November 24, 2024
Maryland Legislature Ends Session with Big Wins for Clean Energy
Bills Would Expand LMI Community Solar, Set Targets for Energy Storage and Clean Trucks
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In addition to the POWER Act, Maryland also approved bills aimed at growing markets for energy storage, community solar and zero-emission heavy-duty trucks.

Offshore wind isn’t the only clean energy technology that got a boost in the Maryland General Assembly this year.

In addition to the Promoting Offshore Wind Energy Resources (POWER) Act (S.B. 781), raising the state’s goal for offshore projects to 8.5 GW by 2031, the state legislature also approved bills aimed at growing markets for energy storage, community solar and zero-emission heavy-duty trucks. (See Md. Legislature Sends POWER Act to Governor’s Desk.)

All told, at least 12 clean energy and transportation bills were passed in the final days of the session and are now sitting on Gov. Wes Moore’s (D) desk. Moore has signaled strong support for the POWER Act but has yet to make statements on some of the other legislation.

House Bill 910, for example, would require the Maryland Public Service Commission to establish an energy storage program, with the goal of putting 750 MW of storage capacity online by 2027, 1,500 MW by 2030 and 3,000 MW by 2033.

Evan Vaughan, deputy director of renewable energy trade group MAREC Action, said the bill would help Maryland leverage the new 30% investment tax credit for standalone storage in the Inflation Reduction Act.

“You often need complementary state policies to work in tandem with most federal policies to really encourage a new market to take off,” Vaughan said in an interview with NetZero Insider. “That’s exactly what this legislation … will do. It’s a huge step forward.”

The Climate Solutions Now Act of 2022 (S.B. 528) commits the state to reducing its greenhouse gas emissions 60% by 2031 and to net zero by 2045, which means “there’s going to be a lot of clean energy capacity needed,” Vaughan said. “As you get to those really high grid penetrations of renewables in Maryland, it’s important to have a storage industry that’s there, that’s established, that’s ready to ensure the grid continues to operate reliably and affordably.”

However, according to the bill’s fiscal and policy note, “if a target cannot be met cost effectively, the target must be reduced to the maximum cost-effective amount for the relevant delivery year.”

Another key provision calls for the program to be implemented by July 1, 2025. The PSC only recently finalized rules for an energy storage pilot program that was established by the legislature in 2019.

Community Solar

H.B. 908, which would make the state’s community solar pilot program permanent, was another bill that was closely tracked by clean energy advocates. The seven-year pilot program was set to expire in 2024, said Rebecca Rehr, director of climate policy and justice for the Maryland League of Conservation Voters, “so, it was really important that the program was made permanent this year so that there wasn’t market disruption.”

Other key changes in the bill includes an increase to the amount of power from the projects required to go to low- and moderate-income (LMI) households from 30% to 40%, and a provision allowing customers subscribing to a community solar project to receive a single, consolidated bill. Under the pilot, subscribers have received two bills, one for the community solar project and one from their utility, which can be confusing for some customers, said Stephanie Johnson, executive director of the Chesapeake Solar and Storage Association.

In some cases, “subscribers thought that they owed much more money than they did,” Johnson said. “So, including the consolidated billing, it makes it easier for subscribers to see what they’re actually paying.”

Solar advocates also pushed hard for H.B. 692, which aims to resolve a bottleneck in local permitting of renewable energy projects and related transmission or distribution lines. While the PSC issues certificates of public convenience and necessity (CPCNs) for new energy projects, local jurisdictions must still issue certain “nondiscretionary” permits, like site plan or storm water permits.

Some counties were uncertain if they had the authority under a CPCN to issue these permits, causing delays, Vaughan said. “This bill just clarifies that they do in fact have that authority, and that the counties should grant those permits or deny those permits in a timely fashion … [to] prevent a potential inadvertent delay to project permitting.”

But the bill may only provide limited help in counties where local officials are generally opposed to solar, he said. “If a county was intentionally trying to slow-walk a permitting process based on an argument that they didn’t have the authority, that would be a narrow instance where this would help,” he said.

Other solar-friendly bills include:

  • S.B. 143, which would allow solar owners to accrue net metering credits indefinitely, rather than on a year-by-year basis, as currently required under state law. Community solar subscribers receiving virtual net metering credits would also be able to accrue them indefinitely, and the PSC would be required to establish a method for valuing these credits. Utilities would be required to pay customers the value of the accrued net metering credits within 15 days of an account being closed.
  • S.B. 469, which would establish a task force to study the state’s solar incentives and make recommendations for improving them to help the state meet its clean energy and emission-reduction goals. The task force would be required to deliver a report with its findings and recommendations to the General Assembly by Dec. 15.

Revving up Clean Transportation

Building on the Moore administration’s adoption of California’s Advanced Clean Cars II rule in March, the Clean Trucks Act (H.B. 230) would also move ahead with the adoption of California’s Advanced Clean Trucks regulation, which requires an increasing percentage of new medium- and heavy-duty trucks sold in the state to be zero-emission vehicles. (See Maryland to Adopt California’s Advanced Clean Cars II Rule.)

The Advanced Clean Cars II rule sets 2035 as the deadline for all new passenger cars, SUVs and light-duty pickups in the state to be ZEVs. With the adoption of the Clean Trucks targets in Maryland, 55% of all new class 2b and 3 vehicle sales, 40% of truck tractor sales and 75% of new class 4 through 8 truck sales would have to be zero-emission by 2035.

The Maryland Department of the Environment would be required to establish the program and also to “prepare a related needs assessment and deployment plan in consultation with specified state agencies and submit the plan to the General Assembly by Dec. 1, 2024,” according to a fiscal and policy note.

The bill would also increase funding for a state grant program to support medium- and heavy-duty truck sales from its current level of $1 million per year to $10 million per year.

An analysis from the Maryland League of Conservation Voters said the bill “is of particular importance because communities of color and low-wealth communities often face disproportionate burdens from traffic and transportation pollution.”

Rehr is hoping the needs assessment will not slow implementation of the law, but rather help to “identify priorities for implementation.”

“We’re hoping that what it does is actually show the need and show where we can invest in charging stations … and invest in [other] infrastructure needed to implement the bill,” she said.

Other clean transportation bills include:

  • H.B. 123, which would allow electric vehicles registered with the state to use HOV lanes regardless of how many passengers are in the vehicle. EV drivers would need a permit, which will cost no more than $20. The program would end Sept. 30, 2025.
  • H.B. 830, which would require all new residential construction with a garage, driveway or carport to include an EV charger or be wired for charger installation. The bill would also require that the Maryland Energy Administration conduct a study on the costs and other considerations for installing EV chargers in multifamily housing, for example, how many chargers would be needed per number of apartments in a building.
  • H.B. 834, which would allow electric utilities to install EV chargers at multifamily housing in underserved communities. The program would continue through Dec. 31, 2025, and utilities would have to ensure the chargers have an average annual uptime of 97%.
Community solarEnergy StorageHeavy-duty vehiclesLight-duty vehiclesMarylandOffshore Wind PowerSolar PowerState and Local PolicyTransmission & Distribution

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