BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND,That the Laws of Maryland read as follows:

Article Economic Development

51501.

(a) There is a Small, Minority, and WomenOwned Businesses Account under the authority of the Department.

(b) (1) (i) The Account shall receive money as required under 91A27 of the State Government Article.

(ii) The Account may SHALLreceive money from the Strategic Energy Investment Fund AS REQUIREDunder 920B05 of the State Government Article.

(2) Money in the Account shall be invested and reinvested by the Treasurer and interest and earnings shall accrue to the Account.

(3) The Comptroller shall:

(i) account for the Account; and

(ii) on a properly approved transmittal prepared by the Department, issue a warrant to pay out money from the Account in the manner provided under this section.

(4) The Account is a special, nonlapsing fund that is not subject to 7302 of the State Finance and Procurement Article.

(5) Expenditures from the Account shall only be made on a properly approved transmittal prepared by the Department as provided under subsection (c) of this section.

(c) (1) In this subsection, eligible fund manager:

(I) means an entity that has significant financial or investment experience, under criteria developed by the Department ; AND

(II) INCLUDES AN ENTITY THAT THE DEPARTMENT DESIGNATES TO MANAGE FUNDS RECEIVED UNDER SUBSECTION(B)(1)(I) OF THIS SECTION.

(2) Subject to the provisions of paragraph (3) of this subsection, the Department shall make grants to eligible fund managers to provide investment capital and loans to small, minority, and womenowned businesses in the State.

(3) The EXCEPT FOR MONEY RECEIVED FROM THE STRATEGIC ENERGY INVESTMENT FUND, THEDepartment shall ensure that eligible fund managers allocate at least 50% of the funds from this Account to small, minority, and womenowned businesses in the jurisdictions and communities surrounding a video lottery facility.

(d) (1) Any money received from the Strategic Energy Investment Fund shall be used to benefit small, minority, and womenowned , AND VETERANOWNEDbusinesses in the clean energy industry in the State.

(2) THE DEPARTMENT SHALL MAKE GRANTS TO ELIGIBLE FUND MANAGERS TO PROVIDE INVESTMENT CAPITAL, INCLUDING DIRECT EQUITY INVESTMENTS AND SIMILAR INVESTMENTS AND LOANS TO SMALL, MINORITY, WOMENOWNED, AND VETERANOWNED BUSINESSES IN THE CLEAN ENERGY INDUSTRY IN THE STATE.

(G) (1) SUBJECT TO PARAGRAPHS(2) THROUGH(4) OF THIS SUBSECTION, AN ELIGIBLE FUND MANAGER MAY USE MONEY FROM A GRANT

RECEIVED UNDER SUBSECTION(D)(1) OF THIS SECTION TO PAY ORDINARY AND REASONABLE EXPENSES FOR ADMINISTRATIVE, ACTUARIAL, LEGAL, MARKETING, AND TECHNICAL SERVICES AND MANAGEMENT FEES.

(2) THE DEPARTMENTSHALL:

(I) MAINTAIN ALL MONEY RECEIVED FROM THE STRATEGIC ENERGY INVESTMENT FUND IN A SINGLE ACCOUNT; AND

(II) MAKE GRANT ALLOCATIONS TO AN ELIGIBLE FUND MANAGER AS THE MANAGER ADVISES THE DEPARTMENT THAT THE MANAGER HAS APPROVED AND PREPARED TO FUND AN INVESTMENT OR A LOAN.

(3) ANY ALLOCATION THAT THE DEPARTMENT MAKES TO AN ELIGIBLE FUND MANAGER FROM THE STRATEGIC ENERGY INVESTMENT FUND SHALLINCLUDE:

(I) THE AMOUNT OF THE INVESTMENT OR LOAN; AND

(II) UP TO AN ADDITIONAL20% 3% OF THE TOTAL INVESTMENT OR LOAN COMMITMENT AMOUNT AS A MANAGEMENT FEE FOR THE BENEFIT AND COMPENSATION OF THE ELIGIBLE FUND MANAGER.

(4) AN ELIGIBLE FUND MANAGER THAT RECEIVES AN ALLOCATION FROM THE STRATEGIC ENERGY INVESTMENT FUND SHALL RETAIN FOR THE MANAGERSBENEFIT:

(I) ALL MANAGEMENT FEES PAID BY THE DEPARTMENT; AND

(II) ALL INTEREST EARNED FROM A LOAN MADE BY THE ELIGIBLE FUND MANAGER UNDER THIS SUBSECTION.

(g) (H) The Legislative Auditor shall audit the utilization of the funds that are allocated to small, minority, and womenowned businesses by eligible fund managers under subsection (c)(3) of this section during an audit of the applicable State unit as provided in 21220 of the State Government Article.

(I) (1) ON OR BEFORE OCTOBER1 EACH YEAR, THE DEPARTMENT SHALL SUBMIT A REPORT ON THE STATUS OF MONEY RECEIVED FROM THE STRATEGIC ENERGY INVESTMENT FUND UNDER SUBSECTION(D) OF THIS SECTION TO THE SENATE FINANCE COMMITTEE AND THE HOUSE ECONOMIC MATTERS COMMITTEE, IN ACCORDANCE WITH 21246 OF THE STATE GOVERNMENT ARTICLE.

(2) WITH RESPECT TO THE PRECEDING FISCAL YEAR AND EACH RELEVANT PRIOR FISCAL YEAR, THE REPORT SHALLINCLUDE:

(I) THE AMOUNTS RECEIVED FROM THE FUND;

(II) THE AMOUNTS PLACED AS GRANTS WITH ELIGIBLE FUND MANAGERS; AND

(III) WITH RESPECT TO EACH ELIGIBLE FUNDMANAGER:

1 . THE IDENTITY OF THE MANAGER;

2 . THE MONEY PROVIDED TO THE MANAGER;

3 . THE INVESTMENTS MADE BY THE MANAGER;

4 . THE AMOUNTS RETAINED BY THE MANAGER AS EXPENSES AND MANAGEMENT FEES;

5 . THE SMALL, MINORITY, WOMENOWNED, AND VETERANOWNED BUSINESSES RECEIVING THE INVESTMENTS; AND

6 . THE STATUS OF THE INVESTMENTS LISTED UNDER ITEM5 OF THIS ITEM, ALONG WITH ANY RETURN MADE ON EACH INVESTMENT.

Article Labor and Employment

11708.1.

(A) THERE IS A CLEAN ENERGY WORKFORCE ACCOUNT.

(B) THE ACCOUNT SHALL BE FUNDED FROM THE STRATEGIC ENERGY INVESTMENT FUND IN ACCORDANCE WITH 920B05(F)(10) AND(I) 920B05(F)(10), (F2) , AND(F3) OF THE STATE GOVERNMENT ARTICLE.

(C) (1) THE ACCOUNT SHALL BE USED TO PROVIDE GRANTS TO SUPPORT A WORKFORCE DEVELOPMENT PROGRAM PROGRAMS THAT PROVIDESPROVIDE:

(I) PREAPPRENTICESHIP JOBS TRAINING IN ACCORDANCE WITH THIS SUBSECTION;

(II) YOUTH APPRENTICESHIP JOBS TRAINING; AND

(III) REGISTERED APPRENTICESHIP JOBS TRAINING.

(2) THE PROGRAM A PREAPPRENTICESHIP JOBS TRAINING PROGRAMMUST:

(I) BE DESIGNED TO PREPARE INDIVIDUALS TO ENTER AND SUCCEED IN AN APPRENTICESHIP PROGRAM REGISTERED BY THE MARYLAND APPRENTICESHIP AND TRAINING COUNCIL; AND

(II) INCLUDE:

1 . TRAINING AND CURRICULUM BASED ON NATIONAL BEST PRACTICES THAT PREPARES PREPARE INDIVIDUALS WITH THE SKILLS AND COMPETENCIES TO ENTER ONE OR MORE STATEREGISTERED OR U.S. DEPARTMENT OF LABORREGISTERED APPRENTICESHIP PROGRAMS THAT PREPARE WORKERS FOR CAREERS IN THE CLEAN ENERGY INDUSTRY;

2 . A DOCUMENTED STRATEGY FOR INCREASING APPRENTICESHIP OPPORTUNITIES FOR UNEMPLOYED AND UNDEREMPLOYED INDIVIDUALS,INCLUDING:

A. RECRUITMENT STRATEGIES TO BRING THESE INDIVIDUALS INTO THE PREAPPRENTICESHIP JOBS TRAINING PROGRAM;

B. EDUCATIONAL AND PREVOCATIONAL SERVICES TO PREPARE PROGRAM PARTICIPANTS TO MEET THE ENTRY REQUIREMENTS OF ONE OR MORE REGISTERED APPRENTICESHIP PROGRAMS;

C. ACCESS TO APPROPRIATE SUPPORT SERVICES TO ENABLE PROGRAM PARTICIPANTS TO MAINTAIN PARTICIPATION IN THE PROGRAM; AND

D. MECHANISMS TO ASSIST PROGRAM PARTICIPANTS IN IDENTIFYING AND APPLYING TO REGISTERED APPRENTICESHIP PROGRAMS; AND

3 . RIGOROUS PERFORMANCE AND EVALUATION METHODS TO ENSURE PROGRAM EFFECTIVENESS AND IMPROVEMENT; AND

(III) HAVE A DOCUMENTED PARTNERSHIP WITH AT LEAST ONE REGISTERED APPRENTICESHIP PROGRAM DESCRIBED IN ITEM(II)2 OF THIS PARAGRAPH.

(3) ELIGIBLE CLEAN ENERGY INDUSTRY JOBS FOR A PREAPPRENTICESHIP JOBS TRAINING PROGRAM INCLUDE POSITIONSIN:

(I) RENEWABLE ENERGY;

(II) ENERGY EFFICIENCY;

(III) ENERGY STORAGE;

(IV) RESOURCE CONSERVATION; AND

(V) ADVANCED TRANSPORTATION.

(4) (I) THIS PARAGRAPH APPLIES TO YOUTH APPRENTICESHIP JOBS TRAINING PROGRAMS AND REGISTERED APPRENTICESHIP JOBS TRAINING PROGRAMS SUPPORTED BY THE ACCOUNT UNDER THIS SUBSECTION.

(II) AN APPRENTICESHIP SPONSOR SHALL RECEIVE AS A GRANT FROM THEACCOUNT:

1 . UP TO$150,000 FOR A PROGRAM PROPOSAL AND PLANNING EXPENSES; AND

2. $3,000 FOR EACH SUCCESSFULLY COMPLETED APPRENTICESHIP.

(III) THE YOUTH APPRENTICESHIP JOBS TRAINING PROGRAMS AND THE REGISTERED APPRENTICESHIP JOBS TRAINING PROGRAMS MUST PREPARE WORKERS FOR CAREERS IN THE SOLAR AND WIND SECTORS OF THE CLEAN ENERGY INDUSTRY.

(D) A GRANT FROM THE ACCOUNT MAY BE MADE ONLY TO A PROGRAM THAT AGREES TO INITIATE A PROJECT LABOR AGREEMENT.

(D) (1) (I) IN THIS SUBSECTION THE FOLLOWING WORDS HAVE THE MEANINGS INDICATED.

(II) AMERICAN MANUFACTURED GOODS MEANS GOODS THATARE:

1 . MANUFACTURED IN THE UNITED STATES; OR

2 . ASSEMBLED IN THE UNITED STATES.

(III) ASSEMBLED IN THE UNITED STATES MEANS THAT THE FINAL PRODUCTION TAKES PLACE AT A FACILITY WITHIN THE UNITED STATES, REGARDLESS OF THE ORIGIN OF THE COMPONENTS OR SUBCOMPONENTS.

(IV) MANUFACTURED IN THE UNITED STATESMEANS:

1 . THAT ALL MANUFACTURING PROCESSES TAKE PLACE WITHIN THE UNITED STATES; AND

2 . THAT ALL COMPONENT PARTS AND THE MANUFACTURING PROCESSES OF THE COMPONENT PARTS ORIGINATE FROM WITHIN THE UNITED STATES, REGARDLESS OF THE ORIGIN OF THE SUBCOMPONENTS.

(2) A GRANT FROM THE ACCOUNT MAY BE MADE ONLY TO A PROGRAM THAT AGREESTO:

(I) USE OR SUPPLY AMERICAN MANUFACTURED GOODS; AND

(II) INITIATE A PROJECT LABOR AGREEMENT.

(3) PARAGRAPH(2)(I) OF THIS SUBSECTION DOES NOT APPLYIF:

(I) THE PRICE OF THE AMERICAN MANUFACTURED GOODS EXCEEDS THE PRICE OF A SIMILAR MANUFACTURED GOOD THAT IS NOT MANUFACTURED IN THE UNITED STATES BY AN UNREASONABLE AMOUNT MORE THAN25%;

(II) THE ITEM OR A SIMILAR ITEM IS NOT MANUFACTURED OR AVAILABLE FOR PURCHASE IN THE UNITED STATES IN REASONABLY AVAILABLE QUANTITIES;

(III) THE QUALITY OF THE ITEM OR A SIMILAR ITEM MANUFACTURED IN THE UNITED STATES IS SUBSTANTIALLY LESS THAN THE QUALITY OF A COMPARABLY PRICED, SIMILAR, AND AVAILABLE ITEM THAT IS NOT MANUFACTURED IN THE UNITED STATES; OR

(IV) THE PROCUREMENT OF A MANUFACTURED GOOD WOULD BE INCONSISTENT WITH THE PUBLIC INTEREST.

(4) THE BOARD OF PUBLIC WORKS SHALL ADOPT REGULATIONS TO DEFINE THE FOLLOWING TERMS FOR THE PURPOSES OF THISSUBSECTION:

(I) REASONABLY AVAILABLE; AND

(II) UNREASONABLE AMOUNT; AND

(III) SUBSTANTIALLY LESS.

(5) IF A COURT OR A FEDERAL OR STATE AGENCY DETERMINES THAT A PROGRAM RECEIVING MONEY FROM THE ACCOUNT HAS MISREPRESENTED THAT GOODS USED IN A PROGRAM TO WHICH PARAGRAPH(2)(I) APPLIES WERE MANUFACTURED OR ASSEMBLED IN THE UNITED STATES, THAT PROGRAM SHALL BE INELIGIBLE TO RECEIVE A GRANT FROM THE ACCOUNT FOR5 YEARS FOLLOWING THE DATE THAT THE COURT OR FEDERAL OR STATE AGENCY MAKES THE DETERMINATION.

(E) A PROGRAM THAT RECEIVES A GRANT FROM THE ACCOUNT SHALL MEET THE REQUIREMENTS OF THE STATE PREVAILING WAGE LAW UNDER TITLE17 , SUBTITLE2 OF THE STATE FINANCE AND PROCUREMENT ARTICLE.

11709.

(a) On or before December 31 of each year, the Department shall report to the Governor and, in accordance with 21246 of the State Government Article, to the Senate Finance Committee and the House Economic Matters Committee on the Maryland EARNProgram.

(b) The report required under subsection (a) of this section shall include:

(1) an identification of training needs statewide, including industries in urgent need of qualified workers;

(2) information on measures being used to track the success and accountability of the Maryland EARNProgram, including use of the StateStat accountability process under 31003(b) of the State Finance and Procurement Article;

(3) (i) a description of each strategic industry partnership receiving grant funding and the status of the partnership; and

(ii) the jurisdiction of the State in which each strategic industry partnership is located;

(4) the number of individuals:

(i) by sex, race, national origin, income, county of residence, and educational attainment, participating in each component of the Maryland EARNProgram; and

(ii) participating in the Maryland EARNProgram who, as a result of the Program, have obtained:

1. a credential or an identifiable skill;

2. a new employment position;

3. a title promotion; or

4. a wage promotion; and

(5) an assessment of whether and to what extent the approved strategic industry partnerships utilized existing data concerning:

(i) training needs in the State identified in previous studies; and

(ii) applicable skills needs identified in existing workforce studies, plans, or research ; AND

(6) INFORMATION ON THE SUCCESS OF FUNDING WORKFORCE DEVELOPMENT PROGRAMS UNDER 11708.1 OF THIS SUBTITLE.

(C) THE INFORMATION REPORTED UNDER SUBSECTION(B)(6) OF THIS SECTION SHALL CONTAIN SPECIFIC INFORMATION CONCERNING THE ENTITIES PROVIDING PREAPPRENTICESHIP, YOUTH APPRENTICESHIP, AND REGISTERED APPRENTICESHIP JOB TRAINING PROGRAMS FROM THE CLEAN ENERGY WORKFORCE ACCOUNT,INCLUDING:

(1) THE NAME AND LOCATION OF EACH PROGRAM;

(2) THE POPULATIONS TARGETED BY EACH PROGRAM;

(3) THE TRAINING AND CURRICULUM PROVIDED;

(4) PROGRAM ENROLLMENT AND GRADUATION RATES; AND

(5) THE NUMBER AND TYPES OF PLACEMENTS ACHIEVED BY TRAINEES WHO COMPLETE EACH PROGRAM.

Article Public Utilities

7701.

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

(h) Offshore wind renewable energy credit or ORECmeans a renewable energy credit equal to the generation attributes of 1 megawatthour of electricity that is derived from offshore wind energy.

(k) Qualified offshore wind project means a wind turbine electricity generation facility, including the associated transmissionrelated interconnection facilities and equipment, that:

(1) is located on the outer continental shelf of the Atlantic Ocean in an area that:

(i) the United States Department of the Interior designates for leasing after coordination and consultation with the State in accordance with 388(a) of the Energy Policy Act of 2005; and

(ii) is between 10 and 30 miles off the coast of the State;

(2) interconnects to the PJMInterconnection grid at a point located on the Delmarva Peninsula; and

(3) the Commission approves under 7704.1 of this subtitle.

(n) Renewable energy credit or credit means a credit equal to the generation attributes of 1 megawatthour of electricity that is derived from a Tier 1 renewable source or a Tier 2 renewable source that is located:

(1) in the PJMregion;

(2) outside the area described in item (1) of this subsection but in a control area that is adjacent to the PJMregion, if the electricity is delivered into the PJMregion; or

(3) on the outer continental shelf of the Atlantic Ocean in an area that:

(i) the United States Department of the Interior designates for leasing after coordination and consultation with the State in accordance with 388(a) of the Energy Policy Act of 2005; and

(ii) is between 10 and 30 80 miles off the coast of the State.

(P1) ROUND1 OFFSHORE WIND PROJECT MEANS A QUALIFIED OFFSHORE WIND PROJECTTHAT:

(1) IS BETWEEN10 AND30 MILES OFF THE COAST OF THE STATE; AND

(2) THE COMMISSION APPROVED UNDER 7704.1 OF THIS SUBTITLE BEFORE JULY1, 2017.

(P2) ROUND2 OFFSHORE WIND PROJECT MEANS A QUALIFIED OFFSHORE WIND PROJECTTHAT:

(1) IS NOT LESS THAN10 MILES OFF THE COAST OF THE STATE; AND

(2) THE COMMISSION APPROVES UNDER 7704.1 OF THIS SUBTITLE ON OR AFTER JULY1, 2017.

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

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

(2) wind;

(3) qualifying biomass;

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

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

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

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

(8) a small hydroelectric power plant of less than 30 60 megawatts in capacity that is licensed or exempt from licensing by the Federal Energy Regulatory Commission;

(9) poultry littertoenergy;

(10) wastetoenergy;

(11) refusederived fuel; and

(12) thermal energy from a thermal biomass system.

(s) Tier 2 renewable source means hydroelectric power other than pump storage generation.

7702.

(a) It is the intent of the General Assembly to:

(1) recognize the economic, environmental, fuel diversity, and security benefits of renewable energy resources;

(2) REDUCE GREENHOUSE GAS EMISSIONS AND ELIMINATE CARBONFUELED GENERATION FROM THE STATES ELECTRIC GRID BY USING THESE RESOURCES;

(3) establish a market for electricity from these resources in Maryland; and

(3) (4) lower the cost to consumers of electricity produced from these resources.

(b) The General Assembly finds that:

(1) the benefits of electricity from renewable energy resources, including longterm decreased emissions, a healthier environment, increased energy security, and decreased reliance on and vulnerability from imported energy sources, accrue to the public at large; and

(2) electricity suppliers and consumers share an obligation to develop a minimum level of these resources in the electricity supply portfolio of the State ; AND

(3) THE STATE NEEDS TO INCREASE ITS RELIANCE ON RENEWABLE ENERGY IN ORDERTO:

(I) REDUCE GREENHOUSE GAS EMISSIONS AND MEET THE STATES GREENHOUSE GAS EMISSIONS REDUCTION GOALS UNDER 21205 OF THE ENVIRONMENT ARTICLE; AND

(II) PROVIDE OPPORTUNITIES FOR SMALL, MINORITY, WOMENOWNED, AND VETERANOWNED BUSINESSES TO PARTICIPATE IN AND DEVELOP A HIGHLY SKILLED WORKFORCE FOR CLEAN ENERGY INDUSTRIES IN THE STATE.

7703.

(a) (1) (i) The Commission shall implement a renewable energy portfolio standard that, except as provided under paragraphs (2) and (3) of this subsection, applies to all retail electricity sales in the State by electricity suppliers.

(ii) If the standard becomes applicable to electricity sold to a customer after the start of a calendar year, the standard does not apply to electricity sold to the customer during that portion of the year before the standard became applicable.

(2) A renewable energy portfolio standard may not apply to electricity sales at retail by any electricity supplier:

(i) in excess of 300,000,000 kilowatthours of industrial process load to a single customer in a year;

(ii) to residential customers in a region of the State in which electricity prices for residential customers are subject to a freeze or cap contained in a settlement agreement entered into under 7505 of this title until the freeze or cap has expired; or

(iii) to a customer served by an electric cooperative under an electricity supplier purchase agreement that existed on October 1, 2004, until the expiration of the agreement, as the agreement may be renewed or amended.

(3) The portion of a renewable energy portfolio standard that represents offshore wind energy may not apply to electricity sales at retail by any electricity supplier in excess of:

(i) 75,000,000 kilowatthours of industrial process load to a single customer in a year; and

(ii) 3,000 kilowatthours of electricity in a month to a customer who is an owner of agricultural land and files an Internal Revenue Service form 1040, schedule F.

(b) The EXCEPT AS PROVIDED IN SUBSECTION(E) OF THIS SECTION, THErenewable energy portfolio standard shall be as follows:

(1) in 2006, 1% from Tier 1 renewable sources and 2.5% from Tier 2 renewable sources;

(2) in 2007, 1% from Tier 1 renewable sources and 2.5% from Tier 2 renewable sources;

(3) in 2008, 2.005% from Tier 1 renewable sources, including at least 0.005% derived from solar energy, and 2.5% from Tier 2 renewable sources;

(4) in 2009, 2.01% from Tier 1 renewable sources, including at least 0.01% derived from solar energy, and 2.5% from Tier 2 renewable sources;

(5) in 2010, 3.025% from Tier 1 renewable sources, including at least 0.025% derived from solar energy, and 2.5% from Tier 2 renewable sources;

(6) in 2011, 5.0% from Tier 1 renewable sources, including at least 0.05% derived from solar energy, and 2.5% from Tier 2 renewable sources;

(7) in 2012, 6.5% from Tier 1 renewable sources, including at least 0.1% derived from solar energy, and 2.5% from Tier 2 renewable sources;

(8) in 2013, 8.2% from Tier 1 renewable sources, including at least 0.25% derived from solar energy, and 2.5% from Tier 2 renewable sources;

(9) in 2014, 10.3% from Tier 1 renewable sources, including at least 0.35% derived from solar energy, and 2.5% from Tier 2 renewable sources;

(10) in 2015, 10.5% from Tier 1 renewable sources, including at least 0.5% derived from solar energy, and 2.5% from Tier 2 renewable sources;

(11) in 2016, 12.7% from Tier 1 renewable sources, including at least 0.7% derived from solar energy, and 2.5% from Tier 2 renewable sources;

(12) in 2017:

(i) 13.1% from Tier 1 renewable sources, including:

1. at least 1.15% derived from solar energy; and

2. an amount set by the Commission under 7704.2(a) of this subtitle, not to exceed 2.5%, derived from offshore wind energy; and

(ii) 2.5% from Tier 2 renewable sources;

(13) in 2018:

(i) 15.8% from Tier 1 renewable sources, including:

1. at least 1.5% derived from solar energy; and

2. an amount set by the Commission under 7704.2(a) of this subtitle, not to exceed 2.5%, derived from offshore wind energy; and

(ii) 2.5% from Tier 2 renewable sources;

(14) in 2019,:

(I) 20.4% 20.7% from Tier 1 renewable sources, including:

(i) 1. at least 1.95% 5.5% derived from solar energy; and

(ii) 2. an amount set by the Commission under 7704.2(a) of this subtitle, not to exceed 2.5%, derived from offshore wind energy; and

(II) 2.5% FROM TIER2 RENEWABLE SOURCES;

(15) in 2020 and later,:

(I) 25% 28% from Tier 1 renewable sources, including:

(i) 1. at least 2.5% 6% derived from solar energy; and

(ii) 2. an amount set by the Commission under 7704.2(a) of this subtitle, not to exceed 2.5%, derived from offshore wind energy ; AND

(II) 2.5% FROM TIER2 RENEWABLE SOURCES;

(16) IN2021, 30.8% FROM TIER1 RENEWABLE SOURCES,INCLUDING:

(I) AT LEAST7.5% DERIVED FROM SOLAR ENERGY; AND

(II) AN AMOUNT SET BY THE COMMISSION UNDER 7704.2(A) OF THIS SUBTITLE DERIVED FROM OFFSHORE WIND ENERGY;

(17) IN2022, 33.1% FROM TIER1 RENEWABLE SOURCES,INCLUDING:

(I) AT LEAST8.5% DERIVED FROM SOLAR ENERGY; AND

(II) AN AMOUNT SET BY THE COMMISSION UNDER 7704.2(A) OF THIS SUBTITLE DERIVED FROM OFFSHORE WIND ENERGY;

(18) IN2023, 35.4% FROM TIER1 RENEWABLE SOURCES,INCLUDING:

(I) AT LEAST9.5% DERIVED FROM SOLAR ENERGY; AND

(II) AN AMOUNT SET BY THE COMMISSION UNDER 7704.2(A) OF THIS SUBTITLE DERIVED FROM OFFSHORE WIND ENERGY;

(19) IN2024, 37.7% FROM TIER1 RENEWABLE SOURCES,INCLUDING:

(I) AT LEAST10.5% DERIVED FROM SOLAR ENERGY; AND

(II) AN AMOUNT SET BY THE COMMISSION UNDER 7704.2(A) OF THIS SUBTITLE DERIVED FROM OFFSHORE WIND ENERGY;

(20) IN2025, 40% FROM TIER1 RENEWABLE SOURCES,INCLUDING:

(I) AT LEAST11.5% DERIVED FROM SOLAR ENERGY; AND

(II) AN AMOUNT SET BY THE COMMISSION UNDER 7704.2(A) OF THIS SUBTITLE, NOT TO EXCEED10% , DERIVED FROM OFFSHORE WIND ENERGY;

(21) IN2026, 42.5% FROM TIER1 RENEWABLE SOURCES,INCLUDING:

(I) AT LEAST12.5% DERIVED FROM SOLAR ENERGY; AND

(II) AN AMOUNT SET BY THE COMMISSION UNDER 7704.2(A) OF THIS SUBTITLE DERIVED FROM OFFSHORE WIND ENERGY, INCLUDING AT LEAST400 MEGAWATTS OF ROUND2 OFFSHORE WIND PROJECTS;

(22) IN2027, 45.5% FROM TIER1 RENEWABLE SOURCES,INCLUDING:

(I) AT LEAST13.5% DERIVED FROM SOLAR ENERGY; AND

(II) AN AMOUNT SET BY THE COMMISSION UNDER 7704.2(A) OF THIS SUBTITLE DERIVED FROM OFFSHORE WIND ENERGY, INCLUDING AT LEAST400 MEGAWATTS OF ROUND2 OFFSHORE WIND PROJECTS;

(23) IN2028, 47.5% FROM TIER1 RENEWABLE SOURCES,INCLUDING:

(I) AT LEAST14.5% DERIVED FROM SOLAR ENERGY; AND

(II) AN AMOUNT SET BY THE COMMISSION UNDER 7704.2(A) OF THIS SUBTITLE DERIVED FROM OFFSHORE WIND ENERGY, INCLUDING AT LEAST800 MEGAWATTS OF ROUND2 OFFSHORE WIND PROJECTS;

(24) IN2029, 49.5% FROM TIER1 RENEWABLE SOURCES,INCLUDING:

(I) AT LEAST14.5% DERIVED FROM SOLAR ENERGY; AND

(II) AN AMOUNT SET BY THE COMMISSION UNDER 7704.2(A) OF THIS SUBTITLE DERIVED FROM OFFSHORE WIND ENERGY, INCLUDING AT LEAST800 MEGAWATTS OF ROUND2 OFFSHORE WIND PROJECTS; AND

(25) IN2030 AND LATER,50% FROM TIER1 RENEWABLE SOURCES,INCLUDING:

(I) AT LEAST14.5% DERIVED FROM SOLAR ENERGY; AND

(II) AN AMOUNT SET BY THE COMMISSION UNDER 7704.2(A) OF THIS SUBTITLE DERIVED FROM OFFSHORE WIND ENERGY, INCLUDING AT LEAST1,200 MEGAWATTS OF ROUND2 OFFSHORE WIND PROJECTS.

(c) Before calculating the number of credits required to meet the percentages established under subsection (b) of this section, an electricity supplier shall exclude from its total retail electricity sales all retail electricity sales described in subsection (a)(2) and (3) of this section.

(d) Subject to subsections (a) and (c) of this section and in accordance with 7704.2 of this subtitle, an electricity supplier shall meet the renewable energy portfolio standard by accumulating the equivalent amount of renewable energy credits that equal the percentages required under this section.

(E) THE REQUIRED PERCENTAGE OF AN ELECTRIC COOPERATIVES RENEWABLE ENERGY PORTFOLIO STANDARD DERIVED FROM SOLAR ENERGY SHALLBE:

(1) 2.5% FROM IN2020 THROUGH2029 ; AND

(2) 5.0% IN2030 AND LATER.

7704.

(a) (4) Energy from a Tier 2 renewable source under 7701(s) of this subtitle is eligible for inclusion in meeting the renewable energy portfolio standard through 2018 2020 if it is generated at a system or facility that existed and was operational as of January 1, 2004, even if the facility or system was not capable of generating electricity on that date.

7704.1.

(a) (1) THE GENERAL ASSEMBLY FINDS AND DECLARESTHAT:

(I) THE DEVELOPMENT OF OFFSHORE WIND ENERGY IS IMPORTANT TO THE ECONOMIC WELLBEING OF THE STATE AND THE NATION; AND

(II) IT IS IN THE PUBLIC INTEREST OF THE STATE TO FACILITATE THE CONSTRUCTION OF AT LEAST1,200 MEGAWATTS OF ROUND2 OFFSHORE WIND PROJECTS IN ORDERTO:

1 . POSITION THE STATE TO TAKE ADVANTAGE OF THE ECONOMIC DEVELOPMENT BENEFITS OF THE EMERGING OFFSHORE WIND INDUSTRY;

2 . PROMOTE THE DEVELOPMENT OF RENEWABLE ENERGY SOURCES THAT INCREASE THE NATIONS INDEPENDENCE FROM FOREIGN SOURCES OF FOSSIL FUELS;

3 . REDUCE THE ADVERSE ENVIRONMENTAL AND HEALTH IMPACTS OF TRADITIONAL FOSSIL FUEL ENERGY SOURCES; AND

4 . PROVIDE A LONGTERM HEDGE AGAINST VOLATILE PRICES OF FOSSIL FUELS.

(2) After the effective date of Commission regulations implementing this section and 7704.2 of this subtitle , AND BEFORE JUNE30, 2017, a person may submit an application to the Commission for approval of a proposed ROUND1 offshore wind project.

(2) (3) (i) On receipt of the application for approval of a qualified ROUND1 offshore wind project, the Commission shall:

1. open an application period when other interested persons may submit applications for approval of qualified ROUND1 offshore wind projects; and

2. provide notice that the Commission is accepting applications for approval of qualified ROUND1 offshore wind projects.

(ii) The Commission shall set the closing date for the application period to be no sooner than 90 days after the notice provided under subparagraph (i) of this paragraph.

(4) THE COMMISSION SHALL PROVIDE ADDITIONAL APPLICATION PERIODS BEGINNING,RESPECTIVELY:

(I) JANUARY1, 2020 , FOR CONSIDERATION OF ROUND2 OFFSHORE WIND PROJECTS TO BEGIN CREATING ORECS NOT LATER THAN2026;

(II) JANUARY1, 2021 , FOR CONSIDERATION OF ROUND2 OFFSHORE WIND PROJECTS TO BEGIN CREATING ORECS NOT LATER THAN2028 ; AND

(III) JANUARY1, 2022 , FOR CONSIDERATION OF ROUND2 OFFSHORE WIND PROJECTS TO BEGIN CREATING ORECS NOT LATER THAN2030.

(3) (5) In its discretion, the Commission may provide for additional application periods.

(b) Unless extended by mutual consent of the parties, the Commission shall approve, conditionally approve, or deny an application within 180 days after the close of the application period.

(c) An application shall include:

(1) a detailed description and financial analysis of the offshore wind project;

(2) the proposed method of financing the offshore wind project, including documentation demonstrating that the applicant has applied for all current eligible State and federal grants, rebates, tax credits, loan guarantees, or other programs available to offset the cost of the project or provide tax advantages;

(3) a costbenefit analysis that shall include at a minimum:

(i) a detailed inputoutput analysis of the impact of the offshore wind project on income, employment, wages, and taxes in the State with particular emphasis on inState manufacturing employment;

(ii) detailed information concerning assumed employment impacts in the State, including the expected duration of employment opportunities, the salary of each position, and other supporting evidence of employment impacts;

(iii) an analysis of the anticipated environmental benefits, health benefits, and environmental impacts of the offshore wind project to the citizens of the State;

(iv) an analysis of any impact on residential, commercial, and industrial ratepayers over the life of the offshore wind project;

(v) an analysis of any longterm effect on energy and capacity markets as a result of the proposed offshore wind project;

(vi) an analysis of any impact on businesses in the State; and

(vii) other benefits, such as increased inState construction, operations, maintenance, and equipment purchase;

(4) a proposed ORECpricing schedule for the offshore wind project that shall set SPECIFYa price for the generation attributes, including the energy, capacity, ancillary services, and environmental attributes;

(5) a decommissioning plan for the project, including provisions for decommissioning as required by the United States Department of the Interior;

(6) a commitment to:

(i) abide by the requirements set forth in subsection (e) of this section; and

(ii) deposit at least $6,000,000, in the manner required under subsection (g) of this section, into the Maryland Offshore Wind Business Development Fund established under 920C03 of the State Government Article;

(7) a description of the applicants plan for engaging small businesses, as defined in 14501 of the State Finance and Procurement Article;

(8) a commitment that the applicant will:

(i) use best efforts to apply for all eligible State and federal grants, rebates, tax credits, loan guarantees, or other similar benefits as those benefits become available; and

(ii) pass along to ratepayers, without the need for any subsequent Commission approval, 80% of the value of any state or federal grants, rebates, tax credits, loan guarantees, or other similar benefits received by the project and not included in the application; and

(9) any other information the Commission requires.

(d) (1) The Commission shall use the following criteria to evaluate and compare proposed offshore wind projects SUBMITTED DURING AN APPLICATIONPERIOD:

(i) lowest cost impact on ratepayers of the price set under a proposed ORECpricing schedule;

(ii) potential reductions in transmission congestion prices within the State;

(iii) potential changes in capacity prices within the State;

(iv) potential reductions in locational marginal pricing;

(v) potential longterm changes in capacity prices within the State from the offshore wind project as it compares to conventional energy sources;

(vi) the extent to which the costbenefit analysis submitted under subsection (c)(3) of this section demonstrates positive net economic, environmental, and health benefits to the State;

(vii) the extent to which an applicants plan for engaging small businesses meets the goals specified in Title 14, Subtitle 5 of the State Finance and Procurement Article;

(viii) the extent to which an applicants plan provides for the use of skilled labor, particularly with regard to the construction and manufacturing components of the project, through outreach, hiring, or referral systems that are affiliated with registered apprenticeship programs under Title 11, Subtitle 4 of the Labor and Employment Article;

(ix) the extent to which an applicants plan provides for the use of an agreement designed to ensure the use of skilled labor and to promote the prompt, efficient, and safe completion of the project, particularly with regard to the construction, manufacturing, and maintenance of the project;

(x) the extent to which an applicants plan provides for compensation to its employees and subcontractors consistent with wages outlined under 17201 through 17228 of the State Finance and Procurement Article;

(xi) siting and project feasibility;

(xii) the extent to which the proposed offshore wind project would require transmission or distribution infrastructure improvements in the State;

(xiii) estimated ability to assist in meeting the renewable energy portfolio standard under 7703 of this subtitle; and

(xiv) any other criteria that the Commission determines to be appropriate.

(2) In evaluating and comparing an applicants proposed offshore wind project under paragraph (1) of this subsection, the Commission shall contract for the services of independent consultants and experts.

(3) The Commission shall verify that representatives of the United States Department of Defense and the maritime industry have had the opportunity, through the federal leasing process, to express concerns regarding project siting.

(4) (i) In this paragraph, minority means an individual who is a member of any of the groups listed in 14301(k)(1)(i) of the State Finance and Procurement Article.

(ii) If an applicant is seeking investors in a proposed offshore wind project, it shall take the following steps before the Commission may approve the proposed project:

1. make serious, goodfaith efforts to solicit and interview a reasonable number of minority investors;

2. as part of the application, submit a statement to the Commission that lists the names and addresses of all minority investors interviewed and whether or not any of those investors have purchased an equity share in the entity submitting an application; and

3. as a condition to the Commissions approval of the offshore wind project, sign a memorandum of understanding with the Commission that requires the applicant to again make serious, goodfaith efforts to interview minority investors in any future attempts to raise venture capital or attract new investors to the offshore wind project ; AND

4 . AS A CONDITION TO THE COMMISSIONS APPROVAL OF THE OFFSHORE WIND PROJECT, SIGN A MEMORANDUM OF UNDERSTANDING WITH THE COMMISSION THAT REQUIRES THE APPLICANT TO USE BEST EFFORTS AND EFFECTIVE OUTREACH TO OBTAIN, AS A GOAL, CONTRACTORS AND SUBCONTRACTORS FOR THE PROJECT THAT ARE MINORITY BUSINESS ENTERPRISES, TO THE EXTENT PRACTICABLE, AS SUPPORTED BY A DISPARITY STUDY.

(iii) The Governors Office of Small, Minority, and Women Business Affairs, in consultation with the Office of the Attorney General, shall provide assistance to all potential applicants and potential minority investors to satisfy the requirements under subparagraph (ii)1 and 3 of this paragraph.

(5) AS A CONDITION OF THE COMMISSIONS APPROVAL OF THE OFFSHORE WIND PROJECT, THE APPLICANT SHALL SIGN A MEMORANDUM OF UNDERSTANDING WITH THE COMMISSION AND SKILLED LABOR ORGANIZATIONS THAT REQUIRES THE APPLICANT TO FOLLOW THE PORTIONS OF THE APPLICANTS PLAN THAT RELATE TO THE CRITERIA SET FORTH IN PARAGRAPH(1)(VIII) AND(IX) OF THIS SUBSECTION.

(e) (1) (I) IN THIS PARAGRAPH, COMMUNITY BENEFIT AGREEMENT MEANS AN AGREEMENT APPLICABLE TO THE DEVELOPMENT OF ANY QUALIFIED OFFSHORE WIND PROJECTTHAT:

1 . PROMOTES INCREASED OPPORTUNITIES FOR LOCAL BUSINESSES AND SMALL, MINORITY, WOMENOWNED, AND VETERANOWNED BUSINESSES IN THE CLEAN ENERGY INDUSTRY;

2 . ENSURES THE TIMELY, SAFE, AND EFFICIENT COMPLETION OF THE PROJECT BY FACILITATING A STEADY SUPPLY OF HIGHLY SKILLED CRAFT WORKERS WHO SHALL BE PAID NOT LESS THAN THE PREVAILING WAGE RATE DETERMINED BY THE COMMISSIONER OF LABOR AND INDUSTRY UNDER TITLE17 , SUBTITLE2 OF THE STATE FINANCE AND PROCUREMENT ARTICLE;

3 . PROMOTES SAFE COMPLETION OF THE PROJECT BY ENSURING THAT AT LEAST80% OF THE CRAFT WORKERS ON THE PROJECT HAVE COMPLETED AN OCCUPATIONAL SAFETY AND HEALTH ADMINISTRATION10 HOUR OR30 HOUR COURSE;

4 . PROMOTES CAREER TRAINING OPPORTUNITIES IN THE CONSTRUCTION INDUSTRY FOR LOCAL RESIDENTS, VETERANS, WOMEN, AND MINORITIES;

5 . PROVIDES FOR BEST EFFORTS AND EFFECTIVE OUTREACH TO OBTAIN, AS A GOAL, THE USE OF A WORKFORCE INCLUDING MINORITIES, TO THE EXTENT PRACTICABLE; AND

5. 6 . REFLECTS A21 STCENTURY LABORMANAGEMENT APPROACH BASED ON COOPERATION, HARMONY, AND PARTNERSHIP.

(II) The Commission may not approve an applicants proposed offshore wind project unless:

(i) the proposed offshore wind project demonstrates IF THE COMMISSION RECEIVES REASONABLE PROPOSALS THAT DEMONSTRATEpositive net economic, environmental, and health benefits to the State, based on the criteria specified in subsection (c)(3) of this section;, AND SUBJECT TO SUBPARAGRAPH(II) (III) OF THIS PARAGRAPH, THE COMMISSION SHALL APPROVE ORDERS TO FACILITATE THE FINANCING OF QUALIFIED OFFSHORE WIND PROJECTS, INCLUDING AT LEAST1,200 MEGAWATTS OF ROUND2 OFFSHORE WIND PROJECTS.

(ii) (III) THE COMMISSION MAY NOT APPROVE AN APPLICANTS PROPOSED OFFSHORE WIND PROJECTUNLESS:

1 . FOR A ROUND1 OFFSHORE WIND PROJECTAPPLICATION:

A.the projected net rate impact for an average residential customer, based on annual consumption of 12,000 kilowatthours, combined with the projected net rate impact of other qualified ROUND1 offshore wind projects, does not exceed $1.50 per month in 2012 dollars, over the duration of the proposed ORECpricing schedule;

(iii) B.the projected net rate impact for all nonresidential customers considered as a blended average, combined with the projected net rate impact of other qualified ROUND1 offshore wind projects, does not exceed 1.5% of nonresidential customers total annual electric bills, over the duration of the proposed ORECpricing schedule; and

(iv) C.the price set SPECIFIEDin the proposed ORECprice schedule does not exceed $190 per megawatthour in 2012 dollars ; AND

2 . FOR A ROUND2 OFFSHORE WIND PROJECTAPPLICATION:

A. THE PROJECTED INCREMENTAL NET RATE IMPACT FOR AN AVERAGE RESIDENTIAL CUSTOMER, BASED ON ANNUAL CONSUMPTION OF12 MEGAWATTHOURS, COMBINED WITH THE PROJECTED INCREMENTAL NET RATE IMPACT OF OTHER ROUND2 OFFSHORE WIND PROJECTS, DOES NOT EXCEED88 CENTS PER MONTH IN2018 DOLLARS, OVER THE DURATION OF THE PROPOSED OREC PRICING SCHEDULE; AND

B. THE PROJECTED INCREMENTAL NET RATE IMPACT FOR ALL NONRESIDENTIAL CUSTOMERS CONSIDERED AS A BLENDED AVERAGE, COMBINED WITH THE PROJECTED NET RATE IMPACT OF OTHER ROUND2 OFFSHORE WIND PROJECTS, DOES NOT EXCEED0.9% OF NONRESIDENTIAL CUSTOMERS TOTAL ANNUAL ELECTRIC BILLS DURING ANY YEAR OF THE PROPOSED OREC PRICING SCHEDULE; AND

C. THE PROJECT IS SUBJECT TO A COMMUNITY BENEFIT AGREEMENT.

(2) (i) When calculating the net benefits to the State under paragraph (1)(i) (1)(II) of this subsection, the Commission shall contract for the services of independent consultants and experts.

(ii) When calculating the projected net average rate impacts FOR ROUND1 OFFSHORE WIND PROJECTSunder paragraph (1)(ii) and (iii) (1)(II)1 A AND B(1)(III)1 A AND B OF THIS SUBSECTION AND FOR ROUND2 OFFSHORE WIND PROJECTS UNDER PARAGRAPH(1)(II)2 A AND B(1)(III)2 A AND Bof this subsection,

the Commission shall apply the same net ORECcost per megawatthour to residential and nonresidential customers.

(f) (1) An order the Commission issues approving a proposed offshore wind project shall:

(i) specify the ORECprice schedule, which may not authorize an ORECprice greater than , FOR A ROUND1 OFFSHORE WIND PROJECT,$190 per megawatthour in 2012 dollars;

(ii) specify the duration of the ORECpricing schedule, not to exceed 20 years;

(iii) specify the number of ORECs the offshore wind project may sell each year;

(iv) provide that:

1. a payment may not be made for an ORECuntil electricity supply is generated by the offshore wind project; and

2. ratepayers, purchasers of ORECs, and the State shall be held harmless for any cost overruns associated with the offshore wind project; and

(v) require that any debt instrument issued in connection with a qualified offshore wind project include language specifying that the debt instrument does not establish a debt, obligation, or liability of the State.

(2) An order approving a proposed offshore wind project vests the owner of the qualified offshore wind project with the right to receive payments for ORECs according to the terms in the order.

(3) ON OR BEFORE MARCH1 EACH YEAR, THE COMMISSION SHALL REPORT TO THE GOVERNOR AND, IN ACCORDANCE WITH 21246 OF THE STATE GOVERNMENT ARTICLE, TO THE SENATE FINANCE COMMITTEE AND THE HOUSE ECONOMIC MATTERS COMMITTEEON:

(I) COMPLIANCE BY APPLICANTS WITH THE MINORITY BUSINESS ENTERPRISE PARTICIPATION GOALS UNDER SUBSECTION(D)(4) OF THIS SECTION; AND

(II) WITH RESPECT TO THE COMMUNITY BENEFIT AGREEMENT UNDER SUBSECTION(E)(1) OF THISSECTION:

1 . THE AVAILABILITY AND USE OF OPPORTUNITIES FOR LOCAL BUSINESSES AND SMALL, MINORITY, WOMENOWNED, AND VETERANOWNED BUSINESSES;

2 . THE SUCCESS OF EFFORTS TO PROMOTE CAREER TRAINING OPPORTUNITIES IN THE CONSTRUCTION INDUSTRY FOR LOCAL RESIDENTS, VETERANS, WOMEN, AND MINORITIES; AND

3 . COMPLIANCE WITH THE MINORITY WORKFORCE GOAL UNDER SUBSECTION(E)(1)(I)5 OF THIS SECTION.

(g) FOR ROUND2 OFFSHORE WIND PROJECT APPLICATIONS, THE COMMISSION SHALL APPROVE OREC ORDERS REPRESENTING A MINIMUM OF400 MEGAWATTS OF NAMEPLATE CAPACITY PROPOSED DURING EACH APPLICATION PERIODUNLESS:

(1) NOT ENOUGH ROUND2 OFFSHORE WIND PROJECT APPLICATIONS ARE SUBMITTED TO MEET THE NET BENEFIT TEST UNDER SUBSECTION(C)(3) OF THIS SECTION; OR

(2) THE CUMULATIVE NET RATEPAYER IMPACT EXCEEDS THE MAXIMUMS PROVIDED IN SUBSECTION(E)(1)(II)2 OF THIS SECTION.

(H) (1) Within 60 days after the Commission approves the application of a proposed offshore wind project, the qualified offshore wind project shall deposit $2,000,000 into the Maryland Offshore Wind Business Development Fund established under 920C03 of the State Government Article.

(2) Within 1 year after the initial deposit under paragraph (1) of this subsection, the qualified offshore wind project shall deposit an additional $2,000,000 into the Maryland Offshore Wind Business Development Fund.

(3) Within 2 years after the initial deposit under paragraph (1) of this subsection, the qualified offshore wind project shall deposit an additional $2,000,000 into the Maryland Offshore Wind Business Development Fund.

7704.2.

(a) (1) The Commission shall determine the offshore wind energy component of the renewable energy portfolio standard under 7703(b)(12) through (15) (25) of this subtitle based on the projected annual creation of ORECs by qualified offshore wind projects.

(c) (1) Each electricity supplier shall purchase from the escrow account established under this section the number of ORECs required to satisfy the offshore wind

energy component of the renewable energy portfolio standard under 7703(b)(12) through (15) (25) of this subtitle.

7705.

(a) Each electricity supplier shall submit a report to the Commission each year in a form and by a date specified by the Commission that:

(1) (I) demonstrates that the electricity supplier has complied with the applicable renewable energy portfolio standard under 7703 of this subtitle and includes the submission of the required amount of renewable energy credits; or

(2) (II) demonstrates the amount of electricity sales by which the electricity supplier failed to meet the applicable renewable energy portfolio standard ; AND

(2) DOCUMENTS THE LEVEL OF PARTICIPATION OF MINORITY BUSINESS ENTERPRISES AND MINORITIES IN THE ACTIVITIES THAT SUPPORT THE CREATION OF RENEWABLE ENERGY CREDITS USED TO SATISFY THE STANDARD UNDER 7703 OF THIS SUBTITLE, INCLUDING DEVELOPMENT, INSTALLATION, AND OPERATION OF GENERATING FACILITIES THAT CREATE CREDITS.

(b) (1) This subsection does not apply to a shortfall from the required Tier 1 renewable sources that is to be derived from offshore wind energy.

(2) If an electricity supplier fails to comply with the renewable energy portfolio standard for the applicable year, the electricity supplier shall pay into the Maryland Strategic Energy Investment Fund established under 920B05 of the State Government Article:

(i) except as provided in item (ii) of this paragraph, a compliance fee of:

1. the following amounts for each kilowatthour of shortfall from required Tier 1 renewable sources other than the shortfall from the required Tier 1 renewable sources that is to be derived from solar energy:

A.4 cents through 2016; and

B.3.75 cents in 2017 AND2018;

C.3 CENTS IN2019 THROUGH2023;

D.2.75 CENTS IN2024;

E.2.5 CENTS IN2025;

F.2.475 CENTS IN2026;

G.2.45 CENTS IN2027;

H.2.25 CENTS IN2028 AND2029 ; AND

I.2.235 CENTS IN2030 and later;

2. the following amounts for each kilowatthour of shortfall from required Tier 1 renewable sources that is to be derived from solar energy:

A.45 cents in 2008;

B.40 cents in 2009 through 2014;

C.35 cents in 2015 and 2016;

D.19.5 cents in 2017;

E.17.5 cents in 2018;

F.15 10 cents in 2019;

G.12.5 10 cents in 2020;

H.10 8 cents in 2021;

I.7.5 6 cents in 2022;

J.6 4.5 cents in 2023; and

K.5 4 cents in 2024;

L.3.5 CENTS IN2025;

M.3 CENTS IN2026;

N.2.5 CENTS IN2027 AND2028;

O.2.25 CENTS IN2029 ; AND

P.2.235 CENTS IN2030 and later; and

3. 1.5 cents for each kilowatthour of shortfall from required Tier 2 renewable sources; or

(ii) for industrial process load:

1. for each kilowatthour of shortfall from required Tier 1 renewable sources, a compliance fee of:

A.0.8 cents in 2006, 2007, and 2008;

B.0.5 cents in 2009 and 2010;

C.0.4 cents in 2011 and 2012;

D.0.3 cents in 2013 and 2014;

E.0.25 cents in 2015 and 2016; and

F.except as provided in paragraph (3) of this subsection, 0.2 cents in 2017 and later; and

2. nothing for any shortfall from required Tier 2 renewable sources.

(3) For industrial process load, the compliance fee for each kilowatthour of shortfall from required Tier 1 renewable sources is:

(i) 0.1 cents in any year during which suppliers are required to purchase ORECs under 7704.2 of this subtitle; and

(ii) nothing for the year following any year during which, after final calculations, the net rate impact per megawatthour from qualified ROUND1 offshore wind projects exceeded $1.65 in 2012 dollars.

(c) The Commission may allow an electricity supplier to submit the report required under 7505(b)(4) of this title to demonstrate compliance with the renewable energy portfolio standard.

(d) An aggregator or broker who assists an electricity customer in purchasing electricity but who does not supply the electricity or take title to or ownership of the electricity may require the electricity supplier who supplies the electricity to demonstrate compliance with this subtitle.

(e) (1) Notwithstanding the requirements of 7703(b) of this subtitle, if the actual or projected dollarfordollar cost incurred or to be incurred by an electricity supplier solely for the purchase of Tier 1 renewable energy credits derived from solar energy

in any 1 year is greater than or equal to, or is anticipated to be greater than or equal to, 2.5% 6.0% of the electricity suppliers total annual electricity sales revenues in Maryland, the electricity supplier may request that the Commission:

(i) delay by 1 year each of the scheduled percentages for solar energy under 7703(b) of this subtitle that would apply to the electricity supplier; and

(ii) allow the renewable energy portfolio standard for solar energy for that year to continue to apply to the electricity supplier for the following year.

(2) In making its determination under paragraph (1) of this subsection, the Commission shall consider the actual or projected dollarfordollar compliance costs of other electricity suppliers.

(3) If an electricity supplier makes a request under paragraph (1) of this subsection based on projected costs, the electricity supplier shall provide verifiable evidence of the projections to the Commission at the time of the request.

(4) If the Commission allows a delay under paragraph (1) of this subsection:

(i) the renewable energy portfolio standard for solar energy applicable to the electricity supplier under the delay continues for each subsequent consecutive year that the actual or projected dollarfordollar costs incurred, or to be incurred, by the electricity supplier solely for the purchase of solar renewable energy credits is greater than or equal to, or is anticipated to be greater than or equal to, 2.5% 6.0% of the electricity suppliers total annual retail electricity sales revenues in Maryland; and

(ii) the renewable energy portfolio standard for solar energy applicable to the electricity supplier under the delay is increased to the next scheduled percentage increase under 7703(b) of this subtitle for each year in which the actual or projected dollarfordollar costs incurred, or to be incurred, by the electricity supplier solely for the purchase of solar renewable energy credits is less than, or is anticipated to be less than, 2.5% 6.0% of the electricity suppliers total annual retail electricity sales revenues in Maryland.

7714.

(a) The Power Plant Research Program shall conduct a study of the renewable energy portfolio standard and related matters in accordance with this section.

(b) The study shall be a comprehensive review of the history, implementation, overall costs and benefits, and effectiveness of the renewable energy portfolio standard in relation to the energy policies of the State, including:

(1) the availability of all clean energy sources at reasonable and affordable rates, including inState and outofstate renewable energy options;

(2) the economic and environmental impacts of the deployment of renewable energy sources in the State and in surrounding areas of the PJMregion;

(3) the effectiveness of the standard in encouraging development and deployment of renewable energy sources;

(4) the impact of alterations that have been made in the components of each tier of the standard, the implementation of different specific goals for particular sources, and the effect of different percentages and alternative compliance payment scales for energy in the tiers;

(5) an assessment of alternative models of regulation and marketbased tools that may be available or advisable to promote the goals of the standard and the energy policies of the State; and

(6) the potential to alter or otherwise evolve the standard in order to increase and maintain its effectiveness in promoting the States energy policies.

(c) Particular subjects to be addressed in the study include:

(1) the role and effectiveness that the standard may have in reducing the carbon content of imported electricity and whether existing or new additional complementary policies or programs could help address the carbon emissions associated with electricity imported into the State;

(2) the net environmental and fiscal impacts that may be associated with longterm contracts tied to clean energy projects, including:

(i) ratepayer impacts that resulted in other states from the use of longterm contracts for the procurement of renewable energy for the other states standard offer service and whether the use of longterm contracts incentivized new renewable energy generation development; and

(ii) ratepayer impacts that may result in the State from the use of longterm contracts for each energy source in the States Tier 1 and whether, for each of the sources, the use of longterm contracts would incentivize new renewable energy generation development in that source;

(3) whether the standard is able to meet current and potential future targets without the inclusion of certain technologies;

(4) what industries are projected to grow, and to what extent, as a result of incentives associated with the standard;

(5) whether the public health and environmental benefits of the growing clean energy industries supported by the standard are being equitably distributed across overburdened and underserved environmental justice communities;

(6) whether the State is likely to meet its existing goals under the standard and, if the State were to increase those goals, whether electricity suppliers should expect to find an adequate supply to meet the additional demand for credits;

(7) additional opportunities that may be available to promote local job creation within the industries that are projected to grow as a result of the standard;

(8) system flexibility that the State would need under future goals under the standard, including the quantities of system peaking and ramping that may be required;

(9) how energy storage technology and other flexibility resources should continue to be addressed in support of renewable energy and State energy policy, including:

(i) whether the resources should be encouraged through a procurement, a production, or an installation incentive;

(ii) the advisability of providing incentives for energy storage devices to increase hosting capacity of increased renewable onsite generation on the distribution system; and

(iii) discussion of the costs and benefits of energy storage deployment in the State under future goals scenarios for renewable generation;

(10) (I) the role of inState clean energy in achieving greenhouse gas emission reductions and promoting local jobs and economic activity in the State;

(II) THE IMPACT OF ITEM(I) OF THIS ITEM ON RATEPAYERS WITH RESPECT TO THE REQUIREMENT OF INSTATE CLEAN ENERGY GENERATION AS AN INCREASING PERCENTAGE OF THE STANDARD; AND

(III) THE IMPACT OF ALL ENERGY SOURCES THAT QUALIFY UNDER THE STANDARD WITH RESPECT TO THE REQUIREMENT OF INSTATE CLEAN ENERGY GENERATION AS AN INCREASING PERCENTAGE OF THE STANDARD;

(11) an assessment of any change in solar renewable energy credit prices over the immediate 24 months preceding the submission of the interim report required under subsection (e) of this section;

(12) AN ASSESSMENT OF THE COSTS, BENEFITS, AND ANY LEGAL OR OTHER IMPLICATIONS OF ALLOWING THE LOCATION ANYWHERE IN OR OFF THE

COAST OF THE CONTIGUOUS UNITED STATES OF TIER1 RENEWABLE SOURCES THAT ARE CURRENTLY REQUIRED TO BE LOCATED IN THE PJM REGION OR IN A CONTROL AREA THAT IS ADJACENT TO THE PJM REGION, IF THE ELECTRICITY IS DELIVERED INTO THE PJM REGION;and

(12) (13) any other matters the Program considers relevant to the analysis of the issues outlined in this section.

(d) (1) The Commission, the Administration, the Department of the Environment, the Department of Natural Resources, and other State and local units shall cooperate with the Program in the conduct of the study under this section, including sharing of information, data, and resources, subject to appropriate legal protection of commercially sensitive and other information.

(2) The Program shall consult with representatives of various segments of the clean energy industry and other stakeholders.

(e) (1) (i) On or before December 1, 2018, the Program shall submit an interim report on any preliminary findings of the study under this section, including any observations and requests for alteration or clarification of the scope, subjects, procedures, and intergovernmental cooperation that may be required to complete the study and submit a final report under this subsection.

(ii) If the Program determines that any preliminary findings under subparagraph (i) of this paragraph warrant reporting earlier than December 1, 2018, the Program may submit a preliminary interim report on those preliminary findings.

(2) On or before December 1, 2019, the Program shall submit a final report on the findings of the study, including proposals for any alteration of the renewable portfolio standard, alternative mechanisms for furthering the States energy policies, and related matters, and any proposed legislative or regulatory changes recommended to implement the findings of the study.

(3) The interim, any preliminary interim, and final reports shall be submitted to the Governor and, subject to 21246 of the State Government Article, the Senate Finance Committee and the House Economic Matters Committee.

(F) (1) THE PROGRAM SHALL CONDUCT A SUPPLEMENTAL STUDY TO ASSESS THE OVERALL COSTS AND BENEFITS OF INCREASING THE RENEWABLE ENERGY PORTFOLIO STANDARD TO A GOAL OF100% RENEWABLE ENERGY BY2040.

(2) PARTICULAR SUBJECTS TO BE ADDRESSED IN THE SUPPLEMENTAL STUDY SHALLINCLUDE:

(I) ALL RELEVANT SUBJECTS LISTED IN SUBSECTIONS(B) AND(C) OF THIS SECTION; AND

(II) AN ASSESSMENT OF WHETHER CERTAIN ANY INSTATE INDUSTRIES COULD BE DISPLACED OR NEGATIVELY ECONOMICALLY IMPACTED BY A100% RENEWABLE ENERGY PORTFOLIO STANDARD, AND RECOMMENDATIONS ON HOW TO PROVIDE AND FUND A JUST COMPARABLE TRANSITION FOR WORKERS, INCLUDING WAGE AND BENEFIT PACKAGES, AND COMMUNITIES THAT RELY ON THOSE INDUSTRIES THAT COULD FACE DISPLACEMENT OR BE NEGATIVELY ECONOMICALLY IMPACTED; AND

(III) THE FINDINGS AND RECOMMENDATIONS OF THE STUDY OF NUCLEAR ENERGY AND ITS ROLE AS A RENEWABLE OR CLEAN ENERGY RESOURCE CONDUCTED BY THE PROGRAM UNDER CHAPTER , 2 ( S.B.516) OF THE ACTS OF THE GENERAL ASSEMBLY OF2019.

(3) ON COMPLETION OF THE SUPPLEMENTAL STUDY, THE PROGRAM SHALL USE THE FINDINGS OF THE STUDY TO PUBLISH A COMPREHENSIVE PLAN WITH SPECIFIC RECOMMENDATIONS THAT, IF EXECUTED, WOULD HAVE THE STATE ACHIEVE RECOMMENDATIONS REGARDING THE FEASIBILITY OF IMPLEMENTING A RENEWABLE ENERGY PORTFOLIO STANDARD OF100% BY2040.

(4) ON OR BEFORE JANUARY1, 2023 , THE PROGRAM SHALL SUBMIT THE SUPPLEMENTAL STUDY AND PLAN TO THE GOVERNOR AND, IN ACCORDANCE WITH 21246 OF THE STATE GOVERNMENT ARTICLE, THE GENERAL ASSEMBLY.

(5) ON REVIEW OF THE SUPPLEMENTAL STUDY AND PLAN, THE GENERAL ASSEMBLY MAY ACT TO REVISE OR INCREASE THE RENEWABLE ENERGY PORTFOLIO STANDARD TARGETS UNDER 7703(B) OF THIS SUBTITLE.

(4) ON OR BEFORE JANUARY1, 2024 , THE PROGRAM SHALL SUBMIT THE SUPPLEMENTAL STUDY TO THE GOVERNOR AND, IN ACCORDANCE WITH 21246 OF THE STATE GOVERNMENT ARTICLE, THE GENERAL ASSEMBLY.

Article State Government

920B01.

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

(d) Clean energy industry means a group of employers AND BUILDING AND TRADE ASSOCIATIONSthat are associated by their promotion of:

(1) products and services that improve energy efficiency and conservation, including products and services provided by:

(i) electricians;

(ii) heating, ventilation, and airconditioning installers;

(iii) plumbers; and

(iv) energy auditors; and

(2) renewable and clean energy resources.

920B05.

(a) There is a Maryland Strategic Energy Investment Fund.

(f) The Administration shall use the Fund:

(1) to invest in the promotion, development, and implementation of:

(i) costeffective 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 lowincome and moderateincome residential sectors;

(3) to provide supplemental funds for lowincome energy assistance through the Electric Universal Service Program established under 7512.1 of the Public Utilities Article and other electric assistance programs in the Department of Human Services;

(4) to provide rate relief by offsetting electricity rates of residential customers, including an offset of surcharges imposed on ratepayers under 7211 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 920B03 of this subtitle;

(6) to implement energyrelated 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 92009 of this title;

(8) to provide grants to encourage combined heat and power projects at industrial facilities; and

(9) SUBJECT TO SUBSECTION SUBSECTIONS(F1) AND(F3) OF THIS SECTION, TO PROVIDE$7,000,000 IN FUNDING FOR ACCESS TO CAPITAL FOR SMALL, MINORITY, WOMENOWNED, AND VETERANOWNED BUSINESSES IN THE CLEAN ENERGY INDUSTRY UNDER 51501 OF THE ECONOMIC DEVELOPMENT ARTICLE, ALLOCATED IN ANNUAL INCREMENTS ASFOLLOWS:

(I) $200,000 IN FISCAL YEAR2021;

(II) $500,000 IN FISCAL YEAR2022;

(III) $500,000 IN FISCAL YEAR2023;

(IV) $1,000,000 IN FISCAL YEAR2024 ; AND

(V) $1,200,000 IN EACH FISCAL YEAR FROM2025 THROUGH2028;

(10) SUBJECT TO SUBSECTIONS(F2) AND(F3) OF THIS SECTION, TO INVEST IN PREAPPRENTICESHIP, YOUTH APPRENTICESHIP, AND OTHER WORKFORCE DEVELOPMENT REGISTERED APPRENTICESHIP PROGRAMS TO ESTABLISH CAREER PATHS IN THE CLEAN ENERGY INDUSTRY UNDER 11708.1 OF THE LABOR AND EMPLOYMENT ARTICLE, ASFOLLOWS:

(I) UP TO$250,000 EACH YEAR FOR2 YEARS STARTING IN FISCAL YEAR2021 TO APPRENTICESHIP SPONSORS TO CREATE CLEAN ENERGY APPRENTICESHIPS; AND

(II) UP TO$250,000 EACH YEAR FOR2 YEARS STARTING IN FISCAL YEAR2021 TO CAREER AND TECHNICAL EDUCATION SCHOOLS TO LAUNCH AND UPGRADE RELEVANT CAREER AND TECHNICAL EDUCATION PROGRAMS;

(11) TO PROVIDE THE LESSER OF$500,000 OR THE ACTUAL TOTAL AMOUNT OF TAX CREDITS CLAIMED UNDER 10742 OF THE TAX GENERAL ARTICLE FOR APPRENTICESHIPS IN THE CLEAN ENERGY INDUSTRY IN EACH OF FISCAL YEARS2021 AND2022 $1,500,000 FOR GRANTS TO PREAPPRENTICESHIP JOBS TRAINING PROGRAMS UNDER 11708.1(C)(2) OF THE LABOR AND EMPLOYMENT ARTICLE STARTING IN FISCAL YEAR2021 UNTIL ALL AMOUNTS ARE SPENT; AND

(II) $6,500,000 FOR GRANTS TO YOUTH APPRENTICESHIP JOBS TRAINING PROGRAMS AND REGISTERED APPRENTICESHIP JOBS TRAINING PROGRAMS UNDER 11708.1(C)(4) OF THE LABOR AND EMPLOYMENT ARTICLE STARTING IN FISCAL YEAR2021 UNTIL ALL AMOUNTS ARE SPENT; AND

(9) (12) (11) to pay the expenses of the Program.

(f1) The Administration may use the Fund, including money that the Fund receives under Public Service Commission Order Number 86372, to provide funding for access to capital for small, minority, and womenowned businesses in the clean energy industry under 51501 of the Economic Development Article.

(F1) (1) ANY FUNDING PROVIDED UNDER SUBSECTION(F)(9) OF THIS SECTION THAT IS NOT SPENT IN A GIVEN FISCAL YEAR SHALL REVERT TO THE FUND IN THE FOLLOWING FISCAL YEAR.

(2) FUNDING THAT IS PROVIDED FOR ACCESS TO CAPITAL FOR SMALL, MINORITY, WOMENOWNED, AND VETERANOWNED BUSINESSES UNDER SUBSECTION(F)(9) OF THIS SECTION SHALL BE USED TO PROVIDE GRANTS TO ELIGIBLE FUND MANAGERS TO PROVIDE INVESTMENT CAPITAL, INCLUDING EQUITY AND SIMILAR INVESTMENTS, AND LOANS TO SMALL, MINORITY, WOMENOWNED, AND VETERANOWNED BUSINESSES IN THE STATE IN THE CLEAN ENERGY INDUSTRY.

(3) ELIGIBLE FUND MANAGERS RECEIVING GRANTS UNDER SUBSECTION(F)(9) OF THIS SECTION MAY USE A PORTION OF THE MONEY RECEIVED TO PAY ORDINARY AND REASONABLE EXPENSES FOR ADMINISTRATIVE, ACTUARIAL, LEGAL, MARKETING, AND TECHNICAL SERVICES AND MANAGEMENT FEES.

(4) THE ADMINISTRATION MAY PROVIDE ADDITIONAL FUNDING FOR THE PURPOSES STATED IN SUBSECTION(F)(9) OF THIS SECTION.

(F2) AN$8,000,000 PAYMENT FOR WORKFORCE DEVELOPMENT PROGRAMS UNDER SUBSECTION(F)(10) OF THIS SECTION STARTING IN FISCAL YEAR2021 SHALL BE DERIVED FROM THE RENEWABLE ENERGY, CLIMATE CHANGE ACCOUNT OF THE FUND.

(F3) FUNDING UNDER SUBSECTION(F)(9) AND(10) OF THIS SECTION FOR ACCESS TO CAPITAL, INVESTMENT, PROMOTION, OR IMPLEMENTATION SHOULD BE DIRECTED ONLY TO BUSINESSES THAT AGREE TO CREATE AND MAINTAIN JOBS THAT PROMOTE FAMILYSUSTAINING WAGES, EMPLOYERPROVIDED HEALTH CARE WITH AFFORDABLE DEDUCTIBLES AND COPAYS, CAREER ADVANCEMENT TRAINING, FAIR SCHEDULING, EMPLOYERPAID WORKERS COMPENSATION AND UNEMPLOYMENT INSURANCE, A RETIREMENT PLAN, PAID TIME OFF, AND THE RIGHT TO BARGAIN COLLECTIVELY FOR WAGES AND BENEFITS.

(i) (1) IN THIS SUBSECTION, LOWINCOME MEANS HAVING AN ANNUAL HOUSEHOLD INCOME THAT IS AT OR BELOW175% OF THE FEDERAL POVERTY LEVEL.

(2) Except as provided in paragraph (2) (3) of this subsection, compliance fees paid under 7705(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 LOWINCOME RESIDENTS OF THE STATE.

(2) (3) Compliance fees paid under 7705(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 LOWINCOME RESIDENTS OF THE STATE.

(M) (1) A LOAN OR GRANT MADE AVAILABLE FROM THE FUND TO A UNIT OF STATE OR LOCAL GOVERNMENT SHALL COMPLY WITH 14416 AND17303 OF THE STATE FINANCE AND PROCUREMENT ARTICLE.

(2) AT LEAST80% OF WORKERS PARTICIPATING IN A PROJECT OR PROGRAM THAT RECEIVES MONEY FROM THE FUND MUST RESIDE WITHIN50 MILES OF THE PROJECT OR PROGRAM, OR ANOTHER DISTANCE DEFINED BY THE LOCAL JURISDICTION WHERE THE PROJECT OR PROGRAM IS LOCATED.

Chapter 393 of the Acts of 2017

AND BE IT FURTHER ENACTED,That this Act shall take effect June 1, 2017. It shall remain effective for a period of 3 6 years and 1 month and, at the end of

June 30, 2020 2023, with no further action required by the General Assembly, this Act shall be abrogated and of no further force and effect.

AND BE IT FURTHER ENACTED,That the Laws of Maryland read as follows:

Article Public Utilities

7701.

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

(9) poultry littertoenergy ; AND

(10) wastetoenergy;

(11) refusederived fuel; and

(12) thermal energy from a thermal biomass system.

7704.

(a) (2) (i) Energy from a Tier 1 renewable source under 7701(r)(1), (5) , OR(9), (10), or (11) of this subtitle is eligible for inclusion in meeting the renewable energy portfolio standard only if the source is connected with the electric distribution grid serving Maryland.

(ii) If the owner of a solar generating system in this State chooses to sell solar renewable energy credits from that system, the owner must first offer the credits for sale to an electricity supplier or electric company that shall apply them toward compliance with the renewable energy portfolio standard under 7703 of this subtitle.

AND BE IT FURTHER ENACTED,That the Laws of Maryland read as follows:

Article Public Utilities

7701.

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

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

(2) wind;

(3) qualifying biomass;

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

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

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

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

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

(9) poultry littertoenergy ; AND

(10) wastetoenergy;

(11) refusederived fuel; and

(12) thermal energy from a thermal biomass system.

7704.

(a) (2) (i) Energy from a Tier 1 renewable source under 7701(r)(1), (5) , OR(9), (10), or (11) of this subtitle is eligible for inclusion in meeting the renewable energy portfolio standard only if the source is connected with the electric distribution grid serving Maryland.

(ii) If the owner of a solar generating system in this State chooses to sell solar renewable energy credits from that system, the owner must first offer the credits for sale to an electricity supplier or electric company that shall apply them toward compliance with the renewable energy portfolio standard under 7703 of this subtitle.

AND BE IT FURTHER ENACTED,That:

(a) The Power Plant Research Program shall:

(1) conduct a study of nuclear energy and its role as a renewable or clean energy resource that can effectively combat climate change in the State; and

(2) include in the study:

(i) an evaluation and summary of the current state of nuclear energy in Maryland;

(ii) an identification of the benefits of nuclear energy usage in Maryland and the environmental benefits that may help to combat climate change;

(iii) an assessment of emerging nuclear energy technologies, including travelingwave reactors, that may enhance the potential of nuclear energy as a viable renewable energy resource;

(iv) an assessment of countries and other states in which nuclear energy makes up more than 50% of total energy production that:

1. includes an analysis of the carbon emission reductions undertaken by these countries or states; and

2. examines how these countries or states have paired nuclear energy with other alternative renewable energy resources;

(v) an identification of the potential for a new nuclear power initiative to be deployed in the State using one or more nuclear technologies that include:

1. major barriers to deploying a successful nuclear power initiative; and

2. a time frame for deploying a successful nuclear power initiative;

(vi) an assessment of the practicality of adding nuclear energy to Marylands Renewable Energy Portfolio Standard; and

(vii) recommendations regarding initiatives for the State and the General Assembly to responsibly and efficiently grow the nuclear energy industry in the State, support new emerging nuclear energy technologies that may improve nuclear energy as a viable renewable energy resource, and utilize nuclear energy as a resource to help the State combat climate change.

(b) On or before January 1, 2020, the Program shall report its findings and recommendations to the Governor and, in accordance with 21246 of the State Government Article, the General Assembly.

2. 3 . AND BE IT FURTHER ENACTED,That a presently existing obligation or contract right may not be impaired in any way by this Act.

3. 4 . AND BE IT FURTHER ENACTED,That, if any provision of this Act or the application thereof to any person or circumstance is held invalid for any reason in a court of competent jurisdiction, the invalidity does not affect other provisions or any other application of this Act that can be given effect without the invalid provision or application, and for this purpose the provisions of this Act are declared severable.

AND BE IT FURTHER ENACTED,That Section 2 of this Act shall apply to all renewable energy portfolio standard compliance years beginning after December 31, 2019.

AND BE IT FURTHER ENACTED,That Section 2 of this Act shall take effect January 1, 2020.

4. 6. 5 . AND BE IT FURTHER ENACTED,That, except as provided in Section 5 of this Act, this Act shall take effect October 1, 2019.

Enacted under Article II, 17(c) of the Maryland Constitution, May 25, 2019.