Maryland Co-Location Energy Innovation and Reliability Act
Summary
SB947, the Maryland Co-Location Energy Innovation and Reliability Act, directs the Public Service Commission to adopt regulations for a specific kind of energy facility: a generating station that is co-located with a data center and is not interconnected with the state’s electric transmission or distribution systems. The bill is aimed at creating a regulatory framework for these “behind-the-meter” or otherwise isolated facilities, which are treated differently from traditional utility-connected generation.
Under the bill, the Commission must establish policies that define such a generating station as an independent resource not subject to state laws and regulations governing retail electric customers or electricity suppliers. The regulations must also clarify that distribution system fees and renewable energy portfolio standard obligations do not apply to the station or the energy it produces, while still requiring backup power for reliability, cybersecurity safeguards, and protective measures to prevent interaction with the grid. Applicants for a certificate of public convenience and necessity would need to show that the project will remain unconnected to the grid, comply with state and federal law, and contribute to Maryland’s energy goals. Operators would also have to file annual reports on energy use, environmental impacts, contributions to energy goals, and operational compliance.
Impact
The bill would add a new section to the Public Utilities Article and expand the Public Service Commission’s rulemaking authority over co-located data center and generating station projects. It would create a distinct legal category for non-grid-connected generation associated with data centers, exempting such facilities from certain utility-related fees and renewable portfolio standard requirements while imposing reporting, reliability, and cybersecurity obligations. The measure could affect data center developers, power plant owners/operators, the PSC, and potentially state energy policy by encouraging private generation arrangements outside the traditional electric system.
Sentiment
The available record shows no committee transcript or vote history, so there is no documented floor or committee debate to gauge broad support or opposition. Based on the bill text, the measure appears designed to promote energy innovation and reliability while preserving oversight through PSC regulation, suggesting a policy balance between development flexibility and safeguards. Because no votes or testimony are provided, the overall sentiment cannot be measured from the record beyond the bill’s pro-development, regulatory-structure framing.
Contention
The main points of potential contention are the bill’s exemptions from state-mandated electric distribution fees and renewable portfolio standard obligations, which could be viewed as preferential treatment for certain data center-linked generation projects. Another likely issue is the bill’s effort to define these facilities as independent resources outside retail electric regulation, which may raise concerns about regulatory consistency, grid oversight, and fairness to other electricity suppliers or ratepayers. Supporters would likely emphasize reliability, cybersecurity, and economic development, while critics may focus on carve-outs from existing energy policy requirements and the risk of creating a separate regulatory track for large private energy users.