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SB 841

Maryland Senate•Engrossed

Summary

SB 841, the Utility RELIEF (Reducing Energy Load Inflation for Everyday Families) Act, was introduced in the Senate on Feb 6, 2026 by Sen. Brian Feldman (D) with 9 co-sponsors. It last saw action on Apr 13, 2026: Favorable with Amendments Report by Environment and Transportation.

Record

Text

SB 841 has 9 co-sponsors and 9 roll calls.

sb841/engrossed.txt
SENATE BILL 841
     P1, M5, C5  6lr2749
     By: Senators Feldman and, Hester, Ferguson, Brooks, Gile, Harris, Kagan,
  Simonaire, M. Washington, and Watson
     Introduced and read first time: February 6, 2026
     Assigned to: Education, Energy, and the Environment
     Committee Report: Favorable with amendments
     Senate action: Adopted with floor amendments
     Read second time: March 15, 2026
  CHAPTER ______
 AN ACT concerning
   Maryland Energy Administration – Renewable Energy Generation Projects –
Alternative Compliance Fee Auctions
   Utility RELIEF (Reducing Energy Load Inflation for Everyday Families) Act
 FOR the purpose of altering the uses of the Maryland Strategic Energy Investment Fund
      and certain compliance fees; requiring the Maryland Energy Administration, in
      consultation with the Public Service Commission, to develop and conduct certain
      annual, competitive, low–bid alternative compliance fee auctions for the
      development of certain renewable energy generation projects; establishing the
      purpose and procedures for an auction and the eligibility requirements for certain
      bidders; requiring the Administration and the Commission to set certain thresholds
      and capacity targets; requiring the Administration to set certain deadlines and
      milestones for projects awarded a contract; authorizing the Administration to
      provide certain extensions under certain circumstances; authorizing the recapture
      of certain funds under certain circumstances; and generally relating to alternative
      compliance fee auctions for renewable energy generation projects transferring the
      electric universal service program to the Office of Home Energy Programs and
      requiring the Office to authorize benefits under the program for certain electric
      customers; establishing the Green and Renewable Energy Efficiency for Nonprofits
      Loan Program in the Maryland Clean Energy Center; reducing a certain alternative
      compliance payment rate applicable to certain covered buildings; altering certain
      procedures related to the permitting, inspection, and interconnection of certain
      residential solar energy systems; requiring certain public service companies to
      include certain information on customer bills under certain circumstances; altering
     EXPLANATION: CAPITALS INDICATE MATTER ADDED TO EXISTING LAW.
  [Brackets] indicate matter deleted from existing law.
  Underlining indicates amendments to bill.
  Strike out indicates matter stricken from the bill by amendment or deleted from the law by
  amendment.
  *sb0841*
SENATE BILL 841
     certain provisions relating to and establishing certain requirements for large load
     customers, including requiring the Public Service Commission to establish a large
     load customer registry, a voluntary clean capacity rating program, and an
     interconnection process for certain large load customers; altering certain provisions
     regulating multiyear rate plans and limited–income mechanisms; prohibiting
     certain public service companies from recovering certain costs through rates;
     requiring a certain person to participate as a member in a regional transmission
     organization; requiring the Commission or, at the Commission’s direction, a person
     applying for a certificate of public convenience and necessity for the construction of
     any transmission line to provide certain notices to certain landowners regarding the
     construction; establishing that if the Commission makes a certain finding, a certain
     public hearing is invalidated or the Commission may order a new hearing under
     certain circumstances; altering certain provisions and establishing certain
     requirements relating to certificates of public convenience and necessity; requiring
     the Commission to establish and review certain electric system metrics; requiring
     electric companies to submit a certain electric system utilization improvement plan
     to the Commission at certain times; altering which gas companies are subject to
     certain requirements for the development and implementation of certain programs
     and services relating to energy efficiency, conservation, demand response, beneficial
     electrification, and greenhouse gas emissions reductions; altering certain provisions
     regulating certain energy efficiency and conservation plans; altering certain
     provisions regulating community solar energy generating systems; authorizing the
     Maryland Energy Administration to require applicants for the Energy Storage
     System Grant Program to participate in certain programs and tariffs; altering the
     net energy metering program; altering certain provisions regulating community
     solar energy generating systems; requiring the Commission to establish a successor
     program to the net energy metering program; authorizing the purchase, installation,
     and use of a certain portable solar energy generating system for residential use;
     prohibiting the Commission from adopting or enforcing a regulation or order that
     prohibits a public service company from offering a discount or payment plan for the
     connection or extension of a natural gas line to a customer’s property; altering the
     administration of certain incentives and rebates for acquiring and installing
     renewable on–site generating systems; altering certain provisions relating to energy
     solicitation and procurement; altering certain provisions relating to the Strategic
     Energy Planning Office; prohibiting the construction of a data center in certain
     development districts in Baltimore City; authorizing the Department of General
     Services to issue a request for proposals for a certain long–term lease on certain sites;
     authorizing the Board of Public Works to waive the inclusion of certain clauses in a
     certain contract; altering the uses of the Maryland Strategic Energy Investment
     Fund and certain compliance fees paid into the Fund; requiring the Administration
     to conduct certain alternative compliance fee auctions; requiring that certain
     compliance fees and proceeds be used in a certain manner; authorizing the Governor
     to transfer certain funds for certain purposes in a certain fiscal year; requiring the
     Commission to conduct certain proceedings, conduct a certain costs and benefits
     analysis, prepare certain recommendations, and develop certain guidelines and
     recommendations; authorizing certain committees of the General Assembly to
     request that the Strategic Energy Planning Office assess certain policy scenarios and
  SENATE BILL 841  3
submit a certain report to the committees on or before a certain date; requiring the
Commission to issue a certain request for information and request for certain
proposals for a certain purpose; requiring the Power Plant Research Program, in
consultation with the Department of the Environment and the Administration, to
conduct a certain study; altering and adding certain reporting requirements relating
to greenhouse gas emissions reductions, the Maryland Clean Energy Center,
transmission congestion, power flow analyses, and the Maryland Energy Storage
Program; and generally relating to energy policy in the State.
 BY renumbering
Article – Economic Development
Section 10–862 and the part “Part VII. Short Title”
to be Section 10–871 and the part “Part VIII. Short Title”
Annotated Code of Maryland
(2024 Replacement Volume and 2025 Supplement)
 BY renumbering
Article – Human Services
Section 5–5A–08 through 5–5A–10
to be Section 5–5A–09 through 5–5A–11, respectively
Annotated Code of Maryland
(2019 Replacement Volume and 2025 Supplement)
 BY transferring
Article – Public Utilities
Section 7–512.1
Annotated Code of Maryland
(2025 Replacement Volume and 2025 Supplement)
 to be
Article – Human Services
Section 5–5A–08
Annotated Code of Maryland
(2019 Replacement Volume and 2025 Supplement)
 BY repealing and reenacting, with amendments,
Article – Economic Development
Section 10–826
Annotated Code of Maryland
(2024 Replacement Volume and 2025 Supplement)
 BY adding to
      Article – Economic Development
      Section 10–862 through 10–868 to be under the new part “Part VII. Green and
Renewable Energy Efficiency for Nonprofits Loan Program”
      Annotated Code of Maryland
      (2024 Replacement Volume and 2025 Supplement)
SENATE BILL 841
 BY adding to
      Article – Environment
      Section 2–1209
      Annotated Code of Maryland
      (2013 Replacement Volume and 2025 Supplement)
 BY repealing and reenacting, with amendments,
Article – Environment
Section 2–1601 and 2–1602
Annotated Code of Maryland
(2013 Replacement Volume and 2025 Supplement)
 BY repealing and reenacting, without amendments,
Article – Financial Institutions
Section 12–401(a) and (i)
Annotated Code of Maryland
(2020 Replacement Volume and 2025 Supplement)
 BY repealing and reenacting, with amendments,
Article – Housing and Community Development
Section 2–102(a)(10)
Annotated Code of Maryland
(2019 Replacement Volume and 2025 Supplement)
 BY repealing and reenacting, without amendments,
Article – Human Services
Section 5–101(a), (b), and (c), 5–5A–02, and 5–5A–03
Annotated Code of Maryland
(2019 Replacement Volume and 2025 Supplement)
 BY repealing and reenacting, with amendments,
Article – Human Services
Section 5–5A–01
Annotated Code of Maryland
(2019 Replacement Volume and 2025 Supplement)
 BY repealing and reenacting, with amendments,
Article – Human Services
Section 5–5A–08
Annotated Code of Maryland
(2019 Replacement Volume and 2025 Supplement)
(As enacted by Section 2 of this Act)
 BY repealing and reenacting, with amendments,
Article – Local Government
Section 1–1320
Annotated Code of Maryland
  SENATE BILL 841  5
(2013 Volume and 2025 Supplement)
 BY adding to
      Article – Public Utilities
      Section 4–203.1, 7–207(f), 7–207.6, 7–207.7, 7–216.1(d), 7–219.1, 7–221.1, and
7–229; 7–232 through 7–234 to be under the new part “Part III. Large Load
Customers”; and 7–306.2(o), 7–306.4, 7–321, 7–322, and 7–1008
      Annotated Code of Maryland
      (2025 Replacement Volume and 2025 Supplement)
 BY repealing and reenacting, with amendments,
Article – Public Utilities
Section 4–212, 4–213, 4–309, 4–504, 7–103, 7–204, 7–207(a), (b)(3) and (4), and (c)
through (h), 7–208, 7–222, 7–223, 7–224(a)(1) and (d), 7–225, 7–306(d) and (j),
7–306.2(a)(4) and (d)(13), 7–505(b)(2) and (d)(2)(ii)3., 7–510.3(o), 7–1006,
7–1007, 7–1201(g), 7–1216(b), 7–1220, 7–1225, 7–1302(b), and 7–1304(c)
Annotated Code of Maryland
(2025 Replacement Volume and 2025 Supplement)
 BY repealing and reenacting, without amendments,
Article – Public Utilities
Section 3–106, 7–216.1(a)(1) and (5) and (c), 7–221, 7–226 through 7–228,
7–306(a)(1), (4), and (7), 7–306.2(a)(1) and (7) and (d)(1), 7–505(b)(1),
7–1201(a), 7–1216(a), and 7–1302(a)
Annotated Code of Maryland
(2025 Replacement Volume and 2025 Supplement)
 BY adding to
      Article – Real Property
      Section 14–134
      Annotated Code of Maryland
      (2023 Replacement Volume and 2025 Supplement)
 BY repealing and reenacting, without amendments,
Article – State Finance and Procurement
Section 4–101(a) and (b), 6–226(a)(2)(i) and (ii), and 13–218(a)(2)
Annotated Code of Maryland
(2021 Replacement Volume and 2025 Supplement)
 BY adding to
      Article – State Finance and Procurement
      Section 4–323, 6–226(a)(2)(iii)214., and 13–218(f)
      Annotated Code of Maryland
      (2021 Replacement Volume and 2025 Supplement)
 BY repealing and reenacting, with amendments,
Article – State Finance and Procurement
SENATE BILL 841
Section 6–226(a)(2)(iii)212. and 213. and 13–217
Annotated Code of Maryland
(2021 Replacement Volume and 2025 Supplement)
 BY repealing and reenacting, without amendments,
Article – State Government
Section 9–2012(b) and (c), 9–2016(a), (b), and (e), 9–20B–01(a) and (b), and
9–20B–05(b) and (c)
Annotated Code of Maryland
(2021 Replacement Volume and 2025 Supplement)
 BY adding to
      Article – State Government
      Section 9–2012(j) and 9–20B–05(a) and (i–2); and 9–20E–01 and 9–20E–02 to be
under the new subtitle “Subtitle 20E. Alternative Compliance Fee Auctions”
      Annotated Code of Maryland
      (2021 Replacement Volume and 2025 Supplement)
 BY repealing and reenacting, with amendments,
Article – State Government
Section 9–2012(j), 9–2016(f), and 9–20B–05(a), (e), (f), (g)(1), (g–1), (i), and (i–1)
Annotated Code of Maryland
(2021 Replacement Volume and 2025 Supplement)
 BY repealing and reenacting, with amendments,
Chapter 7 of the Acts of the General Assembly of the 2025 Special Session
Section 2
 BY repealing and reenacting, with amendments,
Chapter 19 of the Acts of the General Assembly of the 2025 Special Session
Section 2
 BY repealing and reenacting, without amendments,
Article – State Government
Section 9–2016(a), (b), and (e) and 9–20B–05(a), (b), (c), and (e)
Annotated Code of Maryland
(2021 Replacement Volume and 2025 Supplement)
 BY repealing and reenacting, with amendments,
Article – State Government
Section 9–2016(f) and 9–20B–05(f)(13) and (14)
Annotated Code of Maryland
(2021 Replacement Volume and 2025 Supplement)
 BY adding to
      Article – State Government
  SENATE BILL 841  7
Section 9–20B–05(f)(14) and (i); and 9–20E–01 and 9–20E–02 to be under the new
subtitle “Subtitle 20E. Alternative Compliance Fee Auctions”
Annotated Code of Maryland
(2021 Replacement Volume and 2025 Supplement)
 BY repealing
Article – State Government
Section 9–20B–05(g–1), (i), and (i–1)
Annotated Code of Maryland
(2021 Replacement Volume and 2025 Supplement)
 BY repealing
Article – State Government
Section 9–20B–05(g–1)
Annotated Code of Maryland
(2021 Replacement Volume and 2025 Supplement)
(As enacted by Chapter 595 of the Acts of the General Assembly of 2024)
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND,
 That Section(s) 10–862 and the part “Part VII. Short Title” of Article – Economic
 Development of the Annotated Code of Maryland be renumbered to be Section(s) 10–871
 and the part “Part VIII. Short Title”.
SECTION 2. AND BE IT FURTHER ENACTED, That Section(s) 5–5A–08 through
 5–5A–10 of Article – Human Services of the Annotated Code of Maryland be renumbered
 to be Section(s) 5–5A–09 through 5–5A–11, respectively.
SECTION 3. AND BE IT FURTHER ENACTED, That Section(s) 7–512.1 of
 Article – Public Utilities of the Annotated Code of Maryland be transferred to be Section(s)
 5–5A–08 of Article – Human Services of the Annotated Code of Maryland.
SECTION 4. AND BE IT FURTHER ENACTED, That the Laws of Maryland read
 as follows:
Article – Economic Development
 10–826.
(a)   On or before December 1 of each year, the Center shall report to the Governor,
 the Administration, and, in accordance with § 2–1257 of the State Government Article, the
 General Assembly.
(b)     The report shall include:
(1)   a complete operating and financial statement covering the Center’s
 operations;
SENATE BILL 841
(2)   a summary of the Center’s activities during the preceding fiscal year;
 [and]
(3)   a summary of the Center’s activities specific to clean energy innovation;
 AND
(4) A SUMMARY OF THE CENTER’S ACTIVITIES SPECIFIC TO THE
 GREEN AND RENEWABLE ENERGY EFFICIENCY FOR NONPROFITS LOAN PROGRAM
 ESTABLISHED UNDER § 10–863 OF THIS SUBTITLE, INCLUDING:
(I)    THE TOTAL NUMBER OF LOANS AWARDED;
(II)   THE TOTAL MONETARY VALUE OF THE LOANS AWARDED;
(III) THE AVERAGE TERM OF LOANS IN THE LOAN PORTFOLIO;
(IV) THE ESTIMATED ANNUAL ENERGY SAVINGS, IN
 KILOWATT–HOURS, RESULTING FROM MEASURES ASSOCIATED WITH LOANS IN THE
 LOAN PORTFOLIO; AND
(V)
  THE ESTIMATED REDUCTION OF GREENHOUSE GAS
 EMISSIONS, IN METRIC TONS, ASSOCIATED WITH LOANS IN THE LOAN PORTFOLIO.
 PART VII. GREEN AND RENEWABLE ENERGY EFFICIENCY FOR NONPROFITS LOAN
PROGRAM.
 10–862.
(A)   IN THIS PART THE FOLLOWING WORDS HAVE THE MEANINGS
 INDICATED.
(B)“BORROWER” MEANS A NONPROFIT ORGANIZATION THAT APPLIES AND
 QUALIFIES FOR A LOAN UNDER THE PROGRAM.
      (C) “FUND” MEANS THE GREEN AND RENEWABLE ENERGY EFFICIENCY
 FOR NONPROFITS LOAN FUND.
     (D) “NONPROFIT ORGANIZATION” MEANS AN ORGANIZATION THAT IS
 EXEMPT FROM FEDERAL INCOME TAX UNDER § 501(C)(3) OF THE INTERNAL
 REVENUE CODE.
(E)
  “PROGRAM” MEANS THE GREEN  AND     RENEWABLE        ENERGY
 EFFICIENCY FOR NONPROFITS LOAN PROGRAM.
  SENATE BILL 841  9
      (F)   “QUALIFYING ENERGY SYSTEM” MEANS A SYSTEM THAT:
(1) GENERATES ELECTRICITY OR USABLE THERMAL ENERGY THAT IS
 USED TO MEET ON–SITE DEMAND; AND
(2)
  ASSISTS THE STATE IN MEETING THE ENVIRONMENTAL AND
 GREENHOUSE GAS REDUCTION GOALS UNDER TITLE 2, SUBTITLE 12 OF THE
 ENVIRONMENT ARTICLE.
 10–863.
     THERE IS A GREEN AND RENEWABLE ENERGY EFFICIENCY FOR NONPROFITS
 LOAN PROGRAM IN THE CENTER.
 10–864.
      THE PURPOSE OF THE PROGRAM IS TO PROVIDE FINANCIAL ASSISTANCE IN
 THE FORM OF NO–INTEREST LOANS TO NONPROFIT ORGANIZATIONS FOR:
(1)THE PLANNING, PURCHASE, AND INSTALLATION OF QUALIFYING
 ENERGY SYSTEMS IN THE STATE; AND
(2) ACTIONS THAT IMPROVE ENERGY EFFICIENCY, SUCH AS
 REPAIRING OR REPLACING WINDOWS, DOORS, AND HEATING, VENTILATION, AND
 AIR–CONDITIONING SYSTEMS AND OTHER SIMILAR IMPROVEMENTS.
 10–865.
      THE CENTER SHALL:
(1)   MANAGE, SUPERVISE, AND ADMINISTER THE PROGRAM;
(2) ADOPT REGULATIONS TO ENSURE THAT LOANS PROVIDED TO
 NONPROFIT ORGANIZATIONS CARRY OUT THE PURPOSE OF THE PROGRAM; AND
(3) ATTACH TO ANY LOAN SPECIFIC TERMS THAT ARE CONSIDERED
 NECESSARY TO ENSURE THAT THE PURPOSE OF THE PROGRAM IS FULFILLED.
 10–866.
      (A)   (1)  A BORROWER MUST FILE AN APPLICATION WITH THE CENTER TO
 RECEIVE A LOAN UNDER THE PROGRAM.
(2) THE APPLICATION MUST BE SIGNED BY THE CHIEF OPERATING
 OFFICER OR AN AUTHORIZED OFFICER OF THE NONPROFIT ORGANIZATION.
SENATE BILL 841
      (B) THE APPLICATION MUST CONTAIN ANY INFORMATION THE CENTER
 DETERMINES IS NECESSARY, INCLUDING:
(1)THE PROJECTED COST OF THE QUALIFYING ENERGY SYSTEM,
 ENERGY EFFICIENCY ACTION, OR TECHNICAL ASSISTANCE BEING FINANCED
 THROUGH THE LOAN;
(2)THE LOCATION OF THE PROPERTY WHERE THE QUALIFYING
 ENERGY SYSTEM WILL BE INSTALLED OR AN ENERGY EFFICIENCY ACTION WILL
 OCCUR AND WHETHER THE PROPERTY IS OWNED OR LEASED BY THE APPLICANT;
 AND
(3) ANY ADDITIONAL INFORMATION RELATING TO THE BORROWER OR
 THE PROPOSED QUALIFYING ENERGY SYSTEM OR ENERGY EFFICIENCY ACTION
 BEING FINANCED THROUGH THE LOAN THAT MAY BE REQUIRED BY THE CENTER TO
 ADMINISTER THE PROGRAM.
(C) THE CENTER MAY APPROVE AN APPLICATION FOR A LOAN SPECIFIED IN
 § 10–867(A)(1) OF THIS SUBTITLE ONLY IF THE APPLICATION DEMONSTRATES THAT
 THE PROPOSED QUALIFYING ENERGY SYSTEM OR ENERGY EFFICIENCY ACTION IS
 ESTIMATED, BASED ON PROJECTED ENERGY COSTS, TO GENERATE ENERGY COST
 SAVINGS OVER THE USEFUL LIFE OF THE SYSTEM OR ENERGY EFFICIENCY ACTION
 THAT EQUAL OR EXCEED THE TOTAL AMORTIZED COST OF THE LOAN.
      (D)  IN APPROVING AN APPLICATION, THE CENTER SHALL CONSIDER AND
 GIVE PRIORITY TO AN APPLICANT THAT HAS AN ANNUAL BUDGET OF $1,000,000 OR
 LESS.
 10–867.
      (A)   LOANS FROM THE FUND MAY BE USED FOR:
(1) THE PURCHASE AND INSTALLATION OF A QUALIFYING ENERGY
 SYSTEM, INCLUDING ANY NECESSARY ANCILLARY MACHINERY, EQUIPMENT, OR
 FURNISHINGS;
(2)  TECHNICAL ASSISTANCE FOR THE PLANNING AND INSTALLATION
 OF A QUALIFYING ENERGY SYSTEM; AND
(3) ACTIONS THAT IMPROVE ENERGY EFFICIENCY, SUCH AS
 REPAIRING OR REPLACING WINDOWS, DOORS, AND HEATING, VENTILATION, AND
 AIR–CONDITIONING SYSTEMS AND OTHER SIMILAR IMPROVEMENTS.
  SENATE BILL 841  11
      (B)  EACH BORROWER FOR A LOAN UNDER SUBSECTION (A)(1) OF THIS
 SECTION SHALL CONTRIBUTE AT LEAST 10% OF THE COST OF THE QUALIFYING
 ENERGY SYSTEM OR ENERGY EFFICIENCY ACTION.
      (C)   (1)LOANS MADE UNDER THE PROGRAM SHALL BE REPAYABLE BY
 THE BORROWER IN ACCORDANCE WITH A SCHEDULE SET BY THE CENTER.
(2)   THE SCHEDULE SET BY THE CENTER MAY BE ON A DEFERRED
 PAYMENT BASIS.
      (D)   (1)   ABORROWER        SHALL   PROVIDE   ASSURANCES   FOR   THE
 REPAYMENT OF A LOAN.
(2)   THE ASSURANCES:
(I)    SHALL INCLUDE A PROMISSORY NOTE; AND
(II)   MAY INCLUDE A PLAN FOR REPAYMENT.
      (E)  LOANS MAY BE MADE IN CONJUNCTION WITH OR IN ADDITION TO
 FINANCIAL ASSISTANCE PROVIDED THROUGH OTHER STATE OR FEDERAL
 PROGRAMS.
 10–868.
      (A) THERE IS A GREEN AND RENEWABLE ENERGY EFFICIENCY FOR
 NONPROFITS LOAN FUND.
      (B)   THE CENTER SHALL ADMINISTER THE FUND.
      (C)  (1) THE FUND IS A SPECIAL, NONLAPSING FUND THAT IS NOT
 SUBJECT TO § 7–302 OF THE STATE FINANCE AND PROCUREMENT ARTICLE.
(2)   THE CENTER SHALL HOLD THE FUND SEPARATELY AND ACCOUNT
 FOR THE FUND.
      (D)   THE FUND CONSISTS OF:
(1)   MONEY APPROPRIATED IN THE STATE BUDGET TO THE FUND;
(2) MONEY TRANSFERRED FROM THE STRATEGIC ENERGY
 INVESTMENT FUND ESTABLISHED UNDER § 9–20B–05 OF THE STATE GOVERNMENT
 ARTICLE;
(3)   MONEY RECEIVED FROM ANY PUBLIC OR PRIVATE SOURCE;
SENATE BILL 841
(4)   INTEREST AND INVESTMENT EARNINGS OF THE FUND; AND
(5)   REPAYMENTS AND PREPAYMENTS ON LOANS MADE FROM THE
 FUND.
      (E)    (1)
  IN FISCAL YEAR 2028, THE GOVERNOR MAY INCLUDE IN THE
 ANNUAL BUDGET BILL AN APPROPRIATION OF $5,000,000 FOR THE FUND.
(2)
  IN FISCAL YEAR 2029, THE GOVERNOR MAY INCLUDE IN THE
 ANNUAL BUDGET BILL AN APPROPRIATION EQUAL TO AT LEAST $5,000,000 MINUS
 THE AMOUNT IN THE FUND AS OF JUNE 30 OF THE IMMEDIATELY PRECEDING
 FISCAL YEAR.
      (F)    THE FUND MAY BE USED ONLY:
(1)   TO PAY THE EXPENSES OF THE PROGRAM; AND
(2)   TO PROVIDE LOANS TO ELIGIBLE BORROWERS UNDER THE
 PROGRAM.
      (G)    (1)THE CENTER SHALL INVEST AND REINVEST THE MONEY OF THE
 FUND IN THE SAME MANNER AS OTHER STATE MONEY HELD BY THE CENTER MAY
 BE INVESTED.
(2)   ANY INVESTMENT EARNINGS OF THE FUND SHALL BE PAID INTO
 THE FUND.
(3) ANY REPAYMENT ON LOANS MADE FROM THE FUND SHALL BE
 PAID INTO THE FUND.
 10–869. RESERVED.
 10–870. RESERVED.
Article – Environment
 2–1209.
      (A)    THE DEPARTMENT SHALL PREPARE AN ANNUAL REPORT ON THE
 GREENHOUSE GAS EMISSIONS REDUCTIONS ACHIEVED AS A RESULT OF THE
 ADOPTION OF ELECTRIC VEHICLES IN THE STATE.
  SENATE BILL 841  13
(B)
  ON OR BEFORE DECEMBER 31, 2027, AND EACH DECEMBER 31
 THEREAFTER, THE DEPARTMENT SHALL SUBMIT THE REPORT REQUIRED UNDER
 SUBSECTION (A) OF THIS SECTION, IN ACCORDANCE WITH § 2–1257 OF THE STATE
 GOVERNMENT ARTICLE, TO THE SENATE COMMITTEE ON EDUCATION, ENERGY,
 AND THE ENVIRONMENT AND THE HOUSE ENVIRONMENT AND TRANSPORTATION
 COMMITTEE.
 2–1601.
(a)      In this subtitle the following words have the meanings indicated.
(b)   (1)   “Agricultural building” means a structure that is used primarily to
 cultivate, manufacture, process, or produce agricultural crops, raw materials, products, or
 commodities.
(2)   “Agricultural building” includes a greenhouse.
(C)      “BASELINE EMISSIONS” MEANS THE AMOUNT OF CARBON DIOXIDE
 CALCULATED AS THE AVERAGE AMOUNT OF CARBON DIOXIDE EMITTED PER
 KILOWATT–HOUR FOR THE PJM REGION IN WHICH THE BUILDING IS LOCATED
 MULTIPLIED BY THE AMOUNT OF ENERGY CONSUMED BY A COVERED BUILDING.
[(c)] (D)      “Building” has the meaning stated in the International Building Code.
[(d)] (E)   “Commercial building” means a building that is subject to the
 commercial provisions of the International Energy Conservation Code.
[(e)] (F)      (1)     “Covered building” means a building that:
(i)     1.    Is a commercial or multifamily residential building in the
 State; or
2.    Is owned by the State; and
(ii)  Has a gross floor area of 35,000 square feet or more, excluding
 the parking garage area.
(2)   “Covered building” does not include:
(i)     A building designated as a historic property under federal, State,
 or local law;
(ii)    A public or nonpublic elementary or secondary school building;
(iii)   A hospital;
SENATE BILL 841
(iv)   A manufacturing building; or
(v)    An agricultural building.
[(f)] (G)     “Critical infrastructure” has the meaning stated in § 1–101 of the Public
 Utilities Article.
[(g)] (H)    “Direct greenhouse gas emissions” means greenhouse gas emissions
 produced on–site by covered buildings.
[(h)] (I)     “District energy” means thermal energy generated at one or more
 central facilities that produce hot water, steam, or chilled water that then flows through a
 network of insulated underground pipes to provide hot water, space heating, air
 conditioning, or chilled water to nearby buildings.
(J)
  “EXCESS EMISSIONS” MEANS A BUILDING’S BASELINE EMISSIONS
 SUBTRACTED FROM THE BUILDING’S ON–SITE EMISSIONS.
[(i)] (K)    “Manufacturing building” means a facility in which manufacturing, as
 defined in § 2–1202 of this article, takes place.
(L)“ON–SITE EMISSIONS” MEANS THE AMOUNT OF CARBON DIOXIDE
 EMITTED BY AN ON–SITE GENERATOR.
 2–1602.
(a)    The Department shall develop building energy performance standards for
 covered buildings that achieve:
(1)    A 20% reduction in net direct greenhouse gas emissions on or before
 January 1, 2030, as compared with 2025 levels for average buildings of similar construction;
 and
(2)    Net–zero direct greenhouse gas emissions on or before January 1, 2040.
(b)    To facilitate the development of building energy performance standards under
 this section, the Department shall require the owners of covered buildings to measure and
 report direct emissions data to the Department annually beginning in 2025.
      (c)    (1)    On or before June 1, 2023, the Department shall adopt regulations to
 implement this section.
(2)    Regulations adopted under this section shall:
(i)    Subject to items (ii), (iii), (iv), and (v) of this paragraph, include
 energy use intensity targets by building type;
  SENATE BILL 841  15
(ii)    As necessary, include special provisions or exceptions to account
 for:
1.    Building age;
2.    Regional differences;
3.      The unique needs of particular building or occupancy
 types, including health care facilities, laboratories, assisted living and nursing facilities,
 military buildings, critical infrastructure, and buildings used in life sciences as defined in
 § 3–201 of the Economic Development Article;
4.    The use of district energy systems and biofuels by covered
 buildings;
5.     Crediting the generation of on–site renewable energy by
 covered buildings toward their energy use intensity targets;
6.       Crediting the greenhouse gas reduction impact of the
 on–site use of biomethane;
7.      Excluding the energy use and greenhouse gas emissions
 related to the production of steam for sterilization in a health care facility, laboratory,
 assisted living and nursing facility, military building, or building used in life sciences; and
8.    Excluding the energy use and greenhouse gas emissions
 related to the generation of emergency backup power at a health care facility, laboratory,
 assisted living and nursing facility, military building, critical infrastructure, or building
 used in life sciences;
(iii)   Consider the needs of the owners of covered buildings who:
1.     Are not responsible for the design, modification, fixtures,
 or equipment of commercial tenants;
2.     Do not have access to or control over building energy
 systems that are used or controlled by commercial tenants; or
3.    Own buildings occupied by commercial tenants who are
 responsible for all maintenance of and repairs to the buildings;
(iv) Subject to paragraph [(3)] (3)(I) of this subsection, exempt from
 energy use intensity targets a covered building that contains an area designed, built, and
 operated as a permanent sensitive compartmented information facility and is operated by
 an agency or contractor of:
SENATE BILL 841
1.     The U.S. General Services Administration;
2.     A.    The U.S. Department of Defense;
B.     The National Security Agency;
C.     The U.S. Department of Homeland Security; or
D.     Any other U.S. intelligence agency; or
3.     The State;
(v)     Exempt an owner of a covered building from energy use intensity
 reporting requirements if:
1.     The covered building meets the criteria under item (iv) of
 this paragraph; and
2.     In circumstances where tenant authorization is required,
 the tenant or occupant does not provide energy use information to the owner of the covered
 building due to concerns about the confidentiality of the building’s secure area;
(vi) Provide maximum flexibility to the owners of covered buildings
 to comply with building energy performance standards;
(vii) Subject to paragraph (3) of this subsection, include an alternative
 compliance pathway allowing the owner of a covered building to pay a fee for greenhouse
 gas emissions attributable to the building’s failure to meet direct greenhouse gas emissions
 reduction targets;
(viii) To the extent authorized by law, include financial incentives
 recommended by the Building Energy Transition Implementation Task Force; and
(ix) Include an annual reporting fee of $100 per covered building,
 adjusted for inflation, to cover the administrative costs of the program.
(3)   (I)     The Department may not set an alternative compliance fee that
 is less than the social cost of greenhouse gases adopted by the Department or the U.S.
 Environmental Protection Agency.
(II)
  FOR A COVERED BUILDING THAT USES ONLY ELECTRICITY
 THAT IS GENERATED ON–SITE AND IS NOT INTERCONNECTED WITH THE ELECTRIC
 SYSTEM:
1.      THE ALTERNATIVE COMPLIANCE FEE FOR THE
 BUILDING’S     BASELINE  EMISSIONS IS THE AVERAGE OF THE REGIONAL
  SENATE BILL 841  17
 GREENHOUSE GAS INITIATIVE CLEARING PRICE FOR THE IMMEDIATELY
 PRECEDING YEAR; AND
2.
  THE ALTERNATIVE COMPLIANCE FEE FOR EXCESS
 EMISSIONS, IF THE BUILDING’S EXCESS EMISSIONS ARE GREATER THAN ZERO, IS
 THE ALTERNATIVE COMPLIANCE FEE SET BY THE DEPARTMENT UNDER
 SUBPARAGRAPH (I) OF THIS PARAGRAPH.
(4)   (i)   Subject to subparagraph (ii) of this paragraph, the Department
 shall certify a building energy performance standards program adopted by a county
 administering a building energy performance standards program on or before March 1,
 2025, and waive the requirement for covered buildings in the county to comply with the
 statewide program adopted under this section.
(ii)   A county administering a building energy performance
 standards program certified by the Department under subparagraph (i) of this paragraph
 may take appropriate actions to enforce the standards, including:
1.  Establishing alternative compliance pathways for
 complying with energy use intensity and direct greenhouse gas emissions requirements
 established in the standards;
2.    Imposing and collecting alternative compliance fees up to
 the same amount and in the same manner allowed by the Department under this section;
 and
3.    Imposing and collecting penalties up to the same amount
 and in the same manner allowed by the Department under § 2–610 of this title.
(5)    Nothing in this section shall preclude a county administering a building
 energy performance standards program certified by the Department under paragraph (4)(i)
 of this subsection from:
(i)   Adopting building energy performance standards for buildings
 that are not covered buildings under the statewide program adopted under this section; or
(ii)   Modifying an adopted building performance standards program.
(d)   Electric companies and gas companies shall provide energy data, including
 whole–building and aggregate data, to the owners of covered buildings for benchmarking
 purposes.
(e)    In calculating the statewide standards developed by the Department under
 this section, an owner of a covered building may not consider greenhouse gas emissions or
 energy use by a commercial tenant of the covered building that:
SENATE BILL 841
(1)    Is a food service facility as defined in COMAR 10.15.03.02; and
(2)    Engages in commercial cooking and water heating.
Article – Financial Institutions
 12–401.
(a)    In this subtitle the following words have the meanings indicated.
(i)    “Executive officer” means a president, vice president, senior officer responsible
 for business operations, chief financial officer, or any other individual who performs similar
 functions.
Article – Housing and Community Development
 2–102.
(a)    The Department shall:
(10) develop and implement a weatherization program in accordance with
 Title 4 of this article and administer the low–income weatherization component of the
 electric universal service program in accordance with [§ 7–512.1 of the Public Utilities
 Article] § 5–5A–08 OF THE HUMAN SERVICES ARTICLE.
Article – Human Services
 5–101.
(a)    In this title the following words have the meanings indicated.
(b)    “Administration” means the Family Investment Administration.
(c)    “Department” means the Department of Human Services.
 5–5A–01.
(a)    In this subtitle the following words have the meanings indicated.
(B)    “COMMISSION” MEANS THE PUBLIC SERVICE COMMISSION.
[(b)] (C)    “Energy emergency” means a lack of fuel or the imminent
 discontinuation of energy services supplied by a fuel vendor or utility vendor that will
 endanger health, safety, or welfare.
  SENATE BILL 841  19
[(c)] (D)       “Fuel vendor” means a person that distributes, transports, produces, or
 offers for sale coal products, fuel oil, kerosene, bottled gas, propane, or wood for fuel use or
 consumption in the State.
[(d)] (E)     “Office” means the Office of Home Energy Programs.
[(e)] (F)     “Program” means the Energy Assistance Program.
[(f)] (G)    “Utility vendor” means a person that distributes, transports, or
 produces natural gas or electricity for use or consumption in the State.
 5–5A–02.
There is an Office of Home Energy Programs in the Administration.
 5–5A–03.
The purpose of the Office is to carry out this subtitle.
 5–5A–08.
(a)    (1)   (I)    [The Commission shall establish] THERE IS an electric
 universal service program [to assist electric customers with annual incomes at or below
 200% of the federal poverty level] IN THE OFFICE.
(II)
  THE OFFICE SHALL IMPLEMENT AND ADMINISTER THE
 ELECTRIC UNIVERSAL SERVICE PROGRAM.
(III) THE PURPOSE OF THE ELECTRIC UNIVERSAL SERVICE
 PROGRAM IS TO ASSIST ELECTRIC CUSTOMERS WITH ANNUAL INCOMES AT OR
 BELOW 200% OF THE FEDERAL POVERTY LEVEL.
(2)    The components of the electric universal service program shall include:
(i)    bill assistance;
(ii)   low–income residential weatherization; and
(iii) the retirement of arrearages for electric customers who have not
 received assistance in retiring arrearages under the ELECTRIC universal service program
 within the preceding 5 fiscal years.
(3)    The Department of Housing and Community Development is
 responsible for administering the low–income residential weatherization component of the
 electric universal service program.
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(4) [(i) The Department of Human Services, through the Office of Home
 Energy Programs, is responsible for administering the bill assistance and the arrearage
 retirement components of the electric universal service program.
(ii)]   (I)   The [Department of Human Services] OFFICE may:
1.      establish minimum and maximum benefits available to an
 electric customer under the bill assistance and arrearage retirement components; and
2.     coordinate benefits under the electric universal service
 program with benefits under the Maryland Energy Assistance Program and other available
 energy assistance programs.
(II) THE OFFICE SHALL AUTHORIZE BENEFITS UNDER THE
 ELECTRIC UNIVERSAL SERVICE PROGRAM FOR AN ELECTRIC CUSTOMER WHO DOES
 NOT MEET THE ELIGIBILITY REQUIREMENTS FOR THE FEDERAL LOW INCOME HOME
 ENERGY ASSISTANCE PROGRAM.
(5)   The [Department of Human Services] OFFICE may, with input from a
 panel or roundtable of interested parties, contract to assist in administering the bill
 assistance and the arrearage retirement components of the electric universal service
 program.
(6)   The Commission has oversight responsibility for the bill assistance and
 the arrearage retirement components of the electric universal service program and any
 other funds expended under this section.
(7)    In a specific case, the electric universal service program may waive the
 income eligibility limitation under paragraph (1) of this subsection in order to provide
 assistance to an electric customer who would qualify for a similar waiver under [the
 Maryland Energy Assistance Program established under Title 5, Subtitle 5A of the Human
 Services Article] ANOTHER PROGRAM ESTABLISHED UNDER THIS SUBTITLE.
(8)    (i)    If an applicant for bill assistance or arrearage retirement is to be
 denied due to deficient documentation, the [Department of Human Services] OFFICE shall:
1.    promptly provide notice of the deficiency to the applicant;
 and
2.      afford the applicant ample opportunity of not less than 3
 months to cure the deficiency.
(ii)  An electric company may not begin the process to terminate
 service to an applicant while the applicant is curing a deficiency under this paragraph.
  SENATE BILL 841  21
(9)   Notwithstanding paragraph (2)(iii) of this subsection, any assistance
 received for arrearage retirement by a customer in calendar years 2020 and 2021 may not
 be counted toward the limitation on the number of times the customer may receive
 assistance for arrearage retirement.
(b)   (1)   All customers shall contribute to the funding of the electric universal
 service program through a charge collected by each electric company.
(2)   The Commission shall determine a fair and equitable allocation for
 collecting the charges among all customer classes pursuant to subsection (e) of this section.
(3)   Except as provided in paragraph (4) of this subsection, in accordance
 with subsection (f)(6) of this section, any unexpended bill assistance and arrearage
 retirement funds returned to customers under subsection (f) of this section shall be
 returned to each customer class as a credit in the same proportion that the customer class
 contributed charges to the fund.
(4)    The Department [of Human Services] shall expend any unexpended bill
 assistance and arrearage funds that were collected in fiscal years 2010 through 2017, in
 excess of the total amount authorized under subsection (e) of this section, for one or more
 of the following purposes:
(i)   bill assistance and the retirement of arrearages for customers
 who are eligible to receive assistance at the time services are provided;
(ii)  targeted and enhanced low–income residential weatherization
 designed to remediate households that are considered ineligible to participate in other
 State energy efficiency programs due to significant health and safety hazards;
(iii) an arrearage management program for low–income customers in
 arrears, including providing credits or matching payments for customers who make timely
 payments on current bills; or
(iv)   an arrearage prevention program for low–income customers.
(5)   An electric company shall recover electric universal service program
 costs in accordance with § 7–512 of [this subtitle] THE PUBLIC UTILITIES ARTICLE.
(6)    As determined by the Office [of Home Energy Programs], bill assistance
 payments to an electric company may be on a monthly basis for each customer.
(7)  The Commission shall determine the allocation of the electric universal
 service charge among the generation, transmission, and distribution rate components of all
 classes.
(8)    The Commission may not assess the electric universal service
 surcharge on a per kilowatt–hour basis.
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(c)     (1)   On or before January 1 of each year, the Commission shall report,
 subject to § 2–1257 of the State Government Article, to the General Assembly on the electric
 universal service program, including:
(i)   subject to subsection (e) of this section, a recommendation on the
 total amount of funds for the ELECTRIC UNIVERSAL SERVICE program for the following
 fiscal year based on:
1.     the level of participation in and the amounts expended on
 bill assistance and arrearage retirement during the preceding fiscal year;
2.     how bill assistance and arrearage retirement payments
 were calculated during the preceding fiscal year;
3.    the projected needs for the bill assistance and the
 arrearage retirement components for the next fiscal year; and
4.     the amount of any bill assistance or arrearage retirement
 surplus carried over in the electric universal service program fund under subsection (f)(6)(i)
 of this section;
(ii)  for bill assistance, the total amount of need, as determined by the
 Commission, for electric customers with annual incomes at or below 175% of the federal
 poverty level and the basis for this determination;
(iii) the amount of funds needed, as determined by the Commission,
 to retire arrearages for electric customers who have not received assistance in retiring
 arrearages under the electric universal service program within the preceding 7 fiscal years,
 and the basis for this determination;
(iv) the amount of funds needed, as determined by the Commission,
 for bill assistance and arrearage retirement, respectively, for customers for whom income
 limitations may be waived under subsection (a)(7) of this section, and the basis for each
 determination;
(v)   the impact on customers’ rates, including the allocation among
 customer classes, from collecting the total amount recommended by the Commission under
 item (i) of this paragraph; and
(vi) the impact of using other federal poverty level benchmarks on
 costs and the effectiveness of the electric universal service program.
(2)   (i)     To assist the Commission in preparing its recommendations
 under paragraph (1) of this subsection, the Office [of Home Energy Programs] shall report
 to the Commission each year on:
  SENATE BILL 841  23
1.   the number of customers and the amount of distributions
 made to fuel customers under the Maryland Energy Assistance Program established under
 [Title 5, Subtitle 5A of the Human Services Article] THIS SUBTITLE, identified by funding
 source and fuel source;
2.    the cost of outreach and education materials provided by
 the Office [of Home Energy Programs] for the electric universal service program; and
3.     the amount of money that the Department [of Human
 Services] receives, and is projected to receive, for low–income energy assistance from:
A.   the Maryland Strategic Energy Investment Fund under §
 9–20B–05 of the State Government Article;
B.    with respect to electric customers only, the Maryland
 Energy Assistance Program; and
C.    any other federal, State, local, or private source.
(ii)  The Office [of Home Energy Programs] may satisfy the reporting
 requirement of subparagraph (i)1 of this paragraph by providing the Commission with a
 copy of material that contains the required information and that the Office [of Home
 Energy Programs] submits to the federal government.
(iii) The Commission shall include the information provided by the
 Office [of Home Energy Programs] under subparagraph (i) of this paragraph in its report
 to the General Assembly under paragraph (1) of this subsection.
(3)     Subject to subsection (d)(2) of this section, the Commission shall include
 the information provided by the Department of Housing and Community Development
 under subsection (d)(1) of this section in its report to the General Assembly under
 paragraph (1) of this subsection.
(4)    The electric universal service program shall be subject to audit by the
 Office of Legislative Audits in accordance with §§ 2–1220 through 2–1227 of the State
 Government Article.
      (d)    (1)   On or before January 1 of each year, the Department of Housing and
 Community Development shall report, in accordance with § 2–1257 of the State
 Government Article, to the General Assembly on the low–income residential
 weatherization component of the electric universal service program, including:
(i)    the amount of funds expended during the preceding fiscal year;
(ii)   the level of participation during the preceding fiscal year,
 including the number of households served in each area of the State; and
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(iii) the types of projects, including the average cost per unit,
 provided to households during the preceding fiscal year.
(2)    The Department of Housing and Community Development may satisfy
 the reporting requirement under paragraph (1) of this subsection by requesting the
 Commission to include the information in the Commission’s report required under
 subsection (c) of this section and providing the information to the Commission by the date
 specified by the Commission.
(e)  The total amount of funds to be collected for the electric universal service
 program each year shall be $37 million, allocated in the following manner:
(1)   $27.4 million shall be collected from the industrial and commercial
 classes; and
(2)   $9.6 million shall be collected from the residential class.
(f)    (1)   In this subsection, “fund” means the electric universal service program
 fund.
(2)   There is an electric universal service program fund.
(3)   (i)    1.    The Comptroller shall collect the revenue collected by
 electric companies under subsection (b) of this section and place the revenue into the fund.
2.     The General Assembly may appropriate funds
 supplemental to the funds collected under subsubparagraph 1 of this subparagraph.
(ii)  The fund is a continuing, nonlapsing fund that is not subject to §
 7–302 of the State Finance and Procurement Article.
(iii) The purpose of the fund is to assist electric customers as provided
 in subsection (a)(1) of this section.
(4)    The Department [of Human Services], with oversight by the
 Commission, shall disburse the bill assistance and arrearage retirement funds in
 accordance with the provisions of this section.
(5)   The Comptroller annually shall disburse up to $1,000,000 of
 low–income residential weatherization funds to the Department of Housing and
 Community Development, as provided in the State budget.
(6)    (i)  At the end of a given fiscal year, any unexpended bill assistance
 and arrearage retirement funds that were collected for that fiscal year shall be retained in
 the fund and shall be made available for disbursement through the first 6 months of the
 next fiscal year to customers who:
  SENATE BILL 841  25
1.     qualify for assistance from the fund during the given fiscal
 year;
2.     apply for assistance from the fund before the end of the
 given fiscal year; and
3.     remain eligible for assistance at the time services are
 provided.
(ii)  If the Commission determines that an extension is needed, the
 Commission may extend up to an additional 6 months the period in which unexpended bill
 assistance and arrearage retirement funds may be made available for disbursement under
 subparagraph (i) of this paragraph.
(iii) 1.      Any bill assistance and arrearage retirement funds
 collected for a given fiscal year that are retained under subparagraph (i) of this paragraph
 and that remain unexpended at the end of the period allowed under subparagraphs (i) and
 (ii) of this paragraph shall be returned to each customer class in the proportion that the
 customer class contributed charges to the fund for the given fiscal year in the form of a
 credit toward the charge assessed in the following fiscal year.
2.    If the Commission determines that it is impractical to
 establish a rate credit for the amount to be returned for a given fiscal year to customers
 under subsubparagraph 1 of this subparagraph, the Commission:
A.     may defer the return for not more than 2 additional fiscal
 years; and
B.     shall combine the returned amount for that fiscal year
 with amounts to be returned for the following fiscal years when calculating the rate credit
 for the final fiscal year of the period.
(g)    (1)   If a party to a merger or acquisition of an electric company or an affiliate
 of an electric company is required to distribute a credit to the customers in the electric
 company’s service territory under an agreement with the Commission in connection with
 the merger or acquisition, the Commission shall consider the adequacy of the current
 funding of the electric universal service program in providing assistance to customers who
 qualify under this section.
(2)  Any funds deposited into the electric universal service program fund as
 a result of an agreement with the Commission in connection with a merger or acquisition
 of an electric company or an affiliate of an electric company are in addition to, and may not
 substitute for, funds collected under subsection (e) of this section.
SENATE BILL 841
(h)    (1)   An arrearage prevention program under subsection (b)(4)(iv) of this
 section is intended to prevent or reduce arrearages for low–income customers who have
 participated in a low–income residential weatherization program.
(2)    (i)   The ARREARAGE PREVENTION program is intended as a
 one–time grant of money to establish ongoing arrearage prevention activities in the State.
(ii) The Department [of Human Services], in consultation with the
 Commission, will select for the ARREARAGE PREVENTION program up to two public or
 private entities as program recipients to administer the program.
(iii) At least one ARREARAGE PREVENTION program recipient must
 primarily serve customers in a major urban area of the State.
(3)    [A] AN ARREARAGE  PREVENTION       program    recipient   must
 demonstrate significant efforts to:
(i)   secure additional private investment in rooftop solar
 installation, including the use of ARREARAGE PREVENTION program money for credit
 enhancement, direct project support, or support for program recipients and customers; and
(ii)  provide employment in solar installation to unemployed and
 underemployed individuals, with preference for those who reside in the local jurisdiction
 where the installations will occur.
(4)   The ARREARAGE PREVENTION program may include the installation
 of rooftop solar electricity generation equipment after energy efficiency measures at the
 residential property have been completed.
Article – Local Government
 1–1320.
(a)    (1)   In this section the following words have the meanings indicated.
(2)   “Administration” means the Maryland Energy Administration.
(3)   “Residential energy storage system” means a system, on a residential
 customer’s side of the meter, used to store electrical energy, or mechanical, chemical, or
 thermal energy that was once electrical energy, for use as electrical energy at a later date
 or in a process that offsets electricity use at peak times.
(4)    “Residential solar energy system” means any configuration of solar
 energy devices that collects and distributes solar energy for the purpose of generating
 electricity and that has a single residential interconnection with the electrical grid.
  SENATE BILL 841  27
(5)“SOLAR PERMITTING FEE” MEANS A FEE EQUAL TO THE SUM OF
 ALL CHARGES IMPOSED BY A COUNTY OR MUNICIPALITY, INCLUDING CHARGES
 IMPOSED BY A PROVIDER OF SOLAR PERMITTING SOFTWARE, IN CONNECTION WITH
 AN APPLICATION FOR A RESIDENTIAL SOLAR ENERGY SYSTEM.
(6)    “Solar permitting software” means[:
(i)   the most recent version of a web–based platform, developed by
 the National Renewable Energy Laboratory, that provides a standard portal for receiving
 and processing residential solar energy system and residential energy storage system
 permit information; or
(ii)   automated software that functions to support the tracking and
 approval of residential building permits for residential solar energy systems, residential
 energy storage systems, main electrical panel upgrades, and main electrical panel devices]
 SOFTWARE OR A COMBINATION OF SOFTWARE THAT:
(I)
  AUTOMATES PLAN REVIEW FOR RESIDENTIAL  SOLAR
 ENERGY SYSTEMS TO THE MOST RECENT VERSION OF, AS APPLICABLE:
1.    THE      MARYLAND  BUILDING       PERFORMANCE
 STANDARDS;
2.   THE NATIONAL  ELECTRICAL CODE, INCLUDING
 LEGALLY ADOPTED LOCAL AMENDMENTS; AND
3.    THE STATE FIRE PREVENTION CODE;
(II)   PRODUCES CODE–COMPLIANT APPROVALS;
(III) ISSUES A CODE–COMPLIANT PERMIT;
(IV)   ACCEPTS ONLINE PAYMENTS FOR ANY PERMITTING FEES
 IMPOSED; AND
(V)
  ISSUES PERMITS OR PERMIT REVISIONS IMMEDIATELY ON
 RECEIPT OF ONLINE SUBMISSION OF PERMITTING FEE PAYMENTS, IF APPLICABLE.
(b)   This section applies to all counties and municipalities.
(c)    (1) Subject to subsection (d) of this section and except as provided in
 subsection (e) of this section, on or before August 1, [2025] 2027, each county and
 municipality shall implement solar permitting software for features supporting the
SENATE BILL 841
 [tracking] APPLICATION SUBMISSION, TRACKING, and approval of residential building
 permits for:
[(1)] (I)    residential solar energy systems;
[(2)] (II)   residential energy storage systems;
[(3)] (III) main electrical panel upgrades; and
[(4)] (IV)   main electrical panel derates.
(2)   (I)    A COUNTY OR MUNICIPALITY SHALL:
1.
  SUBJECT TO PARAGRAPH (7) OF THIS SUBSECTION,
 COMPLETE A REMOTE OR IN–PERSON INSPECTION REQUIRED FOR A PROJECT
 PERMITTED BY SOLAR PERMITTING SOFTWARE WITHIN 5 BUSINESS DAYS AFTER
 RECEIPT OF A COMPLETE PERMIT APPLICATION, AS DETERMINED BY THE COUNTY
 OR MUNICIPALITY; AND
2.
  MAKE PUBLICLY AVAILABLE FOR THE MOST RECENT
 PREVIOUS QUARTER FOR WHICH DATA IS AVAILABLE THE AVERAGE INSPECTION
 TIME FOR PROJECTS PERMITTED BY SOLAR PERMITTING SOFTWARE.
(II)
  BEGINNING JULY 1, 2028, IF A COUNTY OR MUNICIPALITY
 HAS HAD AN AVERAGE IN–PERSON INSPECTION TIME THAT IS GREATER THAN 5
 BUSINESS DAYS, BASED ON THE IMMEDIATELY PRECEDING 12–MONTH PERIOD, THE
 COUNTY OR MUNICIPALITY SHALL MAKE AVAILABLE AN OPTION FOR REMOTE
 INSPECTION THAT IS CAPABLE OF PROVIDING INSPECTION, SUBJECT TO
 PARAGRAPH (7) OF THIS SUBSECTION, WITHIN 5 BUSINESS DAYS AFTER RECEIPT OF
 A COMPLETE PERMIT APPLICATION.
(3)
  A COUNTY OR MUNICIPALITY SHALL REQUIRE AS PART OF A
 COMPLETE PERMIT APPLICATION:
(I)
  THIRD–PARTY CERTIFICATION THAT THE PROJECT HAS
 BEEN INSTALLED IN ACCORDANCE WITH ALL APPLICABLE NATIONAL ELECTRICAL
 CODE STANDARDS AND STATE AND LOCAL CODE AND SAFETY REQUIREMENTS; AND
(II)   PLANS DEMONSTRATING:
1.    ADEQUATE        ROOF       ACCESS   AND   SETBACK
 REQUIREMENTS;
  SENATE BILL 841  29
2.   CLEARLY    IDENTIFIED   EMERGENCY      SHUTOFF
 LOCATIONS; AND
3.   LABELING CONSISTENT WITH APPLICABLE SAFETY
 STANDARDS.
(4) A COUNTY OR MUNICIPALITY WITH AUTHORITY OVER
 PERMITTING A RESIDENTIAL SOLAR ENERGY SYSTEM MAY PERFORM, AT THE
 COUNTY’S OR MUNICIPALITY’S DISCRETION, AN IN–PERSON INSPECTION FOR A
 PERMIT APPLICATION SUBMITTED THROUGH SOLAR PERMITTING SOFTWARE:
(I)    IF REMOTE INSPECTION IS UNABLE TO BE COMPLETED;
(II)   ON REQUEST OR CONCERN OF AN INSPECTOR;
(III) IF SUFFICIENT DATA IS NOT AVAILABLE TO EVALUATE THE
 PERMIT APPLICATION; OR
(IV)   IF A DOCUMENTED HEALTH OR SAFETY ISSUE EXISTS.
(5)    REVIEW OF A PERMIT APPLICATION TO INSTALL A RESIDENTIAL
 SOLAR ENERGY GENERATING SYSTEM THAT IS SUBMITTED USING SOLAR
 PERMITTING SOFTWARE SHALL BE LIMITED TO A DETERMINATION OF WHETHER THE
 APPLICATION MEETS ALL APPLICABLE NATIONAL ELECTRICAL CODE STANDARDS
 AND STATE AND LOCAL CODE, HEALTH, AND SAFETY REQUIREMENTS.
(6)    (I)    SUBJECT TO SUBPARAGRAPH (II) OF THIS PARAGRAPH, A
 COUNTY OR MUNICIPALITY USING SOLAR PERMITTING SOFTWARE MAY CONDUCT A
 MANUAL REVIEW OF SOFTWARE–APPROVED PERMITS TO:
1.   PERFORM QUALITY–ASSURANCE AUDITS;
2.   REVIEW SUBMISSIONS FLAGGED BY THE SOFTWARE;
3.
  REVIEW PERMIT APPLICATIONS SUBMITTED BY A
 PERSON THAT HAS REPEATEDLY FAILED TO OBTAIN REQUIRED PERMITS OR
 REPEATEDLY FAILED TO PASS PERMIT INSPECTIONS;
4.   CONSIDER     PERMIT  APPLICATIONS        WITH
 NONSTANDARD STRUCTURAL CONDITIONS; OR
5.   ADDRESS DOCUMENTED PUBLIC SAFETY CONCERNS.
SENATE BILL 841
(II)
  MANUAL REVIEW OF SOFTWARE–APPROVED PERMITS
 SHALL BE COMPLETED WITHIN 5 BUSINESS DAYS AFTER THE PERMIT IS APPROVED.
(7)    (I)
  A COUNTY OR MUNICIPALITY MAY EXTEND THE DEADLINES
 ESTABLISHED UNDER PARAGRAPH (2) OF THIS SUBSECTION IF THE COUNTY OR
 MUNICIPALITY DETERMINES THAT AN EXTENSION IS NECESSARY TO ADDRESS
 DOCUMENTED SAFETY CONCERNS.
(II)   ON REQUEST BY A COUNTY OR MUNICIPALITY, A FIRE
 MARSHAL OR DESIGNATED SAFETY COORDINATOR MAY REVIEW A PROJECT
 PERMITTED BY SOLAR PERMITTING SOFTWARE DURING AN EXTENSION UNDER
 SUBPARAGRAPH (I) OF THIS PARAGRAPH.
(8)    (I)    THIS PARAGRAPH APPLIES ONLY TO A RESIDENTIAL SOLAR
 ENERGY SYSTEM:
1.   THAT IS OR WILL BE INSTALLED ON A RESIDENTIAL
 ROOFTOP; AND
2.
  WITH A GENERATING CAPACITY OF LESS THAN 30
 KILOWATTS, AS MEASURED BY THE ALTERNATING CURRENT RATING OF THE
 SYSTEM’S INVERTER.
(II)
  EXCEPT AS PROVIDED IN SUBPARAGRAPH (III) OF THIS
 PARAGRAPH, BEGINNING AUGUST 1, 2027, A COUNTY OR MUNICIPALITY MAY NOT
 SET A PERMITTING FEE FOR PERMITS ISSUED BY SOLAR PERMITTING SOFTWARE
 THAT EXCEEDS $500 FOR RESIDENTIAL SOLAR ENERGY SYSTEMS.
(III) A THIRD–PARTY PAYMENT PROCESSING CHARGE MAY BE
 ASSESSED FOR PERMITS ISSUED BY SOLAR PERMITTING SOFTWARE IN ADDITION TO
 THE MAXIMUM PERMITTING FEE UNDER SUBPARAGRAPH (II) OF THIS PARAGRAPH.
(9) AN INSPECTOR MAY REVIEW CONSTRUCTION DOCUMENTS THAT
 ARE PRODUCED BY THE SOLAR PERMITTING SOFTWARE.
(10) NOTWITHSTANDING ANY OTHER PROVISION OF THIS
 SUBSECTION, A RESIDENTIAL SOLAR ENERGY SYSTEM OR RESIDENTIAL ENERGY
 STORAGE SYSTEM MAY NOT BE PUT INTO OPERATION UNTIL THE COUNTY OR
 MUNICIPALITY PERFORMS A FINAL SAFETY INSPECTION TO CONFIRM THAT THE
 SYSTEM IS IN COMPLIANCE WITH ALL APPLICABLE NATIONAL ELECTRICAL CODE
 STANDARDS AND STATE AND LOCAL CODE, HEALTH, AND SAFETY REQUIREMENTS.
  SENATE BILL 841  31
(d)   A county or municipality may not be required to comply with the requirements
 of subsection (c) of this section if:
(1)    the county or municipality does not require a permit for:
(i)    residential solar energy systems; or
(ii)   residential solar energy systems paired with a residential solar
 energy storage system; or
(2)    as determined by the Administration, the automated software is no
 longer updated or maintained.
(e)    The Administration shall delay the initial implementation or suspend the
 requirements of subsection (c) of this section if there are insufficient State or federal funds
 available to the Administration to provide financial support to a county or municipality
 implementing solar permitting software as defined in subsection (a)(5)(i) of this section.
(F) AN ELECTRIC COMPANY, OTHER THAN A MUNICIPAL ELECTRIC UTILITY
 OR A THIRD–PARTY CONTRACTOR FOR THE ELECTRIC COMPANY, SHALL PERFORM
 ANY METER DISCONNECTION AND RECONNECTION NECESSARY FOR THE
 INTERCONNECTION OF A RESIDENTIAL SOLAR ENERGY SYSTEM, RESIDENTIAL
 ENERGY STORAGE SYSTEM, OR BOTH, WITHIN 5 BUSINESS DAYS AFTER RECEIVING A
 PROPERLY COMPLETED REQUEST FROM THE OWNER OR INSTALLER OF THE SYSTEM.
(G)(1) ON OR BEFORE JANUARY 31, 2028, AND EACH JANUARY 31
 THEREAFTER, EACH COUNTY AND MUNICIPALITY SHALL SUBMIT AN ANNUAL
 REPORT TO THE ADMINISTRATION DETAILING THE TOTAL NUMBER OF PERMITS
 ISSUED BY THE COUNTY OR MUNICIPALITY FOR RESIDENTIAL SOLAR ENERGY
 SYSTEMS FOR THE IMMEDIATELY PRECEDING YEAR.
(2)
  THE ADMINISTRATION, IN CONSULTATION WITH EACH COUNTY
 OR MUNICIPALITY THAT SUBMITS A REPORT UNDER PARAGRAPH (1) OF THIS
 SUBSECTION, SHALL USE THE INFORMATION PROVIDED UNDER PARAGRAPH (1) OF
 THIS SUBSECTION TO PREPARE AN ANNUAL REPORT DETAILING THE TOTAL NUMBER
 OF PERMITS ISSUED FOR RESIDENTIAL SOLAR ENERGY SYSTEMS IN THE STATE FOR
 THE IMMEDIATELY PRECEDING YEAR.
(3) ON OR BEFORE MARCH 31, 2028, AND EACH MARCH 31
 THEREAFTER, THE ADMINISTRATION SHALL SUBMIT THE REPORT PREPARED
 UNDER PARAGRAPH (2) OF THIS SUBSECTION TO THE GENERAL ASSEMBLY AND THE
 SENATE COMMITTEE ON EDUCATION, ENERGY, AND THE ENVIRONMENT IN
 ACCORDANCE WITH § 2–1257 OF THE STATE GOVERNMENT ARTICLE.
SENATE BILL 841
(H) THE ATTORNEY GENERAL MAY SEEK JUDICIAL ENFORCEMENT AGAINST
 A COUNTY OR MUNICIPALITY THAT FAILS TO COMPLY WITH THIS SECTION.
Article – Public Utilities
 3–106.
(a)   If a person timely files, the person may apply to intervene in a proceeding
 before the Commission.
(b)   The Commission shall grant leave to intervene unless the Commission
 concludes that:
(1)     the parties to the proceeding adequately represent the interest of the
 person seeking to intervene; or
(2)   the issues that the person seeks to raise are irrelevant or immaterial.
(c)    (1)   An intervenor has all the rights of a party to a proceeding.
(2)   In a proceeding before the Commission, an individual who is an
 intervenor may represent himself or herself.
 4–203.1.
(A)    (1)
  THIS SECTION APPLIES ONLY TO A PUBLIC SERVICE COMPANY
 THAT IS AN INVESTOR–OWNED ELECTRIC COMPANY, A GAS COMPANY, OR A
 COMBINATION GAS AND ELECTRIC COMPANY.
(2)THIS SECTION DOES NOT APPLY TO A MUNICIPAL ELECTRIC
 UTILITY OR AN ELECTRIC COOPERATIVE.
(B)    IN ADDITION TO THE REQUIREMENTS IN § 4–203 OF THIS SUBTITLE,
 WHEN A PUBLIC SERVICE COMPANY INITIATES A PROCEEDING THAT MAY LEAD TO A
 RATE CHANGE, THE PUBLIC SERVICE COMPANY SHALL INCLUDE ON EACH
 CUSTOMER’S BILL A LINK TO THE APPLICABLE CASE OR DOCKET NUMBER FOR THE
 PROCEEDING.
 4–212.
(a)    (1)   In this section the following words have the meanings indicated.
(2)    “Contract capacity” means the amount of monthly peak load
 requirements:
  SENATE BILL 841  33
(i)   that is mutually agreed to by an electric company and a large
 load customer for each month remaining in a contract term after the load ramp period has
 ended; and
(ii)   for which:
1.      the electric company agrees to provide all of the
 components of retail electric service subject to the terms and conditions in its tariffs; and
2.    the large load customer agrees to purchase service at that
 load level for the stated term of the contract and under the same terms and conditions as
 those stated in the contract.
(3)    “Large load customer” [means a commercial or industrial customer for
 retail electric service that:
(i)    has or is projected to have an aggregate monthly demand of at
 least 100 megawatts; and
has or is projected to have a load factor of over 80%] HAS THE
  (ii)
 MEANING STATED IN § 7–232 OF THIS ARTICLE.
(4)    “Load ramp period” means the period of time from commencement of
 service until a large load customer’s billing calculation is based on the full contract capacity.
(b)   It is the intent of the General Assembly that residential retail electric
 customers in the State should not bear the financial risks associated with large load
 customers interconnecting to the electric system serving the State.
(c)    (1)   (i)   On or before September 1, 2026, each investor–owned electric
 company and each electric cooperative shall submit to the Commission for approval a
 specific rate schedule for large load customers that accomplishes the intent of subsection
 (b) of this section.
(ii)  Each municipal electric utility that receives an application for
 retail electric service from a large load customer shall submit to the Commission for
 approval a specific rate schedule for large load customers.
(2)    (i)    Service under a specific rate schedule shall be available to large
 load customers that will use, within the initial contract term:
1.     a monthly maximum demand of more than [100] 25
 megawatts at a single location; or
2.    an aggregated contract capacity in the electric company’s
 service territory of more than [100] 25 megawatts.
SENATE BILL 841
(ii)  Except as provided in subparagraph (iii) of this paragraph, large
 load customers that qualify for a specific rate schedule after the effective date of that
 schedule:
1.    shall take service under the specific rate schedule; and
2.    may not be allowed to take service under any other
 existing schedule.
(iii)   A specific rate schedule does not apply to:
1. the facility of an existing large load customer that has
 signed a service agreement before the effective date of the schedule if:
[1.] A.
  the large load customer’s existing load does not
 expand by more than 25 megawatts at that facility under the existing service agreement;
 or
[2.] B.   the large load customer does not sign a new service
 agreement to expand the facility’s load by more than 25 megawatts above the contract
 capacity of the existing service agreement; OR
2.   ELECTRIFIED   THERMAL  ENERGY    GENERATION
 ASSETS INTERCONNECTED WITH A DISTRICT ENERGY SYSTEM IF, AS DETERMINED
 BY THE COMMISSION, THE OPERATIONAL CHARACTERISTICS OF THE GENERATION
 ASSETS DO NOT POSE A MATERIAL RELIABILITY RISK.
(d)   In making a determination on whether to approve a specific rate schedule
 submitted under subsection (c) of this section, the Commission shall consider whether the
 rate schedule:
(1)   requires a large load customer to cover the just and reasonable costs
 associated with any electric transmission or distribution system buildout required to:
(i)      interconnect the large load customer to the electric system
 serving the State; or
(ii)    serve the large load customer;
(2)    protects residential retail electric customers from the financial risks
 associated with large load customers through the use of:
(i)     load ramp periods;
(ii)   minimum billing demand for electric distribution and
 transmission service that is a high percentage of a large load customer’s contract capacity;
  SENATE BILL 841  35
(iii)   long–term contractual commitments and exit fees;
(iv)    guarantee or collateral requirements; and
(v)   penalties and reimbursement requirements for the large load
 customer if the large load customer delays or cancels a project after the electric company
 has begun buildout to accommodate the large load customer; [and]
(3)    ALLOCATES TO THE LARGE LOAD CUSTOMER:
(I)
  ANY INCREASED OR AVOIDED COSTS THAT THE
 COMMISSION DETERMINES HAVE BEEN CAUSED BY A LARGE LOAD CUSTOMER,
 INCLUDING ANY INCREASED OR AVOIDED WHOLESALE COSTS SUCH AS:
1.    TRANSMISSION COSTS; AND
2.    CAPACITY COSTS; AND
(II)
  NOTWITHSTANDING § 4–503(B) OF THIS TITLE AND AS
 AUTHORIZED UNDER FEDERAL LAW, ANY DIRECT OR INDIRECT COSTS, FEES, AND
 OBLIGATIONS THAT ARE NORMALLY APPLIED TO RETAIL ELECTRIC CUSTOMERS IN
 THE SERVICE TERRITORY IN WHICH THE LARGE LOAD CUSTOMER IS LOCATED OR
 INTERCONNECTED IF THE COMMISSION DETERMINES THAT THE DIRECT OR
 INDIRECT COSTS, FEES, AND OBLIGATIONS SHOULD BE ATTRIBUTABLE TO THE
 LARGE LOAD CUSTOMER; AND
[(3)] (4)   sufficiently ensures that the allocation of costs to large load
 customers under the schedule does not result in customers that are not large load
 customers unreasonably subsidizing the costs of large load customers under the schedule.
(e)   IT IS THE INTENT OF THE GENERAL ASSEMBLY THAT THE COSTS
 ALLOCATED TO A LARGE LOAD CUSTOMER IN ACCORDANCE WITH SUBSECTION
 (D)(3) OF THIS SECTION INCLUDE COSTS THAT ARE INCURRED BY A LARGE LOAD
 CUSTOMER THAT IS NOT PROVIDING 100% OF ITS CAPACITY AND ARE ASSOCIATED
 WITH:
(1)
  CAPACITY PROCUREMENT, INCLUDING BACKSTOP RELIABILITY
 PROCUREMENT; AND
(2)    COSTS ASSOCIATED WITH THE INTERCONNECTION PROCESS.
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(F)   Before signing a contract for service under a specific rate schedule submitted
 under subsection (c) of this section, a large load customer under the schedule is required
 to:
(1)    submit a request for a load study to determine the necessary contract
 capacity for the large load customer and pay any applicable fees associated with the study;
(2)   designate a specific site where the large load customer’s project will be
 constructed and served by the electric company;
(3)     own or have the exclusive right to use the land designated in item (2) of
 this subsection for the project; and
(4)    meet any other requirements specified under the rate schedule.
[(f)] (G)     (1)    On or before June 1, 2026, the Commission shall adopt
 regulations to carry out this section.
(2)    The regulations shall:
(i)    establish minimum notice requirements and deadlines related to
 load study requests and contract terminations and adjustments;
(ii)   if considered necessary by the Commission, specify common
 forms of acceptable collateral to satisfy the requirements of this section; and
(iii)   establish deadlines related to completion of load studies and
 payment of fees.
 4–213.
      (a)    This section applies only to a public service company that is an electric
 company, gas company, or combination gas and electric company.
(b)    Unless otherwise authorized by law, the Commission may approve the use of
 a multiyear rate plan for distribution base rates only if the plan:
(1)    demonstrates the customer benefits of the investment; and
(2)    does not allow for:
(I)    the public service company to file for reconciliation of cost or
 revenue variances of the approved revenue component used by the Commission to establish
 just and reasonable rates IF THE RECONCILIATION WOULD RESULT IN ADDITIONAL
 CHARGES TO CUSTOMERS; OR
  SENATE BILL 841  37
(II)
  THE USE OF COST–SHARING MECHANISMS THAT WOULD
 RESULT IN ADDITIONAL CHARGES TO CUSTOMERS ABOVE THE APPROVED REVENUE
 COMPONENT USED BY THE COMMISSION TO ESTABLISH JUST AND REASONABLE
 RATES.
(c)  A public service company that files or has filed an application for a multiyear
 rate plan may not subsequently file for reconciliation of cost or revenue variances [of] THAT
 WOULD RESULT IN ADDITIONAL CHARGES TO CUSTOMERS DUE TO THE PUBLIC
 SERVICE COMPANY SPENDING MORE THAN the approved revenue component used by
 the Commission to establish the multiyear rates unless the filing for reconciliation was
 made on or before January 1, 2025.
(D)    THE COMMISSION MAY REQUIRE A PUBLIC SERVICE COMPANY TO
 INCLUDE A RECONCILIATION PROCEDURE IN ITS MULTIYEAR RATE PLAN TO REFUND
 CUSTOMERS THE DIFFERENCE BETWEEN:
(1)
  THE  PUBLIC      SERVICE      COMPANY’S       FORECAST       REVENUE
 REQUIREMENT; AND
(2)
  THE   PUBLIC   SERVICE   COMPANY’S   ACTUAL  REVENUE
 REQUIREMENT DURING THE TERM OF THE MULTIYEAR RATE PLAN.
     (E) IF APPROVED BY THE COMMISSION, A RECONCILIATION PROCEDURE
 REQUIRED UNDER SUBSECTION (D) OF THIS SECTION SHALL INCLUDE A
 PERFORMANCE INCENTIVE MECHANISM FOCUSED ON AFFORDABILITY AND COST
 CONTAINMENT.
 4–309.
(a)    (1)    In this section the following words have the meanings indicated.
(2)   “Eligible limited–income customer” means a residential customer of a
 utility company with annual income that:
(i)    1.      is at or below 175% of the federal poverty level; or
2.      for a customer at least 67 years of age, is at or below 200%
 of the federal poverty level; or
(ii)   meets a broader designation approved by the Commission.
(3)    “Limited–income mechanism” or “mechanism” means a process
 approved by the Commission under this section to benefit an eligible limited–income
 customer of a utility company.
SENATE BILL 841
(4)    “Payment plan” means an agreement between an eligible
 limited–income customer and a utility company to pay an arrearage balance over a specific
 period of time to avoid disconnection of a utility service.
(5)    (i)  “Utility company” means an electric company, a gas and electric
 company, or a gas company.
(ii)   “Utility company” does not include a small rural electric
 cooperative.
(b)   The General Assembly finds and declares that the societal benefits of a
 well–constructed limited–income mechanism to benefit Maryland’s eligible limited–income
 customers are in the public interest.
(c)    (1)   Subject to the approval of the Commission, a utility company shall
 adopt a limited–income mechanism to benefit an eligible limited–income customer.
(2)   Notwithstanding § 4–503(b) of this title, the mechanism may take the
 form of a program, tariff provision, credit, rate, rider, or other means to assist an eligible
 limited–income customer to afford a utility service.
(3)   A municipal electric utility may adopt a limited–income mechanism
 subject to the approval of the Commission in the same manner as a utility company in
 accordance with this section.
     (d)    (1)   A utility company that proposes a limited–income mechanism for
 Commission approval under subsection (c) of this section shall include the proposal in:
(i)    a separate application for approval of the mechanism; or
(ii) only with the prior approval of the Commission, an application
 for a base rate proceeding, including an alternative rate proceeding, or any other proceeding
 to alter the utility company’s base rates under the authority of the Commission.
(2)    A proposal submitted under this section shall allocate the prudently
 incurred costs of the limited–income mechanism across rate classes.
(3)   The proposal shall include:
(i)    a detailed description of the proposed mechanism;
(ii)   the proposed method for allocating the mechanism’s costs across
 customer classes;
(iii) the rationale supporting the utility company’s proposal for a
 mechanism to benefit the eligible limited–income customers in the utility company’s service
 territory;
  SENATE BILL 841  39
(iv) a time frame and process for the Commission to review the
 effectiveness of the mechanism after implementation; and
(v)   any other information the Commission considers necessary or
 useful to evaluate the proposal.
(e)    In evaluating a limited–income mechanism, the Commission shall consider:
(1)     the degree to which the mechanism promotes affordability of electricity
 or natural gas for limited–income customers;
(2)    the public interest in allocating the costs of the mechanism between the
 utility company’s shareholders and rate payers;
(3)   the impact on rates, utility operating costs, customer arrearages,
 customer disconnections, uncollectible costs, and successful completion of payment plans;
(4)    the ability of a limited–income customer to continue to receive benefits
 when relocating within the same service territory;
(5)    coordination of benefits under the mechanism with any other public or
 private assistance that may be available to the customer;
(6)    a minimum level of support or assistance structure to provide equitable
 availability of limited–income assistance across the State; and
(7)   any other information the Commission considers appropriate.
(f)    (1)
  THE COMMISSION SHALL TAKE FINAL ACTION ON A PROPOSAL
 SUBMITTED UNDER THIS SECTION AS SOON AS PRACTICABLE.
(2)
  THE COMMISSION SHALL REQUIRE EACH UTILITY COMPANY TO
 IMPLEMENT AN APPROVED LIMITED–INCOME MECHANISM AS SOON AS
 PRACTICABLE.
(G) If an approved limited–income mechanism requires that the Office of Home
 Energy Programs must certify an eligible limited–income customer’s qualifications to
 participate in a limited–income mechanism, the Office shall certify an eligible
 limited–income customer’s qualifications before the customer may participate in the
 mechanism.
[(g)] (H)     An eligible limited–income customer who participates in a mechanism
 under this section may also be eligible for other assistance programs offered in the State,
 including those offered by a utility company or the Office of Home Energy Programs, the
 Department of Housing and Community Development, or any other public or private
SENATE BILL 841
 source.
 4–504.
(A)    (1)   IN THIS SECTION THE FOLLOWING WORDS HAVE THE MEANINGS
 INDICATED.
(2)   (I)
  “BONUS” MEANS A FORM OF DIRECT OR INDIRECT
 PAYMENT, CONSIDERATION, OR COMPENSATION THAT IS PAID OR CONVEYED TO AN
 EMPLOYEE EXECUTIVE OFFICER OF A PUBLIC SERVICE COMPANY IN ADDITION TO
 THE EMPLOYEE’S EXECUTIVE OFFICER’S BASE PAY.
(II)   “BONUS” INCLUDES:
1.  COMPENSATION     THAT   THE  PUBLIC   SERVICE
 COMPANY DOES NOT FORMALLY LABEL AS A BONUS PAYMENT;
2.
  ANY FORM OF INCENTIVE COMPENSATION THE FACT
 AND AMOUNT OF WHICH IS UNDER THE DISCRETION OF THE PUBLIC SERVICE
 COMPANY UNTIL A TIME CLOSE TO THE END OF THE PERIOD FOR WHICH THE
 INCENTIVE PAYMENT IS PAID; AND
3.
  PAYMENTS GIVEN IN ADDITION TO BASE PAY THAT
 ARE CONTINGENT ON THE OCCURRENCE OF ONE OR MORE EVENTS OR CONDITIONS.
(3) (I)   “COMPENSATION” MEANS A FORM OF PAYMENT OR
 CONSIDERATION CONVEYED TO OR FOR THE BENEFIT OF AN EMPLOYEE EXECUTIVE
 OFFICER OF A PUBLIC SERVICE COMPANY, THE PARENT COMPANY OF A PUBLIC
 SERVICE COMPANY, OR ANY OTHER AFFILIATE OF A PUBLIC SERVICE COMPANY IN
 CONNECTION WITH THE EMPLOYEE’S EXECUTIVE OFFICER’S WORK FOR A PUBLIC
 SERVICE COMPANY.
(II)   “COMPENSATION” INCLUDES:
1.   DIRECT AND INDIRECT METHODS OF CONFERRING
 BENEFITS;
2.   CASH AND NONCASH BENEFITS;
3.   SALARY,   BONUSES,    PERIOD   PAYMENTS,   AND
 SEVERANCE PAY; AND
  SENATE BILL 841  41
4.
  THE VALUE OF A PERQUISITE, COMPENSATORY OR
 PAID LEAVE, OR OTHER BENEFIT NOT EXCLUDED UNDER SUBPARAGRAPH (III) OF
 THIS PARAGRAPH.
(III) “COMPENSATION” DOES NOT INCLUDE ANY EXPENDITURE
 OF A PUBLIC SERVICE COMPANY FOR HEALTH, MEDICAL, DENTAL, VISION, OR LIFE
 INSURANCE OR DISABILITY PAY.
(4)“OFFICER” MEANS AN EMPLOYEE OF A PUBLIC SERVICE
 COMPANY, THE PARENT COMPANY OF A PUBLIC SERVICE COMPANY, OR ANY OTHER
 AFFILIATE OF A PUBLIC SERVICE COMPANY WHO:
(I)    USING THE EMPLOYEE’S INDEPENDENT JUDGMENT:
1.
  IS AUTHORIZED BY THE EMPLOYEE’S EMPLOYER TO
 HIRE, TRANSFER, SUSPEND, LAY OFF, RECALL, PROMOTE, DISCHARGE, ASSIGN,
 REWARD, OR DISCIPLINE OTHER EMPLOYEES;
2.
  IS RESPONSIBLE  FOR     DIRECTING      THE    WORK
 PERFORMANCE OF OTHER EMPLOYEES; AND
3.     IS RESPONSIBLE FOR RESPONDING TO EMPLOYEE
 COMPLAINTS; OR
(II) IS EMPLOYED IN A BONA FIDE EXECUTIVE CAPACITY UNDER
 THE FEDERAL FAIR LABOR STANDARDS ACT.
(4) “EXECUTIVE OFFICER” HAS THE MEANING STATED IN § 12–401 OF
 THE FINANCIAL INSTITUTIONS ARTICLE.
[(a)] (B)   This section applies only to a public service company that is an
 investor–owned electric company, gas company, or combination gas and electric company.
[(b)] (C)    A public service company may not recover through rates any costs
 associated with:
(1)   membership, dues, sponsorships, or contributions to an industry trade
 association, group, or related entity exempt from taxation under § 501(c)(6) of the Internal
 Revenue Code; [or]
(2)  the acquisition, use, or allocation of costs associated with a private
 plane that is owned or leased by the public service company or its holding company ; OR
SENATE BILL 841
(3)
  COMPENSATION FOR AN EXECUTIVE OFFICER THAT EXCEEDS
 110% OF THE MAXIMUM ANNUAL SALARY PAYABLE TO THE CHAIR OF THE
 COMMISSION FOR THE SAME CALENDAR YEAR.
(D)   (1)THE BOARD OF DIRECTORS OF EACH PUBLIC SERVICE COMPANY
 SHALL ADOPT A COMPANY–WIDE POLICY PLACING REASONABLE COST LIMITATIONS,
 IN ACCORDANCE WITH GUIDANCE PUBLISHED BY THE COMMISSION UNDER
 PARAGRAPH (2) OF THIS SUBSECTION, ON EXPENDITURES THAT THE PUBLIC
 SERVICE COMPANY INTENDS TO RECOVER THROUGH RATES FOR:
(I)    ENTERTAINMENT AND EVENTS;
(II)   OFFICE AND FACILITY RENOVATIONS;
(III) TRANSPORTATION SERVICES, INCLUDING AVIATION;
(IV)   STAFF DEVELOPMENT ACTIVITIES OR EVENTS;
(V)    PERFORMANCE INCENTIVES; AND
(VI)
  OTHER ACTIVITIES OUTSIDE THE SCOPE OF THE NORMAL
 COURSE OF BUSINESS OPERATIONS.
(2)    THE
  COMMISSION SHALL PUBLISH GUIDANCE DEFINING
 “REASONABLE COST LIMITATIONS” FOR EXPENDITURES UNDER THIS SUBSECTION.
(3)
  EACH PUBLIC SERVICE COMPANY SHALL SEND A COPY OF THE
 POLICY ADOPTED UNDER PARAGRAPH (1) OF THIS SUBSECTION TO THE
 COMMISSION:
(I)    AS SOON AS PRACTICABLE; AND
(II)   EACH TIME THE POLICY IS UPDATED, BUT NOT LESS OFTEN
 THAN EVERY 5 YEARS.
 7–103.
(a)   An electric company incorporated in Maryland may:
(1)   manufacture, sell, and furnish electric power in any municipal
 corporation or county of the State;
(2)    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
  SENATE BILL 841  43
(3)   connect the power line from the place of supply to any other structure
 or object.
(b)    (1)    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.
(2)     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.
(C)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.
 7–204.
(a) IN THIS SECTION, “CONSTRUCTION” HAS THE MEANING STATED IN §
 7–207 OF THIS SUBTITLE.
(B)  (1)    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.
(2)   AT THE SAME TIME A PERSON APPLIES FOR A CERTIFICATE OF
 PUBLIC CONVENIENCE AND NECESSITY 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:
(I)
  EACH OWNER OF LAND THAT ABUTS THE PROPERTY WHERE
 THE CONSTRUCTION IS PLANNED; AND
(II)
  FOR CONSTRUCTION OF AN OVERHEAD TRANSMISSION
 LINE, EACH OWNER OF LAND AND EACH OWNER OF ADJACENT LAND.
(3)      NOTICE PROVIDED UNDER THIS SUBSECTION SHALL ADVISE THE
 RECIPIENT OF:
SENATE BILL 841
(I)
  ANY APPLICABLE RIGHT TO FILE AS AN INTERVENOR IN THE
 PROCEEDING IN ACCORDANCE WITH § 3–106 OF THIS ARTICLE;
(II)
  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;
(III) THE DATE AND TIME BY WHICH THE RECIPIENT IS
 REQUIRED TO FILE AS AN INTERVENOR IN ORDER TO BE CONSIDERED TIMELY; AND
(IV)
  CONTACT INFORMATION FOR THE COMMISSION AND THE
 WEBSITE WHERE THE RECIPIENT MAY OBTAIN ADDITIONAL INFORMATION
 REGARDING INTERVENTION RIGHTS AND PROCEDURES.
[(2)] (C)   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.
[(b)  Unless the failure is willful or deliberate, the failure of a public service
 company to provide notice does not invalidate a public hearing or require that another
 hearing take place.]
(D) IF THE COMMISSION FINDS THAT A PERSON DIRECTED TO PROVIDE
 NOTICE UNDER SUBSECTION (B)(2) OF THIS SECTION FAILS TO PROVIDE NOTICE IN
 ACCORDANCE WITH THIS SECTION:
(1)
  THE PUBLIC HEARING IS INVALIDATED AND ANOTHER HEARING
 MUST TAKE PLACE IF THE FAILURE IS WILLFUL OR DELIBERATE; OR
(2)
  THE COMMISSION MAY, WITHIN ITS DISCRETION, REQUIRE
 ANOTHER HEARING TO TAKE PLACE IF THE FAILURE IS NOT WILLFUL OR
 DELIBERATE.
 7–207.
(a)    (1)   In this section the following words have the meanings indicated.
(2)   “ADVANCED TRANSMISSION TECHNOLOGIES” MEANS:
(I)    GRID–ENHANCING TECHNOLOGIES;
(II)   HIGH PERFORMANCE CONDUCTORS; OR
(III) ENERGY STORAGE USED AS TRANSMISSION.
  SENATE BILL 841  45
(3)    “Brownfields site” means:
(i)    a former industrial or commercial site identified by federal or
 State laws or regulation as contaminated or polluted;
(ii)    a     closed   landfill   regulated by    the Department   of   the
 Environment; or
(iii)   mined land.
[(3)] (4)      (i)      “Construction” means:
1.    any physical change at a site, including fabrication,
 erection, installation, or demolition; or
2.    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.
(ii)   “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.
[(4)] (5)      “Generating station” does not include:
(i)     a generating unit or facility that:
1.       is used for the production of electricity;
2.       has the capacity to produce not more than 2 megawatts of
 alternating current; and
3.     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;
(ii)    a combination of two or more generating units or facilities that:
1.     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;
2.       are located on the same property or adjacent properties;
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3.     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
4.     for each individual generating unit or facility:
A.     has the capacity to produce not more than 2 megawatts of
 alternating current;
B.     is separately metered by the electric company; and
C.   does not export electricity for sale on the wholesale market
 under an agreement with PJM Interconnection, LLC;
(iii)   a generating unit or facility that:
1.     is used for the production of electricity for the purpose of:
A.   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
B.     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;
2.     is installed with equipment that prevents the flow of
 electricity to the electric grid;
3.   is subject to a permit to construct issued by the
 Department of the Environment; and
4.    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
(iv) a combination of two or more generating units or facilities that
 satisfy item (iii) of this paragraph.
(6)    (I)
  “GRID–ENHANCING TECHNOLOGY” MEANS HARDWARE OR
 SOFTWARE THAT INCREASES THE CAPACITY, EFFICIENCY, OR RELIABILITY OF
 EXISTING TRANSMISSION SYSTEMS.
(II)    “GRID–ENHANCING TECHNOLOGY” INCLUDES:
  SENATE BILL 841  47
1.
  A SYSTEM THAT USES REAL–TIME OR FORECAST
 WEATHER AND OPERATING CONDITIONS TO DETERMINE THE TRANSFER CAPACITY
 OF TRANSMISSION SYSTEMS;
2.
  TECHNOLOGY     THAT    MODULATES    CIRCUIT
 IMPEDANCE OR OTHER ELECTRICAL PROPERTIES TO REROUTE POWER FLOWS AND
 RELIEVE CONGESTION; AND
3.
  SOFTWARE     THAT   IDENTIFIES   SWITCHING
 CONFIGURATIONS TO REROUTE ELECTRICITY AND ALLEVIATE TRANSMISSION
 CONSTRAINTS.
(7)
  “HIGH PERFORMANCE CONDUCTORS” MEANS CONDUCTORS,
 INCLUDING CARBON FIBER CONDUCTORS, COMPOSITE CORE CONDUCTORS, OR
 SUPERCONDUCTORS, THAT:
(I)     HAVE A SIMILAR DIAMETER AND WEIGHT AS TRADITIONAL
 ACSR CONDUCTORS;
(II)
  HAVE A DIRECT CURRENT ELECTRICAL RESISTANCE AT
 LEAST 10% LESS THAN TRADITIONAL ACSR CONDUCTORS;
(III) INCREASE THE POTENTIAL ENERGY CARRYING CAPACITY
 BY AT LEAST 75% COMPARED TO TRADITIONAL ACSR CONDUCTORS; AND
(IV)
  HAVE A COEFFICIENT OF THERMAL EXPANSION OF AT LEAST
 30% LESS THAN TRADITIONAL ACSR CONDUCTORS.
[(5)] (8)    (i)    “Mined land” means the surface or subsurface of an area
 in which surface mining operations will be, are being, or have been conducted.
(ii)    “Mined land” includes:
1.    private ways and roads used for mining appurtenant to
 any surface mining area;
2.    land excavations;
3.    workings; and
4.    overburden.
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[(6)] (9)  “Qualified generator lead line” means [an overhead] A
 transmission line [that is] 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.
(10) “TRADITIONAL ACSR CONDUCTORS” MEANS ELECTRICAL
 CABLES USED IN TRANSMISSION SYSTEMS THAT CONSIST OF A CENTRAL CORE OF
 GALVANIZED STEEL WIRES SURROUNDED BY STRANDS OF ALUMINUM.
(b)    (3)    (i)   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 [an overhead] 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.
(ii)  [For] SUBJECT TO SUBPARAGRAPH (III) OF THIS
 PARAGRAPH, FOR construction related to an existing [overhead] transmission line, the
 Commission may waive the requirement in subparagraph (i) of this paragraph for good
 cause.
(III) THE     COMMISSION
  SHALL ADOPT REGULATIONS TO
 ESTABLISH SPECIFIC CRITERIA FOR MAKING THE DETERMINATION TO WAIVE THE
 REQUIREMENT IN SUBPARAGRAPH (I) OF THIS PARAGRAPH FOR GOOD CAUSE,
 INCLUDING:
1.     THE COST OF THE CONSTRUCTION ON RATEPAYERS;
2.     THE    IMPACT     OF   THE    CONSTRUCTION        ON    THE
 ENVIRONMENT; AND
3.     ANY OTHER MATTER THE COMMISSION CONSIDERS
 APPROPRIATE.
(IV)   AN
  APPLICANT FOR A CERTIFICATE OF PUBLIC
 CONVENIENCE AND NECESSITY FOR THE CONSTRUCTION OF A TRANSMISSION LINE
 SHALL INCLUDE IN ITS APPLICATION:
1.    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:
  SENATE BILL 841  49
A.
  AN   ANALYSIS   OF   ADVANCED   TRANSMISSION
 TECHNOLOGIES AND WHETHER THE USE OF THE TECHNOLOGIES WILL ENHANCE
 THE VALUE OF THE NEW LEAD LINE, LEADING TO INCREASED RATEPAYER VALUE
 THROUGH EFFICIENCY AND AVOIDED COSTS;
B.    ALTERNATIVE ROUTINGS;
C.
  TECHNOLOGIES OR MODIFICATIONS TO ONE OR MORE
 ELECTRIC DISTRIBUTION SYSTEMS IN THE STATE THAT COULD AVOID THE NEED
 FOR THE TRANSMISSION LINE;
D.    THE COST TO RATEPAYERS;
E.    RESOURCE ADEQUACY; AND
F.    ANY  OTHER      INFORMATION     THE     COMMISSION
 CONSIDERS APPROPRIATE; AND
2.  AN ANALYSIS OF THE TRANSMISSION LINE ROUTE
 SELECTION, INCLUDING:
A.    RISKS ASSOCIATED WITH THE COSTS ESTIMATES;
B.    COST CONTAINMENT EFFORTS;
C.    CONSTRUCTION SCHEDULE;
D.    ACQUISITION OF LAND AND RIGHTS–OF–WAY;
E.    OUTAGE COORDINATION; AND
F.
  THE APPLICANT’S PLAN TO WORK WITH COMMUNITIES
 AND STAKEHOLDERS ON PROPOSED ROUTES.
[(iii)] (V) Notwithstanding subparagraph (i) of this paragraph and
 subject to subparagraph [(iv)] (VI) of this paragraph, the Commission may issue a
 certificate of public convenience and necessity for the construction of [an overhead] A
 transmission line only if the applicant for the certificate of public convenience and
 necessity:
1.    is an electric company; or
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2.    is or, on the start of commercial operation of the
 [overhead] transmission line, will be subject to regulation as a public utility by an officer
 or an agency of the United States.
[(iv)] (VI)    The Commission may not issue a certificate of public
 convenience and necessity for the construction of [an overhead] A transmission line in the
 electric distribution service territory of an electric company to an applicant other than an
 electric company if:
1.     the [overhead] transmission line is to be located solely
 within the electric distribution service territory of that electric company; and
2.    the cost of the [overhead] transmission line is to be paid
 solely by that electric company and its ratepayers.
[(v)] (VII)  1.     This subparagraph applies to the construction of
 [an overhead] A transmission line for which a certificate of public convenience and
 necessity is required under this section.
2.     On issuance of a certificate of public convenience and
 necessity for the construction of [an overhead] 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.
(4)    (i)    [Except as provided in subparagraph (ii) of this paragraph, for
 construction related to an existing overhead transmission line designed to carry a voltage
 in excess of 69,000 volts, the Commission shall waive the requirement to obtain a certificate
 of public convenience and necessity if the Commission finds that the construction does not:
1.    require the person to obtain new real property or
 additional rights–of–way through eminent domain; or
2.     require larger or higher structures to accommodate:
A.     increased voltage; or
B.     larger conductors.
(ii)   1.   For construction related to an existing overhead
 transmission line, including repairs, that is necessary to avoid an imminent safety hazard
 or reliability risk, a person may undertake the necessary construction ] 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.
  SENATE BILL 841  51
[2.] (II)Within 30 days after construction is completed
 under [subsubparagraph 1 of this subparagraph] SUBPARAGRAPH (I) OF THIS
 PARAGRAPH, a person shall file a report with the Commission describing the work that
 was completed.
(c)    (1)    On receipt of an application for a certificate of public convenience and
 necessity under this section, the Commission shall provide notice immediately or require
 the applicant to provide notice immediately of the application to:
(i)     the Department of Planning;
(ii)  the governing body, and if applicable the executive, of each
 county or municipal corporation in which any portion of the generating station, [overhead]
 transmission line, or qualified generator lead line is proposed to be constructed;
(iii) 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, [overhead] transmission line, or qualified generator lead line;
(iv) each member of the General Assembly representing any part of
 a county in which any portion of the generating station, [overhead] transmission line, or
 qualified generator lead line is proposed to be constructed;
(v)   each member of the General Assembly representing any part of
 each county within 1 mile of the proposed location of the generating station, [overhead]
 transmission line, or qualified generator lead line;
(vi) for a proposed [overhead] transmission line, each owner of land
 and each owner of adjacent land; and
(vii)   all other interested persons.
(2)    The Commission, when sending the notice required under paragraph
 (1) of this subsection, shall forward a copy of the application to:
(i)   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
(ii)  each member of the General Assembly included under paragraph
 (1)(iv) and (v) of this subsection who requests a copy of the application.
(3)    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.
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(d)    (1)     (i)   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, [an overhead] 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.
(ii)  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.
(2)   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, [overhead] transmission line, or qualified generator
 lead line is proposed to be located, unless the governing body declines to participate in the
 hearing.
(3)   (i)    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:
1.    by advertisement in a newspaper of general circulation in
 the county or municipal corporation affected by the application;
2.     on two types of social media; and
3.     on the Commission’s website.
(ii)   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, [overhead] 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.
(4)    (i) 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.
(ii)   The informational sign required under subparagraph (i) of this
 paragraph shall:
1.     state the time, room number, and subject of the public
 hearing; and
2.     be at least 17 by 22 inches in size.
  SENATE BILL 841  53
(iii) 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.
(5)    (i)   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.
(ii)  The Commission shall allow each State unit 15 days after the
 conclusion of the hearing to modify the State unit’s initial recommendations.
(e)    [The] SUBJECT TO SUBSECTION (F) OF THIS SECTION, THE Commission
 shall take final action on an application for a certificate of public convenience and necessity
 only after due consideration of:
(1)    the recommendation of the governing body of each county or municipal
 corporation in which any portion of the construction of the generating station, [overhead]
 transmission line, or qualified generator lead line is proposed to be located;
(2)    the effect of the generating station, [overhead] transmission line, or
 qualified generator lead line on:
(i)     the stability and reliability of the electric system;
(ii)    economics;
(iii)   esthetics;
(iv)    historic sites;
(v) WHEN APPLICABLE, aviation safety as determined by the
 Maryland Aviation Administration and the administrator of the Federal Aviation
 Administration;
(vi)    when applicable, air quality and water pollution; and
(vii) the availability of means for the required timely disposal of
 wastes produced by any generating station;
(3)   the effect of climate change on the generating station, [overhead]
 transmission line, or qualified generator lead line based on the best available scientific
 information recognized by the Intergovernmental Panel on Climate Change;
(4)    for a generating station:
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(i)    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;
(ii) 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;
(iii) 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
(iv) 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
(5)  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.
(F)    THE COMMISSION SHALL TAKE FINAL ACTION ON AN APPLICATION FOR
 A CERTIFICATE OF PUBLIC CONVENIENCE AND NECESSITY FOR AN UNDERGROUND
 TRANSMISSION LINE WITHIN 180 DAYS AFTER RECEIVING A COMPLETE
 APPLICATION.
[(f)] (G)   For the construction of [an overhead] A transmission line, in addition
 to the considerations listed in subsection (e) of this section, the Commission shall:
(1)   take final action on an application for a certificate of public convenience
 and necessity only after due consideration of:
(i)    the need to meet existing and future demand for electric service;
 [and]
(ii)  EVIDENCE THAT ALTERNATIVES HAVE BEEN CONSIDERED
 BY THE APPLICANT IN ACCORDANCE WITH SUBSECTION (B)(3)(IV) OF THIS SECTION;
 AND
(III) for construction related to a new [overhead] 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;
(2)   require as an ongoing condition of the certificate of public convenience
 and necessity that an applicant comply with:
  SENATE BILL 841  55
(i) all relevant agreements with PJM Interconnection, L.L.C., or its
 successors, related to the ongoing operation and maintenance of the [overhead]
 transmission line; and
(ii)   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 [overhead] transmission line; and
(3)    require the applicant to identify whether the [overhead] transmission
 line is proposed to be constructed on:
(i)    an existing brownfields site;
(ii)   property that is subject to an existing easement; or
(iii) a site where a tower structure or components of a tower structure
 used to support an overhead transmission line exist.
[(g)] (H)     (1)    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:
(i)   the Federal Aviation Administration determines that the
 construction of an overhead transmission line will not constitute a hazard to air navigation;
 and
(ii)   the   Maryland    Aviation      Administration   concurs   in   that
 determination.
(2)    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.
[(h)] (I)    (1)    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.
(2)    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:
(i)    within a reasonable time; and
(ii)  to the extent local laws are not preempted by State law, in
 accordance with local laws.
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(3)    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, [an overhead] A transmission line, or a qualified lead line
 proposed to be constructed under the certificate:
(i)     a conditional use approval;
(ii)    a special exception approval; or
(iii)   a floating zone approval.
 7–207.6.
(A)    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:
(1)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;
(2)
  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
(3)
  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.
(B)
  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.
 7–207.7.
  SENATE BILL 841  57
      (A)  IN THIS SECTION, “ADVANCED TRANSMISSION TECHNOLOGIES” HAS
 THE MEANING STATED IN § 7–207 OF THIS SUBTITLE.
      (B) (1) SUBJECT TO PARAGRAPH (2) 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:
(I)IDENTIFIES AREAS OF TRANSMISSION CONGESTION FOR
 THE IMMEDIATELY PRECEDING 3 YEARS AND ANY REASONABLY FORESEEABLE
 TRANSMISSION CONGESTION ISSUES FOR THE 5 YEARS IMMEDIATELY FOLLOWING
 THE DATE OF THE REPORT;
(II) IDENTIFIES THE PROJECTED OR ACTUAL COST TO
 RATEPAYERS AS A RESULT OF PAST AND PROJECTED FUTURE TRANSMISSION
 CONGESTION;
(III) IDENTIFIES THE FEASIBILITY AND COST OF USING
 ALTERNATIVE MEANS OF ADDRESSING TRANSMISSION CONGESTION, INCLUDING
 THE USE OF ADVANCED TRANSMISSION TECHNOLOGIES;
(IV) IDENTIFIES THE ECONOMIC, ENVIRONMENTAL, AND SOCIAL
 ISSUES POSED BY THE USE OF EACH ALTERNATIVE MEANS IDENTIFIED UNDER ITEM
 (III) OF THIS PARAGRAPH; AND
(V) IF FEASIBLE, PROPOSES AN ADVANCED TRANSMISSION
 TECHNOLOGY IMPLEMENTATION PLAN TO ADDRESS AREAS OF TRANSMISSION
 CONGESTION IDENTIFIED UNDER ITEM (I) OF THIS PARAGRAPH.
(2)  THE COMMISSION MAY MODIFY THE REPORTING SCHEDULE
 SPECIFIED IN PARAGRAPH (1) OF THIS SUBSECTION.
      (C)  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.
 7–208.
      (a)   (1)   In this section the following words have the meanings indicated.
(2)   “Construction” has the meaning stated in § 7–207 of this subtitle.
(3)   “Generating station” does not include:
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(i)     a generating unit or facility that:
1.     is used for the production of electricity for the purpose of:
A.   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
B.    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;
2.     is installed with equipment that prevents the flow of
 electricity to the electric grid;
3.   is subject to a permit to construct issued by the
 Department of the Environment; and
4.    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
(ii)   a combination of two or more generating units or facilities that
 satisfy item (i) of this paragraph.
(4)    “Qualified offshore wind project” has the meaning stated in § 7–701 of
 this title.
(5)    “Qualified submerged renewable energy line” means:
(i)     a line carrying electricity supply and connecting a qualified
 offshore wind project to the transmission system; and
(ii)  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.
(b)    This section applies to any person:
(1)    constructing a generating station and its associated [overhead]
 transmission lines designed to carry a voltage in excess of 69,000 volts;
(2)     exercising the right of condemnation in connection with the
 construction; or
(3)    constructing a qualified submerged renewable energy line.
  SENATE BILL 841  59
(c)    (1)   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.
(2)   The Commission may waive the 2–year requirement on a showing of
 good cause.
(d)     The applicant shall:
(1)   include in an application under this section the information that the
 Commission requests initially; and
(2)     furnish any additional information that the Commission requests
 subsequently.
(e)   (1)    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:
(i)   for a proposed [overhead] transmission line, each owner of land
 and each owner of adjacent land;
(ii)    all interested persons;
(iii)   the Department of Agriculture;
(iv)    the Department of Commerce;
(v)     the Department of the Environment;
(vi)    the Department of Natural Resources;
(vii)   the Department of Transportation;
(viii) the Department of Planning; and
(ix)    the Maryland Energy Administration.
(2)    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:
(i)   the governing body of each county or municipal corporation in
 which any portion of the generating station or the associated [overhead] transmission lines
 is proposed to be constructed;
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(ii)  the governing body of each county or municipal corporation
 within 1 mile of the proposed location of the generating station or the associated [overhead]
 transmission lines;
(iii) each member of the General Assembly representing any part of
 a county in which any portion of the generating station or the associated [overhead]
 transmission lines is proposed to be constructed; and
(iv) 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 [overhead] transmission lines.
(3)   The Commission shall hold a public hearing on the application as
 required by § 7–207 of this subtitle after:
(i)    the receipt of any additional information requested under
 subsection (d)(2) of this section that the Commission considers necessary; and
(ii)    any publication of notice the Commission considers to be proper.
(4) (i)     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.
(ii)   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.
(f)    Within 90 days after the conclusion of the hearing on an application under
 this section, the Commission shall:
(1)     (i)     grant a certificate of public convenience and necessity
 unconditionally;
(ii)  grant the certificate, subject to conditions the Commission
 determines to be appropriate; or
(iii)   deny the certificate; and
(2)    notify all interested parties of its decision.
(g)     (1)    The Commission shall include in each certificate it issues under
 subsection (f) of this section:
  SENATE BILL 841  61
(i)    the requirements of the federal and State environmental laws
 and standards that are identified by the Department of the Environment; and
(ii)  the methods and conditions that the Commission determines are
 appropriate to comply with those environmental laws and standards.
(2)     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.
(h)    (1)    A decision of the Commission regarding the issuance of a certificate
 requires the vote of a majority of the members of the Commission.
(2)    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.
(i)    The grant of a certificate by the Commission to any person under subsection
 (f) of this section constitutes:
(1)   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
(2)   registration and a permit to construct, as required under Title 2,
 Subtitle 4 of the Environment Article.
(j)    (1)    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.
(2)   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:
(i)    within a reasonable time; and
(ii)  to the extent local laws are not preempted by State law, in
 accordance with local laws.
(3)    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, [an overhead] A transmission line, or a qualified lead line proposed to be
 constructed under the certificate:
(i)    a conditional use approval;
(ii)   a special exception approval; or
SENATE BILL 841
(iii)   a floating zone approval.
 7–216.1.
(a)      (1)   In this section the following words have the meanings indicated.
(5)   “Program” means the Maryland Energy Storage Program.
(c)      (1)   The Commission shall establish the Maryland Energy Storage
 Program.
(2)   The Program shall be implemented no later than July 1, 2025.
(3)   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.
(4)   The Program may include:
(i)     a system of energy storage credits and market–based incentives
 designed to:
1.    develop a robust energy storage market in the State; and
2.    deploy energy storage devices in a cost–effective manner;
(ii)    a requirement that investor–owned electric companies:
1.    install or contract for energy storage devices; or
2.    contract for credits from an energy storage project under §
 7–216 of this subtitle;
(iii) 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
(iv) 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.
      (D) 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:
  SENATE BILL 841  63
(1)
  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:
(I)    ELECTRIC COMPANY SERVICE TERRITORY;
(II)   ENERGY STORAGE DEVICE CAPACITY;
(III) FRONT–OF–METER TRANSMISSION–LEVEL STORAGE;
(IV)   FRONT–OF–METER DISTRIBUTION–LEVEL STORAGE;
(V)    BEHIND–THE–METER STORAGE; AND
(VI)   ANY OTHER RELEVANT CATEGORY, AS DETERMINED BY THE
 COMMISSION;
(2) WHETHER THE CAPACITY GOAL ESTABLISHED UNDER
 SUBSECTION (C)(3) OF THIS SECTION SHOULD BE ALTERED BASED ON CURRENT
 TECHNOLOGY COSTS, ENERGY STORAGE DEPLOYMENT TRENDS, ELECTRIC SYSTEM
 RELIABILITY, AND RATEPAYER IMPACTS;
(3)   BARRIERS TO ACHIEVING THE GOALS IDENTIFIED UNDER THIS
 SECTION; AND
(4)      ANY    OTHER    INFORMATION      THE   COMMISSION   CONSIDERS
 PERTINENT.
 7–219.1.
      (A)     (1)   IN THIS SECTION THE FOLLOWING WORDS HAVE THE MEANINGS
 INDICATED.
(2)
  “METRICS” MEANS MEASURES USED TO ASSESS THE EFFICIENCY
 AND PERFORMANCE OF ELECTRIC SYSTEM INFRASTRUCTURE.
(3)
  “THROUGHPUT” MEANS THE TOTAL AMOUNT OF ELECTRICITY,
 MEASURED IN KILOWATT–HOURS, THAT PASSES THROUGH THE ELECTRIC
 DISTRIBUTION SYSTEM AND ELECTRIC TRANSMISSION SYSTEM OVER A SPECIFIED
 PERIOD OF TIME.
SENATE BILL 841
(4)   “UTILIZATION” MEANS THE EXTENT TO WHICH ELECTRIC SYSTEM
 INFRASTRUCTURE IS BEING        USED   TO   MEET   THE   NEEDS   OF   RATEPAYERS
 THROUGHOUT THE YEAR.
      (B) ON OR BEFORE JANUARY 1, 2027, THE PUBLIC SERVICE COMMISSION,
 BY ORDER OR REGULATION, SHALL ESTABLISH ELECTRIC SYSTEM UTILIZATION
 METRICS  THAT   PROVIDE  SUFFICIENTLY  DETAILED AND  TRANSPARENT
 INFORMATION TO ENABLE THE COMMISSION TO ASSESS THE EFFICIENCY AND
 PERFORMANCE    OF   EACH   ELECTRIC   COMPANY’S ELECTRIC   SYSTEM
 INFRASTRUCTURE.
      (C)   THE COMMISSION SHALL DETERMINE HOW METRICS SHALL BE
 CALCULATED AND REPORTED TO ENSURE THE SECURITY OF THE ELECTRIC
 DISTRIBUTION AND TRANSMISSION SYSTEMS, INCLUDING THROUGH THE
 AGGREGATION AND ANONYMIZATION OF DATA AND THE USE OF CONFIDENTIALITY
 DESIGNATIONS.
      (D)   METRICS ESTABLISHED UNDER THIS SECTION SHALL:
(1)   INCLUDE:
(I)    TOTAL THROUGHPUT IN RELATION TO TOTAL POTENTIAL
 THROUGHPUT;
(II)   PEAK LOAD IN RELATION TO LOAD LIMITS;
(III) THE DURATION OF PEAK LOAD PERIODS; AND
(IV)   ANY OTHER INFORMATION THE COMMISSION CONSIDERS
 NECESSARY; AND
(2) BE CALCULATED WITH SUFFICIENT TIME AND LOCATION DETAIL
 TO ASSESS ELECTRIC SYSTEM UTILIZATION AT LEAST:
(I)    SEASONALLY;
(II)   SYSTEM–WIDE; AND
(III) AT THE FEEDER, SUBSTATION, AND TRANSMISSION LINE
 LEVEL.
      (E) ON OR BEFORE APRIL 1, 2027, AND ON OR BEFORE APRIL 1 EACH YEAR
 THEREAFTER, THE PUBLIC SERVICE COMMISSION SHALL:
  SENATE BILL 841  65
(1)
  REVIEW AND ASSESS EACH ELECTRIC COMPANY’S ELECTRIC
 SYSTEM UTILIZATION METRICS; AND
(2)
  ESTABLISH TARGETED IMPROVEMENTS IN UTILIZATION THAT
 IMPROVE RATEPAYER AFFORDABILITY WHILE CONSIDERING LOAD GROWTH, RATE
 IMPACTS, AND OTHER STATE POLICY GOALS.
(F)   (1)
  ON OR BEFORE OCTOBER 1, 2027, AND ON OR BEFORE OCTOBER
 1 EVERY 3 YEARS THEREAFTER, EACH ELECTRIC COMPANY SHALL SUBMIT TO THE
 COMMISSION AN ELECTRIC SYSTEM UTILIZATION IMPROVEMENT PLAN DESIGNED
 TO:
(I)
  ACHIEVE THE TARGET IMPROVEMENTS  IN   ELECTRIC
 SYSTEM UTILIZATION ESTABLISHED BY THE COMMISSION; AND
(II) GENERATE BENEFITS THROUGH THE REALIZATION OF
 ADDITIONAL VALUE FROM EXISTING ASSETS FOR PARTICIPATING CUSTOMERS,
 UTILITIES, AND ALL RATEPAYERS.
(2)   EACH ELECTRIC SYSTEM UTILIZATION IMPROVEMENT PLAN
 SHALL INCLUDE COMMERCIALLY AVAILABLE TECHNOLOGIES THAT ADDRESS
 ELECTRIC SYSTEM NEEDS, IMPROVE ELECTRIC SYSTEM UTILIZATION AND
 RATEPAYER AFFORDABILITY, AND MAY INCLUDE:
(I)    FRONT–OF–THE–METER RESOURCES;
(II)   BEHIND–THE–METER RESOURCES; AND
(III) ENABLING TECHNOLOGY INVESTMENTS.
 7–221.
The General Assembly finds and declares that energy efficiency is:
(1)   among the least expensive ways to meet the energy demands of the
 State;
(2)      a means of affordable, reliable, and clean energy for consumers of
 Maryland; and
(3)  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.
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 7–221.1.
      ON AND AFTER JULY 1, 2026, THIS PART DOES NOT APPLY TO ANY GAS
 COMPANY THAT HAS NOT, BEFORE JANUARY 1, 2026, IMPLEMENTED A PROGRAM OR
 SERVICE IN ACCORDANCE WITH THIS PART.
 7–222.
(a)    Subject to review and approval by the Commission, each electric company,
 each gas company [other than a gas company subject to § 4–207(a) of this article], 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, gas 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.
(b)    As directed by the Commission, [each gas company subject to § 4–207(a) of
 this article,] each municipal electric or gas 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.
(c)   (1)     In accordance with this subsection, each midsize electric cooperative
 shall be subject to either subsection (a) or subsection (b) of this section.
(2)    Each midsize electric cooperative shall offer programs and services to
 customers in accordance with:
(i)   subsection (b) of this section through December 31, 2026; and
(ii)   on or after January 1, 2027, and as the Commission directs,
 either subsection (a) or subsection (b) of this section.
(3)    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.
(4)   Each midsize electric cooperative shall provide the following
 information to the Commission to assist in making a determination under paragraph (3) of
 this subsection:
(i)   anticipated costs and bill impacts;
  SENATE BILL 841  67
(ii)   a description of the anticipated program offerings;
(iii) 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;
(iv)   the anticipated electricity savings and greenhouse gas emissions
 reductions; and
(v)    any other information the Commission requires.
(5)   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] 2–YEAR program cycle starting January 1, 2027.
(6)   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.
(7)    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.
(8)    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.
(d)    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:
(1)    requiring each electric company and gas company to establish any
 program or service that the Commission determines to be appropriate and cost–effective;
(2)   adopting rate–making policies that provide, through a surcharge line
 item on customer bills:
SENATE BILL 841
(i)   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;
(ii)   on or before December 31, 2032, the elimination of any unpaid
 costs and unamortized costs that:
1.     A.    existed on December 31, 2024; or
B.     were incurred before January 1, 2028; and
2.     were accrued for the purpose of achieving statutory
 targets for annual incremental gross energy savings;
(iii) 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
(iv) reasonable financial performance incentives and penalties for
 investor–owned electric companies and gas companies, as appropriate; and
(3)   ensuring that adoption of electric customer choice under Subtitle 5 of
 this title and gas customer choice under Subtitle 6 of this title does not adversely impact
 these goals and targets.
(e)   The Commission shall, by regulation or order, require each electric company
 and each gas company [subject to subsection (a) of this section] that has submitted to the
 Commission, on or before July 1, 2024, a plan for achieving electricity or gas savings and
 demand reduction targets to disclose the following information in a form and format readily
 understandable to the average customer:
(1)    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
(2)    the period of time that the surcharge will include excess charges to pay
 down the unpaid costs and unamortized costs.
 7–223.
(a)    On or before January 1, 2025, [and] on or before January 1, 2027, ON OR
 BEFORE JANUARY 1, 2029, AND ON OR BEFORE JANUARY 1 every 3 years, starting in
 [2027] 2029, the Commission shall, by regulation or order, require each electric company
 and each gas company subject to § 7–222(a) of this subtitle to develop and implement a plan
 that:
  SENATE BILL 841  69
(1)   covers appropriate ratepayer classes;
(2)   starting in [2027] 2029, covers a 3–year program cycle; and
(3)   achieves the greenhouse gas emissions reduction target established for
 the electric company or gas 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.
(b)    (1)     For [2025 and 2026,] 2025, 2026, 2027, AND 2028, and for each
 3–year program cycle starting in [2027] 2029, the Commission shall establish a greenhouse
 gas emissions reduction target for each electric company and each gas company subject to
 § 7–222(a) of this subtitle as provided in this subsection.
(2)   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.
(3)    The greenhouse gas emissions reduction targets established under this
 subsection shall be measured:
(i)    in metric tons; and
(ii)  relative to the greenhouse gas emissions associated with the
 electric company’s or gas company’s weather–normalized gross retail sales and losses in a
 baseline year, as determined by the Commission.
(4)    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:
(i)    2.0% in 2024;
(ii)   2.25% [each year] in 2025 [and 2026; and];
(III) 1.75% EACH YEAR IN 2026 THROUGH 2029;
(IV)   2.0% EACH YEAR IN 2030 THROUGH 2032;
(V)    2.25% EACH YEAR IN 2033 THROUGH 2035; AND
[(iii)] (VI)   2.5% each year in [2027] 2036 and after.
SENATE BILL 841
(5)   On or before January 1, 2025, and on or before January 1 every 3 years,
 starting in 2027, the Commission shall establish greenhouse gas emissions reduction
 targets for each gas 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 gas savings achieved by the gas company for the
 2021–2023 program cycle.
(6)    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.
(7)   For 2025 and 2026:
(i)     the Commission shall, after making appropriate findings,
 determine whether existing electric company and gas company plans must be modified to
 comply with § 7–225(d) of this subtitle; and
(ii)   electric companies and gas companies:
1.    shall provide information as required by the Commission
 to assist in making the determination under item (i) of this paragraph; and
2.  are only required to file new plans in accordance with this
 section if directed by the Commission.
(c)    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 and gas company.
(d)     Contributions to greenhouse gas emissions reduction goals and targets in a
 plan of an electric company or a gas company:
(1)    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
(2)   may [not] include the increased adoption of electric vehicles.
(e)    (1)
  [Beginning] SUBJECT TO PARAGRAPH (2) OF THIS SUBSECTION,
 BEGINNING January 1, [2025,] 2027:
(I)    at least 80% of the greenhouse gas emissions reductions counted
 toward each electric company’s and each gas 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
  SENATE BILL 841  71
(II) 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:
1.
  NEW COMMUNITY SOLAR ENERGY GENERATION THAT
 IS INTERCONNECTED TO THE ELECTRIC COMPANY’S DISTRIBUTION SYSTEM; AND
2.
  SOLAR ENERGY GENERATION FACILITIES THAT ARE
 INTERCONNECTED TO THE ELECTRIC COMPANY’S DISTRIBUTION SYSTEM.
(2) 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.
(3)
  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.
 7–224.
     (a)  (1)  Beginning January 1, 2025, [and] on or before January 1, 2027, ON OR
 BEFORE JANUARY 1, 2029, AND ON OR BEFORE JANUARY 1 every 3 years, starting in
 [2027] 2029, 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.
(d)     If directed by the Commission in 2024, [and] on or before September 1, 2026,
 ON OR BEFORE SEPTEMBER 1, 2028, AND ON OR BEFORE SEPTEMBER 1 every 3 years,
 starting in [2026] 2028, 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.
 7–225.
(a)    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.
SENATE BILL 841
(b)    (1)    (i)     If directed by the Commission in 2024, [and] on or before July 1,
 2026, ON OR BEFORE JULY 1, 2028, AND ON OR BEFORE JULY 1 every 3 years, starting
 in [2026] 2028, each electric company and each gas 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.
(ii) On or before October 1, 2024, [and] on or before July 1, 2026, ON
 OR BEFORE JULY 1, 2028, AND ON OR BEFORE JULY 1 every 3 years, starting in [2026]
 2028, each electric company and each gas 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.
(2)   Each electric company and each gas 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.
(c)   (1)    (i)   If directed by the Commission in 2024, and on or before
 September 1, 2026, ON OR BEFORE SEPTEMBER 1, 2028, AND ON OR BEFORE
 SEPTEMBER 1 every 3 years, starting in [2026] 2028, each electric company and each gas
 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.
(ii)   On or before December 1, 2024, [and] on or before September 1,
 2026, ON OR BEFORE SEPTEMBER 1, 2028, AND ON OR BEFORE SEPTEMBER 1 every
 3 years, starting in [2026] 2028, each electric company and each gas 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.
(I)
  (2)   [Each] EXCEPT AS PROVIDED IN SUBPARAGRAPH (II) OF
 THIS PARAGRAPH, EACH plan shall detail a proposal for achieving greenhouse gas
 emissions reduction targets for 3 subsequent calendar years.
(II)
  THE PLAN SUBMITTED IN 2026 SHALL DETAIL A PROPOSAL
 FOR ACHIEVING GREENHOUSE GAS EMISSIONS REDUCTION TARGETS FOR THE 2
 SUBSEQUENT CALENDAR YEARS.
(3)    (i)    Each plan shall:
  SENATE BILL 841  73
1.    include:
A.    a description of the proposed programs and services;
B.    anticipated costs;
C.    projected benefits, including greenhouse gas emissions
 reductions, electricity savings, and gas savings; and
D.    any other information requested by the Commission; and
2.   address residential, commercial, and industrial sectors as
 appropriate, including low–income communities.
(ii)   A plan of the Department shall include:
1.     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;
2.   a description of the steps proposed to ensure insulation
 materials meet the requirements under § 7–224 of this subtitle; and
3.    a proposed average lifetime measure threshold that:
A.    encourages the delivery of insulation and weatherization
 measures; and
B.    is developed through a stakeholder engagement process.
(iii) A plan of an electric company shall include the provision or
 procurement of programs and services for residential beneficial electrification.
(d)     (1)   The Commission shall review the plan of each electric company, each
 gas 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.
(2)    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.
(3)    Subject to paragraph (4) of this subsection, in approving, modifying, or
 denying the plan of an electric company or a gas company, the Commission shall consider:
(i)    the cost–effectiveness of the residential, commercial, and
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 industrial sector subportfolios by using:
1.    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:
A.      participant nonenergy benefits;
B.      utility nonenergy benefits; and
C.      societal nonenergy benefits; and
2.   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:
A.      participant nonenergy benefits; and
B.      utility nonenergy benefits;
THE COST–EFFECTIVENESS OF THE RESIDENTIAL SECTOR
  (ii)
 SUBPROGRAMS BY DETERMINING WHETHER THE COST–EFFECTIVENESS OF A
 SUBPROGRAM CAN BE IMPROVED THROUGH:
1.      CONSOLIDATION;
2.      A REDUCTION IN ADMINISTRATIVE COSTS; OR
3.      STREAMLINING DELIVERY OF SERVICES;
(III) the impact on rates of each ratepayer class;
[(iii)] (IV)   the impact on jobs;
[(iv)] (V)     the impact on the environment; and
[(v)] (VI)  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.
(4)    Nonenergy benefits considered under paragraph (3) of this subsection
 shall be quantifiable and directly related to a program or service.
(5)   (i)    In approving, modifying, or denying the plan of the Department,
 the Commission shall consider:
  SENATE BILL 841  75
1.    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;
2.    the impact on rates of each ratepayer class;
3.    the impact on jobs;
4.    the impact on the environment; and
5.     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.
(ii)   The programs and services offered by the Department are not
 required to be cost–effective.
(e)   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.
 7–226.
(a)   (1)  Each electric company, each gas 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.
(2)  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.
(3)    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, the gas company, or the Department to include in its next update under
 paragraph (1) of this subsection specific measures to address the findings.
(b)    (1)   At least once each year, each electric company and each gas company
 shall notify affected customers of the energy efficiency and conservation and greenhouse
 gas reduction charges imposed and benefits conferred.
(2)   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.
SENATE BILL 841
(c)    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:
(1)   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;
(2)   a recommendation for the appropriate funding level to adequately fund
 these programs and services;
(3)   the per capita electricity consumption and the winter and summer peak
 demand for the previous calendar year; and
(4)   beginning in 2026, progress made toward reducing greenhouse gas
 emissions in accordance with §§ 7–223 and 7–224 of this subtitle.
 7–227.
(a)   Notwithstanding any other law, the Commission may not require or allow an
 electric company or a gas company to require a customer to authorize the electric company
 or gas company to control the amount of the customer’s electricity usage or gas usage.
(b)   A customer may provide consent to participate in a program of an electric
 company or a gas company that provides direct load control or other utility manipulation
 of a customer’s electricity or gas usage.
 7–228.
(a)   Each electric company and each gas 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.
(b)   The Commission shall adopt regulations to carry out this section.
 7–229.
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.
 7–230. RESERVED.
 7–231. RESERVED.
  SENATE BILL 841  77
PART III. LARGE LOAD CUSTOMERS.
 7–232.
      (A)     IN THIS PART THE FOLLOWING WORDS HAVE THE MEANINGS
 INDICATED.
      (B)     “DISTRICTENERGY    SYSTEM”   MEANS    AN   UNDERGROUND
 INFRASTRUCTURE ASSET WHOSE PRIMARY PURPOSE IS TO PROVIDE THERMAL
 ENERGY TO MULTIPLE BUILDINGS FROM A CENTRAL ENERGY PLANT OR PLANTS.
      (C)     “DUPLICATIVEINTERCONNECTION  REQUEST”   MEANS       AN
 INTERCONNECTION REQUEST THAT:
(1)
  IS SUBSTANTIALLY SIMILAR TO ANOTHER INTERCONNECTION
 REQUEST SUBMITTED BY THE LARGE LOAD CUSTOMER OR THE CUSTOMER’S PARENT
 COMPANY OR AFFILIATE;
(2)
  IS SUBMITTED TO AN ELECTRIC COMPANY IN THE STATE OR IN
 ANOTHER STATE IN THE PJM REGION; AND
(3)
  IF PROGRESSED FURTHER THROUGH THE INTERCONNECTION
 PROCESS, WOULD CAUSE THE LARGE LOAD CUSTOMER TO MATERIALLY CHANGE,
 DELAY, OR WITHDRAW THE APPLICABLE INTERCONNECTION REQUEST.
      (D)     “HOSPITAL” MEANS AN INSTITUTION THAT:
(1)
  HAS A GROUP OF AT LEAST 5 PHYSICIANS WHO ARE ORGANIZED AS
 A MEDICAL STAFF FOR THE INSTITUTION;
(2)
  MAINTAINS FACILITIES TO PROVIDE, UNDER THE SUPERVISION OF
 THE MEDICAL STAFF, DIAGNOSTIC AND TREATMENT SERVICES FOR TWO OR MORE
 UNRELATED INDIVIDUALS; AND
(3)   MEETS OR RETAINS THE INDIVIDUALS FOR OVERNIGHT CARE.
      (E) “INCREMENTAL RESOURCES” INCLUDES ONE OR A COMBINATION OF
 THE FOLLOWING FACILITIES AND RESOURCES, LOCATED WITHIN THE APPLICABLE
 LOCATIONAL DELIVERABILITY AREA:
(1)   BEHIND–THE–METER ENERGY STORAGE FACILITIES;
SENATE BILL 841
(2)   NEWLY INTERCONNECTED ENERGY STORAGE FACILITIES; AND
(3)PURCHASING OR ESTABLISHING NONEMITTING  RESOURCES
 WITHIN THE LOCATIONAL DELIVERABILITY AREA, INCLUDING:
(I)    NEW CLEAN ENERGY GENERATION ASSETS;
(II)   NEW VIRTUAL POWER PLANT AGGREGATIONS; AND
(III) A DEMAND RESPONSE PROGRAM THAT THE COMMISSION
 DETERMINES MEETS THE GOALS OF THIS SECTION, INCLUDING PROGRAMS
 ADMINISTERED BY PJM.
      (F)    (1)   “LARGE
  LOAD CUSTOMER” MEANS A COMMERCIAL  OR
 INDUSTRIAL CUSTOMER FOR RETAIL ELECTRIC SERVICE THAT:
(I)  HAS OR IS PROJECTED TO HAVE AN AGGREGATE MONTHLY
 DEMAND OF AT LEAST 25 MEGAWATTS; AND
(II)   HAS OR IS PROJECTED TO HAVE A LOAD FACTOR OF MORE
 THAN 60%.
(2)   “LARGE LOAD CUSTOMER” DOES NOT INCLUDE A COMMERCIAL
 OR INDUSTRIAL CUSTOMER FOR RETAIL ELECTRIC SERVICE WHOSE PRIMARY
 PURPOSE IS TO OPERATE AS OR SUPPORT THE OPERATION OF:
(I)    A WATER COMPANY OR SEWAGE DISPOSAL COMPANY;
(II)   A MANUFACTURING FACILITY;
(III) A HOSPITAL;
(IV)   A DISTRICT ENERGY SYSTEM;
(V)    AN AGRICULTURAL FACILITY; OR
(VI)   AT THE DISCRETION OF THE       COMMISSION, ANOTHER
 INDUSTRIAL FACILITY.
      (G)  “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
  SENATE BILL 841  79
 DIFFERENT ARTICLE OF TANGIBLE PERSONAL PROPERTY BY THE USE OF LABOR OR
 MACHINERY OCCURS.
      (H)   “ON–SITE BACKUP GENERATING FACILITY” MEANS A GENERATING
 FACILITY THAT IS NOT CONNECTED TO THE ELECTRIC SYSTEM.
      (I)  “VIRTUAL POWER PLANT” MEANS AN AGGREGATION OF DISTRIBUTED
 CLEAN ENERGY RESOURCES AND ENERGY STORAGE OWNED BY A CUSTOMER OR A
 THIRD PARTY THAT:
(1)   PROVIDES ELECTRIC SYSTEM SERVICES; AND
(2) MAY BE USED BY THE CUSTOMER OR THE THIRD PARTY FOR
 OTHER APPLICATIONS WHEN NOT PROVIDING ELECTRIC SYSTEM SERVICES.
      (J) “VOLUNTARY CLEAN CAPACITY RATING PROGRAM” MEANS THE
 PROGRAM DEVELOPED BY THE COMMISSION UNDER § 7–234 OF THIS SUBTITLE.
 7–233.
      (A) ON OR BEFORE JANUARY 1, 2027, THE COMMISSION, BY ORDER OR
 REGULATION, SHALL ESTABLISH A LARGE LOAD CUSTOMER REGISTRY TO:
(1) PROVIDE INFORMATION RELEVANT TO  PLANNING   AT   THE
 ELECTRIC DISTRIBUTION, STATE, AND PJM LEVELS; AND
(2) ASSIST IN ENSURING ACCURATE LOAD FORECASTS AT THE
 ELECTRIC DISTRIBUTION, STATE, AND PJM LEVELS.
      (B)   (1)   THECOMMISSION        SHALL     DEVELOP   A   PROCESS     FOR
 REGISTRATION UNDER THIS SECTION.
(2)   THE PROCESS SHALL:
(I)       APPLY TO NEW OR EXPANDED INTERCONNECTION OF LARGE
 LOAD CUSTOMERS;
(II)   REQUIRE A LARGE LOAD CUSTOMER TO:
1.
  DISCLOSE ALL INFORMATION ABOUT THE LARGE
 LOAD CUSTOMER AS SPECIFIED IN THIS SECTION;
SENATE BILL 841
2.      DISCLOSE EACH OF THE LARGE LOAD CUSTOMER’S
 DUPLICATIVE INTERCONNECTION REQUESTS AND ANY ASSOCIATED INFORMATION,
 AS DESCRIBED IN THIS SECTION;
3.   EXPLAIN HOW THE LARGE LOAD CUSTOMER’S ENERGY
 AND CAPACITY NEEDS WILL BE SERVED AND DESCRIBE ANY ANTICIPATED
 ARRANGEMENTS, INCLUDING ARRANGEMENTS:
A.   WITH THIRD PARTIES; AND
B.    FOR NEW OR EXISTING GENERATION AND ENERGY
 STORAGE, WHETHER ON–SITE OR OFF–SITE;
4.     DISCLOSE INFORMATION ABOUT THE ANTICIPATED
 TYPE OF ON–SITE BACKUP GENERATING FACILITY THAT WOULD BE USED IN THE
 EVENT OF A SYSTEM OUTAGE;
5.   DISCLOSE INFORMATION ABOUT:
A.   THE AMOUNT OF WATER THAT THE LARGE LOAD
 CUSTOMER WILL USE EACH MONTH;
B.   THE SOURCE OF THE WATER THAT WILL BE USED; AND
C.   THE STATUS OF AN APPLICATION FOR A WATER
 APPROPRIATION OR USE PERMIT SUBMITTED TO THE DEPARTMENT OF THE
 ENVIRONMENT OR A WATER UTILITY;
6.    DISCLOSE THE STATUS AND TYPE OF SITE CONTROL
 FOR THE PROPOSED LOCATION OF THE LARGE LOAD CUSTOMER’S FACILITY,
 INCLUDING OWNERSHIP OR LEASE CONTROL;
7.   DISCLOSE     ENERGY   CHARACTERISTICS   OF   THE
 CUSTOMER, INCLUDING:
A.   PEAK LOAD;
B.   ANTICIPATED LOAD FACTOR;
C.   TIMING OF REQUESTED SERVICE;
D.   LOAD RAMP PERIOD;
  SENATE BILL 841  81
E.     ANNUAL ENERGY USAGE; AND
F.
  LOAD PROFILE OR, IF UNAVAILABLE, A DESCRIPTION
 OF THE LARGE LOAD CUSTOMER’S AVERAGE HOURLY USE;
8.  PROVIDE A DESCRIPTION OF THE LARGE LOAD
 CUSTOMER’S OPERATION;
9.
  DISCLOSE THE POINT OF INTERCONNECTION AND
 ADDRESS OR COORDINATES OF THE LARGE LOAD CUSTOMER; AND
10.PROVIDE  ANY    OTHER   INFORMATION   THE
 COMMISSION CONSIDERS NECESSARY  FOR   THE PURPOSES IDENTIFIED IN
 SUBSECTION (A) OF THIS SECTION; AND
(III) ESTABLISH      ANY     OTHER    STANDARDS   THAT   THE
 COMMISSION CONSIDERS NECESSARY.
      (C)   (1)  EXCEPT AS PROVIDED IN SUBSECTION (E) OF THIS SECTION, A
 LARGE LOAD CUSTOMER SHALL REGISTER WITH THE COMMISSION IN ACCORDANCE
 WITH THIS SECTION:
(I)
  WITHIN 30 DAYS AFTER SIGNING A FEDERAL ENERGY
 REGULATORY COMMISSION–JURISDICTIONAL AGREEMENT WITH AN ELECTRIC
 COMPANY; OR
(II)
  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.
(2)   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.
      (D) ELECTRIC COMPANIES AND LARGE LOAD CUSTOMERS SHALL PROVIDE
 TO THE COMMISSION WITHIN THE TIMELINES SET BY THE COMMISSION:
(1) UPDATED INFORMATION REGARDING A REGISTERED LARGE LOAD
 CUSTOMER, INCLUDING IF:
(I)        A     NEW   DUPLICATIVE     INTERCONNECTION   REQUEST
 BECOMES KNOWN; OR
SENATE BILL 841
(II)
  THERE IS A CHANGE IN THE STATUS OF A DUPLICATIVE
 INTERCONNECTION REQUEST; AND
(2)   ANY OTHER INFORMATION THAT THE COMMISSION CONSIDERS
 RELEVANT.
      (E)    (1)
  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.
(2)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.
      (F)  THE COMMISSION MAY CHARGE A REASONABLE FEE TO ADMINISTER
 THE LARGE LOAD CUSTOMER REGISTRY UNDER THIS SECTION.
      (G)    (1)
  THE COMMISSION SHALL IMPOSE PENALTIES AGAINST A LARGE
 LOAD CUSTOMER IF THE LARGE LOAD CUSTOMER:
(I)    FAILS TO REGISTER IN ACCORDANCE WITH THIS SECTION;
 OR
(II)   INTENTIONALLY   MISLEADS   THE   COMMISSION IN ITS
 REGISTRATION.
(2)
  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.
      (H) (1) NOTWITHSTANDING § 4–335 OF THE GENERAL PROVISIONS
 ARTICLE, CONFIDENTIAL COMMERCIAL OR FINANCIAL INFORMATION DISCLOSED
 TO THE COMMISSION BY A LARGE LOAD CUSTOMER IN ACCORDANCE WITH
 SUBSECTION (B)(2)(II) OF THIS SECTION:
(I)
  MAY NOT BE DISCLOSED BY THE COMMISSION BEFORE THE
 LARGE LOAD CUSTOMER IS OPERATIONAL; AND
  SENATE BILL 841  83
(II) MAY BE DISCLOSED BY THE COMMISSION IN ACCORDANCE
 WITH PARAGRAPH (2) OF THIS SUBSECTION:
1.   WHEN      THE   LARGE   LOAD   CUSTOMER   BECOMES
 OPERATIONAL; OR
2.   NOTWITHSTANDING ITEM (I) OF THIS PARAGRAPH:
A.   IF THE INFORMATION HAS BEEN MADE PUBLIC BY ANY
 PERSON; OR
B.  IF THE INFORMATION IS AGGREGATED  AND
 ANONYMIZED AS DESCRIBED IN SUBSECTION (J)(2) OF THIS SECTION.
(2)   THE COMMISSION SHALL ESTABLISH A PROCEDURE FOR THE
 DISCLOSURE OF CONFIDENTIAL COMMERCIAL AND FINANCIAL INFORMATION
 UNDER PARAGRAPH (1)(II) OF THIS SUBSECTION 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.
(3)A PERSON AUTHORIZED TO ACCESS CONFIDENTIAL INFORMATION
 UNDER PARAGRAPH (2) OF THIS SUBSECTION SHALL KEEP THE INFORMATION
 ACCESSED CONFIDENTIAL.
      (I) BEGINNING JANUARY 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.
      (J)  (1) ON OR BEFORE JANUARY 1, 2028, AND EACH JANUARY 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.
(2)   THE REPORT:
(I)  SHALL INCLUDE INFORMATION DISCLOSED IN SUBSECTION
 (B)(2)(II) OF THIS SECTION AGGREGATED BY EACH ELECTRIC COMPANY SERVICE
 TERRITORY;
SENATE BILL 841
(II)
  MAY NOT DISCLOSE CONFIDENTIAL COMMERCIAL OR
 FINANCIAL INFORMATION AS DESCRIBED IN SUBSECTION (B)(2)(II) OF THIS
 SECTION, UNLESS THE INFORMATION:
1.    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;
2.   IS:
A.
  USED BY AN ELECTRIC COMPANY FOR THE
 IDENTIFICATION OF DUPLICATIVE INTERCONNECTION REQUESTS BOTH IN AND OUT
 OF STATE; AND
B.
  ANONYMIZED AND PROJECTS ARE ONLY IDENTIFIED
 BY ELECTRIC COMPANY SERVICE TERRITORY; OR
3.   HAS BEEN PREVIOUSLY DISCLOSED TO THE PUBLIC;
 AND
(III) SHALL INCLUDE ANY OTHER INFORMATION REGARDING
 LARGE LOAD CUSTOMERS AS A WHOLE IN AN ELECTRIC COMPANY’S SERVICE
 TERRITORY THAT THE COMMISSION CONSIDERS APPROPRIATE.
(3)   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.
(4)ALL INFORMATION PROVIDED IN THE REPORT SUBMITTED UNDER
 THIS SUBSECTION MAY BE USED PUBLICLY BY THE COMMISSION.
 7–234.
(A)   (1)   ON OR BEFORE DECEMBER 15, 2026, 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.
  SENATE BILL 841  85
(2)   THE RATING SYSTEM SHALL:
(I)
  ACCOUNT FOR A LARGE LOAD CUSTOMER’S VOLUNTARY
 ADOPTION OF DEMAND RESPONSE AND INCREMENTAL RESOURCES; AND
(II)
  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.
      (B)   (1)A LARGE LOAD CUSTOMER MAY BE ELIGIBLE FOR A GOLD OR
 PLATINUM RATING UNDER THIS SECTION ONLY IF THE LARGE LOAD CUSTOMER:
(I) 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
(II)   ENTERS INTO A MEMORANDUM OF UNDERSTANDING WITH
 THE COMMISSION THAT:
1. 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
2.
  PROVIDES THAT THE LARGE LOAD CUSTOMER
 CONSENTS TO THE COMMISSION’S JURISDICTION FOR ENFORCEMENT OF PENALTY
 PROVISIONS ESTABLISHED UNDER PARAGRAPH (2) OF THIS SUBSECTION.
(2)   (I)    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.
(II)
  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.
(III) 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.
SENATE BILL 841
      (C)   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 GROSSED UP BY THE
 APPROPRIATE RESERVE MARGIN THROUGH A COMBINATION OF INCREMENTAL
 RESOURCES.
      (D)   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 GROSSED UP BY THE
 APPROPRIATE RESERVE MARGIN THROUGH A COMBINATION OF INCREMENTAL
 RESOURCES.
      (E)   BENEFITS OF RECEIVING A GOLD OR PLATINUM RATING INCLUDE:
(1) 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
(2)   FOR A LARGE LOAD CUSTOMER THAT HAS RECEIVED A PLATINUM
 RATING:
(I)
  PRIORITIZATION   FOR    LOAD    STUDIES    AND
 INTERCONNECTION OVER OTHER LARGE LOAD CUSTOMERS THAT DO NOT HAVE A
 PLATINUM RATING;
(II) 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
(III) 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.
      (F)  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.
  SENATE BILL 841  87
      (G)   (1)   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:
(I)
  SHALL PROVIDE ALL THE NECESSARY EQUIPMENT FOR
 CONSTRUCTING THE SUBSTATION INFRASTRUCTURE;
(II)
  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
(III) 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.
(2) 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.
(3) 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.
(4) 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.
(5)   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.
      (H)   (1)   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.
(2)   THE INTERCONNECTION PROCESS ESTABLISHED UNDER THIS
 SECTION MAY NOT UNDULY IMPACT THE TIME FRAME OR ABILITY OF CUSTOMERS
SENATE BILL 841
 THAT ARE NOT LARGE LOAD CUSTOMERS TO INTERCONNECT WITH THE ELECTRIC
 SYSTEM.
(3)   THE INTERCONNECTION PROCESS SHALL INCLUDE:
(I) 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
(II)A PRIORITIZATION PROCESS FOR LARGE LOAD CUSTOMERS
 WITH A GOLD OR PLATINUM RATING.
      (I)   (1)   BEFORE ENTERING INTO A CONTRACT FOR ELECTRIC SERVICE, A
 LARGE LOAD CUSTOMER THAT PARTICIPATES IN THE VOLUNTARY CLEAN CAPACITY
 RATING PROGRAM SHALL:
(I) SUBMIT A REQUEST FOR A LOAD STUDY UNDER § 4–212 OF
 THIS ARTICLE TO DETERMINE THE NECESSARY CONTRACT CAPACITY FOR THE
 LARGE LOAD CUSTOMER; AND
(II)   PAY:
1.   A FEE IN AN AMOUNT TO BE SET BY THE COMMISSION
 BUT NOT LESS THAN $1,000 PER MEGAWATT OF THE LOAD TO BE SERVED; AND
2.     ANY OTHER APPLICABLE FEES ASSOCIATED WITH THE
 STUDY.
(2) THE FEES REQUIRED UNDER PARAGRAPH (1)(II) OF THIS
 SUBSECTION SHALL BE USED ONLY AS FOLLOWS:
(I)50% OF THE FEES COLLECTED SHALL BE USED FOR THE
 ELECTRIC UNIVERSAL SERVICE PROGRAM ESTABLISHED UNDER § 5–5A–08 OF THE
 HUMAN SERVICES ARTICLE; AND
(II) 50% OF THE FEES COLLECTED SHALL BE USED FOR THE
 DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT’S EMPOWER
 MARYLAND LIMITED INCOME ENERGY EFFICIENCY PROGRAM.
 7–306.
      (a)   (1)   In this section the following words have the meanings indicated.
  SENATE BILL 841  89
(4)   “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:
(i)    is located on the customer’s premises or contiguous property;
(ii)  is interconnected and operated in parallel with an electric
 company’s transmission and distribution facilities; and
(iii) is intended primarily to offset all or part of the customer’s own
 electricity requirements.
(7)    “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.
(d)   (1) 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 THAT APPLY FOR NET ENERGY METERING on a first–come,
 first–served basis until THE EARLIER OF:
(I)   THE DATE ON WHICH the rated generating capacity owned and
 operated by eligible customer–generators in the State reaches 3,000 megawatts; OR
(II)   JULY 1, 2027.
(2)
  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 UNDER § 7–306.2 OF THIS
 SUBTITLE THAT IS PLACED IN SERVICE AFTER JULY 1, 2027, SHALL BE ELIGIBLE
 FOR NET ENERGY METERING UNDER THIS SECTION IF:
(I)    THE SYSTEM:
1.
  EXCEPT AS PROVIDED IN PARAGRAPH (4) OF THIS
 SUBSECTION, ON OR BEFORE JANUARY 1, 2028, RECEIVED A QUEUE POSITION
 UNDER § 7–306.2 OF THIS SUBTITLE AND PAID AN INITIAL INTERCONNECTION
 DEPOSIT; AND
2.
  EXCEPT AS PROVIDED IN PARAGRAPHS (5) AND (6) OF
 THIS SUBSECTION, IS PLACED IN SERVICE BY THE OPERATIONAL DEADLINES
 ESTABLISHED BY THE COMMISSION UNDER COMAR 20.62.03.04C; AND
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(II)  AT THE TIME THE SYSTEM MET THE REQUIREMENTS OF
 ITEM (I)(1) OF THIS PARAGRAPH, THE ELECTRIC COMPANY IN WHOSE SERVICE
 TERRITORY THE COMMUNITY SOLAR ENERGY GENERATING SYSTEM IS LOCATED
 HAD NOT MET THE NET ENERGY METERING CAPACITY LIMIT UNDER PARAGRAPH (3)
 OF THIS SUBSECTION.
(3)  AN ELECTRIC COMPANY MAY NOT OFFER NET ENERGY METERING
 UNDER THIS SECTION TO A COMMUNITY SOLAR ENERGY GENERATING SYSTEM IF:
(I)  THE ELECTRIC COMPANY HAD A 2025 ANNUAL PEAK
 DEMAND OF 2,500 MEGAWATTS OR LESS; AND
(II) THE TOTAL COMBINED RATED GENERATING CAPACITY OF
 COMMUNITY SOLAR ENERGY GENERATING SYSTEMS HOLDING QUEUE POSITIONS IN
 A COMMUNITY SOLAR ENERGY GENERATING SYSTEM PROGRAM IN THE ELECTRIC
 COMPANY’S SERVICE TERRITORY UNDER § 7–306.2 OF THIS SUBTITLE BUT NOT YET
 OPERATING EXCEEDS 150% OF THE TOTAL COMBINED RATED GENERATING
 CAPACITY OF COMMUNITY SOLAR ENERGY GENERATING SYSTEMS HOLDING QUEUE
 POSITIONS IN THE COMMUNITY SOLAR ENERGY GENERATING SYSTEM PROGRAM BUT
 NOT YET OPERATING AS OF APRIL 1, 2026.
(4)   THE COMMISSION MAY GRANT AN EXTENSION TO THE DATE
 SPECIFIED IN PARAGRAPH (2)(I)1 OF THIS SUBSECTION IF, DUE TO A FAILURE OF AN
 ELECTRIC COMPANY TO COMPLY WITH A COMMISSION ORDER, REGULATION,
 STATUTE, OR TARIFF, A COMMUNITY SOLAR ENERGY GENERATING SYSTEM WAS
 UNABLE TO RECEIVE A QUEUE POSITION UNDER § 7–306.2 OF THIS SUBTITLE OR PAY
 AN INITIAL INTERCONNECTION DEPOSIT.
(5)   THE COMMISSION MAY GRANT AN EXTENSION  TO    AN
 OPERATIONAL DEADLINE UNDER COMAR 20.62.03.04C IF:
(I) OPERATION OF A COMMUNITY SOLAR ENERGY GENERATING
 SYSTEM IS DELAYED DUE TO INTERCONNECTION OR PERMITTING CHALLENGES OR
 DELAYS; AND
(II)   THE DEVELOPER PROVIDES DOCUMENTATION OF THE
 CHALLENGE OR DELAY.
(6) IF THE SUCCESSOR PROGRAM REQUIRED UNDER § 7–306.4 OF
 THIS SUBTITLE DOES NOT BEGIN BY JULY 1, 2027, INCLUDING ELECTRIC
 COMPANIES HAVING FULLY UPDATED  TARIFFS   AND   BILLING   SYSTEMS   TO
 FACILITATE THE SUCCESSOR PROGRAM:
  SENATE BILL 841  91
(I)
  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 RECEIVE AN EXTENSION
 TO THE OPERATIONAL DEADLINES ESTABLISHED BY THE COMMISSION UNDER
 COMAR 20.62.03.04C THAT IS EQUAL TO THE NUMBER OF DAYS PAST JULY 1, 2027,
 THAT THE SUCCESSOR PROGRAM BEGAN; AND
(II)
  AN ELIGIBLE CUSTOMER–GENERATOR WITH A SOLAR
 ENERGY GENERATING SYSTEM OF NOT MORE THAN 2 MEGAWATTS OF ALTERNATING
 CURRENT THAT HAS APPLIED FOR NET ENERGY METERING ON OR AFTER JULY 1,
 2027, SHALL REMAIN ELIGIBLE FOR NET ENERGY METERING UNDER THIS SECTION.
(7)
  AN ELIGIBLE CUSTOMER–GENERATOR OR COMMUNITY SOLAR
 ENERGY GENERATING SYSTEM THAT, ON JULY 1, 2027, IS UNDER A NET ENERGY
 METERING CONTRACT OR TARIFF UNDER THIS SECTION OR MEETS THE
 REQUIREMENTS OF SUBPARAGRAPH (2)(I)1 AND (II) OF THIS SUBSECTION SHALL
 REMAIN ELIGIBLE FOR NET ENERGY METERING UNDER THIS SECTION UNTIL THE
 SYSTEM IS DECOMMISSIONED IN ACCORDANCE WITH THE CRITERIA ESTABLISHED
 BY THE COMMISSION UNDER § 7–218(G) OF THIS TITLE.
(j)    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:
(1)    the amount of capacity of electric generating facilities owned and
 operated by eligible customer–generators in the State by type of energy resource;
(2)    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; [and]
(3)
  THE STATUS OF THE IMPLEMENTATION AND EFFICACY OF THE
 SUCCESSOR PROGRAM DEVELOPED AND IMPLEMENTED UNDER § 7–306.4 OF THIS
 SUBTITLE; AND
(4)   other pertinent information.
 7–306.2.
(a)      (1)   In this section the following words have the meanings indicated.
(4)   “Community solar energy generating system” means a solar energy
 system that:
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(i)     is connected to the electric distribution system serving the State;
(ii)    is located in the same electric service territory as its subscribers;
(iii) is attached to the electric meter of a subscriber or is a separate
 facility with its own electric meter;
(iv) 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;
(v)     has at least two subscribers but no limit to the maximum number
 of subscribers;
(vi) does not have subscriptions larger than 200 kilowatts
 constituting more than 60% of its kilowatt–hour output;
(vii) has a generating capacity that does not exceed 5 megawatts as
 measured by the alternating current rating of the system’s inverter;
(viii) may be owned by any person; and
(ix) 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, EITHER:
1.
  SERVES AT LEAST 40% OF ITS KILOWATT–HOUR
 OUTPUT TO LMI SUBSCRIBERS THROUGH A SUBSCRIBER ORGANIZATION OR
 SUBSCRIPTION COORDINATOR; OR
2.   CONTRIBUTES TO THE MARYLAND STRATEGIC
 ENERGY INVESTMENT FUND, IN ACCORDANCE WITH SUBSECTION (O) OF THIS
 SECTION, THE MONETARY EQUIVALENT OF THE BILL CREDIT VALUE ALLOCATED TO
 RESIDENTIAL SUBSCRIBERS FOR 10% OF THE OUTPUT OF THE COMMUNITY SOLAR
 ENERGY GENERATING SYSTEM.
(7)    “LMI subscriber” means a subscriber that:
(i)     is low–income;
(ii)    is moderate–income; or
(iii)   resides in a census tract that is:
  SENATE BILL 841  93
1.    an overburdened community; and
2.    an underserved community.
(d)   (1)   (i)   The Commission shall establish and maintain a Community
 Solar Energy Generating Systems Program.
(ii)   The structure of the Program is as provided in this subsection.
(13) (i)      Except as provided in subparagraph (ii) 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.
(ii)   The prohibition under subparagraph (i) of this paragraph does
 not apply to projects constructed:
1.    on the rooftops of buildings;
2.    in areas that are zoned for industrial use;
3.    on brownfields locations and clean fill sites;
4.    over parking lots or roadways;
5.    on multilevel parking structures;
6.    on or over transportation or public rights–of–way;
7.    at airports;
8.    on land that:
A.    was previously zoned for industrial use or is ecologically
 compromised; and
B.    is not targeted for mitigation or restoration; or
9.    in any location if the combined capacity of all community
 solar energy generating systems on the same [or adjacent] parcel does not exceed 10
 megawatts and:
A.    at least 75% of the aggregate capacity of the co–located
 community solar energy generating systems serves LMI subscribers;
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B.     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
C.      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.
(O)    (1)ON OR BEFORE FEBRUARY 1 EACH YEAR, A COMMUNITY SOLAR
 ENERGY GENERATING SYSTEM THAT COMPLIES WITH SUBSECTION (A)(4)(IX)2 OF
 THIS SECTION SHALL:
(I)
  CALCULATE THE MONETARY RETAIL VALUE EQUIVALENT OF
 10% OF THE OUTPUT FOR THE COMMUNITY SOLAR ENERGY GENERATING SYSTEM
 FOR THE PREVIOUS YEAR;
(II)
  PAY THE CALCULATED AMOUNT INTO THE ENERGY
 ASSISTANCE ACCOUNT OF THE MARYLAND STRATEGIC ENERGY INVESTMENT
 FUND; AND
(III) NOTIFY THE COMMISSION THAT THE PAYMENT HAS BEEN
 MADE.
(2) THE AMOUNT PAID INTO THE MARYLAND STRATEGIC ENERGY
 INVESTMENT FUND UNDER THIS SUBSECTION SHALL BE USED ONLY FOR DIRECT
 ENERGY ASSISTANCE PROGRAMS IN ACCORDANCE WITH § 9–20B–05 OF THE STATE
 GOVERNMENT ARTICLE.
 7–306.4.
(A)    (1)   IN THIS SECTION THE FOLLOWING WORDS HAVE THE MEANINGS
 INDICATED.
(2) “ELIGIBLE CUSTOMER–GENERATOR” HAS THE MEANING STATED
 IN § 7–306 OF THIS SUBTITLE.
(3)“NET ENERGY METERING” HAS THE MEANING STATED IN § 7–306
 OF THIS SUBTITLE.
(B)IT IS THE INTENT OF THE GENERAL ASSEMBLY TO TRANSITION TO A NET
 ENERGY METERING PROGRAM THAT:
  SENATE BILL 841  95
(1)INCREASES BENEFITS TO RATEPAYERS BY LOWERING ELECTRIC
 SYSTEM COSTS THROUGH THE USE OF FLEXIBLE CUSTOMER–SITED RENEWABLE
 ENERGY RESOURCES;
(2) PROVIDES  FAIR    COMPENSATION      TO    ELIGIBLE
 CUSTOMER–GENERATORS;
(3) IS DESIGNED TO MAKE PROGRESS TOWARD MEETING THE STATE’S
 DEMAND–SIDE, ENERGY STORAGE, AND CLEAN ENERGY GOALS; AND
(4)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.
      (C) ON OR BEFORE FEBRUARY 1, 2027, THE COMMISSION, BY ORDER OR
 REGULATION, SHALL DEVELOP AND IMPLEMENT, AS A SUCCESSOR PROGRAM TO THE
 NET ENERGY METERING PROGRAM UNDER § 7–306 OF THIS SUBTITLE, A NET
 ENERGY METERING PROGRAM TO BEGIN JULY 1, 2027, THAT:
(1)   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;
(2)     MINIMIZES RATEPAYER COSTS IN THE SHORT TERM AND IN THE
 LONG TERM;
(3) BALANCES, ON A STATEWIDE BASIS AND ACROSS TECHNOLOGIES
 AND INDUSTRY SECTORS PARTICIPATING IN NET ENERGY METERING, AND WHILE
 RECOGNIZING DIFFERENCES IN SYSTEM BENEFITS BETWEEN PROJECT TYPES WHEN
 DESIGNING TARIFFS IN ACCORDANCE WITH PARAGRAPH (4) OF THIS SUBSECTION:
(I)    1.   FAIR COMPENSATION FOR ENERGY EXPORTS; AND
2.   THE       BENEFITS     OF      AN      ELIGIBLE
 CUSTOMER–GENERATOR’S OR FACILITY’S REDUCED LOAD ON THE ELECTRIC
 TRANSMISSION AND DISTRIBUTION SYSTEM, INCLUDING BENEFITS THAT MAY VARY
 BASED ON PROJECT LOCATION, SITING, TIME TO OPERATION, OR USE OF EXISTING
 STRUCTURES OR DEVELOPED PROPERTY; AGAINST
(II)   1.THE NEEDS OF THE ELECTRIC TRANSMISSION AND
 ELECTRIC DISTRIBUTION SYSTEM;
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2.   RATEPAYER COSTS AND BENEFITS; AND
3.
  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; AND
(4)
  MAY ESTABLISH DIFFERENT TARIFFS FOR THE FOLLOWING
 MARKET SEGMENTS THAT TAKE INTO ACCOUNT THE CHARACTERISTICS OF EACH
 MARKET SEGMENT:
(I)    RESIDENTIAL ELIGIBLE–CUSTOMER GENERATORS;
(II)   NONRESIDENTIAL ELIGIBLE–CUSTOMER GENERATORS;
(III) COMMUNITY SOLAR ENERGY GENERATING SYSTEMS UNDER
 § 7–306.2 OF THIS SUBTITLE; SUBTITLE THAT ARE SITED ON COMMERCIAL OR
 INDUSTRIAL ROOFTOPS;
(IV)OTHER COMMUNITY SOLAR ENERGY GENERATING SYSTEMS
 UNDER § 7–306.2 OF THIS SUBTITLE;
(IV) (V)  AGGREGATED NET ENERGY METERED FACILITIES
 UNDER § 7–306.3 OF THIS SUBTITLE; AND
(V) (VI)
  ANY ADDITIONAL MARKET SEGMENT OR SUBSET OF A
 MARKET SEGMENT IDENTIFIED BY THE COMMISSION.
      (D)  ON OR BEFORE JANUARY 1, 2027, THE COMMISSION SHALL PROVIDE
 NOTICE TO THE GENERAL ASSEMBLY, IN ACCORDANCE WITH § 2–1257 OF THE
 STATE GOVERNMENT ARTICLE, ON THE STATUS OF THE DEVELOPMENT OF THE
 PROGRAM REQUIRED UNDER SUBSECTION (C) OF THIS SECTION.
      (E)   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 QUEUE FOR THE NET ENERGY
 METERING PROGRAM UNDER § 7–306 OF THIS SUBTITLE.
      (F) THE PROGRAM IMPLEMENTED BY THE COMMISSION UNDER
 SUBSECTION (C) OF THIS SECTION SHALL BE AVAILABLE UNTIL THE COMBINED
  SENATE BILL 841  97
 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.
 7–321.
      (A)  IN THIS SECTION, “PORTABLE SOLAR ENERGY GENERATING SYSTEM”
 MEANS A MOVABLE PHOTOVOLTAIC SOLAR ENERGY GENERATION DEVICE THAT IS:
(1)DESIGNED TO BE CONNECTED TO A BUILDING’S ELECTRICAL
 SYSTEM THROUGH A STANDARD ELECTRICAL OUTLET;
(2) PRIMARILY INTENDED TO OFFSET PART OF THE BUILDING’S
 ELECTRICITY CONSUMPTION;
(3) LIMITED TO SUPPLYING A MAXIMUM POWER OUTPUT OF NOT
 MORE THAN 1,200 WATTS BACK TO THE ELECTRIC SYSTEM; AND
(4)CERTIFIED BY UNDERWRITERS LABORATORY OR AN EQUIVALENT
 NATIONALLY RECOGNIZED TESTING LABORATORY.
      (B) A PERSON MAY PURCHASE AND INSTALL A PORTABLE SOLAR ENERGY
 GENERATING SYSTEM FOR RESIDENTIAL USE ONLY.
      (C)   A PORTABLE SOLAR ENERGY GENERATING SYSTEM:
(1)  IS NOT SUBJECT TO THE REQUIREMENTS OF §§ 7–306 AND 7–306.1
 OF THIS SUBTITLE;
(2)IS NOT ELIGIBLE FOR INCLUSION IN MEETING THE RENEWABLE
 ENERGY PORTFOLIO STANDARD; AND
(3)   MAY NOT GENERATE RENEWABLE ENERGY CREDITS OF ANY TYPE.
      (D)   AN ELECTRIC COMPANY:
(1)MAY NOT REQUIRE A CUSTOMER USING A PORTABLE SOLAR
 ENERGY GENERATING SYSTEM TO:
(I) OBTAIN THE ELECTRIC COMPANY’S APPROVAL BEFORE
 INSTALLING OR USING THE PORTABLE SOLAR ENERGY GENERATING SYSTEM;
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(II)
  PAY ANY FEE OR CHARGE RELATED TO THE PORTABLE
 SOLAR ENERGY GENERATING SYSTEM’S ABILITY TO FEED ELECTRICITY BACK INTO
 THE ELECTRIC SYSTEM; OR
(III) 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
(2)
  IS NOT LIABLE FOR ANY DAMAGE CAUSED BY A PORTABLE SOLAR
 ENERGY GENERATING SYSTEM.
      (E)     A CUSTOMER USING A PORTABLE SOLAR ENERGY GENERATING SYSTEM
 SHALL:
(1)
  NOTIFY THE ELECTRIC COMPANY PROVIDING SERVICE IN THE
 SERVICE TERRITORY IN WHICH THE GENERATING SYSTEM WILL BE INSTALLED
 BEFORE INSTALLATION;
(2)
  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
(3)
  IF THE GENERATING SYSTEM REQUIRES AN AUTOMATIC LOCKING
 DISCONNECT SWITCH TO BE INSTALLED, PAY FOR THE SWITCH INSTALLATION.
 7–322.
THE COMMISSION MAY NOT ADOPT OR ENFORCE ANY REGULATION OR ORDER
 THAT PROHIBITS A PUBLIC SERVICE COMPANY FROM OFFERING A DISCOUNT OR
 PAYMENT PLAN FOR THE CONNECTION OR EXTENSION OF A NATURAL GAS LINE TO A
 CUSTOMER’S PROPERTY.
 7–505.
(b)   (1)    The Commission shall issue the orders or adopt the regulations
 required under this subsection before the implementation of customer choice.
(2)    The Commission shall order a universal service program, to be made
 available on a statewide basis, to benefit low–income customers, in accordance with [§
 7–512.1 of this subtitle] § 5–5A–08 OF THE HUMAN SERVICES ARTICLE.
(d)   (2)    (ii)   The cap required under paragraph (1) of this subsection applies
 to the recovery of:
  SENATE BILL 841  99
3.      costs for the universal service program established under
 [§ 7–512.1 of this subtitle] § 5–5A–08 OF THE HUMAN SERVICES ARTICLE.
 7–510.3.
(o)   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 [§
 7–512.1 of this subtitle] § 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.
 7–1006.
(a)    (1)    [The Commission may approve or require an investor–owned electric
 company to] 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:
(i)     enrolls in a pilot program or temporary tariff established under
 § 7–1005 of this subtitle; and
(ii)   allows the system to be used for electric distribution system
 support services for a period of not less than 5 years.
(2)   [The Commission may:
(i)   authorize or require an investor–owned electric company to
 provide an additional incentive or rebate for low– or moderate–income customers who apply
 for an incentive or rebate under this section; and
(ii)   require   an   investor–owned  THE
  electric   company   to]
 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.
(b)   [In determining whether to require an investor–owned electric company to
 offer an incentive or rebate under this section, the Commission shall consider:
(1)    the benefit of reducing the operation of peak generating facilities in
 overburdened and underserved communities;
(2)   the benefit of resiliency and service outage avoidance for customers
 with on–site generating systems; and
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(3)    the potential for investor–owned electric companies to reduce expenses
 relating to electric distribution system infrastructure by leveraging customers’ on–site
 generating systems.
(c)    The Commission shall consider establishing a limit on the amount of
 incentives or rebates issued in a manner that achieves deployment goals while mitigating
 potential customer impacts.
(d)  The Commission shall consult with the] THE Maryland Energy
 Administration, when approving [or requiring] an incentive or rebate under this section,
 [to] 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.
 7–1007.
(a)    An investor–owned electric company may recover all reasonable costs incurred
 in[:
(1)]   participating in and administering a program under § 7–1005 of this
 subtitle[; and
(2)    offering an upfront incentive or rebate under § 7–1006 of this subtitle].
(b)   To the extent feasible, the costs [listed] 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.
(c)   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.
 7–1008.
THE COMMISSION SHALL DEVELOP GUIDELINES AND LIMITATIONS FOR:
(1)
  CHARGING AND DISCHARGING BEHIND–THE–METER ENERGY
 STORAGE FACILITIES; AND
(2) WHEN      ELECTRIC    COMPANIES       MAY     PROHIBIT
 BEHIND–THE–METER ENERGY STORAGE FACILITIES FROM BEING STUDIED BY AN
 ELECTRIC COMPANY AS AN ADDITIONAL LOAD UNDER A LOAD STUDY CONDUCTED
 UNDER § 4–212 OF THIS ARTICLE.
  SENATE BILL 841  101
 7–1201.
(a)    In this part the following words have the meanings indicated.
(g)     “Large capacity energy resource” means a generating station or energy storage
 device that[:
(1)   on or before January 1, 2025:
(i)    has applied to PJM for interconnection approval; or
(ii)   has been approved by PJM for interconnection; and
(2)] has a capacity rating equal to or greater than 20 megawatts after
 accounting for the effective load carrying capability.
 7–1216.
(a)   The Commission may not approve an application for a nuclear energy
 generation project submitted under § 7–1212 of this subtitle unless:
(1)   the project is connected to the electric system serving the State;
(2)    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;
(3)    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
(4)   the price specified in the proposed long–term pricing schedule does not
 exceed an amount determined by the Commission.
(b)   When calculating the projected net average rate impacts for nuclear energy
 generation projects under this section, the Commission shall [apply the same] CONSIDER
 THE net long–term cost per megawatt–hour APPLIED to residential and nonresidential
 customers.
 7–1220.
(a)   In this section, “zero–emission credit” means [the difference between the price
 that a nuclear energy generating station with a long–term pricing schedule approved in an
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 order issued under § 7–1217 of this subtitle may receive on the wholesale market and the
 cost of constructing the nuclear energy generating station] A CREDIT EQUAL TO THE
 ENVIRONMENTAL IMPACT 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.
(b)   The Commission shall adopt regulations that:
(1)   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;
(2)  define rules that facilitate and ensure the secure and transparent
 transfer of revenues and long–term pricing payments among parties;
(3)   define the terms and procedures of the nuclear energy long–term
 pricing schedule obligations, including:
(i)   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
(ii)   establishing a per megawatt hour cap on any long–term pricing
 schedule specified in an order issued under § 7–1217 of this subtitle;
(4)    require the Commission to establish an escrow account; and
(5)   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.
(c)    (1)  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.
(2)    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.
  SENATE BILL 841  103
(d)   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.
(E)    (1)   SUBJECT TO PARAGRAPH (2) OF THIS SUBSECTION, THE
 COMMISSION MAY APPROVE AN INCREASE OF THE TOTAL COST OF A NUCLEAR
 ENERGY GENERATION PROJECT UNDER A LONG–TERM PRICING PURCHASE
 OBLIGATION.
(2)   THE TOTAL COST OF A NUCLEAR ENERGY GENERATION PROJECT
 UNDER A LONG–TERM PRICING PURCHASE OBLIGATION MAY NOT BE INCREASED BY
 MORE THAN 15% OF THE ORIGINAL COST.
 7–1225.
(a)   The Commission shall include specifications in a procurement solicitation
 issued under § 7–1224 of this subtitle that require each proposal to:
(1)   include a proposed pricing schedule for the transmission energy storage
 project that:
(i)     is for at least 15 years; and
(ii)  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;
(2)   include a cost–benefit analysis of the project and proposed pricing
 schedule comparison on a dollar–per–megawatt–hour basis, including an analysis of:
(i)     the locational value and time to deployment of the energy storage
 devices;
(ii)    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;
(iii)   avoided or delayed transmission, generation, and distribution
 costs;
(iv) 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;
(v)     the value of the rapid deployment of energy storage devices;
SENATE BILL 841
(vi) 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
(vii)   any other avoided costs;
(3)     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;
(4)   ensure that the energy storage devices can deliver their effective
 nameplate capacity;
(5)   incorporate a community benefit agreement;
(6)    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
(7)   ensure a competitive bidding process, including by redacting
 proprietary information provided to the Commission.
      (b)    An energy storage device shall be considered capable of delivering its effective
 nameplate capacity under this section if:
(1)   the energy storage device will have the capacity interconnection rights
 with PJM Interconnection equal to its effective nameplate capacity; or
(2)  (i)    the energy storage device will have surplus interconnection
 service with PJM Interconnection; and
(ii)  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.
      (c)  [Front–of–the–meter] 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:
(1)   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[, may be
 included in a proposal in response to a procurement solicitation under § 7–1224 of this
 subtitle]; AND
  SENATE BILL 841  105
(2)
  FRONT–OF–THE–METER    TRANSMISSION   ENERGY   STORAGE
 DEVICES INTERCONNECTED TO A FACILITY WITHIN THE STATE THAT IS USED TO
 TRANSMIT ELECTRICITY TO ANOTHER STATE.
 7–1302.
(a)    There is a Strategic Energy Planning Office.
(b)    (1)   The head of the Office is the Director.
(2)    (i)   The Director shall be appointed by the Governor with the advice
 and consent of the Senate.
(ii)   1.    The term of the Director is 5 years and begins on July 1.
2.    THE FIRST TERM OF THE DIRECTOR SHALL BEGIN ON
 JULY 1, 2026.
(iii) At the end of a term, the Director continues to serve until a
 successor is appointed and qualifies.
(iv) 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.
(v)    A Director may serve more than one term.
(3)    The Governor may remove the Director for incompetence or misconduct
 in accordance with § 3–307 of the State Government Article.
(4)   The Director is entitled to a salary as provided in the State budget.
 7–1304.
(c)     (1)   On or before November 1 each year, the Senate Committee on
 Education, Energy, and the Environment and the House [Economic Matters]
 ENVIRONMENT AND TRANSPORTATION Committee may jointly request the Office to
 assess up to five policy scenarios.
(2)    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    [Economic Matters] ENVIRONMENT AND
 TRANSPORTATION Committee in accordance with § 2–1257 of the State Government
 Article.
Article – Real Property
SENATE BILL 841
 14–134.
(A)    (1)   IN THIS SECTION THE FOLLOWING WORDS HAVE THE MEANINGS
 INDICATED.
(2)   “DATA CENTER” MEANS A BUILDING OR GROUP OF BUILDINGS:
(I)    USED
  TO HOUSE COMPUTER SYSTEMS, COMPUTER
 STORAGE EQUIPMENT, AND ASSOCIATED INFRASTRUCTURE THAT BUSINESSES OR
 OTHER ORGANIZATIONS USE TO ORGANIZE, PROCESS, STORE, AND DISSEMINATE
 LARGE AMOUNTS OF DATA;
(II)
  THAT HAS OR IS PROJECTED TO HAVE AN AGGREGATE
 DEMAND OF AT LEAST 5 MEGAWATTS; AND
(III) THAT HAS OR IS PROJECTED TO HAVE A LOAD FACTOR OF
 MORE THAN 80%.
(3) “DEVELOPMENT DISTRICT” MEANS AN AREA OR AREAS WITHIN
 THE CITY OF BALTIMORE DESIGNATED BY AN ORDINANCE OF THE MAYOR AND CITY
 COUNCIL OF BALTIMORE.
(4)
  “TAX INCREMENT” MEANS FOR ANY TAX YEAR THE AMOUNT BY
 WHICH THE ASSESSABLE BASE AS OF JANUARY 1 PRECEDING THAT TAX YEAR
 EXCEEDS THE ORIGINAL TAXABLE VALUE, DIVIDED BY THE ASSESSMENT RATIO
 USED TO DETERMINE THE ORIGINAL TAXABLE VALUE.
(B)    THIS SECTION APPLIES ONLY IN BALTIMORE CITY.
(C)    (1)   EXCEPT AS PROVIDED IN PARAGRAPH (2) OF THIS SUBSECTION, A
 PERSON MAY NOT CONSTRUCT A DATA CENTER IN A DEVELOPMENT DISTRICT THAT
 IS SUBJECT TO TAX INCREMENT REPAYMENT ON OUTSTANDING BONDS.
(2)
  THE PROHIBITION IN PARAGRAPH (1) OF THIS SUBSECTION DOES
 NOT APPLY TO THE CONSTRUCTION OF A DATA CENTER IN THE CITY–WIDE
 AFFORDABLE HOUSING DEVELOPMENT DISTRICT ESTABLISHED UNDER
 BALTIMORE CITY ORDINANCE NO. 24–443, ENACTED DECEMBER 4, 2024.
Article – State Finance and Procurement
 4–101.
(a)    In this title the following words have the meanings indicated.
  SENATE BILL 841  107
(b)     “Department” means the Department of General Services.
 4–323.
THE DEPARTMENT MAY ISSUE A REQUEST FOR PROPOSALS FOR A LONG–TERM
 LEASE FOR NEW OR EXPANDED GENERATING STATIONS OR ENERGY STORAGE
 DEVICES ON ANY STATE–OWNED SITE IDENTIFIED IN THE STUDY UNDER SECTION
 15 OF CHAPTER ____ (S.B. 841) OF THE ACTS OF THE GENERAL ASSEMBLY OF 2026
 IF, ACCORDING TO THE STUDY, THE SITE IS NOT SUBJECT TO SIGNIFICANT
 PERMITTING BOTTLENECKS OR BARRIERS.
 6–226.
(a)     (2)   (i)   This paragraph does not apply in fiscal years 2024 through 2028.
(ii)   Notwithstanding any other provision of law, and unless
 inconsistent with a federal law, grant agreement, or other federal requirement or with the
 terms of a gift or settlement agreement, net interest on all State money allocated by the
 State Treasurer under this section to special funds or accounts, and otherwise entitled to
 receive interest earnings, as accounted for by the Comptroller, shall accrue to the General
 Fund of the State.
(iii) The provisions of subparagraph (ii) of this paragraph do not
 apply to the following funds:
212.   the Department of Social and Economic Mobility Special
 Fund; [and]
213.   the Population Health Improvement Fund; AND
214. THE GREEN AND RENEWABLE ENERGY EFFICIENCY
 FOR NONPROFITS LOAN FUND.
 13–217.
(a)   In this section, “multi–year contract” means a procurement contract that
 requires appropriations for more than 1 fiscal year.
(b)     (1)   A unit may enter into a multi–year contract subject to:
(i)   standards established by the Board; and
(ii)   regulations adopted by the primary procurement unit that is
 responsible for the type of procurement involved.
SENATE BILL 841
(2)  A multi–year contract shall be subject to review and approval by that
 primary procurement unit.
(c)   A multi–year contract may not be approved unless each unit reviewing the
 multi–year contract determines that:
(1)   the estimated requirements of the State:
(i)     cover the period of the multi–year contract;
(ii)    are reasonably firm; and
(iii)   are continuing; and
(2)    the multi–year contract will serve the best interests of the State by
 encouraging effective competition or otherwise promoting economy in State procurement.
(d)   (1)    If money sufficient for the continued performance of a multi–year
 contract is not appropriated for any fiscal year, the multi–year contract terminates
 automatically on the earlier of:
(i)     the last day of the fiscal year for which money last was
 appropriated; or
(ii)    the date provided in the termination clause of the procurement
 contract.
(2)    If the multi–year contract is terminated under this subsection, the unit
 shall reimburse the contractor for the reasonable value of any nonrecurring costs that were:
(i)     incurred as a result of the multi–year contract; but
(ii)   not amortized in the price of the supplies or services delivered
 under the multi–year contract.
(3)    The cost of termination under this subsection may be paid from any
 appropriation available for that purpose.
(e)    Except as provided in subsection (f) of this section, each multi–year contract,
 including a lease of real property, shall include an automatic termination clause that:
(1)   is not inconsistent with the requirements of subsection (d) of this
 section; and
(2)    discharges both parties to the multi–year contract from future
 performance of that contract, but not from their existing obligations.
  SENATE BILL 841  109
(f)    (1)   On the recommendation of the Secretary of General Services, FOR A
 MULTI–YEAR CONTRACT TO PROCURE ENERGY GENERATED FROM A TIER 1
 RENEWABLE SOURCE OR A TIER 2 RENEWABLE SOURCE, AS DEFINED IN § 7–701 OF
 THE PUBLIC UTILITIES ARTICLE, the Board may waive the requirement to include:
(I)    an automatic termination clause under subsection (e) of this
 section [for a multi–year contract to procure energy generated from a Tier 1 renewable
 source or a Tier 2 renewable source, as defined in § 7–701 of the Public Utilities Article];
 OR
(II) A TERMINATION FOR CONVENIENCE CLAUSE REQUIRED
 UNDER § 13–218(A)(2) OF THIS SUBTITLE.
(2)    In determining whether [or not] to grant a waiver under paragraph (1)
 of this subsection, the Board shall consider the effect of imposing THE FOLLOWING
 CLAUSE REQUIREMENTS ON THE ABILITY OF THE ENERGY SUPPLIER TO OBTAIN
 FINANCING FOR THE RENEWABLE ENERGY GENERATION PROJECT THAT PRODUCES
 THE ENERGY THAT THE STATE IS CONTRACTING TO PROCURE:
(I)      the termination clause requirement under subsection (e) of this
 section [on the ability of the energy supplier to obtain financing for the renewable energy
 generation project that produces the energy that the State is contracting to procure]; AND
(II) THE TERMINATION FOR CONVENIENCE CLAUSE REQUIRED
 UNDER § 13–218(A)(2) OF THIS SUBTITLE.
 13–218.
(a)    Each procurement contract shall include clauses covering:
(2)   termination wholly or partly by the State for its convenience if the head
 of the primary procurement unit determines that termination is appropriate;
(F)    IN ACCORDANCE WITH § 13–217(F) OF THIS SUBTITLE, THE BOARD MAY
 WAIVE THE INCLUSION OF A TERMINATION FOR CONVENIENCE CLAUSE REQUIRED
 UNDER SUBSECTION (A)(2) OF THIS SECTION.
Article – State Government
 9–2012.
(b)    There is an Energy Storage System Grant Program in the Administration.
(c)    The purpose of the Program is to provide grants to individuals and business
 entities for a portion of the costs of purchasing and installing energy storage systems.
SENATE BILL 841
(J)THE ADMINISTRATION MAY REQUIRE THAT APPLICANTS PARTICIPATE
 IN THE PROGRAMS OR TARIFFS ESTABLISHED UNDER § 7–1005 OF THE PUBLIC
 UTILITIES ARTICLE.
[(j)] (K)    The Administration may adopt regulations to carry out this section.
 9–20B–01.
(a)    In this subtitle the following words have the meanings indicated.
(b)    “Administration” means the Maryland Energy Administration.
 9–20B–05.
(A)
  IN THIS SECTION, “DISTRICT ENERGY” MEANS THERMAL ENERGY
 GENERATED AT ONE OR MORE CENTRAL FACILITIES THAT PRODUCE HOT WATER,
 STEAM, OR CHILLED WATER THAT THEN FLOWS THROUGH A NETWORK OF
 INSULATED UNDERGROUND PIPES TO PROVIDE HOT WATER, SPACE HEATING, AIR
 CONDITIONING, OR CHILLED WATER TO NEARBY BUILDINGS.
[(a)] (A–1) There is a Maryland Strategic Energy Investment Fund.
(b)      The purpose of the Fund is to implement the Strategic Energy Investment
 Program.
(c)    The Administration shall administer the Fund.
(e)    The Fund consists of:
(1)    all of the proceeds from the sale of allowances under § 2–1002(g) of the
 Environment Article;
(2)   money appropriated in the State budget to the Program;
(3)      repayments and prepayments of principal and interest on loans made
 from the Fund;
(4)   compliance fees paid under § 7–705 of the Public Utilities Article;
(5)   money received from any public or private source for the benefit of the
 Fund;
(6)    money transferred from the Public Service Commission under §
 7–207.2(d)(3) of the Public Utilities Article; [and]
  SENATE BILL 841  111
(7)   money distributed under § 2–614.1 of the Tax – General Article; AND
(8)
  MONEY   RECEIVED     FROM    COMMUNITY    SOLAR   ENERGY
 GENERATING SYSTEMS UNDER § 7–306.2 OF THE PUBLIC UTILITIES ARTICLE.
(f)    The Administration shall use the Fund:
(1)   to invest in the promotion, development, and implementation of:
(i)    cost–effective energy efficiency and conservation programs,
 projects, or activities, including measurement and verification of energy savings;
(ii)   renewable and clean energy resources;
(iii) climate change programs directly related to reducing or
 mitigating the effects of climate change; and
(iv) demand response programs that are designed to promote
 changes in electric usage by customers in response to:
1.     changes in the price of electricity over time; or
2.     incentives designed to induce lower electricity use at times
 of high wholesale market prices or when system reliability is jeopardized;
(2)    to provide targeted programs, projects, activities, and investments to
 reduce electricity consumption by customers in the low–income and moderate–income
 residential sectors;
(3)   to provide supplemental funds for low–income energy assistance
 through [the Electric Universal Service Program established under § 7–512.1 of the Public
 Utilities Article and other] electric AND FUEL assistance programs in the Department of
 Human Services;
(4)   to provide rate relief by offsetting electricity rates of:
(I)    residential customers, including an offset of surcharges imposed
 on ratepayers under Title 7, Subtitle 2, Part II of the Public Utilities Article; AND
(II) RESIDENTS OF APARTMENT HOUSES, AS DEFINED IN § 7–303
 OF THE PUBLIC UTILITIES ARTICLE, FOR WHICH ELECTRICITY SERVICE IS
 PROVIDED THROUGH:
1.
  SUBMETERING AUTHORIZED UNDER § 7–303 OF THE
 PUBLIC UTILITIES ARTICLE; OR
SENATE BILL 841
2.   AN ENERGY ALLOCATION SYSTEM AS DEFINED IN §
 7–304 OF THE PUBLIC UTILITIES ARTICLE;
(5)    to provide grants, loans, and other assistance and investment as
 necessary and appropriate to implement the purposes of the Program as set forth in §
 9–20B–03 of this subtitle;
(6)    to implement energy–related public education and outreach initiatives
 regarding reducing energy consumption and greenhouse gas emissions;
(7)   to provide rebates under the Electric Vehicle Recharging Equipment
 Rebate Program established under § 9–2009 of this title;
(8)     to provide grants to encourage combined heat and power projects at
 industrial facilities;
(9)   to provide at least $1,200,000 in each fiscal year for fiscal year 2025
 through fiscal year 2028 to the Climate Technology Founder’s Fund established under §
 10–858 of the Economic Development Article;
(10) subject to subsection (f–2) of this section, to provide at least $2,100,000
 in funding each fiscal year to the Maryland Energy Innovation Fund established under §
 10–835 of the Economic Development Article;
(11) to provide at least $500,000 each year to the Resiliency Hub Grant
 Program Fund under § 9–2011 of this title;
(12) to provide grants through the Customer–Sited Solar Program under §
 9–2016 of this title;
(13) notwithstanding subsection (g) of this section, to pay costs associated
 with the Air and Radiation Administration within the Department of the Environment;
 [and]
(14) TO PROVIDE FUNDS TO THE GREEN AND RENEWABLE ENERGY
 EFFICIENCY FOR NONPROFITS LOAN FUND ESTABLISHED UNDER § 10–868 OF THE
 ECONOMIC DEVELOPMENT ARTICLE;
(15) TO PROVIDE LOANS AND GRANTS FOR:
(I)
  BUILDING ELECTRIFICATION, INCLUDING CONNECTION TO
 AN ELECTRIFIED DISTRICT ENERGY SYSTEM;
(II)
  ELECTRIFIED THERMAL ENERGY GENERATION ASSETS
 INTERCONNECTED WITH A DISTRICT ENERGY SYSTEM; AND
  SENATE BILL 841  113
(III) TRANSPORTATION ELECTRIFICATION;
(16) TO PROVIDE LOANS AND GRANTS FOR PROGRAMS, PROJECTS, AND
 TECHNOLOGIES THAT ASSIST COVERED BUILDINGS, AS DEFINED IN § 2–1601 OF THE
 ENVIRONMENT ARTICLE, IN MEETING THE BUILDING ENERGY PERFORMANCE
 STANDARDS ESTABLISHED UNDER § 2–1602 OF THE ENVIRONMENT ARTICLE;
(17) TO DISTRIBUTE MONEY RECEIVED FROM COMMUNITY SOLAR
 ENERGY GENERATING SYSTEMS UNDER § 7–306.2 OF THE PUBLIC UTILITIES
 ARTICLE FOR:
(I)ENHANCING      ENERGY        ASSISTANCE  PROGRAMS
 ADMINISTERED BY THE OFFICE OF HOME  ENERGY PROGRAMS IN THE
 DEPARTMENT OF HUMAN SERVICES; OR
(II)OTHER   DIRECT  ENERGY        ASSISTANCE    PROGRAMS
 DESIGNATED FOR LOW–INCOME HOUSEHOLDS;
(18) TO PROVIDE GRANTS FOR RENEWABLE ENERGY GENERATION AND
 ENERGY STORAGE PROJECTS UNDER § 9–20E–02 OF THIS TITLE;
(19) IN FISCAL YEAR 2027, TO PROVIDE GRANTS TO ELECTRIC
 COMPANIES, INCLUDING ELECTRIC COOPERATIVES AND MUNICIPAL ELECTRIC
 UTILITIES, TO PAY DOWN THE COSTS INCURRED BY THE ELECTRIC COMPANIES FOR
 IMPLEMENTING AND ADMINISTERING PROGRAMS AND SERVICES UNDER TITLE 7,
 SUBTITLE 2, PART II OF THE PUBLIC UTILITIES ARTICLE;
(20) IN FISCAL YEAR 2027, TO OFFSET RESIDENTIAL ELECTRIC
 CUSTOMER COSTS ASSOCIATED WITH THE LIMITED–INCOME RATE MECHANISM
 REQUIRED UNDER § 4–309 OF THE PUBLIC UTILITIES ARTICLE;
(21) INFISCAL YEAR 2027, TO PROVIDE FUNDING FOR A
 COMPREHENSIVE STUDY OF PUBLIC SCHOOL HVAC SYSTEMS IN BALTIMORE CITY;
(22) IN FISCAL YEAR 2027, TO PROVIDE FUNDING FOR UPGRADES TO
 PUBLIC SCHOOL HVAC SYSTEMS IN BALTIMORE CITY;
(23) IN FISCAL YEAR 2027, TO PROVIDE ADDITIONAL FUNDING FOR
 THE ADMINISTRATION’S RESIDENTIAL AND COMMERCIAL ENERGY STORAGE
 GRANT PROGRAM;
SENATE BILL 841
(24) IN FISCAL YEAR 2027, TO PROVIDE ADDITIONAL FUNDING FOR
 THE REVIEW OF RENEWABLE AND CLEAN ENERGY PROJECTS THROUGH THE
 DEPARTMENT OF NATURAL RESOURCES’ POWER PLANT RESEARCH PROGRAM;
(25) IN FISCAL YEAR 2027, TO PROVIDE ADDITIONAL FUNDING FOR
 HEAT  PUMP     INSTALLATIONS   AND   REPLACEMENTS    FOR   LOW–   AND
 MODERATE–INCOME      HOUSEHOLDS     THROUGH    THE    ADMINISTRATION’S
 RESIDENTIAL ENERGY EQUITY PROGRAM; AND
[(14)] (26) to pay the expenses of the Program.
(g)   Proceeds received by the Fund from the sale of allowances under § 2–1002(g)
 of the Environment Article shall be allocated as follows:
(1)   at least 50% shall be credited to an energy assistance account to be used
 for [the Electric Universal Service Program and other] electricity AND FUEL assistance
 programs in the Department of Human Services;
(g–1) [Proceeds] EXCEPT AS PROVIDED IN SUBSECTION (I–2) OF THIS SECTION,
 PROCEEDS received by the Fund from compliance fees under § 7–705(b)(2)(i)2 of the Public
 Utilities Article shall be allocated as follows:
(1)    beginning in fiscal year 2025, at least 20% of the proceeds shall be used
 to provide grants to support the installation of new solar energy generating systems under
 the Customer–Sited Solar Program;
(2)    up to 10% of the proceeds shall be credited to an administrative expense
 account for costs related to the administration of the Fund;
(3)    proceeds collected but unused from a previous year shall be used before
 proceeds allocated for the current year; and
(4)    the Administration shall reallocate to other authorized uses any
 proceeds that are not used within 3 fiscal years after collection.
(i)   (1)    Except as provided in paragraphs (2), (3), and (4) of this subsection AND
 SUBSECTION (I–2) OF THIS SECTION, compliance fees paid under § 7–705(b) of the Public
 Utilities Article may be used only to make loans and grants to support the creation of new
 Tier 1 renewable energy sources in the State that are owned by or directly benefit:
(i)    low– to moderate–income communities located in a census tract
 with an average median income at or below 80% of the average median income for the State;
 or
(ii)   overburdened or underserved communities, as defined in § 1–701
 of the Environment Article.
  SENATE BILL 841  115
(2)   [Compliance] EXCEPT AS PROVIDED IN SUBSECTION (I–2) OF THIS
 SECTION, COMPLIANCE fees paid under § 7–705(b)(2)(i)2 of the Public Utilities Article
 shall be accounted for separately within the Fund and may be used only to make loans and
 grants to support the creation of new solar energy sources in the State that are owned by
 or directly benefit:
(i)    low– to moderate–income communities located in a census tract
 with an average median income at or below 80% of the average median income for the State;
(ii)   overburdened or underserved communities, as defined in § 1–701
 of the Environment Article; or
(iii)   households with low to moderate income, as defined in § 9–2016
 of this title.
(3)     For fiscal year 2026 only, up to $100,000,000 of compliance fees paid
 under §§ 7–705(b) and 7–705(b)(2)(i)2 of the Public Utilities Article shall be accounted for
 separately within the Fund and may be used for solar development on State government
 property and local government clean energy projects.
(4)    (i)  Subject to subparagraphs (ii), (iii), and (iv) of this paragraph,
 compliance fees paid under § 7–705 of the Public Utilities Article may be used to provide
 grants to electric companies to be refunded or credited to each residential distribution
 customer based on the customer’s consumption of electricity supply that is subject to the
 renewable energy portfolio standard.
(ii)   The refunding or crediting of amounts to residential distribution
 customers shall be identified on the customer’s bill as a line item identified as a “legislative
 energy relief refund”.
(iii)   An electric company awarded a grant under this paragraph:
1.    may not retain any of the grant funds to cover overhead
 expenses; and
2.    shall provide all of the grant funds to residential
 distribution customers.
(iv) The process under subparagraphs (i) and (ii) of this paragraph
 related to the refunding or crediting of amounts to residential distribution customers shall
 be directed and overseen by the Commission.
(i–1) (1)        (i)     In this subsection the following words have the meanings
 indicated.
SENATE BILL 841
(ii)  “Area median income” has the meaning stated in § 4–1801 of the
 Housing and Community Development Article.
(iii) “Low and moderate income” means having an annual household
 income that is at or below 120% of the area median income.
(2)    [Compliance] EXCEPT AS PROVIDED IN SUBSECTION (I–2) OF THIS
 SECTION, COMPLIANCE fees paid under § 7–705(b–1) of the Public Utilities Article shall
 be accounted for separately within the Fund and may be used only to make loans and grants
 to promote increased opportunities for the growth and development of small, minority,
 women–owned, and veteran–owned businesses in the State that install geothermal systems
 in the State.
     (I–2) FOR FISCAL YEARS 2027 AND 2028, AT LEAST $100,000,000 OF
 COMPLIANCE FEES PAID UNDER § 7–705 OF THE PUBLIC UTILITIES ARTICLE AND
 DEPOSITED INTO THE FUND IN EACH FISCAL YEAR MAY BE USED TO PROVIDE
 GRANTS FOR RENEWABLE ENERGY GENERATION AND ENERGY STORAGE PROJECTS
 UNDER § 9–20E–02 OF THIS TITLE, INCLUDING ANY ASSOCIATED ADMINISTRATIVE
 EXPENSES.
SUBTITLE 20E. ALTERNATIVE COMPLIANCE FEE AUCTIONS.
 9–20E–01.
      (A) IN THIS SUBTITLE THE FOLLOWING WORDS HAVE THE MEANINGS
 INDICATED.
(B)“ADMINISTRATION”  MEANS        THE       MARYLAND  ENERGY
 ADMINISTRATION.
      (C) “ALTERNATIVE COMPLIANCE FEE” MEANS A FEE PAID IN ACCORDANCE
 WITH § 7–705 OF THE PUBLIC UTILITIES ARTICLE TO THE MARYLAND STRATEGIC
 ENERGY INVESTMENT FUND ESTABLISHED UNDER § 9–20B–05 OF THIS TITLE.
(D)   “AUCTION” MEANS AN ALTERNATIVE COMPLIANCE FEE AUCTION.
(E)   “CAPACITY TARGET” MEANS A CALCULATION OF THE AMOUNT OF
 RENEWABLE ENERGY GENERATION NEEDED IN A GIVEN YEAR TO SATISFY THE
 RENEWABLE ENERGY PORTFOLIO STANDARD UNDER § 7–703 OF THE PUBLIC
 UTILITIES ARTICLE FOR A SPECIFIC YEAR, MINUS THE AMOUNT ALREADY
 PROCURED FROM OTHER SOURCES.
(F)   “COMMISSION” MEANS THE PUBLIC SERVICE COMMISSION.
  SENATE BILL 841  117
      (G)    “RENEWABLE ENERGY” MEANS ENERGY GENERATED FROM:
(1) A TIER 1 RENEWABLE SOURCE, AS DEFINED UNDER § 7–701 OF
 THE PUBLIC UTILITIES ARTICLE; OR
(2)   AN ENERGY STORAGE DEVICE.
 9–20E–02.
      (A) FOR 2027 AND 2028, THE ADMINISTRATION SHALL CONDUCT, IN
 CONSULTATION WITH THE COMMISSION, AN ANNUAL, COMPETITIVE, LOW–BID
 ALTERNATIVE COMPLIANCE FEE AUCTION TO AWARD GRANTS TO ELIGIBLE BIDDERS
 TO FUND PROJECTS FOR THE DEVELOPMENT OF RENEWABLE ENERGY GENERATION
 AND ENERGY STORAGE IN THE STATE USING REVENUE FROM ALTERNATIVE
 COMPLIANCE FEES.
      (B) (1) THE ADMINISTRATION, IN CONSULTATION WITH THE
 COMMISSION, SHALL DEVELOP AND CONDUCT THE AUCTIONS IN A MANNER THAT IS
 COST–EFFECTIVE AND MAINTAINS AND PROMOTES THE DEVELOPMENT OF
 RENEWABLE ENERGY AND ENERGY STORAGE IN THE STATE.
(2)   THE COMPETITIVE AUCTION PROCESS MAY REQUIRE THE
 ADMINISTRATION TO SOLICIT A SERIES OF BIDS FROM RENEWABLE ENERGY
 PROJECT DEVELOPERS AND ENERGY STORAGE PROJECT DEVELOPERS FOR THE
 DEVELOPMENT OF RENEWABLE ENERGY GENERATION PROJECTS AND ENERGY
 STORAGE PROJECTS THAT ARE NEEDED TO MEET ELECTRICITY DEMAND IN A
 COST–EFFECTIVE MANNER.
      (C)    (1)   TO BE ELIGIBLE TO SUBMIT A BID UNDER THIS SECTION A PERSON
 MUST:
(I)
  BE A RENEWABLE ENERGY GENERATION  PROJECT
 DEVELOPER OR AN ENERGY STORAGE PROJECT DEVELOPER; AND
(II)
  MEET THE MINIMUM CREDIT AND OTHER ELIGIBILITY
 REQUIREMENTS SET UNDER PARAGRAPH (2) OF THIS SUBSECTION.
(2) THE ADMINISTRATION, IN CONSULTATION WITH THE
 COMMISSION, SHALL SET ELIGIBILITY REQUIREMENTS FOR BIDDERS, INCLUDING
 REQUIRING EACH BIDDER TO:
(I)    PROVIDE PROOF OF FINANCIAL INTEGRITY;
SENATE BILL 841
(II) POST A SURETY BOND THAT RUNS  TO   THE
 ADMINISTRATION, AS OBLIGEE, FOR THE BENEFIT OF THE STATE;
(III) AGREE TO BE SUBJECT TO ALL APPLICABLE TAXES;
(IV)
  COMPLY   WITH    ANY   OTHER   REQUIREMENTS  THE
 ADMINISTRATION DETERMINES ARE IN THE PUBLIC INTEREST; AND
(V)
  DEMONSTRATE THE ABILITY TO FINANCE, EXECUTE, AND
 COMMISSION PROJECTS.
(D) (1)     ELIGIBLE BIDDERS SHALL SUBMIT COMPETITIVE BIDS BY
 SPECIFYING:
(I)
  THE ACTUAL AMOUNT OF MEGAWATTS TO BE GENERATED
 BY THE RENEWABLE ENERGY GENERATION PROJECT, IF APPLICABLE;
(II)
  THE ACTUAL AMOUNT OF MEGAWATTS TO BE STORED BY
 THE ENERGY STORAGE PROJECT, IF APPLICABLE; AND
(III) A PRICE PER MEGAWATT THAT WOULD BE REQUIRED FROM
 THE AUCTION.
(2)
  THE ADMINISTRATION SHALL RANK BIDS FROM LOWEST TO
 HIGHEST COST PER MEGAWATT AND, SUBJECT TO PARAGRAPH (7) OF THIS
 SUBSECTION, AWARD GRANTS WITH FUNDS DERIVED FROM ALTERNATIVE
 COMPLIANCE FEES TO THE LOWEST BID OR BIDS.
(3)THE ADMINISTRATION SHALL AWARD GRANTS UNTIL THE
 CAPACITY TARGET IS REACHED.
(4)   THE BIDDER WHO SUBMITS THE LOWEST RESPONSIVE BID FOR
 DEVELOPING A RENEWABLE ENERGY GENERATION PROJECT OR ENERGY STORAGE
 PROJECT SHALL BE AWARDED THE AMOUNT OF FUNDS TO BUILD THE RENEWABLE
 ENERGY GENERATION PROJECT OR ENERGY STORAGE PROJECT.
(5)   THE ADMINISTRATION MAY REFUSE TO ACCEPT SOME OR ALL OF
 THE BIDS MADE IN A COMPETITIVE AUCTION IN ACCORDANCE WITH STANDARDS
 ADOPTED BY THE ADMINISTRATION.
(6)
  IF THE CAPACITY TARGET CAN BE MET AT A COST BELOW THE
 ALLOCATED FUNDING, THE ADMINISTRATION MAY:
  SENATE BILL 841  119
(I)    CARRY FORWARD ANY FUNDING TO THE NEXT AUCTION; OR
(II)
  APPLY THE FUNDS FOR ANY ADDITIONAL MEGAWATTS OF
 RENEWABLE ENERGY GENERATION OR ENERGY STORAGE THAT HAVE BEEN
 OFFERED UNDER THE AUCTION.
(7) IN AWARDING GRANTS UNDER PARAGRAPH (2) OF THIS
 SUBSECTION, THE ADMINISTRATION SHALL PRIORITIZE BIDS THAT ARE FOR OR
 INCLUDE ENERGY STORAGE DEVICES.
      (E)   (1)   THE ADMINISTRATION SHALL SET DELIVERY DEADLINES FOR
 EACH RENEWABLE ENERGY GENERATION PROJECT THAT IS AWARDED A GRANT
 FROM AN AUCTION.
(2)   THE DEADLINES SET IN PARAGRAPH (1) OF THIS SUBSECTION
 SHALL INCLUDE MILESTONES THAT REQUIRE THE DEVELOPER TO MEET CERTAIN
 DELIVERY GOALS DURING THE DEVELOPMENT OF A RENEWABLE ENERGY
 GENERATION PROJECT.
(3)   THE ADMINISTRATION MAY GRANT EXTENSIONS FOR DELIVERY
 GOALS THAT ARE DELAYED DUE TO INTERCONNECTION OR PERMITTING
 CHALLENGES OR DELAYS IF THE DEVELOPER PROVIDES DOCUMENTATION OF THE
 CHALLENGE OR DELAY.
(4)  THE ADMINISTRATION SHALL ESTABLISH A METHOD OF
 COLLECTION AGAINST ANY DEVELOPER AWARDED A GRANT UNDER THIS SECTION,
 INCLUDING AGAINST ANY SURETY BOND POSTED UNDER SUBSECTION (C)(2)(II) OF
 THIS SECTION, TO RECAPTURE ANY FUNDS RECEIVED AS A RESULT OF:
(I)    MISAPPROPRIATION, OVERPAYMENT, OR FRAUD;
(II)   FAILURE TO MEET MILESTONES OR DELIVERY DATES; OR
(III) FAILURE      TO   MAINTAIN    ELECTRIC    GENERATION
 OPERABILITY FOR 20 YEARS.
      (F) WITHIN 90 DAYS AFTER ALL GRANTS FOR RENEWABLE ENERGY
 GENERATION PROJECTS ARE EXECUTED, THE ADMINISTRATION SHALL PUBLICLY
 DISCLOSE THE NAMES OF EACH SUCCESSFUL BIDDER AND THE MEGAWATTS TO BE
 DELIVERED BY THE DEVELOPMENT OF THE RENEWABLE ENERGY GENERATION
 PROJECT.
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      (G) ALL PROCEEDS FROM ALTERNATIVE COMPLIANCE FEES ACCRUED IN
 THE MARYLAND STRATEGIC ENERGY INVESTMENT FUND SHALL BE AVAILABLE
 EACH YEAR FOR EACH AUCTION.
(H)   A PROJECT AWARDED A GRANT UNDER THIS SECTION THAT INCLUDES
 AN ENERGY STORAGE DEVICE SHALL COUNT TOWARD THE PROCUREMENT
 SOLICITATION CAPACITY TARGETS ESTABLISHED UNDER § 7–1224 OF THE PUBLIC
 UTILITIES ARTICLE.
(I)ON OR BEFORE JULY 1, 2027, AND EACH JULY 1 THEREAFTER, THE
 ADMINISTRATION AND THE COMMISSION SHALL REPORT TO THE GENERAL
 ASSEMBLY, IN ACCORDANCE WITH § 2–1257 OF THIS ARTICLE, ON THE
 ADMINISTRATION OF EACH AUCTION, INCLUDING:
(1)    THE    AMOUNT     OF   MEGAWATTS       PROCURED      THROUGH      THE
 AUCTION;
(2)    THE COST PER MEGAWATT OF RENEWABLE ENERGY ALLOCATED
 IN THE AUCTION;
(3)THE NUMBER OF RENEWABLE ENERGY CREDITS CREATED AS A
 RESULT OF THE AUCTION; AND
(4)
  ANY OTHER INFORMATION THE  ADMINISTRATION AND THE
 COMMISSION CONSIDER RELEVANT.
Chapter 7 of the Acts of the 2025 Special Session
SECTION 2. AND BE IT FURTHER ENACTED, That:
(a)   (1)    The Public Service Commission shall study the effectiveness of an
 independent distribution operator.
(2)    On or before December 31, 2026, the Public Service Commission shall
 submit to the General Assembly, in accordance with § 2–1257 of the State Government
 Article, a report on the study required under paragraph (1) of this subsection.
(b)   (1)   The Department of Transportation shall study methods for reducing
 transmission–constrained areas through the use of existing rights–of–way.
(2)   On or before December 31, 2026, the Department of Transportation
 shall submit to the General Assembly, in accordance with § 2–1257 of the State
 Government Article, a report on the study required under paragraph (1) of this subsection.
  SENATE BILL 841  121
(c)   (1)    (i)    The Maryland Energy Administration shall obtain existing
 power flow analyses for electric system reliability in the State that are related to currently
 known electric generation facility retirements.
(ii)    If the Maryland Energy Administration is unable to obtain the
 existing power flow analyses under subparagraph (i) of this paragraph, then the
 Administration, with the support of the Public Service Commission, shall develop a power
 flow analysis for electric system reliability in the State that is related to currently known
 electric generation facility retirements.
(iii) On or before January 1, [2026] 2027, the Maryland Energy
 Administration shall submit to the Governor and, in accordance with § 2–1257 of the State
 Government Article, the General Assembly a report on the power flow analyses required
 under this paragraph.
(2)   (i)   On or before [December 31, 2025, and on or before] December 31,
 2026, the Maryland Energy Administration shall provide to the General Assembly, in
 accordance with § 2–1257 of the State Government Article, an update on the status of the
 National Renewable Energy Laboratory’s analysis on resource adequacy conducted at the
 request of the Administration.
(ii)    On receipt of the National Renewable Energy Laboratory’s final
 analysis on resource adequacy, the Maryland Energy Administration shall submit a final
 report on the analysis to the General Assembly, in accordance with § 2–1257 of the State
 Government Article.
Chapter 19 of the Acts of the 2025 Special Session
SECTION 2. AND BE IT FURTHER ENACTED, That:
(a)   (1)    The Public Service Commission shall study the effectiveness of an
 independent distribution operator.
(2)    On or before December 31, 2026, the Public Service Commission shall
 submit to the General Assembly, in accordance with § 2–1257 of the State Government
 Article, a report on the study required under paragraph (1) of this subsection.
(b)   (1)   The Department of Transportation shall study methods for reducing
 transmission–constrained areas through the use of existing rights–of–way.
(2)   On or before December 31, 2026, the Department of Transportation
 shall submit to the General Assembly, in accordance with § 2–1257 of the State
 Government Article, a report on the study required under paragraph (1) of this subsection.
(c)   (1)    (i)    The Maryland Energy Administration shall obtain existing
 power flow analyses for electric system reliability in the State that are related to currently
 known electric generation facility retirements.
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(ii)    If the Maryland Energy Administration is unable to obtain the
 existing power flow analyses under subparagraph (i) of this paragraph, then the
 Administration, with the support of the Public Service Commission, shall develop a power
 flow analysis for electric system reliability in the State that is related to currently known
 electric generation facility retirements.
(iii) On or before January 1, [2026] 2027, the Maryland Energy
 Administration shall submit to the Governor and, in accordance with § 2–1257 of the State
 Government Article, the General Assembly a report on the power flow analyses required
 under this paragraph.
(2)   (i)   On or before [December 31, 2025, and on or before] December 31,
 2026, the Maryland Energy Administration shall provide to the General Assembly, in
 accordance with § 2–1257 of the State Government Article, an update on the status of the
 National Renewable Energy Laboratory’s analysis on resource adequacy conducted at the
 request of the Administration.
(ii)    On receipt of the National Renewable Energy Laboratory’s final
 analysis on resource adequacy, the Maryland Energy Administration shall submit a final
 report on the analysis to the General Assembly, in accordance with § 2–1257 of the State
 Government Article.
SECTION 5. AND BE IT FURTHER ENACTED, That the Laws of Maryland read
 as follows:
Article – State Government
 9–2016.
(a)      (1)   In this section the following words have the meanings indicated.
(2)    “Eligible customer–generator” has the meaning stated in § 7–306 of the
 Public Utilities Article.
(3)   “Low to moderate income” means a household with an annual
 household income at or below 150% of the average median income for the State.
(4)   “Program” means the Customer–Sited Solar Program established in
 this section.
(b)      There is a Customer–Sited Solar Program in the Administration.
(e)   The Program may provide grants to an income–verified eligible
 customer–generator with a low to moderate income in an amount equal to $750 per kilowatt
 of nameplate capacity for a solar energy generating system, up to a maximum of $7,500 per
 system.
  SENATE BILL 841  123
(f)   A grant awarded under subsection (e) of this section shall be funded from [fees
 collected under § 7–705(b)(2)(i)2 of the Public Utilities Article and allocated in accordance
 with § 9–20B–05(g–1) of this title] THE MARYLAND STRATEGIC ENERGY INVESTMENT
 FUND ESTABLISHED UNDER § 9–20B–05 OF THIS TITLE.
SECTION 6. AND BE IT FURTHER ENACTED, That:
(a)    Notwithstanding any other provision of law, from the compliance fees paid
 into the Maryland Strategic Energy Investment Fund in accordance with § 7–705 of the
 Public Utilities Article:
(1)   $100,000,000 shall be used to provide grants for renewable energy
 generation and energy storage projects through the auction process established under §
 9–20E–02 of the State Government Article, as enacted by Section 4 of this Act;
(2)    $100,000,000 shall be used to provide grants to electric companies,
 including electric cooperatives and municipal electric utilities, to pay down the costs
 incurred by the electric companies for implementing and administering the programs and
 services under Title 7, Subtitle 2, Part II of the Public Utilities Article;
(3)     $38,000,000 shall be used to offset residential electric customer costs
 associated with the limited–income rate mechanism required under § 4–309 of the Public
 Utilities Article, as enacted by Section 4 of this Act;
(4)  $150,000 shall be used to provide funding for a comprehensive study of
 public school HVAC systems in Baltimore City;
(5)   $9,850,000 shall be used to provide funding for upgrades to public
 school HVAC systems in Baltimore City; and
(6)   $2,000,000 shall be used to provide additional funding for the Maryland
 Energy Administration’s Residential and Commercial Energy Storage Grant Program.
(b)   Notwithstanding any other provision of law, from the proceeds paid into the
 Maryland Strategic Energy Investment Fund in accordance with 2–1002(g) of the
 Environment Article, $9,000,000 shall be used for upgrades to public school HVAC systems
 in Baltimore City.
(c)   Notwithstanding any other provision of law, from the funds in the Maryland
 Strategic Energy Investment Fund:
(1)   $3,000,000 shall be used to provide additional funding for the
 Department of Natural Resources’ Power Plant Research Program to review renewable and
 clean energy projects; and
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(2)   $72,650,000 shall be transferred to the Dedicated Purpose Account
 established under § 7–310 of the State Finance and Procurement Article to provide
 additional funding for the Maryland Energy Administration’s Residential Energy Equity
 Program for heat pump installations and replacements for low– and moderate–income
 households.
(d)   (1)    Notwithstanding any other provision of law and subject to paragraph
 (2) of this subsection, on or before June 30, 2027, the Governor may transfer:
(i)    the funds described in subsection (a)(1) of this section to the
 Maryland Energy Administration to be awarded as grants under § 9–20E–02 of the State
 Government Article, as enacted by Section 4 of this Act;
(ii)   the funds described in subsection (a)(2) of this section to the
 Public Service Commission to be awarded as grants to electric companies, including electric
 cooperatives and municipal electric utilities, to pay down the costs incurred by the electric
 companies for implementing and administering the programs and services under Title 7,
 Subtitle 2, Part II of the Public Utilities Article;
(iii) the funds described in subsection (a)(3) of this section to the
 Public Service Commission to be awarded as grants to electric companies to be refunded or
 credited to residential electric customers to offset costs associated with the limited–income
 rate mechanism required under § 4–309 of the Public Utilities Article, as enacted by Section
 4 of this Act;
(iv) the funds described in subsection (a)(4) of this section to the
 Comptroller to be used to provide funding for a comprehensive study of public school HVAC
 systems in Baltimore City;
(v)   the funds described in subsections (a)(5) and (b) of this section to
 the Interagency Commission on School Construction to be used for upgrades to public school
 HVAC systems in Baltimore City;
(vi) the funds described in subsection (a)(6) of this section to the
 Maryland Energy Administration to be awarded as grants under the Residential and
 Commercial Energy Storage Grant Program;
(vii) the funds described in subsection (c)(1) of this section to the
 Department of Natural Resources to be used to review renewable and clean energy projects
 through the Power Plant Research Program; and
(viii) the funds described in subsection (c)(2) of this section to the
 Dedicated Purpose Account established under § 7–310 of the State Finance and
 Procurement Article for the Maryland Energy Administration to use to provide heat pump
 installations and replacements for low– and moderate–income households under the
 Residential Energy Equity Program.
  SENATE BILL 841  125
(2)   The Governor may not include in the transfers authorized under
 paragraph (1) of this subsection any funds in the Energy Assistance Account in the
 Maryland Strategic Energy Investment Fund.
SECTION 7. AND BE IT FURTHER ENACTED, That the requirements established
 under § 7–207(b)(3)(iv), as enacted under Section 4 of this Act, apply to an application for
 a certificate of public convenience and necessity submitted on or after July 1, 2026, and
 may not be construed to apply to a certificate of public convenience and necessity submitted
 before July 1, 2026.
SECTION 8. AND BE IT FURTHER ENACTED, That:
(a)    (1)    In this section the following words have the meanings indicated.
(2)    “Eligible customer–generator” has the meaning stated in § 7–306 of the
 Public Utilities Article.
(3)    “Net energy metering” has the meaning stated in § 7–306 of the Public
 Utilities Article.
(b)   (1)   The Public Service Commission shall conduct a proceeding exploring
 the development and implementation of a successor program to the net energy metering
 program under § 7–306 of the Public Utilities Article.
(2)   In conducting the proceeding, the Public Service Commission shall
 accept input from:
(i)    utility companies;
(ii)   owners and developers of net metered projects, including projects
 that are:
1.    residential behind–the–meter;
2.    commercial behind–the–meter; and
3.    front–of–the–meter;
(iii) renewable energy industry experts, including representatives
 from the solar energy industry;
(iv)   consumer advocates; and
(v)    other stakeholders.
SENATE BILL 841
(c)    On or before December 15, 2026, the Public Service Commission shall submit
 a report on the proceeding held under subsection (b) of this section to the Governor and, in
 accordance with § 2–1257 of the State Government Article, the General Assembly.
(d)   The report shall include:
(1)    recommendations for a successor program to the net energy metering
 program under § 7–306 of the Public Utilities Article that:
(i)  provides incentives for the development of distributed generation
 to eligible customer–generators under §§ 7–306 and 7–306.3 of the Public Utilities Article
 and community solar energy generating systems under § 7–306.2 of the Public Utilities
 Article;
(ii)   minimizes ratepayer costs in the short term and in the long term;
(iii) balances, on a statewide basis and across technologies and
 industry sectors participating in net energy metering, and while recognizing differences in
 system benefits between project types when designing tariffs in accordance with paragraph
 (4) of this subsection:
1.    A.      fair compensation for energy exports; and
B.    the benefits of an eligible customer–generator’s or
 facility’s reduced load on the electric transmission and electric distribution system,
 including benefits that may vary based on project location, siting, time to operation, or use
 of existing structures or developed property; against
2.    A.      the needs of the electric transmission and electric
 distribution system;
B.    ratepayer costs and benefits; and
C.    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; and
(iv) may establish different tariffs for the following market segments
 that take into account the characteristics of each market segment:
1.    residential eligible customer–generators;
2.    nonresidential eligible customer–generators;
3.    community solar energy generating systems under §
 7–306.2 of the Public Utilities Article;
  SENATE BILL 841  127
4.     aggregated net energy metered facilities under § 7–306.3
 of the Public Utilities Article; and
5.    any additional market segment or subset of a market
 segment identified by the Public Service Commission;
(2)   recommendations for any legislative changes necessary to implement
 the successor program; and
(3)    any administrative concerns with transitioning to the successor
 program on July 1, 2027, and whether those concerns may cause a delay in implementation.
SECTION 9. AND BE IT FURTHER ENACTED, That, on or before December 1,
 2026, the Public Service Commission shall provide notice 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, if the
 Commission determines that the timelines set forth in § 7–233(c) of the Public Utilities
 Article, as enacted by Section 4 of this Act, are insufficient for load forecasting.
SECTION 10. AND BE IT FURTHER ENACTED, That:
(a)   In this section, “Levelized Full System Cost of Electricity” means a formula
 that:
(1)   calculates the costs of serving the entire State electricity market using
 only one energy source plus energy storage; and
(2)   uses the following inputs:
(i)     capital costs of the generating facility;
(ii)    distribution system costs;
(iii)   maintenance and operating costs;
(iv)    the cost of capital;
(v)     capacity factors;
(vi)    ramping up and down times; and
(vii)   the annual electricity demand by hour in the target market.
(b)    The Public Service Commission shall conduct a full costs and benefits analysis
 of sources of electricity generation in the State.
SENATE BILL 841
(c)   The analysis shall:
(1)    identify the costs of electricity to ratepayers assuming that the State
 electricity market is served by the following generation mixes:
(i)     natural gas energy at its current capacity;
(ii)    nuclear energy at its current capacity;
(iii)   8,500 megawatts of offshore wind energy capacity;
(iv)    solar energy at its current capacity; and
(v)     energy storage at its current capacity;
(2)   include the additional costs of electricity generation necessary to offset
 reliability issues and the intermittency of offshore wind energy and solar energy;
(3)    use the Levelized Full System Cost of Electricity model and other
 methods the Public Service Commission considers appropriate to analyze the costs of
 meeting the State’s electricity needs from:
(i)     only natural gas energy and energy storage;
(ii)    only nuclear energy and energy storage;
(iii)   only offshore wind energy and energy storage; and
(iv)    only solar energy and energy storage;
(4)    identify the costs for natural gas energy, nuclear energy, offshore wind
 energy, and solar energy if energy storage is available to offset reliability and intermittency
 issues; and
(5)    include recommended policy changes to support the development of the
 energy sources with the lowest costs and greatest benefits to the ratepayers of the State.
(d)   On or before December 1, 2027, the Public Service Commission shall report its
 findings and recommendations 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.
SECTION 11. AND BE IT FURTHER ENACTED, That, on or before December 1,
 2026, the Senate Committee on Education, Energy, and the Environment and the House
 Environment and Transportation Committee may jointly request that the Strategic Energy
 Planning Office assess up to five policy scenarios and submit, on or before December 31,
 2026, a report of the results of the requested policy scenarios to the Senate Committee on
  SENATE BILL 841  129
 Education, Energy, and the Environment and the House Environment and Transportation
 Committee in accordance with § 2–1257 of the State Government Article.
SECTION 12. AND BE IT FURTHER ENACTED, That:
(a)    The Public Service Commission shall prepare recommendations for changes
 to the next following program cycle under Title 7, Subtitle 2, Part II of the Public Utilities
 Article.
(b)      The recommendations prepared under subsection (a) of this section shall
 address:
(1)   the goals established for programs and services under Title 7, Subtitle
 2, Part II of the Public Utilities Article, including the size and scope of the goals as applied
 to each electric company;
(2)    ways in which the programs and services required under Title 7,
 Subtitle 2, Part II of the Public Utilities Article should be restructured to further avoid
 electric system reliability risk and wholesale energy costs;
(3)     methods for selecting programs and services for inclusion under Title 7,
 Subtitle 2, Part II of the Public Utilities Article, including cost–effectiveness testing with
 exceptions to the testing to enable the inclusion of appropriate programs and services, as
 determined by the Public Service Commission; and
(4)   any other information the Public Service Commission considers
 appropriate.
(c)   On or before November 1, 2027, the Public Service Commission shall submit
 the recommendations required under this section 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 Environment and Transportation Committee.
SECTION 13. AND BE IT FURTHER ENACTED, That:
(a)   This section does not apply to the administration of programs and services
 under § 7–224 of the Public Utilities Article.
(b)    (1)  On or before July 1, 2026, the Public Service Commission shall issue a
 request for information on the use of a third–party, single–implementer program for the
 administration of the programs and services under Title 7, Subtitle 2, Part II of the Public
 Utilities Article.
(2)   The request for information shall seek:
(i)   determinations of what effect the use of a single, third–party
 administrator would have on costs;
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(ii)   identification of technical and logistical barriers to transitioning
 to a single, third–party administrator; and
(iii) an analysis of the advantages and disadvantages of a private,
 third–party administrator as opposed to a State administrator.
(3)    The request for information shall specify a completion date of July 1,
 2027.
(c)    (1)     As soon as practicable after receiving the information requested in
 subsection (b) of this section, the Public Service Commission shall:
(i)   issue a request for proposals for a third–party administrator for
 the programs and services under Title 7, Subtitle 2, Part II of the Public Utilities Article;
 or
(ii)  decline to issue a request for proposals if the Public Service
 Commission determines that the use of a third–party administrator would not be cost
 effective.
(2)   A request for proposals issued under paragraph (1)(i) of this subsection
 shall specify that responses to the request should minimize short–term and long–term costs
 for utility ratepayers.
(d)     (1)   Except as provided in paragraph (2) of this subsection, if the Public
 Service Commission issues a request for proposals under subsection (c) of this section, the
 Public Service Commission shall select, on or before June 1, 2028, and through the request
 for proposals process initiated under subsection (c) of this section, a third–party
 administrator for the administration of the programs and services under Title 7, Subtitle
 2, Part II of the Public Utilities Article.
(2)    The Public Service Commission may decline to select a
 third–party administrator if the Public Service Commission determines that the responses
 to the request for proposals process initiated under subsection (c) of this section are
 materially less favorable than as described in the responses to the request for information
 issued under subsection (b) of this section.
(e)   The Public Service Commission shall notify the General Assembly of a
 decision to decline to issue a request for proposals or select a third–party administrator
 within 5 days after making the decision.
SECTION 14. AND BE IT FURTHER ENACTED, That on completion of Public
 Service Commission Case No. 9618, the Public Service Commission shall conduct an
 additional proceeding that builds on the outcomes of Case No. 9618 and determines
 whether it is prudent to allow a public service company to use forecast test years, historic
 test years, or a hybrid model in a future rate base proceeding.
  SENATE BILL 841  131
SECTION 15. AND BE IT FURTHER ENACTED, That:
(a)   The Power Plant Research Program, in consultation with the Department of
 the Environment and the Maryland Energy Administration, shall conduct a study to
 identify ways to streamline the permitting process for energy development in the State.
(b)   In conducting the study under subsection (a) of this section, the Power Plant
 Research Program shall:
(1)   identify up to 50 priority energy sites suitable for new or expanded
 generating stations or energy storage devices, including:
(i)    brownfields;
(ii)   industrial sites surrounded by areas with low–population
 density;
(iii) sites with old or decommissioned generating units that may be
 repowered or repurposed, with special consideration given to sites with surplus
 interconnection capacity; and
(iv)   State–owned land.
(2)   identify current bottlenecks and barriers in the State that extend State
 and local permitting timelines; and
(3)   develop recommendations on what a State–level zoning or permitting
 structure should look like in order to promote fast–tracked development at the priority
 energy sites identified in item (1) of this subsection.
(c)    On or before December 31, 2026, the Power Plant Research Program shall
 report to the Governor and, in accordance with § 2–1257 of the State Government Article,
 the General Assembly on the results of the study.
SECTION 16. AND BE IT FURTHER ENACTED, That, on or before July 1, 2027,
 the Maryland Clean Energy Center shall:
(1)   establish an application process for loans made under the Green and
 Renewable Energy Efficiency for Nonprofits Loan Program in Title 10, Subtitle 8 of the
 Economic Development Article, as enacted by Section 4 of this Act;
(2)   set guidelines and considerations for application, selection, and
 repayment that include:
(i)    nonprofit organizations that own, rather than rent, their
 buildings;
SENATE BILL 841
(ii)    property size and kilowatt–hours of energy used;
(iii)   geographic diversity;
(iv)    ethnic and racial diversity;
(v)     economic diversity;
(vi)    nonprofit organization mission diversity;
(vii)   access to the borrower’s portion of the cost of the qualifying
 energy system; and
(viii) process and frequency of loan repayment; and
(3)   develop and implement an advertising campaign for the Green and
 Renewable Energy Efficiency for Nonprofits Loan Program.
SECTION 17. AND BE IT FURTHER ENACTED, That all employees who are
 transferred to the Department of Human Services as a result of this Act shall be transferred
 without diminution of their rights, benefits, employment, or retirement status.
SECTION 18. AND BE IT FURTHER ENACTED, That the publisher of the
 Annotated Code of Maryland, in consultation with and subject to the approval of the
 Department of Legislative Services, shall correct, with no further action required by the
 General Assembly, cross–references and terminology rendered incorrect by this Act. The
 publisher shall adequately describe any correction that is made in an editor’s note following
 the section affected.
SECTION 19. AND BE IT FURTHER ENACTED, That Section 5 of this Act shall
 terminate on the taking effect of the termination provision specified in Section 10 of
 Chapter 595 of the Acts of the General Assembly of 2024. If that termination provision
 takes effect, Section 5 of this Act, with no further action required by the General Assembly,
 shall be abrogated and of no further force and effect. This Act may not be interpreted to
 have any effect on that termination provision.
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND,
 That the Laws of Maryland read as follows:
Article – State Government
 9–20B–05.
(a)   There is a Maryland Strategic Energy Investment Fund.
  SENATE BILL 841  133
(b)     The purpose of the Fund is to implement the Strategic Energy Investment
 Program.
(c)   The Administration shall administer the Fund.
(e)   The Fund consists of:
(1)    all of the proceeds from the sale of allowances under § 2–1002(g) of the
 Environment Article;
(2)    money appropriated in the State budget to the Program;
(3)      repayments and prepayments of principal and interest on loans made
 from the Fund;
(4)    compliance fees paid under § 7–705 of the Public Utilities Article;
(5)    money received from any public or private source for the benefit of the
 Fund;
(6)    money transferred from the Public Service Commission under §
 7–207.2(d)(3) of the Public Utilities Article; and
(7)    money distributed under § 2–614.1 of the Tax – General Article.
(f)   The Administration shall use the Fund:
(13) notwithstanding subsection (g) of this section, to pay costs associated
 with the Air and Radiation Administration within the Department of the Environment;
 [and]
(14) TO AWARD BIDS FOR RENEWABLE ENERGY GENERATION
 PROJECTS UNDER § 9–20E–02 OF THIS TITLE; AND
[(14)] (15) to pay the expenses of the Program.
[(g–1) Proceeds received by the Fund from compliance fees under § 7–705(b)(2)(i)2 of
 the Public Utilities Article shall be allocated as follows:
(1)    beginning in fiscal year 2025, at least 20% of the proceeds shall be used
 to provide grants to support the installation of new solar energy generating systems under
 the Customer–Sited Solar Program;
(2)    up to 10% of the proceeds shall be credited to an administrative expense
 account for costs related to the administration of the Fund;
SENATE BILL 841
(3)    proceeds collected but unused from a previous year shall be used before
 proceeds allocated for the current year; and
(4)    the Administration shall reallocate to other authorized uses any
 proceeds that are not used within 3 fiscal years after collection.]
[(i)  (1)    Except as provided in paragraphs (2), (3), and (4) of this subsection,
 compliance fees paid under § 7–705(b) of the Public Utilities Article may be used only to
 make loans and grants to support the creation of new Tier 1 renewable energy sources in
 the State that are owned by or directly benefit:
(i)    low– to moderate–income communities located in a census tract
 with an average median income at or below 80% of the average median income for the State;
 or
(ii)   overburdened or underserved communities, as defined in § 1–701
 of the Environment Article.
(2)   Compliance fees paid under § 7–705(b)(2)(i)2 of the Public Utilities
 Article shall be accounted for separately within the Fund and may be used only to make
 loans and grants to support the creation of new solar energy sources in the State that are
 owned by or directly benefit:
(i)    low– to moderate–income communities located in a census tract
 with an average median income at or below 80% of the average median income for the State;
(ii)   overburdened or underserved communities, as defined in § 1–701
 of the Environment Article; or
(iii)   households with low to moderate income, as defined in § 9–2016
 of this title.
(3)     For fiscal year 2026 only, up to $100,000,000 of compliance fees paid
 under §§ 7–705(b) and 7–705(b)(2)(i)2 of the Public Utilities Article shall be accounted for
 separately within the Fund and may be used for solar development on State government
 property and local government clean energy projects.
(4)    (i)  Subject to subparagraphs (ii), (iii), and (iv) of this paragraph,
 compliance fees paid under § 7–705 of the Public Utilities Article may be used to provide
 grants to electric companies to be refunded or credited to each residential distribution
 customer based on the customer’s consumption of electricity supply that is subject to the
 renewable energy portfolio standard.
(ii)   The refunding or crediting of amounts to residential distribution
 customers shall be identified on the customer’s bill as a line item identified as a “legislative
 energy relief refund”.
  SENATE BILL 841  135
(iii)   An electric company awarded a grant under this paragraph:
1.    may not retain any of the grant funds to cover overhead
 expenses; and
2.    shall provide all of the grant funds to residential
 distribution customers.
(iv) The process under subparagraphs (i) and (ii) of this paragraph
 related to the refunding or crediting of amounts to residential distribution customers shall
 be directed and overseen by the Commission.
(i–1) (1)    (i)     In this subsection the following words have the meanings
 indicated.
(ii)  “Area median income” has the meaning stated in § 4–1801 of the
 Housing and Community Development Article.
(iii) “Low and moderate income” means having an annual household
 income that is at or below 120% of the area median income.
(2)    Compliance fees paid under § 7–705(b–1) of the Public Utilities Article
 shall be accounted for separately within the Fund and may be used only to make loans and
 grants to promote increased opportunities for the growth and development of small,
 minority, women–owned, and veteran–owned businesses in the State that install
 geothermal systems in the State.]
(I) COMPLIANCE FEES PAID INTO THE FUND UNDER § 7–705 OF THE
 PUBLIC UTILITIES ARTICLE MAY BE USED ONLY TO AWARD BIDS FOR RENEWABLE
 ENERGY GENERATION PROJECTS UNDER § 9–20E–01 OF THIS TITLE.
SUBTITLE 20E. ALTERNATIVE COMPLIANCE FEE AUCTIONS.
 9–20E–01.
(A)    IN THIS SUBTITLE THE FOLLOWING WORDS HAVE THE MEANINGS
 INDICATED.
(B)“ADMINISTRATION”  MEANS  THE       MARYLAND  ENERGY
 ADMINISTRATION.
      (C) “ALTERNATIVE COMPLIANCE FEE” MEANS A FEE PAID IN ACCORDANCE
 WITH § 7–705 OF THE PUBLIC UTILITIES ARTICLE TO THE MARYLAND STRATEGIC
 ENERGY INVESTMENT FUND ESTABLISHED UNDER § 9–20B–05 OF THIS TITLE.
SENATE BILL 841
(D)   “AUCTION” MEANS AN ALTERNATIVE COMPLIANCE FEE AUCTION.
(E)   “CAPACITY TARGET” MEANS A CALCULATION OF THE AMOUNT OF
 RENEWABLE ENERGY GENERATION NEEDED IN A GIVEN YEAR TO SATISFY THE
 RENEWABLE ENERGY PORTFOLIO STANDARD UNDER § 7–703 OF THE PUBLIC
 UTILITIES ARTICLE FOR A SPECIFIC YEAR, MINUS THE AMOUNT ALREADY
 PROCURED FROM OTHER SOURCES.
(F)   “COMMISSION” MEANS THE PUBLIC SERVICE COMMISSION.
(G)   “RENEWABLE ENERGY” MEANS ENERGY GENERATED FROM:
(1)   GEOTHERMAL ENERGY GENERATING SYSTEMS;
(2)   OFFSHORE WIND ENERGY GENERATING SYSTEMS; OR
(3)   SOLAR ENERGY GENERATING SYSTEMS.
 9–20E–02.
(A)   (1)
  BEGINNING JANUARY 1, 2027, THE ADMINISTRATION SHALL
 CONDUCT, IN CONSULTATION WITH THE COMMISSION, AN ANNUAL, COMPETITIVE,
 LOW–BID ALTERNATIVE COMPLIANCE FEE AUCTION TO AWARD CONTRACTS TO
 ELIGIBLE BIDDERS TO FUND PROJECTS FOR THE DEVELOPMENT OF RENEWABLE
 ENERGY GENERATION IN THE STATE USING REVENUE FROM ALTERNATIVE
 COMPLIANCE FEES.
(2) (I)  EACH YEAR THE ADMINISTRATION AND THE COMMISSION
 SHALL SET THE CAPACITY TARGET FOR THE AMOUNT OF RENEWABLE ENERGY
 GENERATION REQUIRED FOR THAT YEAR.
(II) IN DETERMINING THE CAPACITY TARGET FOR EACH
 AUCTION, THE ADMINISTRATION AND THE COMMISSION SHALL USE A
 TRANSPARENT METHODOLOGY, INCLUDING:
1.   RENEWABLE ENERGY CREDIT SHORTFALLS FROM THE
 PRIOR YEAR;
2.   ANTICIPATED GROWTH IN RENEWABLE ENERGY OVER
 TIME;
3.   PROJECTED    ALTERNATIVE   COMPLIANCE     FEE
 REVENUE;
  SENATE BILL 841  137
4.   MODELED EXPECTED ENERGY CLEARING PRICES;
 AND
5.   TRENDS     IN   IN–STATE   RENEWABLE    ENERGY
 GENERATION.
(3)   IN EACH AUCTION, THE ADMINISTRATION SHALL PROCURE
 PROJECTS FOR THE GENERATION OF RENEWABLE ENERGY IN A QUANTITY THAT
 MEETS OR EXCEEDS ANY RENEWABLE ENERGY CREDIT SHORTFALLS IN THE PRIOR
 YEAR.
(4)   THE ADMINISTRATION AND THE COMMISSION MAY SET:
(I)
  A MINIMUM LEVEL OF MEGAWATTS REQUIRED FROM EACH
 TYPE OF RENEWABLE ENERGY SOURCE IN THE AUCTION; OR
(II)
  SPECIFIC PROCUREMENT THRESHOLDS FOR ALL TYPES OF
 RENEWABLE ENERGY SOURCES COLLECTIVELY.
(B)(1) THE ADMINISTRATION, IN CONSULTATION WITH THE
 COMMISSION, SHALL DEVELOP AND CONDUCT THE AUCTIONS IN A MANNER THAT IS
 COST–EFFECTIVE AND MAINTAINS AND PROMOTES THE DEVELOPMENT OF
 RENEWABLE ENERGY IN THE STATE.
(2)   THE COMPETITIVE AUCTION PROCESS MAY REQUIRE THE
 ADMINISTRATION TO SOLICIT A SERIES OF BIDS FROM RENEWABLE ENERGY
 PROJECT DEVELOPERS FOR THE DEVELOPMENT OF RENEWABLE ENERGY
 GENERATION PROJECTS THAT ARE NEEDED TO MEET ELECTRICITY DEMAND IN A
 COST–EFFECTIVE MANNER.
      (C)    (1)   TO BE ELIGIBLE TO SUBMIT A BID UNDER THIS SECTION A PERSON
 MUST:
(I)    BE   A   RENEWABLE    ENERGY    GENERATION   PROJECT
 DEVELOPER; AND
(II)
  MEET THE MINIMUM CREDIT AND OTHER ELIGIBILITY
 REQUIREMENTS SET UNDER PARAGRAPH (2) OF THIS SUBSECTION.
(2) THE ADMINISTRATION, IN CONSULTATION WITH THE
 COMMISSION, SHALL SET ELIGIBILITY REQUIREMENTS FOR BIDDERS, INCLUDING
 REQUIRING EACH BIDDER TO:
SENATE BILL 841
(I)    PROVIDE PROOF OF FINANCIAL INTEGRITY;
(II)   POST A BOND OR OTHER SIMILAR INSTRUMENT;
(III) AGREE TO BE SUBJECT TO ALL APPLICABLE TAXES; AND
(IV)
  COMPLY   WITH    ANY   OTHER   REQUIREMENTS  THE
 ADMINISTRATION DETERMINES ARE IN THE PUBLIC INTEREST.
(D) (1)     ELIGIBLE BIDDERS SHALL SUBMIT COMPETITIVE BIDS BY
 SPECIFYING:
(I)
  THE ACTUAL AMOUNT OF MEGAWATTS TO BE GENERATED
 BY THE RENEWABLE ENERGY GENERATION PROJECT; AND
(II)   A PRICE PER MEGAWATT THAT WOULD BE REQUIRED FROM
 THE AUCTION.
(2)   THE ADMINISTRATION SHALL RANK BIDS FROM LOWEST TO
 HIGHEST COST PER MEGAWATT AND AWARD FUNDS DERIVED FROM ALTERNATIVE
 COMPLIANCE FEES TO THE LOWEST BID OR BIDS.
(3)THE ADMINISTRATION SHALL AWARD BIDS UNTIL THE CAPACITY
 TARGET SET UNDER SUBSECTION (A)(2) OF THIS SECTION IS REACHED.
(4)   THE BIDDER WHO SUBMITS THE LOWEST RESPONSIVE BID FOR
 DEVELOPING A RENEWABLE ENERGY GENERATION PROJECT SHALL BE AWARDED
 THE AMOUNT OF FUNDS TO BUILD THE RENEWABLE ENERGY GENERATION PROJECT.
(5)   THE ADMINISTRATION MAY REFUSE TO ACCEPT SOME OR ALL OF
 THE BIDS MADE IN A COMPETITIVE AUCTION IN ACCORDANCE WITH STANDARDS
 ADOPTED BY THE ADMINISTRATION.
(6)
  IF THE CAPACITY TARGET CAN BE MET AT A COST BELOW THE
 ALLOCATED FUNDING, THE ADMINISTRATION MAY:
(I)    CARRY FORWARD ANY FUNDING TO THE NEXT AUCTION; OR
(II)
  APPLY THE FUNDS FOR ANY ADDITIONAL MEGAWATTS OF
 RENEWABLE ENERGY GENERATION THAT HAVE BEEN OFFERED UNDER THE
 AUCTION.
  SENATE BILL 841  139
      (E)   (1)    THE ADMINISTRATION SHALL SET DELIVERY DEADLINES FOR
 EACH RENEWABLE ENERGY GENERATION PROJECT THAT IS AWARDED FUNDING
 FROM AN AUCTION.
(2)    THE DEADLINES SET IN PARAGRAPH (1) OF THIS SUBSECTION
 SHALL INCLUDE MILESTONES THAT REQUIRE THE DEVELOPER TO MEET CERTAIN
 DELIVERY GOALS DURING THE DEVELOPMENT OF A RENEWABLE ENERGY
 GENERATION PROJECT.
(3)    THE ADMINISTRATION MAY GRANT EXTENSIONS FOR DELIVERY
 GOALS THAT ARE DELAYED DUE TO INTERCONNECTION OR PERMITTING
 CHALLENGES OR DELAYS IF THE DEVELOPER PROVIDES DOCUMENTATION OF THE
 CHALLENGE OR DELAY.
(4)    THE ADMINISTRATION SHALL ESTABLISH A METHOD OF
 COLLECTION AGAINST ANY DEVELOPER AWARDED A CONTRACT UNDER THIS
 SECTION TO RECAPTURE ANY FUNDS RECEIVED AS A RESULT OF:
(I)    MISAPPROPRIATION, OVERPAYMENT, OR FRAUD; OR
(II)   FAILURE TO MEET MILESTONES OR DELIVERY DATES.
      (F) WITHIN 90 DAYS AFTER ALL CONTRACTS FOR RENEWABLE ENERGY
 GENERATION PROJECTS ARE EXECUTED, THE ADMINISTRATION SHALL PUBLICLY
 DISCLOSE THE NAMES OF EACH SUCCESSFUL BIDDER AND THE MEGAWATTS TO BE
 DELIVERED BY THE DEVELOPMENT OF THE RENEWABLE ENERGY GENERATION
 PROJECT.
      (G) ALL PROCEEDS FROM ALTERNATIVE COMPLIANCE FEES ACCRUED IN
 THE MARYLAND STRATEGIC ENERGY INVESTMENT FUND SHALL BE AVAILABLE
 EACH YEAR FOR EACH AUCTION.
      (H) ON OR BEFORE JULY 1, 2027, AND EACH JULY 1 THEREAFTER, THE
 ADMINISTRATION AND THE COMMISSION SHALL REPORT TO THE GENERAL
 ASSEMBLY, IN ACCORDANCE WITH § 2–1257 OF THIS ARTICLE, ON THE
 ADMINISTRATION OF EACH AUCTION, INCLUDING:
(1)    THE    AMOUNT   OF   MEGAWATTS   PROCURED   THROUGH    THE
 AUCTION;
(2)    THE COST PER MEGAWATT OF RENEWABLE ENERGY ALLOCATED
 IN THE AUCTION;
SENATE BILL 841
(3)
  THE NUMBER OF RENEWABLE ENERGY CREDITS CREATED AS A
 RESULT OF THE AUCTION; AND
(4)
  ANY OTHER INFORMATION THE  ADMINISTRATION AND THE
 COMMISSION CONSIDER RELEVANT.
      (I)  THE ADMINISTRATION, IN CONSULTATION WITH THE COMMISSION,
 SHALL ADOPT REGULATIONS TO CARRY OUT THIS SECTION.
SECTION 2. AND BE IT FURTHER ENACTED, That the Laws of Maryland read
 as follows:
Article – State Government
 9–2016.
(a)      (1)   In this section the following words have the meanings indicated.
(2)    “Eligible customer–generator” has the meaning stated in § 7–306 of the
 Public Utilities Article.
(3)   “Low to moderate income” means a household with an annual
 household income at or below 150% of the average median income for the State.
(4)   “Program” means the Customer–Sited Solar Program established in
 this section.
(b)      There is a Customer–Sited Solar Program in the Administration.
(e)   The Program may provide grants to an income–verified eligible
 customer–generator with a low to moderate income in an amount equal to $750 per kilowatt
 of nameplate capacity for a solar energy generating system, up to a maximum of $7,500 per
 system.
(f)   A grant awarded under subsection (e) of this section shall be funded from [fees
 collected under § 7–705(b)(2)(i)2 of the Public Utilities Article and allocated in accordance
 with § 9–20B–05(g–1) of this title] THE MARYLAND STRATEGIC ENERGY INVESTMENT
 FUND ESTABLISHED UNDER § 9–20B–05 OF THIS TITLE.
SECTION 3. AND BE IT FURTHER ENACTED, That the Laws of Maryland read
 as follows:
Article – State Government
 9–20B–05.
  SENATE BILL 841  141
(a)    There is a Maryland Strategic Energy Investment Fund.
[(g–1) Up to 10% of the proceeds received by the Fund from compliance fees under §
 7–705(b)(2)(i)2 of the Public Utilities Article shall be credited to an administrative expense
 account for costs related to the administration of the Fund.]
SECTION 4. AND BE IT FURTHER ENACTED, That Section 2 of this Act shall
 terminate on the taking effect of the termination provision specified in Section 10 of
 Chapter 595 of the Acts of the General Assembly of 2024. If that termination provision
 takes effect, Section 1 of this Act, with no further action required by the General Assembly,
 shall be abrogated and of no further force and effect. This Act may not be interpreted to
 have any effect on that termination provision.
SECTION 5. AND BE IT FURTHER ENACTED, That Section 3 of this Act shall take
 effect on the taking effect of the termination provision specified in Section 10 of Chapter
 595 of the Acts of the General Assembly of 2024.
SECTION 6. AND BE IT FURTHER ENACTED, That, subject to Section 5 of this
 Act, this Act shall take effect July 1, 2026.
SECTION 20. AND BE IT FURTHER ENACTED, That this Act shall take effect
 July 1, 2026.
     Approved:
     ________________________________________________________________________________
  Governor.
     ________________________________________________________________________________
  President of the Senate.
     ________________________________________________________________________________
  Speaker of the House of Delegates.

Transferring the electric universal service program to the Office of Home Energy Programs and requiring the Office to authorize benefits under the program for certain electric customers; establishing he Green and Renewable Energy Efficiency for Nonprofits Loan Program in the Maryland Clean Energy Center; reducing a certain alternative compliance payment rate applicable to certain covered buildings; altering certain procedures related to the permitting, inspection, and interconnection of certain residential solar energy systems; etc.

Sponsors

Sen. Brian Feldman (D) sponsors SB 841, and 9 members have co-sponsored it.

Committees

SB 841 went before 3 committees: Education, Energy, and the Environment, Rules and Executive Nominations and Environment and Transportation.

Education, Energy, and the Environment
Education, Energy, and the Environment
Referred to · Feb 6, 2026
Rules and Executive Nominations
Rules and Executive Nominations
Referred to · Apr 6, 2026 · 67 Bills
Environment and Transportation
Environment and Transportation
Referred to · Apr 9, 2026 · 149 Bills

History

SB 841 has taken 22 actions since Feb 6, 2026, the latest on Apr 13, 2026.

ChamberAction
Apr 13, 2026
House
Favorable with Amendments Report by Environment and Transportation
Apr 9, 2026
House
Rereferred to Environment and Transportation
Apr 6, 2026
Senate
Third Reading Passed (38-4)
Apr 6, 2026
House
Referred Rules and Executive Nominations
Apr 2, 2026
Senate
Favorable with Amendments Report by Education, Energy, and the Environment

Votes

SB 841 went to 9 roll calls in the Senate, the latest on Apr 6, 2026 at 38–4.

ChamberQuestion
Yea
Nay
Apr 6, 2026
Senate
Third Reading Passed
38
4
Apr 2, 2026
Senate
Floor Amendment 153123/1 (Senator Ready) Rejected
14
23
Apr 2, 2026
Senate
Floor Amendment 403821/1 (Senator Hershey) Rejected
19
22
Apr 2, 2026
Senate
Floor Amendment 673724/1 (Senator Ready) Rejected
15
22
Apr 2, 2026
Senate
Floor Amendment 873027/1 (Senator West) Rejected
14
29

Source: mgaleg.maryland.gov · legiscan.com