§7–207.4.

    (a)    (1)    In this section the following words have the meanings indicated.

        (2)    “Distributed generation certificate of public convenience and necessity” or “DGCPCN” means a certificate issued by the Commission under this section that authorizes the construction and operation of a distributed solar energy generating system.

        (3)    “Distributed solar energy generating system” means a community solar energy generating system, as defined in § 7–306.2 of this title, that:

            (i)    would be required to obtain a certificate of public convenience and necessity under § 7–207 of this subtitle if the system does not obtain a DGCPCN under this section;

            (ii)    has a capacity to produce more than 2 megawatts but not more than 5 megawatts of alternating current as measured by the alternating current rating of the system’s inverter; and

            (iii)    is not located within a municipal corporation.

        (4)    “Forest” has the meaning stated in § 5–1601 of the Natural Resources Article.

        (5)    “Power Plant Research Program” means the program within the Department of Natural Resources under Title 3, Subtitle 3 of the Natural Resources Article.

        (6)    “Standard licensing conditions” means the predetermined licensing conditions adopted by the Commission under this section for the construction and operation of a distributed solar energy generating system that has been issued a DGCPCN under this section.

        (7)    “Standard siting and design requirements” means the predetermined objective requirements adopted by the Commission under this section for the siting and design of a distributed solar energy generating system that has been issued a DGCPCN under this section.

    (b)    (1)    On or before July 1, 2026, the Power Plant Research Program, after giving notice and opportunity for public comment, shall develop and submit to the Commission proposed standard siting and design requirements and proposed standard licensing conditions for the issuance of a DGCPCN.

        (2)    In developing the proposed standard siting and design requirements and the proposed standard licensing conditions, the Power Plant Research Program shall:

            (i)    consider achievement of the State’s climate and renewable energy commitments;

            (ii)    consider reasonable setbacks and landscape screening requirements;

            (iii)    consider environmental preservation, including prohibitions on forest clearance except where necessary to:

                1.    reduce solar panel shading near the perimeter of the project site;

                2.    facilitate interconnection infrastructure; and

                3.    ensure adequate site access;

            (iv)    consider stormwater management, erosion and sediment control, and site stabilization, accounting for:

                1.    the effects on runoff from solar panels and associated equipment;

                2.    the effects of soil characteristics and compaction on runoff; and

                3.    the effects of the ground cover under and between the solar panels on runoff;

            (v)    consider minimization and mitigation of the effects of a distributed solar energy generating system on historic sites;

            (vi)    consider public safety;

            (vii)    consider industry best practices;

            (viii)    consider ensuring the stability and reliability of the electric system by requiring the applicant to submit a signed interconnection agreement with the electric company before the start of construction;

            (ix)    consider licensing conditions previously adopted by the Commission for solar energy generating systems, including requirements related to decommissioning;

            (x)    ensure the standard siting and design requirements are consistent with § 7–218 of this subtitle; and

            (xi)    consider any other requirements determined necessary by the Power Plant Research Program.

    (c)    (1)    Subject to paragraph (2) of this subsection, on or before July 1, 2027, the Commission shall adopt regulations to:

            (i)    implement standard siting and design requirements and standard licensing conditions for a DGCPCN;

            (ii)    specify the form of the application for a distributed solar energy generating system to receive a DGCPCN and any application fee;

            (iii)    specify the Commission’s procedure for processing an application for a DGCPCN; and

            (iv)    establish the time period within which the Power Plant Research Program must make the determination under subsection (f) of this section.

        (2)    The Commission shall:

            (i)    consider the proposed standard siting and design requirements and the proposed standard licensing conditions developed by the Power Plant Research Program in adopting the regulations under this subsection; and

            (ii)    ensure regulations adopted to implement standard siting and design requirements are consistent with § 7–218 of this subtitle.

        (3)    (i)    The Commission, in consultation with the Power Plant Research Program, may periodically solicit public comments regarding improvements to the standard siting and design requirements and standard licensing conditions for a DGCPCN.

            (ii)    The process for soliciting public comments under subparagraph (i) of this paragraph shall be the same as the process for soliciting public comment regarding the adoption of a regulation.

        (4)    (i)    The Commission and the Department of Natural Resources may jointly set an application fee for a DGCPCN application at an amount that the Commission and the Department of Natural Resources determine may offset the administrative costs of the DGCPCN approval process that are incurred by the Commission and the Department of Natural Resources.

            (ii)    The administrative costs under subparagraph (i) of this paragraph shall be based on an estimate of the number of DGCPCN applications that will be filed with the Commission each year.

    (d)    (1)    A person may not begin construction of a distributed solar energy generating system unless:

            (i)    a DGCPCN is first obtained from the Commission in accordance with this section; or

            (ii)    a certificate of public convenience and necessity is first obtained from the Commission in accordance with § 7–207 of this subtitle.

        (2)    At least 30 days before submitting an application for a DGCPCN to the Commission, the applicant shall submit a copy of the application to the governing body of the county in which the distributed solar energy generating system is proposed to be located.

        (3)    When a person submits an application for a DGCPCN to the Commission, the person shall submit a copy of the application to the Power Plant Research Program.

    (e)    (1)    After receiving an application for a DGCPCN but before a determination is made under subsection (f) of this section, the Commission shall provide an opportunity for public comment and hold a public hearing on an application for a DGCPCN in each county in which any portion of the construction of the distributed solar energy generating system is proposed to be located.

        (2)    The Commission may hold the public hearing virtually rather than in person if the Commission provides a comparable opportunity for public comment and participation in the hearing.

    (f)    (1)    After an application for a DGCPCN is filed with the Commission and within the time period set by the Commission under subsection (c)(1)(iv) of this section, the Power Plant Research Program shall:

            (i)    determine whether the distributed solar energy generating system satisfies the standard siting and design requirements for the DGCPCN; and

            (ii)    notify the Commission in writing as to the determination made under item (i) of this paragraph, including how an application that is determined not to satisfy the standard siting and design requirements can cure the deficiency.

        (2)    In making a determination under paragraph (1) of this subsection, the Power Plant Research Program shall consider public comments received by the Commission.

    (g)    (1)    Within 60 days after the Power Plant Research Program makes its determination under subsection (f)(1) of this section, the Commission shall schedule a hearing to consider the application for a DGCPCN.

        (2)    (i)    At the hearing under paragraph (1) of this subsection, the Commission shall determine whether the proposed distributed solar energy generating system satisfies the standard siting and design requirements.

            (ii)    The Commission shall issue a DGCPCN to an applicant to construct a proposed distributed solar energy generating system subject to the standard licensing conditions if the Commission determines that the proposed distributed solar energy generating system satisfies the standard siting and design requirements.

            (iii)    The Commission may not issue a DGCPCN to an applicant if the proposed distributed solar energy generating system does not satisfy each of the standard siting and design requirements.

        (3)    In making a determination under this subsection, the Commission shall consider public comments received by the Commission under subsection (e) of this section.

    (h)    (1)    A DGCPCN issued by the Commission under this section shall require the person constructing the distributed solar energy generating system to obtain the following permits and approvals from the county, municipal corporation, or soil conservation district in which the system is to be constructed:

            (i)    site plan approval;

            (ii)    stormwater management plan approval;

            (iii)    erosion and sediment control plan approval;

            (iv)    all applicable building and electrical permits; and

            (v)    any additional local permit required by the standard licensing conditions.

        (2)    The provisions of § 7–207(h) of this subtitle shall apply to any permits and approvals required under paragraph (1) of this subsection.

    (i)    A DGCPCN issued by the Commission under this section has the same force and effect as a certificate of public convenience and necessity issued under § 7–207 of this subtitle.