§7–207.2.

    (a)    In this section, “generating station” does not include:

        (1)    a generating unit or facility that:

            (i)    is used for the production of electricity;

            (ii)    has the capacity to produce not more than 2 megawatts of alternating current; and

            (iii)    is installed with equipment that prevents the flow of electricity to the electric grid during time periods when the electric grid is out of service;

        (2)    a combination of two or more generating units or facilities that:

            (i)    are used for the production of electricity from a solar photovoltaic system or an eligible customer–generator that is subject to the provisions of § 7–306 of this title;

            (ii)    are located on the same property or adjacent properties;

            (iii)    have the capacity to produce, when calculated cumulatively for all generating units or facilities on the property or adjacent property, more than 2 megawatts but not more than 14 megawatts of alternating current; and

            (iv)    for each individual generating unit or facility:

                1.    has the capacity to produce not more than 2 megawatts of alternating current;

                2.    is separately metered by the electric company; and

                3.    does not export electricity for sale on the wholesale market under an agreement with PJM Interconnection, LLC;

        (3)    a generating unit or facility that:

            (i)    is used for the production of electricity for the purpose of:

                1.    onsite emergency backup at a facility when service from the electric company is interrupted due to electric distribution or transmission system failure or when there is equipment failure at a site where critical infrastructure is located; and

                2.    test and maintenance operations necessary to ensure functionality of the generating unit or facility in the event of a service interruption from the electric company due to electric distribution or transmission system failure or when there is equipment failure at a site where critical infrastructure is located;

            (ii)    is installed with equipment that prevents the flow of electricity to the electric grid;

            (iii)    is subject to a permit to construct issued by the Department of the Environment; and

            (iv)    is installed at a facility that is part of critical infrastructure if the facility complies with all applicable regulations regarding noise level and testing hours; or

        (4)    a combination of two or more generating units or facilities that satisfy item (3) of this subsection.

    (b)    This section applies to a person who constructs a generating station that:

        (1)    has the capacity to produce more than 2 megawatts of electricity, as measured by the alternating current rating of the system’s inverter, from a solar photovoltaic system; and

        (2)    is exempted under § 7–207(b)(1)(ii) of this subtitle from the requirement to obtain a certificate of public convenience and necessity.

    (c)    (1)    A person shall file an application for approval to construct a generating station under § 7–207.1 of this subtitle at least 6 months before construction commences.

        (2)    The Commission shall require a person who files an application for approval to construct a generating station to pay a deposit of 1% of total installed costs.

    (d)    (1)    The Commission shall place any deposits collected under subsection (c) of this section into an escrow account.

        (2)    If a person demonstrates to the Commission that the person is fully authorized to commence construction within 18 months after filing an application for approval, the Commission shall refund the deposit, less reasonable administrative costs.

        (3)    (i)    Subject to subparagraph (ii) of this paragraph, if a person does not commence construction within 18 months after filing an application for approval, the money held in the escrow account shall be:

                1.    deemed to be abandoned; and

                2.    transferred to the Maryland Strategic Energy Investment Fund under § 9–20B–05 of the State Government Article, less reasonable administrative costs.

            (ii)    1.    A person may request an extension for a project that does not commence construction within 18 months after the filing of an application for approval.

                2.    The Commission may grant the request based on factors the Commission considers compelling, including the occurrence of events outside the person’s control.