) (i) In approving, modifying, or denying the plan of the Department, 10
the Commission shall consider: 11
1. subject to subparagraph (ii) of this paragraph, the 12
cost–effectiveness of the plan by using the primary State jurisdiction –specific test, as 13
developed, updated, or approved by the Commission; 14
2. the impact on rates of each ratepayer class; 15
3. the impact on jobs; 16
4. the impact on the environment; and 17
5. the impact on the greenhouse gas emissions targets 18
specified in Title 2, Subtitle 12 of the Environment Article, established by the Commission 19
under § 7–223(b) of this subtitle, and specified in § 7–224(a)(2) of this subtitle. 20
(ii) The programs and services offered by the Department are not 21
required to be cost–effective. 22
(6) THE COMMISSION MAY NOT AP PROVE A PLAN UNDER T HIS 23
SUBSECTION THAT INCL UDES A RESIDENTIAL S ECTOR SUBPROGRAM WIT H A 24
BENEFIT–TO–COST RATIO OF LESS T HAN 1.0 UNDER THE PRIMARY STATE 25
JURISDICTION–SPECIFIC TEST , AS DEVELOPED , UPDATED, OR APPROVED BY THE 26
COMMISSION. 27
7–1201. 28
(a) In this part the following words have the meanings indicated. 29
238 HOUSE BILL 1532
(g) “Large capacity energy resource” means a generating station or energy storage 1
device that[: 2
(1) on or before January 1, 2025: 3
(i) has applied to PJM for interconnection approval; or 4
(ii) has been approved by PJM for interconnection; and 5
(2)] has a capacity rating equal to or greater than 20 megawatts after 6
accounting for the effective load carrying capability. 7
7–1216. 8
(a) The Commission may not approve an application for a nuclear energy 9
generation project submitted under § 7–1212 of this subtitle unless: 10
(1) the project is connected to the electric system serving the State; 11
(2) over the duration of the proposed long –term pricing schedule, the 12
projected net rate impact for an average residential customer, based on annual 13
consumption of 12,000 kilowatt–hours and combined with the projected net rate impact of 14
other nuclear energy generation projects, does not exceed an amount determined by the 15
Commission; 16
(3) over the duration of the proposed long –term pricing schedule, the 17
projected net rate impact for all nonresidential customers, considered as a blended average 18
and combined with the projected net rate impact of other nuclear energy generation 19
projects, does not exceed a percentage determined by the Commission of nonresidential 20
customers’ total annual electric bills; and 21
(4) the price specified in the proposed long–term pricing schedule does not 22
exceed an amount determined by the Commission. 23
(b) When calculating the projected net average rate impacts for nuclear energy 24
generation projects under this section, the Commission shall [apply the same] CONSIDER 25
THE net long–term cost per megawatt –hour APPLIED to residential and nonresidential 26
customers. 27
7–1220. 28
(a) In this section, “zero–emission credit” means [the difference between the price 29
that a nuclear energy generating station with a long–term pricing schedule approved in an 30
order issued under § 7–1217 of this subtitle may receive on the wholesa le market and the 31
cost of constructing the nuclear energy generating station ] A CREDIT EQUAL TO TH E 32
ENVIRONMENTAL IMPACT OF 1 MEGAWATT–HOUR OF ELECTRICITY THAT IS 33
HOUSE BILL 1532 239
DERIVED FROM A NUCLE AR ENERGY GENERATING STATION APPROVED BY THE 1
COMMISSION UNDER § 7–1217 OF THIS SUBTITLE. 2
(b) The Commission shall adopt regulations that: 3
(1) establish the nuclear energy long –term pricing purchase obligation 4
sufficiently in advance to allow an electric company to reflect nuclear energy long –term 5
pricing costs as a nonbypa ssable surcharge that is added to the electric company’s base 6
distribution rate on customer bills; 7
(2) define rules that facilitate and ensure the secure and transparent 8
transfer of revenues and long–term pricing payments among parties; 9
(3) define th e terms and procedures of the nuclear energy long –term 10
pricing schedule obligations, including: 11
(i) establishing a formula and process to adjust the value of the 12
long–term pricing schedule every 2 years based on projected wholesale market prices 13
adjusted by the locational value and earning potential in the PJM region of the nuclear 14
energy generating station; and 15
(ii) establishing a per megawatt hour cap on any long –term pricing 16
schedule specified in an order issued under § 7–1217 of this subtitle; 17
(4) require the Commission to establish an escrow account; and 18
(5) to meet the total statewide long –term pricing purchase obligation for 19
all applications approved in an order issued under § 7 –1217 of this subtitle, require the 20
Commission to annu ally establish each electric company’s zero –emission credit purchase 21
obligation based on the most recent final electricity sales data as reported by PJM 22
Interconnection and measured at the customer’s meter in proportion to the electric 23
company’s share of statewide load. 24
(c) (1) Each electric company shall procure from the escrow account 25
established by regulation under this section a quantity of zero –emission credits equal to 26
the electric company’s respective percentage of retail electric sales each year. 27
(2) Subject to any escrow account reserve requirement the Commission 28
establishes, if there are insufficient zero –emission credits available to satisfy the electric 29
companies’ zero–emission credit purchase obligations, the overpayment shall be distributed 30
to electric companies to be refunded or credited to each distribution customer based on the 31
customer’s consumption of electricity supply that is subject to the renewable energy 32
portfolio standard. 33
(d) A debt, an obligation, or a liability of a nuclear energy generation project or of 34
an owner or operator of a nuclear energy generation project may not be considered a debt, 35
an obligation, or a liability of the State. 36
240 HOUSE BILL 1532
(E) (1) SUBJECT TO PARAGRAPH (2) OF THIS SUBSECTION , THE 1
COMMISSION MAY APPROV E AN INCRE ASE OF THE TOTAL COS T OF A NUCLEAR 2
ENERGY GENERATION PR OJECT UNDER A LONG –TERM PRICING PURCHAS E 3
OBLIGATION. 4
(2) THE TOTAL COST OF A N UCLEAR ENERGY GENERATION PROJECT 5
UNDER A LONG–TERM PRICING PURCHASE OBLIGATION MAY NOT BE INCREASED BY 6
MORE THAN 15% OF THE ORIGINAL COST. 7
SECTION 2. AND BE IT FURTHER ENACTED, That: 8
(a) (1) On or before July 1, 2026, the Public Service Commission shall issue a 9
request for information on the use of a third –party, single–implementer program for the 10
administration of the programs and services under Title 7, Subtitle 2, Part II of the Public 11
Utilities Article. 12
(2) The request for information shall seek: 13
(i) determinations of what effect the use of a single, third –party 14
administrator would have on costs; 15
(ii) identification of technical and logistical barriers to transitioning 16
to a single, third–party administrator; and 17
(iii) an analysis of the advantages and disadvantages of a private, 18
third–party administrator as opposed to a State administrator. 19
(3) The request for information shall specify a completion date of July 1, 20
2027. 21
(b) (1) Within 30 days after receiving the information requested in subsection 22
(a) of this section, the Public Service Commission shall issue a request for proposals for a 23
third–party administrator for the programs and services under Title 7, Subtitle 2, Part II 24
of the Public Utilities Article. 25
(2) The request for proposals shall specify that responses to the request 26
should minimize short–term and long–term costs for utility ratepayers. 27
(c) (1) Except as provided in paragraph (2) of this subsection, on or before June 28
1, 2028, the Public Service Commission shall select, through the request for proposals 29
process initiated under subsection (b) of this section, a third –party administrator for the 30
administration of the programs and services under Title 7, Subtitle 2, Part II of the Public 31
Utilities Article. 32
HOUSE BILL 1532 241
(2) (i) The Public Service Commission may decline to select a 1
third–party administrator if the Public Service Commission deter mines that the use of a 2
third–party administrator would not be cost effective. 3
(ii) The Public Service Commission shall notify the General 4
Assembly of a decision to decline to select a third –party administrator within 5 days after 5
making the decision. 6
SECTION 3. AND BE IT FURTHER ENACTED, That: 7
(a) The Power Plant Research Program, in consultation with the Department of 8
the Environment and the Maryland Energy Administration, shall conduct a study to 9
identify ways to streamline the permitting process for energy development in the State. 10
(b) In conducting the study under subsection (a) of this section, the Power Plant 11
Research Program shall: 12
(1) identify up to 50 priority energy sites suitable for new or expanded 13
generating stations or energy storage devices, including: 14
(i) brownfields; 15
(ii) industrial sites surrounded by areas with low –population 16
density; and 17
(iii) sites with old or decommissioned generating units that may be 18
repowered or repurposed, with special consideration given to sites with surplus 19
interconnection capacity; 20
(2) identify current bottlenecks and barriers in the State that extend State 21
and local permitting timelines; and 22
(3) develop recommendations on what a State –level zoning or permitting 23
structure should loo k like in order to promote fast –tracked development at the priority 24
energy sites identified in item (1) of this subsection. 25
(c) On or before December 31, 2026, the Program shall report to the Governor 26
and, in accordance with § 2 –1257 of the State Governm ent Article, the General Assembly 27
on the results of the study. 28
SECTION 4. AND BE IT FURTHER ENACTED, That this Act shall take effect June 29
1, 2026. 30
SECTION 12. AND BE IT FURTHER ENACTED, That Sections 1, 2, 3, 5, 10, and 31
11 of this Act shall take effect July 1, 2026. 32
242 HOUSE BILL 1532
SECTION 13. AND BE IT FURTHER ENACTED, That this Act is an emergency 1
measure, is necessary for the immediate preservation of the public health or safety, has 2
been passed by a yea and nay vote supported by three –fifths of all the members elected to 3
each of the two Houses of the General Assembly, and, except as provided in Section 12 of 4
this Act, shall take effect from the date it is enacted. 5
SECTION 22. AND BE IT FURTHER ENACTED, That Sections 1, 2, 3, 4, 6, 8, 19, 6
and 20 of this Act shall take effect July 1, 2026. 7
SECTION 23. AND BE IT FURTHER ENACTED, That this Act is an emergency 8
measure, is necessary for the immediate preservation of the public health or safety, has been 9
passed by a yea and nay vote supported by three–fifths of all the members elected to each of 10
the two Houses of the General Assembly, and, except as provided in Section 22 of this Act, 11
shall take effect from the date it is enacted. 12
Approved:
________________________________________________________________________________
Governor.
________________________________________________________________________________
Speaker of the House of Delegates.
________________________________________________________________________________
President of the Senate.