§ 7-1005

(a) The Commission shall develop a program for each investor–owned electric company to establish a pilot program or temporary tariff to compensate owners and aggregators of distributed energy resources for electric distribution system support services through an incentive mechanism determined by the Commission.

(b) (1) (i) On or before July 1, 2025, each investor–owned electric company shall submit to the Commission for approval a pilot program or temporary tariff for electric distribution system support services that provides reasonable compensation through a mechanism determined by the Commission.

(ii) The pilot program or temporary tariff submitted under subparagraph (i) of this paragraph shall provide that electric distribution system support services to on–site energy storage devices be used for system peak reduction.

(2) (i) A municipal electric utility or an electric cooperative may establish a pilot program, temporary tariff, or performance mechanism under this section.

(ii) If a municipal electric utility or electric cooperative establishes a pilot program, temporary tariff, or performance mechanism under this section, the provisions of this section and §§ 7–1006 and 7–1007 of this subtitle that apply to an investor–owned electric company shall also apply to the municipal electric utility or electric cooperative.

(c) (1) Notwithstanding any provision of this subtitle, an investor–owned electric company may propose and submit to the Commission a performance mechanism to cover the cost of using distributed energy resources or an aggregator of distributed energy resources under this subtitle.

(2) The Commission may approve a performance mechanism submitted under paragraph (1) of this subsection if the Commission determines that the performance mechanism is in the public interest.

(d) (1) The Commission shall approve, deny, or approve with amendments a pilot program or temporary tariff submitted under this section for each investor–owned electric company in an expedited manner.

(2) If the Commission determines that transitioning a pilot program or temporary tariff to a permanent program or tariff is in the public interest, the Commission may establish a process for an investor–owned electric company to transition a pilot program or temporary tariff to a permanent program or tariff for electric distribution system support services.

(3) If the Commission determines the transition to a permanent program or tariff is in the public interest, each customer participating in a pilot program or temporary tariff approved under paragraph (1) of this subsection may be transitioned to a permanent program or tariff for electric distribution system support services when the program or tariff is approved by the Commission.

(e) (1) The Commission may allow the energy generated by a renewable on–site generating system that provides electric distribution system support service under a pilot program or temporary tariff approved under subsection (d)(1) of this section to count towards the investor–owned electric company’s greenhouse emissions reduction goals under § 7–211 of this title.

(2) (i) Subject to subparagraph (ii) of this paragraph, the cumulative energy storage capacity of any energy storage devices installed on a customer’s property in accordance with this subtitle shall count towards the targets established under § 7–216.1 of this title.

(ii) Subparagraph (i) of this paragraph does not include the energy storage capacity of:

1. electric vehicles that are part of a renewable on–site generating system; or

2. mobile energy storage devices.

(f) The cumulative nameplate capacity of renewable on–site generating systems participating in a pilot program or temporary tariff approved under this section may not exceed 2% of the investor–owned electric company’s highest recorded coincident peak demand.