(a)(1) (i) The Administration shall coordinate funding sources, including all available federal funding, philanthropic funding, funding available under the EmPOWER Maryland Program, and Strategic Energy Investment Fund funding allocated to energy efficiency, to assist an electric company, a gas company, or a water company in covering the costs for all behind–the–meter projects, including full electrification, associated with a thermal energy network system so that any affected residential customers are not required to pay for connection to the thermal energy network system or any appliance replacements required for electrification.
(ii)Funds from the federal Inflation Reduction Act may not exceed:
1. $14,000 per residential unit; and
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(a) (1) (i) The Administration shall coordinate funding sources, including all available federal funding, philanthropic funding, funding available under the EmPOWER Maryland Program, and Strategic Energy Investment Fund funding allocated to energy efficiency, to assist an electric company, a gas company, or a water company in covering the costs for all behind–the–meter projects, including full electrification, associated with a thermal energy network system so that any affected residential customers are not required to pay for connection to the thermal energy network system or any appliance replacements required for electrification.
(ii) Funds from the federal Inflation Reduction Act may not exceed:
1. $14,000 per residential unit; and
2. $9,000,000 in total.
(2) (i) Unless precluded by federal law, regulation, or program requirement guidelines, the Administration shall reserve $9,000,000 of federal funding from the U.S. Department of Energy to ensure adequate funding for any appliances installed in connection with a pilot system.
(ii) Funds reserved under subparagraph (i) of this paragraph shall be allocated not later than June 30, 2028, and spent not later than June 30, 2030.
(3) The Administration shall coordinate with the Department of Housing and Community Development to provide services or funding for weatherization for all low or moderate income housing within the pilot system’s area.
(4) In providing funding made available under the federal Inflation Reduction Act of 2022 for behind–the–meter projects, the Administration shall give priority to low and moderate income housing.
(b) A gas company implementing a pilot system shall:
(1) be responsible for construction, including any necessary renovations, for behind–the–meter projects relating to any appliance or panel replacements or upgrades necessary to connect to a thermal energy network system and operate without gas;
(2) pursue all tax credits and federal funding available for front–of–meter and behind–the–meter projects; and
(3) coordinate with the Administration to access funds available under the federal Inflation Reduction Act, rebates and credits available under the EmPOWER Maryland Program, and any other available funds.
(c) (1) An electric company, a gas company, or a water company that owns and manages a pilot system shall pay for any cost not covered by the funds and tax credits specified in subsections (a) and (b) of this section.
(2) Subject to subsection (d) of this section, any costs incurred by an electric company, a gas company, or a water company after all funds and tax credits specified under subsections (a) and (b) of this section have been applied may be recovered within 1 year of incurring the costs through rate adjustments or another mechanism approved by the Commission.
(d) If an electric company, a gas company, or a water company is required to own behind–the–meter infrastructure for a specified period of time to qualify for a funding source specified under subsection (a)(1)(i) of this section:
(1) the cost associated with the behind–the–meter infrastructure shall be recovered within the specified ownership period required for the funding;
(2) the electric company, gas company, or water company shall maintain the behind–the–meter infrastructure during the specified ownership period required for the funding; and
(3) ownership of the behind–the–meter infrastructure shall transfer to the electric, gas, or water customer who the infrastructure was installed to benefit when the specified ownership period required for the funding lapses.
(e) Nothing in this section may be construed to authorize or prohibit an electric company, a gas company, or a water company from recovering costs of behind–the–meter infrastructure that does not meet the requirements of this subtitle.