Sec. 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.