Md. Code Regs. 20.61.01.05

Current through Register Vol. 51, No. 21, October 18, 2024

Section 20.61.01.05 - Solar REC Purchases and Offshore Wind Energy REC Purchases

A. Prior to January 1, 2012, if insufficient Maryland Tier 1 solar RECs are offered to meet the RPS requirement under Public Utilities Article, §7-703, Annotated Code of Maryland, and only to the extent Maryland Tier 1 solar RECs are insufficient, a supplier may satisfy the statutory requirement with RECs from a solar renewable energy facility not connected with the electric distribution grid serving Maryland.

B. On or after January 1, 2012, a supplier's Tier 1 solar REC obligation under Public Utilities Article, §7-703, Annotated Code of Maryland, shall be satisfied only with RECs from a solar renewable energy facility connected with the electric distribution grid serving Maryland.

C. When a supplier purchases Tier 1 solar RECs directly from a Level 1 or Level 2 solar renewable energy facility, the supplier shall:

(1) For a Level 1 solar renewable energy facility:

(a) Execute a contract with a duration of not less than 15 years and pay the net present value of the contract amount in a single initial payment;

(b) Calculate the net present value using:

(i) The number of solar RECs purchased and recorded in a GATS account multiplied by 80 percent of the compliance fee specified in Public Utilities Article, §7-705, Annotated Code of Maryland; and

(ii) The federal secondary credit interest rate in effect as of January 1 in the contract year for the discount rate; and

(c) If the supplier executes a contract directly with a Level 1 solar facility owner or designee, receive annually Tier 1 Solar RECs equal to the calculated annual output of the contracted facility used to determine the single initial payment under §C(1)(a) of this regulation; and

(2) For a Level 2 renewable energy solar facility, execute a contract with duration of not less than 15 years.

D. An electricity supplier must purchase ORECs in accordance with COMAR 20.61.06.

Md. Code Regs. 20.61.01.05

Regulations .05 adopted as an emergency provision effective July 1, 2005 (32:18 Md. R. 1517); adopted permanently effective November 24, 2005 (32:23 Md. R. 1829)
Regulations .05 and recodified to be Regulation .06 and new Regulation .05 adopted as an emergency provision effective April 1, 2008 (35:9 Md. R. 895); amended permanently effective May 5, 2008 (35:9 Md. R. 899)
Regulation .05 amended effective December 1, 2008 (35:24 Md. R. 2079)
Regulation .05C amended effective August 10, 2009 (36:16 Md. R. 1251); September 20, 2010 (37:19 Md. R. 1285)
Regulation .05D adopted effective 41:18 Md. R. 1010, eff.9/15/2014