ROBERT L. EHRLICH, JR., Governor                             Ch. 488

(2)      (I) A CUSTOMER MAY INDEPENDENTLY ACQUIRE RENEWABLE
ENERGY CREDITS TO SATISFY THE STANDARDS APPLICABLE TO THE CUSTOMER'S
LOAD, INCLUDING CREDITS CREATED BY A RENEWABLE ON-SITE GENERATOR.

(II)     EXCEPT AS PROVIDED IN SUBPARAGRAPH (III)1 OF THIS
PARAGRAPH, THE CUSTOMER SHALL SURRENDER THE CREDITS NECESSARY TO
MEET THE STANDARD TO ITS ELECTRICITY SUPPLIER FOR INCLUSION IN THE
ELECTRICITY SUPPLIER'S COMPLIANCE REPORT UNDER § 7-705 OF THIS SUBTITLE.

(III)    1. CREDITS THAT A CUSTOMER SURRENDERS TO ITS
ELECTRICITY SUPPLIER TO MEET THE STANDARD AND THAT THE ELECTRICITY
SUPPLIER RELIES ON IN SUBMITTING ITS COMPLIANCE REPORT MAY NOT BE RESOLD
OR RETRANSFERRED BY THE CUSTOMER OR BY THE ELECTRICITY SUPPLIER.

2. THE CUSTOMER MAY RETAIN OR TRANSFER ANY CREDITS
IN EXCESS OF THE AMOUNT NEEDED TO SATISFY THE STANDARD FOR THE
CUSTOMER'S LOAD.

(IV)    A CUSTOMER WHO SURRENDERS CREDITS UNDER THIS
SUBSECTION RETAINS ALL RIGHTS AND TITLE TO ANY ENVIRONMENTAL OR OTHER
ATTRIBUTES ASSOCIATED WITH THE CREDITS, INCLUDING EMISSION REDUCTIONS
OR RELATED ALLOWANCES.

(3)      A RENEWABLE ON-SITE GENERATOR SHALL RECEIVE CREDIT FOR
THE PORTION OF ITS ON-SITE GENERATION FROM A TIER 1 RENEWABLE SOURCE OR
A TIER 2 RENEWABLE SOURCE THAT DISPLACES THE PURCHASE OF ELECTRICITY BY
THE RENEWABLE ON-SITE GENERATOR FROM THE GRID.

(3) (4) A CUSTOMER THAT SATISFIES THE STANDARD APPLICABLE TO
THE CUSTOMER'S LOAD UNDER THIS SUBSECTION MAY NOT BE REQUIRED TO
CONTRIBUTE TO A COMPLIANCE FEE RECOVERED UNDER § 7-706 OF THIS SUBTITLE.

(4)     (5) THE COMMISSION SHALL ADOPT REGULATIONS GOVERNING
THE APPLICATION AND TRANSFER OF CREDITS UNDER THIS SUBSECTION
CONSISTENT WITH FEDERAL LAW.

(H) (G) (1) IN ORDER TO CREATE A RENEWABLE ENERGY CREDIT, A TIER 1
RENEWABLE SOURCE OR TIER 2 RENEWABLE SOURCE MUST SUBSTANTIALLY
COMPLY WITH ALL APPLICABLE ENVIRONMENTAL AND ADMINISTRATE
REQUIREMENTS, INCLUDING AIR QUALITY, WATER QUALITY, SOLID WASTE, AND
RIGHT-TO-KNOW PROVISIONS, PERMIT CONDITIONS, AND ADMINISTRATIVE ORDERS.

(2) (I) THIS PARAGRAPH APPLIES TO TIER 2 RENEWABLE SOURCES
THAT INCINERATE SOLID WASTE.

(II) AT LEAST 80% OF THE SOLID WASTE INCINERATED AT A TIER 2
RENEWABLE SOURCE FACILITY SHALL BE COLLECTED FROM:

1. FOR AREAS IN MARYLAND, JURISDICTIONS THAT ACHIEVE
THE RECYCLING RATES REQUIRED UNDER § 9-505 OF THE ENVIRONMENT ARTICLE;
AND

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