Certificates of Public Convenience and Necessity and Construction of Data Centers
SB1000 makes two main changes to Maryland law. First, it revises Public Utilities Article § 7-207 governing certificates of public convenience and necessity (CPCN) for transmission lines. The bill broadens the section’s language from “overhead transmission lines” to “transmission lines” in several places, and it changes the treatment of construction related to existing lines. Instead of a broad automatic waiver in certain circumstances, the Public Service Commission (PSC) would be required to adopt regulations establishing specific criteria for waiving the CPCN requirement for good cause, including the cost to ratepayers and environmental impacts. The bill also preserves and clarifies notice, hearing, and review requirements for CPCN applications, including public notice, hearings, local government participation, and PSC consideration of climate, reliability, and other impacts.
Second, SB1000 adds a new Real Property Article § 14-134 that applies only in Baltimore City. It prohibits construction of a data center in a development district that is subject to tax increment repayment on outstanding bonds, with one express exception for the city-wide affordable housing development district created by a 2024 Baltimore City ordinance. The bill defines “data center” using power-demand and load-factor thresholds, and it defines “development district” and “tax increment” for purposes of the restriction. The bill takes effect June 1, 2026.
The bill would amend state utility permitting law by expanding CPCN-related rules from overhead transmission lines to transmission lines generally, while also directing the PSC to formalize waiver standards by regulation. That change could affect utilities, transmission developers, landowners, local governments, and ratepayers by tightening how the Commission evaluates when construction may proceed without a CPCN and by reinforcing procedural safeguards for public notice and hearings. Separately, it would add a Baltimore City-specific land use restriction that limits where certain large data centers may be built, affecting developers and property owners in designated development districts tied to tax increment financing.
Based on the bill text and the absence of committee testimony or recorded votes in the provided materials, the overall posture appears policy-driven and regulatory in nature rather than reflecting documented public debate. The bill’s structure suggests concern for utility oversight, ratepayer costs, environmental impacts, and local planning authority on the transmission side, while also showing an intent to restrict data center siting in certain Baltimore City districts. No formal vote history or transcript record is available here to indicate support or opposition levels.
The most likely points of contention are the PSC’s authority and discretion over transmission-line waivers, the expansion of CPCN requirements beyond overhead lines, and the balance between state utility planning and local or environmental concerns. Utilities and transmission developers may view the new regulatory criteria and notice requirements as adding delay or uncertainty, while local governments, residents, and environmental advocates may favor the added scrutiny. The Baltimore City data center restriction may also be contested by developers and property owners who could be barred from building in tax-increment-financed development districts, although the bill preserves an exception for the city-wide affordable housing development district.