State and Local Policy Database

Maryland

State Scorecard Rank

9

Maryland

32.0Scored out of 50Updated 9/2016
State Government
Score: 5.5 out of 7
State Government Summary List All

Maryland offers a variety of incentives for energy-efficient investments, as well as Property Assessed Clean Energy (PACE) financing. The state government leads by example by requiring energy-efficient public buildings, benchmarking energy use, and encouraging the use of energy savings performance contracts. Two research centers in Maryland focus on energy efficiency.

Financial Incentives List All

Financial Incentive information for Maryland is provided by the Database of State Incentives for Renewables and Efficiency (DSIRE Maryland) and State Energy Office contacts. Information about additional incentives not present on DSIRE is listed here. In addition to the state-funded incentives on DSIRE and below, Maryland has enabled Property Assessed Clean Energy (PACE) financing and has one active program. For additional information on PACE, visit PACENation.

Smart Energy Communities Program: Local governments in Maryland may choose to adopt two of three policies related to energy efficiency, renewable energy, and transportation petroleum reduction - and become a Smart Energy Community. Once the policies are adopted, the local government becomes eligible for grant funding ranging from $35,000 to $625,000. Technical assistance to implement the policies will also be provided. Total available funding is approximately $4.5 million.

Last Updated: July 2016

Building Energy Disclosure List All

There is no disclosure policy in place.

Last Updated: July 2016

Public Building Requirements List All

Senate Bill 267 (2006) requires the Department of General Services to set reductions in energy consumption for State buildings: 5% by 2009 and 10% by 2010. This bill excludes the Department of Transportation's buildings. By 2012, energy consumption for all state facilities decreased 8.7% from a 2008 baseline.  Approximately 600 state buildings have received energy upgrades through the EPC process. Also, in early 2013, MEA and the Department of General Services (DGS) collaborated on a “Roadmap for Energy Efficiency in State Buildings.” The Roadmap has the support of the Governor and calls for 20% energy savings in State agency facilities by 2020 based on a 2008 baseline. The Roadmap also requires state agencies to appoint an Agency Energy Coordinator (AEC) and to write an Agency Energy Plan (AEP). To date, all agencies have named an AEC and 21 agencies have submitted AEPs.

As part of its High Performance Green Building Program, since 2008 Maryland has required all new fully State funded building projects, plus partially State funded K-12 schools and Community College buildings exceeding 7,500 gross square feet to meet LEED Silver requirements (see S.B. 208 and H.B. 376). This includes a requirement to achieve a mandatory 30% reduction in energy usage.

Maryland is currently benchmark buildings (with individual meters) with its EnergyCAP database, which integrates with ENERGY STAR Portfolio Manager. The EnergyCAP database compiles data on all state-owned buildings and allows for comparison of the building stocks of different agencies.

Article - State Finance and Procurement §3–602.1 was amended during the 2014 session of the General Assembly to include compliance “with a nationally recognized and accepted green building code”. Following this, the Green Building Council adopted and amended the International Green Construction Code (IgCC) for the use of State agency buildings, who may now choose between LEED and the IgCC.

Last Updated: July 2016

Fleets List All

Maryland does not currently have an energy efficiency requirement for the state vehicle fleet. However, the Maryland Energy Administration runs the Maryland Smart Energy Communities program, which incentivizes local governments to adopt policies related to the energy efficiency of their buildings and fleets.  By participating in this program, local governments set the goal of reducing their fleet’s petroleum consumption by at least 20%.  There are 67 participating local governments, including the largest cities and counties in the state.

Last Updated: July 2016

Energy Savings Performance Contracting List All

In 2007, Governor O’Malley mandated reducing energy consumption in state buildings through a variety of means, including ESPCs. Additionally, Maryland statutes required state agencies to assess their energy use and present energy conservation and efficiency plans by 2008, citing ESPCs as one of the key options to attain these goals. The Department of General Services (DGS) manages the day-to-day operations of ESPCs in the state with some assistance from the Maryland Energy Administration. The state provides an in-depth guide to ESPC contracting and qualification processes and has produced a series of helpful documents description the history of ESPCs. Maryland maintains a list of prequalified ESCOs and is also currently working on a database to publicly track energy usage by state agency. In 2013, DGS approved two small ESCO firms to work through an “Indefinite Delivery Contract” and are available to work on small energy efficiency and renewable energy projects for state agencies. 

MEA also runs the Energy Performance Contracting Assistance Program to provide technical assistance and owner’s agent to local governments and public housing authorities as they pursue EPCs.

Last Updated: July 2016

Research & Development List All

The University of Maryland’s Energy Research Center (UMERC) is a campus-wide research center dedicated to the development of energy-efficient and environmentally sustainable technologies and practices. UMERC also educates the public on matters of energy efficiency and sustainability, and the global impact of energy policy and practices, and is engaged in promoting policies that encourage sustainability and energy efficiency. In terms of energy efficiency, they focus specifically on HVACCHP, lighting and building efficiency, and waste heat recovery. UMERC and its affiliated faculty receive funding from the University of Maryland, the U.S. DOE, and a variety of other sources based on research topic.

The Maryland Clean Energy Center (MCEC) serves as a hub and key information resource for businesses in the energy efficiency and conservation sectors. MCEC holds its annual Clean Energy Summit and features a series of educational sessions about emerging technologies and practices such as smart grid and advanced metering infrastructure and innovative financing. MCEC sponsors the Maryland Clean Energy Technology Incubator@bwtech (CETI@bwtech). CETI supports entrepreneurs and early stage energy efficiency and conservation businesses seeking to transition from research and development into demonstration and ultimately commercialization. CETI provides services specifically tailored to the needs of companies working with renewable energy, as well as energy management and storage technologies. University of Maryland, Baltimore County (UMBC) faculty and students in the clean energy sector also provide tenant companies with assistance. 

Last Updated: July 2016

Buildings
Score: 6.5 out of 7
Buildings Summary List All

The 2015 Maryland Building Performance Standards are mandatory statewide and reference the 2015 IECC for residential and commercial buildings. Localities are permitted to adopt stretch codes that are more stringent than the statewide code. To date, Baltimore City has adopted the 2012 IgCC. The state has implemented a variety of measures to ensure code compliance.

Residential Codes List All

Effective January 1, 2015, the 2015 Maryland Building Performance Standards are mandatory statewide and reference the 2015 ICC Codes, including the 2015 IECC, for all new and renovated residential buildings. § 12-503 of the Maryland Code requires the Department of Housing and Community Development to adopt the most recent version of the IECC twelve (12) months after it is issued and may adopt energy conservation requirements that are more stringent than the codes, but may not adopt energy conservation requirements that are less stringent. Each locality in the state must adopt and begin enforcement of the code within 12 months of state adoption. All counties and Baltimore City have adopted and are enforcing the 2012 IECC.

Last Updated: June 2016

Commercial Code List All

Effective January 1, 2015, the 2015 Maryland Building Performance Standards are mandatory statewide and reference the 2015 ICC Codes, including the 2015 IECC, for all new and renovated commercial buildings. § 12-503 of the Maryland Code requires the Department of Housing and Community Development to adopt the most recent version of the IECC twelve (12) months after it is issued and may adopt energy conservation requirements that are more stringent than the codes, but may not adopt energy conservation requirements that are less stringent. Each locality in the state must adopt and begin enforcement of the code within 12 months of state adoption. All counties and Baltimore City have adopted and are enforcing the 2012 IECC.

Last Updated: June 2016

Compliance List All
  • Gap Analysis/Strategic Compliance Plan: The Maryland Energy Association (MEA) completed a gap analysis and compliance plan, “Reaching 90% Compliance: Maryland Building Code Compliance Roadmap” in February 2012.
  • Baseline & Updated Compliance Studies: Maryland, through a current DOE award, has an ongoing statewide effort to determine the rate of code compliance in all counties. Compliance studies in 2013 and 2014 were completed in two of the states largest counties - Howard and Montgomery - showing compliance rates above 90%.
  • Utility Involvement: NA
  • Stakeholder Advisory Group: MEA established a Codes Compliance Work Group (CCWG) in 2012. The CCWG was put together last year and met three times to give input and direction to MEA’s efforts at increasing compliance with the code. The group is composed of MEA, the Department of Housing and Community Development (DHCD), local code officials, architects, builder’s trade groups and builders. There are about 20 members.
  • Training/Outreach: MEA, through a DOE award, is scheduling numerous on-site trainings to be held throughout 2015 and 2016. MEA also provides an Energy Code Coaching service that is available by email or telephone.

Last Updated: July 2015

CHP
Score: 4 out of 4
CHP Summary List All

Maryland has an interconnection standard that applies to CHP, offers incentives for CHP development, and includes CHP within its portfolio standards. Also, utility rate structures in the state are designed to encourage CHP investment. In 2015, no new CHP installations were completed.

Interconnection StandardsList All

Policy: Code of Maryland Regulations Title 20, Subtitle 50, Chapter 9: Small Generator Interconnection Standards

Description: Enacted by the Maryland Senate in 2007 and effective 2009, Maryland’s small generator interconnection rules delineate four distinct tiers of interconnection, and the smallest systems are not subject to fees to apply for interconnection. The rules cover interconnection for systems up to 10 MW in size, and specifically allow for the interconnection of CHP. Systems must adhere to the standards promulgated in IEEE 1547.

Last Updated: July 2016

Encouraging CHP as a ResourceList All

CHP in Energy Efficiency Standards: The state’s Energy Efficiency Resource Standard under EmPOWER Maryland ended in 2015 and a new energy efficiency goal of 2% of annual retail sales beginning from 2018 was established. Electricity savings generated from CHP systems are eligible to be counted toward the savings goals.

CHP resource acquisition programs: Utilities in Maryland are running CHP programs to fulfill their three-year plans (2015 – 2017) for meeting the savings target set by the EmPOWER Maryland Efficiency Act of 2008. Baltimore Gas & Electric (BG&E) offers its Smart Energy Savers Program to nonresidential, industrial, commercial, government, institutional and nonprofit electric service customers, regardless of their gas and/or electricity supplier. Delmarva Power and Pepco offer their CHP programs to a similar customer base in their respective territories. These utility-run CHP programs provide financial incentives to commercial and industrial customers that employ CHP to reduce their energy consumption and demand usage.

Revenue streams: CHP systems established under the above mentioned programs have access to various performance-based incentives. For example, BGE, Delmarva Power, and Pepco each program offers offer $0.07/kWh for net electricity produced during the 18 months following system commissioning.

Last Updated: July 2016

Deployment IncentivesList All

Incentives, grants, or financing: The Maryland Energy Administration is offering a CHP Grant Program in fiscal year 2016 to encourage CHP at industrial facilities and critical infrastructure facilities (including healthcare, wastewater treatment, and essential state and local government buildings). The goal of the program is to increase the energy resiliency of these facilities while also contributing to the state's energy savings targets. Incentives range from $425/kW to $575/kW per project, based on the size of the system and funding availability. Up to $4.025 million is available for this program in 2016. CHP projects may also be eligible for other assistance through Maryland Energy Administration’s Lawton Loan Program or Maryland’s Clean Energy Capital program.

Net metering: Maryland’s net-metering law has been expanded several times since it was originally enacted in 1997. In their current form, the rules apply to all utilities -- investor-owned utilities (IOUs), electric cooperatives and municipal utilities. Residents, businesses, schools or government entities with systems that generate electricity using micro-CHP resources are eligible for net metering. The law permits outright ownership by the customer-generators as well as third-party ownership structures (e.g., leases and power purchase agreements). The provisions allowing for micro-CHP systems (H.B. 1057) and certain third-party ownership structures (S.B. 981) were added in May 2009 and took effect July 1, 2009. CHP systems exceeding 30 kW in capacity are not eligible. In 2011 the law was expanded to require utilities to develop a standard tariff for net metering (S.B. 380).

Last Updated: July 2016

Additional Supportive PoliciesList All

Some additional supportive policies exist to encourage the use of renewable-fueled CHP systems. According to Maryland's Renewable Energy Portfolio Standard utilities are required to meet 12% of retail sales in 2016 with Tier I resources, which include waste-to-energy systems. The percentage expands up to 18% in 2022.

Last Updated: July 2016

Utilities
Score: 9.5 out of 20
Utilities Summary List All

Although Maryland’s utilities ran energy efficiency and demand response programs in the 1980s and early 1990s, most of these efforts were discontinued when the state removed regulations during utility restructuring in the late 1990s. This changed when the legislature enacted the EmPower Maryland Energy Efficiency Act of 2008, creating an EERS that sets a statewide goal of reducing per capita electricity use by 15% by 2015 with targeted reductions of 5% by 2011 (Order 82344).  Since then, electric utilities have significantly expanded their energy efficiency program portfolios. More recent goals set by the PSC require utilities to ramp up savings by 0.2% per year to reach 2% incremental savings. Utilities must file their energy efficiency program plans with the Public Service Commission, which then must approve the plans. The PSC has allowed some utilities to decouple their profits from their sales. Utilities do not have an option to earn shareholder performance incentives, although cost recovery amortized over multiple years may include a return. 

The most recent budgets for energy efficiency programs and electricity and natural gas savings can be found in the State Spending and Savings Tables.

In February 2008, as part of the State Clean Energy Resource Project, ACEEE completed the report Energy Efficiency: The First Fuel for a Clean Energy Future; Resources for Meeting Maryland's Electricity Needs.

Last Updated: August 2015

Customer Energy Efficiency Programs List All

The EmPower Maryland Energy Efficiency Act of 2008 directs the Maryland Public Service Commission (PSC) to require electric utilities in the state to provide energy efficiency services to its customers to achieve 10% of the 15% per-capita electricity use reduction goal by 2015 (Order 82344). Utilities must also decrease peak demand by 15% by 2015. Beginning in 2016, electric utilities must ramp up programs to increase incremental savings by 0.2%, leveling out when savings reach 2% per year.

Electricity savings and demand reduction plans and cost recovery proposals were required to be filed with the PSC beginning on September 1, 2008 and every three years thereafter. On December 22, 2011, the PSC approved plans for the second three-year cycle (2012-2014) from Baltimore Gas & Electric (Case 9154, Order 84569), Delmarva Power and Light (Case 9156, Order 84569),  Potomac Electric Power Company (PEPCO) (Case 9155, Order 84569), Potomac Edison (PE) (Case 9153, Order 84569), and Southern Maryland Electric Cooperative (SMECO) (Case 9157, Order 84569). The plans for the third three-year-cycle (2015-2017) were approved on December 23, 2014 with Order 86785. This was the first program cycle for a natural gas program to be approved and implemented in the Washington Gas Light service territory (WGL) (Case 9362).

In 2011, the Commission approved the implementation of smart meters for Baltimore Gas and Electric and PEPCO. Delmarva Power and Light received Commission approval to implement smart meters in 2012, and the Southern Maryland Electric Cooperative was approved in 2013. 

Funding sources for energy efficiency programs are primarily through each utility’s EmPOWER Maryland surcharge on customer bills. Additionally, revenue streams resulting from demand response and energy efficiency resources being bid into the PJM BRA are used to offset the costs of the efficiency programs.

The most recent budgets for energy efficiency programs and electricity and natural gas savings can be found in the State Spending and Savings Tables.

Last Updated: July 2016

Energy Efficiency as a Resource List All

Since July 2008, utilities are required to consult with the Maryland Energy Administration (MEA) every three years regarding their plans to achieve the required energy savings and demand reduction goals. The plans for the 2015-2017 program cycle were submitted on September 2nd, 2015, and approved on December 23, 2014 by Order No. 86785. The 2015-2017 program cycle marks the first cycle in which a natural gas utility, Washington Gas and Light, is offering a standalone natural gas efficiency program. 

The utilities must also submit semi-annual updates to the PSC and MEA.

Last Updated: July 2016

Energy Efficiency Resource Standards List All

Summary: 15% per-capita electricity use reduction goal by 2015 calculated against a 2007 baseline (10% by utilities, 5% achieved independently). Beginning in 2016, utilities must ramp up programs by 0.2% per year, leveling out at 2% incremental savings per year through 2020.

The EmPOWER Maryland Energy Efficiency Act of 2008 directed the Maryland Public Service Commission (PSC) to require electric utilities in the state to provide energy efficiency services to its customers to achieve 10% of the 15% per-capita electricity use reduction goal by 2015 calculated against a 2007 baseline (Order 82344). The 15% goal is equivalent to approximately 8,303 GWh. Utility programs must also achieve a reduction in per capita peak demand of at least 5% by end of 2011, 10% by 2013, and 15% by 2015. 

The Maryland Energy Administration (MEA) and other public and private stakeholders, including the Department of Housing and Community Development (excluding weatherization programs implement programs funded through the EmPOWER Maryland surcharge) aimed toward achieving the remaining 5% of the overall 2015 electricity savings, although no specific legal requirement exists.

Legislative goals ended in 2015. The goals were essentially achieved by the participating utilities with final achievement rates of 99 percent for the energy savings (MWh) goal and 100 percent for the peak demand savings (MW) goal. On a per capita basis, the Maryland electric utilities and cooperatives as a whole met the 10 percent reduction goal for energy use, but did not meet the 15 percent demand reduction goal, with 11 percent and 8 percent achieved respectively.

The PSC issued new EmPOWER targets with Order 87082 in July 2015. The order requires utilities to ultimately achieve savings of 2 percent per year by ramping up incremental savings at a rate of 0.2 percent per year beginning in 2016. Work groups were established by the order to determine natural gas goals and limited income goals. The proposals were filed in February 2016 and will be discussed at the semi-annual hearings in May 2016.

Last Updated: July 2016

Utility Business Model List All

The Public Service Commission approved revenue-per-customer decoupling for the three investor-owned utilities in Maryland: PEPCO, Delmarva Power and Light, and Baltimore Gas & Electric.  Delmarva and PEPCO file bill stabilization adjustments monthly. Natural gas decoupling has been in place for Washington Gas Light since 2005. (Sources: Delmarva Case Jacket 9093, Order 81518, July 2007; PEPCO Case Jacket 9092, Order 81517, July 2007; Washington Gas Light Case Jacket 8990, Order 80130, August 2005)

Senate Bill 205 allows the Public Service Commission to approve financial incentive mechanisms for gas and electric companies, in appropriate circumstances, to promote energy efficiency and conservation programs. No incentives have been approved.

Last Updated: July 2016

Evaluation, Measurement, & Verification List All
  • Cost-effectiveness test(s) used: TRC, UCT, PCT, SCT, RIM
  • Uses a deemed savings database: no

The evaluation of ratepayer-funded energy efficiency programs in Maryland relies on both legislative mandates (Empower Statute Public Utilities 7-211)and regulatory orders (Orders in case numbers 9153-9157Order 82869, and Order 87082). The order follows the legislation. Evaluations are administered by both the utilities and the Maryland Public Service Commission. Maryland has established formal rules and procedures for evaluation, which are stated in the Maryland Strategic Evaluation Plan. Evaluations are conducted statewide and for each of the utilities. Maryland uses all of the five classic benefit-cost tests identified in the California Standard Practice Manual. These are the Total Resource Cost (TRC), Utility/Programs Administrator (UCT), Participant (PCT), Social Cost (SCT), and Ratepayer Impact Measure (RIM). The rules for benefit-cost tests are stated in Public Utilities 7-211 and Orders in case numbers 9153-9157. Maryland specifies the TRC to be its primary cost-effectiveness test. These benefit-cost tests are required for overall portfolio, total program, and customer project level screening, with exceptions for low-income programs, pilots, and new technologies.

In Maryland, reported savings are evaluated by Navigant (the utilities' EM&V contractor) and verified by Itron (the PSC's independent evaluator). EM&V is done on an annual basis and results are filed with the Commission between March/April for evaluation and between May/June for verification.

Last Updated: July 2016

Guidelines for Low-Income Energy Efficiency Programs List All

Requirements for State and Utility Support of Low-Income Energy Efficiency Programs

Order No. 87082, issued in July 2015, directed the Limited-Income Work Group to consider and develop a recommended post-2015 goal for the EmPOWER limited-income programs no later than February 1, 2016.

In February 2016, the Work Group released a summary report, but they did not come to a consensus on one recommendation. Rather, the report provided recommendations based upon agreement on certain points among various stakeholders, such as customer eligibility and overlaps between electric and natural gas utility service territories.

Cost-Effectiveness Rules for Low-Income Energy Efficiency Programs

In Order No. 87082 the PUC requires cost-effectiveness screening for limited-income programs, but indicated the programs may still be implemented without satisfying the test, stating:

 “We accept the recommendation of the Coalition that, while cost-effectiveness screening of the limited income sub-portfolio shall be required in the same manner as with respect to the other EmPOWER sub-portfolios, the results of the limited-income sub-portfolio screening shall serve as a point of comparison to other jurisdictions and past programmatic performance rather than as the basis for precluding certain limited-income program offerings.”

Coordination of Ratepayer-Funded Low-Income Programs with WAP Services

Level of coordination is unclear from publicly available data.

Last updated: April 2017

Self Direct and Opt-Out Programs List All

There are no self-direct or opt-out provisions available to utilities in Maryland.

Last updated: July 2016

Data AccessList All

Guidelines for Third Party Access

Per House Bill 311, an electric or gas supplier is prohibited from disclosing energy use data unless permitted by the customer (COMAR 20.53.07.02).

Requirements for Provision of Energy Data

Maryland does not have any policies in place that require the provision of energy use data. 

Energy Use Data Availability

The state does not have a standardized system through which access to individual or aggregated energy use data may be requested. 

Last Updated: July 2016

 

Transportation
Score: 6.5 out of 10
Transportation Summary List All

The state devotes a significant amount of funding to transportation projects, has tailpipe emissions standards, and integrates transportation and land use planning.

Tailpipe Emission Standards List All

On April 24th 2007, Government Martin O’Malley signed the Clean Cars bill into law in Maryland committing to a 30% reduction in average new vehicle greenhouse gas emissions from 2002 levels by 2016. The state has also adopted California's Zero-Emission Vehicle (ZEV) program, which requires increasing production of plug-in hybrid, battery electric, and fuel-cell vehicles from 2018 to 2025. 

Last Updated: July 2015

Transportation System Efficiency List All

Transportation and Land use Integration: Like Oregon, Washington, California and Massachusetts, the state of Maryland is a leader in the implementation of smart growth policy. In 1992, the state passed the Economic Growth, Resource Protection and Planning Act as a means to coordinate planning priorities amongst state, regional and municipal government. The act mandates the consideration of conservation practices and transportation in the creation of comprehensive plans.

Maryland’s Smart Growth program, initiated in 1997, aims to promote development near transit hubs and other centers of activity. Policies to encourage this development include focusing state spending on existing centers and areas designated for growth, limiting road expansion in favor of public transit and promoting urban redevelopment. In 2001, Maryland state general assembly dedicated $500 million to the upgrade of mass transit service and infrastructure.

VMT Targets: No policy in place or proposed.

Complete Streets: In 2005, Maryland implemented state code § 2-602, which requires that the needs of bicyclists and pedestrians be considered when creating transportation plans. All future plans must also ensure that pedestrian and bicycle access to transportation facilities are not negatively impacted.

MAP 21 Freight Plans and Goals

The state has a comprehensive statewide freight plan but it does not highlight concrete freight system efficiency strategies or include efficiency performance measures.  

Last Updated: June 2016

Transit Funding List All

No policy in place or proposed.

Last Updated: July 2015

Incentives for High-Efficiency Vehicles List All

Purchasers of qualifying all-electric and plug-in hybrid-electric light-duty vehicles may claim up to $3,000 against the vehicle excise tax in the state of Maryland, depending on the battery weight of the vehicle. 

Last Updated: July 2015

Appliance Standards
Score: 0 out of 2
Appliance Standards Summary List All

Policy: Articles § 9-2006 and 14.26.03, Maryland Energy Efficiency Standards Act

Description: In 2004 the Maryland Energy Efficiency Standards Act (EESA) was passed establishing minimum energy efficiency standards for nine products. All nine products covered by the EESA were preempted by the federal Energy Policy Act of 2005 immediately or by January 1st, 2010. In 2007, Maryland created standards for an additional seven products, although four of these standards were preempted by federal standards included in the Energy Independence and Security Act of 2007. Of the products for which Maryland has introduced standards, only two have not yet been preempted by federal standards: bottle-type water dispensers and commercial hot-food holding cabinets.

Last Updated: July 2016