This article is part of MACo’s Policy Deep Dive series, where expert policy analysts explore and explain the top county policy issues of the day. A new article is added each week – read all of MACo’s Policy Deep Dives. 

For years, stakeholders in Annapolis have wrestled with solutions to address the biggest challenges surrounding renewable energy. The 2024 legislative session began with high hopes of a compromise bill but ended without such a resolution. Since then, key stakeholders, including the Administration, the environmental community, energy industry, and counties, have been developing legislation that acknowledges Maryland’s competing goals and paves the way for achieving them. Earlier this week a draft of that effort was made public. In this week’s deep dive, we examine what is shaping up to be the brightest bill of 2025.

IMPORTANT NOTES

• This draft is approximately 80%-90% complete, but readers should anticipate some variation when a final bill is published in January.
• This draft does not alter the state’s preemption of local land use authority related to the siting of energy projects.
• This draft in no way affects lands under an easement.

Definitions

• In this section, the following terms have the following meanings:
  • Agrivoltaics means the simultaneous use of areas of land, which shall be maintained in Agricultural Use Assessment as determined under Title 18 and Maryland Assessment Procedures Manual in consultation with the Maryland Department of Agriculture, for both solar power generation, excludes the use of grazing or pollinators, and:
    • Raising grains, fruits, herbs, melons, mushrooms, nuts, seeds, tobacco, or vegetables;
    • Raising poultry, including chickens and turkeys, for meat or egg production
    • Dairy production, such as the raising of milking cows;
    • Raising livestock, including cattle, sheep, goats, or pigs;
    • Horse boarding, breeding, or training;
    • Turf farming;
    • Raising ornamental shrubs, plants, or flowers, including aquatic plants;
    • aquaculture,
    • Silviculture; or
    • Any other activity as determined under Title 18 and Maryland Assessment Procedures Manual in consultation with the Maryland Department of Agriculture, except pollinator habitat and apiaries.
  • Compensatory Preservation Contribution means a per acre contribution made to counties when solar energy generating systems are developed in identified agricultural preservation, conservation, or historic preservation areas.
  • Agricultural preservation, conservation, or historic preservation areas mean areas, individual properties, or portions of properties that, because of their recognized agricultural, natural resource, or cultural value, have been identified by federal, state, or local governments as priorities for preservation or conservation. This does not include land under easements.
  • Project area means the limit of disturbance as defined by the Power Plant Research Program (PPRP). A project area may be one or more contiguous parcels or properties under the same ownership or lease agreement.
  • Solar Development Corridor means a corridor which encompasses two miles in either direction from the center line of a transmission lines of 69KV or greater that are fully constructed and operational as of July 1, 2025. In Calvert County, the Solar Development Corridor shall extend one mile in either direction from the center line of a transmission lines of 69KV or greater.
    • NOTE: Calvert’s unique geography and challenges with erosion necessitated a smaller corridor. 
  • Solar energy generating system means a ground-mounted solar array and accessory equipment, buildings or facilities that generate, maintain, operate, manage, store, distribute and transmit power. A solar energy generating system does not include projects which are built over roads, parking lots, or roadway medians. The size of a solar energy generating system is determined by the projects interconnection agreement.
    • NOTE: Some clarifying questions remain about the definition of “accessory equipment” and which equipment is a utility’s responsibility versus a solar project’s. This distinction will be clarified in a final draft.

Above 5MW versus Below 5MW

NOTE: Due to several factors, including scale, resource requirements, and economics, a distinction is drawn between projects above and below 5 megawatts (MW) of expected capacity. 

Ground Mount Solar Energy Generating Systems Above 5MW

• Solar Development Corridor
  • The state shall establish a Solar Development Corridor.
  • For solar energy generating system applications above 5MW and going through the Certificate of Public Convenience and Necessity (CPCN) process, local governments shall process applications as permitted uses subject to standard site plan provisions. Local jurisdictions may not establish solar energy generating system siting policies more restrictive than those enumerated.
  • A project area that is at least 70% within the Solar Development Corridor shall be treated as if they are fully within the Solar Development Corridor.
  • Counties shall analyze the Solar Development Corridor within their jurisdiction to determine parcels within established agricultural preservation, conservation, or historic preservation areas.

NOTE: The state will create a Solar Development Corridor for projects over 5MW to encourage utility-scale development. Local authority on livability will be strengthened with guardrails, enabling counties to preserve their communities’ character. This provides predictability for communities, counties, and developers. 

• Project Areas Within the Solar Development Corridor
  • If a project area overlaps with an area designated by July 1, 2025, as an agricultural preservation, conservation, or historic preservation area, the applicant shall be required to pay a Compensatory Preservation Contribution of $3500 per acre. Payment must be made prior to the issuance of County permits.
  • The Compensatory Preservation Contribution shall be paid to the counties and must be used for agricultural preservation, conservation, historic preservation, or related support programming.
  • Each year on October 1, starting October 1, 2026 the value of a Compensatory Preservation Contribution shall increase five percent.

• Project Areas Outside the Solar Development Corridor
  • If a project area overlaps with an area designated by July 1, 2025 as an agricultural preservation, conservation, or historic preservation area, the developers shall be required to pay a Compensatory Preservation Contribution equal to $5000 per acre. Payment must be made prior to the issuance of County permits.
  • The Compensatory Preservation Contribution shall be paid to the counties and must be used for agricultural preservation, conservation, historic preservation, or related support programming.
  • Each year on October 1, starting October 1, 2026 the value of a Compensatory Preservation Contribution shall increase five percent.

NOTE: These sections balance state priorities on preservation and renewable energy. Solar projects often target preserved farmland, causing conflict between communities and developers. This mechanism takes a step toward resolving this by requiring developers to help preserve farmland when they convert it for solar use.

• Brownfields
  • Project areas located within a brownfield, as identified by the Maryland Department of the Environment, shall be treated as if they are fully within the Solar Development Corridor regardless of their location within a county.

• State Actions
  • All solar energy generating systems that require or benefit from state or federal funds, permits, or licenses will be reviewed for impacts to historic properties by the Maryland Historical Trust as required by the Maryland Historical Trust Act of 1985 as amended, State Finance and Procurement Article §§ 5A- 325 and 5A-326, and Section 106 of the National Historic Preservation Act  as amended, along with its implementing regulations 36 CFR Part 800.

Ground Mount Solar Energy Generating Systems  5MW & Below

• Local Processing
  • For solar energy generating system applications below 5MW, local governments shall process the application as permitted uses subject to administrative project review standards.
  • Local jurisdictions may not establish solar energy generating system siting policies more restrictive than those enumerated.
  • Accessory solar energy generating systems that are mounted on a building or on the ground which generate electricity in an amount that does not exceed 200% of the electric consumption of the principal use of a property are not subject to these enumerated provisions but must comply with local land use and building code requirements.

NOTE: Projects below 5MW shall be reviewed and permitted by counties through an administrative process. Local authority on livability will be strengthened with guardrails, enabling counties to preserve their communities’ character. Accessory solar energy generating systems shall not be required to comply with state standards but must comply with local requirements. This provides predictability for communities, counties, and developers. 

• 5MW & Below
  • If a project area overlaps with an area designated by July 1, 2025 as an agricultural preservation, conservation, or historic preservation area, the developers shall be required to pay a Compensatory Preservation Contribution equal to $3500 per acre. Payment must be made prior to the issuance of County permits.
  • The Compensatory Preservation Contribution shall be paid to the counties and must be used for agricultural preservation, conservation, historic preservation, or related support programming.
  • Each year on October 1, starting October 1, 2026 the value of a Compensatory Preservation Contribution shall increase five percent.

NOTE: This section balances state priorities on preservation and renewable energy. Solar projects often target preserved farmland, causing conflict between communities and developers. This mechanism takes a step toward resolving this by requiring developers to help preserve farmland when they convert it for solar use.

Agrivoltaics

• Projects which qualify as agrivoltaics shall be exempted from providing a Compensatory Preservation Contribution.

NOTE: Agrivoltaic projects, which keep farmland productive while generating electricity, will be incentivized by exempting them from the Compensatory Preservation Contribution. Enforcement mechanisms are still being negotiated.

Solar Energy Generating System Siting Standards

NOTE: This section strengthens local authority on livability with guardrails. 

• (A) All solar energy generating systems shall be subject to the solar energy generating system siting standards.
• (B) The applicant shall register all solar energy generating systems with the county emergency response services. The registration shall include a map of the solar facility noting the location of the solar collectors and the panel disconnect.
• (C) A local government shall require a standard process for the review and approval of site development plans for solar energy generating systems over 5MW, including the review and approval of the site plan by the Planning Commission.
• (D) A local government shall require a standard process for the administrative review and approval of solar energy generating systems that are 5MW or less.
• (E) Setbacks for solar energy generating systems will be measured from the nearest solar array or accessory equipment, buildings or facilities that generate, maintain, operate, manage, store, distribute, and transmit power to the property boundary. A local government may establish less restrictive setbacks, but setbacks for solar energy generating systems may not exceed:
  • 100 feet from all property lines, excluding property lines that bisect the interior of a project area;
  • 150 feet from nearest wall of residential structure
  • Fencing shall not be placed closer than 50 feet from the edge of a dedicated, prescriptive, or comprehensively planned public road right of way.
  • With the exception of equipment required by the local utility for interconnection into grid infrastructure, no solar array or accessory equipment, buildings, or facilities shall be located within a dedicated, prescriptive, or comprehensively planned public road right of way.
• (F) Visual impacts of solar facilities on preservation areas, such as rural legacy areas, agricultural preservation areas, public parks, scenic rivers and byways, designated heritage areas, historic structures or sites listed on or eligible for the National Register of Historic Places or a County Register of Historic Places, must be minimized.  A viewshed analysis must be submitted as part of the county application to assure that visual impacts are minimized through solar panel placement, height, landscaping, and screening.
• (G) Landscape Buffer:
  • (1) A landscape buffer that is a minimum of 35 feet wide must be provided along all property lines or along the exterior boundary of the solar energy generating system. Alternative landscape buffer locations may be proposed within the boundary of the project site where the alternative buffer location maximizes the effectiveness of the screening effort. The buffer must be designed to provide four-season visual screening of the solar energy generating systems and include multi-layered, staggered rows of overstory and understory trees and shrubs that are a mix of evergreen and deciduous vegetation, with an emphasis on species that are native to the area. A County may require a landscape buffer of up to 50 feet where deemed necessary to meet the requirements of (F) above.
  • (2) The landscape buffer must be installed as early in the development process as practicable and prior to activation of the solar energy generating systems.
  • (3) The size of trees and shrubs at the time of planting must accommodate adequate screening or buffering by the end of 3 years of planting. Vegetation used to establish a visual screen must not be trimmed to stunt upward and outward growth or to otherwise limit the effectiveness of the visual screen.
  • (4) If security fencing is proposed, a landscape buffer must be placed between the fence and the public view. Wire mesh shall be black or green vinyl. No barbed or razor wire may be used on the security fencing around the solar energy generating system. Fencing shall be installed at the interior edge of the landscape buffer or immediately adjacent to the solar energy generating system.
  • (5) If forest or hedgerows exist where screening or buffering is required, it must be preserved to the maximum extent practicable and supplemented with new plantings where necessary to provide the desired screening or buffering.  Existing noninvasive vegetation may be used for meeting the landscape buffer requirement, subject to meeting the requirements under (G)(1) and (G)(6).
  • (6) All landscaping, screening, and buffering must be maintained in living condition for the life of the solar energy generating systems via a maintenance agreement that includes a means of irrigation. A County may elect to require a landscape surety. Such a surety will be held by the local government for up to three years and upon inspection, may release up to 50% and then be held for three additional years to determine the plant material has been maintained in good health. The local government reserves the right to inspect and require replacement of plant material.
•  (H) Grading
  • (1) Grading shall be minimized to the maximum extent practicable to preserve agricultural soils and prevent soil erosion.
  • (2) Topsoil shall not be removed from parcel or stockpiled.

• (I) Use of herbicides to control vegetation is strongly discouraged and may only be used for the purpose of controlling invasive species after consultation with MDA.
• (J) For projects or portions of projects not used for agrivoltaics, native pollinator plant species or native meadow species shall be planted and maintained throughout the solar project’s life. The seed mix shall include a diversity of species with varied bloom times. Mowing shall be limited and performed on a schedule that promotes the establishment of the native plantings, controls invasive species, and avoids impacts to wildlife (pollinating, nesting, etc.).
• (K) Except as required for safety or by applicable Federal, State, or local authority, no visible light shall emanate from the solar energy generating systems from dusk to dawn during operations.
• (L) Local governments shall apply environmental setbacks and buffers consistent with the requirements applied to commercial or industrial land uses.
• (M) Height- Maximum height of 15 feet for all solar energy generating systems and accessory structures, unless providing agrivoltaics with farming operations beneath solar panels.
• (N) Decommissioning and Restoration of the Property
  • (1) The property owner or applicant must provide a decommissioning and restoration plan prior to construction. A County may elect to adopt decommissioning and restoration requirements consistent with those established by the PSC.
  • A bond or other financial assurance shall be required to assure complete removal of a solar energy generating system. Equal to an estimate of the costs associated with the removal of the solar array minus any salvage value. The financial assurance shall be automatically renewable. The amount shall include a mechanism for calculating increased removal costs due to inflation to ensure the amount is adequate for the cost of removal and restoration of the site. A financial assurance provided to satisfy the conditions of the Maryland Public Service Commission’s Certificate of Public Convenience and Necessity may satisfy a county financial assurance requirement provided it complies with the foregoing and is enforceable by the County.
  • The financial guarantee must be provided prior to the issuance of a building permit or grading permit, whichever is applied for first. Notice must be provided to the PPRP within 30 days of the sale or transfer of the lease or property and a new financial guarantee must be provided by the new lease holder or property owner.
  • When the solar energy generating system ceases to generate electricity, does not input electricity into the electric grid for 12 consecutive months (unless notice for repowering is filed with the PSC,) or the lease for the site expires, all local approvals will terminate automatically.  The property owner or applicant shall update the decommissioning plan cost estimate and corresponding approved financial instrument every five years after the PSC’s approval of the first decommissioning plan to adjust for inflation and any other necessary changes. Removal of the solar energy generating system will begin within 90 days after termination of the approval, and restoration of the property to the condition that existed prior to the installation of the solar energy generating panels and accessories will be completed within six months of the start of solar panel removal. Restoration will include the removal from the property of all above-ground facilities, as well as all underground footings, supports, wires, materials, fences, and berms. Only like-kind topsoil may be used for restoration.
  • (2) The property owner or owner of the solar energy generating system must provide notice to the County and the PSC when the lease for the site expires, when the solar facility ceases to generate electricity, or does not input electricity into the grid for 60 days or longer, unless due to routine maintenance activity.
• (O) Community Meetings
  • (1) Solar developers shall hold at least one publicly advertised community meeting in the within 20 miles of the proposed solar energy generating system prior to applying for a CPCN to collect community feedback and provide opportunities for the solar developer to address concerns prior to filing for a CPCN or local approval.
  • (2) In underserved or overburdened communities, solar developers shall hold at least two publicly advertised community meetings in the vicinity of the proposed solar energy generating system prior to applying for a CPCN to collect community feedback and provide opportunities for the solar developer to address concerns prior to filing for a CPCN or local approval.
  • (3)Public notice of these community meetings shall be posted at least 14 days prior to the meeting date.

Payment in-leu of taxes

• The governing body of a county shall exempt or partially exempt a solar energy generating system from the county real or personal property tax if the owner of the system and the county enter into a payment in lieu of taxes agreement, approved by ordinance of the legislative body of the county, that specifies:
  • that the owner of the system shall pay to the county each year in lieu of the payment of county real or personal property taxes during the term of the agreement the sum of $8000 per megawatt of generating capacity of the system, as measured by the alternating current rating of the system’s inverter;
  • the term of the agreement; and
  • that each year after the expiration or termination of the agreement, full real and personal property taxes shall be payable on the property.