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MarylandHB 10352025 Regular SessionHouseWALLET

Electricity and Gas - Emissions Reductions, Rate Regulation, Cost Recovery, Infrastructure, Planning, Renewable Energy Portfolio Standard, and Energy Assistance Programs (Next Generation Energy Act)

Sponsored By: C. T. Wilson (Democratic)

Signed by Governor

Utility RegulationEnergy and ClimateAdministrative AgenciesAir PollutionAttorney GeneralBoundariesCoalCollective BargainingCommerce and Business -see also- ElectrComm; ForeignTr; etc.Committees and CommissionsCommunity DevelopmentConstructionContractors -see also- Construct; Electricians; etc.Contracts -see also- ProcurementDebt ManagementEducation -see also- ContEd; DrvEd; HigherEd; etc.Energy AdministrationEnergy Matters -see also- Fuel; NuclearMatt; PwrPlnts; etc.Environment, Department of theEnvironmental IncentivesEnvironmental Matters -see also- Conserv; Nat Resrce; PollutEquipment -see also- Charging; Med. Equip.; MV Equip; etc.Escrow AccountsEvidenceExemptionsFederal Aid -see also- CARES ActFederal GovernmentFees -see also- Attys' Fees; Devt Fees & TaxesFormsFuel -see also- CoalGeneral Services, Department ofGrantsHealth -see also- COVID19; EnvHlth; MedCon; etc.HearingsHigh Voltage LinesHousing and Community Development, Department ofHuman Services, Department ofIncome TaxIndustry and TechnologyIntergovernmental Cooperation -see also- AdmAgn; Cmts; etc.Interstate AffairsJob Training -see also- Continuing Ed; Vocational RehabLabor, Department ofLicenses -see also- AB Lic; Certifications; DrLic; PermitsLoans -see also- Credit; Mortgages; Scholarships&SFAMeetings -see also- Hearings; Open GovernmentMinority Business EnterprisesNatural Resources, Department ofNoticesNuclear Matters -see also- Power PlantsOpen GovernmentPermits -see also- Building PermitsPollution -see also- Air Pollution; Litter; Water PollutionPower PlantsPrices -see also- Consumer Price IndexPrivatizationProcurementPublic Service CommissionPublic Works -see also- Brg&Tun; Hwys; PublBlgFac; etc.Recruitment and HiringRecyclingRefuse Disposal -see also- RecyclingRenewable Energy Sources -see also- Geotherm; Solar; etc.ReportsResidential Property -see also- Apartments; CondominiumsRevenue and Taxes -see also- (specific tax)Right-of-WayRules and RegulationsSafety -see also- Occupational SafetySalaries and Compensation -see also- Overtime; Reimb. RatesSecurity Interests -see also- LiensSmall BusinessSocial Services -see also- Public BenefitsStandards and Best PracticesState Aid -see also- Public BenefitsStorageSunsetTax CreditsTestimony -see also- WitnessesTimeUnionsUtilities -see also- Recycl; Refuse; Sewage; Teleph; WaterVeteransWomen -see also- GenderWork, Labor, and Employment -see also- JobTrn; Leave; etc.Zoning and Planning

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Bill Overview

Analyzed Economic Effects

20 provisions identified: 9 benefits, 0 costs, 11 mixed.

Energy-saving help for low-income households

Beginning January 1, 2025, the law requires energy-saving, demand-response, and beneficial-electrification services for low-income individuals. Demand-response programs help manage electricity use, while beneficial electrification supports switching energy uses to electricity. Plans for 2025–2033 must follow a path toward emissions reductions after 2027 of at least 0.9% of the baseline. The baseline uses low-income households' direct gas and electricity emissions in 2016, and targets use a three-year plan average. Qualifying savings from any funding source can count, but the law sets no household savings amount or income cutoff.

Wage protections for utility construction workers

Contractors on covered investor-owned underground gas and electric projects must pay at least the state-set prevailing wage. Covered work includes construction and related traffic control under contracts entered into, executed, amended, or altered after March 1, 2024. Covered storage workers also receive prevailing wages. For specified storage work outside a utility bargaining unit, contractors must pay prevailing wages including fringe benefits and offer health care and retirement benefits. Utilities must operate and maintain company-installed storage and discuss workforce options in good faith with union representatives.

Maryland seeks transmission-level storage projects

The commission must hold competitive solicitations for transmission-connected storage by January 1, 2026, and January 1, 2027. Each solicitation has a cap of 800 megawatts of cumulative effective nameplate capacity. Decisions are due October 1, 2026, and October 1, 2027, respectively. Selected devices generally must operate within 24 months after selection, with extensions allowed for good cause.

Utilities must plan local grid storage

The commission must assign investor-owned utilities shares of at least 150 megawatts of distribution-connected storage, with notices by July 1, 2025 and 2026. Plans due November 1, 2025, cover up to one-third of each share, with operation due November 1, 2027. Remaining plans are due November 1, 2026, with operation due November 1, 2028; good-cause extensions are allowed. Plans target 30% third-party ownership and must show cost-effectiveness, including avoided grid costs and emissions valued using January 1, 2025 carbon-cost values. Construction or procurement must be feasible within 18 months after approval.

Wage protections for energy project workers

Covered energy project applications must include community benefit agreements requiring skilled local workers paid at least the prevailing wage. Agreements must address labor protections, dispute procedures, training, and local hiring, including people from historically disadvantaged groups. They must support local businesses and small, minority-, women-, and veteran-owned businesses. At least 80% of craft workers must have completed OSHA’s 10-hour safety course. Local, sustainable, and domestically made materials are required where practicable.

Nuclear bill charges face rate limits

Approved nuclear projects can create bill surcharges that customers cannot avoid by switching suppliers. The commission sets a per-megawatt-hour price cap and adjusts pricing every two years using projected wholesale and local market values. Approval requires confidential rate-impact limits for a home using 12,000 kilowatt-hours yearly and for nonresidential customers, including other nuclear projects' impacts. Residential and nonresidential customers must use the same net long-term cost per megawatt-hour. Utilities buy zero-emission credits based on statewide load shares; credit shortages trigger consumption-based refunds of overpayments, subject to required escrow reserves.

Storage brings bill charges and credits

Selected transmission storage projects receive 15-year schedules of fixed monthly payments. Electricity suppliers must buy storage capacity credits in proportion to their capacity obligations. Utilities recovering project costs must use bill surcharges that customers cannot avoid by switching suppliers. Regional capacity-market revenue goes into escrow for customer refunds or credits, allocated by suppliers' monthly capacity purchase obligations. Projects keep energy and related grid-service revenue; the law does not state the net household bill effect.

Housing energy aid excludes fossil equipment

Maryland provides grants and loans for energy-saving projects and renewable energy systems in qualifying multifamily buildings. These buildings must mainly house low- and moderate-income households. The Governor must budget $5 million annually for fiscal years 2024 through 2026. Funds cannot pay for new fossil-fuel equipment or improvements to existing fossil-fuel equipment. The law does not set an amount per household or project.

Huge power users get separate rates

Investor-owned electric utilities and cooperatives must file special large-user rate schedules by September 1, 2026; municipal utilities file when an application arrives. Mandatory service generally covers expected use above 100 megawatts at one site or in combined contract capacity across a service territory. Certain existing agreements and expansions of no more than 25 megawatts are exempt. Before signing, covered customers must pay for a load study, identify a site, and own or exclusively control the land. Rate schedules assign buildout costs and long-term commitments to large users, with exit fees, collateral, and billing protections for smaller customers.

New power projects get competitive review

The commission must seek new or expanded dispatchable and large-capacity energy projects by October 1, 2025, allowing at least 30 days for proposals. Large-capacity resources need at least 20 megawatts of accredited capacity and a regional grid connection application or approval by January 1, 2025. Combined approvals cannot exceed Maryland's coal and oil summer peak capacity listed in the commission's 2024–2033 plan; additional solicitations are allowed if capacity remains unmet. Proposals need construction, site, grid-connection, and readiness details; gas plants must show conversion capability to hydrogen or zero-emissions biofuel when feasible. The commission cannot commit construction or operating funding through this process, but projects can seek ratepayer funding through other programs.

Nuclear developers gain a review pathway

The law creates nuclear project application windows, including at least two additional windows before January 1, 2031. The commission must decide within one year after a window closes, with extensions for cause. Applicants must provide financial, bill-impact, jobs, market, environmental, decommissioning, waste-storage, and long-term pricing plans, and seek available public financial support. Reviews weigh customer costs, project readiness, small-business participation, skilled labor, apprenticeships, and wage plans. State agencies must seek neighboring-state cost-sharing agreements and federal agreements for small reactors on or near federal sites, but agreements are not guaranteed.

More safeguards in utility rate decisions

Maryland's utility commission can use alternative electric rate methods after a hearing and findings protecting consumers and reliable service. Multiyear gas or electric distribution rate plans must show customer benefits and cannot allow later adjustments for covered cost or revenue differences. Reconciliation filings made on or before January 1, 2025, are exempt from that restriction. Investor-owned utilities cannot charge customers for trade-group expenses covered by the law or company and holding-company private-plane costs. In base-rate cases, investor-owned gas and electric utilities must compare employee and contractor costs and explain contractor use.

Electric bill refunds for Maryland households

The law directs renewable energy fee money toward residential electric bill refunds or credits for fiscal 2026. Half is distributed during a peak summer month and half during a peak winter month. Each customer's share depends on electricity use covered by the state's renewable energy standard. Bills must label the payment “Legislative Energy Relief Refund,” and utilities cannot keep money for overhead. The law does not state individual refund amounts.

Solar funding for eligible Maryland communities

The law reserves certain renewable energy compliance fees for loans and grants supporting new Maryland solar projects. Projects must be owned by or directly benefit eligible households or communities. Eligible groups include low- or moderate-income households and overburdened or underserved communities. The low- or moderate-income community category covers census tracts with average median income no higher than 80% of the statewide average. The law does not promise a household award or set an award amount.

Nuclear projects must share community benefits

Nuclear projects need community benefit agreements and proof of net economic, environmental, and health benefits before receiving financing orders. Applicants seeking investors must make serious, good-faith efforts to interview minority investors and disclose the results. They must sign agreements covering future outreach, minority-business contracting efforts where practicable, and skilled-labor commitments. For approved projects with long-term pricing, state offices set minority-business participation goals within six months, and applicants report progress every six months. State offices assist with outreach, but the law does not guarantee investments or contracts.

Gas replacement charges face customer safeguards

The commission can allow faster recovery of eligible gas replacement costs, with residential surcharges capped at $2 per month. Nonresidential charges must be at least the residential amount; gas cooperatives are exempt. Plans must show customer benefits, assess cost-effective alternatives including leak repair, and give customers at least six months' notice. Charges generally last five years, require annual reviews and refunds with interest for overcollections or disallowed costs, and require a base-rate filing before ending. Planned investments also face customer-benefit and alternatives reviews, including nonpipeline options for new nonsafety investments and applicable risk-reduction estimates for safety work.

Storage developers face safety and cleanup rules

Covered storage proposals need 15-year pricing, cost-benefit reviews, community benefit agreements, and wage-law compliance statements. Operators must prove availability to keep receiving payments and face penalties for poor performance or termination after notice and a chance to improve. Lithium-ion devices must meet the fire-safety standard in effect on their final permit application date. Cleanup plans must maximize reuse or recycling; owners can update those plans up to one year before carrying them out. From June 1, 2025, through June 30, 2030, covered storage projects in approved generation proposals need a state certificate before construction.

Direct-power businesses face cost-sharing rules

The commission can assign costs and obligations to businesses and power plants supplying electricity directly while bypassing utility systems. It can also assign avoided wholesale costs when those costs have been or may be unfairly shifted to other customers. This protects other retail customers but can increase covered businesses' costs. Covered business buyers count as retail electric customers, and their providers count as electricity suppliers rather than electric companies. The law sets no specific charge.

Faster power permits retain review safeguards

The commission can select up to 10 projects for faster certificate review, or more if it has enough review resources. It must prioritize dispatchable generation and select four non-emitting projects per emitting project, unless too few qualifying applications arrive. Applicants generally give 45 days' advance notice; specified community review periods remain 90 days in overburdened or underserved areas. Final action is due within 295 days after an application is deemed complete, with delays allowed after five applications in two months or applicant noncompliance. Projects not selected for faster review can apply through the regular process within one year after the application period closes.

Renewable rules drop trash, add heat

Maryland removes waste-to-energy and refuse-derived fuel from its Tier 1 renewable energy sources. It adds heat from qualifying thermal biomass systems and wastewater used for heating or cooling. Wastewater must be connected to Maryland's electric distribution grid or process wastewater from Maryland residents. Changes generally apply to compliance years beginning January 1, 2025, or later. Facilities owned by a Maryland public instrumentality follow the changes beginning July 1, 2026.

Sponsors & Cosponsors

Sponsor

  • C. T. Wilson

    Democratic • House

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

All Roll Calls

Yes: 423 • No: 810

Senate vote • 4/7/2025

Third Reading Passed

Yes: 34 • No: 8 • Other: 5

House vote • 4/5/2025

Third Reading Passed

Yes: 96 • No: 40 • Other: 1

House vote • 4/4/2025

Floor Amendment {493727/1 (Delegate Buckel) Rejected

Yes: 36 • No: 95 • Other: 5

House vote • 4/4/2025

Floor Amendment {443825/1 (Delegate Buckel) Rejected

Yes: 36 • No: 97 • Other: 3

House vote • 4/4/2025

Floor Amendment {653521/1 (Delegate Szeliga) Rejected

Yes: 38 • No: 95 • Other: 4

House vote • 4/4/2025

Floor Amendment {313623/1 (Delegate Griffith) Rejected

Yes: 36 • No: 93 • Other: 7

House vote • 4/4/2025

Floor Amendment {293920/1 (Delegate T. Morgan) Rejected

Yes: 36 • No: 96 • Other: 4

House vote • 4/4/2025

Floor Amendment {383524/1 (Delegate Chisholm) Rejected

Yes: 36 • No: 95 • Other: 6

House vote • 4/4/2025

Floor Amendment {473928/1 (Delegate Miller) Rejected

Yes: 37 • No: 95 • Other: 5

House vote • 4/4/2025

Floor Amendment {903921/1 (Delegate Szeliga) Rejected

Yes: 38 • No: 96 • Other: 3

Actions Timeline

  1. Approved by the Governor - Chapter 626

    5/20/2025

  2. Returned Passed

    4/7/2025House

  3. Third Reading Passed (34-8)

    4/7/2025Senate

  4. Second Reading Passed

    4/7/2025Senate

  5. Favorable Adopted

    4/7/2025Senate

  6. Favorable Report by Education, Energy, and the Environment

    4/7/2025Senate

  7. Rereferred to Education, Energy, and the Environment

    4/5/2025Senate

  8. Referred Rules

    4/5/2025Senate

  9. Third Reading Passed (96-40)

    4/5/2025House

  10. Second Reading Passed with Amendments

    4/4/2025House

  11. Floor Amendment {743429/1 (Delegate Szeliga) Withdrawn

    4/4/2025House

  12. Floor Amendment {903921/1 (Delegate Szeliga) Rejected (38-96)

    4/4/2025House

  13. Floor Amendment {653521/1 (Delegate Szeliga) Rejected (38-95)

    4/4/2025House

  14. Floor Amendment {383524/1 (Delegate Chisholm) Rejected (36-95)

    4/4/2025House

  15. Floor Amendment {473928/1 (Delegate Miller) Rejected (37-95)

    4/4/2025House

  16. Floor Amendment {313623/1 (Delegate Griffith) Rejected (36-93)

    4/4/2025House

  17. Floor Amendment {293920/1 (Delegate T. Morgan) Rejected (36-96)

    4/4/2025House

  18. Floor Amendment {443825/1 (Delegate Buckel) Rejected (36-97)

    4/4/2025House

  19. Floor Amendment {493727/1 (Delegate Buckel) Rejected (36-95)

    4/4/2025House

  20. Motion Special Order until 04/04 (Delegate Crosby) Adopted

    4/3/2025House

  21. Favorable with Amendments {123320/1 Adopted

    4/3/2025House

  22. Favorable with Amendments Report by Economic Matters

    4/3/2025House

  23. Hearing 2/28 at 1:30 p.m.

    2/10/2025House

  24. First Reading Economic Matters

    2/5/2025House

Bill Text

  • Enacted

    5/20/2025

    PDF

  • Third Reading

    4/4/2025

    PDF

  • First Reading

    2/5/2025

    PDF

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