2008 Energy: A

Soon after Governor O’Malley was elected, the Maryland Energy Administration (MEA) issued a report stating that Maryland faced a burgeoning energy crisis. Utility deregulation passed by the General Assembly in 1999 had resulted in a dramatic rise in utility bills, and MEA warned of rolling blackouts on the horizon. This looming challenge forced the Administration to direct MEA to develop a comprehensive plan to keep energy bills low, keep the lights on, and meet environmental goals that became part of a bold legislative agenda championed by the O’Malley Administration during the 2008 legislative session. The governor complimented this legislation with administrative action (described in the Administration and Appointments section) that focused on conservation, renewables, and efficiency.

EmPOWER Maryland Energy Efficiency Act of 2008 and the Strategic Energy Investment Fund: GOOD

These bills, which codify a goal set by Governor O’Malley to reduce per-capita electricity consumption in Maryland 15 percent by 2015, were passed in the 2008 General Assembly session. This reduction will be achieved through a variety of simple, proven technologies, such as programmable thermostats and high-efficiency light bulbs. Utility companies will account for two-thirds of these reductions, while MEA will achieve the final third through state-run programs. Not only will this law reduce energy consumption and the resulting pollution, it will also create jobs in the energy efficiency industry and provide long-term savings for rate payers.

Renewable Portfolio Standards: GOOD

While the EmPOWER Act will reduce the total amount of Maryland’s energy consumption, the Renewable Portfolio Standards determines where our energy comes from. Currently, about 60% of Maryland’s energy comes from dirty, polluting coal. This bill, signed by the governor in April 2008, requires that 20 percent of Maryland’s energy come from renewable sources, such as wind and solar power by the year 2022.

Maryland Solar Energy Incentive Act: GOOD

With the passage of this 2007 bill, Maryland became one of the leading states promoting solar power. This bill calls for the development of 1,500 megawatts of solar energy by the year 2022 by requiring utilities to purchase electricity from solar power sources. This will provide incentives for large, commercial scale roof-top solar installations. This law will also raise the amount of energy consumers can sell back to a utility from their residential solar systems from 200 kilowatts to 2 megawatts. This encourages greater use of residential solar installations.

Solar and Geothermal Tax Incentive and Grant Program: GOOD

The Solar Grant program creates tax incentives for citizens to install solar energy panels and appliances in their homes. This program was created in 2005, but it has always been under funded and non-functional. This bill expands the Solar Grant program and now includes geothermal projects. Marylanders may now receive a $2,500/kw grant for solar panels and $3,000 for solar water heating. Additionally, geothermal grants will be awarded in the amounts up to $3,000 for residential systems and up to $10,000 for commercial systems. Governor O’Malley successfully changed the program to make the grant size large enough to be meaningful to homeowners. He will now need to fund it at levels high enough to sufficiently stimulate the residential solar market in the state.

Green Building Initiatives: GOOD

Much of the energy we produce is never used at all, but is instead lost due to inefficiencies in building construction. A collection of green building initiatives introduced by Governor O’Malley in 2008 seeks to address this problem. In December 2007, the Green Building Task Force issued its recommendations on how to most effectively use low-impact codes and green building programs. Accordingly, the governor decreed that all new public school construction must meet or exceed the LEED (Leadership in Energy and Environmental Design) Silver standard and signed the High Performance Buildings Act, which requires that all new and renovation construction projects using state funds must meet the Silver LEED standard. Governor O’Malley also provided incentives for renovations and refurbishments by qualifying green buildings for the historic buildings preservation tax credit.

Prohibition of Wind Turbines on Public Lands: GOOD

In April 2008, Governor O’Malley issued an order prohibiting the construction of wind turbines on public lands administered by the Department of Natural Resources. This order emerged from an intensive public hearing process, during which many community residents expressed concerns about building turbines on state land. While we hope wind power will become an increasing part of Maryland’s renewable energy package, we believe a wind farm must be properly sited so that it is not a detriment to the environmental, recreational, and other economic uses of public lands.