Maryland Public Utility Companies Section 7-704

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

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

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

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

            (3)      (i)      Energy from a Tier 2 renewable source under § 7-701(m)(1) or (3) of this subtitle is eligible for inclusion in meeting the renewable energy portfolio standard through 2018 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.

                  (ii)      Energy from a Tier 2 renewable source under § 7-701(m)(2) of this subtitle is eligible for inclusion in meeting the renewable energy portfolio standard regardless of when the generating system was placed in service.

      (b)      On or after January 1, 2004, an electricity supplier may:

            (1)      receive renewable energy credits; and

            (2)      accumulate renewable energy credits under this subtitle.

      (c)      An electricity supplier shall receive double credit toward meeting the renewable energy portfolio standard for energy derived from solar energy.

      (d)      (1)      This subsection applies only to a generating facility that is placed in service on or after January 1, 2004.

            (2)      (i)      On or before December 31, 2005, an electricity supplier shall receive 120% credit toward meeting the renewable energy portfolio standard for energy derived from wind.

                  (ii)      After December 31, 2005, and on or before December 31, 2008, an electricity supplier shall receive 110% credit toward meeting the renewable energy portfolio standard for energy derived from wind.

            (3)      On or before December 31, 2008, an electricity supplier shall receive 110% credit toward meeting the renewable energy portfolio standard for energy derived from methane under § 7-701(l)(4) of this subtitle.

      (e)      An electricity supplier shall receive credit toward meeting the renewable energy portfolio standard for electricity derived from the biomass fraction of biomass co-fired with other fuels.

      (f)      (1)      In this subsection, "customer" means:

                  (i)      an industrial electric customer that is not on standard offer service; or

                  (ii)      a renewable on-site generator.

            (2)      (i)      A customer may independently acquire renewable energy credits to satisfy the standards applicable to the customer's load, including credits created by a renewable on-site generator.

                  (ii)      Except as provided in subparagraph (iii)1 of this paragraph, the customer shall surrender the credits necessary to meet the standard to its electricity supplier for inclusion in the electricity supplier's compliance report under § 7-705 of this subtitle.

                  (iii)      1.      Credits that a customer surrenders to its electricity supplier to meet the standard and that the electricity supplier relies on in submitting its compliance report may not be resold or retransferred by the customer or by the electricity supplier.

                        2.      The customer may retain or transfer any credits in excess of the amount needed to satisfy the standard for the customer's load.

                  (iv)      A customer who surrenders credits under this subsection retains all rights and title to any environmental or other attributes associated with the credits, including emission reductions or related allowances.

            (3)      A renewable on-site generator shall receive credit for the portion of its on-site generation from a Tier 1 renewable source or a Tier 2 renewable source that displaces the purchase of electricity by the renewable on-site generator from the grid.

            (4)      A customer that satisfies the standard applicable to the customer's load under this subsection may not be required to contribute to a compliance fee recovered under § 7-706 of this subtitle.

            (5)      The Commission shall adopt regulations governing the application and transfer of credits under this subsection consistent with federal law.

      (g)      (1)      In order to create a renewable energy credit, a Tier 1 renewable source or Tier 2 renewable source must substantially comply with all applicable environmental and administrative requirements, including air quality, water quality, solid waste, and right-to-know provisions, permit conditions, and administrative orders.

            (2)      (i)      This paragraph applies to Tier 2 renewable sources that incinerate solid waste.

                  (ii)      At least 80% of the solid waste incinerated at a Tier 2 renewable source facility shall be collected from:

                        1.      for areas in Maryland, jurisdictions that achieve the recycling rates required under § 9-505 of the Environment Article; and

                        2.      for other states, jurisdictions for which the electricity supplier demonstrates recycling substantially comparable to that required under § 9-505 of the Environment Article, in accordance with regulations of the Commission.

                  (iii)      An electricity supplier may report credits received under this paragraph based on compliance by the facility with the percentage requirement of subparagraph (ii) of this paragraph during the year immediately preceding the year in which the electricity supplier receives the credit to apply to the standard.