Political Climate
This year, the main focus of the Maryland General Assembly was the budget. Very few bills passed early on in the session but after the budget bill passed several high profile energy bills made it through.
In January, as the session began, gas and electricity bills were at their highest in years. This led to distrust in the gas and electricity suppliers, and concerns about continued increases. Many Maryland residents pushed their representatives to do something about the prices, despite the fact that the increase in customers’ utility bills was mainly caused by an increase in consumption.
Another pressing issue is the major shortage of electricity supply compared to demand in Maryland. The state imported 36% of its electricity in 2024, and with the construction of data centers and electrification, that number is expected to grow. There is a planned transmission line which will run north to south across the western part of the state to serve DC and the surrounding area. Many land owners and environmentalists are concerned about the land use of such a major construction project. Additionally, the lack of dispatchable electrical supply across PJM has led to a massive increase in capacity prices starting June of 2025. The lack of local generation and transmission constraints caused the highest prices to be in Maryland and Virginia.
Legislation
This is the list of bills tracked by RenewVerde which passed both houses of the Maryland legislature. Most of the bill have been signed into law, but a few of the bills in this list were vetoed by Governor Wes Moore.
Senate Bill 37 and House Bill 121
Electric Companies – Regional Transmission Organizations – Report (Utility Transparency and Accountability Act)
Status: Approved by the Governor
Topics: Utility Oversight
Impact: Low
House Sponsor(s): Charkoudian
Senate Sponsor(s): Hester, Attar Augustine, Brooks, Kagan, Simonaire, and M. Washington
Summary: Electric utilities must report to the PSC how they or their state affiliates vote at PJM.
Senate Bill 116 and House Bill 270
Data Center Impact Analysis and Report
Status: Vetoed by the Governor
Topics: Future Planning, Large Load
Impact: Low
House Sponsor(s): Crosby
Senate Sponsor(s): Lewis Young and Ready
Summary: MDE, MEA, and the UMD School of Business must analyze the impacts of data center development on air quality, water quality and bay restoration, as well as technology to mitigate these impacts. MEA must consider energy requirements, infrastructure requirements and costs, greenhouse gas emissions, and clean energy development. The UMD School of Business must evaluate how data centers will impact jobs and state and local revenues and expenses.
Senate Bill 120 and House Bill 4
Restrictions on Use – Solar Collector Systems – Alteration
Status: Approved by the Governor
Topics: Solar Siting
Impact: Low
House Sponsor(s): Smith
Senate Sponsor(s): Muse
Summary: Community associations, deeds, contracts, declarations, etc. cannot impose restrictions on solar projects which increase the cost of the project by more than 5% or decrease energy generated by more than 10%. The owner must supply documentation verified by an independent expert. Community Associations may limit or prohibit solar in common areas.
Senate Bill 256 and House Bill 49
Environment – Building Energy Performance Standards – Alterations
Status: No Action by Governor; Bill passes into law
Topics: BEPS
Impact: High
House Sponsor(s): Korman @ request of MDE
Senate Sponsor(s): Feldman @ request of MDE
Summary: Buildings with on-site renewable energy will receive credit towards their energy use targets. Buildings using biomethane receive credit towards their greenhouse gas reductions. Energy used as backup power in medical buildings and the production of steam for sterilization in medical buildings is excluded from the BEPS. Hospitals and buildings used for manufacturing are excluded from the BEPS. Buildings handling information for national security are exempt from energy use intensity requirements. The payments and fees collected will be used to fund grant programs for building emissions and energy use reductions.
Senate Bill 266 and House Bill 286
Local Comprehensive Planning and State Economic Growth, Resource Protection, and Planning Policy – Planning Principles
Status: Approved by the Governor
Topics: Land Use
Impact: Low
House Sponsor(s): Korman @ request of Department of Planning
Senate Sponsor(s): Feldman @ request of Department of Planning
Summary: This bill rewrites the land use goals of the state. Maryland intends to create sustainable communities and protect the environment through community input on initiatives. The new goals are to promote environmental protections, conserve natural resources, accommodate all who want to live in the state, provide transportation, housing and services to residents, allow for new development, engage all sectors of communities, include public spaces, and be resilient to human-caused and natural threats.
Senate Bill 399 and House Bill 1270
Natural Resources – Wildland Areas – Overhead Transmission Lines
Status: Approved by the Governor
Topics: Transmission Line Siting
Impact: Low
House Sponsor(s): McKay
Senate Sponsor(s): Hinebaugh
Summary: The NextEra transmission line must run parallel to the current Potomac Edison line, be within 200 feet of it, and minimize forest and habitat loss when going through the Bear Pen Wildland, Big Savage Mountain Wildland, and Dan’s Mountain Wildland. Transmission line applicants must include wildland impact mitigation, replace any type 1 state wildland with suitable land that is twice the acreage of the wildland removed, and have a land conservation and management plan for the area affected by the transmission lines.
Senate Bill 425 and House Bill 902
Environment – Coal Combustion By-Products – Fees, Coordinating Committee, and Regulations
Status: Approved by the Governor
Topics: Coal Plants, Carbon Tax
Impact: Moderate
House Sponsor(s): Lehman, Fennell, Foley, Guyton, Harris, R. Lewis, J. Long, Pruski, Ruth, Stein, Terrasa, and Woods
Senate Sponsor(s): M. Jackson
Summary: Coal combustion will pay a fee per ton of by-products based on the types of by-products, if they are used or disposed of, if they are taken out of state, and if they are in landfills or storage units (with some exceptions). Coal combustion by-products used beneficially or for coal mine reclamation do not have to pay a fee. Fees for by-products taken out of state will be less than 50% of the fee for in-state use or disposal. This bill also creates the Coal Combustion Byproducts Coordinating Committee, which will discuss the monitoring of coal combustion byproduct sites and discuss current and further actions to take.
Senate Bill 909 and House Bill 1037
Energy Resource Adequacy and Planning Act
Status: Vetoed by the Governor
Topics: Future Planning
Impact: Medium
House Sponsor(s): Crosby
Senate Sponsor(s): Hester
Summary: This bill creates the strategic energy planning office. Every three years, the office develops a report to analyze financial, resource adequacy, and reliability risks and cost effective solutions. The report will contain 20 year projections for electricity load and energy demands based on transmission zones and electric service territories, as well as low, medium, and high projections for meeting state energy goals and needs. For each of these scenarios they will consider the resource adequacy, reliability, and financial impacts. They will examine different energy mixes, different approaches for meeting the state’s clean energy goals, improvements to current resources, importing energy vs in state development, risks from retiring plants, new programs, modifying existing programs, legislative changes, regulatory changes, cost factors, and market impacts. The office will also evaluate the impacts of proposed legislation. The PSC will study independent distribution operators. The Department of Transportation will study how to reduce transmission constraints through current rights-of-way. MEA will obtain or create a power flow analysis for system reliability related to plant retirements.
Senate Bill 931 and House Bill 1036
Public Utilities – Generating Stations – Generation and Siting (Renewable Energy Certainty Act)
Status: Approved by the Governor
Topics: Solar Siting, Storage Siting
Impact: High
House Sponsor(s): Wilson and Crosby
Senate Sponsor(s): Feldman
Summary:
Solar: Ground mount solar plants larger than 1 MW can avoid local jurisdiction restrictions if they meet certain requirements. These requirements include: 150 foot buffer from residential buildings, 100 foot buffer from property lines, fencing, landscaping buffer or vegetative screenings, maintenance of vegetation, minimize grading and landscaping, post a landscaping bond, comply with environmental regulations, and do not emit light overnight. Solar developers who enter into less strict agreements with the county government are considered to have met the necessary requirements. However, local jurisdictions may not deny site development plans which meet these requirements, must expedite the approval of site development plans, and process site development plans as permitted use if they are under 5 MW. The exceptions to this are that projects larger than 5 MW cannot be in currently designated medium or high density residential areas, mixed use areas with residential components, or tier 1 or tier 2 growth areas, and county governments can limit solar development on currently designated priority preservation areas once 5% of them have been used.
There are a few other miscellaneous items in this bill with regard to solar. A solar plant must post a surety bond of not more than 125% of the estimated cost of decommissioning the plant and execute a bond true-up every 5 years. When applying for a CPCN or approval from the local jurisdiction the developer must include proof that they have an agreement with the county government or meet the above requirements. In overburdened areas, two public meetings are required. Community solar projects can exceed 2 MW if they are on rooftops. The state government will analyze what state-owned land is suitable for solar development and publish this data.
Storage: Upon applying to build front of the meter connected storage projects the PSC will inform the local governments, representatives, and nearby residents of the project. If it is in an overburdened area the developer must hold 2 public meetings. If the storage project is not at a commercial or industrial location then fencing, vegetative screening, and minimizing grading may be required by the local jurisdiction. The local jurisdiction cannot deny a site development plan for storage which meets these requirements or adopt zoning laws to prevent storage. They must have a standard process for front of the meter energy storage and expedite the review of storage projects.
Residential Rooftop Solar: Residential solar providers must provide a 5 year warranty, manufacturers warranties, and inform the buyer of weather adjusted energy production levels. The Department of Labor will develop a license for solar installers.
Other: For resource adequacy, the PSC will study ways to procure more energy generation on the distribution grid, through electric companies building the projects.
Senate Bill 937 and House Bill 1035
Electricity and Gas – Emissions Reductions, Rate Regulation, Cost Recovery, Infrastructure, Planning, Renewable Energy Portfolio Standard, and Energy Assistance Programs (Next Generation Energy Act)
Status: Approved by the Governor
Topics: Utility Oversight, Large Load, Storage, Nuclear, Dispatchable Resources, Programs, Renewables
Impact: High
House Sponsor(s): Jones and Wilson
Senate Sponsor(s): Ferguson, Feldman, Attar, Brooks, Simonaire, and M. Washington
Summary:
Utility Oversight: Utilities must include use of internal labor vs contractual labor in base rate proceedings. Gas companies may file a development plan and cost recovery plan for infrastructure projects which improve safety and reliability. The plan must include the timeline for each project, the expected life, estimated cost, customer benefits, comparison with other alternatives, and a plan to notify customers. Surcharges for infrastructure projects are in place for 5 years. If the implementation of the plan costs less than the amount collected, the customers are refunded. Utilities may file a multiyear rate plan if the PSC determines it is in the public interest. Gas utilities must analyze non-pipeline alternatives. The commission may adopt an alternative form of regulation if it protects consumers, ensures quality, availability, reliability, and is in the interest of the public. Alternative forms of regulation can be price regulation, revenue regulation, ranges of authorized returns, rate of return, categories of services, or price indexing.
Large Load: Large load customers have an aggregate monthly demand of at least 100 MW and a load factor of 80% or higher. Maryland states that residential customers should not have to bear the risks of large load interconnecting in MD. Each electric company must create a specific rate load schedule for large load customers to accomplish this, and new or expanding large load customers will not be allowed to take service under any other schedule. The rate schedule will include the costs associated with transmission and distribution upgrades to interconnect or serve the large load customer and protect reliability through load ramp periods, long term contract, guarantee and collateral requirements, minimum billing demand, and penalties and reimbursements for project cancellations. Before signing a contract for service, large load customers must submit a request for a load study, designate a specific site, and have the land rights. Until Maryland is not a net importer of electricity, a generator cannot co-locate with a large load in a way that bypasses the distribution or transmission systems. This does not apply to generators smaller than 70 MW that are designed to provide on site electricity, generators smaller than 25 MW where 10% of the energy is used on site, or generators under 2 MW. If the load does not interconnect directly with the electric transmission or distribution system and the generator output is increased or is built to meet 100% of the large loads’ demand, co-locating is allowed but the generating station and large load can have any direct or indirect costs and fees, normally applied to retail electric customers, applied to them. This does not apply to microgrids that are not grid tied.
Nuclear: It is the goal of the state to develop nuclear energy. MEA will pursue cost sharing agreements with neighboring states and agreements to site SMRs on federal land or near federal facilities. Companies may apply to build or expand nuclear plants. The application must include a detailed description, financing plan, analysis on income, wages, employment, taxes, impacts on residential, commercial, and industrial electricity customers, long term effects on energy and capacity, effects on businesses, the environment, health, and economy, decommissioning and waste storage, location, timeline, feasibility, long-term pricing schedule, and community benefit agreements. Plants will receive zero emission credits to make up any difference between the wholesale market price and the price in their long term pricing schedule, with a cap and adjustments determined by the PSC every 2 years.
Distribution Connected Storage: Maryland has a goal of reaching 150 MW of distribution connected storage, with each electric utility being responsible for an amount based on their service load and other criteria established by the PSC. Each utility will submit a plan of how they will meet the requirement with a goal of 30% of the storage being owned by a third party. All storage projects must be online within 18 months of the plan being approved. Each storage project must be cost effective in terms of avoided emissions and avoided transmission upgrades. These storage projects must include a decommissioning plan.
Transmission Connected Storage: The PSC will establish a competitive process to procure transmission connected front-of-the-meter storage. They will have a solicitation for up to 800 MW of storage before January 2026, and a solicitation for up to 800 MW before January 2027. The PSC will take up to 10 months to select a project and projects must be built within 24 months after selection, although this timeline can be extended. Applications must include a 15 year pricing schedule, cost-benefit analysis including locational value, long duration storage applications, avoided transmission costs, avoided emissions, and reliability. The PSC will ensure proposed projects have an interconnection agreement with PJM, can deliver their nameplate capacity, and have a community benefit agreement. They will also evaluate projects based on developer experience, interconnection queue status, site control, safety plans, decommissioning plan, etc. Selection for the program replaces the CPCN process. All PJM capacity revenue will be paid back to MD customers, but the storage projects can keep any revenue from energy or ancillary services.
Government Programs: The department shall provide energy efficiency, conservation, demand response, and electrification programs to low income individuals to achieve greenhouse gas emissions goals. The programs should produce at least 0.9% reduction in ghg emissions from 2016 levels. The state will reevaluate the current programs and make sure they comply with the targets established. Greenhouse gas reductions and savings must be evaluated in a way that is consistent with the US Department of Energy. The bill also modifies the Maryland Strategic Energy Investment Fund to allow it to be used to refund residential customers based on their consumption as a legislative energy hardship credit during a peak summer month and a peak winter month each year.
Dispatchable Energy Development: By October 1, 2025 the PSC will issue solicitations for proposals for the construction or expansion of dispatchable plants, defined as plants with ELCC ratings above 65% (gas CC, offshore wind, 10-hour storage, DR, nuclear, gas CT dual fuel) and lower emissions than coal or oil, as well as solicitations for large capacity resource plants which have capacity over 20 MW after ELCC is taken into account, and are currently in the PJM queue. The plants which answer the proposals must include a timeline, location, retrofit or new site, the emissions intensity of the generation output, and if applicable the use of co-located renewables, storage, carbon capture, and hydrogen or zero emissions biofuels that will be mixed with natural gas. Gas plants must be convertible to hydrogen or to a zero-emissions biofuel. Up to 10 (more if necessary) accepted plants can be put through the expedited CPCN process, and if possible 4 of them will be transmission connected battery projects or other non-emissions emitting projects for every emissions emitting plant. Dispatchable plants will be prioritized over large capacity resources. The combined capacity of approved gas and large capacity plants must be less than 3109 MW.
Other: Removes waste-to-energy and refuse derived fuel from the definition of tier 1 renewables. The PSC, OPC, MEA, MDE, and Dept. of Natural Resources can issue competitive bids for consultants above their small procurement limits for work on issues with legislatively mandated time frames related to climate change, emissions, energy, and the environment.
Notes: This bill was heavily amended in the last few days of the session. The storage requirements, separate price schedules for large loads, and support for new nuclear energy appear to be taken and adapted from the Abundant Affordable Clean Energy – Procurement and Development (HB398 and SB316) from Lorig Charkoudian and Benjamin Brooks. Removing waste-to-energy and refuse derived fuel was from the Reclaim Renewable Energy Act (HB220 and SB10). Both of those bills failed.
House Bill 984
Public Utilities – Electric Cooperatives – Rate Proceedings
Status: Approved by the Governor
Topics: Utility Oversight
Impact: Low
House Sponsor(s): Crosby
Summary: The commission can suspend proposed rates for an electric cooperative and institute proceedings to determine if additional revenues are required for them to maintain their debt service coverage ratio. During this, the electric cooperative must advertise about the proposal and have a public hearing. The PSC may lower the debt service coverage ratio for an electric cooperative.
House Bill 1111
Public Utilities – Solar Energy Generating Systems – Systems Located on or Over Water Retention Ponds, Quarries, or Brownfields
Status: Approved by the Governor
Topics: Small Solar
Impact: Low
House Sponsor(s): Fraser-Hidalgo
Summary: Solar projects between 20 KW and 5 MW located on a retention pond or quarry which was or is designated for industrial use, qualify for the Small Solar Energy Generating System Incentive Program. A municipality may grant a tax credit against the local property tax for a non-residential solar project on a brownfield, water retention pond, or quarry which was or is designated for industrial use.
Prominent Legislators
These are the legislators who had the biggest impact on energy legislation or who took the most interest in changing energy policy.
Maryland State Senators
Brian Feldman
Chair of the Senate Education, Energy, and the Environment Committee.
Party: Democrat
District 15, Montgomery County
Brian Feldman was the primary sponsor on several energy bills this year and in recent years. Energy is one of his main concerns in the legislature.
Email: brian.feldman@senate.state.md.us
Phone: 410-841-3169
Bill Ferguson
Senate President
Party: Democrat
District 46, Baltimore City
As president of the senate, Bill Ferguson is greatly influential. This year he introduced a few major pieces of energy legislation, often working with Senator Feldman.
Email: bill.ferguson@senate.state.md.us
Phone: 410-841-3600
Katie Fry Hester
Senate Education, Energy, and the Environment Committee member
Party: Democrat
District 9, Howard and Montgomery Counties
Katie Fry Hester introduced several bills on energy this session mainly focused on utility oversight and planning for future infrastructure development.
Email: katiefry.hester@senate.state.md.us
Phone: 410-841-3671
Benjamin Brooks
Senate Education, Energy, and the Environment Committee member
Party: Democrat
District 10, Baltimore County
Benjamin Brooks took a greater interest in energy policy this year. He often co-sponsored energy bills, and introduced bills in partnership with Lorig Charkoudian in the House.
Email: benjamin.brooks@senate.state.md.us
Phone: 410-841-3606
Maryland State Delegates
C.T. Wilson
Chair of the House Economic Matters Committee
Party: Democrat
District 28, Charles County
C.T. Wilson sponsored several bills on energy this year and is the chair of the house committee which hears almost all energy bills.
Email: ct.wilson@house.state.md.us
Phone: 410-841-3325
Brian Crosby
House Economic Matters Committee Member
Party: Democrat
District 29B, St. Mary’s County
Brian Crosby has been a leader on energy bills for several years. He typically focuses on utility oversight and customer protections, but he sponsored several bills this year across all parts of the energy sector.
Email: brian.crosby@house.state.md.us
Phone: 410-841-3227
Lorig Charkoudian
House Economic Matters Committee Member
Party: Democrat
District 20, Montgomery County
Lorig Charkoudian has put in several bills on renewable energy over the last few years. She also supports legislation on battery storage and energy resiliency.
Email: lorig.charkoudian@house.state.md.us
Phone: 410-841-3777
Future Issues
Transmission Line CPCN Process:
This year, several bills which required electric companies to consider alternatives to transmission lines before receiving CPCN approval were introduced in the House of Delegates. One of the Bills, HB829, Public Utilities – Transmission Lines – Advanced Transmission Technologies, passed the house but did not get out of committee in the Senate. We expect to see similar legislation to this in a future session.
Solar Alternative Compliance Payments:
The solar alternative compliance payments decay each year, but there will likely be a bill to keep them at their current rate in an upcoming session. This was part of the ENERGIZE Act (SB 434 and HB505) this year, which was a bill that came from democratic party leadership but failed.
Nuclear Energy:
There may be additional efforts to create a requirement for nuclear energy through the RPS or a similar program. As small modular nuclear reactors come online throughout the country, Maryland will push to develop them in the state.