1. A. Targets.

   1. (1) Targets for the cost-effective deployment of new energy storage devices may be established by the Commission in a manner as determined by the Commission or the legislature.
   2. (2) The Commission may assign an administrator individual targets in a manner as determined by the Commission to help meet state energy storage targets pursuant to Public Utilities Article, §7-216.1, Annotated Code of Maryland and to support state policy goals in Public Utilities Article, §§7–801 and 7–802, Annotated Code of Maryland.

   3. (3) An administrator shall propose to the Commission achievable goals for the enrollment of cost-effective energy storage devices in its initiatives in a manner as determined by the Commission.

      1. (a) Targets may be proposed for front-of-the-meter and behind-the-meter energy storage device initiative installations.
      2. (b) Targets may be proposed for energy storage device initiative installations on the electric distribution system and the electric transmission system.
      3. (c) Targets may be proposed for energy storage device deployment using different ownership and operating models.
      4. (d) Targets may consider energy storage device characteristics including but not limited to attributes such as SDES, LDES, and Multi-day ES durations.
      5. (e) Targets may be proposed by electric companies for performance incentive mechanisms for goal achievement and the establishment of retail tariffs to support the Maryland Energy Storage Program.
   4. (4) An administrator shall meet its assigned targets in a cost-effective manner.
   5. (5) If an administrator determines at any time that it cannot meet its assigned targets cost-effectively, the administrator shall make a filing with the Commission seeking to reduce the targets, pursuant to Public Utilities Article, §7-216.1, Annotated Code of Maryland or propose an alternative.

2. B. Counting for Enrollment and Registration.

   1. (1) Administrators shall develop applications to enroll energy storage devices in an initiative.
   2. (2) An energy storage device is enrolled in an initiative on the date the administrator sends notification of enrollment to the applicant.
   3. (3) An administrator shall use information regarding energy storage device enrollments to determine the amount of energy storage devices required to meet end of delivery year targets.
   4. (4) The Maryland Energy Storage Program Manager shall use information regarding registered energy storage devices to determine if end of delivery year targets were met.
   5. (5) A pre-existing energy storage device shall be registered in the Maryland Energy Storage Program on the date it is discovered and cannot be enrolled in an initiative offering a deployment incentive mechanism or a procurement mechanism.
   6. (6) To enroll in an initiative offering a procurement mechanism or a deployment mechanism, an energy storage device shall provide grid services.
   7. (7) An administrator shall not double count an energy storage device participating in two mechanisms for reporting purposes pursuant to Regulation .13 of this chapter.
   8. (8) An energy storage device shall not be enrolled in an initiative offering a deployment incentive mechanism and a procurement mechanism at the same time.
   9. (9) An energy storage device may enroll in an electric company initiative offering a grid services mechanism and be registered in the Maryland Energy Storage Program and counted towards the targets stated in the Public Utilities Article, §7-216.1, Annotated Code of Maryland without enrolling in an initiative offering a procurement mechanism or deployment incentive mechanism.
   10. (10) An energy storage device that is eligible for a deployment incentive mechanism shall receive a deployment incentive from the administrator only after the energy storage device is registered in the Maryland Energy Storage Program.
   11. (11) An electric company shall not enroll an electric-company-owned energy storage device in an initiative in which it is the administrator unless approved by the Commission.
   12. (12) An electric company may enroll an electric company-owned energy storage device in an initiative in which it is not an administrator.

3. C. Grid Services.

   1. (1) Each electric company shall implement necessary retail tariffs or service contracts for energy storage devices to provide grid services and to support initiative targets assigned by the Commission.
   2. (2) Retail tariffs that include grid services shall also recognize the unique role that energy storage plays in reducing peak demand in the development of demand charges.
   3. (3) Energy storage devices providing transmission-level grid services under PJM Interconnection LLC tariffs shall be counted toward achieving the Maryland Energy Storage Program targets set forth in Public Utilities Article, §7-216.1, Annotated Code of Maryland.

4. D. Pre-Existing Energy Storage Devices.

   1. (1) Pre-existing energy storage devices are not eligible to participate in an initiative offering a deployment incentive mechanism or a procurement mechanism.
   2. (2) Pre-existing energy storage devices are eligible to participate in a grid services mechanism.
   3. (3) Pre-existing energy storage devices participating in a grid services mechanism shall be registered in the Maryland Energy Storage Program as a pre-existing energy storage device.

5. E. Administration.

   1. (1) An administrator shall be approved by the Commission in a manner as determined by the Commission.

      1. (a) An electric company may provide administration for an initiative it creates or contract with a third party to provide administration on its behalf.
      2. (b) A State agency may provide administration for an initiative it creates or contract with a third party to provide administration on its behalf.

   2. (2) The Commission shall assign a Commission person, whether internal or contracted, to serve as the Maryland Energy Storage Program Manager to:

      1. (a) Coordinate with administrators on federal and State funding requests;
      2. (b) Manage and report on the status of meeting energy storage targets stated in the Public Utilities Article, §7-216.1, Annotated Code of Maryland;
      3. (c) Coordinate and develop initiative target allocation recommendations; and
      4. (d) Advise the Commission on the plans of their initiatives.
   3. (3) An administrator shall post information on applying for an initiative on an administrator’s website and through other standard promotional methods, as appropriate, and all promotional efforts shall include information to enable prospective owners of eligible energy storage devices to apply for initiatives.
   4. (4) An electric company may identify desired locations for energy storage devices on its website and update this information at least annually.
   5. (5) An administrator shall issue a notice to an energy storage device applicant following its approval or denial for enrollment in its initiative.
   6. (6) An administrator shall make reasonable efforts to apply for all applicable State and federal grants, rebates, tax credits, loan guarantees, and other similar benefits as the benefits become available to help offset the cost of its initiative.
   7. (7) An administrator shall also update initiative data as required in Regulation .13 of this chapter.
6. F. Complaints. Any person may file a complaint with the Commission’s Executive Secretary regarding fairness, transparency, conflicts of interest, and timely resolutions, among other things.

Authority: Public Utilities Article, §§1-101, 2-113, 2-121, 7-207, 7-216, 7-216.1, 7-219, 7–1001, and 7-1005, Annotated Code of Maryland

Effective date: March 30, 2026 (52:6 Md. R. 292)