House Environment and Transportation Committee previews conference report for sweeping energy package

The House Environment and Transportation Committee on April 11 reviewed the anticipated conference report for a broad energy bill that would alter multiple state energy programs and regulatory processes.

Committee Chair Stein told members the conference report largely follows the House position but incorporates Senate ideas on several items and that the final draft from the Department of Legislative Services would be circulated before the bill reaches the floor. "It's a very big first step," he said of a one-year moratorium on forecast test years, and added the panel has worked with Senate negotiators to find compromise language.

Why it matters: the conference report packages changes that affect ratepayers, developers, utilities and local governments — including a one-time $100 million use of the Strategic Energy Investment (SE) fund to offset next year's Empower Maryland costs, new net energy metering transition rules, requirements for utilities to join a regional transmission organization (RTO), rooftop-solar permitting deadlines and fees, and a new data-center registry with reporting and a per-megawatt registration fee.

Key provisions summarized from the committee discussion:

- Empower Maryland and SE payment: Chair Stein said the bill phases out gas and power program subsidies while resetting the electric energy-efficiency goal to 1.75% for the next three-year cycle and phases that target back toward 2.5% over time. He told the committee, "we are taking $100 million from the Strategic Energy Investment fund" to cover part of next year's Empower costs to reduce near-term rate impacts for ratepayers.

- Forecast test-year moratorium and PSC proceeding: the conference report creates a one-year moratorium during which the Public Service Commission may not approve forecast test years and directs the PSC to open a proceeding to consider whether the tool should continue. Chair Stein said this gives the PSC "two bites at the apple" during the year to evaluate forecast test years.

- Net energy metering (NEM): projects seeking to remain on the existing NEM 1.0 treatment must be in a qualifying position with the utility having paid 50% of interconnection fees and be placed in service by June 1, 2030. The PSC is required to adopt the new net energy metering approach by July 1, 2027. Existing projects would retain current treatment until decommissioned.

- Rooftop solar permitting and meter timelines: local governments would be required to adopt automated solar-permitting software by August 1, 2027; in-person rooftop inspection averages and meter disconnection/reconnection are set at an average of five business days; residential permitting fees would be capped at $500; the Attorney General may seek judicial enforcement against noncompliant local governments.

- Large-load tariff and data centers: the conference report lowers the large-load tariff threshold from 100 megawatts to 25 megawatts and clarifies which customer-caused transmission and capacity costs the tariff must cover. The committee also adopted a data-center registry (largely Senate-drafted) that includes a registration fee of not less than $1,000 per megawatt and required reporting on energy and water use; a voluntary clean-capacity rating (80–100% non-emitting incremental resources) would offer permitting priority for qualifying projects. Baltimore City secured language preventing data centers from receiving tax-increment financing in city TIF districts.

- Grid-enhancing technologies, CPCN and notice changes: applicants for certificates of public convenience and necessity must show they considered AT (advanced transmission) alternatives that would avoid new construction. A Senate amendment adopted by the conference report requires earlier notice to adjacent landowners when a CPCN is filed; willful failures to notify would trigger a repeat of the public hearing.

- Funding programs: the conference report authorizes SE fund uses for building and transportation electrification, behind-the-meter storage, and a reverse auction mechanism to support in-state renewable projects negatively affected by recent federal financing changes (the exact recurring SE amount referenced in the hearing was not specified). The bill also includes a $5 million nonprofit green loan program to assist nonprofits pursuing clean-energy transitions.

Committee members asked technical and policy questions throughout the review, including how the moratorium would operate and whether the $100 million SE payment was separate from other funds. Chair Stein responded that DLS would circulate a written summary and the final text before floor votes. Multiple members expressed support for elements while noting some provisions (for example, long-term savings estimates across the whole package) cannot be precisely calculated today.

What happens next: the committee voted to move the Senate energy bill into conformity with the House conference report as a procedural courtesy so the measure could be calendared for floor consideration on Monday. Chair Stein said the DLS text and a written summary would be shared with members ahead of that floor action.