Code of Maryland Regulations › Title 20 - PUBLIC SERVICE COMMISSION › Subtitle 61 - RENEWABLE ENERGY PORTFOLIO STANDARD PROGRAM › Chapter 20.61.01 - General › Section 20.61.01.03 - Definitions

Current through Register Vol. 51, No. 14, July 12, 2024
A. In this subtitle, the following terms have the meanings indicated.
B. Terms Defined.
(1) "Administration" has the meaning stated in Public Utilities Article, §7-701(b), Annotated Code of Maryland.
(1-1) "Administratively complete" means that the Commission has determined an application to contain the information described in §§D through N of COMAR 20.61.06.02.
(1-2) "Administrator" means the qualified financial institution appointed by a qualified offshore wind project to be the administrator of the escrow account, reserve account and administrator GATS account designated for that qualified offshore wind project as well as any account in substitution of these accounts, and shall include any replacement administrator appointed under §K or L of COMAR 20.61.06.09.
(1-3) "Administrator GATS account" means, with respect to a qualified offshore wind project, the account established by its administrator at GATS, into which a qualified offshore wind project shall transfer all of the ORECs invoiced by that project or into which PJM EIS shall transfer all ORECs created for that project pursuant to standing instructions given to PJM EIS pursuant to §G of COMAR 20.61.06.10.
(1-4) "Applicant" means the owner, an authorized officer of the owner, an authorized agent of the owner, or a retail seller contracting with the owner of a renewable energy facility.
(1-5) "Application" means the information and materials describing a proposed offshore wind project submitted to the Commission as contemplated by Public Utilities Article, §7-704.1(a)(2), Annotated Code of Maryland.
(1-6) "Application period" means the period of time, beginning and ending in accordance with §§(B)(3) and (B)(4) of COMAR 20.61.06.01, during which one or more OSW applicants may submit an application for approval of a proposed offshore wind project.
(1-7) "Approved OREC amount" means, with respect to a qualified offshore wind project, a fixed number of ORECs that the project may sell in any calendar year during the term of the OREC price schedule as approved by the Commission in its OREC order.
(1-8) "BOEM" means the Bureau of Ocean Energy Management.
(1-9) "Business day" means any day other than a Saturday, Sunday or any day on which the Commission or banks in the State are authorized by federal or state law to be closed.
(1-10) "Commission" has the meaning stated in Public Utilities Article, §1-101, Annotated Code of Maryland.
(1-11) "Community benefit agreement" means a contract between an OSW applicant of a qualified offshore wind project and a local community whereby the OSW applicant provides certain benefits to the local community and agrees to labor practices, as set forth in Public Utilities Article, §7-704.1(e)(1)(i), Annotated Code of Maryland.
(2) "Customer" has the meaning stated in Public Utilities Article, §7-704, Annotated Code of Maryland.
(3) "Electric company" has the meaning stated in Public Utilities Article, §1-101, Annotated Code of Maryland.
(3-1) "Electricity service attributes" means, for a qualified offshore wind project, all energy, capacity, and ancillary services associated with its creation of ORECs.
(4) "Electricity supplier" has the meaning stated in Public Utilities Article, §1-101, Annotated Code of Maryland.
(4-1) "Escrow account" means, with respect to each qualified offshore wind project, a financial account established at and by that project's administrator for, among other purposes, receiving payments of OREC purchase payments from OREC purchasers and proceeds of sale of electricity service attributes, and from which transfers will be made to a qualified offshore wind project to pay for ORECs invoiced by that project under COMAR 20.61.06.10.
(4-2) "Estimated project COD" means, with respect to a qualified offshore wind project, the date on which project COD is projected to occur, as specified in the project's application.
(4-3) "Executive team" means the officers identified in an OSW applicant's by-laws or operating agreement and any other person authorized to speak for or act on behalf of the OSW applicant.
(4-4) "Expiration date" means the earlier of the date on which the Commission notifies the OSW applicant that its application has not been accepted and 181 days after the close of the application period, which expiration date may be extended by mutual consent of the Commission and the OSW applicant.
(4-5) "Fund" has the meaning stated in Public Utilities Article, §7-701(c), Annotated Code of Maryland.
(5) "GATS" means the Generation Attribute Tracking System of PJM Environmental Information Services, Inc.
(5-1) "GATS Account" means, with respect to a qualified offshore wind project, an account established pursuant to GATS into which renewable energy generation from that qualified offshore wind project will be reported, and based upon which PJM EIS will create ORECs for that qualified offshore wind project, including any replacement account from time to time that may be required by any change in the operating rules of PJM EIS.
(5-2) "Generally accepted accounting principles" means accounting principles set forth in the opinions and pronouncements of the Accounting Principles Board of the American Institute of Certified Public Accountants and statements and pronouncements of the Financial Accounting Standards Board or in such other statements by such other entity as have been approved by a significant segment of the accounting profession, which are in effect in the United States as of the relevant date of determination.
(5-3) "Generation capacity resource" has the meaning stated in the Reliability Assurance Agreement among load serving entities in the region operated by PJM.
(6) Industrial Process Load.
(a) "Industrial process load" means the total consumption of electricity by a facility of a company classified in the manufacturing sector under the North American Industry Classification System, Codes 31 through 33.
(b) "Industrial process load" does not include consumption of electricity in separately metered areas exclusively devoted to nonmanufacturing related functions, including administrative, managerial, or research and development functions.
(6-1) "Interconnection service agreement" means the agreement for interconnection for the project as a generation capacity resource providing for capacity interconnection rights between the project, PJM, and the applicable transmission owner, as may be amended from time to time.
(6-2) "International electrotechnical commission" means the international standards organization that prepares and publishes standards for electrical, electronic and related technologies.
(6-3) "International financial reporting standards" means the financial accounting standards developed by the International Accounting Standards Board that are in effect as of the relevant date of determination.
(6-4) "Level 1 solar" means a solar photovoltaic renewable energy facility that is less than or equal to 10kW in rated capacity at the point of interconnection with the utility.
(6-5) "Level 2 solar" means a solar photovoltaic renewable energy facility that is greater than 10kW in rated capacity at the point of interconnection with the utility.
(6-6) "Local community" means a "local government" as defined in State Government Article, §
										11-101(g), Annotated Code of Maryland:
(a) Where:
(i) Shore-side infrastructure associated with a qualified offshore wind project will be located;
(ii) Offshore wind supply chain developed will be located; or
(iii) Other economic development will be located; and
(b) Which enters into a community benefit agreement with an OSW applicant.
(6-7) "Major cost category" means the major capital expenditures of a proposed offshore wind project incurred during development and construction phases, including but not limited to permitting, legal and consulting costs, site and meteorological assessment, ship or barge leases, wharfage fees, construction labor, foundations, support structures, wind turbines, capitalized interest, and owner's costs.
(6-8) "Maryland Offshore Wind Business Development Fund" means the fund of the same name established under State Government Article, §9-20 C-03, Annotated Code of Maryland.
(6-9) "Minimum threshold criteria" means the criteria listed in §A of COMAR 20.61.06.03.
(6-10) "Minority" means an individual who is a member of any of the groups listed in State Finance and Procurement Article, §
										14-301(j)(1)(i), Annotated Code of Maryland.
(6-11) "Minority Business Enterprise Program" means the program established under State Finance and Procurement Article, Title 14, Subtitle 3, Annotated Code of Maryland.
(6-12) "Net metering" has the meaning stated in Public Utilities Article, §7-306, Annotated Code of Maryland.
(7) Nonretail Commercial Customer.
(a) "Nonretail commercial customer" means a business operating under any North American Industry Classification System Code.
(b) "Nonretail commercial customer" does not include a business operating under any North American Industry Classification System Code numbers 31 through 33 or 44 through 45.
(7-1) "North American Industry Classification System" or "NAICS" means the standard developed by the Office of Management and Budget and used by federal statistical agencies to classify businesses for the purposes of collecting, analyzing and publishing statistical data.
(7-2) "Offshore wind energy RPS" means the offshore wind energy component of the RPS established pursuant to §A of COMAR 20.61.06.07.
(7-3) "OREC" has the meaning stated in Public Utilities Article, §7-701, Annotated Code of Maryland.
(7-4) "OREC invoice" means a monthly invoice delivered by a qualified offshore wind project under COMAR 20.61.06.10 to its administrator setting forth (a) the number of ORECs created for that project by PJM EIS in the project's GATS account for the second generation month immediately preceding the invoice date and in respect of which a PJM EIS statement setting forth the number of ORECs created as at the last day of the month immediately preceding the invoice date is available and (b) the dollar amount due for the ORECs under that invoice; provided that, an OREC invoice shall not include ORECs in respect of which the project shall have previously invoiced the administrator.
(7-5) "OREC order" means an order issued by the Commission pursuant to this chapter and Public Utilities Article §7-704.1(f) that, among other things, approves a proposed offshore wind energy project, its related OREC price schedule, the duration of the OREC price schedule and the approved OREC amount.
(7-6) "OREC price" means, with respect to a qualified offshore wind project and each calendar year during the term of its OREC price schedule, the price for an OREC for each relevant calendar year set forth in its OREC price schedule approved by the Commission under the project's OREC order and, following any adjustment as contemplated by §C of COMAR 20.61.06.08, the final adjusted OREC price for each relevant calendar year referenced in a replacement OREC price schedule submitted to the Commission under that regulation.
(7-7) "OREC price schedule" means, with respect to a qualified offshore wind project, the price schedule for ORECs for:
(a) An initial term of up to 20 years commencing from estimated project COD; and
(b) An additional schedule of prices for ORECs for each of 5 years immediately following the end of the initial term to accommodate potential delays in project COD, as approved by the Commission under the project's OREC order and includes any replacement OREC price schedule submitted to the Commission pursuant to §C of COMAR 20.61.06.08.
(7-8) "OREC projected revenue" means, with respect to a qualified offshore wind project, that amount of annual OREC revenues in any given calendar year during the term of an OREC price schedule equal to the product of the OREC price for that year and the approved OREC amount for the same period.
(7-9) "OREC purchase obligation" means, the obligation of the OREC purchasers to purchase ORECs from one or more escrow accounts to satisfy the offshore wind energy component of the renewable energy portfolio standard established by the Commission under Public Utilities Article, §7-703(b), Annotated Code of Maryland.
(7-10) "OREC purchase payment" means, with respect to an OREC purchaser, the aggregate dollar amount paid by it in each calendar quarter (commencing with the calendar quarter beginning on April 1 of the initial year in which the offshore wind energy RPS takes effect), for deposit in one or more escrow accounts for the purchase of ORECs pursuant to the Commission's OREC order, OWEA, and this chapter.
(7-11) "OREC purchaser" means an electricity supplier that is obligated to purchase ORECs by Public Utilities Article, §7-703(d), Annotated Code of Maryland.
(7-12) "OSW applicant" means a person submitting an application for a proposed offshore wind project.
(7-13) "OWEA" means the Maryland Offshore Wind Energy Act of 2013, as amended from time to time.
(7-14) "Permitted investments" means one or more investment funds operating under an exemption under Rule 2a-7 of the Investment Company Act of 1940, as amended, the investments in which consist exclusively of direct, non-callable obligations (including "strips") of the United States of America, guaranteed by its full faith and credit, and interests in such other investment funds.
(8) "Person" has the meaning stated in Public Utilities Article, §1-101, Annotated Code of Maryland.
(8-1) "PJM" means PJM Interconnection, L.L.C. or its successor.
(8-2) "PJM EIS" means PJM Environmental Information Services, Inc. or its successor.
(9) "PJM Region" has the meaning stated in Public Utilities Article, §7-701, Annotated Code of Maryland.
(9-1) "PJM revenues" means amounts payable to a qualified offshore wind project for its sale of electricity service attributes to markets administered by PJM.
(9-2) "Project" means a qualified offshore wind project.
(9-3) "Project commercial operation date" or "project COD" means, with respect to a qualified offshore wind project, the date on which the project satisfies the requirements for demonstrating commercial operation required by its Interconnection Service Agreement, as may be amended, modified or supplemented from time to time.
(9-4) "Project team" means the key individuals whom an OSW applicant hires or contracts with to lead the development, financing, permitting, engineering, procurement, construction, operations, maintenance, decommissioning and other significant functions for a proposed offshore wind project.
(9-5) "Proposed offshore wind project" or "proposed project" means an offshore wind project described in an application that is submitted for Commission approval as a qualified offshore wind project.
(9-6) "Proposed OREC amount" means, with respect to a proposed offshore wind project, a fixed annual number of renewable energy certificates that the proposed project proposes to sell as ORECs during the term of the proposed OREC price schedule.
(9-7) "Proposed OREC price schedule" means, with respect to a proposed offshore wind project, the price schedule described in §M of COMAR 20.61.06.02 setting a price or a series of calendar year prices for the electricity service attributes and the environmental attributes associated with the creation of ORECs.
(9-8) "Proposed qualified submerged renewable energy line" means a proposed transmission line, as described by Public Utilities Article, §7-208, Annotated Code of Maryland.
(9-9) "Public Information Act exemption request" or "PIA exemption request" means, with regard to a portion or portions of an application, a request by an OSW applicant to exempt certain information from a third-party request under State Government Article, Title 10, Subtitle 6, Annotated Code of Maryland.
(9-10) "Qualified financial institution" means a financial institution formed under the laws of the United States of America with an office in the State of Maryland, that satisfies all of the following criteria:
(a) It has, at the time of selection, a tangible net worth of no less than $150,000,000;
(b) It has a reputable and established division that demonstrates significant experience in carrying out custodial, escrow or account administration services for customers;
(c) It is not an employee of any qualified offshore wind project, an affiliate of that project or an employee of any entity affiliated with any qualified offshore wind project;
(d) It is not an entity that holds any ownership share in any qualified offshore wind project; and
(e) It is not an entity that is providing financing (whether in the form of debt, equity or any combination or derivation thereof) to any qualified offshore wind project; provided that, if the Commission shall have, as contemplated by §D of COMAR 20.61.06.09, determined that factors other than those specified above are relevant in determining whether a proposed administrator qualifies as a qualified financial institution, these other factors and any of the above factors that the Commission considers applicable, shall be deemed to constitute the criteria for determining whether an administrator has ceased to be a qualified financial institution for the purposes of §§K and L of COMAR 20.61.06.09.
(9-11) "Qualified offshore wind project" has the meaning stated in Public Utilities Article, §7-701, Annotated Code of Maryland.
(9-12) "Reliability Assurance Agreement" means the PJM Interconnection, L.L.C. agreement approved by the Federal Energy Regulatory Commission.
(10) "Renewable energy credit (REC)" has the meaning stated in Public Utilities Article, §7-701, Annotated Code of Maryland.
(11) "Renewable energy facility" means any person, including a renewable on-site generator that produces electricity using a Tier 1 renewable source or Tier 2 renewable source.
(12) "Renewable energy portfolio standard (RPS)" has the meaning stated in Public Utilities Article, §7-701, Annotated Code of Maryland.
(13) "Renewable on-site generator" has the meaning stated in Public Utilities Article, §7-701, Annotated Code of Maryland.
(13-1) "Reserve account" means, with respect to a qualified offshore wind project, the account established by an administrator into which funds from the escrow account of a project up to an aggregate amount equal to the six-month average of OREC projected revenue for that project for the relevant calendar year during the term of its OREC price schedule shall be deposited as contemplated by §G of COMAR 20.61.06.11.
(13-2) "Retail electric customer" has the meaning stated in COMAR 20.51.01.02.
(13-3) "Round 1 offshore wind project" has the meaning stated in Public Utilities Article, §7-701, Annotated Code of Maryland.
(13-4) "Round 2 offshore wind project" has the meaning stated in Public Utilities Article, §7-701, Annotated Code of Maryland.
(13-5) "Small business" has the meaning stated in State Finance and Procurement Article, §
										14-501, Annotated Code of Maryland.
(13-6) "Term" means, with respect to a qualified offshore wind project, the period covered by its OREC price schedule, not exceeding 20 years commencing from project COD, as approved by the Commission in the relevant OREC order; provided that, if project COD occurs later than five years immediately following the estimated project COD, the term of an OREC price schedule shall commence in year six of the schedule described in clause (a) of the definition of "OREC price schedule" and extend for the term approved by the Commission in the same OREC order.
(14) "State adjacent to the PJM control area" means a state that shares a border with the PJM Region or which the PJM Region partially overlaps.
(15) "Supplier" means:
(a) An electric company as defined under Public Utilities Article, §1-101, Annotated Code of Maryland; or
(b) An electricity supplier that sells electricity at retail in Maryland.
(15-1) "Thermal biomass system" has the meaning stated in Public Utilities Article, §7-701, Annotated Code of Maryland.
(16) "Tier 1 renewable source" has the meaning stated in Public Utilities Article, §7-701, Annotated Code of Maryland.
(17) "Tier 2 renewable source" has the meaning stated in Public Utilities Article, §7-701, Annotated Code of Maryland.
(18) "Veteran-owned small business enterprise (VSBE)" has the meaning stated in State Finance and Procurement Article, §
										14-601(c), Annotated Code of Maryland.