Certificates of Public Convenience and Necessity and Construction of Data Centers

EXPLANATION: CAPITALS INDICATE MATTER ADDED TO EXISTING LAW.
[Brackets] indicate matter deleted from existing law.
*sb1000*

SENATE BILL 1000
C5, N1, M5 6lr3707

By: Senator Ferguson
Introduced and read first time: February 23, 2026
Assigned to: Rules

A BILL ENTITLED

AN ACT concerning 1

Certificates of Public Convenience and Necessity and Construction of Data 2
Centers 3

FOR the purpose of expanding the application of certain requirements for the construction 4
of certain overhead transmission lines to include certain other t ransmission lines; 5
requiring the Public Service Commission to adopt regulations to establish specific 6
criteria for making the determination to waive, for good cause, the requirement to 7
obtain a certificate of public convenience and necessity in certain cir cumstances; 8
repealing a requirement that the Commission waive the requirement to obtain a 9
certificate of public convenience and necessity for certain overhead transmission 10
lines under certain circumstances ; prohibiting the construction of a data center in 11
certain development districts in Baltimore City; and generally relating to the 12
construction of transmission lines and data centers in the State. 13

BY repealing and reenacting, without amendments, 14
Article – Public Utilities 15
Section 7–207(a)(1) and (3) and (g) 16
Annotated Code of Maryland 17
(2025 Replacement Volume and 2025 Supplement) 18

BY repealing and reenacting, with amendments, 19
Article – Public Utilities 20
Section 7–207(b)(3) and (4), (c) through (f), and (h) 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
2 SENATE BILL 1000

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

Article – Public Utilities 3

7–207. 4

(a) (1) In this section the following words have the meanings indicated. 5

(3) (i) “Construction” means: 6

1. any physical change at a site, including fabrication, 7
erection, installation, or demolition; or 8

2. the entry into a binding agreement or contractual 9
obligation to purchase equipment exclusively for use in construction in the State or to 10
undertake a program of actual construction in the State which cannot be canceled or 11
modified wi thout substantial loss to the owner or operator of the proposed generating 12
station. 13

(ii) “Construction” does not include a change that is needed for the 14
temporary use of a site or route for nonutility purposes or for use in securing geological 15
data, including any boring that is necessary to ascertain foundation conditions. 16

(b) (3) (i) Except as provided in paragraph (4) of this subsection, unless a 17
certificate of public convenience and necessity for the construction is first obtained from the 18
Commission, a person may not begin construction of [an overhead] A transmission line that 19
is designed to carry a voltage in excess of 69,000 volts or exercise a right of condemnation 20
with the construction. 21

(ii) [For] SUBJECT TO SUBPARAGRA PH (III) OF THIS 22
PARAGRAPH, FOR construction related to an existing [overhead] transmission line, the 23
Commission may waive the requirement in subparagraph (i) of this paragraph for good 24
cause. 25

(III) THE COMMISSION SHALL ADOP T REGULATIONS TO 26
ESTABLISH SPECIFIC C RITERIA FOR MAKING THE DETERMINAT ION TO WAIVE T HE 27
REQUIREMENT IN SUBPA RAGRAPH (I) OF THIS PARAGRAPH FO R GOOD CAUSE , 28
INCLUDING: 29

1. THE COST OF THE CONSTRUCTION ON RATEPAYERS; 30

2. THE IMPACT OF THE CO NSTRUCTION ON THE 31
ENVIRONMENT; AND 32

SENATE BILL 1000 3

3. ANY OTHER MATTER THE COMMISSION CONSIDERS 1
APPROPRIATE. 2

[(iii)] (IV) Notwithstanding subparagraph (i) of this paragraph and 3
subject to subparagraph [(iv)] (V) of this paragraph, the Commission may issue a certificate 4
of public convenience and necessity for the construct ion of [an overhead] A transmission 5
line only if the applicant for the certificate of public convenience and necessity: 6

1. is an electric company; or 7

2. is or, on the start of commercial operation of the 8
[overhead] transmission line, will be subj ect to regulation as a public utility by an officer 9
or an agency of the United States. 10

[(iv)] (V) The Commission may not issue a certificate of public 11
convenience and necessity for the construction of [an overhead] A transmission line in the 12
electric distribution service territory of an electric company to an applicant other than an 13
electric company if: 14

1. the [overhead] transmission line is to be located solely 15
within the electric distribution service territory of that electric company; and 16

2. the cost of the [overhead] transmission line is to be paid 17
solely by that electric company and its ratepayers. 18

[(v)] (VI) 1. This subparagraph applies to the construction of 19
[an overhead ] A transmission line for which a certificate of public conveni ence and 20
necessity is required under this section. 21

2. On issuance of a certificate of public convenience and 22
necessity for the construction of [an overhead] A transmission line, a person may acquire 23
by condemnation, in accordance with Title 12 of the Real Property Article, any property or 24
right necessary for the construction or maintenance of the transmission line. 25

(4) (i) [Except as provided in subparagraph (ii) of this paragraph, for 26
construction related to an existing overhead transmission line d esigned to carry a voltage 27
in excess of 69,000 volts, the Commission shall waive the requirement to obtain a certificate 28
of public convenience and necessity if the Commission finds that the construction does not: 29

1. require the person to obtain new re al property or 30
additional rights–of–way through eminent domain; or 31

2. require larger or higher structures to accommodate: 32

A. increased voltage; or 33

4 SENATE BILL 1000

B. larger conductors. 1

(ii) 1. For construction related to an existing overhead 2
transmission line, including repairs, that is necessary to avoid an imminent safety hazard 3
or reliability risk, a person may undertake the necessary construction ] A PERSON MAY 4
COMPLETE CONSTRUCTIO N RELATED TO AN EXIS TING TRANSMISSION LI NE, 5
INCLUDING REPAIRS, IF THE CONSTRUCTION IS NECESSARY TO AVOID AN IMMINENT 6
SAFETY HAZARD OR RELIABILITY RISK. 7

[2.] (II) Within 30 days after construction is completed 8
under [subsubparagraph 1 of this subparagraph ] SUBPARAGRAPH (I) OF THIS 9
PARAGRAPH, a person shall file a report w ith the Commission describing the work that 10
was completed. 11

(c) (1) On receipt of an application for a certificate of public convenience and 12
necessity under this section, the Commission shall provide notice immediately or require 13
the applicant to provide notice immediately of the application to: 14

(i) the Department of Planning; 15

(ii) the governing body, and if applicable the executive, of each 16
county or municipal corporation in which any portion of the generating station, [overhead] 17
transmission line, or qualified generator lead line is proposed to be constructed; 18

(iii) the governing body, and if applicable the executive, of each 19
county or municipal corporation within 1 mile of the proposed location of the generating 20
station, [overhead] transmission line, or qualified generator lead line; 21

(iv) each member of the General Assembly representing any part of 22
a county in which any portion of the generating station, [overhead] transmission line, or 23
qualified generator lead line is proposed to be constructed; 24

(v) each member of the General Assembly representing any part of 25
each county within 1 mile of the proposed location of the generating station, [overhead] 26
transmission line, or qualified generator lead line; 27

(vi) for a proposed [overhead] transmission line, each owner of land 28
and each owner of adjacent land; and 29

(vii) all other interested persons. 30

(2) The Commission, when sending the notice required under paragraph 31
(1) of this subsection, shall forward a copy of the application to: 32

SENATE BILL 1000 5

(i) each appropriate State unit and unit of local government for 1
review, evaluation, and comment regarding the significance of the proposal to State, 2
area–wide, and local plans or programs; and 3

(ii) each member of the General Assembly included under paragraph 4
(1)(iv) and (v) of this subsection who requests a copy of the application. 5

(3) On receipt of an application for a certificate of public convenience and 6
necessity under this section, the Commission shall provide notice of the application on the 7
Commission’s social media platforms and website. 8

(d) (1) (i) The Commission shall provide an opportunity for public 9
comment and hold a public hearing on the application for a certificate of public convenience 10
and necessity in each coun ty and municipal corporation in which any portion of the 11
construction of a generating station, [an overhead] A transmission line designed to carry a 12
voltage in excess of 69,000 volts, or a qualified generator lead line is proposed to be located. 13

(ii) The Commission may hold the public hearing virtually rather 14
than in person if the Commission provides a comparable opportunity for public comment 15
and participation in the hearing. 16

(2) The Commission shall hold the public hearing jointly with the 17
governing body of the county or municipal corporation in which any portion of the 18
construction of the generating station, [overhead] transmission line, or qualified generator 19
lead line is proposed to be located, unless the governing body declines to participate in the 20
hearing. 21

(3) (i) Once in each of the 4 successive weeks immediately before the 22
hearing date, the Commission shall provide weekly notice of the public hearing and an 23
opportunity for public comment: 24

1. by advertisement in a newspaper of general circulation in 25
the county or municipal corporation affected by the application; 26

2. on two types of social media; and 27

3. on the Commission’s website. 28

(ii) Before a public hearing, the Commission shall coordinate with 29
the governing body of the county or municipal corporation in which any portion of the 30
construction of the generating station, [overhead] transmission line, or qualified generator 31
lead line is proposed to be located to identify additional options for providing, in an efficient 32
and cost–effective manner, notice of the public hearing through other types of media that 33
are familiar to the residents of the county or municipal corporation. 34

6 SENATE BILL 1000

(4) (i) On the day of a public hearing, an informational sign shall be 1
posted prominently at or ne ar each public entrance of the building in which the public 2
hearing will be held. 3

(ii) The informational sign required under subparagraph (i) of this 4
paragraph shall: 5

1. state the time, room number, and subject of the public 6
hearing; and 7

2. be at least 17 by 22 inches in size. 8

(iii) If the public hearing is conducted virtually rather than in person, 9
the Commission shall provide information on the hearing prominently on the Commission’s 10
website. 11

(5) (i) The Commission shall ensure presen tation and 12
recommendations from each interested State unit, and shall allow representatives of each 13
State unit to sit during hearing of all parties. 14

(ii) The Commission shall allow each State unit 15 days after the 15
conclusion of the hearing to modify the State unit’s initial recommendations. 16

(e) The Commission shall take final action on an application for a certificate of 17
public convenience and necessity only after due consideration of: 18

(1) the recommendation of the governing body of each county or municipal 19
corporation in which any portion of the construction of the generating station, [overhead] 20
transmission line, or qualified generator lead line is proposed to be located; 21

(2) the effect of the generating station, [overhead] transmission line, or 22
qualified generator lead line on: 23

(i) the stability and reliability of the electric system; 24

(ii) economics; 25

(iii) esthetics; 26

(iv) historic sites; 27

(v) WHEN APPLICABLE , aviation safety as determined by the 28
Maryland Aviation Administration and the administrator of the Federal Aviation 29
Administration; 30

(vi) when applicable, air quality and water pollution; and 31

SENATE BILL 1000 7

(vii) the availability of means for the required timely disposal of 1
wastes produced by any generating station; 2

(3) the effect of climate change on the generating station, [overhead] 3
transmission line, or qualified generator lead line based on the best available scientific 4
information recognized by the Intergovernmental Panel on Climate Change; 5

(4) for a generating station: 6

(i) the consistency of the application with the comprehensive plan 7
and zoning of each county or municipal corporation where any portion of the generating 8
station is proposed to be located; 9

(ii) the efforts to resolve any issu es presented by a county or 10
municipal corporation where any portion of the generating station is proposed to be located; 11

(iii) the impact of the generating station on the quantity of annual 12
and long–term statewide greenhouse gas emissions, measured in the manner specified in § 13
2–1202 of the Environment Article and based on the best available scientific information 14
recognized by the Intergovernmental Panel on Climate Change; and 15

(iv) the consistency of the application with the State’s climate 16
commitments for reducing statewide greenhouse gas emissions, including those specified 17
in Title 2, Subtitle 12 of the Environment Article; and 18

(5) for a solar energy generating station specified under § 7 –218 of this 19
subtitle, whether the owner of a proposed solar energy generating station complies with 20
the site requirements under § 7–218(f) of this subtitle. 21

(f) For the construction of [an overhead] A transmission line, in addition to the 22
considerations listed in subsection (e) of this section, the Commission shall: 23

(1) take final action on an application for a certificate of public convenience 24
and necessity only after due consideration of: 25

(i) the need to meet existing and future demand for electric service; 26
and 27

(ii) for construction related to a new [overhead] transmission line, 28
the alternative routes that the applicant considered, including the estimated capital and 29
operating costs of each alternative route and a statement of the reason why the alternative 30
route was rejected; 31

(2) require as an ongoing condition of the certificate of public convenience 32
and necessity that an applicant comply with: 33

8 SENATE BILL 1000

(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 Commis sion 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) (1) The Commission may not authorize, and a person may not underta ke, 13
the construction of an overhead transmission line that is aligned with and within 1 mile of 14
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) (1) A county or municipal corporation has the authority to approve or deny 24
any local permit required under a certificate of pub lic convenience and necessity issued 25
under this section or a distributed generation certificate of public convenience and necessity 26
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 issued 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
SENATE BILL 1000 9

(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 convenience 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 quali fied 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

Article – Real Property 10

14–134. 11

(A) (1) IN THIS SECTION THE F OLLOWING WORDS HAVE THE MEANI NGS 12
INDICATED. 13

(2) “DATA CENTER” MEANS A BUILDING OR GROUP OF BUILDINGS: 14

(I) USED TO HOUSE COMPUTER SY STEMS, COMPUTER 15
STORAGE EQUIPMENT, AND ASSOCIATED INFRA STRUCTURE THAT BUSIN ESSES OR 16
OTHER ORGANIZATIONS USE TO ORGANIZE , PROCESS, STORE, AND DISSEMINATE 17
LARGE AMOUNTS OF DATA; 18

(II) THAT HAS OR IS PROJECTED TO HAVE AN AGGREGATE 19
DEMAND OF AT LEAST 5 MEGAWATTS; AND 20

(III) THAT HAS OR IS PROJECTED TO HAVE A LOAD FACTO R OF 21
MORE THAN 80%. 22

(3) “DEVELOPMENT DISTRICT” MEANS AN AR EA OR AREAS WITHIN 23
THE CITY OF BALTIMORE DESIGNATED BY AN ORDINANCE OF THE MAYOR AND CITY 24
COUNCIL OF BALTIMORE. 25

(4) “TAX INCREMENT” MEANS FOR ANY TAX YE AR THE AMOUNT BY 26
WHICH THE ASSESSABLE BASE AS OF JANUARY 1 PRECEDING THAT TAX Y EAR 27
EXCEEDS THE ORIGIN AL TAXABLE VALUE , DIVIDED BY THE ASSES SMENT RATIO 28
USED TO DETERMINE THE ORIGINAL TAXABLE VALUE. 29

(B) THIS SECTION APPLIES ONLY IN BALTIMORE CITY. 30

10 SENATE BILL 1000

(C) (1) EXCEPT AS PROVIDED IN PARAGRAPH (2) OF THIS SUBSECTION, A 1
PERSON MAY NOT CONSTRUCT A DATA CENTER IN A DEVELOPMENT DISTRICT THAT 2
IS SUBJECT TO TAX INCREMENT REPAYMENT ON OUTSTANDING BONDS. 3

(2) THE PROHIBITION IN PARAGRAPH (1) OF THIS SUBSECTION DOES 4
NOT APPLY TO THE CON STRUCTION OF A DATA CENTER IN THE CITY–WIDE 5
AFFORDABLE HOUSING DEVELOPMENT DISTRICT ESTABLISHED UNDER 6
BALTIMORE CITY ORDINANCE NO. 24–443, ENACTED DECEMBER 4, 2024. 7

SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect June 8
1, 2026. 9