In this subtitle the following words have the meanings indicated. “Director” means the Director of the Strategic Energy Planning Office. “Office” means the Strategic Energy Planning Office. “PJM region” has the meaning stated in § 7–701 of this title. “Risk Report” means the Comprehensive Wholesale Energy Markets and Bulk Power System Risk Report developed under § 7–1303 of this subtitle.

There is a Strategic Energy Planning Office. The head of the Office is the Director. The Director shall be appointed by the Governor with the advice and consent of the Senate. The term of the Director is 5 years and begins on July 1. The first term of the Director shall begin on July 1, 2026. At the end of a term, the Director continues to serve until a successor is appointed and qualifies. 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. A Director may serve more than one term. The Governor may remove the Director for incompetence or misconduct in accordance with § 3–307 of the State Government Article. The Director is entitled to a salary as provided in the State budget. The Office shall have the staff provided for in the State budget. The Office may hire private consultants if necessary to carry out the requirements of this subtitle. In order to carry out the requirements of this subtitle, the Office shall collaborate with: the Maryland Energy Administration; the Commission; the Power Plant Research Program; the Maryland Clean Energy Center; and the Department of the Environment. 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.

Every 3 years, the Office shall develop a Comprehensive Wholesale Energy Markets and Bulk Power System Risk Report. The purpose of the Risk Report is to: assess wholesale energy market financial, resource adequacy, and reliability risks associated with serving the State’s long–term energy needs; and identify any necessary cost–effective solutions that ensure electric system reliability while meeting the State’s energy policy goals. The solutions identified in the Risk Report shall seek to: minimize the growth of the cost of electricity or lower the cost of electricity; and minimize energy resource reliability risks. The Risk Report shall include energy and demand forecasts that contain: reasonable, 20–year projections for electricity load and energy demands for: transmission zones; and electric service territories; and projections for meeting State energy needs and clean energy goals and load forecasts in the PJM region, including: 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 other projections as necessary. In collecting the data for the forecasts under paragraph (1) of this subsection, the Office should, but is not required to, use: historical and projected information from electric companies; load forecasts for the PJM region; appropriate econometric data for the State; and any other information the Office considers appropriate. The Office shall examine different wholesale energy market and bulk power system scenarios to serve the forecasts under subsection (b) of this section. Each scenario examined shall: 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 identify resource and demand–side management solutions that may resolve potential resource adequacy issues at the least cost. 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: 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 identify resource and demand–side management solutions that may resolve potential reliability constraints at the least cost. Each scenario shall also examine: different energy resource mixes to meet the State’s energy needs, including the use of demand–side management; different approaches for meeting the State’s clean energy goals; improvements to existing energy resources as opposed to the deployment of new energy resources; balancing the use of electricity imported from outside the State with the development of new energy resources in the State; financial and other risks associated with retiring energy generation resources; directional assessing of cost risks to ratepayers; and impacts to the wholesale energy market and bulk power system in meeting the State’s policy goals related to electricity. The scenarios required under paragraph (1) of this subsection shall include: at least one scenario that examines the achievement of the State’s clean energy goals; at least one scenario that examines a least–cost approach to meeting the State’s projected energy needs; and at least one scenario that assumes no changes in State energy and climate policies. The Risk Report shall: be informed by the forecasts and scenarios required under this section; provide information on the risks associated with serving the identified energy forecasts and achievement of the State’s clean energy goals; discuss the potential financial impacts of the different scenarios examined under subsection (c) of this section on the State and ratepayers; identify the financial, resource adequacy, and reliability risks of the wholesale energy markets and bulk power system on ratepayers; and specify the inputs and assumptions used in developing the Risk Report. 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. The recommendations may include: energy generation, transmission, or distribution resource deployment or demand–side management solutions; program development, including: altering or adding to existing programs; or proposing new programs; statutory or regulatory changes; and recommendations to the General Assembly to implement short– and long–term recommendations identified in subparagraph (i) of this paragraph, including: utilizing existing or creating new market structures; utilizing existing or creating new State programs; State financing options, including State procurement and multistate procurement; electric company procurement or programs; examining the mix of in–State generation versus relying on imports and demand–side management; and any other recommendations that the Office considers appropriate. 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. The Office shall support the recommendations by analyses that balance affordability, reliability, and greenhouse gas emissions reductions.

The Office shall: develop and maintain the tools and resources necessary to complete the analyses required under this subtitle; coordinate with PJM Interconnection, LLC to develop and maintain the tools necessary to complete the analyses required under this subtitle; have the ability to conduct cost–benefit analyses of energy generation resources in wholesale energy markets; and provide an opportunity for stakeholder feedback on any reports developed by the Office. 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. 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. 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. When assessing strategies under subparagraph (i) of this paragraph, there shall be consideration of: new or existing programs; leveraging technology enhancements; revised regulatory structures; State coordination of federal solutions; utilizing market mechanisms; and any other factors considered appropriate. The Office, in consultation with the Commission and the Maryland Energy Administration, shall complete energy modeling for the Risk Report. 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. 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.

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. 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. The updates shall include: the status of and any changes to the forecasts and scenarios developed under § 7–1303 of this subtitle; information on any new forecasts and scenarios the Office has developed; and any other changes to the information or recommendations contained in the report or any preceding updates to the report. 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.

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. 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. The Office shall consider any feedback received through the public proceeding and determine if any further changes to the Risk Report are necessary. The Commission shall consider any feedback received through the public proceeding and determine whether any action under its jurisdiction is warranted.

This section does not apply to: the report required under § 7–1304(a)(3) of this subtitle; and the report required under § 7–1304(c)(2) of this subtitle. Each report required under this subtitle shall include documentation of stakeholder engagement and any feedback received related to the development of that report.