2023 Maryland Statutes › Public Utilities › Division I - Public Services and Utilities › Title 7 - Gas, Electric, and Water Companies › Subtitle 7 - Renewable Energy Portfolio Standard › Section 7-705 - Compliance; Failure to Comply

(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 § 7–703 of this subtitle and includes the submission of the required amount of renewable energy credits; or
(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 § 7–703 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 post–2022 geothermal systems.
(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 § 9–20B–05 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 kilowatt–hour 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;
B.    3.75 cents in 2017 and 2018;
C.    3 cents in 2019 through 2023;
D.    2.75 cents in 2024;
E.    2.5 cents in 2025;
F.    2.475 cents in 2026;
G.    2.45 cents in 2027;
H.    2.25 cents in 2028 and 2029; and
I.    2.235 cents in 2030 and later;
2.    the following amounts for each kilowatt–hour 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.    10 cents in 2019;
G.    10 cents in 2020;
H.    8 cents in 2021;
I.    6 cents in 2022;
J.    6 cents in 2023;
K.    6 cents in 2024;
L.    5.5 cents in 2025;
M.    4.5 cents in 2026;
N.    3.5 cents in 2027;
O.    3.25 cents in 2028;
P.    2.5 cents in 2029; and
Q.    2.25 cents in 2030 and later; and
3.    1.5 cents for each kilowatt–hour of shortfall from required Tier 2 renewable sources; or
(ii)    for industrial process load:
1.    for each kilowatt–hour 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 kilowatt–hour of shortfall from required Tier 1 renewable sources is nothing for the year following any year during which, after final calculations, the net rate impact per megawatt–hour from Round 1 offshore wind projects exceeded $1.65 in 2012 dollars.
(b–1)    If an electricity supplier fails to comply with the renewable energy portfolio standard that is required to be derived from post–2022 geothermal systems for the applicable year, the electricity supplier shall pay into the Maryland Strategic Energy Investment Fund established under § 9–20B–05 of the State Government Article a compliance fee of the following amounts for each kilowatt–hour of shortfall from required post–2022 geothermal systems:
(1)    10 cents in 2023 through 2025;
(2)    9 cents in 2026;
(3)    8 cents in 2027; and
(4)    6.5 cents in 2028 and later.
(c)    The Commission may allow an electricity supplier to submit the report required under § 7–505(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 § 7–703(b) of this subtitle, if the actual or projected dollar–for–dollar 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, 6.0% of the electricity supplier’s 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 § 7–703(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 dollar–for–dollar 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 dollar–for–dollar 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, 6.0% of the electricity supplier’s 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 § 7–703(b) of this subtitle for each year in which the actual or projected dollar–for–dollar 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, 6.0% of the electricity supplier’s total annual retail electricity sales revenues in Maryland.