The Current - March 2011
This month's issue of The Current is devoted to a compilation of legislation that the Maryland Clean Energy Center (MCEC) and its allies support either as introduced or with amendments.
Under the leadership of MCEC's Legislative Committee, chaired by Jeremy Butz of Chesapeake Green Fuels Corp., MCEC reviewed more than 70 bills. It has been tracking 45 of them and provided written or in-person testimony on 18 of those bills.
"The array of proposals reflects the need for policymakers and businesses to collaborate on the pressing need to scale up sustainable energy programs in order to meet the state's energy and environmental goals designed to create more green jobs, improve efficiency, scale up renewable energy and reduce harmful greenhouse gas emissions," Butz said. "Drawing on industry best practices and achievements in other states with similar 'green' ambitions, the Maryland Clean Energy Center has provided valuable and informed perspectives to lawmakers."
Each of the following bills is organized first by their Senate bill (SB) number, along with any companion House bill (HB). This coming Monday, March 28 is "crossover" day which means each Chamber must send to the other Chamber those bills it intends to pass favorably. Opposite Chamber bills received after March 28 are subject to referral to Rules Committees, significantly complicating their outlook for passage.
You will see many references to the "First Reading" and subsequent action. This means a hearing has been held and the bill awaits further action in the committee listed.
A bill which has received a "Favorable Report," has been approved by the relevant committee and awaits action by the full House and Senate. If a bill receives an unfavorable report in committee, it dies for the 2011 General Assembly.
The 2011 General Assembly is scheduled to conclude its work in mid-April. Look for a report updating their final actions in a future issue of The Current.
- Electric Vehicles: SB 176/HB 167
- Electric Vehicles: SB 177/HB 163
- Electric Vehicles: SB 179/HB 164
- Electric Choice Education: SB 244/HB 597
- Clean Energy Program Funding: SB 304
- Net Metering: SB 380/HB 860
- Green Business Zones: SB 646/HB 795
- Solar Hot Water: SB 670/HB 306
- Waste-to-Energy: SB 690/HB 1121
- Overhead Power Lines: SB 691/HB 590
- Solar Renewable Energy Credits: SB 715/HB 1123
- Solar Hot Water: SB 717/HB 933
- Offshore Wind Energy: SB 861/HB 1054
- Wind Turbine Manufacturing: SB 881/HB 1227
- Sustainable Energy Utilities HB 658
- Biomass Heating: HB 829
Electric Vehicles
SB 176/HB 167: An Act Concerning Maryland Electric Vehicle Infrastructure Council
Status:
SB 176 Passed Third Reading in the Senate. Bill is in the House – First Reading, Environmental Matters Committee.
HB 167 Passed Third Reading in House. Bill is in the Senate – First Reading, Finance Committee.
Filed at the request of the administration of Governor Martin O'Malley, the bill would create the Maryland Electric Vehicle Infrastructure Council, consisting of representatives from the General Assembly, state government, Maryland counties and municipalities, manufacturers of electric vehicles and charging equipment, electrical workers, automobile dealers, the environmental community and other interested parties.
The council would tasked with developing a plan to integrate electric vehicles into the state's transportation network. Topics addressed in the plan would include:
- statewide standards for streamlining permitting and installation of EV charging stations;
- a statewide charging and metering infrastructure plan;
- options for increasing consumer awareness of and demand for EVs;
- incentives to support EV ownership;
- polices to support fleet purchases of EVs and encourage local efforts to promote EV use;
- and an analysis of how EV charging would impact electricity demand.
The council would be required to submit an interim report by January 1, 2012.
Electric Vehicles
SB 177/HB 163: An Act Concerning Income Tax – Tax Credit for Electric Vehicle Recharging Equipment
Status:
HB 163 is in the House – Favorable with Amendments, Ways and Means Committee.
SB 177 is in the Senate – First Reading, Budget and Taxation Committee.
Filed at the request of the O'Malley administration, the bill would create an income tax credit in tax years 2011, 2012 and 2013 to offset the cost of purchasing and installing qualified electric vehicle recharging equipment. The tax credit would equal 20 percent of the cost of qualified equipment to a maximum of $400 for each individual recharging system.
The credit would be limited to one recharging system per individual and 30 recharging systems per business entity.
Total tax credits issued annually would be capped at $400,000 in 2011, $500,000 in 2012 and $600,000 in 2013.
Electric Vehicles
SB 179/HB 164: An Act Concerning Electric Companies – Demand Response Pilot Program for Charging Electric Vehicles
Status:
SB 179 passed Third Reading in the Senate. Bill is in the House – First Reading, Economic Matters Committee.
HB 164 is in the House – Second Reading Passed with Amendments.
Filed at the request of the O'Malley administration, the bill would require Maryland's Public Service Commission (PSC) to establish a demand-response pilot program by June 30, 2013 for electric customers to recharge electric vehicles during off-peak hours.
The pilot program would include incentives for residential, commercial and government customers to recharge EVs in a way that would increase the efficiency and reliability of the electricity distribution system as well as lower electricity use at times of high demand. Those incentives could include time-of-day pricing of electricity, credits on distribution charges, rebates on the price of charging systems, or other incentives approved by the PSC.
The bill would mandate the PSC to make every effort to include at least two electric companies in the pilot.
Electric Choice Education
SB 244/HB 597: An Act Concerning the Public Service Commission – Customer Education on Customer Choice
Status:
SB 244 is in the Senate – Favorable with Amendments, Finance Committee.
HB 597 Passed Third Reading in the House. Bill is in the Senate – First Reading, Finance Committee.
The bill would require the Public Service Commission (PSC) to create a user-friendly web presence to educate Marylanders about customer choice in energy purchasing. The site would include information about how consumers can shop for an electricity supplier and competitive electricity options, including renewable energy suppliers, fixed and variable pricing options, and other common contract terms. The site would include information about standard offer service, details about offers from electricity suppliers in the reader's area, and advice about what questions consumers should ask when choosing an electricity supplier.
The bill would require the PSC to convene a web site work group by July 1, 2011 and implement the group's recommendations by March 31, 2012.
The bill would also require the PSC to work with media outlets to develop public service announcements educating the public about customer choice and directing the public to the PSC's customer choice education web site.
Clean Energy Program Funding
SB 304: An Act Concerning Renewable Energy Surcharge – Retail Residential Electric Customers
Status:
Bill is in the Senate – Unfavorable report, Finance Committee (bill dies).
The bill would establish an electricity surcharge of $0.013 per kilowatt hour for residential retail electric customers who use more than 1,000 kilowatt hours a month. Electric companies who would collect the surcharge, would in turn offer a rebate of $0.01 per kilowatt hour to customers who opt to purchase electricity generated by a Tier 1 renewable energy source, such as wind or solar.
Remaining revenues generated by the surcharge would be placed into a special, non-lapsing Maryland Renewable Energy Benefit Fund which is designed to promote energy efficiency and the development and deployment of renewable energy generation technology in the state. Money from the fund would support the Solar Energy Grant Program, the Geothermal Heat Pump Grant Program, the Windswept Grant Program and an annual grant to the Maryland Clean Energy Center for programs advancing energy efficiency, clean energy generation as well as job creation and business development in the clean energy sector.
Net Metering
SB 380/HB 860: An Act Concerning Electricity – Net Metering
Status:
SB 380 is in the Senate – Passed Second Reading with Amendments.
HB 860 is in the House – First Reading, Economic Matters Committee.
Filed at the request of the O'Malley administration, the bill would establish a net-metering system that enables consumers who generate more electricity than they use, to carry a negative kilowatt balance with utilities and receive an annual payment for the excess generation. The system would apply to customers who operate solar, biomass, fuel cell, micro combined heat and power, or wind electric generating facilities on their properties.
Under the bill, the Public Service Commission would require electric utilities to develop a standard tariff for net energy metering and make it available to eligible customer-generators until the combined generating capacity of those customers reaches 1,500 megawatts.
Customers who supplied less energy to the grid than they drew from the grid in a single month, would be billed for the net amount of grid electricity used. Customers who supplied more energy to the grid than they drew down from it in any given month, would be billed only for standard customer charges and would carry their negative kilowatt hour reading forward to the following month.
Any customer who supplied more energy to the grid than they drew from it in an entire year, would receive payment for that excess electricity at prevailing market energy prices.
Green Business Zones
SB 646/HB 795: An Act Concerning Economic Development – Green Business Incentive Zones
Status:
SB 646 is in the Senate – Re-assigned to the Budget and Taxation Committee.
HB 795 is in the House – First Reading, Ways and Means Committee.
The bill would enable state government to designate up to six green business zones annually. Locations would be selected based on the need for revitalization, the availability and cost of business facilities, the number of abandoned or substandard structures, the income of area residents compared to state and regional medians, local unemployment rates, local need for small business financing, and other criteria.
Businesses primarily engaged in researching, manufacturing or deploying technologies and services focused on renewable energy, energy storage and energy efficiency could qualify as green businesses and move into the zones. Resident companies would receive several tax incentives, including a payroll tax credit of $1,000 to $3,000 for each qualified employee and, if local government agreed, a property tax incentive that would deliver an 80 percent discount in the first five years of occupancy followed by a graduated property tax cut that declined from 70 percent in year six to 30 percent in year 10.
Solar Hot Water
SB 670/HB 306: An Act Concerning a Task Force on Solar Hot Water Systems in Prince George's County
Status:
SB 670 Passed Third Reading in Senate. Bill is in the House – First Reading, Economic Matters Committee.
HB 306 Passed Third Reading in House. Bill is in the Senate – First Reading, Finance Committee.
The bill would reestablish a task force on solar hot water systems in Prince George's County, including representatives from the General Assembly, Prince George's County Council and County Executive, the Maryland Energy Administration and the Maryland Clean Energy Center.
The task force would develop a business plan to quickly achieve substantial use of solar hot water systems that save county residents and businesses money while reducing their carbon footprint. The task force would analyze:
- Solar hot water system use in other states;
- Federal, state and local incentives and policies that support use of solar hot water;
- Financial, regulatory and other obstacles to solar hot water adoption and options to overcome those obstacles;
- Possibilities to use greenhouse gas markets to monetize emission reductions and lower the cost of solar hot water systems;
- Best markets for solar hot water systems, including public facilities, commercial buildings and residences.
The task force would be required to report its findings by December 31, 2011.
Waste-to-Energy
SB 690/HB 1121: An Act Concerning Renewable Energy Portfolio – Waste-to-Energy
Status:
SB 690 Passed Third Reading in the Senate. Bill is in the House – First Reading, Economic Matters Committee.
HB 1121 is in the House – First Reading, Economic Matters Committee.
The bill would expand the definition of a Tier 1 renewable energy source to include waste-to-energy systems. Currently, Tier 1 sources include solar, wind, biomass, some methane sources, geothermal, ocean energy, fuel cells, small hydroelectric power plants and poultry-litter-to-energy projects. Currently, waste-to-energy ranks as a Tier 2 renewable.
By adding waste-to-energy projects to Tier 1 renewables, the bill would include those projects in more aggressive growth targets. Maryland's Renewable Energy Portfolio Standard calls for the state increase its use of Tier 1 renewables from 5 percent of total electricity used in 2011 to 20 percent in 2022. The same standard calls for Maryland to drop its use of Tier 2 renewables from 2.5 percent of total electricity consumption in 2011 to zero percent in 2022.
Overhead Power Lines
SB 691/HB 590: An Act Concerning the Public Service Commission—Certificate of Public Convenience and Necessity – Renewable Source Generator Lead Line
Status:
SB 691 Passed Third Reading in the Senate. Bill is in the House – First Reading, Economic Matters Committee.
HB 590 Passed Third Reading in the House. Bill is in the Senate – First Reading, Finance Committee.
The bill would expand existing public utilities law which governs the process of assessing and approving overhead power lines, to include lines connecting to renewable energy generators.
The bill defines a qualified renewable energy generator lead line as an overhead line that is designed to carry a voltage in excess of 69,000 volts and would allow out-of-state Tier 1 or Tier 2 renewable sources to interconnect with the electric system in Maryland.
Developers of such lines would be required to apply for and obtain a certificate of public convenience and necessity before beginning construction. The Public Service Commission would be required to create opportunities for public input on such power line applications and make final rulings on those applications.
Solar Renewable Energy Credits
SB 715/HB 1123: An Act Concerning the Public Service Commission – Long-Term Contracts – Solar Renewable Energy Credits
Status:
SB 715 is in the Senate – First Reading, Finance Committee
HB 1123 is in the House – First Reading, Economic Matters Committee
The bill would authorize the Public Service Commission (PSC) to allow or require electric companies to procure solar renewable energy credits (SRECs) under long-term contracts as part of the competitive selection of wholesale electricity suppliers.
To determine whether a company should be required to procure SRECs in long-term contracts, the PSC would consider what effect that procurement would have on achieving Renewable Energy Portfolio Standard goals for solar energy use, the potential impact on consumers' bills and other factors.
Solar Hot Water
SB 717/HB 933: An Act Concerning Renewable Energy Portfolio Standard – Renewable Energy Credits – Solar Water Heating Systems
Status:
SB 717 Passed Third Reading in the Senate. Bill is in the House – First Reading, Economic Matters Committee.
HB 933 is in the House – First Reading, Economic Matters Committee.
Filed at the request of the O'Malley administration, the bill would make energy generated by certain solar water heating systems eligible for inclusion in meeting the Renewable Energy Portfolio Standard.
By adding solar water heating systems to Maryland's list of Tier 1 renewable energy sources, the bill would enable individuals operating such systems to receive Solar Renewable Energy Credits (SRECs) equal to the amount of energy generated. Total generation would be calculated by measuring the BTUs produced by the system and converting those to kilowatt hours. Residential systems, however, could not earn more than five SRECs per year. All qualifying systems would have to be installed according to state and local codes, and be outfitted with an approved energy meter.
Offshore Wind Energy
SB 861/HB 1054: The Maryland Offshore Wind Energy Act
Status:
SB 861 is in the Senate – Re-referred to Finance Committee.
HB 1054 is in the House – First Reading, Economic Matters Committee.
Filed at the request of the O'Malley administration, the bill would require the state's four investor-owned electric companies to enter into a long-term power purchase agreement with one or more qualifying offshore wind power generators.
Under the terms of the bill, the Public Service Commission would issue a single Request for Proposals by January 31, 2012 to offshore wind operators to provide a total nameplate capacity of 400-600 megawatts for 20 years to the four electric companies. The commission would evaluate the proposals based on lowest cost impact on ratepayers, price stability over the term of the contract, long-term reliability of Maryland's electricity supply, potential reduction in capacity prices within Maryland, environment and health impacts, project feasibility and other factors. Each electric company would purchase a share of the total wind power and could also receive the associated Renewable Energy Credits.
The bill also amends existing law that prohibits construction of permanent structures within Maryland's Beach Erosion Control District. The bill would permit the installation of qualified, submerged renewable energy lines from offshore wind facilities through the Beach Erosion District to shore. Developers of such transmission lines, however, would have to obtain a certificate of public convenience and necessity before beginning construction.
Wind Turbine Manufacturing
SB 881/HB 1227: An Act Concerning Economic Development Opportunities Program Account – Wind Turbine Manufacturing Facility
Status:
SB 881 is in the Senate – Re-referred to Finance Committee.
HB 1227 is in the House – Re-referred to Economic Matters Committee.
Filed at the request of the O'Malley administration, the bill would alter the state's definition of an "extraordinary economic development opportunity" to include attracting a new wind turbine manufacturing facility to Maryland. Such a facility would have to manufacture turbines for offshore wind installations or the components necessary for the operation, maintenance, transport or installation of offshore wind turbines. Such facilities would also have to create or retain substantial employment and their developers would have to invest capital amounting to at least 250 percent of state incentives. Those incentives could not exceed $50 million.
If passed, the bill would add such wind turbine manufacturing facilities to the range of enterprises eligible under Maryland's Economic Development Opportunities Program.
Sustainable Energy Utilities
HB 658: An Act Concerning the Public Service Commission – Sustainable Energy Utilities
Status:
Bill is in the House – First Reading, Economic Matters Committee.
The bill would authorize the Public Service Commission to authorize certain sustainable energy utilities to provide services, enter into contracts with residential customers and enforce payment.
The bill defines a sustainable energy utility as a person authorized to provide an energy product that either provides energy savings or generates energy from a renewable source. Under the terms of the bill, the cost of the sustainable energy product would have to be repaid within at least 20 years.
One goal of the legislation is "to promote energy conservation and the use of renewable energy by providing a secure form of long-term financing to facilitate the installation of sustainable energy products on residential property."
Biomass Heating
HB 829: The Renewable Energy for All Act
Status:
Bill is in the House – First Reading, Economic Matters Committee.
The bill would establish a Residential Biomass Heating System Grant program to help individuals offset the cost of acquiring and installing eligible biomass heating systems. The bill defines an acceptable biomass heating system as one that generates heat from the combustion of wood or other biomass fuels and does not exceed stated particulate emissions levels.
The grant program would cover up to 40 percent of the cost of installing biomass heating systems, providing a maximum grant of $1,500 per household. Only households currently heated by electricity, heating oil or propane could qualify for the grants.
The bill would also repeal the sales tax exemption on packages of firewood smaller than one-eighth of a cord. Maryland's Comptroller would then divert tax proceeds from those sales into the Residential Biomass Heating System Grant fund.