Electricity Transmission and Distribution, Energy Storage, and Maryland Strategic Energy Investment Fund (Lower Bills and Local Power Act of 2026)
HB 897, the “Lower Bills and Local Power Act of 2026,” makes a broad set of changes to Maryland’s electric transmission, clean energy, and energy-fund statutes. It would require electric companies that own or operate high-voltage transmission lines in Maryland to participate in a regional transmission organization, and it would add new application requirements for certificates of public convenience and necessity for transmission projects. Those applications would have to include at least one alternative proposal using advanced transmission technologies, along with a written comparison of cost-effectiveness, technical feasibility, and system benefits. The bill also directs the Public Service Commission to act within 180 days on certain applications involving replacement of existing line components or installation of advanced transmission technologies.
The bill creates a new Solar and Energy Storage Market Stabilization Program in the Maryland Energy Administration to provide low-interest loans or grants to clean energy projects facing financing gaps because of lost federal tax incentives. The program would prioritize shovel-ready projects, projects expected to come online within three years, and projects that incorporate energy storage, and it could be structured to favor community solar, utility-scale solar, brownfield sites, and parking canopies. The bill also expands uses of the Maryland Strategic Energy Investment Fund to support this program and to provide one-time refunds or credits to residential electric customers, labeled on bills as a “legislative energy relief refund.”
HB 897 further directs the Secretary of Transportation to develop processes and an expedited approval framework for placing electric transmission and distribution lines and battery energy storage systems within existing rights-of-way along state and interstate highways or other Department-controlled property. The Department of Transportation, working with several state agencies, would also have to study which existing rights-of-way are suitable for these facilities. Projects approved under this process would have to comply with federal law, pay fair market value and administrative costs, and cover installation, maintenance, and any required relocation costs.
The bill’s impact on state law is significant because it adds new planning, reporting, and siting requirements for transmission infrastructure while also redirecting energy-related funds toward grid upgrades, clean energy financing, and customer bill relief. It would expand the Public Service Commission’s oversight of transmission planning and approvals, create a new state grant/loan program, and authorize use of compliance-fee revenues for both renewable energy development and direct customer credits in specified fiscal years. It also introduces new definitions for advanced transmission technologies, including dynamic line ratings, advanced power flow control, topology optimization, and high-performance conductors.
The overall sentiment reflected by the bill’s sponsorship and structure appears strongly supportive of grid modernization, renewable energy deployment, and near-term bill relief. There are no recorded committee transcripts or votes in the provided material, so no formal opposition is documented here. The main points of potential contention are likely to be the expanded regulatory requirements on utilities, the use of Strategic Energy Investment Fund dollars for customer refunds and new programs, the state’s role in directing transmission siting on transportation property, and the requirement that utilities consider advanced technologies before pursuing traditional transmission projects.
HB 897 would amend the Public Utilities Article, State Government Article, and Transportation Article to add new obligations for electric companies, transmission utilities, the Public Service Commission, the Maryland Energy Administration, and the Department of Transportation. It would require regional transmission organization participation for certain in-state transmission owners, impose new certificate application and review requirements for transmission projects, establish a new clean-energy financing program, authorize new uses of the Maryland Strategic Energy Investment Fund, and create a state process for siting transmission lines and battery storage in transportation rights-of-way. The bill would also affect residential electric customers through a one-time refund or credit mechanism funded by compliance fees.
The bill’s framing and sponsors suggest a generally favorable, pro-clean-energy and pro-consumer sentiment, emphasizing lower bills, grid reliability, and faster deployment of transmission and storage infrastructure. Because no committee testimony or vote record is provided, there is no direct evidence of formal support or opposition in the available materials. Based on the text alone, the bill appears designed to appeal to advocates of renewable energy, transmission modernization, and bill relief, while also signaling a strong policy preference for state-directed planning and oversight.
Likely points of contention include whether the bill gives the Public Service Commission and state agencies too much control over transmission planning and siting, whether utilities should be required to evaluate advanced transmission technologies before proposing conventional projects, and whether the Strategic Energy Investment Fund should be used for customer refunds and new grant/loan programs rather than other clean-energy purposes. Utilities and some stakeholders may also object to the requirement to join a regional transmission organization, the expedited approval timelines, and the obligation to pay fair market value and relocation costs for projects in transportation rights-of-way. Supporters are likely to emphasize lower costs, increased capacity, and improved reliability, while critics may focus on administrative burden, cost recovery, and implementation complexity.