Maryland Legislative Initiatives
The following summarizes new green legislation passed in 2010:
Motor Vehicle Excise Tax - Tax Credit For Electric Vehicles -This legislation creates a tax credit for the purchase of qualified plug-in electric vehicles equal to 100% of the State vehicle excise tax imposed, not to exceed $2,000. It requires a transfer of $279,000 from the Maryland Strategic Energy Investment Fund to the Transportation Trust Fund (TTF) in fiscal 2011, $939,600 in fiscal 2012, and $1,287,000 in fiscal 2013. The tax credit applies to electric vehicles purchased from Oct. 1, 2010 to June 30, 2013.
High Occupancy Vehicle (HOV) Lanes - Use by Plug-In Vehicles -This legislation authorizes a "plug-in electric vehicle" affixed with a State permit designating it as such to use high occupancy vehicle (HOV) lanes. There are HOV lanes along two federal highways in the State: one on I-270 in Montgomery County; and one on U.S. Route 50 in Prince George's County. The legislation will sunset on Oct. 1, 2013.
Maryland Clean Energy Incentive Act of 2010 -This legislation extends the termination date of the clean energy incentive tax credit to Dec. 31, 2015. It also extends to Jan. 1, 2016, the date by which a facility must begin producing qualified energy in order to claim the credit; and prohibits the Maryland Energy Administration (MEA) from issuing an initial credit certificate for less than $1,000. The legislation also makes the clean energy incentive tax credit refundable.
Renewable Energy Portfolio Standard - Solar Energy -This legislation increases the percentage requirements of the Renewable Energy Portfolio Standards (RPS) that must be purchased from Tier 1 solar energy sources each year between 2011 and 2016. It also increases the alternative compliance payment (ACP) for a shortfall in solar RPS requirements by $0.05 per kilowatt-hour (kWh) over the current amount in 2011 and 2012, by $0.10 per kWh between 2013 and 2016.
The following is a summary of other green regulations and incentives. If questions arise, members may contact Lesa Hoover, lhoover@aoba-metro.org
Maryland Building Performance Standards
Application: Property Owners
Adopts the IBC and the IRC as the Maryland Building Performance Standards (MBPS). The MBPS establishes procedures and policies for buildings in Maryland.
Status: Enacted 1-Jul-07
SB 485 - Solar Energy Grant Program
Application: Property Owners
This bill creates a solar energy grant program administered by the Maryland Energy Administration (MEA). The grant program would receive an annual budget appropriation. In fiscal 2005 the program's funding is as provided in the State budget. Beginning in fiscal 2006, the bill states that it is the intent of the General Assembly that at least $500,000 be included in the State budget each year. The purchases of property eligible for the program would be identical to those that are currently eligible for tax credits under the solar energy tax credit, which sunsets on July 1, 2004. The amount of the grant is equal to the lesser of: (1) $3,000 or 20% of the total installed cost of photovoltaic property (maximum limit is increased to $5,000 if installed on nonresidential property); and (2) $2,000 or 20% of the total installed cost of solar water heating property. Grants can be made to individuals, businesses, and local governments. The Solar Energy Grant Program gives up to a $5,000 grant for a non-residential photvoltaic property.
Status: Enacted 1-Jan-05
Geotherrmal Heat Pump Grant Program
Application: Property Owners
The grants are available to Maryland residents for residential, business and other entities and can be used to offset a portion of the cost of ground loop geothermal heat pump systems. The site provides both application information and technical information on geothermal heat pumps. The grants are for up to $1,000 for eligible systems.
Status: Enacted
Windswept Grant Program
Application: Property Owners
The Maryland Energy Administration (MEA) accepts applications for small scale wind energy systems from individuals, businesses and local governments beginning November 1, 2007. The Windswept Grant Program will help offset a portion of the cost of small scale wind energy projects. A limited number of grants are available to Marylanders to install eligible wind energy systems of at least 1 kW for residential properties and 1.5 kW for non-residential properties. "Grant amounts are $1500/kw for a maximum grant amount of: 1) Residential Wind Systems: $3000 and 2)Nonresidential Wind Systems: $5000"
Status: Enacted 1-Nov-07
HB 8 - Green Building Tax Credit
Application: Property Owners
This bill provides for several State income tax credits for specified construction or rehabilitation costs of "green buildings" and green tenant space. The bill places an annual cap on the amount of credits that may be issued each year. Total credits that may be issued cannot exceed $25 million for the tax year 2003 2011 period. Maryland provides a tax credit for the construction of green building. The credit is worth up to 8% of the total cost of the building. Buildings must be located in a priority funding area and be at least 20,000 square feet. For a full list of the criteria see below:
Status: Enacted 1-Jul-01
Clean Energy Incentive Tax Credit
Application: Property Owners
Provides an income tax credit to businesses that use certain renewable energy sources or waste materials to produce electricity that is sold to an unrelated person. The facility must be placed in service, or co-firing with coal must begin, on or after January 1, 2006, but not before January 1, 2011. Sole proprietorships, corporations and pass-through entities, such as partnerships, subchapter S Corporations, limited liability companies and business trusts may claim the tax credit. To qualify for the credit, the business must produce electricity during the tax year using primarily "qualified energy resources" (see Internal Revenue Code Section 45) which includes any solid, non-hazardous, cellulosic waste material that is segregated from other waste materials and is derived from the following: forest-related resources, including mill residues (except sawdust and wood shavings), forest thinnings, slash, or brush, but excluding old-growth timber; waste pallets, crates, dunnage, landscape or right-of-way trimmings; agricultural sources (orchard tree crops, vineyard, grain, legumes, sugar, and other crop by-products or residues). Offers Marylanders a state income tax credit for electricity generated by qualified resources of 0.85 cents per kilo-watt hour, and 0.50 cents per kilo-watt hour for electricity generated from co-firing a qualified resource with coal. In order to receive these credits, eligible participants must apply for an Initial Credit Certificate with the Maryland Energy Administration.
Status: Enacted 1-Jan-06
HB 590 - State Taxes - Solar Grants and Devices
Application: Property Owners
This bill provides a state property tax exemption for a solar energy device installed to heat or cool a dwelling, generate electricity used in a dwelling, or to provide hot water used in a dwelling; and an income tax subtraction for grants received under the Solar Energy Grant Program Exempts solar energy devices from the state property tax.
Status: Enacted 1-Jun-07
House Bill 117 - Real Property - Solar Collector Systems - Restriction on Use and Solar Easement
Application: Property Owners
A "restriction on use" regarding land use may not impose or act to impose unreasonable limitations on the installation of solar collector system on the roof or exterior walls of improvements. An unreasonable limitation is a limitation that significantly increases the cost of the system or significantly decreases the efficiency of the system.
Status: Enacted 1-Oct-08
House Bill 374 - EmPOWER Maryland Energy Efficiency Act of 2008
Application: Property Owners
This bill establishes a per capita State goal of achieving a 15% reduction in electricity consumption and a 15% reduction in peak demand by the end of 2015. Beginning with the 2008 calendar year and each year thereafter, PSC must calculate the per capita electricity consumption and peak demand for the year. On or before December 31, 2008, PSC, to the extent it determines that cost effective energy efficiency and conservation programs are available for each affected class, must require electric companies to procure and provide customers with a cost effective demand response program that is designed to achieve targeted electricity savings and demand reduction through 2015.
Status: Passed House and Senate - Awaiting Governor's Signature 1-Jun-08
Prince George's County
Executive Order - Green Building and Energy Efficiency ProgramApplication: Property Owners
Prince George's County has established a Going Green Steering Committee by Executive Order, with the goals to reduce energy consumption by 2015 and establish incentives for new and existing commercial buildings to acquire a LEED Silver rating or better. There are no current Prince George's County specific incentives, tax or otherwise. The Committee is tasekd with establishing incentives for both new and existing private commercial buildings that attain a LEED silver rating or an equivalent rating.
Status: Enacted 1-Sep-07
CR-30-2008 - Cool Capital Challenge
Application: County Residents
Prince George's County Council has expressed support for joining the Cool Capital Challenge to reduce greenhouse gases in the County and in the Metropolitan region. The Cool Capital Challenge a grassroots campaign to reduce the National Capital Region's annual carbon dioxide emissions, with a goal of obtaining commitments for collectively reducing a total of one billion pounds of greenhouse gas emissions by April 2008.
Status: Pending
Montgomery County
Montgomery County Clean Energy Rewards ProgramApplication: Residents
County residents will receive 1 cent, and businesses and other organizations will receive 1.5 cents for each kilowatt-hour (kWh) of eligible clean energy consumed. On average, the additional cost of clean energy is 2.5 cents per kWh. Rewards through this program will offset the premium cost of clean energy by about 40%. To utilize this program visit the website that is hyperlinked to the title. This web site will allow you to 1) Choose the type of clean energy, 2) Sign-up for clean energy on-line, and 3) Receive Clean Energy Rewards. At this time all funds for rewards have been allocated. Participants already enrolled in the program will continue to earn rewards for clean energy used. However, should you sign-up for clean energy as a new customer through one of the Clean Energy Rewards suppliers you will not receive rewards from Montgomery County.
Status: Enacted
Montgomery County Energy Policy
Application: Property Owners
Montgomery County has established a policy to improve energy efficiency in the County; this will be done through changes to the codes for commercial and residential buildings, among other means.
Status: Enacted
Montgomery County Code Chapter 18-A
Application: Property Owners
Provides the initiative for County government to address energy issues and plan for a future which may be energy resource-constrained. Establishes the means by which county can form policies and plans.
Status: Enacted
Montgomery County Code Section 8-14A Energy Performance Standards For County Buildings Regulations
Application: Property Owners
"The purpose of these Building Energy Design Standards is to provide policies and procedures to implement Building Energy Design Standards, pursuant to Chapter 8, Section 8-14A, Montgomery County Code (1984, as amended). These policies and procedures shall apply to all new County buildings and additions with a floor area greater than 10,000 square feet contracted for design after Sept. 1, 1985. These policies and procedures shall apply to major renovation of County buildings involving a floor area greater than 10,000 square feet and which costs more than 25% of the equivalent cost of new construction or which involves replacement of the heating and air-conditioning system, contracted for design after Sept. 1, 1985."
Status: Enacted
Bill No. 30-07 - Buildings - Energy Efficiency
Application: Property Owners
This bill requires certain commercial, multi-family residential, and single-family residential buildings to meet certain ENERGY STAR standards relating to energy efficiency, to achieve the appropriate LEED rating as certified by the Green Building Council, and to pay an Environmental Sustainability Fee if the building does not comply with certain energy efficiency and environmental design standards. The Director must evaluate options for creating incentives for the owners of commercial, multi-family residential, or single-family residential buildings to modify the buildings to increase their energy efficiency.
Status: Passed Council - Awaiting County Executive's Signature 1-Jan-09
Bill No. 32-07 - Environmental Sustainability - Climate Protection Plan
Application: All emitters of greenhouse gas
This bill requires the Director of Environmental Protection to prepare a Climate Protection Plan by January 1, 2009 that outlines a plan to reduce Countywide greenhouse gas emissions to 80% below the amount of greenhouse gas emissions in the base year identified in the inventory prepared under subsection(a) by January, 2050, including a plan to stop increasing Countywide greenhouse gas emissions by 2010 and achieve a 10% reduction every 5 years through 2050.
Status: Passed Council - Awaiting County Executive's Signature
Bill No. 33-07 - Renewable Energy
This bill requires the Director of the Department of Environmental Protection to develop a Renewable Energy Action Plan after evaluating options for increasing the use of renewable energy in and by the County, including the feasibility of creating a Sustainable Energy Utility. The bill also prohibits enforcement of certain deed restrictions, covenants, rules, or regulations relating to renewable energy devices. Finally, this legislation creates a property tax credit for the installation of certain renewable energy devices and generally amends the law relating to energy and property tax credits. An owner of residential property that uses a solar or geothermal energy device may receive a credit against the County property tax. The credit allowed under this Section is the lesser of: (1) 50% of the eligible costs, or (2) $5,000 for a heating system or $1,500 for a hot water supply system. A property owner may apply for the credit by filling out a form provided by the Director of the Department of Environmental Protection.
Status: Passed Council - Awaiting County Executive's Signature 30-Jun-08
