<section article="gpu" article_name="Public Utilities" number="7-101" title_number="7" title_name="Gas, Electric, and Water Companies" subtitle_number="1" subtitle_name="General Provisions"> <text>Except as otherwise provided by law, the provisions of this subtitle are not subject to the jurisdiction of the Commission.</text> </section> <section article="gpu" article_name="Public Utilities" number="7-102" title_number="7" title_name="Gas, Electric, and Water Companies" subtitle_number="1" subtitle_name="General Provisions"> <level label="a"> <text>A gas company incorporated in Maryland may:</text> <level label="1"> <text>manufacture artificial gas;</text> </level> <level label="2"> <text>sell or furnish any quantity of natural gas or artificial gas that may be required in any municipal corporation or county of the State;</text> </level> <level label="3"> <text>lay pipe under the roadways or other public ways of any county or municipal corporation of the State to transmit natural gas or artificial gas; and</text> </level> <level label="4"> <text>connect the pipe from the place of supply to any structure or object.</text> </level> </level> <level label="b"> <level label="1"> <text>A gas company must have the consent of the governing body of the municipal corporation or county before laying any gas pipe in accordance with subsection (a) of this section.</text> </level> <level label="2"> <text>The governing body of the municipal corporation or county may adopt reasonable regulations and conditions for the laying of a gas pipe, including regulations requiring the gas company to refill and repave any roadway or other public way under which the pipe is laid.</text> </level> </level> <level label="c"> <text>A gas company, whether incorporated in Maryland or another state, that is authorized by a governing body of a municipal corporation or county to lay or maintain pipe or other structures in a roadway or other public way or place shall obtain consent from the Commission before using the pipe or other structure to transmit and supply natural gas, artificial gas, or a mixture of natural gas and artificial gas.</text> </level> <level label="d"> <text>This section does not:</text> <level label="1"> <text>extend the duration of a franchise granted by the governing body of a municipal corporation or county; or</text> </level> <level label="2"> <text>except as provided in this section, change the terms or conditions of the franchise.</text> </level> </level> </section> <section article="gpu" article_name="Public Utilities" number="7-103" title_number="7" title_name="Gas, Electric, and Water Companies" subtitle_number="1" subtitle_name="General Provisions"> <level label="a"> <text>An electric company incorporated in Maryland may:</text> <level label="1"> <text>manufacture, sell, and furnish electric power in any municipal corporation or county of the State;</text> </level> <level label="2"> <text>construct a power line to transmit power under, along, on, or over the roadways or public ways of any municipal corporation or county of the State; and</text> </level> <level label="3"> <text>connect the power line from the place of supply to any other structure or object.</text> </level> </level> <level label="b"> <level label="1"> <text>An electric company must have the consent of the governing body of the municipal corporation or county before laying or constructing any power line in accordance with subsection (a) of this section.</text> </level> <level label="2"> <text>The governing body of the municipal corporation or county may adopt reasonable regulations and conditions for the laying of a power line, including regulations requiring the electric company to refill and repave any roadway or public way under which the power line is laid.</text> </level> </level> </section> <section article="gpu" article_name="Public Utilities" number="7-104" title_number="7" title_name="Gas, Electric, and Water Companies" subtitle_number="1" subtitle_name="General Provisions"> <text>The formation, organization, and governance of electric cooperatives incorporated in Maryland are governed by Title 5, Subtitle 6 of the Corporations and Associations Article.</text> </section> <section article="gpu" article_name="Public Utilities" number="7-105" title_number="7" title_name="Gas, Electric, and Water Companies" subtitle_number="1" subtitle_name="General Provisions"> <level label="a"> <text>A water company incorporated in the State has the powers necessary for the purposes for which it is incorporated and may:</text> <level label="1"> <text>acquire, possess, and use land, water rights, and other property for those purposes; and</text> </level> <level label="2"> <text>lay pipes and construct works necessary or suitable to carry out its purposes.</text> </level> </level> <level label="b"> <level label="1"> <text>A water company shall obtain the consent of the governing body of the municipal corporation or county before laying pipes or constructing waterworks in that jurisdiction under subsection (a) of this section.</text> </level> <level label="2"> <text>The governing body of the municipal corporation or county may adopt reasonable regulations for the laying of pipes, construction of works, and operations of a water company.</text> </level> </level> <level label="c"> <text>This section does not authorize the incorporation of a water company to operate in Baltimore City.</text> </level> </section> <section article="gpu" article_name="Public Utilities" number="7-106" title_number="7" title_name="Gas, Electric, and Water Companies" subtitle_number="1" subtitle_name="General Provisions"> <level label="a"> <text>This section does not qualify, limit, or abridge the power and authority, or the manner of exercise of any power and authority, conferred on a municipal corporation by its charter or a special act of the General Assembly to sell, lease, exchange, or otherwise dispose of any electric plant or gas plant.</text> </level> <level label="b"> <text>This section does not apply to:</text> <level label="1"> <text>Talbot County;</text> </level> <level label="2"> <text>Washington County; or</text> </level> <level label="3"> <text>the municipal corporation of Berlin, Centreville, Hagerstown, Rock Hall, or Snow Hill.</text> </level> </level> <level label="c"> <text>Subject to subsection (d) of this section, a municipal corporation that owns an electric plant or a gas plant may sell, lease, exchange, or otherwise dispose of the plant, or any part of or interest in the plant, to any electric company or gas company on terms and conditions determined by the municipal corporation.</text> </level> <level label="d"> <level label="1"> <text>The sale, lease, exchange, or other disposition of an electric plant or a gas plant by a municipal corporation is subject to approval by the Commission.</text> </level> <level label="2"> <text>If the Commission approves the sale, lease, exchange, or other disposition, at least twice within 15 days after the date of the order of approval by the Commission, the municipal corporation shall publish notice of the sale, lease, exchange, or other disposition and of the approval by the Commission:</text> <level label="i"> <text>in a newspaper published in the municipal corporation; or</text> </level> <level label="ii"> <text>if no newspaper is published in the municipal corporation, in a newspaper published in the county in which the municipal corporation is located.</text> </level> </level> </level> <level label="e"> <level label="1"> <text>A proposed sale, lease, exchange, or other disposition of a municipally owned electric plant or gas plant shall be ratified at a special election by the affirmative vote of a majority of the residents of the municipal corporation eligible to vote at the last preceding regular election for municipal officers if a petition, subject to paragraph (2) of this subsection, is delivered to the municipal corporation requesting the municipal corporation to hold a special election for the ratification or disapproval of the proposed sale, lease, exchange, or other disposition.</text> </level> <level label="2"> <text>A petition under paragraph (1) of this subsection shall be:</text> <level label="i"> <text>in writing;</text> </level> <level label="ii"> <text>signed by at least 10% of the residents of the municipal corporation eligible to vote at the last preceding regular election for municipal officers; and</text> </level> <level label="iii"> <text>delivered within 30 days after the date of publication of the second notice required under subsection (d)(2) of this section.</text> </level> </level> <level label="3"> <text>The municipal corporation shall hold a special election under this subsection at the time and place in the municipal corporation and in the manner that the municipal corporation requires.</text> </level> <level label="4"> <text>If the sale, lease, exchange, or other disposition is ratified at the special election, the municipal corporation shall consummate the sale, lease, exchange, or other disposition.</text> </level> </level> <level label="f"> <level label="1"> <text>If a petition for a special election is not delivered to the municipal corporation in accordance with subsection (e) of this section:</text> <level label="i"> <text>ratification at a special election is not required; and</text> </level> <level label="ii"> <text>the municipal corporation shall consummate the sale, lease, exchange, or other disposition.</text> </level> </level> <level label="2"> <text>A sale, lease, exchange, or other disposition that is consummated under this subsection is as valid and effective as a disposition ratified under subsection (e) of this section.</text> </level> </level> </section> <section article="gpu" article_name="Public Utilities" number="7-107" title_number="7" title_name="Gas, Electric, and Water Companies" subtitle_number="1" subtitle_name="General Provisions"> <text>Subject to the regulations of the Commission, the County Commissioners of Garrett County may adopt, amend, and enforce a reasonable charge for discontinuing and restoring water service.</text> </section> <section article="gpu" article_name="Public Utilities" number="7-108" title_number="7" title_name="Gas, Electric, and Water Companies" subtitle_number="1" subtitle_name="General Provisions"> <level label="a"> <level label="1"> <text>In this section the following words have the meanings indicated.</text> </level> <level label="2"> <text>“Affiliate” has the meaning stated in § 7–501 of this title.</text> </level> <level label="3"> <text>“Meeting” means any committee, user group, task force, or other part of the regional transmission organization in which votes are taken.</text> </level> <level label="4"> <text>“Recorded vote” means a vote that is tabulated, either individually or as part of a sector, for any purpose at a meeting, regardless of:</text> <level label="i"> <text>whether the vote represents a final position of any person casting the vote; or</text> </level> <level label="ii"> <text>the decision–making authority of those voting.</text> </level> </level> <level label="5"> <text>“Regional transmission organization” means an entity that qualifies as a regional transmission organization under 18 C.F.R. § 35.34.</text> </level> </level> <level label="b"> <text>This section does not apply to a municipal electric utility.</text> </level> <level label="c"> <level label="1"> <text>On or before February 1 each year, each electric company shall submit to the Commission a report on each recorded vote cast by the electric company or, subject to paragraph (2) of this subsection, a State affiliate of the electric company at a meeting of a regional transmission organization during the immediately preceding calendar year.</text> </level> <level label="2"> <text>The report shall include:</text> <level label="i"> <text>all recorded votes cast by the electric company, regardless of whether the vote is otherwise disclosed; and</text> </level> <level label="ii"> <text>all votes cast by a State affiliate of the electric company if the electric company itself does not vote on the matter.</text> </level> </level> </level> </section> <section article="gpu" article_name="Public Utilities" number="7-109" title_number="7" title_name="Gas, Electric, and Water Companies" subtitle_number="1" subtitle_name="General Provisions"> <level label="a"> <text>This section does not apply to an electric cooperative.</text> </level> <level label="b"> <text>A person that owns or operates a transmission line that is designed to carry a voltage in excess of 69,000 volts and is located in the State shall participate as a member in a regional transmission organization.</text> </level> </section> <section article="gpu" article_name="Public Utilities" number="7-201" future_version_removed="true" title_number="7" title_name="Gas, Electric, and Water Companies" subtitle_number="2" subtitle_name="Electric Generation Facility Planning"> <level label="a"> <level label="1"> <text>Annually, the Chairman of the Commission shall forward to the Secretary of Natural Resources a 10-year plan listing possible and proposed sites, including the associated transmission routes, for the construction of electric plants within the State.</text> </level> <level label="2"> <level label="i"> <text>The Chairman shall delete from the 10-year plan any site that the Secretary of Natural Resources identifies as unsuitable in accordance with the requirements of § 3-304 of the Natural Resources Article.</text> </level> <level label="ii"> <text>The Chairman may include a site deleted from a 10-year plan under subparagraph (i) of this paragraph in a subsequent 10-year plan.</text> </level> </level> <level label="3"> <text>The Chairman shall include information in the annual 10-year plan on current and projected efforts by electric companies and the Commission to moderate overall electrical generation demand and peak demand through the electric companies’ promotion of energy conservation by customers and through the electric companies’ use of alternative energy sources, including cogeneration.</text> </level> <level label="4"> <text>To the extent that the Commission requires an electric company to report the information described in paragraph (3) of this subsection, a small rural electric cooperative described in § 7-502(a) of this title may satisfy the requirement by submitting to the Commission a copy of the power requirement study that the small rural electric cooperative submits to the rural utilities service.</text> </level> </level> <level label="b"> <level label="1"> <text>The Commission shall evaluate the cost-effectiveness of the investments by electric companies in energy conservation to reduce electrical demand and in renewable energy sources to help meet electrical demand.</text> </level> <level label="2"> <text>The evaluation of investments shall include:</text> <level label="i"> <text>the electric companies’ promotion and conduct of a building audit and weatherization program, including low-interest or no-interest electric company financing for the installation of energy conservation materials and renewable energy devices;</text> </level> <level label="ii"> <text>utilization of renewable energy sources;</text> </level> <level label="iii"> <text>promotion and utilization of electricity from cogeneration and wastes; and</text> </level> <level label="iv"> <text>widespread public promotion of energy conservation programs.</text> </level> </level> </level> </section> <section article="gpu" article_name="Public Utilities" number="7-202" title_number="7" title_name="Gas, Electric, and Water Companies" subtitle_number="2" subtitle_name="Electric Generation Facility Planning"> <level label="a"> <text>If the Commission determines that a site is needed, the Commission, on its own motion, may request the Secretary of Natural Resources to purchase a power plant site as provided in Title 3, Subtitle 3 of the Natural Resources Article.</text> </level> <level label="b"> <text>In determining whether a need exists for the State to purchase a power plant site, the Commission shall consider:</text> <level label="1"> <text>the suitability of sites owned by an electric company, both within and outside the State;</text> </level> <level label="2"> <text>the anticipated growth of electric power demand and the alternative means and locations for meeting that demand, both within and outside the State; and</text> </level> <level label="3"> <text>any other factors required by law.</text> </level> </level> <level label="c"> <level label="1"> <text>The Commission may determine that a power plant site is needed only after the Commission gives public notice and holds a public hearing.</text> </level> <level label="2"> <text>The hearing shall be held in the legislative district in which the site under consideration is located.</text> </level> </level> </section> <section article="gpu" article_name="Public Utilities" number="7-203" title_number="7" title_name="Gas, Electric, and Water Companies" subtitle_number="2" subtitle_name="Electric Generation Facility Planning"> <level label="a"> <level label="1"> <text>The Commission shall:</text> <level label="i"> <text>impose an environmental surcharge per kilowatt hour of electricity distributed to retail electric customers within the State; and</text> </level> <level label="ii"> <text>authorize each electric company to add the full amount of the surcharge to its customers’ bills.</text> </level> </level> <level label="2"> <text>To the extent that an electric company fails to collect the surcharge from its customers, the amount uncollected shall be deemed a cost of power distribution and allowed and computed as such together with other allowable expenses for purposes of rate making.</text> </level> </level> <level label="b"> <level label="1"> <text>The Comptroller shall collect the revenue from the surcharge imposed under subsection (a) of this section and place the revenue into a special fund, the Environmental Trust Fund.</text> </level> <level label="2"> <text>The Comptroller shall maintain the method of collection of the surcharge from each electric company, and the money collected shall accrue to the Fund.</text> </level> </level> <level label="c"> <level label="1"> <text>Each fiscal year, the Secretary of Natural Resources shall coordinate the preparation of the annual budget required to carry out the provisions of the Power Plant Research Program under Title 3, Subtitle 3 of the Natural Resources Article.</text> </level> <level label="2"> <text>Each fiscal year, on approval of the annual budget by the General Assembly for the Power Plant Research Program, the Commission shall establish the amount of the environmental surcharge per kilowatt hour of electric energy distributed in the State that is to be imposed on each electric company in accordance with subsection (a) of this section.</text> </level> </level> <level label="d"> <level label="1"> <text>Notwithstanding any other provision of this subtitle, the amount of the surcharge for each account of each retail electric customer may not exceed the lesser of 0.15 mill per kilowatt hour or $1,000 per month.</text> </level> <level label="2"> <text>The Department of Natural Resources shall credit against the amount the Commission requires each electric company to pay into the Environmental Trust Fund 0.75% of the total surcharge amount attributed to the electric company on the basis of the amount of the electricity distributed in the State.</text> </level> </level> <level label="e"> <text>To the extent that the Commission requires an electric company to report the total estimated kilowatt hours of electricity distributed in the State in order to calculate the surcharge under subsection (a)(1) of this section, a small rural electric cooperative described in § 7–502(a) of this title may satisfy the requirement by submitting to the Commission an estimate made in accordance with a formula approved by the Commission from information that the small rural electric cooperative submits to the rural utilities service that includes the required information.</text> </level> <level label="f"> <text>The surcharge imposed under this subtitle shall terminate on June 30, 2030.</text> </level> </section> <section article="gpu" article_name="Public Utilities" number="7-204" title_number="7" title_name="Gas, Electric, and Water Companies" subtitle_number="2" subtitle_name="Electric Generation Facility Planning"> <level label="a"> <text>In this section, “construction” has the meaning stated in § 7–207 of this subtitle.</text> </level> <level label="b"> <level label="1"> <text>Notwithstanding any other provision of this division, at least 30 days before a hearing, a public service company shall provide to each owner of land and each owner of adjacent land, by certified mail, written notice of intent to run a line or similar transmission device over, on, or under the land.</text> </level> <level label="2"> <text>On receipt of an application for the construction of a transmission line under § 7–207 or § 7–208 of this subtitle, the Commission shall provide, or direct the person applying for a certificate of public convenience and necessity to provide, by certified mail, notice of intent to run a line or similar transmission device over, on, or under the land to:</text> <level label="i"> <text>each owner of land that abuts the property where the construction is planned; and</text> </level> <level label="ii"> <text>for construction of an overhead transmission line, each owner of land and each owner of adjacent land.</text> </level> </level> <level label="3"> <text>Notice provided under this subsection shall include information regarding:</text> <level label="i"> <text>any applicable right to file as an intervenor in the proceeding in accordance with § 3–106 of this article;</text> </level> <level label="ii"> <text>the process for filing as an intervenor in the proceeding, including the method for filing and the location where the filing is required to be submitted; and</text> </level> <level label="iii"> <text>contact information for the Commission and the website where the recipient may obtain additional information regarding intervention rights and procedures.</text> </level> </level> </level> <level label="c"> <text>The public service company shall determine the property owners from the current tax assessment records of the political subdivision in which the property is located.</text> </level> <level label="d"> <text>If the Commission determines that a person directed to provide notice under subsection (b)(2) of this section has failed to provide notice in accordance with this section:</text> <level label="1"> <text>if the failure is willful or deliberate, the public hearing is invalidated and another hearing must take place; or</text> </level> <level label="2"> <text>if the failure is not willful or deliberate, the Commission may require another hearing to take place.</text> </level> </level> </section> <section article="gpu" article_name="Public Utilities" number="7-205" title_number="7" title_name="Gas, Electric, and Water Companies" subtitle_number="2" subtitle_name="Electric Generation Facility Planning"> <level label="a"> <level label="1"> <text>In this section, “modification” means a physical alteration of, replacement of, or other change to the facilities at a power plant, or a change in the fuel used by the plant, that could result in a change of the air emissions from the plant or from a generating unit of the plant.</text> </level> <level label="2"> <text>“Modification” does not include:</text> <level label="i"> <text>routine maintenance or repairs of the facilities of a power plant; or</text> </level> <level label="ii"> <text>a change that the Commission determines will not result in an increase in air emissions from the plant or from a generating unit of the plant.</text> </level> </level> </level> <level label="b"> <text>Subject to subsections (c) through (e) of this section, a person may not commence a modification without the prior approval of the Commission under this title.</text> </level> <level label="c"> <level label="1"> <text>Unless the Commission orders otherwise, an application for a modification to a power plant shall be filed with the Commission at least 180 days before the date on which the modification is to commence.</text> </level> <level label="2"> <text>The applicant for the modification shall submit to the Commission and to the Department of the Environment all information relating to the modification, including:</text> <level label="i"> <text>detailed plans and specifications; and</text> </level> <level label="ii"> <text>the impact of the modification on air quality.</text> </level> </level> </level> <level label="d"> <text>The Commission shall render its decision within 150 days after the day the application is filed.</text> </level> <level label="e"> <text>Notwithstanding the provisions of this section, a modification to a power plant that involves the short-term inability to obtain the type of fuel normally used by the plant is subject to Title 2, Subtitle 5 of the Environment Article.</text> </level> </section> <section article="gpu" article_name="Public Utilities" number="7-206" title_number="7" title_name="Gas, Electric, and Water Companies" subtitle_number="2" subtitle_name="Electric Generation Facility Planning"> <level label="a"> <text>This section applies to the installation of pollution control equipment or a change in the method of operation at a generating station that a person performs in order to comply with Phase II pollution control requirements of the federal Clean Air Act.</text> </level> <level label="b"> <text>Any person that performs an installation or change in operation under subsection (a) of this section shall obtain prior review and approval of the Commission in accordance with:</text> <level label="1"> <text>§§ 7-203, 7-207, and 7-208 of this subtitle; and</text> </level> <level label="2"> <text>the procedures set forth in § 7-205 of this subtitle and § 2-405 of the Environment Article.</text> </level> </level> <level label="c"> <text>In order to meet compliance dates established under Title 2, Subtitle 10 of the Environment Article or the federal Clean Air Act, a Commission review and approval, or processing of an application for a certificate of public convenience and necessity under § 7-207 of this subtitle, shall be expedited and take precedence over other review and approval by the Commission if the review and approval or certificate of public convenience and necessity is required:</text> <level label="1"> <text>for pollution control equipment or a change in the method of operation at a generating station; and</text> </level> <level label="2"> <text>for compliance with:</text> <level label="i"> <text>Title 2, Subtitle 10 of the Environment Article;</text> </level> <level label="ii"> <text>regulations adopted by the Department of the Environment under Title 2, Subtitle 10 of the Environment Article; or</text> </level> <level label="iii"> <text>the federal Clean Air Act.</text> </level> </level> </level> </section> <section article="gpu" article_name="Public Utilities" number="7-207" future_version_removed="true" title_number="7" title_name="Gas, Electric, and Water Companies" subtitle_number="2" subtitle_name="Electric Generation Facility Planning"> <level label="a"> <level label="1"> <text>In this section the following words have the meanings indicated.</text> </level> <level label="2"> <text>“Advanced transmission technologies” means:</text> <level label="i"> <text>grid–enhancing technologies;</text> </level> <level label="ii"> <text>high performance conductors; or</text> </level> <level label="iii"> <text>storage used as a transmission asset.</text> </level> </level> <level label="3"> <text>“Brownfields site” means:</text> <level label="i"> <text>a former industrial or commercial site identified by federal or State laws or regulation as contaminated or polluted;</text> </level> <level label="ii"> <text>a closed landfill regulated by the Department of the Environment; or</text> </level> <level label="iii"> <text>mined land.</text> </level> </level> <level label="4"> <level label="i"> <text>“Construction” means:</text> <level label="1"> <text>any physical change at a site, including fabrication, erection, installation, or demolition; or</text> </level> <level label="2"> <text>the entry into a binding agreement or contractual obligation to purchase equipment exclusively for use in construction in the State or to undertake a program of actual construction in the State which cannot be canceled or modified without substantial loss to the owner or operator of the proposed generating station.</text> </level> </level> <level label="ii"> <text>“Construction” does not include a change that is needed for the temporary use of a site or route for nonutility purposes or for use in securing geological data, including any boring that is necessary to ascertain foundation conditions.</text> </level> </level> <level label="5"> <text>“Generating station” does not include:</text> <level label="i"> <text>a generating unit or facility that:</text> <level label="1"> <text>is used for the production of electricity;</text> </level> <level label="2"> <text>has the capacity to produce not more than 2 megawatts of alternating current; and</text> </level> <level label="3"> <text>is installed with equipment that prevents the flow of electricity to the electric grid during time periods when the electric grid is out of service;</text> </level> </level> <level label="ii"> <text>a combination of two or more generating units or facilities that:</text> <level label="1"> <text>are used for the production of electricity from a solar photovoltaic system or an eligible customer–generator that is subject to the provisions of § 7–306 of this title;</text> </level> <level label="2"> <text>are located on the same property or adjacent properties;</text> </level> <level label="3"> <text>have the capacity to produce, when calculated cumulatively for all generating units or facilities on the property or adjacent property, more than 2 megawatts but not more than 14 megawatts of alternating current; and</text> </level> <level label="4"> <text>for each individual generating unit or facility:</text> </level> <level label="A"> <text>has the capacity to produce not more than 2 megawatts of alternating current;</text> </level> <level label="B"> <text>is separately metered by the electric company; and</text> </level> <level label="C"> <text>does not export electricity for sale on the wholesale market under an agreement with PJM Interconnection, LLC;</text> </level> </level> <level label="iii"> <text>a generating unit or facility that:</text> <level label="1"> <text>is used for the production of electricity for the purpose of:</text> </level> <level label="A"> <text>onsite emergency backup at a facility when service from the electric company is interrupted due to electric distribution or transmission system failure or when there is equipment failure at a site where critical infrastructure is located; and</text> </level> <level label="B"> <text>test and maintenance operations necessary to ensure functionality of the generating unit or facility in the event of a service interruption from the electric company due to electric distribution or transmission system failure or when there is equipment failure at a site where critical infrastructure is located;</text> </level> <level label="2"> <text>is installed with equipment that prevents the flow of electricity to the electric grid;</text> </level> <level label="3"> <text>is subject to a permit to construct issued by the Department of the Environment; and</text> </level> <level label="4"> <text>is installed at a facility that is part of critical infrastructure if the facility complies with all applicable regulations regarding noise level and testing hours; or</text> </level> </level> <level label="iv"> <text>a combination of two or more generating units or facilities that satisfy item (iii) of this paragraph.</text> </level> </level> <level label="6"> <level label="i"> <text>“Grid–enhancing technology” means hardware or software that increases the capacity, efficiency, or reliability of existing transmission systems.</text> </level> <level label="ii"> <text>“Grid–enhancing technology” includes:</text> <level label="1"> <text>a system that uses real–time or forecasted weather and operating conditions to determine the transfer capacity of transmission systems;</text> </level> <level label="2"> <text>technology that modulates circuit impedance or other electrical properties to reroute power flows and relieve congestion; and</text> </level> <level label="3"> <text>software that identifies switching configurations to reroute electricity and alleviate transmission constraints.</text> </level> </level> </level> <level label="7"> <text>“High performance conductors” means conductors, including advanced steel core conductors, carbon fiber and composite core conductors, and superconductors, that have a direct current electrical resistance that is at least 20% less than traditional ACSR conductors of a similar diameter when used on the electric transmission system at the standard operating temperature of 20 degrees Celsius.</text> </level> <level label="8"> <level label="i"> <text>“Mined land” means the surface or subsurface of an area in which surface mining operations will be, are being, or have been conducted.</text> </level> <level label="ii"> <text>“Mined land” includes:</text> <level label="1"> <text>private ways and roads used for mining appurtenant to any surface mining area;</text> </level> <level label="2"> <text>land excavations;</text> </level> <level label="3"> <text>workings; and</text> </level> <level label="4"> <text>overburden.</text> </level> </level> </level> <level label="9"> <text>“Qualified generator lead line” means a transmission line and any associated advanced transmission technology designed to carry, or support the carrying of, a voltage in excess of 69,000 volts and would allow an out–of–state Tier 1 or Tier 2 renewable source to interconnect with a portion of the electric system in Maryland that is owned by an electric company.</text> </level> <level label="10"> <text>“Storage used as a transmission asset” means an energy storage facility that:</text> <level label="i"> <text>is planned, operated, and recovers costs as a transmission facility that provides one or more transmission services, including congestion relief, voltage support, power flow control, or stability under any PJM tariffs and applicable FERC orders;</text> </level> <level label="ii"> <text>except as authorized for transmission assets, is not dispatched for wholesale energy storage; and</text> </level> <level label="iii"> <text>is eligible for cost recovery in transmission rates.</text> </level> </level> <level label="11"> <text>“Traditional ACSR conductors” means electrical cables used in transmission systems that consist of a central core of steel wires surrounded by strands of aluminum.</text> </level> </level> <level label="b"> <level label="1"> <level label="i"> <text>Except as provided in subparagraph (ii) of this paragraph, unless a certificate of public convenience and necessity for the construction is first obtained from the Commission, a person may not begin construction in the State of:</text> <level label="1"> <text>a generating station;</text> </level> <level label="2"> <text>a qualified generator lead line; or</text> </level> <level label="3"> <text>an energy storage device that is part of a proposal approved by the Commission under § 7–1206 of this title.</text> </level> </level> <level label="ii"> <text>A person is not required to obtain a certificate of public convenience and necessity under this section if the person obtains:</text> <level label="1"> <text>Commission approval for construction under § 7–207.1 of this subtitle; or</text> </level> <level label="2"> <text>a distributed generation certificate of public convenience and necessity under § 7–207.4 of this subtitle.</text> </level> </level> <level label="iii"> <text>Notwithstanding subparagraph (i) of this paragraph, a person may not apply to obtain a certificate of public convenience and necessity for construction of a qualified generator lead line unless:</text> <level label="1"> <text>at least 90 days before the filing of an application for a certificate of public convenience and necessity, the person had in good faith offered the electric company that owns that portion of the electric grid in Maryland to which the qualified generator lead line would interconnect a full and fair opportunity for the electric company to construct the qualified generator lead line; and</text> </level> <level label="2"> <text>at any time at least 10 days before the filing of an application for a certificate of public convenience and necessity, the electric company:</text> </level> <level label="A"> <text>did not accept from the person a proposal or a negotiated version of the proposal under which the electric company would construct the qualified generator lead line; or</text> </level> <level label="B"> <text>stated in writing that the electric company did not intend to construct the qualified generator lead line.</text> </level> </level> <level label="iv"> <text>Notwithstanding any other provision of this section, a certificate of public convenience and necessity for the construction of a generating station that is part of a proposal approved by the Commission under § 7–1206 of this title shall be issued in accordance with § 7–207.4 of this subtitle.</text> </level> <level label="v"> <text>When a person applies for a certificate of public convenience and necessity for the construction of a generating station under this section, the application shall state whether the proposed generating station or the proposed modification is part of a proposal approved by the Commission under § 7–1206 of this title.</text> </level> <level label="vi"> <level label="1"> <text>The Commission may prioritize the review of an application for a certificate of public convenience and necessity under § 7–207.4 of this subtitle over the review of an application for a certificate of public convenience and necessity under this section.</text> </level> <level label="2"> <text>The Commission may extend the time for the review of an application for a certificate of public convenience and necessity under this section if, in accordance with subsubparagraph 1 of this subparagraph, the Commission has prioritized the review of an application for a certificate of public convenience and necessity under § 7–207.4 of this subtitle over the review of the application for a certificate of public convenience and necessity under this section.</text> </level> </level> </level> <level label="2"> <text>Unless a certificate of public convenience and necessity for the construction is first obtained from the Commission, and the Commission has found that the capacity is necessary to ensure a sufficient supply of electricity to customers in the State, a person may not exercise a right of condemnation in connection with the construction of a generating station.</text> </level> <level label="3"> <level label="i"> <text>Except as provided in paragraph (4) of this subsection, unless a certificate of public convenience and necessity for the construction is first obtained from the Commission, a person may not begin construction of a transmission line that is designed to carry a voltage in excess of 69,000 volts or exercise a right of condemnation with the construction.</text> </level> <level label="ii"> <text>For construction related to an existing transmission line that is designed to carry a voltage in excess of 69,000 volts, the Commission may waive the requirement in subparagraph (i) of this paragraph for good cause.</text> </level> <level label="iii"> <text>In determining whether good cause exists under subparagraph (ii) of this paragraph, the Commission shall consider:</text> <level label="1"> <text>whether the proposed construction:</text> </level> <level label="A"> <text>does not require the acquisition of new real property or additional rights–of–way through eminent domain;</text> </level> <level label="B"> <text>does not require larger or higher structures to accommodate increased voltage or larger conductors;</text> </level> <level label="C"> <text>is located substantially within an existing transmission right–of–way or existing transmission corridor or conduit system; and</text> </level> <level label="D"> <text>has a purpose independent of, and is not a part of, another project that would otherwise require the issuance of a certificate of public convenience and necessity;</text> </level> <level label="2"> <text>whether the applicant gave due consideration to alternatives to the proposed construction, including the use of advanced transmission technologies; and</text> </level> <level label="3"> <text>the extent to which:</text> </level> <level label="A"> <text>the construction substantially consists of new facilities;</text> </level> <level label="B"> <text>the cost of the facilities being constructed will be allocated to ratepayers;</text> </level> <level label="C"> <text>the facilities being constructed will impact power flow and reliability; and</text> </level> <level label="D"> <text>other factors, as determined by the Commission, support granting or denying a waiver for good cause.</text> </level> </level> <level label="iv"> <level label="1"> <text>Except as provided in subsubparagraph 2 of this subparagraph, the Commission shall issue a�written decision granting or denying a waiver under subparagraph (ii) of this paragraph within 90 days after the applicant has submitted a waiver request.</text> </level> <level label="2"> <text>Unless otherwise agreed to by the applicant, the Commission may extend the period for issuing a written decision granting or denying a waiver under subparagraph (ii) of this paragraph for a period not to exceed 60 days if the Commission determines:</text> </level> <level label="A"> <text>the applicant has failed to provide sufficient information for the Commission to make a determination; or</text> </level> <level label="B"> <text>further consideration is necessary due to material impacts to the public or ratepayers under subparagraph (iii)3 of this paragraph.</text> </level> <level label="3"> <text>Within 30 days after issuing a written decision denying a waiver under subsubparagraph 1 or 2 of this subparagraph, the Commission shall issue a written decision that states the grounds for the denial.</text> </level> </level> <level label="v"> <text>An applicant for a certificate of public convenience and necessity for the construction of a transmission line shall include in its application:</text> <level label="1"> <text>evidence that the applicant considered, as part of the applicant’s internal planning process, any local, State, or federal government transmission planning processes and any transmission planning processes required by PJM Interconnection, including:</text> </level> <level label="A"> <text>an analysis of advanced transmission technologies and whether the use of the technologies will enhance the value of the new transmission line and therefore lead to increased ratepayer value through efficiency and avoided costs;</text> </level> <level label="B"> <text>alternative routings;</text> </level> <level label="C"> <text>technologies or modifications to one or more electric distribution systems in the State that are owned by the applicant or its affiliates that could avoid the need for the transmission line;</text> </level> <level label="D"> <text>the cost to ratepayers;</text> </level> <level label="E"> <text>resource adequacy; and</text> </level> <level label="F"> <text>any other information the Commission considers appropriate; and</text> </level> <level label="2"> <text>an analysis of the transmission line route selection, including:</text> </level> <level label="A"> <text>risks associated with the costs estimates;</text> </level> <level label="B"> <text>cost containment efforts;</text> </level> <level label="C"> <text>construction schedule;</text> </level> <level label="D"> <text>acquisition of land and rights–of–way; and</text> </level> <level label="E"> <text>the applicant’s plan to work with communities and stakeholders on proposed routes.</text> </level> </level> <level label="vi"> <text>Notwithstanding subparagraph (i) of this paragraph and subject to subparagraph (vii) of this paragraph, the Commission may issue a certificate of public convenience and necessity for the construction of a transmission line only if the applicant for the certificate of public convenience and necessity:</text> <level label="1"> <text>is an electric company; or</text> </level> <level label="2"> <text>is or, on the start of commercial operation of the transmission line, will be subject to regulation as a public utility by an officer or an agency of the United States.</text> </level> </level> <level label="vii"> <text>The Commission may not issue a certificate of public convenience and necessity for the construction of a transmission line in the electric distribution service territory of an electric company to an applicant other than an electric company if:</text> <level label="1"> <text>the transmission line is to be located solely within the electric distribution service territory of that electric company; and</text> </level> <level label="2"> <text>the cost of the transmission line is to be paid solely by that electric company and its ratepayers.</text> </level> </level> <level label="viii"> <level label="1"> <text>This subparagraph applies to the construction of a transmission line for which a certificate of public convenience and necessity is required under this section.</text> </level> <level label="2"> <text>On issuance of a certificate of public convenience and necessity for the construction of a transmission line, a person may acquire by condemnation, in accordance with Title 12 of the Real Property Article, any property or right necessary for the construction or maintenance of the transmission line.</text> </level> </level> </level> <level label="4"> <level label="i"> <text>A person may complete construction related to an existing transmission line, including repairs, if the construction is necessary to avoid an imminent safety hazard or reliability risk.</text> </level> <level label="ii"> <text>Within 30 days after construction is completed under subparagraph (i) of this paragraph, a person shall file a report with the Commission describing the work that was completed.</text> </level> </level> </level> <level label="c"> <level label="1"> <text>On receipt of an application for a certificate of public convenience and necessity under the section, the Commission shall provide notice immediately or require the applicant to provide notice immediately of the application to:</text> <level label="i"> <text>the Department of Planning;</text> </level> <level label="ii"> <text>the governing body, and if applicable the executive, of each county or municipal corporation in which any portion of the generating station, transmission line, or qualified generator lead line is proposed to be constructed;</text> </level> <level label="iii"> <text>the governing body, and if applicable the executive, of each county or municipal corporation within 1 mile of the proposed location of the generating station, transmission line, or qualified generator lead line;</text> </level> <level label="iv"> <text>each member of the General Assembly representing any part of a county in which any portion of the generating station, transmission line, or qualified generator lead line is proposed to be constructed;</text> </level> <level label="v"> <text>each member of the General Assembly representing any part of each county within 1 mile of the proposed location of the generating station, transmission line, or qualified generator lead line;</text> </level> <level label="vi"> <text>for a proposed transmission line, each owner of land and each owner of adjacent land; and</text> </level> <level label="vii"> <text>all other interested persons.</text> </level> </level> <level label="2"> <text>The Commission, when sending the notice required under paragraph (1) of this subsection, shall forward a copy of the application to:</text> <level label="i"> <text>each appropriate State unit and unit of local government for review, evaluation, and comment regarding the significance of the proposal to State, area–wide, and local plans or programs; and</text> </level> <level label="ii"> <text>each member of the General Assembly included under paragraph (1)(iv) and (v) of this subsection who requests a copy of the application.</text> </level> </level> <level label="3"> <text>On receipt of an application for a certificate of public convenience and necessity under this section, the Commission shall provide notice of the application on the Commission’s social media platforms and website.</text> </level> </level> <level label="d"> <level label="1"> <level label="i"> <text>The Commission shall provide an opportunity for public comment and hold a public hearing on the application for a certificate of public convenience and necessity in each county and municipal corporation in which any portion of the construction of a generating station, a transmission line designed to carry a voltage in excess of 69,000 volts, or a qualified generator lead line is proposed to be located.</text> </level> <level label="ii"> <text>The Commission may hold the public hearing virtually rather than in person if the Commission provides a comparable opportunity for public comment and participation in the hearing.</text> </level> </level> <level label="2"> <text>The Commission shall hold the public hearing jointly with the governing body of the county or municipal corporation in which any portion of the construction of the generating station, transmission line, or qualified generator lead line is proposed to be located, unless the governing body declines to participate in the hearing.</text> </level> <level label="3"> <level label="i"> <text>Once in each of the 4 successive weeks immediately before the hearing date, the Commission shall provide weekly notice of the public hearing and an opportunity for public comment:</text> <level label="1"> <text>by advertisement in a newspaper of general circulation in the county or municipal corporation affected by the application;</text> </level> <level label="2"> <text>on two types of social media; and</text> </level> <level label="3"> <text>on the Commission’s website.</text> </level> </level> <level label="ii"> <text>Before a public hearing, the Commission shall coordinate with the governing body of the county or municipal corporation in which any portion of the construction of the generating station, transmission line, or qualified generator lead line is proposed to be located to identify additional options for providing, in an efficient and cost–effective manner, notice of the public hearing through other types of media that are familiar to the residents of the county or municipal corporation.</text> </level> </level> <level label="4"> <level label="i"> <text>On the day of a public hearing, an informational sign shall be posted prominently at or near each public entrance of the building in which the public hearing will be held.</text> </level> <level label="ii"> <text>The informational sign required under subparagraph (i) of this paragraph shall:</text> <level label="1"> <text>state the time, room number, and subject of the public hearing; and</text> </level> <level label="2"> <text>be at least 17 by 22 inches in size.</text> </level> </level> <level label="iii"> <text>If the public hearing is conducted virtually rather than in person, the Commission shall provide information on the hearing prominently on the Commission’s website.</text> </level> </level> <level label="5"> <level label="i"> <text>The Commission shall ensure presentation and recommendations from each interested State unit, and shall allow representatives of each State unit to sit during hearing of all parties.</text> </level> <level label="ii"> <text>The Commission shall allow each State unit 15 days after the conclusion of the hearing to modify the State unit’s initial recommendations.</text> </level> </level> </level> <level label="e"> <text>The Commission shall take final action on an application for a certificate of public convenience and necessity only after due consideration of:</text> <level label="1"> <text>the recommendation of the governing body of each county or municipal corporation in which any portion of the construction of the generating station, transmission line, or qualified generator lead line is proposed to be located;</text> </level> <level label="2"> <text>the effect of the generating station, transmission line, or qualified generator lead line on:</text> <level label="i"> <text>the stability and reliability of the electric system;</text> </level> <level label="ii"> <text>economics;</text> </level> <level label="iii"> <text>esthetics;</text> </level> <level label="iv"> <text>historic sites;</text> </level> <level label="v"> <text>when applicable, aviation safety as determined by the Maryland Aviation Administration and the administrator of the Federal Aviation Administration;</text> </level> <level label="vi"> <text>when applicable, air quality and water pollution; and</text> </level> <level label="vii"> <text>the availability of means for the required timely disposal of wastes produced by any generating station;</text> </level> </level> <level label="3"> <text>the effect of climate change on the generating station, transmission line, or qualified generator lead line based on the best available scientific information recognized by the Intergovernmental Panel on Climate Change;</text> </level> <level label="4"> <text>for a generating station:</text> <level label="i"> <text>the consistency of the application with the comprehensive plan and zoning of each county or municipal corporation where any portion of the generating station is proposed to be located;</text> </level> <level label="ii"> <text>the efforts to resolve any issues presented by a county or municipal corporation where any portion of the generating station is proposed to be located;</text> </level> <level label="iii"> <text>the impact of the generating station on the quantity of annual and long–term statewide greenhouse gas emissions, measured in the manner specified in § 2–1202 of the Environment Article and based on the best available scientific information recognized by the Intergovernmental Panel on Climate Change; and</text> </level> <level label="iv"> <text>the consistency of the application with the State’s climate commitments for reducing statewide greenhouse gas emissions, including those specified in Title 2, Subtitle 12 of the Environment Article; and</text> </level> </level> <level label="5"> <text>for a solar energy generating station specified under § 7–218 of this subtitle, whether the owner of a proposed solar energy generating station complies with the site requirements under § 7–218(f) of this subtitle.</text> </level> </level> <level label="f"> <text>For the construction of a transmission line, in addition to the considerations listed in subsection (e) of this section, the Commission shall:</text> <level label="1"> <text>take final action on an application for a certificate of public convenience and necessity only after due consideration of:</text> <level label="i"> <text>the need to meet existing and future demand for electric service;</text> </level> <level label="ii"> <text>evidence that alternatives have been considered by the applicant in accordance with subsection (b)(3)(v) of this section; and</text> </level> <level label="iii"> <text>for construction related to a new transmission line, the alternative routes that the applicant considered, including the estimated capital and operating costs of each alternative route and a statement of the reason why the alternative route was rejected;</text> </level> </level> <level label="2"> <text>require as an ongoing condition of the certificate of public convenience and necessity that an applicant comply with:</text> <level label="i"> <text>all relevant agreements with PJM Interconnection, L.L.C., or its successors, related to the ongoing operation and maintenance of the transmission line; and</text> </level> <level label="ii"> <text>all obligations imposed by the North America Electric Reliability Council and the Federal Energy Regulatory Commission related to the ongoing operation and maintenance of the transmission line; and</text> </level> </level> <level label="3"> <text>require the applicant to identify whether the transmission line is proposed to be constructed on:</text> <level label="i"> <text>an existing brownfields site;</text> </level> <level label="ii"> <text>property that is subject to an existing easement; or</text> </level> <level label="iii"> <text>a site where a tower structure or components of a tower structure used to support an overhead transmission line exist.</text> </level> </level> </level> <level label="g"> <level label="1"> <text>The Commission may not authorize, and a person may not undertake, the construction of an overhead transmission line that is aligned with and within 1 mile of either end of a public airport runway, unless:</text> <level label="i"> <text>the Federal Aviation Administration determines that the construction of an overhead transmission line will not constitute a hazard to air navigation; and</text> </level> <level label="ii"> <text>the Maryland Aviation Administration concurs in that determination.</text> </level> </level> <level label="2"> <text>A privately owned airport runway shall qualify as a public airport runway under this subsection only if the runway has been on file with the Federal Aviation Administration for at least 2 years as being open to the public without restriction.</text> </level> </level> <level label="h"> <level label="1"> <text>A county or municipal corporation has the authority to approve or deny any local permit required under a certificate of public convenience and necessity issued under this section or a distributed generation certificate of public convenience and necessity issued under § 7–207.4 of this subtitle.</text> </level> <level label="2"> <text>A county or municipal corporation shall approve or deny any local permits required under a certificate of public convenience and necessity issued under this section or a distributed generation certificate of public convenience and necessity issued under § 7–207.4 of this subtitle:</text> <level label="i"> <text>within a reasonable time; and</text> </level> <level label="ii"> <text>to the extent local laws are not preempted by State law, in accordance with local laws.</text> </level> </level> <level label="3"> <text>A county or municipal corporation may not condition the approval of a local permit required under a certificate of public convenience and necessity issued under this section or a distributed generation certificate of public convenience and necessity issued under § 7–207.4 of this subtitle on receipt of any of the following approvals for any aspect of a generating station, a transmission line, or a qualified lead line proposed to be constructed under the certificate:</text> <level label="i"> <text>a conditional use approval;</text> </level> <level label="ii"> <text>a special exception approval; or</text> </level> <level label="iii"> <text>a floating zone approval.</text> </level> </level> </level> </section> <section article="gpu" article_name="Public Utilities" number="7-207.1" title_number="7" title_name="Gas, Electric, and Water Companies" subtitle_number="2" subtitle_name="Electric Generation Facility Planning"> <level label="a"> <text>In this section, “generating station” does not include:</text> <level label="1"> <text>a generating unit or facility that:</text> <level label="i"> <text>is used for the production of electricity;</text> </level> <level label="ii"> <text>has the capacity to produce not more than 2 megawatts of alternating current; and</text> </level> <level label="iii"> <text>is installed with equipment that prevents the flow of electricity to the electric grid during time periods when the electric grid is out of service;</text> </level> </level> <level label="2"> <text>a combination of two or more generating units or facilities that:</text> <level label="i"> <text>are used for the production of electricity from a solar photovoltaic system or an eligible customer–generator that is subject to the provisions of § 7–306 of this title;</text> </level> <level label="ii"> <text>are located on the same property or adjacent properties;</text> </level> <level label="iii"> <text>have the capacity to produce, when calculated cumulatively for all generating units or facilities on the property or adjacent property, more than 2 megawatts but not more than 14 megawatts of alternating current; and</text> </level> <level label="iv"> <text>for each individual generating unit or facility:</text> <level label="1"> <text>has the capacity to produce not more than 2 megawatts of alternating current;</text> </level> <level label="2"> <text>is separately metered by the electric company; and</text> </level> <level label="3"> <text>does not export electricity for sale on the wholesale market under an agreement with PJM Interconnection, LLC;</text> </level> </level> </level> <level label="3"> <text>a generating unit or facility that:</text> <level label="i"> <text>is used for the production of electricity for the purpose of:</text> <level label="1"> <text>onsite emergency backup at a facility when service from the electric company is interrupted due to electric distribution or transmission system failure or when there is equipment failure at a site where critical infrastructure is located; and</text> </level> <level label="2"> <text>test and maintenance operations necessary to ensure functionality of the generating unit or facility in the event of a service interruption from the electric company due to electric distribution or transmission system failure or when there is equipment failure at a site where critical infrastructure is located;</text> </level> </level> <level label="ii"> <text>is installed with equipment that prevents the flow of electricity to the electric grid;</text> </level> <level label="iii"> <text>is subject to a permit to construct issued by the Department of the Environment; and</text> </level> <level label="iv"> <text>is installed at a facility that is part of critical infrastructure if the facility complies with all applicable regulations regarding noise level and testing hours; or</text> </level> </level> <level label="4"> <text>a combination of two or more generating units or facilities that satisfy item (3) of this subsection.</text> </level> </level> <level label="b"> <text>This section applies to a person who:</text> <level label="1"> <text>constructs a generating station:</text> <level label="i"> <text>designed to provide on–site generated electricity if:</text> <level label="1"> <text>the capacity of the generating station does not exceed 70 megawatts; and</text> </level> <level label="2"> <text>the electricity that may be exported for sale from the generating station to the electric system is sold only on the wholesale market pursuant to an interconnection, operation, and maintenance agreement with the local electric company; or</text> </level> </level> <level label="ii"> <text>that produces electricity from wind if:</text> <level label="1"> <text>the generating station is land–based;</text> </level> <level label="2"> <text>the capacity of the generating station does not exceed 70 megawatts;</text> </level> <level label="3"> <text>the electricity that may be exported for sale from the generating station to the electric system is sold only on the wholesale market pursuant to an interconnection, operation, and maintenance agreement with the local electric company;</text> </level> <level label="4"> <text>the Commission provides an opportunity for public comment at a public hearing as provided in subsection (g) of this section; and</text> </level> <level label="5"> <text>the generating station’s wind turbines are not located within a distance from the Patuxent River Naval Air Station that is determined by regulations adopted by the Commission in coordination with the Commander, Naval Air Warfare Center Aircraft Division, provided that the distance requirement under the regulation is:</text> </level> <level label="A"> <text>not greater than is necessary to encompass an area in which utility scale wind turbines could create Doppler radar interference for missions at the Patuxent River Naval Air Station;</text> </level> <level label="B"> <text>not greater than 46 miles, measured from location 38.29667N, 76.37668W; and</text> </level> <level label="C"> <text>subject to modification if necessary to reflect changes in missions or technology at the Patuxent River Naval Air Station or changes in wind energy technology; or</text> </level> </level> </level> <level label="2"> <text>constructs a generating station if:</text> <level label="i"> <text>the capacity of the generating station does not exceed 25 megawatts;</text> </level> <level label="ii"> <text>the electricity that may be exported for sale from the generating station to the electric system is sold only on the wholesale market pursuant to an interconnection, operation, and maintenance agreement with the local electric company; and</text> </level> <level label="iii"> <text>at least 10% of the electricity generated at the generating station each year is consumed on–site.</text> </level> </level> </level> <level label="c"> <level label="1"> <text>The Commission shall require a person that is exempted from the requirement to obtain a certificate of public convenience and necessity under § 7–207(b)(1)(ii)1 of this subtitle to obtain approval from the Commission under this section before the person may construct a generating station described in subsection (b) of this section.</text> </level> <level label="2"> <text>An application for approval under this section shall:</text> <level label="i"> <text>be made to the Commission in writing on a form adopted by the Commission;</text> </level> <level label="ii"> <text>be verified by oath or affirmation; and</text> </level> <level label="iii"> <text>contain information that the Commission requires, including:</text> <level label="1"> <text>proof of compliance with all applicable requirements of the independent system operator; and</text> </level> <level label="2"> <text>a copy of an interconnection, operation, and maintenance agreement between the generating station and the local electric company.</text> </level> </level> </level> </level> <level label="d"> <text>On receipt of an application for approval under this section, the Commission shall provide notice immediately or require the applicant to provide notice immediately of the application to:</text> <level label="1"> <text>the governing body of each county or municipal corporation in which any portion of the generating station is proposed to be constructed;</text> </level> <level label="2"> <text>the governing body of each county or municipal corporation within 1 mile of the proposed location of the generating station;</text> </level> <level label="3"> <text>each member of the General Assembly representing any part of a county in which any portion of the generating station is proposed to be constructed; and</text> </level> <level label="4"> <text>each member of the General Assembly representing any part of each county within 1 mile of the proposed location of the generating station.</text> </level> </level> <level label="e"> <text>When reviewing an application for approval under this section, the Commission shall:</text> <level label="1"> <text>ensure the safety and reliability of the electric system;</text> </level> <level label="2"> <text>require the person constructing the generating station to notify the Commission 2 weeks before the first export of electricity from a generating station approved under this section; and</text> </level> <level label="3"> <text>conduct its review and approval in an expeditious manner.</text> </level> </level> <level label="f"> <text>Except for the notice required under subsection (d) of this section, the Commission may waive an element of the approval process under this section if the Commission determines that the waiver is in the public interest.</text> </level> <level label="g"> <level label="1"> <text>The Commission shall provide an opportunity for public comment and hold a public hearing as provided under this subsection on an application for approval made under subsection (b)(1)(ii) of this section in each county and municipal corporation in which any portion of the construction of a generating station is proposed to be located.</text> </level> <level label="2"> <text>Upon the request of the governing body of a county or municipal corporation in which any portion of the construction of a generating station is proposed to be located, the Commission shall hold the public hearing jointly with the governing body.</text> </level> <level label="3"> <text>Once in each of 2 successive weeks immediately before the hearing date, the Commission, at the expense of the applicant, shall provide weekly notice of the public hearing and opportunity for public comment by advertisement in a newspaper of general circulation in the county or municipal corporation affected by the application.</text> </level> </level> </section> <section article="gpu" article_name="Public Utilities" number="7-207.2" title_number="7" title_name="Gas, Electric, and Water Companies" subtitle_number="2" subtitle_name="Electric Generation Facility Planning"> <level label="a"> <text>In this section, “generating station” does not include:</text> <level label="1"> <text>a generating unit or facility that:</text> <level label="i"> <text>is used for the production of electricity;</text> </level> <level label="ii"> <text>has the capacity to produce not more than 2 megawatts of alternating current; and</text> </level> <level label="iii"> <text>is installed with equipment that prevents the flow of electricity to the electric grid during time periods when the electric grid is out of service;</text> </level> </level> <level label="2"> <text>a combination of two or more generating units or facilities that:</text> <level label="i"> <text>are used for the production of electricity from a solar photovoltaic system or an eligible customer–generator that is subject to the provisions of § 7–306 of this title;</text> </level> <level label="ii"> <text>are located on the same property or adjacent properties;</text> </level> <level label="iii"> <text>have the capacity to produce, when calculated cumulatively for all generating units or facilities on the property or adjacent property, more than 2 megawatts but not more than 14 megawatts of alternating current; and</text> </level> <level label="iv"> <text>for each individual generating unit or facility:</text> <level label="1"> <text>has the capacity to produce not more than 2 megawatts of alternating current;</text> </level> <level label="2"> <text>is separately metered by the electric company; and</text> </level> <level label="3"> <text>does not export electricity for sale on the wholesale market under an agreement with PJM Interconnection, LLC;</text> </level> </level> </level> <level label="3"> <text>a generating unit or facility that:</text> <level label="i"> <text>is used for the production of electricity for the purpose of:</text> <level label="1"> <text>onsite emergency backup at a facility when service from the electric company is interrupted due to electric distribution or transmission system failure or when there is equipment failure at a site where critical infrastructure is located; and</text> </level> <level label="2"> <text>test and maintenance operations necessary to ensure functionality of the generating unit or facility in the event of a service interruption from the electric company due to electric distribution or transmission system failure or when there is equipment failure at a site where critical infrastructure is located;</text> </level> </level> <level label="ii"> <text>is installed with equipment that prevents the flow of electricity to the electric grid;</text> </level> <level label="iii"> <text>is subject to a permit to construct issued by the Department of the Environment; and</text> </level> <level label="iv"> <text>is installed at a facility that is part of critical infrastructure if the facility complies with all applicable regulations regarding noise level and testing hours; or</text> </level> </level> <level label="4"> <text>a combination of two or more generating units or facilities that satisfy item (3) of this subsection.</text> </level> </level> <level label="b"> <text>This section applies to a person who constructs a generating station that:</text> <level label="1"> <text>has the capacity to produce more than 2 megawatts of electricity, as measured by the alternating current rating of the system’s inverter, from a solar photovoltaic system; and</text> </level> <level label="2"> <text>is exempted under § 7–207(b)(1)(ii) of this subtitle from the requirement to obtain a certificate of public convenience and necessity.</text> </level> </level> <level label="c"> <level label="1"> <text>A person shall file an application for approval to construct a generating station under § 7–207.1 of this subtitle at least 6 months before construction commences.</text> </level> <level label="2"> <text>The Commission shall require a person who files an application for approval to construct a generating station to pay a deposit of 1% of total installed costs.</text> </level> </level> <level label="d"> <level label="1"> <text>The Commission shall place any deposits collected under subsection (c) of this section into an escrow account.</text> </level> <level label="2"> <text>If a person demonstrates to the Commission that the person is fully authorized to commence construction within 18 months after filing an application for approval, the Commission shall refund the deposit, less reasonable administrative costs.</text> </level> <level label="3"> <level label="i"> <text>Subject to subparagraph (ii) of this paragraph, if a person does not commence construction within 18 months after filing an application for approval, the money held in the escrow account shall be:</text> <level label="1"> <text>deemed to be abandoned; and</text> </level> <level label="2"> <text>transferred to the Maryland Strategic Energy Investment Fund under § 9–20B–05 of the State Government Article, less reasonable administrative costs.</text> </level> </level> <level label="ii"> <level label="1"> <text>A person may request an extension for a project that does not commence construction within 18 months after the filing of an application for approval.</text> </level> <level label="2"> <text>The Commission may grant the request based on factors the Commission considers compelling, including the occurrence of events outside the person’s control.</text> </level> </level> </level> </level> </section> <section article="gpu" article_name="Public Utilities" number="7-207.3" title_number="7" title_name="Gas, Electric, and Water Companies" subtitle_number="2" subtitle_name="Electric Generation Facility Planning"> <level label="a"> <level label="1"> <text>On or before December 1, 2025, and each December 1 thereafter, the owner or operator of a generating unit or facility specified under § 7–207(a)(4)(iii) of this subtitle shall submit to the Department of the Environment a report that includes:</text> <level label="i"> <text>dates on which the generating unit or facility was used for the previous 12 months;</text> </level> <level label="ii"> <text>the length of time the generating unit or facility was operated for the previous 12 months; and</text> </level> <level label="iii"> <text>for each instance that the generating unit or facility was operated over the previous 12 months, the reason the generating unit or facility was operated.</text> </level> </level> <level label="2"> <text>Unless the Department of the Environment determines that the report required under paragraph (1) of this subsection poses a risk to cybersecurity, national security, or the security of the State, the report:</text> <level label="i"> <text>shall be made publicly available; and</text> </level> <level label="ii"> <text>may not be redacted.</text> </level> </level> </level> <level label="b"> <text>On or before December 1, 2025, and every 2 years thereafter, the Maryland Energy Administration, in consultation with the Department of Commerce and industry representatives selected by the Department of Commerce, shall, in accordance with § 2–1257 of the State Government Article, submit a report to the General Assembly detailing:</text> <level label="1"> <text>advancements in backup generation technologies;</text> </level> <level label="2"> <text>the commercial availability of new backup generation technologies that can be procured; and</text> </level> <level label="3"> <text>the affordability of adopting new backup generation technologies.</text> </level> </level> </section> <section article="gpu" article_name="Public Utilities" number="7-207.4" title_number="7" title_name="Gas, Electric, and Water Companies" subtitle_number="2" subtitle_name="Electric Generation Facility Planning"> <level label="a"> <level label="1"> <text>In this section the following words have the meanings indicated.</text> </level> <level label="2"> <text>“Distributed generation certificate of public convenience and necessity” or “DGCPCN” means a certificate issued by the Commission under this section that authorizes the construction and operation of a distributed solar energy generating system.</text> </level> <level label="3"> <text>“Distributed solar energy generating system” means a community solar energy generating system, as defined in § 7–306.2 of this title, that:</text> <level label="i"> <text>would be required to obtain a certificate of public convenience and necessity under § 7–207 of this subtitle if the system does not obtain a DGCPCN under this section;</text> </level> <level label="ii"> <text>has a capacity to produce more than 2 megawatts but not more than 5 megawatts of alternating current as measured by the alternating current rating of the system’s inverter; and</text> </level> <level label="iii"> <text>is not located within a municipal corporation.</text> </level> </level> <level label="4"> <text>“Forest” has the meaning stated in § 5–1601 of the Natural Resources Article.</text> </level> <level label="5"> <text>“Power Plant Research Program” means the program within the Department of Natural Resources under Title 3, Subtitle 3 of the Natural Resources Article.</text> </level> <level label="6"> <text>“Standard licensing conditions” means the predetermined licensing conditions adopted by the Commission under this section for the construction and operation of a distributed solar energy generating system that has been issued a DGCPCN under this section.</text> </level> <level label="7"> <text>“Standard siting and design requirements” means the predetermined objective requirements adopted by the Commission under this section for the siting and design of a distributed solar energy generating system that has been issued a DGCPCN under this section.</text> </level> </level> <level label="b"> <level label="1"> <text>On or before July 1, 2026, the Power Plant Research Program, after giving notice and opportunity for public comment, shall develop and submit to the Commission proposed standard siting and design requirements and proposed standard licensing conditions for the issuance of a DGCPCN.</text> </level> <level label="2"> <text>In developing the proposed standard siting and design requirements and the proposed standard licensing conditions, the Power Plant Research Program shall:</text> <level label="i"> <text>consider achievement of the State’s climate and renewable energy commitments;</text> </level> <level label="ii"> <text>consider reasonable setbacks and landscape screening requirements;</text> </level> <level label="iii"> <text>consider environmental preservation, including prohibitions on forest clearance except where necessary to:</text> <level label="1"> <text>reduce solar panel shading near the perimeter of the project site;</text> </level> <level label="2"> <text>facilitate interconnection infrastructure; and</text> </level> <level label="3"> <text>ensure adequate site access;</text> </level> </level> <level label="iv"> <text>consider stormwater management, erosion and sediment control, and site stabilization, accounting for:</text> <level label="1"> <text>the effects on runoff from solar panels and associated equipment;</text> </level> <level label="2"> <text>the effects of soil characteristics and compaction on runoff; and</text> </level> <level label="3"> <text>the effects of the ground cover under and between the solar panels on runoff;</text> </level> </level> <level label="v"> <text>consider minimization and mitigation of the effects of a distributed solar energy generating system on historic sites;</text> </level> <level label="vi"> <text>consider public safety;</text> </level> <level label="vii"> <text>consider industry best practices;</text> </level> <level label="viii"> <text>consider ensuring the stability and reliability of the electric system by requiring the applicant to submit a signed interconnection agreement with the electric company before the start of construction;</text> </level> <level label="ix"> <text>consider licensing conditions previously adopted by the Commission for solar energy generating systems, including requirements related to decommissioning;</text> </level> <level label="x"> <text>ensure the standard siting and design requirements are consistent with § 7–218 of this subtitle; and</text> </level> <level label="xi"> <text>consider any other requirements determined necessary by the Power Plant Research Program.</text> </level> </level> </level> <level label="c"> <level label="1"> <text>Subject to paragraph (2) of this subsection, on or before July 1, 2027, the Commission shall adopt regulations to:</text> <level label="i"> <text>implement standard siting and design requirements and standard licensing conditions for a DGCPCN;</text> </level> <level label="ii"> <text>specify the form of the application for a distributed solar energy generating system to receive a DGCPCN and any application fee;</text> </level> <level label="iii"> <text>specify the Commission’s procedure for processing an application for a DGCPCN; and</text> </level> <level label="iv"> <text>establish the time period within which the Power Plant Research Program must make the determination under subsection (f) of this section.</text> </level> </level> <level label="2"> <text>The Commission shall:</text> <level label="i"> <text>consider the proposed standard siting and design requirements and the proposed standard licensing conditions developed by the Power Plant Research Program in adopting the regulations under this subsection; and</text> </level> <level label="ii"> <text>ensure regulations adopted to implement standard siting and design requirements are consistent with § 7–218 of this subtitle.</text> </level> </level> <level label="3"> <level label="i"> <text>The Commission, in consultation with the Power Plant Research Program, may periodically solicit public comments regarding improvements to the standard siting and design requirements and standard licensing conditions for a DGCPCN.</text> </level> <level label="ii"> <text>The process for soliciting public comments under subparagraph (i) of this paragraph shall be the same as the process for soliciting public comment regarding the adoption of a regulation.</text> </level> </level> <level label="4"> <level label="i"> <text>The Commission and the Department of Natural Resources may jointly set an application fee for a DGCPCN application at an amount that the Commission and the Department of Natural Resources determine may offset the administrative costs of the DGCPCN approval process that are incurred by the Commission and the Department of Natural Resources.</text> </level> <level label="ii"> <text>The administrative costs under subparagraph (i) of this paragraph shall be based on an estimate of the number of DGCPCN applications that will be filed with the Commission each year.</text> </level> </level> </level> <level label="d"> <level label="1"> <text>A person may not begin construction of a distributed solar energy generating system unless:</text> <level label="i"> <text>a DGCPCN is first obtained from the Commission in accordance with this section; or</text> </level> <level label="ii"> <text>a certificate of public convenience and necessity is first obtained from the Commission in accordance with § 7–207 of this subtitle.</text> </level> </level> <level label="2"> <text>At least 30 days before submitting an application for a DGCPCN to the Commission, the applicant shall submit a copy of the application to the governing body of the county in which the distributed solar energy generating system is proposed to be located.</text> </level> <level label="3"> <text>When a person submits an application for a DGCPCN to the Commission, the person shall submit a copy of the application to the Power Plant Research Program.</text> </level> </level> <level label="e"> <level label="1"> <text>After receiving an application for a DGCPCN but before a determination is made under subsection (f) of this section, the Commission shall provide an opportunity for public comment and hold a public hearing on an application for a DGCPCN in each county in which any portion of the construction of the distributed solar energy generating system is proposed to be located.</text> </level> <level label="2"> <text>The Commission may hold the public hearing virtually rather than in person if the Commission provides a comparable opportunity for public comment and participation in the hearing.</text> </level> </level> <level label="f"> <level label="1"> <text>After an application for a DGCPCN is filed with the Commission and within the time period set by the Commission under subsection (c)(1)(iv) of this section, the Power Plant Research Program shall:</text> <level label="i"> <text>determine whether the distributed solar energy generating system satisfies the standard siting and design requirements for the DGCPCN; and</text> </level> <level label="ii"> <text>notify the Commission in writing as to the determination made under item (i) of this paragraph, including how an application that is determined not to satisfy the standard siting and design requirements can cure the deficiency.</text> </level> </level> <level label="2"> <text>In making a determination under paragraph (1) of this subsection, the Power Plant Research Program shall consider public comments received by the Commission.</text> </level> </level> <level label="g"> <level label="1"> <text>Within 60 days after the Power Plant Research Program makes its determination under subsection (f)(1) of this section, the Commission shall schedule a hearing to consider the application for a DGCPCN.</text> </level> <level label="2"> <level label="i"> <text>At the hearing under paragraph (1) of this subsection, the Commission shall determine whether the proposed distributed solar energy generating system satisfies the standard siting and design requirements.</text> </level> <level label="ii"> <text>The Commission shall issue a DGCPCN to an applicant to construct a proposed distributed solar energy generating system subject to the standard licensing conditions if the Commission determines that the proposed distributed solar energy generating system satisfies the standard siting and design requirements.</text> </level> <level label="iii"> <text>The Commission may not issue a DGCPCN to an applicant if the proposed distributed solar energy generating system does not satisfy each of the standard siting and design requirements.</text> </level> </level> <level label="3"> <text>In making a determination under this subsection, the Commission shall consider public comments received by the Commission under subsection (e) of this section.</text> </level> </level> <level label="h"> <level label="1"> <text>A DGCPCN issued by the Commission under this section shall require the person constructing the distributed solar energy generating system to obtain the following permits and approvals from the county, municipal corporation, or soil conservation district in which the system is to be constructed:</text> <level label="i"> <text>site plan approval;</text> </level> <level label="ii"> <text>stormwater management plan approval;</text> </level> <level label="iii"> <text>erosion and sediment control plan approval;</text> </level> <level label="iv"> <text>all applicable building and electrical permits; and</text> </level> <level label="v"> <text>any additional local permit required by the standard licensing conditions.</text> </level> </level> <level label="2"> <text>The provisions of § 7–207(h) of this subtitle shall apply to any permits and approvals required under paragraph (1) of this subsection.</text> </level> </level> <level label="i"> <text>A DGCPCN issued by the Commission under this section has the same force and effect as a certificate of public convenience and necessity issued under § 7–207 of this subtitle.</text> </level> </section> <section article="gpu" article_name="Public Utilities" number="7-207.5" effective_note="EFFECTIVE UNTIL JUNE 30, 2030 PER CHAPTERS 625 AND 626 OF 2025" title_number="7" title_name="Gas, Electric, and Water Companies" subtitle_number="2" subtitle_name="Electric Generation Facility Planning"> <level label="a"> <level label="1"> <text>In this section the following words have the meanings indicated.</text> </level> <level label="2"> <text>“Construction” has the meaning stated in § 7–207 of this subtitle.</text> </level> <level label="3"> <level label="i"> <text>“Dispatchable energy generation project” means a generating station or energy storage device that is part of a proposal approved by the Commission under § 7–1206 of this title.</text> </level> <level label="ii"> <text>“Dispatchable energy generation project” includes any associated infrastructure necessary to interconnect the generating station to the electric distribution system.</text> </level> </level> <level label="4"> <text>“Energy storage device” has the meaning stated in § 7–216 of this subtitle.</text> </level> <level label="5"> <text>“Generating station” has the meaning stated in § 7–207 of this subtitle.</text> </level> <level label="6"> <text>“Large capacity energy resource” means a generating station that:</text> <level label="i"> <text>on or before January 1, 2025:</text> <level label="1"> <text>has applied to PJM for interconnection approval; or</text> </level> <level label="2"> <text>has been approved by PJM for interconnection;</text> </level> </level> <level label="ii"> <text>has a capacity rating equal to or greater than 20 megawatts after accounting for the effective load carrying capability; and</text> </level> <level label="iii"> <text>is part of a proposal approved by the Commission under § 7–1206 of this title.</text> </level> </level> <level label="7"> <text>“Qualifying project” means a dispatchable energy generation project or large capacity energy resource project that has been approved by the Commission under § 7–1208 of this title.</text> </level> </level> <level label="b"> <text>This section applies only to an application for a certificate of public convenience and necessity for the construction of a qualifying project.</text> </level> <level label="c"> <text>Unless a certificate of public convenience and necessity is first obtained from the Commission in accordance with this section or § 7–207 of this subtitle, a person may not construct a qualifying project.</text> </level> <level label="d"> <text>A certificate of public convenience and necessity issued under this section bestows the same rights as a certificate of public convenience and necessity issued under § 7–207 of this subtitle.</text> </level> <level label="e"> <text>A person applying for a certificate of public convenience and necessity under this section shall:</text> <level label="1"> <text>at least 45 days before submitting an application under this section, notify the Commission and the Power Plant Research Program; and</text> </level> <level label="2"> <text>unless otherwise specified under this section, complete all pre–application requirements before submitting an application.</text> </level> </level> <level label="f"> <level label="1"> <text>Except as provided in paragraph (2) of this subsection, the timelines associated with the normal pre–application requirements under § 7–207 of this subtitle, including the requirements under COMAR 20.79.01.04 and COMAR 20.79.01.05, shall be shortened to 45 days for applications submitted under this section.</text> </level> <level label="2"> <text>If the proposed location of a qualifying project is in an overburdened community or underserved community, as defined in § 1–701 of the Environment Article, the timeline for the pre–application requirements under COMAR 20.79.01.04 and COMAR 20.79.01.05 shall remain at 90 days.</text> </level> </level> <level label="g"> <text>Once five applications have been received under this section within a 2–month period, the Commission may delay processing any subsequent applications submitted under this section without impacting the timelines specified in this section.</text> </level> <level label="h"> <level label="1"> <text>The Commission shall:</text> <level label="i"> <text>expedite all proceedings for the review and approval of a certificate of public convenience and necessity for a qualifying project; and</text> </level> <level label="ii"> <text>take final action on a certificate of public convenience and necessity for a qualifying project not later than 295 days after the Power Plant Research Program determines that the application is complete in accordance with COMAR 20.79.01.10.</text> </level> </level> <level label="2"> <text>The Commission may extend the time to take final action on a certificate of public convenience and necessity under this section if an applicant fails to comply with the law, regulatory requirements, or Commission orders associated with obtaining a certificate of public convenience and necessity.</text> </level> <level label="3"> <text>Notwithstanding any other law or regulation, in order to meet the required timelines for the issuance of a certificate of public convenience and necessity under this section, the Commission may review and determine whether to approve decommissioning plans for a qualifying project after the certificate of public convenience and necessity has been issued.</text> </level> </level> <level label="i"> <text>In evaluating an application for a certificate of public convenience and necessity under this section, the Commission may contract for the services of independent consultants and experts.</text> </level> </section> <section article="gpu" article_name="Public Utilities" number="7-207.6" title_number="7" title_name="Gas, Electric, and Water Companies" subtitle_number="2" subtitle_name="Electric Generation Facility Planning"> <level label="a"> <text>A person that submits an application for approval of the construction of a solar energy generating station in accordance with § 7–207, § 7–207.1, or § 7–207.4 of this subtitle shall:</text> <level label="1"> <text>request, within 90 days before beginning construction, the Commissioner of Labor and Industry to determine the prevailing wage rate for each classification of worker required to perform work on the project;</text> </level> <level label="2"> <text>require that any contractor or subcontractor on the project pay its employees not less than the prevailing wage rate as determined by the Commissioner of Labor and Industry under item (1) of this subsection and Title 17, Subtitle 2 of the State Finance and Procurement Article; and</text> </level> <level label="3"> <text>include in the application an attestation that the person shall comply with the provisions of this section and any additional requirements imposed by the Commissioner of Labor and Industry.</text> </level> </level> <level label="b"> <text>In accordance with Title 3, Subtitle 5 of the Labor and Employment Article, the Maryland Department of Labor shall enforce the requirement under subsection (a)(2) of this section for contractors and subcontractors to pay employees not less than the prevailing wage rate determined by the Commissioner of Labor and Industry.</text> </level> </section> <section article="gpu" article_name="Public Utilities" number="7-207.7" title_number="7" title_name="Gas, Electric, and Water Companies" subtitle_number="2" subtitle_name="Electric Generation Facility Planning"> <level label="a"> <text>In this section, “advanced transmission technologies” has the meaning stated in § 7–207 of this subtitle.</text> </level> <level label="b"> <level label="1"> <text>Subject to paragraphs (2) and (3) of this subsection, on or before December 1, 2026, and every 4 years thereafter, each owner or operator of a transmission line shall submit to the Commission a report that:</text> <level label="i"> <text>identifies areas of significant transmission congestion costs for the immediately preceding 3 years and any reasonably foreseeable transmission constraints for the 5 years immediately following the date of the report;</text> </level> <level label="ii"> <text>identifies the projected or actual cost to ratepayers as a result of past and projected future transmission congestion;</text> </level> <level label="iii"> <text>identifies the feasibility and cost of using alternative means of addressing transmission congestion, including the use of advanced transmission technologies;</text> </level> <level label="iv"> <text>identifies the economic, environmental, and social issues posed by the use of each alternative means identified under item (iii) of this paragraph; and</text> </level> <level label="v"> <text>if feasible, proposes an advanced transmission technology implementation plan to address areas of transmission congestion identified under item (i) of this paragraph.</text> </level> </level> <level label="2"> <text>The report required under paragraph (1) of this subsection shall distinguish between regional and local congestion drivers and reference the PJM planning inputs or any other planning inputs used to support the congestion forecasts and proposed congestion relief solutions.</text> </level> <level label="3"> <text>The Commission may modify the reporting schedule specified in paragraph (1) of this subsection.</text> </level> </level> <level label="c"> <text>An owner or operator of a transmission line may use any available data from PJM or other sources in completing the report required under this section.</text> </level> </section> <section article="gpu" article_name="Public Utilities" number="7-208" title_number="7" title_name="Gas, Electric, and Water Companies" subtitle_number="2" subtitle_name="Electric Generation Facility Planning"> <level label="a"> <level label="1"> <text>In this section the following words have the meanings indicated.</text> </level> <level label="2"> <text>“Construction” has the meaning stated in § 7–207 of this subtitle.</text> </level> <level label="3"> <text>“Generating station” does not include:</text> <level label="i"> <text>a generating unit or facility that:</text> <level label="1"> <text>is used for the production of electricity for the purpose of:</text> </level> <level label="A"> <text>onsite emergency backup at a facility when service from the electric company is interrupted due to electric distribution or transmission system failure or when there is equipment failure at a site where critical infrastructure is located; and</text> </level> <level label="B"> <text>test and maintenance operations necessary to ensure functionality of the generating unit or facility in the event of an interruption of service from the electric company due to electric distribution or transmission system failure or when there is equipment failure at a site where critical infrastructure is located;</text> </level> <level label="2"> <text>is installed with equipment that prevents the flow of electricity to the electric grid;</text> </level> <level label="3"> <text>is subject to a permit to construct issued by the Department of the Environment; and</text> </level> <level label="4"> <text>is installed at a facility that is part of critical infrastructure if the facility complies with all applicable regulations regarding noise level and testing hours; or</text> </level> </level> <level label="ii"> <text>a combination of two or more generating units or facilities that satisfy item (i) of this paragraph.</text> </level> </level> <level label="4"> <text>“Qualified offshore wind project” has the meaning stated in § 7–701 of this title.</text> </level> <level label="5"> <text>“Qualified submerged renewable energy line” means:</text> <level label="i"> <text>a line carrying electricity supply and connecting a qualified offshore wind project to the transmission system; and</text> </level> <level label="ii"> <text>a line in which the portions of the line crossing any submerged lands or any part of a beach erosion control district are buried or submerged.</text> </level> </level> </level> <level label="b"> <text>This section applies to any person:</text> <level label="1"> <text>constructing a generating station and its associated transmission lines designed to carry a voltage in excess of 69,000 volts;</text> </level> <level label="2"> <text>exercising the right of condemnation in connection with the construction; or</text> </level> <level label="3"> <text>constructing a qualified submerged renewable energy line.</text> </level> </level> <level label="c"> <level label="1"> <text>To obtain the certificate of public convenience and necessity required under § 7–207 of this subtitle for construction under this section, a person shall file an application with the Commission at least 2 years before construction of the facility will commence.</text> </level> <level label="2"> <text>The Commission may waive the 2–year requirement on a showing of good cause.</text> </level> </level> <level label="d"> <text>The applicant shall:</text> <level label="1"> <text>include in an application under this section the information that the Commission requests initially; and</text> </level> <level label="2"> <text>furnish any additional information that the Commission requests subsequently.</text> </level> </level> <level label="e"> <level label="1"> <text>On the receipt of an application under this section, together with any additional information requested under subsection (d)(2) of this section, the Commission shall provide notice to:</text> <level label="i"> <text>for a proposed transmission line, each owner of land and each owner of adjacent land;</text> </level> <level label="ii"> <text>all interested persons;</text> </level> <level label="iii"> <text>the Department of Agriculture;</text> </level> <level label="iv"> <text>the Department of Commerce;</text> </level> <level label="v"> <text>the Department of the Environment;</text> </level> <level label="vi"> <text>the Department of Natural Resources;</text> </level> <level label="vii"> <text>the Department of Transportation;</text> </level> <level label="viii"> <text>the Department of Planning; and</text> </level> <level label="ix"> <text>the Maryland Energy Administration.</text> </level> </level> <level label="2"> <text>On receipt of an application under this section, and whenever additional information is received under subsection (d)(2) of this section, the Commission shall provide notice immediately or require the applicant to provide notice immediately to:</text> <level label="i"> <text>the governing body of each county or municipal corporation in which any portion of the generating station or the associated transmission lines is proposed to be constructed;</text> </level> <level label="ii"> <text>the governing body of each county or municipal corporation within 1 mile of the proposed location of the generating station or the associated transmission lines;</text> </level> <level label="iii"> <text>each member of the General Assembly representing any part of a county in which any portion of the generating station or the associated transmission lines is proposed to be constructed; and</text> </level> <level label="iv"> <text>each member of the General Assembly representing any part of each county within 1 mile of the proposed location of the generating station or the associated transmission lines.</text> </level> </level> <level label="3"> <text>The Commission shall hold a public hearing on the application as required by § 7–207 of this subtitle after:</text> <level label="i"> <text>the receipt of any additional information requested under subsection (d)(2) of this section that the Commission considers necessary; and</text> </level> <level label="ii"> <text>any publication of notice the Commission considers to be proper.</text> </level> </level> <level label="4"> <level label="i"> <text>At the public hearing, the Commission shall ensure presentation of the information and recommendations of the State units specified in paragraph (1) of this subsection and shall allow the official representative of each unit to sit during hearing of all parties.</text> </level> <level label="ii"> <text>Based on the evidence relating to the unit’s areas of concern, the Commission shall allow each unit 15 days after the conclusion of the hearing to modify or affirm the unit’s initial recommendations.</text> </level> </level> </level> <level label="f"> <text>Within 90 days after the conclusion of the hearing on an application under this section, the Commission shall:</text> <level label="1"> <level label="i"> <text>grant a certificate of public convenience and necessity unconditionally;</text> </level> <level label="ii"> <text>grant the certificate, subject to conditions the Commission determines to be appropriate; or</text> </level> <level label="iii"> <text>deny the certificate; and</text> </level> </level> <level label="2"> <text>notify all interested parties of its decision.</text> </level> </level> <level label="g"> <level label="1"> <text>The Commission shall include in each certificate it issues under subsection (f) of this section:</text> <level label="i"> <text>the requirements of the federal and State environmental laws and standards that are identified by the Department of the Environment; and</text> </level> <level label="ii"> <text>the methods and conditions that the Commission determines are appropriate to comply with those environmental laws and standards.</text> </level> </level> <level label="2"> <text>The Commission may not adopt any method or condition under paragraph (1)(ii) of this subsection that the Department of the Environment determines is inconsistent with federal and State environmental laws and standards.</text> </level> </level> <level label="h"> <level label="1"> <text>A decision of the Commission regarding the issuance of a certificate requires the vote of a majority of the members of the Commission.</text> </level> <level label="2"> <text>If a majority of the members of the Commission fails to reach agreement on the conditions to be attached to a conditional certificate, the certificate shall be denied.</text> </level> </level> <level label="i"> <text>The grant of a certificate by the Commission to any person under subsection (f) of this section constitutes:</text> <level label="1"> <text>authority for the person to dredge and construct bulkheads in the waters or private wetlands of the State and to appropriate or use the waters; and</text> </level> <level label="2"> <text>registration and a permit to construct, as required under Title 2, Subtitle 4 of the Environment Article.</text> </level> </level> <level label="j"> <level label="1"> <text>A county or municipal corporation has the authority to approve or deny any local permit required under a certificate of public convenience and necessity issued under this section.</text> </level> <level label="2"> <text>A county or municipal corporation shall approve or deny any local permits required under a certificate of public convenience and necessity issued under this section:</text> <level label="i"> <text>within a reasonable time; and</text> </level> <level label="ii"> <text>to the extent local laws are not preempted by State law, in accordance with local laws.</text> </level> </level> <level label="3"> <text>A county or municipal corporation may not condition the approval of a local permit required under a certificate of public convenience and necessity issued under this section on receipt of any of the following approvals for any aspect of a generating station, a transmission line, or a qualified lead line proposed to be constructed under the certificate:</text> <level label="i"> <text>a conditional use approval;</text> </level> <level label="ii"> <text>a special exception approval; or</text> </level> <level label="iii"> <text>a floating zone approval.</text> </level> </level> </level> </section> <section article="gpu" article_name="Public Utilities" number="7-209" title_number="7" title_name="Gas, Electric, and Water Companies" subtitle_number="2" subtitle_name="Electric Generation Facility Planning"> <level label="a"> <text>The Commission shall examine alternatives to the construction of a new transmission line in a service area, including the use of an existing transmission line of another company, if:</text> <level label="1"> <text>the existing transmission line is convenient to the service area; or</text> </level> <level label="2"> <text>the use of the transmission line will best promote economic and efficient service to the public.</text> </level> </level> <level label="b"> <text>In considering the use of an existing transmission line under subsection (a) of this section, the Commission need not consider whether the company that owns the line has a franchise in a service area.</text> </level> </section> <section article="gpu" article_name="Public Utilities" number="7-210" title_number="7" title_name="Gas, Electric, and Water Companies" subtitle_number="2" subtitle_name="Electric Generation Facility Planning"> <level label="a"> <text>This section does not apply to Baltimore City.</text> </level> <level label="b"> <level label="1"> <text>A municipal corporation may not build, maintain, or operate a plant for supplying gas or electricity for other than municipal purposes unless the municipal corporation has a certificate of authority from the Commission.</text> </level> <level label="2"> <text>If the Commission denies the certificate of authority, the municipal corporation may not reapply for a certificate until at least 6 months have elapsed from the date that the Commission denied the previous application.</text> </level> </level> <level label="c"> <text>Subject to subsection (b) of this section, a municipal corporation in the business of supplying electricity for other than municipal purposes may own or finance an interest in an electric plant to secure an entitlement of electricity for its customers.</text> </level> <level label="d"> <text>If the boundaries of a municipal corporation are enlarged by annexation, the municipal corporation may acquire the exclusive right to supply electricity within the annexed area if:</text> <level label="1"> <text>the municipal corporation:</text> <level label="i"> <text>files a petition with the Commission seeking approval to acquire the exclusive right to supply electricity within the annexed area;</text> </level> <level label="ii"> <text>provides a copy of the petition to each electric company whose service territory or electric plant will be affected by the annexation; and</text> </level> <level label="iii"> <text>attaches to the petition a copy of the amendment to the municipal corporation charter that describes the area annexed and a description of the service territory, plant, equipment, and customers of each electric company that is likely to be affected by the annexation; and</text> </level> </level> <level label="2"> <text>the Commission determines that modification of the service territory of an electric company and the transfer of a franchise or right under the franchise is in the public interest.</text> </level> </level> <level label="e"> <level label="1"> <text>A municipal corporation that acquires the exclusive right under subsection (d) of this section to supply electricity within an area annexed by the municipal corporation may exercise the right of eminent domain to acquire the existing installed facilities of each electric company within the annexed area that are used solely to supply electricity to the annexed area.</text> </level> <level label="2"> <text>The value of any property taken under paragraph (1) of this subsection shall be determined as of the date of the taking.</text> </level> </level> </section> <section article="gpu" article_name="Public Utilities" number="7-211" title_number="7" title_name="Gas, Electric, and Water Companies" subtitle_number="2" subtitle_name="Electric Generation Facility Planning"> <level label="a"> <text>The General Assembly finds and declares that it is the policy of the State to encourage the development of clean, carbon–free nuclear power, including development through innovative designs.</text> </level> <level label="b"> <text>The Maryland Energy Administration, in coordination with the Commission and the Department of Natural Resources, shall pursue:</text> <level label="1"> <text>cost–sharing agreements with neighboring states in the PJM region to mitigate the risks of developing new nuclear energy generating stations; and</text> </level> <level label="2"> <text>agreements with federal agencies regarding the siting of small modular reactors:</text> <level label="i"> <text>on federal land; or</text> </level> <level label="ii"> <text>on or near federal facilities, including military and national security installations.</text> </level> </level> </level> <level label="c"> <text>On or before December 1, 2026, the Maryland Energy Administration shall report to the General Assembly, in accordance with § 2–1257 of the State Government Article, on:</text> <level label="1"> <text>the status of the efforts made under subsection (b) of this section, including an assessment of any opportunities to participate with other states, federal agencies, and public or private partners in a multistate procurement of new nuclear energy technology; and</text> </level> <level label="2"> <text>an evaluation and status of the nuclear energy procurement process established under Subtitle 12, Part III of this title.</text> </level> </level> </section> <section article="gpu" article_name="Public Utilities" number="7-212" title_number="7" title_name="Gas, Electric, and Water Companies" subtitle_number="2" subtitle_name="Electric Generation Facility Planning"> <level label="a"> <text>On or before July 1, 2008, the Commission shall adopt regulations governing the purchase of liquid–immersed distribution transformers by electric companies.</text> </level> <level label="b"> <text>Except as provided in subsection (c) of this section, the regulations shall be consistent with the regulations adopted by the U.S. Department of Energy.</text> </level> <level label="c"> <level label="1"> <text>Subject to paragraph (2) of this subsection, the regulations shall ensure that, subject to availability, purchases of liquid–immersed distribution transformers by electric companies occurring on or after January 1, 2009, are based on the life–cycle cost methodology contained in Section 2 of Standard TP–1–2002 published by the National Electrical Manufacturers Association.</text> </level> <level label="2"> <text>The regulations adopted under this section may not apply to an electric cooperative that supplies electricity to less than 60,000 electric meters in the State.</text> </level> </level> <level label="d"> <text>For electric companies that maintain inventories of distribution transformers in the State for installation in adjacent service areas outside of the State, the Commission may also consider additional inventory management costs as costs for inclusion within the life–cycle cost methodology to be used by electric companies for purposes of this section.</text> </level> </section> <section article="gpu" article_name="Public Utilities" number="7-213" title_number="7" title_name="Gas, Electric, and Water Companies" subtitle_number="2" subtitle_name="Electric Generation Facility Planning"> <level label="a"> <level label="1"> <text>In this section the following words have the meanings indicated.</text> </level> <level label="2"> <level label="i"> <text>“Eligible reliability measure” means a replacement of or an improvement in existing infrastructure of an electric company that:</text> <level label="1"> <text>is made on or after June 1, 2014;</text> </level> <level label="2"> <text>is designed to improve public safety or infrastructure reliability;</text> </level> <level label="3"> <text>does not increase the revenue of an electric company by connecting an improvement directly to new customers; and</text> </level> <level label="4"> <text>is not included in the current rate base of the electric company as determined in the electric company’s most recent base rate proceeding.</text> </level> </level> <level label="ii"> <text>“Eligible reliability measure” includes vegetation management measures that are necessary to meet applicable service quality and reliability standards under this section.</text> </level> </level> <level label="3"> <text>“Fund” means the Electric Reliability Remediation Fund established under subsection (j) of this section.</text> </level> <level label="4"> <text>“System–average interruption duration index” or “SAIDI” means the sum of the customer interruption hours divided by the total number of customers served.</text> </level> <level label="5"> <text>“System–average interruption frequency index” or “SAIFI” means the sum of the number of customer interruptions divided by the total number of customers served.</text> </level> </level> <level label="b"> <text>It is the goal of the State that each electric company provide its customers with high levels of service quality and reliability in a cost–effective manner, as measured by objective and verifiable standards, and that each electric company be held accountable if it fails to deliver reliable service according to those standards.</text> </level> <level label="c"> <text>This section does not apply to small rural electric cooperatives or municipal electric companies.</text> </level> <level label="d"> <text>On or before July 1, 2012, the Commission shall adopt regulations that implement service quality and reliability standards relating to the delivery of electricity to retail customers by electric companies through their distribution systems, using:</text> <level label="1"> <text>SAIFI;</text> </level> <level label="2"> <text>SAIDI; and</text> </level> <level label="3"> <text>any other performance measurement that the Commission determines to be reasonable.</text> </level> </level> <level label="e"> <level label="1"> <text>The regulations adopted under subsection (d) of this section shall:</text> <level label="i"> <text>include service quality and reliability standards, including standards relating to:</text> <level label="1"> <text>service interruption;</text> </level> <level label="2"> <text>downed wire response;</text> </level> <level label="3"> <text>customer communications;</text> </level> <level label="4"> <text>vegetation management;</text> </level> <level label="5"> <text>periodic equipment inspections;</text> </level> <level label="6"> <text>annual reliability reporting; and</text> </level> <level label="7"> <text>any other standards established by the Commission;</text> </level> </level> <level label="ii"> <text>account for major outages caused by events outside the control of an electric company; and</text> </level> <level label="iii"> <text>for an electric company that fails to meet the applicable service quality and reliability standards, require the electric company to file a corrective action plan that details specific actions the company will take to meet the standards.</text> </level> </level> <level label="2"> <text>The regulations adopted under subsection (d) of this section may include a separate reliability standard for each electric company in order to account for system reliability differentiating factors, including:</text> <level label="i"> <text>system design;</text> </level> <level label="ii"> <text>existing infrastructure;</text> </level> <level label="iii"> <text>customer density; and</text> </level> <level label="iv"> <text>geography.</text> </level> </level> <level label="3"> <text>In adopting the regulations required under subsection (d) of this section, the Commission shall:</text> <level label="i"> <text>consider applicable standards of the Institute of Electrical and Electronics Engineers;</text> </level> <level label="ii"> <text>ensure that the service quality and reliability standards are cost–effective; and</text> </level> <level label="iii"> <text>with respect to standards relating to vegetation management, consider:</text> <level label="1"> <text>limitations on an electric company’s right to access private property; and</text> </level> <level label="2"> <text>customer acceptance of vegetation management initiatives.</text> </level> </level> </level> <level label="4"> <text>A county or municipal corporation may not adopt or enforce a local law, rule, or regulation or take any other action that interferes with, or materially increases the cost of the work of an electric company toward, compliance with the vegetation management standards adopted under subsection (d) of this section.</text> </level> </level> <level label="f"> <level label="1"> <text>On or before September 1 of each year, the Commission shall determine whether each electric company has met the service quality and reliability standards adopted by the Commission for that electric company under subsection (d) of this section and under § 7–213.1(e) of this subtitle.</text> </level> <level label="2"> <level label="i"> <text>This paragraph does not apply to electric cooperatives.</text> </level> <level label="ii"> <text>The Commission shall take appropriate corrective action against an electric company that fails to meet any or all of the applicable service quality and reliability standards, including the imposition of appropriate civil penalties for noncompliance as provided in § 13–201 of this article.</text> </level> <level label="iii"> <text>A civil penalty assessed under § 13–201 of this article for a violation of the service quality and reliability standards under this section shall be paid into the Fund.</text> </level> <level label="iv"> <text>An electric company may not recover the cost of any civil penalty paid under this section from ratepayers.</text> </level> </level> </level> <level label="g"> <level label="1"> <text>On or before April 1 of each year, each electric company shall submit to the Commission an annual performance report that summarizes the actual electric service reliability results for the preceding year.</text> </level> <level label="2"> <text>The annual performance report shall include:</text> <level label="i"> <text>the electric company’s average 3–year performance results;</text> </level> <level label="ii"> <text>actual year–end performance measure results;</text> </level> <level label="iii"> <text>an assessment of the results and effectiveness of the reliability objectives, planned actions and projects, programs, and load studies in achieving an acceptable reliability level; and</text> </level> <level label="iv"> <text>annual information that the Commission determines necessary to assess the electric company’s efforts to maintain reliable electric service to all customers in the electric company’s service territory, including:</text> <level label="1"> <text>current year expenditures, labor resource hours, and progress measures for each capital and maintenance program designed to support the maintenance of reliable electric service;</text> </level> <level label="2"> <text>the number of outages by outage type;</text> </level> <level label="3"> <text>the number of outages by outage cause;</text> </level> <level label="4"> <text>the total number of customers that experienced an outage;</text> </level> <level label="5"> <text>the total customer minutes of outage time; and</text> </level> <level label="6"> <text>to the extent practicable, a breakdown, by the number of days each customer was without electric service, of the number of customers that experienced an outage.</text> </level> </level> </level> <level label="3"> <text>At the request of an electric company, the Commission shall hold a hearing to discuss the annual performance report of the electric company.</text> </level> </level> <level label="h"> <text>This section may not be construed to limit the Commission’s authority to adopt and enforce engineering and safety standards for electric companies.</text> </level> <level label="i"> <text>The Commission and each electric company assessed a penalty for a violation of service quality and reliability standards under this section shall establish priorities for targeting remediation efforts to improve electric service quality and reliability for the worst performing feeder lines and other distribution lines and equipment that shall be paid for, in whole or in part, using the Fund, as available and in accordance with subsection (j) of this section.</text> </level> <level label="j"> <level label="1"> <text>There is an Electric Reliability Remediation Fund in the Commission.</text> </level> <level label="2"> <text>The purpose of the Fund is to provide resources to target remediation efforts to improve electric service quality and reliability for the worst performing electric distribution lines in the State.</text> </level> <level label="3"> <text>The Commission shall administer the Fund.</text> </level> <level label="4"> <level label="i"> <text>The Fund is a special, nonlapsing fund that is not subject to reversion under § 7–302 of the State Finance and Procurement Article.</text> </level> <level label="ii"> <text>The State Treasurer shall hold the Fund separately, and the Comptroller shall account for the Fund.</text> </level> </level> <level label="5"> <text>The Fund consists of:</text> <level label="i"> <text>revenue distributed to the Fund under § 13–201(e)(2) of this article for a violation of this section;</text> </level> <level label="ii"> <text>money appropriated in the State budget to the Fund; and</text> </level> <level label="iii"> <text>any other money from any other source accepted for the benefit of the Fund.</text> </level> </level> <level label="6"> <level label="i"> <text>The Fund may be used only for eligible reliability measures.</text> </level> <level label="ii"> <text>The civil penalties collected from an electric company:</text> <level label="1"> <text>may be used only for eligible reliability measures and projects in the service territory of that electric company; but</text> </level> <level label="2"> <text>may not replace or substitute for money already budgeted for or spent on any project, including an otherwise eligible reliability measure, that the electric company is required to implement under this section or any other law.</text> </level> </level> </level> <level label="7"> <level label="i"> <text>The State Treasurer shall invest the money of the Fund in the same manner as other State money may be invested.</text> </level> <level label="ii"> <text>Any investment earnings of the Fund shall be credited to the General Fund of the State.</text> </level> </level> </level> </section> <section article="gpu" article_name="Public Utilities" number="7-213.1" title_number="7" title_name="Gas, Electric, and Water Companies" subtitle_number="2" subtitle_name="Electric Generation Facility Planning"> <level label="a"> <text>In this section, “special medical needs facility” includes:</text> <level label="1"> <text>an assisted living facility as defined in § 19–1801 of the Health – General Article;</text> </level> <level label="2"> <text>a congregate housing services program under Title 10, Subtitle 2 of the Human Services Article;</text> </level> <level label="3"> <text>a hospice facility as defined in § 19–901 of the Health – General Article;</text> </level> <level label="4"> <text>a hospital as defined in § 19–301 of the Health – General Article or a similar institution;</text> </level> <level label="5"> <text>a nursing home as defined in § 19–1401 of the Health – General Article; or</text> </level> <level label="6"> <text>any other type of facility that the Commission designates in regulation as a special medical needs facility.</text> </level> </level> <level label="b"> <text>The purpose of this section is to:</text> <level label="1"> <text>further the service quality and reliability goals under § 7–213 of this subtitle as they relate to special medical needs facilities; and</text> </level> <level label="2"> <text>encourage the reliable delivery of service to special medical needs facilities.</text> </level> </level> <level label="c"> <text>The Secretary of Health shall:</text> <level label="1"> <text>on or before January 1 of each year, establish and provide a list of special medical needs facilities, including the licensed capacity of each facility, to each electric company for its service territory;</text> </level> <level label="2"> <text>post the list required under item (1) of this subsection on the website of the Maryland Department of Health; and</text> </level> <level label="3"> <text>establish a procedure to allow a special medical needs facility to remove its information from the list established under item (1) of this subsection.</text> </level> </level> <level label="d"> <text>On or before April 1 of each year, an electric company shall submit to the Commission as part of the electric company’s annual performance report under § 7–213(g) of this subtitle:</text> <level label="i"> <text>a list of special medical needs facilities that are served by protective devices that activated five or more times during the reporting period, resulting in a power outage;</text> </level> <level label="ii"> <text>a list of special medical needs facilities that experienced a service interruption that:</text> <level label="1"> <text>exceeded 4 consecutive hours during the reporting period; and</text> </level> <level label="2"> <text>was reported to or was otherwise known to the electric company;</text> </level> </level> <level label="iii"> <text>a list of special medical needs facilities that are served by the 3% of feeders assigned to an electric company’s service territory in the State that are identified by the electric company as having the poorest reliability during the reporting period; and</text> </level> <level label="iv"> <text>a description of the electric company’s performance in assessing and acting to remediate, and future plans and proposals to improve, the reliability of feeders and protective devices identified under this subsection.</text> </level> </level> <level label="e"> <text>This section does not prohibit the Commission from taking the corrective action authorized in § 7–213(f)(2) of this subtitle against an electric company that fails to meet any or all of the applicable standards.</text> </level> </section> <section article="gpu" article_name="Public Utilities" number="7-214" title_number="7" title_name="Gas, Electric, and Water Companies" subtitle_number="2" subtitle_name="Electric Generation Facility Planning"> <level label="a"> <level label="1"> <text>In this section the following words have the meanings indicated.</text> </level> <level label="2"> <text>“Contact voltage” means a voltage condition that may result in an object or surface being inadvertently energized.</text> </level> <level label="3"> <text>“Contact voltage risk zone” or “CVRZ” means the portions of each electric company’s service territory that:</text> <level label="i"> <text>are served by underground electric distribution plant; and</text> </level> <level label="ii"> <text>have substantial pedestrian traffic or population density, whether permanent, seasonal, or varying by time of day.</text> </level> </level> <level label="4"> <text>“Contact voltage survey” means a survey performed by an electric company to detect contact voltage consistent with the electric company’s voltage survey plan.</text> </level> <level label="5"> <level label="i"> <text>“Electric distribution plant” means all electric company plant used to distribute electricity to its customers.</text> </level> <level label="ii"> <text>“Electric distribution plant” includes covers and protective structures.</text> </level> <level label="iii"> <text>“Electric distribution plant” does not include customer meters and meter enclosures.</text> </level> </level> <level label="6"> <text>“Voltage survey plan” means a plan, submitted by an electric company and approved by the Commission, that governs the electric company’s contact voltage detection and testing equipment and voltage detection and testing procedures to be used when conducting contact voltage surveys.</text> </level> </level> <level label="b"> <level label="1"> <text>On or before September 1, 2012, each electric company shall file with the Commission for approval:</text> <level label="i"> <text>a list and location map for all CVRZs within its service territory, if applicable; or</text> </level> <level label="ii"> <text>if no CVRZs are designated in its service territory, a voltage survey plan.</text> </level> </level> <level label="2"> <text>Within 30 days after the Commission approves a CVRZ within an electric company’s service territory, the electric company shall file its voltage survey plan for Commission approval.</text> </level> <level label="3"> <text>On Commission approval of its voltage survey plan, each electric company shall conduct:</text> <level label="i"> <text>an initial contact voltage survey of each CVRZ within 1 year after the Commission approves an electric company’s voltage survey plan; and</text> </level> <level label="ii"> <text>subsequent surveys of each CVRZ as set forth in its voltage survey plan.</text> </level> </level> <level label="4"> <text>Each electric company shall conduct an initial and each subsequent contact voltage survey within each CVRZ of all objects and surfaces that are:</text> <level label="i"> <text>publicly accessible;</text> </level> <level label="ii"> <text>capable of conducting electricity; and</text> </level> <level label="iii"> <level label="1"> <text>electric distribution plant;</text> </level> <level label="2"> <text>streetlights owned or maintained by the electric company;</text> </level> <level label="3"> <text>streetlights and traffic signals owned by a municipal corporation or other unit of government, with the consent of the appropriate authority; and</text> </level> <level label="4"> <text>public parks and playgrounds, with the consent of the appropriate authority.</text> </level> </level> </level> <level label="5"> <level label="i"> <text>For areas in each electric company’s service territory not located in a CVRZ, except for wooden poles, the electric company shall conduct a contact voltage survey on all publicly accessible electric distribution plant and publicly accessible streetlights that the electric company owns or maintains that are capable of conducting electricity:</text> <level label="1"> <text>within 3 years after the initial approval of the voltage survey plan; and</text> </level> <level label="2"> <text>subsequently as set forth in its voltage survey plan.</text> </level> </level> <level label="ii"> <text>An electric company shall test each streetlight for contact voltage after dark or when the light is illuminated.</text> </level> </level> <level label="6"> <text>At least 60 days before implementing a material change to a voltage survey plan, an electric company shall file an amended voltage survey plan for Commission approval.</text> </level> <level label="7"> <text>The Commission may modify the frequency or scope of any contact voltage survey requirement on a showing of good cause.</text> </level> </level> <level label="c"> <level label="1"> <text>Each electric company shall include in its voltage survey plan all equipment used for detecting contact voltage.</text> </level> <level label="2"> <level label="i"> <text>The type of each equipment must be certified by an independent test laboratory as being able to reliably detect voltages of 6 to 600 volts.</text> </level> <level label="ii"> <text>Each electric company shall include the certification when filing the voltage survey plan.</text> </level> </level> </level> <level label="d"> <level label="1"> <text>Each electric company shall confirm and document all contact voltage detected in its contact voltage survey using a voltmeter and a 500 ohm shunt resistor.</text> </level> <level label="2"> <text>Until a potential contact voltage condition can be confirmed under paragraph (1) of this subsection, each electric company shall make an area safe after detecting a potential contact voltage condition during its contact voltage survey.</text> </level> <level label="3"> <text>If an electric company detects a contact voltage measurement under paragraph (1) of this subsection that is at least 1 volt of alternating current, the electric company shall:</text> <level label="i"> <text>perform a contact voltage survey on all objects and surfaces that are capable of conducting electricity and are publicly accessible within at least 30 feet of the location of the measured contact voltage;</text> </level> <level label="ii"> <text>when electric distribution plant or a street light that the electric company owns or maintains is indicating contact voltage:</text> <level label="1"> <text>immediately and continuously make the area safe; and</text> </level> <level label="2"> <text>use best efforts to make a permanent repair to mitigate the contact voltage as soon as possible, but not later than 45 days, unless extraordinary circumstances exist and the area continues to be made safe through a temporary measure to mitigate the contact voltage;</text> </level> </level> <level label="iii"> <text>when property that is not owned by the electric company is indicating contact voltage, immediately use best efforts to:</text> <level label="1"> <text>make the area safe; and</text> </level> <level label="2"> <text>notify the customer or responsible person associated with the premises or customer–owned facility of the unsafe condition and the need for the customer to make a permanent repair to mitigate contact voltage; and</text> </level> </level> <level label="iv"> <text>maintain written records of its actions to make the area safe and mitigate the contact voltage.</text> </level> </level> </level> <level label="e"> <level label="1"> <text>On or before April 1 of each year, each electric company shall file a compliance report with the Commission:</text> <level label="i"> <text>describing the results of its contact voltage surveys; and</text> </level> <level label="ii"> <text>summarizing each known contact voltage electric shock and each contact voltage electric shock complaint received from a member of the public, whether the shock affected an individual or an animal.</text> </level> </level> <level label="2"> <text>The Commission shall approve the form of the report.</text> </level> </level> <level label="f"> <text>The Commission may impose a civil penalty under this division for a violation of this subsection.</text> </level> <level label="g"> <text>The Commission may, in its discretion, through order or regulation:</text> <level label="1"> <text>waive or modify any provision of this section; or</text> </level> <level label="2"> <text>impose additional requirements as circumstances require.</text> </level> </level> </section> <section article="gpu" article_name="Public Utilities" number="7-215" title_number="7" title_name="Gas, Electric, and Water Companies" subtitle_number="2" subtitle_name="Electric Generation Facility Planning"> <level label="a"> <text>This section applies to a solar electric generating facility located in the State that:</text> <level label="1"> <text>has the capacity to produce more than 2 megawatts of electricity; and</text> </level> <level label="2"> <text>is designed to produce electricity for sale on the wholesale market.</text> </level> </level> <level label="b"> <level label="1"> <text>Not later than 30 days after selling or otherwise transferring ownership of a solar electric generating facility the owner of the facility shall provide notice of the sale or transfer to:</text> <level label="i"> <text>the county in which the facility is located; and</text> </level> <level label="ii"> <text>the Commission.</text> </level> </level> <level label="2"> <text>The notice under this section shall include the name, address, phone number, and e–mail address of the new owner.</text> </level> </level> </section> <section article="gpu" article_name="Public Utilities" number="7-216" title_number="7" title_name="Gas, Electric, and Water Companies" subtitle_number="2" subtitle_name="Electric Generation Facility Planning"> <level label="a"> <level label="1"> <text>In this section the following words have the meanings indicated.</text> </level> <level label="2"> <level label="i"> <text>“Energy storage device” means a resource capable of absorbing electrical energy, storing it for a period of time, and delivering the energy for use at a later time as needed, regardless of where the resource is located on the electric system.</text> </level> <level label="ii"> <text>“Energy storage device” includes all types of electric storage technologies, regardless of their size, storage medium, or operational purpose, including:</text> <level label="1"> <text>thermal storage;</text> </level> <level label="2"> <text>electrochemical storage;</text> </level> <level label="3"> <text>thermo–mechanical storage; and</text> </level> <level label="4"> <text>hydrogen–based storage.</text> </level> </level> </level> <level label="3"> <text>“Investor–owned electric company” means an electric company that is not a municipal electric utility or an electric cooperative.</text> </level> </level> <level label="b"> <level label="1"> <text>The Commission shall establish an Energy Storage Pilot Program.</text> </level> <level label="2"> <text>The cumulative size of the pilot projects under the program shall be between 5 and 10 megawatts, with a minimum of 15 megawatt–hours.</text> </level> </level> <level label="c"> <text>The Commission shall require each investor–owned electric company to solicit offers to develop energy storage projects for each of the following commercial and regulatory models:</text> <level label="1"> <text>a “utility–only” model under which the electric company would own the project, control the project for grid reliability, and operate the project in wholesale markets or other applications when not providing grid services;</text> </level> <level label="2"> <text>a “utility and third–party” model under which the electric company would own the project and control the project for grid reliability, and a third party would operate the project in wholesale markets or other applications when the project is not providing grid services;</text> </level> <level label="3"> <text>a “third–party ownership” model under which the electric company would:</text> <level label="i"> <text>contract with a project owned by a third party for grid reliability; and</text> </level> <level label="ii"> <text>allow the third party to operate the project in wholesale markets or other applications when the project is not providing grid services; and</text> </level> </level> <level label="4"> <text>a “virtual power plant” model under which:</text> <level label="i"> <text>the electric company would aggregate or use a third–party aggregator to receive grid services from distributed energy storage projects owned by customers or a third party; and</text> </level> <level label="ii"> <text>the projects would be used by the customers or third party for other applications when the projects are not providing grid services.</text> </level> </level> </level> <level label="d"> <level label="1"> <text>Each investor–owned electric company shall submit applications for Commission approval to deploy energy storage projects from at least two of the models described under subsection (c) of this section, one of which must be from a model described in subsection (c)(3) or (4) of this section.</text> </level> <level label="2"> <text>A proposed project must be able to meet reasonably the program’s timelines and data collection requirements.</text> </level> <level label="3"> <text>An investor–owned electric company shall give priority to projects that directly defer or replace an existing or anticipated distribution need.</text> </level> <level label="4"> <text>An investor–owned electric company may propose a project that does not directly defer or replace an existing or anticipated distribution need if the project includes grid benefits, ratepayer benefits, or otherwise helps meet the State’s policy goals.</text> </level> <level label="5"> <text>An investor–owned electric company shall describe in the company’s application whether a project demonstrates an opportunity to reduce system costs.</text> </level> </level> <level label="e"> <text>An application under subsection (d) of this section shall include information concerning:</text> <level label="1"> <text>best estimates of costs and savings for the project, including:</text> <level label="i"> <text>estimated permitting and interconnection costs;</text> </level> <level label="ii"> <text>an approximation of the potential benefits, including cost savings;</text> </level> <level label="iii"> <text>an estimate of funds expected to be received from wholesale market transactions;</text> </level> <level label="iv"> <text>an estimate of the value of any distribution investment deferral or replacement due to the project, such as the present value of the costs avoided by installing the storage system;</text> </level> <level label="v"> <text>estimates of other societal benefits achieved by the project, such as incremental reliability and resiliency, greenhouse gas emission reductions, and learning benefits; and</text> </level> <level label="vi"> <text>the estimated impact of each project on the investor–owned electric company’s rates for each class of customer;</text> </level> </level> <level label="2"> <text>project location;</text> </level> <level label="3"> <text>project size in watts and duration in watt–hours;</text> </level> <level label="4"> <text>primary and secondary applications;</text> </level> <level label="5"> <text>the business model selected for the project under subsection (c) of this section;</text> </level> <level label="6"> <text>the project developer or engineering, procurement, and construction firm selected for the project;</text> </level> <level label="7"> <text>the type of energy storage technology;</text> </level> <level label="8"> <text>the process the investor–owned electric company used to solicit offers for the project, including feedback on models not selected and an explanation for why the chosen model was selected; and</text> </level> <level label="9"> <text>any other information required by the Commission.</text> </level> </level> <level label="f"> <text>For purposes of the pilot program only, the Commission may determine how to address cost recovery for the models described under subsection (c)(3) and (4) of this section.</text> </level> <level label="g"> <text>For purposes of the pilot program only, the Commission may, on a project–by–project basis, allow:</text> <level label="1"> <text>an investor–owned electric company to own or operate an energy storage device;</text> </level> <level label="2"> <text>an energy storage device owned or operated by an investor–owned electric company to participate in all available PJM wholesale revenue markets in order to realize benefits for investor–owned electric company customers;</text> </level> <level label="3"> <text>full and timely cost recovery by the investor–owned electric company, at the rate of return authorized by the Commission in the most recent base rate proceeding for the investor–owned electric company, taking into account any use of an asset that may not be included in base rates;</text> </level> <level label="4"> <text>an investor–owned electric company to coordinate the use of an energy storage device;</text> </level> <level label="5"> <text>an investor–owned electric company to use fully until the end of the device’s useful life, an energy storage device owned or operated by the investor–owned electric company; and</text> </level> <level label="6"> <text>an investor–owned electric company to offer rebates or other incentives for energy storage devices behind or in front of the meter that can be configured to provide temporary backup power to a customer.</text> </level> </level> <level label="h"> <level label="1"> <text>The pilot program shall begin on or before June 1, 2019.</text> </level> <level label="2"> <level label="i"> <text>On or before April 15, 2020, each investor–owned electric company shall solicit proposals and apply for Commission approval for the first energy storage project required under subsection (d)(1) of this section.</text> </level> <level label="ii"> <text>On or before September 15, 2020, each investor–owned electric company shall solicit proposals and apply for Commission approval for the second energy storage project required under subsection (d)(1) of this section.</text> </level> </level> <level label="3"> <text>On or before April 15, 2021:</text> <level label="i"> <text>the Commission shall determine which projects to approve; and</text> </level> <level label="ii"> <text>each investor–owned electric company shall negotiate contracts to implement projects.</text> </level> </level> <level label="4"> <level label="i"> <text>The Commission shall solicit comments from the Maryland Energy Administration, the Office of People’s Counsel, and other stakeholders and hold a hearing on each application submitted under subsection (d) of this section.</text> </level> <level label="ii"> <text>The Commission shall approve, approve with modifications, or reject an application submitted under subsection (d) of this section after:</text> <level label="1"> <text>receiving comments from the Maryland Energy Administration, the Office of People’s Counsel, and other stakeholders and holding a hearing;</text> </level> <level label="2"> <text>considering the projected costs and benefits of the projects proposed for inclusion in the pilot program; and</text> </level> <level label="3"> <text>determining whether the project is in the public and ratepayer interest.</text> </level> </level> </level> <level label="5"> <level label="i"> <text>If the Commission rejects an application, within 3 months after receiving notice of the rejection of an application, the investor–owned electric company shall submit an amended application for Commission approval.</text> </level> <level label="ii"> <text>The Commission shall approve, approve with modifications, or reject an amended application within 3 months after receipt of the amended application.</text> </level> </level> <level label="6"> <level label="i"> <text>Except as provided in subparagraph (ii) of this paragraph, on or before February 28, 2022, all approved projects shall become operational.</text> </level> <level label="ii"> <text>The Commission may, for good cause shown, grant an extension from the deadline established in subparagraph (i) of this paragraph for unanticipated project development delays.</text> </level> <level label="iii"> <text>The Commission may establish additional interim deadlines.</text> </level> </level> <level label="7"> <level label="i"> <text>On or before July 1 of 2023, 2024, and 2025, an investor–owned electric company shall submit to the Commission, the Maryland Energy Administration, and the Office of People’s Counsel information or data concerning:</text> <level label="1"> <text>estimated project costs;</text> </level> <level label="2"> <text>final project costs;</text> </level> <level label="3"> <text>the number of days necessary to achieve project interconnection;</text> </level> <level label="4"> <text>the total cost of project interconnection;</text> </level> <level label="5"> <text>the number of days necessary to achieve project permitting;</text> </level> <level label="6"> <text>the total cost of project permitting;</text> </level> <level label="7"> <text>the contractual or committed commercial operation date;</text> </level> <level label="8"> <text>the actual commercial operation date;</text> </level> <level label="9"> <text>the name and address of the project developer;</text> </level> <level label="10"> <text>the location and address of the project;</text> </level> <level label="11"> <text>the size of the energy storage project in watts;</text> </level> <level label="12"> <text>the duration of the energy storage project in watt–hours;</text> </level> <level label="13"> <text>the type of energy storage technology;</text> </level> <level label="14"> <text>the identities of any project owners or lessors;</text> </level> <level label="15"> <text>any project financing methods;</text> </level> <level label="16"> <text>the identity of any entity that provides financing for the project;</text> </level> <level label="17"> <text>the length of any project contract;</text> </level> <level label="18"> <text>any inverters used for the project, including the type and manufacturer;</text> </level> <level label="19"> <text>any manufacturer warranty, including its duration;</text> </level> <level label="20"> <text>any developer warranty, including its duration;</text> </level> <level label="21"> <text>any technology with which the project is paired;</text> </level> <level label="22"> <text>how meters and inverters associated with the project are configured;</text> </level> <level label="23"> <text>any system integrator associated with the project;</text> </level> <level label="24"> <text>project safety, including battery type and chemistry;</text> </level> <level label="25"> <text>any energy management system associated with the project;</text> </level> <level label="26"> <text>any energy storage power conversion system associated with the project;</text> </level> <level label="27"> <text>the business model selected for the project under subsection (c) of this section;</text> </level> <level label="28"> <text>the cost recovery mechanism for the project;</text> </level> <level label="29"> <text>the rate of return applied to the project;</text> </level> <level label="30"> <text>for a virtual power plant project under subsection (c)(4) of this section, the number and type of customers participating;</text> </level> <level label="31"> <text>for a virtual power plant project under subsection (c)(4) of this section, the identity of the aggregator;</text> </level> <level label="32"> <text>operational challenges related to multiple stakeholder or third–party use of the storage asset;</text> </level> <level label="33"> <text>the types of revenue expected from the project, including any wholesale market revenues;</text> </level> <level label="34"> <text>the types of revenue provided by the project, including any wholesale market revenues;</text> </level> <level label="35"> <text>the distribution need the project addressed;</text> </level> <level label="36"> <text>the amount of time the project is expected to defer the need for an alternative investment;</text> </level> <level label="37"> <text>any value of optionality associated with the amount of time the project is expected to defer the need for an alternative investment;</text> </level> <level label="38"> <text>the expected load projection before the project was installed;</text> </level> <level label="39"> <text>enhanced grid reliability as a result of the project;</text> </level> <level label="40"> <text>for a utility and third–party project under subsection (c)(2) of this section, the dollar value of the lease payments from the third party to the utility;</text> </level> <level label="41"> <text>for a utility and third–party project under subsection (c)(2) of this section, the duration of the lease agreement between the third party and the utility;</text> </level> <level label="42"> <text>any other identified benefits, including resiliency and social benefits;</text> </level> <level label="43"> <text>expected and actual storage system cycling;</text> </level> <level label="44"> <text>the project’s success in switching between applications without challenges or problems;</text> </level> <level label="45"> <text>occasions when the project was unable to serve an application;</text> </level> <level label="46"> <text>any project delays and the causes for the delays;</text> </level> <level label="47"> <text>any emissions reductions expected as a result of the project; and</text> </level> <level label="48"> <text>any other information required by the Commission.</text> </level> </level> <level label="ii"> <text>Subject to subparagraph (iv) of this paragraph, an investor–owned electric company shall make all data provided under subparagraph (i) of this paragraph that is not proprietary or confidential available to the public.</text> </level> <level label="iii"> <text>To the extent possible, any annualized data provided under subparagraph (i) of this paragraph shall be seasonally adjusted.</text> </level> <level label="iv"> <text>After receiving comments from all parties, the Commission shall determine:</text> <level label="1"> <text>which data related to the projects shall be made available only to the technical staff of the Commission and the Office of People’s Counsel; and</text> </level> <level label="2"> <text>which data related to the projects shall be made available to the public.</text> </level> </level> </level> </level> <level label="i"> <text>On or before April 1, 2026, if an investor–owned electric company determines that additional time to gather data would provide additional opportunities for learning and justify continuing the pilot program, the Commission may extend the pilot program and delay by a corresponding amount of time the evaluation and report required under subsection (k) of this section.</text> </level> <level label="j"> <text>On or before July 1, 2024, in accordance with § 2–1257 of the State Government Article, the Commission shall submit an interim report to the General Assembly that provides an initial evaluation of the projects approved under this section based on:</text> <level label="1"> <text>project costs;</text> </level> <level label="2"> <text>value streams;</text> </level> <level label="3"> <text>any reduction in system costs;</text> </level> <level label="4"> <text>any issues encountered in the early implementation phase; and</text> </level> <level label="5"> <text>an analysis of any funds generated from the whole market.</text> </level> </level> <level label="k"> <level label="1"> <text>Except as provided in subsection (i) of this section, on or before July 1, 2026, in consultation with the Maryland Energy Administration and the Office of People’s Counsel, the Commission shall evaluate the projects approved under this section based on:</text> <level label="i"> <text>the overall cost of the project;</text> </level> <level label="ii"> <text>whether the project was optimized through multiple applications;</text> </level> <level label="iii"> <text>whether the project managed to capture different value streams;</text> </level> <level label="iv"> <text>whether the project reduced system costs;</text> </level> <level label="v"> <text>whether the project deferred or replaced entirely a traditional investment on the distribution system, and any value of such a deferral or replacement;</text> </level> <level label="vi"> <text>an analysis of any funds generated from the wholesale market;</text> </level> <level label="vii"> <text>other benefits provided as a result of the project;</text> </level> <level label="viii"> <text>issues that the project encountered in implementation; and</text> </level> <level label="ix"> <text>whether the project altered the quality or availability of electricity supply.</text> </level> </level> <level label="2"> <text>On or before December 31, 2026, the Commission shall report, in accordance with § 2–1257 of the State Government Article, to the General Assembly on its findings under paragraph (1) of this subsection and its recommendations for the continued development of energy storage in the State.</text> </level> </level> <level label="l"> <text>The pilot program may not preclude any other investment by a public service company in energy storage.</text> </level> <level label="m"> <level label="1"> <text>Unless the Commission extends the pilot program in accordance with subsection (i) of this section, the pilot program shall terminate on December 31, 2026.</text> </level> <level label="2"> <text>The termination of the pilot program may not affect the cost recovery by an investor–owned electric company for the lifetime of an energy storage project.</text> </level> </level> </section> <section article="gpu" article_name="Public Utilities" number="7-216.1" title_number="7" title_name="Gas, Electric, and Water Companies" subtitle_number="2" subtitle_name="Electric Generation Facility Planning"> <level label="a"> <level label="1"> <text>In this section the following words have the meanings indicated.</text> </level> <level label="2"> <text>“Delivery year” has the meaning stated in the PJM Interconnection glossary.</text> </level> <level label="3"> <text>“Energy storage device” has the meaning stated in § 7–216 of this subtitle.</text> </level> <level label="4"> <text>“Investor–owned electric company” has the meaning stated in § 7–216 of this subtitle.</text> </level> <level label="5"> <text>“Program” means the Maryland Energy Storage Program.</text> </level> </level> <level label="b"> <level label="1"> <text>The Commission shall establish targets for the cost–effective deployment of new energy storage devices in the State with a goal of achieving:</text> <level label="i"> <text>750 megawatts of cumulative energy storage capacity by the end of delivery year 2027;</text> </level> <level label="ii"> <text>1,500 megawatts of cumulative energy storage capacity by the end of delivery year 2030; and</text> </level> <level label="iii"> <text>3,000 megawatts of cumulative energy storage capacity by the end of delivery year 2033.</text> </level> </level> <level label="2"> <text>If a target specified in paragraph (1) of this subsection cannot be met cost effectively, the target shall be reduced to the maximum cost–effective amount of energy storage, measured in megawatts, that can be deployed by the end of the delivery year for the target.</text> </level> </level> <level label="c"> <level label="1"> <text>The Commission shall establish the Maryland Energy Storage Program.</text> </level> <level label="2"> <text>The Program shall be implemented no later than July 1, 2025.</text> </level> <level label="3"> <text>The Program shall include competitive procurement mechanisms to reach a minimum of 3,000 megawatts of energy storage, or the maximum cost–effective amount of energy storage that can be deployed, by the end of delivery year 2033.</text> </level> <level label="4"> <text>The Program may include:</text> <level label="i"> <text>a system of energy storage credits and market–based incentives designed to:</text> <level label="1"> <text>develop a robust energy storage market in the State; and</text> </level> <level label="2"> <text>deploy energy storage devices in a cost–effective manner;</text> </level> </level> <level label="ii"> <text>a requirement that investor–owned electric companies:</text> <level label="1"> <text>install or contract for energy storage devices; or</text> </level> <level label="2"> <text>contract for credits from an energy storage project under § 7–216 of this subtitle;</text> </level> </level> <level label="iii"> <text>a requirement that Program participants make reasonable efforts to apply for all applicable State and federal grants, rebates, tax credits, loan guarantees, and other similar benefits as the benefits become available; or</text> </level> <level label="iv"> <text>any other mechanism or policy that the Commission determines is appropriate to achieve the goal of a robust, cost–effective energy storage system in the State.</text> </level> </level> </level> <level label="d"> <text>On or before November 1 each year, the Commission shall report to the General Assembly, in accordance with § 2–1257 of the State Government Article, on the status of the Program, including:</text> <level label="1"> <text>the capacity of operational energy storage devices in the State that is being counted toward the capacity goal established under subsection (c)(3) of this section, disaggregated by:</text> <level label="i"> <text>electric company service territory;</text> </level> <level label="ii"> <text>energy storage device capacity;</text> </level> <level label="iii"> <text>front–of–meter transmission–level storage;</text> </level> <level label="iv"> <text>front–of–meter distribution–level storage;</text> </level> <level label="v"> <text>behind–the–meter storage; and</text> </level> <level label="vi"> <text>any other relevant category, as determined by the Commission;</text> </level> </level> <level label="2"> <text>whether the capacity goal established under subsection (c)(3) of this section should be altered;</text> </level> <level label="3"> <text>barriers to achieving the goals identified under this section; and</text> </level> <level label="4"> <text>any other information the Commission considers pertinent.</text> </level> </level> </section> <section article="gpu" article_name="Public Utilities" number="7-216.2" title_number="7" title_name="Gas, Electric, and Water Companies" subtitle_number="2" subtitle_name="Electric Generation Facility Planning"> <level label="a"> <text>In this section, “energy storage device” has the meaning stated in § 7–216 of this subtitle.</text> </level> <level label="b"> <level label="1"> <text>The General Assembly finds and declares that the State has a goal of reaching at least 150 megawatts of distribution–connected front–of–the–meter energy storage devices.</text> </level> <level label="2"> <text>On or before July 1, 2025, and on or before July 1, 2026, the Commission shall notify each investor–owned electric company of its proportion of the goal established under this subsection, based on:</text> <level label="i"> <text>the electric company’s service load; or</text> </level> <level label="ii"> <text>other criteria established by the Commission.</text> </level> </level> </level> <level label="c"> <level label="1"> <text>On or before November 1, 2025, the Commission shall require each investor–owned electric company to submit a plan to achieve up to one–third of the proportion of distribution–connected front–of–the–meter energy storage devices necessary to reach the electric company’s apportionment of the goal stated in subsection (b) of this section.</text> </level> <level label="2"> <text>On or before November 1, 2026, the Commission shall require each investor–owned electric company to submit a plan for the balance of the proportion of distribution–connected front–of–the–meter energy storage devices necessary to reach the electric company’s apportionment of the goal stated in subsection (b) of this section.</text> </level> <level label="3"> <text>On or before May 1, 2026, for plans submitted in accordance with paragraph (1) of this subsection, and on or before May 1, 2027, for plans submitted in accordance with paragraph (2) of this subsection, the Commission shall:</text> <level label="i"> <text>evaluate each plan;</text> </level> <level label="ii"> <text>accept public comments on each plan; and</text> </level> <level label="iii"> <text>issue an order for each plan that:</text> <level label="1"> <text>approves the plan;</text> </level> <level label="2"> <text>approves the plan with modifications that the Commission considers necessary; or</text> </level> <level label="3"> <text>rejects the plan, with an explanation of the reasons for the rejection.</text> </level> </level> </level> <level label="4"> <text>The energy storage devices constructed or procured under each plan shall include a combination of devices owned by the investor–owned electric company and devices owned by a third party, with a goal of 30% of the devices being owned by a third party.</text> </level> <level label="5"> <level label="i"> <text>The energy storage devices that are constructed or procured under a plan submitted by November 1, 2025, shall be operational by November 1, 2027.</text> </level> <level label="ii"> <text>The energy storage devices that are constructed or procured under a plan submitted by November 1, 2026, shall be operational by November 1, 2028.</text> </level> <level label="iii"> <text>The Commission may extend a deadline under this paragraph for good cause.</text> </level> </level> </level> <level label="d"> <text>The Commission shall require each plan to demonstrate that the construction or procurement of each energy storage device:</text> <level label="1"> <text>is cost–effective in consideration of a cost–benefit analysis, including a demonstration of any:</text> <level label="i"> <text>avoided or delayed transmission, distribution, and generation costs; and</text> </level> <level label="ii"> <text>avoided emissions in the short term and projected emissions in the long term, measured using the social cost of carbon, as determined by the U.S. Environmental Protection Agency as of January 1, 2025;</text> </level> </level> <level label="2"> <text>can be completed within 18 months after the plan is approved; and</text> </level> <level label="3"> <text>complies with any other factors determined by the Commission.</text> </level> </level> <level label="e"> <level label="1"> <text>A developer of a third–party–owned energy storage device constructed in accordance with this section shall ensure that workers are paid not less than the prevailing wage rate determined under Title 17, Subtitle 2 of the State Finance and Procurement Article.</text> </level> <level label="2"> <text>An energy storage device constructed and owned by an electric company shall be constructed by:</text> <level label="i"> <text>employees of the electric company; or</text> </level> <level label="ii"> <text>contractors that shall ensure that workers constructing the energy storage device are paid not less than the prevailing wage rate determined under Title 17, Subtitle 2 of the State Finance and Procurement Article.</text> </level> </level> <level label="3"> <level label="i"> <text>An investor–owned electric company shall operate and maintain energy storage devices installed by the electric company in accordance with this section.</text> </level> <level label="ii"> <text>In performing the maintenance and operations required under subparagraph (i) of this paragraph, an investor–owned electric company shall meet with the employee bargaining unit’s labor representative and confer in good faith regarding the viability of:</text> <level label="1"> <text>allocating maintenance and operations work to current bargaining unit employees;</text> </level> <level label="2"> <text>training current bargaining unit employees to perform maintenance and operations work;</text> </level> <level label="3"> <text>hiring qualified individuals to perform maintenance and operations work;</text> </level> <level label="4"> <text>training newly hired individuals to perform maintenance and operations work; and</text> </level> <level label="5"> <text>maintaining and operating storage devices in accordance with paragraph (4) of this subsection.</text> </level> </level> </level> <level label="4"> <level label="i"> <text>Subject to subparagraph (ii) of this paragraph, an investor–owned electric company may contract any work under this section not conducted by the company’s employee bargaining unit to a qualified contractor.</text> </level> <level label="ii"> <text>An investor–owned electric company shall require a contractor or subcontractor on a project under this section to:</text> <level label="1"> <text>pay the area prevailing wage rate determined by the Commissioner of Labor and Industry, including wages and fringe benefits; and</text> </level> <level label="2"> <text>offer health care and retirement benefits to the employees working on the project.</text> </level> </level> </level> </level> <level label="f"> <level label="1"> <text>Each energy storage project constructed in accordance with this section shall include a proposed decommissioning plan.</text> </level> <level label="2"> <text>The proposed decommissioning plan shall include a plan to maximize the recycling or reuse of all qualifying components of each energy storage device.</text> </level> <level label="3"> <text>The owner or operator of an energy storage device may submit a revised recycling and reuse plan that incorporates emerging recycling and reuse opportunities up to 1 year before executing the decommissioning plan.</text> </level> </level> </section> <section article="gpu" article_name="Public Utilities" number="7-217" title_number="7" title_name="Gas, Electric, and Water Companies" subtitle_number="2" subtitle_name="Electric Generation Facility Planning"> <level label="a"> <level label="1"> <text>In this section the following words have the meanings indicated.</text> </level> <level label="2"> <text>“Electric school bus” means a school bus that is powered exclusively by an electric motor that draws its current from rechargeable storage batteries that are recharged with electricity from an electric vehicle charging station.</text> </level> <level label="3"> <text>“Electric school bus pilot program” means a pilot program conducted by an investor–owned electric company under this section.</text> </level> <level label="4"> <text>“Incremental administrative and operating costs” means the amount by which the cost of administering and operating an electric school bus program exceeds the cost of administering and operating a diesel school bus program.</text> </level> <level label="5"> <text>“Incremental costs of purchasing and deploying electric school buses” means the amount by which the costs of purchasing and deploying electric school buses exceed the costs of purchasing and deploying diesel school buses.</text> </level> <level label="6"> <text>“Interconnection equipment” means a group of components or an integrated system that connects an electric vehicle charging station with the distribution system of an investor–owned electric company.</text> </level> <level label="7"> <text>“Interconnection facilities” means facilities required by an investor–owned electric company to accommodate the interconnection of an electric vehicle charging station.</text> </level> <level label="8"> <text>“Participating school system” means a school system located within an investor–owned electric company’s service territory that:</text> <level label="i"> <text>participates in an electric school bus pilot program under an agreement between its school board and an investor–owned electric company; and</text> </level> <level label="ii"> <text>owns its school buses or contracts with another entity for school bus services.</text> </level> </level> <level label="9"> <text>“Program costs” means:</text> <level label="i"> <text>any costs to deploy appropriate electric school bus charging infrastructure that are incurred by an investor–owned electric company in implementing an electric school bus pilot program; and</text> </level> <level label="ii"> <text>rebates paid to a participating school system.</text> </level> </level> <level label="10"> <text>“Rebate” means an incentive provided by an investor–owned electric company to a participating school system that is equal to:</text> <level label="i"> <text>the demonstrable incremental costs of purchasing and deploying electric school buses to participating school systems; and</text> </level> <level label="ii"> <text>the incremental administrative and operating costs incurred by a participating school system in implementing its electric school bus pilot program.</text> </level> </level> </level> <level label="b"> <level label="1"> <text>There is an electric school bus pilot program.</text> </level> <level label="2"> <text>The electric school bus pilot program shall be implemented and administered by the Commission and shall operate as provided in this section.</text> </level> </level> <level label="c"> <text>An investor–owned electric company may apply to the Commission to implement an electric school bus pilot program if the pilot program is structured to:</text> <level label="1"> <text>commence on or before October 1, 2024;</text> </level> <level label="2"> <text>provide for the deployment of not fewer than 25 electric school buses;</text> </level> <level label="3"> <text>provide for electric school bus rebates to participating school systems;</text> </level> <level label="4"> <text>limit total rebates to $50,000,000;</text> </level> <level label="5"> <text>allow the investor–owned electric company to use the storage batteries of the electric school buses to access the stored electricity through vehicle–to–grid technology:</text> <level label="i"> <text>except as provided in item (6) of this subsection, without additional compensation to the school system for the electricity; and</text> </level> <level label="ii"> <text>at times when the participating school system determines that the school buses are not needed to transport students;</text> </level> </level> <level label="6"> <text>ensure that if the investor–owned utility uses electricity that a participating school system provides to charge an electric school bus battery, the investor–owned utility replaces that electricity at no cost to the participating school system;</text> </level> <level label="7"> <text>provide for the selection of school systems that apply to participate in the pilot program on the basis of appropriate factors determined by the investor–owned electric company with the approval of the Commission, including the locational benefits that the storage batteries of school buses may bring to the investor–owned electric company;</text> </level> <level label="8"> <text>consider, in determining the appropriate factors under item (7) of this subsection, the health and economic effects on low–income and minority communities;</text> </level> <level label="9"> <text>provide and install the interconnection equipment and interconnection facilities for electric vehicle charging stations;</text> </level> <level label="10"> <text>ensure each electric school bus is equipped with lap and shoulder belts in accordance with recommendations from the National Transportation Safety Board; and</text> </level> <level label="11"> <text>ensure the school board is provided with adequate training and expertise to operate ably electric school buses, electric vehicle charging stations, and associated infrastructure.</text> </level> </level> <level label="d"> <text>A participating school system shall:</text> <level label="1"> <text>when deploying electric school buses, consider criteria that benefit students who are eligible for free and reduced price meals; and</text> </level> <level label="2"> <text>before the delivery of electric school buses, develop a plan for training and retaining any school system employee affected by the electric school bus pilot program.</text> </level> </level> <level label="e"> <text>Subject to the Commission’s approval, an investor–owned electric company may recover all reasonable and prudent program costs incurred under an electric school bus pilot program through a mechanism that is reviewed and approved by the Commission.</text> </level> <level label="f"> <text>Subject to the Commission’s approval, an investor–owned electric company may establish a pilot tariff or rate to provide service to an electric school bus.</text> </level> <level label="g"> <text>An investor–owned electric company that applies to implement an electric school bus pilot program shall provide to the Commission any information, data, and analysis that the Commission requires.</text> </level> <level label="h"> <text>The Commission shall approve, deny, or approve with modifications an investor–owned electric company’s application to implement an electric school bus pilot program.</text> </level> <level label="i"> <level label="1"> <text>An investor–owned electric company that establishes an electric school bus pilot program authorized by this section shall, in consultation with each participating school system, by February 1, 2025, and each year thereafter for the duration of the pilot program, report on the status of the pilot program to the Governor, the Commission, and, in accordance with § 2–1257 of the State Government Article, the House Economic Matters Committee and the Senate Finance Committee.</text> </level> <level label="2"> <text>The report required under paragraph (1) of this subsection shall include:</text> <level label="i"> <text>an evaluation of the environmental and health benefits of the pilot program; and</text> </level> <level label="ii"> <text>the financial costs and benefits of implementing the pilot program to the participating school system and the investor–owned utility, including:</text> <level label="1"> <text>the deployment, operation, and maintenance of the electric school buses; and</text> </level> <level label="2"> <text>the use of vehicle–to–grid technology.</text> </level> </level> </level> </level> <level label="j"> <text>The initial duration of an electric school bus pilot program shall be at least 3 years and may not exceed 5 years.</text> </level> <level label="k"> <text>On the request of an investor–owned electric company, the Commission may authorize an expansion of the scope, deployment, program costs, and duration of the electric school bus pilot program.</text> </level> </section> <section article="gpu" article_name="Public Utilities" number="7-218" title_number="7" title_name="Gas, Electric, and Water Companies" subtitle_number="2" subtitle_name="Electric Generation Facility Planning"> <level label="a"> <level label="1"> <text>In this section the following words have the meanings indicated.</text> </level> <level label="2"> <text>“Agrivoltaics” has the meaning stated in § 7–306.2 of this title.</text> </level> <level label="3"> <text>“Brownfields site” has the meaning stated in § 7–207 of this subtitle.</text> </level> <level label="4"> <text>“Local jurisdiction” includes counties, municipal corporations, and other forms of local government.</text> </level> <level label="5"> <text>“Priority preservation area” means an area certified as a priority preservation area under § 2–518 of the Agriculture Article.</text> </level> <level label="6"> <level label="i"> <text>“Project area” means an area within which construction, materials and equipment storage, grading, landscaping, and related activities for a project may occur.</text> </level> <level label="ii"> <text>“Project area” includes one or more contiguous parcels or properties under the same ownership or lease agreement.</text> </level> </level> </level> <level label="b"> <text>This section applies only to a solar energy generating station that:</text> <level label="1"> <text>has the capacity to produce more than 1 megawatt of electricity as measured by the alternating current rating of the station’s inverter;</text> </level> <level label="2"> <level label="i"> <text>is designed to produce electricity for sale on the wholesale market;</text> </level> <level label="ii"> <text>is a community solar energy generating system under § 7–306.2 of this title; or</text> </level> <level label="iii"> <text>is part of aggregate net metering under § 7–306.3 of this title; and</text> </level> </level> <level label="3"> <text>is not located on a rooftop, carport, or brownfields site or behind the meter of a retail electric customer.</text> </level> </level> <level label="c"> <text>A person may not begin construction of a solar energy generating station unless:</text> <level label="1"> <text>the Commission or, for a solar energy generating station that has the capacity to produce not more than 2 megawatts of electricity as measured by the alternating current rating of the station’s inverter, the local jurisdiction verifies that the proposed construction meets all of the site requirements under subsection (f) of this section;</text> </level> <level label="2"> <text>for a solar energy generating station that has the capacity to produce more than 2 megawatts of electricity as measured by the alternating current rating of the station’s inverter:</text> <level label="i"> <text>a certificate of public convenience and necessity has been issued in accordance with § 7–207 of this subtitle;</text> </level> <level label="ii"> <text>a distributed generation certificate of public convenience and necessity has been issued in accordance with § 7–207.4 of this subtitle; or</text> </level> <level label="iii"> <text>the construction has been approved by the Commission in accordance with § 7–207.1 of this subtitle; and</text> </level> </level> <level label="3"> <text>the construction has received approval for all local permits required under § 7–207(h) of this subtitle.</text> </level> </level> <level label="d"> <level label="1"> <text>A person that submits an application for approval of the construction of a solar energy generating station in accordance with § 7–207, § 7–207.1, or § 7–207.4 of this subtitle shall include with the application written documentation or other evidence showing that the proposed construction meets the requirements under subsections (f) and (g) of this section.</text> </level> <level label="2"> <text>For a solar energy generating station that has the capacity to produce not more than 2 megawatts of electricity as measured by the alternating current rating of the station’s inverter, a person that submits a site development plan to a local jurisdiction shall include with the plan written documentation or other evidence showing that the proposed construction meets the requirements under subsections (f) and (g) of this section.</text> </level> </level> <level label="e"> <level label="1"> <text>When verifying whether the documentation provided under subsection (d) of this section meets the requirements under subsections (f) and (g) of this section, the Commission or local jurisdiction shall, if the proposed location of the solar energy generating station is in an area considered to be overburdened and underserved, as defined in § 1–701 of the Environment Article, require the person constructing the solar energy generating station to hold at least two public meetings in the community where the solar energy generating station is to be located to collect community feedback and provide opportunities to address community feedback.</text> </level> <level label="2"> <level label="i"> <text>Subject to subparagraph (ii) of this paragraph, the meetings required under paragraph (1) of this subsection shall be held:</text> <level label="1"> <text>in the county in which the proposed solar energy generating station is to be located; and</text> </level> <level label="2"> <text>within 10 miles of the proposed location of the solar energy generating station.</text> </level> </level> <level label="ii"> <text>If the owner of a proposed solar energy generating station cannot find a meeting location that meets the requirements of subparagraph (i) of this paragraph, the owner may select an alternative location that is as close as practicable to the location of the proposed solar energy generating station.</text> </level> </level> </level> <level label="f"> <level label="1"> <text>This subsection does not apply to agrivoltaics.</text> </level> <level label="2"> <text>Except as provided in paragraph (10) of this subsection, an owner of a proposed solar energy generating station:</text> <level label="i"> <text>shall provide a boundary of 150 feet between the solar energy generating station and the nearest wall of a residential dwelling;</text> </level> <level label="ii"> <text>shall provide a boundary of 100 feet between the solar energy generating station and all property lines, not including property lines that bisect the interior of a project area;</text> </level> <level label="iii"> <level label="1"> <text>shall provide nonbarbed wire fencing:</text> </level> <level label="A"> <text>only on the interior of a landscape buffer or immediately adjacent to a solar energy generating station;</text> </level> <level label="B"> <text>that is not more than 20 feet in height;</text> </level> <level label="C"> <text>that is only black or green vinyl wire mesh if the owner proposes to use chain link fencing; and</text> </level> <level label="D"> <text>that is not less than 50 feet away from the edge of any public road right–of–way; and</text> </level> <level label="2"> <text>may use barbed wire fencing around the substations or other critical infrastructure for protection of that infrastructure;</text> </level> </level> <level label="iv"> <text>shall provide for a landscaping buffer or vegetative screening in accordance with paragraph (4) of this subsection;</text> </level> <level label="v"> <text>except for equipment required for interconnection with electric system infrastructure, may not locate any solar array, ancillary equipment, or accessory buildings or facilities within a public road right–of–way;</text> </level> <level label="vi"> <level label="1"> <text>shall mitigate the visual impact of the solar energy generating station on a preservation area, rural legacy area, priority preservation area, public park, scenic river or byway, designated heritage area, or historic structure or site listed on or eligible for the National Register of Historic Places or relevant county register of historic places; and</text> </level> <level label="2"> <level label="A"> <text>for a solar energy generating station that has the capacity to produce more than 2 megawatts of electricity as measured by the alternating current of the station’s inverter, shall include in the application submitted under subsection (c)(2) of this section a viewshed analysis for any area, structure, or site specified in item 1 of this item; and</text> </level> </level> <level label="B"> <text>for a solar energy generating station that has the capacity to produce not more than 2 megawatts of electricity as measured by the alternating current of the station’s inverter, shall include in an application for a site development plan a viewshed analysis for any area, structure, or site specified in item 1 of this item; and</text> </level> </level> <level label="vii"> <text>shall provide notice of each proposed solar energy generating station to the emergency response services of each county in which any portion of the generating station is to be constructed, including a map of the proposed generating station and the proposed location of any solar collector or isolator switch.</text> </level> </level> <level label="3"> <text>A local jurisdiction may not require the use of a berm for a solar energy generating station approved under this section.</text> </level> <level label="4"> <text>The buffer or vegetative screening required in paragraph (2)(iv) of this subsection shall:</text> <level label="i"> <text>be not more than 35 feet wide;</text> </level> <level label="ii"> <text>be provided along:</text> <level label="1"> <text>all property lines;</text> </level> <level label="2"> <text>locations of the exterior boundary for the solar energy generating station where existing wooded vegetation of 50 feet or more in width does not exist; or</text> </level> <level label="3"> <text>an alternative location within the boundary for the solar energy generating station if the owner demonstrates that the alternative location would maximize the visual screening;</text> </level> </level> <level label="iii"> <text>provide for four–season visual screening of the solar energy generating station;</text> </level> <level label="iv"> <text>be placed between any fencing and the public view;</text> </level> <level label="v"> <text>include multilayered, staggered rows of overstory and understory trees and shrubs that:</text> <level label="1"> <text>are a mixture of evergreen and deciduous vegetation;</text> </level> <level label="2"> <text>are predominantly native to the region;</text> </level> <level label="3"> <text>are more than 4 feet in height at planting;</text> </level> <level label="4"> <text>are designed to provide screening or buffering within 5 years of planting;</text> </level> <level label="5"> <text>may not be trimmed to stunt upward or outward growth or to otherwise limit the effectiveness of the visual screen;</text> </level> <level label="6"> <text>conform to the plant size specifications established by the American Standard for Nursery Stock (ANSI Z60.1); and</text> </level> <level label="7"> <text>are specified in a landscaping plan prepared by a qualified professional landscape architect;</text> </level> </level> <level label="vi"> <text>be installed as early in the construction process as practicable and before the activation of the proposed solar energy generating station;</text> </level> <level label="vii"> <text>preserve to the maximum extent practicable and supplemented with new plantings where necessary, any forest or hedgerow that exists at a location where visual screening or landscape buffering is required; and</text> </level> <level label="viii"> <text>shall be maintained with a 90% survival threshold for the life of the solar energy generating station through a maintenance agreement that includes a watering plan.</text> </level> </level> <level label="5"> <text>With respect to the site on which a solar energy generating station is proposed for construction, the owner of the solar energy generating station:</text> <level label="i"> <text>shall minimize grading to the maximum extent possible;</text> </level> <level label="ii"> <text>may not remove topsoil from the parcel, but may move or temporarily stockpile topsoil for grading;</text> </level> <level label="iii"> <text>to maintain soil integrity, shall plant native or noninvasive naturalized vegetation and other appropriate vegetative protections that have a 90% survival threshold for the life of the solar energy generating station;</text> </level> <level label="iv"> <text>shall limit mowing and other unnecessary landscaping;</text> </level> <level label="v"> <text>may not use herbicides except to control invasive species in compliance with the Department of Agriculture’s weed control program; and</text> </level> <level label="vi"> <text>shall post for the first 5 years of the life of the solar energy generating station a landscaping bond equal to 100% of the total landscaping cost with the county in which the solar energy generating station is located.</text> </level> </level> <level label="6"> <level label="i"> <text>Subject to subparagraphs (ii) and (iii) of this paragraph, a local jurisdiction shall hold any landscaping bond required under paragraph (5)(vi) of this subsection for 5 years.</text> </level> <level label="ii"> <text>A local jurisdiction shall release 50% of the landscaping bond if, on inspection, the vegetative protections meet a 90% survival threshold.</text> </level> <level label="iii"> <text>Following the release of a landscaping bond under subparagraph (ii) of this paragraph, the remaining landscaping bond shall be held for an additional 2 years and, on further inspection and confirmation that the vegetative protections continue to meet a 90% survival threshold, shall be released.</text> </level> </level> <level label="7"> <text>Except as required by law, or for safety or emergency, the solar energy generating station may not emit visible light during dusk to dawn operations.</text> </level> <level label="8"> <level label="i"> <text>This paragraph does not apply to:</text> <level label="1"> <text>equipment necessary for interconnection with the electric system; or</text> </level> <level label="2"> <text>solar energy generating stations located on land that is also used for agricultural purposes.</text> </level> </level> <level label="ii"> <text>A proposed solar energy generating station and any accessory structures associated with the station must have an average height of not more than 15 feet.</text> </level> </level> <level label="9"> <text>Setbacks for solar energy generating stations:</text> <level label="i"> <text>shall be measured from the property boundary to the nearest solar array or accessory equipment, buildings, or facilities that generate, maintain, operate, manage, distribute, and transmit electricity; and</text> </level> <level label="ii"> <text>may not apply to any interconnection tie line or facility that connects a solar energy generating station to the electric system.</text> </level> </level> <level label="10"> <level label="i"> <text>The owner of a proposed solar energy generating station may provide to the Commission or local jurisdiction written documentation of a siting agreement:</text> <level label="1"> <text>entered into with the county in which the proposed solar energy generating station is to be located; and</text> </level> <level label="2"> <text>that provides less stringent restrictions than those specified under this subsection.</text> </level> </level> <level label="ii"> <text>If a proposed solar energy generating station provides to the Commission or local jurisdiction written documentation in accordance with subparagraph (i) of this paragraph, the proposed solar energy generating station shall be considered as meeting the requirements of this subsection.</text> </level> </level> </level> <level label="g"> <text>An owner of a solar energy generating station:</text> <level label="1"> <text>shall enter into a decommissioning agreement with the Commission on a form that the Commission provides;</text> </level> <level label="2"> <text>shall post a surety bond with the Commission for not more than 125% of the estimated future cost of decommissioning the solar energy generating station and its related infrastructure, less any salvage value; and</text> </level> <level label="3"> <text>shall execute a securitization bond true–up every 5 years.</text> </level> </level> <level label="h"> <level label="1"> <text>Except as provided in paragraphs (3) and (4) of this subsection, a local jurisdiction may not:</text> <level label="i"> <text>adopt zoning laws or other laws or regulations that prohibit the construction or operation of solar energy generating stations; or</text> </level> <level label="ii"> <text>deny site development plans for solar energy generating stations that meet the requirements of subsection (f) of this section.</text> </level> </level> <level label="2"> <text>A local jurisdiction shall:</text> <level label="i"> <text>expedite the review and approval of site development plans for solar energy generating stations if those plans meet the requirements of this section; and</text> </level> <level label="ii"> <text>for solar energy generating stations with a generating capacity of not more than 5 megawatts, as measured by the alternating current rating of the solar energy generating station’s inverter, process the site development plan application as a permitted use subject to the review standards in § 4–205 of the Land Use Article.</text> </level> </level> <level label="3"> <text>A ground mounted solar energy generating station with a generating capacity of more than 5 megawatts, as measured by the alternating current rating of the solar energy generating station’s inverter, may not be located on any lot, parcel, or tract of land that, as of January 1, 2025, is located within:</text> <level label="i"> <text>a Tier 1 or Tier 2 mapped locally designated growth area adopted under § 1–506 of the Land Use Article;</text> </level> <level label="ii"> <text>a medium density residential area or high density residential area, as defined in § 5–1601 of the Natural Resources Article; or</text> </level> <level label="iii"> <text>a mixed–use area with a residential component.</text> </level> </level> <level label="4"> <level label="i"> <text>The total combined number of solar energy generating stations that may be approved for construction in a priority preservation area that was established before January 1, 2025, shall:</text> <level label="1"> <text>be limited in area to 5% of the total acreage of the priority preservation area;</text> </level> <level label="2"> <text>be located in the project area within the priority preservation area; and</text> </level> <level label="3"> <text>meet all requirements under this section.</text> </level> </level> <level label="ii"> <text>The prohibitions in paragraph (1) of this subsection do not apply to the remaining 95% of a priority preservation area once the 5% limitation under subparagraph (i) of this paragraph has been achieved for the priority preservation area.</text> </level> <level label="iii"> <text>A county shall report to the Commission when the 5% limitation under subparagraph (i) of this paragraph has been achieved for a priority preservation area.</text> </level> </level> </level> <level label="i"> <text>Nothing in this section may be construed to add any additional limitations to the authority of the Commission in the approval process for an application for a certificate of public convenience and necessity.</text> </level> </section> <section article="gpu" article_name="Public Utilities" number="7-219" title_number="7" title_name="Gas, Electric, and Water Companies" subtitle_number="2" subtitle_name="Electric Generation Facility Planning"> <level label="a"> <level label="1"> <text>In this section the following words have the meanings indicated.</text> </level> <level label="2"> <text>“Energy storage device” has the meaning stated in § 7–216 of this subtitle.</text> </level> <level label="3"> <text>“Local jurisdiction” includes counties, municipal corporations, and other forms of local government.</text> </level> </level> <level label="b"> <text>A person may not begin construction of a front–of–the–meter energy storage device unless the construction has been approved by the Commission in accordance with regulations adopted under this section.</text> </level> <level label="c"> <text>On receipt of an application for approval of the construction of a front–of–the–meter energy storage device under this section, the Commission shall provide immediate notice or require the applicant to provide immediate notice of the application to:</text> <level label="1"> <text>the governing body of each county or municipal corporation in which any portion of the energy storage device is proposed to be constructed;</text> </level> <level label="2"> <text>the governing body of each county or municipal corporation within 1 mile of the proposed location of the energy storage device;</text> </level> <level label="3"> <text>each member of the General Assembly representing any part of a county in which any portion of the energy storage device is proposed to be constructed;</text> </level> <level label="4"> <text>each member of the General Assembly representing any part of a county within 1 mile of the proposed location of the energy storage device; and</text> </level> <level label="5"> <text>the affected communities that are within 1 mile of the proposed location of the energy storage device.</text> </level> </level> <level label="d"> <text>When reviewing an application for approval under this section, the Commission shall:</text> <level label="1"> <text>if the proposed location of the front–of–the–meter energy storage device is in an area considered to be overburdened and underserved, as defined in § 1–701 of the Environment Article, require the applicant to hold at least two public meetings in the community where the energy storage device is to be located; and</text> </level> <level label="2"> <text>exempt a front–of–the–meter energy storage device that is located within the boundaries of an existing electricity generating station from the meeting requirements of this subsection.</text> </level> </level> <level label="e"> <level label="1"> <text>An owner of a proposed front–of–the–meter energy storage device that will not be constructed at a commercial or industrial location:</text> <level label="i"> <level label="1"> <text>shall provide nonbarbed wire fencing:</text> </level> <level label="A"> <text>around the energy storage device; and</text> </level> <level label="B"> <text>that is not more than 20 feet in height; and</text> </level> <level label="2"> <text>may use barbed wire fencing around the substations or other critical infrastructure for protection of that infrastructure; and</text> </level> </level> <level label="ii"> <text>shall provide for a landscaping buffer or vegetative screening if required by the local jurisdiction.</text> </level> </level> <level label="2"> <text>A local jurisdiction may not require the use of a berm for a front–of–the–meter energy storage device approved under this section.</text> </level> <level label="3"> <text>The buffer required in paragraph (1)(ii) of this subsection shall:</text> <level label="i"> <text>be not more than 25 feet in depth; and</text> </level> <level label="ii"> <text>provide for four–season visual screening of the front–of–the–meter energy storage device.</text> </level> </level> <level label="4"> <text>With respect to the site on which a front–of–the–meter energy storage device is proposed for construction, the owner of the energy storage device:</text> <level label="i"> <text>shall minimize grading to the maximum extent possible;</text> </level> <level label="ii"> <text>may not remove topsoil from the parcel, but may move or temporarily stockpile topsoil for grading; and</text> </level> <level label="iii"> <text>may not use herbicides except to control invasive species in compliance with the Department of Agriculture’s weed control program.</text> </level> </level> </level> <level label="f"> <level label="1"> <text>A local jurisdiction may not:</text> <level label="i"> <text>adopt zoning laws or other laws or regulations that prohibit the construction or operation of front–of–the–meter energy storage devices; or</text> </level> <level label="ii"> <text>deny site development plans for front–of–the–meter energy storage devices that meet the requirements of subsection (e) of this section.</text> </level> </level> <level label="2"> <text>A local jurisdiction shall:</text> <level label="i"> <text>expedite the review and approval of site development plans for front–of–the–meter energy storage devices if those plans meet the requirements of this section; and</text> </level> <level label="ii"> <text>adopt standard processes for the review and approval of site development plans for the construction of front–of–the–meter energy storage devices.</text> </level> </level> </level> <level label="g"> <text>The Commission may waive or modify the requirements under subsections (c), (d), and (e) of this section for good cause.</text> </level> <level label="h"> <text>The Commission shall adopt regulations to carry out this section.</text> </level> </section> <section article="gpu" article_name="Public Utilities" number="7-220" title_number="7" title_name="Gas, Electric, and Water Companies" subtitle_number="2" subtitle_name="Electric Generation Facility Planning"> <level label="a"> <text>In this part the following words have the meanings indicated.</text> </level> <level label="b"> <text>“Behind–the–meter program” means a program that impacts the customer side of the utility meter.</text> </level> <level label="c"> <text>“Beneficial electrification” means the replacement of the direct use of fossil fuels in buildings with the use of electricity in a manner that:</text> <level label="1"> <text>reduces overall lifetime greenhouse gas emissions;</text> </level> <level label="2"> <text>reduces customers’ energy costs; or</text> </level> <level label="3"> <text>enables better management of the electric distribution system.</text> </level> </level> <level label="d"> <text>“Carbon dioxide equivalent” means the measurement of a given weight of a greenhouse gas that has the same global warming potential, measured over a specific period of time, as 1 metric ton of carbon dioxide.</text> </level> <level label="e"> <text>“Demand response program” means a program established by an electric company, an electricity supplier, or a third party that promotes changes in electric usage by customers from their normal consumption patterns in response to:</text> <level label="1"> <text>changes in the price of electricity over time; or</text> </level> <level label="2"> <text>incentives designed to:</text> <level label="i"> <text>induce lower electricity use at times of high wholesale market prices; or</text> </level> <level label="ii"> <text>ensure system reliability.</text> </level> </level> </level> <level label="f"> <text>“Department” means the Department of Housing and Community Development.</text> </level> <level label="g"> <text>“Energy efficiency” means the use of less energy to perform the same task or produce the same result.</text> </level> <level label="h"> <text>“Front–of–meter community program” means a program that:</text> <level label="1"> <text>is separate from front–of–meter utility programs;</text> </level> <level label="2"> <text>impacts the utility side of the meter; and</text> </level> <level label="3"> <text>directly benefits a set of customers.</text> </level> </level> <level label="i"> <text>“Front–of–meter utility program” means a program that impacts the utility side of a meter and benefits all utility customers.</text> </level> <level label="j"> <text>“Greenhouse gas” includes:</text> <level label="1"> <text>carbon dioxide;</text> </level> <level label="2"> <text>methane;</text> </level> <level label="3"> <text>nitrous oxide;</text> </level> <level label="4"> <text>hydrofluorocarbons;</text> </level> <level label="5"> <text>perfluorocarbons; and</text> </level> <level label="6"> <text>sulfur hexafluoride.</text> </level> </level> <level label="k"> <text>“Greenhouse gas emissions reduction” means a reduction in greenhouse gas emissions, measured in metric tons of carbon dioxide equivalents, including:</text> <level label="1"> <text>greenhouse gas emissions from the generation of electricity delivered to and consumed in the State; and</text> </level> <level label="2"> <text>line losses from the transmission and distribution of electricity, regardless of whether the electricity is generated in the State or imported.</text> </level> </level> <level label="l"> <text>“Low–income program” means a program that delivers energy efficiency, conservation, and greenhouse gas emissions reduction measures to reduce utility expenses for building owners, managers, and tenants of housing with residents who qualify for the Department’s low–income assistance programs, including:</text> <level label="1"> <text>the EmPOWER Maryland Limited Income Energy Efficiency Program;</text> </level> <level label="2"> <text>the Multifamily Energy Efficiency and Housing Affordability Program; and</text> </level> <level label="3"> <text>the Weatherization Assistance Program.</text> </level> </level> <level label="m"> <text>“Low–income residential” means a community, building, or household with residents that:</text> <level label="1"> <text>have incomes below 250% of the federal poverty level as determined by the federal census; or</text> </level> <level label="2"> <text>meet the eligibility criteria approved by the Commission for low–income programs.</text> </level> </level> <level label="n"> <text>“Midsize electric cooperative” means an electric cooperative, including a member–regulated cooperative, that:</text> <level label="1"> <text>serves fewer than 75,000 customers in its distribution territory; but</text> </level> <level label="2"> <text>is not a small rural electric cooperative.</text> </level> </level> <level label="o"> <text>“Nonenergy program” means a program with greenhouse gas emissions reduction benefits that are primarily nonenergy–based.</text> </level> <level label="p"> <text>“Plan” means any combination of behind–the–meter programs, front–of–meter community programs, front–of–meter utility programs, or nonenergy programs that:</text> <level label="1"> <text>achieve greenhouse gas emissions reductions through energy efficiency, conservation, demand response, and beneficial electrification; and</text> </level> <level label="2"> <text>include a cost recovery proposal.</text> </level> </level> <level label="q"> <text>“Task Force” means the Green and Healthy Task Force established under § 7–319 of this title.</text> </level> </section> <section article="gpu" article_name="Public Utilities" number="7-221" title_number="7" title_name="Gas, Electric, and Water Companies" subtitle_number="2" subtitle_name="Electric Generation Facility Planning"> <text>The General Assembly finds and declares that energy efficiency is:</text> <level label="1"> <text>among the least expensive ways to meet the energy demands of the State;</text> </level> <level label="2"> <text>a means of affordable, reliable, and clean energy for consumers of Maryland; and</text> </level> <level label="3"> <text>one method to achieve Maryland’s climate commitments for reducing statewide greenhouse gas emissions, including those required under Title 2, Subtitle 12 of the Environment Article.</text> </level> </section> <section article="gpu" article_name="Public Utilities" number="7-222" title_number="7" title_name="Gas, Electric, and Water Companies" subtitle_number="2" subtitle_name="Electric Generation Facility Planning"> <level label="a"> <text>Subject to review and approval by the Commission, each electric company, the Department, and, if required in accordance with subsection (c) of this section, each midsize electric cooperative shall develop and implement programs and services in accordance with §§ 7–223, 7–224, and 7–225 of this subtitle to encourage and promote the efficient use and conservation of energy, demand response, and beneficial electrification by consumers, electric companies, and the Department in support of the greenhouse gas emissions reduction goals and targets required under Title 2, Subtitle 12 of the Environment Article.</text> </level> <level label="b"> <text>As directed by the Commission, each municipal electric utility, each small rural electric cooperative, and, if required in accordance with subsection (c) of this section, each midsize electric cooperative shall include energy efficiency and conservation, demand response, and beneficial electrification programs or services as part of their service to their customers.</text> </level> <level label="c"> <level label="1"> <text>In accordance with this subsection, each midsize electric cooperative shall be subject to either subsection (a) or subsection (b) of this section.</text> </level> <level label="2"> <text>Each midsize electric cooperative shall offer programs and services to customers in accordance with:</text> <level label="i"> <text>subsection (b) of this section through December 31, 2026; and</text> </level> <level label="ii"> <text>on or after January 1, 2027, and as the Commission directs, either subsection (a) or subsection (b) of this section.</text> </level> </level> <level label="3"> <text>Not later than October 1, 2025, the Commission shall determine if it is in the public interest for a midsize electric cooperative to offer programs and services to customers in accordance with subsection (a) or subsection (b) of this section starting January 1, 2027, and for all subsequent years.</text> </level> <level label="4"> <text>Each midsize electric cooperative shall provide the following information to the Commission to assist in making a determination under paragraph (3) of this subsection:</text> <level label="i"> <text>anticipated costs and bill impacts;</text> </level> <level label="ii"> <text>a description of the anticipated program offerings;</text> </level> <level label="iii"> <text>the anticipated cost–effectiveness of the residential, commercial, and industrial sector subportfolios based on the cost–effectiveness tests in § 7–225(d)(3)(i) of this subtitle;</text> </level> <level label="iv"> <text>the anticipated electricity savings and greenhouse gas emissions reductions; and</text> </level> <level label="v"> <text>any other information the Commission requires.</text> </level> </level> <level label="5"> <text>The information provided to the Commission under paragraph (4) of this subsection shall be based on a plan to offer programs and services to customers that complies with the requirements of an electric company subject to subsection (a) of this section for the 3–year program cycle starting January 1, 2027.</text> </level> <level label="6"> <text>When making a public interest determination under paragraph (3) of this subsection the Commission, at a minimum, shall consider the requirements under § 7–225(d)(3) of this subtitle that are considered when approving a plan of an electric company that is subject to subsection (a) of this section.</text> </level> <level label="7"> <text>Starting October 1, 2025, if the Commission determines that it is in the public interest for a midsize electric cooperative to be subject to subsection (a) of this section, the midsize electric cooperative shall comply with all requirements of an electric company subject to subsection (a) of this section for program cycles starting on and after January 1, 2027.</text> </level> <level label="8"> <text>On or before March 1 each year, starting in 2026, each midsize electric cooperative directed by the Commission to include programs or services under subsection (b) of this section shall submit to the Commission a report quantifying the gains in energy efficiency and reductions in greenhouse gas emissions achieved during the previous year.</text> </level> </level> <level label="d"> <text>The Commission shall encourage and promote the efficient use and conservation of energy in support of the greenhouse gas emissions reduction goals and targets required under Title 2, Subtitle 12 of the Environment Article, established by the Commission under § 7–223(b) of this subtitle, and specified in § 7–224(a)(2) of this subtitle by:</text> <level label="1"> <text>requiring each electric company to establish any program or service that the Commission determines to be appropriate and cost–effective;</text> </level> <level label="2"> <text>adopting rate–making policies that provide, through a surcharge line item on customer bills:</text> <level label="i"> <text>full cost recovery of reasonably incurred costs for programs and services established under item (1) of this subsection, including full recovery on a current basis on or before January 1, 2028;</text> </level> <level label="ii"> <text>on or before December 31, 2032, the elimination of any unpaid costs and unamortized costs that:</text> <level label="1"> <level label="A"> <text>existed on December 31, 2024; or</text> </level> </level> <level label="B"> <text>were incurred before January 1, 2028; and</text> </level> <level label="2"> <text>were accrued for the purpose of achieving statutory targets for annual incremental gross energy savings;</text> </level> </level> <level label="iii"> <text>compensation for any unpaid costs and unamortized costs under item (ii) of this item at not more than each electric company’s and each gas company’s average cost of outstanding debt; and</text> </level> <level label="iv"> <text>reasonable financial performance incentives and penalties for investor–owned electric companies as appropriate; and</text> </level> </level> <level label="3"> <text>ensuring that adoption of electric customer choice under Subtitle 5 of this title does not adversely impact these goals and targets.</text> </level> </level> <level label="e"> <text>The Commission shall, by regulation or order, require each electric company that has submitted to the Commission, on or before July 1, 2024, a plan for achieving electricity savings and demand reduction targets to disclose the following information in a form and format readily understandable to the average customer:</text> <level label="1"> <text>that the surcharge imposed in accordance with subsection (d) of this section includes the cost of paying down the unpaid costs and unamortized costs that were accrued over time by programs and services required by the Commission dating back to 2008; and</text> </level> <level label="2"> <text>the period of time that the surcharge will include excess charges to pay down the unpaid costs and unamortized costs.</text> </level> </level> <level label="f"> <text>A gas company that provided a program or service under subsection (d)(1) of this section and recovered costs under subsection (d)(2) of this section on or before January 1, 2026, shall:</text> <level label="1"> <text>terminate the program on or before December 31, 2026; and</text> </level> <level label="2"> <text>continue to recover any program and service costs reasonably incurred through December 31, 2026, including unpaid and unamortized costs under subsection (d)(2)(i) of this section, through the rate–making policies under subsection (d)(2) of this section until all reasonably incurred program and service costs have been recovered.</text> </level> </level> </section> <section article="gpu" article_name="Public Utilities" number="7-223" title_number="7" title_name="Gas, Electric, and Water Companies" subtitle_number="2" subtitle_name="Electric Generation Facility Planning"> <level label="a"> <text>On or before January 1, 2025, and on or before January 1 every 3 years, starting in 2027, the Commission shall, by regulation or order, require each electric company subject to § 7–222(a) of this subtitle to develop and implement a plan that:</text> <level label="1"> <text>covers appropriate ratepayer classes;</text> </level> <level label="2"> <text>starting in 2027, covers a 3–year program cycle; and</text> </level> <level label="3"> <text>achieves the greenhouse gas emissions reduction target established for the electric company under subsection (b) of this section through cost–effective energy efficiency and conservation programs and services, demand response programs and services, and beneficial electrification programs and services.</text> </level> </level> <level label="b"> <level label="1"> <text>For 2025 and 2026, and for each 3–year program cycle starting in 2027, the Commission shall establish a greenhouse gas emissions reduction target for each electric company subject to § 7–222(a) of this subtitle as provided in this subsection.</text> </level> <level label="2"> <text>When establishing greenhouse gas emissions reduction targets under this subsection, the Commission shall measure the greenhouse gas emissions from electricity and gas, and the intensities of those emissions, using current data and projections from the Department of the Environment.</text> </level> <level label="3"> <text>The greenhouse gas emissions reduction targets established under this subsection shall be measured:</text> <level label="i"> <text>in metric tons; and</text> </level> <level label="ii"> <text>relative to the greenhouse gas emissions associated with the electric company’s weather–normalized gross retail sales and losses in a baseline year, as determined by the Commission.</text> </level> </level> <level label="4"> <text>By the dates specified in § 7–225(a) of this subtitle, the Commission shall establish greenhouse gas emissions reduction targets for each electric company plan that will achieve at least the greenhouse gas emissions reduction equivalent, measured on a lifecycle basis using the emission intensities under paragraph (2) of this subsection, of the following annual electricity savings percentages, calculated as a percentage of the electric company’s 2016 weather–normalized gross retail sales and electricity losses:</text> <level label="i"> <level label="2"> <text>0% in 2024;</text> </level> </level> <level label="ii"> <level label="2"> <text>25% each year in 2025 and 2026;</text> </level> </level> <level label="iii"> <level label="1"> <text>75% each year in 2027 through 2029;</text> </level> </level> <level label="iv"> <level label="2"> <text>0% each year in 2030 through 2032;</text> </level> </level> <level label="v"> <level label="2"> <text>25% each year in 2033 through 2035; and</text> </level> </level> <level label="vi"> <level label="2"> <text>5% each year in 2036 and after.</text> </level> </level> </level> <level label="5"> <text>The Commission shall take into consideration the most recent final plan adopted under § 2–1205 of the Environment Article when establishing the greenhouse gas emissions reduction targets under this subsection.</text> </level> <level label="6"> <text>For 2025 and 2026:</text> <level label="i"> <text>the Commission shall, after making appropriate findings, determine whether existing electric company plans must be modified to comply with § 7–225(d) of this subtitle; and</text> </level> <level label="ii"> <text>electric companies:</text> <level label="1"> <text>shall provide information as required by the Commission to assist in making the determination under item (i) of this paragraph; and</text> </level> <level label="2"> <text>are only required to file new plans in accordance with this section if directed by the Commission.</text> </level> </level> </level> </level> <level label="c"> <text>The Commission may give priority to long–lived greenhouse gas emissions reduction measures in the plans by establishing a minimum weighted average measure life for the plan of each electric company.</text> </level> <level label="d"> <text>Contributions to greenhouse gas emissions reduction goals and targets in a plan of an electric company:</text> <level label="1"> <text>may, notwithstanding § 7–222(d)(2) of this subtitle, include recovery of the reasonable and prudent costs from programs that are not behind–the–meter programs in a base rate proceeding, subject to Commission approval; and</text> </level> <level label="2"> <text>may not include the increased adoption of electric vehicles.</text> </level> </level> <level label="e"> <level label="1"> <text>Subject to paragraph (2) of this subsection, beginning January 1, 2025:</text> <level label="i"> <text>at least 80% of the greenhouse gas emissions reductions counted toward each electric company’s greenhouse gas emissions reduction targets established under this section shall come from behind–the–meter programs, which may include deployment of energy storage facilities; and</text> </level> <level label="ii"> <text>subject to paragraph (3) of this subsection, for 2027 through 2029, not more than 20% of the greenhouse gas emissions reductions counted toward each electric company’s greenhouse gas emissions reduction targets established under this section shall include:</text> <level label="1"> <text>community solar energy generating systems that are interconnected to the electric company’s distribution system; and</text> </level> <level label="2"> <text>solar energy generating facilities that are interconnected to the electric company’s distribution system.</text> </level> </level> </level> <level label="2"> <text>Paragraph (1) of this subsection may not be construed to authorize an electric company to build, own, or operate electric generating facilities or energy storage facilities to meet the requirements of this section.</text> </level> <level label="3"> <text>Greenhouse gas emissions reductions from sources specified under paragraph (1)(ii) of this subsection may not be used to meet the greenhouse gas emissions reduction targets under paragraph (1)(i) of this subsection.</text> </level> </level> </section> <section article="gpu" article_name="Public Utilities" number="7-224" title_number="7" title_name="Gas, Electric, and Water Companies" subtitle_number="2" subtitle_name="Electric Generation Facility Planning"> <level label="a"> <level label="1"> <text>Beginning January 1, 2025, and on or before January 1 every 3 years, starting in 2027, the Department shall procure or provide to low–income individuals energy efficiency and conservation programs and services, demand response programs and services, and beneficial electrification programs and services that achieve the greenhouse gas emissions reduction targets established for the Department under paragraph (2) of this subsection.</text> </level> <level label="2"> <text>For the period 2025–2033, the programs and services required under paragraph (1) of this subsection shall be on a trajectory to achieve greenhouse gas reductions after 2027 of at least 0.9% of the baseline determined under subsection (b) of this section.</text> </level> <level label="3"> <level label="i"> <text>When establishing greenhouse gas emissions reduction targets under this subsection, the Commission shall measure the greenhouse gas emissions from electricity using current data and projections from the Department of the Environment.</text> </level> <level label="ii"> <text>The greenhouse gas emissions reduction targets established under this subsection shall be measured in metric tons.</text> </level> </level> <level label="4"> <text>The greenhouse gas reductions achieved to meet the targets established under paragraph (2) of this subsection shall count toward the achievement of the greenhouse gas reduction target established under § 7–223(b) of this subtitle.</text> </level> <level label="5"> <text>The target greenhouse gas savings shall be achieved based on the 3–year average of the Department’s plan submitted in accordance with subsection (d) of this section.</text> </level> <level label="6"> <text>For 2025 and 2026:</text> <level label="i"> <text>the Commission shall, after making appropriate findings, determine whether the Department’s existing 2024–2026 plan must be modified to comply with:</text> <level label="1"> <text>the targets established in this subsection; and</text> </level> <level label="2"> <text>§ 7–225(d) of this subtitle; and</text> </level> </level> <level label="ii"> <text>the Department:</text> <level label="1"> <text>shall provide information as required by the Commission to assist in making the determination in item (i) of this paragraph; and</text> </level> <level label="2"> <text>is only required to file new plans in accordance with subsection (d) of this section and § 7–225 of this subtitle if directed by the Commission.</text> </level> </level> </level> </level> <level label="b"> <text>As a baseline for determining greenhouse gas emissions reduction targets under this section, the Commission shall use the greenhouse gas emissions resulting from the direct consumption of gas and electricity by low–income residential households in 2016, as determined by the Department of the Environment.</text> </level> <level label="c"> <text>When calculating the achievement of greenhouse gas emissions reduction targets under this section, the Department may procure or provide savings that are achieved through all funding sources, to the extent that the savings from those funding sources are achieved:</text> <level label="1"> <text>in a manner consistent with requirements of the U.S. Department of Energy; or</text> </level> <level label="2"> <text>in a manner otherwise consistent with the energy savings requirements applicable to those funding sources.</text> </level> </level> <level label="d"> <text>If directed by the Commission in 2024, and on or before September 1 every 3 years, starting in 2026, the Department shall submit its plans for any programs or services procured or provided under subsection (a) of this section to the Commission for review and approval under § 7–225 of this subtitle.</text> </level> <level label="e"> <text>For weatherization of leased or rented residences, the Department shall adopt regulations to ensure that:</text> <level label="1"> <text>the benefits of weatherization assistance, including utility bill reduction and preservation of affordable housing stock, accrue primarily to low–income tenants occupying a leased or rented residence; and</text> </level> <level label="2"> <text>the rent on the residence is not increased and the tenant is not evicted as a result of weatherization provided under this section.</text> </level> </level> <level label="f"> <text>The programs and services provided under subsection (a) of this section may not use thermal insulating materials for building elements, including walls, floors, ceilings, attics, and roof insulation, that contain formaldehyde if the formaldehyde:</text> <level label="1"> <text>was intentionally added; or</text> </level> <level label="2"> <text>is present in the product at greater than 0.1% by weight.</text> </level> </level> <level label="g"> <text>The Department’s approved contractors used for the programs under this section shall meet the following job requirements:</text> <level label="1"> <text>pay at least 150% of the State minimum wage;</text> </level> <level label="2"> <text>provide career advancement training;</text> </level> <level label="3"> <text>afford employees the right to bargain collectively for wages and benefits;</text> </level> <level label="4"> <text>provide paid leave;</text> </level> <level label="5"> <text>be considered covered employment for purposes of unemployment insurance benefits in accordance with Title 8 of the Labor and Employment Article;</text> </level> <level label="6"> <text>entitle the employee to workers’ compensation benefits in accordance with Title 9 of the Labor and Employment Article;</text> </level> <level label="7"> <text>be compliant with federal and State wage and hour laws for the previous 3 years;</text> </level> <level label="8"> <text>offer employer–provided health insurance benefits with monthly premiums that do not exceed 8.5% of the employee’s net monthly earnings; and</text> </level> <level label="9"> <text>offer retirement benefits.</text> </level> </level> <level label="h"> <level label="1"> <text>The Department shall develop a plan to coordinate funding sources and leverage the greatest funding possible to support a whole home approach by addressing:</text> <level label="i"> <text>health and safety upgrades;</text> </level> <level label="ii"> <text>weatherization;</text> </level> <level label="iii"> <text>energy efficiency; and</text> </level> <level label="iv"> <text>other general maintenance for low–income housing.</text> </level> </level> <level label="2"> <text>The plan shall coordinate funding among:</text> <level label="i"> <text>the Strategic Energy Investment Fund;</text> </level> <level label="ii"> <text>federal weatherization assistance programs;</text> </level> <level label="iii"> <text>ratepayer contributions to:</text> <level label="1"> <text>the EmPOWER Maryland Limited Income Energy Efficiency Program; and</text> </level> <level label="2"> <text>the Multifamily Energy Efficiency and Housing Affordability Program;</text> </level> </level> <level label="iv"> <text>the Maryland Affordable Housing Trust Fund;</text> </level> <level label="v"> <level label="U"> <level label="S"> <text>Department of Housing and Urban Development programs, including:</text> </level> </level> <level label="1"> <text>Community Development Block Grants;</text> </level> <level label="2"> <text>the Home Investment Partnership Grants Program; and</text> </level> <level label="3"> <text>Lead Hazard Control and Healthy Homes Grants;</text> </level> </level> <level label="vi"> <level label="U"> <level label="S"> <text>Department of Agriculture programs, including the Home Repair Program;</text> </level> </level> </level> <level label="vii"> <text>the Healthy Homes for Healthy Kids Program;</text> </level> <level label="viii"> <text>the Energy Efficiency and Conservation Block Grant program;</text> </level> <level label="ix"> <text>State appropriations;</text> </level> <level label="x"> <text>funds from the federal Inflation Reduction Act of 2022; and</text> </level> <level label="xi"> <text>any other source of funding that the Department or the Task Force identifies.</text> </level> </level> <level label="3"> <text>The Department shall ensure, for any whole home retrofits associated with weatherization provided or developed under the plan, that:</text> <level label="i"> <text>there is a single point of contact for low–income residential households; and</text> </level> <level label="ii"> <text>services are offered in any language needed by the low–income residential households.</text> </level> </level> <level label="4"> <text>The Department shall collaborate with the members of the Task Force and identify other interested parties to develop the plan.</text> </level> <level label="5"> <text>On or before December 31, 2024, the Department shall submit the plan to the Governor and, in accordance with § 2–1257 of the State Government Article, the General Assembly.</text> </level> </level> <level label="i"> <text>The Department, the Maryland Energy Administration, and other State units shall apply for all federal funding that may become available to carry out this section.</text> </level> <level label="j"> <level label="1"> <text>The Department shall collaborate with the members of the Task Force to develop a plan, including a budget, a timeline, and potential funding sources, to provide energy efficiency retrofits to all low–income households by 2032.</text> </level> <level label="2"> <text>On or before December 1, 2024, the Department, in collaboration with the Task Force, shall submit the plan to the General Assembly, in accordance with § 2–1257 of the State Government Article.</text> </level> </level> </section> <section article="gpu" article_name="Public Utilities" number="7-225" title_number="7" title_name="Gas, Electric, and Water Companies" subtitle_number="2" subtitle_name="Electric Generation Facility Planning"> <level label="a"> <text>As soon as possible in 2024, and at least 8 months before the filing deadline for plans after 2024, the Commission shall issue an order that determines the greenhouse gas emissions reduction targets required under § 7–223(b) of this subtitle and the greenhouse gas emissions reductions required under § 7–224(a)(2) of this subtitle.</text> </level> <level label="b"> <level label="1"> <level label="i"> <text>If directed by the Commission in 2024, and on or before July 1 every 3 years, starting in 2026, each electric company subject to § 7–222(a) of this subtitle that submitted a plan for achieving electricity savings and demand reduction targets to the Commission before July 1, 2024, and the Department, shall consult with the technical staff of the Commission, the Office of People’s Counsel, the Maryland Energy Administration, and the Department of the Environment regarding the design and adequacy of its plans for achieving the greenhouse gas emissions reduction targets established by the Commission under § 7–223(b) of this subtitle and specified in § 7–224(a)(2) of this subtitle.</text> </level> <level label="ii"> <text>On or before October 1, 2024, and on or before July 1 every 3 years, starting in 2026, each electric company subject to § 7–222(a) of this subtitle that did not submit a plan for achieving electricity savings and demand reduction targets to the Commission before July 1, 2024, shall comply with the consulting requirements under subparagraph (i) of this paragraph.</text> </level> </level> <level label="2"> <text>Each electric company subject to § 7–222(a) of this subtitle shall provide the technical staff of the Commission, the Office of People’s Counsel, the Maryland Energy Administration, and the Department of the Environment with any additional information regarding its plan, as requested.</text> </level> </level> <level label="c"> <level label="1"> <level label="i"> <text>If directed by the Commission in 2024, and on or before September 1 every 3 years, starting in 2026, each electric company subject to § 7–222(a) of this subtitle that submitted a plan for achieving electricity savings and demand reduction targets to the Commission before July 1, 2024, and the Department, shall submit its plan to the Commission.</text> </level> <level label="ii"> <text>On or before December 1, 2024, and on or before September 1 every 3 years, starting in 2026, each electric company that did not submit a plan for achieving electricity savings and demand reduction targets to the Commission before July 1, 2024, shall submit its plan to the Commission.</text> </level> </level> <level label="2"> <text>Each plan shall detail a proposal for achieving greenhouse gas emissions reduction targets for 3 subsequent calendar years.</text> </level> <level label="3"> <level label="i"> <text>Each plan shall:</text> <level label="1"> <text>include:</text> </level> <level label="A"> <text>a description of the proposed programs and services;</text> </level> <level label="B"> <text>anticipated costs;</text> </level> <level label="C"> <text>projected benefits, including greenhouse gas emissions reductions and electricity savings; and</text> </level> <level label="D"> <text>any other information requested by the Commission; and</text> </level> <level label="2"> <text>address residential, commercial, and industrial sectors as appropriate, including low–income communities.</text> </level> </level> <level label="ii"> <text>A plan of the Department shall include:</text> <level label="1"> <text>a definition of “low–income individual” to be used in the procurement or provision of energy efficiency, conservation, and greenhouse gas emissions reduction programs and services;</text> </level> <level label="2"> <text>a description of the steps proposed to ensure insulation materials meet the requirements under § 7–224 of this subtitle; and</text> </level> <level label="3"> <text>a proposed average lifetime measure threshold that:</text> </level> <level label="A"> <text>encourages the delivery of insulation and weatherization measures; and</text> </level> <level label="B"> <text>is developed through a stakeholder engagement process.</text> </level> </level> <level label="iii"> <text>A plan of an electric company shall include the provision or procurement of programs and services for residential beneficial electrification.</text> </level> </level> </level> <level label="d"> <level label="1"> <text>The Commission shall review the plan of each electric company and the Department to determine whether the plan is adequate and cost–effective in achieving the greenhouse gas emissions reduction targets established by the Commission under §§ 7–223(b) and 7–224(a)(2) of this subtitle.</text> </level> <level label="2"> <text>The Commission shall consider any written findings provided by the Maryland Energy Administration, the Department of the Environment, and the Office of People’s Counsel regarding the design and adequacy of the plan.</text> </level> <level label="3"> <text>Subject to paragraph (4) of this subsection, in approving, modifying, or denying the plan of an electric company, the Commission shall consider:</text> <level label="i"> <text>the cost–effectiveness of the residential, commercial, and industrial sector subportfolios by using:</text> <level label="1"> <text>the primary State jurisdiction–specific test, as developed, updated, or approved by the Commission, to determine the cost–effectiveness of a program or service prospectively, including consideration of:</text> </level> <level label="A"> <text>participant nonenergy benefits;</text> </level> <level label="B"> <text>utility nonenergy benefits; and</text> </level> <level label="C"> <text>societal nonenergy benefits; and</text> </level> <level label="2"> <text>a total resource cost test to compare the electricity savings and demand reduction targets of the program or service with the results of similar programs or services implemented in other jurisdictions, including:</text> </level> <level label="A"> <text>participant nonenergy benefits; and</text> </level> <level label="B"> <text>utility nonenergy benefits;</text> </level> </level> <level label="ii"> <text>the impact on rates of each ratepayer class;</text> </level> <level label="iii"> <text>the impact on jobs;</text> </level> <level label="iv"> <text>the impact on the environment; and</text> </level> <level label="v"> <text>the impact on the greenhouse gas emissions reduction targets specified in Title 2, Subtitle 12 of the Environment Article, established by the Commission under §§ 7–223(b) and 7–224(a)(2) of this subtitle.</text> </level> </level> <level label="4"> <text>Nonenergy benefits considered under paragraph (3) of this subsection shall be quantifiable and directly related to a program or service.</text> </level> <level label="5"> <level label="i"> <text>In approving, modifying, or denying the plan of the Department, the Commission shall consider:</text> <level label="1"> <text>subject to subparagraph (ii) of this paragraph, the cost–effectiveness of the plan by using the primary State jurisdiction–specific test, as developed, updated, or approved by the Commission;</text> </level> <level label="2"> <text>the impact on rates of each ratepayer class;</text> </level> <level label="3"> <text>the impact on jobs;</text> </level> <level label="4"> <text>the impact on the environment; and</text> </level> <level label="5"> <text>the impact on the greenhouse gas emissions targets specified in Title 2, Subtitle 12 of the Environment Article, established by the Commission under § 7–223(b) of this subtitle, and specified in § 7–224(a)(2) of this subtitle.</text> </level> </level> <level label="ii"> <text>The programs and services offered by the Department are not required to be cost–effective.</text> </level> </level> </level> <level label="e"> <text>The Department of the Environment shall prepare and submit to the Commission an analysis regarding the adequacy of the plan in supporting the State’s greenhouse gas emissions reduction goals specified in Title 2, Subtitle 12 of the Environment Article, established by the Commission under § 7–223(b) of this subtitle, and required under § 7–224(a)(2) of this subtitle.</text> </level> </section> <section article="gpu" article_name="Public Utilities" number="7-226" title_number="7" title_name="Gas, Electric, and Water Companies" subtitle_number="2" subtitle_name="Electric Generation Facility Planning"> <level label="a"> <level label="1"> <text>Each electric company and the Department shall provide to the Commission every 6 months an update on plan implementation and progress made toward achieving the greenhouse gas emissions reduction targets established by the Commission under § 7–223(b) of this subtitle and required under § 7–224(a)(2) of this subtitle.</text> </level> <level label="2"> <text>The Commission shall monitor and analyze the impact of each program and service to ensure that the outcome of each program and service provides the best possible results.</text> </level> <level label="3"> <text>In monitoring and analyzing the impact of a program or service under paragraph (2) of this subsection, if the Commission finds that the outcome of the program or service may not be providing the best possible results, the Commission shall direct the electric company or the Department to include in its next update under paragraph (1) of this subsection specific measures to address the findings.</text> </level> </level> <level label="b"> <level label="1"> <text>At least once each year, each electric company shall notify affected customers of the energy efficiency and conservation and greenhouse gas reduction charges imposed and benefits conferred.</text> </level> <level label="2"> <text>The notice shall be provided by publication on the company’s website and inclusion with billing information such as a bill insert or bill message.</text> </level> </level> <level label="c"> <text>On or before May 1 each year, the Commission shall report, in accordance with § 2–1257 of the State Government Article, to the General Assembly on:</text> <level label="1"> <text>the status of programs and services approved under this subtitle, including an evaluation of the impact of the programs and services that are directed to low–income communities and other particular classes of ratepayers;</text> </level> <level label="2"> <text>a recommendation for the appropriate funding level to adequately fund these programs and services;</text> </level> <level label="3"> <text>the per capita electricity consumption and the winter and summer peak demand for the previous calendar year; and</text> </level> <level label="4"> <text>beginning in 2026, progress made toward reducing greenhouse gas emissions in accordance with §§ 7–223 and 7–224 of this subtitle.</text> </level> </level> </section> <section article="gpu" article_name="Public Utilities" number="7-227" title_number="7" title_name="Gas, Electric, and Water Companies" subtitle_number="2" subtitle_name="Electric Generation Facility Planning"> <level label="a"> <text>Notwithstanding any other law, the Commission may not require or allow an electric company to require a customer to authorize the electric company to control the amount of the customer’s electricity usage.</text> </level> <level label="b"> <text>A customer may provide consent to participate in a program of an electric company that provides direct load control or other utility manipulation of a customer’s electricity usage.</text> </level> </section> <section article="gpu" article_name="Public Utilities" number="7-228" title_number="7" title_name="Gas, Electric, and Water Companies" subtitle_number="2" subtitle_name="Electric Generation Facility Planning"> <level label="a"> <text>Each electric company shall promote the availability of federal and State rebates, tax credits, and incentives that can be used to support energy efficiency investments, energy efficient and non–fossil–fuel–powered appliances and cooking equipment, breaker box upgrades, and portable heating and cooling equipment.</text> </level> <level label="b"> <text>The Commission shall adopt regulations to carry out this section.</text> </level> </section> <section article="gpu" article_name="Public Utilities" number="7-229" title_number="7" title_name="Gas, Electric, and Water Companies" subtitle_number="2" subtitle_name="Electric Generation Facility Planning"> <text>Nothing in this part prohibits the Commission from approving a demand response program proposed by an electric company if the demand response program is determined to be cost–effective and improve system reliability. </text> </section> <section article="gpu" article_name="Public Utilities" number="7-232" title_number="7" title_name="Gas, Electric, and Water Companies" subtitle_number="2" subtitle_name="Electric Generation Facility Planning"> <level label="a"> <text>In this part the following words have the meanings indicated.</text> </level> <level label="b"> <text>“District energy system” means an underground infrastructure asset whose primary purpose is to provide thermal energy to multiple buildings from a central energy plant or plants.</text> </level> <level label="c"> <text>“Duplicative interconnection request” means an interconnection request that:</text> <level label="1"> <text>is substantially similar to another interconnection request submitted by the large load customer or the customer’s parent company or affiliate;</text> </level> <level label="2"> <text>is submitted to an electric company in the State or in another state in the PJM region; and</text> </level> <level label="3"> <text>if progressed further through the interconnection process, would cause the large load customer to materially change, delay, or withdraw the applicable interconnection request.</text> </level> </level> <level label="d"> <text>“Incremental resources” includes one or a combination of the following facilities and resources, located within the applicable locational deliverability area:</text> <level label="1"> <text>behind–the–meter energy storage facilities;</text> </level> <level label="2"> <text>newly interconnected energy storage facilities; and</text> </level> <level label="3"> <text>purchasing or establishing nonemitting resources within the locational deliverability area, including:</text> <level label="i"> <text>new clean energy generation assets;</text> </level> <level label="ii"> <text>new virtual power plant aggregations; and</text> </level> <level label="iii"> <text>a demand response program that the Commission determines meets the goals established under § 7–234 of this subtitle, including programs administered by PJM.</text> </level> </level> </level> <level label="e"> <level label="1"> <text>“Large load customer” means a commercial or industrial customer for retail electric service that:</text> <level label="i"> <text>has or is projected to have an aggregate monthly demand of at least 25 megawatts; and</text> </level> <level label="ii"> <text>has or is projected to have a load factor of more than 60%.</text> </level> </level> <level label="2"> <text>“Large load customer” does not include a commercial or industrial customer for retail electric service whose primary purpose is to operate as:</text> <level label="i"> <text>a water company or sewage disposal company;</text> </level> <level label="ii"> <text>a manufacturing facility;</text> </level> <level label="iii"> <text>a hospital;</text> </level> <level label="iv"> <text>a district energy system;</text> </level> <level label="v"> <text>an agricultural facility; or</text> </level> <level label="vi"> <text>at the discretion of the Commission, another industrial facility.</text> </level> </level> </level> <level label="f"> <text>“Manufacturing facility” means a facility where the process of substantially transforming, or a substantial step in the process of substantially transforming, tangible personal property into a new and different article of tangible personal property by the use of labor or machinery occurs.</text> </level> <level label="g"> <text>“On–site backup generating facility” means a generating facility that is not connected to the electric system.</text> </level> <level label="h"> <text>“Virtual power plant” means an aggregation of distributed clean energy resources and energy storage owned by a customer or a third party that:</text> <level label="1"> <text>provides electric system services; and</text> </level> <level label="2"> <text>may be used by the customer or the third party for other applications when not providing electric system services.</text> </level> </level> <level label="i"> <text>“Voluntary clean capacity rating program” means the program developed by the Commission under § 7–234 of this subtitle.</text> </level> </section> <section article="gpu" article_name="Public Utilities" number="7-233" title_number="7" title_name="Gas, Electric, and Water Companies" subtitle_number="2" subtitle_name="Electric Generation Facility Planning"> <level label="a"> <text>On or before July 1, 2027, the Commission, by order or regulation, shall establish a large load customer registry to:</text> <level label="1"> <text>provide information relevant to planning at the electric distribution, State, and PJM levels; and</text> </level> <level label="2"> <text>assist in ensuring accurate load forecasts at the electric distribution, State, and PJM levels.</text> </level> </level> <level label="b"> <level label="1"> <text>The Commission shall develop a process for registration under this section.</text> </level> <level label="2"> <text>The process shall:</text> <level label="i"> <text>apply to new or expanded interconnection of large load customers;</text> </level> <level label="ii"> <text>require a large load customer to:</text> <level label="1"> <text>disclose all information about the large load customer as specified in this section;</text> </level> <level label="2"> <text>disclose each of the large load customer’s duplicative interconnection requests and any associated information, as described in this section;</text> </level> <level label="3"> <text>explain how the large load customer’s energy and capacity needs will be served and describe any anticipated arrangements, including arrangements:</text> </level> <level label="A"> <text>with third parties; and</text> </level> <level label="B"> <text>for new or existing generation and energy storage, whether on–site or off–site;</text> </level> <level label="4"> <text>disclose information about the anticipated type of on–site backup generating facility that would be used in the event of a system outage;</text> </level> <level label="5"> <text>disclose information about:</text> </level> <level label="A"> <text>the amount of water that the large load customer will use each month;</text> </level> <level label="B"> <text>the source of the water that will be used; and</text> </level> <level label="C"> <text>the status of an application for a water appropriation or use permit submitted to the Department of the Environment or a water utility;</text> </level> <level label="6"> <text>disclose the status and type of site control for the proposed location of the large load customer’s facility, including ownership or lease control;</text> </level> <level label="7"> <text>disclose energy characteristics of the customer, including:</text> </level> <level label="A"> <text>peak load;</text> </level> <level label="B"> <text>anticipated load factor;</text> </level> <level label="C"> <text>timing of requested service;</text> </level> <level label="D"> <text>load ramp period;</text> </level> <level label="E"> <text>annual energy usage; and</text> </level> <level label="F"> <text>load profile or, if unavailable, a description of the large load customer’s average hourly use;</text> </level> <level label="8"> <text>provide a description of the large load customer’s operation;</text> </level> <level label="9"> <text>disclose the point of interconnection and address or coordinates of the large load customer; and</text> </level> <level label="10"> <text>provide any other information the Commission considers necessary for the purposes identified in subsection (a) of this section; and</text> </level> </level> <level label="iii"> <text>establish any other standards that the Commission considers necessary.</text> </level> </level> </level> <level label="c"> <level label="1"> <text>Except as provided in subsection (e) of this section, a large load customer shall register with the Commission in accordance with this section:</text> <level label="i"> <text>within 30 days after signing a Federal Energy Regulatory Commission–Jurisdictional Agreement with an electric company; or</text> </level> <level label="ii"> <text>within 30 days after an electric company provides to the Commission and the large load customer the information required in paragraph (2) of this subsection.</text> </level> </level> <level label="2"> <text>An electric company shall provide written notice to the Commission and a large load customer when the electric company provides to PJM information related to the large load customer that may impact PJM forecasts or markets.</text> </level> </level> <level label="d"> <text>Electric companies and large load customers shall provide to the Commission within the timelines set by the Commission:</text> <level label="1"> <text>updated information regarding a registered large load customer, including if:</text> <level label="i"> <text>a new duplicative interconnection request becomes known; or</text> </level> <level label="ii"> <text>there is a change in the status of a duplicative interconnection request; and</text> </level> </level> <level label="2"> <text>any other information that the Commission considers relevant.</text> </level> </level> <level label="e"> <level label="1"> <text>Within 60 days after receiving an application for registration under this section, including all information required under subsection (b) of this section, the Commission shall certify whether a registration under this section is complete.</text> </level> <level label="2"> <text>If the Commission determines that the registration information is incomplete, the Commission may extend any time frame provided in an order or regulation adopted in accordance with this section.</text> </level> </level> <level label="f"> <level label="1"> <text>The Commission shall charge a registration fee of not less than $1,000 per megawatt of the peak load of the large load customer.</text> </level> <level label="2"> <text>The fee revenue received under paragraph (1) of this subsection shall be used only as follows:</text> <level label="i"> <text>50% for the electric universal service program established under § 5–5A–08 of the Human Services Article; and</text> </level> <level label="ii"> <text>50% for the program established under § 7–224 of this subtitle.</text> </level> </level> </level> <level label="g"> <level label="1"> <text>The Commission shall impose penalties against a large load customer if the large load customer:</text> <level label="i"> <text>fails to register in accordance with this section; or</text> </level> <level label="ii"> <text>intentionally misleads the Commission in its registration.</text> </level> </level> <level label="2"> <text>The Commission may direct proceeds collected from a penalty imposed under paragraph (1) of this subsection to be provided to existing electric customers in the same service territory as the large load customer.</text> </level> </level> <level label="h"> <level label="1"> <text>Except as specified in paragraph (2) of this subsection, confidential commercial or financial information disclosed to the Commission by a large load customer in accordance with subsection (b)(2)(ii) of this section:</text> <level label="i"> <text>shall be considered protected from disclosure under § 4–335 of the General Provisions Article before the large load customer is operational; and</text> </level> <level label="ii"> <text>may be disclosed by the Commission:</text> <level label="1"> <text>in a manner that is consistent with Title 4 of the General Provisions Article when the large load customer becomes operational; or</text> </level> <level label="2"> <text>notwithstanding item (i) of this paragraph:</text> </level> <level label="A"> <text>in accordance with paragraph (2) of this subsection;</text> </level> <level label="B"> <text>if the information has been made public by any person; or</text> </level> <level label="C"> <text>if the information is aggregated and anonymized as described in subsection (j)(2) of this section.</text> </level> </level> </level> <level label="2"> <text>The Commission shall establish a procedure for the disclosure of confidential commercial and financial information provided in accordance with subsection (b)(2)(ii) of this section to a unit of State government, PJM, or another person if considered appropriate by the Commission and only for the purpose of accurate load forecasting, transmission planning, or other reasons the Commission considers necessary.</text> </level> <level label="3"> <text>A person authorized to access confidential information under paragraph (2) of this subsection shall keep the information accessed confidential.</text> </level> </level> <level label="i"> <text>Beginning July 1, 2027, an electric company may not submit a large load adjustment request to PJM unless the large load customer has completed the registration process under this section.</text> </level> <level label="j"> <level label="1"> <text>On or before October 1, 2027, and each October 1 thereafter, the Commission shall report to the Senate Committee on Education, Energy, and the Environment and the House Environment and Transportation Committee, in accordance with § 2–1257 of the State Government Article, on the large load customer registry required under this section.</text> </level> <level label="2"> <text>The report:</text> <level label="i"> <text>shall include information disclosed in subsection (b)(2)(ii) of this section aggregated by each electric company service territory;</text> </level> <level label="ii"> <text>may not disclose confidential commercial or financial information as described in subsection (b)(2)(ii) of this section unless the information:</text> <level label="1"> <text>consists of energy characteristics identified in subsection (b)(2)(ii)7A, C, and D of this section, provided that the information has been anonymized and projects are only identified by electric company service territory;</text> </level> <level label="2"> <text>is:</text> </level> <level label="A"> <text>used by an electric company for the identification of duplicative interconnection requests both in and outside the State; and</text> </level> <level label="B"> <text>anonymized and projects are identified only by electric company service territory; or</text> </level> <level label="3"> <text>has been previously disclosed to the public; and</text> </level> </level> <level label="iii"> <text>shall include any other information regarding large load customers as a whole in an electric company’s service territory that the Commission considers appropriate.</text> </level> </level> <level label="3"> <text>If there is only one large load customer identified within an electric company service territory that is not the subject of a duplicative interconnection request, the Commission may report that large load customer’s information in an aggregated manner in conjunction with data from an adjacent electric company’s service territory in order to preserve anonymity.</text> </level> <level label="4"> <text>All information provided in the report submitted under this subsection may be used publicly by the Commission.</text> </level> </level> </section> <section article="gpu" article_name="Public Utilities" number="7-234" title_number="7" title_name="Gas, Electric, and Water Companies" subtitle_number="2" subtitle_name="Electric Generation Facility Planning"> <level label="a"> <level label="1"> <text>On or before December 15, 2027, the Commission shall develop a voluntary clean capacity rating program that establishes clean capacity ratings for large load customers that elect to participate in the program, including platinum and gold rating designations.</text> </level> <level label="2"> <text>The rating system shall:</text> <level label="i"> <text>account for a large load customer’s voluntary adoption of demand response and incremental resources; and</text> </level> <level label="ii"> <text>evaluate the extent to which the large load customer provides adequate incremental resources to meet a percentage of its peak load as assigned by PJM and grossed up by the appropriate reserve margin.</text> </level> </level> </level> <level label="b"> <level label="1"> <text>A large load customer may be eligible for a gold or platinum rating under this section only if the large load customer:</text> <level label="i"> <text>ensures that workers constructing the large load customer’s facility are paid not less than the prevailing wage rate determined by the Commissioner of Labor and Industry under Title 17, Subtitle 2 of the State Finance and Procurement Article; and</text> </level> <level label="ii"> <text>enters into a memorandum of understanding with the Commission that:</text> <level label="1"> <text>confirms the large load customer’s commitment to provide and maintain the capacity referenced in subsections (c) and (d) of this section for the life of the facility; and</text> </level> <level label="2"> <text>provides that the large load customer consents to the Commission’s jurisdiction for enforcement of penalty provisions established under paragraph (2) of this subsection.</text> </level> </level> </level> <level label="2"> <level label="i"> <text>The Commission shall establish penalties for a large load customer that violates a memorandum of understanding entered into under paragraph (1)(ii) of this subsection.</text> </level> <level label="ii"> <text>The penalties shall account for both the benefits received by the large load customer and the harm done to the State and ratepayers by the violation.</text> </level> <level label="iii"> <text>Consent under paragraph (1)(ii)2 of this subsection to the enforcement of penalties established in this paragraph shall continue until the Commission provides written notice to the large load customer that relieves the customer from the obligation.</text> </level> </level> </level> <level label="c"> <text>A large load customer may receive a gold rating only if the customer demonstrates that it has adequate incremental resources sufficient to cover the customer’s capacity for at least 80% of the customer’s peak load as assigned by PJM and added together with the appropriate reserve margin through a combination of incremental resources.</text> </level> <level label="d"> <text>A large load customer may receive a platinum rating only if the customer demonstrates that it has adequate incremental resources sufficient to cover the customer’s capacity for 100% of the customer’s peak load as assigned by PJM and added together with the appropriate reserve margin through a combination of incremental resources.</text> </level> <level label="e"> <text>Benefits of receiving a gold or platinum rating include:</text> <level label="1"> <text>for a large load customer that has received a gold rating, prioritization for load studies and interconnection over large load customers that do not have a gold or platinum rating; and</text> </level> <level label="2"> <text>for a large load customer that has received a platinum rating:</text> <level label="i"> <text>prioritization for load studies and interconnection over other large load customers that do not have a platinum rating;</text> </level> <level label="ii"> <text>a guarantee that permit applications submitted to the Department of the Environment shall be processed within 12 months after submission, pending compliance with applicable State and federal laws, including existing environmental justice requirements; and</text> </level> <level label="iii"> <text>the opportunity to procure and provide, before permits are issued, equipment for any substation needed to interconnect the large load customer to the electric system.</text> </level> </level> </level> <level label="f"> <text>A large load customer that does not have a gold or platinum rating is not entitled to the benefits listed in subsection (e) of this section.</text> </level> <level label="g"> <level label="1"> <text>If a large load customer with a platinum rating elects to procure and provide equipment for a substation in accordance with subsection (e)(2)(iii) of this section, the large load customer:</text> <level label="i"> <text>shall provide all the necessary equipment for constructing the substation infrastructure;</text> </level> <level label="ii"> <text>may procure the equipment before the electric company in whose service territory the large load customer is or will be located has issued final permitting approvals; and</text> </level> <level label="iii"> <text>may enter into an agreement with the electric company that details what equipment the electric company may purchase for the construction of the substation, but the entirety of the equipment shall be funded or provided by the large load customer.</text> </level> </level> <level label="2"> <text>Any equipment procured by the large load customer for the construction of a substation under this subsection shall meet the necessary interconnection requirements of the electric company in whose service territory the substation will be located.</text> </level> <level label="3"> <text>Costs incurred as a result of constructing a substation under this subsection may not be passed on to other customers, either through an electric company’s rates or otherwise, and shall be fully borne by the large load customer.</text> </level> <level label="4"> <text>Each electric company shall develop processes and tariffs for review and approval by the Commission to allow for the large load customer to procure and provide equipment under this subsection.</text> </level> <level label="5"> <text>Nothing in this subsection shall relieve a large load customer that does not have a voluntary clean capacity rating from any requirement to pay the cost of constructing a substation completed through the standard permitting and interconnection processes.</text> </level> </level> <level label="h"> <level label="1"> <text>Subject to Commission approval, each electric company shall establish an interconnection process for large load customers that participate in the voluntary clean capacity rating program.</text> </level> <level label="2"> <text>The interconnection process established under this section may not unduly impact the time frame or ability of customers that are not large load customers to interconnect with the electric system.</text> </level> <level label="3"> <text>The interconnection process shall include:</text> <level label="i"> <text>a standard timeline for large load customers that participate in the voluntary clean capacity rating program but do not have a gold or platinum rating; and</text> </level> <level label="ii"> <text>a prioritization process for large load customers with a gold or platinum rating.</text> </level> </level> </level> <level label="i"> <text>Before entering into a contract for electric service, a large load customer that participates in the voluntary clean capacity rating program shall submit a request for a load study under § 4–212 of this article to determine the necessary contract capacity for the large load customer.</text> </level> </section> <section article="gpu" article_name="Public Utilities" number="7-301" title_number="7" title_name="Gas, Electric, and Water Companies" subtitle_number="3" subtitle_name="Consumer Relations"> <level label="a"> <text>A person may not furnish or put in use for revenue billing purposes a gas meter or electric meter unless the Commission has authorized the meter’s use.</text> </level> <level label="b"> <level label="1"> <text>Each gas company and electric company shall maintain suitable equipment, approved by the Commission, for testing the accuracy of a gas meter or electric meter furnished by the company for use by its customers.</text> </level> <level label="2"> <text>The gas company or electric company shall test a customer’s meter with the equipment in accordance with § 7–302 of this subtitle.</text> </level> <level label="3"> <text>A small rural electric cooperative described in § 7–502(a) of this title may satisfy this section by demonstrating that the electric meters which it furnishes to customers comply with the standards of the utility regulatory body of the state in which the cooperative has its principal place of business.</text> </level> </level> <level label="c"> <level label="1"> <text>This subsection applies to:</text> <level label="i"> <text>a new residential multiple occupancy building;</text> </level> <level label="ii"> <text>a new shopping center; or</text> </level> <level label="iii"> <text>a new housing unit that is constructed, managed, operated, developed, or subsidized by a local housing authority established under Division II of the Housing and Community Development Article.</text> </level> </level> <level label="2"> <text>The service restrictions imposed under this subsection do not apply to central hot water.</text> </level> <level label="3"> <text>The Commission may not authorize a gas company or electric company to service an occupancy unit or shopping center unit subject to this subsection unless the building or shopping center has individual metered service or submetering as provided under § 7–303 or § 7–304 of this subtitle for each individually leased or owned occupancy unit or shopping center unit.</text> </level> <level label="4"> <text>In accordance with its regulations, the Commission may authorize a gas company or electric company to provide service for central heating or cooling systems, or a combination of those systems, to an occupancy unit or shopping center unit subject to this subsection if the Commission is satisfied that the service will result in a substantial net saving of energy over the energy saving that would result from individual metering or submetering as provided under § 7–303 or § 7–304 of this subtitle.</text> </level> </level> <level label="d"> <text>The owner, operator, or manager of a residential multiple occupancy building or shopping center subject to this section may not impose a utility cost on an occupancy unit or shopping center unit, except for charges that:</text> <level label="1"> <text>the Commission authorizes the gas company or electric company to impose; and</text> </level> <level label="2"> <text>the gas company or electric company actually imposes on the owner, operator, or manager.</text> </level> </level> </section> <section article="gpu" article_name="Public Utilities" number="7-302" title_number="7" title_name="Gas, Electric, and Water Companies" subtitle_number="3" subtitle_name="Consumer Relations"> <level label="a"> <level label="1"> <text>By written request, a consumer may compel the Commission to inspect and test the consumer’s electric meter or gas meter.</text> </level> <level label="2"> <text>The consumer is entitled to be present for the test.</text> </level> </level> <level label="b"> <level label="1"> <text>The Commission shall set a percentage tolerance limit for the accuracy of an electric meter or gas meter.</text> </level> <level label="2"> <text>The Commission shall order a gas company or electric company to replace a meter at the company’s expense if the meter is incorrect to the prejudice of the consumer by more than the percentage tolerance limit set by the Commission.</text> </level> </level> <level label="c"> <level label="1"> <text>The Commission shall set a uniform reasonable fee for meter test services under this section.</text> </level> <level label="2"> <level label="i"> <text>If the test indicates that the meter is within the percentage tolerance limit set by the Commission under subsection (b)(1) of this section, the consumer shall pay the test fee.</text> </level> <level label="ii"> <text>If the test indicates that the meter is not within the percentage tolerance limit set by the Commission, the Commission shall refund the fee.</text> </level> </level> </level> </section> <section article="gpu" article_name="Public Utilities" number="7-303" title_number="7" title_name="Gas, Electric, and Water Companies" subtitle_number="3" subtitle_name="Consumer Relations"> <level label="a"> <level label="1"> <text>In this section the following words have the meanings indicated.</text> </level> <level label="2"> <level label="i"> <text>“Apartment house” means one or more buildings that each contain more than two dwelling units and in which all the dwelling units are occupied primarily for nontransient use with rent paid at intervals of 1 week or longer.</text> </level> <level label="ii"> <text>“Apartment house” includes a residential condominium or cooperative, whether the units are rented or owner occupied.</text> </level> </level> <level label="3"> <text>“Commercial rental unit” means any leased premises used for retail, commercial, clerical, or professional purposes.</text> </level> <level label="4"> <text>“Dwelling unit” means premises that consist of one or more rooms suitable for occupancy as a residence and that contain kitchen and bathroom facilities.</text> </level> <level label="5"> <text>“Office building” means one or more buildings that each contain two or more commercial rental units.</text> </level> <level label="6"> <text>“Shopping center” means any combination of privately owned commercial, professional, or retail establishments to which the general public is invited for business purposes.</text> </level> <level label="7"> <text>“Submetering” means the installation of equipment to determine the actual use of gas or electricity for each:</text> <level label="i"> <text>residential unit in an apartment house; or</text> </level> <level label="ii"> <text>commercial rental unit in an office building or shopping center.</text> </level> </level> </level> <level label="b"> <text>An apartment house, office building, or shopping center that contains a combination of dwelling units or commercial rental units is included under the requirements of this section.</text> </level> <level label="c"> <text>Subject to the provisions of this section, and with the approval of the Commission, a local housing authority established under Division II of the Housing and Community Development Article may submeter any combination of apartment houses, commercial rental units, dwelling units, office buildings, and shopping centers.</text> </level> <level label="d"> <level label="1"> <text>Notwithstanding any other law, the Commission shall adopt regulations to establish standards:</text> <level label="i"> <text>by which an owner, operator, or manager of an apartment house, office building, or shopping center may install submetering equipment for each dwelling unit or commercial rental unit that is not individually metered for gas or electricity; and</text> </level> <level label="ii"> <text>to allocate fairly the cost of each unit’s gas or electrical consumption.</text> </level> </level> <level label="2"> <level label="i"> <text>An owner, operator, or manager of an apartment house, office building, or shopping center who installs submetering equipment under this section to provide bulk metered service may not impose on a unit in the facility any utility cost except the charges that the Commission authorizes and that the gas company or electric company actually imposes on the owner, operator, or manager.</text> </level> <level label="ii"> <text>The charges imposed under subparagraph (i) of this paragraph shall be allocated among the units in proportion to the actual usage of cubic feet or kilowatt hours by the unit.</text> </level> <level label="iii"> <text>The owner, operator, or manager of an apartment house, office building, or shopping center may collect an additional service charge not exceeding $1 per unit per month to cover administrative costs and billing.</text> </level> </level> <level label="3"> <level label="i"> <text>The requirements of this paragraph do not apply to units constructed, managed, operated, developed, or subsidized by a local housing authority established under Division II of the Housing and Community Development Article.</text> </level> <level label="ii"> <text>If the owner, operator, or manager of an apartment house, office building, or shopping center installs submeters during the term of a lease or agreement that includes the cost of gas or electricity consumed for the unit, the owner, operator, or manager shall:</text> <level label="1"> <text>determine the amount of gas or electric costs saved by that unit; and</text> </level> <level label="2"> <text>pass that amount on to the unit’s occupant as a payment or reduction in rent.</text> </level> </level> </level> <level label="4"> <text>All submetering equipment under this section is subject to:</text> <level label="i"> <text>the regulations and standards that the Commission adopts for the accuracy, testing, and record keeping of meters that gas companies or electric companies install; and</text> </level> <level label="ii"> <text>the meter requirements of §§ 7-301 and 7-302 of this subtitle.</text> </level> </level> </level> <level label="e"> <text>The regulations that the Commission adopts under this section shall:</text> <level label="1"> <text>include appropriate safeguards for the occupant of the dwelling unit or commercial rental unit;</text> </level> <level label="2"> <text>require that the utility costs and charges on each unit be imposed in accordance with subsection (d)(2) of this section; and</text> </level> <level label="3"> <text>require that the owner, operator, or manager of the apartment house, office building, or shopping center:</text> <level label="i"> <text>maintain adequate records regarding submetering; and</text> </level> <level label="ii"> <text>allow the occupant of the unit to inspect the records during reasonable business hours.</text> </level> </level> </level> <level label="f"> <text>A regulation or standard that the Commission adopts under this section may be enforced under §§ 3-104 and 13-101 of this article.</text> </level> <level label="g"> <text>The owner, operator, or manager of an apartment house, office building, or shopping center:</text> <level label="1"> <text>may not be considered a public service company; and</text> </level> <level label="2"> <text>may use metering equipment only to allocate fairly the costs of gas or electric service among the occupants of the apartment house, office building, or shopping center in accordance with subsection (e) of this section.</text> </level> </level> <level label="h"> <level label="1"> <text>A complaint by an occupant of a dwelling unit or commercial rental unit against an owner, operator, or manager of an apartment house, office building, or shopping center under this section may be filed in the county or municipal corporation where the apartment house, office building, or shopping center is located.</text> </level> <level label="2"> <text>A complaint filed under paragraph (1) of this subsection may be handled by:</text> <level label="i"> <text>the landlord-tenant commission, if one exists, of the county or municipal corporation;</text> </level> <level label="ii"> <text>the consumer protection agency, if one exists, of the county or municipal corporation if there is not a landlord-tenant commission in the county or municipal corporation;</text> </level> <level label="iii"> <text>the Consumer Protection Division of the Office of the Attorney General, if there is not a consumer protection agency in the county or municipal corporation; or</text> </level> <level label="iv"> <text>any other State or local government unit or office designated to handle tenants’ complaints.</text> </level> </level> </level> <level label="i"> <text>This section does not affect the right of an owner, operator, or manager of an apartment house, office building, or shopping center to redistribute gas or electricity to tenants or occupants.</text> </level> </section> <section article="gpu" article_name="Public Utilities" number="7-304" title_number="7" title_name="Gas, Electric, and Water Companies" subtitle_number="3" subtitle_name="Consumer Relations"> <level label="a"> <level label="1"> <text>In this section the following words have the meanings indicated.</text> </level> <level label="2"> <text>“Apartment house” has the meaning stated in § 7-303(a) of this subtitle.</text> </level> <level label="3"> <text>“Dwelling unit” has the meaning stated in § 7-303(a) of this subtitle.</text> </level> <level label="4"> <text>“Energy allocation system” means a method of determining the approximate energy use within an individual dwelling unit by a measuring device that the Commission approves.</text> </level> </level> <level label="b"> <level label="1"> <text>Approval from the Commission is required before energy allocation equipment and procedures may be used by the owner, operator, or manager of an apartment house to determine the amount of gas or electricity used by an individual dwelling unit, if the amount of gas or electricity is determined by means other than by actual measurement of fuel or electric power consumed by the unit.</text> </level> <level label="2"> <text>An energy allocation system may not be used for direct billing of energy costs to the tenant of an individual dwelling unit unless the Commission approves the system in accordance with this subsection.</text> </level> </level> <level label="c"> <level label="1"> <text>The Commission shall adopt regulations that specify the conditions under which the energy allocation equipment and procedures approved by it under subsection (b) of this section may be implemented.</text> </level> <level label="2"> <text>The regulations shall include requirements that the owner, operator, or manager of an apartment house shall use to inform consumers about estimated energy costs.</text> </level> </level> <level label="d"> <text>The Commission shall send any complaint it receives about an individual dwelling unit’s gas or electric power consumption to the Office of the Attorney General, Consumer Protection Division, if the dwelling unit’s gas or electric power consumption is determined by the use of energy allocation equipment and procedures approved by the Commission under subsection (b) of this section.</text> </level> </section> <section article="gpu" article_name="Public Utilities" number="7-305" title_number="7" title_name="Gas, Electric, and Water Companies" subtitle_number="3" subtitle_name="Consumer Relations"> <level label="a"> <text>A gas company or electric company may bill its customers for gas, electricity, or any other service it renders only on the basis of the net total cost of the service under the applicable rate that is filed for that service.</text> </level> <level label="b"> <level label="1"> <text>The Commission may authorize a gas company or electric company to apply an additional charge over the net total cost to any bill or part of a bill that is not paid:</text> <level label="i"> <text>within 20 days for a residential customer or residential cooperative; or</text> </level> <level label="ii"> <text>within 15 days for any other customer.</text> </level> </level> <level label="2"> <level label="i"> <text>The additional charge that is applied by a gas company or electric company under this subsection may not exceed 5% of the net bill or part of the bill.</text> </level> <level label="ii"> <text>Unless the Commission approves the imposition of different charges on different classes of customers, any additional charges applied by a gas company or electric company under this subsection shall be uniform for all customers.</text> </level> </level> </level> </section> <section article="gpu" article_name="Public Utilities" number="7-306" title_number="7" title_name="Gas, Electric, and Water Companies" subtitle_number="3" subtitle_name="Consumer Relations"> <level label="a"> <level label="1"> <text>In this section the following words have the meanings indicated.</text> </level> <level label="2"> <text>“Biomass” means “qualified biomass” as defined in § 7–701 of this title.</text> </level> <level label="3"> <text>“Closed conduit hydro” means a hydroelectric generating facility that:</text> <level label="i"> <text>generates electricity within existing piping or limited adjacent piping of a potable water supply system;</text> </level> <level label="ii"> <text>is owned or operated by a municipal corporation or public water authority; and</text> </level> <level label="iii"> <text>is designed to produce less energy than is consumed to operate the water supply system.</text> </level> </level> <level label="4"> <text>“Community solar energy generating system” has the meaning stated in § 7–306.2 of this subtitle.</text> </level> <level label="5"> <text>“Community solar energy generating system program” means a program administered by an electric company in accordance with § 7–306.2 of this subtitle.</text> </level> <level label="6"> <text>“Eligible customer–generator” means a customer that owns and operates, leases and operates, or contracts with a third party that owns and operates a biomass, micro combined heat and power, solar, fuel cell, wind, or closed conduit hydro electric generating facility that:</text> <level label="i"> <text>is located on the customer’s premises or contiguous property;</text> </level> <level label="ii"> <text>is interconnected and operated in parallel with an electric company’s transmission and distribution facilities; and</text> </level> <level label="iii"> <text>is intended primarily to offset all or part of the customer’s own electricity requirements.</text> </level> </level> <level label="7"> <text>“Fuel cell” means an electric generating facility that:</text> <level label="i"> <text>includes integrated power plant systems containing a stack, tubular array, or other functionally similar configuration used to electrochemically convert fuel to electric energy; and</text> </level> <level label="ii"> <text>may include:</text> <level label="1"> <text>an inverter and fuel processing system; and</text> </level> <level label="2"> <text>other plant equipment to support the plant’s operation or its energy conversion, including heat recovery equipment.</text> </level> </level> </level> <level label="8"> <text>“Micro combined heat and power” means the simultaneous or sequential production of useful thermal energy and electrical or mechanical power not exceeding 30 kilowatts.</text> </level> <level label="9"> <text>“Net energy metering” means measurement of the difference between the electricity that is supplied by an electric company and the electricity that is generated by an eligible customer–generator and fed back to the electric grid over the eligible customer–generator’s billing period.</text> </level> <level label="10"> <text>“Net excess generation” means the amount of the electricity generated by an eligible customer–generator that is in excess of the electricity consumed by the eligible customer–generator and that results in a negative kilowatt–hour reading at the end of the eligible customer–generator’s billing cycle.</text> </level> <level label="11"> <level label="i"> <text>“Repowered” means a solar energy generating system owned by an eligible customer–generator or a community solar energy generating system that, through a single action or a series of actions, has had replaced more than 80% of the direct current nameplate capacity of the photovoltaic modules at the system as of the date the system was originally placed in service under this section.</text> </level> <level label="ii"> <text>“Repowered” does not include:</text> <level label="1"> <text>routine equipment repair and maintenance, including the replacement of equipment during routine repair and maintenance with equipment that has similar or improved ratings, impedances, efficiencies, or capabilities;</text> </level> <level label="2"> <text>roof replacement or other project site maintenance;</text> </level> <level label="3"> <text>the remediation of equipment defects;</text> </level> <level label="4"> <text>the remediation of damage caused by a natural disaster, an act of God, fire, vandalism, theft, or another casualty event; or</text> </level> <level label="5"> <text>replacements required by a governmental authority or electric company.</text> </level> </level> </level> </level> <level label="b"> <text>The General Assembly finds and declares that a program to provide net energy metering for eligible customer–generators is a means to encourage private investment in renewable energy resources, stimulate in–State economic growth, enhance continued diversification of the State’s energy resource mix, and reduce costs of interconnection and administration.</text> </level> <level label="c"> <text>An electric company serving an eligible customer–generator shall ensure that the meter installed for net energy metering is capable of measuring the flow of electricity in two directions.</text> </level> <level label="d"> <level label="1"> <text>The Commission shall require electric utilities to develop a standard contract or tariff for net energy metering and make it available to eligible customer–generators on a first–come, first–served basis until the earlier of:</text> <level label="i"> <text>the date on which the rated generating capacity owned and operated by eligible customer–generators in the State reaches 3,000 megawatts; or</text> </level> <level label="ii"> <text>July 1, 2027.</text> </level> </level> <level label="2"> <text>Notwithstanding paragraph (1)(ii) of this subsection and except as provided in paragraph (3) of this subsection, if the 3,000–megawatt limit in paragraph (1)(i) of this subsection has not been met, a community solar energy generating system that is placed in service after July 1, 2027, shall be eligible for net energy metering under this section if:</text> <level label="i"> <text>the system:</text> <level label="1"> <text>on or before July 1, 2027, received a community solar program queue position under § 7–306.2 of this subtitle and paid a deposit to the electric company equal to at least 50% of the electric company’s estimate of all necessary interconnection fees; and</text> </level> <level label="2"> <text>except as provided in paragraph (4) of this subsection, is placed in service on or before July 1, 2030; and</text> </level> </level> <level label="ii"> <text>the electric company in whose service territory the community solar energy generating system is located has not met the net energy metering capacity limit under paragraph (3)(i) of this subsection.</text> </level> </level> <level label="3"> <level label="i"> <text>Subject to subparagraphs (ii) and (iii) of this paragraph, for an electric company with a 2025 annual peak demand of 2,500 megawatts or less, the net energy metering capacity limit for community solar energy generating systems that are placed in service in the electric company’s service territory on or after April 1, 2026, shall be 150% of the total combined rated generating capacity of community solar energy generating systems that had not been placed in service but hold queue positions in a community solar energy generating system program in the electric company’s service territory on April 1, 2026.</text> </level> <level label="ii"> <text>If the 150% net energy metering capacity limit established under subparagraph (i) of this paragraph in an electric company’s service territory is reached, the electric company shall:</text> <level label="1"> <text>close the net energy metering contract or tariff under this section to any community solar energy generating systems that do not already hold queue positions; and</text> </level> <level label="2"> <text>notify the Commission.</text> </level> </level> <level label="iii"> <text>A community solar energy generating system holding a queue position in a community solar energy generating system program in the electric company’s service territory that is placed in service on or after April 1, 2026, shall continue to count toward the 150% net energy metering capacity limit established under subparagraph (i) of this paragraph.</text> </level> </level> <level label="4"> <level label="i"> <text>If the Commission does not implement a successor program under § 7–306.4 of this subtitle by July 1, 2027, a community solar energy generating system that has not been placed in service by July 1, 2027, but meets the requirements of paragraph (2)(i)1 and (ii) of this subsection shall be eligible for net energy metering under this section if it is placed in service on or before 3 years after the date that the successor program is implemented.</text> </level> <level label="ii"> <text>The Commission may grant an extension to the deadlines under paragraph (2)(i) of this subsection and subparagraph (i) of this paragraph if the community solar energy generating system was unable to meet the deadline, including inability to meet the deadline due to any of the following reasons:</text> <level label="1"> <text>a force majeure event, as determined by the Commission;</text> </level> <level label="2"> <text>failure by a government or municipal authority to timely complete an action necessary to authorize or enable any portion of the project construction;</text> </level> <level label="3"> <text>failure of an electric company to comply with a Commission order, regulation, statute, or tariff; or</text> </level> <level label="4"> <text>the system is ready to be placed in service and is waiting only on the electric company to grant the system permission to operate.</text> </level> </level> </level> <level label="5"> <text>An eligible customer–generator that, on July 1, 2027, is under a net energy metering contract or tariff under this section or a community solar energy generating system that meets the requirements of paragraph (2) of this subsection shall remain eligible for net energy metering under this section until the earlier of when:</text> <level label="i"> <text>the system is decommissioned in accordance with § 7–218(g) of this title;</text> </level> <level label="ii"> <text>the system is modified to increase:</text> <level label="1"> <text>the net power flow injection into the electric system due to the addition of more photovoltaic modules than were present as of the date the system was originally placed in service under this section; or</text> </level> <level label="2"> <text>the alternating current output capacity to be more than when the system was originally placed into service under this section;</text> </level> </level> <level label="iii"> <text>the system enters into a new interconnection agreement; or</text> </level> <level label="iv"> <text>the system is repowered.</text> </level> </level> </level> <level label="e"> <level label="1"> <text>A net energy metering contract or tariff shall be identical, in energy rates, rate structure, and monthly charges, to the contract or tariff that the customer would be assigned if the customer were not an eligible customer–generator.</text> </level> <level label="2"> <level label="i"> <text>A net energy metering contract or tariff may not include charges that would raise the eligible customer–generator’s minimum monthly charge above that of customers of the rate class to which the eligible customer–generator would otherwise be assigned.</text> </level> <level label="ii"> <text>Charges prohibited by this paragraph include new or additional demand charges, standby charges, customer charges, and minimum monthly charges.</text> </level> </level> </level> <level label="f"> <level label="1"> <text>The electric company shall calculate net energy metering in accordance with this subsection.</text> </level> <level label="2"> <text>Net energy produced or consumed on a regular basis shall be measured in accordance with standard metering practices.</text> </level> <level label="3"> <text>If electricity supplied by the grid exceeds electricity generated by the eligible customer–generator during a month, the eligible customer–generator shall be billed for the net energy supplied in accordance with subsection (e) of this section.</text> </level> <level label="4"> <text>If electricity generated by the eligible customer–generator exceeds the electricity supplied by the grid, the eligible customer–generator shall be billed only customer charges for that month in accordance with subsection (e) of this section.</text> </level> <level label="5"> <level label="i"> <text>An eligible customer–generator under paragraph (4) of this subsection may:</text> <level label="1"> <text>accrue net excess generation for a period:</text> </level> <level label="A"> <text>not to exceed 12 months; and</text> </level> <level label="B"> <text>that ends with the billing cycle that is complete immediately prior to the end of April of each year; or</text> </level> <level label="2"> <text>except for an eligible customer–generator served by a municipal electric utility or an electric cooperative and subject to subparagraph (iv) of this paragraph, accrue net excess generation for an indefinite period regardless of whether the eligible customer–generator previously accrued net excess generation for a period authorized under item 1 of this subparagraph.</text> </level> </level> <level label="ii"> <text>The electric company shall carry forward net excess generation until:</text> <level label="1"> <text>the eligible customer–generator’s consumption of electricity from the grid eliminates the net excess generation;</text> </level> <level label="2"> <text>the accrual period under subparagraph (i)1 of this paragraph expires; or</text> </level> <level label="3"> <text>the account is closed.</text> </level> </level> <level label="iii"> <level label="1"> <text>If an eligible customer–generator elects to accrue net excess generation for a period not to exceed 12 months under subparagraph (i)1 of this paragraph, the dollar value of net excess generation shall be equal to the generation or commodity portion of the rate that the eligible customer–generator would have been charged by the electric company averaged over the previous 12–month period ending with the billing cycle that is complete immediately before the end of April multiplied by the number of kilowatt–hours of net excess generation.</text> </level> <level label="2"> <text>For an eligible customer–generator that elects to accrue net excess generation under subparagraph (i)1 of this paragraph and is served by a community choice aggregator or an electricity supplier, the dollar value of the net excess generation shall be equal to the generation or commodity rate that the customer would have been charged by the community choice aggregator or electricity supplier multiplied by the number of kilowatt–hours of net excess generation.</text> </level> </level> <level label="iv"> <text>If an eligible customer–generator elects to accrue net excess generation for an indefinite period under subparagraph (i)2 of this paragraph:</text> <level label="1"> <text>the eligible customer–generator may not elect to switch to accruing net excess generation under subparagraph (i)1 of this paragraph unless the electric company approves the switch; and</text> </level> <level label="2"> <text>the electric company shall, within 15 days after an eligible customer–generator’s account is closed, pay the eligible customer–generator, in accordance with subparagraph (v) of this paragraph, for any accrued net excess generation remaining at the time the account is closed.</text> </level> </level> <level label="v"> <text>The Commission shall establish a method for calculating the value of any accrued net excess generation that a customer–generator elects to accrue for an indefinite period under subparagraph (i)2 of this paragraph.</text> </level> </level> <level label="6"> <level label="i"> <text>If an eligible customer–generator elects to accrue net excess generation under paragraph (5)(i)1 of this subsection, on or before 30 days after the billing cycle that is complete immediately prior to the end of April of each year, the electric company shall pay the eligible customer–generator for the dollar value of any accrued net excess generation remaining at the end of the previous 12–month period ending with the billing cycle that is complete immediately before the end of April.</text> </level> <level label="ii"> <text>Within 15 days after the date an eligible customer–generator that elects to accrue net excess generation under paragraph (5)(i)1 of this subsection closes the eligible customer–generator’s account, the electric company shall pay the eligible customer–generator for the dollar value of any accrued net excess generation remaining at the time the eligible customer–generator closes the account.</text> </level> </level> <level label="7"> <level label="i"> <text>Notwithstanding paragraphs (5) and (6) of this subsection, an eligible customer–generator served by an electric cooperative that serves a population of less than 250,000 in its distribution territory may choose to be paid for the dollar value of net excess generation remaining at the end of each month instead of at the end of the accrual period specified under paragraph (5)(i)1 of this subsection.</text> </level> <level label="ii"> <text>If an eligible customer–generator chooses to be paid for the dollar value of net excess generation remaining at the end of each month:</text> <level label="1"> <text>the customer–generator may accrue net excess generation on a monthly basis;</text> </level> <level label="2"> <text>the dollar value of the net excess generation shall be equal to the generation or commodity portion of the rate that the eligible customer–generator would have been charged by the electric company for the previous month; and</text> </level> <level label="3"> <text>on or before 30 days after the end of each month, the electric cooperative shall pay the eligible customer–generator for the dollar value of net excess generation remaining at the end of the previous month.</text> </level> </level> </level> </level> <level label="g"> <level label="1"> <text>Except as provided in paragraphs (6), (7), and (8) of this subsection, the generating capacity of an electric generating system used by an eligible customer–generator for net metering may not exceed 2 megawatts.</text> </level> <level label="2"> <text>An electric generating system used by an eligible customer–generator for net metering shall meet all applicable safety and performance standards established by the National Electrical Code, the Institute of Electrical and Electronics Engineers, and Underwriters Laboratories.</text> </level> <level label="3"> <text>The Commission may adopt by regulation additional control and testing requirements for eligible customer–generators that the Commission determines are necessary to protect public safety and system reliability.</text> </level> <level label="4"> <text>An electric company may not require an eligible customer–generator whose electric generating system meets the standards of paragraphs (2) and (3) of this subsection to:</text> <level label="i"> <text>install additional controls;</text> </level> <level label="ii"> <text>perform or pay for additional tests; or</text> </level> <level label="iii"> <text>purchase additional liability insurance.</text> </level> </level> <level label="5"> <text>An eligible customer–generator or the eligible customer–generator’s assignee shall own and have title to all renewable energy attributes or renewable energy credits associated with any electricity produced by its electric generating system.</text> </level> <level label="6"> <text>The Commission may not prohibit the construction or operation of multiple net metered solar energy generating facilities located on separate contiguous lots that are owned by a local government solely because the capacity of the combined net metering systems exceeds the limit established under paragraph (1) of this subsection, if:</text> <level label="i"> <text>the net metered solar energy generating facilities are intended to be used solely for the benefit of the local government;</text> </level> <level label="ii"> <text>the total capacity of the net metered solar energy generating facilities on the contiguous lots does not exceed 5 megawatts;</text> </level> <level label="iii"> <text>the contiguous lots were not subdivided for the purpose of circumventing the limit established under paragraph (1) of this subsection; and</text> </level> <level label="iv"> <text>the utility serving the net metered solar energy generating facilities is not an electric cooperative or municipal electric utility.</text> </level> </level> <level label="7"> <text>The generating capacity of a community solar energy generating system established under § 7–306.2 of this subtitle that is used for net metering may not exceed 5 megawatts.</text> </level> <level label="8"> <text>The generating capacity of a net metered facility that is meter aggregated under § 7–306.3 of this subtitle may not exceed 5 megawatts.</text> </level> </level> <level label="h"> <text>An eligible customer–generator participating in net energy metering may participate in the aggregation activities of a community choice aggregator under § 7–510.3 of this title.</text> </level> <level label="i"> <text>Notwithstanding the generating capacity limits established in subsection (g) of this section, an eligible customer–generator participating in meter aggregation under § 7–306.2 or § 7–306.3 of this subtitle may receive excess generation from more than one generating system, including if the combined generating capacity of all net metered facilities that are meter aggregated exceeds 5 megawatts.</text> </level> <level label="j"> <text>On or before November 1 of each year, the Commission shall report to the General Assembly, in accordance with § 2–1257 of the State Government Article, on the status of the net energy metering program under this section and § 7–306.4 of this subtitle, including:</text> <level label="1"> <text>the amount of capacity of electric generating facilities owned and operated by eligible customer–generators in the State by type of energy resource;</text> </level> <level label="2"> <text>based on the need to encourage a diversification of the State’s energy resource mix to ensure reliability, whether the rated generating capacity limit in subsection (d) of this section should be altered;</text> </level> <level label="3"> <text>the status of the implementation and efficacy of the successor program developed and implemented under § 7–306.4 of this subtitle; and</text> </level> <level label="4"> <text>other pertinent information.</text> </level> </level> </section> <section article="gpu" article_name="Public Utilities" number="7-306.1" title_number="7" title_name="Gas, Electric, and Water Companies" subtitle_number="3" subtitle_name="Consumer Relations"> <level label="a"> <text>A person who is negotiating a contract with an eligible customer–generator to install a solar electric generating facility on the customer–generator’s property that the customer–generator owns and operates, leases and operates, or contracts with a third party that owns and operates and that requires interconnection with an electric company’s distribution facilities:</text> <level label="1"> <text>shall submit to the customer–generator’s electric company a completed application for interconnection of the solar electric generating facility with the electric company’s distribution facilities;</text> </level> <level label="2"> <text>before receiving the electric company’s approval of the application submitted under paragraph (1) of this subsection:</text> <level label="i"> <text>may accept payment from the customer–generator in connection with the contract; but</text> </level> <level label="ii"> <text>may not begin installation of the solar electric generating facility on the customer–generator’s property;</text> </level> </level> <level label="3"> <text>shall notify the customer–generator of the electric company’s approval or disapproval of the application submitted under paragraph (1) of this subsection; and</text> </level> <level label="4"> <text>if the electric company disapproves the application submitted under paragraph (1) of this subsection, shall fully refund any payment from the customer–generator under paragraph (2)(i) of this subsection.</text> </level> </level> <level label="b"> <text>On request of a person under subsection (a)(1) of this section, an electric company shall process an application submitted under subsection (a)(1) of this section and notify the person whether the application is approved or disapproved in accordance with a process and time frame specified in regulations adopted by the Commission.</text> </level> <level label="c"> <level label="1"> <text>In this subsection, “installation process” includes:</text> <level label="i"> <text>an approved application submitted under subsection (a)(1) of this section;</text> </level> <level label="ii"> <text>completion of the installation of the customer–generator’s solar electric generating facility and any required electric distribution system upgrades; and</text> </level> <level label="iii"> <text>completion of all necessary paperwork and documentation, including a signed interconnection agreement, certificate of completion, and an inspection certificate.</text> </level> </level> <level label="2"> <level label="i"> <text>Subject to subparagraph (ii) of this paragraph, an electric company shall issue acceptance and final approval to operate a customer–generator’s solar electric generating facility on the electric company’s distribution facilities within 20 business days after the completion of the installation process and receipt of the paperwork and documentation set forth in paragraph (1)(iii) of this subsection.</text> </level> <level label="ii"> <text>An electric company shall complete the interconnection requirements under subparagraph (i) of this paragraph for at least 90% of installation processes completed during the year in the electric company’s service territory.</text> </level> </level> <level label="3"> <text>The Commission may temporarily waive the requirements under paragraph (2) of this subsection in an electric company’s service territory on a showing of good cause.</text> </level> </level> </section> <section article="gpu" article_name="Public Utilities" number="7-306.2" title_number="7" title_name="Gas, Electric, and Water Companies" subtitle_number="3" subtitle_name="Consumer Relations"> <level label="a"> <level label="1"> <text>In this section the following words have the meanings indicated.</text> </level> <level label="2"> <level label="i"> <text>“Agrivoltaics” means the simultaneous use of areas of land:</text> <level label="1"> <text>that are maintained in agricultural use in accordance with COMAR 18.02.03 or the Maryland Assessment Procedures Manual; and</text> </level> <level label="2"> <text>for both solar power generation and:</text> </level> <level label="A"> <text>raising grains, fruits, herbs, melons, mushrooms, nuts, seeds, tobacco, or vegetables;</text> </level> <level label="B"> <text>raising poultry, including chickens and turkeys, for meat or egg production;</text> </level> <level label="C"> <text>dairy production, such as the raising of milking cows;</text> </level> <level label="D"> <text>raising livestock, including cattle, sheep, goats, or pigs;</text> </level> <level label="E"> <text>horse boarding, breeding, or training;</text> </level> <level label="F"> <text>turf farming;</text> </level> <level label="G"> <text>raising ornamental shrubs, plants, or flowers, including aquatic plants;</text> </level> <level label="H"> <text>aquaculture;</text> </level> <level label="I"> <text>silviculture; or</text> </level> <level label="J"> <text>any other activity recognized as an agricultural activity under COMAR 18.02.03 or the Maryland Assessment Procedures Manual.</text> </level> </level> <level label="ii"> <text>“Agrivoltaics” does not include the simultaneous use of areas of land for both solar power generation and:</text> <level label="1"> <text>apiaries; or</text> </level> <level label="2"> <text>pollinator habitat.</text> </level> </level> </level> <level label="3"> <text>“Baseline annual usage” means:</text> <level label="i"> <text>a subscriber’s accumulated electricity use in kilowatt–hours for the 12 months before the subscriber’s most recent subscription; or</text> </level> <level label="ii"> <text>for a subscriber that does not have a record of 12 months of electricity use at the time of the subscriber’s most recent subscription, an estimate of the subscriber’s accumulated 12 months of electricity use in kilowatt–hours, determined in a manner the Commission approves.</text> </level> </level> <level label="4"> <text>“Community solar energy generating system” means a solar energy system that:</text> <level label="i"> <text>is connected to the electric distribution system serving the State;</text> </level> <level label="ii"> <text>is located in the same electric service territory as its subscribers;</text> </level> <level label="iii"> <text>is attached to the electric meter of a subscriber or is a separate facility with its own electric meter;</text> </level> <level label="iv"> <text>credits its generated electricity, or the value of its generated electricity, to the bills of the subscribers to that system through virtual net energy metering;</text> </level> <level label="v"> <text>has at least two subscribers but no limit to the maximum number of subscribers;</text> </level> <level label="vi"> <text>does not have subscriptions larger than 200 kilowatts constituting more than 60% of its kilowatt–hour output;</text> </level> <level label="vii"> <text>has a generating capacity that does not exceed 5 megawatts as measured by the alternating current rating of the system’s inverter;</text> </level> <level label="viii"> <text>may be owned by any person; and</text> </level> <level label="ix"> <text>with respect to community solar energy generating systems constructed under the Program, serves at least 40% of its kilowatt–hour output to LMI subscribers unless the solar energy system is wholly owned by the subscribers to the solar energy system.</text> </level> </level> <level label="5"> <text>“Consolidated billing” means a payment mechanism that requires an electric company to, at the request of a subscriber organization or subscription coordinator:</text> <level label="i"> <text>include the monthly subscription charge of a subscriber organization or subscription coordinator on the monthly bills rendered by the electric company for electric service and supply to subscribers; and</text> </level> <level label="ii"> <text>remit payment for those charges to the subscriber organization or subscription coordinator.</text> </level> </level> <level label="6"> <text>“Critical area” has the meaning stated in § 8–1802 of the Natural Resources Article.</text> </level> <level label="7"> <text>“LMI subscriber” means a subscriber that:</text> <level label="i"> <text>is low–income;</text> </level> <level label="ii"> <text>is moderate–income; or</text> </level> <level label="iii"> <text>resides in a census tract that is:</text> <level label="1"> <text>an overburdened community; and</text> </level> <level label="2"> <text>an underserved community.</text> </level> </level> </level> <level label="8"> <text>“Low–income” means:</text> <level label="i"> <text>having an annual household income that is at or below 200% of the federal poverty level; or</text> </level> <level label="ii"> <text>being certified as eligible for any federal, State, or local assistance program that limits participation to households whose income is at or below 200% of the federal poverty level.</text> </level> </level> <level label="9"> <text>“Moderate–income” means having an annual household income that is at or below 80% of the median income for Maryland.</text> </level> <level label="10"> <text>“Overburdened community” has the meaning stated in § 1–701 of the Environment Article.</text> </level> <level label="11"> <text>“Pilot program” means the program established under this section before July 1, 2023, and effective until the start of the Program established under subsection (d)(20) of this section.</text> </level> <level label="12"> <text>“Program” means the Community Solar Energy Generating Systems Program.</text> </level> <level label="13"> <text>“Queue” means:</text> <level label="i"> <text>the pilot program queue an electric company is required to maintain under COMAR 20.62.03.04; and</text> </level> <level label="ii"> <text>a queue an electric company may be required to maintain under the Program.</text> </level> </level> <level label="14"> <text>“Subscriber” means a retail customer of an electric company that:</text> <level label="i"> <text>holds a subscription to a community solar energy generating system; and</text> </level> <level label="ii"> <text>has identified one or more individual meters or accounts to which the subscription shall be attributed.</text> </level> </level> <level label="15"> <text>“Subscriber organization” means:</text> <level label="i"> <text>a person that owns or operates a community solar energy generating system; or</text> </level> <level label="ii"> <text>the collective group of subscribers of a community solar energy generating system.</text> </level> </level> <level label="16"> <text>“Subscription” means the portion of the electricity generated by a community solar energy generating system that is credited to a subscriber.</text> </level> <level label="17"> <text>“Subscription coordinator” means a person that:</text> <level label="i"> <text>markets community solar energy generating systems or otherwise provides services related to community solar energy generating systems under its own brand name;</text> </level> <level label="ii"> <text>performs any administrative action to allocate subscriptions, connect subscribers with community solar energy generating systems, or enroll customers in the Program; or</text> </level> <level label="iii"> <text>manages interactions between a subscriber organization and an electric company or electricity supplier relating to subscribers.</text> </level> </level> <level label="18"> <text>“Underserved community” has the meaning stated in § 1–701 of the Environment Article.</text> </level> <level label="19"> <text>“Unsubscribed energy” means any community solar energy generating system output in kilowatt–hours that is not allocated to any subscriber.</text> </level> <level label="20"> <text>“Virtual net energy metering” means measurement of the difference between the kilowatt–hours or value of electricity that is supplied by an electric company and the kilowatt–hours or value of electricity attributable to a subscription to a community solar energy generating system and fed back to the electric grid over the subscriber’s billing period, as calculated under the tariffs established under subsections (e)(2), (f)(2), and (g)(2) of this section.</text> </level> </level> <level label="b"> <text>The General Assembly finds that:</text> <level label="1"> <text>community solar energy generating systems:</text> <level label="i"> <text>provide residents and businesses, including those that lease property, increased access to local solar electricity while encouraging private investment in solar resources;</text> </level> <level label="ii"> <text>enhance continued diversification of the State’s energy resource mix to achieve the State’s renewable energy portfolio standard and Greenhouse Gas Emissions Reduction Act goals; and</text> </level> <level label="iii"> <text>provide electric companies and ratepayers the opportunity to realize the many benefits associated with distributed energy; and</text> </level> </level> <level label="2"> <text>it is in the public interest that the State enable the development and deployment of energy generation from community solar energy generating systems in order to:</text> <level label="i"> <text>allow renters and low–income and moderate–income retail electric customers to own an interest in a community solar energy generating system;</text> </level> <level label="ii"> <text>facilitate market entry for all potential subscribers while giving priority to subscribers who are the most sensitive to market barriers; and</text> </level> <level label="iii"> <text>encourage developers to promote participation by renters and low–income and moderate–income retail electric customers.</text> </level> </level> </level> <level label="c"> <text>A community solar energy generating system, subscriber, subscriber organization, or subscription coordinator is not:</text> <level label="1"> <text>an electric company;</text> </level> <level label="2"> <text>an electricity supplier; or</text> </level> <level label="3"> <text>a generating station if:</text> <level label="i"> <text>the generating capacity of the community solar energy generating system does not exceed 2 megawatts; or</text> </level> <level label="ii"> <text>the community solar energy generating system is located on the rooftop of a building.</text> </level> </level> </level> <level label="d"> <level label="1"> <level label="i"> <text>The Commission shall establish and maintain a Community Solar Energy Generating Systems Program.</text> </level> <level label="ii"> <text>The structure of the Program is as provided in this subsection.</text> </level> </level> <level label="2"> <text>All rate classes may participate in the Program.</text> </level> <level label="3"> <text>Subscribers served by electric standard offer service, community choice aggregators, and electricity suppliers may hold subscriptions to the same community solar energy generating system.</text> </level> <level label="4"> <text>A subscriber organization or subscription coordinator acting on behalf of a subscriber organization shall:</text> <level label="i"> <text>determine how to allocate subscriptions to subscribers; and</text> </level> <level label="ii"> <text>notify an electric company and, if applicable, a relevant electricity supplier about the allocation of subscriptions in accordance with the regulations the Commission adopts under subsection (e) of this section.</text> </level> </level> <level label="5"> <text>An electric company shall use the tariff structure under subsections (e)(2), (f)(2), and (g)(2) of this section to provide each subscriber with the credits.</text> </level> <level label="6"> <text>A subscriber shall:</text> <level label="i"> <text>receive credit for virtual net excess generation; and</text> </level> <level label="ii"> <text>accrue virtual net excess generation in the same manner as an eligible customer–generator under § 7–306(f) of this subtitle.</text> </level> </level> <level label="7"> <level label="i"> <text>Any unsubscribed energy generated by a community solar energy generating system that is not owned by an electric company shall create banked bill credits tracked by the electric company that, within 1 year after the date that the banked bill credit was created, may be allocated to one or more subscribers by the subscriber organization or subscription coordinator associated with the community solar energy generating system.</text> </level> <level label="ii"> <text>The generation associated with a banked bill credit not allocated to a subscriber within 1 year after the date that the banked bill credit was created shall be purchased under the electric company’s process for purchasing the output from qualifying facilities at the amount it would have cost the electric company to procure the energy.</text> </level> </level> <level label="8"> <text>An electric company shall use energy generated from a community solar energy generating system to offset purchases from wholesale electricity suppliers for standard offer service.</text> </level> <level label="9"> <text>All costs associated with small generator interconnection standards under COMAR 20.50.09 are the responsibility of the subscriber organization.</text> </level> <level label="10"> <text>A subscriber organization may petition an electric company to coordinate the interconnection and commencement of operations of a community solar energy generating system after the Commission adopts regulations required under subsection (e) of this section.</text> </level> <level label="11"> <text>A subscriber organization may contract with a third party for the third party to finance, build, own, or operate a community solar energy generating system.</text> </level> <level label="12"> <text>A municipal utility or cooperative utility may participate in the Program.</text> </level> <level label="13"> <level label="i"> <text>Except as provided in subparagraphs (ii) and (iii) of this paragraph, a community solar energy generating system may not be located on the same or an adjacent parcel of land as an existing or proposed community solar energy generating system if the total installed capacity of all community solar energy generating systems on the same or adjacent parcel would exceed 5 megawatts.</text> </level> <level label="ii"> <text>The prohibition under subparagraph (i) of this paragraph does not apply to projects constructed:</text> <level label="1"> <text>on the rooftops of buildings;</text> </level> <level label="2"> <text>in areas that are zoned for industrial use;</text> </level> <level label="3"> <text>on brownfields locations and clean fill sites;</text> </level> <level label="4"> <text>over parking lots or roadways;</text> </level> <level label="5"> <text>on multilevel parking structures;</text> </level> <level label="6"> <text>on or over transportation or public rights–of–way;</text> </level> <level label="7"> <text>at airports; or</text> </level> <level label="8"> <text>on land that:</text> </level> <level label="A"> <text>was previously zoned for industrial use or is ecologically compromised; and</text> </level> <level label="B"> <text>is not targeted for mitigation or restoration.</text> </level> </level> <level label="iii"> <text>The prohibition under subparagraph (i) of this paragraph does not apply to projects constructed in any location if the combined capacity of all community solar energy generating systems does not exceed:</text> <level label="1"> <level label="A"> <text>10 megawatts on the same parcel; and</text> </level> </level> <level label="B"> <text>20 megawatts on adjacent parcels; and</text> </level> <level label="2"> <level label="A"> <text>at least 75% of the aggregate capacity of the co–located community solar energy generating systems serves LMI subscribers;</text> </level> </level> <level label="B"> <text>for a site without a community solar energy generating system installed before the start of the Program under paragraph (20) of this subsection, all of the community solar energy generating systems installed after the start of the Program are used for agrivoltaics; or</text> </level> <level label="C"> <text>for a site with a community solar energy generating system installed before the start of the Program under paragraph (20) of this subsection, each new community solar energy generating system installed after the start of the Program is used for agrivoltaics.</text> </level> </level> </level> <level label="14"> <text>A subscriber organization or subscription coordinator may elect for a subscriber or a community solar energy generating system represented by the subscriber organization or subscription coordinator to participate in consolidated billing.</text> </level> <level label="15"> <text>An electric company shall provide access to customer billing and usage data to a subscriber organization or subscription coordinator if the customer provides to the electric company affirmative consent that is accompanied by a written or electronic signature.</text> </level> <level label="16"> <level label="i"> <text>An electric company may require a reasonable fee for subscriber organizations or subscription coordinators that use consolidated billing.</text> </level> <level label="ii"> <text>The fee under subparagraph (i) of this paragraph may not exceed 1% of the bill credit value to the subscriber unless the Commission determines a higher fee is just and reasonable based on substantial evidence presented by the electric company.</text> </level> <level label="iii"> <text>An electric company may adjust the fee under subparagraph (i) of this paragraph not more than once per year.</text> </level> <level label="iv"> <text>The fee for consolidated billing assessed to a subscriber organization or subscription coordinator may not exceed the fee that was in effect when the subscriber organization or subscription coordinator elected for the community solar energy generating system represented by the subscriber organization or subscription coordinator to participate in consolidated billing.</text> </level> </level> <level label="17"> <text>A subscriber organization or subscription coordinator may not prohibit a subscriber from enrolling with an electricity supplier for electric service or supply.</text> </level> <level label="18"> <text>A community solar energy generating system on an electric company queue under the pilot program shall retain the queue position under the Program.</text> </level> <level label="19"> <text>In constructing or operating a community solar energy generating system, a person shall address critical area, climate resilience, and forest conservation concerns by complying with the Forest Conservation Act and other relevant State and local environmental laws and regulations pertaining to the critical area, climate resilience, and forest conservation.</text> </level> <level label="20"> <text>The Program shall begin on the earlier of:</text> <level label="i"> <text>the date of submission of the first petition of a subscriber organization under paragraph (10) of this subsection after the Commission adopts the regulations required under subsection (f) of this section; or</text> </level> <level label="ii"> <text>6 months after the Commission adopts those regulations.</text> </level> </level> </level> <level label="e"> <text>On or before May 15, 2016, the Commission shall adopt regulations to implement this section, including regulations for:</text> <level label="1"> <text>consumer protection;</text> </level> <level label="2"> <text>a tariff structure for an electric company to provide a subscriber with the kilowatt–hours or value of the subscriber’s subscription, as the Commission determines;</text> </level> <level label="3"> <text>a calculation for virtual net energy metering as the Commission determines;</text> </level> <level label="4"> <text>a protocol for electric companies, electricity suppliers, and subscriber organizations to communicate the information necessary to calculate and provide the monthly electric bill credits and net excess generation payments required by this section; and</text> </level> <level label="5"> <text>a protocol for a subscriber organization to coordinate with an electric company for the interconnection and commencement of operations of a community solar energy generating system.</text> </level> </level> <level label="f"> <level label="1"> <text>Subject to subsection (h) of this section, to implement the Program, the Commission shall, on or before January 1, 2025, adopt revisions to the regulations adopted under subsection (e) of this section for the pilot program, including revisions that:</text> <level label="i"> <text>remove all Program categories, project generating capacity limits, yearly programmatic and electric company–specific capacity limits, and sunset dates so that the total number and capacity of community solar energy generating systems is subject only to the overall limitation for all net metering projects established under § 7–306(d) of this subtitle;</text> </level> <level label="ii"> <text>authorize all community solar energy generating systems, including those constructed during the pilot program, to operate and generate subscription credits until the community solar energy generating system is decommissioned;</text> </level> <level label="iii"> <text>adjust co–location restrictions to comply with subsection (d)(13) of this section;</text> </level> <level label="iv"> <text>allow a subscriber organization or subscription coordinator to verify the income of a prospective subscriber for eligibility as an LMI subscriber under the Program by using one of the following methods:</text> <level label="1"> <text>self–attestation by the prospective subscriber that does not need to be under oath or penalty of perjury;</text> </level> <level label="2"> <text>requiring the prospective subscriber to provide evidence of eligibility for or enrollment in at least one of the following government assistance programs:</text> </level> <level label="A"> <text>the Maryland Energy Assistance Program;</text> </level> <level label="B"> <text>the Supplemental Nutrition Assistance Program;</text> </level> <level label="C"> <text>Medicaid;</text> </level> <level label="D"> <text>Head Start;</text> </level> <level label="E"> <text>free and reduced price school meals;</text> </level> <level label="F"> <text>the federal Low Income Home Energy Assistance Program;</text> </level> <level label="G"> <text>EmPOWER Maryland low– or moderate–income incentives;</text> </level> <level label="H"> <text>telephone lifeline service;</text> </level> <level label="I"> <text>the Fuel Fund of Maryland; or</text> </level> <level label="J"> <text>any additional federal, State, or local assistance program that the Commission determines will further the purposes of the Program;</text> </level> <level label="3"> <text>pay stubs;</text> </level> <level label="4"> <text>income tax documents;</text> </level> <level label="5"> <text>proof of residence in an affordable housing facility;</text> </level> <level label="6"> <text>proof of residence within a census tract that is:</text> </level> <level label="A"> <text>an overburdened community; and</text> </level> <level label="B"> <text>an underserved community;</text> </level> <level label="7"> <text>any verification method that was available under the pilot program; or</text> </level> <level label="8"> <text>any additional methods approved by the Commission to verify income;</text> </level> </level> <level label="v"> <text>require all electric companies to use:</text> <level label="1"> <text>bill credits applied as a reduction in metered kilowatt–hours; or</text> </level> <level label="2"> <text>monetary bill credits that provide not less than the value to the subscriber of the credit had it been applied to the subscriber’s bill as a reduction in metered kilowatt–hours; and</text> </level> </level> <level label="vi"> <text>establish procedures for the Commission to:</text> <level label="1"> <text>collect data from subscriber organizations, when applying to the Commission for admission to the Program, on:</text> </level> <level label="A"> <text>the type and quantity of forest cover on the site of a proposed community solar energy generating system; and</text> </level> <level label="B"> <text>any anticipated impacts that the construction of the proposed community solar energy generating system will have on trees and forest cover at the site of the proposed community solar energy generating system; and</text> </level> <level label="2"> <text>make the data collected under item 1 of this item available to the public in a format aggregated by county.</text> </level> </level> </level> <level label="2"> <text>On or before July 1, 2025, the Commission shall approve electric company tariff modifications that are consistent with the regulations adopted under this subsection.</text> </level> </level> <level label="g"> <level label="1"> <text>Subject to subsection (h) of this section, on or before July 1, 2025, the Commission shall adopt regulations that:</text> <level label="i"> <text>implement consolidated billing by electric companies that must be in effect by January 1, 2026, including protocols for purchase of receivables or net crediting;</text> </level> <level label="ii"> <text>require all electric companies to report billing and crediting errors to the Commission on a regular schedule;</text> </level> <level label="iii"> <text>impose specific timing requirements for application of bill credits to subscriber bills and application of rollover credits;</text> </level> <level label="iv"> <text>implement data exchange protocols for electric companies, subscriber organizations, and subscription coordinators, including required data fields for electric company allocation reports;</text> </level> <level label="v"> <text>for subscribers enrolled in budget billing, require electric companies to apply community solar credits to the monthly amount due rather than the underlying balance;</text> </level> <level label="vi"> <text>require all electric companies to show applied and banked credits on each bill rendered to a subscriber; and</text> </level> <level label="vii"> <text>implement any additional changes the Commission determines will improve billing and crediting processes for subscribers, subscriber organizations, and subscription coordinators.</text> </level> </level> <level label="2"> <text>On or before January 1, 2026, the Commission shall approve electric company tariff modifications that are consistent with the regulations adopted under this subsection.</text> </level> </level> <level label="h"> <text>The Commission shall convene a stakeholder workgroup to provide recommendations regarding the regulations to be adopted by the Commission under subsections (f) and (g) of this section.</text> </level> <level label="i"> <text>The Commission shall consider and implement methodologies to allow the tenants of master–metered residential facilities to participate in the Program and benefit directly from any associated electric bill savings.</text> </level> <level label="j"> <level label="1"> <text>Subject to regulations or orders of the Commission, a contract relating to a community solar energy generating system, subscriber organization, or subscription coordinator that is entered into during the pilot program or the Program shall remain in effect according to the terms of the contract, including after the termination of the pilot program or the Program.</text> </level> <level label="2"> <level label="i"> <text>This paragraph applies to electric companies, electric cooperatives, and municipal utilities that participate in the Program.</text> </level> <level label="ii"> <text>A subscriber who has a change in the service address associated with the subscriber’s subscription may maintain the subscription for the new address if the new address is within the same electric territory as the old address.</text> </level> <level label="iii"> <text>An electric company or a subscriber organization may not terminate a subscriber’s subscription due to a change of address for the service address associated with the subscription if the requirements under subparagraph (ii) of this paragraph are met.</text> </level> <level label="iv"> <text>An electric company shall make any changes necessary to accommodate a subscriber’s change of address on notification by a subscriber organization.</text> </level> </level> <level label="3"> <text>On and after October 1, 2023, in accordance with the operational and billing requirements in subsection (d) of this section:</text> <level label="i"> <text>a subscriber organization may continue the operation of a community solar energy generating system that began operation during the pilot program, including the creation and trading of subscriptions; and</text> </level> <level label="ii"> <text>in accordance with the tariffs established under subsections (e)(2), (f)(2), and (g)(2) of this section, an electric company shall continue to facilitate the operation of a community solar energy generating system that began operation during the pilot program.</text> </level> </level> </level> <level label="k"> <text>The cumulative installed nameplate capacity under the pilot program and the Program shall count toward the overall limitation for all net metering projects established under § 7–306(d) of this subtitle.</text> </level> <level label="l"> <level label="1"> <level label="i"> <text>A subscriber organization or subscription coordinator may not require an LMI subscriber to undergo a credit check or pay a sign–up fee to subscribe to a community solar energy generating system.</text> </level> <level label="ii"> <text>A subscriber organization or subscription coordinator shall:</text> <level label="1"> <text>verify the eligibility of an LMI subscriber in accordance with subsection (f)(1)(iv) of this section; and</text> </level> <level label="2"> <text>retain records of each determination of eligibility for an LMI subscriber to be made available to the Commission on request.</text> </level> </level> </level> <level label="2"> <text>A subscriber who a subscriber organization determined was eligible to participate as a low–income or moderate–income subscriber under the pilot program shall remain eligible as an LMI subscriber under the Program.</text> </level> <level label="3"> <level label="i"> <text>A community solar energy generating system constructed under the pilot program in a category requiring that at least 30% of its kilowatt–hour output serve low–income or moderate–income subscribers shall continue to serve at least 30% of its kilowatt–hour output to low–income or moderate–income subscribers.</text> </level> <level label="ii"> <text>A community solar energy generating system constructed under the pilot program in a category requiring that at least 51% of its kilowatt–hour output serve low–income or moderate–income subscribers shall continue to serve at least 51% of its kilowatt–hour output to low–income or moderate–income subscribers.</text> </level> </level> </level> <level label="m"> <level label="1"> <text>A subscriber organization or subscription coordinator may not charge:</text> <level label="i"> <text>a residential subscriber who is not participating in consolidated billing a subscription rate that is more than the monetary value of the bill credit on a bill issued by the electric company to the subscriber for electric service; or</text> </level> <level label="ii"> <text>an LMI subscriber a subscription rate that is more than 90% of the monetary value of the bill credit on a bill issued by the electric company to the subscriber for electric service.</text> </level> </level> <level label="2"> <text>A subscriber organization or subscription coordinator that elects for a subscriber to participate in consolidated billing may not set a subscription charge that is more than the monetary value of the bill credit on a bill issued by the electric company to the subscriber.</text> </level> </level> <level label="n"> <text>The developer of a community solar energy generating system with a generating capacity over 1 megawatt, as measured in alternating current, shall ensure that workers are paid not less than the prevailing wage rate determined under Title 17, Subtitle 2 of the State Finance and Procurement Article, unless the community solar energy generating system is subject to a project labor agreement that:</text> <level label="1"> <text>binds all contractors and subcontractors on the community solar energy generating system through the inclusion of specifications in all relevant solicitation provisions and contract documents;</text> </level> <level label="2"> <text>allows all contractors and subcontractors to compete for contracts and subcontracts on the project without regard to whether they are otherwise parties to collective bargaining agreements;</text> </level> <level label="3"> <text>establishes uniform terms and conditions of employment for all construction labor employed on the projects;</text> </level> <level label="4"> <text>guarantees against strikes, lockouts, and similar job disruptions;</text> </level> <level label="5"> <text>establishes mutually binding procedures for resolving labor disputes; and</text> </level> <level label="6"> <text>includes any other provisions negotiated by the parties to promote successful delivery of the community solar energy generating system.</text> </level> </level> </section> <section article="gpu" article_name="Public Utilities" number="7-306.3" title_number="7" title_name="Gas, Electric, and Water Companies" subtitle_number="3" subtitle_name="Consumer Relations"> <level label="a"> <text>In this section, “eligible customer–generator” has the meaning stated in § 7–306 of this subtitle.</text> </level> <level label="b"> <text>An electric company shall provide meter aggregation for an eligible customer–generator that:</text> <level label="1"> <text>submits a request, in writing, to the electric company for the provision of meter aggregation; and</text> </level> <level label="2"> <level label="i"> <text>uses electrical service for agriculture;</text> </level> <level label="ii"> <text>is a nonprofit organization;</text> </level> <level label="iii"> <text>is a municipal or county government, or an organization affiliated with the municipal or county government;</text> </level> <level label="iv"> <text>is a unit of State government; or</text> </level> <level label="v"> <text>is a public senior higher education institution, as defined in § 10–101 of the Education Article.</text> </level> </level> </level> <level label="c"> <text>An electric company shall require an eligible customer–generator that requests meter aggregation under this section to provide written allocation instructions describing how to distribute the eligible customer–generator’s excess generation credits to each account before the commencement of any meter aggregation.</text> </level> </section> <section article="gpu" article_name="Public Utilities" number="7-306.4" title_number="7" title_name="Gas, Electric, and Water Companies" subtitle_number="3" subtitle_name="Consumer Relations"> <level label="a"> <level label="1"> <text>In this section the following words have the meanings indicated.</text> </level> <level label="2"> <text>“Eligible customer–generator” has the meaning stated in § 7–306 of this subtitle.</text> </level> <level label="3"> <text>“Net energy metering” has the meaning stated in § 7–306 of this subtitle.</text> </level> </level> <level label="b"> <text>It is the intent of the General Assembly to transition to a net energy metering program that:</text> <level label="1"> <text>increases benefits to ratepayers by lowering electric system costs through the use of flexible customer–sited renewable energy resources;</text> </level> <level label="2"> <text>provides fair compensation to eligible customer–generators;</text> </level> <level label="3"> <text>is designed to make progress toward meeting the State’s demand–side, energy storage, and clean energy goals; and</text> </level> <level label="4"> <text>provides incentives for the development of distributed generation that are less than the incentives provided by the net energy metering program under § 7–306 of this subtitle.</text> </level> </level> <level label="c"> <text>On or before February 1, 2027, the Commission, by order or regulation, shall approve, as a successor program to the net energy metering program under § 7–306 of this subtitle, a framework for a net energy metering program to begin July 1, 2027, that:</text> <level label="1"> <text>provides incentives for the development of distributed generation to eligible customer–generators under §§ 7–306 and 7–306.3 of this subtitle and community solar energy generating systems under § 7–306.2 of this subtitle;</text> </level> <level label="2"> <text>minimizes ratepayer costs in the short term and in the long term; and</text> </level> <level label="3"> <text>balances, on a statewide basis and across technologies and industry sectors participating in net energy metering:</text> <level label="i"> <level label="1"> <text>fair compensation for energy exports; and</text> </level> <level label="2"> <text>the benefits of an eligible customer–generator’s or facility’s reduced load on the electric transmission and distribution system; against</text> </level> </level> <level label="ii"> <level label="1"> <text>the needs of the transmission and distribution system;</text> </level> <level label="2"> <text>ratepayer costs and benefits; and</text> </level> <level label="3"> <text>potential impacts on customers, including low– and moderate–income customers, who do not participate in the net energy metering program resulting from eligible customer–generators’ reduced contributions to the distribution system.</text> </level> </level> </level> </level> <level label="d"> <text>The Commission shall prioritize the review and approval of applications from a prospective eligible customer–generator for participation in the program implemented under subsection (c) of this section if, at the time the program was implemented, the prospective eligible customer–generator was in the applicable electric company’s interconnection queue for the net energy metering program under § 7–306 of this subtitle.</text> </level> <level label="e"> <text>The program implemented by the Commission under subsection (c) of this section shall be available until the combined total rated generating capacity owned and operated under the net energy metering program under § 7–306 of this subtitle and the net energy metering program implemented under this section reaches 6,000 megawatts.</text> </level> </section> <section article="gpu" article_name="Public Utilities" number="7-307" title_number="7" title_name="Gas, Electric, and Water Companies" subtitle_number="3" subtitle_name="Consumer Relations"> <level label="a"> <text>In this section, “termination of service” means the termination, reduction, or refusal to reinstate gas or electric service, or any other action that has the effect of reducing or denying gas or electric service because of nonpayment.</text> </level> <level label="b"> <level label="1"> <text>Subject to paragraph (2) of this subsection, the Commission shall adopt regulations concerning the prohibition against or limitation of authority of a public service company to terminate service for gas or electricity to a low income residential customer during the heating season for nonpayment.</text> </level> <level label="2"> <text>In adopting the regulations required under paragraph (1) of this subsection, the Commission shall consider and may include provisions relating to:</text> <level label="i"> <text>the circumstances under which service may and may not be limited or terminated;</text> </level> <level label="ii"> <text>the minimum heating levels required to maintain life, health, and safety;</text> </level> <level label="iii"> <text>the medical, age, disabling, or other individual characteristics that are relevant to a prohibition against or limitation on the termination of service;</text> </level> <level label="iv"> <text>the availability of and qualification for State and federal energy assistance;</text> </level> <level label="v"> <text>the financial eligibility standards relevant to a prohibition against or limitation on the termination of service;</text> </level> <level label="vi"> <text>the availability and appropriateness of equipment designed to limit the flow of service for gas or electricity;</text> </level> <level label="vii"> <text>the short-term and long-term alternative payment plans, for appropriate customers whose accounts are in arrears, that are best designed:</text> <level label="1"> <text>to allow present and future continuation of service; and</text> </level> <level label="2"> <text>to encourage full payment over a period of time;</text> </level> </level> <level label="viii"> <text>the methods that a public service company might use before and during the heating season to anticipate customer nonpayment, to assist those customers, and to avoid termination of service;</text> </level> <level label="ix"> <text>the procedures that a public service company uses to mitigate the problems of termination of service to customers, including customer contact;</text> </level> <level label="x"> <text>the procedure that a public service company shall follow before termination of service to a customer to avoid a threat to life, health, or safety;</text> </level> <level label="xi"> <text>the appropriate customer notice before the termination of service;</text> </level> <level label="xii"> <text>the appropriate opportunity and procedure for a customer to contest a proposed termination of service;</text> </level> <level label="xiii"> <text>the existence of other circumstances that because of an emergency, might justify a prohibition against or a limitation on the termination of service; and</text> </level> <level label="xiv"> <text>the economic implication of any restriction on termination of service.</text> </level> </level> </level> <level label="c"> <level label="1"> <text>In accordance with § 2–1257 of the State Government Article, on or before September 1 of each year, the Commission shall report to the General Assembly on terminations of service by public service companies during the previous heating season.</text> </level> <level label="2"> <text>The report shall include information in sufficient detail to indicate the effect of the terminations of service on various categories of customers, including:</text> <level label="i"> <text>income levels;</text> </level> <level label="ii"> <text>geographic areas;</text> </level> <level label="iii"> <text>energy assistance recipients; and</text> </level> <level label="iv"> <text>any other category that the Commission determines is relevant to evaluate how the State may best address the problem of assuring adequate gas and electric service for low income residential customers.</text> </level> </level> </level> </section> <section article="gpu" article_name="Public Utilities" number="7-307.1" title_number="7" title_name="Gas, Electric, and Water Companies" subtitle_number="3" subtitle_name="Consumer Relations"> <level label="a"> <text>A public service company may not terminate electric or gas service to a residential customer in a designated weather station area because of nonpayment on a day for which the forecasted high temperature is 32 degrees Fahrenheit or below in that weather station area.</text> </level> <level label="b"> <text>A public service company may not terminate electric service to a residential customer in a designated weather station area because of nonpayment on a day for which the forecasted temperature is 95 degrees Fahrenheit or above in that weather station area.</text> </level> <level label="c"> <text>The Commission shall require each public service company that provides electric or gas service to designate and file with the Commission designated weather station areas within its service territory for use in administering the restrictions on weather–related terminations under subsections (a) and (b) of this section.</text> </level> <level label="d"> <text>This section may not be construed to limit the authority of the Commission to adopt, by regulation or order, additional limitations and conditions on termination of electric or gas service that are more protective of consumers.</text> </level> <level label="e"> <text>The Commission shall adopt regulations to carry out this section.</text> </level> </section> <section article="gpu" article_name="Public Utilities" number="7-307.2" title_number="7" title_name="Gas, Electric, and Water Companies" subtitle_number="3" subtitle_name="Consumer Relations"> <level label="a"> <text>This section applies only to property subject to a condominium regime established under Title 11 of the Real Property Article.</text> </level> <level label="b"> <text>Notwithstanding any other law, if a public service company bills the governing body of a condominium or a person designated by the governing body of a condominium for electric, gas, or water service for all or a portion of the units in a condominium property, and the charge for service is in arrears for at least 60 days, the public service company shall post notice conspicuously at or near the entry to the common area of the condominium.</text> </level> <level label="c"> <text>The public service company may enter onto the common area of a condominium property at a reasonable time to post the notice required under this section.</text> </level> </section> <section article="gpu" article_name="Public Utilities" number="7-307.3" title_number="7" title_name="Gas, Electric, and Water Companies" subtitle_number="3" subtitle_name="Consumer Relations"> <level label="a"> <text>A public service company that intends to terminate, because of nonpayment, electric or gas service to a customer of the service to a multifamily dwelling unit shall notify the property owner or property manager of the multifamily dwelling unit before terminating service to the customer if the public service company has received the customer’s consent that designates the property owner or property manager as a third–party authorized to receive a notice of termination of services.</text> </level> <level label="b"> <text>As a term of a lease of a multifamily dwelling unit, the property owner or property manager of the multifamily dwelling unit may require a tenant to ensure that a customer of the public service company that is responsible for the account for that multifamily dwelling unit provides consent for the property owner or property manager to receive a notice of termination of services as a result of nonpayment by the customer.</text> </level> <level label="c"> <text>A customer’s consent may be provided to a public service company by:</text> <level label="1"> <text>the customer; or</text> </level> <level label="2"> <text>if the consent is written, the property owner or property manager of the multifamily dwelling unit.</text> </level> </level> <level label="d"> <text>Each public service company shall set up a procedure for handling the third–party notification process in a manner best suited to the circumstances of the particular public service company.</text> </level> <level label="e"> <text>Nothing in this section may be construed to prevent any other form of third–party notification that a customer may request.</text> </level> <level label="f"> <text>The Commission may adopt regulations to carry out this section.</text> </level> </section> <section article="gpu" article_name="Public Utilities" number="7-307.4" title_number="7" title_name="Gas, Electric, and Water Companies" subtitle_number="3" subtitle_name="Consumer Relations"> <level label="a"> <level label="1"> <text>In this section the following words have the meanings indicated.</text> </level> <level label="2"> <text>“Eligible residential customer” means a residential electric or gas customer who is:</text> <level label="i"> <text>employed by the federal or State government or a local government in the State; and</text> </level> <level label="ii"> <text>involuntarily furloughed from work without pay because of a government shutdown, regardless of whether the employee is required to report to work during the furlough.</text> </level> </level> <level label="3"> <text>“Government shutdown” means a government shutdown that:</text> <level label="i"> <text>occurs when government funding is unavailable to operate the governmental activities due to the lack of a legislative appropriation or a continuing resolution; and</text> </level> <level label="ii"> <text>lasts for a period that exceeds 7 consecutive days.</text> </level> </level> </level> <level label="b"> <text>A public service company may not terminate electric or gas service to an eligible residential customer for nonpayment on a day that a government shutdown is in effect and for 7 days after the government shutdown has ended if the customer contacts the public service company before the date of termination to:</text> <level label="1"> <text>provide verification that the customer is an employee of the federal, State, or local government affected by the government shutdown; and</text> </level> <level label="2"> <text>enter into a payment plan to pay any outstanding amount on the customer’s account after the government shutdown ends.</text> </level> </level> <level label="c"> <text>The Commission may adopt regulations to implement this section.</text> </level> </section> <section article="gpu" article_name="Public Utilities" number="7-308" title_number="7" title_name="Gas, Electric, and Water Companies" subtitle_number="3" subtitle_name="Consumer Relations"> <level label="a"> <text>In this section, “natural gas vehicle” means a vehicle operated on a public road and powered by natural gas.</text> </level> <level label="b"> <text>The sale by any person of natural gas that is received from a public service company for use as a motor fuel in a natural gas vehicle is not subject to regulation by the Commission.</text> </level> <level label="c"> <text>A person that sells natural gas received from a public service company for use as a motor fuel in a natural gas vehicle is not considered a public service company for purposes of this article.</text> </level> </section> <section article="gpu" article_name="Public Utilities" number="7-309" title_number="7" title_name="Gas, Electric, and Water Companies" subtitle_number="3" subtitle_name="Consumer Relations"> <level label="a"> <text>This section does not apply to electric cooperatives.</text> </level> <level label="b"> <level label="1"> <text>In this section the following words have the meanings indicated.</text> </level> <level label="2"> <text>“Affected dwelling unit” means a dwelling unit, as defined in § 7–303 of this subtitle, where the utility service:</text> <level label="i"> <text>is in the landlord’s name;</text> </level> <level label="ii"> <text>is delivered through a single meter to a single dwelling unit; and</text> </level> <level label="iii"> <text>does not use a master meter.</text> </level> </level> <level label="3"> <text>“Co–occupant” means two or more adults who occupy the same dwelling unit as their primary domicile or legal residence within the State.</text> </level> <level label="4"> <text>“Landlord” means an owner of an affected dwelling unit who leases the affected dwelling unit to a tenant.</text> </level> <level label="5"> <text>“Tenant” means an occupant of an affected dwelling unit who:</text> <level label="i"> <text>has a valid oral or written lease to reside in the affected dwelling unit; and</text> </level> <level label="ii"> <text>is not a co–occupant with the landlord in the affected dwelling unit.</text> </level> </level> <level label="6"> <text>“Utility service” means gas or electric service provided to an affected dwelling unit by a public service company that is regulated by the Commission.</text> </level> <level label="7"> <text>“Utility service provider” means a public service company that:</text> <level label="i"> <text>provides gas or electric service; and</text> </level> <level label="ii"> <text>is regulated by the Commission.</text> </level> </level> </level> <level label="c"> <text>If utility service at an affected dwelling unit is subject to the threat of termination or actual termination, a tenant residing in the affected dwelling unit:</text> <level label="1"> <text>may apply for a new utility service account in the tenant’s name; and</text> </level> <level label="2"> <text>may not incur liability for charges due on the landlord’s account.</text> </level> </level> <level label="d"> <level label="1"> <text>Subject to paragraphs (2) and (3) of this subsection, when a tenant applies for a new utility service account under subsection (c)(1) of this section, a utility service provider shall establish a new utility service account for the affected dwelling unit in the name of the tenant if the tenant meets the requirements of all applicable laws, regulations, and tariffs.</text> </level> <level label="2"> <text>A utility service provider may, in accordance with applicable laws, regulations, and tariffs, require a tenant to pay a deposit and past due balances from previous accounts in the tenant’s name before establishing a new utility service account in the tenant’s name.</text> </level> <level label="3"> <text>A utility service provider may not refuse or otherwise condition a tenant’s ability to establish a new utility service account in the tenant’s name because of arrearages on the landlord’s account.</text> </level> </level> <level label="e"> <text>Notwithstanding any other law governing the protection of customer information, if the billing address for a utility service account is different from the service address for the same utility service account and a utility service provider sends a termination notice to the billing address, the utility service provider shall:</text> <level label="1"> <text>send a termination notice to the service address by first–class mail or post a termination notice in a conspicuous location at the service address at least 14 days before terminating utility service to the affected dwelling unit;</text> </level> <level label="2"> <text>ensure that the notice contains:</text> <level label="i"> <text>the earliest date that service will be terminated; and</text> </level> <level label="ii"> <text>the telephone number the tenant may call to obtain further information;</text> </level> </level> <level label="3"> <text>address the notice to “All Occupants”; and</text> </level> <level label="4"> <text>enclose the notice in an envelope that states on the address side, in bold, capitalized letters in at least 12–point type, the following: “IMPORTANT NOTICE TO ALL OCCUPANTS: UTILITY TERMINATION PENDING”.</text> </level> </level> <level label="f"> <text>If the billing address for a utility service account is the same as the service address for the same utility service account and the utility service provider sends a termination notice, the notice shall be enclosed in an envelope, the address side of which shall have a written notice stating in bold, capitalized letters in at least 12–point type, the following: “IMPORTANT NOTICE TO ALL OCCUPANTS: UTILITY TERMINATION PENDING”.</text> </level> <level label="g"> <text>A tenant may deduct from rent due to a landlord the amount of payments made to a utility service provider in accordance with § 8–212.3 of the Real Property Article.</text> </level> <level label="h"> <text>In a rate proceeding filed under Title 4, Subtitle 2 of this article, the Commission shall authorize the full and timely cost recovery of a utility service provider’s prudently incurred costs arising from its obligations under this section.</text> </level> </section> <section article="gpu" article_name="Public Utilities" number="7-310" title_number="7" title_name="Gas, Electric, and Water Companies" subtitle_number="3" subtitle_name="Consumer Relations"> <level label="a"> <text>In this section, “Fund” means the Education and Protection Fund.</text> </level> <level label="b"> <text>There is an Education and Protection Fund.</text> </level> <level label="c"> <text>The purpose of the Fund is to provide resources to improve the Commission’s ability to:</text> <level label="1"> <text>educate customers on:</text> <level label="i"> <text>retail electric and gas choice; and</text> </level> <level label="ii"> <text>energy choices that help meet the State’s climate commitments under § 7–319 of this subtitle and § 2–1204.2 of the Environment Article;</text> </level> </level> <level label="2"> <text>protect customers from unfair, false, misleading, or deceptive practices by electricity suppliers, energy salespersons, energy vendors, or gas suppliers; and</text> </level> <level label="3"> <text>develop a training and educational program for electricity suppliers, gas suppliers, energy salespersons, and energy vendors as provided under § 7–311 of this subtitle.</text> </level> </level> <level label="d"> <text>The Commission shall administer the Fund.</text> </level> <level label="e"> <level label="1"> <text>The Fund is a special, nonlapsing fund that is not subject to § 7–302 of the State Finance and Procurement Article.</text> </level> <level label="2"> <text>The State Treasurer shall hold the Fund separately, and the Comptroller shall account for the Fund.</text> </level> </level> <level label="f"> <text>The Fund consists of:</text> <level label="1"> <text>revenue distributed to the Fund under § 13–201(e)(3) of this article;</text> </level> <level label="2"> <text>money appropriated in the State budget to the Fund; and</text> </level> <level label="3"> <text>any other money from any other source accepted for the benefit of the Fund.</text> </level> </level> <level label="g"> <text>The Fund may be used only to:</text> <level label="1"> <text>educate retail electric or gas customers on retail choice and energy choices that help to meet the State’s climate commitments under § 7–319 of this subtitle and § 2–1204.2 of the Environment Article;</text> </level> <level label="2"> <text>improve customer protections for retail electric or gas customers; and</text> </level> <level label="3"> <text>develop a training and educational program for electricity suppliers, gas suppliers, energy salespersons, and energy vendors as provided under § 7–311 of this subtitle.</text> </level> </level> <level label="h"> <level label="1"> <text>The State Treasurer shall invest the money of the Fund in the same manner as other State money may be invested.</text> </level> <level label="2"> <text>Any investment earnings of the Fund shall be credited to the General Fund of the State.</text> </level> </level> <level label="i"> <text>Expenditures from the Fund may be made only in accordance with the State budget.</text> </level> </section> <section article="gpu" article_name="Public Utilities" number="7-311" title_number="7" title_name="Gas, Electric, and Water Companies" subtitle_number="3" subtitle_name="Consumer Relations"> <level label="a"> <text>The Commission shall develop a training and educational program for any entity or individual that is licensed by the Commission as an electricity supplier, a gas supplier, an energy salesperson, or an energy vendor.</text> </level> <level label="b"> <text>The Commission shall develop the program in consultation with interested stakeholders, including electricity suppliers, gas suppliers, energy salespersons, and energy vendors.</text> </level> <level label="c"> <text>The program shall require that a designated representative of each licensed electricity supplier, licensed gas supplier, licensed energy vendor, or licensed energy salesperson demonstrate a thorough understanding of the Commission’s regulations regarding:</text> <level label="1"> <text>sales;</text> </level> <level label="2"> <text>consumer protection; and</text> </level> <level label="3"> <text>any other matter the Commission deems appropriate.</text> </level> </level> <level label="d"> <text>At the conclusion of the training, the Commission shall:</text> <level label="1"> <text>conduct an examination; and</text> </level> <level label="2"> <text>on a satisfactory score, certify that the designated representative of the licensed electricity supplier, licensed gas supplier, licensed energy salesperson, or licensed energy vendor has successfully completed the training.</text> </level> </level> <level label="e"> <level label="1"> <text>The Commission shall determine the schedule and frequency by which a designated representative of a licensed electricity supplier, licensed gas supplier, licensed energy salesperson, or licensed energy vendor must complete the training and certification.</text> </level> <level label="2"> <text>A designated representative of a new electricity supplier, gas supplier, energy salesperson, or energy vendor shall complete the training and certification prior to the issuance of a license.</text> </level> </level> <level label="f"> <text>The Commission may adopt regulations that include appropriate penalties or sanctions for failure to comply with this section.</text> </level> <level label="g"> <level label="1"> <text>The Commission shall use the following funding sources for the initial development of the training and educational program:</text> <level label="i"> <text>the assessments collected in accordance with § 2–110 of this article; or</text> </level> <level label="ii"> <text>funds deposited into the Education and Protection Fund in accordance with § 7–310 of this subtitle.</text> </level> </level> <level label="2"> <text>The Commission may establish reasonable fees to pay for the costs of the program.</text> </level> </level> </section> <section article="gpu" article_name="Public Utilities" number="7-312" title_number="7" title_name="Gas, Electric, and Water Companies" subtitle_number="3" subtitle_name="Consumer Relations"> <level label="a"> <text>On request of a retail electricity customer, an electric company shall provide to the customer the historic usage and billing information for the customer’s account for not less than the preceding 12 months.</text> </level> <level label="b"> <text>The electric company shall make the information under subsection (a) of this section available to the customer in one of the following forms, as requested by the customer:</text> <level label="1"> <text>information accessible to the customer on the electric company’s website;</text> </level> <level label="2"> <text>information provided electronically to the customer in a searchable PDF format; or</text> </level> <level label="3"> <text>a physical document sent to the customer at the customer’s billing address.</text> </level> </level> </section> <section article="gpu" article_name="Public Utilities" number="7-313" title_number="7" title_name="Gas, Electric, and Water Companies" subtitle_number="3" subtitle_name="Consumer Relations"> <level label="a"> <level label="1"> <text>In this section the following words have the meanings indicated.</text> </level> <level label="2"> <text>“Gas service regulator” means an instrument that:</text> <level label="i"> <text>is installed to a meter inlet to control the gas pressure being introduced into a structure; and</text> </level> <level label="ii"> <text>includes a relief valve to vent excess gas to the outside atmosphere if the pressure of the regulated gas exceeds a specified pressure.</text> </level> </level> <level label="3"> <text>“Multifamily residential structure” means a building containing six or more dwelling units, including:</text> <level label="i"> <text>an apartment house;</text> </level> <level label="ii"> <text>a boarding house;</text> </level> <level label="iii"> <text>a convent;</text> </level> <level label="iv"> <text>a dormitory;</text> </level> <level label="v"> <text>a fraternity or sorority house;</text> </level> <level label="vi"> <text>a hotel or motel;</text> </level> <level label="vii"> <text>a monastery;</text> </level> <level label="viii"> <text>a vacation time–share property;</text> </level> <level label="ix"> <text>a condominium, as defined in § 11–101 of the Real Property Article; and</text> </level> <level label="x"> <text>a cooperative project, as defined in § 5–6B–01 of the Corporations and Associations Article.</text> </level> </level> </level> <level label="b"> <level label="1"> <text>Whenever gas service is newly installed at an occupied structure, a gas service regulator may be installed only outside the structure.</text> </level> <level label="2"> <text>Any existing gas service regulator that is installed in the interior of a multifamily residential structure shall be relocated to the outside of the structure whenever the gas service line or regulator is replaced.</text> </level> <level label="3"> <text>On or before January 1, 2022, a gas company shall file a plan with the Commission to relocate any gas service regulator that provides service to a multifamily residential structure.</text> </level> <level label="4"> <level label="i"> <text>On or before January 1, 2023, the Commission shall issue a final order approving or disapproving a gas company’s plan submitted under paragraph (3) of this subsection to relocate any gas service regulator after considering:</text> <level label="1"> <text>the number of gas service regulators designated for relocation in the gas company’s service territory;</text> </level> <level label="2"> <text>the availability of qualified personnel to safely relocate gas service regulators;</text> </level> <level label="3"> <text>the engineering and permitting challenges within the gas company’s service territory;</text> </level> <level label="4"> <text>a schedule for relocating gas service regulators that is consistent with the public interest;</text> </level> <level label="5"> <text>any other gas company programs, innovations, initiatives, priorities, or investments that improve the safety or reliability of the gas system;</text> </level> <level label="6"> <text>any other factor identified by the Commission; and</text> </level> <level label="7"> <text>whether the gas company has:</text> </level> <level label="A"> <text>made every reasonable effort to expeditiously address any factors that may contribute to a delay in relocating gas service regulators; and</text> </level> <level label="B"> <text>committed to a reasonable implementation timeline that does not unduly delay regulator relocation.</text> </level> </level> <level label="ii"> <level label="1"> <text>If the Commission issues an order approving a gas company’s plan, the order shall include any conditions of approval that the Commission requires.</text> </level> <level label="2"> <text>If the Commission issues an order disapproving a gas company’s plan, the gas company shall submit a new plan to the Commission within 60 days after the Commission issues the disapproval.</text> </level> </level> </level> <level label="5"> <text>The Commission may exempt a gas service regulator from the requirements of this subsection if the Commission finds that an exemption is warranted after considering:</text> <level label="i"> <text>whether granting the exemption is consistent with the public interest;</text> </level> <level label="ii"> <text>conflicts with federal, State, or local laws or regulations;</text> </level> <level label="iii"> <text>physical obstructions or space constraints;</text> </level> <level label="iv"> <text>any other factor identified by the Commission; and</text> </level> <level label="v"> <text>whether the gas company has:</text> <level label="1"> <text>made every reasonable effort to expeditiously address any factor that may contribute to a delay in relocating gas service regulators; and</text> </level> <level label="2"> <text>committed to a reasonable implementation timeline that does not unduly delay regulator relocation.</text> </level> </level> </level> <level label="6"> <text>The Commission may delegate the authority to grant exemptions under this subsection to the Commission’s technical staff division.</text> </level> </level> <level label="c"> <level label="1"> <text>A gas service regulator shall be installed away from roads, driveways, parking areas, or other locations exposed to vehicular traffic or other external forces that may damage the gas service regulator.</text> </level> <level label="2"> <text>If it is impractical to install a gas service regulator in accordance with paragraph (1) of this subsection, guards shall be installed to protect the gas service regulator from external forces that may damage the gas service regulator.</text> </level> <level label="3"> <text>Guards may consist of posts, bollards, railings, or any other safety structure that will prevent damage to the gas service regulator.</text> </level> </level> <level label="d"> <level label="1"> <text>Subject to paragraph (2) of this subsection, on or before February 1, 2023, and each year thereafter, a gas company shall report to the Commission on progress through the end of the immediately preceding calendar year on the implementation of the plan approved under subsection (b) of this section.</text> </level> <level label="2"> <text>This subsection may not be construed to apply to a gas company that has fully implemented an approved plan under subsection (b) of this section.</text> </level> </level> <level label="e"> <text>On or before March 1 each year, beginning in 2023, the Commission shall provide a report to the Governor and, in accordance with § 2–1257 of the State Government Article, the General Assembly on each gas company’s progress in relocating gas service regulators in accordance with this section.</text> </level> </section> <section article="gpu" article_name="Public Utilities" number="7-314" title_number="7" title_name="Gas, Electric, and Water Companies" subtitle_number="3" subtitle_name="Consumer Relations"> <level label="a"> <text>This section applies to electric companies, electric cooperatives, and municipal utilities that offer customer choice for competitive electricity supply under Subtitle 5 of this title.</text> </level> <level label="b"> <text>A residential electric customer who has a change in the service address associated with the customer’s electricity account may maintain the customer’s competitive electricity supply contract for the new address if the new address is within the same electric territory as the old address.</text> </level> <level label="c"> <text>An electric company may not terminate a customer’s contract due to a change of address for the service address associated with the contract if the requirements under subsection (b) of this section are met.</text> </level> <level label="d"> <text>An electric company shall make any changes necessary to accommodate a customer’s change of address on notification by the customer.</text> </level> </section> <section article="gpu" article_name="Public Utilities" number="7-315" title_number="7" title_name="Gas, Electric, and Water Companies" subtitle_number="3" subtitle_name="Consumer Relations"> <level label="a"> <level label="1"> <text>In this section, “residential energy retailer” includes:</text> <level label="i"> <text>an electricity supplier that supplies electricity to residential retail electric customers;</text> </level> <level label="ii"> <text>a gas supplier that supplies gas to residential retail gas customers;</text> </level> <level label="iii"> <text>an energy salesperson; and</text> </level> <level label="iv"> <text>an energy vendor.</text> </level> </level> <level label="2"> <text>“Residential energy retailer” does not include:</text> <level label="i"> <text>the Department of General Services when the Department of General Services sells energy under § 7–704.4 of this title;</text> </level> <level label="ii"> <text>a community choice aggregator under § 7–510.3 of this title;</text> </level> <level label="iii"> <text>an electricity supplier when supplying electricity to commercial retail electric customers; or</text> </level> <level label="iv"> <text>a gas supplier that supplies gas to commercial retail gas customers.</text> </level> </level> </level> <level label="b"> <text>The Commission may adopt regulations to:</text> <level label="1"> <text>require a residential energy retailer to post notices and disclosures required under this title on the retailer’s website:</text> <level label="i"> <text>in a prominent location;</text> </level> <level label="ii"> <text>using at least a certain minimum font size; and</text> </level> <level label="iii"> <text>in a format approved by the Commission; and</text> </level> </level> <level label="2"> <text>require or prohibit the use of specific language in a residential energy retailer’s marketing materials, disclaimers, disclosures, and legal documents, including requiring or prohibiting the use of specific language based on service or product type.</text> </level> </level> <level label="c"> <text>The Commission shall require a residential energy retailer to post on the retailer’s website, in clear and unambiguous language:</text> <level label="1"> <text>the terms and conditions of the residential services and products sold by the retailer; and</text> </level> <level label="2"> <text>an environmental disclosure, in a format required by the Commission, for the residential services and products sold by the retailer.</text> </level> </level> </section> <section article="gpu" article_name="Public Utilities" number="7-316" title_number="7" title_name="Gas, Electric, and Water Companies" subtitle_number="3" subtitle_name="Consumer Relations"> <level label="a"> <text>In this section, “marketing” does not include materials to educate or inform a retail customer about standard offer service, default gas commodity service, or customer choice.</text> </level> <level label="b"> <text>Except as provided in subsection (d) of this section, an electric company or a gas company may not recover through its rates any costs associated with marketing its services.</text> </level> <level label="c"> <text>An electric cooperative may recover through its rates any costs associated with marketing its services, including the costs associated with materials that educate or inform a retail customer about standard offer service or customer choice.</text> </level> <level label="d"> <text>The Commission may, by regulation, adopt criteria for reviewing marketing and other communication materials of an electric company or a gas company to determine whether the cost of the materials may be recovered through the company’s rates.</text> </level> </section> <section article="gpu" article_name="Public Utilities" number="7-317" title_number="7" title_name="Gas, Electric, and Water Companies" subtitle_number="3" subtitle_name="Consumer Relations"> <level label="a"> <level label="1"> <text>Except as provided in §§ 10–14A–03 and 10–14B–03 of the State Government Article, beginning July 1, 2025, a person may not engage in the business of an energy salesperson in the State unless the person holds a license issued by the Commission.</text> </level> <level label="2"> <text>A licensed energy salesperson may offer or sell electricity supply agreements or gas supply agreements to customers in the State only if the energy salesperson is associated with a licensed electricity supplier or licensed gas supplier, respectively.</text> </level> </level> <level label="b"> <level label="1"> <text>An application for an energy salesperson license shall:</text> <level label="i"> <text>be made to the Commission in writing on a form adopted by the Commission;</text> </level> <level label="ii"> <text>be verified by oath or affirmation; and</text> </level> <level label="iii"> <text>contain information that the Commission requires, including:</text> <level label="1"> <text>proof of association with a licensed electricity supplier or licensed gas supplier, as appropriate;</text> </level> <level label="2"> <text>proof of compliance with all applicable training requirements for customer protection under this subtitle and Subtitles 5 and 6 of this title as required by the Commission; and</text> </level> <level label="3"> <text>payment of the applicable licensing fee.</text> </level> </level> </level> <level label="2"> <level label="i"> <text>The term of an energy salesperson license is 3 years.</text> </level> <level label="ii"> <text>The terms of licenses may be staggered as determined by the Commission.</text> </level> <level label="iii"> <text>Subject to subparagraph (v) of this paragraph, unless a license is renewed for a 3–year term in accordance with this subsection, the license expires on the date that the Commission sets.</text> </level> <level label="iv"> <text>A licensee may renew a license for a 3–year term before the license expires if the licensee:</text> <level label="1"> <text>otherwise is entitled to be licensed;</text> </level> <level label="2"> <text>submits to the Commission a renewal application on the form that the Commission provides; and</text> </level> <level label="3"> <text>pays to the Commission the applicable renewal fee set by the Commission.</text> </level> </level> <level label="v"> <text>A licensee may continue to provide services as an energy salesperson after the licensee’s license expires if the licensee’s renewal application is submitted to the Commission before the license expires.</text> </level> </level> </level> <level label="c"> <text>The Commission shall, by regulation or order:</text> <level label="1"> <text>require proof of financial integrity;</text> </level> <level label="2"> <text>require a licensee to post a bond or other similar instrument if, in the Commission’s judgment, the bond or similar instrument is necessary to ensure an energy salesperson’s financial integrity; and</text> </level> <level label="3"> <text>adopt any other requirements the Commission finds to be in the public interest.</text> </level> </level> <level label="d"> <text>A license issued under this section may not be transferred without prior Commission approval.</text> </level> </section> <section article="gpu" article_name="Public Utilities" number="7-318" title_number="7" title_name="Gas, Electric, and Water Companies" subtitle_number="3" subtitle_name="Consumer Relations"> <level label="a"> <text>Except as provided in §§ 10–14A–03 and 10–14B–03 of the State Government Article, beginning July 1, 2025, a person may not engage in the business of an energy vendor in the State unless the person holds a license issued by the Commission.</text> </level> <level label="b"> <level label="1"> <text>An application for an energy vendor license shall:</text> <level label="i"> <text>be made to the Commission in writing on a form adopted by the Commission;</text> </level> <level label="ii"> <text>be verified by oath or affirmation; and</text> </level> <level label="iii"> <text>contain information that the Commission requires, including payment of the applicable licensing fee.</text> </level> </level> <level label="2"> <level label="i"> <text>The term of an energy vendor license is 3 years.</text> </level> <level label="ii"> <text>The terms of licenses may be staggered as determined by the Commission.</text> </level> <level label="iii"> <text>Unless a license is renewed for a 3–year term in accordance with this subsection, the license expires on the date that the Commission sets.</text> </level> <level label="iv"> <text>A licensee may renew a license for a 3–year term before the license expires if the licensee:</text> <level label="1"> <text>otherwise is entitled to be licensed;</text> </level> <level label="2"> <text>submits to the Commission a renewal application on the form that the Commission provides; and</text> </level> <level label="3"> <text>pays to the Commission the applicable renewal fee set by the Commission.</text> </level> </level> </level> </level> <level label="c"> <text>The Commission shall, by regulation or order:</text> <level label="1"> <text>require proof of financial integrity;</text> </level> <level label="2"> <text>require a licensee to post a bond or other similar instrument if, in the Commission’s judgment, the bond or similar instrument is necessary to ensure an energy vendor’s financial integrity; and</text> </level> <level label="3"> <text>adopt any other requirements the Commission finds to be in the public interest.</text> </level> </level> <level label="d"> <text>A license issued under this section may not be transferred without prior Commission approval.</text> </level> </section> <section article="gpu" article_name="Public Utilities" number="7-319" title_number="7" title_name="Gas, Electric, and Water Companies" subtitle_number="3" subtitle_name="Consumer Relations"> <level label="a"> <text>In this section, “low–emissions housing” means housing that is engineered to or uses measures that reduce greenhouse gas emissions.</text> </level> <level label="b"> <text>There is a Green and Healthy Task Force.</text> </level> <level label="c"> <text>The Task Force consists of the following members:</text> <level label="1"> <text>two members of the Senate of Maryland, appointed by the President of the Senate;</text> </level> <level label="2"> <text>two members of the House of Delegates, appointed by the Speaker of the House;</text> </level> <level label="3"> <text>the Secretary of Housing and Community Development, or the Secretary’s designee;</text> </level> <level label="4"> <text>the Secretary of Human Services, or the Secretary’s designee;</text> </level> <level label="5"> <text>the Director of the Maryland Energy Administration, or the Director’s designee;</text> </level> <level label="6"> <text>one representative of the Office of People’s Counsel; and</text> </level> <level label="7"> <text>as appointed by the chair of the Task Force:</text> <level label="i"> <text>one representative of the Maryland Affordable Housing Trust;</text> </level> <level label="ii"> <text>one representative of the Green and Healthy Homes Initiative;</text> </level> <level label="iii"> <text>one representative of Maryland Energy Efficiency Advocates;</text> </level> <level label="iv"> <text>one member who is an expert in public health;</text> </level> <level label="v"> <text>one member from a community concerned with environmental justice;</text> </level> <level label="vi"> <text>one member who owns or develops affordable housing;</text> </level> <level label="vii"> <text>one member who has received assistance from a low–income program that delivers energy efficiency measures; and</text> </level> <level label="viii"> <text>other members as determined by the chair of the Task Force.</text> </level> </level> </level> <level label="d"> <text>The Secretary of Housing and Community Development, or the Secretary’s designee, shall serve as chair of the Task Force.</text> </level> <level label="e"> <text>The Department of Housing and Community Development shall provide staff for the Task Force.</text> </level> <level label="f"> <text>A member of the Task Force:</text> <level label="1"> <text>may not receive compensation as a member of the Task Force; but</text> </level> <level label="2"> <text>is entitled to reimbursement for expenses under the Standard State Travel Regulations, as provided in the State budget.</text> </level> </level> <level label="g"> <text>The Task Force shall:</text> <level label="1"> <text>beginning July 1, 2023, meet quarterly for a period of 3 years;</text> </level> <level label="2"> <text>advance the alignment, branding, and coordination of resources to more effectively deliver green and healthy housing for low–income households in the State;</text> </level> <level label="3"> <text>examine the public and private resources needed to address the housing needs of low–income communities;</text> </level> <level label="4"> <text>develop policy and statutory recommendations to eliminate barriers to low–income households achieving healthy, energy–efficient, affordable, and low–emissions housing; and</text> </level> <level label="5"> <text>engage with interested parties and collaborate with other entities that can help advance the goals of the Task Force, including experts in the field of healthy, energy–efficient, and low–emissions housing.</text> </level> </level> <level label="h"> <text>On or before July 1, 2024, and each July 1 through 2027, the Task Force shall report its findings and recommendations to the Secretary of Health, the Secretary of the Environment, the Commission, the Governor, and, in accordance with § 2–1257 of the State Government Article, the General Assembly.</text> </level> </section> <section article="gpu" article_name="Public Utilities" number="7-320" title_number="7" title_name="Gas, Electric, and Water Companies" subtitle_number="3" subtitle_name="Consumer Relations"> <level label="a"> <text>This section applies only to residential rooftop solar energy generating systems.</text> </level> <level label="b"> <text>A seller or lessor of residential rooftop solar energy generating systems shall:</text> <level label="1"> <text>provide to the buyer or lessee a 5–year full warranty on the installation and component parts of the system;</text> </level> <level label="2"> <text>include any manufacturer’s warranties for any of the products or components of the system;</text> </level> <level label="3"> <text>inform the buyer or lessee of the minimum level of weather–adjusted energy production the buyer or lessee may expect from the system; and</text> </level> <level label="4"> <text>certify, in writing, that installation of the system is compliant with all federal, State, and local laws regarding workmanship and that the solar panels, inverters, racking systems, and all other components meet the minimum standards for product design.</text> </level> </level> <level label="c"> <text>The Maryland Department of Labor shall:</text> <level label="1"> <text>develop a special solar contractor license for the installation and maintenance of residential rooftop solar energy generating systems; and</text> </level> <level label="2"> <text>establish minimum qualifications for individuals installing and maintaining residential rooftop solar energy generating systems.</text> </level> </level> <level label="d"> <text>A seller or lessor who violates the requirements of this section shall pay a fine not exceeding $1,000 for each violation.</text> </level> </section> <section article="gpu" article_name="Public Utilities" number="7-321" title_number="7" title_name="Gas, Electric, and Water Companies" subtitle_number="3" subtitle_name="Consumer Relations"> <level label="a"> <text>In this section, “portable solar energy generating system” means a movable photovoltaic solar energy generation device that is:</text> <level label="1"> <text>designed to be connected to a building’s electrical system through a standard electrical outlet;</text> </level> <level label="2"> <text>primarily intended to offset part of the building’s electricity consumption;</text> </level> <level label="3"> <text>limited to supplying a maximum power output of not more than 1,200 watts back to the electric system of the building; and</text> </level> <level label="4"> <text>certified by Underwriters Laboratory or an equivalent nationally recognized testing laboratory.</text> </level> </level> <level label="b"> <text>A person may purchase and install not more than one portable solar energy generating system per electric meter for residential use only.</text> </level> <level label="c"> <text>A portable solar energy generating system:</text> <level label="1"> <text>is not subject to the requirements of §§ 7–306 and 7–306.1 of this subtitle;</text> </level> <level label="2"> <text>is not eligible for inclusion in meeting the renewable energy portfolio standard; and</text> </level> <level label="3"> <text>may not generate renewable energy credits of any type.</text> </level> </level> <level label="d"> <text>An electric company:</text> <level label="1"> <text>may not require a customer using a portable solar energy generating system to:</text> <level label="i"> <text>obtain the electric company’s approval before installing or using the portable solar energy generating system;</text> </level> <level label="ii"> <text>pay any fee or charge related to the portable solar energy generating system’s ability to feed electricity back into the electric system; or</text> </level> <level label="iii"> <text>except as provided in subsection (e) of this section, install any additional controls or equipment beyond what is integrated into the portable solar energy generating system; and</text> </level> </level> <level label="2"> <text>is not liable for any damage caused by a portable solar energy generating system.</text> </level> </level> <level label="e"> <text>A customer using a portable solar energy generating system shall:</text> <level label="1"> <text>notify the electric company providing service in the service territory in which the generating system will be installed before installation;</text> </level> <level label="2"> <text>provide to the electric company providing service in the service territory in which the generating system will be or is installed a certification of the safety features and maximum generating capacity of the generating system; and</text> </level> <level label="3"> <text>if the generating system requires an automatic locking disconnect switch to be installed, pay for the switch installation.</text> </level> </level> <level label="f"> <text>A portable solar energy generating system that has a maximum power output to a standard electrical outlet of not more than 391 watts is exempt from product listing provisions from Underwriters Laboratory or an equivalent nationally recognized testing laboratory that would require alterations to the building’s premises, wiring, or electrical panels.</text> </level> </section> <section article="gpu" article_name="Public Utilities" number="7-401" title_number="7" title_name="Gas, Electric, and Water Companies" subtitle_number="4" subtitle_name="Energy Conservation Building Standards"> <level label="a"> <text>In this subtitle the following words have the meanings indicated.</text> </level> <level label="b"> <text>“B.T.U.” means a British Thermal Unit which is the quantity of heat required to raise the temperature of 1 pound of water 1 degree Fahrenheit.</text> </level> <level label="c"> <text>“Builder” means:</text> <level label="1"> <text>the person with whom the owner of a building enters into a contract or agreement to be principally responsible for the construction of the building, either individually or as a general contractor; or</text> </level> <level label="2"> <text>the owner of a building, if the owner constructs the building or serves as the owner’s own general contractor.</text> </level> </level> <level label="d"> <level label="1"> <text>“Building” means any new structure that:</text> <level label="i"> <text>is designed for human use or occupancy;</text> </level> <level label="ii"> <text>provides a method of controlling energy usage within its exterior envelope; and</text> </level> <level label="iii"> <text>as designed, does not have a peak design rate of energy usage per square foot of floor area of less than 3.5 B.T.U. per hour or 1 watt.</text> </level> </level> <level label="2"> <text>“Building” includes any portion of an otherwise excluded new structure if that portion of the structure is primarily for human use or occupancy because the exterior envelopes, heating, venting and air conditioning systems, service water heating, and electrical distribution and illuminating systems are designed for that portion of the structure that is primarily for human use or occupancy.</text> </level> <level label="3"> <text>“Building” does not include:</text> <level label="i"> <text>an addition to an existing structure or a single-family dwelling that is to constitute the principal residence of the builder;</text> </level> <level label="ii"> <text>a structure with a permanent heating and cooling system that utilizes a source other than natural gas, a petroleum product, or electricity;</text> </level> <level label="iii"> <text>an industrialized building as defined in § 12-301 of the Public Safety Article that bears an insignia furnished by the Department of Housing and Community Development under Title 12, Subtitle 3 of the Public Safety Article; and</text> </level> <level label="iv"> <text>a manufactured home as defined in § 12-301 of the Public Safety Article that bears an insignia issued by the Department of Housing and Community Development under Title 12, Subtitle 3 of the Public Safety Article.</text> </level> </level> </level> <level label="e"> <text>“Energy Code” means energy conservation standards adopted under COMAR 05.02.07.04 Maryland Building Performance Standards (MBPS) under the authority of Title 12, Subtitle 5 of the Public Safety Article.</text> </level> <level label="f"> <text>“Political subdivision” means a county, Baltimore City, or a municipal corporation.</text> </level> </section> <section article="gpu" article_name="Public Utilities" number="7-402" title_number="7" title_name="Gas, Electric, and Water Companies" subtitle_number="4" subtitle_name="Energy Conservation Building Standards"> <text>Except as provided in § 7-406(c) of this subtitle, the provisions of this subtitle do not apply to any building constructed within the boundaries of a political subdivision if:</text> <level label="1"> <text>the political subdivision has adopted the Energy Code; and</text> </level> <level label="2"> <text>the Energy Code adopted by the political subdivision applies to the building being constructed.</text> </level> </section> <section article="gpu" article_name="Public Utilities" number="7-403" title_number="7" title_name="Gas, Electric, and Water Companies" subtitle_number="4" subtitle_name="Energy Conservation Building Standards"> <level label="a"> <level label="1"> <text>Except as provided in paragraph (2) of this subsection and § 7–404 of this subtitle, a builder of any building that is completed after July 1, 1982, shall certify under oath to the electric company designated to provide electric service to the building that the building meets the latest edition of the Energy Code.</text> </level> <level label="2"> <text>If the building was designed while the immediately preceding edition of the Energy Code was in effect and the building was constructed in accordance with the then preceding edition of the Energy Code, the builder may so certify in order to satisfy the requirements of this section.</text> </level> </level> <level label="b"> <level label="1"> <text>The certification shall be made on a form that is provided by the Department of Housing and Community Development.</text> </level> <level label="2"> <text>The certificate shall contain a statement to the effect that any action brought by the first purchaser against the builder under § 7–406(b) of this subtitle may be brought within 3 years after the date on which the builder provided the first purchaser with a copy of the certificate or the waiver as provided in § 7–406(a) of this subtitle.</text> </level> </level> <level label="c"> <level label="1"> <text>The builder shall file the certificate with the electric company in person or by certified mail, return receipt requested.</text> </level> <level label="2"> <text>If the builder is a corporation, the certificate shall be submitted under oath by an officer of the corporation.</text> </level> </level> </section> <section article="gpu" article_name="Public Utilities" number="7-404" title_number="7" title_name="Gas, Electric, and Water Companies" subtitle_number="4" subtitle_name="Energy Conservation Building Standards"> <level label="a"> <text>Subject to the provisions of this section, the Department of Housing and Community Development may grant a waiver from the certification requirements specified in § 7-403 of this subtitle for any building:</text> <level label="1"> <text>to which a significant commitment had been made to its design or construction prior to January 1, 1982; and</text> </level> <level label="2"> <text>for which imposition of energy conservation standards under this subtitle would pose a substantial financial hardship.</text> </level> </level> <level label="b"> <text>For any waiver granted under this section, the Department shall issue a written statement that clearly identifies the building affected and that specifies that the Department has granted a waiver from the energy conservation requirements of this subtitle.</text> </level> <level label="c"> <text>To be effective, the builder shall file the statement of waiver issued by the Department of Housing and Community Development in person or by certified mail, return receipt requested, with the electric company designated to provide electric service to the building.</text> </level> </section> <section article="gpu" article_name="Public Utilities" number="7-405" title_number="7" title_name="Gas, Electric, and Water Companies" subtitle_number="4" subtitle_name="Energy Conservation Building Standards"> <level label="a"> <level label="1"> <text>Except as provided in paragraph (2) of this subsection, an electric company may not provide electric service to any building on which construction is completed after July 1, 1982, unless the builder has filed with the company the certificate or statement of waiver that is required under this subtitle.</text> </level> <level label="2"> <text>Paragraph (1) of this subsection does not apply to the temporary provision of electric service for use only during the process of constructing a building.</text> </level> </level> <level label="b"> <text>If it is later determined that a building did not conform to the energy conservation standards to which the builder has certified or that a false waiver was provided to the electric company by the builder, the electric company may not be held liable for that noncompliance.</text> </level> <level label="c"> <level label="1"> <text>Certificates and statements of waiver filed with an electric company under this subtitle shall be made available to the public.</text> </level> <level label="2"> <text>The electric company:</text> <level label="i"> <text>shall provide a copy of any certificate or statement of waiver that it has on file to any person on request within a reasonable time not to exceed 5 working days; and</text> </level> <level label="ii"> <text>may charge a reasonable fee for any copy of a certificate or statement of waiver that it provides.</text> </level> </level> <level label="3"> <text>The electric company is not required to retain a certificate or a statement of waiver filed with the electric company under this subsection beyond 3 years from the date the certificate or statement of waiver was filed with the electric company.</text> </level> </level> </section> <section article="gpu" article_name="Public Utilities" number="7-406" title_number="7" title_name="Gas, Electric, and Water Companies" subtitle_number="4" subtitle_name="Energy Conservation Building Standards"> <level label="a"> <level label="1"> <text>A builder subject to the provisions of this subtitle shall:</text> <level label="i"> <text>provide the first purchaser of the building with a copy of the certificate that is filed with the electric company; or</text> </level> <level label="ii"> <text>if the builder was issued a waiver under § 7–404 of this subtitle, provide the first purchaser with a copy of the statement of waiver.</text> </level> </level> <level label="2"> <text>If the first purchaser of the building resells the building without having occupied or rented it, at the time of the resale, the first purchaser shall provide the next purchaser with the copy of the certificate or the statement of waiver.</text> </level> </level> <level label="b"> <level label="1"> <text>If a builder fails to comply with the energy conservation standards required for certification under this subtitle, or the builder fails to obtain a statement of waiver under this subtitle, the builder is liable to the first purchaser who either occupies or rents the building for an amount not to exceed $2,000 and for:</text> <level label="i"> <text>the cost of bringing the building into compliance with the standards required under this subtitle;</text> </level> <level label="ii"> <text>the reasonable attorney’s fees and court costs of the purchaser; and</text> </level> <level label="iii"> <text>any reasonable costs incurred by the purchaser in determining that the builder did not comply with the energy conservation standards required under this subtitle.</text> </level> </level> <level label="2"> <text>An action under this subsection may not be brought more than 3 years after the date on which the builder provided the purchaser with a copy of the certificate or the waiver.</text> </level> <level label="3"> <text>If the builder is a corporation and the corporation is dissolved, the purchaser may bring any action authorized under this subsection against any person who was an officer of the corporation at the time that the alleged violation occurred.</text> </level> </level> <level label="c"> <level label="1"> <text>In any political subdivision that has adopted the Energy Code, if a builder of a building that is completed after July 1, 1982, willfully deviates from the approved plans for the building, the builder is liable to the first purchaser who either occupies or rents the building for an amount not to exceed $2,000 and for:</text> <level label="i"> <text>the cost of bringing the building into compliance with the Energy Code;</text> </level> <level label="ii"> <text>the reasonable attorney’s fees and court costs of the purchaser; and</text> </level> <level label="iii"> <text>any reasonable costs incurred by the purchaser in determining that the builder did not comply with the Energy Code.</text> </level> </level> <level label="2"> <text>An action under this subsection may not be brought more than 3 years after the date on which a use and occupancy permit is issued for the building by the political subdivision in which the building is located.</text> </level> <level label="3"> <text>If the builder is a corporation and the corporation is dissolved, the purchaser may bring any action authorized under this subsection against any person who was an officer of the corporation at the time that the alleged violation occurred.</text> </level> <level label="4"> <text>The provisions of paragraph (1) of this subsection are in addition to any other remedies available under State or local law.</text> </level> </level> </section> <section article="gpu" article_name="Public Utilities" number="7-407" title_number="7" title_name="Gas, Electric, and Water Companies" subtitle_number="4" subtitle_name="Energy Conservation Building Standards"> <level label="a"> <text>A person who fails or causes another to fail to submit a certification or statement of waiver to an electric company as required by this subtitle and a person who knowingly submits or knowingly causes to be submitted a false certification or statement of waiver, is guilty of a misdemeanor and on conviction is subject to a fine not exceeding $5,000.</text> </level> <level label="b"> <text>An electric company that knowingly provides service in violation of this subtitle is guilty of a misdemeanor and on conviction is subject to a fine not exceeding $5,000.</text> </level> </section> <section article="gpu" article_name="Public Utilities" number="7-408" title_number="7" title_name="Gas, Electric, and Water Companies" subtitle_number="4" subtitle_name="Energy Conservation Building Standards"> <text>This subtitle may be cited as the Energy Conservation Building Standards Act.</text> </section> <section article="gpu" article_name="Public Utilities" number="7-501" title_number="7" title_name="Gas, Electric, and Water Companies" subtitle_number="5" subtitle_name="Electric Industry Restructuring"> <level label="a"> <text>In this subtitle the following words have the meanings indicated.</text> </level> <level label="b"> <text>“Affiliate” means a person that directly or indirectly, or through one or more intermediaries, controls, is controlled by, or is under common control with, or has, directly or indirectly, any economic interest in another person.</text> </level> <level label="c"> <level label="1"> <text>“Assignee” means a person to whom an electric company assigns or transfers all or a portion of its interest in intangible transition property, other than as security.</text> </level> <level label="2"> <text>“Assignee” includes a person to whom all or a portion of the interest is subsequently assigned or transferred.</text> </level> </level> <level label="d"> <text>“Competitive transition charge” means a rate, charge, credit, or other appropriate mechanism authorized to be imposed for the recovery of transition costs as determined by the Commission under § 7–513 of this subtitle.</text> </level> <level label="e"> <text>“Consumer” and “customer” each means a retail electric customer.</text> </level> <level label="f"> <text>“Customer choice” means the right of electricity suppliers and customers to utilize and interconnect with the electric distribution system on a nondiscriminatory basis at rates, terms, and conditions of service comparable to the electric company’s own use of the system to distribute electricity from an electricity supplier to a customer, under which a customer has the opportunity to purchase electricity from the customer’s choice of licensed electricity suppliers.</text> </level> <level label="g"> <text>“Distribution territory” means the geographic area in which an electric company was providing electric transmission or distribution services to customers on July 1, 1999.</text> </level> <level label="h"> <text>“Independent system operator” means an entity authorized by the Federal Energy Regulatory Commission to control a regional transmission grid.</text> </level> <level label="i"> <text>“Initial implementation date” means:</text> <level label="1"> <text>July 1, 2000, for investor–owned electric companies;</text> </level> <level label="2"> <text>the date or dates determined by the Commission for Electric Cooperatives and Municipal Electric Utilities; or</text> </level> <level label="3"> <text>another date or dates determined by the Commission under § 7–510(b) of this subtitle.</text> </level> </level> <level label="j"> <text>“Intangible transition charge” means a nonbypassable rate, charge, or similar appropriate mechanism for the provision, availability, or termination of electric service, authorized to be imposed for the recovery of qualified transition costs under a qualified rate order of the Commission.</text> </level> <level label="k"> <text>“Intangible transition property” means the right, title, and interest of an electric company or assignee in a qualified rate order, including:</text> <level label="1"> <text>all rights in, to, and under the order, including rights to revenues, collections, claims, payments, money, or other property and amounts arising from the imposition of intangible transition charges under the order; and</text> </level> <level label="2"> <text>in the hands of an assignee:</text> <level label="i"> <text>the right to require the electric company to provide electric services, and to collect and remit the intangible transition charges authorized in the qualified rate order; but</text> </level> <level label="ii"> <text>not the right or duty to provide electric services.</text> </level> </level> </level> <level label="l"> <level label="1"> <text>“Public purpose program” means a program implemented with the intention of furthering a public purpose.</text> </level> <level label="2"> <text>“Public purpose program” includes:</text> <level label="i"> <text>a universal service program;</text> </level> <level label="ii"> <text>a program encouraging renewable energy resources;</text> </level> <level label="iii"> <text>a demand side management or other energy efficiency or conservation program; and</text> </level> <level label="iv"> <text>a consumer education program.</text> </level> </level> </level> <level label="m"> <text>“Qualified rate order” means an order of the Commission approving one or more intangible transition charges.</text> </level> <level label="n"> <text>“Standard offer service” means electric service that an electric company must offer to its customers under § 7–510(c) of this subtitle.</text> </level> <level label="o"> <text>“Transition bond” means a bond, debenture, note, certificate of participation or beneficial interest, or other evidence of indebtedness or ownership, approved in a qualified rate order and issued under an executed trust indenture or other agreement of an electric company or assignee, and which is secured by, evidences ownership interest in, or is payable from intangible transition property.</text> </level> <level label="p"> <text>“Transition cost” means a cost, liability, or investment that:</text> <level label="1"> <text>traditionally would have been or would be recoverable under rate–of–return regulation, but which may not be recoverable in a restructured electricity supply market; or</text> </level> <level label="2"> <text>arises as a result of electric industry restructuring and is related to the creation of customer choice.</text> </level> </level> <level label="q"> <level label="1"> <text>“Universal service program” means a program that helps low–income customers maintain electric service.</text> </level> <level label="2"> <text>“Universal service program” includes customer bill assistance and payment programs, termination of service protection, and policies and services that help low–income customers to reduce or manage energy consumption in a cost–effective manner.</text> </level> </level> </section> <section article="gpu" article_name="Public Utilities" number="7-502" title_number="7" title_name="Gas, Electric, and Water Companies" subtitle_number="5" subtitle_name="Electric Industry Restructuring"> <level label="a"> <text>Except as required under subsection (b) of this section, the provisions of this subtitle may not be applied to a small rural electric cooperative that:</text> <level label="1"> <text>has less than 10% of its distribution territory within the State;</text> </level> <level label="2"> <text>maintains its principal place of business outside the State; and</text> </level> <level label="3"> <text>is subject to, and conducts its operations within the State in compliance with, the laws of the state in which its principal place of business is located.</text> </level> </level> <level label="b"> <level label="1"> <text>A small rural electric cooperative, as described in subsection (a) of this section, shall be subject to all requirements and prohibitions adopted under the authority of §§ 7-505(b)(1) through (4), (6), (7), (11), and (12) and 7-507(e), (h), (i), (k), and (l) of this subtitle.</text> </level> <level label="2"> <text>In addition to the requirements for a small rural electric cooperative set forth in paragraph (1) of this subsection, a member of a small rural electric cooperative that receives electricity or electricity supply services from an entity other than the small rural electric cooperative may receive these services only from an entity that is licensed under § 7-507 of this subtitle.</text> </level> </level> </section> <section article="gpu" article_name="Public Utilities" number="7-504" title_number="7" title_name="Gas, Electric, and Water Companies" subtitle_number="5" subtitle_name="Electric Industry Restructuring"> <text>The General Assembly finds and declares that the purpose of this subtitle is to:</text> <level label="1"> <text>establish customer choice of electricity supply and electricity supply services;</text> </level> <level label="2"> <text>create competitive retail electricity supply and electricity supply services markets;</text> </level> <level label="3"> <text>deregulate the generation, supply, and pricing of electricity;</text> </level> <level label="4"> <text>provide economic benefits for all customer classes; and</text> </level> <level label="5"> <text>ensure compliance with federal and State environmental standards.</text> </level> </section> <section article="gpu" article_name="Public Utilities" number="7-505" title_number="7" title_name="Gas, Electric, and Water Companies" subtitle_number="5" subtitle_name="Electric Industry Restructuring"> <level label="a"> <level label="1"> <text>In assessing and approving each electric company’s restructuring plan, and overseeing the transition process and regulation of the restructured electric industry, the Commission shall provide that the transition to a competitive electricity supply and electricity supply services market shall be orderly, maintain electric system reliability, and ensure compliance with federal and State environmental regulations, be fair to customers, electric company investors, customers of municipal electric utilities, electric companies, and electricity suppliers, and provide economic benefits to all customer classes.</text> </level> <level label="2"> <text>The Commission shall consider the restructuring plans of municipal electric utilities, as specified under § 7–510 of this subtitle.</text> </level> </level> <level label="b"> <level label="1"> <text>The Commission shall issue the orders or adopt the regulations required under this subsection before the implementation of customer choice.</text> </level> <level label="2"> <text>The Commission shall order a universal service program, to be made available on a statewide basis, to benefit low–income customers, in accordance with § 5–5A–08 of the Human Services Article.</text> </level> <level label="3"> <text>The Commission shall order an electric company to adopt policies and practices reasonably designed to prevent:</text> <level label="i"> <text>discrimination against a person, locality, or particular class of service or giving undue or unreasonable preference in favor of the electric company’s own electricity supply, other services, divisions, or affiliates, if any; and</text> </level> <level label="ii"> <text>any other forms of self–dealing or practices that could result in noncompetitive electricity prices to customers.</text> </level> </level> <level label="4"> <level label="i"> <text>The Commission shall, by regulation or order, require each electric company and electricity supplier to provide adequate and accurate information to each customer on the available electric services of the electric company or electricity supplier, including disclosure, every 6 months, of a uniform common set of information about:</text> <level label="1"> <text>the fuel mix of the electricity purchased by customers, including categories of electricity from coal, natural gas, nuclear, oil, hydroelectric, solar, biomass, wind, and other resources, or disclosure of a regional fuel mix average; and</text> </level> <level label="2"> <text>the emissions, on a pound per megawatt–hour basis, of pollutants identified by the Commission, or disclosure of a regional fuel mix average.</text> </level> </level> <level label="ii"> <text>The Commission may require an electric company or an electricity supplier to provide documentation supporting the disclosures required under subparagraph (i) of this paragraph.</text> </level> </level> <level label="5"> <level label="i"> <text>The Commission shall, by regulation or order, require the unbundling of electric company rates, charges, and services into standardized categories determined by the Commission.</text> </level> <level label="ii"> <text>The Commission shall, by regulation or order, require that customers’ bills for electricity service indicate charges for:</text> <level label="1"> <text>distribution and transmission;</text> </level> <level label="2"> <text>transition charge or credit;</text> </level> <level label="3"> <text>universal service program charges;</text> </level> <level label="4"> <text>customer charges;</text> </level> <level label="5"> <text>taxes; and</text> </level> <level label="6"> <text>other charges identified by the Commission.</text> </level> </level> </level> <level label="6"> <text>The Commission shall issue orders or regulations to prevent an electric company and an electricity supplier from disclosing a retail electric customer’s billing, payment, and credit information without the retail electric customer’s consent, except as allowed by the Commission for bill collection or credit rating reporting purposes.</text> </level> <level label="7"> <text>An electricity supplier may not engage in marketing, advertising, or trade practices that are unfair, false, misleading, or deceptive.</text> </level> <level label="8"> <text>The Commission shall determine the terms, conditions, and rates of standard offer service in accordance with:</text> <level label="i"> <text>Title 4 of this article; or</text> </level> <level label="ii"> <text>as applicable, § 7–510(c)(4) of this subtitle.</text> </level> </level> <level label="9"> <text>In connection with § 7–513 of this subtitle, the Commission may not require an electric company to divest itself of a generation asset or prohibit an electric company from divesting itself voluntarily of a generation asset.</text> </level> <level label="10"> <level label="i"> <text>On or before July 1, 2000, the Commission shall issue orders or adopt regulations reasonably designed to ensure the creation of competitive electricity supply and electricity supply services markets, with appropriate customer safeguards.</text> </level> <level label="ii"> <text>On or before July 1, 2000, the Commission shall require:</text> <level label="1"> <text>an appropriate code of conduct between the electric company and an affiliate providing electricity supply and electricity supply services in the State;</text> </level> <level label="2"> <text>access by electricity suppliers and customers to the electric company’s transmission and distribution system on a nondiscriminatory basis;</text> </level> <level label="3"> <text>appropriate complaint and enforcement procedures; and</text> </level> <level label="4"> <text>any other safeguards deemed necessary by the Commission to ensure the creation and maintenance of a competitive electricity supply and electricity supply services market.</text> </level> </level> <level label="iii"> <text>On or before July 1, 2000, the Commission shall require, among other factors, functional, operational, structural, or legal separation between the electric company’s regulated businesses and its nonregulated businesses or nonregulated affiliates.</text> </level> </level> <level label="11"> <text>Nothing in this title may be construed as preventing the application of State and federal consumer protection and antitrust laws to electric companies and their affiliates, and to electricity suppliers.</text> </level> <level label="12"> <text>The Commission, in consultation with the Department of the Environment, shall adopt appropriate measures to maintain environmental standards, adapt existing programs, and develop new programs as appropriate to ensure compliance with federal and State environmental protection standards.</text> </level> <level label="13"> <level label="i"> <text>An electric company shall comply with all requirements of the Commission in conducting regulated operations in compliance with this division.</text> </level> <level label="ii"> <text>The Commission shall require each electric company to adopt a code of conduct to be approved by the Commission by a date to be determined by the Commission to prevent regulated service customers from subsidizing the services of unregulated businesses or affiliates of the electric company.</text> </level> </level> </level> <level label="c"> <level label="1"> <text>Notwithstanding any other provision of law, including subsection (d) of this section, and subject to § 4–213 of this article, the Commission may regulate the regulated services of an electric company through alternative forms of regulation.</text> </level> <level label="2"> <text>The Commission may adopt an alternative form of regulation under this section if the Commission finds, after notice and hearing, that the alternative form of regulation:</text> <level label="i"> <text>protects consumers;</text> </level> <level label="ii"> <text>ensures the quality, availability, and reliability of regulated electric services; and</text> </level> <level label="iii"> <text>is in the interest of the public, including shareholders of the electric company.</text> </level> </level> <level label="3"> <text>Alternative forms of regulation may include:</text> <level label="i"> <text>price regulation, including price freezes or caps;</text> </level> <level label="ii"> <text>revenue regulation;</text> </level> <level label="iii"> <text>ranges of authorized return;</text> </level> <level label="iv"> <text>rate of return;</text> </level> <level label="v"> <text>categories of services; or</text> </level> <level label="vi"> <text>price–indexing.</text> </level> </level> <level label="4"> <level label="i"> <text>Subject to subparagraph (ii) of this paragraph, the Commission shall conduct a proceeding and determine whether allowing the use of forecast test years, historic test years, or a hybrid model is in the best interests of and protects ratepayers.</text> </level> <level label="ii"> <text>The Commission may not approve a requested rate increase that is based on a forecast test year in a base rate proceeding until the later of:</text> <level label="1"> <text>the completion of the proceeding under subparagraph (i) of this paragraph; or</text> </level> <level label="2"> <text>April 1, 2027.</text> </level> </level> <level label="iii"> <text>On or before April 1, 2027, the Commission shall report to the General Assembly, in accordance with § 2–1257 of the State Government Article, on the results of the proceeding held under subparagraph (i) of this paragraph, including any Commission recommendations for legislative action.</text> </level> </level> </level> <level label="d"> <level label="1"> <text>The Commission shall cap, for 4 years after initial implementation of customer choice in the electric company’s distribution territory, the total of the rates of an electric company charged to a retail electric customer at the actual level of the rates in effect or authorized by the Commission on the date immediately preceding the initial implementation of customer choice in the electric company’s distribution territory.</text> </level> <level label="2"> <level label="i"> <text>Except as provided in subparagraph (ii) of this paragraph, the cap required under paragraph (1) of this subsection does not apply to the recovery of costs added after January 1, 2000, in accordance with § 7–512(c) of this subtitle.</text> </level> <level label="ii"> <text>The cap required under paragraph (1) of this subsection applies to the recovery of:</text> <level label="1"> <text>any transition costs under § 7–513 of this subtitle;</text> </level> <level label="2"> <text>any costs included in rates on January 1, 2000, in accordance with § 7–512(c) of this subtitle; and</text> </level> <level label="3"> <text>costs for the universal service program established under § 5–5A–08 of the Human Services Article.</text> </level> </level> </level> <level label="3"> <text>As part of a settlement, the Commission may approve a cap for a different time period or an alternative price protection plan that the Commission determines is equally protective of ratepayers.</text> </level> <level label="4"> <level label="i"> <level label="1"> <text>Subject to the provisions of paragraph (5) of this subsection, the Commission shall reduce residential rates for each investor–owned electric company by an amount between 3% and 7.5% of base rates, as measured on June 30, 1999.</text> </level> <level label="2"> <text>The reduction required under subsubparagraph 1 of this subparagraph shall begin on the initial implementation date and remain in effect for 4 years.</text> </level> <level label="3"> <text>The Commission shall determine the allocation of the rate reduction among the generation, transmission, and distribution residential rate components.</text> </level> </level> <level label="ii"> <text>In achieving the rate reduction required under subparagraph (i) of this paragraph, the Commission shall consider:</text> <level label="1"> <text>the expiration of any surcharge;</text> </level> <level label="2"> <text>changes in the electric company’s tax liability;</text> </level> <level label="3"> <text>cost of service determinations ordered by the Commission;</text> </level> <level label="4"> <text>net transition costs or benefits;</text> </level> <level label="5"> <text>the effect on the competitive electricity supply market;</text> </level> <level label="6"> <text>whether the rate reduction and rate cap will unduly impair the electric company’s financial condition;</text> </level> <level label="7"> <text>the costs associated with the universal service program; and</text> </level> <level label="8"> <text>the interests of the public, including shareholders of the electric company.</text> </level> </level> <level label="iii"> <text>The Commission may, within the parameters provided in subparagraph (i) of this paragraph, increase or decrease the actual rate reduction required.</text> </level> <level label="iv"> <text>The Commission may allow the recovery of any extraordinary costs based on the circumstances of an individual electric company if the Commission determines that the action is necessary and in the public interest.</text> </level> <level label="v"> <text>In determining the rate reduction required under subparagraph (i) of this paragraph, the Commission may not increase rates for nonresidential customers.</text> </level> </level> <level label="5"> <text>The requirements of paragraph (4) of this subsection do not apply to an electric company if the Commission approves or has in effect a settlement that the Commission determines is equally protective of ratepayers.</text> </level> </level> </section> <section article="gpu" article_name="Public Utilities" number="7-506" title_number="7" title_name="Gas, Electric, and Water Companies" subtitle_number="5" subtitle_name="Electric Industry Restructuring"> <level label="a"> <text>The electric company in a distribution territory shall provide and be responsible for distribution services in the territory.</text> </level> <level label="b"> <text>The electric company shall provide distribution services in its distribution territory to all customers and electricity suppliers on rates, terms of access, and conditions that are comparable to the electric company’s own use of its distribution system.</text> </level> <level label="c"> <text>Each electric company shall maintain the reliability of its distribution system in accordance with § 7–213 of this title and applicable orders, tariffs, and regulations of the Commission.</text> </level> <level label="d"> <text>The electric company shall connect customers and deliver electricity on behalf of electricity suppliers consistent with the provisions of this division.</text> </level> <level label="e"> <text>The electric company shall provide standard offer service under § 7–510(c) of this subtitle.</text> </level> </section> <section article="gpu" article_name="Public Utilities" number="7-506.1" title_number="7" title_name="Gas, Electric, and Water Companies" subtitle_number="5" subtitle_name="Electric Industry Restructuring"> <level label="a"> <level label="1"> <text>This section applies only to:</text> <level label="i"> <text>an electricity supplier or other owner of a generating station that enters into a contract for the provision of the direct supply of electricity to a commercial or industrial customer in a way that bypasses:</text> <level label="1"> <text>interconnection of the load with the electric transmission and distribution systems; or</text> </level> <level label="2"> <text>the distribution services of an electric company; and</text> </level> </level> <level label="ii"> <text>a commercial or industrial customer that enters into a contract with an electricity supplier or other owner of a generating station for the provision of the direct supply of electricity as specified in item (i) of this paragraph.</text> </level> </level> <level label="2"> <text>This section does not apply to the use of electricity from an on–site generating station that has been approved under § 7–207.1 of this title.</text> </level> </level> <level label="b"> <text>The Commission may apply to a commercial or industrial customer and any generating station supplying electricity to the commercial or industrial customer in the manner specified in subsection (a)(1) of this section:</text> <level label="1"> <text>any direct or indirect costs, fees, and obligations that are normally applied to retail electric customers in the service territory in which the commercial or industrial customer or generating station is located or interconnected if the Commission determines that the direct or indirect costs, fees, and obligations should be attributable to the commercial or industrial customer and any generating station supplying electricity to the commercial or industrial customer; and</text> </level> <level label="2"> <text>any avoided wholesale costs that the Commission determines have been or may be shifted inappropriately to other retail electric customers as a result of the provision of the direct supply of electricity as specified in subsection (a)(1) of this section, including:</text> <level label="i"> <text>transmission costs;</text> </level> <level label="ii"> <text>energy costs;</text> </level> <level label="iii"> <text>capacity costs; and</text> </level> <level label="iv"> <text>ancillary services costs.</text> </level> </level> </level> </section> <section article="gpu" article_name="Public Utilities" number="7-507" title_number="7" title_name="Gas, Electric, and Water Companies" subtitle_number="5" subtitle_name="Electric Industry Restructuring"> <level label="a"> <text>A person, other than an electric company providing standard offer service under § 7–510(c) of this subtitle, a municipal electric utility serving customers solely in its distribution territory, the Department of General Services selling energy under § 7–704.4 of this title, or a community choice aggregator under § 7–510.3 of this subtitle, may not engage in the business of an electricity supplier in the State unless the person holds a license issued by the Commission.</text> </level> <level label="b"> <level label="1"> <text>An application for an electricity supplier license shall:</text> <level label="i"> <text>be made to the Commission in writing on a form adopted by the Commission;</text> </level> <level label="ii"> <text>be verified by oath or affirmation; and</text> </level> <level label="iii"> <text>contain information that the Commission requires, including:</text> <level label="1"> <text>proof of technical and managerial competence;</text> </level> <level label="2"> <text>proof of compliance with all applicable requirements of the Federal Energy Regulatory Commission, and any independent system operator or regional or system transmission operator to be used by the licensee;</text> </level> <level label="3"> <text>a certification of compliance with applicable federal and State environmental laws and regulations that relate to the generation of electricity; and</text> </level> <level label="4"> <text>payment of the applicable licensing fee.</text> </level> </level> </level> <level label="2"> <level label="i"> <text>The term of a residential electricity supplier license is 3 years.</text> </level> <level label="ii"> <text>The terms of licenses may be staggered as determined by the Commission.</text> </level> <level label="iii"> <text>Unless a license for a residential electricity supplier is renewed for a 3–year term in accordance with this subsection, the license expires on the date that the Commission sets.</text> </level> <level label="iv"> <text>A licensee may renew a license for a 3–year term before the license expires if the licensee:</text> <level label="1"> <text>otherwise is entitled to be licensed;</text> </level> <level label="2"> <text>submits to the Commission a renewal application on the form that the Commission provides; and</text> </level> <level label="3"> <text>pays to the Commission the applicable renewal fee set by the Commission.</text> </level> </level> </level> </level> <level label="c"> <text>The Commission shall, by regulation or order:</text> <level label="1"> <text>require proof of financial integrity;</text> </level> <level label="2"> <text>require a licensee to post a bond or other similar instrument if, in the Commission’s judgment, the bond or similar instrument is necessary to insure an electricity supplier’s financial integrity;</text> </level> <level label="3"> <text>require a licensee to:</text> <level label="i"> <text>provide proof that the licensee is qualified to do business in the State with the Department of Assessments and Taxation; and</text> </level> <level label="ii"> <text>agree to be subject to all applicable taxes; and</text> </level> </level> <level label="4"> <text>adopt any other requirements the Commission finds to be in the public interest, which may include different requirements for:</text> <level label="i"> <text>electricity suppliers that serve only large customers; and</text> </level> <level label="ii"> <text>the different categories of electricity suppliers.</text> </level> </level> </level> <level label="d"> <text>A license issued under this section may not be transferred without prior Commission approval.</text> </level> <level label="e"> <text>The Commission shall adopt regulations or issue orders to:</text> <level label="1"> <text>protect consumers, electric companies, electricity suppliers, energy salespersons, and energy vendors from anticompetitive and abusive practices;</text> </level> <level label="2"> <text>require each electricity supplier, each energy salesperson, and each energy vendor to provide, in addition to the requirements under § 7–505(b)(5) of this subtitle, adequate and accurate customer information to enable customers to make informed choices regarding the purchase of any electricity services offered by the electricity supplier;</text> </level> <level label="3"> <text>establish reasonable restrictions on telemarketing;</text> </level> <level label="4"> <text>establish procedures for contracting with customers;</text> </level> <level label="5"> <text>establish requirements and limitations relating to deposits, billing, collections, and contract cancellations;</text> </level> <level label="6"> <text>establish provisions providing for the referral of a delinquent account by an electricity supplier to the standard offer service under § 7–510(c) of this subtitle; and</text> </level> <level label="7"> <text>establish procedures for dispute resolution.</text> </level> </level> <level label="f"> <text>In accordance with regulations or orders of the Commission, electricity bills, for competitive and regulated electric services, provided to consumers may provide, in addition to the requirements of § 7–505(b)(5) of this subtitle and subsection (e)(2) of this section, the following information:</text> <level label="1"> <text>the identity and phone number of the electricity supplier of the service;</text> </level> <level label="2"> <text>sufficient information to evaluate prices and services; and</text> </level> <level label="3"> <text>information identifying whether the price is regulated or competitive.</text> </level> </level> <level label="g"> <level label="1"> <text>An electricity supplier, an energy salesperson, an energy vendor, or any person or governmental unit may not, without first obtaining the customer’s permission:</text> <level label="i"> <text>make any change in the electricity supplier for a customer; or</text> </level> <level label="ii"> <text>add a new charge for a new or existing service or option.</text> </level> </level> <level label="2"> <text>The Commission shall adopt regulations or issue orders establishing procedures to prevent the practices prohibited under paragraph (1) of this subsection.</text> </level> </level> <level label="h"> <level label="1"> <text>An electricity supplier, an energy salesperson, or an energy vendor may not discriminate against any customer based wholly or partly on race, color, creed, national origin, gender identity, disability, sexual orientation, or sex of an applicant for service or for any arbitrary, capricious, or unfairly discriminatory reason.</text> </level> <level label="2"> <text>An electricity supplier, an energy salesperson, or an energy vendor may not refuse to provide service to a customer except by the application of standards that are reasonably related to the electricity supplier’s economic and business purposes.</text> </level> </level> <level label="i"> <text>An electricity supplier, an energy salesperson, and an energy vendor shall be subject to all applicable federal and State environmental laws and regulations.</text> </level> <level label="j"> <text>An electricity supplier shall post on the Internet information that is readily understandable about its services and rates for small commercial and residential electric customers.</text> </level> <level label="k"> <level label="1"> <text>Subject to subsection (r) of this section, for just cause on the Commission’s own investigation or on complaint of the Office of People’s Counsel, the Attorney General, or an affected party, the Commission may:</text> <level label="i"> <text>deny a license to, or revoke, suspend, or refuse to renew the license of, an electricity supplier, an energy salesperson, or an energy vendor;</text> </level> <level label="ii"> <text>impose a civil penalty or other remedy;</text> </level> <level label="iii"> <text>order a refund or credit to a customer; or</text> </level> <level label="iv"> <text>impose a moratorium on adding or soliciting additional customers by the electricity supplier, energy salesperson, or energy vendor.</text> </level> </level> <level label="2"> <text>A civil penalty may be imposed in addition to the Commission’s decision to deny, revoke, suspend, or refuse to renew a license or impose a moratorium.</text> </level> <level label="3"> <text>Just cause includes:</text> <level label="i"> <text>intentionally providing false information to the Commission;</text> </level> <level label="ii"> <text>switching, or causing to be switched, the electricity supply for a customer without first obtaining the customer’s permission;</text> </level> <level label="iii"> <text>failing to provide electricity for its customers;</text> </level> <level label="iv"> <text>committing fraud or engaging in deceptive practices;</text> </level> <level label="v"> <text>failing to maintain financial integrity;</text> </level> <level label="vi"> <text>violating a Commission regulation or order;</text> </level> <level label="vii"> <text>failing to pay, collect, remit, or calculate accurately applicable State or local taxes;</text> </level> <level label="viii"> <text>violating a provision of this article or any other applicable consumer protection law of the State;</text> </level> <level label="ix"> <text>conviction of a felony by the licensee or principal of the licensee or any crime involving fraud, theft, or deceit;</text> </level> <level label="x"> <text>denial, suspension, or revocation of or refusal to renew a license by any State or federal authority; and</text> </level> <level label="xi"> <text>commission of any of the acts described in items (i) through (x) of this paragraph by a person that is an affiliate of the licensee or that is under common control with the licensee.</text> </level> </level> </level> <level label="l"> <level label="1"> <text>An electricity supplier, an energy vendor, or any other person, except for an energy salesperson, selling or offering to sell electricity in the State in violation of this section or § 7–318 of this title, after notice and an opportunity for a hearing, is subject to:</text> <level label="i"> <text>a civil penalty of not more than $25,000 for the violation;</text> </level> <level label="ii"> <text>license denial, revocation, or suspension or refusal to renew the license; or</text> </level> <level label="iii"> <text>both.</text> </level> </level> <level label="2"> <text>An energy salesperson selling or offering to sell electricity in the State in violation of this section or § 7–317 of this title, after notice and an opportunity for a hearing, is subject to license denial, revocation, or suspension or refusal to renew the license.</text> </level> <level label="3"> <text>Each day or part of a day a violation continues is a separate violation.</text> </level> <level label="4"> <text>Each customer to whom electricity is sold or offered in violation of this section is a separate violation.</text> </level> <level label="5"> <text>The Commission shall determine the amount of any civil penalty after considering:</text> <level label="i"> <text>the number of previous violations of any provision of this division by the electricity supplier, energy vendor, or other person;</text> </level> <level label="ii"> <text>the gravity of the current violation;</text> </level> <level label="iii"> <text>the good faith of the electricity supplier, energy vendor, or other person charged in attempting to achieve compliance after notification of the violation; and</text> </level> <level label="iv"> <text>any other matter that the Commission considers appropriate and relevant.</text> </level> </level> </level> <level label="m"> <text>In connection with a consumer complaint or Commission investigation under this section or § 7–317 or § 7–318 of this title, an electricity supplier, an energy salesperson, energy vendor, and any other person selling or offering to sell electricity in the State shall provide to the Commission access to any accounts, books, papers, and documents that the Commission considers necessary to resolve the matter at issue.</text> </level> <level label="n"> <text>The Commission may order the electricity supplier, energy salesperson, an energy vendor, or other person to cease adding or soliciting additional customers or to cease serving customers in the State.</text> </level> <level label="o"> <text>The Commission shall consult with the Consumer Protection Division of the Office of the Attorney General before issuing regulations designed to protect consumers.</text> </level> <level label="p"> <text>The People’s Counsel shall have the same authority in licensing, complaint, and dispute resolution proceedings as it has in Title 2 of this article.</text> </level> <level label="q"> <text>Nothing in this subtitle may be construed to affect the authority of the Division of Consumer Protection in the Office of the Attorney General to enforce violations of Titles 13 and 14 of the Commercial Law Article or any other applicable State law or regulation in connection with the activities of electricity suppliers, energy salespersons, and energy vendors.</text> </level> <level label="r"> <text>The Commission may not impose a civil penalty on an energy salesperson under subsection (k) or (l) of this section.</text> </level> </section> <section article="gpu" article_name="Public Utilities" number="7-508" title_number="7" title_name="Gas, Electric, and Water Companies" subtitle_number="5" subtitle_name="Electric Industry Restructuring"> <level label="a"> <text>An electric company may transfer any of its generation facilities or generation assets to an affiliate.</text> </level> <level label="b"> <text>The transfer of a generation facility or generation asset to an affiliate may not affect or restrict the Commission’s determination of the value of a generation asset for purposes of transition costs or benefits under § 7-513(b) of this subtitle.</text> </level> <level label="c"> <level label="1"> <text>This subsection is in effect until the later of the date when:</text> <level label="i"> <text>all customers of the electric company are eligible for customer choice under § 7-510 of this subtitle; and</text> </level> <level label="ii"> <text>the amount of transition costs or benefits arising from the generation to be transferred has been finally determined by the Commission under § 7-513(a) through (c) of this subtitle.</text> </level> </level> <level label="2"> <text>The Commission may review and approve the transfer for the sole purpose of determining:</text> <level label="i"> <text>that the appropriate accounting has been followed;</text> </level> <level label="ii"> <text>that the transfer does not or would not result in an undue adverse effect on the proper functioning of a competitive electricity supply market; and</text> </level> <level label="iii"> <text>the appropriate transfer price and rate making treatment.</text> </level> </level> <level label="3"> <text>The Commission shall act on the transfer of a generation facility or generation asset under this subsection within 180 days after the electric company files its proposed transfer application and any required supporting information.</text> </level> </level> </section> <section article="gpu" article_name="Public Utilities" number="7-509" title_number="7" title_name="Gas, Electric, and Water Companies" subtitle_number="5" subtitle_name="Electric Industry Restructuring"> <level label="a"> <level label="1"> <text>On and after the initial implementation date, the generation, supply, and sale of electricity, including all related facilities and assets, may not be regulated as an electric company service or function except to:</text> <level label="i"> <text>establish the price for standard offer service under § 7–510(c) of this subtitle; and</text> </level> <level label="ii"> <text>review and approve transfers of generation assets under § 7–508 of this subtitle.</text> </level> </level> <level label="2"> <text>This subsection does not apply to:</text> <level label="i"> <text>regulation of an electricity supplier under § 7–507 of this subtitle; or</text> </level> <level label="ii"> <text>the costs of nuclear generation facilities or purchased power contracts that, as part of a settlement approved by the Commission, remain regulated or are recovered through the distribution function.</text> </level> </level> </level> <level label="b"> <level label="1"> <text>Subject to paragraph (2) of this subsection, this section does not apply to an investor–owned electric company until the electric company:</text> <level label="i"> <text>transfers generation facilities and generation assets to an affiliate of the electric company, and the affiliate operates the facilities and assets; or</text> </level> <level label="ii"> <text>sells the generation facilities and generation assets to a nonaffiliate.</text> </level> </level> <level label="2"> <level label="i"> <text>Notwithstanding the provisions of paragraph (1) of this subsection, this section applies to an investor–owned electric company that does not transfer its generation facilities and generation assets to an affiliate or sell its generation facilities and generation assets to a nonaffiliate if, on January 1, 1999, the retail peak load of the investor–owned electric company in the State was less than 1,000 megawatts.</text> </level> <level label="ii"> <text>An investor–owned electric company to which this section applies through subparagraph (i) of this paragraph shall, by January 1, 2001:</text> <level label="1"> <text>transfer its generation facilities and generation assets to an affiliate of the investor–owned electric company that operates the facilities and assets; or</text> </level> <level label="2"> <text>sell the generation facilities and generation assets to a nonaffiliate.</text> </level> </level> </level> </level> <level label="c"> <text>The exceptions in subsection (a)(1) of this section as to any electric company shall remain in effect until the latest of:</text> <level label="1"> <text>the date when all customers of that electric company are eligible for customer choice under § 7–510 of this subtitle;</text> </level> <level label="2"> <text>the date when the amount of transition costs or benefits arising from the generation that is deregulated has been finally determined by the Commission under § 7–513(a) through (c) of this subtitle; or</text> </level> <level label="3"> <text>the date on which the obligation of the electric company to provide standard offer service under § 7–510(c)(3)(ii) of this subtitle terminates.</text> </level> </level> </section> <section article="gpu" article_name="Public Utilities" number="7-510" title_number="7" title_name="Gas, Electric, and Water Companies" subtitle_number="5" subtitle_name="Electric Industry Restructuring"> <level label="a"> <level label="1"> <text>Subject to subsection (b) of this section, the phased implementation of customer choice shall be implemented as follows:</text> <level label="i"> <text>on July 1, 2000, one–third of the residential class in the State of each electric company shall have the opportunity for customer choice;</text> </level> <level label="ii"> <text>on January 1, 2001, the entire industrial class and the entire commercial class in the State of each electric company shall have the opportunity for customer choice;</text> </level> <level label="iii"> <text>on July 1, 2001, two–thirds of the residential class in the State of each electric company shall have the opportunity for customer choice;</text> </level> <level label="iv"> <text>on July 1, 2002, all customers of each electric company shall have the opportunity for customer choice; and</text> </level> <level label="v"> <text>by July 1, 2003, under a separate schedule adopted by the Commission, all customers of each electric cooperative shall have the opportunity for customer choice.</text> </level> </level> <level label="2"> <level label="i"> <text>In accordance with this paragraph, the Commission may adopt a separate schedule for municipal electric utilities for the implementation of customer choice.</text> </level> <level label="ii"> <text>A municipal electric utility may not be required to make its service territory available for customer choice unless it elects to do so.</text> </level> <level label="iii"> <text>If a municipal electric utility elects to allow customer choice, the municipal electric utility shall file a proposed plan and schedule with the Commission.</text> </level> <level label="iv"> <text>The Commission may approve each municipal electric utility plan and schedule after considering the features that distinguish the municipal electric utility from other electric companies.</text> </level> <level label="v"> <text>Nothing in this subtitle may be construed to require the functional, operational, structural, or legal separation of the regulated and nonregulated operations of the municipal electric utility.</text> </level> </level> <level label="3"> <text>If a municipal electric utility serves customers outside its distribution territory, electricity suppliers licensed under § 7–507 of this subtitle may serve the customers in the distribution territory of the municipal electric utility.</text> </level> </level> <level label="b"> <text>For good cause shown and if the Commission finds the action to be in the public interest, the Commission may:</text> <level label="1"> <text>accelerate or delay the initial implementation date of July 1, 2000, by up to 3 months; or</text> </level> <level label="2"> <text>accelerate any of the other implementation dates and phase–in percentages in subsection (a) of this section.</text> </level> </level> <level label="c"> <level label="1"> <text>Beginning on the initial implementation date, an electric company’s obligation to provide electricity supply and electricity supply service is stated by this subsection.</text> </level> <level label="2"> <level label="i"> <text>Electricity supply purchased from a customer’s electric company is known as standard offer service.</text> </level> <level label="ii"> <text>A customer is considered to have chosen the standard offer service if the customer:</text> <level label="1"> <text>is not allowed to choose an electricity supplier under the phase in of customer choice in subsection (a) of this section;</text> </level> <level label="2"> <text>contracts for electricity with an electricity supplier and it is not delivered;</text> </level> <level label="3"> <text>cannot arrange for electricity from an electricity supplier;</text> </level> <level label="4"> <text>does not choose an electricity supplier;</text> </level> <level label="5"> <text>chooses the standard offer service; or</text> </level> <level label="6"> <text>has been denied service or referred to the standard offer service by an electricity supplier in accordance with § 7–507(e)(6) of this subtitle.</text> </level> </level> </level> <level label="3"> <level label="i"> <text>An electric company has the obligation to provide standard offer service to residential and small commercial customers at a market price that permits recovery of the verifiable, prudently incurred costs to procure or produce the electricity plus a reasonable return.</text> </level> <level label="ii"> <text>On or before December 31, 2008, and every 5 years thereafter, the Commission shall report to the Governor and, in accordance with § 2–1257 of the State Government Article, to the General Assembly on the status of the standard offer service and the development of competition.</text> </level> </level> <level label="4"> <level label="i"> <level label="1"> <text>On or before July 1, 2001, the Commission shall adopt regulations or issue orders to establish procedures for the competitive selection of wholesale electricity suppliers, including an affiliate of an electric company, to provide electricity for standard offer service to customers of electric companies under paragraph (2) of this subsection, except for customers of electric cooperatives and municipal electric utilities.</text> </level> <level label="2"> <text>Unless delayed by the Commission, the competitive selection shall take effect no later than July 1, 2003.</text> </level> </level> <level label="ii"> <level label="1"> <text>Under the obligation to provide standard offer service in accordance with this subsection, the Commission, by regulation or order, and in a manner that is designed to obtain the best price for residential and small commercial customers in light of market conditions at the time of procurement and the need to protect these customers from excessive price increases:</text> </level> <level label="A"> <text>shall require each investor–owned electric company to obtain its electricity supply for residential and small commercial customers participating in standard offer service through a competitive process in accordance with this paragraph; and</text> </level> <level label="B"> <text>may require or allow an investor–owned electric company to procure electricity for these customers directly from an electricity supplier through one or more bilateral contracts outside the competitive process.</text> </level> <level label="2"> <level label="A"> <text>As the Commission directs, the competitive process shall include a series of competitive wholesale bids in which the investor–owned electric company solicits bids to supply anticipated standard offer service load for residential and small commercial customers as part of a portfolio of blended wholesale supply contracts of short, medium, or long terms, and other appropriate electricity products and strategies, as needed to meet demand in a cost–effective manner.</text> </level> </level> <level label="B"> <text>The competitive process may include different bidding structures and mechanisms for base load, peak load, and very short–term procurement.</text> </level> <level label="C"> <text>By regulation or order, as a part of the competitive process, the Commission shall require or allow the procurement of cost–effective energy efficiency and conservation measures and services with projected and verifiable energy savings to offset anticipated demand to be served by standard offer service, and the imposition of other cost–effective demand–side management programs.</text> </level> <level label="3"> <level label="A"> <text>In order to prevent an excessive amount of load being exposed to upward price risks and volatility, the Commission may stagger the dates for the competitive wholesale auctions.</text> </level> </level> <level label="B"> <text>By regulation or order, the Commission may allow a date on which a competitive wholesale auction takes place to be altered based on current market conditions.</text> </level> <level label="4"> <text>By regulation or order, the Commission may allow an investor–owned electric company to refuse to accept some or all of the bids made in a competitive wholesale auction in accordance with standards adopted by the Commission.</text> </level> <level label="5"> <text>The investor–owned electric company shall publicly disclose the names of all bidders and the names and load allocation of all successful bidders 90 days after all contracts for supply are executed.</text> </level> </level> </level> <level label="5"> <text>An electric company may procure the electricity needed to meet its standard offer service electricity supply obligation from any electricity supplier, including an affiliate of the electric company.</text> </level> <level label="6"> <text>In order to meet long–term, anticipated demand in the State for standard offer service and other electricity supply, the Commission may require or allow an investor–owned electric company to construct, acquire, or lease, and operate, its own generating facilities, and transmission facilities necessary to interconnect the generating facilities with the electric grid, subject to appropriate cost recovery.</text> </level> <level label="7"> <level label="i"> <text>To determine whether an appropriate phased implementation of electricity rates that is necessary to protect residential customers from the impact of sudden and significant increases in electricity rates, the Commission in the case of an increase of 20% or more over the previous year’s total electricity rates, shall conduct evidentiary proceedings, including public hearings.</text> </level> <level label="ii"> <level label="1"> <text>A deferral of costs as part of a phased implementation of electricity rates by an investor–owned electric company shall be treated as a regulatory asset to be recovered in accordance with a rate stabilization plan under Part III of this subtitle or any other plan for phased implementation approved by the Commission.</text> </level> <level label="2"> <text>A deferral of costs under this paragraph must be just, reasonable, and in the public interest.</text> </level> </level> <level label="iii"> <text>The Commission shall approve the recovery of deferred costs under subparagraph (ii) of this paragraph as:</text> <level label="1"> <text>long–term recovery in accordance with a rate stabilization plan under Part III of this subtitle; or</text> </level> <level label="2"> <text>short–term recovery through a rate proceeding mechanism approved by the Commission.</text> </level> </level> <level label="iv"> <text>The Commission may approve a phasing in of increased costs by:</text> <level label="1"> <text>placing a cap on rates and allowing recovery over time; or</text> </level> <level label="2"> <text>allowing rates to increase and providing for a rebate to customers of any excess costs paid.</text> </level> </level> </level> <level label="8"> <level label="i"> <text>An electric cooperative that as of July 1, 2006, supplied its standard offer service load through a portfolio of blended wholesale supply contracts of short, medium, and long terms, and other appropriate electricity products and strategies, as needed to meet demand in a cost–effective manner, may choose to continue to use a blended portfolio:</text> <level label="1"> <text>as approved and modified by the electric cooperative’s board of directors; and</text> </level> <level label="2"> <text>with appropriate review for prudent cost recovery as determined by the Commission.</text> </level> </level> <level label="ii"> <text>The Commission may not set or enforce a termination date for the procurement of supply through a managed portfolio previously approved by the Commission.</text> </level> </level> <level label="9"> <level label="i"> <text>The Commission, on request by an electric cooperative or on its own initiative, shall initiate a proceeding to investigate options for a rate stabilization plan to assist residential electric customers to gradually adjust to market rates over an extended period of time.</text> </level> <level label="ii"> <text>If an electric cooperative determines that total electric rates for residential customers are anticipated to increase by more than 20% in a 12–month period resulting from an increase in the cost of generation, the electric cooperative shall survey its membership to determine whether to make a request to the Commission to initiate a proceeding under subsection (a) of this section.</text> </level> <level label="iii"> <text>Notwithstanding subparagraphs (i) and (ii) of this paragraph, as approved by the Commission, an electric cooperative may receive a modification in distribution and transmission rates.</text> </level> </level> <level label="10"> <level label="i"> <text>This paragraph does not apply to a member–regulated cooperative as defined in § 5–601 of the Corporations and Associations Article.</text> </level> <level label="ii"> <text>An electric cooperative may advertise, market, and promote standard offer service and related products in its service territory, including availability, price, and other terms, in compliance with appropriate consumer protections consistent with those that apply to electricity suppliers under § 7–507 of this subtitle.</text> </level> </level> </level> <level label="d"> <level label="1"> <text>This subsection applies to residential electricity supply other than supply offered through:</text> <level label="i"> <text>standard offer service;</text> </level> <level label="ii"> <text>the Department of General Services’ sale of energy under § 7–704.4 of this title; or</text> </level> <level label="iii"> <text>a community choice aggregator under § 7–510.3 of this subtitle.</text> </level> </level> <level label="2"> <text>A residential electricity supplier:</text> <level label="i"> <text>except as provided in paragraph (3)(iii) of this subsection, may offer electricity, other than green power, only at a price that does not exceed the following percentages of the electric company’s standard offer service rate in the electric company’s service territory as of the date of agreement with the customer:</text> <level label="1"> <text>for a term not to exceed 23 months, 100%;</text> </level> <level label="2"> <text>for a term of 24 months to 35 months, 105%; and</text> </level> <level label="3"> <text>for a term of 36 months, 110%;</text> </level> </level> <level label="ii"> <text>may offer residential electricity supply only for a term not to exceed 36 months at a time;</text> </level> <level label="iii"> <text>may, for electricity supply other than green power, automatically renew the term only if the electricity supplier provides notice to the customer 90 days before and 30 days before renewal;</text> </level> <level label="iv"> <text>may offer green power that meets the requirements of § 7–707 of this title, but may not automatically renew the term with the customer;</text> </level> <level label="v"> <text>except as provided in paragraph (3) of this subsection, may not offer a variable rate; and</text> </level> <level label="vi"> <text>may not pay a commission or other incentive–based compensation to an energy salesperson for enrolling customers.</text> </level> </level> <level label="3"> <text>A residential electricity supplier may offer a variable rate that:</text> <level label="i"> <text>uses time–of–use rates that establish different rates for periods within a single day;</text> </level> <level label="ii"> <text>adjusts for seasonal variation not more than twice in a single year; or</text> </level> <level label="iii"> <text>does not exceed the electric company’s standard offer service rate in the electric company’s service territory at any time during the agreement with the customer.</text> </level> </level> <level label="4"> <text>A residential electricity supplier may not sell to an electric company, and an electric company may not purchase from the electricity supplier, accounts receivable.</text> </level> </level> <level label="e"> <level label="1"> <text>This subsection does not apply to:</text> <level label="i"> <text>the Department of General Services’ sale of energy under § 7–704.4 of this title; or</text> </level> <level label="ii"> <text>a community choice aggregator under § 7–510.3 of this subtitle.</text> </level> </level> <level label="2"> <text>An electric company and a residential electricity supplier shall establish a mechanism for a customer whose account number or customer choice identification number has been compromised to receive a replacement account number or customer choice identification number on request, subject to verification in a manner approved by the Commission.</text> </level> </level> <level label="f"> <level label="1"> <text>This subsection does not apply to:</text> <level label="i"> <text>the Department of General Services’ sale of energy under § 7–704.4 of this title; or</text> </level> <level label="ii"> <text>a community choice aggregator under § 7–510.3 of this subtitle.</text> </level> </level> <level label="2"> <text>Except as provided in paragraph (3) of this subsection, as approved by the Commission by regulation or order, each electric company and each residential electricity supplier shall allow a customer to indicate the customer’s intention to remain on standard offer service indefinitely and not to receive directed marketing contacts from electricity suppliers through the implementation of a “do not transfer” list onto which the customer may request to be placed.</text> </level> <level label="3"> <text>A residential electricity supplier may contact a customer on a “do not transfer” list until the electricity supply agreement entered into between the electricity supplier and the customer expires.</text> </level> </level> <level label="g"> <level label="1"> <text>In this subsection, “billing entity” means an electric company, a licensed electricity supplier, or any other entity that is responsible for issuing an electric bill to a residential customer.</text> </level> <level label="2"> <text>On or before the 15th day of each month, each billing entity shall submit a report to the Commission on customer choice in its service territory for the preceding month, including:</text> <level label="i"> <text>the total kilowatt–hours distributed to customers purchasing electricity from a third–party electricity supplier;</text> </level> <level label="ii"> <text>the total supply cost charged to customers purchasing electricity from a third–party electricity supplier;</text> </level> <level label="iii"> <text>the total cost that customers specified in item (ii) of this paragraph would have paid under standard offer service;</text> </level> <level label="iv"> <text>the net third–party total cost compared to the net standard offer service cost;</text> </level> <level label="v"> <text>the total third–party average rate;</text> </level> <level label="vi"> <text>the standard offer service average rate;</text> </level> <level label="vii"> <text>the difference between the total third–party average rate and the standard offer service average rate;</text> </level> <level label="viii"> <text>the third–party average residential rates broken out by supplier and the variance between each of these rates and the standard offer service average rate;</text> </level> <level label="ix"> <text>the third–party average general service nondemand rates broken out by supplier and the variance between each of these third–party rates and the standard offer service average rate;</text> </level> <level label="x"> <text>the third–party average general service demand rates broken out by supplier and the variance between each of these third–party rates and the standard offer service average rate;</text> </level> <level label="xi"> <text>the third–party average large power demand rates broken out by supplier and the variance between each of these third–party rates and the standard offer service average rate; and</text> </level> <level label="xii"> <text>other pertinent information the Commission considers appropriate.</text> </level> </level> </level> <level label="h"> <text>The Commission shall, by regulation or order, adopt procedures to implement this section.</text> </level> <level label="i"> <text>Except as provided in § 7–510.3 of this subtitle, a county or municipal corporation may not act as an aggregator unless the Commission determines there is not sufficient competition within the boundaries of the county or municipal corporation.</text> </level> </section> <section article="gpu" article_name="Public Utilities" number="7-510.1" title_number="7" title_name="Gas, Electric, and Water Companies" subtitle_number="5" subtitle_name="Electric Industry Restructuring"> <level label="a"> <text>The Commission shall educate customers about customer choice in accordance with this section.</text> </level> <level label="b"> <level label="1"> <text>The Commission shall:</text> <level label="i"> <text>host and regularly update a user–friendly customer choice education section on its website that complies with standards issued under § 508 of the federal Rehabilitation Act of 1973; and</text> </level> <level label="ii"> <text>prominently display a link to that section of the Commission’s website on the home page of the Commission’s website.</text> </level> </level> <level label="2"> <text>The customer choice education section of the Commission’s website shall include:</text> <level label="i"> <text>a clear and simple description of:</text> <level label="1"> <text>customer choice;</text> </level> <level label="2"> <text>how customers can shop for an electricity supplier;</text> </level> <level label="3"> <text>what kinds of competitive electricity supply options customers have, including:</text> </level> <level label="A"> <text>renewable energy supply;</text> </level> <level label="B"> <text>fixed and variable pricing; and</text> </level> <level label="C"> <text>other common contract terms;</text> </level> <level label="4"> <text>the current price of standard offer service in the service territory of each electric company; and</text> </level> <level label="5"> <text>the continuing role of the electric company in delivering electricity to a customer that chooses an electricity supplier;</text> </level> </level> <level label="ii"> <text>fact sheets that:</text> <level label="1"> <text>answer common questions about customer choice;</text> </level> <level label="2"> <text>advise customers about the questions customers should ask when choosing an electricity supplier;</text> </level> <level label="3"> <text>list the kinds of disclosures that electricity suppliers must make to customers;</text> </level> <level label="4"> <text>describe common issues about contracts for electricity supply and available options; and</text> </level> <level label="5"> <text>describe consumer rights and protections that are available and the means of making use of them;</text> </level> </level> <level label="iii"> <text>a list of all electricity suppliers that have open offers to supply electricity in a customer’s service area, searchable by service territory or jurisdiction;</text> </level> <level label="iv"> <text>a statement indicating that customers who have entered into a contract with a competitive electricity supplier for electricity supply should be aware of the ending date of the contract so that they may determine, before being placed into a renewal contract with the current electricity supplier, whether they would like to:</text> <level label="1"> <text>shop for an alternative electricity supplier;</text> </level> <level label="2"> <text>renew with the current electricity supplier; or</text> </level> <level label="3"> <text>return to the standard offer service which may be offered at a price that is less than the renewal price offered by the current electricity supplier; and</text> </level> </level> <level label="v"> <text>a link to the customer choice shopping websites established under § 7–510.2 of this subtitle and § 7–604.1 of this title.</text> </level> </level> <level label="3"> <text>To the extent practicable, the list of electricity suppliers required under paragraph (2)(iii) of this subsection shall include:</text> <level label="i"> <text>the terms of any open offers to supply electricity, including:</text> <level label="1"> <text>the duration of the contract;</text> </level> <level label="2"> <text>the cost of electricity per kilowatt–hour; and</text> </level> <level label="3"> <text>any cancellation fees; and</text> </level> </level> <level label="ii"> <text>a link to the website of each electricity supplier with an open offer to supply electricity.</text> </level> </level> </level> <level label="c"> <level label="1"> <text>To ensure the currency and accuracy of information required under subsection (b)(2)(iii) of this section, the Commission shall maintain a secure portal on its website to receive information about offers to supply electricity from electricity suppliers.</text> </level> <level label="2"> <text>Each electricity supplier that is actively seeking residential customers in a service territory in the State shall maintain at least one open offer to supply electricity to residential customers on the Commission’s website at all times.</text> </level> <level label="3"> <text>At least once each month, each electricity supplier with an open offer to supply electricity shall submit detailed information about the offer to the Commission through a secure portal maintained by the Commission on the Commission’s website for this purpose.</text> </level> </level> <level label="d"> <text>The Commission shall work with media outlets in the State to develop and air public service announcements publicizing customer choice and directing customers to the Commission’s website for additional information.</text> </level> <level label="e"> <text>The Commission shall recover the cost of complying with this section in accordance with § 2–110 of this article.</text> </level> </section> <section article="gpu" article_name="Public Utilities" number="7-510.2" title_number="7" title_name="Gas, Electric, and Water Companies" subtitle_number="5" subtitle_name="Electric Industry Restructuring"> <level label="a"> <text>The Commission shall establish a customer choice shopping website that allows a customer to sort electricity suppliers that have open offers to supply electricity to residential customers in the customer’s service area.</text> </level> <level label="b"> <text>The website shall include:</text> <level label="1"> <text>a list of all electricity suppliers that have open offers to supply electricity to residential customers in a customer’s service area, sortable by:</text> <level label="i"> <text>cost of service;</text> </level> <level label="ii"> <text>cost of electricity per kilowatt–hour;</text> </level> <level label="iii"> <text>rate structure;</text> </level> <level label="iv"> <text>duration of the contract;</text> </level> <level label="v"> <text>cancellation fee; and</text> </level> <level label="vi"> <text>any other aspect of service that the Commission considers necessary;</text> </level> </level> <level label="2"> <text>a way to compare electricity suppliers based on the sortable items specified under item (1) of this subsection;</text> </level> <level label="3"> <text>a link to the website of each electricity supplier with an open offer to supply electricity to residential customers;</text> </level> <level label="4"> <text>a link to the customer education webpage established under § 7–510.1 of this subtitle;</text> </level> <level label="5"> <text>a link to a complaint process that provides access for the customer to protect the customer’s rights and make use of consumer protections through the Commission; and</text> </level> <level label="6"> <text>fact sheets on the process for comparing offers from electricity suppliers on the website, including relevant contract terms, requirements, limitations, and fees.</text> </level> </level> <level label="c"> <text>The Commission shall use the information received from an electricity supplier under § 7–510.1 of this subtitle to maintain the information on the website.</text> </level> <level label="d"> <text>The Commission shall recover the cost of complying with this section in accordance with § 2–110 of this article.</text> </level> </section> <section article="gpu" article_name="Public Utilities" number="7-510.3" title_number="7" title_name="Gas, Electric, and Water Companies" subtitle_number="5" subtitle_name="Electric Industry Restructuring"> <level label="a"> <text>In this section, “small commercial electric customer” means a commercial electric customer that has a peak electric load of not more than 25 kilowatts and includes master–metered multiple occupancy residences that have a peak electric load of not more than 25 kilowatts.</text> </level> <level label="b"> <text>This section applies only in Montgomery County.</text> </level> <level label="c"> <level label="1"> <text>There is a Community Choice Aggregation Pilot Program.</text> </level> <level label="2"> <text>Beginning December 31, 2023, a county may form a community choice aggregator under this section.</text> </level> </level> <level label="d"> <level label="1"> <text>At least 60 days before initiating the process to form a community choice aggregator, a county shall:</text> <level label="i"> <text>develop an aggregation plan;</text> </level> <level label="ii"> <text>give written notice of the aggregation plan to each residential and small commercial electric customer in the county;</text> </level> <level label="iii"> <text>publish a fair summary of the aggregation plan in at least one newspaper of general circulation in the county;</text> </level> <level label="iv"> <text>if the county maintains a website, publish the full text of the aggregation plan on the website; and</text> </level> <level label="v"> <text>give, for the Commission’s approval, written notice of its intention to initiate a process to form a community choice aggregator.</text> </level> </level> <level label="2"> <text>The aggregation plan shall:</text> <level label="i"> <text>detail the processes related to participating in the aggregation activities of a community choice aggregator;</text> </level> <level label="ii"> <text>contain information on the operations, funding, and organizational structure of the community choice aggregator;</text> </level> <level label="iii"> <text>provide details on:</text> <level label="1"> <text>the rate setting and costs to participants, including an analysis of historical and forecasted trends in electricity prices and a purchasing plan designed to save ratepayers money;</text> </level> <level label="2"> <text>methods that the community choice aggregator must use for entering into and terminating agreements with other entities;</text> </level> <level label="3"> <text>the rights and responsibilities of participating electric customers; and</text> </level> <level label="4"> <text>the termination of the aggregation program, if any; and</text> </level> </level> <level label="iv"> <text>provide for universal electricity access, reliability, and equitable treatment of all residential and small commercial electric customers in the county.</text> </level> </level> </level> <level label="e"> <level label="1"> <text>At least 60 days after developing an aggregation plan and giving the notice required under subsection (d) of this section, a county may initiate the process of forming a community choice aggregator by filing with the Commission:</text> <level label="i"> <text>a notice of intent to form a community choice aggregator;</text> </level> <level label="ii"> <text>a copy of the aggregation plan developed in accordance with subsection (d) of this section;</text> </level> <level label="iii"> <text>a draft local law forming a community choice aggregator; and</text> </level> <level label="iv"> <text>proposed terms of service, rates, and categories of charges, fees, or any other costs to customers unrelated to the actual cost of the electricity supply.</text> </level> </level> <level label="2"> <text>The notice of intent shall include the name of the county in the community choice aggregator.</text> </level> <level label="3"> <text>A county is a community choice aggregator after:</text> <level label="i"> <text>submitting the notice of intent and aggregation plan required under this subsection;</text> </level> <level label="ii"> <text>the Commission has approved its aggregation plan and proposed terms filed in accordance with paragraph (1)(iv) of this subsection; and</text> </level> <level label="iii"> <text>enacting a local law that provides that the county shall act as a community choice aggregator.</text> </level> </level> </level> <level label="f"> <level label="1"> <text>In accordance with a schedule established by the Commission under subsection (l) of this section, if a county enacts a local law to act as a community choice aggregator, the county shall provide or cause its selected electricity supplier, if any, to provide written notice of the formation of the community choice aggregator to all residential and small commercial electric customers in the county.</text> </level> <level label="2"> <text>The notice required under this subsection shall include:</text> <level label="i"> <text>the identity and Commission–issued license numbers of any selected electricity supplier;</text> </level> <level label="ii"> <text>terms and conditions of service;</text> </level> <level label="iii"> <text>new rates, charges, and fees for service under the community choice aggregator;</text> </level> <level label="iv"> <text>a comparison of the new rates and the rates under the current standard offer service;</text> </level> <level label="v"> <text>information on how to access the standard offer service available from an electric company; and</text> </level> <level label="vi"> <text>the total renewable component of the electricity to be supplied through a community choice aggregator, including the specific sources of any renewable energy compared to the requirements under current law, if any.</text> </level> </level> <level label="3"> <text>In the notice required under this subsection, the county shall provide to the residential and small commercial electric customers in the county the opportunity to refuse to participate in the aggregation activities of the community choice aggregator:</text> <level label="i"> <text>by return submission of the notice to the community choice aggregator or the electric company indicating the customer’s decision to refuse to participate in the aggregation activities of the community choice aggregator; or</text> </level> <level label="ii"> <text>by contracting for service with a retail electricity supplier or by choosing standard offer service from an electric company.</text> </level> </level> <level label="4"> <text>A county that enacts a local law to act as a community choice aggregator under this section may not exclude from the ability to participate in the aggregation activities of the community choice aggregator:</text> <level label="i"> <text>any residential or small commercial electric customer in the county; or</text> </level> <level label="ii"> <text>for the provision of electric service for facilities located within the jurisdiction of the community choice aggregator, any governmental entity.</text> </level> </level> </level> <level label="g"> <text>A residential or small commercial electric customer is deemed to have given permission to the county to act on the customer’s behalf as a community choice aggregator:</text> <level label="1"> <text>when the county receives from the customer:</text> <level label="i"> <text>a reply from the notice required under subsection (f) of this section by which the customer explicitly grants permission for the customer to receive service with the community choice aggregator; or</text> </level> <level label="ii"> <text>an application to receive service with the community choice aggregator;</text> </level> </level> <level label="2"> <text>in the case of a customer receiving standard offer service, within 30 days after the notice required by subsection (f) of this section is given if:</text> <level label="i"> <text>the county has not received a returned notice by that date; or</text> </level> <level label="ii"> <text>after the creation of the community choice aggregator and receipt of the notice, the customer has not contracted with a retail electricity supplier or contacted an electric company to select standard offer service; or</text> </level> </level> <level label="3"> <text>on applying for new electric service within the territory served by the community choice aggregator, unless the customer has:</text> <level label="i"> <text>contracted with a retail electricity supplier for service; or</text> </level> <level label="ii"> <text>contacted an electric company to select standard offer service.</text> </level> </level> </level> <level label="h"> <text>Except for a contract that automatically renews, at the end of a contract term with an electricity supplier a residential or small commercial electric customer in the jurisdiction of a community choice aggregator shall be automatically enrolled as a participant in the aggregation activities of the community choice aggregator unless the customer:</text> <level label="1"> <text>gives written notice to the county declining to participate in the aggregation activities of the community choice aggregator; or</text> </level> <level label="2"> <text>contracts for service with a retail electricity supplier or contacts an electric company to select standard offer service.</text> </level> </level> <level label="i"> <text>This section may not be construed to prevent a residential or small commercial electric customer in the county from choosing at any time:</text> <level label="1"> <text>to enter into a contract with an electricity supplier other than the community choice aggregator; or</text> </level> <level label="2"> <text>the standard offer service offered by an electric company.</text> </level> </level> <level label="j"> <level label="1"> <text>A community choice aggregator may not assess any new fee, tax, or other charge in the aggregation charges or rates that is not related to the cost of:</text> <level label="i"> <text>providing electricity supply and electricity supply service, including service from a generating station owned by the community choice aggregator;</text> </level> <level label="ii"> <text>promoting the use of renewable energy; and</text> </level> <level label="iii"> <text>providing and promoting energy efficiency programs promoted under paragraph (2) or (3) of this subsection.</text> </level> </level> <level label="2"> <text>A community choice aggregator, in consultation with all investor–owned electric companies whose service territories include all or part of the county and the Department of Housing and Community Development, may promote energy efficiency programs that are:</text> <level label="i"> <text>offered by the investor–owned electric companies; or</text> </level> <level label="ii"> <text>filed by the investor–owned electric companies with the Commission for its approval in accordance with Subtitle 2, Part II of this title.</text> </level> </level> <level label="3"> <text>In addition to the authority granted under paragraph (2) of this subsection, a community choice aggregator may provide and promote energy efficiency programs that are supplemental to any programs that are promoted under paragraph (2) of this subsection.</text> </level> </level> <level label="k"> <level label="1"> <text>Except for the purposes of meeting the requirements of the renewable energy portfolio standard under Subtitle 7 of this title, a community choice aggregator may not be considered to be an electricity supplier under § 7–507(a) of this subtitle.</text> </level> <level label="2"> <level label="i"> <text>A community choice aggregator may own an electric generating facility or an electric storage facility in accordance with this article if the facility is designed to provide energy primarily for use by the participants of the community choice aggregator.</text> </level> <level label="ii"> <text>When a community choice aggregator builds or acquires an electric generating facility or electric storage facility, the community choice aggregator shall submit to the Commission a plan for the use or disposition of the facility if the community choice aggregator is dissolved.</text> </level> </level> <level label="3"> <level label="i"> <text>A community choice aggregator may contract for service from an electric generating facility in accordance with this article if the amount of contracted electricity supply from the facility is not greater than the amount estimated to be necessary to meet the electrical demand of the participants of the community choice aggregator.</text> </level> <level label="ii"> <text>When a community choice aggregator contracts for service from an electric generating facility for a period exceeding 2 years, the community choice aggregator shall submit to the Commission a plan for the transfer of the contract to another electricity supplier if:</text> <level label="1"> <text>the community choice aggregator is dissolved; or</text> </level> <level label="2"> <text>the pilot program ends without an extension or the creation of a permanent community choice aggregator.</text> </level> </level> </level> <level label="4"> <text>Any contract relating to the provision of electric service by a community choice aggregator, including any contract for the supply of electricity or the procurement or financing of electric generation services shall allow for or anticipate the potential adoption of an alternative resource adequacy mechanism that could apply in the State.</text> </level> </level> <level label="l"> <level label="1"> <text>Based on a determination of the mitigation of volumetric risk, the Commission may establish by order or regulation a schedule that may not exceed a period of 2 years, by which a community choice aggregator may transfer load from standard offer service to retail or wholesale contracts under an aggregation plan.</text> </level> <level label="2"> <text>The Commission shall consider the impacts to the price and stability of the procurement of standard offer service when considering a schedule under paragraph (1) of this subsection.</text> </level> </level> <level label="m"> <level label="1"> <text>A county that is forming a community choice aggregator is deemed to have obtained electric customer authorization to retrieve preenrollment usage data for residential and small commercial electric customers in the county.</text> </level> <level label="2"> <text>In accordance with procedures established by the Commission, an electric company shall provide to a community choice aggregator any relevant data for customers in the jurisdiction of the community choice aggregator, including:</text> <level label="i"> <text>preenrollment usage data; and</text> </level> <level label="ii"> <text>any other appropriate billing and electrical load data.</text> </level> </level> <level label="3"> <text>An electric company shall provide to a county that is forming a community choice aggregator data under this subsection as follows:</text> <level label="i"> <text>only aggregate data when the county initiates the process of forming a community choice aggregator; and</text> </level> <level label="ii"> <text>any customer–specific data after the aggregation plan is approved by the Commission.</text> </level> </level> </level> <level label="n"> <text>The Commission shall review applicable fees, request formats, and the format of data provided to facilitate the intent of this section.</text> </level> <level label="o"> <text>The Commission shall establish procedures for an electric customer that is receiving electricity supply through a community choice aggregator to receive any bill assistance credit or arrearage assistance to which the customer may be entitled under § 5–5A–08 of the Human Services Article or any other federal or State bill and arrearage assistance administered by the Office of Home Energy Programs.</text> </level> <level label="p"> <text>The Commission may allocate the portion of delinquent accounts receivable that is attributable to electricity supply between the electric customers participating in the aggregation activities of a community choice aggregator and the electric customers throughout the electric company’s service territory if the Commission determines that:</text> <level label="1"> <text>the amount of delinquent accounts receivable attributable to electric customers receiving standard offer service is projected to increase to an extent that will materially adversely impact the cost of providing standard offer service; and</text> </level> <level label="2"> <text>the projected increase in the amount of delinquent accounts receivable attributable to electric customers receiving standard offer service is directly or indirectly caused by the migration of a substantial number of electric customers from standard offer service to participation in the aggregation activities of a community choice aggregator.</text> </level> </level> <level label="q"> <text>Bills sent to electric customers that participate in the aggregation activities of a community choice aggregator shall identify the community choice aggregator as the electricity supplier.</text> </level> <level label="r"> <level label="1"> <text>In this subsection, “Workgroup” means the Community Choice Energy Workgroup established in accordance with this subsection.</text> </level> <level label="2"> <text>On or before September 1, 2021, the Commission shall establish a Community Choice Energy Workgroup.</text> </level> <level label="3"> <text>The Workgroup shall consist of at least the following members:</text> <level label="i"> <text>one representative of the Montgomery County government;</text> </level> <level label="ii"> <text>one representative of the Office of People’s Counsel;</text> </level> <level label="iii"> <text>one representative of each investor–owned electric company whose service territory includes all or part of a county that participates in the pilot program;</text> </level> <level label="iv"> <text>one representative of any competitive electricity supplier;</text> </level> <level label="v"> <text>one representative of residential and small commercial electric customers;</text> </level> <level label="vi"> <text>one representative of low–income communities;</text> </level> <level label="vii"> <text>one representative of minority residential communities;</text> </level> <level label="viii"> <text>one representative with expertise in implementing community choice aggregation programs; and</text> </level> <level label="ix"> <text>any other individuals identified by the Commission.</text> </level> </level> <level label="4"> <text>The Commission shall provide staff for the Workgroup.</text> </level> <level label="5"> <text>Nothing in this subsection may be construed to limit the authority of the Commission to take any action, including the adoption of regulations, without a recommendation from the Workgroup.</text> </level> <level label="6"> <level label="i"> <text>During any year that a community choice aggregator operates in the State, the Workgroup shall submit an annual report on the status of the community choice aggregator to the Commission.</text> </level> <level label="ii"> <text>The Workgroup shall include in the annual report information regarding:</text> <level label="1"> <text>rates, charges, and fees for service under each community choice aggregator;</text> </level> <level label="2"> <text>renewable energy;</text> </level> <level label="3"> <text>customer satisfaction;</text> </level> <level label="4"> <text>enrollment; and</text> </level> <level label="5"> <text>any other information or metric determined by the Workgroup or requested by the Commission.</text> </level> </level> </level> </level> <level label="s"> <level label="1"> <text>The Commission shall by regulation establish standards and procedures to protect the consumer rights of residential customers within the territory of a community choice aggregator that receive electricity supply through the community choice aggregator.</text> </level> <level label="2"> <text>The regulations shall prohibit discrimination against a customer on the basis of the location of the customer.</text> </level> <level label="3"> <text>The Commission shall seek the advice and recommendation of the Community Choice Energy Workgroup established under subsection (r) of this section when carrying out the provisions of this section and adopting regulations.</text> </level> </level> <level label="t"> <level label="1"> <text>The pilot program shall:</text> <level label="i"> <text>begin on the earlier of:</text> <level label="1"> <text>the date that a county gives notice to the Commission of its intention to initiate a process to form a community choice aggregator, in accordance with subsection (d)(1)(v) of this section; or</text> </level> <level label="2"> <text>April 1, 2026; and</text> </level> </level> <level label="ii"> <text>end 9 years after the beginning date, but not sooner than April 1, 2031.</text> </level> </level> <level label="2"> <text>On or before April 1 of the seventh year after the beginning of the pilot program, the Commission shall, in accordance with § 2–1257 of the State Government Article, report to the General Assembly on the status and effectiveness of the pilot program.</text> </level> </level> <level label="u"> <level label="1"> <text>At the conclusion of the pilot program described in this section, the Commission shall study:</text> <level label="i"> <text>the overall costs and benefits of the pilot program;</text> </level> <level label="ii"> <text>whether there were any incremental costs borne by standard offer service customers resulting from the migration of customers between the community choice aggregator and standard offer service; and</text> </level> <level label="iii"> <text>what mechanisms could be implemented to hold standard offer service customers harmless from any incremental costs borne by standard offer service customers identified under item (ii) of this paragraph.</text> </level> </level> <level label="2"> <text>The Commission shall seek the advice and recommendation of the Community Choice Energy Workgroup in the study required under this subsection.</text> </level> <level label="3"> <text>On or before December 31, 2035, the Commission shall report the findings of the study to the Governor and the General Assembly, in accordance with § 2–1257 of the State Government Article.</text> </level> </level> <level label="v"> <text>On or before December 31, 2023, the Commission shall adopt regulations to implement this section, including regulations for:</text> <level label="1"> <text>consumer protection;</text> </level> <level label="2"> <text>procedures to consider and review the analysis of historical and forecasted trends in electricity prices and a purchasing plan designed to save ratepayers money, submitted by county;</text> </level> <level label="3"> <text>a tariff structure for community choice aggregation noncommodity fees and charges;</text> </level> <level label="4"> <text>a protocol for data exchange between community choice aggregators, retail suppliers, and electric companies, including prohibitions on the community choice aggregator from sharing, disclosing, or otherwise making accessible to a third party a customer’s personal information;</text> </level> <level label="5"> <text>procedures by which a community choice aggregator may transfer load from standard offer service to retail or wholesale contracts under an aggregation plan;</text> </level> <level label="6"> <text>the method by which the cost of delinquent accounts of a community choice aggregator may be recovered from customers;</text> </level> <level label="7"> <text>procedures for enrolling a customer for service with a community choice aggregator on expiration of the customer’s retail supply contract;</text> </level> <level label="8"> <text>procedures to protect a customer’s privacy and confidential data collected or held by a community choice aggregator;</text> </level> <level label="9"> <text>procedures to mitigate any risk to standard offer service customers caused by the potential for customers to migrate from a community choice aggregator to standard offer service;</text> </level> <level label="10"> <text>procedures by which a community choice aggregator may be dissolved, including procedures for the transfer of customers to standard offer service and the resale of contracted electricity supply;</text> </level> <level label="11"> <text>the approval of a tariff structure for community choice aggregrator interactions with electric companies, including:</text> <level label="i"> <text>billing and payment collection;</text> </level> <level label="ii"> <text>dispute resolution;</text> </level> <level label="iii"> <text>financial settlement;</text> </level> <level label="iv"> <text>losses;</text> </level> <level label="v"> <text>metering services;</text> </level> <level label="vi"> <text>PJM Interconnection requirements;</text> </level> <level label="vii"> <text>scheduling; and</text> </level> <level label="viii"> <text>utility charges; and</text> </level> </level> <level label="12"> <text>procedures to require that:</text> <level label="i"> <text>a community choice aggregator that transfers all customers back to standard offer service is considered to be dissolved; and</text> </level> <level label="ii"> <text>if a community choice aggregator is considered to be dissolved, it may not be reformed except through the process of forming a new community choice aggregator in accordance with this section.</text> </level> </level> </level> <level label="w"> <text>The Montgomery County government shall:</text> <level label="1"> <text>be solely responsible for the costs associated with any stranded costs for:</text> <level label="i"> <text>contracts entered into by the community choice aggregator for electric supply; or</text> </level> <level label="ii"> <text>generation owned by a community choice aggregator; and</text> </level> </level> <level label="2"> <text>pay for any costs the Montgomery County government is responsible for under item (1) of this subsection.</text> </level> </level> </section> <section article="gpu" article_name="Public Utilities" number="7-511" title_number="7" title_name="Gas, Electric, and Water Companies" subtitle_number="5" subtitle_name="Electric Industry Restructuring"> <level label="a"> <text>Except for electric cooperatives and municipal electric utilities:</text> <level label="1"> <text>competitive billing shall begin on July 1, 2000;</text> </level> <level label="2"> <text>competitive metering for large customers shall begin on January 1, 2002; and</text> </level> <level label="3"> <text>competitive metering for all other customers shall begin on April 1, 2002, or earlier if requested by the electric company.</text> </level> </level> <level label="b"> <text>The Commission shall adopt regulations or issue orders to implement this section.</text> </level> <level label="c"> <level label="1"> <text>A person other than an electric company or a municipal electric utility may not engage in the business of competitive billing services in a local jurisdiction that assesses a local energy tax, unless the person holds a license issued by that jurisdiction.</text> </level> <level label="2"> <text>An application for a local competitive billing services license shall be made in accordance with the requirements of the local jurisdiction.</text> </level> <level label="3"> <level label="i"> <text>A local jurisdiction may require an applicant or licensee to:</text> <level label="1"> <text>hold a license issued by the Commission, as provided under § 7-507 of this subtitle;</text> </level> <level label="2"> <text>post a bond or other similar instrument in an amount equal to 15% of the bond required under § 7-507 of this subtitle; and</text> </level> <level label="3"> <text>have a resident agent in the State.</text> </level> </level> <level label="ii"> <text>A local jurisdiction may not require an applicant or licensee to pay a fee or other charge for the local license.</text> </level> </level> </level> <level label="d"> <level label="1"> <text>A local jurisdiction may revoke or suspend the local license if the licensee fails, within 15 days of the due date established by the local jurisdiction, to pay or remit all of the applicable local energy taxes on services.</text> </level> <level label="2"> <text>A local jurisdiction may reinstate the license after payment of all local energy taxes due.</text> </level> <level label="3"> <text>A local jurisdiction may choose not to reinstate a license that has been revoked or suspended 3 times in a 12-month period.</text> </level> <level label="4"> <text>A local jurisdiction shall report any revocation or suspension of a license to the Commission.</text> </level> </level> <level label="e"> <text>The Commission shall adopt regulations or issue an order to establish procedures for the assumption of billing responsibilities by the electric company that distributes electricity in the relevant service territory if a local license is revoked or suspended.</text> </level> </section> <section article="gpu" article_name="Public Utilities" number="7-512" title_number="7" title_name="Gas, Electric, and Water Companies" subtitle_number="5" subtitle_name="Electric Industry Restructuring"> <level label="a"> <text>This section and § 7-513 of this subtitle apply to an entity that was regulated as an electric company on June 30, 1999, whether or not the entity or any of its businesses, services, or assets continues to be regulated under this article after that date.</text> </level> <level label="b"> <text>An electric company may recover costs under this section to the extent that the Commission finds costs to be just and reasonable.</text> </level> <level label="c"> <level label="1"> <text>An electric company shall be provided a fair opportunity to recover fully all costs that have been or will be incurred by the electric company under public purpose programs established by law or ordered by the Commission.</text> </level> <level label="2"> <level label="i"> <text>Except as provided in paragraph (3) of this subsection, the costs subject to this subsection shall be funded by a surcharge or other cost recovery mechanism collected on a statewide basis that:</text> <level label="1"> <text>fully recovers from customers the costs of the plans and programs; and</text> </level> <level label="2"> <text>subject to subparagraph (ii) of this paragraph, with respect to any of these costs not included in rates on January 1, 2000, is not subject to any otherwise applicable cap.</text> </level> </level> <level label="ii"> <text>The recovery by an electric company of costs for a universal service program is subject to any applicable cap regardless of when the costs are included in rates.</text> </level> </level> <level label="3"> <text>During the fiscal year ending June 30, 2000, an electric company may not, under paragraph (2) of this subsection, recover costs of a consumer education program established by law, regulation, or order.</text> </level> </level> </section> <section article="gpu" article_name="Public Utilities" number="7-513" title_number="7" title_name="Gas, Electric, and Water Companies" subtitle_number="5" subtitle_name="Electric Industry Restructuring"> <level label="a"> <level label="1"> <text>In accordance with this subsection, an electric company shall be provided a fair opportunity to recover all of its prudently incurred and verifiable net transition costs, subject to full mitigation, following the Commission’s determination under subsection (b) of this section.</text> </level> <level label="2"> <text>A competitive transition charge, or other appropriate mechanism that the Commission determines, may be included for customers who access the transmission or distribution system of the electric company in whose distribution territory the customer is located. The costs authorized by the Commission to be recovered shall be allocated to customer classes in a manner that, as nearly as reasonably possible, does not exceed the cost of providing the service to those classes of customers, avoiding where reasonably possible any interclass or intraclass cross subsidy.</text> </level> <level label="3"> <level label="i"> <text>The competitive transition charge may be included on bills to customers for a period determined by the Commission.</text> </level> <level label="ii"> <text>The Commission may establish recovery periods of different lengths for each electric company and for different categories of transition costs.</text> </level> </level> <level label="4"> <text>A competitive transition charge, or other appropriate mechanism determined by the Commission, may not apply to any on–site generated electricity to the extent of:</text> <level label="i"> <text>the existing facilities’ installed generating capacity as of January 1, 1999;</text> </level> <level label="ii"> <text>the generating capacity of an existing facility to be installed under a legally binding contract:</text> <level label="1"> <text>executed on or before January 1, 1999; or</text> </level> <level label="2"> <text>executed on or before September 29, 1999, if the Commission, on a case by case review of the evidence, determines that negotiations in good faith concerning the contract were ongoing as of January 1, 1999; or</text> </level> </level> <level label="iii"> <text>for a facility with a capacity of 500 kilowatts or less:</text> <level label="1"> <text>the first 80 megawatts of the aggregate statewide generating capacity of on–site generating facilities;</text> </level> <level label="2"> <text>the generating capacity of the facility if the facility:</text> </level> <level label="A"> <text>is installed between January 1, 2000, and December 31, 2003;</text> </level> <level label="B"> <text>derives electricity from fuel cells, photovoltaics, wind machines, or microturbines; and</text> </level> <level label="C"> <text>has an energy conversion efficiency greater than 40%; or</text> </level> <level label="3"> <text>the generating capacity of the facility if the facility:</text> </level> <level label="A"> <text>is installed after January 1, 2004;</text> </level> <level label="B"> <text>derives electricity from fuel cells, photovoltaics, wind machines, or microturbines; and</text> </level> <level label="C"> <text>has an energy conversion efficiency greater than 50%.</text> </level> </level> </level> </level> <level label="b"> <text>The Commission shall determine the transition costs and the amounts of the transition costs that an electric company shall be provided an opportunity to recover under its restructuring plan through the competitive transition charge or other appropriate mechanism.</text> </level> <level label="c"> <level label="1"> <text>After July 1, 1999, an electric company may apply to the Commission for a qualified rate order for some or all of its transition costs.</text> </level> <level label="2"> <text>If the Commission issues a qualified rate order and the transition bonds approved by that order are successfully issued:</text> <level label="i"> <text>the electric company shall impose and collect, through its customer bills, the intangible transition charges approved by the qualified rate order; and</text> </level> <level label="ii"> <text>at the same time, the electric company’s competitive transition charge shall be reduced by an amount equal to that portion of the competitive transition charge related to the transition costs for which transition bonds have been successfully issued, together with any costs of capital related to the transition costs for which recovery was provided in the competitive transition charge, as provided in the qualified rate order.</text> </level> </level> </level> <level label="d"> <level label="1"> <text>The Commission shall establish procedures for the annual review of the competitive transition charge for each electric company to reconcile the annual revenues received from the charge with the annual amortization of transition costs approved by the Commission under this section to take account of actual kilowatt–hour sales in the prior year compared with previously estimated kilowatt–hour sales. The Commission shall adjust the competitive transition charge based on any under recovery or over recovery with respect to the authorized amortization amount.</text> </level> <level label="2"> <text>Nothing in this subtitle may be construed as preventing the Commission from approving for an investor–owned electric company:</text> <level label="i"> <text>an adjustment mechanism proposed by the investor–owned electric company in its initial restructuring proposal filed prior to January 1, 1999, that takes into account differences other than differences in kilowatt–hour sales, taking into consideration any requirements related to any transition bonds;</text> </level> <level label="ii"> <text>an adjustment that takes into account generation asset sales by an electric company or an affiliate to a nonaffiliate that are consummated on or before June 30, 2005; or</text> </level> <level label="iii"> <text>any other mechanism as part of a settlement.</text> </level> </level> </level> <level label="e"> <level label="1"> <text>In determining the appropriate transition costs or benefits for each electric company’s generation–related assets, the Commission shall:</text> <level label="i"> <text>conduct public hearings; and</text> </level> <level label="ii"> <text>consider, in addition to other appropriate evidence of value:</text> <level label="1"> <text>book value and fair market value;</text> </level> <level label="2"> <text>auctions and sales of comparable assets;</text> </level> <level label="3"> <text>appraisals;</text> </level> <level label="4"> <text>the revenue the company would receive under rate–of–return regulation;</text> </level> <level label="5"> <text>the revenue the company would receive in a restructured electricity supply market; and</text> </level> <level label="6"> <text>computer simulations provided to the Commission.</text> </level> </level> </level> <level label="2"> <text>The Commission shall determine any equitable allocation of costs or benefits between shareholders and ratepayers. In determining the allocation of transition costs or benefits, the Commission shall consider the following factors:</text> <level label="i"> <text>the prudence and verifiability of the original investment;</text> </level> <level label="ii"> <text>whether the investment continues to be used and useful;</text> </level> <level label="iii"> <text>whether the loss is one of which investors can be said to have reasonably borne the risk; and</text> </level> <level label="iv"> <text>whether investors have already been compensated for the risk.</text> </level> </level> </level> <level label="f"> <text>This section does not apply to rate stabilization costs established or qualified rate orders issued under Part III or Part IV of this subtitle.</text> </level> </section> <section article="gpu" article_name="Public Utilities" number="7-514" title_number="7" title_name="Gas, Electric, and Water Companies" subtitle_number="5" subtitle_name="Electric Industry Restructuring"> <level label="a"> <level label="1"> <text>On complaint or on its own motion, for good cause shown, the Commission may conduct an investigation of the retail electricity supply and electricity supply services markets and determine whether the function of one of these markets is being adversely affected by market power or any other anticompetitive conduct.</text> </level> <level label="2"> <text>The Commission shall monitor the retail electricity supply and electricity supply services markets to ensure that the markets are not being adversely affected by market power or any other anticompetitive conduct.</text> </level> </level> <level label="b"> <text>If, as a result of an investigation conducted under this section, the Commission determines that market power or any other anticompetitive conduct in the relevant market under the Commission’s jurisdiction is preventing the electric customers in the State from obtaining the benefits of properly functioning retail electricity supply and electricity supply services markets, the Commission may take remedial actions within its authority to address the impact of the market power or any other anticompetitive conduct activities.</text> </level> <level label="c"> <text>The Commission shall include antitrust principles in performing its analysis under this section.</text> </level> <level label="d"> <text>The Commission shall cooperate with and share information with the Antitrust Division of the Office of the Attorney General.</text> </level> <level label="e"> <text>The rights and remedies provided in this section supplement any other rights or remedies that may exist under State or federal law or common law.</text> </level> </section> <section article="gpu" article_name="Public Utilities" number="7-515" title_number="7" title_name="Gas, Electric, and Water Companies" subtitle_number="5" subtitle_name="Electric Industry Restructuring"> <text>An electricity supplier that also provides distribution service, or that has an affiliate that provides distribution service, in Pennsylvania, Delaware, West Virginia, Virginia, or the District of Columbia may not provide retail electricity supply service, directly, indirectly, or through an aggregator, marketer, or broker, in the distribution territory of an unaffiliated electric company unless there is electricity supply competition in at least a portion of the distribution service area of the electricity supplier or affiliate.</text> </section> <section article="gpu" article_name="Public Utilities" number="7-516" title_number="7" title_name="Gas, Electric, and Water Companies" subtitle_number="5" subtitle_name="Electric Industry Restructuring"> <level label="a"> <level label="1"> <text>In recognition of the potential environmental impacts of restructuring the electric industry, it is the intent of the General Assembly to minimize the effects of electric restructuring on the environment.</text> </level> <level label="2"> <text>Electric companies in Maryland shall conduct a study that tracks shifts in generation and emissions as a result of restructuring the electric industry.</text> </level> <level label="3"> <text>The study shall be submitted to the Department of the Environment and the Commission one year after the initial date of implementation of customer choice.</text> </level> <level label="4"> <text>Electric companies in Maryland shall update the study twice and submit each updated study to the Department of the Environment and the Commission on or before December 31, 2003, and on or before December 31, 2005.</text> </level> </level> <level label="b"> <text>If, after review of the study required under subsection (a) of this section, the Department of the Environment determines that the emissions levels impose a higher emission burden in Maryland, the Department of the Environment, in consultation with the Commission, shall study the appropriateness, constitutionality, and feasibility of establishing an air quality surcharge or other mechanism to protect Maryland’s environment in connection with the implementation of customer choice of electricity suppliers.</text> </level> </section> <section article="gpu" article_name="Public Utilities" number="7-517" title_number="7" title_name="Gas, Electric, and Water Companies" subtitle_number="5" subtitle_name="Electric Industry Restructuring"> <text>This subtitle may be referred to as the “Electric Customer Choice and Competition Act of 1999”.</text> </section> <section article="gpu" article_name="Public Utilities" number="7-520" title_number="7" title_name="Gas, Electric, and Water Companies" subtitle_number="5" subtitle_name="Electric Industry Restructuring"> <level label="a"> <text>In this part the following words have the meanings indicated.</text> </level> <level label="b"> <text>“Assignee” means any individual, corporation, or other legally recognized entity to which an electric company transfers all or a portion of its interest in rate stabilization property, other than as security, including any assignee of that party.</text> </level> <level label="c"> <level label="1"> <text>“Financing party” means a holder of rate stabilization bonds.</text> </level> <level label="2"> <text>“Financing party” includes a trustee, collateral agent, and any other person acting for the benefit of the holder.</text> </level> </level> <level label="d"> <text>“Qualified rate order” means an order of the Commission approving one or more qualified rate stabilization charges.</text> </level> <level label="e"> <text>“Qualified rate stabilization charge” means that portion of a usage-based nonbypassable rate, charge, or similar appropriate mechanism for the provision, availability, or termination of electric service, approved in connection with a rate stabilization plan in accordance with § 7-522 or § 7-548 of this subtitle, that a qualified rate order of the Commission authorizes to be imposed for the recovery of rate stabilization costs.</text> </level> <level label="f"> <text>“Rate stabilization bond” means a bond, debenture, note, certificate of participation or beneficial interest, or other evidence of indebtedness or ownership that:</text> <level label="1"> <text>is authorized in a qualified rate order and issued under an executed trust indenture or other agreement of an electric company or assignee; and</text> </level> <level label="2"> <text>is secured by, evidences an ownership interest in, or is payable from rate stabilization property.</text> </level> </level> <level label="g"> <level label="1"> <text>“Rate stabilization cost” means a cost, liability, or investment that an electric company incurs or will incur under a rate stabilization plan approved by the Commission.</text> </level> <level label="2"> <text>“Rate stabilization cost” includes:</text> <level label="i"> <text>the excess of the contracted price incurred by an electric company for the purchase of energy supplies to be required for retail customers to whom it provides standard offer service, over the amounts that it is authorized to charge currently to those customers under the rate stabilization plan;</text> </level> <level label="ii"> <text>the approved costs of issuing, supporting, and servicing rate stabilization bonds; and</text> </level> <level label="iii"> <text>any approved costs for retiring and refunding existing debt and equity securities of the electric company issued to temporarily finance those rate stabilization costs.</text> </level> </level> </level> <level label="h"> <text>“Rate stabilization plan” means a plan approved by the Commission in accordance with this part.</text> </level> <level label="i"> <level label="1"> <text>“Rate stabilization property” means the right, title, and interest of an electric company or assignee in a qualified rate order.</text> </level> <level label="2"> <text>“Rate stabilization property” includes:</text> <level label="i"> <text>all rights in, to, and under a qualified rate order, including the right to impose and collect rate stabilization charges and rights to revenues, collections, claims, payments, money, or other property and amounts arising from the imposition of rate stabilization charges under the qualified rate order; and</text> </level> <level label="ii"> <text>in the hands of an assignee, the right to require the electric company to provide electric services and to collect and remit the qualified rate stabilization charges authorized in the qualified rate order, but not the right or duty to provide electric services.</text> </level> </level> </level> </section> <section article="gpu" article_name="Public Utilities" number="7-521" title_number="7" title_name="Gas, Electric, and Water Companies" subtitle_number="5" subtitle_name="Electric Industry Restructuring"> <text>This part applies to an electric company that:</text> <level label="1"> <text>has an obligation to provide standard offer service to residential electricity customers in accordance with § 7-510(c) of this subtitle; and</text> </level> <level label="2"> <text>is not subject to a rate cap or price freeze under § 7-505(d) of this subtitle during the period for which a rate stabilization plan is requested under this part.</text> </level> </section> <section article="gpu" article_name="Public Utilities" number="7-522" title_number="7" title_name="Gas, Electric, and Water Companies" subtitle_number="5" subtitle_name="Electric Industry Restructuring"> <level label="a"> <text>An electric company subject to this part may file a rate stabilization plan with the Commission for approval.</text> </level> <level label="b"> <text>The rate stabilization plan may include both short-term and long-term deferrals of incremental expenses of electricity supplies.</text> </level> </section> <section article="gpu" article_name="Public Utilities" number="7-523" title_number="7" title_name="Gas, Electric, and Water Companies" subtitle_number="5" subtitle_name="Electric Industry Restructuring"> <level label="a"> <text>The Commission may require that a deferral of expenses under a rate stabilization plan be either voluntary or mandatory if the Commission finds that the required type of deferral is in the public interest.</text> </level> <level label="b"> <text>The rate stabilization plan may provide that a deferral shall be secured through the issuance of rate stabilization bonds authorized by a qualified rate order under this part.</text> </level> </section> <section article="gpu" article_name="Public Utilities" number="7-524" title_number="7" title_name="Gas, Electric, and Water Companies" subtitle_number="5" subtitle_name="Electric Industry Restructuring"> <level label="a"> <text>Tariffs implementing a rate stabilization plan may provide that:</text> <level label="1"> <text>residential customers shall be charged the full cost of residential standard offer service necessary to recover the electric company’s costs under § 7- 510(c)(3) of this subtitle; and</text> </level> <level label="2"> <text>any credits or recoveries required or authorized under this part shall be reflected as nonbypassable credits or charges on the electric distribution portion of each residential customer’s bill.</text> </level> </level> <level label="b"> <text>As part of the submission of a rate stabilization plan, an electric company may apply to the Commission for a qualified rate order for the financing and recovery of its approved rate stabilization costs in accordance with this part.</text> </level> </section> <section article="gpu" article_name="Public Utilities" number="7-525" title_number="7" title_name="Gas, Electric, and Water Companies" subtitle_number="5" subtitle_name="Electric Industry Restructuring"> <level label="a"> <text>The Commission may authorize an electric company to recover, as additional rate stabilization costs, the actual cost to the electric company of carrying the deferred expenses as regulatory assets under short-term and long-term deferral plans.</text> </level> <level label="b"> <text>The actual cost is equal to the deferred expenses as regulatory assets multiplied by the electric company’s cost of debt.</text> </level> <level label="c"> <text>If the electric company secures the debt in accordance with this part, the cost of the secured debt is substituted for the electric company’s cost of debt.</text> </level> </section> <section article="gpu" article_name="Public Utilities" number="7-526" title_number="7" title_name="Gas, Electric, and Water Companies" subtitle_number="5" subtitle_name="Electric Industry Restructuring"> <level label="a"> <text>An electric company may apply to the Commission for a qualified rate order for the financing and recovery of its rate stabilization costs.</text> </level> <level label="b"> <text>On application of an electric company, the Commission may adopt a qualified rate order if the Commission finds that the total amount of revenue to be collected under the qualified rate order is less than the rate stabilization costs revenue that would be recovered over the same period using the electric company’s weighted average cost of capital.</text> </level> <level label="c"> <text>The rate stabilization costs to be financed and recovered under a qualified rate order may be reduced by funds contributed from other sources.</text> </level> </section> <section article="gpu" article_name="Public Utilities" number="7-527" title_number="7" title_name="Gas, Electric, and Water Companies" subtitle_number="5" subtitle_name="Electric Industry Restructuring"> <level label="a"> <text>The qualified rate order shall set forth the rate stabilization costs to be recovered and the period over which the nonbypassable qualified rate stabilization charges shall be recovered.</text> </level> <level label="b"> <text>The recovery period may not exceed 12 years.</text> </level> </section> <section article="gpu" article_name="Public Utilities" number="7-528" title_number="7" title_name="Gas, Electric, and Water Companies" subtitle_number="5" subtitle_name="Electric Industry Restructuring"> <level label="a"> <text>A qualified rate order shall become effective in accordance with its terms.</text> </level> <level label="b"> <text>After a qualified rate order becomes effective, the qualified rate order and the qualified rate stabilization charges authorized in the qualified rate order are irrevocable and are not subject to reduction, impairment, or adjustment by further action of the Commission except in accordance with §§ 7–531, 7–533, and 7–534 of this subtitle.</text> </level> <level label="c"> <level label="1"> <text>A qualified rate order is not subject to rehearing by the Commission.</text> </level> <level label="2"> <text>A qualified rate order may be reviewed by appeal only to the Circuit Court of Baltimore City by a party to the proceeding filed within 15 days after the qualified rate order is signed by the Commission.</text> </level> <level label="3"> <text>The judgment of the circuit court may be reviewed only by direct appeal to the Supreme Court of Maryland filed within 15 days after entry of judgment.</text> </level> <level label="4"> <text>All appeals shall be heard and determined by the circuit court and by the Supreme Court of Maryland as expeditiously as possible with lawful precedence over other matters.</text> </level> <level label="5"> <text>Review on appeal shall be based solely on the record before the Commission and briefs to the courts and shall be limited to whether the qualified rate order conforms to the Constitution and laws of this State and the United States and is within the authority of the Commission under this subtitle.</text> </level> <level label="6"> <text>The review process in this subsection shall be the exclusive remedy to challenge or review a qualified rate order.</text> </level> </level> </section> <section article="gpu" article_name="Public Utilities" number="7-529" title_number="7" title_name="Gas, Electric, and Water Companies" subtitle_number="5" subtitle_name="Electric Industry Restructuring"> <text>The Commission shall make a final decision on the issuance of a qualified rate order under this part no later than 60 days after the electric company files its request for the qualified rate order.</text> </section> <section article="gpu" article_name="Public Utilities" number="7-530" title_number="7" title_name="Gas, Electric, and Water Companies" subtitle_number="5" subtitle_name="Electric Industry Restructuring"> <text>A qualified rate order approved by the Commission shall include terms ensuring that the imposition and collection of qualified rate stabilization charges authorized in the order are nonbypassable.</text> </section> <section article="gpu" article_name="Public Utilities" number="7-531" title_number="7" title_name="Gas, Electric, and Water Companies" subtitle_number="5" subtitle_name="Electric Industry Restructuring"> <text>The Commission shall establish specific procedures and time frames for the review and adjustment of qualified rate stabilization charges at least once each year, within 90 days before the anniversary date of the issuance of the rate stabilization bonds, to correct any overcollections or undercollections of the preceding 12 months and to ensure the expected recovery of amounts sufficient to timely provide all payments of debt service and other required amounts and charges in connection with the rate stabilization bonds.</text> </section> <section article="gpu" article_name="Public Utilities" number="7-532" title_number="7" title_name="Gas, Electric, and Water Companies" subtitle_number="5" subtitle_name="Electric Industry Restructuring"> <level label="a"> <text>A qualified rate order shall terminate and expire 1 year after the date of its adoption if, during that period, no rate stabilization bonds authorized in the qualified rate order shall have been issued.</text> </level> <level label="b"> <text>This period shall be extended by any period during which judicial proceedings for review may be pending in accordance with § 7-528(c) of this subtitle.</text> </level> </section> <section article="gpu" article_name="Public Utilities" number="7-533" title_number="7" title_name="Gas, Electric, and Water Companies" subtitle_number="5" subtitle_name="Electric Industry Restructuring"> <level label="a"> <text>At the request of an electric company, the Commission may adopt a qualified rate order providing for retiring and refunding rate stabilization bonds if the Commission finds that the future qualified rate stabilization charges required to service the new rate stabilization bonds, including transaction costs, will be less than the future qualified rate stabilization charges required to service the rate stabilization bonds being refunded.</text> </level> <level label="b"> <text>On the retirement of the refunded rate stabilization bonds, the Commission shall adjust the related qualified rate stabilization charges accordingly.</text> </level> </section> <section article="gpu" article_name="Public Utilities" number="7-534" title_number="7" title_name="Gas, Electric, and Water Companies" subtitle_number="5" subtitle_name="Electric Industry Restructuring"> <level label="a"> <text>At the request of an electric company, the Commission may modify an existing qualified rate order, or issue an additional qualified rate order, providing for the issuance of:</text> <level label="1"> <text>additional rate stabilization bonds for rate stabilization costs not recovered under an original qualified rate order; or</text> </level> <level label="2"> <text>new rate stabilization bonds for the combined purposes of:</text> <level label="i"> <text>financing and recovering rate stabilization costs not recovered under an original qualified rate order; and</text> </level> <level label="ii"> <text>subject to § 7-533 of this subtitle, retiring and refunding existing rate stabilization bonds.</text> </level> </level> </level> <level label="b"> <text>Unless otherwise provided in the modified or additional qualified rate order or in the trust agreement securing the additional or new rate stabilization bonds, the additional or new rate stabilization bonds are:</text> <level label="1"> <text>considered to be of the same issue as the original issue; and</text> </level> <level label="2"> <text>entitled to payment from the same funds as the original issue, without preference or priority of the rate stabilization bonds of the original issue.</text> </level> </level> </section> <section article="gpu" article_name="Public Utilities" number="7-535" title_number="7" title_name="Gas, Electric, and Water Companies" subtitle_number="5" subtitle_name="Electric Industry Restructuring"> <level label="a"> <text>A rate stabilization bond issued under this part is not a debt, liability, or a pledge of the full faith and credit of the State or any other governmental unit.</text> </level> <level label="b"> <text>The issuance of a rate stabilization bond under this part is not directly, indirectly, or contingently a moral or other obligation of the State or any other governmental unit to levy or pledge any tax or to make an appropriation to pay the rate stabilization bond.</text> </level> <level label="c"> <text>Each rate stabilization bond issued under this part shall state on its face that:</text> <level label="1"> <text>the State and any governmental unit are not obliged to pay the principal of or interest on the bond; and</text> </level> <level label="2"> <text>neither the full faith and credit nor the taxing power of the State or any other governmental unit is pledged to the payment of the principal of or interest on a rate stabilization bond.</text> </level> </level> <level label="d"> <level label="1"> <text>The State pledges, for the benefit and protection of financing parties and the electric company, that it will not take or allow any action that would impair the value of rate stabilization property, or, except as allowed in accordance with §§ 7-531, 7-533, and 7-534 of this subtitle, reduce, alter, or impair the qualified rate stabilization charges to be imposed, collected, and remitted to financing parties, until the principal, interest, and premium, and any other charges incurred and contracts to be performed in connection with the related rate stabilization bonds have been paid and performed in full.</text> </level> <level label="2"> <text>Any party issuing rate stabilization bonds is authorized to include this pledge in any documentation relating to those bonds.</text> </level> </level> </section> <section article="gpu" article_name="Public Utilities" number="7-536" title_number="7" title_name="Gas, Electric, and Water Companies" subtitle_number="5" subtitle_name="Electric Industry Restructuring"> <text>A qualified rate order under this part that authorizes the issuance of rate stabilization bonds may:</text> <level label="1"> <text>state the rights and remedies of bondholders and any assignee; and</text> </level> <level label="2"> <text>contain provisions to protect and enforce the rights and remedies of bondholders and any assignee.</text> </level> </section> <section article="gpu" article_name="Public Utilities" number="7-537" title_number="7" title_name="Gas, Electric, and Water Companies" subtitle_number="5" subtitle_name="Electric Industry Restructuring"> <level label="a"> <text>The rights and interests of an electric company or successor under a qualified rate order, including the right to impose, collect, and receive qualified rate stabilization charges authorized in the order:</text> <level label="1"> <text>become rate stabilization property when they are first transferred to an assignee or are pledged in connection with the issuance of rate stabilization bonds; but</text> </level> <level label="2"> <text>are only contract rights before that first transfer or pledge.</text> </level> </level> <level label="b"> <text>Rate stabilization property constitutes a present property right:</text> <level label="1"> <text>for purposes of contracts concerning the sale or pledge of property, even though the imposition and collection of qualified rate stabilization charges depends on further acts of the electric company or others that have not yet occurred; and</text> </level> <level label="2"> <text>for all purposes until the later of:</text> <level label="i"> <text>the period provided in the qualified rate order, to the extent provided in that order; or</text> </level> <level label="ii"> <text>the payment in full of the rate stabilization bonds, including all principal, interest, premium, costs, and arrearages on the bonds.</text> </level> </level> </level> <level label="c"> <text>All revenues and collections resulting from qualified rate stabilization charges are proceeds only of the rate stabilization property arising from the qualified rate order.</text> </level> </section> <section article="gpu" article_name="Public Utilities" number="7-538" title_number="7" title_name="Gas, Electric, and Water Companies" subtitle_number="5" subtitle_name="Electric Industry Restructuring"> <text>A transaction that involves the transfer and ownership of rate stabilization property and the receipt of rate stabilization charges are exempt from State and local income, sales, franchise, gross receipts, and other taxes or similar charges.</text> </section> <section article="gpu" article_name="Public Utilities" number="7-539" title_number="7" title_name="Gas, Electric, and Water Companies" subtitle_number="5" subtitle_name="Electric Industry Restructuring"> <level label="a"> <text>An agreement by an electric company or assignee to transfer rate stabilization property that expressly states that the transfer is a sale or other absolute transfer signifies that:</text> <level label="1"> <text>the transaction is a true sale and is not a secured transaction; and</text> </level> <level label="2"> <text>legal and equitable title has passed to the entity to which the rate stabilization property is transferred.</text> </level> </level> <level label="b"> <text>The status of the transfer as a true sale prevails regardless of any recourse the purchaser may have against the seller, or any other term of the parties’ agreement, including:</text> <level label="1"> <text>the seller’s retention of an equity interest in the rate stabilization property;</text> </level> <level label="2"> <text>the fact that the electric company acts as the collector of qualified rate stabilization charges relating to the rate stabilization property; and</text> </level> <level label="3"> <text>the treatment of the transfer as a financing for tax, financial reporting, or other purposes.</text> </level> </level> </section> <section article="gpu" article_name="Public Utilities" number="7-540" title_number="7" title_name="Gas, Electric, and Water Companies" subtitle_number="5" subtitle_name="Electric Industry Restructuring"> <level label="a"> <text>The interest of an assignee or pledgee in rate stabilization property and in the revenues and collections arising from that property is not subject to setoff, counterclaim, surcharge, or defense by the electric company or any other person or in connection with the bankruptcy of the electric company or any other entity.</text> </level> <level label="b"> <text>A qualified rate order remains in effect and unabated notwithstanding the bankruptcy of the electric company, its successors, or assignees.</text> </level> </section> <section article="gpu" article_name="Public Utilities" number="7-541" title_number="7" title_name="Gas, Electric, and Water Companies" subtitle_number="5" subtitle_name="Electric Industry Restructuring"> <level label="a"> <level label="1"> <text>The electric bill of an electric company that has obtained a qualified rate order and issued rate stabilization bonds must:</text> <level label="i"> <text>explicitly reflect that a portion of the charges on the bill represents qualified rate stabilization charges approved in a qualified rate order issued to the electric company; and</text> </level> <level label="ii"> <text>if the rate stabilization property has been transferred to an assignee, include a statement to the effect that:</text> <level label="1"> <text>the assignee is the owner of the rights to qualified rate stabilization charges; and</text> </level> <level label="2"> <text>the electric company or any other entity, if applicable, is acting as a collection agent or servicer for the assignee.</text> </level> </level> </level> <level label="2"> <text>The tariff applicable to customers must indicate the qualified rate stabilization charge and the ownership of that charge.</text> </level> </level> <level label="b"> <text>The failure of an electric company to comply with this section may not invalidate, impair, or affect any qualified rate order, rate stabilization property, qualified rate stabilization charge, or rate stabilization bonds.</text> </level> </section> <section article="gpu" article_name="Public Utilities" number="7-542" title_number="7" title_name="Gas, Electric, and Water Companies" subtitle_number="5" subtitle_name="Electric Industry Restructuring"> <level label="a"> <level label="1"> <text>Rate stabilization property does not constitute an account or general intangible under § 9-102 of the Commercial Law Article.</text> </level> <level label="2"> <text>The creation, granting, perfection, and enforcement of liens and security interests in rate stabilization property, including all proceeds of that property, are governed by this section and not by the Maryland Uniform Commercial Code.</text> </level> </level> <level label="b"> <level label="1"> <text>A valid and enforceable lien and security interest in intangible rate stabilization property, including all proceeds of that property, may be created only by a qualified rate order and the execution and delivery of a security agreement with a financing party in connection with the issuance of rate stabilization bonds.</text> </level> <level label="2"> <level label="i"> <text>The lien and security interest shall attach automatically from the time that value is received for the bonds.</text> </level> <level label="ii"> <text>On perfection through the filing of notice with the State Department of Assessments and Taxation in accordance with the procedures prescribed under subsection (d) of this section:</text> <level label="1"> <text>the lien and security interest shall be a continuously perfected lien and security interest in the rate stabilization property; and</text> </level> <level label="2"> <text>all proceeds of the property, whether accrued or not, shall have priority in the order of filing and take precedence over any subsequent judicial or other lien creditor.</text> </level> </level> </level> <level label="3"> <text>The security interest shall be perfected:</text> <level label="i"> <text>retroactive to the date value was received if notice is filed within 10 days after value is received for the rate stabilization bonds; or</text> </level> <level label="ii"> <text>as of the date of filing, if notice is not filed within that 10-day period.</text> </level> </level> </level> <level label="c"> <level label="1"> <text>Subject to paragraph (2) of this subsection, transfer of an interest in rate stabilization property to an assignee shall be perfected against all third parties, including subsequent judicial or other lien creditors, when:</text> <level label="i"> <text>the qualified rate order becomes effective;</text> </level> <level label="ii"> <text>transfer documents have been delivered to the assignee; and</text> </level> <level label="iii"> <text>a notice of that transfer has been filed in accordance with procedures adopted under subsection (d) of this section.</text> </level> </level> <level label="2"> <text>If notice of the transfer has not been filed in accordance with this subsection within 10 days after the delivery of transfer documentation, the transfer of the interest is not perfected against third parties until the notice is filed.</text> </level> </level> <level label="d"> <text>The State Department of Assessments and Taxation shall implement this section by establishing and maintaining a separate system of records for the filing of notices under this section and prescribing the procedures for those filings based on Title 9 of the Maryland Uniform Commercial Code, as adapted to this subtitle and using the terms defined in this subtitle.</text> </level> <level label="e"> <level label="1"> <text>The priority of a lien and security interest perfected under this section is not impaired by:</text> <level label="i"> <text>any later modification of the qualified rate order under § 7-531, § 7-533, or § 7-534 of this subtitle; or</text> </level> <level label="ii"> <text>the commingling of funds arising from qualified rate stabilization charges with other funds.</text> </level> </level> <level label="2"> <text>Any other security interest that may apply to those funds shall be terminated when they are transferred to a segregated account for the assignee or a financing party.</text> </level> <level label="3"> <text>If rate stabilization property has been transferred to an assignee, any proceeds of that property shall be held in trust for the assignee.</text> </level> </level> <level label="f"> <text>If a default or termination occurs under the rate stabilization bonds:</text> <level label="1"> <text>the financing parties or their representatives may foreclose on or otherwise enforce their lien and security interest in any intangible rate stabilization property as if they were secured parties under Title 9 of the Maryland Uniform Commercial Code;</text> </level> <level label="2"> <text>the Commission may order that amounts arising from qualified rate stabilization charges be transferred to a separate account for the financing parties’ benefit, to which their lien and security interest shall apply; and</text> </level> <level label="3"> <text>on application by or on behalf of the financing parties, the Circuit Court for Baltimore City, Business and Technology Case Management Program, shall order the sequestration and payment to the financing parties of revenues arising from the qualified rate stabilization charges.</text> </level> </level> <level label="g"> <text>The court order under subsection (f) of this section shall remain in full force and effect notwithstanding any reorganization, bankruptcy, or other insolvency proceedings with respect to the electric company or its successors or assignees.</text> </level> <level label="h"> <text>This section does not limit any other remedies available to the applying party.</text> </level> </section> <section article="gpu" article_name="Public Utilities" number="7-543" title_number="7" title_name="Gas, Electric, and Water Companies" subtitle_number="5" subtitle_name="Electric Industry Restructuring"> <level label="a"> <text>This section applies to a person that is a successor to an electric company, whether through:</text> <level label="1"> <text>a reorganization, bankruptcy, or other insolvency proceeding;</text> </level> <level label="2"> <text>a merger or acquisition, sale, or other business combination; or</text> </level> <level label="3"> <text>a transfer by operation of law.</text> </level> </level> <level label="b"> <text>A successor to an electric company shall perform and satisfy all obligations of, and have the same rights under a qualified rate order as, the electric company under the qualified rate order in the same manner and to the same extent as the electric company, including:</text> <level label="1"> <text>collecting the revenues, collections, payments, or proceeds of the rate stabilization property; and</text> </level> <level label="2"> <text>paying them to the person entitled to receive them.</text> </level> </level> </section> <section article="gpu" article_name="Public Utilities" number="7-544" title_number="7" title_name="Gas, Electric, and Water Companies" subtitle_number="5" subtitle_name="Electric Industry Restructuring"> <text>An assignee or financing party may not be considered to be a public service company or an electricity supplier solely by virtue of the transactions described in this part.</text> </section> <section article="gpu" article_name="Public Utilities" number="7-547" title_number="7" title_name="Gas, Electric, and Water Companies" subtitle_number="5" subtitle_name="Electric Industry Restructuring"> <text>This part applies to an investor-owned electric company that has an obligation to provide standard offer service under § 7-510(c) of this subtitle to residential electric customers for whom rate cap or price freeze service established under a settlement agreement approved in accordance with § 7-505(d) of this subtitle expires at the end of June 30, 2006.</text> </section> <section article="gpu" article_name="Public Utilities" number="7-548" title_number="7" title_name="Gas, Electric, and Water Companies" subtitle_number="5" subtitle_name="Electric Industry Restructuring"> <level label="a"> <level label="1"> <level label="i"> <text>Notwithstanding any other provision of this article, but subject to paragraphs (2) through (4) of this subsection, an electric company to which this part applies shall file tariffs with the Commission that implement a rate stabilization plan consistent with this part.</text> </level> <level label="ii"> <level label="1"> <text>The Commission shall review the tariffs required under subparagraph (i) of this paragraph.</text> </level> <level label="2"> <text>Within 20 days after the filing of the tariffs required under subparagraph (i) of this paragraph, the Commission shall issue an order implementing the rate stabilization plan in accordance with this part and Part III of this subtitle.</text> </level> <level label="3"> <text>The order issued by the Commission shall include a requirement that the electric company establish regulatory assets to account for the rate stabilization costs deferred under the rate stabilization plan.</text> </level> </level> </level> <level label="2"> <text>Under the rate stabilization plan, the residential standard offer service rate shall recover the costs to the electric company under § 7-510(c)(3) of this subtitle deferred during the period July 1, 2006 through May 31, 2007.</text> </level> <level label="3"> <text>Any credit or charges to the cost of standard offer service for residential electric customers required or authorized under this part shall be included as a nonbypassable credit or charge on the electric distribution portion of the bill of each residential electric customer of the electric company.</text> </level> <level label="4"> <text>An electric company may apply to the Commission for a qualified rate order under Part III of this subtitle for the financing and recovery of its rate stabilization costs.</text> </level> </level> <level label="b"> <level label="1"> <text>The increase in the total rates charged to each residential electric customer on standard offer service, as compared with the total rates for residential electric customers in effect on June 30, 2006, shall be:</text> <level label="i"> <text>from July 1, 2006 through May 31, 2007, 15% of the total rate in effect on June 30, 2006; and</text> </level> <level label="ii"> <text>from June 1, 2007, at the option of the customer, to:</text> <level label="1"> <text>the full market rate; or</text> </level> <level label="2"> <text>an intermediate level under an opt-in short-term rate stabilization plan as allowed under § 7-510(c) of this subtitle which will smooth the transition to the full market rate for residential customers without adversely affecting the creditworthiness of the electric company.</text> </level> </level> </level> <level label="2"> <text>Standard offer service for residential electric customers shall be at full market rates under this part starting January 1, 2008.</text> </level> <level label="3"> <text>A rate stabilization cost may not be recovered before January 1, 2007.</text> </level> <level label="4"> <text>For purposes of calculating the rates to be charged under paragraph (1) of this subsection, the rate stabilization charge may not be considered to be part of the total rates charged to residential electric customers.</text> </level> <level label="5"> <text>The Commission need not conduct evidentiary proceedings under § 7-510(c)(7)(i) of this subtitle to determine the second or subsequent phase of the transition to full market rates under this part.</text> </level> </level> <level label="c"> <level label="1"> <text>The electric company shall provide each residential electric customer a deferral credit equal to the difference between the cost incurred by the electric company under § 7-510(c)(3) of this subtitle and the rates authorized in subsection (b)(1) of this section.</text> </level> <level label="2"> <level label="i"> <text>The total amount of cost recovery deferred through deferral credits provided to residential electric customers shall be a rate stabilization cost to be recovered as a regulatory asset.</text> </level> <level label="ii"> <text>The total cost deferred may be secured under Part III of this subtitle.</text> </level> </level> <level label="3"> <level label="i"> <text>Subject to subparagraph (ii) of this paragraph, the electric company shall perform a reconciliation of any overcollection or undercollection of the deferred costs and expenses resulting from this rate stabilization plan:</text> <level label="1"> <text>each year during the rate stabilization plan; and</text> </level> <level label="2"> <text>within 90 days after the end of the rate stabilization plan.</text> </level> </level> <level label="ii"> <text>To the extent that securitization is implemented under Part III of this subtitle, any reconciliations made in accordance with subparagraph (i) of this paragraph shall be in addition to any reconciliations made under Part III of this subtitle.</text> </level> </level> </level> <level label="d"> <text>Rate stabilization costs shall be recovered by the electric company from the residential electric customers through a usage-based rate stabilization charge over a period not to exceed 10 years.</text> </level> <level label="e"> <text>Notwithstanding any other provision of this subtitle, as approved by the Commission, an electric company may receive a modification in distribution and transmission rates while the rate stabilization plan is in effect. However, the modification may not alter the rate stabilization charges approved in accordance with Part III of this subtitle.</text> </level> </section> <section article="gpu" article_name="Public Utilities" number="7-549" title_number="7" title_name="Gas, Electric, and Water Companies" subtitle_number="5" subtitle_name="Electric Industry Restructuring"> <level label="a"> <text>In this section, “actual cost” means the costs and expenses deferred as regulatory assets multiplied by:</text> <level label="1"> <text>the electric company’s cost of debt; or</text> </level> <level label="2"> <text>if the electric company secures the debt under Part III of this subtitle, the cost of the secured debt.</text> </level> </level> <level label="b"> <text>An electric company shall recover, as an additional rate stabilization cost, the actual cost to the electric company of carrying the costs and expenses deferred as regulatory assets under the rate stabilization plan.</text> </level> </section> <section article="gpu" article_name="Public Utilities" number="7-601" title_number="7" title_name="Gas, Electric, and Water Companies" subtitle_number="6" subtitle_name="Natural Gas Supplier Licensing and Consumer Protection"> <text>In this subtitle, “consumer” and “customer” each means a retail gas customer.</text> </section> <section article="gpu" article_name="Public Utilities" number="7-602" title_number="7" title_name="Gas, Electric, and Water Companies" subtitle_number="6" subtitle_name="Natural Gas Supplier Licensing and Consumer Protection"> <text>The General Assembly finds and declares that the purpose of this subtitle is to:</text> <level label="1"> <text>clarify existing law regarding the provision of competitive retail gas supply and gas supply services in the State;</text> </level> <level label="2"> <text>require the Commission to license gas suppliers, energy salespersons, and energy vendors;</text> </level> <level label="3"> <text>authorize the Commission to adopt complaint procedures;</text> </level> <level label="4"> <text>establish certain requirements relating to the competitiveness of retail gas supply and gas supply services markets; and</text> </level> <level label="5"> <text>establish standards for the protection of consumers.</text> </level> </section> <section article="gpu" article_name="Public Utilities" number="7-603" title_number="7" title_name="Gas, Electric, and Water Companies" subtitle_number="6" subtitle_name="Natural Gas Supplier Licensing and Consumer Protection"> <level label="a"> <text>The Commission shall license gas suppliers, energy salespersons, and energy vendors and shall have the same authority as the Commission has under §§ 7–317, 7–318, and 7–507 of this title for electricity suppliers, energy salespersons, and energy vendors, including the authority to:</text> <level label="1"> <text>deny, revoke, suspend, or refuse to renew a license;</text> </level> <level label="2"> <text>impose a moratorium, civil penalty, or other remedy; or</text> </level> <level label="3"> <text>order a refund for or credit to a customer.</text> </level> </level> <level label="b"> <text>The Commission shall adopt licensing requirements and procedures for gas suppliers, energy salespersons, and energy vendors that protect consumers, the public interest, and the collection of all State and local taxes, consistent with the requirements for electricity suppliers under Subtitle 5 of this title and energy salespersons and energy vendors under Subtitle 3 of this title.</text> </level> </section> <section article="gpu" article_name="Public Utilities" number="7-603.1" title_number="7" title_name="Gas, Electric, and Water Companies" subtitle_number="6" subtitle_name="Natural Gas Supplier Licensing and Consumer Protection"> <level label="a"> <level label="1"> <text>Subject to subsection (b)(5) of this section, for just cause on the Commission’s own investigation or on complaint of the Office of People’s Counsel, the Attorney General, or an affected party, the Commission may:</text> <level label="i"> <text>deny a license to, or revoke, suspend, or refuse to renew the license of, a gas supplier, an energy salesperson, or an energy vendor;</text> </level> <level label="ii"> <text>impose a civil penalty or other remedy;</text> </level> <level label="iii"> <text>order a refund or credit to a customer; or</text> </level> <level label="iv"> <text>impose a moratorium on adding or soliciting additional customers by the gas supplier, energy salesperson, or an energy vendor.</text> </level> </level> <level label="2"> <text>A civil penalty may be imposed in addition to the Commission’s decision to deny, revoke, suspend, or refuse to renew a license or impose a moratorium.</text> </level> <level label="3"> <text>Just cause includes:</text> <level label="i"> <text>intentionally providing false information to the Commission;</text> </level> <level label="ii"> <text>switching, or causing to be switched, the gas supply for a customer without first obtaining the customer’s permission;</text> </level> <level label="iii"> <text>failing to provide gas for its customers;</text> </level> <level label="iv"> <text>committing fraud or engaging in deceptive practices;</text> </level> <level label="v"> <text>failing to maintain financial integrity;</text> </level> <level label="vi"> <text>violating a Commission regulation or order;</text> </level> <level label="vii"> <text>failing to pay, collect, remit, or calculate accurately applicable State or local taxes;</text> </level> <level label="viii"> <text>violating a provision of this article or any other applicable consumer protection law of the State;</text> </level> <level label="ix"> <text>conviction of a felony by the licensee or principal of the licensee or any crime involving fraud, theft, or deceit;</text> </level> <level label="x"> <text>denial, suspension, or revocation of or refusal to renew a license by any State or federal authority; and</text> </level> <level label="xi"> <text>commission of any of the acts described in items (i) through (x) of this paragraph by a person that is an affiliate of the licensee or that is under common control with the licensee.</text> </level> </level> </level> <level label="b"> <level label="1"> <level label="i"> <text>A gas supplier, an energy vendor, or any other person, except for an energy salesperson, selling or offering to sell gas in the State in violation of this section or § 7–603 of this subtitle, after notice and an opportunity for a hearing, is subject to:</text> <level label="1"> <text>a civil penalty of not more than $25,000 for the violation;</text> </level> <level label="2"> <text>license denial, revocation, or suspension or refusal to renew the license; or</text> </level> <level label="3"> <text>both.</text> </level> </level> <level label="ii"> <text>An energy salesperson selling or offering to sell gas in the State in violation of this section or § 7–603 of this subtitle, after notice and an opportunity for a hearing, is subject to license denial, revocation, or suspension or refusal to renew the license.</text> </level> </level> <level label="2"> <text>Each day or part of a day a violation continues is a separate violation.</text> </level> <level label="3"> <text>Each customer to whom gas is sold or offered in violation of this section is a separate violation.</text> </level> <level label="4"> <text>The Commission shall determine the amount of any civil penalty after considering:</text> <level label="i"> <text>the number of previous violations of any provision of this division by the gas supplier, energy vendor, or other person;</text> </level> <level label="ii"> <text>the gravity of the current violation;</text> </level> <level label="iii"> <text>the good faith of the gas supplier, energy vendor, or other person charged in attempting to achieve compliance after notification of the violation; and</text> </level> <level label="iv"> <text>any other matter that the Commission considers appropriate and relevant.</text> </level> </level> <level label="5"> <text>The Commission may not impose a civil penalty on an individual energy salesperson in accordance with this subsection.</text> </level> </level> <level label="c"> <text>In connection with a consumer complaint or Commission investigation under this section or § 7–603 of this subtitle, a gas supplier, an energy salesperson, an energy vendor, and any other person selling or offering to sell gas in the State shall provide to the Commission access to any accounts, books, papers, and documents that the Commission considers necessary to resolve the matter at issue.</text> </level> <level label="d"> <text>The Commission may order the gas supplier, energy salesperson, an energy vendor, or other person to cease adding or soliciting additional customers or to cease serving customers in the State.</text> </level> </section> <section article="gpu" article_name="Public Utilities" number="7-604" title_number="7" title_name="Gas, Electric, and Water Companies" subtitle_number="6" subtitle_name="Natural Gas Supplier Licensing and Consumer Protection"> <level label="a"> <text>On or before July 1, 2001, the Commission shall adopt consumer protection orders or regulations for gas suppliers, energy salespersons, and energy vendors that:</text> <level label="1"> <text>protect consumers from discriminatory, unfair, deceptive, and anticompetitive acts and practices in the marketing, selling, or distributing of natural gas;</text> </level> <level label="2"> <text>provide for contracting, enrollment, and billing practices and procedures; and</text> </level> <level label="3"> <text>the Commission considers necessary to protect the consumer.</text> </level> </level> <level label="b"> <text>In adopting orders and regulations under this section, unless the Commission determines that the circumstances do not require consistency, the Commission shall:</text> <level label="1"> <text>provide customers with protections consistent with applicable protections provided to retail electric customers; and</text> </level> <level label="2"> <text>impose appropriate requirements on gas suppliers, energy salespersons, and energy vendors that are consistent with applicable requirements imposed on electricity suppliers, energy salespersons, and energy vendors.</text> </level> </level> </section> <section article="gpu" article_name="Public Utilities" number="7-604.1" title_number="7" title_name="Gas, Electric, and Water Companies" subtitle_number="6" subtitle_name="Natural Gas Supplier Licensing and Consumer Protection"> <level label="a"> <text>The Commission shall establish a customer choice shopping website that allows a customer to sort natural gas suppliers that have open offers to supply natural gas to residential customers in the customer’s service area.</text> </level> <level label="b"> <text>The website shall include:</text> <level label="1"> <text>a list of all natural gas suppliers that have open offers to supply natural gas to residential customers in a customer’s service area, sortable by:</text> <level label="i"> <text>cost of service;</text> </level> <level label="ii"> <text>cost of natural gas per therm;</text> </level> <level label="iii"> <text>rate structure;</text> </level> <level label="iv"> <text>duration of the contract;</text> </level> <level label="v"> <text>cancellation fee; and</text> </level> <level label="vi"> <text>any other aspect of service that the Commission considers necessary;</text> </level> </level> <level label="2"> <text>a way to compare natural gas suppliers based on the sortable items specified under item (1) of this subsection;</text> </level> <level label="3"> <text>a link to the website of each natural gas supplier with an open offer to supply natural gas to residential customers;</text> </level> <level label="4"> <text>a link to a complaint process that provides access for the customer to protect the customer’s rights and make use of consumer protections through the Commission; and</text> </level> <level label="5"> <text>fact sheets on the process for comparing offers from natural gas suppliers on the website, including relevant contract terms, requirements, limitations, and fees.</text> </level> </level> <level label="c"> <level label="1"> <text>To ensure the currency and accuracy of information required under subsection (b) of this section, the Commission shall maintain a secure portal on its website to receive information about offers to supply natural gas from natural gas suppliers.</text> </level> <level label="2"> <text>At least once a month, each natural gas supplier with an open offer to supply natural gas shall submit detailed information about the offer to the Commission through a secure portal maintained by the Commission on the Commission’s website for this purpose.</text> </level> </level> <level label="d"> <text>The Commission shall recover the cost of complying with this section in accordance with § 2–110 of this article.</text> </level> </section> <section article="gpu" article_name="Public Utilities" number="7-604.2" title_number="7" title_name="Gas, Electric, and Water Companies" subtitle_number="6" subtitle_name="Natural Gas Supplier Licensing and Consumer Protection"> <level label="a"> <text>In this section, “default gas commodity service” means the supply of retail gas commodity service by a customer’s gas company.</text> </level> <level label="b"> <level label="1"> <text>This subsection applies to residential gas supply other than default gas commodity service provided by a gas company.</text> </level> <level label="2"> <text>A gas supplier that supplies gas to residential retail gas customers:</text> <level label="i"> <text>may offer gas service only at a price that does not exceed the trailing 12–month average of the gas company’s default gas commodity service in the gas company’s service territory as of the date of the agreement with the customer;</text> </level> <level label="ii"> <text>may offer residential gas supply only for a term not to exceed 12 months at a time and may automatically renew the term only if the gas supplier provides notice to the customer 90 days before and 30 days before renewal;</text> </level> <level label="iii"> <text>subject to paragraph (3) of this subsection, may not offer a variable rate other than a rate that adjusts for seasonal variation not more than twice in a single year; and</text> </level> <level label="iv"> <text>may not pay a commission or other incentive–based compensation to an energy salesperson for enrolling customers.</text> </level> </level> <level label="3"> <text>Paragraph (2)(iii) of this subsection does not prohibit the offer and use of rates that differ based on the total number of therms used by a customer in any billing period.</text> </level> <level label="4"> <text>A gas supplier that supplies gas to residential retail gas customers may not sell to a gas company, and a gas company may not purchase from the gas supplier, accounts receivable.</text> </level> </level> <level label="c"> <text>A gas company and a gas supplier that supplies gas to residential retail gas customers shall establish a mechanism for a customer whose account number or customer choice identification number has been compromised to receive a replacement account number or customer choice identification number on request, subject to verification in a manner approved by the Commission.</text> </level> <level label="d"> <level label="1"> <text>Except as provided in paragraph (2) of this subsection, as approved by the Commission by regulation or order, each gas company and each gas supplier that supplies gas to residential retail gas customers shall allow a customer to indicate the customer’s intention to remain on default gas commodity service indefinitely and not to receive directed marketing contacts from gas suppliers through the implementation of a “do not transfer” list onto which the customer may request to be placed.</text> </level> <level label="2"> <text>A gas supplier that supplies gas to residential retail gas customers may contact a customer on a “do not transfer” list until the gas supply agreement entered into between the gas supplier and the customer expires.</text> </level> </level> <level label="e"> <level label="1"> <text>In this subsection, “billing entity” means a gas company, a licensed gas supplier, or any other entity that is responsible for issuing a gas bill to a residential customer.</text> </level> <level label="2"> <text>On or before the 15th day of each month, each billing entity shall submit a report to the Commission on customer choice in its service territory for the preceding month, including:</text> <level label="i"> <text>the total therms distributed to customers purchasing gas from a third–party gas supplier;</text> </level> <level label="ii"> <text>the total supply cost charged to customers purchasing gas from a third–party gas supplier;</text> </level> <level label="iii"> <text>the total cost that customers specified in item (ii) of this paragraph would have paid under default gas commodity service;</text> </level> <level label="iv"> <text>the net third–party total cost compared to the net default gas commodity service cost;</text> </level> <level label="v"> <text>the total third–party average rate;</text> </level> <level label="vi"> <text>the default gas commodity service average rate;</text> </level> <level label="vii"> <text>the difference between the total third–party average rate and the default gas commodity service average rate;</text> </level> <level label="viii"> <text>the third–party average residential rates broken out by supplier and the variance between each of these rates and the default gas commodity service average rate;</text> </level> <level label="ix"> <text>the third–party average general service nondemand rates broken out by supplier and the variance between each of these third–party rates and the default gas commodity service average rate;</text> </level> <level label="x"> <text>the third–party average general service demand rates broken out by supplier and the variance between each of these third–party rates and the default gas commodity service average rate;</text> </level> <level label="xi"> <text>the third–party average large power demand rates broken out by supplier and the variance between each of these third–party rates and the default gas commodity service average rate; and</text> </level> <level label="xii"> <text>other pertinent information the Commission considers appropriate.</text> </level> </level> </level> <level label="f"> <text>The Commission shall, by regulation or order, adopt procedures to carry out this section.</text> </level> </section> <section article="gpu" article_name="Public Utilities" number="7-605" title_number="7" title_name="Gas, Electric, and Water Companies" subtitle_number="6" subtitle_name="Natural Gas Supplier Licensing and Consumer Protection"> <level label="a"> <text>This subtitle may not be construed to:</text> <level label="1"> <text>affect the authority of the Division of Consumer Protection of the Office of the Attorney General to enforce violations of Titles 13 and 14 of the Commercial Law Article or any other applicable State law or regulation in connection with the activities of gas suppliers, energy salespersons, or energy vendors; or</text> </level> <level label="2"> <text>exempt gas companies, gas suppliers, energy salespersons, and energy vendors from otherwise applicable State or federal consumer protection and antitrust laws.</text> </level> </level> <level label="b"> <text>The Commission shall consult with the Consumer Protection Division of the Office of the Attorney General before adopting regulations designed to protect consumers of gas supply and gas supply services.</text> </level> <level label="c"> <text>The People’s Counsel has the same authority in licensing, complaint, and dispute resolution proceedings as the People’s Counsel has under Subtitle 5 of this title and Title 2 of this article.</text> </level> <level label="d"> <text>In connection with a consumer complaint or Commission investigation under this subtitle, a gas supplier, an energy salesperson, or an energy vendor shall provide to the Commission access to any accounts, books, papers, and documents that the Commission considers necessary to resolve a matter in dispute.</text> </level> </section> <section article="gpu" article_name="Public Utilities" number="7-606" title_number="7" title_name="Gas, Electric, and Water Companies" subtitle_number="6" subtitle_name="Natural Gas Supplier Licensing and Consumer Protection"> <text>The Commission may adopt regulations or adopt orders to implement this subtitle that it considers necessary and in the public interest.</text> </section> <section article="gpu" article_name="Public Utilities" number="7-607" title_number="7" title_name="Gas, Electric, and Water Companies" subtitle_number="6" subtitle_name="Natural Gas Supplier Licensing and Consumer Protection"> <text>This subtitle may be referred to as the “Natural Gas Supplier Licensing and Consumer Protection Act of 2000”.</text> </section> <section article="gpu" article_name="Public Utilities" number="7-701" title_number="7" title_name="Gas, Electric, and Water Companies" subtitle_number="7" subtitle_name="Renewable Energy Portfolio Standard"> <level label="a"> <text>In this subtitle the following words have the meanings indicated.</text> </level> <level label="b"> <text>“Administration” means the Maryland Energy Administration.</text> </level> <level label="c"> <text>“Fund” means the Maryland Strategic Energy Investment Fund established under § 9–20B–05 of the State Government Article.</text> </level> <level label="d"> <text>“Geothermal heating and cooling system” means a system that:</text> <level label="1"> <text>exchanges thermal energy from groundwater or a shallow ground source to generate thermal energy through a geothermal heat pump or a system of geothermal heat pumps interconnected with any geothermal extraction facility that is:</text> <level label="i"> <text>a closed loop or a series of closed loop systems in which fluid is permanently confined within a pipe or tubing and does not come in contact with the outside environment; or</text> </level> <level label="ii"> <text>an open loop system in which ground or surface water is circulated in an environmentally safe manner directly into the facility and returned to the same aquifer or surface water source;</text> </level> </level> <level label="2"> <text>meets or exceeds the current federal Energy Star product specification standards;</text> </level> <level label="3"> <text>is manufactured, installed, and operated in accordance with applicable government and industry standards; and</text> </level> <level label="4"> <text>does not feed electricity back to the grid.</text> </level> </level> <level label="e"> <text>“Industrial process load” means the consumption of electricity by a manufacturing process at an establishment classified in the manufacturing sector under the North American Industry Classification System, Codes 31 through 33.</text> </level> <level label="e–1"> <text>“Legacy geothermal system” means a geothermal heating and cooling system that was placed in service on or before December 31, 2022.</text> </level> <level label="f"> <text>“Offshore wind energy” means energy generated by a qualified offshore wind project.</text> </level> <level label="g"> <text>“Offshore wind renewable energy credit” or “OREC” means a renewable energy credit equal to the generation attributes of 1 megawatt–hour of electricity that is derived from offshore wind energy.</text> </level> <level label="g–1"> <text>“Offshore wind transmission project” means an electric transmission project selected by the Commission under § 7–704.3 of this subtitle to interconnect directly or indirectly with one or more qualified offshore wind projects.</text> </level> <level label="h"> <text>“Old growth timber” means timber from a forest:</text> <level label="1"> <text>at least 5 acres in size with a preponderance of old trees, of which the oldest exceed at least half the projected maximum attainable age for the species; and</text> </level> <level label="2"> <text>that exhibits several of the following characteristics:</text> <level label="i"> <text>shade–tolerant species are present in all age and size classes;</text> </level> <level label="ii"> <text>randomly distributed canopy gaps are present;</text> </level> <level label="iii"> <text>a high degree of structural diversity characterized by multiple growth layers reflecting a broad spectrum of ages is present;</text> </level> <level label="iv"> <text>an accumulation of dead wood of varying sizes and stages of decomposition accompanied by decadence in live dominant trees is present; and</text> </level> <level label="v"> <text>pit and mound topography can be observed.</text> </level> </level> </level> <level label="i"> <text>“Post–2022 geothermal system” means a geothermal heating and cooling system that is placed in service on or after January 1, 2023.</text> </level> <level label="j"> <text>“Poultry litter” means the fecal and urinary excretions of poultry, including wood shavings, sawdust, straw, rice hulls, and other bedding material for the disposition of manure.</text> </level> <level label="k"> <text>“Qualified offshore wind project” means a wind turbine electricity generation facility, including the associated transmission–related interconnection facilities and equipment, that:</text> <level label="1"> <text>is located:</text> <level label="i"> <text>on the outer continental shelf of the Atlantic Ocean in an area that the United States Department of the Interior designates for leasing; and</text> </level> <level label="ii"> <text>more than 10 miles off the coast of the State for a project selected under § 7–704.4 of this subtitle or approved under § 7–704.1 of this subtitle after June 1, 2023; and</text> </level> </level> <level label="2"> <text>interconnects to the PJM Interconnection grid:</text> <level label="i"> <text>at a point located on the Delmarva Peninsula; or</text> </level> <level label="ii"> <text>through an offshore wind transmission project selected under § 7–704.3 of this subtitle.</text> </level> </level> </level> <level label="l"> <level label="1"> <text>“Qualifying biomass” means a nonhazardous, organic material that is available on a renewable or recurring basis, and is:</text> <level label="i"> <text>waste material that is segregated from inorganic waste material and is derived from sources including:</text> <level label="1"> <text>except for old growth timber, any of the following forest–related resources:</text> </level> <level label="A"> <text>mill residue, except sawdust and wood shavings;</text> </level> <level label="B"> <text>precommercial soft wood thinning;</text> </level> <level label="C"> <text>slash;</text> </level> <level label="D"> <text>brush; or</text> </level> <level label="E"> <text>yard waste;</text> </level> <level label="2"> <text>a pallet, crate, or dunnage;</text> </level> <level label="3"> <text>agricultural and silvicultural sources, including tree crops, vineyard materials, grain, legumes, sugar, and other crop by–products or residues; or</text> </level> <level label="4"> <text>gas produced from the anaerobic decomposition of animal waste or poultry waste; or</text> </level> </level> <level label="ii"> <text>a plant that is cultivated exclusively for purposes of being used at a Tier 1 renewable source or a Tier 2 renewable source to produce electricity.</text> </level> </level> <level label="2"> <text>“Qualifying biomass” includes biomass listed in paragraph (1) of this subsection that is used for co–firing, subject to § 7–704(d) of this subtitle.</text> </level> <level label="3"> <text>“Qualifying biomass” does not include:</text> <level label="i"> <text>unsegregated solid waste or postconsumer wastepaper;</text> </level> <level label="ii"> <text>black liquor, or any product derived from black liquor; or</text> </level> <level label="iii"> <text>an invasive exotic plant species.</text> </level> </level> </level> <level label="m"> <text>“Renewable energy credit” or “credit” means a credit equal to the generation attributes of 1 megawatt–hour of electricity that is derived from a Tier 1 renewable source or a Tier 2 renewable source that is located:</text> <level label="1"> <text>in the PJM region;</text> </level> <level label="2"> <text>outside the area described in item (1) of this subsection but in a control area that is adjacent to the PJM region, if the electricity is delivered into the PJM region; or</text> </level> <level label="3"> <text>on the outer continental shelf of the Atlantic Ocean in an area that:</text> <level label="i"> <text>the United States Department of the Interior designates for leasing after coordination and consultation with the State in accordance with § 388(a) of the Energy Policy Act of 2005; and</text> </level> <level label="ii"> <text>is between 10 and 80 miles off the coast of the State.</text> </level> </level> </level> <level label="n"> <text>“Renewable energy portfolio standard” or “standard” means the percentage of electricity sales at retail in the State that is to be derived from Tier 1 renewable sources and Tier 2 renewable sources in accordance with § 7–703(b) of this subtitle.</text> </level> <level label="o"> <text>“Renewable on–site generator” means a person who generates electricity on site from a Tier 1 renewable source or a Tier 2 renewable source for the person’s own use.</text> </level> <level label="p"> <text>“Round 1 offshore wind project” means a qualified offshore wind project that:</text> <level label="1"> <text>is between 10 and 30 miles off the coast of the State; and</text> </level> <level label="2"> <text>the Commission approved under § 7–704.1 of this subtitle before July 1, 2017.</text> </level> </level> <level label="p–1"> <text>“Round 2 offshore wind project” means a qualified offshore wind project that:</text> <level label="1"> <text>is not less than 10 miles off the coast of the State; and</text> </level> <level label="2"> <text>the Commission approves under § 7–704.1 of this subtitle on or after July 1, 2017.</text> </level> </level> <level label="q"> <level label="1"> <text>“Solar water heating system” means a system that:</text> <level label="i"> <text>consists of glazed liquid–type flat–plate or tubular solar collectors or concentrating solar thermal collectors as defined and certified to the OG–100 standard of the Solar Ratings and Certification Corporation;</text> </level> <level label="ii"> <text>generates energy using solar radiation for the purpose of heating water; and</text> </level> <level label="iii"> <text>does not feed electricity back to the electric grid.</text> </level> </level> <level label="2"> <text>“Solar water heating system” does not include a system that generates energy using solar radiation for the sole purpose of heating a hot tub or swimming pool.</text> </level> </level> <level label="r"> <text>“Thermal biomass system” means a system that:</text> <level label="1"> <text>uses:</text> <level label="i"> <text>primarily animal manure, including poultry litter, and associated bedding to generate thermal energy; and</text> </level> <level label="ii"> <text>food waste or qualifying biomass for the remainder of the feedstock;</text> </level> </level> <level label="2"> <text>is used in the State; and</text> </level> <level label="3"> <text>complies with all applicable State and federal statutes and regulations, as determined by the appropriate regulatory authority.</text> </level> </level> <level label="s"> <text>“Tier 1 renewable source” means one or more of the following types of energy sources:</text> <level label="1"> <text>solar energy, including energy from photovoltaic technologies and solar water heating systems;</text> </level> <level label="2"> <text>wind;</text> </level> <level label="3"> <text>qualifying biomass;</text> </level> <level label="4"> <text>methane from the anaerobic decomposition of organic materials in a landfill or wastewater treatment plant;</text> </level> <level label="5"> <text>geothermal, including energy generated through geothermal exchange from or thermal energy avoided by, groundwater or a shallow ground source;</text> </level> <level label="6"> <text>ocean, including energy from waves, tides, currents, and thermal differences;</text> </level> <level label="7"> <text>a fuel cell that produces electricity from a Tier 1 renewable source under item (3) or (4) of this subsection;</text> </level> <level label="8"> <text>a small hydroelectric power plant of less than 30 megawatts in capacity that is licensed or exempt from licensing by the Federal Energy Regulatory Commission;</text> </level> <level label="9"> <text>poultry litter–to–energy;</text> </level> <level label="10"> <text>thermal energy from a thermal biomass system; and</text> </level> <level label="11"> <text>raw or treated wastewater used as a heat source or sink for a heating or cooling system.</text> </level> </level> <level label="t"> <text>“Tier 2 renewable source” means hydroelectric power other than pump storage generation.</text> </level> </section> <section article="gpu" article_name="Public Utilities" number="7-702" title_number="7" title_name="Gas, Electric, and Water Companies" subtitle_number="7" subtitle_name="Renewable Energy Portfolio Standard"> <level label="a"> <text>It is the intent of the General Assembly to:</text> <level label="1"> <text>recognize the economic, environmental, fuel diversity, and security benefits of renewable energy resources;</text> </level> <level label="2"> <text>reduce greenhouse gas emissions and eliminate carbon–fueled generation from the State’s electric grid by using these resources;</text> </level> <level label="3"> <text>establish a market for electricity from these resources in Maryland; and</text> </level> <level label="4"> <text>lower the cost to consumers of electricity produced from these resources.</text> </level> </level> <level label="b"> <text>The General Assembly finds that:</text> <level label="1"> <text>the benefits of electricity from renewable energy resources, including long–term decreased emissions, a healthier environment, increased energy security, and decreased reliance on and vulnerability from imported energy sources, accrue to the public at large;</text> </level> <level label="2"> <text>electricity suppliers and consumers share an obligation to develop a minimum level of these resources in the electricity supply portfolio of the State; and</text> </level> <level label="3"> <text>the State needs to increase its reliance on renewable energy in order to:</text> <level label="i"> <text>reduce greenhouse gas emissions and meet the State’s greenhouse gas emissions reduction goals under § 2–1205 of the Environment Article; and</text> </level> <level label="ii"> <text>provide opportunities for small, minority, women–owned, and veteran–owned businesses to participate in and develop a highly skilled workforce for clean energy industries in the State.</text> </level> </level> </level> </section> <section article="gpu" article_name="Public Utilities" number="7-703" title_number="7" title_name="Gas, Electric, and Water Companies" subtitle_number="7" subtitle_name="Renewable Energy Portfolio Standard"> <level label="a"> <level label="1"> <level label="i"> <text>The Commission shall implement a renewable energy portfolio standard that, except as provided under paragraphs (2) and (3) of this subsection, applies to all retail electricity sales in the State by electricity suppliers.</text> </level> <level label="ii"> <text>If the standard becomes applicable to electricity sold to a customer after the start of a calendar year, the standard does not apply to electricity sold to the customer during that portion of the year before the standard became applicable.</text> </level> </level> <level label="2"> <text>A renewable energy portfolio standard may not apply to electricity sales at retail by any electricity supplier:</text> <level label="i"> <text>in excess of 300,000,000 kilowatt–hours of industrial process load to a single customer in a year;</text> </level> <level label="ii"> <text>to residential customers in a region of the State in which electricity prices for residential customers are subject to a freeze or cap contained in a settlement agreement entered into under § 7–505 of this title until the freeze or cap has expired; or</text> </level> <level label="iii"> <text>to a customer served by an electric cooperative under an electricity supplier purchase agreement that existed on October 1, 2004, until the expiration of the agreement, as the agreement may be renewed or amended.</text> </level> </level> <level label="3"> <text>The portion of a renewable energy portfolio standard that represents offshore wind energy:</text> <level label="i"> <text>applies only to the distribution sales of electric companies; and</text> </level> <level label="ii"> <text>may not apply to distribution sales by any electric company in excess of:</text> <level label="1"> <text>75,000,000 kilowatt–hours of industrial process load to a single customer in a year; and</text> </level> <level label="2"> <text>3,000 kilowatt–hours of electricity in a month to a customer who is an owner of agricultural land and files an Internal Revenue Service form 1040, schedule F.</text> </level> </level> </level> </level> <level label="b"> <text>Except as provided in subsections (e) and (f) of this section, the renewable energy portfolio standard shall be as follows:</text> <level label="1"> <text>in 2006, 1% from Tier 1 renewable sources and 2.5% from Tier 2 renewable sources;</text> </level> <level label="2"> <text>in 2007, 1% from Tier 1 renewable sources and 2.5% from Tier 2 renewable sources;</text> </level> <level label="3"> <text>in 2008, 2.005% from Tier 1 renewable sources, including at least 0.005% derived from solar energy, and 2.5% from Tier 2 renewable sources;</text> </level> <level label="4"> <text>in 2009, 2.01% from Tier 1 renewable sources, including at least 0.01% derived from solar energy, and 2.5% from Tier 2 renewable sources;</text> </level> <level label="5"> <text>in 2010, 3.025% from Tier 1 renewable sources, including at least 0.025% derived from solar energy, and 2.5% from Tier 2 renewable sources;</text> </level> <level label="6"> <text>in 2011, 5.0% from Tier 1 renewable sources, including at least 0.05% derived from solar energy, and 2.5% from Tier 2 renewable sources;</text> </level> <level label="7"> <text>in 2012, 6.5% from Tier 1 renewable sources, including at least 0.1% derived from solar energy, and 2.5% from Tier 2 renewable sources;</text> </level> <level label="8"> <text>in 2013, 8.2% from Tier 1 renewable sources, including at least 0.25% derived from solar energy, and 2.5% from Tier 2 renewable sources;</text> </level> <level label="9"> <text>in 2014, 10.3% from Tier 1 renewable sources, including at least 0.35% derived from solar energy, and 2.5% from Tier 2 renewable sources;</text> </level> <level label="10"> <text>in 2015, 10.5% from Tier 1 renewable sources, including at least 0.5% derived from solar energy, and 2.5% from Tier 2 renewable sources;</text> </level> <level label="11"> <text>in 2016, 12.7% from Tier 1 renewable sources, including at least 0.7% derived from solar energy, and 2.5% from Tier 2 renewable sources;</text> </level> <level label="12"> <text>in 2017:</text> <level label="i"> <level label="13"> <text>1% from Tier 1 renewable sources, including:</text> </level> <level label="1"> <text>at least 1.15% derived from solar energy; and</text> </level> <level label="2"> <text>an amount set by the Commission under § 7–704.2(a) of this subtitle, not to exceed 2.5%, derived from offshore wind energy; and</text> </level> </level> <level label="ii"> <level label="2"> <text>5% from Tier 2 renewable sources;</text> </level> </level> </level> <level label="13"> <text>in 2018:</text> <level label="i"> <level label="15"> <text>8% from Tier 1 renewable sources, including:</text> </level> <level label="1"> <text>at least 1.5% derived from solar energy; and</text> </level> <level label="2"> <text>an amount set by the Commission under § 7–704.2(a) of this subtitle, not to exceed 2.5%, derived from offshore wind energy; and</text> </level> </level> <level label="ii"> <level label="2"> <text>5% from Tier 2 renewable sources;</text> </level> </level> </level> <level label="14"> <text>in 2019:</text> <level label="i"> <level label="20"> <text>7% from Tier 1 renewable sources, including:</text> </level> <level label="1"> <text>at least 5.5% derived from solar energy; and</text> </level> <level label="2"> <text>an amount set by the Commission under § 7–704.2(a) of this subtitle, not to exceed 2.5%, derived from offshore wind energy; and</text> </level> </level> <level label="ii"> <level label="2"> <text>5% from Tier 2 renewable sources;</text> </level> </level> </level> <level label="15"> <text>in 2020:</text> <level label="i"> <text>28% from Tier 1 renewable sources, including:</text> <level label="1"> <text>at least 6% derived from solar energy; and</text> </level> <level label="2"> <text>an amount set by the Commission under § 7–704.2(a) of this subtitle, not to exceed 2.5%, derived from offshore wind energy; and</text> </level> </level> <level label="ii"> <level label="2"> <text>5% from Tier 2 renewable sources;</text> </level> </level> </level> <level label="16"> <text>in 2021:</text> <level label="i"> <level label="30"> <text>8% from Tier 1 renewable sources, including:</text> </level> <level label="1"> <text>at least 7.5% derived from solar energy; and</text> </level> <level label="2"> <text>an amount set by the Commission under § 7–704.2(a) of this subtitle derived from offshore wind energy; and</text> </level> </level> <level label="ii"> <level label="2"> <text>5% from Tier 2 renewable sources;</text> </level> </level> </level> <level label="17"> <text>in 2022:</text> <level label="i"> <level label="30"> <text>1% from Tier 1 renewable sources, including:</text> </level> <level label="1"> <text>at least 5.5% derived from solar energy; and</text> </level> <level label="2"> <text>an amount set by the Commission under § 7–704.2(a) of this subtitle derived from offshore wind energy; and</text> </level> </level> <level label="ii"> <level label="2"> <text>5% from Tier 2 renewable sources;</text> </level> </level> </level> <level label="18"> <text>in 2023:</text> <level label="i"> <level label="31"> <text>9% from Tier 1 renewable sources, including:</text> </level> <level label="1"> <text>at least 6% derived from solar energy;</text> </level> <level label="2"> <text>an amount set by the Commission under § 7–704.2(a) of this subtitle derived from offshore wind energy; and</text> </level> <level label="3"> <text>at least 0.05% derived from post–2022 geothermal systems; and</text> </level> </level> <level label="ii"> <level label="2"> <text>5% from Tier 2 renewable sources;</text> </level> </level> </level> <level label="19"> <text>in 2024:</text> <level label="i"> <level label="33"> <text>7% from Tier 1 renewable sources, including:</text> </level> <level label="1"> <text>at least 6.5% derived from solar energy;</text> </level> <level label="2"> <text>an amount set by the Commission under § 7–704.2(a) of this subtitle derived from offshore wind energy; and</text> </level> <level label="3"> <text>at least 0.15% derived from post–2022 geothermal systems; and</text> </level> </level> <level label="ii"> <level label="2"> <text>5% from Tier 2 renewable sources;</text> </level> </level> </level> <level label="20"> <text>in 2025:</text> <level label="i"> <level label="35"> <text>5% from Tier 1 renewable sources, including:</text> </level> <level label="1"> <text>at least 7% derived from solar energy;</text> </level> <level label="2"> <text>an amount set by the Commission under § 7–704.2(a) of this subtitle, not to exceed 10%, derived from offshore wind energy; and</text> </level> <level label="3"> <text>at least 0.25% derived from post–2022 geothermal systems; and</text> </level> </level> <level label="ii"> <level label="2"> <text>5% from Tier 2 renewable sources;</text> </level> </level> </level> <level label="21"> <text>in 2026:</text> <level label="i"> <text>38% from Tier 1 renewable sources, including:</text> <level label="1"> <text>at least 8% derived from solar energy;</text> </level> <level label="2"> <text>an amount set by the Commission under § 7–704.2(a) of this subtitle derived from offshore wind energy, including at least 400 megawatts of Round 2 offshore wind projects; and</text> </level> <level label="3"> <text>at least 0.5% derived from post–2022 geothermal systems; and</text> </level> </level> <level label="ii"> <level label="2"> <text>5% from Tier 2 renewable sources;</text> </level> </level> </level> <level label="22"> <text>in 2027:</text> <level label="i"> <level label="41"> <text>5% from Tier 1 renewable sources, including:</text> </level> <level label="1"> <text>at least 9.5% derived from solar energy;</text> </level> <level label="2"> <text>an amount set by the Commission under § 7–704.2(a) of this subtitle derived from offshore wind energy, including at least 400 megawatts of Round 2 offshore wind projects; and</text> </level> <level label="3"> <text>at least 0.75% derived from post–2022 geothermal systems; and</text> </level> </level> <level label="ii"> <level label="2"> <text>5% from Tier 2 renewable sources;</text> </level> </level> </level> <level label="23"> <text>in 2028:</text> <level label="i"> <text>43% from Tier 1 renewable sources, including:</text> <level label="1"> <text>at least 11% derived from solar energy;</text> </level> <level label="2"> <text>an amount set by the Commission under § 7–704.2(a) of this subtitle derived from offshore wind energy, including at least 800 megawatts of Round 2 offshore wind projects; and</text> </level> <level label="3"> <text>at least 1% derived from post–2022 geothermal systems; and</text> </level> </level> <level label="ii"> <level label="2"> <text>5% from Tier 2 renewable sources;</text> </level> </level> </level> <level label="24"> <text>in 2029:</text> <level label="i"> <level label="49"> <text>5% from Tier 1 renewable sources, including:</text> </level> <level label="1"> <text>at least 12.5% derived from solar energy;</text> </level> <level label="2"> <text>an amount set by the Commission under § 7–704.2(a) of this subtitle derived from offshore wind energy, including at least 800 megawatts of Round 2 offshore wind projects; and</text> </level> <level label="3"> <text>at least 1% derived from post–2022 geothermal systems; and</text> </level> </level> <level label="ii"> <level label="2"> <text>5% from Tier 2 renewable sources; and</text> </level> </level> </level> <level label="25"> <text>in 2030 and later:</text> <level label="i"> <text>50% from Tier 1 renewable sources, including:</text> <level label="1"> <text>at least 14.5% derived from solar energy;</text> </level> <level label="2"> <text>an amount set by the Commission under § 7–704.2(a) of this subtitle derived from offshore wind energy, including at least 1,200 megawatts of Round 2 offshore wind projects; and</text> </level> <level label="3"> <text>at least 1% derived from post–2022 geothermal systems; and</text> </level> </level> <level label="ii"> <level label="2"> <text>5% from Tier 2 renewable sources.</text> </level> </level> </level> </level> <level label="c"> <text>Before calculating the number of credits required to meet the percentages established under subsection (b) of this section, an electricity supplier shall exclude from its total retail electricity sales all retail electricity sales described in subsection (a)(2) and (3) of this section.</text> </level> <level label="d"> <level label="1"> <text>Subject to subsections (a) and (c) of this section, an electricity supplier shall meet the renewable energy portfolio standard for all Tier 1 and Tier 2 renewable sources except offshore wind by accumulating the equivalent amount of renewable energy credits that equal the percentages required under this section.</text> </level> <level label="2"> <text>An electric company shall meet the renewable energy portfolio standard for offshore wind in accordance with § 7–704.2 of this subtitle.</text> </level> </level> <level label="e"> <level label="1"> <text>The required percentage of an electric cooperative’s renewable energy portfolio standard derived from solar energy shall be 2.5% in 2020 and later.</text> </level> <level label="2"> <text>The required percentage of a municipal electric utility’s renewable energy portfolio standard shall be:</text> <level label="i"> <text>in 2021:</text> <level label="1"> <level label="20"> <text>4% from Tier 1 renewable sources, including:</text> </level> </level> <level label="A"> <text>at least 1.95% derived from solar energy; and</text> </level> <level label="B"> <text>an amount set by the Commission under § 7–704.2(a) of this subtitle, not to exceed 2.5%, derived from offshore wind energy; and</text> </level> <level label="2"> <level label="2"> <text>5% from Tier 2 renewable sources; and</text> </level> </level> </level> <level label="ii"> <text>in 2022 and later, 20.4% from Tier 1 renewable sources, including:</text> <level label="1"> <text>at least 1.95% derived from solar energy; and</text> </level> <level label="2"> <text>an amount set by the Commission under § 7–704.2(a) of this subtitle, not to exceed 2.5%, derived from offshore wind energy.</text> </level> </level> </level> </level> <level label="f"> <level label="1"> <level label="i"> <text>In this subsection the following words have the meanings indicated.</text> </level> <level label="ii"> <text>“Area median income” has the meaning stated in § 4–1801 of the Housing and Community Development Article.</text> </level> <level label="iii"> <text>“Low or moderate income housing” means housing that is affordable for a household with an aggregate annual income that is below 120% of the area median income.</text> </level> </level> <level label="2"> <text>At least 25% of the required percentage of the renewable energy portfolio for each year as set forth in subsection (b) of this section derived from post–2022 geothermal systems shall be derived from systems that were installed:</text> <level label="i"> <text>at single or multifamily housing units that qualified as low or moderate income housing on the date the system was installed on the property; or</text> </level> <level label="ii"> <text>at institutions that primarily serve low and moderate income individuals and families, including:</text> <level label="1"> <text>schools with a majority of students who are eligible for free and reduced price meals;</text> </level> <level label="2"> <text>hospitals with a majority of patients eligible for financial assistance or who are enrolled in Medicaid; and</text> </level> <level label="3"> <text>other institutions that serve individuals and families where the majority of those served are eligible based on income for federal or State safety net programs.</text> </level> </level> </level> </level> </section> <section article="gpu" article_name="Public Utilities" number="7-704" title_number="7" title_name="Gas, Electric, and Water Companies" subtitle_number="7" subtitle_name="Renewable Energy Portfolio Standard"> <level label="a"> <level label="1"> <text>Energy from a Tier 1 renewable source:</text> <level label="i"> <text>is eligible for inclusion in meeting the renewable energy portfolio standard regardless of when the generating system or facility was placed in service; and</text> </level> <level label="ii"> <text>may be applied to the percentage requirements of the standard for either Tier 1 renewable sources or Tier 2 renewable sources.</text> </level> </level> <level label="2"> <level label="i"> <text>Energy from a Tier 1 renewable source under § 7–701(s)(1), (5), or (9) of this subtitle is eligible for inclusion in meeting the renewable energy portfolio standard only if the source is connected with the electric distribution grid serving Maryland.</text> </level> <level label="ii"> <text>Energy from a Tier 1 renewable source under § 7–701(s)(11) of this subtitle is eligible for inclusion in meeting the renewable energy portfolio standard only if the source:</text> <level label="1"> <text>is connected with the electric distribution grid serving Maryland; or</text> </level> <level label="2"> <text>processes wastewater from Maryland residents.</text> </level> </level> <level label="iii"> <text>If the owner of a solar generating system in this State chooses to sell solar renewable energy credits from that system, the owner must first offer the credits for sale to an electricity supplier or electric company that shall apply them toward compliance with the renewable energy portfolio standard under § 7–703 of this subtitle.</text> </level> </level> <level label="3"> <text>Energy from a Tier 1 renewable source under § 7–701(s)(8) of this subtitle is eligible for inclusion in meeting the renewable energy portfolio standard if it is generated at a dam that existed as of January 1, 2004, even if a system or facility that is capable of generating electricity did not exist on that date.</text> </level> <level label="4"> <text>Energy from a Tier 2 renewable source under § 7–701(t) of this subtitle is eligible for inclusion in meeting the renewable energy portfolio standard if it is generated at a system or facility that existed and was operational as of January 1, 2004, even if the facility or system was not capable of generating electricity on that date.</text> </level> </level> <level label="b"> <text>On or after January 1, 2004, an electricity supplier may:</text> <level label="1"> <text>receive renewable energy credits; and</text> </level> <level label="2"> <text>accumulate renewable energy credits under this subtitle.</text> </level> </level> <level label="c"> <level label="1"> <text>This subsection applies only to a generating facility that is placed in service on or after January 1, 2004.</text> </level> <level label="2"> <level label="i"> <text>On or before December 31, 2005, an electricity supplier shall receive 120% credit toward meeting the renewable energy portfolio standard for energy derived from wind.</text> </level> <level label="ii"> <text>After December 31, 2005, and on or before December 31, 2008, an electricity supplier shall receive 110% credit toward meeting the renewable energy portfolio standard for energy derived from wind.</text> </level> </level> <level label="3"> <text>On or before December 31, 2008, an electricity supplier shall receive 110% credit toward meeting the renewable energy portfolio standard for energy derived from methane under § 7–701(r)(4) of this subtitle.</text> </level> </level> <level label="d"> <text>An electricity supplier shall receive credit toward meeting the renewable energy portfolio standard for electricity derived from the biomass fraction of biomass co–fired with other fuels.</text> </level> <level label="e"> <level label="1"> <text>In this subsection, “customer” means:</text> <level label="i"> <text>an industrial electric customer that is not on standard offer service; or</text> </level> <level label="ii"> <text>a renewable on–site generator.</text> </level> </level> <level label="2"> <text>This subsection does not apply to offshore wind renewable energy credits.</text> </level> <level label="3"> <level label="i"> <text>A customer may independently acquire renewable energy credits to satisfy the standards applicable to the customer’s load, including credits created by a renewable on–site generator.</text> </level> <level label="ii"> <text>Credits that a customer transfers to its electricity supplier to meet the standard and that the electricity supplier relies on in submitting its compliance report may not be resold or retransferred by the customer or by the electricity supplier.</text> </level> </level> <level label="4"> <text>A renewable on–site generator may retain or transfer at its sole option any credits created by the renewable on–site generator, including credits for the portion of its on–site generation from a Tier 1 renewable source or a Tier 2 renewable source that displaces the purchase of electricity by the renewable on–site generator from the grid.</text> </level> <level label="5"> <text>A customer that satisfies the standard applicable to the customer’s load under this subsection may not be required to contribute to a compliance fee recovered under § 7–706 of this subtitle.</text> </level> <level label="6"> <text>The Commission shall adopt regulations governing the application and transfer of credits under this subsection consistent with federal law.</text> </level> </level> <level label="f"> <level label="1"> <text>In order to create a renewable energy credit, a Tier 1 renewable source or Tier 2 renewable source must substantially comply with all applicable environmental and administrative requirements, including air quality, water quality, solid waste, and right–to–know provisions, permit conditions, and administrative orders.</text> </level> <level label="2"> <level label="i"> <text>This paragraph applies to Tier 1 renewable sources that incinerate solid waste.</text> </level> <level label="ii"> <text>At least 80% of the solid waste incinerated at a Tier 1 renewable source facility shall be collected from:</text> <level label="1"> <text>for areas in Maryland, jurisdictions that achieve the recycling rates required under § 9–505 of the Environment Article; and</text> </level> <level label="2"> <text>for other states, jurisdictions for which the electricity supplier demonstrates recycling substantially comparable to that required under § 9–505 of the Environment Article, in accordance with regulations of the Commission.</text> </level> </level> <level label="iii"> <text>An electricity supplier may report credits received under this paragraph based on compliance by the facility with the percentage requirement of subparagraph (ii) of this paragraph during the year immediately preceding the year in which the electricity supplier receives the credit to apply to the standard.</text> </level> </level> </level> <level label="g"> <level label="1"> <text>Energy from a solar water heating system is eligible for inclusion in meeting the renewable energy portfolio standard.</text> </level> <level label="2"> <text>A person that owns and operates a solar water heating system shall receive a renewable energy credit equal to the amount of energy, converted from BTUs to kilowatt–hours, that is generated by the system that is used by the person for water heating.</text> </level> <level label="3"> <text>The total amount of energy generated and consumed for a nonresidential or commercial solar water heating system shall be measured by an on–site meter that meets the required performance standards of the International Organization of Legal Metrology.</text> </level> <level label="4"> <text>The total amount of energy generated and consumed by a residential solar water heating system shall be:</text> <level label="i"> <text>measured by a meter that meets the required standards of the International Organization of Legal Metrology; or</text> </level> <level label="ii"> <level label="1"> <text>measured by the Solar Ratings and Certification Corporation’s OG–300 thermal performance rating for the system or an equivalent certification that the Commission approves in consultation with the Administration; and</text> </level> <level label="2"> <text>certified to the OG–300 standard of the Solar Ratings and Certification Corporation or an equivalent certification body that the Commission approves in consultation with the Administration.</text> </level> </level> </level> <level label="5"> <text>A residential solar water heating system shall be installed in accordance with applicable State and local plumbing codes.</text> </level> <level label="6"> <text>A residential solar water heating system may not produce more than five solar renewable energy credits in any 1 year.</text> </level> </level> <level label="h"> <level label="1"> <text>Except as provided in paragraph (6) of this subsection, energy from a geothermal heating and cooling system, including energy from a legacy geothermal system and energy from a post–2022 geothermal system, is eligible for inclusion in meeting the renewable energy portfolio standard.</text> </level> <level label="2"> <text>A person shall receive a renewable energy credit equal to the amount of energy, converted from BTUs to kilowatt–hours, that is generated by a geothermal heating and cooling system for space heating and cooling or water heating if the person:</text> <level label="i"> <text>owns and operates the system;</text> </level> <level label="ii"> <text>leases and operates the system; or</text> </level> <level label="iii"> <text>contracts with a third party who owns and operates the portion of the system that consists of:</text> <level label="1"> <text>a closed loop or a series of closed loop systems in which fluid is permanently confined within a pipe or tubing and does not come in contact with the outside environment; or</text> </level> <level label="2"> <text>an open loop system in which ground or surface water is circulated in an environmentally safe manner directly into the facility and returned to the same aquifer or surface water source.</text> </level> </level> </level> <level label="3"> <text>To determine the energy savings of a geothermal heating and cooling system for a residence, the Commission shall:</text> <level label="i"> <text>identify available energy consumption calculators developed by the geothermal heating and cooling industry;</text> </level> <level label="ii"> <text>collect the following data provided in the renewable energy credit application that:</text> <level label="1"> <text>describes the name of the applicant and the address at which the geothermal heating and cooling system is installed; and</text> </level> <level label="2"> <text>provides the annual BTU energy savings attributable to home heating, cooling, and water heating; and</text> </level> </level> <level label="iii"> <text>in determining the annual amount of renewable energy credits awarded for the geothermal heating and cooling system, convert the annual BTUs into annual megawatt–hours.</text> </level> </level> <level label="4"> <text>To determine the energy savings of a nonresidential geothermal heating and cooling system, the Commission shall:</text> <level label="i"> <text>use the geothermal heating and cooling engineering technical system designs provided with the renewable energy credit application; and</text> </level> <level label="ii"> <text>in determining the annual amount of renewable energy credits awarded for the geothermal heating and cooling system, convert the annual BTUs into annual megawatt–hours.</text> </level> </level> <level label="5"> <text>A geothermal heating and cooling system shall be installed in accordance with applicable State well construction and local building code standards.</text> </level> <level label="6"> <level label="i"> <text>A post–2022 geothermal system with a 360,000 BTU capacity is eligible for inclusion in meeting the renewable energy portfolio standard only if the company installing the system provides for its employees:</text> <level label="1"> <text>family–sustaining wages;</text> </level> <level label="2"> <text>employer–provided health care with affordable deductibles and co–pays;</text> </level> <level label="3"> <text>career advancement training, as provided in subparagraph (ii) of this paragraph;</text> </level> <level label="4"> <text>fair scheduling;</text> </level> <level label="5"> <text>employer–paid workers’ compensation and unemployment insurance;</text> </level> <level label="6"> <text>a retirement plan;</text> </level> <level label="7"> <text>paid time off; and</text> </level> <level label="8"> <text>the right to bargain collectively for wages and benefits.</text> </level> </level> <level label="ii"> <text>As part of the career advancement training the installation company provides, the company shall ensure that a minimum of 10% of the employees working on the installation are enrolled in an apprenticeship program approved by and registered with the State or the federal government.</text> </level> <level label="iii"> <text>Compliance with this paragraph shall be regulated and enforced by the Maryland Department of Labor.</text> </level> </level> </level> <level label="i"> <level label="1"> <text>Energy from a thermal biomass system is eligible for inclusion in meeting the renewable energy portfolio standard.</text> </level> <level label="2"> <level label="i"> <text>A person that owns and operates a thermal biomass system that uses anaerobic digestion is eligible to receive a renewable energy credit.</text> </level> <level label="ii"> <text>A person that owns and operates a thermal biomass system that uses a thermochemical process is eligible to receive a renewable energy credit if the person demonstrates to the Maryland Department of the Environment that the operation of the thermal biomass system:</text> <level label="1"> <text>is not significantly contributing to local or regional air quality impairments; and</text> </level> <level label="2"> <text>will substantially decrease emissions of oxides of nitrogen beyond that achieved by a direct burn combustion unit through the use of precombustion techniques, combustion techniques, or postcombustion techniques.</text> </level> </level> </level> <level label="3"> <text>A person that is eligible to receive a renewable energy credit under paragraph (2) of this subsection shall receive a renewable energy credit equal to the amount of energy, converted from BTUs to kilowatt–hours, that is generated by the thermal biomass system and used on site.</text> </level> <level label="4"> <text>The total amount of energy generated and consumed for a residential, nonresidential, or commercial thermal biomass system shall be measured by an on–site meter that meets the required performance standards established by the Commission.</text> </level> <level label="5"> <text>The Commission shall adopt regulations for the metering, verification, and reporting of the output of thermal biomass systems.</text> </level> </level> <level label="j"> <level label="1"> <text>Energy from a wastewater heating or cooling system is eligible for inclusion in meeting the renewable energy portfolio standard.</text> </level> <level label="2"> <text>A person shall receive a renewable energy credit equal to the amount of energy, converted from BTUs to kilowatt–hours, that is generated by a wastewater heating or cooling system for space heating or cooling, industrial heating or cooling, or another useful thermal purpose, if the person:</text> <level label="i"> <text>owns and operates the system;</text> </level> <level label="ii"> <text>leases and operates the system; or</text> </level> <level label="iii"> <text>contracts with a third party who owns and operates the system.</text> </level> </level> <level label="3"> <text>To determine the energy savings of a wastewater heating or cooling system, the Commission shall:</text> <level label="i"> <text>use the wastewater heating or cooling engineering technical system designs provided with the renewable energy credit application; and</text> </level> <level label="ii"> <text>in determining the annual amount of renewable energy credits awarded for the wastewater heating or cooling system, convert the annual BTUs into annual megawatt–hours.</text> </level> </level> <level label="4"> <text>The Commission shall adopt regulations for the metering, verification, and reporting of the output of wastewater heating or cooling systems.</text> </level> </level> </section> <section article="gpu" article_name="Public Utilities" number="7-704.1" title_number="7" title_name="Gas, Electric, and Water Companies" subtitle_number="7" subtitle_name="Renewable Energy Portfolio Standard"> <level label="a"> <level label="1"> <text>The General Assembly finds and declares that:</text> <level label="i"> <text>the State has a goal of reaching 8,500 megawatts of offshore wind energy capacity by 2031, including Round 1 offshore wind projects, Round 2 offshore wind projects, and any other procurement efforts;</text> </level> <level label="ii"> <text>the General Assembly anticipates the issuance of sufficient wind energy leases in the central Atlantic region to satisfy the goal stated in item (i) of this paragraph;</text> </level> <level label="iii"> <text>the development of offshore wind energy is important to the economic well–being of the State and the nation;</text> </level> <level label="iv"> <text>offshore wind can provide clean energy at the scale needed to help achieve the State’s economy–wide net–zero greenhouse gas emissions reduction targets established in Chapter 38 of the Acts of the General Assembly of 2022;</text> </level> <level label="v"> <text>it is in the public interest of the State to facilitate the construction of at least 1,200 megawatts of Round 2 offshore wind projects in order to:</text> <level label="1"> <text>position the State to take advantage of the economic development benefits of the emerging offshore wind industry;</text> </level> <level label="2"> <text>promote the development of renewable energy sources that increase the nation’s independence from foreign sources of fossil fuels;</text> </level> <level label="3"> <text>reduce the adverse environmental and health impacts of traditional fossil fuel energy sources; and</text> </level> <level label="4"> <text>provide a long–term hedge against volatile prices of fossil fuels; and</text> </level> </level> <level label="vi"> <text>it is in the public interest of the State to maximize the opportunities for obtaining and using federal funds for offshore wind and related transmission projects through the inclusion of specified labor standards and goals, domestic content requirements, and other provisions to align State law with provisions of the federal Infrastructure Investment and Jobs Act of 2021 and the federal Inflation Reduction Act of 2022.</text> </level> </level> <level label="2"> <text>After the effective date of Commission regulations implementing this section and § 7–704.2 of this subtitle, and before June 30, 2017, a person may submit an application to the Commission for approval of a proposed Round 1 offshore wind project.</text> </level> <level label="3"> <level label="i"> <text>On receipt of the application for approval of a Round 1 offshore wind project, the Commission shall:</text> <level label="1"> <text>open an application period when other interested persons may submit applications for approval of Round 1 offshore wind projects; and</text> </level> <level label="2"> <text>provide notice that the Commission is accepting applications for approval of Round 1 offshore wind projects.</text> </level> </level> <level label="ii"> <text>The Commission shall set the closing date for the application period to be no sooner than 90 days after the notice provided under subparagraph (i) of this paragraph.</text> </level> </level> <level label="4"> <text>The Commission shall provide additional application periods beginning, respectively:</text> <level label="i"> <text>January 1, 2020, for consideration of Round 2 offshore wind projects to begin creating ORECs not later than 2026;</text> </level> <level label="ii"> <text>January 1, 2021, for consideration of Round 2 offshore wind projects to begin creating ORECs not later than 2028; and</text> </level> <level label="iii"> <text>January 1, 2022, for consideration of Round 2 offshore wind projects to begin creating ORECs not later than 2030.</text> </level> </level> <level label="5"> <text>In its discretion, the Commission may provide for additional application periods that meet the requirements of this section.</text> </level> </level> <level label="b"> <text>Unless extended by mutual consent of the parties, the Commission shall approve, conditionally approve, or deny an application within 180 days after the close of the application period.</text> </level> <level label="c"> <text>An application shall include:</text> <level label="1"> <text>a detailed description and financial analysis of the offshore wind project;</text> </level> <level label="2"> <text>the proposed method of financing the offshore wind project, including documentation demonstrating that the applicant has applied for all current eligible State and federal grants, rebates, tax credits, loan guarantees, or other programs available to offset the cost of the project or provide tax advantages;</text> </level> <level label="3"> <text>a cost–benefit analysis that shall include at a minimum:</text> <level label="i"> <text>a detailed input–output analysis of the impact of the offshore wind project on income, employment, wages, and taxes in the State with particular emphasis on in–State manufacturing employment;</text> </level> <level label="ii"> <text>detailed information concerning assumed employment impacts in the State, including the expected duration of employment opportunities, the salary of each position, and other supporting evidence of employment impacts;</text> </level> <level label="iii"> <text>an analysis of the anticipated environmental benefits, health benefits, and environmental impacts of the offshore wind project to the citizens of the State;</text> </level> <level label="iv"> <text>an analysis of any impact on residential, commercial, and industrial ratepayers over the life of the offshore wind project;</text> </level> <level label="v"> <text>an analysis of any long–term effect on energy and capacity markets as a result of the proposed offshore wind project;</text> </level> <level label="vi"> <text>an analysis of any impact on businesses in the State; and</text> </level> <level label="vii"> <text>other benefits, such as increased in–State construction, operations, maintenance, and equipment purchase;</text> </level> </level> <level label="4"> <text>a proposed OREC pricing schedule for the offshore wind project that shall specify a price for the generation attributes, including the energy, capacity, ancillary services, and environmental attributes;</text> </level> <level label="5"> <text>a decommissioning plan for the project, including provisions for decommissioning as required by the United States Department of the Interior;</text> </level> <level label="6"> <text>a commitment to:</text> <level label="i"> <text>abide by the requirements set forth in subsection (f) of this section; and</text> </level> <level label="ii"> <text>deposit at least $6,000,000, in the manner required under subsection (h) of this section, into the Maryland Offshore Wind Business Development Fund established under § 9–20C–03 of the State Government Article;</text> </level> </level> <level label="7"> <text>a description of the applicant’s plan for engaging small businesses, as defined in § 14–501 of the State Finance and Procurement Article;</text> </level> <level label="8"> <text>a commitment that the applicant will:</text> <level label="i"> <text>use best efforts to apply for all eligible State and federal grants, rebates, tax credits, loan guarantees, or other similar benefits as those benefits become available; and</text> </level> <level label="ii"> <text>subject to subsection (k) of this section, pass along to ratepayers, without the need for any subsequent Commission approval, 80% of the value of any State or federal grants, rebates, tax credits, loan guarantees, or other similar benefits received by the project and not included in the application; and</text> </level> </level> <level label="9"> <text>any other information the Commission requires.</text> </level> </level> <level label="d"> <text>The following are subject to a community benefit agreement under subsection (f) of this section:</text> <level label="1"> <text>an application for any new qualified offshore wind project; and</text> </level> <level label="2"> <text>a proposal selected by the Commission under § 7–704.3 of this subtitle for an offshore wind transmission project.</text> </level> </level> <level label="e"> <level label="1"> <text>The Commission shall use the following criteria to evaluate and compare proposed offshore wind projects submitted during an application period:</text> <level label="i"> <text>lowest cost impact on ratepayers of the price set under a proposed OREC pricing schedule;</text> </level> <level label="ii"> <text>potential reductions in transmission congestion prices within the State;</text> </level> <level label="iii"> <text>potential changes in capacity prices within the State;</text> </level> <level label="iv"> <text>potential reductions in locational marginal pricing;</text> </level> <level label="v"> <text>potential long–term changes in capacity prices within the State from the offshore wind project as it compares to conventional energy sources;</text> </level> <level label="vi"> <text>the extent to which the cost–benefit analysis submitted under subsection (c)(3) of this section demonstrates positive net economic, environmental, and health benefits to the State;</text> </level> <level label="vii"> <text>the extent to which an applicant’s plan for engaging small businesses meets the goals specified in Title 14, Subtitle 5 of the State Finance and Procurement Article;</text> </level> <level label="viii"> <text>the extent to which an applicant’s plan provides for the use of skilled labor, particularly with regard to the construction and manufacturing components of the project, through outreach, hiring, or referral systems that are affiliated with registered apprenticeship programs under Title 11, Subtitle 4 of the Labor and Employment Article;</text> </level> <level label="ix"> <text>the extent to which an applicant’s plan provides for the use of an agreement designed to ensure the use of skilled labor and to promote the prompt, efficient, and safe completion of the project, particularly with regard to the construction, manufacturing, and maintenance of the project;</text> </level> <level label="x"> <text>the extent to which an applicant’s plan provides for compensation to its employees and subcontractors consistent with wages outlined under §§ 17–201 through 17–228 of the State Finance and Procurement Article;</text> </level> <level label="xi"> <text>siting and project feasibility;</text> </level> <level label="xii"> <text>the extent to which the proposed offshore wind project would require transmission or distribution infrastructure improvements in the State;</text> </level> <level label="xiii"> <text>estimated ability to assist in meeting the renewable energy portfolio standard under § 7–703 of this subtitle; and</text> </level> <level label="xiv"> <text>any other criteria that the Commission determines to be appropriate.</text> </level> </level> <level label="2"> <text>In evaluating and comparing an applicant’s proposed offshore wind project under paragraph (1) of this subsection, the Commission shall contract for the services of independent consultants and experts.</text> </level> <level label="3"> <text>The Commission shall verify that representatives of the United States Department of Defense and the maritime industry have had the opportunity, through the federal leasing process, to express concerns regarding project siting.</text> </level> <level label="4"> <level label="i"> <text>In this paragraph, “minority” means an individual who is a member of any of the groups listed in § 14–301(k)(1)(i) of the State Finance and Procurement Article.</text> </level> <level label="ii"> <text>If an applicant is seeking investors in a proposed offshore wind project, it shall take the following steps before the Commission may approve the proposed project:</text> <level label="1"> <text>make serious, good–faith efforts to solicit and interview a reasonable number of minority investors;</text> </level> <level label="2"> <text>as part of the application, submit a statement to the Commission that lists the names and addresses of all minority investors interviewed and whether or not any of those investors have purchased an equity share in the entity submitting an application;</text> </level> <level label="3"> <text>as a condition to the Commission’s approval of the offshore wind project, sign a memorandum of understanding with the Commission that requires the applicant to again make serious, good–faith efforts to interview minority investors in any future attempts to raise venture capital or attract new investors to the offshore wind project; and</text> </level> <level label="4"> <text>as a condition to the Commission’s approval of the offshore wind project, sign a memorandum of understanding with the Commission that requires the applicant to use best efforts and effective outreach to obtain, as a goal, contractors and subcontractors for the project that are minority business enterprises, to the extent practicable, as supported by a disparity study.</text> </level> </level> <level label="iii"> <text>The Governor’s Office of Small, Minority, and Women Business Affairs, in consultation with the Office of the Attorney General, shall provide assistance to all potential applicants and potential minority investors to satisfy the requirements under subparagraph (ii)1 and 3 of this paragraph.</text> </level> </level> <level label="5"> <text>As a condition of the Commission’s approval of the offshore wind project, the applicant shall sign a memorandum of understanding with the Commission and skilled labor organizations that requires the applicant to follow the portions of the applicant’s plan that relate to the criteria set forth in paragraph (1)(viii) and (ix) of this subsection.</text> </level> </level> <level label="f"> <level label="1"> <level label="i"> <text>In this paragraph, “community benefit agreement” means an agreement applicable to the development of any qualified offshore wind project or offshore wind transmission facility that:</text> <level label="1"> <text>promotes increased opportunities for local businesses and small, minority, women–owned, and veteran–owned businesses in the clean energy industry;</text> </level> <level label="2"> <text>ensures the timely, safe, and efficient completion of the project by:</text> </level> <level label="A"> <text>facilitating a steady supply of highly skilled craft workers who shall be paid not less than the prevailing wage rate determined by the Commissioner of Labor and Industry under Title 17, Subtitle 2 of the State Finance and Procurement Article; and</text> </level> <level label="B"> <text>guaranteeing that the construction work performed in connection with the project will be subject to an agreement that:</text> </level> <level label="I"> <text>is with one or more labor organizations; and</text> <text>II. establishes, in accordance with paragraph (3) of this subsection, the terms and conditions of employment at the construction site of the project or a portion of the project;</text> </level> <level label="3"> <text>promotes safe completion of the project by ensuring that at least 80% of the craft workers on the project have completed an Occupational Safety and Health Administration 10–hour or 30–hour course;</text> </level> <level label="4"> <text>promotes career training opportunities in the manufacturing, maintenance, and construction industries for local residents, veterans, women, and minorities;</text> </level> <level label="5"> <text>provides for best efforts and effective outreach to obtain, as a goal, the use of a workforce including minorities, to the extent practicable;</text> </level> <level label="6"> <text>reflects a 21st–century labor–management approach by developers and suppliers based on cooperation, harmony, and partnership that proactively seeks to ensure that workers can freely choose to both organize and collectively bargain;</text> </level> <level label="7"> <text>provides plans to use domestic iron, steel, and manufactured goods to the greatest extent practicable by disclosing contracted suppliers;</text> </level> <level label="8"> <text>uses locally and domestically manufactured construction materials and components; and</text> </level> <level label="9"> <text>maximizes the use of skilled local labor, particularly with regard to the construction and manufacturing components of the project, using methods including outreach, hiring, or referral methods that are affiliated with registered apprenticeship programs under Title 11, Subtitle 4 of the Labor and Employment Article.</text> </level> </level> <level label="ii"> <text>If the Commission receives reasonable proposals that demonstrate positive net economic, environmental, and health benefits to the State, based on the criteria specified in subsection (c)(3) of this section, and subject to subparagraph (iii) of this paragraph, the Commission shall approve orders to facilitate the financing of qualified offshore wind projects, including at least 1,200 megawatts of Round 2 offshore wind projects.</text> </level> <level label="iii"> <text>The Commission may not approve an applicant’s proposed offshore wind project unless:</text> <level label="1"> <text>for a Round 1 offshore wind project application:</text> </level> <level label="A"> <text>the projected net rate impact for an average residential customer, based on annual consumption of 12,000 kilowatt–hours, combined with the projected net rate impact of other Round 1 offshore wind projects, does not exceed $1.50 per month in 2012 dollars, over the duration of the proposed OREC pricing schedule;</text> </level> <level label="B"> <text>the projected net rate impact for all nonresidential customers considered as a blended average, combined with the projected net rate impact of other Round 1 offshore wind projects, does not exceed 1.5% of nonresidential customers’ total annual electric bills, over the duration of the proposed OREC pricing schedule; and</text> </level> <level label="C"> <text>the price specified in the proposed OREC pricing schedule does not exceed $190 per megawatt–hour in 2012 dollars; and</text> </level> <level label="2"> <text>for a Round 2 offshore wind project application:</text> </level> <level label="A"> <text>the projected incremental net rate impact for an average residential customer, based on annual consumption of 12 megawatt–hours, combined with the projected incremental net rate impact of other Round 2 offshore wind projects, does not exceed 88 cents per month in 2018 dollars, over the duration of the proposed OREC pricing schedule;</text> </level> <level label="B"> <text>the projected incremental net rate impact for all nonresidential customers considered as a blended average, combined with the projected net rate impact of other Round 2 offshore wind projects, does not exceed 0.9% of nonresidential customers’ total annual electric bills during any year of the proposed OREC pricing schedule; and</text> </level> <level label="C"> <text>the project is subject to a community benefit agreement.</text> </level> </level> </level> <level label="2"> <level label="i"> <text>When calculating the net benefits to the State under paragraph (1)(ii) of this subsection, the Commission shall contract for the services of independent consultants and experts.</text> </level> <level label="ii"> <text>When calculating the projected net average rate impacts for Round 1 offshore wind projects under paragraph (1)(iii)1A and B of this subsection and for Round 2 offshore wind projects under paragraph (1)(iii)2A and B of this subsection, the Commission shall apply the same net OREC cost per megawatt–hour to residential and nonresidential customers.</text> </level> </level> <level label="3"> <text>An agreement required under paragraph (1)(i)2B of this subsection shall:</text> <level label="i"> <text>guarantee against strikes, lockouts, and similar disruptions;</text> </level> <level label="ii"> <text>ensure that all work on the project fully conforms to all relevant State and federal laws, rules, and regulations;</text> </level> <level label="iii"> <text>create mutually binding procedures for resolving labor disputes arising during the term of the project;</text> </level> <level label="iv"> <text>set forth other mechanisms for labor–management cooperation on matters of mutual interest and concern, including productivity, quality of work, safety, and health; and</text> </level> <level label="v"> <text>bind all contractors and subcontractors to the terms of the agreement through the inclusion of appropriate provisions in all relevant solicitation and contract documents.</text> </level> </level> </level> <level label="g"> <level label="1"> <text>An order the Commission issues approving a proposed offshore wind project shall:</text> <level label="i"> <text>specify the OREC pricing schedule, which may not authorize an OREC price greater than, for a Round 1 offshore wind project, $190 per megawatt–hour in 2012 dollars;</text> </level> <level label="ii"> <text>specify the duration of the OREC pricing schedule, not to exceed 20 years;</text> </level> <level label="iii"> <text>specify the number of ORECs the offshore wind project may sell each year;</text> </level> <level label="iv"> <text>provide that:</text> <level label="1"> <text>a payment may not be made for an OREC until electricity supply is generated by the offshore wind project; and</text> </level> <level label="2"> <text>ratepayers, purchasers of ORECs, and the State shall be held harmless for any cost overruns associated with the offshore wind project; and</text> </level> </level> <level label="v"> <text>require that any debt instrument issued in connection with a qualified offshore wind project include language specifying that the debt instrument does not establish a debt, obligation, or liability of the State.</text> </level> </level> <level label="2"> <text>An order approving a proposed offshore wind project vests the owner of the qualified offshore wind project with the right to receive payments for ORECs according to the terms in the order.</text> </level> <level label="3"> <text>On or before March 1 each year, the Commission shall report to the Governor and, in accordance with § 2–1257 of the State Government Article, to the Senate Committee on Education, Energy, and the Environment and the House Economic Matters Committee on:</text> <level label="i"> <text>compliance by applicants with the minority business enterprise participation goals under subsection (e)(4) of this section; and</text> </level> <level label="ii"> <text>with respect to the community benefit agreement under subsection (f)(1) of this section:</text> <level label="1"> <text>the availability and use of opportunities for local businesses and small, minority, women–owned, and veteran–owned businesses;</text> </level> <level label="2"> <text>the success of efforts to promote career training opportunities in the manufacturing, maintenance, and construction industries for local residents, veterans, women, and minorities; and</text> </level> <level label="3"> <text>compliance with the minority workforce goal under subsection (f)(1)(i)5 of this section.</text> </level> </level> </level> </level> <level label="h"> <text>For Round 2 offshore wind project applications, the Commission shall approve OREC orders representing a minimum of 400 megawatts of nameplate capacity proposed during each application period unless:</text> <level label="1"> <text>not enough Round 2 offshore wind project applications are submitted to meet the net benefit test under subsection (c)(3) of this section; or</text> </level> <level label="2"> <text>the cumulative net ratepayer impact exceeds the maximums provided in subsection (f)(1)(ii)2 of this section.</text> </level> </level> <level label="i"> <level label="1"> <text>Within 60 days after the Commission approves the application of a proposed offshore wind project, the qualified offshore wind project shall deposit $2,000,000 into the Maryland Offshore Wind Business Development Fund established under § 9–20C–03 of the State Government Article.</text> </level> <level label="2"> <text>Within 1 year after the initial deposit under paragraph (1) of this subsection, the qualified offshore wind project shall deposit an additional $2,000,000 into the Maryland Offshore Wind Business Development Fund.</text> </level> <level label="3"> <text>Within 2 years after the initial deposit under paragraph (1) of this subsection, the qualified offshore wind project shall deposit an additional $2,000,000 into the Maryland Offshore Wind Business Development Fund.</text> </level> </level> <level label="j"> <level label="1"> <text>The findings and evidence relied on by the General Assembly for the continuation of the Minority Business Enterprise Program under Title 14, Subtitle 3 of the State Finance and Procurement Article are incorporated in this subsection.</text> </level> <level label="2"> <text>To the extent practicable and authorized by the United States Constitution, approved applicants for a proposed offshore wind project shall comply with the State’s Minority Business Enterprise Program.</text> </level> <level label="3"> <level label="i"> <text>On or before 6 months after the issuance of an order approving an OREC application, the Office of Small, Minority, and Women Business Affairs, in consultation with the Office of the Attorney General and an approved applicant, shall establish a clear plan for setting reasonable and appropriate minority business enterprise participation goals and procedures for each phase of the qualified offshore wind project.</text> </level> <level label="ii"> <text>To the extent practicable, the goals and procedures specified in subparagraph (i) of this paragraph shall be based on the requirements of Title 14, Subtitle 3 of the State Finance and Procurement Article and the regulations implementing that subtitle.</text> </level> <level label="iii"> <text>Every 6 months following the issuance of an order approving an OREC application, an approved applicant shall submit a report on its progress establishing and implementing minority business enterprise goals and procedures to the Commission.</text> </level> </level> <level label="4"> <text>On and after July 1, 2031, the provisions of this subsection and any regulations adopted in accordance with this subsection shall be of no effect and may not be enforced.</text> </level> </level> <level label="k"> <level label="1"> <text>A developer of a Round 1 offshore wind project or Round 2 offshore wind project approved under this section may apply to the Commission for a full or partial exemption from the requirements in subsection (c)(8)(ii) of this section for any federal Inflation Reduction Act of 2022 grants, rebates, tax credits, or loan guarantees received by the project if at least 15% of the total labor hours of construction, alteration, or repair work for the project, including any construction, alteration, or repair work performed by a contractor or subcontractor, is performed by qualified apprentices consistent with federal law.</text> </level> <level label="2"> <text>A developer seeking an exemption under paragraph (1) of this subsection shall certify that the exemption is required to fulfill the developer’s obligations under an approved OREC order.</text> </level> <level label="3"> <text>The Commission shall:</text> <level label="i"> <text>establish an application process for a developer to apply for an exemption under paragraph (1) of this subsection;</text> </level> <level label="ii"> <text>approve, deny, or request additional information regarding an application submitted under this subsection within 60 days after receipt of the application;</text> </level> <level label="iii"> <text>in evaluating an application submitted under this subsection, take into consideration the potential benefits and impacts of approving the application, including:</text> <level label="1"> <text>the State’s goals for developing offshore wind energy;</text> </level> <level label="2"> <text>workforce and supply chain impacts; and</text> </level> <level label="3"> <text>the risk that price inflation may have on achieving the State’s offshore wind energy goals; and</text> </level> </level> <level label="iv"> <text>keep any proprietary information submitted by an applicant confidential.</text> </level> </level> <level label="4"> <text>If the Commission approves a partial exemption under paragraph (1) of this subsection, the nonexempt value of any federal Inflation Reduction Act of 2022 grants, rebates, tax credits, or loan guarantees received by the project shall be passed along to ratepayers.</text> </level> </level> <level label="l"> <level label="1"> <text>In this subsection, “revised Round 2 offshore wind project” means a Round 2 offshore wind project that has filed an application with the Commission for revised project schedules, sizes, or pricing, including OREC pricing, under this subsection.</text> </level> <level label="2"> <text>This subsection applies to Round 1 offshore wind projects and Round 2 offshore wind projects that:</text> <level label="i"> <text>are to be located in a wind energy area authorized by the Bureau of Ocean Energy Management; and</text> </level> <level label="ii"> <text>possess ORECs, or are subject to a Commission order approving an OREC price schedule, as of June 1, 2024.</text> </level> </level> <level label="3"> <level label="i"> <text>On June 1, 2024, the Commission shall open a revised Round 2 offshore wind project proceeding that is limited to evaluating revised project schedules, sizes, or pricing, including OREC pricing, for a previously approved Round 2 offshore wind project.</text> </level> <level label="ii"> <text>Any previously approved Round 2 offshore wind project may submit a revised plan for the project by filing an application with the Commission.</text> </level> <level label="iii"> <text>An application for a revised Round 2 offshore wind project shall be limited to addressing revised project schedules, sizes, or pricing, including OREC pricing.</text> </level> <level label="iv"> <level label="1"> <text>On receipt of an application for approval of a revised Round 2 offshore wind project, the Commission shall conduct an expedited review of the application.</text> </level> <level label="2"> <text>Unless extended by mutual consent of the parties, the Commission shall approve, conditionally approve, or deny an application within 90 days after the application is filed and found by the Commission to be administratively complete.</text> </level> </level> <level label="v"> <level label="1"> <text>Except as provided in subsubparagraphs 2 and 3 of this subparagraph, an application for a revised Round 2 offshore wind project shall be subject to all criteria set forth in this section for Round 2 offshore wind projects.</text> </level> <level label="2"> <text>An application for a revised Round 2 offshore wind project is not subject to the requirements of subsections (c)(6)(ii) and (i) of this section.</text> </level> <level label="3"> <text>If in a revised Round 2 offshore wind project proceeding the Commission reviews multiple reasonable proposals meeting the requirements of this section for Round 2 offshore wind projects, the Commission shall issue orders approving the revised Round 2 offshore wind projects necessary to facilitate as much energy capacity as is consistent with the Round 2 offshore wind project ratepayer protections under this section, including at least 800 megawatts of capacity from revised Round 2 offshore wind projects, if practicable, even if the revised Round 2 offshore wind project applications may result in lower total energy capacity awarded than was previously awarded to the revised Round 2 offshore wind project in its previously approved Round 2 offshore wind project application.</text> </level> <level label="4"> <text>When evaluating an application for a revised Round 2 offshore wind project, the Commission shall, to the extent practicable, extend prior or existing proceedings for applicants that have a previously approved order for a Round 2 offshore wind project.</text> </level> </level> <level label="vi"> <text>The Commission may not approve an application for a revised Round 2 offshore wind project unless the application includes commitments for in–State expenditures and investments in a local supply chain that the Commission determines are reasonably related to the size and requirements of the project.</text> </level> <level label="vii"> <text>The Administration shall have access to all confidential information produced by any party relating to a revised Round 2 offshore wind project proceeding, subject to an agreement to protect the confidentiality of the information.</text> </level> </level> <level label="4"> <level label="i"> <text>In order to maximize the amount of renewable energy generated by a Round 1 offshore wind project, any Round 1 offshore wind project may seek approval from the Commission to amend its previously approved Round 1 offshore wind project order to:</text> <level label="1"> <text>increase the maximum amount of ORECs sold under the previous order, consistent with the Round 1 offshore wind project ratepayer protections under this section; and</text> </level> <level label="2"> <text>modify its project schedule.</text> </level> </level> <level label="ii"> <text>The Commission may approve a request for an increased amount of ORECs sold under a previously approved Round 1 offshore wind project order on a showing that:</text> <level label="1"> <text>the unit pricing of the additional ORECs does not exceed the pricing under the previously approved Round 1 offshore wind project order; and</text> </level> <level label="2"> <text>the Round 1 offshore wind project is in compliance with the ratepayer protection provisions required for Round 1 offshore wind projects, taking into consideration changes in economic conditions since the original Round 1 offshore wind project awards.</text> </level> </level> </level> </level> <level label="m"> <level label="1"> <text>The Commission, with the assistance of the Administration, the Department of General Services, and other interested State units shall develop a plan for achieving a total of 8,500 megawatts of offshore wind energy capacity by 2031.</text> </level> <level label="2"> <text>The plan:</text> <level label="i"> <text>shall include a schedule of offshore wind energy procurements and proposed amounts of offshore wind energy for procurement through 2031; and</text> </level> <level label="ii"> <text>may include recommendations on multijurisdictional offshore wind energy procurements and any additional offshore wind energy procurement recommendations.</text> </level> </level> <level label="3"> <text>On or before January 1, 2025, the Commission shall submit a report on the plan to the General Assembly, in accordance with § 2–1257 of the State Government Article.</text> </level> </level> </section> <section article="gpu" article_name="Public Utilities" number="7-704.2" title_number="7" title_name="Gas, Electric, and Water Companies" subtitle_number="7" subtitle_name="Renewable Energy Portfolio Standard"> <level label="a"> <level label="1"> <text>The Commission shall determine the offshore wind energy component of the renewable energy portfolio standard under § 7–703(b)(12) through (25) of this subtitle based on the projected annual creation of ORECs by qualified offshore wind projects.</text> </level> <level label="2"> <text>The Commission shall establish the renewable energy portfolio standard obligation for ORECs on a forward–looking basis that includes a surplus to accommodate reasonable forecasting error in estimating overall electricity sales in the State.</text> </level> <level label="3"> <text>Any positive adjustment to the renewable energy portfolio standard shall be on a forward–looking basis and sufficiently in advance to allow an electric company to reflect OREC costs as a nonbypassable surcharge to distribution customers.</text> </level> <level label="4"> <text>The Commission shall adopt regulations that establish:</text> <level label="i"> <text>the offshore wind purchase obligation sufficiently in advance to allow an electric company to reflect OREC costs as a nonbypassable surcharge paid by all distribution customers of the electric company;</text> </level> <level label="ii"> <text>a mechanism to adjust the renewable energy portfolio standard obligation in a given year to accommodate a shortfall of ORECs in one or more earlier years that is the result of the variation between the quantity of ORECs calculated from the renewable energy portfolio standard obligation and the quantity of ORECs approved in the Commission order for the same years; and</text> </level> <level label="iii"> <text>a nonbypassable surcharge that allows an electric company to recover all costs associated with the purchase of ORECs from all distribution customers of the electric company.</text> </level> </level> </level> <level label="b"> <text>The Commission shall adopt regulations establishing an escrow account under Commission supervision and defining rules that facilitate and ensure the secure and transparent transfer of revenues and ORECs among the parties.</text> </level> <level label="c"> <level label="1"> <text>Each electric company shall purchase from the escrow account established under this section the number of ORECs required to satisfy the offshore wind energy component of the renewable energy portfolio standard under § 7–703(b)(12) through (25) of this subtitle.</text> </level> <level label="2"> <level label="i"> <text>Subject to any escrow account reserve requirement the Commission establishes, if there are insufficient ORECs available to satisfy the electric companies’ OREC obligation, the overpayment shall be distributed to electric companies to be refunded or credited to each distribution customer based on the customer’s consumption of electricity supply that is subject to the renewable energy portfolio standard.</text> </level> <level label="ii"> <text>Subject to any escrow account reserve requirement the Commission establishes, the calculation of an electric company’s OREC purchase obligation shall be based on final electricity sales data as reported by the PJM Interconnection as measured at the customer meter.</text> </level> </level> <level label="3"> <text>For each OREC for which a qualified offshore wind project receives payment, a qualified offshore wind project shall:</text> <level label="i"> <text>sell all energy, capacity, and ancillary services associated with the creation of ORECs into the markets operated by PJM Interconnection; and</text> </level> <level label="ii"> <text>distribute the proceeds received from the sales to PJM Interconnection markets, under item (i) of this paragraph to electric companies to be refunded or credited to each distribution customer based on the customer’s consumption of electricity supply that is subject to the renewable energy portfolio standard.</text> </level> </level> <level label="4"> <text>Notwithstanding § 7–709 of this subtitle, the Commission shall adopt regulations regarding the transfer and expiration of ORECs created by a qualified offshore wind project in excess of the OREC pricing schedule.</text> </level> </level> <level label="d"> <level label="1"> <text>If, within 2 years before the expiration of an OREC term, a qualified offshore wind project is anticipated to receive PJM revenues greater than the project operating costs for the 5 years immediately following the expiration of the term of the OREC pricing schedule, the Commission may extend the term of the OREC pricing schedule for an additional 5 years at an OREC price that equals one–half of the sum of:</text> <level label="i"> <text>anticipated market revenues generated by the project during the additional 5–year period; and</text> </level> <level label="ii"> <text>anticipated project operating costs during the additional 5–year period.</text> </level> </level> <level label="2"> <text>If, within 2 years before the expiration of an additional 5–year term extended under paragraph (1) of this subsection, a qualified offshore wind project is anticipated to receive PJM revenues greater than the project operating costs for the 5 years immediately following the expiration of the additional 5–year term, the Commission may extend the term of the OREC pricing schedule for an additional 5 years at an OREC price that equals one–half of the sum of:</text> <level label="i"> <text>anticipated market revenues generated by the project during the additional 5–year period; and</text> </level> <level label="ii"> <text>anticipated project operating costs during the additional 5–year period.</text> </level> </level> <level label="3"> <text>Except as provided in paragraphs (1) and (2) of this subsection, an OREC transaction that takes place during an additional 5–year term is subject to the provisions and regulations applicable to the original OREC order.</text> </level> </level> <level label="e"> <text>A debt, obligation, or liability of a qualified offshore wind project, or an owner or operator of a qualified offshore wind project, may not be considered a debt, obligation, or liability of the State.</text> </level> <level label="f"> <text>On or before July 1, 2014, the Commission shall adopt regulations to carry out this section and § 7–704.1 of this subtitle.</text> </level> </section> <section article="gpu" article_name="Public Utilities" number="7-704.3" title_number="7" title_name="Gas, Electric, and Water Companies" subtitle_number="7" subtitle_name="Renewable Energy Portfolio Standard"> <level label="a"> <text>The General Assembly finds and declares that it is in the public interest to upgrade and expand the transmission system to accommodate the buildout of at least 8,500 megawatts of offshore wind energy from qualified offshore wind projects serving the State by 2031.</text> </level> <level label="b"> <level label="1"> <text>To meet the goals established under § 7–703 of this subtitle and subsection (a) of this section, the Commission, in consultation with the Maryland Energy Administration, shall request that PJM Interconnection conduct an analysis of transmission system upgrade and expansion options that take into consideration both onshore and offshore infrastructure.</text> </level> <level label="2"> <text>The Commission:</text> <level label="i"> <text>shall consult with other states served by PJM Interconnection to evaluate regional transmission cooperation that could help achieve the State’s renewable energy and offshore wind energy goals with greater efficiency;</text> </level> <level label="ii"> <text>shall work with PJM Interconnection to ensure that the analysis requested under paragraph (1) of this subsection includes an analysis of solutions that:</text> <level label="1"> <text>use an open–access collector transmission system to allow for the interconnection of multiple qualified offshore wind projects at a single substation;</text> </level> <level label="2"> <text>avoid a significant outage, or single contingency, of any part of the transmission system;</text> </level> <level label="3"> <text>reduce permitting risks, impacts on communities, and unnecessary high costs;</text> </level> <level label="4"> <text>leverage existing infrastructure;</text> </level> <level label="5"> <text>offer benefits that address additional grid challenges; and</text> </level> <level label="6"> <text>address any other issues that the Commission identifies; and</text> </level> </level> <level label="iii"> <text>may consult with owners of transmission facilities in the State to gather relevant technical information.</text> </level> </level> <level label="3"> <text>The Commission may enter into any necessary agreements with PJM Interconnection for transmission planning to:</text> <level label="i"> <text>initiate PJM Interconnection’s analysis; or</text> </level> <level label="ii"> <text>assist with the solicitation of proposals for offshore wind transmission projects.</text> </level> </level> <level label="4"> <text>On or before July 1, 2024, the Commission shall submit a status update on the analysis requested under paragraph (1) of this subsection to the General Assembly, in accordance with § 2–1257 of the State Government Article.</text> </level> </level> <level label="c"> <level label="1"> <text>On or before July 1, 2025, the Commission shall issue, or request that PJM Interconnection issue, one or more competitive solicitations for proposals for open access offshore wind transmission facilities and complementary onshore transmission upgrades and expansions.</text> </level> <level label="2"> <text>The Commission may issue, or request that PJM Interconnection issue, further solicitations for proposals after this date if determined necessary by the Commission.</text> </level> </level> <level label="d"> <text>In developing criteria for selecting a proposal under this section, the Commission:</text> <level label="1"> <text>shall consider the analysis required under subsection (b) of this section, including a consideration of potential interconnection points;</text> </level> <level label="2"> <text>shall evaluate the potential for cooperating with other states in the PJM region to maximize consumer benefits that will best achieve the State’s renewable energy and offshore wind energy goals; and</text> </level> <level label="3"> <text>may consult with the Administration, electric companies, transmission facility owners, and other states or entities designated by those states in developing or coordinating equivalent standards for the approval of transmission projects under this section that will facilitate the integration of multiple offshore wind energy projects and potential multistate offshore wind transmission projects.</text> </level> </level> <level label="e"> <level label="1"> <text>The Commission shall include, or work with PJM Interconnection to include, specifications in the solicitation that require proposals to:</text> <level label="i"> <text>allow future transmission lines to connect in a meshed manner and share landing points;</text> </level> <level label="ii"> <text>consider other onshore and offshore clean energy generation and storage facilities;</text> </level> <level label="iii"> <text>incorporate community benefit agreements in accordance with § 7–704.1 of this subtitle;</text> </level> <level label="iv"> <text>address the siting, environmental, and socioeconomic information required to be considered by the Commission under § 7–207 of this title for an application for a certificate of public convenience and necessity, including opportunities for public engagement and comment with units of State and local government and the general public;</text> </level> <level label="v"> <text>demonstrate net benefits to ratepayers in the State when compared with an alternative baseline scenario under which 8,500 megawatts of offshore wind energy capacity is connected to PJM Interconnection independent of an offshore wind transmission project to achieve the goal established under § 7–704.1(a)(1)(i) of this subtitle; and</text> </level> <level label="vi"> <text>ensure a competitive bidding process by redacting proprietary information provided to the Commission or to PJM Interconnection.</text> </level> </level> <level label="2"> <text>The Commission may evaluate, or request that PJM Interconnection assist with the evaluation of, proposals that include:</text> <level label="i"> <text>upgrading the existing transmission grid;</text> </level> <level label="ii"> <text>extending the existing transmission grid onshore and offshore to be closer to offshore wind energy locations;</text> </level> <level label="iii"> <text>interconnecting between offshore substations;</text> </level> <level label="iv"> <text>adding energy storage; and</text> </level> <level label="v"> <text>the use of HVDC converter technology to support potential weaknesses in the transmission grid.</text> </level> </level> <level label="3"> <text>The Commission may select a proposal or proposals that include:</text> <level label="i"> <text>federal funding in the form of a match, grant, loan, or ownership and operation by the United States government;</text> </level> <level label="ii"> <text>cost sharing among states or recovery of transmission costs through federal transmission rates, consistent with the policies and tariffs of the Federal Energy Regulatory Commission;</text> </level> <level label="iii"> <text>a combination of the funding methods outlined in items (i) and (ii) of this paragraph; or</text> </level> <level label="iv"> <text>any other available funding mechanisms.</text> </level> </level> <level label="4"> <text>Each proposal should maximize access to and be consistent with the terms of the U.S. Department of Energy funding programs, including those established:</text> <level label="i"> <text>under the federal Infrastructure Investment and Jobs Act;</text> </level> <level label="ii"> <text>under the federal Inflation Reduction Act of 2022;</text> </level> <level label="iii"> <text>through the U.S. Department of Energy Transmission Facilitation Program; and</text> </level> <level label="iv"> <text>through any loan programs, office programs, or resiliency funding.</text> </level> </level> </level> <level label="f"> <text>The solicitation process shall:</text> <level label="1"> <text>include a prequalification process to ensure the financial and technical competence and capabilities of the entities responding to the solicitation for proposals;</text> </level> <level label="2"> <text>provide for rigorous separation between individuals or firms participating in the review, analysis, and selection of the proposals by or on behalf of the Commission and those participating in the development or management of proposals; and</text> </level> <level label="3"> <text>promote rigorous competition among prequalified entities in the preparation and submission of their proposals.</text> </level> </level> <level label="g"> <text>The Commission may modify, or request that PJM Interconnection modify, a solicitation for proposals at any time in order to satisfy eligibility criteria for U.S. Department of Energy funding programs.</text> </level> <level label="h"> <text>In selecting a proposal under this section, the Commission shall take into consideration the total amount of new transmission infrastructure needed to:</text> <level label="1"> <text>maintain electric system reliability;</text> </level> <level label="2"> <text>achieve the State’s offshore wind, renewable energy, and decarbonization goals;</text> </level> <level label="3"> <text>obtain demonstrable benefits to the consumer and environment; and</text> </level> <level label="4"> <text>foster economic development and job creation in the State.</text> </level> </level> <level label="i"> <text>The Commission shall:</text> <level label="1"> <text>request that PJM Interconnection assist with the evaluation of each proposal submitted in accordance with this section; and</text> </level> <level label="2"> <text>after notice, one or more hearings to receive public comment, and an evidentiary hearing, and subject to subsection (j) of this section, on or before December 1, 2027, by order, select a proposal or proposals for development:</text> <level label="i"> <text>using a funding mechanism or combination of funding mechanisms identified in subsection (e)(3) of this section; and</text> </level> <level label="ii"> <text>that demonstrate net benefits to ratepayers in the State when compared with an alternative baseline scenario under subsection (e)(1)(v) of this section.</text> </level> </level> </level> <level label="j"> <text>If the Commission finds that none of the proposals adequately support the goals established under this section or demonstrate net benefits to ratepayers in the State when compared with an alternative baseline scenario under subsection (e)(1)(v) of this section, then the Commission may end the solicitation process without selecting a proposal.</text> </level> <level label="k"> <level label="1"> <text>The Commission may, for a proposal selected under subsection (i) of this section:</text> <level label="i"> <text>adopt conditions for the construction and operation of facilities included in the proposal; and</text> </level> <level label="ii"> <text>consider any conditions proposed by the Power Plant Research Program.</text> </level> </level> <level label="2"> <text>The requirement to obtain a certificate of public convenience and necessity under § 7–207 or § 7–208 of this title does not apply to a proposal selected under subsection (i) of this section.</text> </level> <level label="3"> <text>An order selecting a proposal under subsection (i) of this section constitutes authorization by the Commission to construct and operate facilities that would otherwise require a certificate of public convenience and necessity under § 7–207 or § 7–208 of this title.</text> </level> </level> <level label="l"> <text>Except as provided in subsection (k) of this section, a proposal selected under this section is subject to all other relevant requirements for the siting and construction of transmission lines.</text> </level> <level label="m"> <text>Selection of coordinated transmission proposals may not impact the interconnection plans of earlier offshore wind projects, including OCS–A 0490 (US Wind) and OCS–A 0519 (Skipjack), unless the leaseholders for these projects opt to participate in the proposal by notifying the Commission by mail or e–mail before the completion of the analysis of transmission system expansion options under subsection (b) of this section.</text> </level> <level label="n"> <text>If no proposal has been selected under this section by December 1, 2027, the Commission shall submit a statement of determination to the Governor and General Assembly that:</text> <level label="1"> <text>provides a comprehensive explanation of the Commission’s determination; and</text> </level> <level label="2"> <text>recommends a path forward to achieve the State’s goal under subsection (a) of this section.</text> </level> </level> <level label="o"> <text>After the Commission selects a proposal or proposals, the Commission shall work with the Maryland Energy Administration, transmission developer or developers, transmission facility owners, PJM Interconnection, the Federal Energy Regulatory Commission, and any other states that voluntarily participate, to facilitate the development of the proposal or proposals and the construction of the proposed offshore wind project or projects.</text> </level> <level label="p"> <text>The Commission:</text> <level label="1"> <text>shall carry out the provisions of this section by obtaining information through request, cooperation, subpoena, or any other legal method from transmission owners, PJM Interconnection, or any other entity; and</text> </level> <level label="2"> <text>may retain consultants.</text> </level> </level> </section> <section article="gpu" article_name="Public Utilities" number="7-704.4" title_number="7" title_name="Gas, Electric, and Water Companies" subtitle_number="7" subtitle_name="Renewable Energy Portfolio Standard"> <level label="a"> <level label="1"> <text>In this section the following words have the meanings indicated.</text> </level> <level label="2"> <text>“Community benefit agreement” has the meaning stated in § 7–704.1(e) of this subtitle.</text> </level> <level label="3"> <text>“Social cost of greenhouse gases” means the most recent social cost of greenhouse gases adopted by the U.S. Environmental Protection Agency.</text> </level> </level> <level label="b"> <level label="1"> <text>The Department of General Services, in consultation with the Public Service Commission, shall issue a competitive sealed procurement solicitation and may enter into at least one contract for a power purchase agreement to procure offshore wind energy and associated renewable energy credits from one or more qualified offshore wind projects.</text> </level> <level label="2"> <text>Each agreement entered into under paragraph (1) of this subsection shall have a term of not less than 20 years.</text> </level> <level label="3"> <text>When issuing the invitation for bids under this subsection, the Department shall take into consideration:</text> <level label="i"> <text>the social cost of greenhouse gas emissions;</text> </level> <level label="ii"> <text>the State’s climate commitments; and</text> </level> <level label="iii"> <text>the State’s commitments under § 7–704.1(a) of this subtitle.</text> </level> </level> <level label="4"> <text>The evaluation criteria for bids shall include:</text> <level label="i"> <text>comparing the social cost of greenhouse gas emissions for offshore wind with the social cost of greenhouse gas emissions for nonrenewable power purchased from wholesale electric markets administered by PJM Interconnection; and</text> </level> <level label="ii"> <text>the extent to which an applicant’s proposal provides for financial and technical assistance to support monitoring and mitigation of wildlife and habitat impacts associated with the proposed offshore wind project.</text> </level> </level> <level label="5"> <text>Each agreement entered into under paragraph (1) of this subsection shall include:</text> <level label="i"> <text>a community benefit agreement and domestic content preferences; and</text> </level> <level label="ii"> <text>a description of:</text> <level label="1"> <text>initial plans for mitigating the impacts of the construction and operation of the proposed offshore wind project on fisheries and the environment; and</text> </level> <level label="2"> <text>the extent to which an applicant will provide for financial and technical assistance to support the monitoring and mitigation of wildlife and habitat impacts associated with the project.</text> </level> </level> </level> </level> <level label="c"> <level label="1"> <text>The Department of General Services shall identify the amount of energy necessary to meet the State’s energy needs.</text> </level> <level label="2"> <level label="i"> <text>The State shall use the energy procured under subsection (b) of this section to meet the State’s energy needs and retire the associated renewable energy credits to meet its obligations under the renewable energy portfolio standard and Chapter 38 of the Acts of the General Assembly of 2022.</text> </level> <level label="ii"> <text>The State shall be exempted from the renewable energy portfolio standard requirements under § 7–703 of this subtitle if the Department of General Services procures 100% of the State’s energy needs from the power purchase agreement required under subsection (b) of this section.</text> </level> </level> <level label="3"> <text>The State shall offer for sale any energy or renewable energy credits remaining after the requirements under paragraph (2) of this subsection have been met on the competitive wholesale power market operated by PJM Interconnection, through bilateral sales to credit–worthy counterparties, or into renewable energy credit markets.</text> </level> </level> <level label="d"> <level label="1"> <text>The State shall:</text> <level label="i"> <text>issue a draft solicitation for procurement of offshore wind energy for public comment and review on or before June 1, 2024;</text> </level> <level label="ii"> <text>issue a procurement for offshore wind energy on or before July 31, 2024;</text> </level> <level label="iii"> <text>provide a procurement submission process window of not less than 180 days; and</text> </level> <level label="iv"> <text>award contracts in a timely manner.</text> </level> </level> <level label="2"> <level label="i"> <text>Subject to subparagraph (ii) of this paragraph, on or before September 1, 2025, the State may enter into a contract or contracts for the procurement issued under paragraph (1) of this subsection.</text> </level> <level label="ii"> <text>The State may modify the date established in subparagraph (i) of this paragraph if an unforeseen circumstance adversely affects the procurement submission process.</text> </level> </level> </level> <level label="e"> <level label="1"> <text>In addition to the solicitation and procurement issued under subsection (d) of this section, the State:</text> <level label="i"> <text>shall issue a draft solicitation for procurement of offshore wind energy for public comment and review on or before September 1, 2025; and</text> </level> <level label="ii"> <text>shall issue a procurement for offshore wind energy on or before December 31, 2025.</text> </level> </level> <level label="2"> <text>Subject to paragraph (3) of this subsection and in addition to any contract entered into under subsection (d) of this section, on or before March 31, 2027, the State may enter into a contract or contracts for the procurement issued under paragraph (1) of this subsection.</text> </level> <level label="3"> <text>The State may modify the date established in paragraph (2) of this subsection if an unforeseen circumstance adversely affects the procurement submission process.</text> </level> </level> <level label="f"> <text>The State shall incorporate in the offshore wind energy procurement contract terms to facilitate low–cost project development and traditional project financing terms, including:</text> <level label="1"> <text>terms that waive the automatic termination clause required under § 13–217 of the State Finance and Procurement Article;</text> </level> <level label="2"> <text>terms that establish remedies to reimburse costs incurred by the contractor directly attributable to the failure of the State to appropriate funds for the contract; and</text> </level> <level label="3"> <text>any other appropriate mechanisms to ensure that offshore wind energy projects that meet the terms of the contract will have certainty of payment through the duration of the contract.</text> </level> </level> <level label="g"> <level label="1"> <text>Within 90 days after the operational commencement date of the power purchase agreement, any contractor providing operations and maintenance services under an agreement with the Department of General Services shall submit to the Department attestation that the contractor has entered into a labor peace agreement with each labor organization that is actively engaged in representing or attempting to represent employees performing operations and maintenance work on the projects that:</text> <level label="i"> <text>prohibits strikes, lockouts, or any other economic interference with the contracted project;</text> </level> <level label="ii"> <text>describes the class or classes of covered employees to whom the labor peace agreement applies;</text> </level> <level label="iii"> <text>describes any class or classes of employees not currently represented by a labor organization;</text> </level> <level label="iv"> <text>describes the classes of covered employees for which labor peace agreement negotiations have not yet concluded; and</text> </level> <level label="v"> <text>for classes of employees that are not covered by a labor peace agreement, provides an attestation that no labor organization has sought to negotiate such an agreement.</text> </level> </level> <level label="2"> <text>A labor peace agreement required under paragraph (1) of this subsection shall be:</text> <level label="i"> <text>valid and enforceable under 29 U.S.C. § 158; and</text> </level> <level label="ii"> <text>maintained as an ongoing material condition of any continuation of payments under any agreement required by this subsection.</text> </level> </level> </level> <level label="h"> <text>Nothing in this section may be construed to prevent the procurement of new offshore wind energy generation in accordance with the current or any future solicitation schedule.</text> </level> </section> <section article="gpu" article_name="Public Utilities" number="7-704.5" title_number="7" title_name="Gas, Electric, and Water Companies" subtitle_number="7" subtitle_name="Renewable Energy Portfolio Standard"> <level label="a"> <text>On or before December 31, 2024, and on or before each December 31 thereafter, the Commission shall submit a report to the General Assembly, in accordance with § 2–1257 of the State Government Article, on the information collected under the Commission’s Supplier Diversity Program regarding offshore wind developers.</text> </level> <level label="b"> <text>The report required under subsection (a) of this section shall include:</text> <level label="1"> <text>efforts to promote opportunities for small, minority, women–owned, and veteran–owned businesses;</text> </level> <level label="2"> <text>information on participating offshore wind developers;</text> </level> <level label="3"> <text>participation of small, minority, women–owned, and veteran–owned businesses in offshore wind projects, including:</text> <level label="i"> <text>the number of small, minority, women–owned, and veteran–owned businesses that receive contracts or subcontracts for offshore wind projects; and</text> </level> <level label="ii"> <text>the percentage of contractors and subcontractors on offshore wind projects that are small, minority, women–owned, or veteran–owned businesses; and</text> </level> </level> <level label="4"> <text>plans to increase future participation of small, minority, women–owned, and veteran–owned businesses in offshore wind projects.</text> </level> </level> </section> <section article="gpu" article_name="Public Utilities" number="7-705" title_number="7" title_name="Gas, Electric, and Water Companies" subtitle_number="7" subtitle_name="Renewable Energy Portfolio Standard"> <level label="a"> <level label="1"> <text>Except as provided in paragraph (2) of this subsection, each electricity supplier shall submit a report to the Commission each year in a form and by a date specified by the Commission that:</text> <level label="i"> <level label="1"> <text>demonstrates that the electricity supplier has complied with the applicable renewable energy portfolio standard under § 7–703 of this subtitle and includes the submission of the required amount of renewable energy credits; or</text> </level> <level label="2"> <text>demonstrates the amount of electricity sales by which the electricity supplier failed to meet the applicable renewable energy portfolio standard;</text> </level> </level> <level label="ii"> <text>documents the level of participation of minority business enterprises and minorities in the activities that support the creation of renewable energy credits used to satisfy the standard under § 7–703 of this subtitle, including development, installation, and operation of generating facilities that create credits;</text> </level> <level label="iii"> <text>documents the amounts and types of generation associated with renewable energy credits purchased in compliance with § 7–707(c) of this subtitle during the reporting period; and</text> </level> <level label="iv"> <text>documents the amount of renewable energy certificates that do not qualify as renewable energy credits as defined in § 7–701 of this subtitle, including, for each certificate:</text> <level label="1"> <text>the energy source associated with the certificate, including its location, when it was constructed, and which electric distribution system received the energy;</text> </level> <level label="2"> <text>whether the purchase of the certificate was bundled with a power purchase agreement from the energy source associated with the certificate;</text> </level> <level label="3"> <text>whether the certificate was purchased directly from the operator of the energy source or through a third party; and</text> </level> <level label="4"> <text>any other information required by the Commission.</text> </level> </level> </level> <level label="2"> <text>Paragraph (1)(iii) and (iv) of this subsection does not apply to:</text> <level label="i"> <text>the Department of General Services’ sale of energy under § 7–704.4 of this subtitle; or</text> </level> <level label="ii"> <text>a community choice aggregator under § 7–510.3 of this title.</text> </level> </level> </level> <level label="b"> <level label="1"> <text>This subsection does not apply to a shortfall from the required Tier 1 renewable sources that is to be derived from post–2022 geothermal systems.</text> </level> <level label="2"> <text>If an electricity supplier fails to comply with the renewable energy portfolio standard for the applicable year, the electricity supplier shall pay into the Maryland Strategic Energy Investment Fund established under § 9–20B–05 of the State Government Article:</text> <level label="i"> <text>except as provided in item (ii) of this paragraph, a compliance fee of:</text> <level label="1"> <text>the following amounts for each kilowatt–hour of shortfall from required Tier 1 renewable sources other than the shortfall from the required Tier 1 renewable sources that is to be derived from solar energy:</text> </level> <level label="A"> <text>4 cents through 2016;</text> </level> <level label="B"> <level label="3"> <text>75 cents in 2017 and 2018;</text> </level> </level> <level label="C"> <text>3 cents in 2019 through 2023;</text> </level> <level label="D"> <level label="2"> <text>75 cents in 2024;</text> </level> </level> <level label="E"> <level label="2"> <text>5 cents in 2025;</text> </level> </level> <level label="F"> <level label="2"> <text>475 cents in 2026;</text> </level> </level> <level label="G"> <level label="2"> <text>45 cents in 2027;</text> </level> </level> <level label="H"> <level label="2"> <text>25 cents in 2028 and 2029; and</text> </level> </level> <level label="I"> <level label="2"> <text>235 cents in 2030 and later;</text> </level> </level> <level label="2"> <text>the following amounts for each kilowatt–hour of shortfall from required Tier 1 renewable sources that is to be derived from solar energy:</text> </level> <level label="A"> <text>45 cents in 2008;</text> </level> <level label="B"> <text>40 cents in 2009 through 2014;</text> </level> <level label="C"> <text>35 cents in 2015 and 2016;</text> </level> <level label="D"> <level label="19"> <text>5 cents in 2017;</text> </level> </level> <level label="E"> <level label="17"> <text>5 cents in 2018;</text> </level> </level> <level label="F"> <text>10 cents in 2019;</text> </level> <level label="G"> <text>10 cents in 2020;</text> </level> <level label="H"> <text>8 cents in 2021;</text> </level> <level label="I"> <text>6 cents in 2022;</text> </level> <level label="J"> <text>6 cents in 2023;</text> </level> <level label="K"> <text>6 cents in 2024;</text> </level> <level label="L"> <level label="5"> <text>5 cents in 2025;</text> </level> </level> <level label="M"> <level label="4"> <text>5 cents in 2026;</text> </level> </level> <level label="N"> <level label="3"> <text>5 cents in 2027;</text> </level> </level> <level label="O"> <level label="3"> <text>25 cents in 2028;</text> </level> </level> <level label="P"> <level label="2"> <text>5 cents in 2029; and</text> </level> </level> <level label="Q"> <level label="2"> <text>25 cents in 2030 and later; and</text> </level> </level> <level label="3"> <level label="1"> <text>5 cents for each kilowatt–hour of shortfall from required Tier 2 renewable sources; or</text> </level> </level> </level> <level label="ii"> <text>for industrial process load:</text> <level label="1"> <text>for each kilowatt–hour of shortfall from required Tier 1 renewable sources, a compliance fee of:</text> </level> <level label="A"> <level label="0"> <text>8 cents in 2006, 2007, and 2008;</text> </level> </level> <level label="B"> <level label="0"> <text>5 cents in 2009 and 2010;</text> </level> </level> <level label="C"> <level label="0"> <text>4 cents in 2011 and 2012;</text> </level> </level> <level label="D"> <level label="0"> <text>3 cents in 2013 and 2014;</text> </level> </level> <level label="E"> <level label="0"> <text>25 cents in 2015 and 2016; and</text> </level> </level> <level label="F"> <text>except as provided in paragraph (3) of this subsection, 0.2 cents in 2017 and later; and</text> </level> <level label="2"> <text>nothing for any shortfall from required Tier 2 renewable sources.</text> </level> </level> </level> <level label="3"> <text>For industrial process load, the compliance fee for each kilowatt–hour of shortfall from required Tier 1 renewable sources is nothing for the year following any year during which, after final calculations, the net rate impact per megawatt–hour from Round 1 offshore wind projects exceeded $1.65 in 2012 dollars.</text> </level> </level> <level label="b–1"> <text>If an electricity supplier fails to comply with the renewable energy portfolio standard that is required to be derived from post–2022 geothermal systems for the applicable year, the electricity supplier shall pay into the Maryland Strategic Energy Investment Fund established under § 9–20B–05 of the State Government Article a compliance fee of the following amounts for each kilowatt–hour of shortfall from required post–2022 geothermal systems:</text> <level label="1"> <text>10 cents in 2023 through 2025;</text> </level> <level label="2"> <text>9 cents in 2026;</text> </level> <level label="3"> <text>8 cents in 2027; and</text> </level> <level label="4"> <level label="6"> <text>5 cents in 2028 and later.</text> </level> </level> </level> <level label="c"> <text>The Commission may allow an electricity supplier to submit the report required under § 7–505(b)(4) of this title to demonstrate compliance with the renewable energy portfolio standard.</text> </level> <level label="d"> <text>An aggregator or broker who assists an electricity customer in purchasing electricity but who does not supply the electricity or take title to or ownership of the electricity may require the electricity supplier who supplies the electricity to demonstrate compliance with this subtitle.</text> </level> <level label="e"> <level label="1"> <text>Notwithstanding the requirements of § 7–703(b) of this subtitle, if the actual or projected dollar–for–dollar cost incurred or to be incurred by an electricity supplier solely for the purchase of Tier 1 renewable energy credits derived from solar energy in any 1 year is greater than or equal to, or is anticipated to be greater than or equal to, 6.0% of the electricity supplier’s total annual electricity sales revenues in Maryland, the electricity supplier may request that the Commission:</text> <level label="i"> <text>delay by 1 year each of the scheduled percentages for solar energy under § 7–703(b) of this subtitle that would apply to the electricity supplier; and</text> </level> <level label="ii"> <text>allow the renewable energy portfolio standard for solar energy for that year to continue to apply to the electricity supplier for the following year.</text> </level> </level> <level label="2"> <text>In making its determination under paragraph (1) of this subsection, the Commission shall consider the actual or projected dollar–for–dollar compliance costs of other electricity suppliers.</text> </level> <level label="3"> <text>If an electricity supplier makes a request under paragraph (1) of this subsection based on projected costs, the electricity supplier shall provide verifiable evidence of the projections to the Commission at the time of the request.</text> </level> <level label="4"> <text>If the Commission allows a delay under paragraph (1) of this subsection:</text> <level label="i"> <text>the renewable energy portfolio standard for solar energy applicable to the electricity supplier under the delay continues for each subsequent consecutive year that the actual or projected dollar–for–dollar costs incurred, or to be incurred, by the electricity supplier solely for the purchase of solar renewable energy credits is greater than or equal to, or is anticipated to be greater than or equal to, 6.0% of the electricity supplier’s total annual retail electricity sales revenues in Maryland; and</text> </level> <level label="ii"> <text>the renewable energy portfolio standard for solar energy applicable to the electricity supplier under the delay is increased to the next scheduled percentage increase under § 7–703(b) of this subtitle for each year in which the actual or projected dollar–for–dollar costs incurred, or to be incurred, by the electricity supplier solely for the purchase of solar renewable energy credits is less than, or is anticipated to be less than, 6.0% of the electricity supplier’s total annual retail electricity sales revenues in Maryland.</text> </level> </level> </level> </section> <section article="gpu" article_name="Public Utilities" number="7-706" title_number="7" title_name="Gas, Electric, and Water Companies" subtitle_number="7" subtitle_name="Renewable Energy Portfolio Standard"> <level label="a"> <level label="1"> <text>Except as provided in paragraph (2) of this subsection, in accordance with the obligation to provide standard offer service through the bid process created under § 7–510 of this title, the Commission shall allow an electricity supplier to recover actual dollar–for–dollar costs incurred, including a compliance fee under § 7–705 of this subtitle, in complying with a State–mandated renewable energy portfolio standard.</text> </level> <level label="2"> <text>In accordance with the Phase II settlement agreement approved by the Commission in Order No. 78710 in Case No. 8908 on September 30, 2003, for any full–service agreement executed before the renewable energy standard under this subtitle applies to an electric company, the electric company and its wholesale electricity suppliers may pass through their commercially reasonable additional costs, if any, associated with complying with the standard, through the end of the year of standard offer service in which the requirement took effect.</text> </level> </level> <level label="b"> <text>An electricity supplier may recover a compliance fee if:</text> <level label="1"> <text>the payment of a compliance fee is the least–cost measure to customers as compared to the purchase of Tier 1 renewable sources to comply with a renewable energy portfolio standard;</text> </level> <level label="2"> <text>there are insufficient Tier 1 renewable sources available for the electricity supplier to comply with a renewable energy portfolio standard; or</text> </level> <level label="3"> <text>a wholesale electricity supplier defaults or otherwise fails to deliver renewable energy credits under a supply contract approved by the Commission.</text> </level> </level> <level label="c"> <text>Any cost recovery under this section:</text> <level label="1"> <text>for all electricity suppliers, may be in the form of a generation surcharge payable by all current electricity supply customers, except as otherwise provided in § 7–704(e) of this subtitle;</text> </level> <level label="2"> <text>shall be disclosed to customers in a manner to be determined by the Commission; and</text> </level> <level label="3"> <text>may not include the costs for a power purchase contract under the federal Public Utility Regulatory Policy Act contemplated in rates or restructuring proceedings.</text> </level> </level> <level label="d"> <level label="1"> <text>In accordance with regulations adopted by the Commission in consultation with the Department of Commerce, the Commission may waive the recovery of all or part of the compliance fee assessed on the load of a particular industrial or nonretail commercial customer for a particular year, based on a demonstration by the applicant of an extreme economic hardship that significantly impairs the continued operation of the applicant.</text> </level> <level label="2"> <text>Any compliance fee recovery that is waived under this subsection may not be assessed against other customers.</text> </level> <level label="3"> <text>An electricity supplier is not liable for any compliance fee that is waived under this subsection.</text> </level> </level> </section> <section article="gpu" article_name="Public Utilities" number="7-707" title_number="7" title_name="Gas, Electric, and Water Companies" subtitle_number="7" subtitle_name="Renewable Energy Portfolio Standard"> <level label="a"> <text>In this section, “green power” means energy sources or renewable energy credits that are marketed as clean, green, eco–friendly, environmentally friendly or responsible, carbon–free, renewable, 100% renewable, 100% wind, 100% hydro, 100% solar, 100% emission–free, or similar claims.</text> </level> <level label="b"> <text>This section does not apply to:</text> <level label="1"> <text>the Department of General Services when the Department of General Services sells energy under § 7–704.4 of this subtitle;</text> </level> <level label="2"> <text>a community choice aggregator under § 7–510.3 of this title; or</text> </level> <level label="3"> <text>an electricity supplier when supplying electricity to commercial retail electric customers.</text> </level> </level> <level label="c"> <text>An electricity supplier that supplies electricity to residential retail electric customers may not market electricity as green power unless:</text> <level label="1"> <text>the percentage of the electricity being offered, or the equivalent number of renewable energy credits associated with the electricity being marketed as green power, that is eligible for inclusion in meeting the renewable energy portfolio standard equals or exceeds the greater of:</text> <level label="i"> <text>51%; or</text> </level> <level label="ii"> <text>1% higher than the renewable energy portfolio standard for the year the electricity is provided to the customer;</text> </level> </level> <level label="2"> <text>the Commission approves the price of the electricity being marketed as green power in accordance with subsection (d) of this section; and</text> </level> <level label="3"> <text>the electricity supplier submits an application to the Commission that:</text> <level label="i"> <text>describes the electricity being marketed as green power, including the green power source and percentage of the electricity that is green power;</text> </level> <level label="ii"> <text>describes how the green power complies with State law and regulations; and</text> </level> <level label="iii"> <text>includes any other information the Commission considers necessary.</text> </level> </level> </level> <level label="d"> <level label="1"> <text>The price approved by the Commission under subsection (c)(2) of this section shall be determined through:</text> <level label="i"> <text>a proceeding held in accordance with paragraph (2) of this subsection; or</text> </level> <level label="ii"> <text>a proceeding held in accordance with paragraph (3) of this subsection.</text> </level> </level> <level label="2"> <level label="i"> <text>Each year the Commission shall hold a proceeding to set a price per megawatt–hour for electricity marketed as green power under this section that may not be exceeded by an electricity supplier except as provided in paragraph (3) of this subsection.</text> </level> <level label="ii"> <text>Subject to paragraph (4) of this subsection, the price set by the Commission under subparagraph (i) of this paragraph may:</text> <level label="1"> <text>exceed the maximum price per megawatt–hour that is authorized under § 7–510(d)(2)(i) of this title; and</text> </level> <level label="2"> <text>differ based on the amount and source of the electricity generation.</text> </level> </level> <level label="iii"> <text>During a proceeding held under subparagraph (i) of this paragraph, the Commission:</text> <level label="1"> <text>shall consider:</text> </level> <level label="A"> <text>the price of the energy purchased, including the total cost of the renewable energy credits;</text> </level> <level label="B"> <text>the amount of electricity that is eligible for inclusion in meeting the renewable energy portfolio standard;</text> </level> <level label="C"> <text>the state in which the electricity was generated; and</text> </level> <level label="D"> <text>applicable market data; and</text> </level> <level label="2"> <text>may consider whether the purchase of renewable energy credits was bundled with a power purchase agreement from the energy sources associated with the credit.</text> </level> </level> </level> <level label="3"> <level label="i"> <text>On request by an electricity supplier, the Commission shall hold a proceeding to set a price per megawatt–hour for electricity marketed as green power for that electricity supplier.</text> </level> <level label="ii"> <text>Subject to paragraph (4) of this subsection, at a proceeding held under this paragraph the Commission may set a price per megawatt–hour that is higher than the price determined in the proceeding held under paragraph (2) of this subsection for an electricity supplier if:</text> <level label="1"> <text>the electricity supplier demonstrates to the Commission’s satisfaction, based on an independent third–party audit, that the actual cost to the electricity supplier for the generation or supply of electricity exceeds that of the price determined through the proceeding held in accordance with paragraph (2) of this subsection;</text> </level> <level label="2"> <text>the increased price reflects only the cost of the electricity marketed as green power and is not associated with any of the electricity supplier’s other costs; and</text> </level> <level label="3"> <text>the electricity supplier demonstrates to the Commission’s satisfaction that the electricity supplier has a significant long–term investment in renewable energy that meets the renewable energy portfolio standard under § 7–703 of this subtitle.</text> </level> </level> <level label="iii"> <text>During a proceeding held under this paragraph, the Commission shall consider:</text> <level label="1"> <text>whether the purchase of renewable energy credits was bundled with a power purchase agreement from the energy sources associated with the credit;</text> </level> <level label="2"> <text>the price of the energy purchased, including the total cost of the renewable energy credits or power purchase agreements;</text> </level> <level label="3"> <text>the amount of electricity that is eligible for inclusion in meeting the renewable energy portfolio standard;</text> </level> <level label="4"> <text>the state in which the electricity was generated; and</text> </level> <level label="5"> <text>applicable market data.</text> </level> </level> </level> <level label="4"> <level label="i"> <text>A price approved by the Commission under this subsection may not exceed 150% of the maximum price per megawatt–hour that is authorized under § 7–510(d)(2)(i) of this title unless the Commission determines that the actual cost of the green power exceeds that amount.</text> </level> <level label="ii"> <text>Within 120 days after approving a price for green power that exceeds 150% of the maximum price per megawatt–hour that is authorized under § 7–510(d)(2)(i) of this title, and annually for as long as the price exceeds that amount, the Commission shall submit a report to the General Assembly, in accordance with § 2–1257 of the State Government Article, that:</text> <level label="1"> <text>demonstrates that the approved price represents only the actual price of the green power; and</text> </level> <level label="2"> <text>includes the Commission’s order authorizing the price of the green power.</text> </level> </level> <level label="iii"> <text>If the Commission has approved for 3 consecutive years a price for green power that exceeds 150% of the maximum price per megawatt–hour that is authorized under § 7–510(d)(2)(i) of this title, the Commission shall include in the annual report required under subparagraph (ii) of this paragraph:</text> <level label="1"> <text>information on market conditions that necessitate the approved price of the green power that exceeds 150% of the maximum price per megawatt–hour that is authorized under § 7–510(d)(2)(i) of this title; and</text> </level> <level label="2"> <text>a recommendation of whether to increase the limitation on the maximum price of green power above which the Commission is required to make a determination under this paragraph.</text> </level> </level> </level> <level label="5"> <text>The Commission:</text> <level label="i"> <text>shall annually review a price approved under paragraph (3) of this subsection; and</text> </level> <level label="ii"> <text>may, on its own initiative, or on petition by the Office of People’s Counsel, require an electricity supplier offering green power under a price established under paragraph (3) of this subsection to demonstrate that the price continues to meet the requirements of paragraph (3) of this subsection.</text> </level> </level> </level> <level label="e"> <level label="1"> <text>On and after January 1, 2025, an electricity supplier shall purchase renewable energy credits for each year the electricity supplier offers green power for sale to residential retail electric customers.</text> </level> <level label="2"> <text>A renewable energy credit an electricity supplier purchases under paragraph (1) of this subsection shall be retired in a PJM Environmental Information Services, Inc., generation attribute tracking system reserve subaccount accessible by the Commission.</text> </level> </level> <level label="f"> <level label="1"> <text>This subsection does not apply to:</text> <level label="i"> <text>the Department of General Services when the Department of General Services sells energy under § 7–704.4 of this subtitle; or</text> </level> <level label="ii"> <text>a community choice aggregator under § 7–510.3 of this title.</text> </level> </level> <level label="2"> <text>An electricity supplier that claims in the electricity supplier’s marketing of electricity to residential retail electric customers that the customer will be purchasing green power shall include the following disclosure or a similar disclosure approved by the Commission:</text> <text>“We deliver energy through the purchase of Renewable Energy Credits (RECs). A REC represents the social good that accompanies 1 megawatt–hour of renewable electricity generation. RECs may be sold separately from renewable electricity itself. Renewable electricity and RECs may be sold to different entities. The purchase of a REC does not indicate that renewable electricity itself has been purchased by the entity that purchased the REC.”.</text> </level> </level> <level label="g"> <text>In addition to the disclosure required under subsection (f) of this section, the Commission shall adopt regulations that require an electricity supplier, other than the Department of General Services when the Department of General Services sells energy under § 7–704.4 of this subtitle or a community choice aggregator under § 7–510.3 of this title, that offers green power for sale to residential retail customers to include in the electricity supplier’s marketing materials a disclosure, written in plain language, that explains:</text> <level label="1"> <text>what the customer will actually be paying for when the customer purchases green power from the electricity supplier;</text> </level> <level label="2"> <text>how the electricity that the customer has purchased is generated;</text> </level> <level label="3"> <text>how the green power will benefit the environment;</text> </level> <level label="4"> <text>the percentage of electricity that would be provided by the electricity supplier that is eligible for inclusion in meeting the renewable energy portfolio standard; and</text> </level> <level label="5"> <text>the state in which the electricity was generated.</text> </level> </level> <level label="h"> <text>The Commission, in its discretion, may determine whether an electricity supplier is marketing electricity in accordance with this section.</text> </level> </section> <section article="gpu" article_name="Public Utilities" number="7-708" title_number="7" title_name="Gas, Electric, and Water Companies" subtitle_number="7" subtitle_name="Renewable Energy Portfolio Standard"> <level label="a"> <level label="1"> <text>The Commission shall establish and maintain a market-based renewable electricity trading system to facilitate the creation and transfer of renewable energy credits.</text> </level> <level label="2"> <text>To the extent practicable, the trading system shall be consistent with and operate in conjunction with the trading system developed by PJM Interconnection, Inc., if available.</text> </level> <level label="3"> <text>The Commission may contract with a for-profit or a nonprofit entity to assist in the administration of the electricity trading system required under paragraph (1) of this subsection.</text> </level> </level> <level label="b"> <level label="1"> <text>The system shall include a registry of pertinent information regarding all:</text> <level label="i"> <text>available renewable energy credits; and</text> </level> <level label="ii"> <text>renewable energy credit transactions among electricity suppliers in the State, including:</text> <level label="1"> <text>the creation and application of renewable energy credits;</text> </level> <level label="2"> <text>the number of renewable energy credits sold or transferred; and</text> </level> <level label="3"> <text>the price paid for the sale or transfer of renewable energy credits.</text> </level> </level> </level> <level label="2"> <level label="i"> <text>The registry shall provide current information to electricity suppliers and the public on the status of renewable energy credits created, sold, or transferred in the State.</text> </level> <level label="ii"> <text>Registry information shall be available by computer network access through the Internet.</text> </level> </level> </level> </section> <section article="gpu" article_name="Public Utilities" number="7-709" title_number="7" title_name="Gas, Electric, and Water Companies" subtitle_number="7" subtitle_name="Renewable Energy Portfolio Standard"> <level label="a"> <text>An electricity supplier may use accumulated renewable energy credits to meet the renewable energy portfolio standard, including credits created by a renewable on–site generator.</text> </level> <level label="b"> <text>A renewable energy credit may be sold or otherwise transferred.</text> </level> <level label="c"> <level label="1"> <level label="i"> <text>If an electricity supplier purchases solar renewable energy credits directly from a renewable on–site generator with a capacity that exceeds 10 kilowatts to meet the solar component of the Tier 1 renewable energy portfolio standard, the duration of the contract term for the solar renewable energy credits may not be less than 15 years.</text> </level> <level label="ii"> <text>The minimum required term under subparagraph (i) of this paragraph does not affect the ability of the parties to negotiate a price for a solar renewable energy credit that varies over time in any manner.</text> </level> </level> <level label="2"> <level label="i"> <text>An electricity supplier that purchases solar renewable energy credits from a renewable on–site generator with a capacity not exceeding 10 kilowatts shall purchase the credits with a single initial payment representing the full estimated production of the system for the life of the contract.</text> </level> <level label="ii"> <text>The Commission shall:</text> <level label="1"> <text>develop a method for estimating annual production from the type of system described in subparagraph (i) of this paragraph and allocating the credits to the electricity supplier in a manner that is consistent with the duration of the contract; and</text> </level> <level label="2"> <text>determine the rate for a payment made to a renewable on–site generator under subparagraph (i) of this paragraph.</text> </level> </level> </level> </level> <level label="d"> <level label="1"> <text>Except as authorized under paragraph (2) of this subsection, a renewable energy credit shall exist for 5 years from the date created.</text> </level> <level label="2"> <text>A renewable energy credit may be diminished or extinguished before the expiration of 5 years by:</text> <level label="i"> <text>the electricity supplier that received the credit;</text> </level> <level label="ii"> <text>a nonaffiliated entity of the electricity supplier:</text> <level label="1"> <text>that purchased the credit from the electricity supplier receiving the credit; or</text> </level> <level label="2"> <text>to whom the electricity supplier otherwise transferred the credit; or</text> </level> </level> <level label="iii"> <text>demonstrated noncompliance by the generating facility with the requirements of § 7–704(f) of this subtitle.</text> </level> </level> </level> <level label="e"> <text>Notwithstanding subsection (d)(2)(iii) of this section, and only if the demonstrated noncompliance does not result in environmental degradation, an electricity supplier that reasonably includes in its annual report under § 7–705 of this subtitle a renewable energy credit that is extinguished for noncompliance with § 7–704(f)(1) or (2) of this subtitle:</text> <level label="1"> <text>may continue to rely on that credit for that year; but</text> </level> <level label="2"> <text>for later years must:</text> <level label="i"> <text>demonstrate a return to compliance of the generating facility under § 7–704(f) of this subtitle; or</text> </level> <level label="ii"> <text>replace the credit with a renewable energy credit from another source.</text> </level> </level> </level> <level label="f"> <text>The Commission by regulation shall establish requirements for documentation and verification of renewable energy credits by licensed electricity suppliers and other generators that create and receive credits for compliance with the standards for Tier 1 renewable sources and Tier 2 renewable sources.</text> </level> </section> <section article="gpu" article_name="Public Utilities" number="7-709.1" title_number="7" title_name="Gas, Electric, and Water Companies" subtitle_number="7" subtitle_name="Renewable Energy Portfolio Standard"> <level label="a"> <level label="1"> <text>In this section the following words have the meanings indicated.</text> </level> <level label="2"> <text>“Brownfield” has the meaning stated in § 7–207 of this title.</text> </level> <level label="3"> <text>“Certified SREC” means a solar renewable energy credit generated by a certified system.</text> </level> <level label="4"> <text>“Certified system” means a solar energy generating system certified by the Commission under the Program to generate certified SRECs with the compliance value specified in subsection (c) of this section.</text> </level> <level label="5"> <text>“Program” means the Small Solar Energy Generating System Incentive Program.</text> </level> </level> <level label="b"> <text>The Commission shall establish a Small Solar Energy Generating System Incentive Program.</text> </level> <level label="c"> <level label="1"> <text>Under the Program, a certified system shall generate certified SRECs.</text> </level> <level label="2"> <text>Except as provided in paragraph (3) of this subsection, the provisions of this subtitle relating to renewable energy credits shall apply to certified SRECs.</text> </level> <level label="3"> <text>A certified SREC shall have a compliance value of 150% for electricity suppliers to put toward meeting the renewable energy portfolio standard for energy derived from solar energy under § 7–703 of this subtitle.</text> </level> </level> <level label="d"> <text>To be eligible for certification under the Program, a solar energy generating system shall:</text> <level label="1"> <text>be located in the State;</text> </level> <level label="2"> <text>be eligible for inclusion in meeting the renewable energy portfolio standard;</text> </level> <level label="3"> <text>have a generating capacity of 5 megawatts or less, as measured by the alternating current rating of the system’s inverter;</text> </level> <level label="4"> <text>be placed in service between July 1, 2024, and January 1, 2028, inclusive; and</text> </level> <level label="5"> <text>be one of the following types of systems:</text> <level label="i"> <text>a system with a generating capacity of 20 kilowatts or less, as measured by the alternating current rating of the system’s inverter;</text> </level> <level label="ii"> <text>a system with a generating capacity of 2 megawatts or less, as measured by the alternating current rating of the system’s inverter, if the system is used for aggregate net metering; or</text> </level> <level label="iii"> <text>a system with a generating capacity of between 20 kilowatts and 5 megawatts, as measured by the alternating current rating of the system’s inverter, if the system is located on or over:</text> <level label="1"> <text>a rooftop;</text> </level> <level label="2"> <text>a parking canopy;</text> </level> <level label="3"> <text>a brownfield; or</text> </level> <level label="4"> <text>a water retention pond or quarry currently or previously designated for industrial use.</text> </level> </level> </level> </level> <level label="e"> <text>Except as provided in subsection (f) of this section, the Commission, at the time of certifying a solar energy generating system as a Tier 1 renewable source, shall certify the system as eligible to generate certified SRECs in accordance with subsection (c) of this section if the applicant submits with its application for certification as a Tier 1 renewable source:</text> <level label="1"> <text>a form requesting to be certified to receive certified SRECs with the value specified in subsection (c) of this section;</text> </level> <level label="2"> <text>a copy of the interconnection agreement between the applicant and the applicant’s electric company indicating that the size of the system is eligible;</text> </level> <level label="3"> <text>if seeking certification as a system located on or over an area specified under subsection (d)(5)(iii) of this section, a copy of the final approval of the local building permit;</text> </level> <level label="4"> <text>if seeking certification as a system located on a brownfield, documentation demonstrating that the system is located on a brownfield;</text> </level> <level label="5"> <text>if seeking certification based on aggregated net metering, a copy of the aggregated net energy metering rider submitted with the interconnection agreement; and</text> </level> <level label="6"> <text>any other information required by the Commission.</text> </level> </level> <level label="f"> <level label="1"> <text>The owner of a solar energy generating system may apply to the Commission to be certified under the Program if the system meets the requirements under subsection (d) of this section.</text> </level> <level label="2"> <text>The owner of a solar energy generating system that is placed in service between July 1, 2024, and January 1, 2025, may apply to the Commission:</text> <level label="i"> <text>before January 1, 2025, for certification as a Tier 1 renewable source; and</text> </level> <level label="ii"> <text>on or after January 1, 2025, for certification under the Program.</text> </level> </level> </level> <level label="g"> <text>The total amount of in–State generating capacity for certified systems, as measured by the alternating current rating of the systems’ inverters, under the Program may not exceed:</text> <level label="1"> <text>300 megawatts for systems with a generating capacity of less than 20 kilowatts, as measured by the alternating current rating of the system’s inverter; and</text> </level> <level label="2"> <text>270 megawatts for systems with a generating capacity of between 20 kilowatts and 5 megawatts, as measured by the alternating current rating of the system’s inverter.</text> </level> </level> <level label="h"> <level label="1"> <text>At the time a solar energy generating system is certified as a Tier 1 renewable source, the owner of the system shall pay to the Commission a one–time fee of:</text> <level label="i"> <text>up to $50 for each system with a generating capacity of less than 20 kilowatts, as measured by the alternating current rating of the system’s inverter; and</text> </level> <level label="ii"> <text>up to $200 for each system with a generating capacity of more than 20 kilowatts, as measured by the alternating current rating of the system’s inverter.</text> </level> </level> <level label="2"> <text>The Commission shall use the fees collected under paragraph (1) of this subsection to pay for costs associated with administering the Program.</text> </level> </level> <level label="i"> <level label="1"> <text>A certified system shall continue to be eligible to generate certified SRECs for 15 years after the date of certification by the Commission, or January 1, 2025, whichever is later, after which the system shall be eligible to generate noncertified solar renewable energy credits as long as the system meets the requirements as a Tier 1 renewable source under this subtitle.</text> </level> <level label="2"> <text>The Commission shall:</text> <level label="i"> <text>on or before January 1, 2025, begin determining eligibility of solar energy generating systems to be certified under the Program; and</text> </level> <level label="ii"> <text>on or before July 1, 2026, implement a revised system to review and ensure compliance with the renewable energy portfolio standard.</text> </level> </level> <level label="3"> <text>An electricity supplier may apply the certified SRECs generated in accordance with this section toward the renewable energy portfolio standard starting with the 2025 compliance year.</text> </level> <level label="4"> <text>Notwithstanding any other law, the Commission shall allow electricity suppliers to demonstrate compliance with the renewable energy portfolio standard for the 2025 compliance year by submitting information between July 1, 2026, and December 31, 2026, using the revised system developed in accordance with paragraph (2)(ii) of this subsection.</text> </level> </level> </section> <section article="gpu" article_name="Public Utilities" number="7-710" title_number="7" title_name="Gas, Electric, and Water Companies" subtitle_number="7" subtitle_name="Renewable Energy Portfolio Standard"> <text>The Commission may impose an administrative fee on a renewable energy credit transaction, but the amount of the fee may not exceed the Commission’s actual direct cost of processing the transaction.</text> </section> <section article="gpu" article_name="Public Utilities" number="7-711" title_number="7" title_name="Gas, Electric, and Water Companies" subtitle_number="7" subtitle_name="Renewable Energy Portfolio Standard"> <level label="a"> <text>The Commission has the same power and authority with respect to an electricity supplier under this subtitle that the Commission has with respect to any public service company under this division for the purposes of investigating and examining the electricity supplier to determine compliance with this subtitle and with other applicable law.</text> </level> <level label="b"> <level label="1"> <text>Beginning January 1, 2008, the Commission shall designate an individual to be responsible for the oversight of compliance with the requirements of Tier 1 renewable sources that are to be derived from solar energy.</text> </level> <level label="2"> <text>The individual designated under paragraph (1) of this subsection shall:</text> <level label="i"> <text>develop the program for the requirements for Tier 1 renewable sources derived from solar energy;</text> </level> <level label="ii"> <text>provide education and outreach to promote the use of solar energy; and</text> </level> <level label="iii"> <text>make policy recommendations to the Commission regarding improving the State’s use of solar energy, including the development of clear, simple, and straightforward forms, requirements, and procedures to facilitate participation by homeowners and small businesses in deployment of solar generation in the State.</text> </level> </level> </level> </section> <section article="gpu" article_name="Public Utilities" number="7-712" title_number="7" title_name="Gas, Electric, and Water Companies" subtitle_number="7" subtitle_name="Renewable Energy Portfolio Standard"> <text>Subject to § 2–1257 of the State Government Article, on or before December 1 of each year the Commission shall report to the General Assembly on the status of implementation of this subtitle, including: </text> <level label="1"> <text>the availability of Tier 1 renewable sources;</text> </level> <level label="2"> <text>projects supported by the Fund;</text> </level> <level label="3"> <text>information regarding the status of the Small Solar Energy Generating System Incentive Program established under § 7–709.1 of this subtitle, including the total amount of generating capacity of the systems certified under the Program; and</text> </level> <level label="4"> <text>other pertinent information.</text> </level> </section> <section article="gpu" article_name="Public Utilities" number="7-713" title_number="7" title_name="Gas, Electric, and Water Companies" subtitle_number="7" subtitle_name="Renewable Energy Portfolio Standard"> <text>The Commission shall adopt regulations to implement the provisions of this subtitle.</text> </section> <section article="gpu" article_name="Public Utilities" number="7-714" title_number="7" title_name="Gas, Electric, and Water Companies" subtitle_number="7" subtitle_name="Renewable Energy Portfolio Standard"> <text>The developer of a solar energy generating system that has a generating capacity over 1 megawatt, as measured by the alternating current rating of the system’s inverter, shall ensure that workers are paid not less than the prevailing wage rate determined under Title 17, Subtitle 2 of the State Finance and Procurement Article.</text> </section> <section article="gpu" article_name="Public Utilities" number="7-801" title_number="7" title_name="Gas, Electric, and Water Companies" subtitle_number="8" subtitle_name="Electric System Planning"> <text>It is the goal of the State that the electric system support, in a cost–effective manner, the State’s policy goals with regard to:</text> <level label="1"> <text>greenhouse gas reduction;</text> </level> <level label="2"> <text>renewable energy;</text> </level> <level label="3"> <text>decreasing dependence on electricity imported from other states; and</text> </level> <level label="4"> <text>achieving energy system resiliency, efficiency, and reliability.</text> </level> </section> <section article="gpu" article_name="Public Utilities" number="7-802" title_number="7" title_name="Gas, Electric, and Water Companies" subtitle_number="8" subtitle_name="Electric System Planning"> <text>On or before December 1, 2024, and each December 1 thereafter, the Commission shall submit a report, in accordance with § 2–1257 of the State Government Article, to the General Assembly with information regarding the current status of projects designed to promote the goals identified in this section, including information on planning processes and implementation that promote, as specific goals, the following:</text> <level label="1"> <text>measures to decrease greenhouse gas emissions incident to electric distribution, including high levels of distributed energy resources and electric vehicles;</text> </level> <level label="2"> <text>giving priority to vulnerable communities in the development of distributed energy resources and electric vehicle infrastructure;</text> </level> <level label="3"> <text>energy efficiency;</text> </level> <level label="4"> <text>meeting anticipated increases in load;</text> </level> <level label="5"> <text>incorporation of energy storage technology as appropriate and prudent to:</text> <level label="i"> <text>support efficiency and reliability of the electric system; and</text> </level> <level label="ii"> <text>provide additional capacity to accommodate increased distributed renewable electricity generation in connection with electric transmission and distribution system modernization;</text> </level> </level> <level label="6"> <text>efficient management of load variability;</text> </level> <level label="7"> <text>electric system resiliency and reliability;</text> </level> <level label="8"> <text>bidirectional power flows;</text> </level> <level label="9"> <text>demand response and other nonwire and noncapital alternatives;</text> </level> <level label="10"> <text>increased use of distributed energy resources, including electric vehicles;</text> </level> <level label="11"> <text>transparent stakeholder participation in ongoing electric system planning processes; and</text> </level> <level label="12"> <text>any other issues the Commission considers appropriate.</text> </level> </section> <section article="gpu" article_name="Public Utilities" number="7-803" title_number="7" title_name="Gas, Electric, and Water Companies" subtitle_number="8" subtitle_name="Electric System Planning"> <level label="a"> <text>The General Assembly strongly encourages the electric companies of the State to pursue diligently federal funds to meet the State’s policy goals for the electric system, including funds made available under the federal Infrastructure Investment and Jobs Act or the federal Inflation Reduction Act.</text> </level> <level label="b"> <text>The Commission and the Maryland Energy Administration shall provide assistance and support to electric companies for applying for and obtaining access to federal and other available funds to meet the State’s policy goals.</text> </level> <level label="c"> <text>The Maryland Energy Administration shall identify funding sources that may be available to electric companies to implement the State’s policy goals under § 7–802 of this subtitle, including funding for:</text> <level label="1"> <text>increasing the efficiency of electric systems, including through installation and integration of energy storage devices and operational changes and upgrades;</text> </level> <level label="2"> <text>grid–hardening activities to reduce the occurrence of or consequences of events that disrupt operations of the electric system due to extreme weather or natural disasters;</text> </level> <level label="3"> <text>other electric system enhancement activities available for funding under the federal Infrastructure Investment and Jobs Act or the federal Inflation Reduction Act; and</text> </level> <level label="4"> <text>other specific activities that the Commission identifies.</text> </level> </level> <level label="d"> <text>As needed to promote the State’s policy goals under § 7–802 of this subtitle, the Commission:</text> <level label="1"> <text>shall require each electric company to report at least quarterly to the Commission and the Maryland Energy Administration on:</text> <level label="i"> <text>the funding for which the electric company has applied;</text> </level> <level label="ii"> <text>the purposes for which the funding is intended to be used;</text> </level> <level label="iii"> <text>the status of the funding applications; and</text> </level> <level label="iv"> <text>conditions that must be met to obtain the funding; and</text> </level> </level> <level label="2"> <text>shall adopt regulations or issue orders:</text> <level label="i"> <text>that require electric companies to apply for federal and other available funds in a timely manner; and</text> </level> <level label="ii"> <text>in order to ensure that least–cost debt is used.</text> </level> </level> </level> </section> <section article="gpu" article_name="Public Utilities" number="7-804" title_number="7" title_name="Gas, Electric, and Water Companies" subtitle_number="8" subtitle_name="Electric System Planning"> <level label="a"> <text>On or before December 31, 2025, the Commission shall adopt regulations or issue orders to:</text> <level label="1"> <text>implement specific policies for electric system planning;</text> </level> <level label="2"> <text>require consideration of investment in, or procurement of, cost–effective demand–side methods and technology to improve reliability and efficiency, including virtual power plants; and</text> </level> <level label="3"> <text>implement specific policies for improvements in order to promote the State’s policy goals under § 7–802 of this subtitle.</text> </level> </level> <level label="b"> <text>The regulations adopted and orders issued under subsection (a) of this section shall:</text> <level label="1"> <text>be developed with consideration given to the inherent differences, individual circumstances, and available resources among investor–owned electric companies, electric cooperatives, and municipal electric utilities; and</text> </level> <level label="2"> <text>if determined necessary by the Commission, establish separate requirements for investor–owned electric companies, electric cooperatives, and municipal electric utilities.</text> </level> </level> </section> <section article="gpu" article_name="Public Utilities" number="7-901" title_number="7" title_name="Gas, Electric, and Water Companies" subtitle_number="9" subtitle_name="Electric Vehicle Charging Infrastructure"> <level label="a"> <text>In this subtitle the following words have the meanings indicated.</text> </level> <level label="b"> <text>“EV charging network” means the total number of EV charging stations an electric company installs or maintains for public use.</text> </level> <level label="c"> <text>“EV charging station” means a connected point in an electrical wiring installation:</text> <level label="1"> <text>at which current is taken to charge a battery or any other energy storage device in an electric vehicle; and</text> </level> <level label="2"> <text>capable of providing Level 2 charging.</text> </level> </level> <level label="d"> <text>“EV Pilot Program” means the EV Pilot Program established by Public Service Commission Order No. 88997 and administered by the Commission.</text> </level> <level label="e"> <text>“Level 2 charging” means the ability to charge a battery or other energy storage device in an electric vehicle in a manner that:</text> <level label="1"> <text>is capable of using an alternating current electrical service with a minimum of 208 volts; and</text> </level> <level label="2"> <text>meets applicable industry safety standards.</text> </level> </level> <level label="f"> <text>“Underserved community” means any census tract in which, according to the most recent U.S. Census Bureau Survey:</text> <level label="1"> <text>at least 25% of the residents qualify as low–income;</text> </level> <level label="2"> <text>at least 50% of the residents identify as nonwhite; or</text> </level> <level label="3"> <text>at least 15% of the residents have limited English proficiency.</text> </level> </level> <level label="g"> <text>“Uptime” means the availability and consistency of an EV charging station in an EV charging network to successfully dispense electricity as designed, measured as a percentage of both hours and days of a calendar year.</text> </level> </section> <section article="gpu" article_name="Public Utilities" number="7-902" title_number="7" title_name="Gas, Electric, and Water Companies" subtitle_number="9" subtitle_name="Electric Vehicle Charging Infrastructure"> <text>This subtitle applies to an electric company that: </text> <level label="1"> <text>installs or maintains an EV charging station for public use; or</text> </level> <level label="2"> <text>participates in the EV Pilot Program.</text> </level> </section> <section article="gpu" article_name="Public Utilities" number="7-903" title_number="7" title_name="Gas, Electric, and Water Companies" subtitle_number="9" subtitle_name="Electric Vehicle Charging Infrastructure"> <level label="a"> <text>Subject to subsection (b) of this section, the Commission shall, by order or regulation and subject to reasonable cost limitations balanced with the public interest:</text> <level label="1"> <text>expand the EV Pilot Program to allow participating electric companies to install EV charging stations in new and existing multifamily dwellings in underserved communities; and</text> </level> <level label="2"> <text>terminate the EV Pilot Program expansion required under item (1) of this section on December 31, 2025.</text> </level> </level> <level label="b"> <text>The termination of the EV Pilot Program expansion required under subsection (a) of this section may not be construed to:</text> <level label="1"> <text>terminate an electric company’s authority to operate EV charging stations under a program approved by the Commission on or before March 1, 2023;</text> </level> <level label="2"> <text>limit an electric company’s efforts to operate and maintain EV charging stations installed under the EV Pilot Program; or</text> </level> <level label="3"> <text>impact the cost recovery by an investor–owned electric company for the lifetime of an EV charging station installed under the EV Pilot Program.</text> </level> </level> </section> <section article="gpu" article_name="Public Utilities" number="7-904" title_number="7" title_name="Gas, Electric, and Water Companies" subtitle_number="9" subtitle_name="Electric Vehicle Charging Infrastructure"> <level label="a"> <level label="1"> <text>Except as provided in paragraph (2) of this subsection, an electric company operating an EV charging network shall maintain uptime standards for each EV charging station in accordance with:</text> <level label="i"> <text>federal National Electric Vehicle Infrastructure standards and requirements; or</text> </level> <level label="ii"> <text>alternative uptime standards and requirements approved by the Commission.</text> </level> </level> <level label="2"> <text>The uptime requirement under paragraph (1) of this subsection does not include any time in which an EV charging station is unavailable due to:</text> <level label="i"> <text>force majeure, as determined by the Commission; or</text> </level> <level label="ii"> <text>vandalism.</text> </level> </level> </level> <level label="b"> <text>An electric company shall calculate EV charging station uptime on a quarterly basis for the immediately preceding 12 months.</text> </level> <level label="c"> <level label="1"> <text>An electric company that operates an EV charging station for public use shall be subject to the same reporting requirements as an electric company that receives federal funding related to electric vehicle charging infrastructure.</text> </level> <level label="2"> <text>An electric company that operates an EV charging network or EV charging station shall submit the following EV charging station data to the Commission on a quarterly basis:</text> <level label="i"> <text>the location of the EV charging station; and</text> </level> <level label="ii"> <text>for each EV charging station:</text> <level label="1"> <text>charging session start and end times;</text> </level> <level label="2"> <text>the total amount of electricity, in kilowatt–hours, dispensed to an electric vehicle for each charging session;</text> </level> <level label="3"> <text>the peak amount of electricity, in kilowatts, dispensed to an electric vehicle for each charging session;</text> </level> <level label="4"> <text>uptime for each of the previous 3 months;</text> </level> <level label="5"> <text>the cost of electricity needed to operate each EV charging station for each of the previous 3 months;</text> </level> <level label="6"> <text>maintenance and repair costs for each of the previous 3 months;</text> </level> <level label="7"> <text>the cost of acquiring real property for use as an EV charging station;</text> </level> <level label="8"> <text>the cost of acquiring and installing electric vehicle charging equipment;</text> </level> <level label="9"> <text>the cost of acquiring and installing distributed energy resources;</text> </level> <level label="10"> <text>the cost to the electric company of connecting to the electric grid and any applicable connection upgrades;</text> </level> <level label="11"> <text>the capacity, in kilowatts or kilowatt–hours as appropriate, of each type of distributed energy resource used by an EV charging station;</text> </level> <level label="12"> <text>the number of EV charging stations that failed to meet the uptime requirements under subsection (a) of this section;</text> </level> <level label="13"> <text>when applicable, the reason an EV charging station failed to meet the uptime requirements under subsection (a) of this section; and</text> </level> <level label="14"> <text>when applicable, the date an EV charging station was repaired.</text> </level> </level> </level> </level> </section> <section article="gpu" article_name="Public Utilities" number="7-905" title_number="7" title_name="Gas, Electric, and Water Companies" subtitle_number="9" subtitle_name="Electric Vehicle Charging Infrastructure"> <level label="a"> <text>An electric company participating in the EV Pilot Program shall maintain an adequate number of staff to monitor, assess, and, when necessary, repair the EV charging stations operated by the electric company.</text> </level> <level label="b"> <text>The Commission may, in accordance with § 13–201 of this article, impose a penalty on or take additional remedial action against an electric company that fails to satisfy the uptime requirements under § 7–904 of this subtitle.</text> </level> </section> <section article="gpu" article_name="Public Utilities" number="7-1001" title_number="7" title_name="Gas, Electric, and Water Companies" subtitle_number="10" subtitle_name="Electric Distribution System Support Services"> <level label="a"> <text>In this subtitle the following words have the meanings indicated.</text> </level> <level label="b"> <text>“Beneficial electrification” means replacing direct fossil fuel use with electricity.</text> </level> <level label="c"> <text>“Bidirectional electric vehicle” means an electric vehicle that is capable of both receiving and discharging electricity.</text> </level> <level label="d"> <text>“Distributed energy resource” means an energy resource located on a customer’s premises that:</text> <level label="1"> <text>produces or stores electricity; or</text> </level> <level label="2"> <text>modifies the timing or amount of the customer’s electricity consumption.</text> </level> </level> <level label="e"> <level label="1"> <text>“Electric distribution system support services” means the dispatch and control of a distributed energy resource to provide services that contribute to the efficient and reliable operation of the electric distribution system by:</text> <level label="i"> <text>an electric company; or</text> </level> <level label="ii"> <text>an aggregator acting at the direction of an electric company.</text> </level> </level> <level label="2"> <text>“Electric distribution system support services” includes:</text> <level label="i"> <text>local or system peak demand reduction;</text> </level> <level label="ii"> <text>demand response;</text> </level> <level label="iii"> <text>the avoidance or deferral of a transmission or distribution upgrade or capacity expansion; and</text> </level> <level label="iv"> <text>facilitating hosting capacity to accommodate additional distributed energy resources.</text> </level> </level> </level> <level label="f"> <text>“Eligible customer–generator” has the meaning stated in § 7–306 of this title.</text> </level> <level label="g"> <text>“Net energy metering” has the meaning stated in § 7–306 of this title.</text> </level> <level label="h"> <text>“Net excess generation” has the meaning stated in § 7–306 of this title.</text> </level> <level label="i"> <level label="1"> <text>“Renewable on–site generating system” means an energy system located on a customer’s premises that:</text> <level label="i"> <text>generates or stores electricity from a Tier 1 renewable source or a Tier 2 renewable source that does not release greenhouse gases;</text> </level> <level label="ii"> <text>is capable of providing electricity to:</text> <level label="1"> <text>a home, business, or other structure serviced by an electric company; and</text> </level> <level label="2"> <text>the electric distribution system;</text> </level> </level> <level label="iii"> <text>is paired with an energy storage device that is configured to charge from:</text> <level label="1"> <text>the renewable source; and</text> </level> <level label="2"> <text>the electric distribution system unless, for the purpose of eligibility for net energy metering, the device is required to be charged only from the renewable source; and</text> </level> </level> <level label="iv"> <text>is interconnected and operates in parallel with an electric company’s transmission and distribution facilities.</text> </level> </level> <level label="2"> <text>“Renewable on–site generating system” may include bidirectional electric vehicle service equipment located on a customer’s premises.</text> </level> </level> <level label="j"> <text>“Tier 1 renewable source” has the meaning stated in § 7–701 of this title.</text> </level> <level label="k"> <text>“Tier 2 renewable source” has the meaning stated in § 7–701 of this title.</text> </level> </section> <section article="gpu" article_name="Public Utilities" number="7-1002" title_number="7" title_name="Gas, Electric, and Water Companies" subtitle_number="10" subtitle_name="Electric Distribution System Support Services"> <text>The General Assembly finds and declares that:</text> <level label="1"> <text>well–designed time–of–use pricing of electricity can help mitigate the impacts of electrification on the electric distribution system, reduce greenhouse gas emissions during peak hours, and encourage customer adoption of beneficial electrification measures through off–peak cost savings;</text> </level> <level label="2"> <text>widespread beneficial electrification will increase demand on the electric distribution system and potentially require significant system upgrades if consumers adopting beneficial electrification measures do not engage in a form of load management to mitigate the need for system upgrades and reduce the greenhouse gas intensities associated with generation emissions during peak hours;</text> </level> <level label="3"> <text>pairing the adoption of renewable on–site generating systems with beneficial electrification measures may:</text> <level label="i"> <text>further reduce the State’s greenhouse gas emissions;</text> </level> <level label="ii"> <text>provide on–site resilience to consumers; and</text> </level> <level label="iii"> <text>facilitate load flexibility to mitigate impacts on the electric distribution system from load growth due to beneficial electrification; and</text> </level> </level> <level label="4"> <text>it is reasonable to provide additional incentives and protections to low– and moderate–income households:</text> <level label="i"> <text>to ensure access to the benefits of electrification and on–site energy systems; and</text> </level> <level label="ii"> <text>to protect those households from negative bill impacts during a transition to time–of–use rates.</text> </level> </level> </section> <section article="gpu" article_name="Public Utilities" number="7-1003" title_number="7" title_name="Gas, Electric, and Water Companies" subtitle_number="10" subtitle_name="Electric Distribution System Support Services"> <level label="a"> <level label="1"> <text>On or before July 1, 2025, each investor–owned electric company shall file with the Commission one or more time–of–use tariffs for appropriate customer classes, to be made available to customers on an opt–in basis.</text> </level> <level label="2"> <text>Each time–of–use tariff shall establish a sufficient price discount for off–peak hours compared to peak hours, as determined by the market or an investor–owned electric company’s cost of service, to encourage customers to adjust electricity use to off–peak hours.</text> </level> </level> <level label="b"> <level label="1"> <level label="i"> <text>An investor–owned electric company shall propose with each tariff or tariffs required under subsection (a) of this section a reasonable enrollment target to try to achieve by January 1, 2028.</text> </level> <level label="ii"> <text>The investor–owned electric company shall attempt to achieve the enrollment target through a combination of marketing, customer education, and other means to communicate the benefits and risks of time–of–use rates.</text> </level> </level> <level label="2"> <level label="i"> <text>The Commission may require an investor–owned electric company to automatically enroll in a time–of–use tariff customers that receive an incentive from the investor–owned electric company as part of a beneficial electrification program.</text> </level> <level label="ii"> <text>The Commission shall require an investor–owned electric company to provide to customers that are automatically enrolled in a time–of–use tariff in accordance with subparagraph (i) of this paragraph notice and an opportunity to opt out of the time–of–use tariff.</text> </level> </level> </level> <level label="c"> <text>On or before July 1, 2026, each investor–owned electric company shall submit a report to the Commission evaluating:</text> <level label="1"> <text>the potential to avoid or defer electric distribution system capital projects through the use of time–of–use rates, demand–response and demand–side programs, and renewable on–site generating systems; and</text> </level> <level label="2"> <text>the merits and feasibility of transitioning all customers to a time–of–use tariff on an opt–out basis.</text> </level> </level> <level label="d"> <text>In accordance with § 2–1257 of the State Government Article, on or before December 31, 2027, the Commission shall submit a report to the General Assembly on:</text> <level label="1"> <text>the impacts of opt–in time–of–use tariffs on the electric distribution system;</text> </level> <level label="2"> <text>the timeline, feasibility, and merits of transitioning all customers to a time–of–use tariff on an opt–out basis; and</text> </level> <level label="3"> <text>whether a full transition to time–of–use rates is justified.</text> </level> </level> <level label="e"> <text>An investor–owned electric company may recover all reasonable and prudent costs, including marketing costs, to achieve its proposed enrollment targets and execute its responsibilities in accordance with this section.</text> </level> <level label="f"> <text>For good cause shown, the Commission may delay for a reasonable period of time the deadline for an investor–owned electric company to comply with the provisions of this section.</text> </level> <level label="g"> <level label="1"> <text>A municipal electric utility or electric cooperative may file with the Commission one or more time–of–use tariffs in the same manner as an investor–owned electric company under this section.</text> </level> <level label="2"> <text>If a municipal electric utility or electric cooperative elects to file with the Commission a time–of–use tariff under this section, the provisions of this section that apply to an investor–owned electric company shall also apply to the municipal electric utility or electric cooperative.</text> </level> </level> </section> <section article="gpu" article_name="Public Utilities" number="7-1004" title_number="7" title_name="Gas, Electric, and Water Companies" subtitle_number="10" subtitle_name="Electric Distribution System Support Services"> <level label="a"> <text>On or before May 1, 2025, the Commission shall adopt regulations to:</text> <level label="1"> <text>establish expedited processes for interconnecting the following systems to the electric distribution system:</text> <level label="i"> <text>bidirectional electric vehicle systems capable of providing electricity to the electric distribution system; and</text> </level> <level label="ii"> <text>bidirectional electric vehicle systems that do not provide electricity to the electric distribution system but do provide electricity to a home, business, or other structure serviced by an investor–owned electric company; and</text> </level> </level> <level label="2"> <text>provide investor–owned electric companies with adequate time to ensure electric distribution system reliability in advance of the interconnections described in item (1) of this subsection.</text> </level> </level> <level label="b"> <text>An investor–owned electric company:</text> <level label="1"> <text>may require a customer to provide notice to the investor–owned electric company if the customer installs a bidirectional electric vehicle system described in subsection (a)(1)(ii) of this section; and</text> </level> <level label="2"> <text>shall require a customer to apply for interconnection if the customer configures a bidirectional electric vehicle system to provide electricity to the electric distribution system.</text> </level> </level> <level label="c"> <text>A municipal electric utility or an electric cooperative may comply with the requirements of subsection (b) of this section in the same manner as an investor–owned electric company.</text> </level> </section> <section article="gpu" article_name="Public Utilities" number="7-1005" title_number="7" title_name="Gas, Electric, and Water Companies" subtitle_number="10" subtitle_name="Electric Distribution System Support Services"> <level label="a"> <text>The Commission shall develop a program for each investor–owned electric company to establish a pilot program or temporary tariff to compensate owners and aggregators of distributed energy resources for electric distribution system support services through an incentive mechanism determined by the Commission.</text> </level> <level label="b"> <level label="1"> <level label="i"> <text>On or before July 1, 2025, each investor–owned electric company shall submit to the Commission for approval a pilot program or temporary tariff for electric distribution system support services that provides reasonable compensation through a mechanism determined by the Commission.</text> </level> <level label="ii"> <text>The pilot program or temporary tariff submitted under subparagraph (i) of this paragraph shall provide that electric distribution system support services to on–site energy storage devices be used for system peak reduction.</text> </level> </level> <level label="2"> <level label="i"> <text>A municipal electric utility or an electric cooperative may establish a pilot program, temporary tariff, or performance mechanism under this section.</text> </level> <level label="ii"> <text>If a municipal electric utility or electric cooperative establishes a pilot program, temporary tariff, or performance mechanism under this section, the provisions of this section and §§ 7–1006 and 7–1007 of this subtitle that apply to an investor–owned electric company shall also apply to the municipal electric utility or electric cooperative.</text> </level> </level> </level> <level label="c"> <level label="1"> <text>Notwithstanding any provision of this subtitle, an investor–owned electric company may propose and submit to the Commission a performance mechanism to cover the cost of using distributed energy resources or an aggregator of distributed energy resources under this subtitle.</text> </level> <level label="2"> <text>The Commission may approve a performance mechanism submitted under paragraph (1) of this subsection if the Commission determines that the performance mechanism is in the public interest.</text> </level> </level> <level label="d"> <level label="1"> <text>The Commission shall approve, deny, or approve with amendments a pilot program or temporary tariff submitted under this section for each investor–owned electric company in an expedited manner.</text> </level> <level label="2"> <text>If the Commission determines that transitioning a pilot program or temporary tariff to a permanent program or tariff is in the public interest, the Commission may establish a process for an investor–owned electric company to transition a pilot program or temporary tariff to a permanent program or tariff for electric distribution system support services.</text> </level> <level label="3"> <text>If the Commission determines the transition to a permanent program or tariff is in the public interest, each customer participating in a pilot program or temporary tariff approved under paragraph (1) of this subsection may be transitioned to a permanent program or tariff for electric distribution system support services when the program or tariff is approved by the Commission.</text> </level> </level> <level label="e"> <level label="1"> <text>The Commission may allow the energy generated by a renewable on–site generating system that provides electric distribution system support service under a pilot program or temporary tariff approved under subsection (d)(1) of this section to count towards the investor–owned electric company’s greenhouse emissions reduction goals under § 7–211 of this title.</text> </level> <level label="2"> <level label="i"> <text>Subject to subparagraph (ii) of this paragraph, the cumulative energy storage capacity of any energy storage devices installed on a customer’s property in accordance with this subtitle shall count towards the targets established under § 7–216.1 of this title.</text> </level> <level label="ii"> <text>Subparagraph (i) of this paragraph does not include the energy storage capacity of:</text> <level label="1"> <text>electric vehicles that are part of a renewable on–site generating system; or</text> </level> <level label="2"> <text>mobile energy storage devices.</text> </level> </level> </level> </level> <level label="f"> <text>The cumulative nameplate capacity of renewable on–site generating systems participating in a pilot program or temporary tariff approved under this section may not exceed 2% of the investor–owned electric company’s highest recorded coincident peak demand.</text> </level> </section> <section article="gpu" article_name="Public Utilities" number="7-1006" title_number="7" title_name="Gas, Electric, and Water Companies" subtitle_number="10" subtitle_name="Electric Distribution System Support Services"> <level label="a"> <level label="1"> <text>Subject to available funding, the Maryland Energy Administration, in consultation with the Commission, may offer upfront incentives or rebates to customers to acquire and install renewable on–site generating systems if the customer:</text> <level label="i"> <text>enrolls in a pilot program or temporary tariff established under § 7–1005 of this subtitle; and</text> </level> <level label="ii"> <text>allows the system to be used for electric distribution system support services for a period of not less than 5 years.</text> </level> </level> <level label="2"> <text>The Maryland Energy Administration, in consultation with the Commission, may prioritize the offer of incentives or rebates under this section to low– or moderate–income customers.</text> </level> </level> <level label="b"> <text>The Maryland Energy Administration, when approving an incentive or rebate under this section, shall ensure that the incentive or rebate is designed to supplement, to the greatest extent possible, other available State and federal incentives for customer adoption of renewable on–site generating systems.</text> </level> </section> <section article="gpu" article_name="Public Utilities" number="7-1007" title_number="7" title_name="Gas, Electric, and Water Companies" subtitle_number="10" subtitle_name="Electric Distribution System Support Services"> <level label="a"> <text>An investor–owned electric company may recover all reasonable costs incurred in participating in and administering a program under § 7–1005 of this subtitle.</text> </level> <level label="b"> <text>To the extent feasible, the costs in subsection (a) of this section shall be recovered by the investor–owned electric company within the calendar year in which those costs were incurred.</text> </level> <level label="c"> <text>Notwithstanding any provision of this subtitle, an investor–owned electric company may pursue and use a performance incentive mechanism to cover the cost of using distributed energy resources or an aggregator of distributed resources under this subtitle.</text> </level> </section> <section article="gpu" article_name="Public Utilities" number="7-1101" title_number="7" title_name="Gas, Electric, and Water Companies" subtitle_number="11" subtitle_name="Thermal Energy Network Systems"> <level label="a"> <text>In this subtitle the following words have the meanings indicated.</text> </level> <level label="b"> <text>“Administration” means the Maryland Energy Administration.</text> </level> <level label="c"> <text>“Behind–the–meter project” means a project that involves a physical, operational, or behavioral modification on the customer side of a utility meter, including replacement of appliances, retrofits, and panel upgrades.</text> </level> <level label="d"> <text>“Community benefit agreement” means an agreement applicable to the construction of any thermal energy network system and any accompanying residential electrification that:</text> <level label="1"> <text>promotes increased opportunities for local businesses and small, minority, women–owned, and veteran–owned businesses in the clean energy industry;</text> </level> <level label="2"> <text>ensures the timely, safe, and efficient completion of the project by:</text> <level label="i"> <text>facilitating a steady supply of highly skilled craft workers who shall be paid not less than the prevailing wage rate determined by the Commissioner of Labor and Industry under Title 17, Subtitle 2 of the State Finance and Procurement Article; and</text> </level> <level label="ii"> <text>guaranteeing that the construction work performed in connection with the project will be subject to an agreement that:</text> <level label="1"> <text>establishes the terms and conditions of employment at the construction site of the project or a portion of the project;</text> </level> <level label="2"> <text>guarantees against strikes, lockouts, and similar disruptions;</text> </level> <level label="3"> <text>ensures that all work on the project fully conforms to all relevant State and federal laws, rules, and regulations, including all required training for employees;</text> </level> <level label="4"> <text>creates mutually binding procedures for resolving labor disputes arising during the term of the project;</text> </level> <level label="5"> <text>sets forth other mechanisms for labor–management cooperation on matters of mutual interest and concern, including productivity, quality of work, safety, and health; and</text> </level> <level label="6"> <text>binds all contractors and subcontractors to the terms of the agreement through the inclusion of appropriate provisions in all relevant solicitation and contract documents;</text> </level> </level> </level> <level label="3"> <text>promotes safe completion of the project by ensuring that at least 80% of the craft workers on the project have completed an Occupational Safety and Health Administration 10–hour course;</text> </level> <level label="4"> <text>promotes career training opportunities in the manufacturing, maintenance, and construction industries for local residents, veterans, women, minorities, and formerly incarcerated individuals;</text> </level> <level label="5"> <text>includes provisions for local hiring and the hiring of historically disadvantaged groups;</text> </level> <level label="6"> <text>uses locally, sustainably, and domestically manufactured construction materials and components to the extent practicable;</text> </level> <level label="7"> <text>promotes the use of skilled local labor, particularly with regard to the construction and manufacturing components of the project, using methods including outreach, hiring, or referral methods that are affiliated with registered apprenticeship programs under Title 11, Subtitle 4 of the Labor and Employment Article; and</text> </level> <level label="8"> <text>authorizes the Maryland Department of Labor and the Commission to consider, review, and enforce a public service company’s compliance with any community benefit agreement.</text> </level> </level> <level label="e"> <text>“Financing Program” means the Energy Infrastructure Reinvestment category of the Title 17 Clean Energy Financing Program.</text> </level> <level label="f"> <text>“Front–of–meter project” means a project that impacts the utility side of a meter.</text> </level> <level label="g"> <text>“Geothermal borehole” means a geothermal shaft drilled into the earth for use in a system that uses the thermal properties of the earth or groundwater to heat or cool buildings.</text> </level> <level label="h"> <text>“Greenhouse Gas Reduction Fund” means the Greenhouse Gas Reduction Fund under the federal Inflation Reduction Act of 2022.</text> </level> <level label="i"> <text>“Learning From the Ground Up” means the Learning From the Ground Up research team formed by the Home Energy Efficiency Team.</text> </level> <level label="j"> <text>“Low or moderate income housing” has the meaning stated in § 7–703(f)(1)(iii) of this title.</text> </level> <level label="k"> <text>“Pilot system” means a pilot thermal energy network system developed by a gas company to replace gas infrastructure with a thermal energy network system.</text> </level> <level label="l"> <text>“PJM capacity market” means the capacity market of PJM Interconnection, LLC or any successor organization that services the PJM region.</text> </level> <level label="m"> <text>“Thermal energy network system” means a system:</text> <level label="1"> <text>of closed loop underground piping infrastructure, including geothermal boreholes, leading up to a utility meter for the conveyance or storage of renewable, nongreenhouse gas–emitting thermal energy; and</text> </level> <level label="2"> <text>that creates a network of customers with thermal energy for heating and cooling through noncombusting electric heat pumps.</text> </level> </level> </section> <section article="gpu" article_name="Public Utilities" number="7-1102" title_number="7" title_name="Gas, Electric, and Water Companies" subtitle_number="11" subtitle_name="Thermal Energy Network Systems"> <level label="a"> <level label="1"> <level label="i"> <text>On or before October 1, 2024, each gas company that serves at least 75,000 customers in its distribution territory shall:</text> <level label="1"> <text>begin to develop a plan for a pilot system or systems; and</text> </level> <level label="2"> <text>file notice with the Commission that the company has begun plan development.</text> </level> </level> <level label="ii"> <text>On or before October 1, 2024, a gas company that serves fewer than 75,000 customers in its distribution territory may develop a plan for a pilot system or systems in accordance with the requirements of this section.</text> </level> </level> <level label="2"> <text>In developing a plan for a pilot system, a gas company shall coordinate with community groups, local governments, any certified representatives of the employees of the gas company, the Commission, the Administration, and any other groups the gas company considers necessary to allow for diverse design among pilot systems.</text> </level> <level label="3"> <text>Each gas company shall include in the notice filed under paragraph (1) of this subsection:</text> <level label="i"> <text>details of any coordination with community groups, local governments, certified representatives of the employees of the gas company, the Commission, the Administration, and any other groups the gas company considers necessary to allow for diverse design among pilot systems; and</text> </level> <level label="ii"> <text>any letters of support from interested groups.</text> </level> </level> </level> <level label="b"> <level label="1"> <level label="i"> <text>On or before July 1, 2025, each gas company that serves at least 75,000 customers in its distribution territory shall submit either one or two proposals for a pilot system to the Commission for approval.</text> </level> <level label="ii"> <text>A gas company that serves fewer than 75,000 customers in its distribution territory may submit a proposal for a pilot system to the Commission after providing at least 60 days’ notice to the Commission of the company’s intent to file a proposal.</text> </level> </level> <level label="2"> <text>A proposal for a pilot system shall ensure that at least 80% of its customers are from low or moderate income housing.</text> </level> <level label="3"> <text>A customer may choose to opt out of a pilot system before the proposal for the pilot system is submitted.</text> </level> <level label="4"> <text>Each proposal for a pilot system shall demonstrate that the gas company has obtained, or is reasonably certain to obtain, any available federal funding in the form of a match, grant, loan, or tax credit, including those established under the Financing Program and the Greenhouse Gas Reduction Fund.</text> </level> <level label="5"> <text>Each gas company is responsible for ensuring that each proposal submitted by the gas company complies with all applicable federal statutes, regulations, and guidance relating to any federal funding.</text> </level> <level label="6"> <text>Each proposal shall address:</text> <level label="i"> <text>how the pilot system will develop useful information for the adoption of regulations governing thermal energy network systems;</text> </level> <level label="ii"> <text>how the pilot system furthers greenhouse gas emissions reduction goals;</text> </level> <level label="iii"> <text>how the pilot system advances financial and technical approaches to equitable and affordable building electrification;</text> </level> <level label="iv"> <text>how the pilot system creates benefits to its customers, employees, and society at large, including public health benefits, quality job retention or creation, reliability, and increased affordability of renewable thermal energy options;</text> </level> <level label="v"> <text>how the pilot system contributes to avoiding costs to electric distribution and transmission systems that would otherwise be required for electrification by comparing the proposed system to the cost of electrification using the most widely commercially available air–source heat pumps;</text> </level> <level label="vi"> <text>how the pilot system contributes to avoiding costs related to gas pipe replacement;</text> </level> <level label="vii"> <text>the extent to which the proposal gives priority to underserved or overburdened communities as defined in § 1–701(a) of the Environment Article;</text> </level> <level label="viii"> <text>the pilot system’s ability to bid demand reduction into the PJM capacity market;</text> </level> <level label="ix"> <text>neighborhoods at the end point of a gas system where a full transition from gas systems to electrification could be facilitated within the pilot period or within 5 years after the pilot period concludes;</text> </level> <level label="x"> <text>safety;</text> </level> <level label="xi"> <text>reliability;</text> </level> <level label="xii"> <text>environmental acceptability of the fluid technology employed;</text> </level> <level label="xiii"> <text>operations;</text> </level> <level label="xiv"> <text>maintenance;</text> </level> <level label="xv"> <text>customer complaint resolution;</text> </level> <level label="xvi"> <text>emergency response;</text> </level> <level label="xvii"> <text>points of interconnection between the gas company and homeowner for any fluid transfer;</text> </level> <level label="xviii"> <text>technology to be used to shut off fluid flow to customers;</text> </level> <level label="xix"> <text>customer service termination in the event of bill nonpayment;</text> </level> <level label="xx"> <text>life expectancy of the geothermal system;</text> </level> <level label="xxi"> <text>the extent to which the proposal is cost–effective for ratepayers; and</text> </level> <level label="xxii"> <text>any other requirements as determined by the Commission.</text> </level> </level> <level label="7"> <text>Each proposal shall include:</text> <level label="i"> <text>a proposed rate structure for the pilot system that is projected to ensure that any customer participating in the pilot system does not pay more for utilities than if the customer had not participated; and</text> </level> <level label="ii"> <text>a proposed set of measurements of energy units and accounting standards.</text> </level> </level> <level label="8"> <level label="i"> <text>A municipal corporation, county, or community organization may submit neighborhoods to gas companies for consideration as part of a pilot system.</text> </level> <level label="ii"> <text>A municipal corporation, county, or community organization that submits a neighborhood to a gas company for consideration as part of a pilot system under subparagraph (i) of this paragraph shall submit a copy of its proposal to the Commission.</text> </level> </level> </level> <level label="c"> <level label="1"> <text>On or before December 31, 2025, the Commission may approve, approve with modifications, or reject a proposal.</text> </level> <level label="2"> <text>Subject to paragraph (3) of this subsection, if the Commission determines that a proposal is in the public interest and is cost–effective, the Commission may approve, approve with modifications, or reject the proposal.</text> </level> <level label="3"> <level label="i"> <text>In determining whether to approve, approve with modifications, or reject a proposal, the Commission shall:</text> <level label="1"> <text>consider the projected costs and benefits of the projects proposed for inclusion in the pilot system by using a test that includes:</text> </level> <level label="A"> <text>societal costs and benefits; and</text> </level> <level label="B"> <text>avoided energy and infrastructure investments;</text> </level> <level label="2"> <text>determine whether the pilot system is in the public interest and in the interest of ratepayers;</text> </level> <level label="3"> <text>determine how each pilot system’s performance will be evaluated during the pilot system’s duration;</text> </level> <level label="4"> <text>ensure that each pilot system:</text> </level> <level label="A"> <text>has a provision for customers who may wish to opt out during the course of the pilot period; and</text> </level> <level label="B"> <text>details ratepayer impacts for pilot system participants and all customers in the gas company’s service territory; and</text> </level> <level label="5"> <text>determine whether the proposal is cost–effective in accordance with subparagraph (ii) of this paragraph.</text> </level> </level> <level label="ii"> <text>A proposal under this section is cost–effective if the Commission determines that:</text> <level label="1"> <text>the projected benefits are greater than the projected costs for all ratepayers in the gas company’s service territory;</text> </level> <level label="2"> <text>the gas company has obtained, or is reasonably certain to obtain, federal funding under the Financing Program or the Greenhouse Gas Reduction Fund to support the costs of a pilot system; and</text> </level> <level label="3"> <text>the federal funding that the gas company has obtained, or is reasonably certain to obtain, to support the costs of a pilot system would not be more cost–effective in meeting other greenhouse gas reduction or electrification measures in the State.</text> </level> </level> </level> <level label="4"> <level label="i"> <text>Except as provided in subparagraph (ii) of this paragraph, each gas company shall complete construction of a pilot system within 1 year after the Commission approves the system.</text> </level> <level label="ii"> <text>The Commission may extend the deadline under subparagraph (i) of this paragraph for good cause shown.</text> </level> </level> <level label="5"> <text>If the Commission approves a proposal with modifications, the Commission shall give the gas company a reasonable amount of time to make the necessary modifications.</text> </level> <level label="6"> <text>On completion of a pilot system, the gas company shall file with the Commission for evaluation any information relevant to the criteria established under paragraph (3) of this subsection.</text> </level> </level> <level label="d"> <level label="1"> <text>Each pilot system shall meet the requirements for pilot systems under this subtitle for 2 years after the pilot system is initiated and operational.</text> </level> <level label="2"> <level label="i"> <text>Once the 2–year period under paragraph (1) of this subsection has passed, the Commission, in consultation with the Administration, the Office of People’s Counsel, the electric, gas, or water company that owns and manages the pilot system, a certified representative of the employees of the electric company, gas company, or water company that owns and manages the pilot system, and participating customers, shall determine whether to make the pilot system permanent.</text> </level> <level label="ii"> <text>A pilot system made permanent under subparagraph (i) of this paragraph shall continue to meet the requirements placed on pilot systems under this subtitle.</text> </level> <level label="iii"> <text>If a determination is made that a pilot system will not be made permanent under subparagraph (i) of this paragraph, the Commission may approve recovery of all prudently incurred costs necessary for a gas company to comply with the determination.</text> </level> </level> <level label="3"> <text>The Commission shall adopt regulations addressing the decommissioning or discontinuance of a pilot system, including regulations ensuring that the customers who participated in the pilot system do not incur additional expenses for the decommissioning or installation of an appliance that is used in the pilot system and is decommissioned before the end of its useful life.</text> </level> </level> <level label="e"> <level label="1"> <text>Each gas company implementing a pilot system shall participate in standardized data collection coordinated by the Commission.</text> </level> <level label="2"> <text>Any standardized data collected under paragraph (1) of this subsection shall:</text> <level label="i"> <text>be filed with the Commission by the appropriate gas company; and</text> </level> <level label="ii"> <text>include data from the Learning From the Ground Up and any other national research project for the development of thermal energy network systems that the Commission considers appropriate.</text> </level> </level> </level> <level label="f"> <level label="1"> <text>The Administration shall provide funding in the form of grants to community–based organizations that perform outreach in neighborhoods to increase participation in a pilot system and coordinate the implementation of an approved pilot system.</text> </level> <level label="2"> <text>The Administration may provide up to $1,000,000 in funding to a community–based organization under paragraph (1) of this subsection.</text> </level> <level label="3"> <text>Funding under this subsection may be provided only before October 1, 2025.</text> </level> <level label="4"> <text>Funding under this subsection may be provided from the Strategic Energy Investment Fund established under § 9–20B–05 of the State Government Article or any other source of State or federal funding.</text> </level> </level> <level label="g"> <level label="1"> <text>A gas company may request approval from the Commission to track the costs of developing a proposal under this section.</text> </level> <level label="2"> <text>A request under paragraph (1) of this subsection shall include a proposed development plan and budget.</text> </level> <level label="3"> <text>The Commission shall approve a request under paragraph (1) of this subsection on finding that the proposed plan and costs are necessary to meet the requirements under this section, reasonable, and in the public interest.</text> </level> <level label="4"> <text>At a gas company’s next rate case proceeding following the approval of a request under this subsection, the Commission may authorize recovery of prudently incurred costs associated with developing the proposal and any carrying costs that the Commission determines are appropriate.</text> </level> </level> </section> <section article="gpu" article_name="Public Utilities" number="7-1103" title_number="7" title_name="Gas, Electric, and Water Companies" subtitle_number="11" subtitle_name="Thermal Energy Network Systems"> <level label="a"> <level label="1"> <level label="i"> <text>The Administration shall coordinate funding sources, including all available federal funding, philanthropic funding, funding available under the EmPOWER Maryland Program, and Strategic Energy Investment Fund funding allocated to energy efficiency, to assist an electric company, a gas company, or a water company in covering the costs for all behind–the–meter projects, including full electrification, associated with a thermal energy network system so that any affected residential customers are not required to pay for connection to the thermal energy network system or any appliance replacements required for electrification.</text> </level> <level label="ii"> <text>Funds from the federal Inflation Reduction Act may not exceed:</text> <level label="1"> <text>$14,000 per residential unit; and</text> </level> <level label="2"> <text>$9,000,000 in total.</text> </level> </level> </level> <level label="2"> <level label="i"> <text>Unless precluded by federal law, regulation, or program requirement guidelines, the Administration shall reserve $9,000,000 of federal funding from the U.S. Department of Energy to ensure adequate funding for any appliances installed in connection with a pilot system.</text> </level> <level label="ii"> <text>Funds reserved under subparagraph (i) of this paragraph shall be allocated not later than June 30, 2028, and spent not later than June 30, 2030.</text> </level> </level> <level label="3"> <text>The Administration shall coordinate with the Department of Housing and Community Development to provide services or funding for weatherization for all low or moderate income housing within the pilot system’s area.</text> </level> <level label="4"> <text>In providing funding made available under the federal Inflation Reduction Act of 2022 for behind–the–meter projects, the Administration shall give priority to low and moderate income housing.</text> </level> </level> <level label="b"> <text>A gas company implementing a pilot system shall:</text> <level label="1"> <text>be responsible for construction, including any necessary renovations, for behind–the–meter projects relating to any appliance or panel replacements or upgrades necessary to connect to a thermal energy network system and operate without gas;</text> </level> <level label="2"> <text>pursue all tax credits and federal funding available for front–of–meter and behind–the–meter projects; and</text> </level> <level label="3"> <text>coordinate with the Administration to access funds available under the federal Inflation Reduction Act, rebates and credits available under the EmPOWER Maryland Program, and any other available funds.</text> </level> </level> <level label="c"> <level label="1"> <text>An electric company, a gas company, or a water company that owns and manages a pilot system shall pay for any cost not covered by the funds and tax credits specified in subsections (a) and (b) of this section.</text> </level> <level label="2"> <text>Subject to subsection (d) of this section, any costs incurred by an electric company, a gas company, or a water company after all funds and tax credits specified under subsections (a) and (b) of this section have been applied may be recovered within 1 year of incurring the costs through rate adjustments or another mechanism approved by the Commission.</text> </level> </level> <level label="d"> <text>If an electric company, a gas company, or a water company is required to own behind–the–meter infrastructure for a specified period of time to qualify for a funding source specified under subsection (a)(1)(i) of this section:</text> <level label="1"> <text>the cost associated with the behind–the–meter infrastructure shall be recovered within the specified ownership period required for the funding;</text> </level> <level label="2"> <text>the electric company, gas company, or water company shall maintain the behind–the–meter infrastructure during the specified ownership period required for the funding; and</text> </level> <level label="3"> <text>ownership of the behind–the–meter infrastructure shall transfer to the electric, gas, or water customer who the infrastructure was installed to benefit when the specified ownership period required for the funding lapses.</text> </level> </level> <level label="e"> <text>Nothing in this section may be construed to authorize or prohibit an electric company, a gas company, or a water company from recovering costs of behind–the–meter infrastructure that does not meet the requirements of this subtitle.</text> </level> </section> <section article="gpu" article_name="Public Utilities" number="7-1104" title_number="7" title_name="Gas, Electric, and Water Companies" subtitle_number="11" subtitle_name="Thermal Energy Network Systems"> <level label="a"> <text>For any front–of–meter or behind–the–meter projects related to the construction of any thermal energy network system under this subtitle, an electric company, a gas company, or a water company shall:</text> <level label="1"> <text>work with employees already under contract with the company; or</text> </level> <level label="2"> <text>use qualified contractors that abide by a community benefit agreement.</text> </level> </level> <level label="b"> <text>An electric company, a gas company, or a water company shall give its employee bargaining unit an opportunity to work on any front–of–meter or behind–the–meter projects related to the construction of any thermal energy network system.</text> </level> <level label="c"> <level label="1"> <text>An electric company, a gas company, or a water company operating a thermal energy network system shall provide its employee bargaining unit an opportunity to provide maintenance and operations for any thermal energy network system.</text> </level> <level label="2"> <level label="i"> <text>Subject to subparagraph (ii) of this paragraph, an electric company, a gas company, or a water company may contract any work under this subtitle not conducted by the company’s employee bargaining unit to a qualified contractor.</text> </level> <level label="ii"> <text>An electric company, a gas company, or a water company shall require a contractor or subcontractor on a project under this subtitle to:</text> <level label="1"> <text>pay the area prevailing wage rate determined by the Commissioner of Labor and Industry, including wages and fringe benefits;</text> </level> <level label="2"> <text>offer health care and retirement benefits to the employees working on the project;</text> </level> <level label="3"> <text>participate in an apprenticeship program registered with the State or the U.S. Department of Labor;</text> </level> <level label="4"> <text>establish and execute a plan for outreach, recruitment, and retention of State residents to perform work on the project, with an aspirational goal of 25% of total work hours performed by Maryland residents, including residents who are:</text> </level> <level label="A"> <text>returning citizens;</text> </level> <level label="B"> <text>women;</text> </level> <level label="C"> <text>minority individuals; or</text> </level> <level label="D"> <text>veterans;</text> </level> <level label="5"> <text>have been in compliance with federal, State, and local wage and hour laws for the previous 3 years;</text> </level> <level label="6"> <text>be subject to all State reporting and compliance requirements;</text> </level> <level label="7"> <text>maintain all appropriate licenses in good standing; and</text> </level> <level label="8"> <text>establish and execute a plan to meet or exceed the minority business enterprise participation goals established under subsection (d)(3) of this section.</text> </level> </level> </level> </level> <level label="d"> <level label="1"> <text>The findings and evidence relied on by the General Assembly for the continuation of the Minority Business Enterprise Program under Title 14, Subtitle 3 of the State Finance and Procurement Article are incorporated in this subsection.</text> </level> <level label="2"> <text>To the extent practicable and authorized by the U.S. Constitution, an approved pilot system applicant and the Maryland Environmental Service shall comply with the State’s Minority Business Enterprise Program.</text> </level> <level label="3"> <level label="i"> <text>Within 6 months after the approval of a pilot system under § 7–1102(c) of this subtitle, the Governor’s Office of Small, Minority, and Women Business Affairs, in consultation with the Office of the Attorney General and the gas company operating the approved pilot system, shall establish a clear plan for setting reasonable and appropriate minority business enterprise participation goals and procedures for the pilot system.</text> </level> <level label="ii"> <text>To the extent practicable, the goals and procedures specified in subparagraph (i) of this paragraph shall be based on the requirements of Title 14, Subtitle 7 of the State Finance and Procurement Article and the regulations implementing that subtitle.</text> </level> </level> <level label="4"> <level label="i"> <text>A gas company operating a pilot system and the Maryland Environmental Service shall submit an annual report on minority enterprise participation to the Commission.</text> </level> <level label="ii"> <text>The Commission shall provide any reports received under subparagraph (i) of this paragraph to the General Assembly, in accordance with § 2–1257 of the State Government Article.</text> </level> </level> </level> </section> <section article="gpu" article_name="Public Utilities" number="7-1105" title_number="7" title_name="Gas, Electric, and Water Companies" subtitle_number="11" subtitle_name="Thermal Energy Network Systems"> <level label="a"> <text>An electric company, a gas company, or a water company may own, manage, and recover costs associated with a thermal energy network system subject to the approval of the Commission.</text> </level> <level label="b"> <text>An electric company, a gas company, or a water company may drill a geothermal borehole in a public utility right–of–way where feasible to meet the requirements of this subtitle.</text> </level> </section> <section article="gpu" article_name="Public Utilities" number="7-1106" title_number="7" title_name="Gas, Electric, and Water Companies" subtitle_number="11" subtitle_name="Thermal Energy Network Systems"> <text>The Commission may retain independent consultants and experts to:</text> <level label="1"> <text>assist the Commission with its evaluation of pilot system applications under § 7–1102(c) of this subtitle; and</text> </level> <level label="2"> <text>support the Commission in the completion of any requirements under this subtitle.</text> </level> </section> <section article="gpu" article_name="Public Utilities" number="7-1201" title_number="7" title_name="Gas, Electric, and Water Companies" subtitle_number="12" subtitle_name="Energy Solicitation and Procurement"> <level label="a"> <text>In this part the following words have the meanings indicated.</text> </level> <level label="b"> <text>“Dispatchable energy generation” means a generating station or energy storage device with:</text> <level label="1"> <text>an effective load carrying capability of at least 65%, as determined by PJM Interconnection’s most recent ELCC Class Ratings; and</text> </level> <level label="2"> <text>a lower greenhouse gas emissions profile than coal or oil energy generating stations.</text> </level> </level> <level label="c"> <text>“Effective load carrying capability” or “ELCC” means the expected capacity contribution of an energy resource during PJM Interconnection’s operating hours when there is high electricity demand and low resource output.</text> </level> <level label="d"> <text>“Effective nameplate capacity” means the amount of energy an energy storage device can deliver continuously to the electric system over a period of at least 4 hours.</text> </level> <level label="e"> <text>“Energy storage device” has the meaning stated in § 7–216 of this title.</text> </level> <level label="f"> <text>“Generating station” has the meaning stated in § 7–207 of this title.</text> </level> <level label="g"> <text>“Large capacity energy resource” means a generating station or energy storage device that has a capacity rating equal to or greater than 20 megawatts after accounting for the effective load carrying capability.</text> </level> </section> <section article="gpu" article_name="Public Utilities" number="7-1202" title_number="7" title_name="Gas, Electric, and Water Companies" subtitle_number="12" subtitle_name="Energy Solicitation and Procurement"> <level label="a"> <text>An application for a proposed project under Parts III and IV of this subtitle is subject to a community benefit agreement.</text> </level> <level label="b"> <text>A community benefit agreement shall:</text> <level label="1"> <text>promote increased opportunities for local businesses and small, minority, women–owned, and veteran–owned businesses in the clean energy industry;</text> </level> <level label="2"> <text>ensure the timely, safe, and efficient completion of the project by:</text> <level label="i"> <text>facilitating a steady supply of highly skilled craft workers who shall be paid not less than the prevailing wage rate determined by the Commissioner of Labor and Industry under Title 17, Subtitle 2 of the State Finance and Procurement Article; and</text> </level> <level label="ii"> <text>guaranteeing that the construction work performed in connection with the project will be subject to an agreement that:</text> <level label="1"> <text>establishes the terms and conditions of employment at the construction site of the project or a portion of the project;</text> </level> <level label="2"> <text>guarantees against strikes, lockouts, and similar disruptions;</text> </level> <level label="3"> <text>ensures that all work on the project fully conforms to all relevant State and federal laws, rules, and regulations, including all required training for employees;</text> </level> <level label="4"> <text>creates mutually binding procedures for resolving labor disputes arising during the term of the dispatchable energy generation project;</text> </level> <level label="5"> <text>sets forth other mechanisms for labor–management cooperation on matters of mutual interest and concern, including productivity, quality of work, safety, and health; and</text> </level> <level label="6"> <text>binds all contractors and subcontractors to the terms of the agreement through the inclusion of appropriate provisions in all relevant solicitation and contract documents;</text> </level> </level> </level> <level label="3"> <text>promote safe completion of the project by ensuring that at least 80% of the craft workers on the project have completed a 10–hour Occupational Safety and Health Administration course;</text> </level> <level label="4"> <text>promote career training opportunities in the manufacturing, maintenance, and construction industries for local residents, veterans, women, minorities, and formerly incarcerated individuals;</text> </level> <level label="5"> <text>include provisions for local hiring and the hiring of historically disadvantaged groups;</text> </level> <level label="6"> <text>use locally, sustainably, and domestically manufactured construction materials and components to the extent practicable;</text> </level> <level label="7"> <text>require the use of skilled local labor, particularly with regard to the construction and manufacturing components of the project, using methods including outreach, hiring, and referral methods that are affiliated with registered apprenticeship programs under Title 11, Subtitle 4 of the Labor and Employment Article; and</text> </level> <level label="8"> <text>authorize the Maryland Department of Labor and the Commission to consider, review, and enforce a storage developer or energy developer’s compliance with any community benefit agreement.</text> </level> </level> </section> <section article="gpu" article_name="Public Utilities" number="7-1203" title_number="7" title_name="Gas, Electric, and Water Companies" subtitle_number="12" subtitle_name="Energy Solicitation and Procurement"> <text>The Commission may contract for the services of independent consultants and experts to implement and execute any part of this subtitle.</text> </section> <section article="gpu" article_name="Public Utilities" number="7-1206" title_number="7" title_name="Gas, Electric, and Water Companies" subtitle_number="12" subtitle_name="Energy Solicitation and Procurement"> <level label="a"> <level label="1"> <text>On or before October 1, 2025, and at other times as provided in subsection (b) of this section, the Commission shall issue one or more solicitations for proposals for the construction or expansion of:</text> <level label="i"> <text>dispatchable energy generation; and</text> </level> <level label="ii"> <text>large capacity energy resources.</text> </level> </level> <level label="2"> <text>The Commission shall set the closing date for the solicitation period to be not sooner than 30 days after issuing the request for proposals under paragraph (1) of this subsection.</text> </level> </level> <level label="b"> <text>The Commission may provide for an additional solicitation period if the capacity specified under § 7–1208(d)(1) of this subtitle has not been met during the initial solicitation period.</text> </level> <level label="c"> <text>The Commission shall provide to the Power Plant Research Program a copy of each proposal received in response to the solicitation.</text> </level> <level label="d"> <level label="1"> <text>Except as provided in paragraph (2) of this subsection, the Commission may not approve or develop a financial commitment for the costs related to the construction or operation of a dispatchable energy generation project or large capacity energy resource project approved in accordance with this part.</text> </level> <level label="2"> <text>A dispatchable energy generation project or large capacity energy resource project approved in accordance with this part may participate in other processes under which ratepayer funds are awarded to dispatchable energy generation or large capacity energy resources.</text> </level> </level> </section> <section article="gpu" article_name="Public Utilities" number="7-1207" title_number="7" title_name="Gas, Electric, and Water Companies" subtitle_number="12" subtitle_name="Energy Solicitation and Procurement"> <text>The Commission shall include specifications in a solicitation issued under § 7–1206 of this subtitle that require each proposal for a dispatchable energy generation project and large capacity energy resource project to:</text> <level label="1"> <text>if the project is a natural gas energy generating station, ensure that the project can be converted to use only hydrogen or a zero–emissions biofuel as the energy source when the Commission determines that the conversion is feasible;</text> </level> <level label="2"> <text>include a detailed description of the timeline for construction of the project, including:</text> <level label="i"> <text>identifying the entity that has ownership or site control of the project site;</text> </level> <level label="ii"> <text>queue position for PJM approval;</text> </level> <level label="iii"> <text>the ability to procure materials, including turbines and other pipeline materials; and</text> </level> <level label="iv"> <text>any information that demonstrates the applicant’s:</text> <level label="1"> <text>readiness to apply for a certificate of public convenience and necessity under § 7–207 or § 7–207.4 of this title as soon as is reasonably feasible after receiving approval for the project, including the anticipated application date; and</text> </level> <level label="2"> <text>ability to develop the project within the timeline presented;</text> </level> </level> </level> <level label="3"> <text>include a description of the location of the project site, including:</text> <level label="i"> <text>the proximity of the site to existing transmission lines and rights–of–way; and</text> </level> <level label="ii"> <text>whether the project would be retrofitting a current or previous generating station site;</text> </level> </level> <level label="4"> <text>if applicable, include a description of:</text> <level label="i"> <text>the type and amount of co–located energy generation from Tier 1 renewable sources, as defined in § 7–701 of this title, that would be used with the project;</text> </level> <level label="ii"> <text>the amount of co–located energy storage that would be used with the project;</text> </level> <level label="iii"> <text>the use of carbon capture or sequestration technology to mitigate greenhouse gas emissions from the project; and</text> </level> <level label="iv"> <text>the amount of hydrogen or zero–emissions biofuels that the project will mix with natural gas for energy generation; and</text> </level> </level> <level label="5"> <text>state the emissions intensity of the generation output over the life of the project.</text> </level> </section> <section article="gpu" article_name="Public Utilities" number="7-1208" title_number="7" title_name="Gas, Electric, and Water Companies" subtitle_number="12" subtitle_name="Energy Solicitation and Procurement"> <level label="a"> <level label="1"> <text>Within 45 days after the closing date for the solicitation period set in accordance with § 7–1206 of this subtitle or sooner as determined by the Commission, the Power Plant Research Program shall recommend to the Commission proposals to be authorized to utilize the expedited certificate of public convenience and necessity process under § 7–207.4 of this title.</text> </level> <level label="2"> <text>The Power Plant Research Program shall base its recommendations on the information in the proposals received and the specifications listed in §§ 7–1207 and 7–1209 of this subtitle.</text> </level> </level> <level label="b"> <text>Subject to subsection (c) of this section and after considering the recommendations of the Power Plant Research Program made under subsection (a) of this section, unless the Commission grants a request for an extension for good cause, not later than 60 days after the close of the solicitation period the Commission shall approve, conditionally approve, or deny a proposal submitted in response to a solicitation issued under § 7–1206 of this subtitle.</text> </level> <level label="c"> <text>In addition to the criteria specified in § 7–1207 of this subtitle, the Commission shall determine which proposals to approve based on the factors and requirements specified in § 7–1209 of this subtitle.</text> </level> <level label="d"> <level label="1"> <text>Subject to paragraph (2) of this subsection, the combined total capacity of dispatchable energy generation projects and large capacity energy resource projects approved under this section shall be greater than the combined summer peak capacity profile of coal and oil energy generating stations in the State as outlined under Table 9 of the Commission’s Ten–Year Plan (2024–2033) of Electric Companies in Maryland.</text> </level> <level label="2"> <text>The combined total capacity of natural gas dispatchable energy generation projects and large capacity energy resource projects approved under this section may not exceed the combined summer peak capacity profile of coal and oil energy generating stations in the State as outlined under Table 9 of the Commission’s Ten–Year Plan (2024–2033) of Electric Companies in Maryland.</text> </level> </level> <level label="e"> <text>Every 5 years after the date that a natural gas dispatchable energy generation project or large capacity energy resource project becomes operational under a certificate of public convenience and necessity issued under § 7–207.4 of this title, the owner or operator of the natural gas dispatchable energy generation or large capacity energy resource shall submit to the Commission a report regarding the feasibility of converting the natural gas dispatchable energy generation or large capacity energy resource to the use of only hydrogen or zero–emissions biofuel.</text> </level> <level label="f"> <text>An approval or conditional approval of a project under this section does not guarantee that the project will be issued a certificate of public convenience and necessity under § 7–207 or § 7–207.4 of this title.</text> </level> </section> <section article="gpu" article_name="Public Utilities" number="7-1209" title_number="7" title_name="Gas, Electric, and Water Companies" subtitle_number="12" subtitle_name="Energy Solicitation and Procurement"> <level label="a"> <level label="1"> <text>Except as provided in paragraph (2) of this subsection and subject to paragraph (3) of this subsection, the Commission may approve up to 10 proposals to be eligible to undergo the expedited certificate of public convenience and necessity process under § 7–207.4 of this title.</text> </level> <level label="2"> <text>The Commission may approve more than 10 proposals to be eligible to undergo the expedited certificate of public convenience and necessity process under § 7–207.4 of this title only if the Commission determines that:</text> <level label="i"> <text>the Commission has sufficient resources to complete that number of expedited reviews of applications for a certificate of public convenience and necessity under § 7–207.4 of this title; and</text> </level> <level label="ii"> <text>the number of expedited reviews of applications for a certificate of public convenience and necessity under § 7–207.4 of this title is in the public interest.</text> </level> </level> <level label="3"> <text>If not more than 10 projects respond to a solicitation issued under § 7–1206 of this subtitle, the Commission shall approve, subject to § 7–1208(d)(2) of this subtitle, all projects that apply for the solicitation.</text> </level> </level> <level label="b"> <level label="1"> <text>For the purpose of this subsection, a transmission energy storage device shall be considered a non–emissions–emitting project.</text> </level> <level label="2"> <text>Subject to paragraph (3) of this subsection, the Commission shall approve 4 non–emissions–emitting projects to every 1 emissions–emitting project.</text> </level> <level label="3"> <text>The Commission may waive the requirement under paragraph (2) of this subsection if a sufficient number of applications for projects that meet the requirement are not received.</text> </level> </level> <level label="c"> <level label="1"> <text>In determining which proposals to approve, the Commission shall prioritize dispatchable energy generation projects over large capacity energy resources.</text> </level> <level label="2"> <text>In addition to the prioritization in paragraph (1) of this subsection, if the Commission receives more than 10 proposals or determines that more than 10 proposals may be approved under § 7–1208 of this subtitle, the Commission shall base the approvals on:</text> <level label="i"> <text>which projects will provide the highest capacity value to the State;</text> </level> <level label="ii"> <text>the timeliness of a project to begin construction;</text> </level> <level label="iii"> <text>the timeliness of a project to begin operation; and</text> </level> <level label="iv"> <text>which projects have the lowest emissions intensity.</text> </level> </level> </level> <level label="d"> <text>The Commission shall determine when the proceedings for a certificate of public convenience and necessity under § 7–207.4 of this title will begin for a proposal approved under this part.</text> </level> <level label="e"> <text>The Commission may contract for the services of independent consultants and experts in evaluating and comparing whether a proposal shall be approved to be eligible to undergo an expedited certificate of public convenience and necessity process under § 7–207.4 of this title.</text> </level> <level label="f"> <text>A proposal that is not approved to be eligible to undergo an expedited certificate of public convenience and necessity process under § 7–207.4 of this title may apply for a certificate of public convenience and necessity under § 7–207 of this title.</text> </level> </section> <section article="gpu" article_name="Public Utilities" number="7-1212" title_number="7" title_name="Gas, Electric, and Water Companies" subtitle_number="12" subtitle_name="Energy Solicitation and Procurement"> <level label="a"> <level label="1"> <text>After the effective date of Commission regulations implementing this part, a person may submit an application to the Commission for approval of a proposed nuclear energy generation project, including an application to upgrade the generation capabilities of an existing nuclear energy generating station.</text> </level> <level label="2"> <text>For an application submitted in accordance with paragraph (1) of this subsection, the long–term pricing schedule shall be based only on any new generation proposed in the application, including new generation at an existing nuclear energy generating station.</text> </level> </level> <level label="b"> <level label="1"> <text>On receipt of an application for approval of a proposed nuclear energy generation project, the Commission shall:</text> <level label="i"> <text>open an application period during which other interested persons may submit applications for approval of a proposed nuclear energy generation project; and</text> </level> <level label="ii"> <text>provide notice that the Commission is accepting applications for approval of proposed nuclear energy generation projects.</text> </level> </level> <level label="2"> <text>The Commission shall set the closing date for the application period to be not sooner than 90 days after the notice provided under paragraph (1) of this subsection.</text> </level> </level> <level label="c"> <text>The Commission shall provide at least two additional application periods before January 1, 2031.</text> </level> <level label="d"> <text>The Commission may provide additional application periods that meet the requirements of this section.</text> </level> </section> <section article="gpu" article_name="Public Utilities" number="7-1213" title_number="7" title_name="Gas, Electric, and Water Companies" subtitle_number="12" subtitle_name="Energy Solicitation and Procurement"> <level label="a"> <text>Subject to subsection (b) of this section, the Commission shall approve, conditionally approve, or deny an application submitted under § 7–1212 of this subtitle within 1 year after the close of the application period.</text> </level> <level label="b"> <text>The Commission may extend the time to approve, conditionally approve, or deny an application under subsection (a) of this section for good cause.</text> </level> </section> <section article="gpu" article_name="Public Utilities" number="7-1214" title_number="7" title_name="Gas, Electric, and Water Companies" subtitle_number="12" subtitle_name="Energy Solicitation and Procurement"> <text>An application submitted for a nuclear energy generation project under § 7–1212 of this subtitle shall include:</text> <level label="1"> <text>a detailed description and financial analysis of the project;</text> </level> <level label="2"> <text>the proposed method of financing the project, including documentation demonstrating that the applicant has applied for all current eligible State and federal grants, rebates, tax credits, loan guarantees, and other programs available to offset the cost of the project or provide tax advantages;</text> </level> <level label="3"> <text>a commitment that the applicant will use best efforts to apply for all eligible State and federal grants, rebates, tax credits, loan guarantees, or other similar benefits as those benefits become available;</text> </level> <level label="4"> <text>a cost–benefit analysis that shall include, at a minimum:</text> <level label="i"> <text>a detailed input–output analysis of the impact of the project on income, employment, wages, and taxes in the State;</text> </level> <level label="ii"> <text>detailed information concerning assumed employment impacts in the State, including the expected duration of employment opportunities, the salary of each position, and other supporting evidence of employment impacts;</text> </level> <level label="iii"> <text>an analysis of any impact on residential, commercial, and industrial ratepayers over the life of the project;</text> </level> <level label="iv"> <text>an analysis of any long–term effect on energy and capacity markets as a result of the project;</text> </level> <level label="v"> <text>an analysis of any impact the project would have on businesses in the State;</text> </level> <level label="vi"> <text>an analysis of the anticipated environmental benefits, health benefits, and economic impacts of the project to the citizens of the State; and</text> </level> <level label="vii"> <text>an analysis of other benefits resulting from the project, including increased in–State construction, operation and maintenance needs, and equipment purchases;</text> </level> </level> <level label="5"> <text>a proposed long–term pricing schedule for the project that shall specify a price for the generation attributes, including the energy, capacity, ancillary services, and environmental attributes;</text> </level> <level label="6"> <text>a decommissioning and waste storage plan for the project, including provisions for decommissioning or waste storage as required by the U.S. Nuclear Regulatory Commission;</text> </level> <level label="7"> <text>a commitment to abide by the requirements set forth in § 7–1202 of this subtitle;</text> </level> <level label="8"> <text>a description of the applicant’s plan for engaging small businesses, as defined in § 14–501 of the State Finance and Procurement Article;</text> </level> <level label="9"> <text>if applicable, the statement specified in § 7–1215(b)(2) of this subtitle; and</text> </level> <level label="10"> <text>any other information the Commission requires.</text> </level> </section> <section article="gpu" article_name="Public Utilities" number="7-1215" title_number="7" title_name="Gas, Electric, and Water Companies" subtitle_number="12" subtitle_name="Energy Solicitation and Procurement"> <level label="a"> <text>The Commission shall use the following criteria to evaluate and compare applications for nuclear energy generation projects submitted during an application period under § 7–1212 of this subtitle:</text> <level label="1"> <text>the lowest cost impact on ratepayers of the price set under a proposed long–term pricing schedule;</text> </level> <level label="2"> <text>potential reductions in transmission congestion prices within the State;</text> </level> <level label="3"> <text>potential changes in capacity prices within the State;</text> </level> <level label="4"> <text>potential reductions in locational marginal pricing;</text> </level> <level label="5"> <text>potential long–term changes in capacity prices within the State from the project as it compares to conventional energy sources;</text> </level> <level label="6"> <text>the extent to which the cost–benefit analysis submitted under § 7–1214 of this subtitle demonstrates positive net economic, environmental, and health benefits to the State;</text> </level> <level label="7"> <text>the extent to which an applicant’s plan for engaging small businesses meets the goals specified in Title 14, Subtitle 5 of the State Finance and Procurement Article;</text> </level> <level label="8"> <text>the extent to which an applicant’s plan provides for the use of skilled labor, particularly with regard to the construction and manufacturing components of the project, through outreach, hiring, or referral systems that are affiliated with registered apprenticeship programs under Title 11, Subtitle 4 of the Labor and Employment Article;</text> </level> <level label="9"> <text>the extent to which an applicant’s plan provides for the use of an agreement designed to ensure the use of skilled labor and to promote the prompt, efficient, and safe completion of the project, particularly with regard to the construction, manufacturing, and maintenance of the project;</text> </level> <level label="10"> <text>the extent to which an applicant’s plan provides for compensation to its employees and subcontractors consistent with wages outlined under Title 17, Subtitle 2 of the State Finance and Procurement Article;</text> </level> <level label="11"> <text>siting and project feasibility;</text> </level> <level label="12"> <text>the extent to which the project would require transmission or distribution infrastructure improvements in the State; and</text> </level> <level label="13"> <text>any other criteria that the Commission determines are appropriate.</text> </level> </level> <level label="b"> <level label="1"> <text>In this paragraph, “minority” means an individual who is a member of any of the groups listed in § 14–301(k)(1)(i) of the State Finance and Procurement Article.</text> </level> <level label="2"> <text>If an applicant is seeking investors in a proposed nuclear energy generation project, the applicant shall take the following steps before the Commission may approve the proposed project:</text> <level label="i"> <text>make serious, good–faith efforts to solicit and interview a reasonable number of minority investors;</text> </level> <level label="ii"> <text>as part of the application, submit a statement to the Commission that lists the names and addresses of all minority investors interviewed and whether or not any of those investors have purchased an equity share in the entity submitting the application;</text> </level> <level label="iii"> <text>sign a memorandum of understanding with the Commission that requires the applicant to again make serious, good–faith efforts to solicit and interview a reasonable number of minority investors in any future attempts to raise venture capital or attract new investors to the project;</text> </level> <level label="iv"> <text>sign a memorandum of understanding with the Commission that requires the applicant to use best efforts and effective outreach to obtain, as a goal, contractors and subcontractors for the project that are minority business enterprises, to the extent practicable, as supported by a disparity study; and</text> </level> <level label="v"> <text>sign a memorandum of understanding with the Commission and skilled labor organizations that requires the applicant to follow the portions of the applicant’s plan that relate to the criteria set forth in subsection (a)(8) and (9) of this section.</text> </level> </level> <level label="3"> <text>The Governor’s Office of Small, Minority, and Women Business Affairs, in consultation with the Office of the Attorney General, shall provide assistance to all potential applicants and potential minority investors to satisfy the requirements under paragraph (2)(i) and (iii) of this subsection.</text> </level> </level> </section> <section article="gpu" article_name="Public Utilities" number="7-1216" title_number="7" title_name="Gas, Electric, and Water Companies" subtitle_number="12" subtitle_name="Energy Solicitation and Procurement"> <level label="a"> <text>The Commission may not approve an application for a nuclear energy generation project submitted under § 7–1212 of this subtitle unless:</text> <level label="1"> <text>the project is connected to the electric system serving the State;</text> </level> <level label="2"> <text>over the duration of the proposed long–term pricing schedule, the projected net rate impact for an average residential customer, based on annual consumption of 12,000 kilowatt–hours and combined with the projected net rate impact of other nuclear energy generation projects, does not exceed an amount determined by the Commission;</text> </level> <level label="3"> <text>over the duration of the proposed long–term pricing schedule, the projected net rate impact for all nonresidential customers, considered as a blended average and combined with the projected net rate impact of other nuclear energy generation projects, does not exceed a percentage determined by the Commission of nonresidential customers’ total annual electric bills; and</text> </level> <level label="4"> <text>the price specified in the proposed long–term pricing schedule does not exceed an amount determined by the Commission.</text> </level> </level> <level label="b"> <text>When calculating the projected net average rate impacts for nuclear energy generation projects under this section, the Commission shall consider the net long–term cost per megawatt–hour applied to residential and nonresidential customers.</text> </level> </section> <section article="gpu" article_name="Public Utilities" number="7-1217" title_number="7" title_name="Gas, Electric, and Water Companies" subtitle_number="12" subtitle_name="Energy Solicitation and Procurement"> <level label="a"> <text>An order the Commission issues approving an application for a nuclear energy generation project submitted under § 7–1212 of this subtitle shall:</text> <level label="1"> <text>specify the long–term pricing schedule;</text> </level> <level label="2"> <text>specify the duration of the long–term pricing schedule, not to exceed 30 years;</text> </level> <level label="3"> <text>provide that:</text> <level label="i"> <text>a payment may not be made under a long–term pricing schedule until electricity supply is generated by the project; and</text> </level> <level label="ii"> <text>ratepayers and the State shall be held harmless for any cost overruns associated with the project; and</text> </level> </level> <level label="4"> <text>require that any debt instrument issued in connection with the project include language specifying that the debt instrument does not establish a debt, an obligation, or a liability of the State.</text> </level> </level> <level label="b"> <text>An order approving a nuclear energy generation project vests the owner of the project with the right to receive payments according to the terms in the order.</text> </level> <level label="c"> <text>On or before March 1 each year, the Commission shall report to the Governor and, in accordance with § 2–1257 of the State Government Article, the Senate Committee on Education, Energy, and the Environment and the House Economic Matters Committee on:</text> <level label="1"> <text>applicant compliance with the minority business enterprise participation goals under § 7–1215(b) of this subtitle; and</text> </level> <level label="2"> <text>with respect to the community benefit agreement under § 7–1202 of this subtitle:</text> <level label="i"> <text>the availability and use of opportunities for local businesses and small, minority, women–owned, and veteran–owned businesses;</text> </level> <level label="ii"> <text>the success of efforts to promote career training opportunities in the manufacturing, maintenance, and construction industries for local residents, veterans, women, and minorities; and</text> </level> <level label="iii"> <text>compliance with the minority workforce goal under § 7–1202 of this subtitle.</text> </level> </level> </level> </section> <section article="gpu" article_name="Public Utilities" number="7-1218" title_number="7" title_name="Gas, Electric, and Water Companies" subtitle_number="12" subtitle_name="Energy Solicitation and Procurement"> <level label="a"> <text>If the Commission approves an application that demonstrates, based on the criteria specified in § 7–1214 of this subtitle, positive net economic impacts and environmental and health benefits to the State, the Commission shall issue an order in compliance with § 7–1217 of this subtitle.</text> </level> <level label="b"> <text>The Commission may not issue an order to facilitate the financing of a nuclear energy generation project unless the project is subject to a community benefit agreement under § 7–1202 of this subtitle.</text> </level> </section> <section article="gpu" article_name="Public Utilities" number="7-1219" title_number="7" title_name="Gas, Electric, and Water Companies" subtitle_number="12" subtitle_name="Energy Solicitation and Procurement"> <level label="a"> <text>The findings and evidence relied on by the General Assembly for the continuation of the Minority Business Enterprise Program under Title 14, Subtitle 3 of the State Finance and Procurement Article are incorporated in this section.</text> </level> <level label="b"> <text>To the extent practicable and authorized by the United States Constitution, an applicant approved for a nuclear energy generation project under § 7–1213 of this subtitle shall comply with the State’s Minority Business Enterprise Program.</text> </level> <level label="c"> <level label="1"> <text>Within 6 months after the issuance of an order that approves a nuclear energy generation project and includes a long–term pricing component, the Governor’s Office of Small, Minority, and Women Business Affairs, in consultation with the Office of the Attorney General and the approved applicant, shall establish a clear plan for setting reasonable and appropriate minority business enterprise participation goals and procedures for each phase of the nuclear energy generation project.</text> </level> <level label="2"> <text>To the extent practicable, the goals and procedures set in accordance with paragraph (1) of this subsection shall be based on the requirements of Title 14, Subtitle 3 of the State Finance and Procurement Article and the regulations implementing that subtitle.</text> </level> <level label="3"> <text>Every 6 months following the issuance of an order that approves a nuclear energy generation project and includes a long–term pricing component, the approved applicant shall submit a report on the progress made to establish and implement minority business enterprise goals and procedures to the Commission.</text> </level> </level> </section> <section article="gpu" article_name="Public Utilities" number="7-1220" title_number="7" title_name="Gas, Electric, and Water Companies" subtitle_number="12" subtitle_name="Energy Solicitation and Procurement"> <level label="a"> <text>In this section, “zero–emission credit” means a credit equal to the environmental attributes of 1 megawatt–hour of electricity that is derived from a nuclear energy generating station approved by the Commission under § 7–1217 of this subtitle.</text> </level> <level label="b"> <text>The Commission shall adopt regulations that:</text> <level label="1"> <text>establish the nuclear energy long–term pricing purchase obligation sufficiently in advance to allow an electric company to reflect nuclear energy long–term pricing costs as a nonbypassable surcharge that is added to the electric company’s base distribution rate on customer bills;</text> </level> <level label="2"> <text>define rules that facilitate and ensure the secure and transparent transfer of revenues and long–term pricing payments among parties;</text> </level> <level label="3"> <text>define the terms and procedures of the nuclear energy long–term pricing schedule obligations, including:</text> <level label="i"> <text>establishing a formula and process to adjust the value of the long–term pricing schedule every 2 years based on projected wholesale market prices adjusted by the locational value and earning potential in the PJM region of the nuclear energy generating station; and</text> </level> <level label="ii"> <text>establishing a per megawatt hour cap on any long–term pricing schedule specified in an order issued under § 7–1217 of this subtitle;</text> </level> </level> <level label="4"> <text>require the Commission to establish an escrow account; and</text> </level> <level label="5"> <text>to meet the total statewide long–term pricing purchase obligation for all applications approved in an order issued under § 7–1217 of this subtitle, require the Commission to annually establish each electric company’s zero–emission credit purchase obligation based on the most recent final electricity sales data as reported by PJM Interconnection and measured at the customer’s meter in proportion to the electric company’s share of statewide load.</text> </level> </level> <level label="c"> <level label="1"> <text>Each electric company shall procure from the escrow account established by regulation under this section a quantity of zero–emission credits equal to the electric company’s respective percentage of retail electric sales each year.</text> </level> <level label="2"> <text>Subject to any escrow account reserve requirement the Commission establishes, if there are insufficient zero–emission credits available to satisfy the electric companies’ zero–emission credit purchase obligations, the overpayment shall be distributed to electric companies to be refunded or credited to each distribution customer based on the customer’s consumption of electricity supply that is subject to the renewable energy portfolio standard.</text> </level> </level> <level label="d"> <text>A debt, an obligation, or a liability of a nuclear energy generation project or of an owner or operator of a nuclear energy generation project may not be considered a debt, an obligation, or a liability of the State.</text> </level> <level label="e"> <level label="1"> <text>Subject to paragraph (2) of this subsection, and before the nuclear energy generation project begins commercial operation, the Commission may approve an increase of the total cost of a nuclear energy generation project under a long–term pricing purchase obligation.</text> </level> <level label="2"> <text>The total cost of a nuclear energy generation project that may be recovered under a long–term pricing purchase obligation may not be increased by more than 15% of the original total project cost.</text> </level> </level> </section> <section article="gpu" article_name="Public Utilities" number="7-1221" title_number="7" title_name="Gas, Electric, and Water Companies" subtitle_number="12" subtitle_name="Energy Solicitation and Procurement"> <text>On or before July 1, 2027, the Commission shall adopt regulations to carry out this part.</text> </section> <section article="gpu" article_name="Public Utilities" number="7-1224" title_number="7" title_name="Gas, Electric, and Water Companies" subtitle_number="12" subtitle_name="Energy Solicitation and Procurement"> <level label="a"> <text>The Commission shall, by regulation or order, establish a competitive process for the procurement of projects for the construction and deployment of front–of–the–meter transmission energy storage devices in the State.</text> </level> <level label="b"> <level label="1"> <level label="i"> <text>On or before January 1, 2026, the Commission shall issue a procurement solicitation for applications for projects for the construction and deployment of front–of–the–meter transmission energy storage devices.</text> </level> <level label="ii"> <text>Except as provided in subparagraph (iii) of this paragraph, the procurement solicitation shall be for 800 megawatts of cumulative energy storage capacity, as measured in effective nameplate capacity.</text> </level> <level label="iii"> <text>The procurement solicitation may exceed 800 megawatts of cumulative energy storage capacity, as measured in effective nameplate capacity, if the Commission determines that the proposals are cost–effective and adequately support the goals established under this subtitle, including the goal of securing affordable, reliable electrical service for Maryland residents.</text> </level> </level> <level label="2"> <text>On or before October 1, 2026, the Commission shall issue a decision on whether to approve one or more proposals in accordance with § 7–1226(c) of this subtitle.</text> </level> <level label="3"> <level label="i"> <text>Except as provided in subparagraph (ii) of this paragraph, the transmission energy storage devices procured in accordance with this subsection shall be operational within 24 months after a project is selected by the Commission.</text> </level> <level label="ii"> <text>The Commission may extend the operating deadline under subparagraph (i) of this paragraph for good cause shown.</text> </level> </level> </level> <level label="c"> <level label="1"> <text>On or before January 1, 2027, the Commission shall issue a second procurement solicitation for the procurement of projects for the construction and deployment of front–of–the–meter transmission energy storage devices.</text> </level> <level label="2"> <level label="i"> <text>Except as provided in subparagraph (ii) of this paragraph, the procurement solicitation shall be for 800 megawatts of cumulative energy storage capacity, as measured in effective nameplate capacity.</text> </level> <level label="ii"> <text>The procurement solicitation may exceed 800 megawatts of cumulative energy storage capacity, as measured in effective nameplate capacity, if the Commission determines that the proposals are cost–effective and adequately support the goals established under this subtitle, including the goal of securing affordable, reliable electrical service for Maryland residents.</text> </level> </level> <level label="3"> <text>On or before October 1, 2027, the Commission shall issue a decision on whether to approve one or more proposals in accordance with § 7–1226(c) of this subtitle.</text> </level> <level label="4"> <level label="i"> <text>Except as provided in subparagraph (ii) of this paragraph, the transmission energy storage devices procured in accordance with this subsection shall be operational within 24 months after a project is selected by the Commission.</text> </level> <level label="ii"> <text>The Commission may extend the operating deadline under subparagraph (i) of this paragraph for good cause shown.</text> </level> </level> </level> </section> <section article="gpu" article_name="Public Utilities" number="7-1225" title_number="7" title_name="Gas, Electric, and Water Companies" subtitle_number="12" subtitle_name="Energy Solicitation and Procurement"> <level label="a"> <text>The Commission shall include specifications in a procurement solicitation issued under § 7–1224 of this subtitle that require each proposal to:</text> <level label="1"> <text>include a proposed pricing schedule for the transmission energy storage project that:</text> <level label="i"> <text>is for at least 15 years; and</text> </level> <level label="ii"> <text>represents the anticipated monthly wholesale value of capacity per megawatt and other benefits identified in a cost–benefit analysis, but not including any anticipated wholesale energy and ancillary services revenue;</text> </level> </level> <level label="2"> <text>include a cost–benefit analysis of the project and proposed pricing schedule comparison on a dollar–per–megawatt–hour basis, including an analysis of:</text> <level label="i"> <text>the locational value and time to deployment of the energy storage devices;</text> </level> <level label="ii"> <text>the value of long–duration storage, including its capacity accreditation value for resource adequacy as measured in PJM Interconnection’s effective load carrying capability class ratings;</text> </level> <level label="iii"> <text>avoided or delayed transmission, generation, and distribution costs;</text> </level> <level label="iv"> <text>avoided emissions in the short term and projected avoided emissions in the long term, measured using the social cost of carbon, as determined by the U.S. Environmental Protection Agency as of January 1, 2025;</text> </level> <level label="v"> <text>the value of the rapid deployment of energy storage devices;</text> </level> <level label="vi"> <text>the value of reliability during periods of electric system stress, including the ability to deliver capacity during periods of extreme weather, fuel scarcity, and large unplanned resource outages; and</text> </level> <level label="vii"> <text>any other avoided costs;</text> </level> </level> <level label="3"> <text>ensure that the owner or operator of the project has the capability to export electricity for sale on the wholesale market and bid into the PJM capacity market under an agreement with PJM Interconnection;</text> </level> <level label="4"> <text>ensure that the energy storage devices can deliver their effective nameplate capacity;</text> </level> <level label="5"> <text>incorporate a community benefit agreement;</text> </level> <level label="6"> <text>attest in writing that all contractors and subcontractors working on the project have been in compliance with federal and State wage and hour laws for the immediately preceding 3 years or the duration of the contractor’s or subcontractor’s business operation, whichever is longer; and</text> </level> <level label="7"> <text>ensure a competitive bidding process, including by redacting proprietary information provided to the Commission.</text> </level> </level> <level label="b"> <text>An energy storage device shall be considered capable of delivering its effective nameplate capacity under this section if:</text> <level label="1"> <text>the energy storage device will have the capacity interconnection rights with PJM Interconnection equal to its effective nameplate capacity; or</text> </level> <level label="2"> <level label="i"> <text>the energy storage device will have surplus interconnection service with PJM Interconnection; and</text> </level> <level label="ii"> <text>the ability of the energy storage device to deliver its effective nameplate capacity will be limited only by the generation of another nonenergy storage generation resource with which the energy storage device shares a point of interconnection to the electric transmission system.</text> </level> </level> </level> <level label="c"> <text>Projects that include any of the following devices may be included in a proposal in response to a procurement solicitation under § 7–1224 of this subtitle:</text> <level label="1"> <text>front–of–the–meter transmission energy storage devices paired with Tier 1 or Tier 2 renewable sources, as defined under § 7–701 of this title; and</text> </level> <level label="2"> <text>front–of–the–meter energy storage devices:</text> <level label="i"> <text>interconnected to a facility within the State; and</text> </level> <level label="ii"> <text>that have been assigned a project identifier in the PJM Interconnection process in response to a request for new service.</text> </level> </level> </level> </section> <section article="gpu" article_name="Public Utilities" number="7-1226" title_number="7" title_name="Gas, Electric, and Water Companies" subtitle_number="12" subtitle_name="Energy Solicitation and Procurement"> <level label="a"> <text>In selecting a proposal for a front–of–the–meter transmission energy storage device project, the Commission:</text> <level label="1"> <text>shall specify:</text> <level label="i"> <text>a 15–year pricing schedule that uses a monthly fixed price for each megawatt that represents the anticipated wholesale value of capacity for the front–of–the–meter transmission energy storage device and the benefits identified in § 7–1225(a)(2) of this subtitle;</text> </level> <level label="ii"> <text>that each electricity supplier shall be responsible for purchasing storage capacity credits at the monthly fixed price schedule proportional to the electricity supplier’s capacity obligation;</text> </level> <level label="iii"> <text>that all PJM capacity market revenue earned by the energy storage project be transmitted to the Commission to be held in escrow for distribution to electric companies to be refunded or credited to each distribution customer proportional to the electricity supplier’s monthly capacity purchase obligation;</text> </level> <level label="iv"> <text>that the energy storage project shall retain any energy and ancillary services revenue earned;</text> </level> <level label="v"> <text>that electric companies must jointly select an escrow administrator, in consultation with the Commission; and</text> </level> <level label="vi"> <text>for any cost recovery by an electric company, that the recovery shall be done through a nonbypassable surcharge established by the electric company that is added to the electric company’s base distribution rate or supply rate on customer bills;</text> </level> </level> <level label="2"> <text>shall specify that for continued receipt of payment under item (1) of this subsection, an applicant shall demonstrate, to the satisfaction of the Commission, that the applicant’s energy storage device is available;</text> </level> <level label="3"> <text>shall incorporate penalties for nonperformance and underperformance in the contract, including withholding of payment that reflects the degree of underperformance, for energy storage devices that fail to meet availability metrics;</text> </level> <level label="4"> <text>may terminate energy storage devices from the program if device performance does not improve after appropriate notice and opportunity to cure;</text> </level> <level label="5"> <text>shall consider other nonprice factors to ensure project deliverability within 24 months after the award date, such as:</text> <level label="i"> <text>project maturity dates;</text> </level> <level label="ii"> <text>interconnection queue status;</text> </level> <level label="iii"> <text>site control;</text> </level> <level label="iv"> <text>developer experience, including procuring, constructing, and operating front–of–the–meter transmission energy storage devices;</text> </level> <level label="v"> <text>any evidence of key development milestones to substantiate project deliverability within 24 months after the award date;</text> </level> <level label="vi"> <text>safety plans; and</text> </level> <level label="vii"> <text>any other relevant nonprice factors as determined by the Commission; and</text> </level> </level> <level label="6"> <text>shall require, at a minimum, all energy storage devices that utilize lithium–ion batteries to comply with the most up–to–date revision of the National Fire Protection Association 855: Standard for the Installation of Stationary Energy Storage Systems in effect at the project’s final permit application date.</text> </level> </level> <level label="b"> <level label="1"> <text>Each energy storage project shall include a proposed decommissioning plan.</text> </level> <level label="2"> <text>The proposed decommissioning plan shall include a plan to maximize the recycling or reuse of all qualifying components of each energy storage device.</text> </level> <level label="3"> <text>The owner or operator of an energy storage device may submit a revised recycling and reuse plan that incorporates emerging recycling and reuse opportunities up to 1 year before executing the decommissioning plan.</text> </level> </level> <level label="c"> <text>The Commission shall:</text> <level label="1"> <text>after giving public notice, hold one or more public hearings to receive public comment and evaluate the proposals; and</text> </level> <level label="2"> <text>subject to subsection (d) of this section, issue one or more orders to select a proposal or proposals for development.</text> </level> </level> <level label="d"> <text>The Commission may end the solicitation process without selecting a proposal if the Commission finds that none of the proposals adequately support the goals established under this subtitle, including the goal of securing affordable, reliable electrical service for Maryland residents.</text> </level> </section> <section article="gpu" article_name="Public Utilities" number="7-1227" title_number="7" title_name="Gas, Electric, and Water Companies" subtitle_number="12" subtitle_name="Energy Solicitation and Procurement"> <level label="a"> <text>For any proposal selected under this part, the Commission may adopt conditions for the construction and operation of facilities included in the proposal.</text> </level> <level label="b"> <text>An order selecting a proposal under § 7–1226 of this subtitle bestows the same rights to the selected proposal that a generating system would otherwise be granted through a certificate of public convenience and necessity under § 7–207 of this title if the selected proposal is reviewed under an alternative process as determined by the Commission.</text> </level> </section> <section article="gpu" article_name="Public Utilities" number="7-1228" title_number="7" title_name="Gas, Electric, and Water Companies" subtitle_number="12" subtitle_name="Energy Solicitation and Procurement"> <text>Any transmission energy storage device built in accordance with this subtitle shall count toward the energy storage device deployment goals under § 7–216.1 of this title.</text> </section> <section article="gpu" article_name="Public Utilities" number="7-1229" title_number="7" title_name="Gas, Electric, and Water Companies" subtitle_number="12" subtitle_name="Energy Solicitation and Procurement"> <text>On or before December 31, 2026, the Commission shall report, in accordance with § 2–1257 of the State Government Article, to the General Assembly on the effectiveness of the procurement process established under this part.</text> </section> <section article="gpu" article_name="Public Utilities" number="7-1301" title_number="7" title_name="Gas, Electric, and Water Companies" subtitle_number="13"> <level label="a"> <text>In this subtitle the following words have the meanings indicated.</text> </level> <level label="b"> <text>“Director” means the Director of the Strategic Energy Planning Office.</text> </level> <level label="c"> <text>“Office” means the Strategic Energy Planning Office.</text> </level> <level label="d"> <text>“PJM region” has the meaning stated in § 7–701 of this title.</text> </level> <level label="e"> <text>“Risk Report” means the Comprehensive Wholesale Energy Markets and Bulk Power System Risk Report developed under § 7–1303 of this subtitle.</text> </level> </section> <section article="gpu" article_name="Public Utilities" number="7-1302" title_number="7" title_name="Gas, Electric, and Water Companies" subtitle_number="13"> <level label="a"> <text>There is a Strategic Energy Planning Office.</text> </level> <level label="b"> <level label="1"> <text>The head of the Office is the Director.</text> </level> <level label="2"> <level label="i"> <text>The Director shall be appointed by the Governor with the advice and consent of the Senate.</text> </level> <level label="ii"> <level label="1"> <text>The term of the Director is 5 years and begins on July 1.</text> </level> <level label="2"> <text>The first term of the Director shall begin on July 1, 2026.</text> </level> </level> <level label="iii"> <text>At the end of a term, the Director continues to serve until a successor is appointed and qualifies.</text> </level> <level label="iv"> <text>A Director who is appointed after a term has begun serves for the rest of the term and until a successor is appointed and qualifies.</text> </level> <level label="v"> <text>A Director may serve more than one term.</text> </level> </level> <level label="3"> <text>The Governor may remove the Director for incompetence or misconduct in accordance with § 3–307 of the State Government Article.</text> </level> <level label="4"> <text>The Director is entitled to a salary as provided in the State budget.</text> </level> </level> <level label="c"> <level label="1"> <text>The Office shall have the staff provided for in the State budget.</text> </level> <level label="2"> <text>The Office may hire private consultants if necessary to carry out the requirements of this subtitle.</text> </level> </level> <level label="d"> <text>In order to carry out the requirements of this subtitle, the Office shall collaborate with:</text> <level label="1"> <text>the Maryland Energy Administration;</text> </level> <level label="2"> <text>the Commission;</text> </level> <level label="3"> <text>the Power Plant Research Program;</text> </level> <level label="4"> <text>the Maryland Clean Energy Center; and</text> </level> <level label="5"> <text>the Department of the Environment.</text> </level> </level> <level label="e"> <text>The Office shall coordinate with the Commission to establish procedures and rules to obtain information from electric companies and gas companies necessary to accomplish the Office’s duties under this subtitle.</text> </level> </section> <section article="gpu" article_name="Public Utilities" number="7-1303" title_number="7" title_name="Gas, Electric, and Water Companies" subtitle_number="13"> <level label="a"> <level label="1"> <text>Every 3 years, the Office shall develop a Comprehensive Wholesale Energy Markets and Bulk Power System Risk Report.</text> </level> <level label="2"> <text>The purpose of the Risk Report is to:</text> <level label="i"> <text>assess wholesale energy market financial, resource adequacy, and reliability risks associated with serving the State’s long–term energy needs; and</text> </level> <level label="ii"> <text>identify any necessary cost–effective solutions that ensure electric system reliability while meeting the State’s energy policy goals.</text> </level> </level> <level label="3"> <text>The solutions identified in the Risk Report shall seek to:</text> <level label="i"> <text>minimize the growth of the cost of electricity or lower the cost of electricity; and</text> </level> <level label="ii"> <text>minimize energy resource reliability risks.</text> </level> </level> </level> <level label="b"> <level label="1"> <text>The Risk Report shall include energy and demand forecasts that contain:</text> <level label="i"> <text>reasonable, 20–year projections for electricity load and energy demands for:</text> <level label="1"> <text>transmission zones; and</text> </level> <level label="2"> <text>electric service territories; and</text> </level> </level> <level label="ii"> <text>projections for meeting State energy needs and clean energy goals and load forecasts in the PJM region, including:</text> <level label="1"> <text>low, average, and high projections of energy demand based on State policies and other reasonable assumptions that impact the provision of electricity in the State; and</text> </level> <level label="2"> <text>other projections as necessary.</text> </level> </level> </level> <level label="2"> <text>In collecting the data for the forecasts under paragraph (1) of this subsection, the Office should, but is not required to, use:</text> <level label="i"> <text>historical and projected information from electric companies;</text> </level> <level label="ii"> <text>load forecasts for the PJM region;</text> </level> <level label="iii"> <text>appropriate econometric data for the State; and</text> </level> <level label="iv"> <text>any other information the Office considers appropriate.</text> </level> </level> </level> <level label="c"> <level label="1"> <text>The Office shall examine different wholesale energy market and bulk power system scenarios to serve the forecasts under subsection (b) of this section.</text> </level> <level label="2"> <text>Each scenario examined shall:</text> <level label="i"> <text>identify the resulting wholesale energy market and bulk power system financial and resource adequacy impacts of serving the forecasts with the existing electric system, known additions to the electric system, and electric system resource retirements; and</text> </level> <level label="ii"> <text>identify resource and demand–side management solutions that may resolve potential resource adequacy issues at the least cost.</text> </level> </level> <level label="3"> <text>For a subset of scenarios that are primarily relied on within the Risk Report, the Office shall, in addition to the requirements of paragraph (2) of this subsection:</text> <level label="i"> <text>identify the resulting wholesale market and bulk power system reliability impacts of serving the forecasts with the existing electric system, known additions to the electric system, and electric system resource retirements; and</text> </level> <level label="ii"> <text>identify resource and demand–side management solutions that may resolve potential reliability constraints at the least cost.</text> </level> </level> <level label="4"> <text>Each scenario shall also examine:</text> <level label="i"> <text>different energy resource mixes to meet the State’s energy needs, including the use of demand–side management;</text> </level> <level label="ii"> <text>different approaches for meeting the State’s clean energy goals;</text> </level> <level label="iii"> <text>improvements to existing energy resources as opposed to the deployment of new energy resources;</text> </level> <level label="iv"> <text>balancing the use of electricity imported from outside the State with the development of new energy resources in the State;</text> </level> <level label="v"> <text>financial and other risks associated with retiring energy generation resources;</text> </level> <level label="vi"> <text>directional assessing of cost risks to ratepayers; and</text> </level> <level label="vii"> <text>impacts to the wholesale energy market and bulk power system in meeting the State’s policy goals related to electricity.</text> </level> </level> <level label="5"> <text>The scenarios required under paragraph (1) of this subsection shall include:</text> <level label="i"> <text>at least one scenario that examines the achievement of the State’s clean energy goals;</text> </level> <level label="ii"> <text>at least one scenario that examines a least–cost approach to meeting the State’s projected energy needs; and</text> </level> <level label="iii"> <text>at least one scenario that assumes no changes in State energy and climate policies.</text> </level> </level> </level> <level label="d"> <level label="1"> <text>The Risk Report shall:</text> <level label="i"> <text>be informed by the forecasts and scenarios required under this section;</text> </level> <level label="ii"> <text>provide information on the risks associated with serving the identified energy forecasts and achievement of the State’s clean energy goals;</text> </level> <level label="iii"> <text>discuss the potential financial impacts of the different scenarios examined under subsection (c) of this section on the State and ratepayers;</text> </level> <level label="iv"> <text>identify the financial, resource adequacy, and reliability risks of the wholesale energy markets and bulk power system on ratepayers; and</text> </level> <level label="v"> <text>specify the inputs and assumptions used in developing the Risk Report.</text> </level> </level> <level label="2"> <level label="i"> <text>The Risk Report shall also include any recommendations of the Office regarding short– and long–term solutions to minimize wholesale energy market and bulk power system financial, resource adequacy, and reliability risks, including strategies to implement any recommendations.</text> </level> <level label="ii"> <text>The recommendations may include:</text> <level label="1"> <text>energy generation, transmission, or distribution resource deployment or demand–side management solutions;</text> </level> <level label="2"> <text>program development, including:</text> </level> <level label="A"> <text>altering or adding to existing programs; or</text> </level> <level label="B"> <text>proposing new programs;</text> </level> <level label="3"> <text>statutory or regulatory changes; and</text> </level> <level label="4"> <text>recommendations to the General Assembly to implement short– and long–term recommendations identified in subparagraph (i) of this paragraph, including:</text> </level> <level label="A"> <text>utilizing existing or creating new market structures;</text> </level> <level label="B"> <text>utilizing existing or creating new State programs;</text> </level> <level label="C"> <text>State financing options, including State procurement and multistate procurement;</text> </level> <level label="D"> <text>electric company procurement or programs;</text> </level> <level label="E"> <text>examining the mix of in–State generation versus relying on imports and demand–side management; and</text> </level> <level label="F"> <text>any other recommendations that the Office considers appropriate.</text> </level> </level> <level label="iii"> <text>If the Office determines that the identified risks are acceptable or that existing market designs, processes, or policies will adequately address the risks identified in the Risk Report, the Office may recommend that no actions be taken.</text> </level> <level label="iv"> <text>The Office shall support the recommendations by analyses that balance affordability, reliability, and greenhouse gas emissions reductions.</text> </level> </level> </level> </section> <section article="gpu" article_name="Public Utilities" number="7-1304" title_number="7" title_name="Gas, Electric, and Water Companies" subtitle_number="13"> <level label="a"> <level label="1"> <text>The Office shall:</text> <level label="i"> <text>develop and maintain the tools and resources necessary to complete the analyses required under this subtitle;</text> </level> <level label="ii"> <text>coordinate with PJM Interconnection, LLC to develop and maintain the tools necessary to complete the analyses required under this subtitle;</text> </level> <level label="iii"> <text>have the ability to conduct cost–benefit analyses of energy generation resources in wholesale energy markets; and</text> </level> <level label="iv"> <text>provide an opportunity for stakeholder feedback on any reports developed by the Office.</text> </level> </level> <level label="2"> <level label="i"> <text>For the Risk Report required under § 7–1303 of this subtitle, the Office shall conduct a stakeholder process to solicit feedback regarding the development of data inputs that will inform the forecasts and scenarios for developing the Risk Report.</text> </level> <level label="ii"> <text>The Office is not required to utilize the feedback received from the stakeholder process conducted under paragraph (1)(ii) of this subsection, but shall provide documentation of the stakeholder process in the Risk Report.</text> </level> </level> <level label="3"> <level label="i"> <text>In addition to the public hearing required in § 7–1306 of this subtitle, after the publication of the Risk Report or any update to the report, the Office shall conduct a stakeholder process to develop a report that assesses strategies to address the identified risks and recommendations in the Risk Report.</text> </level> <level label="ii"> <text>When assessing strategies under subparagraph (i) of this paragraph, there shall be consideration of:</text> <level label="1"> <text>new or existing programs;</text> </level> <level label="2"> <text>leveraging technology enhancements;</text> </level> <level label="3"> <text>revised regulatory structures;</text> </level> <level label="4"> <text>State coordination of federal solutions;</text> </level> <level label="5"> <text>utilizing market mechanisms; and</text> </level> <level label="6"> <text>any other factors considered appropriate.</text> </level> </level> </level> </level> <level label="b"> <text>The Office, in consultation with the Commission and the Maryland Energy Administration, shall complete energy modeling for the Risk Report.</text> </level> <level label="c"> <level label="1"> <text>On or before November 1 each year, the Senate Committee on Education, Energy, and the Environment and the House Environment and Transportation Committee may jointly request the Office to assess up to five policy scenarios.</text> </level> <level label="2"> <text>Not later than 1 year after the date the Office receives a request under paragraph (1) of this subsection, the Office shall submit a report of the results of the requested policy scenarios to the Senate Committee on Education, Energy, and the Environment and the House Environment and Transportation Committee in accordance with § 2–1257 of the State Government Article.</text> </level> </level> </section> <section article="gpu" article_name="Public Utilities" number="7-1305" title_number="7" title_name="Gas, Electric, and Water Companies" subtitle_number="13"> <level label="a"> <text>On or before September 1, 2028, and every 3 years thereafter, the Office shall submit the Risk Report to the Governor and, in accordance with § 2–1257 of the State Government Article, the General Assembly.</text> </level> <level label="b"> <level label="1"> <text>The Office may submit to the Governor and, in accordance with § 2–1257 of the State Government Article, the General Assembly any additional updates to the Risk Report at any time.</text> </level> <level label="2"> <text>The updates shall include:</text> <level label="i"> <text>the status of and any changes to the forecasts and scenarios developed under § 7–1303 of this subtitle;</text> </level> <level label="ii"> <text>information on any new forecasts and scenarios the Office has developed; and</text> </level> <level label="iii"> <text>any other changes to the information or recommendations contained in the report or any preceding updates to the report.</text> </level> </level> </level> <level label="c"> <text>On or before September 1, 2028, and every 3 years thereafter, the Office shall submit to the Governor and, in accordance with § 2–1257 of the State Government Article, the General Assembly the report required under § 7–1304(a)(3) of this subtitle.</text> </level> </section> <section article="gpu" article_name="Public Utilities" number="7-1306" title_number="7" title_name="Gas, Electric, and Water Companies" subtitle_number="13"> <level label="a"> <text>Beginning on or before September 1, 2030, and at least once every 3 years thereafter, after receiving a request by the Office, the Commission, in consultation with the Office, shall conduct a public proceeding to assess the results and recommendations contained in the Risk Report and any updates to the report.</text> </level> <level label="b"> <text>The public proceeding shall include a public hearing and an opportunity for public comment on the recommendations of the Risk Report and any updates to the report.</text> </level> <level label="c"> <text>The Office shall consider any feedback received through the public proceeding and determine if any further changes to the Risk Report are necessary.</text> </level> <level label="d"> <text>The Commission shall consider any feedback received through the public proceeding and determine whether any action under its jurisdiction is warranted.</text> </level> </section> <section article="gpu" article_name="Public Utilities" number="7-1307" title_number="7" title_name="Gas, Electric, and Water Companies" subtitle_number="13"> <level label="a"> <text>This section does not apply to:</text> <level label="1"> <text>the report required under § 7–1304(a)(3) of this subtitle; and</text> </level> <level label="2"> <text>the report required under § 7–1304(c)(2) of this subtitle.</text> </level> </level> <level label="b"> <text>Each report required under this subtitle shall include documentation of stakeholder engagement and any feedback received related to the development of that report.</text> </level> </section>