Utility RELIEF (Reducing Energy Load Inflation for Everyday Families) Act

EXPLANATION: CAPITALS INDICATE MATTER ADDED TO EXISTING LAW.
[Brackets] indicate matter deleted from existing law.
Underlining indicates amendments to bill.
Strike out indicates matter stricken from the bill by amendment or deleted from the law by
amendment.
*sb0841*

SENATE BILL 841
P1, M5, C5 6lr2749

By: Senators Feldman and, Hester , Ferguson, Brooks, Gile, Harris, Kagan,
Simonaire, M. Washington, and Watson
Introduced and read first time: February 6, 2026
Assigned to: Education, Energy, and the Environment
Committee Report: Favorable with amendments
Senate action: Adopted with floor amendments
Read second time: March 15, 2026

CHAPTER ______

AN ACT concerning 1

Maryland Energy Administration – Renewable Energy Generation Projects – 2
Alternative Compliance Fee Auctions 3
Utility RELIEF (Reducing Energy Load Inflation for Everyday Families) Act 4

FOR the purpose of altering the uses of the Maryland Strategic Energy Investment Fund 5
and certain compliance fees; requiring the Marylan d Energy Administration , in 6
consultation with the Public Service Commission, to develop and conduct certain 7
annual, competitive, low–bid alternative compliance fee auctions for the 8
development of certain renewable energy generation projects ; establishing the 9
purpose and procedures for an auction and the eligibility requirements for certain 10
bidders; requiring the Administration and the Commission to set certain thresholds 11
and capacity targets; requiring the Administration to set certain deadlines and 12
milestones for projects awarded a contract ; authorizing the Administration to 13
provide certain extensions under certain circumstances ; authorizing the recapture 14
of certain funds under certain circumstances; and generally relating to alternative 15
compliance fee auctions for renewable energy generation projects transferring the 16
electric universal service program to the Office of Home Energy Programs and 17
requiring the Office to authorize benefits under the program for certain electric 18
customers; establishing the Green and Renewable Energy Efficiency for Nonprofits 19
Loan Program in the Maryland Clean Energy Center; reducing a certain alternative 20
compliance payment rate applicable to certain covered buildings; altering certain 21
procedures related to the permitting, inspection, and interconnection of certain 22
residential solar energy systems; requiring certain public service companies to 23
include certain information on customer bills under certain circumstances; altering 24
2 SENATE BILL 841

certain provisions relating to and establishing certain requirements for large load 1
customers, including requiring the Public Service Commission to establish a large 2
load customer registry, a voluntary clean capacity rating program, and an 3
interconnection process for certain large load customers; altering certain provisions 4
regulating multiyear rate plans a nd limited –income mechanisms; prohibiting 5
certain public service companies from recovering certain costs through rates; 6
requiring a certain person to participate as a member in a regional transmission 7
organization; requiring the Commission or, at the Commi ssion’s direction, a person 8
applying for a certificate of public convenience and necessity for the construction of 9
any transmission line to provide certain notices to certain landowners regarding the 10
construction; establishing that if the Commission makes a certain finding, a certain 11
public hearing is invalidated or the Commission may order a new hearing under 12
certain circumstances; altering certain provisions and establishing certain 13
requirements relating to certificates of public convenience and necessity ; requiring 14
the Commission to establish and review certain electric system metrics; requiring 15
electric companies to submit a certain electric system utilization improvement plan 16
to the Commission at certain times; altering which gas companies are subject t o 17
certain requirements for the development and implementation of certain programs 18
and services relating to energy efficiency, conservation, demand response, beneficial 19
electrification, and greenhouse gas emissions reductions; altering certain provisions 20
regulating certain energy efficiency and conservation plans; altering certain 21
provisions regulating community solar energy generating systems; authorizing the 22
Maryland Energy Administration to require applicants for the Energy Storage 23
System Grant Program to participate in certain programs and tariffs; altering the 24
net energy metering program; altering certain provisions regulating community 25
solar energy generating systems; requiring the Commission to establish a successor 26
program to the net energy metering program; authorizing the purchase, installation, 27
and use of a certain portable solar energy generating system for residential use; 28
prohibiting the Commission from adopting or enforcing a regulation or order that 29
prohibits a public service company from offering a discount or payment plan for the 30
connection or extension of a natural gas line to a customer’s property; altering the 31
administration of certain incentives and rebates for acquiring and installing 32
renewable on–site generating systems; altering certain provisions relating to energy 33
solicitation and procurement; altering certain provisions relating to the Strategic 34
Energy Planning Office; prohibiting the construction of a data center in certain 35
development districts in Baltimore City; authorizing the Dep artment of General 36
Services to issue a request for proposals for a certain long–term lease on certain sites; 37
authorizing the Board of Public Works to waive the inclusion of certain clauses in a 38
certain contract; altering the uses of the Maryland Strategic Energy Investment 39
Fund and certain compliance fees paid into the Fund; requiring the Administration 40
to conduct certain alternative compliance fee auctions; requiring that certain 41
compliance fees and proceeds be used in a certain manner; authorizing the Governor 42
to transfer certain funds for certain purposes in a certain fiscal year; requiring the 43
Commission to conduct certain proceedings, conduct a certain costs and benefits 44
analysis, prepare certain recommendations, and develop certain guidelines and 45
recommendations; authorizing certain committees of the General Assembly to 46
request that the Strategic Energy Planning Office assess certain policy scenarios and 47
SENATE BILL 841 3

submit a certain report to the committees on or before a certain date; requiring the 1
Commission to i ssue a certain request for information and request for certain 2
proposals for a certain purpose; requiring the Power Plant Research Program, in 3
consultation with the Department of the Environment and the Administration, to 4
conduct a certain study; altering and adding certain reporting requirements relating 5
to greenhouse gas emissions reductions, the Maryland Clean Energy Center, 6
transmission congestion, power flow analyses, and the Maryland Energy Storage 7
Program; and generally relating to energy policy in the State. 8

BY renumbering 9
Article – Economic Development 10
Section 10–862 and the part “Part VII. Short Title” 11
to be Section 10–871 and the part “Part VIII. Short Title” 12
Annotated Code of Maryland 13
(2024 Replacement Volume and 2025 Supplement) 14

BY renumbering 15
Article – Human Services 16
Section 5–5A–08 through 5–5A–10 17
to be Section 5–5A–09 through 5–5A–11, respectively 18
Annotated Code of Maryland 19
(2019 Replacement Volume and 2025 Supplement) 20

BY transferring 21
Article – Public Utilities 22
Section 7–512.1 23
Annotated Code of Maryland 24
(2025 Replacement Volume and 2025 Supplement) 25
to be 26
Article – Human Services 27
Section 5–5A–08 28
Annotated Code of Maryland 29
(2019 Replacement Volume and 2025 Supplement) 30

BY repealing and reenacting, with amendments, 31
Article – Economic Development 32
Section 10–826 33
Annotated Code of Maryland 34
(2024 Replacement Volume and 2025 Supplement) 35

BY adding to 36
Article – Economic Development 37
Section 10 –862 through 10 –868 to be under the new part “Part VII. Green and 38
Renewable Energy Efficiency for Nonprofits Loan Program” 39
Annotated Code of Maryland 40
(2024 Replacement Volume and 2025 Supplement) 41

4 SENATE BILL 841

BY adding to 1
Article – Environment 2
Section 2–1209 3
Annotated Code of Maryland 4
(2013 Replacement Volume and 2025 Supplement) 5

BY repealing and reenacting, with amendments, 6
Article – Environment 7
Section 2–1601 and 2–1602 8
Annotated Code of Maryland 9
(2013 Replacement Volume and 2025 Supplement) 10

BY repealing and reenacting, without amendments, 11
Article – Financial Institutions 12
Section 12–401(a) and (i) 13
Annotated Code of Maryland 14
(2020 Replacement Volume and 2025 Supplement) 15

BY repealing and reenacting, with amendments, 16
Article – Housing and Community Development 17
Section 2–102(a)(10) 18
Annotated Code of Maryland 19
(2019 Replacement Volume and 2025 Supplement) 20

BY repealing and reenacting, without amendments, 21
Article – Human Services 22
Section 5–101(a), (b), and (c), 5–5A–02, and 5–5A–03 23
Annotated Code of Maryland 24
(2019 Replacement Volume and 2025 Supplement) 25

BY repealing and reenacting, with amendments, 26
Article – Human Services 27
Section 5–5A–01 28
Annotated Code of Maryland 29
(2019 Replacement Volume and 2025 Supplement) 30

BY repealing and reenacting, with amendments, 31
Article – Human Services 32
Section 5–5A–08 33
Annotated Code of Maryland 34
(2019 Replacement Volume and 2025 Supplement) 35
(As enacted by Section 2 of this Act) 36

BY repealing and reenacting, with amendments, 37
Article – Local Government 38
Section 1–1320 39
Annotated Code of Maryland 40
SENATE BILL 841 5

(2013 Volume and 2025 Supplement) 1

BY adding to 2
Article – Public Utilities 3
Section 4 –203.1, 7 –207(f), 7 –207.6, 7 –207.7, 7 –216.1(d), 7–219.1, 7–221.1, and 4
7–229; 7–232 through 7–234 to be under the new part “Part III. Large Load 5
Customers”; and 7–306.2(o), 7–306.4, 7–321, 7–322, and 7–1008 6
Annotated Code of Maryland 7
(2025 Replacement Volume and 2025 Supplement) 8

BY repealing and reenacting, with amendments, 9
Article – Public Utilities 10
Section 4–212, 4–213, 4–309, 4–504, 7–103, 7–204, 7–207(a), (b)(3) and (4), and (c) 11
through (h), 7–208, 7–222, 7–223, 7–224(a)(1) and (d), 7–225, 7–306(d) and (j), 12
7–306.2(a)(4) and (d)(13), 7 –505(b)(2) and (d)(2)(ii)3., 7 –510.3(o), 7 –1006, 13
7–1007, 7–1201(g), 7–1216(b), 7–1220, 7–1225, 7–1302(b), and 7–1304(c) 14
Annotated Code of Maryland 15
(2025 Replacement Volume and 2025 Supplement) 16

BY repealing and reenacting, without amendments, 17
Article – Public Utilities 18
Section 3–106, 7–216.1(a)(1) and (5) and (c), 7 –221, 7 –226 through 7 –228, 19
7–306(a)(1), (4), and (7), 7 –306.2(a)(1) and (7) and (d)(1), 7 –505(b)(1), 20
7–1201(a), 7–1216(a), and 7–1302(a) 21
Annotated Code of Maryland 22
(2025 Replacement Volume and 2025 Supplement) 23

BY adding to 24
Article – Real Property 25
Section 14–134 26
Annotated Code of Maryland 27
(2023 Replacement Volume and 2025 Supplement) 28

BY repealing and reenacting, without amendments, 29
Article – State Finance and Procurement 30
Section 4–101(a) and (b), 6–226(a)(2)(i) and (ii), and 13–218(a)(2) 31
Annotated Code of Maryland 32
(2021 Replacement Volume and 2025 Supplement) 33

BY adding to 34
Article – State Finance and Procurement 35
Section 4–323, 6–226(a)(2)(iii)214., and 13–218(f) 36
Annotated Code of Maryland 37
(2021 Replacement Volume and 2025 Supplement) 38

BY repealing and reenacting, with amendments, 39
Article – State Finance and Procurement 40
6 SENATE BILL 841

Section 6–226(a)(2)(iii)212. and 213. and 13–217 1
Annotated Code of Maryland 2
(2021 Replacement Volume and 2025 Supplement) 3

BY repealing and reenacting, without amendments, 4
Article – State Government 5
Section 9 –2012(b) and (c), 9 –2016(a), (b), and (e), 9 –20B–01(a) and (b), and 6
9–20B–05(b) and (c) 7
Annotated Code of Maryland 8
(2021 Replacement Volume and 2025 Supplement) 9

BY adding to 10
Article – State Government 11
Section 9 –2012(j) and 9 –20B–05(a) and (i –2); and 9 –20E–01 and 9 –20E–02 to be 12
under the new subtitle “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
Article – State Government 17
Section 9–2012(j), 9–2016(f), and 9–20B–05(a), (e), (f), (g)(1), (g–1), (i), and (i–1) 18
Annotated Code of Maryland 19
(2021 Replacement Volume and 2025 Supplement) 20

BY repealing and reenacting, with amendments, 21
Chapter 7 of the Acts of the General Assembly of the 2025 Special Session 22
Section 2 23

BY repealing and reenacting, with amendments, 24
Chapter 19 of the Acts of the General Assembly of the 2025 Special Session 25
Section 2 26

BY repealing and reenacting, without amendments, 27
Article – State Government 28
Section 9–2016(a), (b), and (e) and 9–20B–05(a), (b), (c), and (e) 29
Annotated Code of Maryland 30
(2021 Replacement Volume and 2025 Supplement) 31

BY repealing and reenacting, with amendments, 32
Article – State Government 33
Section 9–2016(f) and 9–20B–05(f)(13) and (14) 34
Annotated Code of Maryland 35
(2021 Replacement Volume and 2025 Supplement) 36

BY adding to 37
Article – State Government 38
SENATE BILL 841 7

Section 9–20B–05(f)(14) and (i); and 9–20E–01 and 9–20E–02 to be under the new 1
subtitle “Subtitle 20E. Alternative Compliance Fee Auctions” 2
Annotated Code of Maryland 3
(2021 Replacement Volume and 2025 Supplement) 4

BY repealing 5
Article – State Government 6
Section 9–20B–05(g–1), (i), and (i–1) 7
Annotated Code of Maryland 8
(2021 Replacement Volume and 2025 Supplement) 9

BY repealing 10
Article – State Government 11
Section 9–20B–05(g–1) 12
Annotated Code of Maryland 13
(2021 Replacement Volume and 2025 Supplement) 14
(As enacted by Chapter 595 of the Acts of the General Assembly of 2024) 15

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 16
That Section(s) 10 –862 and the part “Part VII. Short Title” of Article – Economic 17
Development of the Annotated Code of Maryland be renumbered to be Section(s) 10 –871 18
and the part “Part VIII. Short Title”. 19

SECTION 2. AND BE IT FURTHER ENACTED, That Section(s) 5 –5A–08 through 20
5–5A–10 of Article – Human Services of the Annotated Code of Maryland be renumbered 21
to be Section(s) 5–5A–09 through 5–5A–11, respectively. 22

SECTION 3. AND BE IT FURTHER ENACTED, That Section(s) 7 –512.1 of 23
Article – Public Utilities of the Annotated Code of Maryland be transferred to be Section(s) 24
5–5A–08 of Article – Human Services of the Annotated Code of Maryland. 25

SECTION 4. AND BE IT FURTHER ENACTED, That the Laws of Maryland read 26
as follows: 27

Article – Economic Development 28

10–826. 29

(a) On or before December 1 of each year, the Center shall report to the Governor, 30
the Administration, and, in accordance with § 2–1257 of the State Government Article, the 31
General Assembly. 32

(b) The report shall include: 33

(1) a complete operating and financial statement covering the Center’s 34
operations; 35

8 SENATE BILL 841

(2) a summary of the Center’s activities during the preceding fiscal year; 1
[and] 2

(3) a summary of the Center’s activities specific to clean energy innovation; 3
AND 4

(4) A SUMMARY OF THE CENTER’S ACTIVITIES SPECIFI C TO THE 5
GREEN AND RENEWABLE ENERGY EFFICIENCY FOR NONPROFITS LOAN PROGRAM 6
ESTABLISHED UNDER § 10–863 OF THIS SUBTITLE, INCLUDING: 7

(I) THE TOTAL NUMBER OF LOANS AWARDED; 8

(II) THE TOTAL MONETARY VALUE OF THE LOANS AWARDED; 9

(III) THE AVERAGE TERM OF LOANS IN THE LOAN PORTFOLIO; 10

(IV) THE ESTIMATED ANNUAL ENERGY SAVINGS , IN 11
KILOWATT–HOURS, RESULTING FROM MEASURES ASSOCIATED WITH LOANS IN THE 12
LOAN PORTFOLIO; AND 13

(V) THE ESTIMATED REDUCT ION OF GREENHOUSE GA S 14
EMISSIONS, IN METRIC TONS, ASSOCIATED WITH LOANS IN THE LOAN PORTFOLIO. 15

PART VII. GREEN AND RENEWABLE ENERGY EFFICIENCY FOR NONPROFITS LOAN 16
PROGRAM. 17

10–862. 18

(A) IN THIS PART THE FOLLOWING WORDS HAVE THE MEANINGS 19
INDICATED. 20

(B) “BORROWER” MEANS A NONPROFIT ORGANIZATION THAT APPLIES AND 21
QUALIFIES FOR A LOAN UNDER THE PROGRAM. 22

(C) “FUND” MEANS THE GREEN AND RENEWABLE ENERGY EFFICIENCY 23
FOR NONPROFITS LOAN FUND. 24

(D) “NONPROFIT ORGANIZATIO N” MEANS AN ORGANIZATIO N THAT IS 25
EXEMPT FROM FEDERAL INCOME TAX UNDER § 501(C)(3) OF THE INTERNAL 26
REVENUE CODE. 27

(E) “PROGRAM” MEANS THE GREEN AND RENEWABLE ENERGY 28
EFFICIENCY FOR NONPROFITS LOAN PROGRAM. 29

SENATE BILL 841 9

(F) “QUALIFYING ENERGY SYSTEM” MEANS A SYSTEM THAT: 1

(1) GENERATES ELECTRICITY OR USABLE THERMAL ENERGY THAT IS 2
USED TO MEET ON–SITE DEMAND; AND 3

(2) ASSISTS THE STATE IN MEETING THE ENVIRONM ENTAL AND 4
GREENHOUSE GAS REDUC TION GOALS UNDER TITLE 2, SUBTITLE 12 OF THE 5
ENVIRONMENT ARTICLE. 6

10–863. 7

THERE IS A GREEN AND RENEWABLE ENERGY EFFICIENCY FOR NONPROFITS 8
LOAN PROGRAM IN THE CENTER. 9

10–864. 10

THE PURPOSE OF THE PROGRAM IS TO PROVIDE FINANC IAL ASSISTANCE IN 11
THE FORM OF NO–INTEREST LOANS TO NONPROFIT ORGANIZATIONS FOR: 12

(1) THE PLANNING, PURCHASE, AND INSTALLATION OF QUALIFYING 13
ENERGY SYSTEMS IN THE STATE; AND 14

(2) ACTIONS THAT IMPROVE ENERGY EFFICIENCY , SUCH AS 15
REPAIRING OR REPLACING WI NDOWS, DOORS, AND HEATING , VENTILATION, AND 16
AIR–CONDITIONING SYSTEMS AND OTHER SIMILAR IMPROVEMENTS. 17

10–865. 18

THE CENTER SHALL: 19

(1) MANAGE, SUPERVISE, AND ADMINISTER THE PROGRAM; 20

(2) ADOPT REGULATIONS TO ENSURE THAT LOANS PROVIDED TO 21
NONPROFIT ORGANIZATIONS CARRY OUT THE PURPOSE OF THE PROGRAM; AND 22

(3) ATTACH TO ANY LOAN S PECIFIC TERMS THAT A RE CONSIDERED 23
NECESSARY TO ENSURE THAT THE PURPOSE OF THE PROGRAM IS FULFILLED. 24

10–866. 25

(A) (1) A BORROWER MUST FILE AN APPLICATION WITH THE CENTER TO 26
RECEIVE A LOAN UNDER THE PROGRAM. 27

(2) THE APPLICATION MUST BE SIGNED BY THE CHI EF OPERATING 28
OFFICER OR AN AUTHORIZED OFFICER OF THE NONPROFIT ORGANIZATION. 29
10 SENATE BILL 841

(B) THE APPLICATION MUST CONTAIN ANY INFORMAT ION THE CENTER 1
DETERMINES IS NECESSARY, INCLUDING: 2

(1) THE PROJECTED COST O F THE QUALIFYING ENE RGY SYSTEM , 3
ENERGY EFFICIENCY AC TION, OR TECHNICAL ASSISTANCE BEING FINANCED 4
THROUGH THE LOAN; 5

(2) THE LOCATION OF THE PROPERTY WHERE THE Q UALIFYING 6
ENERGY SYSTEM WILL B E INSTALLED OR AN ENER GY EFFICIENCY ACTION WILL 7
OCCUR AND WHETHER THE PROP ERTY IS OWNED OR LEA SED BY THE APPLICANT ; 8
AND 9

(3) ANY ADDITIONAL INFORMATION RELATING TO THE BORROWER OR 10
THE PROPOSED QUALIFY ING ENERGY SYSTEM OR ENERGY EFFICIENCY AC TION 11
BEING FINANCED THROUGH THE LOAN THAT MAY BE REQUIRED BY THE CENTER TO 12
ADMINISTER THE PROGRAM. 13

(C) THE CENTER MAY APPROVE AN APPLICATION FOR A LOAN SPECIFIED IN 14
§ 10–867(A)(1) OF THIS SUBTITLE ONLY IF THE APPLICATION DEMONSTRATES THAT 15
THE PROPOSED QUALIFY ING ENERGY SYSTEM OR ENERGY EFF ICIENCY ACTION IS 16
ESTIMATED, BASED ON PROJECTED E NERGY COSTS, TO GENERATE ENERGY C OST 17
SAVINGS OVER THE USEFUL LIFE OF THE SYST EM OR ENERGY EFFICIENCY ACTION 18
THAT EQUAL OR EXCEED THE TOTAL AMORTIZED COST OF THE LOAN. 19

(D) IN APPROVING AN APPLICATION, THE CENTER SHALL CONSIDER AND 20
GIVE PRIORITY TO AN APPLICANT THAT HAS AN ANNUAL BUDGET OF $1,000,000 OR 21
LESS. 22

10–867. 23

(A) LOANS FROM THE FUND MAY BE USED FOR: 24

(1) THE PURCHASE AND INS TALLATION OF A QUALI FYING ENERGY 25
SYSTEM, INCLUDING ANY NECESS ARY ANCILLARY MACHIN ERY, EQUIPMENT, OR 26
FURNISHINGS; 27

(2) TECHNICAL ASSISTANCE FOR THE PLANNING AND INSTALLATION 28
OF A QUALIFYING ENERGY SYSTEM; AND 29

(3) ACTIONS THAT IMPROVE ENERGY EFFIC IENCY, SUCH AS 30
REPAIRING OR REPLACI NG WINDOWS , DOORS, AND HEATING , VENTILATION, AND 31
AIR–CONDITIONING SYSTEMS AND OTHER SIMILAR IMPROVEMENTS. 32

SENATE BILL 841 11

(B) EACH BORROWER FOR A L OAN UNDER SUBSECTION (A)(1) OF THIS 1
SECTION SHALL CONTRI BUTE AT LEAS T 10% OF THE COST OF THE Q UALIFYING 2
ENERGY SYSTEM OR ENERGY EFFICIENCY ACTION. 3

(C) (1) LOANS MADE UNDER THE PROGRAM SHALL BE REPA YABLE BY 4
THE BORROWER IN ACCORDANCE WITH A SCHEDULE SET BY THE CENTER. 5

(2) THE SCHEDULE SET BY T HE CENTER MAY BE ON A DEFE RRED 6
PAYMENT BASIS. 7

(D) (1) A BORROWER SHALL PROVI DE ASSURANCES FOR TH E 8
REPAYMENT OF A LOAN. 9

(2) THE ASSURANCES: 10

(I) SHALL INCLUDE A PROMISSORY NOTE; AND 11

(II) MAY INCLUDE A PLAN FOR REPAYMENT. 12

(E) LOANS MAY BE MADE IN CONJUNCTION WITH OR IN ADDITION TO 13
FINANCIAL ASSISTANCE PROVIDED THROUGH OTH ER STATE OR FEDERAL 14
PROGRAMS. 15

10–868. 16

(A) THERE IS A GREEN AND RENEWABLE ENERGY EFFICIENCY FOR 17
NONPROFITS LOAN FUND. 18

(B) THE CENTER SHALL ADMINISTER THE FUND. 19

(C) (1) THE FUND IS A SPECIAL , NONLAPSING FUND THAT IS NOT 20
SUBJECT TO § 7–302 OF THE STATE FINANCE AND PROCUREMENT ARTICLE. 21

(2) THE CENTER SHALL HOLD THE FUND SEPARATELY AND ACCOUNT 22
FOR THE FUND. 23

(D) THE FUND CONSISTS OF: 24

(1) MONEY APPROPRIATED IN THE STATE BUDGET TO THE FUND; 25

(2) MONEY TRANSFERRED FR OM THE STRATEGIC ENERGY 26
INVESTMENT FUND ESTABLISHED UNDER § 9–20B–05 OF THE STATE GOVERNMENT 27
ARTICLE; 28

(3) MONEY RECEIVED FROM ANY PUBLIC OR PRIVATE SOURCE; 29
12 SENATE BILL 841

(4) INTEREST AND INVESTMENT EARNINGS OF THE FUND; AND 1

(5) REPAYMENTS AND PREPAYMENTS ON LOANS MADE FROM T HE 2
FUND. 3

(E) (1) IN FISCAL YEAR 2028, THE GOVERNOR MAY INCLUDE IN THE 4
ANNUAL BUDGET BILL AN APPROPRIATION OF $5,000,000 FOR THE FUND. 5

(2) IN FISCAL YEAR 2029, THE GOVERNOR MAY INCLUDE IN THE 6
ANNUAL BUDGET BILL AN APPROPRIATION EQUAL TO AT LEAST $5,000,000 MINUS 7
THE AMOUNT IN THE FUND AS OF JUNE 30 OF THE IMMEDIATELY P RECEDING 8
FISCAL YEAR. 9

(F) THE FUND MAY BE USED ONLY: 10

(1) TO PAY THE EXPENSES OF THE PROGRAM; AND 11

(2) TO PROVIDE LOANS TO ELIGIBLE BORROWERS UNDER THE 12
PROGRAM. 13

(G) (1) THE CENTER SHALL INVEST A ND REINVEST THE MONE Y OF THE 14
FUND IN THE SAME MANN ER AS OTHER STATE MONEY HELD BY T HE CENTER MAY 15
BE INVESTED. 16

(2) ANY INVESTMENT EARNINGS OF THE FUND SHALL BE PAID IN TO 17
THE FUND. 18

(3) ANY REPAYMENT ON LOANS M ADE FROM THE FUND SHALL BE 19
PAID INTO THE FUND. 20

10–869. RESERVED. 21

10–870. RESERVED. 22

Article – Environment 23

2–1209. 24

(A) THE DEPARTMENT SHALL PREP ARE AN ANNUAL REPORT ON THE 25
GREENHOUSE GAS EMISS IONS REDUCTIONS ACHI EVED AS A RESULT OF THE 26
ADOPTION OF ELECTRIC VEHICLES IN THE STATE. 27

SENATE BILL 841 13

(B) ON OR BEFORE DECEMBER 31, 2027, AND EACH DECEMBER 31 1
THEREAFTER, THE DEPARTMENT SHALL SUBM IT THE REPORT REQUIR ED UNDER 2
SUBSECTION (A) OF THIS SECTION, IN ACCORDANCE WITH § 2–1257 OF THE STATE 3
GOVERNMENT ARTICLE, TO THE SENATE COMMITTEE ON EDUCATION, ENERGY, 4
AND THE ENVIRONMENT AND THE HOUSE ENVIRONMENT AND TRANSPORTATION 5
COMMITTEE. 6

2–1601. 7

(a) In this subtitle the following words have the meanings indicated. 8

(b) (1) “Agricultural building” means a s tructure that is used primarily to 9
cultivate, manufacture, process, or produce agricultural crops, raw materials, products, or 10
commodities. 11

(2) “Agricultural building” includes a greenhouse. 12

(C) “BASELINE EMISSIONS ” MEANS THE AMOUNT OF CARBON DIOXIDE 13
CALCULATED AS THE AV ERAGE AMOUNT OF CARB ON DIOXIDE EMITTED P ER 14
KILOWATT–HOUR FOR THE PJM REGION IN WHICH THE BUILDING IS LOCATED 15
MULTIPLIED BY THE AMOUNT OF ENERGY CONSUMED BY A COVERED BUILDING. 16

[(c)] (D) “Building” has the meaning stated in the International Building Code. 17

[(d)] (E) “Commercial building” means a building that is subject to the 18
commercial provisions of the International Energy Conservation Code. 19

[(e)] (F) (1) “Covered building” means a building that: 20

(i) 1. Is a commercial or multifamily residential building in the 21
State; or 22

2. Is owned by the State; and 23

(ii) Has a gross floor area of 35,000 square feet or more, excluding 24
the parking garage area. 25

(2) “Covered building” does not include: 26

(i) A building designated as a historic property under federal, State, 27
or local law; 28

(ii) A public or nonpublic elementary or secondary school building; 29

(iii) A hospital; 30

14 SENATE BILL 841

(iv) A manufacturing building; or 1

(v) An agricultural building. 2

[(f)] (G) “Critical infrastructure” has the meaning stated in § 1–101 of the Public 3
Utilities Article. 4

[(g)] (H) “Direct greenhouse gas emissions” means greenhouse gas emissions 5
produced on–site by covered buildings. 6

[(h)] (I) “District energy” means thermal energy generated at one or more 7
central facilities that produce hot water, steam, or chilled water that then flows through a 8
network of insulated underground pipes to provide hot water, space heating, air 9
conditioning, or chilled water to nearby buildings. 10

(J) “EXCESS EMISSIONS ” MEANS A BUILDING ’S BASELINE EMISSIONS 11
SUBTRACTED FROM THE BUILDING’S ON–SITE EMISSIONS. 12

[(i)] (K) “Manufacturing building” means a facility in which manufacturing, as 13
defined in § 2–1202 of this article, takes place. 14

(L) “ON–SITE EMISSIONS ” MEANS THE AMOUNT OF CARBON DIO XIDE 15
EMITTED BY AN ON–SITE GENERATOR. 16

2–1602. 17

(a) The Department shall develop building energy performance standards for 18
covered buildings that achieve: 19

(1) A 20% reduction in net direct greenhouse gas emissions on or before 20
January 1, 2030, as compared with 2025 levels for average buildings of similar construction; 21
and 22

(2) Net–zero direct greenhouse gas emissions on or before January 1, 2040. 23

(b) To facilitate the development of building energy performance standards under 24
this section, the Department shall require the owners of covered buildings to measure and 25
report direct emissions data to the Department annually beginning in 2025. 26

(c) (1) On or before June 1, 2023, the Department shall adopt regulations to 27
implement this section. 28

(2) Regulations adopted under this section shall: 29

(i) Subject to items (ii), (iii), (iv), and (v) of this paragraph, include 30
energy use intensity targets by building type; 31
SENATE BILL 841 15

(ii) As necessary, include special provisions or exceptions to account 1
for: 2

1. Building age; 3

2. Regional differences; 4

3. The unique needs of particular building or occupancy 5
types, including health care facilities, laboratories, assisted living and nursing facilities, 6
military buildings, critical infrastructure, and buildings used in life sciences as defined in 7
§ 3–201 of the Economic Development Article; 8

4. The use of district energy systems and biofuels by covered 9
buildings; 10

5. Crediting the generation of on –site renewable energy by 11
covered buildings toward their energy use intensity targets; 12

6. Crediting the greenhouse gas reduction impact of the 13
on–site use of biomethane; 14

7. Excluding the energy use and greenhouse gas emissions 15
related to the production of steam for sterilization in a health care facility, laboratory, 16
assisted living and nursing facility, military building, or building used in life sciences; and 17

8. Excluding the energy use and greenhouse gas emissions 18
related to the generation of emergency backup power at a he alth care facility, laboratory, 19
assisted living and nursing facility, military building, critical infrastructure, or building 20
used in life sciences; 21

(iii) Consider the needs of the owners of covered buildings who: 22

1. Are not responsible for the de sign, modification, fixtures, 23
or equipment of commercial tenants; 24

2. Do not have access to or control over building energy 25
systems that are used or controlled by commercial tenants; or 26

3. Own buildings occupied by commercial tenants who are 27
responsible for all maintenance of and repairs to the buildings; 28

(iv) Subject to paragraph [(3)] (3)(I) of this subsection, exempt from 29
energy use intensity targets a covered building that contains an area designed, built, and 30
operated as a permanent sensitive compartmented information facility and is operated by 31
an agency or contractor of: 32

16 SENATE BILL 841

1. The U.S. General Services Administration; 1

2. A. The U.S. Department of Defense; 2

B. The National Security Agency; 3

C. The U.S. Department of Homeland Security; or 4

D. Any other U.S. intelligence agency; or 5

3. The State; 6

(v) Exempt an owner of a covered building from energy use intensity 7
reporting requirements if: 8

1. The covered building meets the criteria under item (iv) of 9
this paragraph; and 10

2. In circumstances where tenant authorization is required, 11
the tenant or occupant does not provide energy use information to the owner of the covered 12
building due to concerns about the confidentiality of the building’s secure area; 13

(vi) Provide maximum flexibility to the owners of covered buildings 14
to comply with building energy performance standards; 15

(vii) Subject to paragraph (3) of this subsection, include an alternative 16
compliance pathway allowing the owner of a covered building to pay a fee for greenhouse 17
gas emissions attributable to the building’s failure to meet direct greenhouse gas emissions 18
reduction targets; 19

(viii) To the extent authorized by law, include financial incentives 20
recommended by the Building Energy Transition Implementation Task Force; and 21

(ix) Include an annual reporting fee of $100 per covered building, 22
adjusted for inflation, to cover the administrative costs of the program. 23

(3) (I) The Department may not set an alternative compliance fee that 24
is less than the social cost of greenhouse gases adopted by the Department or the U.S. 25
Environmental Protection Agency. 26

(II) FOR A COVERED BUILDIN G THAT USES ONLY ELE CTRICITY 27
THAT IS GENERATED ON –SITE AND IS NOT INTE RCONNECTED WITH THE ELECTRIC 28
SYSTEM: 29

1. THE ALTERNATIVE COMPL IANCE FEE FOR THE 30
BUILDING’S BASELINE EMISSIONS IS THE AVERAGE OF TH E REGIONAL 31
SENATE BILL 841 17

GREENHOUSE GAS INITIATIVE CLEARING P RICE FOR THE IMMEDIA TELY 1
PRECEDING YEAR; AND 2

2. THE ALTERNATIVE COMPL IANCE FEE FOR EXCESS 3
EMISSIONS, IF THE BUILDING ’S EXCESS EMISSIONS A RE GREATER THAN ZERO , IS 4
THE ALTERNATIVE COMP LIANCE FEE SET BY TH E DEPARTMENT UNDER 5
SUBPARAGRAPH (I) OF THIS PARAGRAPH. 6

(4) (i) Subject to subparagraph (ii) of this paragraph, the Department 7
shall certify a building e nergy performance standards program adopted by a county 8
administering a building energy performance standards program on or before March 1, 9
2025, and waive the requirement for covered buildings in the county to comply with the 10
statewide program adopted under this section. 11

(ii) A county administering a building energy performance 12
standards program certified by the Department under subparagraph (i) of this paragraph 13
may take appropriate actions to enforce the standards, including: 14

1. Establishing alt ernative compliance pathways for 15
complying with energy use intensity and direct greenhouse gas emissions requirements 16
established in the standards; 17

2. Imposing and collecting alternative compliance fees up to 18
the same amount and in the same manner all owed by the Department under this section; 19
and 20

3. Imposing and collecting penalties up to the same amount 21
and in the same manner allowed by the Department under § 2–610 of this title. 22

(5) Nothing in this section shall preclude a county administering a building 23
energy performance standards program certified by the Department under paragraph (4)(i) 24
of this subsection from: 25

(i) Adopting building energy performance standards for buildings 26
that are not covered buildings under the statewide program adopted under this section; or 27

(ii) Modifying an adopted building performance standards program. 28

(d) Electric companies and gas companies shall provide energy data, including 29
whole–building and aggregate data, to the owners of covered buildings for benchmarking 30
purposes. 31

(e) In calculating the statewide standards developed by the Department under 32
this section, an owner of a covered building may not consider greenhouse gas emissions or 33
energy use by a commercial tenant of the covered building that: 34

18 SENATE BILL 841

(1) Is a food service facility as defined in COMAR 10.15.03.02; and 1

(2) Engages in commercial cooking and water heating. 2

Article – Financial Institutions 3

12–401. 4

(a) In this subtitle the following words have the meanings indicated. 5

(i) “Executive officer” means a president, vice president, senior officer responsible 6
for business operations, chief financial officer, or any other individual who performs similar 7
functions. 8

Article – Housing and Community Development 9

2–102. 10

(a) The Department shall: 11

(10) develop and implement a weatherization program in accordance with 12
Title 4 of this article and administer the low –income weatherization component of the 13
electric universal service program in accordance with [§ 7 –512.1 of the Public Utilities 14
Article] § 5–5A–08 OF THE HUMAN SERVICES ARTICLE. 15

Article – Human Services 16

5–101. 17

(a) In this title the following words have the meanings indicated. 18

(b) “Administration” means the Family Investment Administration. 19

(c) “Department” means the Department of Human Services. 20

5–5A–01. 21

(a) In this subtitle the following words have the meanings indicated. 22

(B) “COMMISSION” MEANS THE PUBLIC SERVICE COMMISSION. 23

[(b)] (C) “Energy emergency” means a lack of fuel or the imminent 24
discontinuation of energy services supplied by a fuel vendor or utility vendor that will 25
endanger health, safety, or welfare. 26

SENATE BILL 841 19

[(c)] (D) “Fuel vendor” means a person that distributes, transports, produces, or 1
offers for sale coal products, fuel oil, kerosene, bottled gas, propane, or wood for fuel use or 2
consumption in the State. 3

[(d)] (E) “Office” means the Office of Home Energy Programs. 4

[(e)] (F) “Program” means the Energy Assistance Program. 5

[(f)] (G) “Utility vendor” means a person that distributes, transports, or 6
produces natural gas or electricity for use or consumption in the State. 7

5–5A–02. 8

There is an Office of Home Energy Programs in the Administration. 9

5–5A–03. 10

The purpose of the Office is to carry out this subtitle. 11

5–5A–08. 12

(a) (1) (I) [The Commission shall establish ] THERE IS an electric 13
universal service program [to assist electric customers with annual incomes at or below 14
200% of the federal poverty level] IN THE OFFICE. 15

(II) THE OFFICE SHALL IMPLEMEN T AND ADMINISTER THE 16
ELECTRIC UNIVERSAL SERVICE PROGRAM. 17

(III) THE PURPOSE OF THE EL ECTRIC UNIVERSAL SER VICE 18
PROGRAM IS TO ASSIST ELECTRIC CUSTOMERS W ITH ANNUAL INCOMES A T OR 19
BELOW 200% OF THE FEDERAL POVERTY LEVEL. 20

(2) The components of the electric universal service program shall include: 21

(i) bill assistance; 22

(ii) low–income residential weatherization; and 23

(iii) the retirement of arrearages for electric customers who have not 24
received assistance in retiring arrearages under the ELECTRIC universal service program 25
within the preceding 5 fiscal years. 26

(3) The Department of Housing and Community Development is 27
responsible for administering the low–income residential weatherization component of the 28
electric universal service program. 29

20 SENATE BILL 841

(4) [(i) The Department of Human Services, through the Office of Home 1
Energy Programs, is responsible for administering the bill assistance and the arrearage 2
retirement components of the electric universal service program. 3

(ii)] (I) The [Department of Human Services] OFFICE may: 4

1. establish minimum and maximum benefits available to an 5
electric customer under the bill assistance and arrearage retirement components; and 6

2. coordinate benefits under the electric universal service 7
program with benefits under the Maryland Energy Assistance Program and other available 8
energy assistance programs. 9

(II) THE OFFICE SHALL AUTHORIZ E BENEFITS UNDER THE 10
ELECTRIC UNIVERSAL SERVICE PROGRAM FOR AN ELECTRIC CUSTOMER WHO DOES 11
NOT MEET THE ELIGIBILITY REQUIREMENTS FOR THE FEDERAL LOW INCOME HOME 12
ENERGY ASSISTANCE PROGRAM. 13

(5) The [Department of Human Services] OFFICE may, with input from a 14
panel or roundtable of interested 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 19
other funds expended under this section. 20

(7) In a specific case, the electric universal service program may waive the 21
income eligibility l imitation under paragraph (1) of this subsection in 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

SENATE BILL 841 21

(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 t he customer may receive 3
assistance 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 11
returned to each customer class as a credit in the same proportion that the customer class 12
contributed 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 16
of the following purposes: 17

(i) bill assistance and the retirement of arrearages for customers 18
who 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 21
State 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

(8) The Commission may not assess the electric universal service 34
surcharge on a per kilowatt–hour basis. 35
22 SENATE BILL 841

(c) (1) On or before January 1 o f each year, the Commission shall report, 1
subject to § 2–1257 of the State Government Article, to the General Assembly on the electric 2
universal service program, including: 3

(i) subject to subsection (e) of this section, a recommendation on the 4
total amount of funds for the ELECTRIC UNIVERSAL SERVICE program for the following 5
fiscal year based on: 6

1. the level of participation in and the amounts expended on 7
bill assistance and arrearage retirement during the preceding fiscal year; 8

2. how bill assistance and arrearage retirement payments 9
were calculated during the preceding fiscal year; 10

3. the projected needs for the bill assistance and the 11
arrearage retirement components for the next fiscal year; and 12

4. the amount of any bill assistance or arrearage retirement 13
surplus carried over in the electric universal service program fund under subsection (f)(6)(i) 14
of this section; 15

(ii) for bill assistance, the total amount of need, as determined by the 16
Commission, for electric customers with annual incomes at or below 175% of the federal 17
poverty level and the basis for this determination; 18

(iii) the amount of funds needed, as determined by the Commission, 19
to retire arrearages for electric customers who have not received assistance in retiri ng 20
arrearages under the electric universal service program within the preceding 7 fiscal years, 21
and the basis for this determination; 22

(iv) the amount of funds needed, as determined by the Commission, 23
for bill assistance and arrearage retirement, respec tively, for customers for whom income 24
limitations may be waived under subsection (a)(7) of this section, and the basis for each 25
determination; 26

(v) the impact on customers’ rates, including the allocation among 27
customer classes, from collecting the total amount recommended by the Commission under 28
item (i) of this paragraph; and 29

(vi) the impact of using other federal poverty level benchmarks on 30
costs and the effectiveness of the electric universal service program. 31

(2) (i) To assist the Commissi on in preparing its recommendations 32
under paragraph (1) of this subsection, the Office [of Home Energy Programs] shall report 33
to the Commission each year on: 34

SENATE BILL 841 23

1. the number of customers and the amount of distributions 1
made to fuel customers under the Maryland Energy Assistance Program established under 2
[Title 5, Subtitle 5A of the Human Services Article] THIS SUBTITLE, identified by funding 3
source and fuel source; 4

2. the cost of outreach and education materials provided by 5
the Office [of Home Energy Programs] for the electric universal service program; and 6

3. the amount of money that the Department [of Human 7
Services] receives, and is projected to receive, for low–income energy assistance from: 8

A. the Maryland Strategic Energy Investment Fund under § 9
9–20B–05 of the State Government Article; 10

B. with respect to electric customers only, the Maryland 11
Energy Assistance Program; and 12

C. any other federal, State, local, or private source. 13

(ii) The Office [of Home Energy Programs] may satisfy the reporting 14
requirement of subparagraph (i)1 of this paragraph by providing the Commission with a 15
copy of material that contains the required information and that the Office [of Home 16
Energy Programs] submits to the federal government. 17

(iii) The Commission shall include the information provided by the 18
Office [of Home Energy Programs] under subparagraph (i) of this paragraph in its report 19
to the General Assembly under paragraph (1) of this subsection. 20

(3) Subject to subsection (d)(2) of this section, the Commission shall include 21
the information provided by the Department of Housing and Community Development 22
under subsection (d)(1) of this section in its report to the General Assembly under 23
paragraph (1) of this subsection. 24

(4) The electric universal service program shall be subject to audit by the 25
Office of Legislative Audits in accordance with §§ 2 –1220 through 2 –1227 of the State 26
Government Article. 27

(d) (1) On or before January 1 of each year, the Department of Housing and 28
Community Development shall report, in accordance with § 2 –1257 of the State 29
Government Article, to the General Assembly on the low –income residential 30
weatherization component of the electric universal service program, including: 31

(i) the amount of funds expended during the preceding fiscal year; 32

(ii) the level of participation during the preceding fiscal year, 33
including the number of households served in each area of the State; and 34
24 SENATE BILL 841

(iii) the types of projects, including the average cost per unit, 1
provided to households during the preceding fiscal year. 2

(2) The Department of Housing and Community Development may satisfy 3
the reporting requirement under paragraph (1) of this subsection by requesting the 4
Commission to include the information in the Com mission’s report required under 5
subsection (c) of this section and providing the information to the Commission by the date 6
specified by the Commission. 7

(e) The total amount of funds to be collected for the electric universal service 8
program each year shall be $37 million, allocated in the following manner: 9

(1) $27.4 million shall be collected from the industrial and commercial 10
classes; and 11

(2) $9.6 million shall be collected from the residential class. 12

(f) (1) In this subsection, “fund” means the electric universal service program 13
fund. 14

(2) There is an electric universal service program fund. 15

(3) (i) 1. The Comptroller shall collect the revenue collected by 16
electric companies under subsection (b) of this section and place the revenue into the fund. 17

2. The General Assembly may appropriate funds 18
supplemental to the funds collected under subsubparagraph 1 of this subparagraph. 19

(ii) The fund is a continuing, nonlapsing fund that is not subject to § 20
7–302 of the State Finance and Procurement Article. 21

(iii) The purpose of the fund is to assist electric customers as provided 22
in subsection (a)(1) of this section. 23

(4) The Department [of Human Services ], with oversight by the 24
Commission, shall disburse the bill assistance and arrearage re tirement funds in 25
accordance with the provisions of this section. 26

(5) The Comptroller annually shall disburse up to $1,000,000 of 27
low–income residential weatherization funds to the Department of Housing and 28
Community Development, as provided in the State budget. 29

(6) (i) At the end of a given fiscal year, any unexpended bill assistance 30
and arrearage retirement funds that were collected for that fiscal year shall be retained in 31
the fund and shall be made available for disbursement through the first 6 months of the 32
next fiscal year to customers who: 33
SENATE BILL 841 25

1. qualify for assistance from the fund during the given fiscal 1
year; 2

2. apply for assistance from the fund before the end of the 3
given fiscal year; and 4

3. remain eligible for assistance at th e time services are 5
provided. 6

(ii) If the Commission determines that an extension is needed, the 7
Commission may extend up to an additional 6 months the period in which unexpended bill 8
assistance and arrearage retirement funds may be made available for disbursement under 9
subparagraph (i) of this paragraph. 10

(iii) 1. Any bill assistance and arrearage retirement funds 11
collected for a given fiscal year that are retained under subparagraph (i) of this paragraph 12
and that remain unexpended at the end of the period allowed under subparagraphs (i) and 13
(ii) of this paragraph shall be returned to each customer class in the proportion that the 14
customer class contributed charges to the fund for the given fiscal year in the form of a 15
credit toward the charge assessed in the following fiscal year. 16

2. If the Commission determines that it is impractical to 17
establish a rate credit for the amount to be returned for a given fiscal year to customers 18
under subsubparagraph 1 of this subparagraph, the Commission: 19

A. may defer the return for not more than 2 additional fiscal 20
years; and 21

B. shall combine the returned amount for that fiscal year 22
with amounts to be returned for the following fiscal years when calculating the rate credit 23
for the final fiscal year of the period. 24

(g) (1) If a party to a merger or acquisition of an electric company or an affiliate 25
of an electric company is required to distribute a credit to the customers in the electric 26
company’s service territory under an agreement with the Commission in connection with 27
the merger or acquisition, the Commission shall consider the adequacy of the current 28
funding of the electric universal service program in providing assistance to customers who 29
qualify under this section. 30

(2) Any funds deposited into the electric universal service program fund as 31
a result of an agreement with the Commission in connection with a merger or acquisition 32
of an electric company or an affiliate of an electric company are in addition to, and may not 33
substitute for, funds collected under subsection (e) of this section. 34

26 SENATE BILL 841

(h) (1) An arrearage prevention program under subsection (b)(4)(iv) of this 1
section is intended to prevent or reduce arrearages for low –income customers who have 2
participated in a low–income residential weatherization program. 3

(2) (i) The ARREARAGE PREVENTION program is intended as a 4
one–time grant of money to establish ongoing arrearage prevention activities in the State. 5

(ii) The Department [of Human Services ], in consultation with the 6
Commission, will s elect for the ARREARAGE PREVENTION program up to two public or 7
private entities as program recipients to administer the program. 8

(iii) At least one ARREARAGE PREVENTION program recipient must 9
primarily serve customers in a major urban area of the State. 10

(3) [A] AN ARREARAGE PREVENTI ON program recipient must 11
demonstrate significant efforts to: 12

(i) secure additional private investment in rooftop solar 13
installation, including the use of ARREARAGE PREVENTION program money for credit 14
enhancement, direct project support, or support for program recipients and customers; and 15

(ii) provide employment in solar installation to unemployed and 16
underemployed individuals, with preference for those who reside in the l ocal jurisdiction 17
where the installations will occur. 18

(4) The ARREARAGE PREVENTION program may include the installation 19
of rooftop solar electricity generation equipment after energy efficiency measures at the 20
residential property have been completed. 21

Article – Local Government 22

1–1320. 23

(a) (1) In this section the following words have the meanings indicated. 24

(2) “Administration” means the Maryland Energy Administration. 25

(3) “Residential energy storage system” means a system, on a residential 26
customer’s side of the meter, used to store electrical energy, or mechanical, chemical, or 27
thermal energy that was once electrical energy, for use as electrical energy at a later date 28
or in a process that offsets electricity use at peak times. 29

(4) “Residential solar energy system” means any configuration of solar 30
energy devices that collects and distributes solar energy for the purpose of generating 31
electricity and that has a single residential interconnection with the electrical grid. 32

SENATE BILL 841 27

(5) “SOLAR PERMITTING FEE” MEANS A FEE EQUAL TO THE SUM OF 1
ALL CHARGES IMPOSED BY A COUNTY OR MUNIC IPALITY, INCLUDING CHARGES 2
IMPOSED BY A PROVIDER OF SOLAR PERMITTING SOFTWARE, IN CONNECTION WITH 3
AN APPLICATION FOR A RESIDENTIAL SOLAR ENERGY SYSTEM. 4

(6) “Solar permitting software” means[: 5

(i) the most recent version of a web –based platform, developed by 6
the National Renewable Energy Laboratory, that provides a standard portal for receiving 7
and processing residential solar energy system and residential energy storage system 8
permit information; or 9

(ii) automated software that functions to support the tracking and 10
approval of residential building permits for residential solar energy systems, residential 11
energy storage systems, main electrical panel upgrades, and main electrical panel devices] 12
SOFTWARE OR A COMBINATION OF SOFTWARE THAT: 13

(I) AUTOMATES PLAN REVIE W FOR RESIDENTIAL SO LAR 14
ENERGY SYSTEMS TO THE MOST RECENT VERSION OF, AS APPLICABLE: 15

1. THE MARYLAND BUILDING PERFORMANCE 16
STANDARDS; 17

2. THE NATIONAL ELECTRICAL CODE, INCLUDING 18
LEGALLY ADOPTED LOCAL AMENDMENTS; AND 19

3. THE STATE FIRE PREVENTION CODE; 20

(II) PRODUCES CODE–COMPLIANT APPROVALS; 21

(III) ISSUES A CODE–COMPLIANT PERMIT; 22

(IV) ACCEPTS ONLINE PAYME NTS FOR ANY PERMITTI NG FEES 23
IMPOSED; AND 24

(V) ISSUES PERMITS OR PE RMIT REVISIONS IMMED IATELY ON 25
RECEIPT OF ONLINE SUBMISSION OF PERMITTING FEE PAYMENTS, IF APPLICABLE. 26

(b) This section applies to all counties and municipalities. 27

(c) (1) Subject to subsection (d) of this section and except as provided in 28
subsection (e) of this section, on or before August 1, [2025] 2027, each county and 29
municipality shall implement solar permitting software for features supporting the 30
28 SENATE BILL 841

[tracking] APPLICATION SUBMISSION, TRACKING, and approval of residential building 1
permits for: 2

[(1)] (I) residential solar energy systems; 3

[(2)] (II) residential energy storage systems; 4

[(3)] (III) main electrical panel upgrades; and 5

[(4)] (IV) main electrical panel derates. 6

(2) (I) A COUNTY OR MUNICIPALITY SHALL: 7

1. SUBJECT TO PARAGRAPH (7) OF THIS SUBSECTION , 8
COMPLETE A REMOTE OR IN–PERSON INSPECTION RE QUIRED FOR A PROJECT 9
PERMITTED BY SOLAR P ERMITTING SOFTWARE W ITHIN 5 BUSINESS DAYS AFTER 10
RECEIPT OF A COMPLET E PERMIT APPLICATION, AS DETERMINED BY THE COUNTY 11
OR MUNICIPALITY; AND 12

2. MAKE PUBLICLY AVAILA BLE FOR THE MOST REC ENT 13
PREVIOUS QUARTER FOR WHICH DATA IS AVAILA BLE THE AVERAGE INSP ECTION 14
TIME FOR PROJECTS PERMITTED BY SOLAR PERMITTING SOFTWARE. 15

(II) BEGINNING JULY 1, 2028, IF A COUNTY OR MUNIC IPALITY 16
HAS HAD AN AVERAGE I N–PERSON INSPECTION TI ME THAT IS GREATER T HAN 5 17
BUSINESS DAYS, BASED ON THE IMMEDIATELY PRECEDING 12–MONTH PERIOD, THE 18
COUNTY OR MUNICIPALI TY SHALL MAKE AVAILA BLE AN OPTION FOR RE MOTE 19
INSPECTION THAT IS CAPABLE OF PROVID ING INSPECTION , SUBJECT TO 20
PARAGRAPH (7) OF THIS SUBSECTION, WITHIN 5 BUSINESS DAYS AFTER RECEIPT OF 21
A COMPLETE PERMIT APPLICATION. 22

(3) A COUNTY OR MUNICIPALI TY SHALL REQUIRE AS PART OF A 23
COMPLETE PERMIT APPLICATION: 24

(I) THIRD–PARTY CERTIFICATION T HAT THE PROJECT HAS 25
BEEN INSTALLED IN AC CORDANCE WITH ALL APPLICABLE NATIONAL ELECTRICAL 26
CODE STANDARDS AND STATE AND LOCAL CODE AND SAFETY REQUIREMENTS; AND 27

(II) PLANS DEMONSTRATING: 28

1. ADEQUATE ROOF ACCESS AND SETBACK 29
REQUIREMENTS; 30

SENATE BILL 841 29

2. CLEARLY IDENTIFIED E MERGENCY SHUTOFF 1
LOCATIONS; AND 2

3. LABELING CONSISTENT WITH APPLICABLE SAFE TY 3
STANDARDS. 4

(4) A COUNTY OR MUNICIPALI TY WITH AUTHORITY OV ER 5
PERMITTING A RESIDEN TIAL SOLAR ENERGY SY STEM MAY PERFORM , AT THE 6
COUNTY’S O R MUNICIPALITY ’S DISCRETION , AN IN –PERSON INSPECTION FO R A 7
PERMIT APPLICATION SUBMITTED THROUGH SOLAR PERMITTING SOFTWARE: 8

(I) IF REMOTE INSPECTION IS UNABLE TO BE COMPLETED; 9

(II) ON REQUEST OR CONCERN OF AN INSPECTOR; 10

(III) IF SUFFICIENT DATA IS NOT AVAILABLE TO EVALUATE THE 11
PERMIT APPLICATION; OR 12

(IV) IF A DOCUMENTED HEALTH OR SAFETY ISSUE EXISTS. 13

(5) REVIEW OF A PERMIT AP PLICATION TO INSTALL A RESIDENTIAL 14
SOLAR ENERGY GENERAT ING SYSTEM THAT IS S UBMITTED USING SOLAR 15
PERMITTING SOFTWARE SHALL BE LIMITED TO A DETERMINATION OF WHETHER THE 16
APPLICATION MEETS ALL APPLICABLE NATIONAL ELECTRICAL CODE STANDARDS 17
AND STATE AND LOCAL CODE, HEALTH, AND SAFETY REQUIREMENTS. 18

(6) (I) SUBJECT TO SUBPARAGRA PH (II) OF THIS PARAGRAPH , A 19
COUNTY OR MUNICIPALITY USING SOLAR PERMITTING SOFTWARE MAY CONDUCT A 20
MANUAL REVIEW OF SOFTWARE–APPROVED PERMITS TO: 21

1. PERFORM QUALITY–ASSURANCE AUDITS; 22

2. REVIEW SUBMISSIONS FLAGGED BY THE SOFTWARE; 23

3. REVIEW PERMIT APPLIC ATIONS SUBMITTED BY A 24
PERSON THAT HAS REPEATEDLY FAILE D TO OBTAIN REQUIRED PERMITS OR 25
REPEATEDLY FAILED TO PASS PERMIT INSPECTIONS; 26

4. CONSIDER PERMIT APPL ICATIONS WITH 27
NONSTANDARD STRUCTURAL CONDITIONS; OR 28

5. ADDRESS DOCUMENTED PUBLIC SAFETY CONCERNS. 29

30 SENATE BILL 841

(II) MANUAL REVIEW OF S OFTWARE–APPROVED PERMITS 1
SHALL BE COMPLETED WITHIN 5 BUSINESS DAYS AFTER THE PERMIT IS APPROVED. 2

(7) (I) A COUNTY OR MUNICIPALITY MAY EXTEND THE DEADLINES 3
ESTABLISHED UNDER PA RAGRAPH (2) OF THIS SUBSECTION I F THE COUNTY OR 4
MUNICIPALITY DETERMI NES THAT A N EXTENSION IS NECES SARY TO ADDRESS 5
DOCUMENTED SAFETY CONCERNS. 6

(II) ON REQUEST BY A COUNT Y OR MUNICIPALITY , A FIRE 7
MARSHAL OR DESIGNATE D SAFETY COORDINATOR MAY REVIEW A PROJECT 8
PERMITTED BY SOLAR P ERMITTING SOFTWARE D URING AN EXTENSION U NDER 9
SUBPARAGRAPH (I) OF THIS PARAGRAPH. 10

(8) (I) THIS PARAGRAPH APPLIES ONLY TO A RESIDENTIAL SOLAR 11
ENERGY SYSTEM: 12

1. THAT IS OR WILL BE I NSTALLED ON A RESIDE NTIAL 13
ROOFTOP; AND 14

2. WITH A GENERATING CA PACITY OF LESS THAN 30 15
KILOWATTS, AS MEASURED BY THE A LTERNATING CURRENT RAT ING OF THE 16
SYSTEM’S INVERTER. 17

(II) EXCEPT AS PROVIDED IN SUBPARAGRAPH (III) OF THIS 18
PARAGRAPH, BEGINNING AUGUST 1, 2027, A COUNTY OR MUNICIPA LITY MAY NOT 19
SET A PERMITTING FEE FOR PERMITS ISSUED B Y SOLAR PERMITTING S OFTWARE 20
THAT EXCEEDS $500 FOR RESIDENTIAL SOLAR ENERGY SYSTEMS. 21

(III) A THIRD–PARTY PAYMENT PROCES SING CHARGE MAY BE 22
ASSESSED FOR PERMITS ISSUED BY SOLAR PERMITTING SOFTWARE IN ADDITION TO 23
THE MAXIMUM PERMITTING FEE UNDER SUBPARAGRAPH (II) OF THIS PARAGRAPH. 24

(9) AN INSPECTOR MAY REVIEW CONSTRUCTION DOCUMENTS THAT 25
ARE PRODUCED BY THE SOLAR PERMITTING SOFTWARE. 26

(10) NOTWITHSTANDING ANY O THER PROVISION OF TH IS 27
SUBSECTION, A RESIDENTIAL SOLAR ENERGY SYSTEM OR RES IDENTIAL ENERGY 28
STORAGE SYSTEM MAY N OT BE PUT INTO OPERA TION UNTIL THE COUNT Y OR 29
MUNICIPALITY PERFORM S A FINAL SAFETY INS PECTION TO CONFIRM T HAT THE 30
SYSTEM IS IN COMPLIA NCE WITH ALL APPLICA BLE NATIONAL ELECTRICAL CODE 31
STANDARDS AND STATE AND LOCAL CODE, HEALTH, AND SAFETY REQUIREMENTS. 32

SENATE BILL 841 31

(d) A county or municipality may not be required to comply with the requirements 1
of subsection (c) of this section if: 2

(1) the county or municipality does not require a permit for: 3

(i) residential solar energy systems; or 4

(ii) residential solar energy systems p aired with a residential solar 5
energy storage system; or 6

(2) as determined by the Administration, the automated software is no 7
longer updated or maintained. 8

(e) The Administration shall delay the initial implementation or suspend the 9
requirements of subsection (c) of this section if there are insufficient State or federal funds 10
available to the Administration to provide financial support to a county or municipality 11
implementing solar permitting software as defined in subsection (a)(5)(i) of this section. 12

(F) AN ELECTRIC COMPANY, OTHER THAN A MUNICIPAL ELECTRIC UTILITY 13
OR A THIRD –PARTY CONTRACTOR FOR THE ELECTRIC COMPANY, SHALL PERFORM 14
ANY METER DISCONNECT ION AND RECONNECTION NECESSARY FOR THE 15
INTERCONNECTION OF A RESIDENTIAL SOLAR EN ERGY SYSTEM , RESIDENTIAL 16
ENERGY STORAGE SYSTEM, OR BOTH, WITHIN 5 BUSINESS DAYS AFTER RECEIVING A 17
PROPERLY COMPLETED REQUEST FROM THE OWNER OR INSTALLER OF THE SYSTEM. 18

(G) (1) ON OR BEFORE JANUARY 31, 2028, AND EACH JANUARY 31 19
THEREAFTER, EACH COUNTY AND MUNI CIPALITY SHAL L SUBMIT AN ANNUAL 20
REPORT TO THE ADMINISTRATION DETAIL ING THE TOTAL NUMBER OF PERMITS 21
ISSUED BY THE COUNTY OR MUNICIPALITY FOR RESIDENTIAL SOLAR EN ERGY 22
SYSTEMS FOR THE IMMEDIATELY PRECEDING YEAR. 23

(2) THE ADMINISTRATION, IN CONSULTATION WITH EACH COUNTY 24
OR MUNICIPALITY THAT SUBMITS A REPORT UND ER PARAGRAPH (1) OF THIS 25
SUBSECTION, SHALL USE THE INFORMATION PROVIDED UNDER PARAGRAPH (1) OF 26
THIS SUBSECTION TO PREPARE AN ANNUAL REPORT DETAILING THE TOTAL NUMBER 27
OF PERMITS ISSUED FOR RESIDENTIAL SOLAR ENERGY SYSTEMS IN THE STATE FOR 28
THE IMMEDIATELY PRECEDING YEAR. 29

(3) ON OR BEFORE MARCH 31, 2028, AND EACH MARCH 31 30
THEREAFTER, THE ADMINISTRATION SHALL SUBMIT THE REPORT PR EPARED 31
UNDER PARAGRAPH (2) OF THIS SUBSECTION TO THE GENERAL ASSEMBLY AND THE 32
SENATE COMMITTEE ON EDUCATION, ENERGY, AND THE ENVIRONMENT IN 33
ACCORDANCE WITH § 2–1257 OF THE STATE GOVERNMENT ARTICLE. 34

32 SENATE BILL 841

(H) THE ATTORNEY GENERAL MAY SEEK JUDICIAL ENFORCEMENT AGAINST 1
A COUNTY OR MUNICIPALITY THAT FAILS TO COMPLY WITH THIS SECTION. 2

Article – Public Utilities 3

3–106. 4

(a) If a person timely files, the person may apply to intervene in a proceeding 5
before the Commission. 6

(b) The Commission shall grant leave to intervene unless the Commission 7
concludes that: 8

(1) the parties to the proceeding adequa tely represent the interest of the 9
person seeking to intervene; or 10

(2) the issues that the person seeks to raise are irrelevant or immaterial. 11

(c) (1) An intervenor has all the rights of a party to a proceeding. 12

(2) In a proceeding before the Commission, an individual who is an 13
intervenor may represent himself or herself. 14

4–203.1. 15

(A) (1) THIS SECTION APPLIES ONLY TO A PUBLIC SER VICE COMPANY 16
THAT IS AN INVESTOR –OWNED ELECTRIC COMPA NY, A GAS COMPANY , OR A 17
COMBINATION GAS AND ELECTRIC COMPANY. 18

(2) THIS SECTION DOES NOT APPLY TO A MUNICIPAL ELECTRIC 19
UTILITY OR AN ELECTRIC COOPERATIVE. 20

(B) IN ADDITION TO THE RE QUIREMENTS IN § 4–203 OF THIS SUBTITLE , 21
WHEN A PUBLIC SERVICE COMPANY INITIATES A PROCEEDING THAT MAY LEAD TO A 22
RATE CHANGE , THE PUBLIC SERVICE COMPANY SHAL L INCLUDE ON EACH 23
CUSTOMER’S BILL A LINK TO THE APPLICABLE CASE OR DOCKET NUMBER FOR THE 24
PROCEEDING. 25

4–212. 26

(a) (1) In this section the following words have the meanings indicated. 27

(2) “Contract capacity ” means the amount of month ly peak load 28
requirements: 29

SENATE BILL 841 33

(i) that is mutually agreed to by an electric company and a large 1
load customer for each month remaining in a contract term after the load ramp period has 2
ended; and 3

(ii) for which: 4

1. the electric company agrees to provide all of the 5
components of retail electric service subject to the terms and conditions in its tariffs; and 6

2. the large load customer agrees to purchase service at that 7
load level for the stated term of the contract and under the same terms and conditions as 8
those stated in the contract. 9

(3) “Large load customer” [means a commercial or industrial customer for 10
retail electric service that: 11

(i) has or is projected to have an aggregate monthly demand of at 12
least 100 megawatts; and 13

(ii) has or is projected to have a load factor of over 80% ] HAS THE 14
MEANING STATED IN § 7–232 OF THIS ARTICLE. 15

(4) “Load ramp period ” means the period of time from commencement of 16
service until a large load customer’s billing calculation is based on the full contract capacity. 17

(b) It is the intent of the General Assembly that residential retail electric 18
customers in the State should not bear the financial risks associated with large load 19
customers interconnecting to the electric system serving the State. 20

(c) (1) (i) On or before September 1, 2026, each investor –owned electric 21
company and each electric cooperative shall submit to the Commission for approval a 22
specific rate schedule for large load customers that accomplishes the intent of subsection 23
(b) of this section. 24

(ii) Each municipal electric utility that receives an application for 25
retail electric service from a large load customer shall submit to the Commission for 26
approval a specific rate schedule for large load customers. 27

(2) (i) Service under a specific rate schedule shall be available to large 28
load customers that will use, within the initial contract term: 29

1. a monthly maximum demand of more than [100] 25 30
megawatts at a single location; or 31

2. an aggregated contract capacity in the electric company’s 32
service territory of more than [100] 25 megawatts. 33

34 SENATE BILL 841

(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: 7

1. the facility of an existing large load customer that has 8
signed a service agreement before the effective date of the schedule if: 9

[1.] A. the large load customer ’s existing load does not 10
expand by more than 25 megawatts at that facility under the existing service agreement; 11
or 12

[2.] B. the large load customer does not sign a new service 13
agreement to expand the facility ’s load by more than 25 megawatts above the contract 14
capacity of the existing service agreement; OR 15

2. ELECTRIFIED THERMAL ENERGY GENERATION 16
ASSETS INTERCONNECTED WITH A DISTRICT EN ERGY SYSTEM IF , AS DETERMINED 17
BY THE COMMISSION, THE OPERATIONAL CHARACTERISTICS OF THE G ENERATION 18
ASSETS DO NOT POSE A MATERIAL RELIABILITY RISK. 19

(d) In making a determination on whether to approve a specific rate schedule 20
submitted under subsection (c) of this section, the Commission shall consider whether the 21
rate schedule: 22

(1) requires a large load customer to cover the just and reasonable costs 23
associated with any electric transmission or distribution system buildout required to: 24

(i) interconnect the large load customer to the electric system 25
serving the State; or 26

(ii) serve the large load customer; 27

(2) protects residential retail electric customers from the financial risks 28
associated with large load customers through the use of: 29

(i) load ramp periods; 30

(ii) minimum billing demand for electric distribution and 31
transmission service that is a high percentage of a large load customer’s contract capacity; 32
SENATE BILL 841 35

(iii) long–term contractual commitments and exit fees; 1

(iv) guarantee or collateral requirements; and 2

(v) penalties and reimbursement requirements for the large load 3
customer if the large load customer delays or cancels a project after the electric company 4
has begun buildout to accommodate the large load customer; [and] 5

(3) ALLOCATES TO THE LARGE LOAD CUSTOMER: 6

(I) ANY INCREASED OR AVO IDED COSTS THAT THE 7
COMMISSION DETERMINES HAVE BEEN CAUSED BY A LARGE LOAD CUSTOME R, 8
INCLUDING ANY INCREASED OR AVOIDED WHOLESALE COSTS SUCH AS: 9

1. TRANSMISSION COSTS; AND 10

2. CAPACITY COSTS; AND 11

(II) NOTWITHSTANDING § 4–503(B) OF THIS TITLE AND AS 12
AUTHORIZED UNDER FED ERAL LAW, ANY DIRECT OR INDIRE CT COSTS, FEES, AND 13
OBLIGATIONS THAT ARE NORMALLY APPLIED TO RETAIL ELECTRIC CUSTOMERS IN 14
THE SERVICE TERRITOR Y IN WHICH THE LARGE LOAD CUSTOMER IS LOC ATED OR 15
INTERCONNECTED IF TH E COMMISSION DETERMINES THAT THE DIRECT OR 16
INDIRECT COSTS , FEES, AND OBLIGATIONS SHOU LD BE ATTRIBUTABLE T O THE 17
LARGE LOAD CUSTOMER; AND 18

[(3)] (4) sufficiently ensures that the allocation of costs to large load 19
customers under the schedule does not result in customers that are not large load 20
customers unreasonably subsidizing the costs of large load customers under the schedule. 21

(e) IT IS THE INTENT OF T HE GENERAL ASSEMBLY THAT THE COS TS 22
ALLOCATED TO A LAR GE LOAD CUSTOMER IN ACCORDANCE WITH SUBS ECTION 23
(D)(3) OF THIS SECTION INCLUDE COSTS THAT A RE INCURRED BY A LAR GE LOAD 24
CUSTOMER THAT IS NOT PROVIDING 100% OF ITS CAPACITY AND ARE ASSOCIATED 25
WITH: 26

(1) CAPACITY PROCUREMENT , INCLUDING BACKSTOP R ELIABILITY 27
PROCUREMENT; AND 28

(2) COSTS ASSOCIATED WITH THE INTERCONNECTION PROCESS. 29

36 SENATE BILL 841

(F) Before signing a contract for service under a specific rate schedule submitted 1
under subsection (c) of this section, a large load customer under the schedule is required 2
to: 3

(1) submit a request for a load study to determine the necessary contract 4
capacity for the large load customer and pay any applicable fees associated with the study; 5

(2) designate a specific site where the large load customer’s project will be 6
constructed and served by the electric company; 7

(3) own or have the exclusive right to use the land designated in item (2) of 8
this subsection for the project; and 9

(4) meet any other requirements specified under the rate schedule. 10

[(f)] (G) (1) On o r before June 1, 2026, the Commission shall adopt 11
regulations to carry out this section. 12

(2) The regulations shall: 13

(i) establish minimum notice requirements and deadlines related to 14
load study requests and contract terminations and adjustments; 15

(ii) if considered necessary by the Commission, specify common 16
forms of acceptable collateral to satisfy the requirements of this section; and 17

(iii) establish deadlines related to completion of load studies and 18
payment of fees. 19

4–213. 20

(a) This section applies only to a public service company that is an electric 21
company, gas company, or combination gas and electric company. 22

(b) Unless otherwise authorized by law, the Commission may approve the use of 23
a multiyear rate plan for distribution base rates only if the plan: 24

(1) demonstrates the customer benefits of the investment; and 25

(2) does not allow for: 26

(I) the public service company to file for reconciliation of cost or 27
revenue variances of the approved revenue component used by the Commission to establish 28
just and reasonable rates IF THE RECONCILIATIO N WOULD RESULT IN AD DITIONAL 29
CHARGES TO CUSTOMERS; OR 30

SENATE BILL 841 37

(II) THE USE OF COST –SHARING MECHANISMS T HAT WOULD 1
RESULT IN ADDITIONAL CHARGES TO CUSTOMERS ABOVE THE APPROVED REVENUE 2
COMPONENT USED BY THE COMMISSION TO ESTABLI SH JUST AND REASONAB LE 3
RATES. 4

(c) A public service company that files or has filed an application for a multiyear 5
rate plan may not subsequently file for reconciliation of cost or revenue variances [of] THAT 6
WOULD RESUL T IN ADDITIONAL CHAR GES TO CUSTOMERS DUE TO THE PUBLIC 7
SERVICE COMPANY SPEN DING MORE THAN the approved revenue component used by 8
the Commission to establish the multiyear rates unless the filing for reconciliation was 9
made on or before January 1, 2025. 10

(D) THE COMMISSION MAY REQUIR E A PUBLIC SERVICE C OMPANY TO 11
INCLUDE A RECONCILIATION PROCEDURE IN ITS MULTIYEAR RATE PLAN TO REFUND 12
CUSTOMERS THE DIFFERENCE BETWEEN: 13

(1) THE PUBLIC SERVICE C OMPANY’S FORECAST REVENUE 14
REQUIREMENT; AND 15

(2) THE PUBLIC SERV ICE COMPANY ’S ACTUAL REVENUE 16
REQUIREMENT DURING THE TERM OF THE MULTIYEAR RATE PLAN. 17

(E) IF APPROVED BY THE COMMISSION, A RECONCILIATION PRO CEDURE 18
REQUIRED UNDER SUBSE CTION (D) OF THIS SECTION SHAL L INCLUDE A 19
PERFORMANCE INCENTIV E MECHANISM FOCUSED ON AF FORDABILITY AND COST 20
CONTAINMENT. 21

4–309. 22

(a) (1) In this section the following words have the meanings indicated. 23

(2) “Eligible limited–income customer” means a residential customer of a 24
utility company with annual income that: 25

(i) 1. is at or below 175% of the federal poverty level; or 26

2. for a customer at least 67 years of age, is at or below 200% 27
of the federal poverty level; or 28

(ii) meets a broader designation approved by the Commission. 29

(3) “Limited–income mechanism ” or “mechanism” means a process 30
approved by the Commission under this section to benefit an eligible limited –income 31
customer of a utility company. 32

38 SENATE BILL 841

(4) “Payment plan ” means an agreement between an eligible 1
limited–income customer and a utility company to pay an arrearage balance over a specific 2
period of time to avoid disconnection of a utility service. 3

(5) (i) “Utility company” means an electric company, a gas and electric 4
company, or a gas company. 5

(ii) “Utility company ” does not include a small rural elect ric 6
cooperative. 7

(b) The General Assembly finds and declares that the societal benefits of a 8
well–constructed limited–income mechanism to benefit Maryland’s eligible limited–income 9
customers are in the public interest. 10

(c) (1) Subject to the approval of the Commission, a utility company shall 11
adopt a limited–income mechanism to benefit an eligible limited–income customer. 12

(2) Notwithstanding § 4–503(b) of this title, the mechanism may take the 13
form of a program, tariff provision, credit, rate, rider , or other means to assist an eligible 14
limited–income customer to afford a utility service. 15

(3) A municipal electric utility may adopt a limited –income mechanism 16
subject to the approval of the Commission in the same manner as a utility company in 17
accordance with this section. 18

(d) (1) A utility company that proposes a limited –income mechanism for 19
Commission approval under subsection (c) of this section shall include the proposal in: 20

(i) a separate application for approval of the mechanism; or 21

(ii) only with the prior approval of the Commission, an application 22
for a base rate proceeding, including an alternative rate proceeding, or any other proceeding 23
to alter the utility company’s base rates under the authority of the Commission. 24

(2) A proposal submitted under this section shall allocate the prudently 25
incurred costs of the limited–income mechanism across rate classes. 26

(3) The proposal shall include: 27

(i) a detailed description of the proposed mechanism; 28

(ii) the proposed method for allocating the mechanism’s costs across 29
customer classes; 30

(iii) the rationale supporting the utility company ’s proposal for a 31
mechanism to benefit the eligible limited–income customers in the utility company’s service 32
territory; 33
SENATE BILL 841 39

(iv) a time frame and process for the Commission to review the 1
effectiveness of the mechanism after implementation; and 2

(v) any other information the Commission considers necessary or 3
useful to evaluate the proposal. 4

(e) In evaluating a limited–income mechanism, the Commission shall consider: 5

(1) the degree to which the mechanism promotes affordability of electricity 6
or natural gas for limited–income customers; 7

(2) the public interest in allocating the costs of the mechanism between the 8
utility company’s shareholders and rate payers; 9

(3) the impact on rates, utility operating costs, customer arrearages, 10
customer disconnections, uncollectible costs, and successful completion of payment plans; 11

(4) the ability of a limited–income customer to continue to receive benefits 12
when relocating within the same service territory; 13

(5) coordination of benefits under the mechanism with any other public or 14
private assistance that may be available to the customer; 15

(6) a minimum level of support or assistance structure to provide equitable 16
availability of limited–income assistance across the State; and 17

(7) any other information the Commission considers appropriate. 18

(f) (1) THE COMMISSION SHALL TAKE FINAL ACTION ON A PR OPOSAL 19
SUBMITTED UNDER THIS SECTION AS SOON AS PRACTICABLE. 20

(2) THE COMMISSION SHALL REQU IRE EACH UTILITY COM PANY TO 21
IMPLEMENT AN APPROVE D LIMITED –INCOME MECHANISM AS SOON AS 22
PRACTICABLE. 23

(G) If an approved limited –income mechanism requires that the Office of Home 24
Energy Programs must certify an elig ible limited –income customer ’s qualifications to 25
participate in a limited –income mechanism, the Office shall certify an eligible 26
limited–income customer ’s qualifications before the customer may participate in the 27
mechanism. 28

[(g)] (H) An eligible limited–income customer who participates in a mechanism 29
under this section may also be eligible for other assistance programs offered in the State, 30
including those offered by a utility company or the Office of Home Energy Programs, the 31
Department of Housing and Community Development, or any other public or private 32
40 SENATE BILL 841

source. 1

4–504. 2

(A) (1) IN THIS SECTION THE F OLLOWING WORDS HAVE THE MEANINGS 3
INDICATED. 4

(2) (I) “BONUS” MEANS A FORM OF DIRE CT OR INDIRECT 5
PAYMENT, CONSIDERATION, OR COMPENSATION THAT IS PAID OR CONVEYED TO AN 6
EMPLOYEE EXECUTIVE OFFICER OF A PUBLIC SERVICE COMPANY IN ADDITION TO 7
THE EMPLOYEE’S EXECUTIVE OFFICER’S BASE PAY. 8

(II) “BONUS” INCLUDES: 9

1. COMPENSATION THAT TH E PUBLIC SERVICE 10
COMPANY DOES NOT FORMALLY LABEL AS A BONUS PAYMENT; 11

2. ANY FORM OF INCENTIV E COMPENSATION THE F ACT 12
AND AMOUNT OF WHICH IS UNDER THE DISCRET ION OF THE PUBLIC SE RVICE 13
COMPANY UNTIL A TIME CLOSE TO THE END OF THE PERIOD FOR WHICH THE 14
INCENTIVE PAYMENT IS PAID; AND 15

3. PAYMENTS GIVEN IN ADDITION TO BASE PAY THAT 16
ARE CONTINGENT ON THE OCCURRENCE OF ONE OR MORE EVENTS OR CONDITIONS. 17

(3) (I) “COMPENSATION” MEANS A FORM OF PAYM ENT OR 18
CONSIDERATION CONVEYED TO OR FOR THE BENEFIT OF AN EMPLOYEE EXECUTIVE 19
OFFICER OF A PUBLIC SERVICE COMPANY, THE PARENT COMPANY O F A PUBLIC 20
SERVICE COMPANY, OR ANY OTHER AFFILIA TE OF A PUBLIC SERVI CE COMPANY IN 21
CONNECTION WITH THE EMPLOYEE’S EXECUTIVE OFFICER’S WORK FOR A PUBLIC 22
SERVICE COMPANY. 23

(II) “COMPENSATION” INCLUDES: 24

1. DIRECT AND INDIRECT METHODS OF CONFERRIN G 25
BENEFITS; 26

2. CASH AND NONCASH BENEFITS; 27

3. SALARY, BONUSES, PERIOD PAYMENTS , AND 28
SEVERANCE PAY; AND 29

SENATE BILL 841 41

4. THE VALUE OF A PERQU ISITE, COMPENSATORY OR 1
PAID LEAVE, OR OTHER BENEFIT NOT EXCLUDED UNDER SUBPA RAGRAPH (III) OF 2
THIS PARAGRAPH. 3

(III) “COMPENSATION” DOES NOT INCLUDE ANY EXPENDITURE 4
OF A PUBLIC SERVICE COMPANY FOR HEALTH, MEDICAL, DENTAL, VISION, OR LIFE 5
INSURANCE OR DISABILITY PAY. 6

(4) “OFFICER” MEANS AN EMPLOYEE OF A PUBLIC SERVICE 7
COMPANY, THE PARENT COMPANY OF A PUBLIC SERVICE COMPANY, OR ANY OTHER 8
AFFILIATE OF A PUBLIC SERVICE COMPANY WHO: 9

(I) USING THE EMPLOYEE’S INDEPENDENT JUDGMENT: 10

1. IS AUTHORIZED BY THE EMPLOYEE’S EMPLOYER TO 11
HIRE, TRANSFER, SUSPEND, LAY OFF , RECALL, PROMOTE, DISCHARGE, ASSIGN, 12
REWARD, OR DISCIPLINE OTHER EMPLOYEES; 13

2. IS RESPONSIBLE FOR D IRECTING THE WORK 14
PERFORMANCE OF OTHER EMPLOYEES; AND 15

3. IS RESPONSIBLE FOR R ESPONDING TO EMPLOYE E 16
COMPLAINTS; OR 17

(II) IS EMPLOYED IN A BONA FIDE EXECUTIVE CAPACITY UNDER 18
THE FEDERAL FAIR LABOR STANDARDS ACT. 19

(4) “EXECUTIVE OFFICER” HAS THE MEANING STATED IN § 12–401 OF 20
THE FINANCIAL INSTITUTIONS ARTICLE. 21

[(a)] (B) This section applies only to a public service company that is an 22
investor–owned electric company, gas company, or combination gas and electric company. 23

[(b)] (C) A public service company may not recover through rates any costs 24
associated with: 25

(1) membership, dues, sponsorships, or contributions to an industry trade 26
association, group, or related entity exempt from taxation under § 501(c)(6) of the Internal 27
Revenue Code; [or] 28

(2) the acquisition, use, or allocation of costs associated with a private 29
plane that is owned or leased by the public service company or its holding company; OR 30

42 SENATE BILL 841

(3) COMPENSATION FOR AN EXECUTIVE OFFICER THAT EXCEEDS 1
110% OF THE MAXIMUM ANNUA L SALARY PAYABLE TO THE CHAIR OF THE 2
COMMISSION FOR THE SAME CALENDAR YEAR. 3

(D) (1) THE BOARD OF DIRECTOR S OF EACH PUBLIC SER VICE COMPANY 4
SHALL ADOPT A COMPANY–WIDE POLICY PLACING REASONABLE COST LIMITATIONS, 5
IN ACCORDANCE WITH G UIDANCE PUBLISHED BY THE COMMISSION UNDER 6
PARAGRAPH (2) OF THIS SUBSECTION , ON EXPENDITURES THAT THE PUBLIC 7
SERVICE COMPANY INTENDS TO RECOVER THROUGH RATES FOR: 8

(I) ENTERTAINMENT AND EVENTS; 9

(II) OFFICE AND FACILITY RENOVATIONS; 10

(III) TRANSPORTATION SERVICES, INCLUDING AVIATION; 11

(IV) STAFF DEVELOPMENT ACTIVITIES OR EVENTS; 12

(V) PERFORMANCE INCENTIVES; AND 13

(VI) OTHER ACTIVITIES OUT SIDE THE SCOPE OF TH E NORMAL 14
COURSE OF BUSINESS OPERATIONS. 15

(2) THE COMMISSION SHALL PUBL ISH GUIDANCE DEFININ G 16
“REASONABLE COST LIMITATIONS” FOR EXPENDITURES UNDER THIS SUBSECTION. 17

(3) EACH PUBLIC SERVICE C OMPANY SHALL SEND A COPY OF THE 18
POLICY ADOPTED UNDER PARAGRAPH (1) OF THIS SUBSECTION T O THE 19
COMMISSION: 20

(I) AS SOON AS PRACTICABLE; AND 21

(II) EACH TIME THE POLICY IS UPDATED, BUT NOT LESS OFTEN 22
THAN EVERY 5 YEARS. 23

7–103. 24

(a) An electric company incorporated in Maryland may: 25

(1) manufacture, sell, and furnish electric power in any mu nicipal 26
corporation or county of the State; 27

(2) construct a power line to transmit power under, along, on, or over the 28
roadways or public ways of any municipal corporation or county of the State; and 29
SENATE BILL 841 43

(3) connect the power line from the place of suppl y to any other structure 1
or object. 2

(b) (1) An electric company must have the consent of the governing body of the 3
municipal corporation or county before laying or constructing any power line in accordance 4
with subsection (a) of this section. 5

(2) The governing body of the municipal corporation or county may adopt 6
reasonable regulations and conditions for the laying of a power line, including regulations 7
requiring the electric company to refill and repave any roadway or public way under which 8
the power line is laid. 9

(C) A PERSON THAT OWNS OR OPERATES A TRANSMISS ION LINE THAT IS 10
DESIGNED TO CARRY A VOLTAGE IN EXCESS OF 69,000 VOLTS AND IS LOCATED IN 11
THE STATE SHALL PARTICIPA TE AS A MEMBER IN A REGIONAL TRANSMISSIO N 12
ORGANIZATION. 13

7–204. 14

(a) IN THIS SECTION , “CONSTRUCTION” HAS THE MEANING STAT ED IN § 15
7–207 OF THIS SUBTITLE. 16

(B) (1) Notwithstanding any other provision of this division, at least 30 days 17
before a hearing, a public service company shall provide to each owner of land and each 18
owner of adjacent land, by certified mail, written notice of intent to run a line or similar 19
transmission device over, on, or under the land. 20

(2) AT THE SAME TIME A PE RSON APPLIES FOR A C ERTIFICATE OF 21
PUBLIC CONVENIENCE A ND NECESSITY FOR THE CONSTRUCTION OF A 22
TRANSMISSION LINE UN DER § 7–207 OR § 7–208 OF THIS SUBTITLE , THE 23
COMMISSION SHALL PROV IDE, OR DIRECT THE PERSON APPLYING FOR A 24
CERTIFICATE OF PUBLIC CONVENIENCE AND NECESSITY TO PROVIDE, BY CERTIFIED 25
MAIL, NOTICE OF INTENT TO RUN A LINE OR SIMILAR TRANSMISSION DEVICE OVER, 26
ON, OR UNDER THE LAND TO: 27

(I) EACH OWNER OF LAND THAT ABUTS THE PROPERTY WHERE 28
THE CONSTRUCTION IS PLANNED; AND 29

(II) FOR CONSTRUCTION OF AN OVERHEAD TRANSMIS SION 30
LINE, EACH OWNER OF LAND AND EACH OWNER OF ADJACENT LAND. 31

(3) NOTICE PROVIDED UNDER THIS SUBSECTION SHALL ADVISE THE 32
RECIPIENT OF: 33

44 SENATE BILL 841

(I) ANY APPLICABLE RIGHT TO FILE AS AN INTERVENOR IN THE 1
PROCEEDING IN ACCORDANCE WITH § 3–106 OF THIS ARTICLE; 2

(II) THE PROCESS FOR FILI NG AS AN INTERVENOR IN THE 3
PROCEEDING, INCLUDING THE METHOD FOR FILING AND THE LOCATION WHERE THE 4
FILING IS REQUIRED TO BE SUBMITTED; 5

(III) THE DATE AND TIME BY WHICH THE RECIPIENT IS 6
REQUIRED TO FILE AS AN INTERVENOR IN ORDER TO BE CONSIDERED TIMELY; AND 7

(IV) CONTACT INFORMATION FOR TH E COMMISSION AND THE 8
WEBSITE WHERE THE RE CIPIENT MAY OBTAIN A DDITIONAL INFORMATIO N 9
REGARDING INTERVENTION RIGHTS AND PROCEDURES. 10

[(2)] (C) The public service company shall determine the property owners 11
from the current tax assessment records of the political subdivision in which the property 12
is located. 13

[(b) Unless the failure is willful or deliberate, the failure of a public service 14
company to provide notice does not invalidate a public hearing or require that another 15
hearing take place.] 16

(D) IF THE COMMISSION FINDS THAT A PERSON DIRECTED TO PROVIDE 17
NOTICE UNDER SUBSECTION (B)(2) OF THIS SECTION FAILS TO PROVIDE NOTICE IN 18
ACCORDANCE WITH THIS SECTION: 19

(1) THE PUBLIC HEARING I S INVALIDATED AND AN OTHER HEARING 20
MUST TAKE PLACE IF THE FAILURE IS WILLFUL OR DELIBERATE; OR 21

(2) THE COMMISSION MAY , WITHIN ITS DISCRETIO N, REQUIRE 22
ANOTHER HEARING TO T AKE PLACE IF THE FAI LURE IS NOT WILLFUL OR 23
DELIBERATE. 24

7–207. 25

(a) (1) In this section the following words have the meanings indicated. 26

(2) “ADVANCED TRANSMISSION TECHNOLOGIES” MEANS: 27

(I) GRID–ENHANCING TECHNOLOGIES; 28

(II) HIGH PERFORMANCE CONDUCTORS; OR 29

(III) ENERGY STORAGE USED AS TRANSMISSION. 30
SENATE BILL 841 45

(3) “Brownfields site” means: 1

(i) a former industrial or commercial site identi fied by federal or 2
State laws or regulation as contaminated or polluted; 3

(ii) a closed landfill regulated by the Department of the 4
Environment; or 5

(iii) mined land. 6

[(3)] (4) (i) “Construction” means: 7

1. any physical change at a site, including fabrication, 8
erection, installation, or demolition; or 9

2. the entry into a binding agreement or contractual 10
obligation to purchase equipment exclusively for use in construction in the State or to 11
undertake a program of actual construction in the State which cannot be canceled or 12
modified without substantial loss to the owner or operator of the proposed generating 13
station. 14

(ii) “Construction” does not include a change that is needed for the 15
temporary use of a site or route for nonutility p urposes or for use in securing geological 16
data, including any boring that is necessary to ascertain foundation conditions. 17

[(4)] (5) “Generating station” does not include: 18

(i) a generating unit or facility that: 19

1. is used for the production of electricity; 20

2. has the capacity to produce not more than 2 megawatts of 21
alternating current; and 22

3. is installed with equipment that prevents the flow of 23
electricity to the electric grid during time periods when the electric grid is out of service; 24

(ii) a combination of two or more generating units or facilities that: 25

1. are used for the production of electricity from a solar 26
photovoltaic system or an eligible customer–generator that is subject to the provisions of § 27
7–306 of this title; 28

2. are located on the same property or adjacent properties; 29

46 SENATE BILL 841

3. have the capacity to produce, when calculated 1
cumulatively for all generating units or facilities on the property or adjacent property, more 2
than 2 megawatts but not more than 14 megawatts of alternating current; and 3

4. for each individual generating unit or facility: 4

A. has the capacity to produce not more than 2 megawatts of 5
alternating current; 6

B. is separately metered by the electric company; and 7

C. does not export electricity for sale on the wholesale market 8
under an agreement with PJM Interconnection, LLC; 9

(iii) a generating unit or facility that: 10

1. is used for the production of electricity for the purpose of: 11

A. onsite emergency backup at a facility when service from 12
the electric company is interrupted due to electric distribution or transmission system 13
failure or when there is equipment failure at a site where critical infrastructure is located; 14
and 15

B. test and maintenance operations ne cessary to ensure 16
functionality of the generating unit or facility in the event of a service interruption from 17
the electric company due to electric distribution or transmission system failure or when 18
there is equipment failure at a site where critical infrastructure is located; 19

2. is installed with equipment that prevents the flow of 20
electricity to the electric grid; 21

3. is subject to a permit to construct issued by the 22
Department of the Environment; and 23

4. is installed at a facility that is p art of critical 24
infrastructure if the facility complies with all applicable regulations regarding noise level 25
and testing hours; or 26

(iv) a combination of two or more generating units or facilities that 27
satisfy item (iii) of this paragraph. 28

(6) (I) “GRID–ENHANCING TECHNOLOGY” MEANS HARDWARE OR 29
SOFTWARE THAT INCREA SES THE CAPACITY , EFFICIENCY, OR RELIABILITY OF 30
EXISTING TRANSMISSION SYSTEMS. 31

(II) “GRID–ENHANCING TECHNOLOGY” INCLUDES: 32
SENATE BILL 841 47

1. A SYSTEM THAT USES R EAL–TIME OR FORECAST 1
WEATHER AND OPERATING CONDITIONS TO DETERMINE THE TRANSFER CAPACITY 2
OF TRANSMISSION SYSTEMS; 3

2. TECHNOLOGY THAT MODU LATES CIRCUIT 4
IMPEDANCE OR OTHER ELECTRICAL PROPERTIES TO REROUTE POWER FLOWS AND 5
RELIEVE CONGESTION; AND 6

3. SOFTWARE THAT IDENTI FIES SWITCHING 7
CONFIGURATIONS TO RER OUTE ELECTRICITY AND ALLEVIATE TRANSMISSI ON 8
CONSTRAINTS. 9

(7) “HIGH PERFORMANCE COND UCTORS” MEANS CONDUCTORS , 10
INCLUDING CARBON FIB ER CONDUCTORS , COMPOSITE CORE CONDU CTORS, OR 11
SUPERCONDUCTORS, THAT: 12

(I) HAVE A SIMILAR DIAME TER AND WEIGHT AS TRADITIONAL 13
ACSR CONDUCTORS; 14

(II) HAVE A DIRECT CURREN T ELECTRICAL RESISTA NCE AT 15
LEAST 10% LESS THAN TRADITIONAL ACSR CONDUCTORS; 16

(III) INCREASE THE POTENTI AL ENERGY CARRYING C APACITY 17
BY AT LEAST 75% COMPARED TO TRADITIONAL ACSR CONDUCTORS; AND 18

(IV) HAVE A COEFFICIENT OF THERMAL EXPANSION OF AT LEAST 19
30% LESS THAN TRADITIONAL ACSR CONDUCTORS. 20

[(5)] (8) (i) “Mined land” means the surface or subsurface of an area 21
in which surface mining operations will be, are being, or have been conducted. 22

(ii) “Mined land” includes: 23

1. private ways and roads used for mining appurtenant to 24
any surface mining area; 25

2. land excavations; 26

3. workings; and 27

4. overburden. 28

48 SENATE BILL 841

[(6)] (9) “Qualified generator lead line” means [an overhead] A 1
transmission line [that is ] AND ANY ASSOCIATED A DVANCED TRANSMISSION 2
TECHNOLOGY designed to carry OR SUPPORT THE CARRYING OF a voltage in excess of 3
69,000 volts and would allow an out –of–state Tier 1 or Tier 2 renewable source to 4
interconnect with a portion of the electric system in Maryland that is owned by an electric 5
company. 6

(10) “TRADITIONAL ACSR CONDUCTORS” MEANS ELECT RICAL 7
CABLES USED IN TRANS MISSION SYSTEMS THAT CONSIST OF A CENTRAL CORE OF 8
GALVANIZED STEEL WIRES SURROUNDED BY STRANDS OF ALUMINUM. 9

(b) (3) (i) Except as provided in paragraph (4) of this subsection, unless a 10
certificate of public convenience and necessity for the construction is first obtained from the 11
Commission, a person may not begin construction of [an overhead] A transmission line that 12
is designed to carry a voltage in excess of 69,000 volts or exercise a right of condemnation 13
with the construction. 14

(ii) [For] SUBJECT TO SUBPARAGRA PH (III) OF THIS 15
PARAGRAPH, FOR construction related to an existing [overhead] transmission line, the 16
Commission may waive the requirement in subparagraph (i) of this paragraph for good 17
cause. 18

(III) THE COMMISSION SHALL ADOP T REGULATIONS TO 19
ESTABLISH SPECIFIC C RITERIA FOR MAKING T HE DETERMINATION TO WAIVE THE 20
REQUIREMENT IN SUBPA RAGRAPH (I) OF THIS PARAGRAPH FO R GOOD CAUSE , 21
INCLUDING: 22

1. THE COST OF THE CONSTRUCTION ON RATEPAYERS; 23

2. THE IMPACT OF THE CONSTRUCTION ON THE 24
ENVIRONMENT; AND 25

3. ANY OTHER MATTER THE COMMISSION CONSIDERS 26
APPROPRIATE. 27

(IV) AN APPLICANT FOR A CE RTIFICATE OF PUBLIC 28
CONVENIENCE AND NECESSITY FOR THE CONSTRUCTION OF A TRANSMISSION LINE 29
SHALL INCLUDE IN ITS APPLICATION: 30

1. EVIDENCE THAT THE AP PLICANT CONSIDERED , AS 31
PART OF THE APPLICANT’S INTERNAL PLANNING PROCESS, ANY LOCAL, STATE, OR 32
FEDERAL GOVERNMENT T RANSMISSION PLANNING PROCESSES AND ANY 33
TRANSMISSION PLANNIN G PROCESSES REQUIRED BY PJM INTERCONNECTION, 34
INCLUDING: 35
SENATE BILL 841 49

A. AN ANALYSIS OF ADVAN CED TRANSMISSION 1
TECHNOLOGIES AND WHE THER THE USE OF THE TECHNOLOGIES WILL EN HANCE 2
THE VALUE OF THE NEW LEAD LINE, LEADING TO INCREASED RATEPAYER VALUE 3
THROUGH EFFICIENCY AND AVOIDED COSTS; 4

B. ALTERNATIVE ROUTINGS; 5

C. TECHNOLOGIES OR MODIFICATIONS TO ONE OR MORE 6
ELECTRIC DISTRIBUTION SYSTEMS IN THE STATE THAT COULD AVOI D THE NEED 7
FOR THE TRANSMISSION LINE; 8

D. THE COST TO RATEPAYERS; 9

E. RESOURCE ADEQUACY; AND 10

F. ANY OTHER INFORMATIO N THE COMMISSION 11
CONSIDERS APPROPRIATE; AND 12

2. AN ANALYSIS OF THE T RANSMISSION LINE ROU TE 13
SELECTION, INCLUDING: 14

A. RISKS ASSOCIATED WITH THE COSTS ESTIMATES; 15

B. COST CONTAINMENT EFFORTS; 16

C. CONSTRUCTION SCHEDULE; 17

D. ACQUISITION OF LAND AND RIGHTS–OF–WAY; 18

E. OUTAGE COORDINATION; AND 19

F. THE APPLICANT’S PLAN TO WORK WITH COMMUNITIES 20
AND STAKEHOLDERS ON PROPOSED ROUTES. 21

[(iii)] (V) Notwithstanding subparagraph (i) of this paragraph and 22
subject to subparagraph [(iv)] (VI) of this paragraph, the Commission may issue a 23
certificate of public convenience and necessity for the construction of [an overhead ] A 24
transmission line only if the applicant for the certificate of public convenience and 25
necessity: 26

1. is an electric company; or 27

50 SENATE BILL 841

2. is or, on the start of commercial operation of the 1
[overhead] transmission line, will be subject to regulation as a public utility by an officer 2
or an agency of the United States. 3

[(iv)] (VI) The Commission may not issue a certificate of public 4
convenience and necessity for the construction of [an overhead] A transmission line in the 5
electric distribution service territory of an electric company to an applicant other than an 6
electric company if: 7

1. the [overhead] transmission line is to be located solely 8
within the electric distribution service territory of that electric company; and 9

2. the cost of the [overhead] transmission line is to be paid 10
solely by that electric company and its ratepayers. 11

[(v)] (VII) 1. This subparagraph applies to the construction of 12
[an overhead ] A transmission line for which a certificate of public convenience and 13
necessity is required under this section. 14

2. On issuance of a certificate of public convenience and 15
necessity for the construction of [an overhead] A transmission line, a person may acquire 16
by condemnation, in accordance with Title 12 of the Real Property Article, any property or 17
right necessary for the construction or maintenance of the transmission line. 18

(4) (i) [Except as provided in subparagraph (ii) of this paragraph, for 19
construction related to an existing overhead transmission line designed to carry a voltage 20
in excess of 69,000 volts, the Commission shall waive the requirement to obtain a certificate 21
of public convenience and necessity if the Commission finds that the construction does not: 22

1. require the person to obtain new real property or 23
additional rights–of–way through eminent domain; or 24

2. require larger or higher structures to accommodate: 25

A. increased voltage; or 26

B. larger conductors. 27

(ii) 1. For construction related to an existing overhead 28
transmission line, including repairs, that is necessary to avoid an imminent safety hazard 29
or reliability risk, a person may undertake the necessary construction ] A PERSON MAY 30
COMPLETE CONSTRUCTIO N RELATED TO AN EXIS TING TRANSMISSION LI NE, 31
INCLUDING REPAIRS, IF THE CONSTRUCTION IS NECESSARY TO AVOID AN IMMINENT 32
SAFETY HAZARD OR RELIABILITY RISK. 33

SENATE BILL 841 51

[2.] (II) Within 30 days after construction is completed 1
under [subsubparagraph 1 of this subparagraph ] SUBPARAGRAPH (I) OF THIS 2
PARAGRAPH, a person shall file a report with the Commission describing the work that 3
was completed. 4

(c) (1) On receipt of an application for a certificate of public convenience and 5
necessity under this section, the Commission shall provide notice immediately or require 6
the applicant to provide notice immediately of the application to: 7

(i) the Department of Planning; 8

(ii) the governing body, and if applicable the executive, of each 9
county or municipal corporation in which any portion of the generating station, [overhead] 10
transmission line, or qualified generator lead line is proposed to be constructed; 11

(iii) the governing body, and if applicable the executive, of each 12
county or municipal corporation within 1 mile of the proposed location of the generating 13
station, [overhead] transmission line, or qualified generator lead line; 14

(iv) each member of the General Assembly representing any part of 15
a county in which any portion of the generating station, [overhead] transmission line, or 16
qualified generator lead line is proposed to be constructed; 17

(v) each member of the General Assembly re presenting any part of 18
each county within 1 mile of the proposed location of the generating station, [overhead] 19
transmission line, or qualified generator lead line; 20

(vi) for a proposed [overhead] transmission line, each owner of land 21
and each owner of adjacent land; and 22

(vii) all other interested persons. 23

(2) The Commission, when sending the notice required under paragraph 24
(1) of this subsection, shall forward a copy of the application to: 25

(i) each appropriate State unit and unit of local gov ernment for 26
review, evaluation, and comment regarding the significance of the proposal to State, 27
area–wide, and local plans or programs; and 28

(ii) each member of the General Assembly included under paragraph 29
(1)(iv) and (v) of this subsection who requests a copy of the application. 30

(3) On receipt of an application for a certificate of public convenience and 31
necessity under this section, the Commission shall provide notice of the application on the 32
Commission’s social media platforms and website. 33

52 SENATE BILL 841

(d) (1) (i) The Commission shall provide an opportunity for public 1
comment and hold a public hearing on the application for a certificate of public convenience 2
and necessity in each county and municipal corporation in which any portion of the 3
construction of a generating station, [an overhead] A transmission line designed to carry a 4
voltage in excess of 69,000 volts, or a qualified generator lead line is proposed to be located. 5

(ii) The Commission may hold the public hearing virtually rather 6
than in person if the Commission provides a comparable opportunity for public comment 7
and participation in the hearing. 8

(2) The Commission shall hold the public hearing jointly with the 9
governing body of the county or municipal corporation in which any portion of the 10
construction of the generating station, [overhead] transmission line, or qualified generator 11
lead line is proposed to be located, unless the governing body declines to participate in the 12
hearing. 13

(3) (i) Once in each of the 4 successive weeks immediately before the 14
hearing date, the Commission shall provide weekly notice of the public hearing and an 15
opportunity for public comment: 16

1. by advertisement in a newspaper of general circulation in 17
the county or municipal corporation affected by the application; 18

2. on two types of social media; and 19

3. on the Commission’s website. 20

(ii) Before a public he aring, the Commission shall coordinate with 21
the governing body of the county or municipal corporation in which any portion of the 22
construction of the generating station, [overhead] transmission line, or qualified generator 23
lead line is proposed to be located to identify additional options for providing, in an efficient 24
and cost–effective manner, notice of the public hearing through other types of media that 25
are familiar to the residents of the county or municipal corporation. 26

(4) (i) On the day of a publ ic hearing, an informational sign shall be 27
posted prominently at or near each public entrance of the building in which the public 28
hearing will be held. 29

(ii) The informational sign required under subparagraph (i) of this 30
paragraph shall: 31

1. state t he time, room number, and subject of the public 32
hearing; and 33

2. be at least 17 by 22 inches in size. 34

SENATE BILL 841 53

(iii) If the public hearing is conducted virtually rather than in person, 1
the Commission shall provide information on the hearing prominently on the Commission’s 2
website. 3

(5) (i) The Commission shall ensure presentation and 4
recommendations from each interested State unit, and shall allow representatives of each 5
State unit to sit during hearing of all parties. 6

(ii) The Commission shall allow e ach State unit 15 days after the 7
conclusion of the hearing to modify the State unit’s initial recommendations. 8

(e) [The] SUBJECT TO SUBSECTION (F) OF THIS SECTION, THE Commission 9
shall take final action on an application for a certificate of public convenience and necessity 10
only after due consideration of: 11

(1) the recommendation of the governing body of each county or municipal 12
corporation in which any portion of the construction of the generating station, [overhead] 13
transmission line, or qualified generator lead line is proposed to be located; 14

(2) the effect of the generating station, [overhead] transmission line, or 15
qualified generator lead line on: 16

(i) the stability and reliability of the electric system; 17

(ii) economics; 18

(iii) esthetics; 19

(iv) historic sites; 20

(v) WHEN APPLICABLE , aviation safety as determined by the 21
Maryland Aviation Administration and the administrator of the Federal Aviation 22
Administration; 23

(vi) when applicable, air quality and water pollution; and 24

(vii) the availability of means for the required timely disposal of 25
wastes produced by any generating station; 26

(3) the effect of climate change on the generating station, [overhead] 27
transmission line, or qualified generator lead line based on the best available scientific 28
information recognized by the Intergovernmental Panel on Climate Change; 29

(4) for a generating station: 30

54 SENATE BILL 841

(i) the consistency of the application with the comprehensive plan 1
and zoning of each county or municipal corporation where any portion of the generating 2
station is proposed to be located; 3

(ii) the efforts to resolve any issues presented by a county or 4
municipal corporation where any portion of the generating station is proposed to be located; 5

(iii) the impact of the generating station on the quantity of annual 6
and long–term statewide greenhouse gas emissions, measured in the manner specified in § 7
2–1202 of the Environment Article and based on the best available scientific information 8
recognized by the Intergovernmental Panel on Climate Change; and 9

(iv) the consistency of the application with the State’s climate 10
commitments for reducing statewide greenhouse gas emissions, including those specified 11
in Title 2, Subtitle 12 of the Environment Article; and 12

(5) for a solar energy generating station specified under § 7 –218 of this 13
subtitle, whether the owner of a proposed solar energy generating station complies with 14
the site requirements under § 7–218(f) of this subtitle. 15

(F) THE COMMISSION SHALL TAKE FINAL ACTION ON AN APPLICATION FOR 16
A CERTIFICATE OF PUBLIC CONVENIENCE AND NECESSITY FOR AN UNDERGROUND 17
TRANSMISSION LINE WI THIN 180 DAYS AFTER RECEIVING A COMPLETE 18
APPLICATION. 19

[(f)] (G) For the construction of [an overhead] A transmission line, in addition 20
to the considerations listed in subsection (e) of this section, the Commission shall: 21

(1) take final action on an application for a certificate of public convenience 22
and necessity only after due consideration of: 23

(i) the need to meet existing and future demand for electric service; 24
[and] 25

(ii) EVIDENCE THAT ALTERN ATIVES HAVE BEEN CON SIDERED 26
BY THE APPLICANT IN ACCORDANCE WITH SUBSECTION (B)(3)(IV) OF THIS SECTION; 27
AND 28

(III) for construction related to a new [overhead] transmission line, 29
the alternative routes that the applicant considered, including the estimated capital and 30
operating costs of each alternative route and a statement of the reason why the alternative 31
route was rejected; 32

(2) require as an ongoing condition of the certificate of public convenience 33
and necessity that an applicant comply with: 34

SENATE BILL 841 55

(i) all relevant agreements with PJM Interconnection, L.L.C., or its 1
successors, related to the ongoing operation and maintenance of the [overhead] 2
transmission line; and 3

(ii) all obligations imposed by the North America Electric Reliability 4
Council and the Federal Energy Regulatory Commission related to the ongoing operation 5
and maintenance of the [overhead] transmission line; and 6

(3) require the applicant to identify whether the [overhead] transmission 7
line is proposed to be constructed on: 8

(i) an existing brownfields site; 9

(ii) property that is subject to an existing easement; or 10

(iii) a site where a tower structure or components of a tower structure 11
used to support an overhead transmission line exist. 12

[(g)] (H) (1) The Commission may not authorize, and a person may not 13
undertake, the construction of an overhead transmission line that is aligned wit h and 14
within 1 mile of either end of a public airport runway, unless: 15

(i) the Federal Aviation Administration determines that the 16
construction of an overhead transmission line will not constitute a hazard to air navigation; 17
and 18

(ii) the Maryland Aviation Administration concurs in that 19
determination. 20

(2) A privately owned airport runway shall qualify as a public airport 21
runway under this subsection only if the runway has been on file with the Federal Aviation 22
Administration for at least 2 years as being open to the public without restriction. 23

[(h)] (I) (1) A county or municipal corporation has the authority to approve 24
or deny any local permit required under a certificate of public convenience and necessity 25
issued under this section or a distrib uted generation certificate of public convenience and 26
necessity issued under § 7–207.4 of this subtitle. 27

(2) A county or municipal corporation shall approve or deny any local 28
permits required under a certificate of public convenience and necessity issue d under this 29
section or a distributed generation certificate of public convenience and necessity issued 30
under § 7–207.4 of this subtitle: 31

(i) within a reasonable time; and 32

(ii) to the extent local laws are not preempted by State law, in 33
accordance with local laws. 34
56 SENATE BILL 841

(3) A county or municipal corporation may not condition the approval of a 1
local permit required under a certificate of public convenience and necessity issued under 2
this section or a distributed generation certificate of public convenie nce and necessity 3
issued under § 7–207.4 of this subtitle on receipt of any of the following approvals for any 4
aspect of a generating station, [an overhead] A transmission line, or a qualified lead line 5
proposed to be constructed under the certificate: 6

(i) a conditional use approval; 7

(ii) a special exception approval; or 8

(iii) a floating zone approval. 9

7–207.6. 10

(A) A PERSON THAT SUBMITS AN APPLICATION FOR A PPROVAL OF THE 11
CONSTRUCTION OF A SOLAR ENERGY GENERATING STATION IN ACCORDANCE WITH 12
§ 7–207, § 7–207.1, OR § 7–207.4 OF THIS SUBTITLE SHALL: 13

(1) REQUEST, WITHIN 90 DAYS BEFORE BEGINNING CONSTRUCTION, 14
THE COMMISSIONER OF LABOR AND INDUSTRY TO DETERMINE THE PREVAILING 15
WAGE RATE FOR EACH CLASSIFICATION OF WORKER REQUIRED TO PERFORM WORK 16
ON THE PROJECT; 17

(2) REQUIRE THAT ANY CON TRACTOR OR SUBCONTRA CTOR ON THE 18
PROJECT PAY ITS EMPL OYEES NOT LESS THAN THE PREVAILING WAGE RATE AS 19
DETERMINED BY THE COMMISSIONER OF LABOR AND INDUSTRY UNDER ITEM (1) OF 20
THIS SUBSECTION AND TITLE 17, SUBTITLE 2 OF TH E STATE FINANCE AND 21
PROCUREMENT ARTICLE; AND 22

(3) INCLUDE IN THE APPLI CATION AN ATTESTATIO N THAT THE 23
PERSON SHALL COMPLY WITH THE PROVISIONS OF THIS SECTION AND ANY 24
ADDITIONAL REQUIREME NTS IMPOSED BY THE COMMISSIONER OF LABOR AND 25
INDUSTRY. 26

(B) IN ACCO RDANCE WITH TITLE 3, SUBTITLE 5 OF THE LABOR AND 27
EMPLOYMENT ARTICLE, THE MARYLAND DEPARTMENT OF LABOR SHALL ENFORCE 28
THE REQUIREMENT UNDE R SUBSECTION (A)(2) OF THIS SECTION FOR 29
CONTRACTORS AND SUBC ONTRACTORS TO PAY EM PLOYEES NOT LESS THA N THE 30
PREVAILING WAG E RATE DETERMINED BY THE COMMISSIONER OF LABOR AND 31
INDUSTRY. 32

7–207.7. 33
SENATE BILL 841 57

(A) IN THIS SECTION , “ADVANCED TRANSMISSIO N TECHNOLOGIES ” HAS 1
THE MEANING STATED IN § 7–207 OF THIS SUBTITLE. 2

(B) (1) SUBJECT TO PARAGRAPH (2) OF THIS SUBSECTION , ON OR 3
BEFORE DECEMBER 1, 2026, AND EVERY 4 YEARS THEREAFTER, EACH OWNER OR 4
OPERATOR OF A TRANSMISSION LINE SHALL SUBMIT TO THE COMMISSION A REPORT 5
THAT: 6

(I) IDENTIFIES AREAS OF TRANSMISSION CONGEST ION FOR 7
THE IMMEDIATELY PREC EDING 3 YEARS AND ANY REASON ABLY FORESEE ABLE 8
TRANSMISSION CONGESTION ISSUES FOR THE 5 YEARS IMMEDIATELY FO LLOWING 9
THE DATE OF THE REPORT; 10

(II) IDENTIFIES THE PROJE CTED OR ACTUAL COST TO 11
RATEPAYERS AS A RESU LT OF PAST AND PROJE CTED FUTURE TRANSMIS SION 12
CONGESTION; 13

(III) IDENTIFIES THE FEAS IBILITY AND COST OF USING 14
ALTERNATIVE MEANS OF ADDRESSING TRANSMISS ION CONGESTION , INCLUDING 15
THE USE OF ADVANCED TRANSMISSION TECHNOLOGIES; 16

(IV) IDENTIFIES THE ECONOMIC, ENVIRONMENTAL, AND SOCIAL 17
ISSUES POSED BY THE USE OF EACH ALTERNATIVE MEANS IDENTIFIED UNDER ITEM 18
(III) OF THIS PARAGRAPH; AND 19

(V) IF FEASIBLE , PROPOSES AN ADVANCED TRANSMISSION 20
TECHNOLOGY IMPLEMENT ATION PLAN TO ADDRES S AREAS OF TRANSMISS ION 21
CONGESTION IDENTIFIED UNDER ITEM (I) OF THIS PARAGRAPH. 22

(2) THE COMMISSION MAY MODI FY THE REPORTING SCH EDULE 23
SPECIFIED IN PARAGRAPH (1) OF THIS SUBSECTION. 24

(C) AN OWNER OR OPERATOR OF A TRANSMISSION LI NE MAY USE ANY 25
AVAILABLE DATA FROM PJM, OR OTHER SOURCES IN COMPLETING THE REPOR T 26
REQUIRED UNDER THIS SECTION. 27

7–208. 28

(a) (1) In this section the following words have the meanings indicated. 29

(2) “Construction” has the meaning stated in § 7–207 of this subtitle. 30

(3) “Generating station” does not include: 31

58 SENATE BILL 841

(i) 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 3
the electric company is interrupted due to electric distribution or transmission system 4
failure or when there is equipment failure at a site where critical infrastructure is located; 5
and 6

B. test and maintenance operations necessary to ensure 7
functionality of the generating unit or facility in the event of an interruption of service from 8
the electric company due to electric distribution or transmissio n system failure or when 9
there is equipment failure at a site where critical infrastructure is located; 10

2. is installed with equipment that prevents the flow of 11
electricity to the electric grid; 12

3. is subject to a permit to construct issued by th e 13
Department of the Environment; and 14

4. is installed at a facility that is part of critical 15
infrastructure if the facility complies with all applicable regulations regarding noise level 16
and testing hours; or 17

(ii) a combination of two or more generating units or facilities that 18
satisfy item (i) of this paragraph. 19

(4) “Qualified offshore wind project” has the meaning stated in § 7–701 of 20
this title. 21

(5) “Qualified submerged renewable energy line” means: 22

(i) a line carrying electricity supply and connecting a qualified 23
offshore wind project to the transmission system; and 24

(ii) a line in which the portions of the line crossing any submerged 25
lands or any part of a beach erosion control district are buried or submerged. 26

(b) This section applies to any person: 27

(1) constructing a generating station and its associated [overhead] 28
transmission lines designed to carry a voltage in excess of 69,000 volts; 29

(2) exercising the right of condemnation in connection with the 30
construction; or 31

(3) constructing a qualified submerged renewable energy line. 32
SENATE BILL 841 59

(c) (1) To obtain the certificate of public convenience and necessity required 1
under § 7–207 of this subtitle for construction under this section, a person shall file an 2
application wit h the Commission at least 2 years before construction of the facility will 3
commence. 4

(2) The Commission may waive the 2–year requirement on a showing of 5
good cause. 6

(d) The applicant shall: 7

(1) include in an application under this section the information that the 8
Commission requests initially; and 9

(2) furnish any additional information that the Commission requests 10
subsequently. 11

(e) (1) On the receipt of an application under this section, together with any 12
additional information requested u nder subsection (d)(2) of this section, the Commission 13
shall provide notice to: 14

(i) for a proposed [overhead] transmission line, each owner of land 15
and each owner of adjacent land; 16

(ii) all interested persons; 17

(iii) the Department of Agriculture; 18

(iv) the Department of Commerce; 19

(v) the Department of the Environment; 20

(vi) the Department of Natural Resources; 21

(vii) the Department of Transportation; 22

(viii) the Department of Planning; and 23

(ix) the Maryland Energy Administration. 24

(2) On receipt of an application under this section, and whenever 25
additional information is received under subsection (d)(2) of this section, the Commission 26
shall provide notice immediately or require the applicant to provide notice immediately to: 27

(i) the governing body of each county or municipal corporation in 28
which any portion of the generating station or the associated [overhead] transmission lines 29
is proposed to be constructed; 30
60 SENATE BILL 841

(ii) the governing body of each county or municipal corporation 1
within 1 mile of the proposed location of the generating station or the associated [overhead] 2
transmission lines; 3

(iii) each member of the General Assembly representing any part of 4
a county in which any portion of the generating station or the associated [overhead] 5
transmission lines is proposed to be constructed; and 6

(iv) each member of the General Assembly representing any part of 7
each county within 1 mile of the proposed location of the g enerating station or the 8
associated [overhead] transmission lines. 9

(3) The Commission shall hold a public hearing on the application as 10
required by § 7–207 of this subtitle after: 11

(i) the receipt of any additional information requested under 12
subsection (d)(2) of this section that the Commission considers necessary; and 13

(ii) any publication of notice the Commission considers to be proper. 14

(4) (i) At the public hearing, the Commission shall ensure presentation 15
of the information and recommendati ons of the State units specified in paragraph (1) of 16
this subsection and shall allow the official representative of each unit to sit during hearing 17
of all parties. 18

(ii) Based on the evidence relating to the unit’s areas of concern, the 19
Commission shall allow each unit 15 days after the conclusion of the hearing to modify or 20
affirm the unit’s initial recommendations. 21

(f) Within 90 days after the conclusion of the hearing on an application under 22
this section, the Commission shall: 23

(1) (i) grant a cer tificate of public convenience and necessity 24
unconditionally; 25

(ii) grant the certificate, subject to conditions the Commission 26
determines to be appropriate; or 27

(iii) deny the certificate; and 28

(2) notify all interested parties of its decision. 29

(g) (1) The Commission shall include in each certificate it issues under 30
subsection (f) of this section: 31

SENATE BILL 841 61

(i) the requirements of the federal and State environmental laws 1
and standards that are identified by the Department of the Environment; and 2

(ii) the methods and conditions that the Commission determines are 3
appropriate to comply with those environmental laws and standards. 4

(2) The Commission may not adopt any method or condition under 5
paragraph (1)(ii) of this subsection that the Department of the Environment determines is 6
inconsistent with federal and State environmental laws and standards. 7

(h) (1) A decision of the Commission regarding the issuance of a certificate 8
requires the vote of a majority of the members of the Commission. 9

(2) If a majority of the members of the Commission fails to reach agreement 10
on the conditions to be attached to a conditional certificate, the certificate shall be denied. 11

(i) The grant of a certificate by the Commission to any person under subsection 12
(f) of this section constitutes: 13

(1) authority for the person to dredge and construct bulkheads in the 14
waters or private wetlands of the State and to appropriate or use the waters; and 15

(2) registration and a permit to construct, as required under Title 2, 16
Subtitle 4 of the Environment Article. 17

(j) (1) A county or municipal corporation has the authority to approve or deny 18
any local permit required under a certificate of public convenience and necessity issued 19
under this section. 20

(2) A county or municipal corporation shall approve or deny any local 21
permits required under a certificate of public convenience and necessity issued under this 22
section: 23

(i) within a reasonable time; and 24

(ii) to the extent local laws are not preempted by State law, in 25
accordance with local laws. 26

(3) A county or municipal corporation may not condition the approval of a 27
local permit required under a certificate of public convenience and necessity issued under 28
this section on receipt of any of the following approvals for any aspect of a generating 29
station, [an overhead ] A transmission line, or a qualified lead line proposed to be 30
constructed under the certificate: 31

(i) a conditional use approval; 32

(ii) a special exception approval; or 33
62 SENATE BILL 841

(iii) a floating zone approval. 1

7–216.1. 2

(a) (1) In this section the following words have the meanings indicated. 3

(5) “Program” means the Maryland Energy Storage Program. 4

(c) (1) The Commission shall establish the Maryland Energy Storage 5
Program. 6

(2) The Program shall be implemented no later than July 1, 2025. 7

(3) The Program shall include competitive procurement mechanisms to 8
reach a minimum of 3,000 megawatts of energy storage, or the maximum cost –effective 9
amount of energy storage that can be deployed, by the end of delivery year 2033. 10

(4) The Program may include: 11

(i) a system of energy storage credits and market –based incentives 12
designed to: 13

1. develop a robust energy storage market in the State; and 14

2. deploy energy storage devices in a cost–effective manner; 15

(ii) a requirement that investor–owned electric companies: 16

1. install or contract for energy storage devices; or 17

2. contract for credits from an energy storage project under § 18
7–216 of this subtitle; 19

(iii) a requirement that Program participants make reasonable 20
efforts to apply for all applicable State and federal grants, rebates, tax credits, loan 21
guarantees, and other similar benefits as the benefits become available; or 22

(iv) any other mechanism or policy that the Commission determines 23
is appropriate to achieve the goal of a robust, cost –effective energy storage system in the 24
State. 25

(D) ON OR BEFORE NOVEMBER 1 EACH YEAR , THE COMMISSION SHALL 26
REPORT TO THE GENERAL ASSEMBLY, IN ACCORDANCE WITH § 2–1257 OF THE 27
STATE GOVERNMENT ARTICLE, ON THE STATUS OF THE PROGRAM, INCLUDING: 28

SENATE BILL 841 63

(1) THE CAPACITY OF OPER ATIONAL ENERGY STORA GE DEVICES IN 1
THE STATE THAT IS BEING C OUNTED TOWARD THE CA PACITY GOAL ESTABLISHED 2
UNDER SUBSECTION (C)(3) OF THIS SECTION, DISAGGREGATED BY: 3

(I) ELECTRIC COMPANY SERVICE TERRITORY; 4

(II) ENERGY STORAGE DEVICE CAPACITY; 5

(III) FRONT–OF–METER TRANSMISSION–LEVEL STORAGE; 6

(IV) FRONT–OF–METER DISTRIBUTION–LEVEL STORAGE; 7

(V) BEHIND–THE–METER STORAGE; AND 8

(VI) ANY OTHER RELEVANT CATEGORY, AS DETERMINED BY THE 9
COMMISSION; 10

(2) WHETHER THE CAPACITY GOAL ESTABLISHED UND ER 11
SUBSECTION (C)(3) OF THIS SECTION SHOU LD BE ALTERED BASED ON CURRENT 12
TECHNOLOGY COSTS, ENERGY STORAGE DEPLOYMENT TRENDS, ELECTRIC SYSTEM 13
RELIABILITY, AND RATEPAYER IMPACTS; 14

(3) BARRIERS TO ACHIEVIN G THE GOALS IDENTIFI ED UNDER THIS 15
SECTION; AND 16

(4) ANY OTHER INFORMATIO N THE COMMISSION CONSIDERS 17
PERTINENT. 18

7–219.1. 19

(A) (1) IN THIS SECTION THE F OLLOWING WORDS HAVE THE MEANINGS 20
INDICATED. 21

(2) “METRICS” MEANS MEASURES USED TO ASSESS THE EFFICIENCY 22
AND PERFORMANCE OF ELECTRIC SYSTEM INFRASTRUCTURE. 23

(3) “THROUGHPUT” MEANS THE TOTAL AMOU NT OF ELECTRICITY , 24
MEASURED IN KILOWATT –HOURS, THAT PASSES THROUGH THE ELECTRIC 25
DISTRIBUTION SYSTEM AND ELECTRIC TRANSMI SSION SYSTEM OVER A SPECIF IED 26
PERIOD OF TIME. 27

64 SENATE BILL 841

(4) “UTILIZATION” MEANS THE EXTENT TO WHICH ELECTRIC SYSTEM 1
INFRASTRUCTURE IS BE ING USED TO MEET THE NEEDS OF RATEPAYERS 2
THROUGHOUT THE YEAR. 3

(B) ON OR BEFORE JANUARY 1, 2027, THE PUBLIC SERVICE COMMISSION, 4
BY O RDER OR REGULATION , SHALL ESTABLISH ELEC TRIC SYSTEM UTILIZAT ION 5
METRICS THAT PROVIDE SUFFICIENTLY DETAILE D AND TRANSPARENT 6
INFORMATION TO ENABL E THE COMMISSION TO ASSESS THE EFFICIENCY AND 7
PERFORMANCE OF EACH ELECTRIC COMPANY ’S ELECTRIC SYSTEM 8
INFRASTRUCTURE. 9

(C) THE COMMISSION SHALL DETE RMINE HOW METRICS SH ALL BE 10
CALCULATED AND REPOR TED TO ENSURE THE SE CURITY OF THE ELECTR IC 11
DISTRIBUTION AND TRA NSMISSION SYSTEMS , INCLUDING THROUGH TH E 12
AGGREGATION AND ANONYMIZATION OF DATA AN D THE USE OF CONFIDE NTIALITY 13
DESIGNATIONS. 14

(D) METRICS ESTABLISHED UNDER THIS SECTION SHALL: 15

(1) INCLUDE: 16

(I) TOTAL THROUGHPUT IN RELATION TO TOTAL PO TENTIAL 17
THROUGHPUT; 18

(II) PEAK LOAD IN RELATION TO LOAD LIMITS; 19

(III) THE DURATION OF PEAK LOAD PERIODS; AND 20

(IV) ANY OTHER INFORMATIO N THE COMMISSION CONSIDERS 21
NECESSARY; AND 22

(2) BE CALCULATED WITH S UFFICIENT TIME AND L OCATION DETAIL 23
TO ASSESS ELECTRIC SYSTEM UTILIZATION AT LEAST: 24

(I) SEASONALLY; 25

(II) SYSTEM–WIDE; AND 26

(III) AT THE FEEDER , SUBSTATION, AND TRANSMISSION LIN E 27
LEVEL. 28

(E) ON OR BEFORE APRIL 1, 2027, AND ON OR BEFORE APRIL 1 EACH YEAR 29
THEREAFTER, THE PUBLIC SERVICE COMMISSION SHALL: 30
SENATE BILL 841 65

(1) REVIEW AND ASSESS EA CH ELECTRIC COMPANY ’S ELECTRIC 1
SYSTEM UTILIZATION METRICS; AND 2

(2) ESTABLISH TA RGETED IMPROVEMENTS IN UTILIZATION THAT 3
IMPROVE RATEPAYER AFFORDABILITY WHILE CONSIDERING LOAD GROWTH, RATE 4
IMPACTS, AND OTHER STATE POLICY GOALS. 5

(F) (1) ON OR BEFORE OCTOBER 1, 2027, AND ON OR BEFORE OCTOBER 6
1 EVERY 3 YEARS THEREAFTER, EACH ELECTRIC COMPANY SHALL SUBMIT TO THE 7
COMMISSION AN ELECTRI C SYSTEM UTILIZATION IMPROVEMENT PLAN DES IGNED 8
TO: 9

(I) ACHIEVE THE TARGET I MPROVEMENTS IN ELECT RIC 10
SYSTEM UTILIZATION ESTABLISHED BY THE COMMISSION; AND 11

(II) GENERATE BENEFITS TH ROUGH THE REALIZATIO N OF 12
ADDITIONAL VALUE FRO M EXISTING ASSETS FO R PARTICIPATING CUST OMERS, 13
UTILITIES, AND ALL RATEPAYERS. 14

(2) EACH ELECTRIC SYSTEM UTILIZATION IMPROVEM ENT PLAN 15
SHALL INCLUDE COMMER CIALLY AVAILABLE TEC HNOLOGIES THAT ADDRE SS 16
ELECTRIC SYSTEM NEED S, IMPROVE ELE CTRIC SYSTEM UTILIZA TION AND 17
RATEPAYER AFFORDABILITY, AND MAY INCLUDE: 18

(I) FRONT–OF–THE–METER RESOURCES; 19

(II) BEHIND–THE–METER RESOURCES; AND 20

(III) ENABLING TECHNOLOGY INVESTMENTS. 21

7–221. 22

The General Assembly finds and declares that energy efficiency is: 23

(1) among the least expensive ways to meet the energy demands of the 24
State; 25

(2) a means of affordable, reliable, and clean energy for consumers of 26
Maryland; and 27

(3) one method to achieve Maryland ’s climate commitments for reducing 28
statewide greenhouse gas emissions, including those required under Title 2, Subtitle 12 of 29
the Environment Article. 30
66 SENATE BILL 841

7–221.1. 1

ON AND AFTER JULY 1, 2026, THIS PART DOES NOT A PPLY TO ANY GAS 2
COMPANY THAT HAS NOT, BEFORE JANUARY 1, 2026, IMPLEMENTED A PROGRAM OR 3
SERVICE IN ACCORDANCE WITH THIS PART. 4

7–222. 5

(a) Subject to review and approval by the Commission, each electric company, 6
each gas company [other than a gas company subject to § 4–207(a) of this article ], the 7
Department, and, if required in accordance with subsection (c) of this section, each midsize 8
electric cooperative shall develop and implement programs and services in accordance with 9
§§ 7–223, 7–224, and 7–225 of this subtitle to encourage and promote the efficient use and 10
conservation of ener gy, demand response, and beneficial electrification by consumers, 11
electric companies, gas companies, and the Department in support of the greenhouse gas 12
emissions reduction goals and targets required under Title 2, Subtitle 12 of the 13
Environment Article. 14

(b) As directed by the Commission, [each gas company subject to § 4–207(a) of 15
this article,] each municipal electric or gas utility, each small rural electric cooperative, 16
and, if required in accordance with subsection (c) of this section, each midsize el ectric 17
cooperative shall include energy efficiency and conservation, demand response, and 18
beneficial electrification programs or services as part of their service to their customers. 19

(c) (1) In accordance with this subsection, each midsize electric cooperative 20
shall be subject to either subsection (a) or subsection (b) of this section. 21

(2) Each midsize electric cooperative shall offer programs and services to 22
customers in accordance with: 23

(i) subsection (b) of this section through December 31, 2026; and 24

(ii) on or after January 1, 2027, and as the Commission directs, 25
either subsection (a) or subsection (b) of this section. 26

(3) Not later than October 1, 2025, the Commission shall determine if it is 27
in the public interest for a midsize electric cooperative to offer programs and services to 28
customers in accordance with subsection (a) or subsection (b) of this section starting 29
January 1, 2027, and for all subsequent years. 30

(4) Each midsize electric cooperative shall provide the followin g 31
information to the Commission to assist in making a determination under paragraph (3) of 32
this subsection: 33

(i) anticipated costs and bill impacts; 34
SENATE BILL 841 67

(ii) a description of the anticipated program offerings; 1

(iii) the anticipated cost–effectiveness of the residential, commercial, 2
and industrial sector subportfolios based on the cost –effectiveness tests in § 7–225(d)(3)(i) 3
of this subtitle; 4

(iv) the anticipated electricity savings and greenhouse gas emissions 5
reductions; and 6

(v) any other information the Commission requires. 7

(5) The information provided to the Commission under paragraph (4) of 8
this subsection shall be based on a plan to offer programs and services to customers that 9
complies with the requirements of an electric company subj ect to subsection (a) of this 10
section for the [3–year] 2–YEAR program cycle starting January 1, 2027. 11

(6) When making a public interest determination under paragraph (3) of 12
this subsection the Commission, at a minimum, shall consider the requirements un der § 13
7–225(d)(3) of this subtitle that are considered when approving a plan of an electric 14
company that is subject to subsection (a) of this section. 15

(7) Starting October 1, 2025, if the Commission determines that it is in the 16
public interest for a midsize electric cooperative to be subject to subsection (a) of this 17
section, the midsize electric cooperative shall comply with all requirements of an electric 18
company subject to subsection (a) of this section for program cycles starting on and after 19
January 1, 2027. 20

(8) On or before March 1 each year, starting in 2026, each midsize electric 21
cooperative directed by the Commission to include programs or services under subsection 22
(b) of this section shall submit to the Commission a report quantifying the gains in energy 23
efficiency and reductions in greenhouse gas emissions achieved during the previous year. 24

(d) The Commission shall encourage and promote the efficient use and 25
conservation of energy in support of the greenhouse gas emissions reduction goal s and 26
targets required under Title 2, Subtitle 12 of the Environment Article, established by the 27
Commission under § 7–223(b) of this subtitle, and specified in § 7–224(a)(2) of this subtitle 28
by: 29

(1) requiring each electric company and gas company to est ablish any 30
program or service that the Commission determines to be appropriate and cost–effective; 31

(2) adopting rate–making policies that provide, through a surcharge line 32
item on customer bills: 33

68 SENATE BILL 841

(i) full cost recovery of reasonably incurred costs for programs and 1
services established under item (1) of this subsection, including full recovery on a current 2
basis on or before January 1, 2028; 3

(ii) on or before December 31, 2032, the elimination of any unpaid 4
costs and unamortized costs that: 5

1. A. existed on December 31, 2024; or 6

B. were incurred before January 1, 2028; and 7

2. were accrued for the purpose of achieving statutory 8
targets for annual incremental gross energy savings; 9

(iii) compensation for any unpaid costs and unamortized costs under 10
item (ii) of this item at not more than each electric company ’s and each gas company ’s 11
average cost of outstanding debt; and 12

(iv) reasonable financial performance incentives and penalties for 13
investor–owned electric companies and gas companies, as appropriate; and 14

(3) ensuring that adoption of electric customer choice under Subtitle 5 of 15
this title and gas customer choice under Subtitle 6 of this title does not adversely impact 16
these goals and targets. 17

(e) The Commission shall, by regulation or order, require each electric company 18
and each gas company [subject to subsection (a) of this section ] that has submitted to the 19
Commission, on or before July 1, 2024, a plan for achieving electricity or gas savings an d 20
demand reduction targets to disclose the following information in a form and format readily 21
understandable to the average customer: 22

(1) that the surcharge imposed in accordance with subsection (d) of this 23
section includes the cost of paying down the unpaid costs and unamortized costs that were 24
accrued over time by programs and services required by the Commission dating back to 25
2008; and 26

(2) the period of time that the surcharge will include excess charges to pay 27
down the unpaid costs and unamortized costs. 28

7–223. 29

(a) On or before January 1, 2025, [and] on or before January 1 , 2027, ON OR 30
BEFORE JANUARY 1, 2029, AND ON OR BEFORE JANUARY 1 every 3 years, starting in 31
[2027] 2029, the Commission shall, by regulation or order, require each electric company 32
and each gas company subject to § 7–222(a) of this subtitle to develop and implement a plan 33
that: 34

SENATE BILL 841 69

(1) covers appropriate ratepayer classes; 1

(2) starting in [2027] 2029, covers a 3–year program cycle; and 2

(3) achieves the greenhouse gas emissions reduction target established for 3
the electric company or gas company under subsection (b) of this section through 4
cost–effective energy efficiency and conservation programs and services, demand response 5
programs and services, and beneficial electrification programs and services. 6

(b) (1) For [2025 and 2026, ] 2025, 2026, 2027, AND 2028, and for each 7
3–year program cycle starting in [2027] 2029, the Commission shall establish a greenhouse 8
gas emissions reduction target for each electric company and each gas company subject to 9
§ 7–222(a) of this subtitle as provided in this subsection. 10

(2) When establishing greenhouse gas emissions reduction targets under 11
this subsection, the Commission shall measure the greenhouse gas emissions from 12
electricity an d gas, and the intensities of those emissions, using current data and 13
projections from the Department of the Environment. 14

(3) The greenhouse gas emissions reduction targets established under this 15
subsection shall be measured: 16

(i) in metric tons; and 17

(ii) relative to the greenhouse gas emissions associated with the 18
electric company’s or gas company’s weather–normalized gross retail sales and losses in a 19
baseline year, as determined by the Commission. 20

(4) By the dates specified in § 7 –225(a) of this subtitle, the Commission 21
shall establish greenhouse gas emissions reduction targets for each electric company plan 22
that will achieve at least the greenhouse gas emissions reduction equivalent, measured on 23
a lifecycle basis using the emission intensiti es under paragraph (2) of this subsection, of 24
the following annual electricity savings percentages, calculated as a percentage of the 25
electric company’s 2016 weather–normalized gross retail sales and electricity losses: 26

(i) 2.0% in 2024; 27

(ii) 2.25% [each year] in 2025 [and 2026; and]; 28

(III) 1.75% EACH YEAR IN 2026 THROUGH 2029; 29

(IV) 2.0% EACH YEAR IN 2030 THROUGH 2032; 30

(V) 2.25% EACH YEAR IN 2033 THROUGH 2035; AND 31

[(iii)] (VI) 2.5% each year in [2027] 2036 and after. 32
70 SENATE BILL 841

(5) On or before January 1, 2025, and on or before January 1 every 3 years, 1
starting in 2027, the Commission shall establish greenhouse gas emissions reduction 2
targets for each gas company plan that will achieve at least the greenhouse gas emissions 3
reduction equivalent, measured on a lifecycle basis using the emission intensities under 4
paragraph (2) of this subsection, of the gas savings achieved by the gas company for the 5
2021–2023 program cycle. 6

(6) The Commission shall take into consideration the most recent final plan 7
adopted under § 2–1205 of the Environment Article when establishing the greenhouse gas 8
emissions reduction targets under this subsection. 9

(7) For 2025 and 2026: 10

(i) the Commission shall, after making appropriate findings, 11
determine whether existing electric company and gas company plans must be modified to 12
comply with § 7–225(d) of this subtitle; and 13

(ii) electric companies and gas companies: 14

1. shall provide information as required by the Commission 15
to assist in making the determination under item (i) of this paragraph; and 16

2. are only required to file new plans in accordance with this 17
section if directed by the Commission. 18

(c) The Commission may give priority to long –lived greenhouse gas emissions 19
reduction measures in the plans by establishing a minimum weighted average measure life 20
for the plan of each electric company and gas company. 21

(d) Contributions to greenhouse gas emissions reduction goals and targets in a 22
plan of an electric company or a gas company: 23

(1) may, notwithstanding § 7–222(d)(2) of this subtitle, include recovery of 24
the reasonable and prudent costs from programs that are not behind–the–meter programs 25
in a base rate proceeding, subject to Commission approval; and 26

(2) may [not] include the increased adoption of electric vehicles. 27

(e) (1) [Beginning] SUBJECT TO PARAGRAPH (2) OF THIS SUBSECTION , 28
BEGINNING January 1, [2025,] 2027: 29

(I) at least 80% of the greenhouse gas emissions reductions counted 30
toward each electric company’s and each gas company’s greenhouse gas emissions reduction 31
targets established under this section shall come from behind–the–meter programs, which 32
may include deployment of energy storage facilities; AND 33
SENATE BILL 841 71

(II) SUBJECT TO PARAGRAPH (3) OF THIS SUBSECTION , FOR 1
2027 THROUGH 2029, NOT MORE THAN 20% OF THE GREENHOUSE GA S EMISSIONS 2
REDUCTIONS COUNTED T OWARD EACH ELECTRIC COMPANY’S GREENHOUSE GAS 3
EMISSIONS REDUCTION TARGETS ESTABLISHED UNDER THIS SECTION S HALL 4
INCLUDE: 5

1. NEW COMMUNITY SOLAR ENERGY GENERATION THAT 6
IS INTERCONNECTED TO THE ELECTRIC COMPANY’S DISTRIBUTION SYSTEM; AND 7

2. SOLAR ENERGY GENERAT ION FACILITIES THAT ARE 8
INTERCONNECTED TO THE ELECTRIC COMPANY’S DISTRIBUTION SYSTEM. 9

(2) PARAGRAPH (1) OF THIS SUBSECTION M AY NOT BE CONSTRUED 10
TO AUTHORIZE AN ELECTRIC COMPANY TO BUILD, OWN, OR OPERATE ELECTRIC 11
GENERATING FACILITIE S OR ENERGY STORAGE FACILITIES TO MEET T HE 12
REQUIREMENTS OF THIS SECTION. 13

(3) GREENHOUSE GAS EMISSI ONS REDUCTIONS FROM SOURCES 14
SPECIFIED UNDER PARAGRAPH (1)(II) OF THIS SUBSECTION M AY NOT BE USED TO 15
MEET THE GREENHOUSE GAS EMISSIONS REDUCTION TARGETS UNDER PARAGRAPH 16
(1)(I) OF THIS SUBSECTION. 17

7–224. 18

(a) (1) Beginning January 1, 2025, [and] on or before January 1, 2027, ON OR 19
BEFORE JANUARY 1, 2029, AND ON OR BEFORE JANUARY 1 every 3 years, starting in 20
[2027] 2029, the Department shall procure or provide to low –income individuals energy 21
efficiency and conservation programs and services, demand response programs and 22
services, and beneficial electrification programs and services that achieve the greenhouse 23
gas emissions reduction targets established for the Department under paragraph (2) of this 24
subsection. 25

(d) If directed by the Commission in 2024, [and] on or before September 1, 2026, 26
ON OR BEFORE SEPTEMBER 1, 2028, AND ON OR BEFORE SEPTEMBER 1 every 3 years, 27
starting in [2026] 2028, the Department shall submit its plans for any programs or services 28
procured or provided under subsection (a) of this section to the Commission for review and 29
approval under § 7–225 of this subtitle. 30

7–225. 31

(a) As soon as possible in 2024, and at least 8 months before the filing deadline 32
for plans after 2024, the Commission shall issue an order that determines the greenhouse 33
gas emissions reduction targets required under § 7 –223(b) of this subtit le and the 34
greenhouse gas emissions reductions required under § 7–224(a)(2) of this subtitle. 35
72 SENATE BILL 841

(b) (1) (i) If directed by the Commission in 2024, [and] on or before July 1, 1
2026, ON OR BEFORE JULY 1, 2028, AND ON OR BEFORE JULY 1 every 3 years, starting 2
in [2026] 2028, each electric company and each gas company subject to § 7 –222(a) of this 3
subtitle that submitted a plan for achieving electricity savings and demand reduction 4
targets to the Commission before July 1, 2024, and the Department, shall consult with the 5
technical staff of the Commission, the Office of People’s Counsel, the Maryland Energy 6
Administration, and the Department of the Environment regarding the design and 7
adequacy of its plans for achieving the greenhouse gas emissions reduction targets 8
established by the Commission under § 7 –223(b) of this subtitle and specified in § 9
7–224(a)(2) of this subtitle. 10

(ii) On or before October 1, 2024, [and] on or before July 1, 2026, ON 11
OR BEFORE JULY 1, 2028, AND ON OR BEFORE JULY 1 every 3 years, starting in [2026] 12
2028, each electric company and each gas company subject to § 7 –222(a) of this subtitle 13
that did not submit a plan for achieving electricity savings and demand reduction targets 14
to the Commission before July 1, 2024, shall comply with the c onsulting requirements 15
under subparagraph (i) of this paragraph. 16

(2) Each electric company and each gas company subject to § 7 –222(a) of 17
this subtitle shall provide the technical staff of the Commission, the Office of People’s 18
Counsel, the Maryland Ener gy Administration, and the Department of the Environment 19
with any additional information regarding its plan, as requested. 20

(c) (1) (i) If directed by the Commission in 2024, and on or before 21
September 1 , 2026, ON OR BEFORE SEPTEMBER 1, 2028, AND ON OR BEFORE 22
SEPTEMBER 1 every 3 years, starting in [2026] 2028, each electric company and each gas 23
company subject to § 7–222(a) of this subtitle that submitted a plan for achieving electricity 24
savings and demand reduction targets to the Commission before July 1, 2024, and the 25
Department, shall submit its plan to the Commission. 26

(ii) On or before December 1, 2024, [and] on or before September 1, 27
2026, ON OR BEFORE SEPTEMBER 1, 2028, AND ON OR BEFORE SEPTEMBER 1 every 28
3 years, starting in [2026] 2028, each electric company and each gas company that did not 29
submit a plan for achieving electricity savings and demand reduction targets to the 30
Commission before July 1, 2024, shall submit its plan to the Commission. 31

(2) (I) [Each] EXCEPT AS PROVIDED IN SUBPARAGRAPH (II) OF 32
THIS PARAGRAPH , EACH plan shall detail a proposal for achieving greenhouse gas 33
emissions reduction targets for 3 subsequent calendar years. 34

(II) THE PLAN SUBMITTED IN 2026 SHALL DETAIL A PROPOSAL 35
FOR ACHIEVING GREENH OUSE GAS EMISSIONS R EDUCTION TARGETS FOR THE 2 36
SUBSEQUENT CALENDAR YEARS. 37

(3) (i) Each plan shall: 38
SENATE BILL 841 73

1. include: 1

A. a description of the proposed programs and services; 2

B. anticipated costs; 3

C. projected benefits, including greenhouse gas emissions 4
reductions, electricity savings, and gas savings; and 5

D. any other information requested by the Commission; and 6

2. address residential, commercial, and industrial sectors as 7
appropriate, including low–income communities. 8

(ii) A plan of the Department shall include: 9

1. a definition of “low –income individual” to be used in the 10
procurement or provision of energy efficiency, conservation, and greenhouse gas emissions 11
reduction programs and services; 12

2. a description of the steps proposed to ensur e insulation 13
materials meet the requirements under § 7–224 of this subtitle; and 14

3. a proposed average lifetime measure threshold that: 15

A. encourages the delivery of insulation and weatherization 16
measures; and 17

B. is developed through a stakeholder engagement process. 18

(iii) A plan of an electric company shall include the provision or 19
procurement of programs and services for residential beneficial electrification. 20

(d) (1) The Commission shall review the plan of each electric company, each 21
gas company, and the Department to determine whether the plan is adequate and 22
cost–effective in achieving the greenhouse gas emissions reduction targets established by 23
the Commission under §§ 7–223(b) and 7–224(a)(2) of this subtitle. 24

(2) The Commission shall consider any written findings provided by the 25
Maryland Energy Administration, the Department of the Environment, and the Office of 26
People’s Counsel regarding the design and adequacy of the plan. 27

(3) Subject to paragraph (4) of this subsection, in approving, modifying, or 28
denying the plan of an electric company or a gas company, the Commission shall consider: 29

(i) the cost –effectiveness of the residential, commercial, and 30
74 SENATE BILL 841

industrial sector subportfolios by using: 1

1. the primary State jurisdiction–specific test, as developed, 2
updated, or approved by the Commission, to determine the cost–effectiveness of a program 3
or service prospectively, including consideration of: 4

A. participant nonenergy benefits; 5

B. utility nonenergy benefits; and 6

C. societal nonenergy benefits; and 7

2. a total resource cost test to compare the electricity savings 8
and demand reduction targets of the program or service with the results of similar 9
programs or services implemented in other jurisdictions, including: 10

A. participant nonenergy benefits; and 11

B. utility nonenergy benefits; 12

(ii) THE COST –EFFECTIVENESS OF THE RESIDENTIAL SECTOR 13
SUBPROGRAMS BY DETER MINING WHETHER THE C OST–EFFECTIVENESS OF A 14
SUBPROGRAM CAN BE IMPROVED THROUGH: 15

1. CONSOLIDATION; 16

2. A REDUCTION IN ADMINISTRATIVE COSTS; OR 17

3. STREAMLINING DELIVERY OF SERVICES; 18

(III) the impact on rates of each ratepayer class; 19

[(iii)] (IV) the impact on jobs; 20

[(iv)] (V) the impact on the environment; and 21

[(v)] (VI) the impact on the greenhouse gas emissions reduction 22
targets specified in Title 2, Subtitle 12 of the Environment Article, established by the 23
Commission under §§ 7–223(b) and 7–224(a)(2) of this subtitle. 24

(4) Nonenergy benefits considered under paragraph (3) of this subsection 25
shall be quantifiable and directly related to a program or service. 26

(5) (i) In approving, modifying, or denying the plan of the Department, 27
the Commission shall consider: 28

SENATE BILL 841 75

1. subject to subparagraph (ii) of this paragraph, the 1
cost–effectiveness of the plan by using the primary State jurisdiction –specific test, as 2
developed, updated, or approved by the Commission; 3

2. the impact on rates of each ratepayer class; 4

3. the impact on jobs; 5

4. the impact on the environment; and 6

5. the impact on the greenhouse gas emissions targets 7
specified in Title 2, Subtitle 12 of the Environment Article, established by the Commission 8
under § 7–223(b) of this subtitle, and specified in § 7–224(a)(2) of this subtitle. 9

(ii) The programs and services offered by the Department are not 10
required to be cost–effective. 11

(e) The Department of the Environment shall prepare and submit to the 12
Commission an analysis regarding the adequacy of the plan in supporting the State ’s 13
greenhouse gas emissions reduction goals specified in Title 2, Subtitle 12 of the 14
Environment Article, established by the Commission under § 7–223(b) of this subtitle, and 15
required under § 7–224(a)(2) of this subtitle. 16

7–226. 17

(a) (1) Each electric company, each gas company, and the Department shall 18
provide to the Commission every 6 months an update on plan implementation and progress 19
made toward achieving the greenhouse gas emissions reduction targets established by the 20
Commission under § 7–223(b) of this subtitle and required under § 7–224(a)(2) of this 21
subtitle. 22

(2) The Commission shall monitor and analyze the impact of each program 23
and service to ensure that the outcome of each program and service provi des the best 24
possible results. 25

(3) In monitoring and analyzing the impact of a program or service under 26
paragraph (2) of this subsection, if the Commission finds that the outcome of the program 27
or service may not be providing the best possible results, the Commission shall direct the 28
electric company, the gas company, or the Department to include in its next update under 29
paragraph (1) of this subsection specific measures to address the findings. 30

(b) (1) At least once each year, each electric company an d each gas company 31
shall notify affected customers of the energy efficiency and conservation and greenhouse 32
gas reduction charges imposed and benefits conferred. 33

(2) The notice shall be provided by publication on the company ’s website 34
and inclusion with billing information such as a bill insert or bill message. 35
76 SENATE BILL 841

(c) On or before May 1 each year, the Commission shall report, in accordance with 1
§ 2–1257 of the State Government Article, to the General Assembly on: 2

(1) the status of programs and services approved under this subtitle, 3
including an evaluation of the impact of the programs and services that are directed to 4
low–income communities and other particular classes of ratepayers; 5

(2) a recommendation for the appropriate funding level to adequately fund 6
these programs and services; 7

(3) the per capita electricity consumption and the winter and summer peak 8
demand for the previous calendar year; and 9

(4) beginning in 2026, progress made toward reducing greenhouse gas 10
emissions in accordance with §§ 7–223 and 7–224 of this subtitle. 11

7–227. 12

(a) Notwithstanding any other law, the Commission may not require or allow an 13
electric company or a gas company to require a customer to authorize the electric company 14
or gas company to control the amount of the customer’s electricity usage or gas usage. 15

(b) A customer may provide consent to participate in a program of an electric 16
company or a gas company that provides direct load control or other utility manipulation 17
of a customer’s electricity or gas usage. 18

7–228. 19

(a) Each electric company and each gas company shall promote the availability of 20
federal and State rebates, tax credits, and incentives that can be used to support energy 21
efficiency investments, energy efficient and non –fossil–fuel–powered appliances and 22
cooking equipment, breaker box upgrades, and portable heating and cooling equipment. 23

(b) The Commission shall adopt regulations to carry out this section. 24

7–229. 25

NOTHING IN THIS PART PROHIBITS THE COMMISSION FROM APPRO VING A 26
DEMAND RESPONSE PROG RAM PROPOSED BY AN E LECTRIC COMPANY IF T HE 27
DEMAND RESPONSE PROG RAM IS DETERMINED TO BE COST –EFFECTIVE AND 28
IMPROVE SYSTEM RELIABILITY. 29

7–230. RESERVED. 30

7–231. RESERVED. 31
SENATE BILL 841 77

PART III. LARGE LOAD CUSTOMERS. 1

7–232. 2

(A) IN THIS PART THE FOLLOWING WORDS HAVE THE MEANINGS 3
INDICATED. 4

(B) “DISTRICT ENERGY SYSTE M” MEANS AN UNDERGROUND 5
INFRASTRUCTURE ASSET WHOSE PRIMARY PURPOS E IS TO PROVIDE THER MAL 6
ENERGY TO MULTIPLE BUILDINGS FROM A CENTRAL ENERGY PLANT OR PLANTS. 7

(C) “DUPLICATIVE INTERCO NNECTION REQUEST ” MEANS AN 8
INTERCONNECTION REQUEST THAT: 9

(1) IS SUBSTANTIALLY SIM ILAR TO ANOTHER INTE RCONNECTION 10
REQUEST SUBMITTED BY THE LARGE LOAD CUSTOMER OR THE CUSTOMER’S PARENT 11
COMPANY OR AFFILIATE; 12

(2) IS SUBMITTED TO AN E LECTRIC COMPANY IN T HE STATE OR IN 13
ANOTHER STATE IN THE PJM REGION; AND 14

(3) IF PROGRESSED FURTHE R THROUGH THE INTERC ONNECTION 15
PROCESS, WOULD CAUSE THE LARG E LOAD CUSTOMER TO M ATERIALLY CHANGE, 16
DELAY, OR WITHDRAW THE APPLICABLE INTERCONNECTION REQUEST. 17

(D) “HOSPITAL” MEANS AN INSTITUTION THAT: 18

(1) HAS A GROUP OF AT LEAST 5 PHYSICIANS WHO ARE ORGANIZED AS 19
A MEDICAL STAFF FOR THE INSTITUTION; 20

(2) MAINTAINS FACILITIES TO PROVIDE, UNDER THE SUPERVISION OF 21
THE MEDICAL STAFF, DIAGNOSTIC AND TREATMENT SERVICES FOR TWO OR MORE 22
UNRELATED INDIVIDUALS; AND 23

(3) MEETS OR RETAINS THE INDIVIDUALS FOR OVERNIGHT CARE. 24

(E) “INCREMENTAL RESOURCES ” INCLUDES ONE OR A CO MBINATION OF 25
THE FOLLOWING FACILITIES AND RESOURCES, LOCATED WITHIN THE A PPLICABLE 26
LOCATIONAL DELIVERABILITY AREA: 27

(1) BEHIND–THE–METER ENERGY STORAGE FACILITIES; 28

78 SENATE BILL 841

(2) NEWLY INTERCONNECTED ENERGY STORAGE FACILITIES; AND 1

(3) PURCHASING OR ESTABL ISHING NONEMITTING R ESOURCES 2
WITHIN THE LOCATIONAL DELIVERABILITY AREA, INCLUDING: 3

(I) NEW CLEAN ENERGY GENERATION ASSETS; 4

(II) NEW VIRTUAL POWER PLANT AGGREGATIONS; AND 5

(III) A DEMAND RESPONSE PR OGRAM THAT THE COMMISSION 6
DETERMINES MEETS THE GOALS OF THIS SECTIO N, INCLUDING PROGRAMS 7
ADMINISTERED BY PJM. 8

(F) (1) “LARGE LOAD CUSTOMER ” MEANS A COMMERCIAL O R 9
INDUSTRIAL CUSTOMER FOR RETAIL ELECTRIC SERVICE THAT: 10

(I) HAS OR IS PROJECTED TO HAVE AN AGGREGATE MONTHLY 11
DEMAND OF AT LEAST 25 MEGAWATTS; AND 12

(II) HAS OR IS PROJECTED TO HAVE A LOAD FACTO R OF MORE 13
THAN 60%. 14

(2) “LARGE LOAD CUSTOMER ” DOES NOT INCLUDE A C OMMERCIAL 15
OR INDUSTRIAL CUSTOM ER FOR RETAIL ELECTR IC SERVICE WHOSE PRI MARY 16
PURPOSE IS TO OPERATE AS OR SUPPORT THE OPERATION OF: 17

(I) A WATER COMPANY OR SEWAGE DISPOSAL COMPANY; 18

(II) A MANUFACTURING FACILITY; 19

(III) A HOSPITAL; 20

(IV) A DISTRICT ENERGY SYSTEM; 21

(V) AN AGRICULTURAL FACILITY; OR 22

(VI) AT THE DISCRETION OF THE COMMISSION, ANOTHER 23
INDUSTRIAL FACILITY. 24

(G) “MANUFACTURING FACILITY” MEANS A FACILITY WHERE THE PROCESS 25
OF SUBSTANTIALLY TRANSFORMING, OR A SUBSTANTIAL STEP IN THE PROCESS OF 26
SUBSTANTIALLY TRANSFORMING, TANGIBLE PERSONAL PROPERTY INTO A NEW AND 27
SENATE BILL 841 79

DIFFERENT ARTICLE OF TANGIBLE PERSONAL PROPERTY BY THE USE OF LABOR OR 1
MACHINERY OCCURS. 2

(H) “ON–SITE BACKUP GENERATI NG FACILITY ” MEANS A GENERATING 3
FACILITY THAT IS NOT CONNECTED TO THE ELECTRIC SYSTEM. 4

(I) “VIRTUAL POWER PLANT ” MEANS AN AGGREGATION OF DISTRIBUTED 5
CLEAN ENERGY RESOURCES AND ENERGY STORAG E OWNED BY A CUSTOMER OR A 6
THIRD PARTY THAT: 7

(1) PROVIDES ELECTRIC SYSTEM SERVICES; AND 8

(2) MAY BE USED BY THE C USTOMER OR THE THIRD PARTY FOR 9
OTHER APPLICATIONS WHEN NOT PROVIDING ELECTRIC SYSTEM SERVICES. 10

(J) “VOLUNTARY CLEAN CAPAC ITY RATING PROGR AM” MEANS THE 11
PROGRAM DEVELOPED BY THE COMMISSION UNDER § 7–234 OF THIS SUBTITLE. 12

7–233. 13

(A) ON OR BEFORE JANUARY 1, 2027, THE COMMISSION, BY ORDER OR 14
REGULATION, SHALL ESTABLISH A LARGE LOAD CUSTOMER REGISTRY TO: 15

(1) PROVIDE INFORMATION RELEVANT TO PLANNING AT THE 16
ELECTRIC DISTRIBUTION, STATE, AND PJM LEVELS; AND 17

(2) ASSIST IN ENSURING A CCURATE LOAD FORECAS TS AT THE 18
ELECTRIC DISTRIBUTION, STATE, AND PJM LEVELS. 19

(B) (1) THE COMMISSION SHALL DEVE LOP A PROCESS FOR 20
REGISTRATION UNDER THIS SECTION. 21

(2) THE PROCESS SHALL: 22

(I) APPLY TO NEW OR EXPANDED INTERCONNECTION OF LARGE 23
LOAD CUSTOMERS; 24

(II) REQUIRE A LARGE LOAD CUSTOMER TO: 25

1. DISCLOSE ALL INFORMA TION ABOUT THE LARGE 26
LOAD CUSTOMER AS SPECIFIED IN THIS SECTION; 27

80 SENATE BILL 841

2. DISCLOSE EACH OF THE LARGE LOAD CUSTOMER ’S 1
DUPLICATIVE INTERCONNECTION REQUESTS AND ANY ASSOCIATED INFORMATION, 2
AS DESCRIBED IN THIS SECTION; 3

3. EXPLAIN HOW THE LARGE LOAD CUSTOMER’S ENERGY 4
AND CAPACITY NEEDS W ILL BE SERVED AND DE SCRIBE ANY ANTICIPAT ED 5
ARRANGEMENTS, INCLUDING ARRANGEMENTS: 6

A. WITH THIRD PARTIES; AND 7

B. FOR NEW OR EXISTING GENERATION AND ENERG Y 8
STORAGE, WHETHER ON–SITE OR OFF–SITE; 9

4. DISCLOSE INFORMATION ABOUT THE ANTICIPATE D 10
TYPE OF ON –SITE BACKUP GENERATI NG FACILITY THAT WOU LD BE USED IN THE 11
EVENT OF A SYSTEM OUTAGE; 12

5. DISCLOSE INFORMATION ABOUT: 13

A. THE AMOUNT OF WATER THAT THE LARGE LOAD 14
CUSTOMER WILL USE EACH MONTH; 15

B. THE SOURCE OF THE WATER THAT WILL BE USED; AND 16

C. THE STATUS OF AN APP LICATION FOR A WATER 17
APPROPRIATION OR USE PERMIT SUBMITTED TO THE DEPARTMENT OF THE 18
ENVIRONMENT OR A WATER UTILITY; 19

6. DISCLOSE THE STATUS AND TYPE OF SITE CON TROL 20
FOR THE PROPOSED LOC ATION OF THE LARGE L OAD CUSTOMER ’S FACILITY , 21
INCLUDING OWNERSHIP OR LEASE CONTROL; 22

7. DISCLOSE ENERGY CHAR ACTERISTICS OF THE 23
CUSTOMER, INCLUDING: 24

A. PEAK LOAD; 25

B. ANTICIPATED LOAD FACTOR; 26

C. TIMING OF REQUESTED SERVICE; 27

D. LOAD RAMP PERIOD; 28

SENATE BILL 841 81

E. ANNUAL ENERGY USAGE; AND 1

F. LOAD PROFILE OR, IF UNAVAILABLE, A DESCRIPTION 2
OF THE LARGE LOAD CUSTOMER’S AVERAGE HOURLY USE; 3

8. PROVIDE A DESCRIPTIO N OF THE LARGE LOAD 4
CUSTOMER’S OPERATION; 5

9. DISCLOSE THE POINT OF INT ERCONNECTION AND 6
ADDRESS OR COORDINATES OF THE LARGE LOAD CUSTOMER; AND 7

10. PROVIDE ANY OTHER IN FORMATION THE 8
COMMISSION CONSIDERS NECESSARY FOR THE PU RPOSES IDENTIFIED IN 9
SUBSECTION (A) OF THIS SECTION; AND 10

(III) ESTABLISH AN Y OTHER STANDARDS TH AT THE 11
COMMISSION CONSIDERS NECESSARY. 12

(C) (1) EXCEPT AS PROVIDED IN SUBSECTION (E) OF THIS SECTION , A 13
LARGE LOAD CUSTOMER SHALL REGISTER WITH THE COMMISSION IN ACCORDANCE 14
WITH THIS SECTION: 15

(I) WITHIN 30 DAYS AFTER SIGNING A FEDERAL ENERGY 16
REGULATORY COMMISSION–JURISDICTIONAL AGREEMENT WITH AN ELE CTRIC 17
COMPANY; OR 18

(II) WITHIN 30 DAYS AFTER AN ELECTR IC COMPANY PROVIDES 19
TO THE COMMISSION AND THE LA RGE LOAD CUSTOMER TH E INFORMATION 20
REQUIRED IN PARAGRAPH (2) OF THIS SUBSECTION. 21

(2) AN ELECTRIC COMPANY S HALL PROVIDE WRITTEN NOTICE TO 22
THE COMMISSION AND A LARG E LOAD CUSTOMER WHEN THE ELECTRIC COMPANY 23
PROVIDES TO PJM INFORMATION RELATED TO THE LARGE LOAD CUSTOMER THAT 24
MAY IMPACT PJM FORECASTS OR MARKETS. 25

(D) ELECTRIC COMPANIES AND LARGE LOAD CUSTOMERS SHALL PROVIDE 26
TO THE COMMISSION WITHIN THE TIMELINES SET BY THE COMMISSION: 27

(1) UPDATED INFORMATION REGARDING A REGISTERED LARGE LOAD 28
CUSTOMER, INCLUDING IF: 29

(I) A NEW DUPLICATIVE IN TERCONNECTION REQUES T 30
BECOMES KNOWN; OR 31
82 SENATE BILL 841

(II) THERE IS A CHANGE IN THE STATUS OF A DUPL ICATIVE 1
INTERCONNECTION REQUEST; AND 2

(2) ANY OTHER INFORMATIO N THAT THE COMMISSION CONSIDERS 3
RELEVANT. 4

(E) (1) WITHIN 60 DAYS AFTER RECEIVING AN APPLICATION FOR 5
REGISTRATION UNDER T HIS SECTION , INCLUDING ALL INFORM ATION REQUIRED 6
UNDER SUBSECTION (B) OF THIS SECTION , THE COMMISSION SHALL CERT IFY 7
WHETHER A REGISTRATION UNDER THIS SECTION IS COMPLETE. 8

(2) IF THE COMMISSION DETERMINES THAT THE REGISTRATIO N 9
INFORMATION IS INCOM PLETE, THE COMMISSION MAY EXTEND ANY TIM E FRAME 10
PROVIDED IN AN ORDER OR REGULATION ADOPTE D IN ACCORDANCE WITH THIS 11
SECTION. 12

(F) THE COMMISSION MAY CHARGE A REASONABLE FEE TO ADMINISTER 13
THE LARGE LOAD CUSTOMER REGISTRY UNDER THIS SECTION. 14

(G) (1) THE COMMISSION SHALL IMPOSE PENALTIES AGA INST A LARGE 15
LOAD CUSTOMER IF THE LARGE LOAD CUSTOMER: 16

(I) FAILS TO REGISTER IN ACCORDANCE WITH THIS SECTION; 17
OR 18

(II) INTENTIONALLY MISLEA DS THE COMMISSION IN ITS 19
REGISTRATION. 20

(2) THE COMMISSION MAY DIRECT PROCEEDS COLLECTED FROM A 21
PENALTY IMPOSED UNDER PARAGRAPH (1) OF THIS SUBSECTION TO BE PROVIDED 22
TO EXISTING ELECTRIC CUSTOMERS IN THE SAM E SERVICE TERRITORY AS THE 23
LARGE LOAD CUSTOMER. 24

(H) (1) NOTWITHSTANDING § 4–335 OF THE GENERAL PROVISIONS 25
ARTICLE, CONFIDENTIAL COMMERCIAL OR FINANCIAL INF ORMATION DISCLOSED 26
TO THE COMMISSION BY A LARGE LOAD CUSTOMER IN ACC ORDANCE WITH 27
SUBSECTION (B)(2)(II) OF THIS SECTION: 28

(I) MAY NOT BE DISCLOSED BY THE COMMISSION BEFORE THE 29
LARGE LOAD CUSTOMER IS OPERATIONAL; AND 30

SENATE BILL 841 83

(II) MAY BE DISCLOSED BY THE COMMISSION IN ACCORDANCE 1
WITH PARAGRAPH (2) OF THIS SUBSECTION: 2

1. WHEN THE LARGE LOAD CUSTOMER BECOMES 3
OPERATIONAL; OR 4

2. NOTWITHSTANDING ITEM (I) OF THIS PARAGRAPH: 5

A. IF THE INFORMATION HAS BEEN MADE PUBLIC BY ANY 6
PERSON; OR 7

B. IF THE INFORMATION I S AGGREGATED AND 8
ANONYMIZED AS DESCRIBED IN SUBSECTION (J)(2) OF THIS SECTION. 9

(2) THE COMMISSION SHALL ESTA BLISH A PROCEDURE FO R THE 10
DISCLOSURE OF CONFID ENTIAL COMMERCIAL AN D FINANCIAL INFORMAT ION 11
UNDER PARAGRAPH (1)(II) OF THIS SUBSECTION TO A UNIT OF STATE GOVERNMENT, 12
PJM, OR ANOTHER PERSON IF CONSIDERED APPROPRIATE BY THE COMMISSION 13
AND ONLY FOR THE PUR POSE OF ACCURATE LOA D FORECASTING, TRANSMISSION 14
PLANNING, OR OTHER REASONS THE COMMISSION CONSIDERS NECESSARY. 15

(3) A PERSON AUTHORIZED TO ACCESS CONFIDENTIAL INFORMATION 16
UNDER PARAGRAPH (2) OF THIS SUBSECTION S HALL KEEP THE INFORM ATION 17
ACCESSED CONFIDENTIAL. 18

(I) BEGINNING JANUARY 1, 2027, AN ELECTRIC COMPANY MAY NOT SUBMIT 19
A LARGE LOAD ADJUSTM ENT REQUEST TO PJM UNLESS THE LARGE LOAD 20
CUSTOMER HAS COMPLETED THE REGISTRATION PROCESS UNDER THIS SECTION. 21

(J) (1) ON OR BEFORE JANUARY 1, 2028, AND EACH JANUARY 1 22
THEREAFTER, THE COMMISSION SHALL REPO RT TO THE SENATE COMMITTEE ON 23
EDUCATION, ENERGY, AND THE ENVIRONMENT AND THE HOUSE ENVIRONMENT 24
AND TRANSPORTATION COMMITTEE, IN ACCORDANCE WITH § 2–1257 OF THE STATE 25
GOVERNMENT ARTICLE, ON THE LARGE LOAD CU STOMER REGISTRY REQU IRED 26
UNDER THIS SECTION. 27

(2) THE REPORT: 28

(I) SHALL INCLUDE INFORMATION DISCLOSED IN SUBSECTION 29
(B)(2)(II) OF THIS SECTION AGGR EGATED BY EACH ELECT RIC COMPANY SERVICE 30
TERRITORY; 31

84 SENATE BILL 841

(II) MAY NOT DISCLOSE CONFIDE NTIAL COMMERCIAL OR 1
FINANCIAL INFORMATIO N AS DESCRIBED IN SU BSECTION (B)(2)(II) OF THIS 2
SECTION, UNLESS THE INFORMATION: 3

1. CONSISTS OF ENERGY CHARACTERISTICS IDENTIFIED 4
IN SUBSECTION (B)(2)(II)7A, C, AND D OF THIS 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 DUPLICATIVE INTERCONNECTION REQUESTS BOTH IN AND OUT 10
OF STATE; AND 11

B. ANONYMIZED AND PROJE CTS ARE ONLY IDENTIF IED 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 IDEN TIFIED 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 ELECTRIC 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, 2026, 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 T O 30
PARTICIPATE IN THE P ROGRAM, INCLUDING PLATINUM A ND GOLD RATING 31
DESIGNATIONS. 32

SENATE BILL 841 85

(2) THE RATING SYSTEM SHALL: 1

(I) ACCOUNT FOR A LARGE LOAD CUSTOMER ’S VOLUNTARY 2
ADOPTION OF DEMAND RESPONSE AND INCREMENTAL RESOURCES; AND 3

(II) EVALUATE THE EXTENT TO WHICH THE LARGE L OAD 4
CUSTOMER PROVIDES AD EQUATE INCREMENTAL R ESOURCES TO MEET A 5
PERCENTAGE OF ITS PE AK LOAD AS ASSIGNED BY PJM AND GROSSED UP BY TH E 6
APPROPRIATE RESERVE MARGIN. 7

(B) (1) A LARGE LOAD CUSTOMER MAY BE ELIGIBLE FOR A GOLD OR 8
PLATINUM RATING UNDER THIS SECTION ONLY IF THE LARGE LOAD CUSTOMER: 9

(I) ENSURES THAT WORKERS CONSTRUCTING THE LARGE LOAD 10
CUSTOMER’S FACILITY ARE PAID NOT LESS THAN THE PR EVAILING WAGE RATE 11
DETERMINED BY THE COMMISSIONER OF LABOR AND INDUSTRY UNDER TITLE 17, 12
SUBTITLE 2 OF THE STATE FINANCE AND PROCUREMENT ARTICLE; AND 13

(II) ENTERS INTO A MEMORA NDUM OF UNDERSTANDIN G WITH 14
THE COMMISSION THAT: 15

1. CONFIRMS THE LARGE L OAD CUSTOMER ’S 16
COMMITMENT TO PROVID E AND MAINTAIN THE C APACITY REFERENCED I N 17
SUBSECTIONS (C) AND (D) OF THIS SECTION FOR THE LIFE OF THE FACILITY; AND 18

2. PROVIDES THAT THE LA RGE LOAD CUSTOMER 19
CONSENTS TO THE COMMISSION’S JURISDICTION FOR ENFORCEMENT OF PENALTY 20
PROVISIONS ESTABLISHED UNDER PARAGRAPH (2) OF THIS SUBSECTION. 21

(2) (I) THE COMMISSION SHALL ESTA BLISH PENALTIES FOR A 22
LARGE LOAD CUSTOMER THAT VIOLATES A MEMO RANDUM OF UNDERSTAND ING 23
ENTERED INTO UNDER PARAGRAPH (1)(II) OF THIS SUBSECTION. 24

(II) THE PENALTIES SHALL ACCOUNT FOR BOTH THE BENEFITS 25
RECEIVED BY THE LARGE LOAD CUSTOMER AND THE HARM DONE TO THE STATE AND 26
RATEPAYERS BY THE VIOLATION. 27

(III) CONSENT UNDER PARAGRAPH (1)(II)2 OF THIS SUBSECTION 28
TO THE ENFORCEMENT O F PENALTIES ESTABLIS HED IN THIS PARAGRAP H SHALL 29
CONTINUE UNTIL THE COMMISSION PROVIDES W RITTEN NOTICE TO THE LARGE 30
LOAD CUSTOMER THAT RELIEVES THE CUSTOMER FROM THE OBLIGATION. 31

86 SENATE BILL 841

(C) A LARGE LOAD CUSTOMER MAY RECEIVE A GOLD R ATING ONLY IF THE 1
CUSTOMER DEMONSTRATE S THAT IT HAS ADEQUA TE INCREMENTAL RESOU RCES 2
SUFFICIENT TO COVER THE CUSTOMER ’S CAPACITY FOR AT LE AST 80% OF THE 3
CUSTOMER’S PEAK LOAD AS ASSIG NED BY PJM AND GROSSED UP BY TH E 4
APPROPRIATE RESERVE MARGIN THROUGH A COM BINATION OF INCREMENTAL 5
RESOURCES. 6

(D) A LARGE LOAD CUSTOMER MAY RECEIVE A PLATINUM RATING ONLY IF 7
THE CUSTOMER DEMONST RATES THAT IT HAS AD EQUATE INCREMENTAL 8
RESOURCES SUFFICIENT TO COVER THE CUSTOMER’S CAPACITY FOR 100% OF THE 9
CUSTOMER’S PEAK LOAD AS ASSIG NED BY PJM AND GROSSED UP BY TH E 10
APPROPRIATE RESERVE MARGIN THROUGH A COM BINATION OF INCREMEN TAL 11
RESOURCES. 12

(E) BENEFITS OF RECEIVING A GOLD OR PLATINUM RATING INCLUDE: 13

(1) FOR A LARGE LOAD CUS TOMER THAT HAS RECEI VED A GOLD 14
RATING, PRIORITIZATION FOR LOAD STUDIES AND INTERCONNECTION OVER LARGE 15
LOAD CUSTOMERS THAT DO NOT HAVE A GOLD OR PLATINUM RATING; AND 16

(2) FOR A LARGE LOAD CUSTOMER THAT HAS RECEIVED A PLATINUM 17
RATING: 18

(I) PRIORITIZATION FOR L OAD STUDIES AND 19
INTERCONNECTION OVER OTHER LARGE L OAD CUSTOMERS THAT D O NOT HAVE A 20
PLATINUM RATING; 21

(II) A GUARANTEE THAT PERMIT APPLICATIONS SUBMITTED TO 22
THE DEPARTMENT OF THE ENVIRONMENT SHALL BE PROCESSED WITHIN 12 23
MONTHS AFTER SUBMISSION, PENDING COMPLIANCE WITH APPLICABLE STATE AND 24
FEDERAL LAWS, INCLUDING EXISTING E NVIRONMENTAL JUSTICE REQUIREMENTS; 25
AND 26

(III) THE OPPORTUNITY TO P ROCURE AND PROVIDE , BEFORE 27
PERMITS ARE ISSUED , EQUIPMENT FOR ANY SU BSTATION NEEDED TO 28
INTERCONNECT THE LARGE LOAD CUSTOMER TO THE ELECTRIC SYSTEM. 29

(F) A LARGE LOAD CUSTOMER THAT DOES NOT HAVE A GOLD OR PLATINUM 30
RATING IS NOT ENTITL ED TO THE BENEFITS L ISTED IN SUBSECTION (E) OF THIS 31
SECTION. 32

SENATE BILL 841 87

(G) (1) IF A LARGE LOAD CUSTO MER WITH A PLATINUM RATING ELECTS 1
TO PROCURE AND PROVIDE EQUIPMENT FOR A SUBSTATION IN ACCORDANCE WITH 2
SUBSECTION (E)(2)(III) OF THIS SECTION, THE LARGE LOAD CUSTOMER: 3

(I) SHALL PROVIDE ALL TH E NECESSARY EQUIPMEN T FOR 4
CONSTRUCTING THE SUBSTATION INFRASTRUCTURE; 5

(II) MAY PROCURE THE EQUI PMENT BEFORE THE ELE CTRIC 6
COMPANY IN WHOSE SERVICE TERRITORY THE LARGE LOAD CUSTOMER IS OR WILL 7
BE LOCATED HAS ISSUED FINAL PERMITTING APPROVALS; AND 8

(III) MAY ENTER INTO AN AG REEMENT WITH THE ELE CTRIC 9
COMPANY THAT DETAILS WHAT EQUIPMENT THE E LECTRIC COMPANY MAY 10
PURCHASE FOR THE CON STRUCTION OF THE SUB STATION, BUT THE ENTIRETY OF 11
THE EQUIPMENT SHALL BE FUNDED OR PROVIDED BY THE LARGE LOAD CUSTOMER. 12

(2) ANY EQUIPMENT PROCURED BY THE LARGE LOAD CUSTOMER FOR 13
THE CONSTRUCTION OF A SUBSTATION UNDER THIS SUBSECTION SHALL MEET THE 14
NECESSARY INTERCONNE CTION REQUIR EMENTS OF THE ELECTR IC COMPANY IN 15
WHOSE SERVICE TERRITORY THE SUBSTATION WILL BE LOCATED. 16

(3) COSTS INCURRED AS A RESULT OF CONSTRUCTING A SUBSTATION 17
UNDER THIS SUBSECTION MAY NOT BE PASSED ON TO OTHER CUSTOMERS, EITHER 18
THROUGH AN ELECTRIC COMPANY’S RATES OR OTHERWISE , AND SHALL BE FULLY 19
BORNE BY THE LARGE LOAD CUSTOMER. 20

(4) EACH ELECTRIC COMPANY SHALL DEVELOP PROCES SES AND 21
TARIFFS FOR REVIEW A ND APPROVAL BY THE COMMISSION TO ALLOW F OR THE 22
LARGE LOAD CUSTOMER TO PROCURE AND PROVI DE EQUIPMENT UNDER T HIS 23
SUBSECTION. 24

(5) NOTHING IN THIS SUBSE CTION SHALL RELIEVE A LARGE LOAD 25
CUSTOMER THAT DOES N OT HAVE A VOLUNTARY CLEAN CAPACITY RATIN G FROM 26
ANY REQUIREMENT TO P AY THE COST OF CONST RUCTING A SUBSTATION 27
COMPLETED THROUGH TH E STANDARD PERMITTIN G AND INTERCO NNECTION 28
PROCESSES. 29

(H) (1) SUBJECT TO COMMISSION APPROVAL, EACH ELECTRIC COMPANY 30
SHALL ESTABLISH AN I NTERCONNECTION PROCESS FOR LARGE LOAD CU STOMERS 31
THAT PARTICIPATE IN THE VOLUNTARY CLEAN CAPACITY RATING PROGRAM. 32

(2) THE INTERCONNECTION P ROCESS ESTA BLISHED UNDER THIS 33
SECTION MAY NOT UNDU LY IMPACT THE TIME F RAME OR ABILITY OF C USTOMERS 34
88 SENATE BILL 841

THAT ARE NOT LARGE L OAD CUSTOMERS TO INT ERCONNECT WITH THE E LECTRIC 1
SYSTEM. 2

(3) THE INTERCONNECTION PROCESS SHALL INCLUDE: 3

(I) A STANDARD TIMELINE FOR LARGE LOAD CUSTOMERS THAT 4
PARTICIPATE IN THE VOLUNTARY CLEAN CAPACITY RATING PROGRAM BUT DO NOT 5
HAVE A GOLD OR PLATINUM RATING; AND 6

(II) A PRIORITIZATION PROCESS FOR LARGE LOAD CUSTOMERS 7
WITH A GOLD OR PLATINUM RATING. 8

(I) (1) BEFORE ENTERING INTO A CONTRACT FOR ELECTRIC SERVICE, A 9
LARGE LOAD CUSTOMER THAT PARTICIPATES IN THE VOLUNTARY CLEAN CAPACITY 10
RATING PROGRAM SHALL: 11

(I) SUBMIT A REQUEST FOR A LOAD STUDY UNDER § 4–212 OF 12
THIS ARTICLE TO DETE RMINE THE NECESSARY CONTRACT CAPACITY FOR THE 13
LARGE LOAD CUSTOMER; AND 14

(II) PAY: 15

1. A FEE IN AN AMOUNT TO BE SET BY THE COMMISSION 16
BUT NOT LESS THAN $1,000 PER MEGAWATT OF THE LOAD TO BE SERVED; AND 17

2. ANY OTHER APPLICABLE FEES ASSOCIATED WITH THE 18
STUDY. 19

(2) THE FEES REQUIRED UNDER PARAGRAPH (1)(II) OF THIS 20
SUBSECTION SHALL BE USED ONLY AS FOLLOWS: 21

(I) 50% OF THE FEES COLLECTE D SHALL BE USED FOR THE 22
ELECTRIC UNIVERSAL SERVICE PROGRAM ESTABLISHED UNDER § 5–5A–08 OF THE 23
HUMAN SERVICES ARTICLE; AND 24

(II) 50% OF THE FEES COLLECTE D SHALL BE USED FOR THE 25
DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT’S EMPOWER 26
MARYLAND LIMITED INCOME ENERGY EFFICIENCY PROGRAM. 27

7–306. 28

(a) (1) In this section the following words have the meanings indicated. 29

SENATE BILL 841 89

(4) “Eligible customer–generator” means a customer that owns and 1
operates, leases and operates, or contracts with a third party that owns and operates a 2
biomass, micro combined heat and power, solar, fuel cell, wind, or closed conduit hydro 3
electric generating facility that: 4

(i) is located on the customer’s premises or contiguous property; 5

(ii) is interconnected and operated in parallel with an electric 6
company’s transmission and distribution facilities; and 7

(iii) is intended primarily to offset all or part of the customer’s own 8
electricity requirements. 9

(7) “Net energy metering” means measurement of the difference between 10
the electricity that is supplied by an electric company and the electricity that is generated 11
by an eligible customer –generator and fed back to the electric grid over the eligible 12
customer–generator’s billing period. 13

(d) (1) The Commission shall require electric utilities to develop a standard 14
contract or tariff for net energy metering and make it available to eligible 15
customer–generators THAT APPLY FOR NET E NERGY METERING on a first –come, 16
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 SUBSECTION, 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 SY STEM 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. EXCEPT AS PROVIDED I N PARAGRAPH (4) OF THIS 28
SUBSECTION, ON OR BEFORE JANUARY 1, 2028, RECEIVED A QUEUE POS ITION 29
UNDER § 7–306.2 OF THIS SUBTITLE AND PAID AN INITIAL INTE RCONNECTION 30
DEPOSIT; AND 31

2. EXCEPT AS PROVIDED IN PARAGRAPHS (5) AND (6) OF 32
THIS SUBSECTION , IS PLACED IN SERVICE BY THE OPERATIONAL D EADLINES 33
ESTABLISHED BY THE COMMISSION UNDER COMAR 20.62.03.04C; AND 34
90 SENATE BILL 841

(II) AT THE TIME THE SYST EM MET THE REQUIREME NTS OF 1
ITEM (I)(1) OF THIS PARAGRAPH , THE ELECTRIC COMPANY IN WHOSE SERVICE 2
TERRITORY THE COMMUN ITY SOLAR ENERGY GEN ERATING SYSTEM IS LO CATED 3
HAD NOT MET THE NET ENERGY METERING CAPACITY LIMIT UNDER PARAGRAPH (3) 4
OF THIS SUBSECTION. 5

(3) AN ELECTRIC COMPANY MAY NOT OFFER NET ENERGY METERING 6
UNDER THIS SECTION TO A COMMUNITY SOLAR ENERGY GENERATING SYSTEM IF: 7

(I) THE ELECTRIC COMPANY HAD A 2025 ANNUAL PEAK 8
DEMAND OF 2,500 MEGAWATTS OR LESS; AND 9

(II) THE TOTAL COMBINED R ATED GENERATING CAPA CITY OF 10
COMMUNITY SOLAR ENERGY GENERATING SYSTEMS HOLDING QUEUE POSITIONS IN 11
A COMMUNITY SOLAR EN ERGY GENERATING SYST EM PROGRAM IN THE EL ECTRIC 12
COMPANY’S SERVICE TERRITORY UNDER § 7–306.2 OF THIS SUBTITLE BUT NOT YET 13
OPERATING EXCEEDS 150% OF THE TOTAL COMBINE D RATED GENERATING 14
CAPACITY OF COMMUNITY SOLAR ENERGY GENERATING SYSTEMS HOLDING QUEUE 15
POSITIONS IN THE COMMUNITY SOLAR ENERGY GENERATING SYSTEM PROGRAM BUT 16
NOT YET OPERATING AS OF APRIL 1, 2026. 17

(4) THE COMMISSION MAY GRANT AN EXTENSION TO THE DATE 18
SPECIFIED IN PARAGRAPH (2)(I)1 OF THIS SUBSECTION IF, DUE TO A FAILURE OF AN 19
ELECTRIC COMPANY TO COMPLY WITH A COMMISSION ORDER , REGULATION, 20
STATUTE, OR TARIFF , A COMMUNITY SOLAR ENERGY GENERAT ING SYSTEM WAS 21
UNABLE TO RECEIVE A QUEUE POSITION UNDER § 7–306.2 OF THIS SUBTITLE OR PAY 22
AN INITIAL INTERCONNECTION DEPOSIT. 23

(5) THE COMMISSION MAY GRANT AN EXTENSION TO AN 24
OPERATIONAL DEADLINE UNDER COMAR 20.62.03.04C IF: 25

(I) OPERATION OF A COMMUNITY SOLAR ENERGY GENERATING 26
SYSTEM IS DELAYED DUE TO INTERCONNECTION OR PERMITTING CHALLENGES OR 27
DELAYS; AND 28

(II) THE DEVELOPER PROVID ES DOCUMENTATION OF THE 29
CHALLENGE OR DELAY. 30

(6) IF THE SUCCESSOR PROG RAM REQUIRED UNDER § 7–306.4 OF 31
THIS SUBTITLE DOES N OT BEGIN BY JULY 1, 2027, INCLUDING ELECTRIC 32
COMPANIES HAVING FUL LY UPDATED TARIFFS A ND BILLING SYSTEMS T O 33
FACILITATE THE SUCCESSOR PROGRAM: 34
SENATE BILL 841 91

(I) A COMMUNITY SOLAR EN ERGY GENERATING SYST EM THAT HAS 1
NOT BEEN PLACED IN SERVICE BY JULY 1, 2027, BUT MEETS THE REQUIREMENTS OF 2
PARAGRAPH (2)(I)1 AND (II) OF THIS SUBSECTION S HALL RECEIVE AN EXTENSION 3
TO THE OPERATIONAL D EADLINES ESTABLISHED BY THE COMMISSION UNDER 4
COMAR 20.62.03.04C THAT IS EQUAL TO THE NUMBER OF DAYS PAST JULY 1, 2027, 5
THAT THE SUCCESSOR PROGRAM BEGAN; AND 6

(II) AN ELIGIBLE CUSTOMER –GENERATOR WITH A SOL AR 7
ENERGY GENERATING SYSTEM OF NOT MORE THAN 2 MEGAWATTS OF ALTERNATING 8
CURRENT THAT HAS APP LIED FOR NET ENERGY METERING ON OR AFTER JULY 1, 9
2027, SHALL REMAIN ELIGIBLE FOR NET ENERGY METERING UNDER THIS SECTION. 10

(7) AN ELIGIBLE CUSTOMER –GENERATOR OR COMMUNI TY SOLAR 11
ENERGY GENERATING SY STEM THAT , ON JULY 1, 2027, IS UNDER A NET ENERG Y 12
METERING CONTRACT OR TARIFF UNDER THIS SE CTION OR MEETS THE 13
REQUIREMENTS OF SU BPARAGRAPH (2)(I)1 AND (II) OF THIS SUBSECTION S HALL 14
REMAIN ELIGIBLE FOR NET ENERGY METERING UNDER THIS SECTION U NTIL THE 15
SYSTEM IS DECOMMISSI ONED IN ACCORDANCE W ITH THE CRITERIA EST ABLISHED 16
BY THE COMMISSION UNDER § 7–218(G) OF THIS TITLE. 17

(j) On or bef ore November 1 of each year, the Commission shall report to the 18
General Assembly, in accordance with § 2 –1257 of the State Government Article, on the 19
status of the net ENERGY metering program under this section AND § 7–306.4 OF THIS 20
SUBTITLE, including: 21

(1) the amount of capacity of electric generating facilities owned and 22
operated by eligible customer–generators in the State by type of energy resource; 23

(2) based on the need to encourage a diversification of the State’s energy 24
resource mix to ensure reliability, whether the rated generating capacity limit in subsection 25
(d) of this section should be altered; [and] 26

(3) THE STATUS OF THE IM PLEMENTATION AND EFFICACY OF THE 27
SUCCESSOR PROGRAM DE VELOPED AND IMPLEMEN TED UNDER § 7–306.4 OF THIS 28
SUBTITLE; AND 29

(4) other pertinent information. 30

7–306.2. 31

(a) (1) In this section the following words have the meanings indicated. 32

(4) “Community solar energy genera ting system” means a solar energy 33
system that: 34
92 SENATE BILL 841

(i) is connected to the electric distribution system serving the State; 1

(ii) is located in the same electric service territory as its subscribers; 2

(iii) is attached to the electric meter of a subsc riber or is a separate 3
facility with its own electric meter; 4

(iv) credits its generated electricity, or the value of its generated 5
electricity, to the bills of the subscribers to that system through virtual net energy 6
metering; 7

(v) has at least two subscribers but no limit to the maximum number 8
of subscribers; 9

(vi) does not have subscriptions larger than 200 kilowatts 10
constituting more than 60% of its kilowatt–hour output; 11

(vii) has a generating capacity that does not exceed 5 megawatts as 12
measured by the alternating current rating of the system’s inverter; 13

(viii) may be owned by any person; and 14

(ix) with respect to community solar energy generating systems 15
constructed under the Program, [serves at least 40% of its kilowatt –hour output to LMI 16
subscribers] unless the solar energy system is wholly owned by the subscribers to the solar 17
energy system, EITHER: 18

1. SERVES AT LEAST 40% OF ITS KILOWATT –HOUR 19
OUTPUT TO LMI SUBSCRIBERS THROUGH A SUBSCRIBER ORGANIZ ATION OR 20
SUBSCRIPTION COORDINATOR; OR 21

2. CONTRIBUTES TO THE MARYLAND STRATEGIC 22
ENERGY INVESTMENT FUND, IN ACCORDANCE WITH S UBSECTION (O) OF THIS 23
SECTION, THE MONETARY EQUIVALENT OF THE BILL CREDIT VALUE ALLOCATED TO 24
RESIDENTIAL SUBSCRIBERS FOR 10% OF THE OUTPUT OF THE COMMUNITY SOLAR 25
ENERGY GENERATING SYSTEM. 26

(7) “LMI subscriber” means a subscriber that: 27

(i) is low–income; 28

(ii) is moderate–income; or 29

(iii) resides in a census tract that is: 30

SENATE BILL 841 93

1. an overburdened community; and 1

2. an underserved community. 2

(d) (1) (i) The Commission shall establish and maintain a Community 3
Solar Energy Generating Systems Program. 4

(ii) The structure of the Program is as provided in this subsection. 5

(13) (i) Except as provided in subparagraph (ii) of this p aragraph, a 6
community solar energy generating system may not be located on the same [or an adjacent] 7
parcel of land as an existing or proposed community solar energy generating system if the 8
total installed capacity of all community solar energy generating systems on the [same or 9
adjacent] parcel would exceed 5 megawatts. 10

(ii) The prohibition under subparagraph (i) of this paragraph does 11
not apply to projects constructed: 12

1. on the rooftops of buildings; 13

2. in areas that are zoned for industrial use; 14

3. on brownfields locations and clean fill sites; 15

4. over parking lots or roadways; 16

5. on multilevel parking structures; 17

6. on or over transportation or public rights–of–way; 18

7. at airports; 19

8. on land that: 20

A. was previously zoned for industrial use or is ecologically 21
compromised; and 22

B. is not targeted for mitigation or restoration; or 23

9. in any location if the combined capacity of all community 24
solar energy generating systems on the same [or adjacent] parcel does not exceed 10 25
megawatts and: 26

A. at least 75% of the aggregate capacity of the co –located 27
community solar energy generating systems serves LMI subscribers; 28

94 SENATE BILL 841

B. for a site without a community solar energy generating 1
system installed before the start of the Program under paragraph (20) of this subsection, 2
all of the community solar energy generating systems installed after the start of the 3
Program are used for agrivoltaics; or 4

C. for a site with a community solar energy gene rating 5
system installed before the start of the Program under paragraph (20) of this subsection, 6
each new community solar energy generating system installed after the start of the 7
Program is used for agrivoltaics. 8

(O) (1) ON OR BEFORE FEBRUARY 1 EACH YEAR, A COMMUNITY SOLAR 9
ENERGY GENERATING SY STEM THAT COMPLIES W ITH SUBSECTION (A)(4)(IX)2 OF 10
THIS SECTION SHALL: 11

(I) CALCULATE THE MONETARY RETAIL VALUE EQUIVALENT OF 12
10% OF THE OUTPUT FOR TH E COMMUNITY SOLAR EN ERGY GENERATING SYST EM 13
FOR THE PREVIOUS YEAR; 14

(II) PAY THE CALCULATED A MOUNT INTO THE ENERG Y 15
ASSISTANCE ACCOUNT O F THE MARYLAND STRATEGIC ENERGY INVESTMENT 16
FUND; AND 17

(III) NOTIFY THE COMMISSION THAT THE P AYMENT HAS BEEN 18
MADE. 19

(2) THE AMOUNT PAID INTO THE MARYLAND STRATEGIC ENERGY 20
INVESTMENT FUND UNDER THIS SUBSE CTION SHALL BE USED ONLY FOR DIRECT 21
ENERGY ASSISTANCE PROGRAMS IN ACCORDANCE WITH § 9–20B–05 OF THE STATE 22
GOVERNMENT ARTICLE. 23

7–306.4. 24

(A) (1) IN THIS SECTION THE F OLLOWING WORDS HAVE THE MEANINGS 25
INDICATED. 26

(2) “ELIGIBLE CUSTOMER–GENERATOR” HAS THE MEANING STAT ED 27
IN § 7–306 OF THIS SUBTITLE. 28

(3) “NET ENERGY METERING” HAS THE MEANING STATED IN § 7–306 29
OF THIS SUBTITLE. 30

(B) IT IS THE INTENT OF THE GENERAL ASSEMBLY TO TRANSITION TO A NET 31
ENERGY METERING PROGRAM THAT: 32

SENATE BILL 841 95

(1) INCREASES BENEFITS T O RATEPAYERS BY LOWE RING ELECTRIC 1
SYSTEM COSTS THROUGH THE USE OF FLEXIBLE CUSTOMER–SITED RENEWABLE 2
ENERGY RESOURCES; 3

(2) PROVIDES FAIR COMPEN SATION TO ELIGIBLE 4
CUSTOMER–GENERATORS; 5

(3) IS DESIGNED TO MAKE PROGRESS TOWARD MEETING THE STATE’S 6
DEMAND–SIDE, ENERGY STORAGE, AND CLEAN ENERGY GOALS; AND 7

(4) PROVIDES INCENTIVES FOR THE DEVELOPMENT OF DISTRIBUTED 8
GENERATION THAT ARE LESS THAN THE INCENTIVES PROVIDED BY THE NET ENERGY 9
METERING PROGRAM UNDER § 7–306 OF THIS SUBTITLE. 10

(C) ON OR BEFORE FEBRUARY 1, 2027, THE COMMISSION, BY ORDER OR 11
REGULATION, SHALL DEVELOP AND IMPLEMENT, AS A SUCCESSOR PROGRAM TO THE 12
NET ENERGY METERING PROGRAM UNDER § 7–306 OF THIS SUBTITLE , A NET 13
ENERGY METERING PROGRAM TO BEGIN JULY 1, 2027, THAT: 14

(1) PROVIDES INCENTIVES FOR THE DEVELOPMENT OF DISTRIBUTED 15
GENERATION TO ELIGIBLE CUSTOMER–GENERATORS UNDER §§ 7–306 AND 7–306.3 16
OF THIS SUBTITLE AND COMMUNITY SOLAR ENERGY GENERATING SYSTEMS UNDER 17
§ 7–306.2 OF THIS SUBTITLE; 18

(2) MINIMIZES RATEPAYER COSTS IN THE SHORT T ERM AND IN THE 19
LONG TERM; 20

(3) BALANCES, ON A STATEWIDE BASIS AND ACROSS TEC HNOLOGIES 21
AND INDUSTRY SECTORS PARTICIPATING IN NET ENERGY METERING, AND WHILE 22
RECOGNIZING DIFFERENCES IN SYSTEM BENEFITS BETWEEN PROJECT TYPES WHEN 23
DESIGNING TARIFFS IN ACCORDANCE WITH PARAGRAPH (4) OF THIS SUBSECTION: 24

(I) 1. FAIR COMPENSATION FOR ENERGY EXPORTS; AND 25

2. THE BENEFITS OF AN E LIGIBLE 26
CUSTOMER–GENERATOR’S OR FACILITY ’S REDUCED LOAD ON TH E ELECTRIC 27
TRANSMISSION AND DISTRIBUTION SYSTEM, INCLUDING BENEFITS THAT MAY VARY 28
BASED ON PROJECT LOCATION, SITING, TIME TO OPERATION, OR USE OF EXISTING 29
STRUCTURES OR DEVELOPED PROPERTY; AGAINST 30

(II) 1. THE NEEDS OF THE ELE CTRIC TRANSMISSION A ND 31
ELECTRIC DISTRIBUTION SYSTEM; 32

96 SENATE BILL 841

2. RATEPAYER COSTS AND BENEFITS; AND 1

3. POTENTIAL IMPACTS ON CUSTOMERS , INCLUDING 2
LOW– AND MODERATE–INCOME CUSTOMERS, WHO DO NOT PARTICIPATE IN THE NET 3
ENERGY METERING PROG RAM RESULTING FROM E LIGIBLE 4
CUSTOMER–GENERATORS’ REDUCED CONTRIBUTION S TO THE DISTRIBUTIO N 5
SYSTEM; AND 6

(4) MAY ESTABLISH DIFFER ENT TARIFFS FOR THE FOLLOWING 7
MARKET SEGMENTS THAT TAKE INTO ACCOU NT THE CHARACTERISTI CS OF EACH 8
MARKET SEGMENT: 9

(I) RESIDENTIAL ELIGIBLE–CUSTOMER GENERATORS; 10

(II) NONRESIDENTIAL ELIGIBLE–CUSTOMER GENERATORS; 11

(III) COMMUNITY SOLAR ENERGY GENERATING SYSTEMS UNDER 12
§ 7–306.2 OF THIS SUBTITLE; SUBTITLE THAT ARE SI TED ON COMMERCIAL OR 13
INDUSTRIAL ROOFTOPS; 14

(IV) OTHER COMMUNITY SOLAR ENERGY GENERATING SYSTEMS 15
UNDER § 7–306.2 OF THIS SUBTITLE; 16

(IV) (V) AGGREGATED NET ENERG Y METERED FACILITIES 17
UNDER § 7–306.3 OF THIS SUBTITLE; AND 18

(V) (VI) ANY ADDITIONAL MARKET SEGMENT OR SUBSET OF A 19
MARKET SEGMENT IDENTIFIED BY THE COMMISSION. 20

(D) ON OR BEFORE JANUARY 1, 2027, THE COMMISSION SHALL PROV IDE 21
NOTICE TO THE GENERAL ASSEMBLY, IN ACCORDANCE WITH § 2–1257 OF THE 22
STATE GOVERNMENT ARTICLE, ON THE STATUS OF THE DE VELOPMENT OF THE 23
PROGRAM REQUIRED UNDER SUBSECTION (C) OF THIS SECTION. 24

(E) THE COMMISSION SHALL PRIORITIZE THE REVIEW AN D APPROVAL OF 25
APPLICATIONS FROM A PROSPECTIVE ELIGIBLE CUSTOMER–GENERATOR FOR 26
PARTICIPATION IN THE PROGRAM IMPLEMENTED UNDER SUBSECTION (C) OF THIS 27
SECTION IF, AT THE TIME THE PROG RAM WAS IMPLEMENTED , THE PROSPECTIVE 28
ELIGIBLE CUSTOMER –GENERATOR WAS IN THE QUEUE FOR THE NET EN ERGY 29
METERING PROGRAM UNDER § 7–306 OF THIS SUBTITLE. 30

(F) THE PROGRAM IMPLEMENT ED BY THE COMMISSION UNDER 31
SUBSECTION (C) OF THIS SECTION SHAL L BE AVAILABLE UNTIL THE COMBINED 32
SENATE BILL 841 97

TOTAL RATED GENERATI NG CAPACITY OWNED AN D OPERATED UNDER THE NET 1
ENERGY METERING PROG RAM UNDER § 7–306 OF THIS SUBTITLE AND THE NET 2
ENERGY METERING PROGRAM IMPLEMENTED UNDER THIS SECTION REACHES 6,000 3
MEGAWATTS. 4

7–321. 5

(A) IN THIS SECTION , “PORTABLE SOLAR ENERG Y GENERATING SYSTEM ” 6
MEANS A MOVABLE PHOTOVOLTAIC SOLAR ENERGY GENERATION DEVICE THAT IS: 7

(1) DESIGNED TO BE CONNE CTED TO A BUILDING ’S ELECTRICAL 8
SYSTEM THROUGH A STANDARD ELECTRICAL OUTLET; 9

(2) PRIMARILY INTENDED T O OFFSET PART OF THE BUILDING’S 10
ELECTRICITY CONSUMPTION; 11

(3) LIMITED TO SUPPLYING A MAXIMUM POWER OUTP UT OF NOT 12
MORE THAN 1,200 WATTS BACK TO THE ELECTRIC SYSTEM; AND 13

(4) CERTIFIED BY UNDERWRITERS LABORATORY OR AN EQUIVALENT 14
NATIONALLY RECOGNIZED TESTING LABORATORY. 15

(B) A PERSON MAY PURCHASE AND INSTALL A PORTAB LE SOLAR ENERGY 16
GENERATING SYSTEM FOR RESIDENTIAL USE ONLY. 17

(C) A PORTABLE SOLAR ENERGY GENERATING SYSTEM: 18

(1) IS NOT SUBJECT TO THE REQUIREMENTS OF §§ 7–306 AND 7–306.1 19
OF THIS SUBTITLE; 20

(2) IS NOT ELIGIBLE FOR INCLUSION IN MEETING THE RENEWABLE 21
ENERGY PORTFOLIO STANDARD; AND 22

(3) MAY NOT GENERATE RENEWABLE ENERGY CREDITS OF ANY TYPE. 23

(D) AN ELECTRIC COMPANY: 24

(1) MAY NOT REQUIRE A CUSTOMER U SING A PORTABLE SOLA R 25
ENERGY GENERATING SYSTEM TO: 26

(I) OBTAIN THE ELECTRIC COMPANY’S APPROVAL BEFORE 27
INSTALLING OR USING THE PORTABLE SOLAR ENERGY GENERATING SYSTEM; 28

98 SENATE BILL 841

(II) PAY ANY FEE OR CHARG E RELATED TO THE POR TABLE 1
SOLAR ENERGY GENERATING SYSTEM’S ABILITY TO FEED EL ECTRICITY BACK INTO 2
THE ELECTRIC SYSTEM; OR 3

(III) EXCEPT AS PROVIDED IN SUBSECTION (E) OF THIS SECTION, 4
INSTALL ANY ADDITION AL CONTROLS OR EQUIP MENT BEYOND WHAT IS 5
INTEGRATED INTO THE PORTABLE SOLAR ENERGY GENERATING SYSTEM; AND 6

(2) IS NOT LIABLE FOR ANY DAMAGE CAUSED BY A PORTABLE SOLAR 7
ENERGY GENERATING SYSTEM. 8

(E) A CUSTOMER USING A PORTABLE SOLAR ENERGY GENERATING SYSTEM 9
SHALL: 10

(1) NOTIFY THE ELECTRIC COMPANY PROVIDING SE RVICE IN THE 11
SERVICE TERRITORY IN WHICH THE GENERAT ING SYSTEM WILL BE I NSTALLED 12
BEFORE INSTALLATION; 13

(2) PROVIDE TO THE ELECT RIC COMPANY PROVIDIN G SERVICE IN 14
THE SERVICE TERRITOR Y IN WHICH THE GENER ATING SYSTEM WILL BE OR IS 15
INSTALLED A CERTIFIC ATION OF THE SAFETY FEATURES AND MAXIM UM 16
GENERATING CAPACITY OF THE GENERATING SYSTEM; AND 17

(3) IF THE GENERATING SYSTEM REQUIRES AN AUTOMATIC LOCKING 18
DISCONNECT SWITCH TO BE INSTALLED, PAY FOR THE SWITCH INSTALLATION. 19

7–322. 20

THE COMMISSION MAY NOT ADOPT OR ENFORCE ANY REGULATION OR ORDER 21
THAT PROHIBITS A PUB LIC SERVICE COMPANY FROM OFFERING A DISC OUNT OR 22
PAYMENT PLAN FOR THE CONNECTION OR EXTENSION OF A NATURAL GAS LINE TO A 23
CUSTOMER’S PROPERTY. 24

7–505. 25

(b) (1) The Commission shall issue the orders or adopt the regulations 26
required under this subsection before the implementation of customer choice. 27

(2) The Commission shall order a universal service program, to be made 28
available on a statewide basis, to benefit low –income customers, in accordance with [§ 29
7–512.1 of this subtitle] § 5–5A–08 OF THE HUMAN SERVICES ARTICLE. 30

(d) (2) (ii) The cap required under paragraph (1) of this subsection applies 31
to the recovery of: 32
SENATE BILL 841 99

3. costs for the universal service program established under 1
[§ 7–512.1 of this subtitle] § 5–5A–08 OF THE HUMAN SERVICES ARTICLE. 2

7–510.3. 3

(o) The Commission shall establish procedures for an electric customer that is 4
receiving electricity supply through a community choice aggregator to receive any bill 5
assistance credit or arrearage assistance to which the cus tomer may be entitled under [§ 6
7–512.1 of this subtitle ] § 5–5A–08 OF THE HUMAN SERVICES ARTICLE or any other 7
federal or State bill and arrearage assistance administered by the Office of Home Energy 8
Programs. 9

7–1006. 10

(a) (1) [The Commission may approve or require an investor –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 generatin g 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 system 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 24
MARYLAND ENERGY ADMINISTRATION, IN CONSULTATION WITH THE COMMISSION, 25
MAY prioritize the offer of incentives or rebates under this section to low – or 26
moderate–income customers. 27

(b) [In determining whether to req uire an investor –owned electric company to 28
offer 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 be nefit of resiliency and service outage avoidance for customers 32
with on–site generating systems; and 33
100 SENATE BILL 841

(3) the potential for investor–owned electric companies to reduce expenses 1
relating to electric distribution system infrastructure by leveraging customer s’ on–site 2
generating systems. 3

(c) The Commission shall consider establishing a limit on the amount of 4
incentives or rebates issued in a manner that achieves deployment goals while mitigating 5
potential 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 fed eral 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 18
be recovered by the investor –owned electric company within the calendar year in which 19
those costs were incurred. 20

(c) Notwithstanding any provision of this subtitle, an investor –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

7–1008. 24

THE COMMISSION SHALL DEVELOP GUIDELINES AND LIMITATIONS FOR: 25

(1) CHARGING AND DISCH ARGING BEHIND –THE–METER ENERGY 26
STORAGE FACILITIES; AND 27

(2) WHEN ELECTRIC COMPAN IES MAY PROHIBIT 28
BEHIND–THE–METER ENERGY STORAGE FACILITIES FROM BEIN G STUDIED BY AN 29
ELECTRIC COMPANY AS AN ADDITIONAL LOAD U NDER A LOAD STUDY CO NDUCTED 30
UNDER § 4–212 OF THIS ARTICLE. 31

SENATE BILL 841 101

7–1201. 1

(a) In this part the following words have the meanings indicated. 2

(g) “Large capacity energy resource” means a generating station or energy storage 3
device that[: 4

(1) on or before January 1, 2025: 5

(i) has applied to PJM for interconnection approval; or 6

(ii) has been approved by PJM for interconnection; and 7

(2)] has a capacity rating equal to or greater than 20 megawatts after 8
accounting for the effective load carrying capability. 9

7–1216. 10

(a) The Commission may not approve an application for a nuclear energy 11
generation project submitted under § 7–1212 of this subtitle unless: 12

(1) the project is connected to the electric system serving the State; 13

(2) over the duration of the proposed long –term pricing schedule, the 14
projected net rate impact for an average residential customer, based on annual 15
consumption of 12,000 kilowatt–hours and combined with the projected net rate impact of 16
other nuclear energy generation projects, does not exceed an amount determined by the 17
Commission; 18

(3) over the duration of the proposed long –term pricing schedule, the 19
projected net rate impact for all nonresidential customers, considered as a blended average 20
and combined with the projected net rate impact of other nuclear energy genera tion 21
projects, does not exceed a percentage determined by the Commission of nonresidential 22
customers’ total annual electric bills; and 23

(4) the price specified in the proposed long–term pricing schedule does not 24
exceed an amount determined by the Commission. 25

(b) When calculating the projected net average rate impacts for nuclear energy 26
generation projects under this section, the Commission shall [apply the same] CONSIDER 27
THE net long–term cost per megawatt –hour APPLIED to residential and nonresidential 28
customers. 29

7–1220. 30

(a) In this section, “zero–emission credit” means [the difference between the price 31
that a nuclear energy generating station with a long–term pricing schedule approved in an 32
102 SENATE BILL 841

order issued under § 7–1217 of this subtitle may receive on the wholesale market and the 1
cost of constructing the nuclear energy generating station ] A CREDIT EQUAL TO TH E 2
ENVIRONMENTAL IMPACT OF 1 MEGAWATT–HOUR OF ELECTRICITY THAT IS 3
DERIVED FROM A NUCLE AR ENERGY GENERATING STATION APPROVED BY THE 4
COMMISSION UNDER § 7–1217 OF THIS SUBTITLE. 5

(b) The Commission shall adopt regulations that: 6

(1) establish the nuclear energy long –term pricing purchase obligation 7
sufficiently in advance to allow an electric company to reflect nucle ar energy long –term 8
pricing costs as a nonbypassable surcharge that is added to the electric company’s base 9
distribution rate on customer bills; 10

(2) define rules that facilitate and ensure the secure and transparent 11
transfer of revenues and long–term pricing payments among parties; 12

(3) define the terms and procedures of the nuclear energy long –term 13
pricing schedule obligations, including: 14

(i) establishing a formula and process to adjust the value of the 15
long–term pricing schedule every 2 years based on projected wholesale market prices 16
adjusted by the locational value and earning potential in the PJM region of the nuclear 17
energy generating station; and 18

(ii) establishing a per megawatt hour cap on any long –term pricing 19
schedule specified in an order issued under § 7–1217 of this subtitle; 20

(4) require the Commission to establish an escrow account; and 21

(5) to meet the total statewide long –term pricing purchase obligation for 22
all applications approved in an order issued under § 7 –1217 of th is subtitle, require the 23
Commission to annually establish each electric company’s zero –emission credit purchase 24
obligation based on the most recent final electricity sales data as reported by PJM 25
Interconnection and measured at the customer’s meter in prop ortion to the electric 26
company’s share of statewide load. 27

(c) (1) Each electric company shall procure from the escrow account 28
established by regulation under this section a quantity of zero –emission credits equal to 29
the electric company’s respective percentage of retail electric sales each year. 30

(2) Subject to any escrow account reserve requirement the Commission 31
establishes, if there are insufficient zero –emission credits available to satisfy the electric 32
companies’ zero–emission credit purchase obligations, the overpayment shall be distributed 33
to electric companies to be refunded or credited to each distribution customer based on the 34
customer’s consumption of electricity supply that is subject to the renewable energy 35
portfolio standard. 36

SENATE BILL 841 103

(d) A debt, an obligation, or a liability of a nuclear energy generation project or of 1
an owner or operator of a nuclear energy generation project may not be considered a debt, 2
an obligation, or a liability of the State. 3

(E) (1) SUBJECT TO PARAGRAPH (2) OF THIS SUBS ECTION, THE 4
COMMISSION MAY APPROV E AN INCREASE OF THE TOTAL COST OF A NUCL EAR 5
ENERGY GENERATION PR OJECT UNDER A LONG –TERM PRICING PURCHAS E 6
OBLIGATION. 7

(2) THE TOTAL COST OF A N UCLEAR ENERGY GENERATION PROJECT 8
UNDER A LONG–TERM PRICING PURCHASE OBLIGATION MAY NOT BE INCREASED BY 9
MORE THAN 15% OF THE ORIGINAL COST. 10

7–1225. 11

(a) The Commission shall include specifications in a procurement solicitation 12
issued under § 7–1224 of this subtitle that require each proposal to: 13

(1) include a proposed pricing schedule for the transmission energy storage 14
project that: 15

(i) is for at least 15 years; and 16

(ii) represents the anticipated monthly wholesale value of capacity 17
per megawatt and other benefits identified in a cost–benefit analysis, but not including any 18
anticipated wholesale energy and ancillary services revenue; 19

(2) include a cost –benefit analysis of the project and proposed pricing 20
schedule comparison on a dollar–per–megawatt–hour basis, including an analysis of: 21

(i) the locational value and time to deployment of the energy storage 22
devices; 23

(ii) the value of long –duration storage, including its capacity 24
accreditation value for resource adequacy as measured in PJM Interconnection ’s effective 25
load carrying capability class ratings; 26

(iii) avoided or delayed transmission, generation, and distribution 27
costs; 28

(iv) avoided emissions in the short term and projected avoided 29
emissions in the long term, measured using the social cost of carbon, as determined by the 30
U.S. Environmental Protection Agency as of January 1, 2025; 31

(v) the value of the rapid deployment of energy storage devices; 32

104 SENATE BILL 841

(vi) the value of reliability during periods of electric system stress, 1
including the ability to deliver capacity during periods of extreme w eather, fuel scarcity, 2
and large unplanned resource outages; and 3

(vii) any other avoided costs; 4

(3) ensure that the owner or operator of the project has the capability to 5
export electricity for sale on the wholesale market and bid into the PJM capac ity market 6
under an agreement with PJM Interconnection; 7

(4) ensure that the energy storage devices can deliver their effective 8
nameplate capacity; 9

(5) incorporate a community benefit agreement; 10

(6) attest in writing that all contractors and subcontractors working on the 11
project have been in compliance with federal and State wage and hour laws for the 12
immediately preceding 3 years or the duration of the contractor ’s or subcontractor ’s 13
business operation, whichever is longer; and 14

(7) ensure a competitive bidding process, including by redacting 15
proprietary information provided to the Commission. 16

(b) An energy storage device shall be considered capable of delivering its effective 17
nameplate capacity under this section if: 18

(1) the energy storage device will have the capacity interconnection rights 19
with PJM Interconnection equal to its effective nameplate capacity; or 20

(2) (i) the energy storage device will have surplus interconnection 21
service with PJM Interconnection; and 22

(ii) the ability of the energy storage device to deliver its effective 23
nameplate capacity will be limited only by the generation of another nonenergy storage 24
generation resource with which the energy storage device shares a point of interconnection 25
to the electric transmission system. 26

(c) [Front–of–the–meter] PROJECTS THAT INCLUDE ANY OF THE FOLLOWING 27
DEVICES MAY BE INCLU DED IN A PROPOSAL IN RESPONSE TO A PROCUR EMENT 28
SOLICITATION UNDER § 7–1224 OF THIS SUBTITLE: 29

(1) FRONT–OF–THE–METER transmission energy storage devic es paired 30
with Tier 1 or Tier 2 renewable sources, as defined under § 7–701 of this title [, may be 31
included in a proposal in response to a procurement solicitation under § 7–1224 of this 32
subtitle]; AND 33

SENATE BILL 841 105

(2) FRONT–OF–THE–METER TRANSMISSION E NERGY STORAGE 1
DEVICES INTERCONNECTED TO A FACILITY WIT HIN THE STATE THAT IS USED TO 2
TRANSMIT ELECTRICITY TO ANOTHER STATE. 3

7–1302. 4

(a) There is a Strategic Energy Planning Office. 5

(b) (1) The head of the Office is the Director. 6

(2) (i) The Director shall be appointed by the Governor with the advice 7
and consent of the Senate. 8

(ii) 1. The term of the Director is 5 years and begins on July 1. 9

2. THE FIRST TERM OF THE DIRECTOR SHALL BEGIN ON 10
JULY 1, 2026. 11

(iii) At the end of a term, the Director continues to serve until a 12
successor is appointed and qualifies. 13

(iv) A Director who is appointed after a term has begun serves for the 14
rest of the term and until a successor is appointed and qualifies. 15

(v) A Director may serve more than one term. 16

(3) The Governor may remove the Director for incompetence or misconduct 17
in accordance with § 3–307 of the State Government Article. 18

(4) The Director is entitled to a salary as provided in the State budget. 19

7–1304. 20

(c) (1) On or before November 1 e ach year, the Senate Committee on 21
Education, Energy, and the Environment and the House [Economic Matters ] 22
ENVIRONMENT AND TRANSPORTATION Committee may jointly request the Office to 23
assess up to five policy scenarios. 24

(2) Not later than 1 year after the date the Office receives a request under 25
paragraph (1) of this subsection, the Office shall submit a report of the results of the 26
requested policy scenarios to the Senate Committee on Education, Energy, and the 27
Environment a nd the House [Economic Matters ] ENVIRONMENT AND 28
TRANSPORTATION Committee in accordance with § 2 –1257 of the State Government 29
Article. 30

Article – Real Property 31
106 SENATE BILL 841

14–134. 1

(A) (1) IN THIS SECTION THE F OLLOWING WORDS HAVE THE MEANINGS 2
INDICATED. 3

(2) “DATA CENTER” MEANS A BUILDING OR GROUP OF BUILDINGS: 4

(I) USED TO HOUSE COMPUTE R SYSTEMS , COMPUTER 5
STORAGE EQUIPMENT, AND ASSOCIATED INFRA STRUCTURE THAT BUSIN ESSES OR 6
OTHER ORGANIZATIONS USE TO ORGANIZE , PROCESS, STORE, AND DISSEMINATE 7
LARGE AMOUNTS OF DATA; 8

(II) THAT HAS OR IS PROJEC TED TO HAVE AN AGGRE GATE 9
DEMAND OF AT LEAST 5 MEGAWATTS; AND 10

(III) THAT HAS OR IS PROJEC TED TO HAVE A LOAD F ACTOR OF 11
MORE THAN 80%. 12

(3) “DEVELOPMENT DISTRICT” MEANS AN AREA OR ARE AS WITHIN 13
THE CITY OF BALTIMORE DESIGNATED BY AN ORDINANCE OF THE MAYOR AND CITY 14
COUNCIL OF BALTIMORE. 15

(4) “TAX INCREMENT” MEANS FOR ANY TAX YE AR THE AMOUNT BY 16
WHICH THE ASSESSABLE BASE AS OF JANUARY 1 PRECEDING THAT TAX Y EAR 17
EXCEEDS THE ORIGINAL TAXABLE VALUE , DIVIDED BY THE ASSES SMENT RATIO 18
USED TO DETERMINE THE ORIGINAL TAXABLE VALUE. 19

(B) THIS SECTION APPLIES ONLY IN BALTIMORE CITY. 20

(C) (1) EXCEPT AS PROVIDED IN PARAGRAPH (2) OF THIS SUBSECTION, A 21
PERSON MAY NOT CONSTRUCT A DATA CENTER IN A DEVELOPMENT DISTRICT THAT 22
IS SUBJECT TO TAX INCREMENT REPAYMENT ON OUTSTANDING BONDS. 23

(2) THE PROHIBITION IN PARAGRAPH (1) OF THIS SUBSECTION DOES 24
NOT APPLY TO THE CON STRUCTION OF A DATA CENTER IN THE CITY–WIDE 25
AFFORDABLE HOUSING DEVELOPMENT DISTRICT ESTABLISHED UNDER 26
BALTIMORE CITY ORDINANCE NO. 24–443, ENACTED DECEMBER 4, 2024. 27

Article – State Finance and Procurement 28

4–101. 29

(a) In this title the following words have the meanings indicated. 30
SENATE BILL 841 107

(b) “Department” means the Department of General Services. 1

4–323. 2

THE DEPARTMENT MAY ISSUE A REQUEST FOR PROPOSALS FOR A LONG–TERM 3
LEASE FOR NEW OR EXPANDED GENERATING STATIONS OR ENERGY STORAGE 4
DEVICES ON ANY STATE–OWNED SITE IDENTIFIE D IN THE STUDY UNDER SECTION 5
15 OF CHAPTER ____ (S.B. 841) OF THE ACTS OF THE GENERAL ASSEMBLY OF 2026 6
IF, ACCORDING TO THE STU DY, THE SITE IS NOT SUBJ ECT TO SIGNIFICANT 7
PERMITTING BOTTLENECKS OR BARRIERS. 8

6–226. 9

(a) (2) (i) This paragraph does not apply in fiscal years 2024 through 2028. 10

(ii) Notwithstanding any other provision of l aw, and unless 11
inconsistent with a federal law, grant agreement, or other federal requirement or with the 12
terms of a gift or settlement agreement, net interest on all State money allocated by the 13
State Treasurer under this section to special funds or accou nts, and otherwise entitled to 14
receive interest earnings, as accounted for by the Comptroller, shall accrue to the General 15
Fund of the State. 16

(iii) The provisions of subparagraph (ii) of this paragraph do not 17
apply to the following funds: 18

212. the Department of Social and Economic Mobility Special 19
Fund; [and] 20

213. the Population Health Improvement Fund; AND 21

214. THE GREEN AND RENEWABLE ENERGY EFFICIENCY 22
FOR NONPROFITS LOAN FUND. 23

13–217. 24

(a) In this section, “multi–year contract ” means a procurement contract that 25
requires appropriations for more than 1 fiscal year. 26

(b) (1) A unit may enter into a multi–year contract subject to: 27

(i) standards established by the Board; and 28

(ii) regulations adopted by the primary procurement unit that is 29
responsible for the type of procurement involved. 30

108 SENATE BILL 841

(2) A multi–year contract shall be subject to review and approval by that 1
primary procurement unit. 2

(c) A multi–year contract may not be approved unless each unit reviewing the 3
multi–year contract determines that: 4

(1) the estimated requirements of the State: 5

(i) cover the period of the multi–year contract; 6

(ii) are reasonably firm; and 7

(iii) are continuing; and 8

(2) the multi –year contract will serve the best interests of the State by 9
encouraging effective competition or otherwise promoting economy in State procurement. 10

(d) (1) If money sufficient for the continued performance of a multi –year 11
contract is not appropriated for any fiscal year, the multi –year contract terminates 12
automatically on the earlier of: 13

(i) the last day of the fiscal year for which money last was 14
appropriated; or 15

(ii) the date provided in the termination clause of the procurement 16
contract. 17

(2) If the multi–year contract is terminated under this subsection, the unit 18
shall reimburse the contractor for the reasonable value of any nonrecurring costs that were: 19

(i) incurred as a result of the multi–year contract; but 20

(ii) not amortized in the price of the supplies or services delivered 21
under the multi–year contract. 22

(3) The cost of termination under this subsection may be paid from any 23
appropriation available for that purpose. 24

(e) Except as provided in subsection (f) of this section, each multi –year contract, 25
including a lease of real property, shall include an automatic termination clause that: 26

(1) is not inconsistent with the requirements of subsection (d) of this 27
section; and 28

(2) discharges both parties to the multi –year contract from future 29
performance of that contract, but not from their existing obligations. 30

SENATE BILL 841 109

(f) (1) On the recommendation of the Secretary of General Services, FOR A 1
MULTI–YEAR CONTRACT TO PRO CURE ENERGY GENERATE D FROM A TIER 1 2
RENEWABLE SOURCE OR A TIER 2 RENEWABLE SOURCE, AS DEFINED IN § 7–701 OF 3
THE PUBLIC UTILITIES ARTICLE, the Board may waive the requirement to include: 4

(I) an automatic termination clause under subsection (e) of this 5
section [for a multi –year contract to procure energy generated from a Tier 1 renewable 6
source or a Tier 2 renewable source, as defined in § 7–701 of the Public Utilities Article ]; 7
OR 8

(II) A TERMINATION FOR CO NVENIENCE CLAUSE REQ UIRED 9
UNDER § 13–218(A)(2) OF THIS SUBTITLE. 10

(2) In determining whether [or not] to grant a waiver under paragraph (1) 11
of this subsection, the Board shall consider the effect of imposing THE FOLLOWING 12
CLAUSE REQUIREMENTS ON THE ABILITY OF TH E ENERGY SUPPLIER TO OBTAIN 13
FINANCING FOR THE RENEWABLE ENERGY GENERATION PROJECT THAT PRODUCES 14
THE ENERGY THAT THE STATE IS CONTRACTING TO PROCURE: 15

(I) the termination clause requirement under subsection (e) of this 16
section [on the ability of the energy supplier to obtain financing for the renewable energy 17
generation project that produces the energy that the State is contracting to procure]; AND 18

(II) THE TERMINATION FOR CONVENIENCE CLAUSE R EQUIRED 19
UNDER § 13–218(A)(2) OF THIS SUBTITLE. 20

13–218. 21

(a) Each procurement contract shall include clauses covering: 22

(2) termination wholly or partly by the State for its convenience if the head 23
of the primary procurement unit determines that termination is appropriate; 24

(F) IN ACCORDANCE WITH § 13–217(F) OF THIS SUBTITLE, THE BOARD MAY 25
WAIVE THE INCLUSION OF A TERMINATION FOR CONVENIENCE CLAUSE REQUIRED 26
UNDER SUBSECTION (A)(2) OF THIS SECTION. 27

Article – State Government 28

9–2012. 29

(b) There is an Energy Storage System Grant Program in the Administration. 30

(c) The purpose of the Program is to provide grants to individuals and business 31
entities for a portion of the costs of purchasing and installing energy storage systems. 32
110 SENATE BILL 841

(J) THE ADMINISTRATION MAY REQUIRE THAT APPLICANTS PARTICIPATE 1
IN THE PROGRAMS OR T ARIFFS ESTABLISHED U NDER § 7–1005 OF THE PUBLIC 2
UTILITIES ARTICLE. 3

[(j)] (K) The Administration may adopt regulations to carry out this section. 4

9–20B–01. 5

(a) In this subtitle the following words have the meanings indicated. 6

(b) “Administration” means the Maryland Energy Administration. 7

9–20B–05. 8

(A) IN THIS SECTION , “DISTRICT ENERGY ” MEANS THERMAL ENERGY 9
GENERATED AT ONE OR MORE CENTRAL FACILIT IES THAT PRODUCE HOT WATER, 10
STEAM, OR CHILLED WATER THA T THEN FLOWS THROUGH A NETWORK OF 11
INSULATED UNDERGROUND PIPES TO PROVIDE H OT WATER, SPACE HEATING, AIR 12
CONDITIONING, OR CHILLED WATER TO NEARBY BUILDINGS. 13

[(a)] (A–1) There is a Maryland Strategic Energy Investment Fund. 14

(b) The purpose of the Fund is to implement the Strategic Energy Investment 15
Program. 16

(c) The Administration shall administer the Fund. 17

(e) The Fund consists of: 18

(1) all of the proceeds from the sale of allowances under § 2–1002(g) of the 19
Environment Article; 20

(2) money appropriated in the State budget to the Program; 21

(3) repayments and prepayments of principal and interest on loans made 22
from the Fund; 23

(4) compliance fees paid under § 7–705 of the Public Utilities Article; 24

(5) money received from any public or private source for the benefit of the 25
Fund; 26

(6) money transferred from the Public Service Commission under § 27
7–207.2(d)(3) of the Public Utilities Article; [and] 28

SENATE BILL 841 111

(7) money distributed under § 2–614.1 of the Tax – General Article; AND 1

(8) MONEY RECEIVED FROM COMMUNITY SOLAR ENER GY 2
GENERATING SYSTEMS UNDER § 7–306.2 OF THE PUBLIC UTILITIES ARTICLE. 3

(f) The Administration shall use the Fund: 4

(1) to invest in the promotion, development, and implementation of: 5

(i) cost–effective energy efficiency and conservation programs, 6
projects, or activities, including measurement and verification of energy savings; 7

(ii) renewable and clean energy resources; 8

(iii) climate change programs directly related to reducing or 9
mitigating the effects of climate change; and 10

(iv) demand response programs that are designed to promote 11
changes in electric usage by customers in response to: 12

1. changes in the price of electricity over time; or 13

2. incentives designed to induce lower electricity use at times 14
of high wholesale market prices or when system reliability is jeopardized; 15

(2) to provide targeted programs, projects, activities, and investments to 16
reduce electricity consumption by customers in the low –income and moderate –income 17
residential sectors; 18

(3) to provide supplemental funds for low –income energy assistance 19
through [the Electric Universal Service Program established under § 7–512.1 of the Public 20
Utilities Article and other ] electric AND FUEL assistance programs in the Department of 21
Human Services; 22

(4) to provide rate relief by offsetting electricity rates of: 23

(I) residential customers, including an offset of surcharges imposed 24
on ratepayers under Title 7, Subtitle 2, Part II of the Public Utilities Article; AND 25

(II) RESIDENTS OF APARTMENT HOUSES, AS DEFINED IN § 7–303 26
OF THE PUBLIC UTILITIES ARTICLE, FOR WHICH ELECTRICIT Y SERVICE IS 27
PROVIDED THROUGH: 28

1. SUBMETERING AUTHORIZED UNDER § 7–303 OF THE 29
PUBLIC UTILITIES ARTICLE; OR 30

112 SENATE BILL 841

2. AN ENERGY ALLOCATION SYSTEM AS DEFINED IN § 1
7–304 OF THE PUBLIC UTILITIES ARTICLE; 2

(5) to provide grants, loans, and other assistance and investment as 3
necessary and appropriate to implement the purposes of the Program as set forth in § 4
9–20B–03 of this subtitle; 5

(6) to implement energy–related public education and outreach initiatives 6
regarding reducing energy consumption and greenhouse gas emissions; 7

(7) to provide rebates under the Electric Vehicle Recharging Equipment 8
Rebate Program established under § 9–2009 of this title; 9

(8) to provide grants to encourage combined heat and po wer projects at 10
industrial facilities; 11

(9) to provide at least $1,200,000 in each fiscal year for fiscal year 2025 12
through fiscal year 2028 to the Climate Technology Founder’s Fund established under § 13
10–858 of the Economic Development Article; 14

(10) subject to subsection (f–2) of this section, to provide at least $2,100,000 15
in funding each fiscal year to the Maryland Energy Innovation Fund established under § 16
10–835 of the Economic Development Article; 17

(11) to provide at least $500,000 each year to the Resiliency Hub Grant 18
Program Fund under § 9–2011 of this title; 19

(12) to provide grants through the Customer –Sited Solar Program under § 20
9–2016 of this title; 21

(13) notwithstanding subsection (g) of this section, to pay costs associated 22
with the Air and Radiation Administration within the Department of the Environment; 23
[and] 24

(14) TO PROVIDE FUNDS TO THE GREEN AND RENEWABLE ENERGY 25
EFFICIENCY FOR NONPROFITS LOAN FUND ESTABLISHED UNDER § 10–868 OF THE 26
ECONOMIC DEVELOPMENT ARTICLE; 27

(15) TO PROVIDE LOANS AND GRANTS FOR: 28

(I) BUILDING ELECTRIFICATION, INCLUDING CONNECTION TO 29
AN ELECTRIFIED DISTRICT ENERGY SYSTEM; 30

(II) ELECTRIFIED THERMAL ENERGY GENERATION ASSETS 31
INTERCONNECTED WITH A DISTRICT ENERGY SYSTEM; AND 32

SENATE BILL 841 113

(III) TRANSPORTATION ELECTRIFICATION; 1

(16) TO PROVIDE LOANS AND GRANTS FOR PROGRAMS, PROJECTS, AND 2
TECHNOLOGIES THAT ASSIST COVERED BUILDINGS, AS DEFINED IN § 2–1601 OF THE 3
ENVIRONMENT ARTICLE, IN MEETING THE BUILD ING ENERGY PERFORMAN CE 4
STANDARDS ESTABLISHED UNDER § 2–1602 OF THE ENVIRONMENT ARTICLE; 5

(17) TO DISTRIBUTE MONEY RECEIVED FROM COMMUN ITY SOLAR 6
ENERGY GENERATING SY STEMS UNDER § 7–306.2 OF THE PUBLIC UTILITIES 7
ARTICLE FOR: 8

(I) ENHANCING ENERGY ASSI STANCE PROGRAMS 9
ADMINISTERED BY THE OFFICE OF HOME ENERGY PROGRAMS IN THE 10
DEPARTMENT OF HUMAN SERVICES; OR 11

(II) OTHER DIRECT ENERGY ASSISTANCE PROGRAMS 12
DESIGNATED FOR LOW–INCOME HOUSEHOLDS; 13

(18) TO PROVIDE GRANTS FOR RENEWABLE ENERGY GENERATION AND 14
ENERGY STORAGE PROJECTS UNDER § 9–20E–02 OF THIS TITLE; 15

(19) IN FISCAL YEAR 2027, TO PROVIDE GRANTS TO ELECTRIC 16
COMPANIES, INCLUDING ELECTRIC C OOPERATIVES AND MUNI CIPAL ELECTRIC 17
UTILITIES, TO PAY DOWN THE COSTS INCURRED BY THE ELECTRIC COMPANIES FOR 18
IMPLEMENTING AND ADM INISTERING PROGRAMS AND SERVICES UNDER TITLE 7, 19
SUBTITLE 2, PART II OF THE PUBLIC UTILITIES ARTICLE; 20

(20) IN FISCAL YEAR 2027, TO OFFSET RESIDENTIAL E LECTRIC 21
CUSTOMER COSTS ASSOC IATED WITH THE LIMITED –INCOME RATE MECHANIS M 22
REQUIRED UNDER § 4–309 OF THE PUBLIC UTILITIES ARTICLE; 23

(21) IN FISCAL YEAR 2027, TO PROVIDE FUNDING F OR A 24
COMPREHENSIVE STUDY OF PUBLIC SCHOOL HVAC SYSTEMS IN BALTIMORE CITY; 25

(22) IN FISCAL YEAR 2027, TO PROVIDE FUNDING FOR UP GRADES TO 26
PUBLIC SCHOOL HVAC SYSTEMS IN BALTIMORE CITY; 27

(23) IN FISCAL YEAR 2027, TO PROVIDE ADDITIONA L FUNDING FOR 28
THE ADMINISTRATION’S RESIDENTIAL AND COMMERCIAL ENERGY STORAGE 29
GRANT PROGRAM; 30

114 SENATE BILL 841

(24) IN FISCAL YEAR 2027, TO PROVIDE ADDITIONAL FUNDING F OR 1
THE REVIEW OF RENEWA BLE AND CLEAN ENERGY PROJECTS THROUGH THE 2
DEPARTMENT OF NATURAL RESOURCES’ POWER PLANT RESEARCH PROGRAM; 3

(25) IN FISCAL YEAR 2027, TO PROVIDE ADDITIONA L FUNDING FOR 4
HEAT PUMP INSTALLATI ONS AND REPLACEMENTS FOR LOW– AND 5
MODERATE–INCOME HOUSEHOLDS TH ROUGH THE ADMINISTRATION’S 6
RESIDENTIAL ENERGY EQUITY PROGRAM; AND 7

[(14)] (26) to pay the expenses of the Program. 8

(g) Proceeds received by the Fund from the sale of allowances under § 2 –1002(g) 9
of the Environment Article shall be allocated as follows: 10

(1) at least 50% shall be credited to an energy assistance account to be used 11
for [the Electric Universal Service Program and other ] electricity AND FUEL assistance 12
programs in the Department of Human Services; 13

(g–1) [Proceeds] EXCEPT AS PROVIDED IN SUBSECTION (I–2) OF THIS SECTION, 14
PROCEEDS received by the Fund from compliance fees under § 7–705(b)(2)(i)2 of the Public 15
Utilities Article shall be allocated as follows: 16

(1) beginning in fiscal year 2025, at least 20% of the proceeds shall be used 17
to provide grants to support the installation of new solar energy generating systems under 18
the Customer–Sited Solar Program; 19

(2) up to 10% of the proceeds shall be credited to an administrative expense 20
account for costs related to the administration of the Fund; 21

(3) proceeds collected but unused from a previous year shall be used before 22
proceeds allocated for the current year; and 23

(4) the Administration shall reallocate to other authorized uses any 24
proceeds that are not used within 3 fiscal years after collection. 25

(i) (1) Except as provided in paragraphs (2), (3), and (4) of this subsection AND 26
SUBSECTION (I–2) OF THIS SECTION, compliance fees paid under § 7–705(b) of the Public 27
Utilities Article may be used only to make loans and grants to support the creation of new 28
Tier 1 renewable energy sources in the State that are owned by or directly benefit: 29

(i) low– to moderate–income communities located in a census tract 30
with an average median income at or below 80% of the average median income for the State; 31
or 32

(ii) overburdened or underserved communities, as defined in § 1–701 33
of the Environment Article. 34
SENATE BILL 841 115

(2) [Compliance] EXCEPT AS PROVIDED IN SUBSECTION (I–2) OF THIS 1
SECTION, COMPLIANCE fees paid under § 7–705(b)(2)(i)2 of the Public Utilities Article 2
shall be accounted for separately within the Fund and may be used only to make loans and 3
grants to support the creation of new solar energy sources in the State that are owned by 4
or directly benefit: 5

(i) low– to moderate–income communities located in a census tract 6
with an average median income at or below 80% of the average median income for the State; 7

(ii) overburdened or underserved communities, as defined in § 1–701 8
of the Environment Article; or 9

(iii) households with low to moderate income, as defined in § 9–2016 10
of this title. 11

(3) For fiscal year 2026 only, up to $100,000,000 of compliance fees paid 12
under §§ 7–705(b) and 7–705(b)(2)(i)2 of the Public Utilities Article shall be accounted fo r 13
separately within the Fund and may be used for solar development on State government 14
property and local government clean energy projects. 15

(4) (i) Subject to subparagraphs (ii), (iii), and (iv) of this paragraph, 16
compliance fees paid under § 7 –705 of the Public Utilities Article may be used to provide 17
grants to electric companies to be refunded or credited to each residential distribution 18
customer based on the customer’s consumption of electricity supply that is subject to the 19
renewable energy portfolio standard. 20

(ii) The refunding or crediting of amounts to residential distribution 21
customers shall be identified on the customer’s bill as a line item identified as a “legislative 22
energy relief refund”. 23

(iii) An electric company awarded a grant under this paragraph: 24

1. may not retain any of the grant funds to cover overhead 25
expenses; and 26

2. shall provide all of the grant funds to residential 27
distribution customers. 28

(iv) The process under subparagraphs (i) and (ii) of this paragraph 29
related to the refunding or crediting of amounts to residential distribution customers shall 30
be directed and overseen by the Commission. 31

(i–1) (1) (i) In this subsection the following words have the meanings 32
indicated. 33

116 SENATE BILL 841

(ii) “Area median income” has the meaning stated in § 4–1801 of the 1
Housing and Community Development Article. 2

(iii) “Low and moderate income” means having an annual household 3
income that is at or below 120% of the area median income. 4

(2) [Compliance] EXCEPT AS PROVIDED IN SUBSECTION (I–2) OF THIS 5
SECTION, COMPLIANCE fees paid under § 7–705(b–1) of the Public Utilities Article shall 6
be accounted for separately within the Fund and may be used only to make loans and grants 7
to promote increased opportunit ies for the growth and development of small, minority, 8
women–owned, and veteran–owned businesses in the State that install geothermal systems 9
in the State. 10

(I–2) FOR FISCAL YEARS 2027 AND 2028, AT LEAST $100,000,000 OF 11
COMPLIANCE FEES PAID UNDER § 7–705 OF THE PUBLIC UTILITIES ARTICLE AND 12
DEPOSITED INTO THE FUND IN EACH FISCAL Y EAR MAY BE USED TO P ROVIDE 13
GRANTS FOR RENEWABLE ENERGY GENERATION AND ENERGY STORAGE PROJECTS 14
UNDER § 9–20E–02 OF THIS TITLE, INCLUDING ANY ASSOCIATED ADMINISTRATIVE 15
EXPENSES. 16

SUBTITLE 20E. ALTERNATIVE COMPLIANCE FEE AUCTIONS. 17

9–20E–01. 18

(A) IN THIS SUBTITLE THE FOLLOWING WORDS HAVE THE MEANINGS 19
INDICATED. 20

(B) “ADMINISTRATION” MEANS THE MARYLAND ENERGY 21
ADMINISTRATION. 22

(C) “ALTERNATIVE COMPLIANCE FEE” MEANS A FEE PAID IN ACCORDANCE 23
WITH § 7–705 OF THE PUBLIC UTILITIES ARTICLE TO THE MARYLAND STRATEGIC 24
ENERGY INVESTMENT FUND ESTABLISHED UNDER § 9–20B–05 OF THIS TITLE. 25

(D) “AUCTION” MEANS AN ALTERNATIVE COMPLIANCE FEE AUCTION. 26

(E) “CAPACITY TARGET ” MEANS A CALCULATION OF THE AMOUNT OF 27
RENEWABLE ENERGY GEN ERATION NEEDED IN A GIVEN YEAR TO SATISF Y THE 28
RENEWABLE ENERGY POR TFOLIO STANDARD UNDE R § 7–703 OF THE PUBLIC 29
UTILITIES ARTICLE FOR A SPECIFI C YEAR , MINUS THE AMOUNT ALR EADY 30
PROCURED FROM OTHER SOURCES. 31

(F) “COMMISSION” MEANS THE PUBLIC SERVICE COMMISSION. 32

SENATE BILL 841 117

(G) “RENEWABLE ENERGY” MEANS ENERGY GENERATED FROM: 1

(1) A TIER 1 RENEWABLE SOURCE, AS DEFINED UNDER § 7–701 OF 2
THE PUBLIC UTILITIES ARTICLE; OR 3

(2) AN ENERGY STORAGE DEVICE. 4

9–20E–02. 5

(A) FOR 2027 AND 2028, THE ADMINISTRATION SHALL CONDUCT, IN 6
CONSULTATION WITH TH E COMMISSION, AN ANNUAL , COMPETITIVE, LOW–BID 7
ALTERNATIVE COMPLIANCE FEE AUCTION TO AWARD GRANTS TO ELIGIBLE BIDDERS 8
TO FUND PROJECTS FOR THE DEVELOPMENT OF RENEWABLE ENERGY GENERATION 9
AND ENERGY STORAGE I N THE STATE USING REVENUE F ROM ALTERNATIVE 10
COMPLIANCE FEES. 11

(B) (1) THE ADMINISTRATION, IN CONSULTATION WITH THE 12
COMMISSION, SHALL DEVELOP AND CONDUCT THE AUCTIONS IN A MANNER THAT IS 13
COST–EFFECTIVE AND MAINTA INS AND PROMOTES TH E DEVELOPMENT OF 14
RENEWABLE ENERGY AND ENERGY STORAGE IN THE STATE. 15

(2) THE COMPETITIVE AUCTI ON PROCESS MAY REQUI RE THE 16
ADMINISTRATION TO SOL ICIT A SERIES OF BID S FROM RENEWABLE ENE RGY 17
PROJECT DEVELOPERS A ND ENERGY STORAGE PR OJECT DEVELOPERS FOR THE 18
DEVELOPMENT OF RENEWABLE ENERGY GENERATION PR OJECTS AND ENERGY 19
STORAGE PROJECTS THA T ARE NEEDED TO MEET ELECTRICITY DEMAND I N A 20
COST–EFFECTIVE MANNER. 21

(C) (1) TO BE ELIGIBLE TO SUBMIT A BID UNDER THIS SECTION A PERSON 22
MUST: 23

(I) BE A RENEWABLE ENERG Y GEN ERATION PROJECT 24
DEVELOPER OR AN ENERGY STORAGE PROJECT DEVELOPER; AND 25

(II) MEET THE MINIMUM CRE DIT AND OTHER ELIGIB ILITY 26
REQUIREMENTS SET UNDER PARAGRAPH (2) OF THIS SUBSECTION. 27

(2) THE ADMINISTRATION, IN CONSULTATION WITH THE 28
COMMISSION, SHALL SET ELIGIBILITY REQUIREMENTS FOR BIDDERS , INCLUDING 29
REQUIRING EACH BIDDER TO: 30

(I) PROVIDE PROOF OF FINANCIAL INTEGRITY; 31

118 SENATE BILL 841

(II) POST A SURETY BOND T HAT RUNS TO THE 1
ADMINISTRATION, AS OBLIGEE, FOR THE BENEFIT OF THE STATE; 2

(III) AGREE TO BE SUBJECT TO ALL APPLICABLE TAXES; 3

(IV) COMPLY WITH ANY OTHE R REQUIREMENTS THE 4
ADMINISTRATION DETERMINES ARE IN THE PUBLIC INTEREST; AND 5

(V) DEMONSTRATE THE ABIL ITY TO FINANCE , EXECUTE, AND 6
COMMISSION PROJECTS. 7

(D) (1) ELIGIBLE BIDDERS SHAL L SUBMIT COMPETITIVE BIDS BY 8
SPECIFYING: 9

(I) THE ACTUAL AMOUNT OF MEGAWATTS TO BE GENE RATED 10
BY THE RENEWABLE ENERGY GENERATION PROJECT, IF APPLICABLE; 11

(II) THE ACTUAL AMOUNT OF MEGAWATTS TO BE STOR ED BY 12
THE ENERGY STORAGE PROJECT, IF APPLICABLE; AND 13

(III) A PRICE PER MEGAWATT THAT WOULD BE REQUIRED FROM 14
THE AUCTION. 15

(2) THE ADMINISTRATION SHALL RANK BIDS FROM LOWES T TO 16
HIGHEST COST PER MEG AWATT AND , SUBJECT TO PARAGRAPH (7) OF THIS 17
SUBSECTION, AWARD GRANTS WITH FU NDS DERIVED FROM ALT ERNATIVE 18
COMPLIANCE FEES TO THE LOWEST BID OR BIDS. 19

(3) THE ADMINISTRATION SHALL AWARD GRANTS UNTIL T HE 20
CAPACITY TARGET IS REACHED. 21

(4) THE BIDDER WHO SUBMIT S THE LOWEST RESPONS IVE BID FOR 22
DEVELOPING A RENEWABLE ENERGY GENERATION PROJECT OR ENERGY STORAGE 23
PROJECT SHALL BE AWARDED THE AMOUNT OF FUNDS TO B UILD THE RENEWABLE 24
ENERGY GENERATION PROJECT OR ENERGY STORAGE PROJECT. 25

(5) THE ADMINISTRATION MAY REFUSE TO ACCEPT SOME OR ALL OF 26
THE BIDS MADE IN A C OMPETITIVE AUCTION I N ACCORDANCE WITH ST ANDARDS 27
ADOPTED BY THE ADMINISTRATION. 28

(6) IF THE CAPACITY TARGE T CAN BE MET AT A CO ST BELOW THE 29
ALLOCATED FUNDING, THE ADMINISTRATION MAY: 30

SENATE BILL 841 119

(I) CARRY FORWARD ANY FUNDING TO THE NEXT AUCTION; OR 1

(II) APPLY THE FUNDS FOR ANY ADDITIONAL MEGAW ATTS OF 2
RENEWABLE ENERGY GEN ERATION OR ENERGY ST ORAGE THAT HAVE BEEN 3
OFFERED UNDER THE AUCTION. 4

(7) IN AWARDING GRANTS UN DER PARAGRAPH (2) OF THIS 5
SUBSECTION, THE ADMINISTRATION SHALL PRIORITIZE BIDS THAT ARE FOR OR 6
INCLUDE ENERGY STORAGE DEVICES. 7

(E) (1) THE ADMINISTRATION SHALL SET DELIVERY D EADLINES FOR 8
EACH RENEWABLE ENERG Y GENERATION PROJECT THAT IS AWARDED A GR ANT 9
FROM AN AUCTION. 10

(2) THE DEADLINES SET IN PARAGRAPH (1) OF THIS SUBSECTION 11
SHALL INCLUDE MILEST ONES THAT REQUIRE TH E DEVELOPER TO MEET CERTAIN 12
DELIVERY GOA LS DURING THE DEVELO PMENT OF A RENEWABLE ENERGY 13
GENERATION PROJECT. 14

(3) THE ADMINISTRATION MAY GR ANT EXTENSIONS FOR D ELIVERY 15
GOALS THAT ARE DELAY ED DUE TO INTERCONNE CTION OR PERMITTING 16
CHALLENGES OR DELAYS IF THE DEVELOPER PRO VIDES DOCUMENTATION OF THE 17
CHALLENGE OR DELAY. 18

(4) THE ADMINISTRATION SHALL ESTABLISH A METHOD O F 19
COLLECTION AGAINST ANY DEVELOPER AWARDED A GRANT UNDER THIS S ECTION, 20
INCLUDING AGAINST ANY SURETY BOND POSTED UNDER SUBSECTION (C)(2)(II) OF 21
THIS SECTION, TO RECAPTURE ANY FUNDS RECEIVED AS A RESULT OF: 22

(I) MISAPPROPRIATION, OVERPAYMENT, OR FRAUD; 23

(II) FAILURE TO MEET MILESTONES OR DELIVERY DATES; OR 24

(III) FAILURE TO MAINTAIN ELECTRIC GENERATION 25
OPERABILITY FOR 20 YEARS. 26

(F) WITHIN 90 DAYS AFTER ALL GRANT S FOR RENEWA BLE ENERGY 27
GENERATION PROJECTS ARE EXECUTED, THE ADMINISTRATION SHALL PUBLICLY 28
DISCLOSE THE NAMES O F EACH SUCCESSFUL BI DDER AND THE MEGAWATTS TO BE 29
DELIVERED BY THE DEV ELOPMENT OF THE RENE WABLE ENERGY GENERAT ION 30
PROJECT. 31

120 SENATE BILL 841

(G) ALL PROCEEDS FROM ALT ERNATIVE COMPLIANCE FEES ACCR UED IN 1
THE MARYLAND STRATEGIC ENERGY INVESTMENT FUND SHALL BE AVAILAB LE 2
EACH YEAR FOR EACH AUCTION. 3

(H) A PROJECT AWARDED A GR ANT UNDER THIS SECTI ON THAT INCLUDES 4
AN ENERGY STORAGE DE VICE SHALL COUNT TOW ARD THE PROCUREMENT 5
SOLICITATION CAPACITY TARGETS ESTABLISHED UNDER § 7–1224 OF THE PUBLIC 6
UTILITIES ARTICLE. 7

(I) ON OR BEFORE JULY 1, 2027, AND EACH JULY 1 THEREAFTER, THE 8
ADMINISTRATION AND TH E COMMISSION SHALL REPO RT TO THE GENERAL 9
ASSEMBLY, IN ACCORDANCE WITH § 2–1257 OF THIS ARTI CLE, ON THE 10
ADMINISTRATION OF EACH AUCTION, INCLUDING: 11

(1) THE AMOUNT OF MEGAWA TTS PROCURED THROUGH THE 12
AUCTION; 13

(2) THE COST PER MEGAWAT T OF RENEWABLE ENERG Y ALLOCATED 14
IN THE AUCTION; 15

(3) THE NUMBER OF RENEWA BLE ENERGY CREDITS C REATED AS A 16
RESULT OF THE AUCTION; AND 17

(4) ANY OTHER INFORMATIO N THE ADMINISTRATION AND TH E 18
COMMISSION CONSIDER RELEVANT. 19

Chapter 7 of the Acts of the 2025 Special Session 20

SECTION 2. AND BE IT FURTHER ENACTED, That: 21

(a) (1) The Public Service Commission shall study the effectiveness of an 22
independent distribution operator. 23

(2) On or before December 31, 2026, the Public Service Commission shall 24
submit to the General Assembly, in accordance with § 2 –1257 of the State Govern ment 25
Article, a report on the study required under paragraph (1) of this subsection. 26

(b) (1) The Department of Transportation shall study methods for reducing 27
transmission–constrained areas through the use of existing rights–of–way. 28

(2) On or before D ecember 31, 2026, the Department of Transportation 29
shall submit to the General Assembly, in accordance with § 2 –1257 of the State 30
Government Article, a report on the study required under paragraph (1) of this subsection. 31

SENATE BILL 841 121

(c) (1) (i) The Maryland Energy Administration shall obtain existing 1
power flow analyses for electric system reliability in the State that are related to currently 2
known electric generation facility retirements. 3

(ii) If the Maryland Energy Administration is unable to obtain the 4
existing power flow analyses under subparagraph (i) of this paragraph, then the 5
Administration, with the support of the Public Service Commission, shall develop a power 6
flow analysis for electric system reliability in the State that is related to currently know n 7
electric generation facility retirements. 8

(iii) On or before January 1, [2026] 2027, the Maryland Energy 9
Administration shall submit to the Governor and, in accordance with § 2–1257 of the State 10
Government Article, the General Assembly a report on the power flow analyses required 11
under this paragraph. 12

(2) (i) On or before [December 31, 2025, and on or before] December 31, 13
2026, the Maryland Energy Administration shall provide to the General Assembly, in 14
accordance with § 2–1257 of the State Government Article, an update on the status of the 15
National Renewable Energy Laboratory’s analysis on resource adequacy conducted at the 16
request of the Administration. 17

(ii) On receipt of the National Renewable Energy Laboratory’s final 18
analysis on resource adequacy, the Maryland Energy Administration shall submit a final 19
report on the analysis to the General Assembly, in accordance with § 2 –1257 of the State 20
Government Article. 21

Chapter 19 of the Acts of the 2025 Special Session 22

SECTION 2. AND BE IT FURTHER ENACTED, That: 23

(a) (1) The Public Service Commission shall study the effectiveness of an 24
independent distribution operator. 25

(2) On or before December 31, 2026, the Public Service Commission shall 26
submit to the General Assembly, in accordance with § 2–1257 of the State Government 27
Article, a report on the study required under paragraph (1) of this subsection. 28

(b) (1) The Department of Transportation shall study methods for reducing 29
transmission–constrained areas through the use of existing rights–of–way. 30

(2) On or before December 31, 2026, the Department of Transportation 31
shall submit to the General Assembly, in accordance with § 2 –1257 of the State 32
Government Article, a report on the study required under paragraph (1) of this subsection. 33

(c) (1) (i) The Maryland Energy Administration shall obtain existing 34
power flow analyses for electric system reliability in the State that are related to currently 35
known electric generation facility retirements. 36
122 SENATE BILL 841

(ii) If the Maryland Energy Administ ration is unable to obtain the 1
existing power flow analyses under subparagraph (i) of this paragraph, then the 2
Administration, with the support of the Public Service Commission, shall develop a power 3
flow analysis for electric system reliability in the Sta te that is related to currently known 4
electric generation facility retirements. 5

(iii) On or before January 1, [2026] 2027, the Maryland Energy 6
Administration shall submit to the Governor and, in accordance with § 2–1257 of the State 7
Government Article, the General Assembly a report on the power flow analyses required 8
under this paragraph. 9

(2) (i) On or before [December 31, 2025, and on or before] December 31, 10
2026, the Maryland Energy Administration shall provide to the General Assembly, in 11
accordance with § 2–1257 of the State Government Article, an update on the status of the 12
National Renewable Energy Laboratory’s analysis on resource adequacy conducted at the 13
request of the Administration. 14

(ii) On receipt of the National Renewable Energy Labor atory’s final 15
analysis on resource adequacy, the Maryland Energy Administration shall submit a final 16
report on the analysis to the General Assembly, in accordance with § 2 –1257 of the State 17
Government Article. 18

SECTION 5. AND BE IT FURTHER ENACTED, That the Laws of Maryland read 19
as follows: 20

Article – State Government 21

9–2016. 22

(a) (1) In this section the following words have the meanings indicated. 23

(2) “Eligible customer–generator” has the meaning stated in § 7–306 of the 24
Public Utilities Article. 25

(3) “Low to moderate income” means a household with an annual 26
household income at or below 150% of the average median income for the State. 27

(4) “Program” means the Customer –Sited Solar Program established in 28
this section. 29

(b) There is a Customer–Sited Solar Program in the Administration. 30

(e) The Program may provide grants to an income –verified eligible 31
customer–generator with a low to moderate income in an amount equal to $750 per kilowatt 32
of nameplate capacity for a solar energy generating system, up to a maximum of $7,500 per 33
system. 34
SENATE BILL 841 123

(f) A grant awarded under subsection (e) of this section shall be funded from [fees 1
collected under § 7–705(b)(2)(i)2 of the Public Utilities Article and allocated in accordance 2
with § 9–20B–05(g–1) of this title] THE MARYLAND STRATEGIC ENERGY INVESTMENT 3
FUND ESTABLISHED UNDER § 9–20B–05 OF THIS TITLE. 4

SECTION 6. AND BE IT FURTHER ENACTED, That: 5

(a) Notwithstanding any other provision of law, from the compliance fees paid 6
into the Maryland Strategic Energy Invest ment Fund in accordance with § 7 –705 of the 7
Public Utilities Article: 8

(1) $100,000,000 shall be used to provide grants for renewable energy 9
generation and energy storage projects through the auction process established under § 10
9–20E–02 of the State Government Article, as enacted by Section 4 of this Act; 11

(2) $100,000,000 shall be used to provide grants to electric companies, 12
including electric cooperatives and municipal electric utilities, to pay down the costs 13
incurred by the electric companies for implementing and administering the programs and 14
services under Title 7, Subtitle 2, Part II of the Public Utilities Article; 15

(3) $38,000,000 shall be used to offset residential electric customer costs 16
associated with the limite d–income rate mechanism required under § 4 –309 of the Public 17
Utilities Article, as enacted by Section 4 of this Act; 18

(4) $150,000 shall be used to provide funding for a comprehensive study of 19
public school HVAC systems in Baltimore City; 20

(5) $9,850,000 shall be used to provide funding for upgrades to public 21
school HVAC systems in Baltimore City; and 22

(6) $2,000,000 shall be used to provide additional funding for the Maryland 23
Energy Administration’s Residential and Commercial Energy Storage Grant Program. 24

(b) Notwithstanding any other provision of law, from the proceeds paid into the 25
Maryland Strategic Energy Investment Fund in accordance with 2 –1002(g) of the 26
Environment Article, $9,000,000 shall be used for upgrades to public school HVAC systems 27
in Baltimore City. 28

(c) Notwithstanding any other provision of law, from the funds in the Maryland 29
Strategic Energy Investment Fund: 30

(1) $3,000,000 shall be used to provide additional funding for the 31
Department of Natural Resources’ Power Plant Research Program to review renewable and 32
clean energy projects; and 33

124 SENATE BILL 841

(2) $72,650,000 shall be transferred to the Dedicated Purpose Account 1
established under § 7 –310 of the State Finance and Procurement Article to provide 2
additional funding for the Maryland Ener gy Administration’s Residential Energy Equity 3
Program for heat pump installations and replacements for low – and moderate –income 4
households. 5

(d) (1) Notwithstanding any other provision of law and subject to paragraph 6
(2) of this subsection, on or before June 30, 2027, the Governor may transfer: 7

(i) the funds described in subsection (a)(1) of this section to the 8
Maryland Energy Administration to be awarded as grants under § 9 –20E–02 of the State 9
Government Article, as enacted by Section 4 of this Act; 10

(ii) the funds described in subsection (a)(2) of this section to the 11
Public Service Commission to be awarded as grants to electric companies, including electric 12
cooperatives and municipal electric utilities, to pay down the costs incurred by the electric 13
companies for implementing and administering the programs and services under Title 7, 14
Subtitle 2, Part II of the Public Utilities Article; 15

(iii) the funds described in subsection (a)(3) of this section to the 16
Public Service Commission to be awarded as grants to electric companies to be refunded or 17
credited to residential electric customers to offset costs associated with the limited–income 18
rate mechanism required under § 4–309 of the Public Utilities Article, as enacted by Section 19
4 of this Act; 20

(iv) the funds described in subsection (a)(4) of this section to the 21
Comptroller to be used to provide funding for a comprehensive study of public school HVAC 22
systems in Baltimore City; 23

(v) the funds described in subsections (a)(5) and (b) of this section to 24
the Interagency Commission on School Construction to be used for upgrades to public school 25
HVAC systems in Baltimore City; 26

(vi) the funds described in subsection (a)(6) of this section to the 27
Maryland Energy Administration to be awarded as g rants under the Residential and 28
Commercial Energy Storage Grant Program; 29

(vii) the funds described in subsection (c)(1) of this section to the 30
Department of Natural Resources to be used to review renewable and clean energy projects 31
through the Power Plant Research Program; and 32

(viii) the funds described in subsection (c)(2) of this section to the 33
Dedicated Purpose Account established under § 7 –310 of the State Finance and 34
Procurement Article for the Maryland Energy Administration to use to provide heat pump 35
installations and replacements for low – and moderate –income households under the 36
Residential Energy Equity Program. 37

SENATE BILL 841 125

(2) The Governor may not include in the transfers authorized under 1
paragraph (1) of this subsection any funds in the Energy Assi stance Account in the 2
Maryland Strategic Energy Investment Fund. 3

SECTION 7. AND BE IT FURTHER ENACTED, That the requirements established 4
under § 7–207(b)(3)(iv), as enacted under Section 4 of this Act, apply to an application for 5
a certificate of public convenience and necessity submitted on or after July 1, 2026, and 6
may not be construed to apply to a certificate of public convenience and necessity submitted 7
before July 1, 2026. 8

SECTION 8. AND BE IT FURTHER ENACTED, That: 9

(a) (1) In this section the following words have the meanings indicated. 10

(2) “Eligible customer–generator” has the meaning stated in § 7–306 of the 11
Public Utilities Article. 12

(3) “Net energy metering” has the meaning stated in § 7–306 of the Public 13
Utilities Article. 14

(b) (1) The Public Service Commission shall conduct a proceeding exploring 15
the development and implementation of a successor program to the net energy metering 16
program under § 7–306 of the Public Utilities Article. 17

(2) In conducting the proceeding, the Public Service Commission shall 18
accept input from: 19

(i) utility companies; 20

(ii) owners and developers of net metered projects, including projects 21
that are: 22

1. residential behind–the–meter; 23

2. commercial behind–the–meter; and 24

3. front–of–the–meter; 25

(iii) renewable energy industry experts, including representatives 26
from the solar energy industry; 27

(iv) consumer advocates; and 28

(v) other stakeholders. 29

126 SENATE BILL 841

(c) On or before December 15, 2026, the Public Service Commission shall submit 1
a report on the proceeding held under subsection (b) of this section to the Governor and, in 2
accordance with § 2–1257 of the State Government Article, the General Assembly. 3

(d) The report shall include: 4

(1) recommendations for a successor program to the net energy meteri ng 5
program under § 7–306 of the Public Utilities Article that: 6

(i) provides incentives for the development of distributed generation 7
to eligible customer–generators under §§ 7–306 and 7–306.3 of the Public Utilities Article 8
and community solar energy g enerating systems under § 7 –306.2 of the Public Utilities 9
Article; 10

(ii) minimizes ratepayer costs in the short term and in the long term; 11

(iii) balances, on a statewide basis and across technologies and 12
industry sectors participating in net energy metering, and while recognizing differences in 13
system benefits between project types when designing tariffs in accordance with paragraph 14
(4) of this subsection: 15

1. A. fair compensation for energy exports; and 16

B. the benefits of an eligible custo mer–generator’s or 17
facility’s reduced load on the electric transmission and electric distribution system, 18
including benefits that may vary based on project location, siting, time to operation, or use 19
of existing structures or developed property; against 20

2. A. the needs of the electric transmission and electric 21
distribution system; 22

B. ratepayer costs and benefits; and 23

C. potential impacts on customers, including low – and 24
moderate–income customers, who do not participate in the net energy metering program 25
resulting from eligible customer –generators’ reduced contributions to the distribution 26
system; and 27

(iv) may establish different tariffs for the following market segments 28
that take into account the characteristics of each market segment: 29

1. residential eligible customer–generators; 30

2. nonresidential eligible customer–generators; 31

3. community solar energy generating systems under § 32
7–306.2 of the Public Utilities Article; 33
SENATE BILL 841 127

4. aggregated net energy metered facili ties under § 7 –306.3 1
of the Public Utilities Article; and 2

5. any additional market segment or subset of a market 3
segment identified by the Public Service Commission; 4

(2) recommendations for any legislative changes necessary to implement 5
the successor program; and 6

(3) any administrative concerns with transitioning to the successor 7
program on July 1, 2027, and whether those concerns may cause a delay in implementation. 8

SECTION 9. AND BE IT FURTHER ENACTED, That, on or before December 1, 9
2026, the Public Service Commission shall provide notice to the Senate Committee on 10
Education, Energy, and the Environment and the House Environment and Transportation 11
Committee, in accordance with § 2 –1257 of the State Government Article, if the 12
Commission determines that the timelines set forth in § 7 –233(c) of the Public Utilities 13
Article, as enacted by Section 4 of this Act, are insufficient for load forecasting. 14

SECTION 10. AND BE IT FURTHER ENACTED, That: 15

(a) In this section, “Levelized Full System Cost of Electricity” means a formula 16
that: 17

(1) calculates the costs of serving the entire State electricity market using 18
only one energy source plus energy storage; and 19

(2) uses the following inputs: 20

(i) capital costs of the generating facility; 21

(ii) distribution system costs; 22

(iii) maintenance and operating costs; 23

(iv) the cost of capital; 24

(v) capacity factors; 25

(vi) ramping up and down times; and 26

(vii) the annual electricity demand by hour in the target market. 27

(b) The Public Service Commission shall conduct a full costs and benefits analysis 28
of sources of electricity generation in the State. 29

128 SENATE BILL 841

(c) The analysis shall: 1

(1) identify the costs of electricity to ratepayers assuming that the State 2
electricity market is served by the following generation mixes: 3

(i) natural gas energy at its current capacity; 4

(ii) nuclear energy at its current capacity; 5

(iii) 8,500 megawatts of offshore wind energy capacity; 6

(iv) solar energy at its current capacity; and 7

(v) energy storage at its current capacity; 8

(2) include the additional costs of electricity generation necessary to offset 9
reliability issues and the intermittency of offshore wind energy and solar energy; 10

(3) use the Levelized Full System Cost of El ectricity model and other 11
methods the Public Service Commission considers appropriate to analyze the costs of 12
meeting the State’s electricity needs from: 13

(i) only natural gas energy and energy storage; 14

(ii) only nuclear energy and energy storage; 15

(iii) only offshore wind energy and energy storage; and 16

(iv) only solar energy and energy storage; 17

(4) identify the costs for natural gas energy, nuclear energy, offshore wind 18
energy, and solar energy if energy storage is available to offset reliability and intermittency 19
issues; and 20

(5) include recommended policy changes to support the development of the 21
energy sources with the lowest costs and greatest benefits to the ratepayers of the State. 22

(d) On or before December 1, 2027, the Public Service Commission shall report its 23
findings and recommendations to the Senate Committee on Education, Energy, and the 24
Environment and the House Environment and Transportation Committee, in accordance 25
with § 2–1257 of the State Government Article. 26

SECTION 11. AND BE IT FURTHER ENACTED, That, on or before December 1, 27
2026, the Senate Committee on Education, Energy, and the Environment and the House 28
Environment and Transportation Committee may jointly request that the Strategic Energy 29
Planning Office assess up to five policy scenarios and submit, on or before December 31, 30
2026, a report of the results of the requested policy scenarios to the Senate Committee on 31
SENATE BILL 841 129

Education, Energy, and the Environment and the House Environment and Transportation 1
Committee in accordance with § 2–1257 of the State Government Article. 2

SECTION 12. AND BE IT FURTHER ENACTED, That: 3

(a) The Public Service Commission shall prepare recommendations for changes 4
to the next following program cycle under Title 7, Subtitle 2, Part II of the Public Utilities 5
Article. 6

(b) The recommendations prepared under subsection (a) of this section shall 7
address: 8

(1) the goals established for programs and services under Title 7, Subtitle 9
2, Part II of the Public Utilities Article, including the size and scope of the goals as applied 10
to each electric company; 11

(2) ways in which the programs and services required under Title 7, 12
Subtitle 2, Part II of the Public Utilities Article should be restructured to further avoid 13
electric system reliability risk and wholesale energy costs; 14

(3) methods for selecting programs and services for inclusion under Title 7, 15
Subtitle 2, Part II of the Public Utilities Article, including cost –effectiveness testing with 16
exceptions to the testing to enable the incl usion of appropriate programs and services, as 17
determined by the Public Service Commission; and 18

(4) any other information the Public Service Commission considers 19
appropriate. 20

(c) On or before November 1, 2027, the Public Service Commission shall subm it 21
the recommendations required under this section to the Governor and, in accordance with 22
§ 2–1257 of the State Government Article, the Senate Committee on Education, Energy, 23
and the Environment and the House Environment and Transportation Committee. 24

SECTION 13. AND BE IT FURTHER ENACTED, That: 25

(a) This section does not apply to the administration of programs and services 26
under § 7–224 of the Public Utilities Article. 27

(b) (1) On or before July 1, 2026, the Public Service Commission shall issue a 28
request for information on the use of a third –party, single–implementer program for the 29
administration of the programs and services under Title 7, Subtitle 2, Part II of the Public 30
Utilities Article. 31

(2) The request for information shall seek: 32

(i) determinations of what effect the use of a single, third –party 33
administrator would have on costs; 34
130 SENATE BILL 841

(ii) identification of technical and logistical barriers to transitioning 1
to a single, third–party administrator; and 2

(iii) an analysis of the advant ages and disadvantages of a private, 3
third–party administrator as opposed to a State administrator. 4

(3) The request for information shall specify a completion date of July 1, 5
2027. 6

(c) (1) As soon as practicable after receiving the information request ed in 7
subsection (b) of this section, the Public Service Commission shall: 8

(i) issue a request for proposals for a third –party administrator for 9
the programs and services under Title 7, Subtitle 2, Part II of the Public Utilities Article; 10
or 11

(ii) decline to issue a request for proposals if the Public Service 12
Commission determines that the use of a third –party administrator would not be cost 13
effective. 14

(2) A request for proposals issued under paragraph (1)(i) of this subsection 15
shall specify that responses to the request should minimize short–term and long–term costs 16
for utility ratepayers. 17

(d) (1) Except as provided in paragraph (2) of this subsection, if the Public 18
Service Commission issues a request for proposals under subsection (c) of this section, the 19
Public Service Commission shall select, on or before June 1, 2028, and through the request 20
for proposals process initiated under subsection (c) of this section, a third –party 21
administrator for the administration of the programs and services un der Title 7, Subtitle 22
2, Part II of the Public Utilities Article. 23

(2) The Public Service Commission may decline to select a 24
third–party administrator if the Public Service Commission determines that the responses 25
to the request for proposals process in itiated under subsection (c) of this section are 26
materially less favorable than as described in the responses to the request for information 27
issued under subsection (b) of this section. 28

(e) The Public Service Commission shall notify the General Assembly of a 29
decision to decline to issue a request for proposals or select a third –party administrator 30
within 5 days after making the decision. 31

SECTION 14. AND BE IT FURTHER ENACTED, That on completion of Public 32
Service Commission Case No. 9618, the Public Serv ice Commission shall conduct an 33
additional proceeding that builds on the outcomes of Case No. 9618 and determines 34
whether it is prudent to allow a public service company to use forecast test years, historic 35
test years, or a hybrid model in a future rate base proceeding. 36
SENATE BILL 841 131

SECTION 15. AND BE IT FURTHER ENACTED, That: 1

(a) The Power Plant Research Program, in consultation with the Department of 2
the Environment and the Maryland Energy Administration, shall conduct a study to 3
identify ways to streamline the permitting process for energy development in the State. 4

(b) In conducting the study under subsection (a) of this section, the Power Plant 5
Research Program shall: 6

(1) identify up to 50 priority energy sites suitable for new or expanded 7
generating stations or energy storage devices, including: 8

(i) brownfields; 9

(ii) industrial sites surrounded by areas with low –population 10
density; 11

(iii) sites with old or decommissioned generating units that may be 12
repowered or repurposed, with special co nsideration given to sites with surplus 13
interconnection capacity; and 14

(iv) State–owned land. 15

(2) identify current bottlenecks and barriers in the State that extend State 16
and local permitting timelines; and 17

(3) develop recommendations on what a St ate–level zoning or permitting 18
structure should look like in order to promote fast –tracked development at the priority 19
energy sites identified in item (1) of this subsection. 20

(c) On or before December 31, 2026, the Power Plant Research Program shall 21
report to the Governor and, in accordance with § 2 –1257 of the State Government Article, 22
the General Assembly on the results of the study. 23

SECTION 16. AND BE IT FURTHER ENACTED, That, on or before July 1, 2027, 24
the Maryland Clean Energy Center shall: 25

(1) establish an application process for loans made under the Green and 26
Renewable Energy Efficiency for Nonprofits Loan Program in Title 10, Subtitle 8 of the 27
Economic Development Article, as enacted by Section 4 of this Act; 28

(2) set guidelines and conside rations for application, selection, and 29
repayment that include: 30

(i) nonprofit organizations that own, rather than rent, their 31
buildings; 32
132 SENATE BILL 841

(ii) property size and kilowatt–hours of energy used; 1

(iii) geographic diversity; 2

(iv) ethnic and racial diversity; 3

(v) economic diversity; 4

(vi) nonprofit organization mission diversity; 5

(vii) access to the borrower’s portion of the cost of the qualifying 6
energy system; and 7

(viii) process and frequency of loan repayment; and 8

(3) develop and implement an advertising campaign for the Green and 9
Renewable Energy Efficiency for Nonprofits Loan Program. 10

SECTION 17. AND BE IT FURTHER ENACTED, That all employees who are 11
transferred to the Department of Human Services as a result of this Act shall be transferred 12
without diminution of their rights, benefits, employment, or retirement status. 13

SECTION 18. AND BE IT FURTHER ENACTED, That the publisher of the 14
Annotated Code of Maryland, in consultation with and subject to the approval of the 15
Department of Legislative Services, shall correct, with no further action required by the 16
General Assembly, cross –references and terminology rendered incorrect by this Act. The 17
publisher shall adequately describe any correction that is made in an editor’s note following 18
the section affected. 19

SECTION 19. AND BE IT FURTHER ENACTED, That Section 5 of this Act shall 20
terminate on the taking effect of the termination provision specified in Section 10 of 21
Chapter 595 of the Acts of the General Assembly of 2024. I f that termination provision 22
takes effect, Section 5 of this Act, with no further action required by the General Assembly, 23
shall be abrogated and of no further force and effect. This Act may not be interpreted to 24
have any effect on that termination provision. 25

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 26
That the Laws of Maryland read as follows: 27

Article – State Government 28

9–20B–05. 29

(a) There is a Maryland Strategic Energy Investment Fund. 30

SENATE BILL 841 133

(b) The purpose of the Fund is to implement the Strategic Energy Investment 1
Program. 2

(c) The Administration shall administer the Fund. 3

(e) The Fund consists of: 4

(1) all of the proceeds from the sale of allowances under § 2–1002(g) of the 5
Environment Article; 6

(2) money appropriated in the State budget to the Program; 7

(3) repayments and prepayments of principal and interest on loans made 8
from the Fund; 9

(4) compliance fees paid under § 7–705 of the Public Utilities Article; 10

(5) money received from any public or private source for the benefit of the 11
Fund; 12

(6) money transferred from the Public Service Commission under § 13
7–207.2(d)(3) of the Public Utilities Article; and 14

(7) money distributed under § 2–614.1 of the Tax – General Article. 15

(f) The Administration shall use the Fund: 16

(13) notwithstanding subsection (g) of this section, to pay costs associated 17
with the Air and Radiation Administration within the Department of the Environment; 18
[and] 19

(14) TO AWARD BIDS FOR RENEWABLE ENERGY GENERATION 20
PROJECTS UNDER § 9–20E–02 OF THIS TITLE; AND 21

[(14)] (15) to pay the expenses of the Program. 22

[(g–1) Proceeds received by the Fund from compliance fees under § 7–705(b)(2)(i)2 of 23
the Public Utilities Article shall be allocated as follows: 24

(1) beginning in fiscal year 2025, at least 20% of the proceeds shall be used 25
to provide grants to support the installation of new solar energy generating systems under 26
the Customer–Sited Solar Program; 27

(2) up to 10% of the proceeds shall be credited to an administrative expense 28
account for costs related to the administration of the Fund; 29

134 SENATE BILL 841

(3) proceeds collected but unused from a previous year shall be used before 1
proceeds allocated for the current year; and 2

(4) the Administration shall reallocate to other authorized uses any 3
proceeds that are not used within 3 fiscal years after collection.] 4

[(i) (1) Except as provided in paragraphs (2), (3), and (4) of this subsection, 5
compliance fees paid under § 7 –705(b) of the Public Utilities Article may be used only to 6
make loans and grants to support the creation of new Tier 1 renewable energy sources in 7
the State that are owned by or directly benefit: 8

(i) low– to moderate–income communities located in a census tract 9
with an average median income at or below 80% of the average median income for the State; 10
or 11

(ii) overburdened or underserved communities, as defined in § 1–701 12
of the Environment Article. 13

(2) Compliance fees paid under § 7 –705(b)(2)(i)2 of the Public Utilities 14
Article shall be accounted for separately within the Fund an d may be used only to make 15
loans and grants to support the creation of new solar energy sources in the State that are 16
owned by or directly benefit: 17

(i) low– to moderate–income communities located in a census tract 18
with an average median income at or below 80% of the average median income for the State; 19

(ii) overburdened or underserved communities, as defined in § 1–701 20
of the Environment Article; or 21

(iii) households with low to moderate income, as defined in § 9–2016 22
of this title. 23

(3) For fiscal year 2026 only, up to $100,000,000 of compliance fees paid 24
under §§ 7–705(b) and 7–705(b)(2)(i)2 of the Public Utilities Article shall be accounted for 25
separately within the Fund and may be used for solar development on State government 26
property and local government clean energy projects. 27

(4) (i) Subject to subparagraphs (ii), (iii), and (iv) of this paragraph, 28
compliance fees paid under § 7 –705 of the Public Utilities Article may be used to provide 29
grants to electric companies to be refunded or c redited to each residential distribution 30
customer based on the customer’s consumption of electricity supply that is subject to the 31
renewable energy portfolio standard. 32

(ii) The refunding or crediting of amounts to residential distribution 33
customers shall be identified on the customer’s bill as a line item identified as a “legislative 34
energy relief refund”. 35

SENATE BILL 841 135

(iii) An electric company awarded a grant under this paragraph: 1

1. may not retain any of the grant funds to cover overhead 2
expenses; and 3

2. shall provide all of the grant funds to residential 4
distribution customers. 5

(iv) The process under subparagraphs (i) and (ii) of this paragraph 6
related to the refunding or crediting of amounts to residential distribution customers shall 7
be directed and overseen by the Commission. 8

(i–1) (1) (i) In this subsection the following words have the meanings 9
indicated. 10

(ii) “Area median income” has the meaning stated in § 4–1801 of the 11
Housing and Community Development Article. 12

(iii) “Low and moderate income” means having an annual household 13
income that is at or below 120% of the area median income. 14

(2) Compliance fees paid under § 7–705(b–1) of the Public Utilities Article 15
shall be accounted for separately within the Fund and may be used only to make loans and 16
grants to promote increased opportunities for the growth and development of small, 17
minority, women –owned, and veteran –owned businesses in the State that install 18
geothermal systems in the State.] 19

(I) COMPLIANCE FEES PAID INTO THE FUND UNDER § 7–705 OF THE 20
PUBLIC UTILITIES ARTICLE MAY BE USED O NLY TO AWARD BIDS FOR RE NEWABLE 21
ENERGY GENERATION PROJECTS UNDER § 9–20E–01 OF THIS TITLE. 22

SUBTITLE 20E. ALTERNATIVE COMPLIANCE FEE AUCTIONS. 23

9–20E–01. 24

(A) IN THIS SUBTITLE THE FOLLOWING WORDS HAVE THE MEANI NGS 25
INDICATED. 26

(B) “ADMINISTRATION” MEANS THE MARYLAND ENERGY 27
ADMINISTRATION. 28

(C) “ALTERNATIVE COMPLIANCE FEE” MEANS A FEE PAID IN ACCORDANCE 29
WITH § 7–705 OF THE PUBLIC UTILITIES ARTICLE TO THE MARYLAND STRATEGIC 30
ENERGY INVESTMENT FUND ESTABLISHED UNDER § 9–20B–05 OF THIS TITLE. 31

136 SENATE BILL 841

(D) “AUCTION” MEANS AN ALTERNATIVE COMPLIANCE FEE AUCTION. 1

(E) “CAPACITY TARGET” MEANS A CALCULATION OF THE AMOUNT OF 2
RENEWABLE ENERGY GEN ERATION NEEDED IN A GIVEN YE AR TO SATISFY THE 3
RENEWABLE ENERGY PORTFOLIO STANDARD UNDER § 7–703 OF THE PUBLIC 4
UTILITIES ARTICLE FOR A SPECIFIC YEAR, MINUS THE AMOUNT ALR EADY 5
PROCURED FROM OTHER SOURCES. 6

(F) “COMMISSION” MEANS THE PUBLIC SERVICE COMMISSION. 7

(G) “RENEWABLE ENERGY” MEANS ENERGY GENERATED FROM: 8

(1) GEOTHERMAL ENERGY GENERATING SYSTEMS; 9

(2) OFFSHORE WIND ENERGY GENERATING SYSTEMS; OR 10

(3) SOLAR ENERGY GENERATING SYSTEMS. 11

9–20E–02. 12

(A) (1) BEGINNING JANUARY 1, 2027, THE ADMINISTRATION SHALL 13
CONDUCT, IN CONSULTATION WITH THE COMMISSION, AN ANNUAL, COMPETITIVE, 14
LOW–BID ALTERNATIVE COMPLIANCE FEE AUCTION TO AWARD CONTRACTS T O 15
ELIGIBLE BIDDERS TO FUND PROJECTS FOR THE DEVELOPMENT OF RENEWABLE 16
ENERGY GENERATI ON IN THE STATE USING REVENUE F ROM ALTERNATIVE 17
COMPLIANCE FEES. 18

(2) (I) EACH YEAR T HE ADMINISTRATION AND THE COMMISSION 19
SHALL SET THE CAPACITY TAR GET FOR THE AMOUNT O F RENEWABLE ENERGY 20
GENERATION REQUIRED FOR THAT YEAR. 21

(II) IN DETERMINING THE CA PACITY TARGET FOR EA CH 22
AUCTION, THE ADMINISTRATION AND THE COMMISSION SHALL USE A 23
TRANSPARENT METHODOLOGY, INCLUDING: 24

1. RENEWABLE ENERGY CREDIT SHORTFALLS FROM THE 25
PRIOR YEAR; 26

2. ANTICIPATED GROWTH IN RENEWABLE ENERGY OVER 27
TIME; 28

3. PROJECTED ALTERNATIV E COMPLIANCE FEE 29
REVENUE; 30
SENATE BILL 841 137

4. MODELED EXPECTED ENE RGY CLEARING PRI CES; 1
AND 2

5. TRENDS IN IN –STATE RENEWABLE ENERG Y 3
GENERATION. 4

(3) IN EACH AUCTION , THE ADMINISTRATION SHALL PROCURE 5
PROJECTS FOR THE GENERATION OF RENEWABLE ENERGY IN A QUANTITY THAT 6
MEETS OR EXCEEDS ANY RENEWABLE ENERGY CREDIT SHORTFALLS IN THE PRIOR 7
YEAR. 8

(4) THE ADMINISTRATION AND THE COMMISSION MAY SET: 9

(I) A MINIMUM LEVEL OF M EGAWATTS REQUIRED FROM EACH 10
TYPE OF RENEWABLE ENERGY SOURCE IN THE AUCTION; OR 11

(II) SPECIFIC PROCUREMENT THRESHOLDS FOR ALL TYPES OF 12
RENEWABLE ENERGY SOURCES COLLECTIVELY. 13

(B) (1) THE ADMINISTRATION, IN CONSULTATION WITH THE 14
COMMISSION, SHALL DEVELOP AND CONDUCT THE AUCTIONS IN A MANNER THAT IS 15
COST–EFFECTIVE AND MAINTA INS AND PROMOTES THE DEVELOPMENT OF 16
RENEWABLE ENERGY IN THE STATE. 17

(2) THE COMPETITIVE AUCTION PROCESS MAY REQUIRE THE 18
ADMINISTRATION TO SOLICIT A SERIES OF BIDS FROM RENEWABLE ENERG Y 19
PROJECT DEVELOPERS F OR THE DEVELOPM ENT OF RENEWABLE ENERGY 20
GENERATION PROJECTS THAT ARE NEEDED TO MEET ELECTRICITY DEMAND IN A 21
COST–EFFECTIVE MANNER. 22

(C) (1) TO BE ELIGIBLE TO SUBMIT A BID UNDER THIS SECTION A PERSON 23
MUST: 24

(I) BE A RENEWABLE ENERG Y GENERATION PROJECT 25
DEVELOPER; AND 26

(II) MEET THE MINIMUM CRE DIT AND OTHER ELIGIB ILITY 27
REQUIREMENTS SET UNDER PARAGRAPH (2) OF THIS SUBSECTION. 28

(2) THE ADMINISTRATION, IN CONSULTATION WITH THE 29
COMMISSION, SHALL SET ELIGIBILITY REQU IREMENTS FOR BIDDERS , INCLUDING 30
REQUIRING EACH BIDDER TO: 31
138 SENATE BILL 841

(I) PROVIDE PROOF OF FINANCIAL INTEGRITY; 1

(II) POST A BOND OR OTHER SIMILAR INSTRUMENT; 2

(III) AGREE TO BE SUBJECT TO ALL APPLICABLE TAXES; AND 3

(IV) COMPLY WITH ANY OTHER REQUIREMEN TS THE 4
ADMINISTRATION DETERMINES ARE IN THE PUBLIC INTEREST. 5

(D) (1) ELIGIBLE BIDDERS SHALL SUBMIT COMPETI TIVE BIDS BY 6
SPECIFYING: 7

(I) THE ACTUAL AMOUNT OF MEGAWATTS TO BE GENERATED 8
BY THE RENEWABLE ENERGY GENERATION PROJECT; AND 9

(II) A PRICE PER MEGAWATT THAT WOULD BE REQUIRED FROM 10
THE AUCTION. 11

(2) THE ADMINISTRATION SHALL RANK BIDS FROM LOWES T TO 12
HIGHEST COST PER MEG AWATT AND AWARD FUNDS DERIVED FROM ALTERNATIVE 13
COMPLIANCE FEES TO THE LOWEST BID OR BIDS. 14

(3) THE ADMINISTRATION SHALL AWARD BIDS UNTIL THE CAPACITY 15
TARGET SET UNDER SUBSECTION (A)(2) OF THIS SECTION IS REACHED. 16

(4) THE BIDDER WHO SUBMITS THE LOWEST RESPONSIVE BID FOR 17
DEVELOPING A RENEWABLE ENERGY GENERATION PROJECT SHALL BE AWARDED 18
THE AMOUNT OF FUNDS TO BUILD THE RENEWABLE ENERGY GENERATION PROJECT. 19

(5) THE ADMINISTRATION MAY REFUSE TO ACCEPT SOME OR ALL OF 20
THE BIDS MADE IN A C OMPETITIVE AUCTION I N ACCORDANCE WITH ST ANDARDS 21
ADOPTED BY THE ADMINISTRATION. 22

(6) IF THE CAPACITY TARGE T CAN BE MET AT A COST BEL OW THE 23
ALLOCATED FUNDING, THE ADMINISTRATION MAY: 24

(I) CARRY FORWARD ANY FUNDING TO THE NEXT AUCTION; OR 25

(II) APPLY THE FUNDS FOR ANY ADDITIONAL MEGAW ATTS OF 26
RENEWABLE ENERGY GENERATION THAT HA VE BEEN OFFERED UNDER T HE 27
AUCTION. 28

SENATE BILL 841 139

(E) (1) THE ADMINISTRATION SHALL SET DELIVERY DEADLIN ES FOR 1
EACH RENEWABLE ENERG Y GENERATION PROJECT THAT IS AWAR DED FUNDING 2
FROM AN AUCTION. 3

(2) THE DEADLINES SET IN PARAGRAPH (1) OF THIS SUBSECTION 4
SHALL INCLUDE MILEST ONES THAT REQUIRE TH E DEVELOPER TO MEET CERTAIN 5
DELIVERY GOALS DURIN G THE DEVELOPMENT OF A RENEWABLE ENERGY 6
GENERATION PROJECT. 7

(3) THE ADMINISTRATION MAY GR ANT EXTENSIONS FOR D ELIVERY 8
GOALS THAT ARE DELAYED DUE TO INTERCONNECTION OR P ERMITTING 9
CHALLENGES OR DELAYS IF THE DEVELOPER PRO VIDES DOCUMENTATION OF THE 10
CHALLENGE OR DELAY. 11

(4) THE ADMINISTRATION SHALL ESTABLISH A METHOD O F 12
COLLECTION AGAINST A NY DEVELOPER AWARDED A CONTRACT U NDER THIS 13
SECTION TO RECAPTURE ANY FUNDS RECEIVED AS A RESULT OF: 14

(I) MISAPPROPRIATION, OVERPAYMENT, OR FRAUD; OR 15

(II) FAILURE TO MEET MILESTONES OR DELIVERY DATES. 16

(F) WITHIN 90 DAYS AFTER ALL CONTR ACTS FOR RENEWABLE ENERGY 17
GENERATION PROJECTS ARE EXECUTED, THE ADMINISTRATION SHALL PUBLICLY 18
DISCLOSE THE NAMES OF EACH SUCCESSFUL BIDDER AND THE MEGAWATTS TO BE 19
DELIVERED BY THE DEVELOPMENT O F THE RENEWABLE ENER GY GENERATION 20
PROJECT. 21

(G) ALL PROCEEDS FROM ALTERNATIVE COMPLIANCE FEES ACCRUED IN 22
THE MARYLAND STRATEGIC ENERGY INVESTMENT FUND SHALL BE AVAILAB LE 23
EACH YEAR FOR EACH AUCTION. 24

(H) ON OR BEFORE JULY 1, 2027, AND EACH JULY 1 THEREAFTER, THE 25
ADMINISTRATION AND TH E COMMISSION SHALL REPO RT TO THE GENERAL 26
ASSEMBLY, IN ACCORDANCE WITH § 2–1257 OF TH IS A RTICLE, ON THE 27
ADMINISTRATION OF EACH AUCTION, INCLUDING: 28

(1) THE AMOUNT OF MEGAWA TTS PROCURED THROUGH THE 29
AUCTION; 30

(2) THE COST PER MEGAWAT T OF RENEWABLE ENERG Y ALLOCATED 31
IN THE AUCTION; 32

140 SENATE BILL 841

(3) THE NUMBER OF RENEWA BLE ENERGY CREDITS C REATED AS A 1
RESULT OF THE AUCTION; AND 2

(4) ANY OTHER INFORMATION THE ADMINISTRATION AND TH E 3
COMMISSION CONSIDER RELEVANT. 4

(I) THE ADMINISTRATION, IN CONSULTATION WITH THE COMMISSION, 5
SHALL ADOPT REGULATIONS TO CARRY OUT THIS SECTION. 6

SECTION 2. AND BE IT FURTHER ENACTED, That the Laws of Maryland read 7
as follows: 8

Article – State Government 9

9–2016. 10

(a) (1) In this section the following words have the meanings indicated. 11

(2) “Eligible customer–generator” has the meaning stated in § 7–306 of the 12
Public Utilities Article. 13

(3) “Low to moderate income ” means a household with an annual 14
household income at or below 150% of the average median income for the State. 15

(4) “Program” means the Customer –Sited Solar Program established in 16
this section. 17

(b) There is a Customer–Sited Solar Program in the Administration. 18

(e) The Program may provide grants to an income –verified eligible 19
customer–generator with a low to moderate income in an amount equal to $750 per kilowatt 20
of nameplate capacity for a solar energy generating system, up to a maximum of $7,500 per 21
system. 22

(f) A grant awarded under subsection (e) of this section shall be funded from [fees 23
collected under § 7–705(b)(2)(i)2 of the Public Utilities Article and allocated in accordance 24
with § 9–20B–05(g–1) of this title] THE MARYLAND STRATEGIC ENERGY INVESTMENT 25
FUND ESTABLISHED UNDER § 9–20B–05 OF THIS TITLE. 26

SECTION 3. AND BE IT FURTHER ENACTED, That the Laws of Maryland read 27
as follows: 28

Article – State Government 29

9–20B–05. 30

SENATE BILL 841 141

(a) There is a Maryland Strategic Energy Investment Fund. 1

[(g–1) Up to 10% of the proceeds received by the Fund from compliance fees under § 2
7–705(b)(2)(i)2 of the Public Utilities Article shall be credited to an administrative expense 3
account for costs related to the administration of the Fund.] 4

SECTION 4. AND BE IT FURTHER ENACTED, That Section 2 of this Act shall 5
terminate on the taking effect of the termination provision specified in Section 10 of 6
Chapter 595 of the Acts of the General Assembly of 2024. If that termination provision 7
takes effect, Section 1 of this Act, with no further action required by the General Assembly, 8
shall be abrogated and of no further force and effect. This Act may not be interpreted to 9
have any effect on that termination provision. 10

SECTION 5. AND BE IT FURTHER ENACTED, That Section 3 of this Act shall take 11
effect on the taking effect of the termination provision specified in Section 10 of Chapter 12
595 of the Acts of the General Assembly of 2024. 13

SECTION 6. AND BE IT FURTHER ENACTED, That , subject to Section 5 of this 14
Act, this Act shall take effect July 1, 2026. 15

SECTION 20. AND BE IT FURTHER ENACTED, That this Act shall take effect 16
July 1, 2026. 17

Approved:
________________________________________________________________________________
Governor.
________________________________________________________________________________
President of the Senate.
________________________________________________________________________________
Speaker of the House of Delegates.