Sec. 20.61.01.06. Satisfaction of Renewable Energy Portfolio Standard

A. A supplier shall have a calendar year renewable energy portfolio consisting of renewable energy credits associated with Tier 1 renewable sources, including the required solar renewable energy credits and the required offshore wind renewable energy credits, and Tier 2 renewable sources.

B. A supplier shall satisfy Tier 1 REC requirements by submitting to the Commission the following:

(1) A summary of RECs associated with generation from any Tier 1 renewable source, excluding RECs associated with electricity derived from solar energy and RECs associated with electricity derived from offshore wind energy;

(2) A summary of RECs associated with electricity derived from solar energy;

(3) A summary of RECs associated with electricity derived from offshore wind energy;

(4) For each REC submitted under this regulation, a copy of the REC registration with GATS or documentation of a REC authorized under COMAR 20.61.03.03; and

(5) Certification that each REC used to meet the requirements of this regulation has not expired or been retired, transferred, or redeemed.

C. A supplier shall satisfy Tier 2 REC requirements by submitting to the Commission the following:

(1) A summary of RECs associated with generation from any Tier 1 renewable source, including solar RECs, or Tier 2 renewable source;

(2) A copy of a REC registration with GATS documenting a REC authorized under COMAR 20.61.03.03; and

(3) Certification that each REC used to meet the requirements of this regulation has not expired or been retired, transferred, or redeemed.

D. Calculation of Sales for Determination of the RPS.

(1) In calculating sales against which renewable energy portfolio obligations for a year are to be measured, a supplier shall include all retail electric sales made between January 1 and December 31 of the year, less sales specifically excluded under Public Utilities Article, §7-703, Annotated Code of Maryland, and sales described in §D(2) of this regulation.

(2) Applicability and Exclusions.

(a) The provisions of this subsection apply only to a sale of electricity that is marketed or otherwise represented to customers by a supplier as renewable or having characteristics of a Tier 1 renewable source or Tier 2 renewable source.

(b) Exclusions Requirements.

(i) Except as provided under §D(2)(b)(ii) of this regulation, a supplier shall exclude any sale of electricity that is marketed or otherwise represented to customers as renewable or having characteristics of a Tier 1 renewable source or Tier 2 renewable source from total sales against which the renewable energy portfolio obligation for the year are measured under §D(1) of this regulation.

(ii) On or after January 1, 2019, a supplier may not exclude a sale of electricity that is marketed or otherwise represented to customers as a Tier 2 renewable source.

(c) Excludable Sales. A supplier's excludable sales under §D(2)(a) of this regulation are:

(i) Electricity sales for which the supplier has renewable energy credits from a Tier 1 renewable source or Tier 2 renewable source equal to or greater than the renewable portfolio standard applicable in the year of reporting; or

(ii) Electricity sales for which the supplier has renewable energy credits from a Tier 1 renewable source, including solar energy, or a Tier 2 renewable source less than the renewable portfolio standard applicable in the year of reporting in proportion to the percentage Tier 1, including solar renewable energy credits, or Tier 2 characteristics as compared with the RPS for the sale.

(3) A supplier shall account for all sales of electricity under §D(2) of this regulation in accordance with the provisions of COMAR 20.61.04.01.

E. Supplier Sales to Industrial Process Load and Agricultural Land Owners.

(1) Supplier Sales to Industrial Process Load.

(a) In calculating the renewable energy portfolio standard that contains industrial process load, the North American Industrial Classification System identification code shall govern the metered load to which the compliance fee or offshore wind energy RPS, as applicable, may apply.

(b) To certify for designation of a sale as industrial process load, a supplier shall submit to the Commission the following documents:

(i) A completed industrial process load application form available from the Commission; and

(ii) A certification from the supplier that it has confirmed the information described in §E(1)(c)(ii) of this regulation with its relevant electric company and that such information is accurate and complete.

(c) An industrial process load application form shall include:

(i) The name, location, and North American Industrial Classification System identification code of each customer or facility for which industrial process load status is requested;

(ii) Each account and meter number associated with each customer or facility for which industrial process load status is requested; and

(iii) A Contact name, address, and telephone number for each account for which industrial process load status is requested.

(d) The designation of a sale as industrial process load shall be effective when filed.

(e) Unless a waiver is granted under §F of this regulation, a supplier sale from industrial process load for which a Tier 1 renewable source REC, including RECs associated with electricity derived from solar energy but excluding RECs associated with electricity derived from offshore wind energy, has not been delivered shall be assessed a compliance fee under Public Utilities Article, §7-705, Annotated Code of Maryland.

(2) Supplier Sales to Agricultural Land Owners.

(a) Suppliers serving a customer who is an owner of agricultural land and who files an Internal Revenue Service Form 1040, Schedule F, shall be exempted from the renewable energy portfolio standard that represents offshore wind energy for that customer’s sales exceeding 3,000 kilowatt-hours of electricity in a month.

(b) To certify for designation of a sale as an exempted sale to an owner of agricultural land, a supplier shall submit to the Commission the following documents:

(i) A completed agricultural land owner application form available from the Commission that is accompanied by a statement from each customer listed on the application form certifying that that it files Internal Revenue Form 1040, Schedule F, to report farm income and expenses; and

(ii) A certification from the supplier that it has confirmed the information described in §E(2)(c)(ii) of this regulation with its relevant electric company and that such information is accurate and complete.

(c) An agricultural land owner application form shall include a list of:

(i) The name and location of each customer for which exempted agricultural land owner status is requested;

(ii) Each account and meter number associated with each customer for which exempted agricultural land owner status is requested; and

(iii) Contact name, address, and telephone number for each account for which exempted agricultural land owner status is requested.

(d) The designation of a sale to an exempted owner of agricultural land shall be effective when filed.

(3) Suppliers shall maintain records of sales to exempted industrial process load and owners of agricultural land adequate for electric companies to calculate refunds under COMAR 20.61.06.14.

F. Waiver of Compliance Fee.

(1) The compliance fee assessed on a supplier sale to an industrial or nonretail commercial customer, may be waived under Public Utilities Article, §7-706, Annotated Code of Maryland, upon a Commission finding of extreme economic hardship.

(2) The Commission may find extreme economic hardship based on the following:

(a) Initiation or involvement in bankruptcy proceedings under 11 U.S.C. §101 et seq.;

(b) A credit rating of C or equivalent rating, or lower by a nationally recognized credit rating agency;

(c) Designation of extreme financial hardship by a federal or other state program; or

(d) Any other documentation the applicant may present for the purpose of assisting the Commission in making a determination on this issue.

(3) In the absence of an effective waiver, the supplier remains responsible for the renewable energy portfolio standard for the industrial or nonretail customer.

G. A supplier that is required to file a report under Public Utilities Article, §7-705, Annotated Code of Maryland, shall open and maintain an account in good standing with GATS.