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

EXPLANATION: CAPITALS INDICATE MATTER ADDED TO EXISTING LAW.
[Brackets] indicate matter deleted from existing law.
*sb0386*

SENATE BILL 386
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By: The President (By Request – Administration) and Senators Augustine, Beidle,
Brooks, Charles, Harris, Hettleman, King, Lam, Lewis Young, Love, and
Zucker
Introduced and read first time: January 27, 2026
Assigned to: Education, Energy, and the Environment

A BILL ENTITLED

AN ACT concerning 1

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

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

BY repealing and reenacting, with amendments, 27
Article – Public Utilities 28
2 SENATE BILL 386

Section 7–103 and 7–207(b)(3) 1
Annotated Code of Maryland 2
(2025 Replacement Volume and 2025 Supplement) 3

BY repealing and reenacting, without amendments, 4
Article – Public Utilities 5
Section 7–207(b)(4) 6
Annotated Code of Maryland 7
(2025 Replacement Volume and 2025 Supplement) 8

BY adding to 9
Article – Public Utilities 10
Section 7–207(i) and 7–805 11
Annotated Code of Maryland 12
(2025 Replacement Volume and 2025 Supplement) 13

BY repealing and reenacting, with amendments, 14
Article – Public Utilities 15
Section 7–207(i) 16
Annotated Code of Maryland 17
(2025 Replacement Volume and 2025 Supplement) 18
(As enacted by Section 2 of this Act) 19

BY adding to 20
Article – State Government 21
Section 9–2018 and 9–20B–05(f)(14) and (i)(5) 22
Annotated Code of Maryland 23
(2021 Replacement Volume and 2025 Supplement) 24

BY repealing and reenacting, without amendments, 25
Article – State Government 26
Section 9–20B–05(a) and (i)(2) through (4) 27
Annotated Code of Maryland 28
(2021 Replacement Volume and 2025 Supplement) 29

BY repealing and reenacting, with amendments, 30
Article – State Government 31
Section 9–20B–05(f)(13) and (14) and (i)(1) 32
Annotated Code of Maryland 33
(2021 Replacement Volume and 2025 Supplement) 34

BY adding to 35
Article – Transportation 36
Section 8–311 37
Annotated Code of Maryland 38
(2020 Replacement Volume and 2025 Supplement) 39

SENATE BILL 386 3

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 1
That the Laws of Maryland read as follows: 2

Article – Public Utilities 3

7–103. 4

(a) An electric company incorporated in Maryland may: 5

(1) manufacture, sell, and furnish electric power in any municipal 6
corporation or county of the State; 7

(2) construct a power line to transmit power under, alon g, on, or over the 8
roadways or public ways of any municipal corporation or county of the State; and 9

(3) connect the power line from the place of supply to any other structure 10
or object. 11

(b) (1) An electric company must have the consent of the governing body of the 12
municipal corporation or county before laying or constructing any power line in accordance 13
with subsection (a) of this section. 14

(2) The governing body of the municipal corporation or county may adopt 15
reasonable regulations and conditions for the laying of a power line, including regulations 16
requiring the electric company to refill and repave any roadway or public way under which 17
the power line is laid. 18

(C) AN ELECTRIC COMPANY THAT OWNS OR OPERATE S A TRANSMISSION 19
LINE THAT IS DESIGNED TO CARRY A VOLTAGE IN E XCESS OF 69,000 VOLTS AND IS 20
LOCATED IN THE STATE SHALL PARTICIPATE AS A MEMBER IN A REGIONAL 21
TRANSMISSION ORGANIZATION. 22

7–207. 23

(b) (3) (i) Except as provided in paragraph (4) of this subsection, unless a 24
certificate of public convenience and necessity for the construction is first obtained from the 25
Commission, a person may not begin construction of an overhead transmission line that is 26
designed to carry a voltage in excess of 69,000 volts or exercise a right of condemnation 27
with the construction. 28

(ii) For construction related to an existing overhead transmission 29
line, the Commission may waive the requirement in subparagraph (i) of this paragraph for 30
good cause. 31

(iii) Notwithstanding subparagraph (i) of this paragraph and subject 32
to subparagraph [(iv)] (V) of this paragraph, the Commission may issue a certificate of 33
public convenience and necessity for the construction of an overhead transmission line only 34
4 SENATE BILL 386

if the applicant for the certificate of public convenience and necessity: 1

1. is an electric company; or 2

2. is or, on the start of commercial operation of the overhead 3
transmission line, will be subject to regulation as a public utility by an officer or an agency 4
of the United States. 5

(iv) A PERSON APPLYING FOR A CERTIFICATE OF PUB LIC 6
CONVENIENCE AND NECESSITY FOR THE CONSTRUCTION OF A TRANSMISSION LINE 7
SHALL INCLUDE WITH THE APPLICATION: 8

1. AT LEAST ONE ALTERNA TIVE PROPOSAL THAT USES 9
ADVANCED TRANSMISSION TECHNOLOGIES, AS DEFINED IN § 7–805 OF THIS TITLE, 10
IN WHOLE OR IN PART , TO ADDRESS THE SAME NEED MORE EFFICIENTLY OR 11
COST–EFFECTIVELY THAN THE PRIMARY PROPOSED PROJECT; AND 12

2. AS DIRECTED BY THE COMMISSION, A DETAILED , 13
WRITTEN EXPLANATION COMPARING THE COST –EFFECTIVENESS, TECHNICAL 14
FEASIBILITY, AND SYSTEM BENEFITS OF EACH ALTERNATIVE PROPOSAL COMPARED 15
WITH THOSE OF THE PRIMARY PROPOSED PROJECT. 16

(V) The Commission may not issue a certificate of public convenience 17
and necessity for the construction of an overhead transmission line in the electric 18
distribution service territory of an electric company to an applicant other than an electric 19
company if: 20

1. the overhead transmi ssion line is to be located solely 21
within the electric distribution service territory of that electric company; and 22

2. the cost of the overhead transmission line is to be paid 23
solely by that electric company and its ratepayers. 24

[(v)] (VI) 1. This subparagraph applies to the construction of an 25
overhead transmission line for which a certificate of public convenience and necessity is 26
required under this section. 27

2. On issuance of a certificate of public convenience and 28
necessity for the construct ion of an overhead transmission line, a person may acquire by 29
condemnation, in accordance with Title 12 of the Real Property Article, any property or 30
right necessary for the construction or maintenance of the transmission line. 31

(4) (i) Except as provide d in subparagraph (ii) of this paragraph, for 32
construction related to an existing overhead transmission line designed to carry a voltage 33
in excess of 69,000 volts, the Commission shall waive the requirement to obtain a certificate 34
of public convenience and necessity if the Commission finds that the construction does not: 35
SENATE BILL 386 5

1. require the person to obtain new real property or 1
additional rights–of–way through eminent domain; or 2

2. require larger or higher structures to accommodate: 3

A. increased voltage; or 4

B. larger conductors. 5

(ii) 1. For construction related to an existing overhead 6
transmission line, including repairs, that is necessary to avoid an imminent safety hazard 7
or reliability risk, a person may undertake the necessary construction. 8

2. Within 30 days after construction is completed under 9
subsubparagraph 1 of this subparagraph, a person shall file a report with the Commission 10
describing the work that was completed. 11

7–805. 12

(A) (1) IN THIS SECTION THE F OLLOWING WORDS HAVE THE MEANI NGS 13
INDICATED. 14

(2) “ADVANCED POWER FLOW CONTROL” MEANS TECHNOLOGIES 15
THAT MODULATE CIRCUI T IMPEDANCE OR OTHER ELECTRICAL PROPERTIE S TO 16
REROUTE POWER FLOWS TO TRANSMISSION LINES WITH AVAILABLE CAPACITY. 17

(3) “ADVANCED TRANSMISSION TECHNOLOGY” MEANS: 18

(I) GRID–ENHANCING TECHNOLOGIES; AND 19

(II) HIGH–PERFORMANCE CONDUCTORS. 20

(4) “DYNAMIC LINE RATING” MEANS A SYSTEM THAT USES 21
REAL–TIME OR FORECAST WEA THER AND OPERATING C ONDITIONS, INCLUDING 22
WIND SPEED AND DIREC TION, TO DETERMINE THE MAX IMUM CAPACITY OF A 23
TRANSMISSION LINE. 24

(5) “GRID–ENHANCING TECHNOLOGY” MEANS HARDWARE OR 25
SOFTWARE THAT INCREA SES THE CAPACITY , EFFICIENCY, OR RELIABILITY OF 26
EXISTING DISTRIBUTION OR TRANSMISSION LINES, INCLUDING: 27

(I) DYNAMIC LINE RATINGS; 28

(II) ADVANCED POWER FLOW CONTROL; AND 29
6 SENATE BILL 386

(III) TOPOLOGY OPTIMIZATION. 1

(6) “HIGH PERFORMANCE CONDUCTORS” MEANS CONDUCTORS, 2
INCLUDING CARBON FIB ER OR COMPOSITE CORE CONDUCTORS AND 3
SUPERCONDUCTORS, THAT, COMPARED TO TRADITIONAL ALUMINUM–CONDUCTOR 4
STEEL–REINFORCED CONDUCTORS: 5

(I) HAVE A SIMILAR DIAMETER AND WEIGHT; AND 6

(II) 1. HAVE A DIRECT CURREN T ELECTRICAL RESISTA NCE 7
THAT IS AT LEAST 10% LESS; 8

2. INCREASE THE POTENTI AL ENERGY CARRYING 9
CAPACITY BY AT LEAST 75%; OR 10

3. HAVE A COEFFICIENT OF THERMAL EXPANSION THAT 11
IS AT LEAST 30% LESS. 12

(7) “TOPOLOGY OPTIMIZATION” MEANS SOFTWARE THAT IDENTIFIES 13
SWITCHING CONFIGURAT IONS TO REROUTE ELEC TRICITY AND ALLEVIAT E 14
TRANSMISSION CONSTRAINTS. 15

(8) “TRANSMISSION UTILITY” MEANS AN OWNER OR OPERATOR OF A 16
TRANSMISSION LINE THAT IS DESIGNED TO CARRY A VOLTAGE IN EXCESS OF 69,000 17
VOLTS AND IS LOCATED IN THE STATE. 18

(B) ON OR BEFORE JULY 1, 2027, AND JULY 1 EVERY 3 YEARS THEREAFTER, 19
EACH TRANSMISSION UTI LITY SHALL SUBMIT TO THE COMMISSION AN ADVANCED 20
TRANSMISSION TECHNOLOGY IMPLEMENTATION REPORT THAT IS PREPARED BY A 21
THIRD PARTY SELECTED BY THE COMMISSION. 22

(C) THE REPORT SHALL: 23

(1) EVALUATE THE POTENTIAL USE OF AND INVESTMENT IN 24
ADVANCED TRANSMISSION TECHNOLOGIES BY THE TRANSMISSION UTILITY OVER 25
THE NEXT 5 YEARS AND ASSESS HOW THESE TEC HNOLOGIES COULD BE DEPLOYED 26
AT ONE OR MORE OF TH E TRANSMISSION UTILI TY’S TRANSMISSION LINES IN THE 27
STATE TO ENHANCE THE SAFETY, RELIABILITY, EFFICIENCY, OR 28
COST–EFFECTIVENESS OF THE DISTRIBUTION OR TRANSMISSION SYSTEM; 29

(2) EXPLAIN HOW THE DEPLOYMENT OF ADVANCED TRANSMIS SION 30
TECHNOLOGIES WOULD ACHIEVE: 31
SENATE BILL 386 7

(I) REDUCED COSTS; 1

(II) INCREASED TRANSMISSION CAPACITY; 2

(III) REDUCED TRANSMISSION CONGESTION; 3

(IV) ENHANCED ADOPTION OF OR REDUC ED CURTAILMENT OF 4
RENEWABLE RESOURCES; 5

(V) INCREASED RELIABILITY; AND 6

(VI) INCREASED CAPACITY FOR THE CONNECTION OF NEW 7
GENERATION RESOURCES , FOCUSING ON RESOURCES NEEDED TO MEET THE 8
STATE’S RENEWABLE ENERGY PORTFOLIO STANDARD GOALS; 9

(3) IDENTIFY ADVANCED TRANSMISSION TECHNOLOGIES THAT WERE 10
CONSIDERED BUT NOT SELECTED WHEN EVALUATING THE TRANSMISSION 11
ENHANCEMENTS PLANNED TO MEET IDENTIFIED T RANSMISSION NEEDS FOR THE 12
SUBSEQUENT 5 YEARS AND THE REASONS THOSE ADVANCED TRANSMISSION 13
TECHNOLOGIES WERE NOT SELECTED; 14

(4) INCLUDE A BENEFIT AND COST EVA LUATION COMPARING 15
TRADITIONAL TRANSMIS SION INVESTMENTS WIT H ADVANCED TRANSMISSION 16
TECHNOLOGIES FOR ALL PROJECTS CONSIDERED; AND 17

(5) DESCRIBE THE CURRENT LINE RAT ING METHODOLOGY USED, 18
INCLUDING ANY RELIANCE ON STATIC RATINGS OR SEASONAL ASSUMPTIONS. 19

(D) THE COMMISSION MAY DEVELOP PERFORMANCE–BASED INCENTIVES 20
FOR THE DEPLOYMENT A ND OPERATION OF ADVANCED TRANSMISSION 21
TECHNOLOGIES, INCLUDING: 22

(1) EARNINGS ADJUSTMENT MECHANISMS; 23

(2) ACCELERATED COST RECOVERY; AND 24

(3) SHARED SAVINGS MECHANISMS. 25

Article – State Government 26

9–2018. 27

(A) IN THIS SECTION , “PROGRAM” MEANS THE SOLAR AND ENERGY 28
8 SENATE BILL 386

STORAGE MARKET STABILIZATION PROGRAM. 1

(B) THERE IS A SOLAR AND ENERGY STORAGE MARKET STABILIZATION 2
PROGRAM IN THE ADMINISTRATION. 3

(C) THE PURPOSE OF THE PROGRAM IS TO PROVIDE FINANCIAL 4
ASSISTANCE IN THE FO RM OF LOW –INTEREST AND ZERO –INTEREST LOANS OR 5
GRANTS TO STABILIZE AND BACKFI LL INVESTMENT GAPS F OR CLEAN ENERGY 6
PROJECTS THAT FACE FINANCIAL UNCERTAINTY AS THE RESULT OF T HE LOSS OF 7
FEDERAL TAX INCENTIVES. 8

(D) THE ADMINISTRATION SHALL: 9

(1) COLLABORATE WITH THE APPROPRIATE UNITS OF STATE 10
GOVERNMENT IN THE DEVELOPMENT OF CRITERIA BY WHICH PROJECTS SHALL BE 11
EVALUATED UNDER THE PROGRAM; 12

(2) ISSUE A REQUEST FOR INFORM ATION AND CONDUCT OTHER 13
OUTREACH AS NEEDED TO ASSIST IN THE DESIGN OF THE PROGRAM; 14

(3) ESTABLISH A PROCESS BY WHICH PROJECTS MA Y APPLY FOR 15
FUNDING UNDER THE PROGRAM; 16

(4) ESTABLISH TERMS AND CONDITIONS FOR LOANS AND GRANTS 17
MADE UNDER THE PROGRAM; AND 18

(5) ON OR BEFORE DECEMBER 1, 2026, PUBLISH THE CRITERIA FOR 19
THE PROGRAM ON THE ADMINISTRATION’S WEBSITE AND INVITE A PPLICATIONS 20
FOR THE PROGRAM. 21

(E) THE PROGRAM: 22

(1) SHALL PRIORITIZE PROJECTS THAT ARE THE MOST PREPARED TO 23
BEGIN CONSTRUCTION, ALSO KNOWN AS SHOVEL–READY PROJECTS; 24

(2) SHALL BE A PERFORMANCE–BASED INCENTIVE DETERMINED BY A 25
CLOSED BID SYSTEM IN WHICH THE PROJECTS THAT BID THE LOWEST DOLLAR PER 26
MEGAWATT OF CAPACITY ARE PROVIDED LOANS OR GRANTS FROM THE PROGRAM; 27

(3) MAY BE SEGMENTED TO INCENTIVIZE THE VARI OUS MARKET 28
SUBSETS OF SOLAR DEVELOPMENT, INCLUDING: 29

(I) COMMUNITY SOLAR PROJECTS; 30
SENATE BILL 386 9

(II) UTILITY SCALE PROJEC TS, AS DEFINED BY THE 1
ADMINISTRATION; AND 2

(III) BROWNFIELD PROJECTS AND PARKING CANOPIES; 3

(4) SHALL PRIORITIZE PRO JECTS THAT ARE EXPECTED TO BE 4
INTERCONNECTED AND O PERATIONAL WITHIN 3 YEARS AFTER THE DATE THE 5
APPLICATION IS RECEIVED; AND 6

(5) MAY GIVE PREFERENCE TO PROJECTS THAT INC ORPORATE 7
ENERGY STORAGE TECHNOLOGIES. 8

(F) A LOAN OR GRANT PROVIDED UNDER THIS SECTION SHALL BE FUNDED 9
THROUGH: 10

(1) FUNDS TRANSFERRED TO THE PROGRAM FROM THE MARYLAND 11
STRATEGIC ENERGY INVESTMENT FUND; AND 12

(2) ANY OTHER MONEY MADE AVAILABLE TO THE ADMINISTRATION 13
FOR THE PROGRAM. 14

9–20B–05. 15

(a) There is a Maryland Strategic Energy Investment Fund. 16

(f) The Administration shall use the Fund: 17

(13) notwithstanding subsection (g) of this section, to pay costs associated 18
with the Air and Radiation Administration within the Department of the Environment; 19
[and] 20

(14) TO PAY COSTS ASSOCIA TED WITH THE SOLAR AND ENERGY 21
STORAGE MARKET STABILIZATION PROGRAM; AND 22

[(14)] (15) to pay the expenses of the Program. 23

(i) (1) Except as provided in paragraphs (2), (3), [and] (4), AND (5) of this 24
subsection, compliance fees paid under § 7 –705(b) of the Public Utilities Article may be 25
used only to make loans and grants to support the creation of new Tier 1 renewable [energy] 26
sources, AS DEFINED IN § 7–701 OF THE PUBLIC UTILITIES ARTICLE, in the State that 27
are owned by or directly benefit: 28

(i) low– to moderate–income communities located in a census tract 29
with an average median income at or below 80% of the average median income for the State; 30
10 SENATE BILL 386

or 1

(ii) overburdened or underserved communities, as defined in § 1–701 2
of the Environment Article. 3

(2) Compliance fees paid under § 7 –705(b)(2)(i)2 of the Public Utilities 4
Article shall be accounted for separately within the Fund and may be used only to make 5
loans and grants to support the crea tion of new solar energy sources in the State that are 6
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

(ii) overburdened or underserved communities, as defined in § 1–701 10
of the Environment Article; or 11

(iii) households with low to moderate income, as defined in § 9–2016 12
of this title. 13

(3) For fiscal year 2026 only, up to $100,000,000 of compliance fees paid 14
under §§ 7–705(b) and 7–705(b)(2)(i)2 of the Public Utilities Article shall be accounted for 15
separately within the Fund and may be used for solar development on State government 16
property and local government clean energy projects. 17

(4) (i) Subject to su bparagraphs (ii), (iii), and (iv) of this paragraph, 18
compliance fees paid under § 7 –705 of the Public Utilities Article may be used to provide 19
grants to electric companies to be refunded or credited to each residential distribution 20
customer based on the cu stomer’s consumption of electricity supply that is subject to the 21
renewable energy portfolio standard. 22

(ii) The refunding or crediting of amounts to residential distribution 23
customers shall be identified on the customer’s bill as a line item identified as a “legislative 24
energy relief refund”. 25

(iii) An electric company awarded a grant under this paragraph: 26

1. may not retain any of the grant funds to cover overhead 27
expenses; and 28

2. shall provide all of the grant funds to residential 29
distribution customers. 30

(iv) The process under subparagraphs (i) and (ii) of this paragraph 31
related to the refunding or crediting of amounts to residential distribution customers shall 32
be directed and overseen by the Commission. 33

(5) FOR FISCAL YEARS 2027 THROUGH 2031, COMPLIANCE FEES PAID 34
SENATE BILL 386 11

UNDER § 7–705 OF THE PUBLIC UTILITIES ARTICLE AND DEPOSITED INTO T HE 1
FUND MAY BE USED FOR GRAN TS OR LOANS TO SUPPO RT THE CREATION OF N EW 2
TIER 1 RENEWABLE SOURCES, AS DEFINED IN § 7–701 OF THE PUBLIC UTILITIES 3
ARTICLE, IN THE STATE. 4

Article – Transportation 5

8–311. 6

(A) THE SECRETARY SHALL DEVELOP: 7

(1) PROCESSES, INCLUDING A MODEL LE ASING FRAMEWORK AND 8
SAFETY GUIDELINES, FOR ELECTRIC TRANSMISSION OR DISTRIBUTION LINES AND 9
BATTERY ENERGY STORA GE SYSTEMS TO BE LOCATED WITHIN EXISTING 10
RIGHTS–OF–WAY ALONG STATE AND INTERSTATE HIGHWAYS OR ON OTHER 11
PROPERTY UNDER THE CONTROL OF THE DEPARTMENT; AND 12

(2) AN EXPEDITED APPROVAL PROCESS FOR THE SITI NG OF 13
ELECTRIC TRANSMISSION AND DIS TRIBUTION LINES AND BATTERY ENERGY 14
STORAGE SYSTEMS WITHIN EXISTING RIGHTS –OF–WAY OR ON OTHER PROPERTY 15
UNDER THE CONTROL OF THE DEPARTMENT. 16

(B) THE DEPARTMENT, IN CONSULTATION WITH THE MARYLAND ENERGY 17
ADMINISTRATION, THE DEPARTMENT OF NATURAL RESOURCES, THE POWER 18
PLANT RESEARCH PROGRAM, AND THE DEPARTMENT OF COMMERCE SHALL 19
CONDUCT A STUDY TO D ETERMINE WHICH EXIST ING RIGHTS –OF–WAY MAY BE 20
APPROPRIATE FOR THE SITING OF ELECTRIC TRANSMISSION OR DIST RIBUTION 21
LINES AND BATTERY ENERGY STORAGE SYSTEMS UNDER SUBSECTION (A) OF THIS 22
SECTION. 23

(C) THE SECRETARY MAY APPROVE OR DISAPPROVE PROJECTS SUBMITTED 24
FOR APPROVAL UNDER THIS SECTION. 25

(D) A PROJECT APPROVED UND ER THIS SECTION IS SUBJECT TO THE 26
FOLLOWING CONDITIONS: 27

(1) THE PROJECT SHALL COMPLY WITH FEDERAL LAW; 28

(2) THE OWNER OF THE ELECTRIC TRANSMISSION OR DISTRIBUTION 29
LINE OR BATTERY ENERGY STORAGE SYSTEM BEING INSTALLED SHALL PAY: 30

(I) THE FAIR MARKET VALUE FOR THE USE AND OCCUPANCY OF 31
THE RIGHT–OF–WAY; AND 32

12 SENATE BILL 386

(II) TO THE STATE ALL ADMINISTRAT IVE COSTS AND OTHER 1
APPLICABLE FEES; 2

(3) THE OWNER OF THE ELECTRIC TRANSMISSION OR DISTRIBUTION 3
LINE BEING INSTALLED: 4

(I) IS RESPONSIBLE FOR ALL INSTALLATION AND 5
MAINTENANCE COSTS; AND 6

(II) SHALL RELOCATE THE OW NER’S TRANSMISSION OR 7
DISTRIBUTION LINES AT THE OWNER’S EXPENSE AND IN AN EXPEDITED MANNER IF 8
RELOCATION IS NEEDED FOR ANY PUBLIC PURPOSE; AND 9

(4) ANY OTHER CON DITIONS SPECIFIED BY THE SECRETARY OR IN 10
REGULATIONS ADOPTED UNDER THIS SECTION. 11

(E) ON OR BEFORE DECEMBER 1, 2027, THE DEPARTMENT SHALL ADOPT 12
REGULATIONS TO CARRY OUT THIS SECTION. 13

SECTION 2. AND BE IT FURTHER ENACTED, That the Laws of Maryland read 14
as follows: 15

Article – Public Utilities 16

7–207. 17

(I) (1) IN THIS SUBSECTION, “ADVANCED TRANSMISSION TECHNOLOGY” 18
HAS THE MEANING STATED IN § 7–805 OF THIS TITLE. 19

(2) EXCEPT AS PROVIDED IN SUBSECTION (B)(4) OF THIS SECTION , 20
THE COMMISSION SHALL ISSUE AN ORDER APPROVING OR DENYING A CERTIFICATE 21
OF PUBLIC CONVENIENCE AND NECESSITY WITHIN 180 DAYS AFTER RECEIPT O F A 22
COMPLETE APPLICATION FOR CONSTRUCTION TO: 23

(I) REPLACE THE CONDUCTO R, WIRE, OR ASSOCIATED LINE 24
STRUCTURES OF AN EXISTING TRANSMISSION OR DISTRIBUTION LINE; OR 25

(II) INSTALL ADVANCED TRA NSMISSION TECHNOLOGI ES TO 26
EXPAND OR ENHANCE AN EXISTING TRANSMISSION OR DISTRIBUTION LINE. 27

SECTION 3. AND BE IT FURTHER ENACTED, That the Laws of Maryland read 28
as follows: 29

Article – Public Utilities 30
SENATE BILL 386 13

7–207. 1

(i) (1) In this subsection , “advanced transmission technology” has the 2
meaning stated in § 7–805 of this title. 3

(2) [Except as provided in subsection (b)(4) of this section, the] THE 4
Commission shall issue an order a pproving or denying a certificate of public convenience 5
and necessity within 180 days after receipt of a complete application for construction to: 6

(i) replace the conductor, wire, or associated line structures of an 7
existing transmission or distribution line; or 8

(ii) install advanced transmission technologies to expand or enhance 9
an existing transmission or distribution line. 10

SECTION 4. AND BE IT FURTHER ENACTED, That: 11

(a) (1) Notwithstanding any other provision of law, from the alternative 12
compliance fees paid into the Maryland Strategic Energy Investment Fund in accordance 13
with § 7–705 of the Public Utilities Article, a portion shall be used to provide grant awards 14
to electric companies, including electric cooperatives and municipal electric utilities, to be 15
refunded or credited to residential distribution customers for electric service in fiscal year 16
2027 in accordance with subsection (b) of this section. 17

(2) The Governor may transfer by budget amendment up to $ 100,000,000 18
of the funds described in paragraph (1) of this subsection to the Public Service Commission 19
to be awarded to electric companies, including electric cooperatives and municipal electric 20
utilities. 21

(b) The funds described in subsection (a) of this section shall be: 22

(1) distributed in accordance with § 9 –20B–05(i)(4) of the State 23
Government Article; and 24

(2) refunded or credited to residential distribution customers one time 25
before a peak summer month but not later than October 31, 2026. 26

SECTION 5. AND BE IT FURTHER ENACTED, That, notwithstanding any other 27
provision of law, the Governor may transfer by budget amendment up to $10,000,000 from 28
the Maryland Strategic Energy Investment Fund to fund the study required under § 8–311 29
of the Transportation Article, as enacted by Section 1 of this Act. 30

SECTION 6. AND BE IT FURTHER ENACTED, That Section 3 of this Act shall take 31
effect on the taking effect of the termination provision specified in Section 14 of Chapters 32
625 and 626 of the Acts of the General Assembly of 2025. If that termination provision takes 33
effect, Section 2 of this Act, with no further action required by the General Assembly, shall 34
14 SENATE BILL 386

be abrogated and of no further force and effect. This Act may not be interpreted to have any 1
effect on that termination provision. 2

SECTION 7. AND BE IT FURTHER ENACTED, That, subject to the provisions of 3
Section 6 of this Act, this Act shall take effect July 1, 2026. 4