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<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>
