Regional Greenhouse Gas Initiative, EmPOWER Energy Efficiency Programs, and Community Solar Energy Generating Systems
Summary
HB1525 would require Maryland to withdraw from the Regional Greenhouse Gas Initiative (RGGI) by January 1, 2027, while also creating a narrow path for the State to rejoin later if either all other PJM-served states become full RGGI members or Maryland becomes and remains a net exporter of electricity. If the State rejoins, auction proceeds from Maryland carbon allowances would continue to be deposited into the Maryland Strategic Energy Investment Fund. The bill also removes the existing surcharge mechanism used to recover costs associated with EmPOWER energy efficiency programs.
In addition, the bill changes rules for community solar energy generating systems. It provides that tariffs approved by the Public Service Commission may not require an electric company to buy electricity from, or provide bill credits to, community solar subscribers or subscriber organizations at a rate above the electric company’s standard offer service generation cost. The bill takes effect October 1, 2026, and includes notice requirements for the Governor to inform legislative services within five days of any RGGI withdrawal or reentry.
Impact
The bill would amend the Environment Article and Public Utilities Article to alter Maryland’s participation in RGGI, eliminate the statutory surcharge framework supporting EmPOWER cost recovery, and limit the pricing terms that may be included in community solar tariffs. It would reduce or remove certain utility cost-recovery provisions currently embedded in law, while preserving the possibility of future RGGI participation under specified conditions and maintaining the Strategic Energy Investment Fund as the destination for allowance-sale proceeds if reentry occurs. The Public Service Commission would retain implementation authority, but within tighter limits on community solar compensation.
Sentiment
The available context shows the bill was introduced and referred to the House Environment and Transportation Committee, with no recorded votes or transcript excerpts provided. Based on the bill’s sponsors and subject matter, it appears to be a policy-driven effort to roll back or constrain existing climate and clean-energy cost mechanisms rather than a consensus measure. The absence of committee testimony or vote history means there is no documented public sentiment in the provided materials beyond the bill’s introduction and hearing status.
Contention
The main points of contention are likely to be Maryland’s continued participation in RGGI, the removal of EmPOWER surcharge-based cost recovery, and the cap on community solar compensation. Supporters may view the bill as lowering utility bills, limiting ratepayer charges, and reducing mandates tied to climate policy. Opponents are likely to argue that withdrawing from RGGI weakens greenhouse gas reduction efforts, that eliminating EmPOWER recovery could undermine energy efficiency programs, and that restricting community solar bill credits could harm solar developers, subscriber organizations, and clean-energy expansion.
Electricity and Gas - Emissions Reductions, Rate Regulation, Cost Recovery, Infrastructure, Planning, Renewable Energy Portfolio Standard, and Energy Assistance Programs (Next Generation Energy Act)