All Roll Calls
Yes: 231 • No: 215
MarylandSB 09372025 Regular SessionSenateWALLET
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: Brian J. Feldman (Democratic)
Signed by Governor
Utility RegulationEnergy and ClimateAdministrative AgenciesAir PollutionApprenticesAttorney GeneralAwareness and OutreachBoundariesCoalCollective BargainingCommerce and Business -see also- ElectrComm; ForeignTr; etc.Committees and CommissionsCommunity DevelopmentConstructionContractors -see also- Construct; Electricians; etc.Contracts -see also- ProcurementDebt ManagementEnergy 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- CoalGrantsHealth -see also- COVID19; EnvHlth; MedCon; etc.HearingsHigh Voltage LinesHousing and Community Development, Department ofHousing -see also- Apartments; Condos; Mobile & Manuf HomesHuman 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&SFALow-IncomeMinority Business EnterprisesMunicipal Corporations -see also- Annap; Balt; Hager; OCNatural Resources, Department ofNoticesNuclear Matters -see also- Power PlantsOpen GovernmentPartnershipsPenalties and Sentences -see also- Death PenaltyPermits -see also- Building PermitsPollution -see also- Air Pollution; Litter; Water PollutionPower PlantsPrices -see also- Consumer Price IndexPrivacyPrivatizationProcurementPublic Benefits -see also- FoodStmps; Housing; MedAsstPublic InformationPublic 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. RatesSmall BusinessSocial Services -see also- Public BenefitsSolicitationStandards and Best PracticesState Aid -see also- Public BenefitsStorageStudies -see also- Commitees & Commissions; ReportsSunsetTax CreditsTestimony -see also- WitnessesTimeUnionsUtilities -see also- Recycl; Refuse; Sewage; Teleph; WaterVeteransWholesale DistributionWomen -see also- GenderWork, Labor, and Employment -see also- JobTrn; Leave; etc.Zoning and Planning
Personalized for You
How does this bill affect your finances?
Personalize government policy and PRIA will tell you what this bill means for your household, plus every other piece of legislation we track. PRIA reads each provision against your financial profile to show you exactly what matters to your wallet.
Bill Overview
Analyzed Economic Effects
26 provisions identified: 12 benefits, 0 costs, 14 mixed.
Energy-saving services for low-income households
Beginning January 1, 2025, Maryland must provide or arrange energy-saving services for low-income people. Services include energy efficiency, conservation, programs that shift power use, and beneficial electrification. Further program rounds are due by January 1 every three years starting in 2027. For 2025–2033, programs must follow a path toward greenhouse gas reductions of at least 0.9% of the baseline after 2027. That baseline uses low-income households' direct gas and electricity use in 2016.
Energy upgrade funding for lower-income housing
Maryland's housing department must run a grant and loan program for energy projects in eligible buildings. Buildings must primarily house low- to moderate-income households, and projects must support qualifying energy conservation or renewable power. The Governor must include $5 million annually in budgets for fiscal years 2024 through 2026. Money cannot pay for new fossil-fuel equipment or efficiency upgrades to existing fossil-fuel equipment. The law does not set individual household awards or bill savings.
Wage protections for utility project workers
Covered underground gas and electric work, including traffic control, must pay at least Maryland's prevailing wage. This covers investor-owned utility contracts entered into, executed, amended, or altered after March 1, 2024. Covered storage construction also carries prevailing-wage rules for third-party developers and utility-owned projects. Storage contractors and subcontractors must provide the area prevailing wage, including fringe benefits, plus health care and retirement benefits. Covered energy project applicants must also have community benefit agreements with prevailing wages, labor protections, and local and disadvantaged-group hiring and training opportunities. At least 80% of craft workers on those projects must complete a 10-hour federal workplace safety course. Agreements must address practical use of local, sustainable, and domestic materials, and allow state review and enforcement.
Businesses face limits on direct power
While Maryland imports more electricity than it exports, the law generally restricts direct commercial or industrial supply that bypasses the grid or utility distribution. Federal law and the law's exceptions still apply, and the restriction ends when Maryland is no longer a net importer. A large-load customer can receive direct supply if new or increased generation covers 100% of expected demand. Required State certificates, siting approvals, and permits still apply. Businesses can also form microgrids using only new generation, with no connections to the grid, grid-connected loads, or another generating station.
Direct power users face assigned costs
The Public Service Commission can assign attributable costs, fees, and obligations to covered direct-supply businesses and their generators. Large-load customers and their generators can also face attributable direct or indirect charges normally paid by retail customers. Regulators can assign avoided wholesale costs that were, or may be, wrongly shifted to other customers. These include transmission, energy, capacity, and related grid-service costs; no dollar amounts are set.
Fast power reviews favor nonpolluting projects
Regulators can select up to 10 projects for expedited review, or more with enough resources and a public-interest finding. If no more than 10 apply, all must be selected, subject to the law's stated limitation. Selection generally requires four non-emitting projects per emitting project; transmission storage counts as non-emitting, and too few qualifying applications allows a waiver. Dispatchable generation takes priority over large-capacity resources; selection above 10 also weighs capacity value, construction readiness, operating dates, and emissions. Unselected projects can use the standard certificate process.
Maryland adds storage bids and permits
The Public Service Commission must seek up to 800 megawatts of transmission-connected storage by January 1, 2026, and again by January 1, 2027. Decisions are due October 1 of each year; selected devices generally must operate within 24 months, with good-cause extensions allowed. Covered storage construction requires a State certificate before work begins. Selected projects reviewed through an alternative process receive the same rights as generating systems holding that certificate. Qualifying transmission storage also counts toward Maryland's statewide storage deployment goals.
New power projects face capacity limits
By October 1, 2025, regulators must invite new or expanded dispatchable and large-capacity power projects through a window lasting at least 30 days. Another window is allowed if the capacity target is unmet; bids must detail readiness, sites, grid connections, materials, and lifetime emissions. Gas projects must support conversion to only hydrogen or zero-emissions biofuel when regulators find conversion feasible. Total approved capacity must exceed the coal-and-oil summer peak benchmark in the 2024–2033 State plan, but gas and large-capacity projects together cannot exceed it. This approval track cannot promise construction or operating funds, although projects can seek customer-funded support through other processes.
Nuclear developers gain a review pathway
After implementing rules take effect, nuclear developers can apply for long-term pricing support covering only new generation, including existing-plant additions. Each application window stays open at least 90 days after notice, with at least two additional windows before January 1, 2031. The Public Service Commission must decide within one year after a window closes, unless it grants a good-cause extension. Applicants must provide project finances, financing methods, pricing schedules, and plans for waste storage and eventual plant closure. They must analyze economic, job, customer-bill, market, business, environmental, and health effects, and document applications and future efforts for eligible grants and tax benefits.
Utilities must plan local energy storage
Maryland sets a goal of at least 150 megawatts of distribution-connected storage, divided among investor-owned electric utilities. Municipal utilities and electric cooperatives are excluded. Plans are due November 1, 2025, and November 1, 2026, with devices operating by November 1, 2027, and November 1, 2028, respectively. Plans must show cost-effectiveness and completion within 18 months after approval, with a goal of 30% third-party ownership. The Public Service Commission can extend operating deadlines for good cause.
Electric customers gain nuclear cost protections
Nuclear projects must pass combined bill-impact limits that include other nuclear projects over their pricing terms. The residential test uses 12,000 kilowatt-hours yearly; a separate test covers nonresidential customers as a blended average. The Public Service Commission keeps its limits confidential, caps schedule prices, and uses the same net long-term cost per megawatt-hour for both groups. Pricing schedules cannot exceed 30 years, and payments cannot start before electricity generation. Approval orders must protect customers and the State from cost overruns, and project debt cannot become State debt.
Seasonal bill credits for electric customers
For fiscal year 2026, Maryland uses renewable energy compliance fees for residential electric bill refunds or credits, including cooperative and municipal customers. Half is paid in a peak summer month and half in a peak winter month. Credits depend on electricity use covered by the renewable energy standard; no per-customer amount is stated. Utilities must pass along all grant money without overhead deductions and label it “Legislative Energy Hardship Credit Relief Refund.” The temporary requirement runs from June 1, 2025, through June 30, 2026, under Public Service Commission oversight.
Storage workers gain a union voice
Investor-owned electric utilities must operate and maintain storage devices they install under the law. Utilities must consult union representatives in good faith about worker assignments, training, and hiring for those duties. They can contract out work not performed by the bargaining unit, using qualified contractors that meet the law's standards.
Tax relief for energy refund recipients
Maryland residents receiving a Legislative Energy Hardship Credit Relief Refund can subtract the refund amount when calculating Maryland adjusted gross income. The tax rule applies to tax years beginning after December 31, 2024. The subtraction lowers income used to calculate state tax; it is not an extra dollar-for-dollar tax credit. Actual tax savings depend on the recipient's tax situation.
Existing contracts keep their legal protections
Beginning June 1, 2025, the Act cannot impair obligations or contract rights that already exist. This protects existing rights without creating a new payment or changing a stated household benefit amount.
Storage projects need battery safety plans
Covered energy storage projects must plan for eventual closure and maximize recycling or reuse of qualifying parts. Lithium-ion devices must meet the latest applicable NFPA 855 safety standard when the final permit application is filed. Owners or operators can submit revised recycling and reuse plans up to one year before carrying out closure plans.
Maryland seeks partners for nuclear development
The Maryland Energy Administration must work with utility regulators and natural resources officials to seek nuclear-development agreements. It must seek cost-sharing with neighboring states in the PJM regional power market to reduce new-plant risks. It must also seek federal agreements about small modular reactors on or near federal lands or facilities. The law does not commit a funding amount or approve a specific plant.
More savings count toward low-income targets
Maryland can count qualifying energy savings from all funding sources toward its low-income greenhouse gas reduction targets. Savings must meet U.S. Department of Energy standards or the energy-saving requirements of the funding source. This expands program accounting flexibility but does not itself change household eligibility or provide money.
Nuclear projects must share community benefits
Nuclear applicants seeking investors must make good-faith efforts to interview minority investors and disclose interview and investment information. They must sign agreements covering future outreach, skilled-labor plans, and best efforts to use minority-owned contractors where practicable. State offices assist applicants and minority investors with these requirements. Financing orders require community benefit agreements, and applications must show positive net economic impacts and environmental and health benefits. Covered projects must follow Maryland's minority-business program; participation goals are due within six months of long-term pricing approval, with progress reports every six months.
Gas replacement charges with customer safeguards
Gas companies can recover approved infrastructure replacement costs through a surcharge lasting five years from its start. Residential accounts cannot be charged more than $2 monthly, or $24 yearly, through this surcharge. Nonresidential charges must be at least the residential amount and stay within a customer-class allocation cap. Regulators must find costs reasonable and prudent and replacement needed for safety or reliability after considering alternatives, including leak repair. Eligible projects must reduce or potentially reduce leaks and emissions, exclude new-customer connections, and not already be in base rates. Plans must explain costs, benefits, alternatives, and customer notice at least six months before construction; overcollections are subject to refunds.
Nuclear bill charges with customer refunds
Electric companies can recover approved nuclear long-term pricing costs through a distribution bill surcharge that customers cannot avoid. Maryland's Public Service Commission sets each company's yearly credit purchase obligation based on its share of statewide electricity use. An escrow account handles project revenues and pricing payments. Overpayments go back to customers as refunds or credits, based on electricity use covered by Maryland's renewable energy standard. The law does not set a household surcharge amount.
Storage brings bill charges and credits
Electricity suppliers must buy selected transmission-storage capacity credits at a fixed monthly price for 15 years, based on their capacity obligations. Utilities recover costs through a surcharge on distribution or supply rates that customers cannot avoid by switching suppliers. Revenue from the PJM regional capacity market goes into escrow for distribution-customer refunds or credits. Those distributions follow suppliers' monthly capacity purchase obligations, while project owners keep energy and related grid-service revenue. The law does not state the net household bill amount.
Maryland changes which energy counts renewable
Maryland removes waste-to-energy and refuse-derived fuel from its top renewable energy category. It adds thermal energy from thermal biomass systems and wastewater used for heating or cooling. Wastewater energy must connect to Maryland's electric distribution grid or process wastewater from Maryland residents. These changes apply to compliance years starting January 1, 2025. For facilities owned by a State public instrumentality, they begin July 1, 2026, and continue in later compliance years.
Qualifying power projects get faster permits
Qualifying projects receive expedited State certificate review, generally with 45 days' advance notice and a decision within 295 days after completion of the application. Projects in overburdened or underserved communities retain 90 days' advance notice. Large-capacity resources need at least 20 megawatts after reliability adjustments, the specified PJM interconnection status by January 1, 2025, and proposal approval. Regulators can delay later applications after five arrive within two months and extend deadlines for applicant noncompliance. They can review project closure plans after issuing a certificate.
Storage developers face payment performance rules
Storage bids must include at least 15 years of pricing, a cost-benefit analysis, wholesale-market capabilities, and a community benefit agreement. Proposals must use competitive bidding. Applicants must attest that contractors followed wage laws for the preceding three years or their entire business history, whichever is longer. Continued payments depend on device availability, with payment cuts proportional to poor performance. The Public Service Commission can terminate a device after notice and a chance to fix problems if performance does not improve.
Utilities face new rate review rules
Electric utilities can be regulated through price or revenue rules, return ranges, service categories, or price indexing. The Public Service Commission must give notice, hold a hearing, and find that the approach protects consumers and reliable service. It must also find that the approach serves the public interest, including shareholders' interests. In base-rate cases, investor-owned gas and electric utilities must compare employee and contractor labor costs and explain contractor use. These rules do not set a specific household rate.
Sponsors & Cosponsors
Sponsor
Brian J. Feldman
Democratic • Senate
Cosponsors
Dalya Attar
Democratic • Senate
Benjamin Brooks
Democratic • Senate
Mary Washington
Democratic • Senate
Bryan W. Simonaire
Republican • Senate
Roll Call Votes
Senate vote • 4/7/2025
Third Reading Passed
Yes: 36 • No: 10 • Other: 1
House vote • 4/5/2025
Floor Amendment {813822/1 (Delegate Grammer) Rejected
Yes: 39 • No: 97 • Other: 1
House vote • 4/5/2025
Third Reading Passed
Yes: 97 • No: 39 • Other: 1
Senate vote • 4/1/2025
Floor Amendment {823825/1 (Senator Hershey) Rejected
Yes: 11 • No: 29 • Other: 6
Senate vote • 4/1/2025
Floor Amendment {133829/1 (Senator Hershey) Rejected
Yes: 11 • No: 31 • Other: 4
Senate vote • 4/1/2025
Third Reading Passed
Yes: 37 • No: 9
Actions Timeline
Approved by the Governor - Chapter 625
5/20/2025Passed Enrolled
4/7/2025SenateThird Reading Passed (36-10)
4/7/2025SenateSenate Concurs House Amendments
4/7/2025SenateThird Reading Passed (97-39)
4/5/2025HouseFloor Amendment {813822/1 (Delegate Grammer) Rejected (39-97)
4/5/2025HouseSecond Reading Passed with Amendments
4/4/2025HouseMotion Special Order until 04/04 (Delegate Crosby) Adopted
4/3/2025HouseFavorable with Amendments {223126/1 Adopted
4/3/2025HouseFavorable with Amendments Report by Economic Matters
4/3/2025HouseRereferred to Economic Matters
4/2/2025HouseReferred Rules and Executive Nominations
4/2/2025HouseThird Reading Passed (37-9)
4/1/2025SenateSecond Reading Passed with Amendments
4/1/2025SenateFloor Amendment {133829/1 (Senator Hershey) Rejected (11-31)
4/1/2025SenateFloor Amendment {823825/1 (Senator Hershey) Rejected (11-29)
4/1/2025SenateFloor Amendment {703521/1 (Senator Hershey) Rejected
4/1/2025SenateFavorable with Amendments {343121/1 Adopted
4/1/2025SenateMotion Laid Over (Senator Augustine) Adopted
3/31/2025SenateFavorable with Amendments {343121/1
3/31/2025SenateFavorable with Amendments Report by Education, Energy, and the Environment
3/31/2025SenateHearing 2/28 at 1:30 p.m.
2/10/2025SenateFirst Reading Education, Energy, and the Environment
2/3/2025Senate
Bill Text
Enacted
5/20/2025
Enrolled
4/7/2025
Third Reading
4/1/2025
First Reading
2/3/2025
Related Bills
HB 0384, Maryland Disability Service Animal Program - Established
SB 0227, Workers' Compensation - Payment From Uninsured Employers' Fund - Revisions
HB 0482, Occupational Licensing and Certification - Criminal History - Predetermination Review Process
SB 0157, Maryland Disability Service Animal Program - Established
HB 1294, Commercial Law - Credit Regulation - Earned Wage Access and Credit Modernization
HB 0228, Maryland Veterans Trust – Assistance to Members of the Maryland National Guard