§ 7-1226

(a) In selecting a proposal for a front–of–the–meter transmission energy storage device project, the Commission:

(1) shall specify:

(i) a 15–year pricing schedule that uses a monthly fixed price for each megawatt that represents the anticipated wholesale value of capacity for the front–of–the–meter transmission energy storage device and the benefits identified in § 7–1225(a)(2) of this subtitle;

(ii) that each electricity supplier shall be responsible for purchasing storage capacity credits at the monthly fixed price schedule proportional to the electricity supplier’s capacity obligation;

(iii) that all PJM capacity market revenue earned by the energy storage project be transmitted to the Commission to be held in escrow for distribution to electric companies to be refunded or credited to each distribution customer proportional to the electricity supplier’s monthly capacity purchase obligation;

(iv) that the energy storage project shall retain any energy and ancillary services revenue earned;

(v) that electric companies must jointly select an escrow administrator, in consultation with the Commission; and

(vi) for any cost recovery by an electric company, that the recovery shall be done through a nonbypassable surcharge established by the electric company that is added to the electric company’s base distribution rate or supply rate on customer bills;

(2) shall specify that for continued receipt of payment under item (1) of this subsection, an applicant shall demonstrate, to the satisfaction of the Commission, that the applicant’s energy storage device is available;

(3) shall incorporate penalties for nonperformance and underperformance in the contract, including withholding of payment that reflects the degree of underperformance, for energy storage devices that fail to meet availability metrics;

(4) may terminate energy storage devices from the program if device performance does not improve after appropriate notice and opportunity to cure;

(5) shall consider other nonprice factors to ensure project deliverability within 24 months after the award date, such as:

(i) project maturity dates;

(ii) interconnection queue status;

(iii) site control;

(iv) developer experience, including procuring, constructing, and operating front–of–the–meter transmission energy storage devices;

(v) any evidence of key development milestones to substantiate project deliverability within 24 months after the award date;

(vi) safety plans; and

(vii) any other relevant nonprice factors as determined by the Commission; and

(6) shall require, at a minimum, all energy storage devices that utilize lithium–ion batteries to comply with the most up–to–date revision of the National Fire Protection Association 855: Standard for the Installation of Stationary Energy Storage Systems in effect at the project’s final permit application date.

(b) (1) Each energy storage project shall include a proposed decommissioning plan.

(2) The proposed decommissioning plan shall include a plan to maximize the recycling or reuse of all qualifying components of each energy storage device.

(3) The owner or operator of an energy storage device may submit a revised recycling and reuse plan that incorporates emerging recycling and reuse opportunities up to 1 year before executing the decommissioning plan.

(c) The Commission shall:

(1) after giving public notice, hold one or more public hearings to receive public comment and evaluate the proposals; and

(2) subject to subsection (d) of this section, issue one or more orders to select a proposal or proposals for development.

(d) The Commission may end the solicitation process without selecting a proposal if the Commission finds that none of the proposals adequately support the goals established under this subtitle, including the goal of securing affordable, reliable electrical service for Maryland residents.