Maryland State Capital building in Annapolis, Maryland.
March 2025 Updates
Clean Heat Rules Advance with Executive Order Support
The Maryland Department of Environment continues developing Zero-Emission Heating Equipment Standards (ZEHES) and Clean Heat Standards to reduce emissions from buildings, with implementation supported by recent executive actions to accelerate climate goals. These standards build on Maryland’s ambitious climate targets established in the Climate Solutions Now Act, which requires a 60% reduction in emissions by 2031 and net-zero emissions by 2045. The department plans to hold additional stakeholder sessions throughout this spring to finalize implementation details. The standards would establish emissions targets for building heating equipment while ensuring energy affordability for all Marylanders. Learn more about these standards in the Maryland Department of Environment Climate Pollution Reduction Plan.
Consumer Protection Law SB1 Shows Success in Energy Market
Maryland’s SB1 legislation has saved consumers significant money while preserving clean energy options, correcting a decade of predatory pricing practices where suppliers charged exorbitant rates to most customers while offering discounts to a few. Data shows Maryland families paid $1.5 billion more than regulated energy rates from 2014 to 2023 before SB1 was enacted. The law now requires suppliers to meet or beat regulated rates, disclose Renewable Energy Certificate (REC) types supporting green energy claims, obtain Public Service Commission (PSC) approval for green energy offers, eliminate purchase of receivables regulation, and provide regulators with enhanced reporting and enforcement tools. More details on SB1’s impact can be found at Legislation Details – SB1 (2024) and at the Energy Supplier Help Desk.
Gas Rate Reform Bill Advances to Senate Hearing
The Strategic Infrastructure Development and Enhancement Plan (STRIDE) reform bill—HB419, the Strategic Infrastructure Development and Enhancement (Ratepayer Protection Act)—which is designed to address Maryland’s soaring gas utility bills, is scheduled for a Senate hearing on March 13th. Testimony has revealed that gas delivery rates have tripled since 2010, despite increased hazardous leaks and $1.4 billion spent on pipeline replacements. The Ratepayer Protection Act aims to prioritize safety, control spending, and reduce unnecessary infrastructure expansion by requiring utilities to ensure their gas infrastructure spending is cost-effective, consider non-pipeline alternatives, create new consumer protection measures around infrastructure spending, establish two-year notice requirements before infrastructure work begins, and introduce stricter oversight of utility cost recovery mechanisms. Read about the Ratepayer Protection Act and its implications at Maryland General Assembly – HB419 Bill Details
Climate Commission Recommends Enhanced Spending Accountability
The Maryland Commission on Climate Change is advocating for improved tracking of climate-related expenditures through climate budget tagging (CBT), standardized climate cost codes, enhanced damage tracking and resiliency planning, and better documentation of disaster recovery spending. These recommendations aim to create greater transparency in how climate funds are allocated and spent, enabling more effective decision-making and resource allocation across state agencies. The commission has emphasized that better tracking will help ensure climate investments reach the communities most vulnerable to climate impacts, including low-income neighborhoods and environmental justice communities. For more details, visit Maryland Mitigation Working Group
BGE Rate Hearing Highlights Gas Infrastructure Concerns
Baltimore City Council held a hearing in February that revealed troubling trends in gas infrastructure investment. Testimony showed that gas delivery rates have tripled since 2010, while BGE’s hazardous gas leaks increased from 3,000 in 2014 to over 4,000 in 2023, despite $1.4 billion spent on pipeline replacements. The hearing highlighted that the STRIDE law lacks critical safety and spending safeguards, and the multi-year rate making pilot has led to higher rates without adequate cost discipline. Environmental and consumer advocates testified that continued investment in gas infrastructure represents a significant financial risk to ratepayers as Maryland transitions toward building electrification. For more information, visit the Baltimore City Council’s Website or view the City Council Hearing: Committee on Legislative Investigations
Building Electrification Programs Expanding Through EmPOWER Maryland
Maryland’s flagship energy efficiency program, EmPOWER Maryland, has introduced significant new incentives for heat pumps and building electrification measures, reflecting its expanded focus on helping the state achieve greenhouse gas reduction goals. The 2025 program includes enhanced rebates for income-qualified households, new technical assistance for multifamily building owners, and expanded contractor training programs to build workforce capacity. The program aims to accelerate the transition from fossil fuel heating systems to efficient electric alternatives while ensuring energy affordability and comfort for all Marylanders. Learn about the updated incentives at EmPOWER Maryland Program
February 2025 Updates
Ratepayer Protection Act Advances: New legislation aims to reform the Strategic Infrastructure Development and Enhancement Plan (STRIDE program) that has led to soaring gas utility bills, with gas customers seeing delivery rates triple since 2010. The bill would:
- Require utilities to ensure their gas infrastructure spending is cost-effective
- Mandate consideration of non-pipeline alternatives to gas infrastructure projects
- Create new consumer protection measures around infrastructure spending
- Establish two-year notice requirements for customers before infrastructure work begins
- Introduce stricter oversight of utility cost recovery mechanisms
Legislature Tackles Grid Reliability Crisis: Maryland lawmakers are responding to PJM’s agreement to keep 2 GW of coal and oil generation online through 2029 at Brandon Shores and H.A. Wagner plants with multiple bills addressing transmission upgrades and accelerated clean energy deployment, including:
The New Generation Energy Act (Ferguson/Jones) which aims to:
- Lower Maryland’s reliance on out-of-state energy (currently 40%)
- Reduce the need for additional transmission lines
- Allow state control over energy source selection
- Require the Public Service Commission (PSC) to fast-track RFPs for new energy generation to replace coal/oil capacity
The Renewable Energy Certainty Act (Feldman/Wilson) which would:
- Set statewide standards for solar and battery storage projects
- Remove local roadblocks to project construction
- Create streamlined permitting processes
- Establish study requirements for utility partnerships in clean energy projects
The Resource Adequacy and Planning Act creates:
- An independent office within PSC to improve state-level planning and reduce reliance on PJM for forecasting
- Requirements for better state-level planning on 2-10 year energy needs
- Coordination mechanisms between state agencies on energy planning
Clean Energy Goals Face Grid Hurdles: Maryland’s ambitious Climate Solutions Now Act targets of 60% emissions reduction by 2031 and net-zero by 2045 are being challenged by interconnection delays and transmission constraints. This has prompted the Maryland legislature to prioritize grid modernization, with the Resource Adequacy and Planning Act creating an independent office within PSC to improve state-level planning.
Clean Heat Standard Development: Maryland’s Department of the Environment is continuing stakeholder engagement on Clean Heat Standard regulations, with draft rules expected in early 2025. The standards aim to accelerate the transition to zero-emission heating equipment while ensuring energy affordability.