Environmental Law

Maryland Governor Signs Energy Bills, Including New Portfolio Standards

By Dennis Pfaff and Kevin Livingston, Editors

Maryland's Gov. Martin O'Malley has signed a package of energy bills to among other things beef up renewable portfolio standards in that state, set goals for reducing energy consumption and funnel proceeds from the sale of greenhouse gas credits to clean energy projects.

The governor (pictured) also signed a measure, SB 1013, that ratifies a settlement of a dispute with Constellation Energy Group and ends ratepayer obligations for decommissioning nuclear power plants in the future. The settlement, according to the Baltimore Sun newspaper, also gives the state some assurances a nuclear power plant will be built (see article here). 

In a statement, O'Malley, a Democrat, held out high hopes for the a package of bills on energy and other environmental issues (see text here):

"With today’s bills, we are creating a sustainable energy policy, securing relief for thousands of Maryland ratepayers through a global settlement with Constellation Energy, protecting our environment and helping to restore the Chesapeake Bay for future generations.” 

Among the bills signed by O'Malley was a measure that, according to various reports, about doubles the state's renewable power mandate. The new law, HB 375, requires 20 percent of Maryland's electricity to come from renewable sources by 2022. That's a more modest goal than some other states, including California, which is prodding utilities to meet the 20 percent goal by 2010 and is considering imposing a 33 percent goal by 2020 (see background on California mandate here). 

O'Malley also signed HB 368, establishing the Maryland Strategic Energy Investment Fund. That fund will house proceeds from the sale of Maryland greenhouse gas emission "allowances" under  the Regional Greenhouse Gas Initiative, a 10-state cooperative. Other sources of money include fees utilities will pay if they fail to meet the new renewable porfolio standards (see press statement from Maryland Energy Administration here; related fact sheet here).

Money from the fund will be used for loans and grants to support renewable energy sources, energy conservation, climate change programs and efforts to encourage electricity customers to lower their use at peak times. The Sun estimated that Maryland could expect to get between $80 million and $260 million annually from the cap-and-trade system. The RGGI auctions are scheduled to begin this year.

Separately, the newspaper reported on plans by Maryland's Department of the Environment (no link available) to set aside up to 5 percent of the carbon credits for cleaner energy generators that come into operation before the summer of 2012. The paper noted that there had been some opposition to free credits but that the state faces an acute energy shortage and that many now support the idea.

The legislation recently signed by O'Malley included:

• HB 373, which encourages development near public transit hubs;
• HB 374, which establishes a state goal of reducing per-capita electric consumption by 15 percent by 2015;
• HB 376, which sets green building requirements for new and renovated state buildings and schools;
• HB 377, which increases grants for small-scale, such as residential, solar energy and geothermal heat pumps, and includes a package of tax incentives;
• HB 117, creates a system of easements for solar energy systems to prevent projects that would block the sun, and prohibits restrictions on solar energy installations, such as homeowner or condominium association covenants.

Despite the state's moves to generally encourage new renewable development, the governor has also taken some moves to restrict where it can occur. O'Malley recently announced that public lands managed by the state's Department of Natural Resources would not be considered as sites for commercial wind power generation (see press statement here).

(Photo: Maryland governor's office)

Full post as published by Climate Law Update on May 01, 2008 (boomark / email).