Maryland
State Scorecard Rank
7
Maryland
33.0Scored out of 50Updated 12/2022
State Government
Score: 9 out of 9
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
The state of Maryland offers the following financial incentives to encourage energy efficiency improvements:
- Smart Energy Communities Grant 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.
- Commercial, Industrial, and Agriculture Grant Program: Provides grants to commercial, industrial, farms, and other agricultural entities for the implementation of energy efficiency improvement projects to their facilities.
- MARBIDCO Rural Business Energy Efficiency Improvement Loan Fund
- Be SMART Home and Multifamily Efficiency Loan Programs
- Jane E. Lawton Conservation Loan Program: The Lawton program makes low-interest energy efficiency loans available for businesses, nonprofits, state agencies, and local governments.
- Data Center Energy Efficiency Grant Program: The DCEEG program provides grants on a first-come, first-served basis to encourage innovative and cost-effective energy efficiency technologies in Maryland data centers. The DCEEG program is open to all commercial, industrial, state/local government, or non-profit data centers in Maryland with an overall data facility floor size of 1,000 square feet or greater.
- Combined Heat and Power Grant Program: This first-come, first-served program provides Maryland organizations with capital incentives to install qualified CHP systems at their facilities to enhance operational efficiency, cost reductions, sustainability, and resilience against power disruptions. Awards are available to a wide array of industries and building types.
- Low-to-Moderate Income Energy Efficiency Grant Program
- Energy-Water Infrastructure Program
- Clean Energy Grant Program: Provides rebate-type grants for new ground source heat pumps.
- Energy-Efficient Homes Construction Loan Program: Provides loans to rehabilitated or new construction projects that achieve low energy use (Home Energy Rating
- System score of 50 or less) or net zero upon completion.
- Resilient Maryland
- Streetlight and Outdoor Lighting Efficiency Pilot Program: The FY22 Streetlight and Outdoor Lighting Efficiency (SOLE) pilot program will make grants available to eligible entities to defray the cost of replacing outdated, less efficient pole-mounted fixtures used for street lighting, parking lot illumination, parks, athletic fields and other outdoor lighting systems, along with implementing certain lighting controls.
- Decarbonizing Public Schools Pilot Program: Help Local Education Agencies (LEAs) develop capacity and advance strategies for promoting clean and efficient energy use within their portfolio of current and future K-12 schools and support facilities. Area of Interest (AOI) 1 will defray the costs of energy data management and use of ENERGY STAR Portfolio Manager®(Portfolio Manager). AOI 2 will help cover the cost of incorporating net zero energy (NZE) design principles into facility development portfolios and long-term capital plans.
Further financial incentive information can be found in the Database of State Incentives for Renewables and Efficiency (DSIRE Maryland). In addition to these state-funded incentives, Maryland has enabled commercial Property Assessed Clean Energy (PACE) financing and has two active programs. For additional information on PACE, visit PACENation.
Last Reviewed: June 2022
Equity Metrics and Workforce DevelopmentList All
Maryland is a participant in the Regional Greenhouse Gas Initiative (RGGI) cap and trade program. After deducting any funding mandated for specific programs as defined in Senate Bill 9–20B–05 of the State Government Article, the remaining proceeds from the sale of carbon allowances shall be allocated so that "at least 20% shall be credited to a low and moderate income efficiency and conservation programs account and to a general efficiency and conservation programs account for energy efficiency and conservation programs, projects, or activities and demand response programs, of which at least one–half shall be targeted to the low and moderate income efficiency and conservation programs account". In this way, at least 10% of the remaining allowance proceeds, after accounting for any other statutory mandates, are allocated to low-to-moderate income energy efficiency.
9-20B-05 of the State Government article mandates that alternative compliance payments from Maryland's Renewable Portfolio Standard (RPS) be invested to support the creation of new solar (or other RPS-eligible) energy sources in the State that are owned by or directly benefit: (i) low– to moderate–income communities located in a census tract with an average median income at or below 80% of the average median income for the State; or (ii) overburdened or underserved communities, as defined in § 1–701 of the Environment Article.
The Commission on Environmental Justice and Sustainable Communities (CEJSC) is a twenty-member body that is tasked with advising State government on environmental justice and analyzing the effectiveness of State and local government laws and policies to address issues of environmental justice and sustainable communities. The Commission is charged with:
- Advising the State government agencies on EJ,
- Analyzing the effectiveness of State and local government laws and policies to address issues of EJ and sustainable communities,
- Coordinating with the Children's Environmental Health and Protection Advisory Council (CEHPAC) on the issues of EJ and sustainable communities,
- Developing criteria to assess what communities in MD may be experiencing EJ issues and recommending options for addressing EJ issues to the Governor and the General Assembly, including prioritized areas of the State that need immediate attention.
The Governor, the Senate President, and the Speaker of the House appoint representatives of communities concerned with EJ, the business communities, environmental organizations, health experts, and an academic institution with an EJ institute. See https://mde.maryland.gov/Environmental_Justice/Pages/CEJSC.aspx
Workforce Development
Legislation passed in 2019 established a Clean Energy Workforce Account within the Maryland Department of Labor to fund clean energy job training related to renewable energy, energy efficiency, energy storage, resource conservation, and advanced transportation. Per the statute, funding will begin in fiscal year 2021 and eventually total $8M. These funds originate through the Regional Greenhouse Gas Initiative (RGGI). The funding that goes to the Department of Labor is to be used to help with a documented strategy for increasing apprenticeship opportunities for unemployed and underemployed individuals.
Last Reviewed: November 2024
Carbon Pricing PoliciesList All
Maryland is a member of the Regional Greenhouse Gas Initiative (RGGI), a cap-and-trade program for reducing GHG emissions in North America that began its compliance period in 2009. Capping CO2 emissions from the power sector, the program aims to reduce emissions by 45% below 2005 levels by 2020 and additionally by 30% by 2030.
Maryland's proceeds from RGGI get invested in the Strategic Energy Investment Fund (SEIF). Since inception in 2008 (and through the last RGGI auction in December 2019), Maryland has received over $684 million of revenues from the auction of RGGI carbon allowances for use in its Strategic Energy Investment Program. The most recent version of the RGGI report (covering 2008 through 2017, published in October 2019) shows 29.9% of Maryland's SEIF funds were ultimately directed towards energy efficiency.
Maryland is also a participant in the Transportation and Climate Initiative’s effort to develop a cap-and-invest program for transportation emissions.
Maryland has passed a Greenhouse Gas Reduction Act that requires the development of a greenhouse gas reduction plan, and established a Maryland Climate Change Commission to help with the development of the plan. In regards to this effort, greenhouse gas reductions are tracked economy wide, thus reflecting the results of energy efficiency and renewable energy efforts, but are not tracked for just energy efficiency programs. Some reports by the EmPOWER energy efficiency utilities include information about GHG reduction resulting from energy efficiency programs, but the reporting is not required. This information may also be noted on the Maryland Public Service Commission data request submission.
Per state legislation SB0528, Maryland does have a statewide emissions reduction goal in place, specifically to reduce emissions 100% by 2045 (baseline year 2006).
Last Reviewed: November 2024
Building Energy Disclosure List All
There is no disclosure policy in place. However, under Chapter 38 of the Acts of the Maryland General Assembly of 2022, owners of covered buildings will be required to measure and report direct emissions data to the Maryland Department of the Environment beginning in 2025. A covered building is a commercial or multifamily residential building or a building owned by the state, and has a gross floor area of 35,000 square feet or more, excluding a parking garage area. A covered building does not include a historic property, an elementary or secondary school building, a manufacturing building, or an agricultural building.
Last Reviewed: May 2022
Public Building Requirements List All
House Bill 662, enacted in the 2020 session of the MD General Assembly set new energy savings goals for State-owned buildings calling for 10% savings by 2029 over a fiscal year 2018 baseline. Additionally, in May 2023 Governor Moore issued Executive Order 01.01.23.07 which established a goal of reducing energy consumption in state buildings by 20% by 2031.
As part of its High Performance Green Building Program, since 2008 Maryland has required new fully State funded building projects, plus partially State funded K-12 schools and Community College buildings exceeding 7,500 gross square feet to either achieve LEED Silver requirements, the current International Green Construction Code (IGCC), or Two Globes of the Green Building Institute’s Green Globes program. There are a few exceptions for facilities like warehouses and pumping stations. - Maryland currently benchmarks 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. It includes all utility bills from over 50 state agencies, including the University System of Maryland. The database allows energy benchmarking and cost savings analysis.
Maryland passed a Building Energy Performance Standard for buildings over 35,000 square feet (with some exceptions possible for historic buildings, public and nonpublic elementary and secondary schools, manufacturing buildings, agricultural buildings, and federal buildings. The Maryland Department of Environment predicts that about 124 public buildings (excluding federal facilities) across the state will be covered by the building energy performance standard.
Last Reviewed: November 2024
Fleets List All
Chapter 38 (pages 85 and 86) of the Acts of the Maryland General Assembly in 2022 stated that it is the intent of the General Assembly that 100% of passenger cars in the state vehicle fleet be zero-emission vehicles by 2031, and other light-duty vehicles by 2036, with exceptions for vehicles with special performance requirements necessary for the protection and welfare of the public, or for paratransit service provided by the Maryland Transit Administration. Interim goals for zero-emission vehicles (ZEV) are established by fiscal year (FY) (i.e., for FY23-FY25, at least 25% of passenger cars purchased for the state fleet are ZEV; in FY26 and FY27, at least 50% of passenger cars purchased for the state are ZEV; and beginning in FY28, 100% or passenger cars purchased for the state fleet are ZEV). Additionally, beginning in fiscal year 2024, any passenger car purchased for the state fleet that is not a zero-emission vehicle should be a hybrid vehicle. Finally, for other light-duty vehicles purchased for the state fleet, at least 50% are ZEV in FY31 and FY32 and 100% by FY33.
Last Reviewed: November 2024
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.
Maryland is currently on the state's 8th version of the Indefinite Delivery Contract (IDC) for Energy Performance Contracting (EPC) services. The Department of General Services (DGS) manages the day-to-day operations of EPCs. As part of the IDC, Maryland maintains a list of prequalified ESCOs; the terms of the IDC allow local governments to also use this contract vehicle.
As of May 2020, the State of Maryland has 27 active EPC projects. Four of the EPC projects are under construction, the remaining 23 are in the measurement and verification phase. In aggregate, the State of Maryland's EPC projects are expected to save over $24.9M a year in energy and operational savings. The state energy database is active and continues to be updated on an ongoing basis.
Last Reviewed: July 2020
Research & Development List All
The Maryland Clean Energy Center (MCEC), now a partner of the Maryland Energy Innovation Institute, 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.
The Maryland Energy Innovation Institute was formed in 2017 by statute (SB313 of 2017) to collaborate with academic institutions in the State to participate in clean energy programs, as well as to develop and attract private investment in clean energy innovation. Under the enabling statute, the Maryland Energy Innovation Institute can, amongst other things, 1) coordinate and promote energy research and education; 2) provide energy policy innovation advice; 3) collaborate with other institutions, governmental units, foundations, and companies for clean energy research and innovation; 4) pursue grants for energy research; 5) provide seed grant funding to academic institution-based entrepreneurs or entities in order to promote the commercialization of clean energy technologies; and 6) work with the Maryland Technology Enterprise Institute to jointly manage, operate, and maintain facilities for a clean energy incubator at the University of Maryland. In 2018, the Maryland Energy Innovation Institute provided four seed grants of $100K; one seed grant went to "RoCo (the Roving Comforter)" energy efficiency project.
The Center for Environmental Energy Engineering operates the Consortium for Energy Efficiency and Heat Pumps, which "focuses on developing comprehensive information for the detailed physics of transport processes, innovative energy conversion components and systems, and new cost-effective test methods."
Last Reviewed: July 2019
Buildings
Score: 21 out of 24
Buildings Summary List All
The 2018 Maryland Building Performance Standards (MBPS) are mandatory statewide and reference the 2018 IECC for residential and commercial buildings. Localities are permitted to adopt stretch codes that are more stringent than the statewide code. The state has implemented a variety of measures to ensure code compliance. The 2021 IECC is currently under review for adoption (as of November 2024).
Residential Codes List All
Effective March 25, 2019, the 2018 Maryland Building Performance Standards are mandatory statewide and reference the 2018 ICC Codes, including the 2018 IECC, for all new and renovated residential buildings. § 12-503 of the Public Safety article requires the Maryland Department of Labor to adopt the most recent version of the IECC within eighteen (18) 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. Modifications (e.g., innovative approach, design, equipment, or method of construction) are allowed if the modification can be demonstrated to offer performance that is at least the equivalent to the requirements of: 1. the International Energy Conservation Code; 2. Chapter 13, “Energy Efficiency”, of the International Building Code; or 3. Chapter 11, “Energy Efficiency”, of the International Residential Code (see §12–503(b)(iii)) of the Public Safety Article). Each locality in the state must adopt and begin enforcement of the code within 12 months of state adoption.
As of January 2022, the IECC 2021 is under review for adoption.
Adoption of energy codes is mandatory in Maryland. After new editions of I-codes become available from the ICC, the Department of Labor is required to adopt the new codes within 18 months. After adoption, all local jurisdictions have up to 12 months to amend & adopt these new codes for local code enforcement.
Last reviewed: November 2024
Commercial Code List All
During the 2022 Regular Session of the General Assembly of Maryland, Senate Bill 528, entitled Climate Solutions Now Act of 2022, was passed and adopted into law as Chapter 38 of 2022. Section 12-503 of the Public Safety article now requires the Maryland Department of Labor to adopt by regulation the 2018 International Green Construction Code (IGCC) by on or before January 1, 2023, and adopt subsequent versions of the code within 18 months after it has been issued. The IGCC contains an energy-related chapter focusing on energy efficiency and renewable energy. (See Chapter 38 and the IGCC)
In addition, the 2018 Maryland Building Performance Standards are mandatory statewide and reference the 2018 ICC Codes, including the 2018 IECC, for all new and renovated commercial buildings.§ 12-503 of the Public Safety article requires the Maryland Department of Labor to adopt the most recent version of the IECC within eighteen (18) 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. Modifications (e.g., innovative approach, design, equipment, or method of construction) are allowed if the modification can be demonstrated to offer performance that is at least the equivalent to the requirements of: 1. the International Energy Conservation Code; 2. Chapter 13, “Energy Efficiency”, of the International Building Code; or 3. Chapter 11, “Energy Efficiency”, of the International Residential Code (see §12–503(b)(iii)) of the Public Safety Article). Each locality in the state must adopt and begin enforcement of the code within 12 months of state adoption.
Last reviewed: November 2024
Compliance List All
- Baseline & Updated Compliance Studies: Maryland, through a previous U.S. DOE award that concluded 3/31/2018, conducted a statewide effort to determine the efficacy of energy code training by measuring compliance before and after energy code training occurred. DOE's Pacific Northwest National Lab (PNNL) has analyzed the data and the final report should be published soon. Compliance studies in 2013 and 2014 were completed in two of the state's 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.
- The Maryland Green Building Council has compliance as a subset of its agenda. The group meets about 10 or 11 times a year.
- Training/Outreach: There are no current energy code and outreach training efforts underway. However, Maryland, through a prior U.S. DOE award that concluded 3/31/2018, conducted a three-year statewide outreach and awareness-building effort with DOE assistance effort to determine the efficacy of energy code training on code compliance. The report on this effort is being finalized by DOE's Pacific Northwest National Lab (PNNL).
Last reviewed: November 2024
CHP
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. Utility rate structures in the state are designed to encourage CHP investment. In 2018, two 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 2018
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 (2018-2020) 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. Potomac Edison and Southern Maryland Electric Cooperative now also offer CHP programs. 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: August 2019
Deployment IncentivesList All
Incentives, grants, or financing: In 2015, the Maryland Energy Administration announced a CHP Grant Program 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, capped at $500k per project. Up to $3.4M in available for this program in FY 2019. Incentives were also available for micro-CHP projects (60 kW or less) in some areas of the State at 50% of project costs, with a maximum of $75,000. 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: August 2019
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.
The CHP Grant Program administered by the Maryland Energy Administration specifically reserves up to $1.5M of the annual program budget to encourage CHP for resiliency in critical infrastructure.
Last Updated: August 2019
Utilities
Score: 9.5 out of 15
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 (Order No. 87082). In 2017, the legislature passed SB 184, which codified the 2% energy savings goal into law through 2023.
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. In 2017, ACEEE published a report on the benefits of Maryland's Energy Efficiency programs.
Last Updated: July 2018
Customer Energy Efficiency Programs List All
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 (Order 82344). Utilities were also required to decrease peak demand by 15% by 2015. These goals were essentially achieved. Beginning in 2016, electric utilities must ramp up programs to increase incremental savings by 0.2 percent, leveling out when savings reach 2% per year. Natural gas goals and limited income goals are currently being planned.
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 reviewed: November 2024
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, 2014, 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 2018-2020 plans will be submitted by September 1, 2017.
The utilities must also submit semi-annual updates to the PSC and MEA.
Last reviewed: November 2024
Energy Efficiency Resource Standards List All
Summary: Beginning in 2016 and through 2023, utilities must ramp up programs by 0.2% per year, leveling out at 2% incremental savings per year as a percent of 2016 weather-normalized gross retail sales and electricity losses.
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 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% for the energy savings (MWh) goal and 100% for the peak demand savings (MW) goal. On a per capita basis, the Maryland electric utilities and cooperatives as a whole met the 10% reduction goal for energy use, but did not meet the 15% demand reduction goal, with 11% and 8% achieved respectively.
The PSC issued new EmPOWER targets with Order 87082 in July 2015. The order requires utilities to ultimately achieve savings of 2% per year by ramping up incremental savings at a rate of 0.2% per year beginning in 2016. This commitment was renewed during the 2017 legislative session with the passage of Senate Bill (“SB”) 184 / House Bill (“HB”) 514, which codified Commission Order No. 87082 regarding post-2015 electric energy efficiency goals. Work groups were established by Order 87082 to determine natural gas goals and limited income goals. The proposals were filed in February 2018 and will be discussed at the semi-annual hearings in May 2018.
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 reviewed: November 2024
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).
Section 7-211 of the Public Utilities Article of the Annotated Code of Maryland 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. Cost recovery through a monthly billing surcharge is amortized over multiple years and can include a return.
Last reviewed: November 2024
Evaluation, Measurement, & Verification List All
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Cost-effectiveness test(s) used: total resource cost test
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Secondary cost-effectiveness test(s) used: societal cost test
The evaluation of ratepayer-funded energy efficiency programs in Maryland relies on both legislative mandates (SB 184) and regulatory orders (Orders in case numbers 9153-9157, Order 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.
In Maryland, reported savings are evaluated by the utilities' EM&V contractor(s) and verified by 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.
According to the Database of State Efficiency Screening Practices (DSESP), Maryland relies on the Total Resource Cost Test (TRC) and considers it to be its primary cost-effectiveness test, with the exception of low-income programs which may be implemented without passing the TRC. Maryland’s TRC accounts for non-energy benefits of productivity, increased comfort, water savings, and alternative fuel benefits. Maryland also accounts for avoided air emission costs.
Further information on cost-effectiveness screening practices for Maryland is available in the Database of State Efficiency Screening Practices (DSESP), a resource of the National Efficiency Screening Project (NESP). Further information on health and environmental benefits is available in ACEEE’s Overview of State Approaches to Account for Health and Environmental Benefits of Energy Efficiency.
Last Updated: May 2019
Guidelines for Low-Income Energy Efficiency Programs List All
Requirements for State and Utility Support of Low-Income Energy Efficiency Programs
The EmPOWER Act of 2008 required all utility plans to address low-income communities. From 2009 through the end of the second quarter of 2012, the electric utilities (BGE, DPL, PE, Pepco, and SMECO) all implemented their own limited-income programs through their residential programs. In 2012, the Maryland Department of Housing and Community Development (DHCD) became the sole implementer of limited income programs across Maryland in compliance with Order No 84569. In 2017, SB 184 continued the requirement for limited income energy efficiency programs started under the EmPOWER Act of 2008.
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 indicates 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
Order No. 88964 issued by the Commission on December 31, 2018 directs the Low Income Work Group (“Work Group” or “LIWG”) and Maryland Department of Housing and Community Development (“DHCD” or “Department”) to file a summary report on limited income participation and savings in the EmPOWER program on or before April 15, 2019.
On April 15, 2019, the Work Group issued a report that agreed on actions to collect additional information on limited income measures installed by the Utilities but did not come to a consensus on a recommendation for an energy savings goal.
Last reviewed: November 2024
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 2018
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).
Customers may grant access to their data with Green Button Connect My Data, which enables the secure transfer the data to authorized third parties, based on affirmative (opt-in) customer consent.
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 2018
Transportation
Score: 10 out of 13
Transportation Summary List All
The state devotes a significant amount of funding to transportation projects, has adopted California's vehicle standards, integrates transportation and land use planning, has a VMT target and efficient vehicle incentives.
Tailpipe Emission Standards List All
Maryland adopted California's Zero-Emission Vehicle (ZEV) program in 2007. California then created stricter tailpipe and GHG standards, known as Cal LEV III, which Maryland also adopted in 2012. The LEV III Program impacts model years 2015-2025 and sets new emissions standards for criteria pollutants and GHGs. In 2023, Maryland adopted regulations set by California’s ACCII. In 2023, Maryland also adopted the Advanced Clean Trucks rule through the Clean Trucks Act.
Last Reviewed: November 2024
Transportation System Efficiency List All
Transportation and Land use Integration: In 2023 HB 12 (Equitable and Inclusive Transit-Oriented Development Enhancement Act), expanded the scope of the state's TOD Designated Sites and established a TOD capital grant and revolving loan funding program in MDOT to strengthen state's support for TOD.
From https://msa.maryland.gov/msa/mdmanual/21dop/html/dopd.html, "Concepts of "smart growth" were enacted into law in 1997, building upon Economic Growth, Resource Protection, and Planning Act of 1992 (Chapter 759, Acts of 1997; Chapter 437, Acts of 1992). Through principles of "smart growth", Maryland is committed to limiting sprawl development by revitalizing older neighborhoods and redirecting growth to already developed areas, thereby saving the State's farmland, open spaces, and natural resources. To achieve these ends, State funds target projects in Priority Funding Areas, those locations approved for growth and redevelopment.
In October 2003, Department of Planning was charged with developing and implementing Maryland Priority Places Strategy (Executive Order 01.01.2003.33). Strategy was to establish goals for land-use policies that were fiscally sound and promote sustainable development along with long-term economic growth, community revitalization, and resource conservation
VMT Targets: Governor Moore's Executive Order 01.01.2024.19 requires the establishment of specific annual greenhouse gas and vehicle miles traveled reduction targets for the transportation sector. The Maryland Department of Transportation's 2050 Maryland Transportation Plan (page 5) sets a goal to achieve a 20% reduction from 2019 in vehicle miles traveled per capita by 2050, a 40 percent reduction in on-road transportation sector greenhouse gas (GHG) emissions by 2031, and move towards net-zero by 2045.
FAST Freight Plans and Goals: The Maryland Department of Transportation (MDOT) released a new Maryland State Freight Plan in December 2022, which MDOT indicates meets the latest federal freight planning requirements of FAST Act. The updated plan includes freight-related environmental protection and sensitivity measures (e.g., waste fuel amount for trucks, congested CO2e on the Maryland freight network, congested CO2e on the critical rural freight corridors, # of trucks replaced at the Port of Baltimore via the Mid-Atlantic Dray truck replacement program) (see page 5-13).
Relevant goals, objectives, and strategies in the freight plan include: Support Maryland’s 2030 Greenhouse Gas Reduction Act (GGRA) Plan to achieve statewide greenhouse gas (GHG) reduction targets and to advance measures prioritizing benefits to overburdened and underserved communities and address long-standing environmental injustices; Ensure the rail network can meet freight and passenger demand now and in the future; Improve intermodal connections to diversify freight movement alternatives and redundancy. (See Exhibit 2.1); Strengthen the short line railroad system through transportation and economic development, and agriculture partnerships that could lead to innovative programs; Promote and/or incentivize fuel-efficient technologies for medium and heavy-duty trucks; Explore and expand the use of alternative energy sources (e.g., electric, solar) for freight applications, including freight commercial vehicles, multimodal support equipment, or related applications
Last Reviewed: November 2024
Transit Funding List All
In 2018, Maryland passed the Maryland Metro/Transit Funding Act. Through this legislation, at least $167,000,000 in revenues from Maryland's Transportation Trust Fund must be provided to the Washington Suburban Transit District through an annual grant to be used to pay the capital costs of the Washington Metropolitan Area Transit Authority, assuming certain requirements, such as system operation reports, outlined in the legislation are met. (https://mgaleg.maryland.gov/2018RS/chapters_noln/Ch_352_hb0372E.pdf, page 24)
Last updated: November 2024
Incentives for High-Efficiency Vehicles List All
In fiscal year 2022, MEA has offered a Clean Fuels Incentive Program (CFIP); under CFIP, funds are available for the incremental costs of alternative fuel fleet vehicles, including battery electric fleet vehicles (BEV). Class 3-7 BEVs were eligible for an award of up to $80K per vehicle while Class 8 BEVs were eligible for awards of up to $150K per vehicle, up to 100% of incremental costs.
Chapter 234 of 2022 also reestablishes an excise tax credit program for zero-emission plug-in electric drive vehicles or fuel cell vehicles, and authorizes up to $8.25 million in funding from the Strategic Energy Investment Fund to be transferred to the Transportation Trust Fund to offset the reduction in revenues from the excise tax credits. The credits are set at $3000 for each zero emission plug-in electric drive or fuel cell vehicle, and newly establishes a $1000 credit for each two-wheeled zero-emission electric motorcycle, and $2000 credit for each three-wheeled zero emission electric motorcycle or autocycle.
Last updated: November 2024
Equitable Access to TransportationList All
Public transit access
While no financial incentive programs are known to exist at the state level to incentivize the creation of low-income housing near transit facilities, the Maryland Department of Planning does provide planning and implementation resource to support state and local TOD efforts. The Maryland Department of Housing and Community Development considers the proximity of transit facilities when distributing federal Low-Income Housing Tax Credits to qualifying property owners (e.g., eight points are award for a project that is part of a Maryland Department of Transportation Transit Oriented Development, eight points are awarded to projects that are within a half mile radius of a planned or existing rail stop, five points to a project within a half mile of two separate bus lines). See https://dhcd.maryland.gov/HousingDevelopment/Documents/rhf/2023MRFP-Guide.pdf, page 66.
Under DHCD's multifamily rental financing program guide competitive scoring criteria, eight points are award for a project that is part of a Maryland Department of Transportation Transit Oriented Development, eight points are awarded to projects that are within a half mile radius of a planned or existing rail stop, and five points to a project within a half mile of two separate bus lines. See https://dhcd.maryland.gov/HousingDevelopment/Documents/rhf/2023MRFP-Guide.pdf, page 66.
Equity in transportation electrification
The Medium and Heavy Duty Zero Emission Vehicle program implemented by the Maryland Energy Administration doesn't offer direct or increased financial incentives based on income or community status. However, the Funding Opportunity Announcement for the Program strongly encourages applications that benefit underserved or overburdened communities as defined in §1-701 of the Maryland Code, Environment Article.
Here's how MEA is prioritizing projects that align with this goal:
1. Application Evaluation: During the review process, MEA gives preference to projects that demonstrate a clear benefit to underserved or overburdened communities.
2. Focus on Public Benefit: MEA prioritizes qualified medium-duty or heavy-duty zero-emission vehicles owned or operated by entities serving these communities, such as public transportation, waste collection, or delivery services.
Last updated: November 2024
Appliance Standards
Score: 1 out of 3
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.
In 2022, Maryland adopted appliance standards for 11 products via HB 772.
Last Reviewed: November 2024
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