Maryland SB 560: Renewable Energy Portfolio Standard - Eligible Sources

Bill Text

EXPLANATION: CAPITALS INDICATE MATTER ADDED TO EXISTING LAW.
[Brackets] indicate matter deleted from existing law.
*sb0560*

SENATE BILL 560
M5, C5 0lr0890
SB 548/19 – FIN CF HB 438
By: Senators Hough, Bailey, Carozza, Carter, Eckardt, Edwards, Elfreth, Ellis,
Gallion, Guzzone, Hester, Kagan, Kelley, King, Kramer, Lam, Lee,
Patterson, Peters, Pinsky, Ready, Salling, Serafini, Simonaire, Smith,
Sydnor, Washington, West, Young, and Zucker
Introduced and read first time: January 31, 2020
Assigned to: Finance

A BILL ENTITLED

AN ACT concerning 1

Renewable Energy Portfolio Standard – Eligible Sources 2

FOR the purpose of altering the eligibility of certain sources of energy for the creation of 3
credits under the renewable energy portfolio standard; removing certain sources 4
from the definition of a “Tier 1 renewable source”; providing that existing obligations 5
or contract rights may not be impaired by this Act; providing for the application of 6
this Act; and generally relating to the renewable energy portfolio standard. 7

BY repealing and reenacting, without amendments, 8
Article – Public Utilities 9
Section 7–701(a) 10
Annotated Code of Maryland 11
(2010 Replacement Volume and 2019 Supplement) 12

BY repealing and reenacting, with amendments, 13
Article – Public Utilities 14
Section 7–701(r) and 7–704(a) 15
Annotated Code of Maryland 16
(2010 Replacement Volume and 2019 Supplement) 17

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 18
That the Laws of Maryland read as follows: 19

Article – Public Utilities 20

7–701. 21

(a) In this subtitle the following words have the meanings indicated. 22

2 SENATE BILL 560

(r) “Tier 1 renewable source” means one or more of the following types of energy 1
sources: 2

(1) solar energy, including energy from photovoltaic technologies and solar 3
water heating systems; 4

(2) wind; 5

(3) qualifying biomass; 6

(4) methane from the anaerobic decomposition of organic materials in a 7
landfill or wastewater treatment plant; 8

(5) geothermal, including energy generated through geothermal exchange 9
from or thermal energy avoided by, groundwater or a shallow ground source; 10

(6) ocean, including energy from waves, tides, currents, and thermal 11
differences; 12

(7) a fuel cell that produces electricity from a Tier 1 renewable source 13
under item (3) or (4) of this subsection; 14

(8) a small hydroelectric power plant of less than 30 megawatts in capacity 15
that is licensed or exempt from licensing by the Federal Energy Regulatory Commission; 16

(9) poultry litter–to–energy; AND 17

(10) [waste–to–energy; 18

(11) refuse–derived fuel; and 19

(12)] thermal energy from a thermal biomass system. 20

7–704. 21

(a) (1) Energy from a Tier 1 renewable source: 22

(i) is eligible for inclusion in meeting the renewable energy portfolio 23
standard regardless of when the generating system or facility was placed in service; and 24

(ii) may be applied to the percentage requirements of the standard 25
for either Tier 1 renewable sources or Tier 2 renewable sources. 26

(2) (i) Energy from a Tier 1 renewable source under § 7–701(r)(1), (5), 27
OR (9)[, (10), or (11)] of this subtitle is eligible for inclusion in meeting the renewable energy 28
portfolio standard only if the source is connected with the electric distribution grid serving 29

SENATE BILL 560 3

Maryland. 1

(ii) If the owner of a solar generating system in this State chooses to 2
sell solar renewable energy credits from that system, the owner must first offer the credits 3
for sale to an electricity supplier or electric company that shall apply them toward 4
compliance with the renewable energy portfolio standard under § 7–703 of this subtitle. 5

(3) Energy from a Tier 1 renewable source under § 7–701(r)(8) of this 6
subtitle is eligible for inclusion in meeting the renewable energy portfolio standard if it is 7
generated at a dam that existed as of January 1, 2004, even if a system or facility that is 8
capable of generating electricity did not exist on that date. 9

(4) Energy from a Tier 2 renewable source under § 7–701(s) of this subtitle 10
is eligible for inclusion in meeting the renewable energy portfolio standard through 2020 if 11
it is generated at a system or facility that existed and was operational as of January 1, 12
2004, even if the facility or system was not capable of generating electricity on that date. 13

SECTION 2. AND BE IT FURTHER ENACTED, That a presently existing obligation 14
or contract right may not be impaired in any way by this Act. 15

SECTION 3. AND BE IT FURTHER ENACTED, That this Act shall take effect 16
October 1, 2020, and shall be applicable to all renewable energy portfolio standard 17
compliance years beginning after December 31, 2020. 18